Strategic Management: Impact of Strategies on Company's Decision and Activities

Strategic Management

Table of Contents
Set 1: Report....................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Impact of strategies on company’s decision and activities..........................................................3
External and Internal Analysis of Bang & Olufsen.....................................................................5
Internal Analysis of Bang & Olufsen..........................................................................................8
Set 2: Group Presentation................................................................................................................9
Set 3: Individual Reflective Essay...................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

Set 1: Report
INTRODUCTION
Strategic management can be defined as a process and practice of the company through
which undertake determination and implementation of strategies. Strategies can be defined as a
set of action that is developed by organization so that they can achieve their desired objectives.
Strategic management enables organisation to achieve their objectives more effectively and
efficiently along with providing them competitive advantages. Strategic management involves
analysis of internal and external environment and its factors and identify the element that affects
business and its operation. This report will discuss about strategic management and it different
elements in context of Bang and Olufsen Company. This company is a high and luxury
Consumer Electronics company that was founded in 1925 and is headquartered at Struer,
Denmark. The company’s main products are high and audio and video products. This study is
based on case of Bang and Olufsen Company and hay contextualized strategies of Bang &
Olufsen (B&O) Company. The case states that after experience in success for or a long time
during 2007 to 2009 company lost 20% of turnover (Bundgaard and Huulgaard, 2019). The case
further discusses about strategies of the company and how they made impact on their
performance. The study will discuss about impact of company strategies on decision making and
activities at various level. Followed by this discussion analysis of internal and external factors
will also be included in the study. Competition of the company is with those companies that are
dealing with audio and video electronics.
MAIN BODY
Impact of strategies on company’s decision and activities
Strategies are set of actions that are developed to achieve objectives of the organisation.
Strategies also provide direction and guidelines which are followed while working. This suggests
that strategies have direct impact on decisions and activities of company. Strategies of
organisation are basis of activities hence it shows clear impact of strategies of Organisation on its
activities.

At Corporate Level
Corporate level is considered to be highest level of the organisation. Strategies
determined at corporate level are based on overall objectives of the organisation. Strategies when
are developed at corporate level they affect and impact activities and decision at all level down
the corporate level (Arasti, Khaleghi and Noori,
2017). The strategy that has been adopted by the B&O is concerned with product development.
This means that B&O have decided a strategy in which they will create new products that are
based on latest technology. Along with this their focus will also remain on audio and video
products and they will not continue with developing mobile phone, MP3 players and DVDs. This
strategy of B&O made significant impact on the actions and decision of the company at its
corporate level.
Corporate level decision involves all kind of products and business of the company when
company stop or start productions of particular product, this affect decision of the company
regarding resource allocation. This means that what products will require what kind of and how
much of resources. This mainly involves financial resources and this is a decision and activity
that is carried out at corporate level. For B&O it is important to understand impact of all
decisions and especially when the company involves production and business in more than one
product line. In this strategy some of the product lines have been deregulated and at the same
time some of the product lines have been restructured. This is why corporate level activities and
decisions get affected by strategy of B&O. corporate level decision and activities also get
affected as strategy also affect contribution of activities to business goals and objectives.
Important element regarding impact of strategy on corporate level of the business is that the
strategy that has been developed is also a decision that has been made at corporate level of the
B&O (Furrer, 2016). this means it is CEO and top managerial positions at B&O that has decided
to bring changes in existing product line and stop developing particular product. Later this
strategy of the company will guide actions and decisions at all levels of the business.
At Business Unit Level
Strategies of B&O also affect activities and decisions at business unit level. Business
level impact of strategies that on the basis of strategy that has been created long term objectives