Strategic Management and Strategy Evaluation for Bang & Olufsen

This essay delves into the realm of strategic management, emphasizing the significance of strategy evaluation, particularly through the case study of Bang & Olufsen, a luxury consumer electronics company. It explores how an organization's strategy aids in its evaluation, focusing on competitive advantages and the fulfillment of strategic purposes. The essay outlines strategic management's role in achieving organizational goals, analyzing internal and external environments, and evaluating strategies. It examines the steps involved in strategy evaluation, including performance benchmarks, measurement, variance analysis, and corrective actions. The report highlights how Bang & Olufsen aims to adapt to market changes through product innovation and design, and the advantages of strategic evaluation. The conclusion emphasizes the importance of designing and evaluating strategies effectively, ensuring the achievement of predetermined goals, gaining competitive advantages, and improving business productivity. The essay concludes with a discussion of how strategy evaluation supports the company's vision and provides guidance to employees.

Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
How the organisations strategy assist in their strategy evaluation. This should be based on the
company’s competitive advantage and fulfilling it’s strategic purpose......................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Strategic management is related to the management of organisation resources for
accomplishing goals as well as objectives (Aguinis, Edwards and Bradley, 2017). Moreover,
strategic management includes setting objectives, analysing internal organisation, analysing
competitive environment, evaluating strategies and also making sure that management rolls out
the strategies. In addition to this, strategic management has its two fold objectives i.e., to gain
competitive advantages and also to act as guide to organisation for surviving within changing
business environment.
It is based on case study of Bang & Olufsen which is high ended luxury Danish consumer
electronics company which designs as well as manufactures audio products, television sets as
well as telephones. Respective company was founded in 1925 and its founder was Peter Bang
and Svend Olufsen. This report will going to write essay on that how organisation strategy
provide assistance to company in their strategy evaluation.
MAIN BODY
How the organisations strategy assist in their strategy evaluation. This should be based on the
company’s competitive advantage and fulfilling it’s strategic purpose.
Strategy is the action which manager of organisation have to take for accomplishing one
or more than that goals (Baumgartner and Rauter, 2017). Moreover, strategy can be define as
general direction set for the company as well as its various components for achieving desired
state in future. In simple words, strategy can be defined as knowledge of goals, uncertainty of
events and need for considering actual behaviour of others. Strategy is the blue print of decision
which taken in an organisation and it shows organisation goals, objectives, key policies, plans for
goals achievement and so on. On the other hand, Strategic management is related to the
management of organisation resources for accomplishing goals as well as objectives (Bryce,
2017). Moreover, strategic management includes setting objectives, analysing internal
organisation, analysing competitive environment, evaluating strategies and also making sure that
management rolls out the strategies. In addition to this, strategic management has its two fold
objectives i.e., to gain competitive advantages and also to act as guide to organisation for
surviving within changing business environment.
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After designing strategy it is important for an organisation to evaluate within this strategy
evaluation will provide assistance (Certo And et. al., 2016). Because it is the way through which
company can evaluate health as well as productivity of their business as well as future
endeavours. In simple term it can be said that with the assistance of this procedure information
will gather in relation of that how well strategic plan is progressing. Moreover, it is the procedure
of determining the effectiveness of strategy for accomplishing objectives of organisation and
taking correction when needed. Bang & Olufsen strategy is to adopt changing condition of
market through launching new products with best technology availability as well as unique
design (Durand, Grant and Madsen, 2017). It is important for Bang & Olufsen to evaluate their
strategy in effective manner and there is proper process related to it. It have four steps, First is
fixing benchmark of the performance so respective company have to set bench mark for their
new strategy i.e., 'Pole Position'. For determining benchmark performance it is important to
discover special requirement for performing main task. Bang & Olufsen can utilise both
quantitative as well as qualitative criteria for comprehensive assessment of performance. Here,
quantitative includes return on Investment, earning per share, cost of production, rate of
employment etc.. Whereas, qualitative factors are subjective evaluation of factors like skills,
competencies, flexibility, risk taking potential and so on (Engert, Rauter and Baumgartner,
2016).
Second step is measuring performance of strategy which Bang & Olufsen is bringing for
gaining high market share. In this step, as per the setted benchmark company will measure their
actual and standard performance. For measuring performance reporting as well as
communication system will provide assistance to Bang & Olufsen. There are several measures
which help in measuring performance of strategy but only when standards are setted in
appropriate manner because it result in making strategy evaluation easy (Ethiraj, Gambardella
and Helfat, 2016). But measures should have to be taken on right time if it will not then its
purpose will not meet. After this third step is analysing variance, because while analysing actual
and standard some variance may be analysed. Thus, for accomplishing goals and objectives of
strategy it is important for Bang & Olufsen to fill variance which has been founded within actual
and standard performance. For filling this reason have to be founded behind this, so that
corrective action will be taken to overcome with it (Hanson and et. al., 2016). In last step
corrective action will be taken only when if the performance is consistently less than desired. For
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this detailed analysis have to be conduct and major steps will be taken for filling gap which has
been find in this.
Bang & Olufsen wants to gain competitive advantages within changing business
environment which is the main reason behind bringing new strategy which is named as 'Pole
Position' it is metaphor chosen form formula one motor racing (Hitt and Duane Ireland, 2017).
Apart from this, vision of Bang & Olufsen is to develop exclusive audio as well as video
products which should be different on design, quality, innovation and have to be user friendly. In
relation of respective organisation strategy evaluation have its major advantages as it will
provide assistance to respective business in accomplishing their predetermined goals and
objectives in effective manner (Hitt, Ireland and Hoskisson, 2016). Bang & Olufsen will gain
several advantages of strategic evaluation in relation of their new strategy which is 'Pole
Position'. Because it will generate inputs for new strategic planning, urge for feedback, appraisal
as well as rewards, develop strategic management process as well as judge validity of strategic
choice. In simple term it can be said that, valuation ensure that organisation is heading within
correct direction and accurate actions are taken which needed for accomplishing predetermined
goals related to new strategy (Holloway, 2018). Along with this, it provide guidance to
employees who are involved within 'Pole Position' strategy. It include manager and workers both
as well as their performance will compare with expectation so if their will be any gap then
fulfilled by taking major steps. Furthermore, strategy evaluation find out what needed to be done
for improving performance and meeting targets. In addition to this, after designing strategy its
evaluation is necessary because it help in collecting information that how well strategic plan
progressing. Strategic evaluation is the procedure of determining the effectiveness of given
strategy for achieving organisational objectives and for taking corrective actions when needed.
Main motive behind strategy evaluation is to fill gap which find within standard and actual
performance of an organisation (Meyer, Neck and Meeks, 2017).
Apart from this, if team members are performing well then it will be identified through
strategic evaluation. Thus, it inspire confidence which simply means that information related to
good performance result in increasing level of confidence among everyone. Along with this, it
will motivate staff members to achieve better performance for keeping their track records
(Trigeorgis and Reuer, 2017). Motivation is necessary for each and every individual for
performing task in more effective manner. In addition to this, it will also help in improving
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productivity of business because motivated employ will perform task in more effective manner
and result in accomplishing goals and objectives of business within effective manner (Zhao and
et. al., 2017). Thus, in summarised form it is important for Bang & Olufsen to conduct strategy
evaluation as it will provide assistance to company in accomplishing targets of their in effective
manner within required time duration. Along with this, company will able to gain competitive
advantages through strategy evaluation. So, it have their own important in new strategy
development as well as its planning.
CONCLUSION
After going through entire discussion it has been summarised that, for an organisation it
is important to design their strategies in proper manner because it provide assistance to company
in accomplishing their predetermined goals and objectives. In addition to this, after designing
strategy its evaluation is necessary because it help in collecting information that how well
strategic plan progressing. Strategic evaluation is the procedure of determining the effectiveness
of given strategy for achieving organisational objectives and for taking corrective actions when
needed. Main motive behind strategy evaluation is to fill gap which find within standard and
actual performance of an organisation.
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REFERENCES
Books and Journals
Aguinis, H., Edwards, J. R. and Bradley, K. J., 2017. Improving our understanding of
moderation and mediation in strategic management research. Organizational Research
Methods. 20(4), pp.665-685.
Baumgartner, R. J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner Production. 140,
pp.81-92.
Bryce, H. J., 2017. Financial and strategic management for nonprofit organizations. Walter de
Gruyter GmbH & Co KG.
Certo, S. T. And et. al., 2016. Sample selection bias and Heckman models in strategic
management research. Strategic Management Journal. 37(13), pp.2639-2657.
Durand, R., Grant, R. M. and Madsen, T. L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management Journal.
38(1), pp.4-16.
Engert, S., Rauter, R. and Baumgartner, R. J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production. 112, pp.2833-2850.
Ethiraj, S. K., Gambardella, A. and Helfat, C. E., 2016. Replication in strategic management.
Strategic Management Journal. 37(11), pp.2191-2192.
Hanson, D. and et. al., 2016. Strategic management: Competitiveness and globalisation. Cengage
AU.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Hitt, M. A., Ireland, R. D. and Hoskisson, R. E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Holloway, S., 2018. Changing planes: A strategic management perspective on an industry in
transition. Routledge.
Meyer, G. D., Neck, H. M. and Meeks, M. D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Trigeorgis, L. and Reuer, J. J., 2017. Real options theory in strategic management. Strategic
Management Journal. 38(1), pp.42-63.
Zhao, E. Y. And et. al., 2017. Optimal distinctiveness: Broadening the interface between
institutional theory and strategic management. Strategic Management Journal. 38(1),
pp.93-113.
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