OPENING CASE Application Sheri McCoy is the CEO of Avon Corporation. Prior to thou joining Avon, she worked at Johnson and johnson, where she was responsible for the pharmaceutical and consumer business divisions of the company In 2013, she was named by Fortune magazine as the 20th woman on their list of "s0 Most Powerful Women in Business." Looking ahead, giv she said her ISIon is to restore Avon's image as an iconic beauty brand and its leadership position in global direct cent rati cons deve selling She is a big believer in Avon's mission of empower to A belie Avon is the world's largest direct seller with six million representatives in more than 100 countries, and the world's fith argest beauty company,Lately there has not been much to celebrate at Awon Over the last five years, the stock has talen more than 50 percent and net income has lunaed as wellompourding its weakening financial situa- iona perdng eglatory investigation. The Securities and Exchange Commsson is examinng whether Awon officials made icit payments to offiCials of foreign governments actions that could armount to bribery in violation of the Fore gr Comup Practices Act A few months ater she took over CEO McCoy an- nounced her turnaround plan: cut 1.500 jobs, pull out of surugi ingmarkets such as Vietram and South Korea, invest $200 million to update its information systems, embrace digital and social media as contemporary selling tools in- crease sales in hard-hit markets ike the United States and the United Kingdom, and push premium brands like its anti- agng line Anew. She emphasized that the focus of her strat- egy is the Avon sales representative and the customers CEO McCoy sees technology as the biggest differ ence in terms of changing the buying and selling experi- ence of customers and Avon reps. She believes that Avon's future survival will depend on its ability to evolve and adapt to charnging market and economic conditions. Asked Web s e describe her leadership style. Ms. McCoy said she is OP 2 Ca Swers its lead To 1.71, on on Pror to thoughtful, disciplined and deliberate. She is a people Son where centered leader As she puts it to thinkI set asp nd contumer rabional but neasonable goals and encourage my team to e was named their list of and it's about getting the night people around you and oking ahead giving them the supportin Throughout her career. she has as an sconic consistently promoted employee engagement, leadership global direct development and diversity of thought. She is committed of empower clearly recognize that people drive results achieve them bo Avon's culture and its five core values of trust, respect beliet hunility and integrty OPENING CASE QUESTIONS: d the world s 1. Is Avon's culture a contributing factor to its struggles? Explain. 2 The text points out that an organization's culture serves two important functions: (1) it creates internal unity and (2) it helps the organization adapt to changes in the external environment Has this been the case at Avon? recent income as arcial sunE 3. The chapter discusses the characteristics of high-performance (or strong) and low-performing (or weak) cultures. How will you describe Avon's culture 4. k Avon's culture more of a competitive, adaptive, burcaucratic, or cooperative type? 5. What role kan CEO McCoy play in fostering a climate of strict ethical standards at Avon? cut embracn 6. What is Avon's stance on diversity? Cin you answier ary of these questions Youl find an- snr to thes questions and learn more about Avon and s learerto truhor he chapter eleam more abOut Awcn and Sheni McCoy visit Avon's Web site at http:/www.avoncompany.com est differ ling experi that Awor's eeve and Hers Asked we eNamine issaes of organizational culture, ethics, and diversity