Strategic Management of Bang & Olufsen

Strategic Management
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Contents
INTRODUCTION...........................................................................................................................2
SET 1...............................................................................................................................................3
Introduction..................................................................................................................................3
External analysis of Bang & Olufsen..........................................................................................4
Internal analysis of Bang & Olufsen...........................................................................................6
Current market and competitor analysis......................................................................................9
Conclusion.................................................................................................................................10
SET 2.............................................................................................................................................10
Covered into PPT.......................................................................................................................10
SET 3.............................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10
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INTRODUCTION
Strategic management is an activity of constant planning, determination, analysis and
assessment of all that is required for an establishment to accomplish its goals and objectives. It
can be a procedure of explaining the organisational plan of action with the assistance of them,
the administrators of the venture and select a set of tactics and strategies for an organisation
which is unable to attain its effective execution (Ansoff and et. al., 2018). This written document
is supported to Bang & Olufsen which is a high end luxury Danish consumer electronics
organisation that frames and produces audio products, television sets and telephones. This
establishment was founded in 1925 by Peter Bang and Svend Olufsen. This venture deal in
electronics business sector and is headquartered in Struer, Denmark. The report will discuss
information about the analysis of internal and external factors of the firm by using PESTEL
analysis and SWOT analysis. Along with this competitor analysis will be conducted through
Porter’s five force analysis. The capability analysis will be explained by using Value chain and
VRIN analysis. Further, will define about strategic solution that support organisation to manage
its competitiveness by using Porters generic strategies. Finally, reflective analysis will define of
the mentioned information in form of essay.
SET 1
Introduction
Introducing the case- Bang & Olufsen has administrated to accept to changing market
conditions majorly by launching new products with the best accessible technology and a unique
design. In 2007, B&O suffered a dramatic downturn cause of the global financial crisis and the
same time experienced a paradigm shift in the market with the key drivers supported on digital
and networked technology. New management, installed in 2008, modified the framework and
introduced a new strategic plan, developing effectiveness and enlarged product development
whilst retaining the concentration on B&O core competence of unique design (Schilling and
Shankar, 2019). This case investigates the sustainability of the new strategy in a technology
driven market with key rivals that develop their own technology, often leading the technology
standards of the marketplace.
Background information- Bang & Olufsen was incorporated in 1925 in Struer, Denmark and it
is included to be one of the most crucial Danish design icons and an essential segment of Danish
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industrial legacy. B&O is a well known global brand with a immense concentration on design
and high tech solutions in television, music systems, speakers and multimedia commodities etc.
To make development in the business, the respective company adopt the strategy of
technical innovation at the business unit level so that it can create positive impact on
organisation’s decisions and activities in term of fulfilling consumer’s needs and demands
(Ginter, Duncan and Swayne, 2018). Whereas at corporate level, the firm adopt new
management and change in products so that they can operate their business in systematic manner
without influencing any kind of financial crisis and offering innovative and new product in
corporate world.
External analysis of Bang & Olufsen
External analysis states examination of the industry environment. It is an activity and
process of determining the impact and influence of external factors which affect the business of
enterprise due to change in political aspects, economic situation of nation, social fluctuation and
changes in technologies and legal as well as environmental components. In context of Bang &
Olufsen, the administration of this firm can use PESTEL analysis to determine the impact of
external factors over establishment.
PESTEL Analysis
Political- This factor of external analysis is consider government intervention, political
stability or instability, foreign trade policy, trade restrictions, taxation policy, labour law,
environmental law and many more. Free trade is an effective aspect that can create favourable
impact over the business of respective firm in term of expanding business in diverse nations. But
political instability situation in some nations affect negatively to the firm.
Economical- It considers economic components which have a significant influence on
how an establishment does business and also how profitable they are. It includes economic
development, interest rates, inflation or deflation, currency rate, employment or unemployment
rate, disposal income of consumers and many more (Moutinho and Vargas-Sanchez, 2018). By
offering job opportunities to the people, the firm make development in the employment of nation
which positively affects organisation’s development. Global financial crisis are affected
unfavourable to the economic condition and profits of the establishment.
Social- It acknowledge as cultural components and the area that consider the shared
belief and attitudes of the individuals. It consists population growth, age allocation, needs,
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