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 …show more content…
Billabong’s main human resources are employees. This has a major influence on Billabong’s operations as it provides labour cost affecting Billabong’s net profit. The company has approximately 6,000 staff worldwide with an average hourly rate of $19.49 per employee.

There are two main sources of information, primary and secondary. Billabong uses both sources in order to make the right commercial decisions. Primary resources focus on gathering information from methods such as surveys and feedback. Secondary sources are from organisations such as the Australian Bureau of Statistics and sales reports. Billabong’s sales reports indicate that revenue is falling and some product lines are weak.

Physical factors of Billabong’s company includes furniture, uniforms, IT devices and any other equipment required. These are essential for the company but are a huge expenses effecting their net profit.

Billabong’s financial resources are where they obtain their capitals. Billabong mainly obtains capitals from shareholders due to it being a public company. Billabong’s current share price is $1.25 and has a market price of $247.60