Cosmetic major Avon restructures global ops

08 Dec '05
3 min read

Cosmetic company Avon Products Inc announced changes to its global operating structure to bring senior management closer to its key business geographies, strengthen global integration, speed information flow and position the company for sustainable growth.

Avon said that it will now manage Central and Eastern Europe and also China as stand-alone business units due to their strategic importance and long-term growth potential.

The change increases the number of Avon's geographic regions -- now called Commercial Business Units -- to six. The other four are: North America; Latin America; Western Europe, Middle East and Africa; and Asia Pacific.

In addition, Avon said that it now will manage its Brand Marketing and Supply Chain functions as unified Global Business Units, with regional staff in the functions reporting directly to the Brand Marketing and Supply Chain global function leaders.

Avon said that the new structure will have dual reporting to Andrea Jung, chairman and chief executive officer, and Susan J. Kropf, president and chief operating officer, who will work together as the "Office of the Chairman." The company said this new structure is the first step in its initiative to eliminate layers in the organization, give management a clearer line of sight to day-to-day business operations and get closer to its Representatives and customers.

Executive Appointments
In line with the structural changes, Avon announced the following Commercial Business Unit leader appointments:

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