Strategic Management: Strategies and Environmental Analysis of Bang & Olufsen

This report discusses the strategies adopted by Bang & Olufsen, such as cost structure, pole position, product development, technological digital platform, and global sales organization. It also analyzes the external and internal environmental forces of the company.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
SET 1...............................................................................................................................................1
Measuring how strategy adopted through Bang & Olufsen impacts the organization's
decisions and activities...........................................................................................................1
Analyse external and internal environmental forces of Bang & Olufsen and how organization
response on it..........................................................................................................................4
INTERNAL ENVIRONMENT.......................................................................................................5
SWOT Analysis......................................................................................................................5
SET 3...............................................................................................................................................6
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Strategic management defines about those strategies which is used by managers within
the firm in order to manage and operate business activities in a different manner. With the help
of following several strategies they can achieve better performance with a competitive
advantages for their organisation. Apart from this strategic management can also identified as the
bundle of decisions and acts which is taken by managers and decides the results of organisation's
performance. Therefore, strategic management plays vital role within firms which helps them to
achieve organisational goals and objectives in an appropriate manner (Morton, Wilson and
Cooke, 2015). This report is based on Bang & Olufsen was established in 1925. along with this
organisation has been developed by two engineers of Danish named as Peter Band and Svend
Olufsen. It is known as electric organisation which deals with audio products, loudspeakers,
television sets etc. in order to know about various strategies further discussion will be depends
upon strategies adopted by respective firm and that have impact on its decision making. After
this internal and external factor in which company respond will get covered. At last, reflective
report will be given properly.
SET 1
Measuring how strategy adopted through Bang & Olufsen impacts the organization's decisions
and activities.
During the competitive advantages, lots of companies are working together in order to
achieve their targeted goals at market everyday. As there are so many firms so competition is
also increasing every day which directly impacts on overall performance of company in both
positive and negative sense. Herein, Bang & Olufsen is required to have various scenario and
tools by which they can increase their growth and able to gain successful aims. As this is dealing
with electronic items so they are really needed to have such different strategies to satisfy its
customer's desires at every level (Linn, Sanden and Piekkari, 2018). For maintaining great value
of firm, there are needed to have some unique concepts along with strategies by which they can
make their business more attractive, those are mentioned below:
Overview of Bang & Olufsen;
This firms is known for the manufacturing of electronic items with high technology
performance and fine quality. Items which is provided by this firm are involves telephones,
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earphones. Loud speakers, music system and so on. This firms was formed in the year of 1925
and it is headquartered in Denmark and provide its services globally. By having global presence
they are more famous and able to provide different types of goods and services with unique
quality which attract customers in an appropriate manner. According to this global image they
have 426.3 million sales and revenue in a year.
Vision: Is to develop effective quality of audio and video products in a different shape,
size and innovative technology.
Strategies: There are different strategies which is followed by B&O, discussed below:
Cost structure: Bang and Olufsen firm generally focus on their cost structure as they
develop different types of goods and services to their customers so they are needed to focus on
its cost strategies by which they can make effective list of pricing and able to satisfy consumer's
needs and wants. With the help of making better cost structure they can achieve its goals and
able to apply those cost on different products as per the quality. They develop this strategy in
order to gain huge profits and revenue accordingly (Milovanovic, 2015).
Pole position: The main aim of this strategy within B&O is to develop various task for
their team members or employees in order to make effective workforce by which they can
develop effective sales and revenue along with huge profits. Therefore, it is necessary for this
firm to develop innovative techniques to achieve desired goals.
Product development: With the help of this strategy this firm is able to develop different
categorised goods which will influence people in a positive manner. That's why it is useful for
them to fulfil customers needs.
Technological digital platform: Digital technology is best process to implementation on
those aspects by which firm is able to bring improvements on their so many products as they
deals with. By adoption of digital technology strategy Bang and Olufsen is able to take right
decisions with huge sales and revenue.
Global sales organisation: This is very attractive and effective strategy which help firms
to gather accurate knowledge by which they can sale their items accordingly. Along with this it
helps to increase global sales through applying so many process and procedure to run business
smoothly (Lee, 2014).
There are some another strategies which is related with marketing mix and mainly used
by B&O, those are going to be discussed below:
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Product According to this element of marketing mix B&O generally deals with
electronic items like headphone, telephones, loud speakers and so on.
Price According to this strategy respective mainly use flexible pricing policy by
which they can produce unique goods and services with innovative
technologies.
Place They always target such type of market in which people can easily approach
their showrooms and able to get their desired products.
Promotion According to B&O generally develops awareness towards its products within
the marketplace and societies as well. In order to promote their entire goods and
services they used Television, newspapers, online aids, print media etc. with the
help of this they can achieve its targeted goals and objectives effectively.
Approaches:
There are several appropriate and effective decisions that are adopted by Bang and
Olufsen in order to appropriately take effective decisions in relation to ensure effective
functionality within the overall marketplace. Hence, in this relation, several approaches are
highlighted and implemented as under:
 The Differentiation Approach: It is a very crucial approach for the organisation in
relation to assisting them in development of technological intelligence, appropriate and
effective features within their offerings which would allow the firm in enhancing their
innovative capacity, as well as enhance the scope of improvement in relation to gaining
competitive advantage. Moreover, B&O would be bearing the advantages in relation to
beat the competition within the market due to differentiation of products from several
other companies within the marketplace (Lee and Smith, 2018).
 The Quality Approach: Within this, the firm would be developing certain appropriate
communications strategies, which would be assisting the organisation in determining
several market and industrial situations, which are inclusive of the lifestyle of individuals
which the firm is planning to target. Moreover, in relation to ensure improvisation,
advertisements could be provided by B&O in relation to communicating the market
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regarding different offers for the customers, such as high quality products in lower
product cost.
Analyse external and internal environmental forces of Bang & Olufsen and how organization
response on it.
Within current scenario several kinds of products and services used by so many firms in
order to satisfy customer's needs and desires. In context with Bang and Olufsen, they always
focus on external and internal environment in order analyse environmental study before
expanding or launching business. Whereas, internal environment includes strength, weakness,
opportunities and threats. Along with external environment refers to the political, economical,
social, technological, legal, environmental and technological. It helps them when Denmark and
UK both have segmentation of European union then firm is able to gain its advantages during the
Brexit.
Analysis of external surroundings:
Political factor: This factor includes several forms such as different types of policies,
political conditions, government rules and regulations and so on. With the help of this, firms can
fulfil customer's needs and wants. For example: As per the European union B&O provide free
trade services to 500 million customers within 27 states. Therefore, import duties are not
applicable on that. In the present scenario this firm is able to follow political situation of UK so
that they are providing its services to customers and fulfilling their wants (Kohtamäk and et. al.,
2012).
Economical factors: It mainly includes interest rates, inflation rates as well as deflation
conditions which is based on foreign exchange rates. All these sorts of economical factors
directly affects firms value and their earning factors. In order to reduce negative impact of this
factor B&O is needed to have better knowledge of economy like what their customers wants and
what type of products they should develop. By observing all these things they able to influence
people and able to gain competitive scenario.
Social factor: It includes taste, preference, trends, culture and society of people. In
context with B&O by having Danish designs of product they always develop high technological
goods and services in order to gain huge profits with successful growth in an appropriate manner.
Technological factor: This factor describes numerous factors in relation with
technological advancements such as data, websites, voice and so on. In reference with B&O they
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always comes with new techniques into the marketplace by which they can develop their clear
vision and able to cope up with marketing situation within the UK. Therefore, this is necessary
for them to adopt new technologies by which they can develop its brand image in front of its
customers and able to give them high quality of goods and services in a proper way (Knott,
2015).
Legal factor: It refers to the different types of laws, legal rules and policies which is
mainly develop to accomplish business needs and wants. In reference with Bang and Olufsen,
they are able to conduct so many research in order to formulates appropriate framework which is
useful to produce different goods and services by following country's legislations. Therefore, this
is useful to overcome legal factors impact negatively. With the help of this they can use effective
patent rights and able to gain competitive scenario.
Environmental factors: This is based on different types of climates and weather so that
herein, firm is needed to have effective place by which they can sale their items and able to
provide its services in an effective manner. Therefore, it helps to reduce extra factor and apply
necessary laws to make effective productivity.
INTERNAL ENVIRONMENT
SWOT Analysis
STRENGTHS WEAKNESSES
 One of the major strengths of the
organisation is that an effective brand
image is being enjoyed by the
organisation due to its working and
resource capabilities.
 Another strength of the firm is in
relation to continuous improvement
which allows the firm in adhering to
customer requirements and ensuring
better customer satisfaction.
 The company is technologically
 One of the weakest element within the
firm is its New Product Development.
 Another weakness of the organisation is
that it offers its products at premium
pricing, hence, narrowing the target
market.
 Inappropriate marketing is also a
prominent weakness of the company.
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advanced which allows it to gain
effective competitive advantage.
OPPORTUNITIES THREATS
 High end technological advancements
is an opportunity for the firm to provide
more effective audio and video
products.
 Franchising is another opportunity
which must be adhered by the
organisation in relation to expanding its
market (Kim, Lee and Shin, 2015).
 Competition is one of the major threats
for the organisation.
Responses of the company towards external and internal environment:
As per the above analysis about internal and external environment of Bang & Olufsen, it
could be determined that the current market and organisational condition is very much
understood by the company. Along with this the firm is able to respond in an effective manner
within the marketplace. Moreover, there are several resources which could help the firm in
dealing to dynamic situations within the marketplace which would be helping the firm in
sustaining the competition as well as ensuring suitability within its market presence.
SET 3
Strategic management is always considered as the planning process in order to identify
and analyse different types of factors which are necessary for company to achieve its goals and
objectives. When I talk about strategies, Bang and Olufsen has always been clear that they use so
many unique designs and strategies in order to applying and make their firm innovative.
Therefore, respective firm has never faced quality competition at market as they designed its all
type of electric product in a well manner. The most important thing is this brand is having unique
logo which identified its audio, speakers and many more items as they dealing with. In order to
maintain this reputation in market this company always follows customers seeking strategies
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within its audio assets along with it focuses on visual market in which people wants high quality
of goods and services with latest technology.
By having assorted strategies they able to develop good image of its brand and influence
people towards firm at marketplace. With the help of this they can create strong relationship with
customers at marketplace and able to achieve their target within short period of time. Along with
this firm adopt so many strategies and techniques to beat its competitors and increase customers
expectation from them (Cserháti and Szabó, 2014). Through implements on different kind of
strategies they can improve its business functions and operations and able to maximise
productivity of employees together with enhance profit of company. By using this type of tool
they can achieve their employees goals as well and workforce is able to give them satisfying
outcomes positively.
Apart from this, report is mainly focusing on Bang and Olufsen, a few years ago this firm
faced so many difficulties while applying innovative aspects and not able to satisfying their
entire customers in market. So they always think about those assorted strategies by which they
can make better scenario of their company towards running their business in an appropriate way.
Therefore, the aim of this firm is to provide better quality of products within the marketplace.
With the help of this they can achieve its goals and able to increase huge sales and profit towards
firm in a stipulated way.
According to my point of view in the current scenario there are different firms who are
working with lots of people and adopt new tools and strategies everyday. In order to become
successful business and brand at market that attracts customer's the most. If I focus on Bang and
Olufsen so they are having good brand image but at the same time there are so many competitive
firms like Bose, Dynaudio and so on. All these sorts of firm are dealing with same products. So
that competition can be raise anytime into the marketplace (Cacciolatti and Lee, 2016).
Therefore, respective firm is required to adopt unique and different strategies by which they can
overcome negative impact on their goods and services and make excellent quality of goods. In
order to maintain this position always they are mainly needed to have help with Research and
Development department by which they can make strong decisions on the valuable aspects. On
the other side Dynaudio follows also use R&D department in order to increase their sales and
revenue effectively. So that they can make strong relations with its customer's. Therefore, Bang
and Olufsen needed to have more employees in their firm by which they can increase firm's
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productivity and sales in a particular way. Through the implementation of various strategies they
can develop a better plan and able to adopt new technologies by which they prove that this brand
sales unique electric products.
According to the other competitor of This company which is Bose, they are also
following different strategies in order to maintain its image at market. There are different types
of strategies which is followed by this firm so that they can grab new opportunities at
marketplace. For sustaining long time in the market they also used different theories and tools in
order to change their systems by which they can learn about new aspects and able to provide
various learning concepts to its employees. By giving training and development programmes to
employees firm is able to expand its business on the another place so that for gaining more
successful growth they can recruit and hire skilled employees who will reach this organisation at
high level (Burgess and Radnor, 2013).
So now this can be said that, if Bang and Olufsen effectively implemented on numerous
strategies in a correct way they can achieve its targeted goals. Therefore, they should only focus
on various strategies and models by which they can make better relationship with other people
and able to give better training to its employees in a perfect way. By following different types of
strategies and tools they can make their work effective and encourage them to apply unique
qualities of electronic items in front of its customers. From the all of this they can achieve
positive results such as increasing market share, long term sustainability and so many other
factors.
From the above specified information about respective company, I have learned that they
conduct research on those aspects by which they can increase their productivity and profitability
into the marketplace. Along with this they used PESTLE AND SWOT analysis by which they
are able to understand internal and external condition of market by which they can make their
strategies accordingly. On the basis of SWOT analysis they can get knowledge about its overall
strength, weakness, opportunities and threats and then they bring some innovative changes zand
implements on them (Hoque, 2013). Due to conducting PESTLE analysis they learned about
external factors of market environment which includes political, economic, social,
environmental, legal and technological factors that shows about different situations so that
company observe all those conditions in which they should some modifications properly. Apart
from this there are another types of strategies such as Ansoff's matrix, Porter's 5 generic strategy
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model, that all are helpful to measure company's profile by which they can make better ways to
implements on innovative things. That's why Bang and Olfusen has been able to reach its goals
at higher level and able to deliver high quality of goods and services at marketplace.
I am so glad that I am able to focus on different types of strategies and research in
relation with specific brands globally. This topic increase my knowledge and I have learned so
many new things by which I can also launch my new business in order to learn makreting
concepts along with various factors which is followed by respective firm. As per my experience I
am recommended to firm that they can use more another things in order to increase their business
productivity like they can apply so many unique concepts so that they can easily target market
and customers by growing every day. Further they should include so much work by which they
can make effective financial assessment in order to run their business smoothly. Apart from this
during this study I saw that in the year of 2008 company has been faced so many challenges and
issues which was very difficult to resolve them. Another side they used some kind of models and
strategies by which they are able to this negative factor through applying so many tools in order
to survive within the business environment. After all this I understand that how business
strategies can work accordingly and how can business run by beating competitive scenario. Now
if feel that business mainly depends upon several strategies and it is necessary for them to
applying innovative concepts in order to increase market share as well as brand value (Eason,
2014).
Apart from this Bang and Olfusen's goods are very much attractive as designed with
innovative tools and techniques which creates their digital presence at marketplace. As
respective firm is working with so many electrical products like loudspeakers, headphones,
Bluetooth and so on. During the modern culture this firm is able to provide its personal websites
by which customers can easily purchase its product weather it is offline and online as well. But
now a days this company generally implements on those strategies by which they can produce
more effective product and able to expand its business on the another place. Therefore, firm is
able to give better satisfaction to customers and provide effective quality of goods and services.
So this report helped me in understanding overall tools and strategies by which an
organisation can formulates so many things to achieve their targeted goals at marketplace. I also
gained few knowledge about dynamic environment like how firms are dealing with every day
competition in order to sustain for long period of time at market. Therefore, company should
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carefully focus on these assorted things in order to make clear visions, goals and objectives so
that they can instantly able to get profit with high sales and revenue (Aubry and et. al., 2012).
Along with this they should focus on its manufacturing quality of goods by which they can offer
high quality of services to their customers and able to gain unique image within competitive
scenario.
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CONCLUSION
From the above mentioned report it has been concluded that strategic management is the
process of applying numerous method and activities by which firms can get benefit in a perfect
way. With the help of so many strategies manager can monitor and control all factors which is
helpful for company to increase profit effectively. Along with there are several sorts of
approaches and strategies which is used by electric corporation in order to gain competitive
advantages at marketplace. On the basis of different strategies and models firm can achieve its
goals and targeted objectives by which they can sustain for long period of time at marketplace.
Therefore, all these strategies and models are much helpful for company in order to make strong
relationship with other people at market.
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