...Understanding the Client’s Business Company name AVON Research the following information for AVON and complete the table. We will use the information in class to complete the rest of the exercise. Company Stock Symbol and recent closing price. (Give most recent date and closing price) The stock symbol of Avon is AVP, and Avon is traded on the New York Stock Exchange. The closing price is $ 15.98, Sep. 20, 2012 Brief description of core business and product lines. Avon is a leading worldwide beauty company with more than $11 billion annual revenue. The majority of Avon’s core business involves products within the beauty category, including cosmetics, fragrance and toiletries (also referred to as CFT). Avon’s product line includes beauty products, as well as fashion and home products, and features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals, and mark. Brief description of foreign and domestic operations and geographic data. As the world’s largest direct seller of beauty and beauty-related products, Avon earned more than $11 billion in annual revenue in 2011 and markets its products to women in more than 100 countries through approximately 6.4 million active independent Sales Representatives in regions around the world. In 2011, these regions included Latin America; North America; Central and Eastern Europe; Western Europe, Middle East and Africa; Asia Pacific. Avon maintains direct-sales operations...
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...| | | | | | | | | | | | | | | | | | | | Preparing a Comprehensive Case Analysis Avon vs. Competitors | | | | Carrie Rose Business Policy, Professor Frost 4/20/2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Preparing a Comprehensive Case Analysis Avon vs. Competitors | | | | Carrie Rose Business Policy, Professor Frost 4/20/2012 | History Avon is a global manufacturer and marketer of beauty, fashion, and home products. The company operates worldwide using a direct selling model; Avon has approximately 6.5 million independent representatives that sell their products for them across the globe. They are divided into six geographic locations: Latin America, North America, Central, Eastern, and Western Europe, Middle East, Africa, Asia Pacific, and China. The company has numerous distribution centers, manufacturing facilities, and administrative offices in every one of these locations. They initiated global expansion in the in the 1950’s, went public and was listed on the NYSE (New York Stock Exchange) in 1964. (Datamonitor, 2011) Current News In recent years Avon has been undergoing some challenges, both internal and external. Andrea Jung who has been CEO (Chief Executive Officer)...
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...Fall Short by Hannah Karp, Wall Street Journal, December 8, 2011 QUESTIONS: 1: Briefly describe the main points of the article. The article highlights Avon Products Inc.’s financial and regulatory woes. Avon’s wide and persistent gap between net income and free cash flows have been highlighted as the main reason for the company’s problems. The gap indicates that the company's investments aren't paying off very well and that its net income doesn't fully reflect depreciation and other costs of those investments. Other problems like computerized supply-management system in Latin America, Avon's direct-selling model in China and not being able to understand the American consumer have all led to a shortage of free cash flow. The article also talks about Avon being under the scrutiny of Securities and Exchange Commission for allegations of bribing foreign officials and improperly disclosing information to Wall Street analysts. 2: How are Net Income and Free Cash Flows calculated differently? What does it mean when the article states “free cash flow and net incomes tend to balance out over the long run”? * Net income amounts to revenue minus costs and the depreciation of a company's assets * FCF = NOPAT (Net Operating Profit after Taxes ) - Net investment in operating capital When the article states “free cash flow and net incomes tend to balance out over the long run” it means that as a start-up company, free cash flow often falls short of net income because the...
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... 19 Table 3 21 Executive summary This report refers to an evaluation and recommendations on the current market situation of L’Oreal Paris. A brief introduction of the background of L’Oreal Paris and the product category which L’Oreal Paris exists will be also explained in this report. It includes the general idea of cosmetic industry. Furthermore, this report also indicates the macro and micro environment and major competitors. The most significant factors in macro environment are economic, cultural and demographic forces. In this case, it will be also providing the reason and some evidence that explain how these factors are affecting L’Oreal Paris. Otherwise, for, micro environment, this report only discuss between customer and competitors. Next, there is a significant evaluation of the product analyse with reference to the type of products, the three level of products, the branding strategies, and what types of packing and labelling that L’Oreal Paris provided. In addition, a complete analysis of target segment and how current product influence buyer behaviour and meet difference needs and wants. Later on, L’Oreal Paris needs to consider and build the marketing mix to attract more consumers. It includes a brief evaluation of the price, place, promotion and products. Some recommendations associated with several aspects are also provided at the end of this report. The sources of information were collected from academic journals and text...
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...quality could be based on pricing, location, and availability of products. Moreover, Estee Lauder’s competitors may have a higher or lower quality product compared to Estee Lauder based on these factors. After considering these criteria, we have determined seven major competitors, three of which are considered major competitor while the other four would be considered less competitive competitors. Among the seven competitors Procter & Gamble, Avon, L’oreal, Coty Inc, Revlon, Shishedo, Bare Essential, the top three competitors that are fit in our criteria in cosmetic and personal care product manufacturing industry are Procter & Gamble, L’Oreal, and Coty Inc. The first reason is that their market capitals are very competitive. Based on the financial reports 2011, the market capital of Procter & Gamble is the highest score, and the least is COTY Inc, but the earning per share of L’Oreal is the highest revenue among these competitors. It earns $44.77/share comparing to Estee Lauder $23.90/share and P&G $28.90/share. These three companies have the highest revenue in cosmetic and beauty care industry. Procter and Gamble earns...
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...Shakespeare Birthplace Trust Syndicate group 8 Contents 1. Introduction to the Shakespeare Birthplace Trust 2. External analysis of the market in which the Shakespeare Birthplace Trust competes 2.1. Porter’s 5 forces analysis 3. Internal analysis of the Shakespeare Birthplace Trust 3.1. Resource based view of the firm 3.2. VRIN model 3.3. Financial overview 4. SWOT analysis 5. Strategic positioning 6. Executing the strategy 6.1. First Proposal: Bringing Shakespeare characters to life 6.2. Second Proposal: Promoting the Shakespeare Birthplace Trust in London 7. Reference list 8. Appendices 2 1. Introduction The Shakespeare Birthplace Trust (hereafter “SBT”) is a privately funded organisation based in Stratford-Upon-Avon (hereafter “Stratford”) in order to: 1. Promote in every part of the world the appreciation and study of the plays and other works of William Shakespeare and the general advancement of Shakespearian knowledge. 2. Maintain and preserve the Shakespeare properties. 3. Provide and maintain a museum and a library of books, manuscripts, records of historic interest, pictures, photographs and objects of antiquity with particular reference to William Shakespeare, his life, works and times (source: www.shakespeare.org.uk). Although the SBT has multiple revenue streams, its primary business is to sell a quality, historic, Shakespeare related experience to visitors to the Shakespeare houses located in Stratford. This in turn fuels its second...
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...3 Vision of the Company 4 External Assessment 4 Technological trends 4 Demographic trends 4 Economic Trends 5 Political and legal constraints 5 Sociological factors 7 Global trends 8 Industry Analysis 8 Competitor analysis 9 External Factor Evaluation (EFE) Matrix 10 Internal Assessment 11 Company organizational structure 12 Personal policies and management 12 Operational production capacities and policies 13 Financial stability (common ratios and measures) 14 Ratio Analysis 15 Leadership and organizational behavior, corporate culture, etc 20 Marketing 21 Ethical/ legal issues 22 Management information systems and research and development 22 Patents, Trademarks and Proprietary Technology 22 The Internal Factor Evaluation (IFE) Matrix 23 Strategy Formulation 24 Strategic solutions 30 Timeline for Implementation 32 Consequences 33 References: 34 REVLON: CASE STUDY ANALYSIS INTRODUCTION Introduction Revlon is a global color cosmetics, hair color, beauty tools, fragrances, skincare, anti-persiparant/deodorants, and beauty care products company. Revlon case is a comprehensive strategic management case that includes 2006 and 2007 financial statements, competitor information, internal factors, future outlook and more of Revlon Company. It has posted losses for eight consecutive years and has struggled with debt since Ron Perelman purchased a majority stake in the company in 1985. And Revlon is a company in trouble. Net sales...
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...A REPORT ON AVON PRODUCTS Submitted to: Submitted by: Mr. Vikas Anand Neha Sharma Faculty, LPU RR1002B37 11009270 COMPANY PROFILE Avon Products, Inc. (NYSE: AVP) is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world and sales of $9.9 billion worldwide as of 2007. AVON PRODUCTS was founded in 1886, Inc. (Avon) is the largest direct seller of beauty and beauty- related products. With $10.7 billion in annual revenues in 2008(up 8% from 2007), Avon and its approximately 42,000 associates now serve valued customers in more than 100 countries worldwide. Our primary distribution channel is direct selling by our more than 5.8 million Avon sales representatives. Together, these ”Avon ladies” as they are affectionately known, help us to reach millions of customers around the world and handle upwards of one billion transactions annually. Company style Avon Products is a multi-level marketing company. The company's chairman and CEO is Andrea Jung, who was promoted to the position in 1999. She has completed a decade as CEO and is the longest tenured female CEO among Fortune 500 companies. Avon uses both door-to-door sales people ("Avon ladies," primarily and a growing number of men) and brochures to advertise its products. In the United States, products may be found through Representatives...
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... A. Company Background Avon Products, Inc. is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world and sales of $9.9 billion worldwide as of 2007. Avon Product is a multi-level marketing company. The company's chairman and CEO is Andrea Jung, who was promoted to the position in 1999. She has completed a decade as CEO and is the longest tenured female CEO among Fortune 500 companies Avon uses both door-to-door sales people ("Avon ladies," primarily and a growing number of men) and brochures to advertise its products. B. Research Design and Methodology This paper is primarily to formulate and recommend general strategies for the Avon Company in terms of competition in cosmetic and beauty industry. This will determine the company’s situation in the market. II. External Analysis A. Economic Forces Avon is the world's largest direct seller. Being an Avon Representative means you’re selling an iconic global brand while running your own local business. With Avon, you are in business for yourself but not by yourself. Avon's field management, as well as your fellow Representatives, provide mentoring, training and support every step of the way. Powerful Brand Avon Representatives around the world sell four lipsticks every second. Avon has 90% brand recognition in most major markets. In fact, two out of five women worldwide purchased an Avon product in the last year. And more beauty products carry the Avon name...
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...GLOBAL ANALYSIS- AVON MGT 795: Section G11 Professor: Patrick Saparito Jennifer Callaghan J.R. Longino Rasa Navickaite Meghan Quinn Lia Torre Table of Contents EXECUTIVE SUMMARY/ABSTRACT 4 OVERVIEW 5 History and Background 5 Mission Statement 5 Social/Corporate Responsibility 6 BUSINESS ANALYSIS 8 Core Competencies 8 Management Structure 9 Current Objectives 9 Current Short Term Objectives 9 Current Long Term Objectives 10 Current Strategy 10 Advertising and Representative Value Proposition (“RVP”) 10 Product Line Simplification(PLS) 10 Strategic Sourcing Initiative 10 Enterprise Resource Planning System 11 Zero-Overhead-Growth 11 Restructuring Initiatives 11 SWOT Analysis 13 Strengths 13 Weaknesses 15 Opportunities 17 Threats 22 FINANCIAL INFORMATION 23 SUMMARY OF RECOMMENDATIONS 25 Technology and Social Media 25 Focusing on International Growth- the BRIC Countries 27 Brazil 28 Recommendations for Brazil 33 Russia 34 Recommandations for Russia 40 India 41 Recommendations for India 46 China 47 Recommendations for China 53 Conclusion ………….…………………………………………………………………………………….54 REFERENCES 55 AVON- A GLOBAL COMPANY FOR WOMEN EXECUTIVE SUMMARY/ABSTRACT Avon is a powerhouse in the beauty industry with over $10 Billion...
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...GLOBAL ANALYSIS- AVON MGT 795: Section G11 Professor: Patrick Saparito Jennifer Callaghan J.R. Longino Rasa Navickaite Meghan Quinn Lia Torre Table of Contents EXECUTIVE SUMMARY/ABSTRACT 4 OVERVIEW 5 History and Background 5 Mission Statement 5 Social/Corporate Responsibility 6 BUSINESS ANALYSIS 8 Core Competencies 8 Management Structure 9 Current Objectives 9 Current Short Term Objectives 9 Current Long Term Objectives 10 Current Strategy 10 Advertising and Representative Value Proposition (“RVP”) 10 Product Line Simplification(PLS) 10 Strategic Sourcing Initiative 10 Enterprise Resource Planning System 11 Zero-Overhead-Growth 11 Restructuring Initiatives 11 SWOT Analysis 13 Strengths 13 Weaknesses 15 Opportunities 17 Threats 22 FINANCIAL INFORMATION 23 SUMMARY OF RECOMMENDATIONS 25 Technology and Social Media 25 Focusing on International Growth- the BRIC Countries 27 Brazil 28 Recommendations for Brazil 33 Russia 34 Recommandations for Russia 40 India 41 Recommendations for India 46 China 47 Recommendations for China 53 Conclusion ………….…………………………………………………………………………………….54 REFERENCES 55 AVON- A GLOBAL COMPANY FOR WOMEN EXECUTIVE SUMMARY/ABSTRACT Avon is a powerhouse in the beauty industry with over $10 Billion...
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...FINANCIAL INFORMATION 23 SUMMARY OF RECOMMENDATIONS 25 Technology and Social Media 25 Focusing on International Growth- the BRIC Countries 27 Brazil 28 Recommendations for Brazil 33 Russia 34 Recommandations for Russia 40 India 41 Recommendations for India 46 China 47 Recommendations for China 53 Conclusion ………….…………………………………………………………………………………….54 REFERENCES 55 AVON- A GLOBAL COMPANY FOR WOMEN EXECUTIVE SUMMARY/ABSTRACT Avon is a powerhouse in the beauty industry with over $10 Billion in sales and claims its stake as being the largest direct seller in the world. After performing extensive research on the company using multiple online tools, journals, articles and texts, we have collected enough evidence to make recommendations as to how Avon can continue its global expansion while still maintaining long and short term company objectives and staying within core competencies. We believe Avon can and should expand strategically into each of the BRIC countries while also leverage the power of the technology and the Internet to increase business through social...
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...MAPPING BOROPLUS AGAINST VASELINE IN GLOBAL MARKET SUMMER INTERNSHIP REPORT 2012 INTERNSHIP REPORT AT EMAMI LTD. KOLKATA UNDER GUIDANCE OF MR. BRAJESH KUMAR PREPARED BY: SHAUNAK MILIND SARDESSAI PGPM 20110335 21ST SEPTEMBER 2012 1 ACKNOWLEDGEMENT It has been rightly said that we are built on the shoulders of others but the satisfaction that accompanies the successful completion of any project would be incomplete without the mention of the people who made it possible. I would first of all like to thank Emami Limited for giving me this opportunity to learn, share my ideas, views, and thoughts on various subjects through this project, undertaken as a part of curriculum requirements. I am highly indebted to my project guide Mr. Brajesh Kumar – General Manager Marketing (SAARC, SEA & EUROPE), for giving me an opportunity to work with him. Without his adroit guidance, constant support and inspiration this project would have not been possible. The value addition that I derived under his guidance by means of various side activities such as sharing learning’s by presentations, facilitating surveys etc. has culminated in a life-long valuable experience. I would like to acknowledge the contribution of Mr. Devanshu Seth, International Brand Manager, for his valuable inputs in completing the project. The ideas shared by Mr. Mridul Greenwold, Asst. Brand Manager, have also helped me tremendously in driving my project through its journey. I would also like to express my gratitude...
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...Procter & Gamble Equity Valuation & Analysis As of November 1, 2007 Raider Investments Group Brian Hooper Tyler Yenzer Nathan Yosten Dustin Bradford Brian.D.Hooper@ttu.edu Phillip.T.Yenzer@ttu.edu Nathan.Yosten@ttu.edu Dustin.Bradford@ttu.edu Table of Contents Executive Summary Business & Industry Analysis Company Overview Industry Overview Five Forces Model Rivalry Among Existing Firms Threat of New Entrants Threat of Substitute Products Bargaining Power of Buyers Bargaining Power of Suppliers Key Success Factors Firm Competitive Advantage Analysis Future Competitive Analysis Accounting Analysis Key Accounting Policies Potential Accounting Flexibility Actual Accounting Strategy Quality of Disclosure Qualitative Analysis of Disclosure 36 31 33 35 10 11 13 13 18 20 22 24 24 28 30 5 2 Quantitative Analysis of Disclosure Sales Manipulation Diagnostics Expense Manipulation Diagnostics Potential “Red Flags” Undo Accounting Distortions Financial Analysis Liquidity Analysis Profitability Analysis Capital Structure Analysis IGR/SGR Analysis Financial Statement Forecasting Cost of Equity Estimation Valuation Analysis Multiples Valuation Discounted Free Cash Flow Model Discounted Dividends Model Residual Income Model Long-Run Return on Equity Residual Income Model Abnormal Earnings Growth Model Credit Analysis 40 41 44 49 49 50 63 72 76 79 83 86 95 96 98 100 103 106 3 Analyst Recommendation Appendix Regression Analysis Income Statement Balance Sheet Statement...
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...MARKET SURVEY REPORT ON CUSTOMER SATISFACTION ON [pic] INPARTIAL FULFILLMENT OF DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION M.J.P.R.U, BAREILLY (SESSION: 2010-2011) SUBMITTED TO: SUBMITTED BY: Mrs. Sandhya Tripathi Pragati Dixit IIMS Faculty BBA-VI sem-C 915584 contents: 1. introduction 2. objectives 3. research methodology 4. company profile 5. literature review 6. data presentation and analysis 7. FINDINGS 8. conclusion 9. limitations 10. RECOMMENDATION 11. BIBLIOGRAPHY 12. ANNEXURE INTRODUCTION INTRODUCTION: L’Oreal is the global leader in cosmetics, with 25 brands. They have 5 key areas of expertise − hair care, hair colorants, skincare, make-up and fragrances. There is a huge motive behind the study of L’Oreal. The study will help us to understand the operations which are carried out by L’Oreal. The operations such as marketing strategies, business plans, company at a glance, business structure, management and operating structures , competitors position as...
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