Strategic Management of Bang & Olufsen: Evaluation and Analysis

Strategic management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Evaluate how strategy adopted by Bang & Olufsen....................................................................3
Analyse the external and internal factors of Bang & Olufsen.....................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is defined as the procedure of establishing organisational goals, objectives
and define working process for the purpose of making organisation more competitive. . In this
report the chosen organisation is Bang & Olufsen that is established in 1925 by the Peter Bang
and Svend Olufsen (Cavicchi and Vagnoni, 2018). The headquarter of organisation is situated
in Struer, Denmark and approximate 915 employees are working with organisation. The report
consists Various business strategies such as cost leadership, differentiation, diversification and
market penetration of Bang & Olufsen organisation. Apart from that different internal and
external business factors like Pestle analysis, porters five forces, swot analysis and VIRM model
is being covered in this project report in the context of Bang & Olufsen company.
TASK
Evaluate how strategy adopted by Bang & Olufsen
Strategic direction at the business unit level: Business strategy is defined as the
framework that consist clear set of plans and actions that are guide business to how to perform in
specific market segment to attain all business goals and objectives. Effective strategy of Bang &
Olufsen provides guidance to perform all business functions in defined manner to gain
competitive positioning through satisfying all needs and demands of customers. Bsuiness
strategies that are used by Bang & Olufsen are mentioned below:
Cost leadership: Cost leadership strategy is used by the Bang & Olufsen organisation to
produce organisational products at lower prices that provides various competitive advantages to
organisation. There are various latest technologies are used by respective organisation for the
purpose of reducing cost of production of electronic items that enables it to provide quality
products to customers at lesser prices than other competitors (G'iyosov, 2019).
Differentiation: The ultimate vision of Bang & Olufsen organisation is to produce
exclusive audio and video products that are differentiated form the products of other competitors
in terms of quality, designs, user friendliness as well as innovation. The organisation creates new
features in their products that are not provided by the other organisations.
Strategic direction at the corporate level:
Corporate level strategy is defined as the top management approach and multi-tiered
plans that are used by organisational leaders for define, outline as well as achieve particular