An Analysis of the External Environment of Billabong International Limited Based on financial Year 2002-2003.

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An Analysis of the External Environment of Billabong International Limited Based on financial Year 2002-2003.

Presented to the Senior Management of Billabong International Limited

On Friday, 29 November 2002.

Report researched and prepared by Ergin Senses.

EXECUTIVE SUMMARY

This report analyses the external environmental situation of Billabong International Ltd., whose general profile, sectoral and current details need to be provided to demonstrate reliance on management processes.

In this report, a detailed analysis on company needs to see why analysis of the organisation's external environment is important and needs to be monitored. This report also analyses the external environment's elements from the company's point of view.

Based on this analysis it seems that Billabong Int. Ltd. may increase its profits by using detailed knowledge of external environmental elements. Thus made up of all the conditions and factors external to the company that may increase company's productivity, activity, and compete in its trade markets effectively.

Ergin Senses

TABLE OF CONTENTS

Title page

Executive Summary

Table of Contents

Pg.

. Introduction 1

2. Methodology 1

3. Discussion 2

3.1.Short View of the Company's History 2

3.2.Discussion of External Environment 2

3.2.1.Mega Environment 2

3.2.1.1.Technological Element 3

3.2.1.2. Economic Element 3

3.2.1.3. Legal - Political Element 4

3.2.1.4. Socio-Cultural Element 5

3.2.1.5. International Element 5

3.2.2. Task Environment 6

3.2.2.1.Customers and Clients 6

3.2.2.2. Competitors 6

3.2.2.3. Suppliers 7

3.2.2.4. Labour Supply and the Importance of Managing Diversity 8

3.2.2.5. Government Agencies 8

4.Conclusion 8

5. Recommendations 9

5.1. Recommendations of Mega Environment 9

5.2. Recommendations of Task Environment 9

6. References 10

Ergin Senses

. Introduction

This report analyses the external environment of Billabong International Limited. An analysis of the external environment must include several thorough investigations probing the various factors that influence Billabong International Limited through its industry and external environment. A look at the mega-environment will analyse the technological, economic, socio-cultural, legal-political, and international elements. Also a look at the task environment will analyse the company on direct sight. This analysis will touch on task environmental elements, such as customers and clients, competitors, government agencies, suppliers and labour supply.

This research is a snapshot of what Billabong International Limited encounters in its endeavours to sustain its competitive position in the clothing industry. Billabong International Limited might realise the dynamic nature of these factors, remould and reshape its business operations to better deal with external environment issues.

As we have seen time and time again a company that fails in its attempts to change as the situational changes finds itself in danger. The company will lose critical market share and continuously find itself uncompetitive against new entrants and companies that have kept up to date with their management approach.

In every strategic planning exercise, will help to gradually build up individual and institutional capabilities for approaching reality in a "systemic" way. At the same time, improving your ability to analyse problems and issues, the results of your actions and the dynamics of your organisational environment. It is important to remember that the strategic planning exercise requires that adjustments be constantly made on the basis of the environment.

Hopefully the following document will give you the opportunity to validate the soundness of the proposed process, and will show you the practical value of incorporating that process into your organisational context. It is understood that this guide cannot replace the contribution of a good facilitator who knows your environment well and can help you deal with your strategic planning process in a positive way.

2. Methodology

To review the external environment of Billabong International Limited, the author consulted the course textbooks, study guide and various class handouts. As well, the author analysed a number of journal articles, books and websites. All of these texts were analysed thoroughly and the pertinent information found in these texts was used to create this original report.
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Ergin Senses 1

3. Discussion

3.1.Short View of Company's History

Billabong International Limited was founded in 1973 and has grown into a global holding company employing over 500 people, involved in the design, production and distribution of surf and extreme sports apparel and accessories for male and female markets. The company's products are sold in more than 60 countries by its directly controlled operations in Australia, New Zealand, North America, Europe and Japan and through licensed operations and distributors in other areas. The company's product range comprises over 2,200 product lines in Australia, over ...

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