Avon Products, Inc - Case Study Example

Comments (0) Cite this document
It experienced losses from selling several distribution companies. It experienced loses by losing its sales force and customers (Tiemann…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.6% of users find it useful
Avon Products, Inc
Read TextPreview

Extract of sample "Avon Products, Inc"

Avon’s investment and financing decisions Avon made the right choices to invest more to its core beauty products and divest from the health care business that was causing it losses. It experienced losses from selling several distribution companies. It experienced loses by losing its sales force and customers (Tiemann 2). Broadening of its direct-sales product lines and offering of generous sales incentives declined the company’s margin of beauty sales. A decline in the Company’s beauty business weakened its cash flow.
Avon decided to concentrate on sale of its beauty products. The Company decided to buy some companies dealing with beauty products that added prestige fragrances and sold its products through retail stores. This approach helped Avon achieve its transition from direct sales of the beauty business. The Company developed additional distribution channels that helped it improve in sales. Through its double commitment in the beauty products the company was able to gain
Avon’s financial condition in mid-1988
The Company had begun to improve through its commitment in the beauty products business. Maintaining its dividend at $2.00 per share did not result to a drop in Avon’s Stock price. It maintained a fairly steady stock price during this period. Investors held Avon stock since it paid high dividends. The Company planned to reduce its dividends but was worried that it might drive down the stock prices. Retail business was helping the company make more sales thus increased profits. Avon was to reduce its dividends to conserve cash flow in the company (Tiemann 3). It believed that many of its investors would sell their shares quickly once it reduced its dividends.
Works Cited
Tiemann, Jonathan. "Avon Products, Inc." 05 August 1994. Harvard Business School. 01 March
2015 . Read More
Cite this document
  • APA
  • MLA
(“Avon Products, Inc Case Study Example | Topics and Well Written Essays - 250 words”, n.d.)
Avon Products, Inc Case Study Example | Topics and Well Written Essays - 250 words. Retrieved from
(Avon Products, Inc Case Study Example | Topics and Well Written Essays - 250 Words)
Avon Products, Inc Case Study Example | Topics and Well Written Essays - 250 Words.
“Avon Products, Inc Case Study Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Avon Company

...sells clothing with the brands Curves and Slim Wear as two of the brands underneath the overall basic Avon heading. Avon also sells divisions of goods under the headings home, children, which includes bath and body, fashion, room decor, and toys, men, which highlights a line of skincare and fragrance under the celebrity name Patrick Dempsey (Avon Company, Inc., 2011). Avon also sponsors several lines of products that are associated with fundraising and dedicated to the betterment of the world. The products that are purchased through these divisions go towards contributions to individual organizations that have social...
20 Pages(5000 words)Research Paper

Avon Products Case Study

... in a competitive environment. In addition, more innovative ideas are to be given out by the company’s employees (Davis, 2007). In case, such a move does not succeed it will be important to use reward system as a method of attracting more employees to come up with new ideas that will keep the organization to be up-to-date. References Bacal, R. (2011). Performance Management 2/E. McGraw-Hill Professional. Davis, T. (2007). Talent Assessment: A New Strategy for Talent Management. Gower Publishing Ltd: Effron, M. (2009). Avon Products, Inc.. New York: John Wiley $ Sons. Harris, O. J., & Hartman, S. J. (2001). Organizational behavior. Routlege. Zofi, Y. (2011). A Manager's Guide to Virtual teams. AMACOM Div American Mgmt Assn.... ?...
5 Pages(1250 words)Case Study

Avon Products or GE Money America Case Study

...?Insert A Brief of the Status of the Company That Led To Its Determination That A Change Was Necessary There are several reasons that necessitated to the acceptance of change as necessary for the company, Avon Products. According to Goldsmith and Carter, one of the reasons is that necessitated the need to acknowledge the need for change is performance profile which is indicative of: dwindling volumes of sales and stock with depreciating values; internal investigations that suggest alleged leaks; the danger of imminent takeovers by either of Avon Products' suitors; and the investigations that touched on charges of bribery in China. These issues convince the public and...
5 Pages(1250 words)Term Paper

Avon Inc. Company Case Study

...Avon Inc. Company Case Study Reason Necessitating Change in Avon Products Company Avon products are manufactured by the most famous company known as the Avon Inc., which focus on beauty products for women. The fact that this is a business organization, it has to take into consideration of the various business environment factors such as the need to change the strategic plan to accommodate more markets because of the need of other foreign investment. Consequently, any changes taking place in an organization are necessitated by various interests and factors that have a considerable effect...
5 Pages(1250 words)Case Study

Avon Products

...perspective of the business than the former CEO. This is one cause of the change that happened in the company in which different strategies of operation came up for the company to ensure that it regain its success in the business. This meant that the employees of Avon Company had to adjust to the new ways of organization of the company as could be directed by a new management leader, which would mean that all the systems would feel the effect. The new chairman in Avon Inc bore the responsibility to instill different modes of motivation and commitment to the organizational change in the company so that all of the employees could maximize on their participation and ensure...
6 Pages(1500 words)Research Paper

Resolute Forest Products Inc

...?RESOLUTE FOREST PRODUCTS INC 0 Executive Summary Resolute Forest Products Inc finds itself in a very unique and peculiar global competition that goes beyond inter-corporation competition. This is because as a leading paper producer, the company is in fierce competition with other external phenomena such as the reduced dependence on paper in the current generation we find ourselves in as compared to what prepared before the 2000s. The reduced dependence on paper can generally be attributed to the advent of the electronic mailing, electronic ticketing, electronic billing, and electronic receipt eras that we find ourselves in. This competition, together with what the...
10 Pages(2500 words)Research Paper


...and Sur Your Due Avon Products, Inc The Personal Care Industry Historically, Avon Products, Inc. has been considered as the largest selling organization for women’s beauty products worldwide, with direct selling as its primary approach. The products were and are of high quality but more reasonable in price than the ‘top-of-the- market products’ which is also referred to as “department store quality at discount store price” ( The company has a long history of global presence as its products were launched more than a century ago in 1886. Avon...
2 Pages(500 words)Essay

Precise Molded Products, Inc

...Precise Molded Products, Inc of Introduction According to Sower (2003), quality can be too expensive that it needs to be checked out regularly. As organizations seek to improve the quality of their products, they might encounter challenges that may even cancel their quality advantage. Looking closely at the case of Precise Molded Products Company, one can conclude that a wonderful job is done by the technicians considering the amount of work done within one hour. In fact, the technical work in this whole case study is the measurement part, which is comparatively done well because only a few products are rejected as a result of length (Sower, 2003). This...
2 Pages(500 words)Case Study

REC, Inc. and seatle coffee products

...REC, Inc. REC, Inc. The purpose of this paper is to analyse why the reported financial figuresof REC, Inc. felt short of the company’s expectation and budgeted financials. Moreover, the analysis includes determination of the breakeven level for the business both in dollars and equivalent units. Question 1: The reasons why the reported results for January were poor in comparison to the expected, average profit could be explained on the basis of the analysis of the reported income statement for the month ending January 2004. The company is in the business of manufacturing solar energy panels since 1997 and has been able to attain a reasonable business and market position in the years of...
8 Pages(2000 words)Essay

Avon Products or GE Money America Case Study

...Talent Management in Avon Products Insert Insert Avon Products, Inc., is among the world’s largest organization and direct seller of beauty and beauty related products. It stands at fifth position in the cosmetics sector. In 2000, the company had a 4.7% market share and was valued at $5.7 billion dollars. About 98% of the company’s revenue is because of direct sales since the company has 3.4 million sales representatives in 139 distributed over 139 countries. Each representative supplies a company’s product catalog to the clients every two weeks with each new catalog coming with 200-300 new products. A client then selects a product to purchase after which the sales representative places the item selected on order with the relevant... be said...
4 Pages(1000 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Avon Products, Inc for FREE!

Contact Us