Andrea Jung Research Paper

Fortune’s 2011 list of Most Powerful Women reflects an impressive showing of female CEOs in the Fortune 500, 15 in all compared to only 2 when the list made its first appearance in 1998. Andrea Jung, 53, Chairman and CEO of Avon, ranks number 6 and at 12 years, she is the longest-serving female CEO of a Fortune 500 company. Celebrating 125 years, in most regions Avon is seeing double-digit sales growth reaching near $11 billion. In addition to her job at Avon, she also sits on the board at both Apple and GE. Jung’s journey hasn’t always been an easy one. Avon had a six year run of 10% and higher growth and saw earnings triple under her reign, but in 2005 the success story began to sour. Avon discounted 82% of beauty sales, but there was

Her parents practiced architecture and civil engineering and they provided Andrea with a strong sense of discipline throughout her childhood. Andrea attended Princeton and after graduating three years later she entered the management training program at Bloomingdale’s. After a few months she was ready to quit due to her frustration with menial duties. But her parents reminded her, “We don’t quit in this family. We persevere.” (George, 2007) Andrea remained at Bloomingdale’s and rose quickly through the ranks and moved onto I. Magnin and Neiman Marcus where, at only 32, she was appointed executive vice president. Four years later she left. She desired more meaningful work after a career selling to the luxury market had been her main focus. Jung was on track again a year later when she joined Avon. She again became frustrated and was ready to leave when she was considered but passed over for the CEO’s position. CEO of Time Inc. and Avon board member, Ann Moore, counseled Andrea, “Follow your compass and not your clock.” (George, 2007) After deciding to stay, heeding Moore’s advice, she was promoted to CEO less than two years later becoming the first woman to ever lead the

She even doubted whether she could make the necessary cuts to make things right for the company. "I'd never done anything like that before," said the 48-year-old Jung on Feb. 15. "My first reaction was: 'I get it. I see the numbers, but I just don't know if I, or we, have the stomach for it." (Byrnes, 2007) It was management guru, Ram Charan, who provided her with advise that would help her break through these new found obstacles. He suggested she go home and imagine she had been fired and return with a new mindset Monday morning of someone brought in from the outside. "If you can be that objective and blend in your institutional knowledge and relationships, you're going to have an advantage," he told her. (Byrnes, 2007) She was flying around the world a month later delivering her message, “By the end of this year, one-quarter of you will be gone.” to audiences of her 1,000 global managers. "I put a lot of people in those jobs," says Jung, "You can imagine it was the toughest time to walk the halls." (Byrnes,