Le’Shundia K.Porter
August 1, 2012
HRM 532
Assignment 2 Avon Products
Dr. Sue Lowe

Abstract
Avon is the company that stands for beauty, innovation, and optimism, and above all for women. Avon Products, Inc. Avon is based in New York. The company appoints the manufacture and marketing of beauty and complimentary products primarily in North America, Latin America, Europe, and Asia Pacific. Avon’s products are classified into three product categories: Beauty, Beauty Plus, and Beyond Beauty. The Beauty category consists of cosmetics, fragrances, skin care, and toiletries; Beauty Plus includes fashion jewelry, watches, apparel, and accessories; and Beyond Beauty comprises home products, gift and decorative products, candles, and toys. Andrea Jung became president and CEO of Avon in 1999 and has totally makeover the company. Under her leadership, the company has updated its product line, launched new advertising, and created a new image. Avon’s sales have increased by 30 %, profits 40%, and the stock price has dramatically improved. Jung’s has been able to align the firm’s core capabilities with its strategic targets which has lead to outstanding results. It appears that Jung has been able to establish a clear vision for the firm that has been incorporated in every aspect of the firm’s operating system. This vision is shared by all employees and representatives of Avon motivate the company for continued success.

Provide a brief description of the status of the company that led to its determination that a change was necessary.
Avon has experienced several problems moving its brand in many of its product lines. It showed positive net sales and earnings growth for the past five years have been in single digits and steadily declining year after year. Specific problem areas are stagnated sales, slow earnings growth, limited