Andrea Jung's Rise and Fall at Avon Andrea Jung was Avon's first female CEO until she left under a cloud of poor performance and legal troubles in 2011 (Nuyten, 2012). While CEO, Jung was an energetic and tireless spokesperson for her company, and with her outstanding retails credentials, her winning personality, and her big smile, she was the darling of the media throughout her tenure as CEO. Avon has been a global company for longer than many other companies have been in existence. It has served and employed women before diversity became an issue; and t was customer focused before the concept became an organizational mantra. For more than 10 years, Jung successfully undertook the daunting task of reinventing a whole organization and moving a traditional, door-to-door sales company to the high-tech Internet world without alienating its loyal sales force-the "Avon Ladies" (Sellers, 2000b). In the process, Jung reinvented herself by rethinking what her role was and what was most important to her customers and stakeholders. Referring to the 2008 recession, she stated: "Leaders on the offense, not the defense, will come through this recessionary period" (Jones, 2009a). Jung undertook the makeover of Avon by pouring money into research and development, expanding the overseas markets, and focusing on jazzy marketing that included celebrities such as Salma Hayek. "Jung practically reinvented the company. She united its disconnected international operations into what she called a global 'company for women"" (Global Influentials, 2001). Her strategies paid off. Soon after she took over leadership, Avon's sales jumped from $5.7 billion to over $10 billion in 2009 (Forbes, 2010). She also increased Avon's visibility and credential as a responsible corporate citizen by raising millions of dollars for causes such as the children affected by the September 11, 2001, attacks; "Race for the Cure"; and by joining the campaign to end violence against women with Reese Witherspoon as its global ambassador. Helping women advance was one of Jung's personal passions. She believed that women were the answer to many economic and social challenges. She was also proud that during her leadership, Avon had more women in management than any other Fortune 500 company and that almost half of the company's board are women (Reilly, 2009). Jung bet on the 5.5 million independent Avon Ladies and demonstrated her commitment to them by increasing the number of and incentives for the direct sales representatives and providing free training online and gas money. She involved them in the decision making rather than forcing the necessary changes from the top (Menkes, 2006). Kurt Schansinger, a financial analyst, described Jung as having a "strong vision, high standards, deep knowledge the business, and enough confidence to delegate key tasks" (Brady, 2002). Birdie Jarworski, an Avon representative who met Jung at a company convention, described her as "the rock star of Avon" (Chandra, 2004). Allan Mottus, editor of a cosmetics newsletter, states that Avon "needed a person with charisma and Jung has that" (Chandra, 2004).

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
icon
Related questions
Question

  Read the case, Andrea Jung’s Rise and Fall at Avon (page 209). and answer the following questions:

  • What are the key elements of Andrea Jung’s leadership style? Incorporate the various models presented in chapter 6.
  • How do you explain her success and her fall?
  • Could she avoided her downfall, if so, how?
  • What is one lesson you took away from this story and how can you integrate it into your professional life?
Andrea Jung's Rise and Fall at Avon
Andrea Jung was Avon's first female CEO until she left under a cloud of poor performance and legal troubles in 2011 (Nuyten, 2012). While CEO, Jung was an energetic
and tireless spokesperson for her company, and with her outstanding retails credentials, her winning personality, and her big smile, she was the darling of the media
throughout her tenure as CEO. Avon has been a global company for longer than many other companies have been in existence. It has served and employed women
before diversity became an issue; and it was customer focused before the concept became an organizational mantra.
For more than 10 years, Jung successfully undertook the daunting task of reinventing a whole organization and moving a traditional, door-to-door sales company to the
high-tech Internet world without alienating its loyal sales force-the "Avon Ladies" (Sellers, 2000b). In the process, Jung reinvented herself by rethinking what her role
was and what was most important to her customers and stakeholders. Referring to the 2008 recession, she stated: "Leaders on the offense, not the defense, will come
through this recessionary period” (Jones, 2009a). Jung undertook the makeover of Avon by pouring money into research and development, expanding the overseas
markets, and focusing on jazzy marketing that included celebrities such as Salma Hayek. "Jung practically reinvented the company. She united its disconnected
international operations into what she called a global 'company for women"" (Global Influentials, 2001). Her strategies paid off. Soon after she took over leadership, Avon's
sales jumped from $5.7 billion to over $10 billion in 2009 (Forbes, 2010). She also increased Avon's visibility and credential as a responsible corporate citizen by raising
millions of dollars for causes such as the children affected by the September 11, 2001, attacks; “Race for the Cure"; and by joining the campaign to end violence against
women with Reese Witherspoon as its global ambassador. Helping women advance was one of Jung's personal passions. She believed that women were the answer to
many economic and social challenges. She was also proud that during her leadership, Avon had more women in management than any other Fortune 500 company and
that almost half of the company's board are women (Reilly, 2009).
Jung bet on the 5.5 million independent Avon Ladies and demonstrated her commitment to them by increasing the number of and incentives for the direct sales
representatives and providing free training online and gas money. She involved them in the decision making rather than forcing the necessary changes from the top
(Menkes, 2006). Kurt Schansinger, a financial analyst, described Jung as having a "strong vision, high standards, deep knowledge of the business, and enough
confidence to delegate key tasks" (Brady, 2002). Birdie Jarworski, an Avon representative who met Jung at a company convention, described her as "the rock star of
Avon" (Chandra, 2004). Allan Mottus, editor of a cosmetics newsletter, states that Avon "needed a person with charisma and Jung has that" (Chandra, 2004).
Transcribed Image Text:Andrea Jung's Rise and Fall at Avon Andrea Jung was Avon's first female CEO until she left under a cloud of poor performance and legal troubles in 2011 (Nuyten, 2012). While CEO, Jung was an energetic and tireless spokesperson for her company, and with her outstanding retails credentials, her winning personality, and her big smile, she was the darling of the media throughout her tenure as CEO. Avon has been a global company for longer than many other companies have been in existence. It has served and employed women before diversity became an issue; and it was customer focused before the concept became an organizational mantra. For more than 10 years, Jung successfully undertook the daunting task of reinventing a whole organization and moving a traditional, door-to-door sales company to the high-tech Internet world without alienating its loyal sales force-the "Avon Ladies" (Sellers, 2000b). In the process, Jung reinvented herself by rethinking what her role was and what was most important to her customers and stakeholders. Referring to the 2008 recession, she stated: "Leaders on the offense, not the defense, will come through this recessionary period” (Jones, 2009a). Jung undertook the makeover of Avon by pouring money into research and development, expanding the overseas markets, and focusing on jazzy marketing that included celebrities such as Salma Hayek. "Jung practically reinvented the company. She united its disconnected international operations into what she called a global 'company for women"" (Global Influentials, 2001). Her strategies paid off. Soon after she took over leadership, Avon's sales jumped from $5.7 billion to over $10 billion in 2009 (Forbes, 2010). She also increased Avon's visibility and credential as a responsible corporate citizen by raising millions of dollars for causes such as the children affected by the September 11, 2001, attacks; “Race for the Cure"; and by joining the campaign to end violence against women with Reese Witherspoon as its global ambassador. Helping women advance was one of Jung's personal passions. She believed that women were the answer to many economic and social challenges. She was also proud that during her leadership, Avon had more women in management than any other Fortune 500 company and that almost half of the company's board are women (Reilly, 2009). Jung bet on the 5.5 million independent Avon Ladies and demonstrated her commitment to them by increasing the number of and incentives for the direct sales representatives and providing free training online and gas money. She involved them in the decision making rather than forcing the necessary changes from the top (Menkes, 2006). Kurt Schansinger, a financial analyst, described Jung as having a "strong vision, high standards, deep knowledge of the business, and enough confidence to delegate key tasks" (Brady, 2002). Birdie Jarworski, an Avon representative who met Jung at a company convention, described her as "the rock star of Avon" (Chandra, 2004). Allan Mottus, editor of a cosmetics newsletter, states that Avon "needed a person with charisma and Jung has that" (Chandra, 2004).
Born into a highly educated Chinese immigrant family- her father is an architect and her mother was Canada's first female chemical engineer-Jung always was
expected to succeed. She received a Princeton education, graduating magna cum laude, and speaks fluent Mandarin and Cantonese as well as some French. When she
joined Bloomingdale's, her parents did not originally approve of their daughter lowering herself to become a retailer, although her current position is winning their
applause (Executive Sweet, 2005: 1). After Bloomingdale's, Jung followed her mentor Vass to I. Magnin and later to Neiman Marcus. Jung credits Vass with teaching her
the art of tactful aggression, a style that matches her cultural roots (Executive Sweet, 2005: 2). Jung joined Avon partly because of the corporate culture and partly
because women being a quarter of the company's board of directors appealed to her. She left an immediate connection to Avon, its employees and customers (Executive
Sweet, 2005: 3). Her constant smile and upbeat approach and attitude set the tone for her company and sent a message of confidence and success. She believes that
leading from the heart and flexibility are key to success (Executive Sweet, 2005: 3). Facing new challenges, Jung recommended, "Reinvent yourself before you reinvent
your company" (Jones, 2009a).
Jung was able to achieve impressive results through dogged determination and unwavering confidence in her strategy, which involved the slow introduction of the
Internet and other retail sales and a gradual blending of new retail methods with the traditional direct sales. However, in spite of all her efforts and persistence, an
outdated supply system, increasing competition, poor marketing, and challenges in some of its global markets continued to challenge the company (Morrissey, 2013).
Jung, who was named one of the most powerful women in business on several occasions and celebrated for her actions just a few years prior, was ranked third on
Forbe's 2012 list of CEO screw-ups for rejecting a potentially lucrative merger offer from Coty cosmetics, not grooming a successor, and being under investigation by the
Securities and Exchange Commission for a possible bribery case in China (Nuyten, 2012). In spite of all her efforts, Jung was not able to reinvent herself. Avon continues
to be in need of a massive makeover, a task that now falls to its new CEO, Sherilyn McCoy, who took over in April 2012.
Transcribed Image Text:Born into a highly educated Chinese immigrant family- her father is an architect and her mother was Canada's first female chemical engineer-Jung always was expected to succeed. She received a Princeton education, graduating magna cum laude, and speaks fluent Mandarin and Cantonese as well as some French. When she joined Bloomingdale's, her parents did not originally approve of their daughter lowering herself to become a retailer, although her current position is winning their applause (Executive Sweet, 2005: 1). After Bloomingdale's, Jung followed her mentor Vass to I. Magnin and later to Neiman Marcus. Jung credits Vass with teaching her the art of tactful aggression, a style that matches her cultural roots (Executive Sweet, 2005: 2). Jung joined Avon partly because of the corporate culture and partly because women being a quarter of the company's board of directors appealed to her. She left an immediate connection to Avon, its employees and customers (Executive Sweet, 2005: 3). Her constant smile and upbeat approach and attitude set the tone for her company and sent a message of confidence and success. She believes that leading from the heart and flexibility are key to success (Executive Sweet, 2005: 3). Facing new challenges, Jung recommended, "Reinvent yourself before you reinvent your company" (Jones, 2009a). Jung was able to achieve impressive results through dogged determination and unwavering confidence in her strategy, which involved the slow introduction of the Internet and other retail sales and a gradual blending of new retail methods with the traditional direct sales. However, in spite of all her efforts and persistence, an outdated supply system, increasing competition, poor marketing, and challenges in some of its global markets continued to challenge the company (Morrissey, 2013). Jung, who was named one of the most powerful women in business on several occasions and celebrated for her actions just a few years prior, was ranked third on Forbe's 2012 list of CEO screw-ups for rejecting a potentially lucrative merger offer from Coty cosmetics, not grooming a successor, and being under investigation by the Securities and Exchange Commission for a possible bribery case in China (Nuyten, 2012). In spite of all her efforts, Jung was not able to reinvent herself. Avon continues to be in need of a massive makeover, a task that now falls to its new CEO, Sherilyn McCoy, who took over in April 2012.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON