...BILLABONG Nature of the business * Marketing, distribution, wholesaling and retailing of apparel, accessories, eyewear, wetsuits and hardgoods in the boardsports sector under the Billabong element, von zipper, honolua surf company, kustom, palmers surf, Nixon, xcel, tigerlily, sector 9, DaKine and RVCA brands * Billabong International’s values remain consistent with its foundation objectives. Includes a commitment to brand protection and enhancement, the manufacture of design-relevant and functional products, marketing in the core boardsports channels, the professional development of staff and ongoing attention to customer service and relationships. * The majority of revenue is generated through wholly-owned operations in Australia, North America, Europe, Japan, New Zealand, South Africa and Brazil. Exec summary Billabong’s aggressive approach in their expansion into foreign markets, taking their opposition and in the process, acquiring some of them allows Billabong to continuously expand and eradicate competitors. Billabong’s global expansion has greatly affected stakeholders and has allowed it to experience the many advantages of globalization. * one of Australia’s smaller transnational companies, operating on four continents, and was established as a private company in 1973 * In 2000 it was listed on the ASX and became a public company with shareholders. * The process of globalisation has allowed Billabong to now be able to distribute their...
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...Trends & Concept Elston Peterson Teacher: Mr . Ruud Rosendal Class: 1-IMEMA Student: Elston Peterson (492843) Table Of Contents HISTORY................................................................................................................................................................. 2 WHY BILLABONG? .................................................................................................................................................. 5 TRENDWATCHER.COM ........................................................................................................................................... 6 INTERNAL PYRAMID............................................................................................................................................... 7 EXTERNAL PYRAMID .............................................................................................................................................. 8 VALUE PYRAMID .................................................................................................................................................. 11 FUTURING PYRAMID ............................................................................................................................................ 13 FUTURING METHOD: ........................................................................................................................................... 15 THE RIJKENBERG METHOD .........................................
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...Executive Summery The report going to be discussed here is about the thorough analysis of different organizational strategies, organization culture and organization structures of an Australian-based clothing company - Billabong International. The intention behind this report is to define the organizational behavior of the selected company and by employing some academic references and research methods; it is tried to estimate the nature of the organizational behavior and its probable connotations in case of business administration. In addition to this, the report includes some individual views which have helped to reflect various aspects of the report in a wider standpoint. Comprising these individual viewpoints in this report has been made with the intention of determining the possible guidelines for existing business in near future. Outline of the company Billabong International Limited is a leading clothing retailer who is also related with the retailing process of accessories like watches, backpacks, skateboard, and snowboard products which generally comes under other brand-names. The inception year of the company is 1973 and was established by Gordon and Rena Merchant. However, the company was very firstly recognized in Australian Securities Exchange on 11 August 2000. According to the statically employee survey 2013, the number of employees of the company was approximately 6000. With the growing trend, the company continued to grow further acquiring new brands and retail...
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...Financial Analysis: Billabong International Limited - Australia A paper submitted to Webber International University In partial fulfillment for the Master’s in Business Administration International Business By: Patrick L. Date: July 11, 2012 Course: MBA 6811 Semester: 2012 Instructor: Eberle Table of Contents Introduction 3 Country Factors & Monitoring Central Bank Intervention 4 Foreign Exchange Market & Movements in Currency 5 Currency Futures & Options 7 Arbitrage Opportunities & IFE 8 Monitoring Exchange Rate Trends & Risk 9 Direct Foreign Investment 11 Capital Budgeting 12 Corporate Governance & Country Risk Analysis 14 Capital Structure 15 Long-Term International Financing 17 Financing International Trade 19 Short-Term International Financing & Managing Cash Internationally 20 Current Events 21 Conclusion & SWOT Analysis 22 References 24 Introduction Billabong International Limited (BBL) is an Australia based listed company headquartered at Burleigh Heads in Queensland, Australia. The main business activities of the company are related to marketing, distribution, wholesale and retail of wetsuits, clothing, eye wears, hardboards for board games and accessories concerned with the season of snow fall, surfing and skating. Billabong’s products are being sold through...
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...The main issues plaguing Billabong stem from the overarching failure to maintain a close relationship to its marketing environment, which consequently affected every aspect of the firm. Billabong lost focus on how the key players (i.e. the customers, competitors and corporate partners) can warrant a change in the marketing strategy, and failed to conform to the ever powerful customer consumer. Now, Billabong is searching for a way to “reinvent itself” in order to revive sales by staying true to its core brand, since their recent failure “maintain coolness and be cutting edge” has taken a toll on their bottom line. In Billabong’s past they were committed to their core, which focused on what surfers needed and wanted as far as clothing in order to better perform in their sport. Billabong began to move further from its core when the popularity for the “cut and stitched” board shorts for surfers gained popularity and then spread overseas, as well through other sports such as skateboarding and snowboarding. When Billabong began to create other cooperate alliances through acquisitions of companies like Tigerlilly which specializes in swimwear and VonZipper which specializes in eyewear, their focus drifted further way from their surfer customer. The one problem that if solved, could potentially rein in the results that Billabong desires, would be to reconnect to what the consumer values and wants through designing a new marketing strategy. Designing a marketing strategy is consists...
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...Billabong International began its operations in 1973, thanks to the inventive of the founder, Gordon Merchant, who wanted to create new kind of surfboards for better enjoying is favorite activity (Billabong 2009). From the North Burleigh factory the company grew exponentially: during the 80’s Billabong went international, during the 90’ it consolidated its position in the international scene and from 2001 it began a series of acquisitions that expanded Billabong products from surfboards to wetsuits, snowboard, outwear, watches (Billabongbiz 2011). The strength of Billabong it has always been its brand. For example a 2008 research of the firm BrandFinance, evaluated the worth of Billabong brand equal to $1.6 billion, 41% of the company’s value (SmartCompany 2008). That it explained with the fact that Billabong operates in the highly competitive and very brand-conscious surfwear industry. The surfwear industry exploded in the 80´: when it comes to garments, all the major technical brand began to be available not only to the specialists, but also to the rest of the consumer population This created a big opportunity for all the mayor competitors alongside with Billabong, but also put pressure on them, since they were force to find a balance between two different direction, one leading to the basic market of surfers and the other to the secondary market of the emulator. This is a tricky combination, because, while the dedicate surfer is more interested in the utility of...
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...1. Why does a fall in the value of the Australian dollar against the U.S. dollar benefit Billabong? This is all part of the foreign exchange risk in doing international business. Future payments or distributions that are payable in foreign currency carry the risk that the foreign currency will depreciate in value before the foreign currency payment is received and is exchanged into US dollars. (Kelley, 2001) Billabong relied solely on the foreign exchange market. US had 50 percent of the company’s annual sales. When the US dollar gets stronger against the Australian dollar, their product becomes less expensive in the US. When the Australian dollar dropped $0.60 Australian/ $1 US “the Billabong’s products become less expensive in US dollars, and this drives sales forward”. (Hill, 2015, p. 319) Due to the anxiety many institutions sold Australian dollars, which ultimately drove down their value on foreign exchange markets. From the sales the US dollars were exchanged back into Australian dollars, the US dollar value increased “as the Australian dollar fell”. (Hill, 2015, p 319) When the Australian dollars lower, it makes exports more affordable to oversea buyers. In essence the low value of Australian dollar equals sales driving forward. 2. Could the rise in the value of the Australian dollar that occurred in 2009 have been predicted? As stated in the text (Hill, 2015) “what happens in the foreign exchange market can have a fundamental impact on the sales, profits...
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...1.0SECTION A 1.1PRODUCT INFORMATION Original Brand Name of Product: Billabong International Product Class: Surf Brand Description: Created by two avid surfers, Billabong is a brand designed by surfers, for surfers. In 1973, Billabong offered little more than a small range of surf wear: mainly surfboards and board shorts. But today, Billabong is a brand that encompasses the Australian surf culture by offering products that cater not only for the surfer inside many of us, but for fashion and lifestyle needs. 1.2CURRENT TARGET MARKET Billabong is a brand that offers numerous products designed to accommodate numerous lifestyles. Included in their extensive range are products designed for surfers, general beach goers, skateboarders and the fashion conscious. Comprehensive characteristics of this market are difficult to pinpoint, however, it is the assumption that the majority of consumers are males and females aged between 12 and 35 years of age. Consumer Need: Social Image Need - the most important need satisfied by Billabong 1.3CURRENTLY SOLD In the mid 1980's, just over ten years since the birth of Billabong, the successes of the small Australian brand were being recognised world wide and Billabong products were in high demand. This led to the export of Billabong products to the global market with countries such as the USA, Japan, New Zealand and Europe first in line. Today, the product range available extends as far as 2200 lines in Australia, 1300...
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...1. Why does a fall in the value of the Australian dollar against the U.S. dollar benefit Billabong? As a result, Billabong’s fortunes are closely linked to the value of the Australian dollar against the U.S. dollar. When the Australian dollar falls against the U.S. dollar, Billabong’s products become less expensive in U.S. dollars, and this can drive sales forward. Australian dollar fell rapidly in value against the U.S. dollar. In June 2008, one Australian dollar was worth $0.97. By October 2008, it was worth only $0.60. The fall in the value of the Australian dollar was in part due to a fear among currency traders that as the world slipped into a recession, caused by the 2008–2009 global financial crisis, global demand for many of the raw materials produced in Australia would decline, exports would slump, and Australia’s trade balance would deteriorate. 2....
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...Introduction Billabong Company is an Australian company. It spread the business in different countries. They are wholesaling and retailing of surf, skates, snows and sports apparel etc and has licence of group trademarks and to spread the business in different region of the world. In the early days the products were made by themselves and sold through local surf shop. The products were sold and customers were found satisfied due to which demand for the products rose, day by day. During 80s company start its business at world level for which initial focus was on North American market. Due to rise in demand for the products licenses were granted to the number of regions such as New Zealand, Japan and South Africa. During 90s the surf industry grew extraordinary and by following the same strategy and providing high quality products company expanded its business. In year 2000 it was listed on Australian Securities Exchange and offered its first public offer, initial public offering (IPO), which was appreciated publically. Just after the seven years of IPO Company passed through the acquisitions of Von Zipper and then four months late, again an acquisition took place when it acquired Element Skateboards brand. BBL pass through many acquisition which were with Honolua Surf Company, Kustom footwear, Palmers Surf, Nixon watches, specialist wet suit brand Xcelm, California-based RVCA brand, girls swimwear Tigerlily, West 49 retail chain of Canada, Jetty Surf, Surf Dive ‘n’ Ski (SDS)...
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...like Billabong? There are a large number of influences at work in the foreign exchange markets. The most obvious are shifts in fundamental demand for a currency that reflects the outlook for the economy. For example, if Australia is exporting more goods and services, foreign buyers will need to buy Australian dollars to pay for them. That will put upward pressure on the value of the currency. All else being equal, countries that run large trade surpluses – meaning that they export more than they import – should see their currencies rise over time. However, the value of the dollar is also driven by speculation as traders seek to profit from the underlying trends of the movement of one currency against another. A significant amount of activity in foreign exchange markets consists of borrowing in currencies where interest rates are low and investing in ones with higher rates. In periods of low volatility, such as from 2002 to 2006, this method can be very profitable. However, in recent years a higher-yielding currency is potentially seen as a sign that problems are building up in the economy. In periods of high volatility such as now, speculating directly on currency movements is usually considered too risky for private investors as it can easily lead to large losses. Buying overseas-listed shares or investing in funds that hold foreign assets is the most obvious way in which it is likely an investor will become exposed to foreign exchange risk. In the case of Billabong as a...
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...Summary After a strong 25 year run, the major Australian retail company Billabong have hit an all time low. The Australian (2013) discusses the gloomy future for this suffering surfwear retailer who, based on their plummeting financial performance are being left with no option but to submit to a takeover. Two major American corporate apparel groups have shown interest in buying the struggling company. However, late last month Billabong’s share prices dropped to less than 70 cents a share, which have made acquirers reluctant to proceed with their offers (Macnamara 2013). Billabong initially fell victim to a number of economic factors including the increasing dominance of the international retail market and the high Australian dollar. The company has reached this fatal state in the business lifecycle as a result of being too diligent in regards to previous offers. This in turn has angered its shareholders and left the retailer in a troubling predicament. Application of Concepts The economic environment plays a major role in regards to this issue. Billabong’s poor financial performance is yet another casualty of the high Australian dollar which has reduced sales and contributed to the deterioration of the company. The Australian dollar is considered to be a popular trading currency of the foreign exchange markets due to its freedom from government intervention and corresponding high interest rates (Manzur and Leong 2001). According to the Reserve Bank of Australia website (2013)...
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...FINS3626 Group Assignment Evaluation of BBG, DJS, TEN, EWC Executive Summary Phenomenal growth of interest in corporate governance has emerged in recent years. The body of literature on the subject has grown markedly in response to successive waves of large corporate failures. Furthermore, there have been numerous attempts to define what constitutes ‘good corporate governance’ and to provide guidelines in order to enhance the quality of corporate governance. It must, however, be acknowledged that while everyone advocates and wants corporations to maintain ‘good corporate governance’, measuring the quality of corporate governance structures of the Australian companies has been, at best, very difficult. The major contribution of this report is to develop a simple and effective measurement model to rate the corporate governance structures of four companies. In effect, this report hopes to shed light on factors that should be taken into account in order to make sound investment decisions. The report concludes that David Jones would be the best investment decision amongst the four companies. The rest of the report is structured as follows. Section 1 details our ‘Corporate Governance Assessment Model’, comprising of six governance-related factors and associated measures. Section 2 outlines our assessment of the corporate governance quality of each of the four companies, as well a brief description of the company. Section 3 shows our firm’s conducted comparison of the four...
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...Location influences have 5 key elements affecting Billabong’s operations including visibility, cost, proximity to suppliers, customers and support services. Billabong has high visibility as the stores are located in major shopping centres and global markets worldwide. Cost influences Billabong’s operations as it affects the amount of rent they pay for the leases that they have obtained. Billabong’s product suppliers are international and they require larger postage costs which is an expense affecting Billabongs net profit. Billabong is located in populated cities and particularly in beach areas to ensure greater proximity to the targeted customer base resulting in more sales. Billabong being located in such popular areas, means they have a...
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...Billabong International Business Description Billabong International Limited (BBG) produces surfwear and sports apparel and accessories for the surf, skate and snowboard markets. BBG now has a presence in more than 60 countries. The Billabong brand is targeted to both active participants in surf and extreme sports and people who desire to be identified with its image. BBG supports the promotion of the Billabong brand through the sponsorship of athletes and events. 27 July 2012 Recommendation Recommendation: Relative to: _BLANK_ Small Ind (ex Fins) Investment Fundamentals ASX code: Stock price: Market cap: Y\E 30/06/2012 Reported e $m Adjusted e $m EPS adjusted ¢ EPS growth % PE x PE relative x DPS ¢ Yield % Franking % 2012e 39.3 39.4 14.5 -68.8 9.3 0.6 3.0 2.2 0.0 2013e 315.6 60.6 16.5 13.6 8.2 0.8 0.0 0.0 2014e 66.2 66.2 13.9 -16.1 9.7 1.1 0.0 0.0 BBG $1.35 $647m 2015e 81.7 81.7 17.1 23.4 7.9 0.9 Strategy Analysis BBG´s strategy is to differentiate its products through quality, novel designs and branding. Management aims to initially build up a core niche brand then slowly differentiate products to appeal to a broader market without diluting this core. This strategy has been successful in moving designs away from men´s surfwear to the broader general apparel market. Management is duplicating this strategy with its less mature skate brand. This strategy aims to tap latent demand for products within a broader international market.Billabong International reported...
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