Strategic Management: Analysis and Reflection

This document provides an in-depth analysis of strategic management, including external and internal analysis, SWOT analysis, and industry life cycle. It explores the competitive environment of Bang Olufsen and identifies opportunities for growth.

Strategic management

Table of Contents
Strategic management.....................................................................................................................1
SET 1...............................................................................................................................................3
EXTERNAL ANALYSIS................................................................................................................3
PESTLE ANALYSIS......................................................................................................................3
PORTER FIVE FORCES................................................................................................................4
INDUSTRY LIFE CYCLE..............................................................................................................5
INTERNAL ANALYSIS.................................................................................................................6
SWOT ANALYSIS.........................................................................................................................6
Conclusion..............................................................................................................................8
Set 2 (covered in ppt).......................................................................................................................8
Set 3 reflection.................................................................................................................................8
Reflection...............................................................................................................................8
REFERENCES..............................................................................................................................12

SET 1
EXTERNAL ANALYSIS
PESTLE ANALYSIS
This analysis is performed in order to understand various factors present in the business
environment which are externally impacting the functioning of the business. There are a number
of factors which are involved in this analysis which are mentioned below:
Political factors: For Bang Olufsen There are a number of different forces which are influencing
the government and infrastructure of the country. These political factors usually include all the
employment laws, tariffs, tax policies, restrictions and political stability in the country. It is
necessary that there are a number of charities which are included by government and also it is
required to fulfil all these legal formalities by the company in order to make sure that the
political factors does not affect the company negatively (Pham, 2020).
Economic factors: In the following companies economic factors which are affecting the
functions of a company include growth of economic, interest rate, inflation, cost of living, wage
rate, exchange rate as well as working hours. It is necessary for the company to make sure that
they are combining all these factors efficiently in order to avoid the negative impact on the
company and also get the positive results with using these factors in the organisation.
Social factors: There are a number of different social influences as well as culture influences on
a number of businesses which differ from various countries and regions. It is necessary for an
organisation to consider all this before generating a new product and services. It also includes
various health and safety factors along with demographics and population growth rates. It is
necessary for Bang Olufsen to make sure that they are efficiently studying the consumer
behaviour and trends in the market before developing a new product.
Technological factors: Technological factors and advancement is one of the major way by the
company to remain competitive in the market. The following industry is typically based on
various innovations and technological advancements brought in by a number of companies. It is
necessary that be and do is efficiently bringing a number of innovations and new aspects in order
to make sure that they are providing innovative services to the customer and staying in the
market for a longer period of time giving competition to all its competitors.

Environmental factors: environmental factors include all these factors which are impacting the
environment and surrounding environment in which the business is carrying its work (Randrup
and Jansson, 2020). It usually refers to the pollutants which business is releasing in the market. It
is necessary to spread awareness about seasonal and climatic changes and terrain variation. Bang
Olufsen is required to take care about all the factors which are affecting environment and work
positively towards it.
Legal factors: legal factors at a sum up of all the legal regulations and laws which might affect
business operations in an organisation. It is necessary that current legislation which is having an
impact on the industry such as various areas including competition, employment safety and
health to be analysed by organisation. It is necessary for the organisation to follow all these rules
and regulations otherwise they may have to face negative impact and liability due to ignorance of
these laws.
PORTER FIVE FORCES
Bang Olufsen porter 5 forces model will help in reflecting the competitive environment in
the following industry. It consist of five major forces which are competitive rivalry, threats of
new entrants, rates of substitutes, bargaining power of suppliers in bargaining power of
customers. Below mentioned is the porters five for analysis:
Competitive rivalry: The competitive rivalry for bang and Olufsen is very high as there are a
number of competitors who have a different diversity as well as development in the sector. There
are a number of competitors such as Apple and Sony who are providing products with same
quality and lower prices (Nilsson, Petri and Westelius, 2020). Due to this the company have to
face huge competitive rivalry in the market and the need to develop competitive advantage in
order to stay in the market for a longer period of time.
Threat of new entrants: There are a number of barriers for new entrants into entering this
industry. It is necessary for the new entrants to invest hugely in the market has a lot of
investment is required for research and development in such industry. There are also legal
barriers along with industry barriers. Along with this Bang and Olufsen is a well reputed firm
with various technical and cultural standards which plays a major role which affects the decision
of new entrants to enter the market.
Threat of substitute products: When considering the substitutes available for the products of
bank and Olufsen in the market is it often seen that those products are comparatively of better

prices than that of the company. Those products are present in the market due to better
innovative and technological advancement. Substitute products are dangerous for the company as
they are a big threat that they can replace the company’s products. However the threat of
substitute also results in low profitability and limits the profit of industry by placing a price
ceiling in the industry. The growth potential of industry is also reducing the profitable margins
for the company.
Bargaining power of suppliers: It is often seen that powerful suppliers in the industry have more
power to capture significant value for themselves by asking for higher prices and also limiting
the quality of the products and services. It is necessary that bang and Olufsen is efficiently
differentiating its suppliers and generating more than one suppliers. The bargaining power of
suppliers for the industry is high because there are no close substitute available is of the supplies
which are provided by suppliers for the company.
Bargaining power of buyers: The buyers in this industry also have strong bargaining power as
the profitability of the supplies can highly influence the profitability for the company. It is often
seen that there are a number of competitors present in the market who are providing similar
quality of goods at a lower price. Due to this the bargaining power of customers for bang and
Olufsen is increasing. This is the major reason why the buyers in the market are having more
bargaining power and also the cost of switching the product is comparatively slow due to which
they can easily switch to any other brand instead of bang and Olufsen (Nilsson, Petri and
Westelius, 2020).
INDUSTRY LIFE CYCLE
Industry life-cycle refers to the phenomenon of life sciences of companies in an industry. There
are four stages divided which include introduction, growth, maturity and decline of an
organisation in the industry. All these distinct stages help in identifying various steps which are
required to be undertaken by company in order to understand the position of company and
improve it. Below mentioned is industry life-cycle explained for Bang Olufsen:
Introduction: Introduction is the stage when the industry is in its infancy. The new and unique
products are offered and developed as well as patented in the beginning of the industry. It is
usually considered as employee next stage. The company may be small at this stage of time and
is also in requirement of 1 to develop various new products and services. Bang Olufsen have
passed that stage of industry life cycle. In this stage it is necessary for companies to make sure

that they are developing relationship with supply chain when does in order to develop
competitive advantage. It is necessary to look into new opportunities and make sure that the early
stages are necessary for technological expertise by the companies in the market.
Growth: Growth stage is the second stage of the introduction stage in which the amount of
capital is significantly increasing. It is necessary for the company is to make sure that they are
making various efforts towards marketing of the product and bringing in competitors within the
industry. They have launched a number of new products and are continuously launching a
product in order to increase their product line and also standardize your products. It is necessary
to develop various line of floor for production of products and efficiency in the market. Bang
Olufsen is past this stage (Khanin and et. al., 2020).
Maturity: Maturity is the next stage which refers to the company approaching maturity where the
growth line of the company flatters indicating slow growth in the company. It is necessary for
the company to bring in more earning as the cash cow of the company is now slowing down. The
competition is increasing due to new entrants in the market and also the existing products of the
company needs more development and innovation in order to attract more customers. Bang
Olufsen is at this stage now. They are facing problems due to competitors and they need to bring
in changes and innovations in their products.
Decline: Decline is the next most unenviable stage in the industry. It is when the innovation is
not keeping pace with the growing competition of products and services in the market and the
innovations of products and services become obsolete for the company. The revenues of the
company are suffering at this stage and they are decreasing at an accelerating rate. If Bang
Olufsen does not bring in new innovations to attract customers it might face declining stage soon
(Doherty, Haugh and Lyon, 2020).
INTERNAL ANALYSIS
SWOT ANALYSIS
Swot analysis is an analysis of internal capabilities of an organisation which includes all
the strengths, weaknesses, opportunities and threats. Below mentioned is swot analysis
performed on Bang and Olufsen:
Strengths:

 The vast experience, practice and continuous development in the company is one of its
strength.
 Providing great experience to the customer and fulfilling all the needs and requirements
of customer is another strength for the company.
 The quality of material which is used for production of the products in the company is
also one of its strength.
 Continuous product development in the company is one of its greatest strength in the
market.
Weaknesses:
 There are various models of television of a company such as Beo vision which the
company cannot beat its self which is one of its weakness.
 The price factor of the company for the customers who are looking for particularly the
value of the prize you’re paying also becomes a weakness for the company.
 The price strategy of competitors in the market due to which the company has to lose
some of its customer as they go for the alternative products for lesser price this is also a
weakness for the company.
Opportunities:
 The research and development team of 3000 staff is one of the greatest opportunity for
the company.
 The global market team who are uncovering the unrecognized need of customer can also
develop various opportunities for the company to make a strategy in order to fulfil
customer requirements.
 The increasing global demand of video and audio products in the market is a great
opportunity for the company.
 New technological upgradation coming in the market continuously bringing profits to the
product designers and manufacturers of such products is also a great advantage and
opportunity for company.
Threats:
 There are a number of competitors present in the market who are providing similar
products at a lower prices which have been a threat for the company.

 A number of companies like Sony and Apple are providing less customers to B&O as the
products are almost similar and also they are worldwide known brands.
 Price of the company has been one of the major damaging factors to the market share of
the company which is its greatest threat.
Conclusion
With the help of internal as well as external analysis of the company it can be seen that the
major threat for the company is its competitors. It is necessary for the company to work on its
pricing strategy as even after investing in research and development and innovating the products
the prices of the products are a drawback for the company as its competitors are providing same
quality products in lower prices. Along with it there are a number of opportunities present in the
market with developing new products and bringing in new innovations which will help the
company to effectively grab more market share and grow. It is necessary for the company to
make sure that they are developing in their maturity stage and do not let the declining stage
affect them.
Set 2 (covered in ppt)
Set 3 reflection
Reflection
The following reflection of mine also consist of various internal as well as external factors which
are affecting the company and the working of a company. It has been seen that the external as
well as internal factors are affecting the operations of a company in a number of factors. It is
necessary for me to understand what are various factors and internal environment of the
organisation which are bringing benefits for the firm. When considering bang Olufsen if it is
seen that The innovation which are brought by the company are beneficial for the organisation as
a whole. I also learnt about various strategies and policies which are used by the companies to
analyse internal environments. In the following report is what analysis is included in order to
understand the internal working of the organisation. It helps to understand various capabilities of
the organisation along with what are the requirements on which the company needs to work
upon. It consists of strengths, weaknesses, opportunities as well as threats for an organisation.
This report help me in understanding various strengths, weaknesses, opportunities and threats for
the company and also the various ways which can be used by the company to efficiently use the

opportunities and also reduce its weaknesses. In order to conduct the external analysis on the
company are used a number of models which include pestle analysis, porters five forces model
and industry life-cycle. The following report helped me in understanding the research methods
which can be used in order to collect the information about the company. I used internet as a
major source along with a number of journals and books which help me in order to collect the
information about the company. This information was critically analysed by me in order to form
a external analysis on the company. It is necessary for me to manage all the research which is
available or regarding the topic and also understand the importance of relevant data. It is
necessary that all the data which is collected by me should be analysed well and only the relevant
and authentic data should be used in order to produce the report. While conducting this analysis I
came to know that I like and research skills. It is necessary for an individual to understand what
are the various opportunities present in the market which can help them in conducting research.
There are a number of sources which provide secondary data. Being the strategic manager of the
company all these data was effectively used by me in order to make strategies which can help the
company to grow and also face the competition. Pestle analysis helps in understanding various
factors in the external environment of the organisation which are affecting the functioning of the
organisation. These included political, social, economic, legal, technological and environmental
factors in the environment of an organisation which are affecting the operations in the business.
With the help of this analysis I worked upon various factors which are required to be fulfilled by
the company. In this I included various legal factors which were necessary to be fulfilled by the
company to ignore any lawsuits again the company. Also corporate social responsibility of
company towards the environment was developed in order to make sure that the company is not
bringing any harm to the environment while continuing its work. It is necessary to understand
various economic factors as well as the inflation, interest rate and foreign exchange rate may
have a great effect on the profits of the company. After this I conducted a porters five forces
analysis on the company. This included various factors such as competitive rivalry, entrants in
the market, substitutes available, bargaining power of suppliers and consumers. It was necessary
to analyse all these factors in order to make sure that the company standing strong with all the
competitors in the market. It was analysed that the competitive standing of company is low and
company needs to work upon various factors in order to make sure that they are providing tough
competition in the market. However the bargaining power of both the consumers and suppliers

are higher. I need to make proper strategies in order to make sure that these power of consumers
as well as suppliers can be reduced. It is necessary for me to take various steps such as looking
for more suppliers and generating good relationships with them in order to gain bargaining
power over them. It is also necessary to communicate various services provided to the customer
so that the prices which are asked for the products can be happily paid by the customers for the
products. The industry life-cycle was also studied by me while completing this report. It was
seen that there are four different stages which include introduction, growth, maturity and decline.
The company is now at the maturity date. At this stage it was summed up that company needs to
make sure they are bringing in new innovations in order to increase their customer base. Being a
strategic manager of the company I need to make sure that the company does not falls into
declining stage due to which the company might face losses. It is often seen that in the majority
rate the profits of the company stop accelerating and the cash cows of the company are also not
generating much profit for the company. Conducting all these analysis on the company I came to
know about various plants which would be included in my strategies for the company in future.
There are a number of points in which the company needs to work and make sure that they are
developing and innovating new products also bringing cost benefits to company. I also need to
make sure that the research department of the company is working on bringing in low-cost
products in order to provide competition in the market as the major weakness of the company is
related to the pricing strategy which the company needs to work upon. As the manager of Brag
and Olefsun organisation, it is my duty to provide good strategies and decisions for
accomplishing the organisational targets and goals property. As I am the manager of this reputed
big multinational brand, it is essential to manage all the roles and responsibilities effectively and
attain organisational goals. As the manager of this multinational company, job role is to manage
various projects and complete them in the specified time frame. It is also essential for me too to
develop good and effective strategies that can be used in completing the project work. There are
several new software and systems which have become part of music industry and hence, I keep
enhancing my knowledge regarding the various new technologies which are involved in the
music industry. There are various strategies that are involved in developing and managing the
project work so that there is effective and proper management of resources utilised in the
company. There is also need of discovering the end of projects as well as life after the product or
service s introduced within the market. There is also need of managing negative as well as

positive perspectives of employees while handling the project completion and accomplishment.
There are various tactics and strategies used within music industry which are used effectively in
order to manage the working of company. It is essential for me to manage the understanding as
well as providing of proper power in order to manage stakeholders. I have analysed both
external as well as internal factors that are beneficial order to innovate or introduce any new
service or product for increasing companies profits. It is also required by me to manage the
working of company effectively in order to develop stakeholders effectively and achieve the
business environment competitive factors property. On the other hand, it is also essential to
manage the primary as well as secondary data regarding the researches so that it will be easy to
manage description and discussion regarding the need of effective and essential work which the
company has to do while managing the business property. Brag and Olfesum is known for its
competitive and hi advantage music systems and equipments which are made with high quality.
Hence, as strategic manager it is essential to manage the brand value as well as reputation of this
company by continuously conducting a proper research and order to manage the business
functions and tactics.

REFERENCES
Books and Journals
Pham, P.M., 2020. International Strategic Management.
Randrup, T.B. and Jansson, M., 2020. Strategic management of urban open spaces. In Urban
Open Space Governance and Management (pp. 190-203). Routledge.
Nilsson, F., Petri, C.J. and Westelius, A., 2020. Strategic Management Control. Springer..
Khanin, D. and et. al., 2020. The possible pitfalls of boards’ engagement in the strategic
management process. Review of Managerial Science, pp.1-23.
Doherty, B., Haugh, H. and Lyon, F., 2020. Strategic management tensions in hybrid
organisations. In Handbook on Hybrid Organisations. Edward Elgar Publishing.