Strategic Management Report: Bang & Olufsen's Decisions and Analysis

This report provides a comprehensive analysis of Bang & Olufsen's strategic management, focusing on how the company's strategies impact its decisions and activities. It evaluates both the external and internal environmental forces influencing Bang & Olufsen, including political, economic, social, technological, legal, and environmental factors, as well as the company's strengths, weaknesses, opportunities, and threats. The report also outlines how organizational strategies assist in strategic evaluation, reflecting on the company's competitive position in the marketplace. Key strategies discussed include pole position, product development, technological digital platform, global sales organization, and cost structure, along with approaches such as differentiation, competition, and quality. The analysis considers Bang & Olufsen's marketing mix and provides insights into the company's approaches to decision-making and market positioning.

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................3
SET 1...............................................................................................................................................3
Evaluate how strategy adopted by Bang & Olufsen impacts the company's decisions and
activities......................................................................................................................................3
Analyse the external and internal environmental forces of Bang & Olufsen and how company
response on it...............................................................................................................................6
SET 2...............................................................................................................................................9
Covered in PPT. ........................................................................................9
SET 3...............................................................................................................................................9
Outline how organisational strategy assist in their strategic evaluation and also include
personal reflection.......................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management define as a continuous designing, monitoring, controlling as well
as analysing the organisational requirements that are necessary to achieve the objectives and
goals (Aguinis, Edwards and Bradley, 2017). Formulation of effective strategies are required in
order to compete in the dynamic situations as well as attain success and growth in the market. To
manage the activities there is need to conduct the assessment of internal as well as external
market environment. Bang & Olufsen was founded in 1925 by the two young engineers of
Danish which are namely as Peter Band and Svend Olufsen. It is a consumer electronic company
that design and manufactures a highly distinctive and exclusive range of loudspeakers, audio
products, telephones, television sets. Under this report discussed about the marketing strategy of
the company that impacts on their decisions as well as operational activities also it discuss the
internal and external environment along with the company response towards each factors. In
addition analyse the three different companies strategic solutions with specific examples.
Moreover, assist organisational strategies in strategic evaluation that reflects on their competitive
positions in marketplace.
SET 1
Evaluate how strategy adopted by Bang & Olufsen impacts the company's decisions and
activities.
High tech industry is facing furious competition in international marketplace as
especially in the field of audio/video, digital appliances as well as loudspeakers. In order to take
competitive advantages a company requires to develop excellent strategies to offer their products
in the respective markets (Baumgartner and Rauter, 2017). Bang & Olufsen will shows their
showrooms that are located nearest to the customer's residence as well as be accessible for client
services. This will required to formulate appropriate strategies that impacts on business decisions
and activities that are further discussed in detail.
Overview of Bang & Olufsen: It deals in the manufacturing of electronic appliances and
produce highly typical as well as sole scope of speakers, telecasting, telephones, music system as
well as multimedia merchandises that has to combined technological advancement along with
emotional request or appeal. This company was founded in 1925 in Denmark as it is universally

renowned for a wide scope of sound quality, pictures etc. with a clear vision. It employs approx
983 employees and revenue is 426.3 Million (Bang & Olufsen, 2019).
Vision: The vision statement of B&O is to develop exclusive audio/video products that are
differentiate with designs, features, quality, innovation as well as user friendliness.
Strategies: Bang & Olufsen focused on the several strategies that are considered as follows:
 Pole position: This is concerned with the clear and single goal, proper sense of urgency,
assigned tasks to all members in order to make effective teamwork. This kind of strategy
helps in increasing the profit, sales, product innovation with high quality and attractive
design and features (Bettis and et. al., 2014). By adopting this strategy a company B&O
was able to make a clear rules and guidelines for their staff which helps the company a
lot in completing all tasks within the time-frame as well as results in effective teamwork
as they all clear their own roles and responsibilities that re needed to perform.
 Product development: The company Bang & Olufsen emphasised on the continuous
product development in some fewer categories and firstly prioritise audio and video
products that are demanded more in the market. This strategy was adopts by B&O in
order to gain a competitive advantages through which they constantly focused on the
development of new products as per the requirements of customers (Certo and et. al.,
2016).
 Technological digital platform: A company introduced unique platform of digital
technology that helps in faster to the market, produce higher quality, increased efficiency
as well as launch more products like TV and video systems, audio, home integration etc.
A company B&O adopts digital technology in order to lead in the market by taking this
decisions a company able to achieve high sales at low cost (Foss and Hallberg, 2014).
 Global sales organisation: The company Bang & Olufsen manage their sales operations
globally as well as develop back office support for managing operational activities in
order to provide 24/7 after sale services at global level. A company B&O focuses on
increasing the global sales by making appropriate strategies in order to fulfil the needs of
international customers as it become expensive procedure for a company while produce
products.
 Cost structure: The company Bang & Olufsen focused on short term cost cutting
structure by taking immediate actions like 165 people released from their jobs, cutting

down external services, cut cost by DKK 160 Million for implementing a Pole strategy.
The network of top quality shops as well as product differentiation is critical to get pole
position so it makes a clear goal to invest in the future and get maximum profit (Meyer,
Neck and Meeks, 2017). B&O adopts and formulates this strategy in order to increase
their profits this will helps in cutting their production cost which results in high profit as
compared to its competitors.
There are some other strategies that related to the marketing mix which should be
followed by Bang & Olufsen in order to produce and sell their products effectively in the market.
Product It should be required attractive and innovative features as it looks good and work
properly.
Price The price must be require appropriate as target customers will need to purchase
those products which have large amount to produce a high as well as healthy
products.
Place This is required to available their products at a right place on right time in order to
make sure that products are arrived when and where the customers are wanted it is
essential for operation.
Promotion It is required to aware large number of customers towards the products availability
and existence through conducting promotional activities. Successful and effective
promotion assists B&O to extended cost over a large end products.
Approaches: The company Bang & Olufsen use various approaches in order to take decisions
and perform activities as per the market conditions and strategies. These approaches are as
follows:
 The differentiation approach: This is mainly focused on the differentiation of products
by adopting technological intelligence, attractive and advanced features as well as
unconventional solutions are sets by B&O in order to cope up with the market
competition (Somsuk and Laosirihongthong, 2014). For this approach a company make
decisions on the behalf of skills and strengths in comparison of their potential
competitors that are in used to the differentiation of electric products that are produced by
the company. This is to create for the purpose of taking market based advantage.

 The competitive approach: The company Bang & Olufsen had a High-brow approach
that competes for the top middle class arbitrary Dollars as taking effective decisions. In
the market there is no direct competition of B&O in electronics industry as it does not
focused on producing mass market goods along with a wide appeal as like their rivals
products that are without any regard for the needs and preferences of consumers.
According to the market conditions a company focused on implementing strategies and
decisions such as they thinks to locate their showrooms near to the residence of their
consumers as they get high services from it. Moreover, their service centres are available
for normal working hours and provide services by appointments as well as resources are
employed effectively in order to serve customers intelligently and it highlights the
customization as well as personalization decisions (Trigeorgis and Reuer, 2017).
 The quality approach: Bang & Olufsen develop marketing as well as communication
strategy by analysing market conditions appropriately as a lifestyle oriented strategy
which aims at a smaller group but global markets as a target by offering lifestyle
products. It targets their customers through advertisement as a attractive and meaningful
slogan like “B&O is for those who prefer quality and taste before products prices”.
Analyse the external and internal environmental forces of Bang & Olufsen and how company
response on it.
Most of the products of Bang & Olufsen are produces or designed in Denmark but in this
report considering its business operation in UK as it has to understand all external environmental
factors such as political, economic, social, technological, legal and environmental in United
Kingdom (Zhao and et. al., 2017). For internal environment analysis this report consider B&O
strengths, weakness, opportunities as well as threats that are beneficial for the company in order
to survive in the market for a long period of time. This company get advantages when Denmark
and UK are the parts of European union or can say that before the Brexit deal.
Analysis of external environment: Political factor: This includes the political conditions, stability as well as governmental
rules are addressed that effects the company's performance so they needs to analysed that
factors and responds on it effectively. For example As per the European union, it
facilitates the free trade of products and services between approx 500 million customers
in the total 27 states of European members. This will result that import duties are not

imposed on good sourced by Bang & Olufsen from Denmark as European states. As the
formation of new government there could be some kind of alterations in VAT as well as
service taxation that impacts on the Bang & Olufsen. Currently Denmark has a minority
government formed by the centre right political parties with the full support of Liberal
alliance, conservative etc. as it will helps B&O to run its operations in that country as
well as facilitate free movement of trade also (Ortega and Okechukwu, 2017). Economical factors: This includes the interest rate, inflation and deflation conditions as
well as foreign exchange rates and saving rates that effect the company's environment
and performance. Economic crises as well as recession has impacted Bang & Olufsen
business as organisations and people are like to keep on to cash and not spend it on the
high prices of consumer goods that are negatively affect the business operation. Also,
decline in the share prices as well as market of real estate impacted on the high products
consumers like Bang & Olufsen customers will be less interested to spend as they earlier
do. A major economic factor is faced by the Bang & Olufsen is foreign exchange rates of
currency as it is a large part of Denmark's manufactured along with the Danish Krone
marked to Euro, as the GBP of Euro is at the devaluation stage which has effected the
B&O products sales in United Kingdom that are earlier consider as a largest market. Social factor: This is totally depends on the taste, preferences, trends, cultures of the
society. As Bang & Olufsen has developed on the belief of Danish design that is framed
for the high class arrangement of products and superior quality because of this the
products of B&O takes placed as a status symbol as well as pride products in the
marketplace (Perera, 2017). Technological factor: This is focused on the automation and up gradation in the existing
technologies and modified them in order to take a competitive position in the market. As
Bang & Olufsen has several competitors like Bose, Loewe who are also well known for
its quality and design of products and they are also come up with the high price products
and similar functioning but offer at equal or slightly lower prices as compared to B&O. In
order to that B&O adopts the technological advancement, elements are acquiring cheaper
that may help several companies such as Samsung, Sony etc. and they get products range
in numerous qualities, target price as well as quality conscious segments.

 Legal factor: This includes the lawful objects, policies, laws, legislations etc. that are
needed to fulfil by all business organisation as it helps in conducting operational
activities in a legal manner. Bang & Olufsen has to make sure that the trademark of a
company is protected and it should be registered under the respective country
legislations. Also, a company should ensure that there is not contravenes or conflicts
related to the patent right (Fozer, 2017).
 Environmental factors: All companies needs to protect the environment while
conducting operational actives and manufacturing tasks. In order to follow environmental
protection laws Bang & Olufsen should develop, design and manufacture goods under
some conditions that are adhere in order to fulfil the demand of ISO 14001 as well as
OHSAS 18001 standards. B&O is a responsible company that consider environment
firstly as they desires to make sustainable products. Environmental effect due to
production unit must be required in mutual balance with the consideration of operations,
design as well as longness of its products.
Analysis of internal environment of Bang & Olufsen:
Strengths Weaknesses
 The resources and capabilities of a
company consider as a major strength.
 Continual development is a strong area
in order to get greatest experience.
 Digital technological platform is also
used in taking challenges and compete
with their competitors.
 Comes in various styles are leads in the
weakness of the company.
 Prices lock away many customers as
they can't afford them.
 High prices are not affordable by all
class of people so it lacks in their target
customers.
Opportunities Threats
 Global demand of audio video products
provides an opportunity to the B&O.
 Franchise opportunity also present in
the market.
 Huge market competitions creates some
kind of threats as they all produce
similar products.

Company response on internal and external environment: After analysing the internal as well
as external environment with the context of Bang & Olufsen it finds that company was able to
understand the market situations in well manner and responds effectively by implementing
appropriate business strategy (Phadermrod, 2019). As they developed their resources and
competencies in order to deal with the complex market conditions that are widely acceptable in
the market and it get high competitive advantages in this competition era.
SET 2
Covered in PPT.
SET 3
Outline how organisational strategy assist in their strategic evaluation and also include personal
reflection.
Organisational strategies are very important for a business to proceed their working with
effective and strategic plans. There are several strategies that are required to implement in order
to take high position in the market by solving the problems in an appropriate manner.
Implementation of strategy is good but evaluation is also needed to know about the effectiveness
as well as ineffectiveness of their implementation. If strategies are implemented effectively then
they get advantages of rise in the market shares, customer base, productivity, profitability as well
as brand image of a company (Gürel, 2017). Mainly strategies are developed and used by
employees in order to fulfil the task requirements and achieve the objectives and goals with in a
specified period of time.
As in this research report mainly the case of B&O organisation is consider as it was
suffering from loss over a several period of time and try to cope up with this issues by managing
their businesses in a strategic manner. Strategies are formulated in accordance of the objectives
like B&O formulate their objectives in that manner such as follows: want to focus on product
development by offering unique and several categories, emphasise on technological digital
platform for each categories, consider the object of global sales organisations as well as cutting
cost wit respect of market conditions. The company follow especially pole position strategy to
achieve the above all objectives which includes profitability, sales as well as cost factors. This
helps in giving clear directions and roles which are required to fulfil the tasks (Nussbaum, 2017).
Whereas, for taking innovative steps a company follow leadership approach in order to lead the

alteration according to the requirements of market. This approach results in better effectiveness
of strategies implementation as they use these approaches to lead the behavioural changes which
will results in develop their knowledge and experience.
In addition for comparison the strategies and approaches of businesses use three
organisations such as B&O, Dynaudio and Bose corporation. The all businesses adopts different
strategies to get success and long term survival in the competitive marketplace and develop their
employees. As Dynaudio use management consulting and developing employee engagement
strategies for achieving the market position in order to accept the changes by staff members and
work towards the accomplishment of new objectives. This will increase the market area, shares,
profits as well as goo image. Also a company use motivational theories to satisfy the needs and
wants of the employees form basic level to upper level through which a company is able to get
the maximum contribution and motivation that helps in attainment of organisational objectives
effectively. This shows that it is beneficial for the company while they plan to develop the
technological changes and it is most effective for that organisation (Inigo, 2017).
Moreover, Bose corporation is also implements effective strategies like it mainly focus
on sustainability approaches as it facilitates the reflection of its essence as well as values which
are supports company's commitments with the integrity and threats in respects of other
organisations. As in order to implement a sustainable approach a company use learning theories
as it mainly focused on the development of individual learnings that are developed through
learning programmes. If employees are learned and developed they get results in high
potentiality towards the acceptance of changes and implement strategies effectively by
attainment of objectives properly. This shows the very effectiveness for Bose corporation in
order to have skilled and talented workers as they have full knowledge and experience of market
conditions and strategic management.
It has been align that all strategies are most effective if these are implemented
appropriately otherwise it is worthless. So from the above discussion of all strategies and
theories it clearly known that these strategies are very effective for particular organisation which
they followed separately. As all helps in increasing the market shares of a company, develop a
large customer base as well as achieve the high level of sustainability and survival in the
dynamic or competitive marketplace.

I am very thankful to all who gave me an opportunity to research about the strategic
management at global as well as domestic level businesses. As it has enhanced my knowledge
and experience regarding the Bang and Olufesn as well as its products because it deals in several
electric appliances like loudspeaker, television, multimedia, music system etc. This company is
mainly knows as a Danish design business and I am feeling lucky to have that opportunity to
know about the well known brand. But while I detailed analysed the company profile I came to
know that it was suffering from financial crises in year 2008 with respect of their market value
and profitability ratio as this were decreased at a great extent. It also know that firms contributed
only 10 to 16% contribution in their turnover as well as it totally depends on the new
technological suppliers. While I am studying about the company's report I came to know about
the role and importance of business strategies in the context of taking competitive advantage and
survive in the marketplace. As a part of this project completion I personally feel that how deeply
businesses are depends on the company's strategies and approaches in order to motivate their
employees. Also a pole position was effective to use for increasing its market value as well as
build and develop customer base for their products. This helps to develop a strong benchmark for
competitors as they bring innovative ideas and features of its products in the market. This will
results in profit maximisation and lead in the market positions as comparison of their rivals. By
understanding the entire activities of a business organisations I feel that to survive in a tough and
dynamic competitive world it is essential to adopts unique as well as effective strategies of
marketing. It order to compete in the competitive era there is need to analyse the whole market
circumstances in very deep manner and know the scenario of marketplace and rivalry plans. As
in order to survive and sustain for a long period of time a company require clear vision such as to
design and formulate audio and video products along with its uniqueness, high quality and
attractive designs.
CONCLUSION
Form the above report it has been concluded that strategic management is required to
plan, organise, monitor and evaluate the business activities in order to facilitates the high level of
productivity as well as profitability. There are several strategies that are used by different
organisations for fulfilling their objectives and the strong ambition towards the success helped a
business to adopts the new strategies of marketing and business. In order to survive and sustain
in the market for a long time period a company focused on strategic solutions to grow and

survive in the open market successfully. Mainly pole position strategy used by an organisation to
build their strong market image as well as in the customers eyes of views. This will assist in
increasing the revenue for future and grow successfully in the international marketplace also.