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).
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).
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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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?
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