The Virtual Side Of Me

The new global strategy was expected to increase revenues to $5 billion within three years, primarily through organic growth, although the company hadn’t ruled out a few additional niche acquisitions. Astar had maintained a relatively small presence in northern Europe and Japan for some time; now the new strategy called for a significant increase in international marketing and distribution. Accordingly, the firm had begun setting up regional sales and service units around the world and was quietly shopping for production facilities in Europe. It had also established supply sources in the Far East and Australia.

Other steps taken to fuel growth included a significantly higher level of media spending and new investment in costly slotting allowances in Europe, some outsourcing of operations, and an aggressive hiring effort both to build Astar’s international units and to create a greater depth of talent in several essential functional areas at headquarters.

The global strategy wasn’t without risk. Astar was carrying a much higher level of debt than in the past, and the amount of capital raised through the equity markets had heightened institutional investors’ earnings expectations.

In addition, several of Astar’s products were beginning to come under regulatory scrutiny in both the United States and Europe. Its Untamed hair color, for instance, had provoked a debate about the accuracy of its labeling, and a few consumer groups had questioned the company’s disposal of certain manufacturing waste. Although media coverage had been relatively minor, these concerns had been highlighted in both the trade and New York press.