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Current Situation Performance In 1999 Avon Products Inc was one of the worlds largest direct-selling merchandisers of beauty and beauty-related products Avon markets product lines to women in the United States as well as in many different countries through 28 million independent sales representatives who sell primarily on a door-to-door or direct selling basis Total operating profits in 1999 were 5494 million up slightly from 4732 in 1998 However predictions show that Avons profit in its fourth quarter is expected to fall short of expectations Strategic Posture A series of corporate principles were developed by McConnell and provided direction and continued to influence decision making for the company throughout its history The principles are 1 to provide individuals an opportunity to earn in support of their well-being and happiness 2 To serve families throughout the world with products of the highest quality backed by a guarantee of satisfaction 3 To render a service to customers that is outstanding in its helpfulness and courtesy 4 to give full recognition to employees and Representatives on whose contribution Avon depends 5 to share with others the rewards of growth and success 6 to meet fully the obligations of corporate citizenship by contributing to the well-being of society and the environment in which it functions 7 to maintain and cherish the friendly spirit of Avon Vision To be the company that best understands and satisfies the product service and self-fulfillment needs of women globally Objectives are merely implied from performance They are Sell products directly to customers Maintain a good image of the company Develop a domestic and international network of sales agents Strategies Avon enjoys a global reputation stemming largely from its formidable worldwide network of independent sales agents In 1998 Avon announced a strategic plan that included expanded consumer-marketing programs to drive growth in beauty sales and a modernized direct-selling system that used the new technology Key elements of the strategic plan include
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