She immediately went after management, which was not a surprising move; given that her vision of Avon was a company built on the success of its army of small business owners. In fact, "she eliminated eight levels of management and cut costs by $300 million" (George, 2007).
While cutting costs and eliminating management positions was hardly a revolutionary position for an executive faced with falling sales and stagnant growth, Jung's next move was significant. Rather than concentrate on increasing profits in her established markets, Jung took Avon into the Chinese market. In retrospect, every current market leader would suggest entering the Chinese market, but it was actually a visionary position in 2005, when not all industries were willing to try their hands in China. That move proved very successful; the Chinese market has become a large part of Avon's business. By 2007, Avon was once again experiencing double-digit sales growth and its stock price had rebounded from its 2005 low (George, 2007).
One of the most innovative things that Jung did was to adopt a new vision for Avon. As a cosmetics company, Avon had long been driven by a female customer base. Moreover, because its sales format was largely an at-home entrepreneurial business with women small business owners, Avon was always a female-friendly company. Jung did not try to reimagine Avon as something different or try to reach out to an underserved male audience. On the contrary, Jung capitalized on Avon's image as a company for women and officially called on Avon to become "The Company for Women" (George, 2007). She stressed that Avon was a way for women to achieve economic freedom. Of course, by the time Jung was pushing this vision of Avon, women had had years of economic opportunities, but Jung offered something different. With Avon, women could achieve economic freedom, and they could do it without having to enter into a traditional 9 to 5 work environment with all of its hindrances for working mothers. In this way, Jung became a wonderful leader for the rank-and-file in Avon, by supporting their efforts at self-sufficiency. She strengthened this position when she eliminated management positions when faced with a financial crisis, rather than making decisions...
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