1) why is avon so committed to diversity?

2) select another retailer that also values diversity. how does this commitment affect its financial results?

3) what values have helped avon to be a successful company even after 125 years?

CASE 14 Avon Embraces Diverst Women have always played an important role at Avon, management team ente revenue and is 125 years old. Mrs. P. E. Albee of to reach women in a changing marketplace selling Avon products since 1886-34 years before women policies to promote more women into higher-level red. Led by CEO Jim Preston, leading global beauty firm that has S10 billion in annual Avon refocused itself on its roots and developed strategies unchester New Hampashire, pioneered the company's Preston realized that Avon's customers needed to be how-famous direct-selling method. Women have been represented in the senior management team. He enacted the United States won the right to vote! As the world's tions. In largest direct seller, Avon markets to women in more than culture to being more accommodati 100 countries through the efforts of more than 6 millionemployees. addition, Preston shifted the firm's organizational of all its e current management team launched several sales representatives. Avon's mer- chandise includes beauty products, fashion jewelry, and ependent Avon growth initiatives to build on Avon's strong brand name and distribution channel through its customer representa- apparel Although most of Avon's employees and customers are tive network. Avon product lines include private-label women, until recently the company was run by men. brands such as Avon Colot, Anew, Skin-So-Soft, Advance However, a series of poor strategic decisions in the 1980s Techniques Hair Care, Avon Naturals, and Mark. Avon company to increase aggressively the number of also markets an extensive line of fashion jewelry and apparel. women and minorities in its executive ranks. This decision to increase diversity among its managers was a major fac- tor in Avon's improved financial performance. Avon sells more than 125 million lipsticks per year, or 4 lipsticks every second of the day, making Avon the top Today, Avon is recognized as a leader in management seller of lipstick in the mass market. Its Anew brand is the diversity. Fifty-five percent of Avon's management posi- number-one line of anti-aging skin care products in the tions are filled by women, and half of the members of its world. The Advance Techniques hair care line offers high board of directors are women. The company also has performance hair products for every hair type, age undertaken minorities have opportunities for development and ad- vancement. In the United States and elsewhere, Avon has various programs to ensure that women and and ethnic background to accommodate a Avon Wellness promotes a balanced, healthy lifestyle plements, a weight management line, and therapeuti wide consumer base. for women and their families and includes nutritional sup- Curves, an international fitness franchise, to help women parents' net- work, a Hispanic network, a black professional association, ple an Asian network, and a gay and lesbian network. The net products. Avon partnerye works act as liaisons between associates and managem to bring their voices to bear on critical issues that affect look and feel their best. Through this partner both the workplace and the marketplace. Avon is commit Wellness offers an array of Curves-branded exercise vid- ent ted to social responsibility The Avon Foundation, founded eos and DVDs, fitness apparel, accessories, and comfort in 1955, is the largest corporate philanthropic organiza- able footwear that support an active lifestyle. dedicated to womens causes globally focses ons using technolk to support the efforts breast cancer and domestic violence. of its 6 million independent sales representatives. An elec- In the 1970s, Avon's top management team was com- tronic ordering system allows the representatives to run posed solely of men. Avon essentially ignored its own mar- their businesses more efficiently and improve order- keting research that indicated more women were entering processing accuracy. Avon representatives use the Internet the workforce and seeking professional careers. It also to manage their business electronically. In the United States failed to realize that cosmetic needs were changing and Avon representatives use an online marketing tool called new approaches for selling products to its customers were needed. Sales growth slowed, and the company reacted by seeking growth von.com, which helps them build their own Avon oped in partnership with Avon. Avon e-representatives unrelated diversifications. Finally, as the firm was on the brink of bankruptcy, a new top can promote special products, target specific groups of