This website uses cookies to ensure you have the best experience. Learn more

Avon Financial Crisis Essay

741 words - 3 pages

Avon, also known as the Company for Women, has been in business since 1886 and honored as one of Fortune's "50 Best Companies for Minorities" and operates in over 100 countries. Their products range from perfume, makeup, jewelry and even clothes. In 2003, 63 percent of its $6.8 billion revenue was generated from markets outside of the United States. The multinational U.S. Company, which boasted $7.7 billion in annual revenues last year, is just one of many international companies whose profits have suffered due to the weak currency exchange.The Asian financial crisis was a financial crisis that started in July 1997 in Thailand, and affected currencies, stock markets, and other asset prices of several Asian countries. It is also commonly referred to as the Asian currency crisis or as the IMF crisis. Indonesia, South Korea and Thailand were the countries most affected by the crisis. So, how prepared is Avon now for another currency crisis? Since 1996, executives have taken numerous steps to protect itself from the effects of the fragile currency exchange system. One major step Avon took was having all 10 country operating units to remit their earnings on a weekly basis instead of a monthly basis. This helps in that they are exchanging the currency into U.S. dollars more often (at the rate of purchase) as opposed to taking the risk of the value dropping and traded at much lower rates weeks after the original transaction took place. The flip side to this is that there is a risk the company could lose potential profits if the rates rise.Another money saving step Avon chose to take was to purchase the majority of their raw materials locally, saving the high import costs that their competitors must pay. But in a market that has a fascination for the "made-in" foreign tag, will this affect their sales? No, apparently not. They pushed the local made products to their sales force and have had no negative results. The company also invested in hiring new saleswomen with the intent of gaining new customers.In an attempt to model a successful emergency funding program, the Latin American Reserve Fund (FLAR), Avon brought in their Latin American Executives. (The FLAR was set up by Bolivia, Columbia, Ecuador, Venezuela, Peru and Costa Rica. It serves as an emergency fund in the...

Find Another Essay On Avon Financial Crisis

Small Business Management - A Case Study

2176 words - 9 pages provided in the shop, a paper delivery service is also available along with the full complement of groceries, fresh sandwiches, confectionery, videos, cigarettes and alcohol etc..The newsagents is located in Stratford upon Avon, on the Birmingham road, approximately half a mile from the town centre and situated within a very residential area. Tesco's are the immediate traders to the newsagents.Nine years ago, the newsagents was expanded with the

A corpus-based, comparative study of ‘wage’ and ‘salary’

2295 words - 10 pages disparity and minimal payments (e.g. “poverty”, “low pay”), it becomes associated with such contexts, and “acquires some of [those] meanings” (Stewart 2010:1). Conversely, Appendix F is full of terms describing financial security (e.g. “billions”, “gains”), connecting ‘salary’ with more profitable ventures. Despite the article’s negative content, such quantities bestow positivity upon ‘salary’, as people dream of obtaining such wealth (Cullen 2003

Exploring the Benefits of Outsourcing

2285 words - 9 pages demands through imports (Parry). In the short-term, outsourcing also gives other countries the opportunity to repay financial debts owed to the United States (Saleem). In 2003, the World Bank estimated that the attainment of salaries above the $2 per day poverty level for 320 million people, a portion of which employed by external providers of multinational corporations, is within reach by 2015 if specific barriers to globalized trade and

Shakespeare' s Progressive Significance in His Tragedy "Romeo and Juliet"

5660 words - 23 pages experience are very rough, which even once were regarded as a mystery. Shakespeare was born in Stratford-on-Avon, a small town to the northwest of London. His father was a burgher, a well-to-do glove maker and later became an alderman of the town. Shakespeare may have attended the grammar school of the town where he may have learned “little Latin and less Greek”, as noted by his contemporary Ben Johnson. It is apparent that about the year 1578

When the Bubble Burst

1539 words - 6 pages saw that greed a huge factor feeding the housing crisis, yet I didn’t know which side was to blame. My sister and brother in-law wanted more house than they could afford, and the bank was willing to lend them more than they should. This crisis sent the government into action to avoid what many were calling the greatest financial crisis of our time. Although many experts suggest an economic depression was imminent without the Troubled Asset

phase diagram

4456 words - 18 pages Introduction: Chemical equilibrium is a crucial topic in Chemistry. To represent and model equilibrium, the thermodynamic concept of Free energy is usually used. For a multi-component system the Gibbs free energy is a function of Pressure, Temperature and quantity (mass, moles) of each component. If one of these parameters is changed, a state change to a more energetically favorable state will occur. This state has the lowest free energy

Revolutionary Work of Art

1890 words - 8 pages Walter Benjamin emphasizes in his essay, “The Work of Art in the Age of its Technological Reproducibility” that technology used to make an artwork has changed the way it was received, and its “aura”. Aura represents the originality and authenticity of a work of art that has not been reproduced. The Sistine Chapel in the Vatican is an example of a work that has been and truly a beacon of art. It has brought a benefit and enlightenment to the art

Enlightenment Thought in New Zealand Schools

1594 words - 6 pages In this essay I will be looking at how the political and intellectual ideas of the enlightenment have shaped New Zealand Education. I will also be discussing the perennial tension of local control versus central control of education, and how this has been affected by the political and intellectual ideas of the enlightenment. The enlightenment was an intellectual movement, which beginnings of were marked by the Glorious Revolution in Britain

Psychological Egoism Theory

2240 words - 9 pages The theory of psychological egoism is indeed plausible. The meaning of plausible in the context of this paper refers to the validity or the conceivability of the theory in question, to explain the nature and motivation of human behavior (Hinman, 2007). Human actions are motivated by the satisfaction obtained after completing a task that they are involved in. For example, Mother Teresa was satisfied by her benevolent actions and

How Celtic Folkore has Influenced My Family

1587 words - 6 pages Every family has a unique background that influences the way they live and interact with other people. My parents, who emigrated from Ireland to the States with my three brothers in 1989, brought over their own Celtic folklore and traditions that have helped shaped the way our family operates and lives. One aspect of folklore that has helped shape my family dynamic is the Celtic cross—both its background and what role it has played in our lives

Julia Margaret Cameron

1406 words - 6 pages At a time when women were looked upon as being homemakers, wives, mothers and such the late 1850's presented a change in pace for one woman in specific. Photography was discovered in 1826 and soon after the phenomenon of photography was being experimented with and in turn brought new and different ways of photo taking not only as documenting real time, but also conceptualizing a scene in which an image would be taken. Julia Margaret Cameron will

Similar Essays

A Woman &A Man Essay

3910 words - 16 pages Joyce Lin Li Fang, at the time of Jurong Technologies' IPO in June 2000, was the majority shareholder of the company, holding 62.65 million shares of the Company.When asked if she's worried about the electronics market slump in the US, and whether it would affect her business, she replies with this story, "You know, during the Asian Crisis, I asked one of my Malaysian workers whether the crisis in Malaysia was really bad, and how it affected her

Suez Crisis Essay

2210 words - 9 pages The Suez Crisis is often cited by some historians as one of the worst historical decisions that imprinted an indelible mark on the then British premier Sir Antony Eden. More often than not the decision by Eden to invade Egypt following a disagreement about nationalization of the Suez Canal is often cited as a the worst foreign policy decision that destroyed Eden political career and humiliated British empire in its wake. The decision by Eden to

Citigroup Analysis

5593 words - 22 pages sufficient to scare off the potential investors, then by knowing the thought that Citigroup's financial system cannot withstand next world crisis is not convenience.( 2014)According to Mamani Older: "IT security isn't Citi's core business, and most money and resources are devoted to supporting the company's traders and investors, Older said. The bank has plenty of security software and hardware, and relies heavily on its security

Small Business Case Study

2008 words - 8 pages sandwiches, confectionery, videos, cigarettes and alcohol etc.. The newsagents is located in Stratford upon Avon, on the Birmingham road, approximately half a mile from the town centre and situated within a very residential area. Tesco's are the immediate traders to the newsagents. Nine years ago, the newsagents was expanded with the intention of providing the local inhabitants with a friendly convenient service. Lack of competition at the time