Essay Avon Products

Words: 4036
Pages: 17
Open Document
~

IiItlEI

Harvard Business School

9-289-049
Rev. August 5.1994

Avon Products, Inc.
On June 1, 1988, Hicks B. Waldron, chairman and chief executive officer of Avon Products, Inc., was reviewing a package of proposals that he and his financial advisors were to present to the Avon board of directors for final approval the following day. These proposals included (1) a public announcement that Avon would explore plans to divest two of its businesses, probably at a considerable book loss; (2) a reduction of the dividend on Avon's common stock; and (3) an exchange offer under which Avon would issue an unusual preferred stock in exchange for up to 25% of its common shares.

Background
Avon Products, Inc., founded in 1886, was one …show more content…
Mediplex and Retirement Inns both managed retirement living centers of various types. Consistent with this increasing focus on the provision of health care, Avon sold Mallinckrodt in 1986 for $675 million. Although Mediplex and Retirement Inns served patients who paid for care themselves or through private insurers, Foster Medical's revenues came primarily from Medicare, the largest public health insurance program in the United States. A change in Medicare in 1986 effectively cut Foster Medical 's charges for Medicare patients by 18%. Foster Medical was not able to respond successfully to this change, and in 1987, Avon's management recommended to the board that it review Avon's commitment to the health care industry. The board concluded that Foster Medical, Mediplex, and Retirement Inns could no longer grow at an attractive rate and still show acceptable profits. In addition, by 1987 the performance of the Beauty Group had begun to improve markedly. The board decided that the Beauty Group's strength permitted Avon to shed the Health Care Group companies. It started by selling Foster Medical Supply, a distribution company, in November 1987. Early in 1988, Avon also began the process of selling the entire Foster Medical Corporation. Avon anticipated an after-tax loss of $125 million on the sale. Also in 1987, Avon acquired Giorgio , Inc. for $165 million in cash and Parfums Stern, Inc. for $160 million. These acquisitions not only added prestige fragrances, sold
Show More

Related Documents: Essay Avon Products

Case Study for Avon Essay

No. | Content | Pages | 1 | Brief Introduction of Avon Product Inc. | 2-4 | 2. | Situational Analysis A. General External Environment [PEST] 1. Political/Legal 2. Economic 3. Social-cultural 4. Technological B. SWOT Analysis * Strenght * Weakness * Opportunity * Threats C. Industry AnalysisThreat of New EntrantsBargaining Power of SuppliersBargaining Power of BuyersProduct SubsitutesIntensity of Rivalry among Competitors D. Matrix Used 1. Internal Factor Evaluation…

Words 8378 - Pages 34

Avon case study Essay

independent representatives. Answer: International cadre development is I believe Avon has been very successful in its international human resources management in global market. First of all, Avon’s first female CEO took charge of company and implemented efficient policies to make the company get out of debt problem and sluggish sales problem. Secondly, Avon also focuses on international market. It is stated that Avon has more than 5million independent representatives worldwide. In 2005, Avon’s revenues…

Words 1808 - Pages 8

lamonica s segmentation market 571 Essay

today there are many successful independent business owners who are woman. Within this paper the writer intends to focus on the segmentation and target market for Avon Company Inc., discussing their demographic, psychographic, geographic, and behavioral characteristics, as well as positioning a statement for the company. Avon's History Avon was established in 1886 by David H. McConnell, a traveling book salesman. The formulation came after McConnell realized female consumers had little or no interest…

Words 2247 - Pages 9

Essay Social Marketing CAmpaign Analyze

Avon Breast Cancer Crusade Social Marketing Campaign Lee & Kotler (2011) define social marketing as "differing from other areas of marketing only with respect to the objectives of the marketer and his or her organization. Social marketing seeks to influence social behaviors not to benefit the marketer, but to benefit the target audience and the general society." This technique has been used extensively in international health programs, for example Avon Breast Cancer Crusade, by Avon, a leading…

Words 687 - Pages 3

Avon In China Essay

Avon in China Entering into the Chinese commercial world was a very risky move for Avon. As any international investment is risky, China is even more so due to the unstable economy at the time as well as the corruption in the government. When Avon went into the country, analysts reacted “Avon’s venture is risky because you don’t know what’s going to happen in China.” Avon went into the venture with an American ignorance. It was said in the case that Avon officials thought that it would be “virtually…

Words 952 - Pages 4

Week2EndofChapterQ A Essay

being partially performed. The Sacketts win! Chapter 16 16.8- Specific Performance Issue Should the contract be enforceable by law under specific performance after Avon “uncoupled” the joint venture? In Liz Claiborne, Inc. v. Avon Products, Inc., Claiborne entered into a joint venture with Avon under the conditions that Avon would procure and manufacture the fragrances, toiletries, and cosmetics while Claiborne would provide their trademarks, names and marketing experience. Both parties also…

Words 1437 - Pages 6

Essay on Marketing and Information

Good products and marketing programs begin with a thorough understanding of consumer needs and wants Companies also need an abundance of information on competitors, resellers, and other actions and forces in the marketplace. Marketers are viewing information not just as an input for making better decisions but also as an important strategic asset and marketing tool. A company’s information may prove to be its chief competitive advantage. Competitors can copy each other’s equipment, products, and…

Words 1588 - Pages 7

Importance Of Entrepreneurship

Avon and the rest of our competitors sell their products at lower prices and Avroy Shlain’s products are a bit expensive. FINDINGS ABOUT THE ORGANISATION Avroy Shlain Cosmetics has a unique rewards programme that offers amazing incentives, greater earnings potential and a rewarding way of earning…

Words 1001 - Pages 5

Essay on Strategic marketing project

Herbal Cosmetic Products in Thailand Rojanadilok, Thanisorn*, Bunchapattanasakda Chanchai School of Management Shinawatra University, Thailand *lovefirstsign@hotmail.com Abstract: This research investigated the factors that influence marketing strategies of imported herbal cosmetic products in Thailand. The study is qualitative research using in - depth interview to collect primary data and use content analysis to analyze the obtained data. The facial herbal cosmetics products using in this…

Words 3040 - Pages 13

Managerial Economics Essay

Economics Analysis: Toilet Preparation Manufacturing Industry and L’Oreal S.A. Toilet Preparation Manufacturing Industry, or called personal products is categorized to the consumer goods sector. Cosmetics companies began to emerge during the 19 century because the increasing industrialization and growing worldwide economic participation. And then, the cosmetics industry was established in the beginning of the 20-century, and it is truly an international business. One of the…

Words 2001 - Pages 9