Bilabong is my chosen Company , It is also one of a Globalised Company. It is a type of beach shop that sells Beach wear ; they also sell clothes , skirts , shorts , Surf clothing , bags and more. Billabong International makes Billabong brand surf and extreme sports (skateboarding and snowboarding) apparel and accessories. There’s a few Bilabong stores in more than 100 countries. In 1973 , the company sponsors surfers, skaters, and pro surfing tournaments in Australia, South Africa, and Spain. Director Gordon Merchant.
The world has become a global market place. Large Volume of products services, ideas , money and technology are transported throughout the world, affecting the lives of million of people in the procers. Today , virtually every aspect of economy activities is influenced by international business.
Bilabong is a globalised company has developed their products into world market to sell their products all over the world. The process of globalised it enable Bilabong financial and investment markets to operate internationally , increase in both the number and the size of multinational companies , improved worldwide communications to develop a global economy.
Globalisation is the process enabling financial and investment markets to operate internationally, largely as a result of deregulation and improved communications.Globalisation came to be seen as more than simply a way of doing business, or running financial markets - it became a process. From then on the word took on a life of its own. Centuries earlier, in a similar manner, the techniques of industrial manufacturing led to the changes associated with the process of industrialisation, as former country dwellers migrated to the cramped but booming industrial cities to tend the new machines.
• Corporate expansion
• Trade issues
• Communication
• Brand expansion and recognition
( describing globalisation )
Globalisation is the movement across nations of trade, investment, technology, finance and labour. In the business world this refers to the process of businesses becoming transnational and locating and conducting their operations in foreign countries.
( how/why went global )
Billabong is one of Australia’s smaller transnational companies, operating on four continents, and was established as a private company in 1973 – this was a time when the US still dominated the world market and Australian manufacturing companies where only just beginning to become more export oriented. 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 products in over sixty countries throughout the world, as well as having acquired a number of other businesses through the desire to diversify their products and services that they are able to offer to their customers.
Influences on Global Business:
There are four main influences on global businesses – financial, political, legal, and social/cultural. It is the specific strategies put in place by each business to effectively manage these influences that will largely determine the success of a businesses international expansion activities.
The main financial influences on global business are currency fluctuations, interest rates and overseas borrowing of funds. In the case of Billabong the major influence is currency fluctuations due to the business having operations in over sixty countries worldwide. These currency fluctuations have a relatively large impact on the accounting systems of Billabong with approximately $3 million being in net exchange differences. Billabong is also open to the risk of transaction exposure is currency fluctuations occur as they move goods around the world.
The political influences for a global business may include things such as tension between protectionism and free trade, trade agreements and regionalism, international organisations and treaties (World Trade Organisation) and civil unrest in foreign countries. Generally these influences have a minor impact on Billabong with tariffs and quotas on clothing imported into countries being the more prominent influences.
Legally Billabong is required to abide by the local laws and regulations that are set in each of the countries that it operates in, hence the management of Billabong need to have a sound understanding of both the common and civil laws of the different countries that they operate in. 3Billabong also has a considerable interest in protecting its intellectual property, which includes its brand name, patents, trademarks and copyright rights.
Due to the standardisation of many products within the surfwear industry, social/cultural influences upon Billabong tend to be minimal. Although there are still some products that are not suitable for sale in certain countries such as bikinis in a Muslim country, the company has overcome this. Billabong uses global packaging and marketing strategies in the effort to reduce costs. The varying business practices of different countries have been overcome by the purchase of distributors of the establishment of operations in the specific country or region.
