Avon 2011 Annual Report Download - page 16

PART I
• secure short and long-term financing, or financing at attractive rates, maintain appropriate cash flow levels to fund, among other things,
cash dividends, and implement cash management, tax, foreign currency hedging and risk management strategies;
• implement our Sales Leadership program globally, recruit Representatives, enhance the Representative experience and increase their
productivity through field activation programs, execute Service Model Transformation and other investments in the direct selling channel;
• transition our business in North America, including enhancing our Sales Leadership model and optimizing our product portfolio;
• increase the number of consumers served per Representative and their engagement online, as well as to reach new consumers through a
combination of new brands, new businesses, new channels and pursuit of strategic opportunities such as acquisitions, joint ventures and
strategic alliances with other companies; and
• estimate and achieve any financial projections concerning, for example, future revenue, profit, cash flow, and operating margin increases.
There can be no assurance that any of these initiatives will be successfully and fully executed in the amounts or within the time periods that
we expect.
We may experience financial and strategic difficulties and delays or unexpected costs in
completing our multi-year restructuring programs or long-range business review, including
achieving any anticipated savings and benefits of the initiatives thereunder.
In October 2011, we committed to undertake a detailed assessment of our long-range business plan in order to improve our performance
and better position ourselves in the increasingly complex economic environment. The review will include internal and external inputs,
executional capabilities and capital allocation. We also continue to implement our previously announced multi-year restructuring programs.
We may not realize, in full or in part, any anticipated savings or benefits from one or more of any initiatives arising under the long-range
business review or our multi-year restructuring programs. Other events and circumstances, such as financial and strategic difficulties and
delays or unexpected costs, may occur which could result in our not realizing all or any of the anticipated savings or benefits. If we are
unable to realize these savings or benefits, our ability to continue to fund other initiatives may be adversely affected. In addition, our plans to
invest these savings and benefits ahead of future growth means that such costs will be incurred whether or not we realize these savings and
benefits.
We are also subject to the risk of business disruption in connection with our long-range business review, multi-year restructuring programs
or other initiatives, which could have a material adverse effect on our business, financial condition and operating results.
There can be no assurance that we will be able to achieve our growth objectives.
There can be no assurance that we will be able to achieve profitable growth in the future, particularly in our largest markets, such as the
U.S., and developing and emerging markets, such as Brazil or Russia. Our growth overall is also subject to the strengths and weaknesses of
our individual markets, including our international markets, which are or may be impacted by global economic conditions. We cannot assure
that our broad-based geographic portfolio will be able to withstand an economic downturn, recession, cost inflation, commodity cost
pressures, economic or political instability, competitive or other market pressures in one or more particular regions. Our ability to increase or
maintain revenue and earnings depends on numerous factors, and there can be no assurance that our current or future business strategies
will lead us to achieve our growth objectives or maintain our rates of growth.
Our success depends, in part, on our key personnel.
Our success depends, in part, on our ability to retain our key personnel. The unexpected loss of or failure to retain one or more of our key
employees could adversely affect our business. Our success also depends, in part, on our continuing ability to identify, hire, train and retain
other highly qualified personnel. Competition for these employees can be intense. We may not be able to attract, assimilate or retain
qualified personnel in the future, and our failure to do so could adversely affect our business, including the execution of our global business
strategy. For example, on December 13, 2011, the Company announced that in 2012 the Company will separate the roles of Chairman and
Chief Executive Officer (“CEO”). Any failure by a successor CEO or our management team to perform as expected may have a material
adverse effect on our business, results of operations and financial condition. This risk may be exacerbated by the uncertainties associated
with the implementation of our multi-year restructuring programs and long-range business review.