Turnaround Strategy: Billabong

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Wholesaling and retailing of surf, skate, snow, sports apparel, accessories and hardware, licensing of group trademarks to specific regions of the world were the principal continuing activities performed by the company during the year. Turnaround strategy was adopted and implemented to improve the financial performance. It focussed upon the following: 1. Brand: Change the focus of the group to brand view first and authentic core youth consumer and implement brand management processes and disciplines. 2. Product: To promote design and innovation and develop clear assortment strategies such as strategic line architecture, major product launches and to create a right balance of regional versus global mix. 3. Marketing: To develop 12 month integrated…show more content…
This policy integrates the company’s transactions as conducted by a single economy entity. Therefore, the figures on the consolidation statement will not be over-stated or under-stated. Also, Billabong uses fair values for all the identifiable assets, liabilities and equities in the business combination process. These two policies are very crucial to Billabong because the company has acquired more than 5 companies in 2013 financial year, and this had brought substantial financial instability to the company. (Annual Report, 2013) Hence, the company follows the conservative accounting policy to minimise the earning expectations so that the potential investor can estimate their return of investment in a conservative point of…show more content…
The high level of governance enhances corporate integrity and ethical standards in order to maxmise shareholders’ wealth. So it will assist outsiders in understanding the management method and principle adopted by Billabong. Moreover, it can be seen that the notes of consolidated financial statements adequately explain its current performance, including disclosing financial risk management, liquidity risk and segment information. The operating segments can be identified and determined by internally generated management, which the report of operating segments needs to be reviewed by the CEO in compliance with AASB 8. The CEO divided the business units into three parts including Australia, America and Europe (Billabong 2014 annual report, pg120). The CEO monitors the performance of each segment and allocating resources across the segments. The segment disclosure will help directors make strategic decision, and ensure investors to make better investment

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