Question: 1. What organizational structure problems did Avon experience prior to the reorganization? 2. What changes did Andrea Jung make to Avons organizational structure? In your

1. What organizational structure problems did Avon experience prior to the reorganization?
2. What changes did Andrea Jung make to Avon’s organizational structure? In your opinion, were these structural changes appropriate? Why or why not?
3. This case study also refers to problems and improvements in managerial decision making. In what way(s) does decision making relate to organizational structure here?

After several years of stellar growth and earnings, Avon Products Inc. suddenly experienced declining sales around the world. CEO Andrea Jung, who led the company through its good years, now had to become a turnaround expert. “I’d never done anything like that before,” admits Jung. “My first reaction was: ‘I get it. I see the numbers, but I just don’t know if I, or we, have the stomach for it.” One of Jung’s strategies was to reorganize Avon so that it would be more nimble and responsive to the market. This Business Week case study describes how Avon CEO Andrea Jung introduced a new organizational structure and made other changes to return the cosmetics company to profitability and growth. Read the full text of this Business Week article and prepare for the discussion questions below.

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