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

This report provides a comprehensive strategic analysis of Bang & Olufsen, examining its decisions, activities, and the impact of its adopted strategies. It explores how the company's cost structure, product development, and global sales organization contribute to its competitive advantage. The report analyzes the internal and external environmental forces affecting Bang & Olufsen, including political, economic, social, technological, legal, and environmental factors, and how the organization responds to these forces. It also investigates Bang & Olufsen's marketing mix strategies and approaches. The report concludes with an evaluation of the company's competitive position and strategic solutions, providing insights into its operational effectiveness and future growth prospects within the dynamic marketplace.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
SET 1...............................................................................................................................................1
Measure how strategy adopted by Bang & Olufsen impacts the organization's decisions and
activities..................................................................................................................................1
Examine the internal and external environmental forces of Bang & Olufsen and how
organization response on it.....................................................................................................4
SET 2...............................................................................................................................................7
Covered in PPT.......................................................................................................................7
SET 3...............................................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Strategic management refers to the continuous planning, designing, controlling,
monitoring and identifying different types of organisational needs and wants which are needed to
achieve targeted goals and objectives in a perfect manner. Strategies development is an essential
aspect which is used to beat dynamic situations in environment to achieve successful growth at
marketplace. In order to manage several activities and management operations which impact on
business internally and externally as well (Baumgartner and Rauter, 2017). This present report is
based on Bang & Olufsen was formed in the year of 1925 with the help of two young engineers
of Danish which can be considered as Peter Band and Svend Olufsen. Along with it is a electric
organisation which is manufactured and designed for having effective audio products,
loudspeakers, television sets and so on. Further discussion will be based on several marketing
strategies and its impacts on decision making process on those activities which is managed and
controlled by an organisation. Along with internal and external environment which response firm
to fulfil goals. At last organisational strategic evaluation that reflects on competitive position in
marketplace along with strategic solutions will get covered.
SET 1
Measure how strategy adopted by Bang & Olufsen impacts the organization's decisions and
activities.
Within the competitive scenario, there are lots of organisation who facing so many
competition at marketplace every day. Along with into the field of audio/video, loudspeakers and
digital appliances competition is increasing rapidly (Aguinis, Edwards and Bradley, 2017). To
gain competitive advantages firm is needed to formulates unique strategies of their goods and
services to gain effective growth at marketplace. In context with Bang & Olufsen, this firm
always shows its showroom near to the customer's residence so that they can easily gives their
services in a proper way. In order to make business more attractive firm is needed to have few
strategies that influence business decision process which all are mentioned below:
Overview of Bang & Olufsen:
This firm always deals with manufacturing of electronic assets that product high quality
of loud speakers, telephones along with effective music system. In order to produce high quality
of goods and services they always used advance technologies as per the customers needs and
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wants into marketplace. This company opened in 1925 and headquartered in Denmark which is
mainly globally renowned to gain successful growth among quality, pictures and so on. By
having this clear vision they can achieve its goals and having 983 around employees so that
overall revenue is 426.3 million accordingly.
Vision: The main vision of B&O is to formulates video/audio products that can be
determined by their unique designs, innovative qualities and features.
Strategies: B&O generally focus on several strategies, those are discussed below:
Cost structure: Bang & Olufsen organisation mainly focus on cost cutting structure for
shot term with the help of taking few actions such as 165 candidates discharged from their jobs,
cutting down within external services and cost cutting through DKK 160 Million in order to
implements on Pole strategy (Fozer and et. al., 2017). Therefore, the entire network shows that
the process of product differentiation is hard to get people position so it should make clear goals
and vision so that they can invest more for the future along with able to increase profit. As per
this B&O develop such strategy by which they can easily maximise profit and able to beat its
competitors in their own way.
Product development: Bang & Olufsen organisation always concentrates on continuous
product developing plan in order to categories their entire goods as per the market demand. This
strategy is very useful for this firm to gain competitive advantages by regularly focusing on their
development of new goods in order to satisfy customer's desires appropriately.
Pole position: It refers to the appropriate goals and proper sense of urgency along with it
help to assigned task for all of the members by which they can make effective team and able to
work accordingly. With the help of this strategy firms can maximise sales, profit, innovative
goods and so on. In context with B&O, when they adopt this strategy then they offer clear rules
and guideline to its staff members in order to make appropriate framework to achieve clear goals
or objectives (Foss and Hallberg, 2014).
Global sales organisation: According to this, Bang & Olufsen manage its overall sales
operations along with develop supporting tools for back office to offer 25/6 after selling services
worldwide. Therefore, this firm mainly concentrates on developing or maximising global sales
by applying this sorts of strategy to fulfil customers desires internationally. Therefore, it become
expensive procedure for developing better ways to develop goods.
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Technological digital platform: In this firm mainly comes with their unique platform of
digital technologies within the marketplace. In order to increase firms value and efficiency firm
produce high quality of goods and services like TV, audio and video recording system and so on.
Along with Bang & Olufsen, being adopt digital technologies for leading market by taking
decision to gain effective sales and revenue appropriately (Certo and et. al., 2016).
Apart from this there are few strategies in relation with marketing mix which can be use
by Bang & Olufsen for selling and producing goods into the marketplace, given below:
Product It should be adopted by B&O in order to give new shape and size of its product
perfectly.
Price With the help of this strategy firm can adopt flexible pricing criteria to grab
large number of people attention so that they produce high quality of goods at
market.
Place In this strategy or aspect firm is available to produce its entire product at higher
place in which they can target large people and able to manage overall
operations perfectly.
Promotion It is most effective and essential strategy for B&O in order to develop
awareness towards products in customer's mind by using several aids on TV,
advertisement, print media, online aids and so on. It will helps them to achieve
successful growth at marketplace.
Approaches: Bang and Olufsen also use so many approaches to take effective decisions
and able perform their overall activities at every situation of market (Bettis and et. al., 2014).
Some of the approaches are given below:
The competitive approach: In order to gain competitive scenario B&O had High-Brow
approach by which they compete top middle class capricious Dollars as taking right decisions.
This firm is not focused on mass market goods so that there is no direct competition in electronic
industry so no competitive rivalry direct influence respective firm's value towards customers
(Inigo, Albareda and Ritala, 2017). On the basis of marketing condition firm implements on right
decisions so that they can sell those goods which are needed into the market that increase firms
sales and revenue. In addition to this, firm also provide various types of resources and
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appointments to its employees so that they can use innovative techniques in order to provide
better quality of good to its customers.
The differentiation approach: This approach is based on differentiation approach which
help firms to adopt technological intelligence, advanced features and attractive aspects to cope
up with marketing situations to gain competitive advantages. According to this approach B&O
organisation is able to beat its competitors and able to differentiate goods from the other firm
therefore, it mainly produced high quality of goods and services at marketplace.
The quality approach: In this approach Bang & Olufsen generally formulates different
types of communication strategies to identify entire situation of market which consist lifestyle in
order to target potential customers. In order to improve this, they also used advertisement by TV
and newspapers, along with they use slogan such as “Bang & Olufsen made for those people
who generally prefer taste and quality before considering product cost.”
Examine the internal and external environmental forces of Bang & Olufsen and how
organization response on it.
There are different types of products which is used and produced by Bang and Olufsen
which is designed in Denmark by observing overall external environmental factors like political,
economical, social, technological, legal and environmental within the UK to understand overall
scenario at marketplace (Gürel and Tat, 2017). Whereas, internal factor identifies about strength,
weakness, opportunities and threats about B&O that all are essential for this firm to survive for a
long period of time at marketplace. When UK and Denmark are the segments of European union
then company is able to achieve its advantages in an effective manner by dealing with Brexit.
Analysis of external environment:
Political factor: This factor comes under so many aspects like political conditions,
governmental rules and political stability which directly influence overall performance of firm so
that they can easily satisfy their needs and able to respond on it properly. For example, according
to European union, it offers products by free trade services to around 500 million customers
within the 27 states of European members (Zhao and et. al., 2017). So that it can be said that
import duties are not properly applied on products offered by Bang and Olufsen European and
Denmark states. Changes in government policies influence tax and VAT on goods of B&O. At
present respective firm is following so many aspects from this and able to provide better product
to customers. Economical factors: It consist inflation rates, interest rates along with deflation
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situations on the basis of foreign exchange rates, saving rates which influence firm's business
place and work. According to this factor, economic crises has been influence B&O, in which
people have cash but not able to spend on those assorted things which is offered by this firm.
Therefore, it negatively influenced them. It also decline cost and market condition of real estate
which reduced value of products from B&O. Apart from this there is another factor which is
faced by B&O, that is foreign exchange rates at marketplace. So that company is needed to make
better ways to develop improvements (Somsuk and Laosirihongthong, 2014).
Social factor: It is based on trends, preferences, taste, culture and society. Herein, B&O
has formulated belief on Danish designs which is prepared for a high class arrangements of
goods with fine quality so that it take place as a unique symbol and able to gain profit at
marketplace.
Technological factor: It is based on automated technologies which can be modified
within existing products to take competitive advantages in better position. In reference with
B&O, as they have different types of competitors in marketplace like Loewe, Bose etc. Who all
are well known and famous for their products. Therefore, respective firm is needed to have better
gradation and automation strategies by which they can make its all over goods more attractive in
so many ways. With the help of advancement technologies they can easily target appropriate cost
strategy and able to provide innovative products to customers in order to gain brand identity
effectively (Phadermrod, Crowder and Wills, 2019).
Legal factor: It involves laws, legislations, objects and several policies which all are
required to fulfil business organisations and helpful to conduct operational activities in a legal
manner. In context with Bang and Olufsen they make particular framework which protect firms
products and services from the country legislations. Therefore, firm should ensure that there is
not difficult conflicts in relation with patent right.
Environmental factors: According to this firm are needed to have few approach which
is required while operating overall operational activities to protect their services and product of
firm. In reference with Bang and Olufsen they develop and design it's product according to the
country's laws by which they can overcome negative factors and able to make mutual funds
properly.
Analysis of internal environment of Bang & Olufsen:
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Strengths Weaknesses
 This company has effective and
attractive brand image at marketplace
with the help of lots of resources and
working capabilities which shows its
strength in an effective manner.
 Regular development and strong goals
make them effective and develop
strong relationship with customers by
having better experience.
 By having digital techniques they can
easily remove competitive factors from
firm and able to achieve competitive
advantages (Ortega and Okechukwu,
2017).
 When they come with different types of
product at marketplace then it can be
the weakness of firm.
 Sometimes customers are not able to
afford products from this company
because of high price.
 This is not possible for every people to
buy costly products, so that this
situation can create negativity and do
not help firm to target customers.
Opportunities Threats
 Demand and wants are rapidly
increasing of audio video products
which is offered by B&O can give
better opportunities to them.
 In addition to this there is Franchise
opportunity which shows its presence at
marketplace.
 There are different types of marketing
competitors which creates competition
for this respective firm.
Company response on internal and external environment:
After observing all these assorted things about external and internal environment in
reference with Bang and Olufsen, it has been concluded that respective firm was able to
understand overall situation of market environment in a well manner and able to respond on
every activity at market scenario. Along with this, they also developed so many resources by
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which they can deal with different situations and able to gain high competition with advantages
globally.
SET 2
Covered in PPT.
SET 3
Strategic Management refers to the process of continuous planning and analysing of all
the factors that are essential for an organization to achieve its goals and objectives that are set for
the long term as the business environment keeps on changing. Companies should formulate
strategies that are not only effective but also have great results/ outputs when implemented.
Bang and Olufsen is a Danish consumer electronics company that manufactures high end
luxury audio products, TV sets and phones. The company was founded by two young Danish
engineers, Peter Bang and Svend Olufsen in the year 1925. The company was acquired by
HARMAN International Industries in 2015. The company is known worldwide for producing
high end audio and video systems of fantastic quality and impeccable designs (Nussbaum, 2017).
This report primarily focuses on the strategies adopted by Bang and Olufsen in order to
achieve its goals and objectives and also evaluation of the strategies and analysing the impacts of
these strategies on the company and its overall position in the market. Different analysis like
SWOT and PESTEL are conducted in order to know the company's capabilities regarding what
are its strengths and weaknesses and how the brand plans to overcome them.
When it comes to strategy, Bang and Olufsen has always been clear about this and strives for
design and innovation. The company has never been seen compromising on quality and design of
its products. The brand logo itself speaks for the company and is indicative of turning the audio
world around. The company still follows the strategy of seeking customers in the audio as well
as visual market who want excellent quality, innovative design and new technology.
Having this strategy not only allows the company to attract more customers but also
retain existing ones and maintain a long term relationship with them. Organisational game plans
serve as a very important aspect within any organization in order to develop goals and objectives.
A company develops various strategies in order to achieve goals and gain a competitive
advantage over its competitors and meet the customers' expectations. Implementation of correct
strategies help the company in improving its brand name and employee productivity, increasing
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its customers and profitability etc. Strategies in a company are developed by the management
and is implemented by the employees to reach the target.
This research primarily focuses on the company Bang and Olufsen as the company has
been facing a rough time and developed various strategies in order to overcome the same. The
strategies were designed keeping in mind the goals and objectives of the company. Bang and
Olufsen's current strategy is to search and aim for people who are looking out for best quality
products in the market. The company follows walk through strategy to achieve its goals and
objectives which in turn result in high revenues and profits (Meyer, Neck and Meeks, 2017).
Different businesses opt for different strategies in order to be successful, sustain for a
longer period of time and maintain a long term relationship. The three companies talked about
here Band and Olufsen, Dynaudio and Bose. All these brands are high end luxury brands
producing audio products of excellent quality. Dynaudio follows the strategy of increasing the
number of existing employees in its R&D department and also making itself strong. The
company also focuses on developing strategies that are inclined towards the overall development
of the employees. Implementing these strategies have not only helped the brand in increasing its
market share and profitability but also employees' productivity. The employees are motivated
towards achieving the goals and objectives and putting in immense efforts. This implies that the
company can carefully plan and then implement technological advances and it will prove to be
effective for the company.
Coming to Bose, the brand follows a lot of strategies in maintaining its brand image in
the minds of the customers. The company follows a set of strategies that mainly focus on the
values of the company and catch the essence of the same. In order to be sustainable the company
uses various learning theories as they primarily focus on improving the individual learning of the
employees. Trained and skilled employees tend to work more productively and proficiently. This
will ensure that the goals are obtained in an effective manner. Bose , as a company, has been
successful in hiring and retaining a skilled and trained staff who have full experience and
knowledge of the market.
It can be seen that strategies if implemented properly and correctly can result in high
level outcomes if not implemented properly can prove out to be disastrous for the company.
Therefore, from this report focussing on strategic management, it can be observed that strategies
of any kind form a major part for an organisation to achieve its goals and objectives. Following
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strategies can have positive results for the company such as- increased market share, improved
and increased customers, longer sustainability and being able to survive for a long time in the
market.
Having analysed different types of strategies and choosing to opt one can have its own
advantages and disadvantages. I learnt that the company must first conduct an internal as well as
an external analysis like SWOT and PESTEL analysis. Opting out for such strategies in the
initial phases will help the company in getting an idea of its strengths, weaknesses as well as the
opportunities and threats surroundings will pose to it. Conducting a PESTEL analysis will help
the brand in understanding the external environment like political, economic, social,
technological, environmental and legal environment around the company. There are other
strategies like using Ansoff's matrix, Porter's generic strategies etc. that can prove to be measures
helpful for the company in becoming the market leader and better understanding the
marketplace. This is why Bang and Olfusen has been able to reach at this level and become the
brand it is today as it has always paid focus on making products that deliver high quality service
and unmatchable sound quality.
I am thankful for having being given this opportunity to conduct research on the topic
Strategic Management on brands that operate domestically as well as internationally. The topic
has truly enhanced my knowledge regarding the subject and the company (Bang and Olufsen), its
products, the kind of strategy it follows (Trigeorgis and Reuer, 2017). The company mainly
focuses on producing high end luxury products in the audio and video segment. It is counted
among one of the best brands in this industry and I'm glad that I was able to learn so much from
the same. During my detailed analysis of the study, I observed that the company suffered from a
financial crisis in 2008 resulting in a decline in its profitability ratio and the overall market value.
During the study, I also got to know and understand how business strategies play an important
role for an organisation for it to survive in a dynamic business environment. I personally feel that
businesses highly depend on the strategies that the company opts for in order to sustain and
survive in the industry. Also, a walk through strategy helps in increasing the market share of the
firm. This also results in gaining a competitive advantage over others and help the firm in
becoming the market leader.
Bang and Olfusen's products stand for- sound, unique design and and an excellent
craftsmanship. The company is currently working on a new setup for its digital presence. Also,
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the company is currently working on enhancing the user experience through its website. Having
a modern, user friendly and an interactive website will help the company in gaining more
customers and reach out to new ones. Bang and Olfusen is implementing new technology in its
products step by step and on combining the online and offline businesses. The company
constantly upgrades and come up with new products in its audio and video segment in a way that
its product portfolio is extended with no standardised products on the portfolio. The company
tries and produces products that make its customers feel at home anywhere and anytime with
excellent sound quality and product feature.
This report has helped me in understanding that how organizations develop strategies and
set benchmarks for them. This not only helps them in actively working towards the goals but also
achieving them and therefore result in profit and revenue maximisation. I also gained knowledge
regarding how are companies able to survive in a dynamic and tough business environment and
adopt strategies that will help them out stand the market (Perera, 2017). A company must
carefully study and analyse strategies and ways that various other brands follow in order to gain
a competitive advantage over others and being able to survive in order to survive. Therefore, to
sustain for a longer period of time and achieve goals and objectives, the organization must have a
clear vision and mission statement so that it can work with a proper focus and also manufacture
as well as produce products that are of utmost high quality, with excellent design, innovative
and unique features.
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CONCLUSION
According to the above representative report it has been analysed that, strategic
management refers to those activities which is helpful for firm to analyse, monitor and control so
many things that increase firms profitability and productivity in an appropriate manner. There are
different types of strategies and approaches which is used by firm in order to gain competitive
advantages and scenario which helps firms to gain competitive scenario to fulfil their objectives
and goals within the marketplace. On the basis of this firms can get successful growth and able to
achieve their goals with positive brand image in marketplace. It help firm to sustain and survive
in market for long time with better image and develop strong relationship between firms and
customers as well.
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Online
Bang & Olufsen. 2019. [Online] Available through: <https://www.bang-olufsen.com/en>.
Bose Corporation. 2019. [Online] Available through:
<https://www.boseindia.com/en_in/index.html?
mc=28_PS_BD_BO_00_GO_&gclid=EAIaIQobChMIg4LJ_bv75QIVVQwrCh3u1QSY
EAAYASAAEgJ8UPD_BwE&gclsrc=aw.ds>.
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Dynaudio. 2019. [Online] Available through:
<https://www.worldwidestereo.com/pages/dynaudio>.
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