A V O N the company for women Global Strategic Recommendation December 6, 2010 Jen Callaghan J.R. Longino Rasa Navickaite Meghan Quinn Lia Torre

Executive Summary

Corporate Overview (Lia) Brief History Mission Statement Current Long Term Objectives Current Short Term Objectives Corporate Strategies Core Competencies

Internal Analysis Management Structure-Lia – HR/Organizational Analysis – Social/Corporate Responsibility Financial/Accounting-Meghan – Profitability Analysis – Liquidity Ratios – Debt/Leverage Analysis – Stock Price History – Consolidated Income Statement

Internal Analysis (cont.) Marketing-Jen – Key Markets – Customer Profile – Product, price, place, promotion – Gross Sales by Geography/Business Segments Technology and Operations-JR – Research and Development – Information Systems – Production and Operations Resource/Capabilities considerations-Rasa – Where is the “Value”? – What is “rare”? – What can or cannot be imitated? – Does the Organizational structure get in the way, or facilitate a Global approach?

Marketing Customer Profile – Women ages Product – Global manufacturer and marketer of beauty and related products. – Competitors: Beauty industry- CPG and direct selling companies – Categories: Beauty, Fashion, and Home. Beauty: color cosmetics, fragrances, skin care and personal care Fashion: fashion jewelry, watches, apparel, footwear and accessories Home: gift and decorative products, housewares, entertainme:nt and leisure products and children’s and nutritional products Price – Avon’s belief is that “beauty should be affordable and accessible to everyone” – Mass and “masstige” offerings – “Smart Value” products were focused on in 2009 Place – #1 Direct Selling firm in the world – Invested $250MM in ‘05 to improve earnings – Avon Sales Leadership — through which Representatives earn by both selling and recruiting — has been rolled out to approximately 50 countries worldwide. – Launched global Internet platform Promotion

Key Markets- Gross Sales 2009 Sales $ mil.% of total Latin America4, North America2, Central & Eastern Europe 1, Western Europe, Middle East & Africa 1, Asia/Pacific China TOTAL10, Central operations for Global Brand Marketing, Global Sales and Supply Chain. Financial information

External Analysis Macro Factors – Institutional Considerations – Economic Forces – Demographic Forces – Technological Forces – Other country-specific considerations o Micro Factors – Relevant five forces analysis (for each relevant industry and geography) – Global Industry Overview and Analysis – Competitive Analysis – Market share analysis

Global Position Current Global Strategy and Position Global Potential Organizational Capabilities SWOT Analysis TOWS Analysis Criteria for Strategy Evaluation Strategic Recommendations ·

Mission/Objectives Revised Mission Statement Revised Long-Term Objectives Revised Short-Term Objectives Key success factors

Global Strategy Selected strategies Selected countries (why?) Strategy implementation Institutional Considerations Industry Considerations Resource Considerations Strategy results and projections For each strategic recommendation, what is the qualitative and quantitative (cost, revenue, and profit) impact ·

Financial Projections (five years) Income Statement Balance Sheet Cash flows

References/Appendix