Andrea Jung Ceo of Avon Essay

Andrea Jung CEO of Avon By: Theresa Bell Andrea Jung CEO of Avon Abstract Andrea Jung has had many executive positions during her career as a vice president, merchandising manager, general merchandising manager, senior vice president and general merchandising manager, executive vice president and is now Avon’s CEO, a Fortune 500 company, and has been for almost the last decade. She is Avon’s first female CEO since it began in 1886. Andrea Jung has introduced new technology to the company and a new line of make-up.

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The cosmetics are now being sold in 143 different countries brining its profits up 41%. She gave Avon a revamp when she took over gaining trust, reliability, and gaining a competitive advantage over their competitors. She used a low-cost business-level strategy to gain the advantage over the competitors. The way Avon sales their product has not changed it still sales product by a door to door method, but they used new technology to go worldwide making the company more profitable.

In 2011 Avon profit has dropped 18% making stakeholders question Andrea Jung’s business-style management skill today.

Avon needs a new plan inorder to gain the advantage over their competitors and this leads the stakeholders to question Andrea Jung’s focus on management. Theresa Bell Keiser University Ron Phillips/Principles of Management December 6, 2011 Andrea Jung CEO of Avon “From the start, Avon embraced the revolutionary concept of women’s economic empowerment, and this continues to be the driving force for Avon. Building on this rich heritage is Avon’s broader commitment to corporate responsibility and the company’s role as a global citizen.

Added to the core commitment to women are two additional pillars of Avon corporate citizenship: philanthropy and environmental stewardship, supported by policies and programs across the company’s entire business enterprise to ensure that Avon holds true to its mission and vision. ” (http://www. avoncompany. com/corporatecitizenship/corporateresponsibility/index. html) Andrea Jung is the Chairman and CEO of Avon and has been for almost a decade, in 2005 she ranked number 5 in the top 50 most powerful women at the age of 48 years old (http://money. nn. com/popups/2006/fortune/mostpowerfulwomen/7. html ). Andrea Jung took over as CEO, after Charles Perrin had problems within the company serving as its CEO for only two years. In 1999, Jung took over as CEO becoming Avon’s first female CEO since the company began in 1886. Since Jung has taken over as CEO, Avon has gone internationally selling worldwide, instead of just being sold to American women. Jung started a new line of make-up directed at teenage girls and college-age women to build Avon’s revenue and to gain younger customers.

In doing this Jung has taken Avon in a different direction, Avon is now being sold in 143 countries, women selling directly to buyers, and selling worldwide this has brought more business into the company making it a more profitable company. “Since Jung started selling worldwide nearly 40 percent of sales are from South and Central America. ” (http://www. notablebiographies. com/supp/Supplement-Fl-Ka/Jung-Andrea. html). Avon is now being sold in Mexico, Russia, and Canada, taking the company into a more competitive market.

Jung has brought technology into the company focusing on the product sold to gain an advantage over their competitors. “In her first five years as CEO, Andrea Jung gave Avon a badly needed facelift. Revenues rose from $5. 3 billion to $7. 7 billion, and profits nearly tripled” The business style she used was low cost. Avon had taken the advantage over their competitors when Jung took over as CEO in 1999.

Jung was responsible for the profits almost tripling using her business style of management. Today Andrea Jung is under fire by the stakeholders due to a drop in sales. Avon’s sales have dropped by 18% leaving them to question Jung’s business management style. The company is in need of a turn around plan to gain the advantage over their competitors. The company is under two different investigations to find out if the company bribed officials overseas from Latin, and China. Jung is working on a long-term plan to fix the problems that the company is suffering from today.

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