current+events

=**Cosmetics**= =**Kasey Mckim**=

I chose cosmetics not only because I'm a girl, but because my future career as a Esthetician / massage therapist. Also i like the idea that women spend millions of dollars just to look "beautiful" for people who hardly even notice. I also know some of the mothers who sell cosmetics for a living and thought it might be an interesting current event. I planned to find my articles through possibly the news paper, but there's not much about cosmetics in the news lately, so I'm using yahoo finance articles so that i don't have to Google "supply and demand cosmetics". The subjects in the articles are more related to economics so that definitely narrows down the search.

Supply/Demand:
1. Is this article talking primarily about supply, demand, or a little of both? What SPECIFIC evidence from the article tells you this? 2. What effect is supply and/or demand having on price? 3. What is the impact on the consumer? How do you feel about this, personally? 4. How is the issue of scarcity affecting supply and/or demand in this article? 5. Does this article suggest that the issue of price is resolved? Or, does this article seem to suggest that it will be constantly changing? Explain.
 * [|Sales Abroad]
 * Id have to say a little of both, because they sell Avon outside the U.S their profits rose 60% in third-quarter profit, but adjusted earnings missed expectations and the company’s shares fell to a seven-year low.
 * Avon has also raised prices to help offset rising costs for commodities, like oil, which has increased the cost of manufacturing, packaging and distribution.
 * Sales in North America grew just 3 percent. Well personally i don't use Avon products so it does not effect me too deeply. But if i did i might not be able to buy as many products.
 * Avon has been overhauling its business by cutting jobs, closing unprofitable operations and moving work to countries with lower labor costs.
 * Since Sales of beauty products were flat, as the economy remained weak. So it seems that the price was negatively effected but did not fully corrupt Avon's business.

Government Interaction/Meddling:
1. Why is the government choosing to get involved in the matter covered by this article? 2. What impact might the government have on firms/consumers? 3. Ideally, a capitalist society would like to have as little government intervention as possible. Is government intervention appropriate in this case? Why or why not? EXPLAIN!
 * [|Chemical Good Looks]
 * The law governing cosmetics says that they may not contain "harmful substances." But how the tests for harmful or safe substances will be conducted is left up to the companies themselves.
 * By putting these protective laws it could require firms to do extra testing which could require extra cash for experimenting. Because of this extra spending for firms, cosmetics products prices could be raised to balance out the firms budget
 * I believe government intervention is appropriate because if their not tested it could harmfully effect the consumer. For example "An eyelash-dyeing product called Lash Lure was damaging the eyesight of many women, and after one woman died and another was blinded, Lash Lure became the first product seized under the new FDA authority."

Marketing/Advertising:
1. Which of the “Ps” of marketing would apply to this article? Give examples! 2. How would the marketing/advertising in this article allow for (hopefully) greater revenue for the company/firm involved? 3. How does this marketing/advertising benefit the consumer? 4. What are your thoughts here: good or bad? WHY?
 * Product: [|Avon]
 * Price: Varies on what products of Avon your selling
 * Promotion:Deborah Norville and financial guru Suze Orman are featured, but the infomercial is dominated by testimonials from women who sell Avon's products.
 * Place: Varies depending on where you live.
 * The TV appearance alone caused a large jump in the number of people calling to inquire about selling Avon products.
 * Well for example if your a stay at home mom and need a Job with the Convenience of still taking care of you children. If you sell these products from your home you get paid and don't have to leave the home/children.
 * I think the commercial is a good idea, considering its on the oxygen channel and that channel seems to have a more female audience then male. its approach on marketing the commercial is well thought through.

Partnerships/Mergers:
1. Based on the information in this article, would you describe the merger or partnership as being vertical, horizontal, or as a conglomerate? Give examples to back up your opinion.


 * [|conglomerate]
 * On October 1, 2002, NCI and the Avon Foundation announced six grant awards from their public-private partnership to fund clinical research on breast cancer.

2. What is each firm looking to gain from the partnership or merger? 3. Which firm is looking to gain the most from this partnership? Why is this? 4. How would this partnership or merger benefit the consumer? EXPLAIN!
 * These initial "Progress for Patients" awards represent the first step in a multi-year process that both organizations expect will give a boost to efforts to find treatments and an eventual cure for breast cancer.
 * Because Avon is promoting finding a cure for breast cancer it gives consumers the idea that if they buy Avon they help breast cancer victims
 * The breast cancer seems to be the most benefiting from this partnership.This type of partnership can be extrapolated to other cancers and funding partners since it can be initiated in a short period of time and target disease specific research with clinical interventions that affect real patients.
 * Well I don't know about financially helping the consumer, but mentally it could give the consumer the feeling the their helping others that are less fortunate, by buying what they desire. So both the consumer and the people with breast cancer feel like their both benefiting.

Entrepreneurship:
1. Publication source (newspaper or magazine name and date, OR web site name and date published) 2. What is the new good or service being discussed? 3. What specific issue/problem would this entrepreneur solve? 4. What potential problems might this entrepreneur face in getting started? 5. How could this entrepreneur help you or somebody you know live a better life?
 * [|fortune 500 women]
 * Andrea Jung, she's succeeding with more than 75% of sales now outside the U.S., Avon has seen double-digit revenue gains in China and parts of Latin America.
 * Because shes selling Avon outside the US shes raising sales more than 75%.
 * countries outside the U.S don't want Avon products, or cant afford them.
 * Well i guess i could use a makeover but i don't feel i need one. Although there are some of my friends who are in a desperate need of a makeover.

=**__Reflection and Feedback__**=

To find these articles was i have to admit was very difficult but as soon as i found my first article it became a bit easier.I saw articles differently because government, entrepreneurship, marketing, partnerships and supply and demand effect businesses and consumers and are apart of our everyday lives although we don't really notice it.

The only way i know to improve or help this project is to make this project more simpler if possible.