The strategic alliance of bang and olufsen.

Essay by anilm_74University, Master'sB-, December 2003

download word file, 4 pages 5.0

Downloaded 171 times

Financial Analysis:

From the data that has been provided we see that the company is currently doing poorly in 1990-1991 as its return on investment is -22.5(down by 40.9%), which shows that it cannot even get back even what has been invested. But it is also seen that the company's turnover has been increasing every year, in 1986-1987 it was $1,902.1million and it increased to $2,180.1 million by 1990-1991. The turnover outside Denmark has been fluctuating .In year 1986-1987 it was 76.3 million but during years 1987-1988 it had dropped to 75.3 million. Again by 1990-1991 it had increased to 77.0 million. It's earning has also been negative in 1990-1991 at $-47.1 million, which in 1986 was $137.8 million due to limited cash flow and heavy investments. B&O's total assets has also been fluctuating as in 1986-1987 it had $1,332.9 million which increased in 1989-1990 to $1,715.6 million .The total assets in 1990-1991 had dropped to $1,685.2

million .The company's share capital which was $100.0 million in 1986-1987 increased to $124.0 million . Net earnings had been down by 129.7 million DKK. The share price is as high as DKK 530.

Current Scenario

Bang & Olufsen A/S was a leading consumer electronics company in Denmark. Their main strength was their reputation for being a user-friendly company offering high quality products with futuristic designs giving importance to originality & sound quality. This allowed them to have a large global market share in the global electronic product market. Bang & Olufsen is one of the worlds leading premium audio visual & telecom product retailers and operates throughout most major international markets. ,originality & sound quality

Top Management

The company has a hierarchical system of management. Anders Knutsen is the president of Bang & Olufsen and Povl U. Skifter is the chief financial...