Sustaining the magic at Bang & Olufsen

Sustaining the magic at
Bang & Olufsen

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
SET – 1 ...........................................................................................................................................1
Evaluate how strategy adopted by Bang & Olufsen impact company's decsions and activities
.....................................................................................................................................................1
PESTLE analysis of Bang & Olufsen (B&O).............................................................................2
Porter's Five force analysis of Bang & Olufsen..........................................................................4
Analyse external and internal factors of company and their way to response to towards them.
.....................................................................................................................................................5
SWOT analysis of Bang & Olufsen ..........................................................................................5
SET -3 .............................................................................................................................................8
Individual Reflective Essay ........................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term strategic management is refer to a part of a management which is concerned
with the development of strategic vision, setting out objective, formulating and implementing
strategies with aim of accomplishing the desired goal or objective in an effective manner. Along
with this, application of suitable or appropriate tactics enable an establishment to gain
competitive advantage and also can achieve dominance over the market. However, it is been
identified that understanding the aspect of strategic management plays a significant role as it
empower a company to survive within the changes of business environment in an innovative and
creative style (Ansoff And et. al., 2018). In regard of this report, Bang & Olufsen has been
considered which is a high end luxury Danish customer electronics company that manufactures
audio products, television set s and telephones. It is founded in the year of 1925 and it is
subsidiary of Haman International Industries. In this study, it involves application of relevant
theories, models in order to analyse internal and external business environment. Finally,
presenting the collected information in a reflective statement for gaining the better understanding
of strategic management in regard of enlarging company's overall productivity ratio.
IN relation to Bang & Olufsen, the industry where it operate and deliver its product or
services is highly competitive and challenging that directly impact over its overall sales
performance. However, the company desire to come up with innovative products into an existing
marketplace for which they face various threat like political factors, dynamic customer taste or
preference, demand of innovation or technologies sand so on. Such rivalries influences the
ability of organisation to survive inside the competing industry for longer time duration.
Therefore, for attaining sustainable productivity during such type of competition, implication of
various theories or concepts related to external and internal business environment drive firm to
make best strategic decision in order to gain competitive advantage (Hill, Jones and Schilling,
2014).
MAIN BODY
SET – 1
Evaluate how strategy adopted by Bang & Olufsen impact company's decsions and activities

PESTLE analysis of Bang & Olufsen (B&O)
PESTLE analysis is a tool which is utilized for studying and evaluating several macro
factors, existing in economy in which organisation operates and have its business. These
elements have huge impacts on the business, affecting its functions and overall business
performance. This framework is specially important while company is bringing new products in
market or when entering in new market with entirely fresh product. PESTLE analysis of Bang &
Olufsen is present below:
Political factors refers to those impacts different government have on the industry and
businesses existing in that industry. Bang & Olufsen have its operations in several geographical
areas having different governments, therefore, it is exposed to several political environments of
countries (Ginter, Duncan and Swayne, 2018). The variation in laws of different political
environment from nation to nation affects the company. Bang & Olufsen needs to keep
standardization in its operations across all its locations and for that it had to have updated
knowledge about all laws and regulations. Otherwise, it can affect the entity in negative manner.
Economical element are determinants of an economies performance like inflation,
economic growth and interest rates. Bang & Olufsen has faced negative impacts due to
unbalanced economies. Needs of people and supply are unbalanced which caused huge problems
for company to mange its supplies as they can not predict or forecast any particular number for
manufacturing. Also, recession is another area of worry as it can have its impacts on production
and performance level of company.
Social dimension of the market in which organisation is operating is discussed here.
There are several factors present in social environment which can affect the entity's business like
age distribution, income, career attitude and preferences of people. Social components of Bang &
Olufsen played vital role in expansion and growth. The company was providing jobs to local
people increasing their purchasing power and focusing on human resource advancement which
increased its goodwill. People start choosing Bang & Olufsen before other as they had really
good image and reputation in mind about the organisation (Trigeorgis and Reuer, 2017).
Technological components is focusing on innovation and new technology that can affect
the operation of entity in both negative and positive manner. These components can be level of
innovation taking place, R&D activities and technological changes, all these can influence the
business actions. Bang & Olufsen always concentrate on technology and on being updated, still