BILABONG Australia - financial statement analysis assignment
ACCT 5910-Business Analysis and Valuation
Contents
Executive summary……............................................................................................................3
Executive summary
The purpose of report is to provide a comprehensive analysis of Billabong International Limited. This report is primarily based on a trend analysis of Billabong’s financial performance ratios from 2009 to 2011, common size table of the balance sheet and income statement and analysis of Billabong’s cash flows. Expect to provide a basis understanding of the company’s recent situation and future
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Industry Analysis
With the expansion of world economy, surfing is not only a sport but also a life style and that leads to high demand of surfing products. The number of firms enters that industry keep increasing as its attractive potential profits and less barrier to enter into that industry.
Both companies have more bargaining power compared with their supplier and customer as their famous brand and diversified products could encourage suppliers to have long term business relationship with the company and satisfy the unique needs of customers. Overall, the prospects of this industry are optimistic; it did not shock too much under the downturn of economy. Surfing is an increasingly popular and well-known culture; companies need to continuing innovation in order to satisfy customer’s needs.
b. Competitive Analysis
As number of firms in the industry keeps increasing, greater competition force firms to earn more market share, innovate substitutes, produce differentiate products and be cost leadership to keep or improve their position in the industry. For example, some of the products of Billabong and Quiksilver are similar, consumer will choose to buy the one with lower price if they have similar function, or buy the one with higher price if the product is different from others. Thus, a firm could run well if it has different products and lower cost compared with rivals.
c. Corporate Strategy Analysis
Billabong hires different design teams for each
A medium-sized firm Clean fabrics Inc in United States has increased the company’s revenues strategically about $350 million dollars per year. The company struggles to meet the objectives of expanding the company along with the cost control. The vision of the company is to provide the right choice to the clients and supplying the support services for the cruise ship industry in the different parts of the world operating in the areas of hotel and travel. The services are supplied to major hotel chains and cruises including linen services in the south east area of United States. Comparatively, the cruise ship industry provides the company with an
In order to stay competitive in an industry with an increasing number of players, companies have to be
Winnebago operates in the luxury recreational motor vehicles industry. It’s main competitors are Thor industries, Malibu Boats, Polaris Industries, and Brunswick Corporation. These firms were chosen due to the fact that, while they may not all be in the RV industry, they sell similar products as Winnebago. Winnebago’s main line of business in the RV industry of all classes A, B, and C. Thor is the most similar to Winnebago due to the fact that all of its products are specifically in RV industry. Polaris, Brunswick offer a variety of products along with Recreational vehicles such from everything to snowmobiles to gym equipment. Malibu specializes in the boating industry, specifically small boats and boating accessories. The four competitors and Winnebago manufacture the products at their distribution centers and distribute them to to dealers who sell their products to the end customers. We have researched the luxury motor vehicle industry using the Porters Five Forces Model. The Porters Five Forces Model helped us analyze the different trends within the industry and see where Winnebago stands within them.
The issue that Coral Divers Resort (CDR) is facing is that it has been unable to distinguish itself from other resorts in the New Providence, Bahamas region and has been experiencing declining revenues and unprofitability for the past three years as a result. Other resorts that have been able to specialize in certain segments of the diving industry have been doing well over the past years as the industry continues to grow. CDR must look for opportunities in the diving industry to find a unique niche and gain a competitive edge that will lead to an increase its revenues. The SWOT analysis (Exhibit 1) looks at the current state of CDR and the environment it is operating in.
In that case, Sailed Air would perform in a safe zone with well-known products and respect its culture of innovative products manufacturer. However, we found that this strategy would not acknowledge the reality of the change in the market, which is the strong demand of cheaper product and the growing presence of GAFCEL. Eventually, Sealed Air could compromise its leadership by allowing GAFCEL to develop and expand to become a significant market player.
Mr. Jonathan Greywell is contemplating a business decision in which there are four realistic options. He is the owner of Coral Divers Resort, located in the Bahamas on the island of New Providence. He caters to customers looking for a resort package that includes diving. This case discusses a decline in revenues for the three-year period of 2005-2007. His options include: selling the resort, partnering with another business, focusing on higher margin business, or improve his current business to be more competitive.
Legal factors are taking one of important segment for the cruise industry. The cruise industry has been strictly monitored for many types of law violations, such as human resource department, the consumer, violations of health and safety. If any cruise company is caught, having broken any of these laws, heavy fines or criminal penalties can follow from it. Legal occurrences can damage the political and government relations. Therefore Legal factors play an important role to the industry of a cruise.
Competition being one of the major issues that often must be addressed in the business world, it is important for a firm to learn on ways to reduce the impact of the competition. Competition is definitely an important factor in helping a business
Blue Moon, Pty Ltd.is a company designs and produces sailing boats. For years by offering a low cost and with short production time, Blue Moon are very successful in boat industry. But recently this business’s profit and market share are decline alarmingly because their competitors are having lower cost and shorter production time. And also their target customer which are middle class families, they are decreasing their purchasing power. This report will discuss about the new business strategy that could help Blue Moon to survive.
This report shows the financial analysis conducted for Billabong international Limited and analyses the financial situation of Billabong over a five year period ending June 30, 2015. The report was prepared using the financial reports prepared by the company for financial years 2011-2015 as given in the references section.
Surfstitch and Ralph Lauren are both clothing manufacturing companies, however both companies are of varying size in different countries, this report will compare the accounting standards of both companies.
Black & Decker Corporation is one of the largest and well-known American manufacturer of power tools, home improvement products, accessories and various other products. The company not only holds an overall leadership position in market but also holds a name for its consumer segment by holding 45% of the market share. Although Black & Decker has a strong brand image and position it only holds 9% of the market share in its Professional-Tradesman segment. Even without leadership in this segment company is doing really well and enjoys a favorable position in market in terms of it’s net income and revenue. Professional-Tradesman is the fastest growing segment in overall market and a lack of suitable share in market is the main
Companies are always unable to control the economic endeavors of a country and in particular for a company operating on an internal platform. Ship building companies face a challenge of employment, insurance and loans from banks a view supported by (Barney, 1991) on his journal about sustained competitive advantage. As mentioned, Otto Company has a highly vibrant team of engineers working to improve equipment, respond to emergencies and maintenance. Secondly, bank and other financial institutions shun from loaning such large type of companies. With risks of Ship building Otto Company is exposed to in comparison to its gain, a bank may opt not to loan it. Regulations compel Companies exposed to any form of risk to insure. Companies operating on marine environments are exposed to risk of capsize, fire, theft, piracy and many more. This somewhat limits and discourages other Insurance companies from insuring Otto
The competing firms can influence business in a number of ways. They can do so by bringing new and cheap products in the market, by launching some sale promotion scheme or other similar methods.
One of the most negative issues for Konrow was stressed by its consumers is that the brand name doesn’t have a meaning to them except the fact that it’s a mobile phones brand. It is important for Konrow to have being linked to some values that can insure a purchasing act. These links can be: technology, origin, quality, lift style