Bang & Olufsen A/S Company Announcement Bang & Olufsen rolls out
2008-10-21 07:01:51.450 GMT
Bang & Olufsen A/S Company Announcement Bang & Olufsen rolls out overall
strategy plan
The management of Bang & Olufsen is rolling out an overall strategy plan for
the Group's future development and operations.
The aim of the strategy plan is to make sure that Bang & Olufsen:
1. Focuses on product development in order for Bang & Olufsen to concentrate
on fewer product categories, i.e. primarily audio and video products.
2. Builds one common digital technology platform as the future technological
foundation for the Group's products across its product portfolio.
3. Ensures more effective support for, and development of, Bang & Olufsen's
dealer network by creating one general global sales organisation.
4. Increases the number of shops in growth markets.
5. Adjusts costs by DKK 160 million to achieve short-term profitability.
6. Appoints a new management team for the Group.
1. Focus on product development: Bang & Olufsen will focus on the development
of audio and video products as well as sound systems for cars. These areas have
traditionally driven the Group's activities and have been its most important
turnover generator as well as contributing to the creation of the unique Bang &
Olufsen brand across the world.
Bang & Olufsen, therefore, will no longer develop products within categories
such as mobile telephony, mp3 players and stand-alone systems like DVD2 and
HDR2. The Group will also cease its involvement with new co-branded products.
Existing products will, of course, continue to be fully supported.
Instead, focus will be on reinforcing the Group's unique brand through the
creation of innovative high quality audio and video products as well as sound
systems for the automotive industry. The forthcoming digital audio product,
scheduled for launch in November, is an excellent example of one such
innovative product.
With the BeoLiving concept, Bang & Olufsen offers an unrivalled concept in
terms of total solutions for sound and picture and other technical
installations in the home. The Group intends to develop and refine this concept
even further into real Home Integration. This will allow users, through their
Bang & Olufsen remote control, to control everything from sound and picture to
curtains and air-conditioning etc, an area that is showing considerable growth
around the world. As a natural progression, Bang & Olufsen also intends to
focus more on solutions and products adapted to individual customers'
requirements.
The management will also maintain the successful development of exclusive sound
systems for cars. Sales of these systems are seeing a highly positive
development and have reached a stage where management regards the segment as
part of the Group's core business.
2. Build a common, digital technology platform: Through more efficient
utilisation of existing technologies and the targetted development of one
general, future digital technology platform, Bang & Olufsen will not only
achieve faster, but also more efficient product development. In the course of
two to three years, this new digital technology platform will lay the
foundation for all newly developed Bang & Olufsen products. Until then, the
consolidation of the current technology platforms will ensure faster and more
efficient development of high quality products from 2009.
3. One general global sales organisation: Bang & Olufsen will continue to
expand its current shop concept. With immediate effect, the management will
initiate a process aimed at creating a more efficient global sales
organisation. Until now, the Group's seven regional sales organisations
worldwide have operated as independent units with their own back office and
service functions. To ensure a consistent approach and respect for the whole,
the management is centralising global responsibilities and, as a result,
implementing a range of efficiency measures.
The strategy plan comprises two further main components:
• The management intends to direct greater focus on the dealerships so that
dealers with the strongest growth potential will take centre stage. Other
dealers will also be given renewed attention when resources are available.
There will also be focus on establishing a uniform sales system with clear
guidelines, action plans and follow-up tools.
• The management intends to upgrade, and, more importantly, professionalise,
the sales system. These measures will include a further development of the
present sales staff into an international sales team of dynamic retail
consultants with expertise within sales promotion, based on experiences with
the best sales promoting initiatives within the global organisation. The
ambition is for all Bang & Olufsen shops around the world to offer their
customers a memorable experience of sound, picture, quality, professionalism
and service-mindedness.
4. More shops in growth markets: The management intends to open more B1-shops
in world markets with the strongest economic growth. Over the next two years,
the aim is to more than double the number of B1 shops in key growth markets
e.g. Russia and China. Other growth markets will also be subject to an
aggressive growth policy.
5. Cost adjustments: Bang & Olufsen is implementing a DKK 160 million cost
reduction programme for the current financial year compared to the activities
envisaged at the beginning of the year. The purpose is to adjust the cost level
to the Group's new and lower turnover level of recent months. Bang & Olufsen,
however, will remain a dynamic organisation and the Group will maintain its
high activity levels for product development despite the adjustments.
As part of the cost reductions, the Group has, as of today, abolished in the
region of 300 jobs. As a result, 165 employees have been made redundant while
the remaining positions will remain unfilled etc.
Other elements in the savings plan include reductions in the purchase of
external services.
6. New management team: To secure the successful implementation of the new
strategy plan, the Board of Directors and the Group's CEO have appointed a new
management team which, together with the CEO, will assume responsibility for
transforming the plan into action, rapidly, efficiently and accurately.
Bang & Olufsen's Management Board will consist solely of President & CEO Karl
Kristian Hvidt Nielsen who took up his position on August 1 this year.
The management layer below the Management Board will comprise:
• Senior Vice President, Finance & Accounting, Randi Toftlund,
• Senior Vice President, Operations, John Bennett-Therkildsen and
• Senior Vice President, Sales, Michael Aagaard Andersen.
The Management team will be also be supplemented by a further two positions:
• A high-capacity individual with expertise in international brand marketing and
• A highly-qualified expert who can meet the challenge of taking overall charge
of Bang & Olufsen's product development.
Based on his qualifications and experience, President and CEO Karl Kristian
Hvidt Nielsen will personally head up - and ensure the ongoing progress of -
product development until the right person has been appointed.
Seen in isolation, the strategy plan does not change Bang & Olufsen's
expectations for the current financial year. Traditionally, the Group's
turnover for November and December is substantially above average. This,
combined with the recent turbulence in financial markets has increased
uncertainties. As a result, the Group will not give an estimate for the full
2008/09 financial year until the publication of the interim report for the half
year on January 15, 2009.
Karl Kristian Hvidt Nielsen
President/CEO
Later today, Tuesday, Bang & Olufsen will present, and comment on, the
implemented strategy plan at a meeting for analysts and the media. The
presentation will be in English.
The meeting will take place at 14:00 in Bang & Olufsen's Nortern European sales
headquarters at Kalvebod Brygge 43, 3, DK-1560 København V.
For any further information, please contact:
Karl Kristian Hvidt Nielsen, President/CEO, at +45 9684 5004
https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=294370&messageId=347421
https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=201175
-0- Oct/21/2008 07:01 GMT
2008-10-21 07:01:51.450 GMT
Bang & Olufsen A/S Company Announcement Bang & Olufsen rolls out overall
strategy plan
The management of Bang & Olufsen is rolling out an overall strategy plan for
the Group's future development and operations.
The aim of the strategy plan is to make sure that Bang & Olufsen:
1. Focuses on product development in order for Bang & Olufsen to concentrate
on fewer product categories, i.e. primarily audio and video products.
2. Builds one common digital technology platform as the future technological
foundation for the Group's products across its product portfolio.
3. Ensures more effective support for, and development of, Bang & Olufsen's
dealer network by creating one general global sales organisation.
4. Increases the number of shops in growth markets.
5. Adjusts costs by DKK 160 million to achieve short-term profitability.
6. Appoints a new management team for the Group.
1. Focus on product development: Bang & Olufsen will focus on the development
of audio and video products as well as sound systems for cars. These areas have
traditionally driven the Group's activities and have been its most important
turnover generator as well as contributing to the creation of the unique Bang &
Olufsen brand across the world.
Bang & Olufsen, therefore, will no longer develop products within categories
such as mobile telephony, mp3 players and stand-alone systems like DVD2 and
HDR2. The Group will also cease its involvement with new co-branded products.
Existing products will, of course, continue to be fully supported.
Instead, focus will be on reinforcing the Group's unique brand through the
creation of innovative high quality audio and video products as well as sound
systems for the automotive industry. The forthcoming digital audio product,
scheduled for launch in November, is an excellent example of one such
innovative product.
With the BeoLiving concept, Bang & Olufsen offers an unrivalled concept in
terms of total solutions for sound and picture and other technical
installations in the home. The Group intends to develop and refine this concept
even further into real Home Integration. This will allow users, through their
Bang & Olufsen remote control, to control everything from sound and picture to
curtains and air-conditioning etc, an area that is showing considerable growth
around the world. As a natural progression, Bang & Olufsen also intends to
focus more on solutions and products adapted to individual customers'
requirements.
The management will also maintain the successful development of exclusive sound
systems for cars. Sales of these systems are seeing a highly positive
development and have reached a stage where management regards the segment as
part of the Group's core business.
2. Build a common, digital technology platform: Through more efficient
utilisation of existing technologies and the targetted development of one
general, future digital technology platform, Bang & Olufsen will not only
achieve faster, but also more efficient product development. In the course of
two to three years, this new digital technology platform will lay the
foundation for all newly developed Bang & Olufsen products. Until then, the
consolidation of the current technology platforms will ensure faster and more
efficient development of high quality products from 2009.
3. One general global sales organisation: Bang & Olufsen will continue to
expand its current shop concept. With immediate effect, the management will
initiate a process aimed at creating a more efficient global sales
organisation. Until now, the Group's seven regional sales organisations
worldwide have operated as independent units with their own back office and
service functions. To ensure a consistent approach and respect for the whole,
the management is centralising global responsibilities and, as a result,
implementing a range of efficiency measures.
The strategy plan comprises two further main components:
• The management intends to direct greater focus on the dealerships so that
dealers with the strongest growth potential will take centre stage. Other
dealers will also be given renewed attention when resources are available.
There will also be focus on establishing a uniform sales system with clear
guidelines, action plans and follow-up tools.
• The management intends to upgrade, and, more importantly, professionalise,
the sales system. These measures will include a further development of the
present sales staff into an international sales team of dynamic retail
consultants with expertise within sales promotion, based on experiences with
the best sales promoting initiatives within the global organisation. The
ambition is for all Bang & Olufsen shops around the world to offer their
customers a memorable experience of sound, picture, quality, professionalism
and service-mindedness.
4. More shops in growth markets: The management intends to open more B1-shops
in world markets with the strongest economic growth. Over the next two years,
the aim is to more than double the number of B1 shops in key growth markets
e.g. Russia and China. Other growth markets will also be subject to an
aggressive growth policy.
5. Cost adjustments: Bang & Olufsen is implementing a DKK 160 million cost
reduction programme for the current financial year compared to the activities
envisaged at the beginning of the year. The purpose is to adjust the cost level
to the Group's new and lower turnover level of recent months. Bang & Olufsen,
however, will remain a dynamic organisation and the Group will maintain its
high activity levels for product development despite the adjustments.
As part of the cost reductions, the Group has, as of today, abolished in the
region of 300 jobs. As a result, 165 employees have been made redundant while
the remaining positions will remain unfilled etc.
Other elements in the savings plan include reductions in the purchase of
external services.
6. New management team: To secure the successful implementation of the new
strategy plan, the Board of Directors and the Group's CEO have appointed a new
management team which, together with the CEO, will assume responsibility for
transforming the plan into action, rapidly, efficiently and accurately.
Bang & Olufsen's Management Board will consist solely of President & CEO Karl
Kristian Hvidt Nielsen who took up his position on August 1 this year.
The management layer below the Management Board will comprise:
• Senior Vice President, Finance & Accounting, Randi Toftlund,
• Senior Vice President, Operations, John Bennett-Therkildsen and
• Senior Vice President, Sales, Michael Aagaard Andersen.
The Management team will be also be supplemented by a further two positions:
• A high-capacity individual with expertise in international brand marketing and
• A highly-qualified expert who can meet the challenge of taking overall charge
of Bang & Olufsen's product development.
Based on his qualifications and experience, President and CEO Karl Kristian
Hvidt Nielsen will personally head up - and ensure the ongoing progress of -
product development until the right person has been appointed.
Seen in isolation, the strategy plan does not change Bang & Olufsen's
expectations for the current financial year. Traditionally, the Group's
turnover for November and December is substantially above average. This,
combined with the recent turbulence in financial markets has increased
uncertainties. As a result, the Group will not give an estimate for the full
2008/09 financial year until the publication of the interim report for the half
year on January 15, 2009.
Karl Kristian Hvidt Nielsen
President/CEO
Later today, Tuesday, Bang & Olufsen will present, and comment on, the
implemented strategy plan at a meeting for analysts and the media. The
presentation will be in English.
The meeting will take place at 14:00 in Bang & Olufsen's Nortern European sales
headquarters at Kalvebod Brygge 43, 3, DK-1560 København V.
For any further information, please contact:
Karl Kristian Hvidt Nielsen, President/CEO, at +45 9684 5004
https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=294370&messageId=347421
https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=201175
-0- Oct/21/2008 07:01 GMT
