Strategic Management of Bang & Olufsen: A Case Study

INDIVIDUAL
REPORT

Table of Contents
INTRDUCTION..............................................................................................................................1
PART 1............................................................................................................................................1
INDIVIDUAL REPORT.................................................................................................................1
Current position of company.......................................................................................................1
Evaluation of selected strategy....................................................................................................2
Analysis of internal and external factors.....................................................................................2
PESTLE Analysis:......................................................................................................................2
SWOT Analysis:.........................................................................................................................4
PART 3............................................................................................................................................1
INDIVIDUAL REFLECTIVE ESSAY...........................................................................................1
Personal reflection about my experience....................................................................................1
Evaluation of strategies adopted by Bang & Olufsen.................................................................2
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRDUCTION
Strategic management is the set of organisational resources which is useful in achieving
suitable goals and objectives of an organisation. Its overall management include setting
objectives and determining competitive environment which include internal and external
strategies and evaluation of effective strategies which make sure that management rolls out the
policies outside the company. Strategic management is a concept which is useful in predicating
the understanding of organisation as it include vision, mission and effective understanding of
existing purpose. For this, it is required the commitment of strategic plans which involves the
abilities and competencies of organisation and also depicts the allocation of resources that are
required to be achieved (Andrews Bryans and Kristensen 2014). For this, proper management is
required in order to make logical decisions and also develop new goals in quick manner that
evolves technology, business and market conditions.
For this report, Bang & Olufsen is considered which is a luxury consumer electronics
company which designs and manufactures the audio products in order to produce television sets
and telephones. Moreover, it founded in 1925 by two partners named Peter Bang and Svend
Olufsen, headquarter in Denmark. Additionally, this report is going to cover the various sections
of strategic management as it is divided into two major parts first is individual report and another
one is reflective essay. Here, individual report is going to cover the portfolio of company
regarding the market segment, position and competitors and also define the opted strategies
which impacts the level of business. Moreover, environmental analysis is conducted to analyse
the market conditions and needs. Lastly, reflective is done to determine the impact of opted
strategy and suitable actions that are taken for the development of company.
PART 1
INDIVIDUAL REPORT
Current position of company
Bang & Olufsen was incorporated in 1925 in Denmark as it is termed as one of the most
significant Danish design icon and also become the important part of Danish industrial legacy.
For this, company dominates the luxury segment in which customer expect exclusive designs,
new technology and qualitative solutions. Moreover, Bang & Olufsen has for many years as it is
considered as the leading television manufacturer and consider the growth on the primarily basis
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and because of this, introduction in new technology seems big on the picture. In the end of 2008,
every household in western Europe had on average 1.8 TVs from which 31% are belongs from
the category of flat screen TV and also expected to continue it because of the popularity of
bigger screen TV. Moreover, it is quite difficult for Bang & Olufsen to differentiate its products
on the basis of design and also increase the level of competition in various segments of TV
market. For this, company opt product development strategy in order to acquire new market area
with the help of its existing products and services (Bryans Fitzgerald and Kristensen,2014).
Evaluation of selected strategy
Business strategy is useful in putting the impact on the working conditions of company as
it influences the company on the grounds of business level and corporate level. For this, beneath
discussion is based on the evaluation of discussion and impact of product development on
different levels of strategies: Business level: This level of strategy is useful in describing the impact on the working
conditions of business as it depicts that it influences the company from the internal side
and intrinsic working capabilities and competencies of business. By determining the
current conditions of business it is analysed that the demand of big screen TVs increases
which impacts the product development strategy of company and decreases the
profitability of company at local level.
 Corporate level: This strategy depicts the influence of policy of company at international
or global level at it influences the company from the external side and develop risk factor
for company that impacts the abilities of company. For this, by examining the market
conditions, company need to develop and promote its product only if it generate suitable
amount of profitability in international market (Möckel and Borg, 2015).
Analysis of internal and external factors
PESTLE Analysis:
This framework is useful in examining the external components and determine the
considered risk factor which is associate with the enhancement of business and development of
strategy to acquire more and more customers for the expansion of business. In relation with this,
few macro factors are discussed as under:
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