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The Valuepro.net Web site displays a screen (Exhibit 7-3) that shows each valuation input. You can go to any or all of the input cells, put your own estimates into the cells, hit the Recalculate button, and the online valuation program calculates the new intrinsic stock value based on the inputs that you have provided. If you want to see the detailed pro forma statement associated with the valuation, click on the Cash Flows button, and a cash flow schedule based on the underlying inputs appears. You can then click the Value Another Stock button and begin the process anew. There is no limitation to the number of valuations you may perform, and the valuations are free. The strengths of the Web site and the online valuation program are that it is easy to use and understand, is completely interactive, and is totally transparent. Just type the symbol into the slot and the program

This end-to-end view also changed how the company works with its suppliers. Avon used to seek out the least expensive materials and buy in large volumes to keep costs low. But the company began to see that the lowest price doesn t necessarily equal the lowest total cost. For instance, Avon found a supplier of inexpensive glass bottles in Mexico, but the delivery lead time from Mexico to Europe was long 8 to 12 weeks on a boat. When product demand was high and bottles were needed, Avon would fly them in, a costly solution. Even though the bottles themselves were inexpensive, the lack of flexibility and high expediting costs more than offset those savings.

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will be possible, with streaming media technology, to participate in debates from the comfort of your own home Like a phone-in, this technique will use video technology instead, allowing people to see the person posing the question, while they contribute to the direction of the program Indeed, streaming media technology makes it possible for audience members to simultaneously discuss the issues with each other, using live video chat Once audience members are allowed to participate actively in this way, control over the agenda passes subtly from the hands of the news producer into the hands of the audience News is no longer dictation There are, however, some very real dangers to this approach The potential for legal action against individual audience members, if what they say is in some way damaging to another party, must be borne in mind by every participant.

The role of guarding against legal problems once fell to the news editor, but with greater participation by the audience, it becomes impossible for that editor to fulfill With the infinity of available channels on the streaming medium, the requirement to keep program lengths to their allotted time could vanish It is possible never to be out of time With broadcast television news, politicians notoriously sandbag, evading having to answer a difficult question until the time allotted for the interview has run out With streaming media, the time allotted need not be so critically regulated If a politician refuses to answer, this can be brought out clearly in the interview; this can be just as damaging to the interviewee as answering the question might have been Streaming media technology has advantages in the speed with which breaking news can be distributed to audiences around the globe.

Based on these insights, Avon completely changed its sourcing strategy The company reduced its supplier base by more than half, embraced the concept of supplier partnerships, and focused on lowest total cost instead of lowest price Today, Avon buys most of its inventory from suppliers that are close to its factories in Poland and Germany Although the company may pay a slightly higher price on a per-unit basis, the benefits of managing far fewer relationships with more flexible, responsive suppliers result in a lower total cost overall Dealing with a smaller number of suppliers delivered other dividends as well Explains Watson, Because we have longer-term relationships, we can invest together in new, better ways of working For example, Avon worked with its suppliers and a London-based design firm to create a better product design.

EXHIBIT 7-3

Reporters with little more than a satellite phone or laptop, third-generation mobile phone and camera can post instant reports from wherever they are With content delivery networks replicating these media clips to caches at the edge of the Internet, an audience of millions can be watching events more or less as they happen Broadcast networks struggle to compete with this turnaround time, using traditional broadcast news production equipment (ENG Electronic News Gathering kit, for example) In fact, many broadcast news networks have conceded defeat, using streaming satellite technology to relay news instantly from Afghanistan during the anti-Taliban war With streaming media, there is no need to transcode from a streaming format to a broadcast television format, as there is with the major television news networks today A streaming news report is already in the medium s native format from source.

Because streaming media uses efficient compression technology, a deep news archive, which could be accessed and searched by individual view-.

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