Strategic Management Project

STRATEGIC
MANAGEMENT PROJECT

Contents
SET 1...............................................................................................................................................3
Introduction..................................................................................................................................3
External and internal factors of the company..............................................................................3
Internal Analysis..........................................................................................................................5
Conclusion...................................................................................................................................8
SET 2...............................................................................................................................................8
SET 3...............................................................................................................................................9
Reflective Essay...........................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management involves setting objectives, analyzing the competitive environment,
analyzing the internal organization, evaluating strategies, and ensuring that management rolls out
the strategies across the organization . Bang & Olufsen is a high end luxury Danish consumer
electronics company that designs and manufactures audio products, television sets, and
telephones. This report is classified in 3 sets, first one gives the analysis of external and internal
forces that the company needs to assess and implement. Second set is about the generic and
intensive strategy. The last set is the reflective essay of the report.
SET 1
Introduction
Bang and Olufsen commenced their operations in Denmark and it was in the year of 1925. The
company has been successful in establishing itself as a global brand. They deal in the high end
and luxury goods which are offered by the brand. They were in the top 20 list of companies in
the year 2008. But after that they lost more than 20 per cent of their share in the market. There
was a reason behind that as there was no new launch by the company which affected their sales.
The last decade was very bad for the company as they were dependent on their key suppliers so
that they can compete with the advancements of technological era. They needed to focus on the
life cycle of the product in order to maintain their position in the market. This started as a
competition but became a challenge for the company to match with the level of development
required in the area of technology. This pushed them away to meet the demand and expectations
of the consumers in the market. In order to improve they even changed their management, their
CEO and they changed the base of the company from technical oriented to communication
oriented. With that they changed the strategy of the company which was stated as new
turnaround strategy so that they can focus on the centered range of product. The name of the
strategy given by the company was pole position which meant to work as team of Formula one
racing. So that they can work as a team with clear task of everyone in mind. With the help of this
theory they will be able to focus on their structure of cost and the global sales with one thing in
mind and that is to explore the area of audio and video products. This task contain s pestle

analysis, competitor analysis, SWOT analysis and value chain analysis so that they can cover the
internal as well as external approach of the market and the company (Lasserre, 2017).
External and internal factors of the company
Political Factors-
These factors have helped Bang Olufsen to achieve development and growth by
complying with innovation. The federal government helped them so that they can fill the gap and
meet the criteria of standards on a global level. This was done so that they can comply with the
aspect of technological change in the market (Cosenz and Noto, 2016).
Economic Factors-
The products manufactured by the company were meeting with low demand and the
supply of the products in the market is on an excess level. Another factor of the downfall in sales
of the company is that they have faced recession three times between 1991 to 2007.
Social Factors-
Company is focusing on training so that they can grow in the funding of humans and
focus on increasing the expertise of resources they have in the industry. This aspect is solely
based on the department of labor and the quality of market which is related with IC (Ferrer
Romero, 2018).
Technological Factors-
There are still many factors which are affecting the manufacturing stage of the company
and that is they are not able to cope up with the level of innovation in the market and because of
that they have to rely on other dealers and partners. With the help of support of government they
have been able to reduce the impact of this factor.
Environmental Factors-
They contribute in these factors for the betterment of the society so that they can sustain
the environment by using renewable resources and achieving better image of the brand.
Legal Factors-