ARCHIVED FORUM -- March 2012 to February 2022READ ONLY FORUM
This is the second Archived Forum which was active between 1st March 2012 and 23rd February 2022
This article in the current issue of Berlingske Business contains comments from the union shop steward about the internal mood of employees in Struer.
The stock market has also punished the stock with a 10% decline this week.
"He came with towering ambitions and promises of a new golden age. He brought visionary, pioneering spirit and a shot youthful energy to the national icon Bang & Olufsen. It is now just over two years ago that the then 36-year-old Tue Mantoni was CEO and told him that B & O had the potential to triple sales in five years.
Today, the enthusiasm of the CEO on the decline. The harsh economic realities in European markets and disappointing sales figures put shake off the old radio and TV factory in Struer. An operating loss of 150-200 million. crowns are on the way, and the situation is so critical that CEO Tue Mantoni during an internal public meeting in Struer a few days ago announced new layoffs and a final goodbye to TV production on Danish soil. Another litter production workers facing a pink slip.
CEO failed to submit a stock exchange announcement out about outsourcing of jobs. But the story was intercepted by the local press. Yesterday, Mantoni generate sound and confirmed the information from the internal meeting, which took place almost simultaneously with the B & O's financial statements for 2012-2013 was closed 31 May It is already the second time in 2013 that Mantoni heralds layoffs. In addition, the employees on the floor to the CEO's vision for the future appears more and more like a pipe dream when one compares them with the concrete reality. This causes frustration to grow among the otherwise loyal B & O employees.
"I am incredibly proud of the company and would hate to be alarmist. But I must say that we have recently been disappointed. We had expected, there were more teams in the strategic plans Tue Mantoni presented to us, "said Karsten Grønholdt Hansen, senior shop steward at Bang & Olufsen.
The mood in Struer was exceptionally good, as Mantoni came and convinced employees about the enormous potential he saw in the company. But today the mood is turning.
"If I go out and ask employees for their opinion, there is not exactly pat on Tue and the strategy he pursues. Especially not in the TV department, "said Karsten Grønholdt Hansen.
'It is difficult to maintain faith in the future, because his statements were so massive that time. It created an expectation of revenue of eight to ten billion dollars. There was a huge confidence in him as he stood up and talked about his visions. But as it has in the recent past, it is hard to see for ourselves whether the project will succeed Tue, "says commons trust the man.
For the first time he speaks publicly about a future without Tue Mantoni as CEO of B & O.
"We still have confidence in the management. But if the situation does not return within one or two years, so I do not believe anymore that we have the leadership that we have today, "said Karsten Grønholdt Hansen, who still hope that especially sales to China and Bang & Olufsen sound systems for cars can grow as promised and send new revenue crowns for B & O.
A historic relocation
But B & O has long earned too little to sell the TV and audio equipment for the Europeans. Already in 2006, the B & O to move production of just TV and audio equipment from Struer to own factory in the Czech Republic to reduce costs. Part of the production of new TV should be preserved in Denmark, promised management.
"Management has now changed its position and will no longer produce TV in Denmark. It is a historic decision, "said Karsten Grønholdt Hansen.
About 40 years ago, 3,500 employees at the factories in Struer, Lemvig and washer at B & O. Today there are approximately 1,100 man back, and factories in Lemvig and washer are closed. Thus lost B & O some of his brand value.
"Before the customer bought a product that was produced in Denmark with Danish labor and Danish quality. The part of our story sounds a little hollow today. For such, it's not anymore, "said Karsten Grønholdt Hansen.
Copenhagenry
Employees in Struer is even frustrated that B & O's chief executive has moved key departments for Lyngby in the metropolitan area.
"It is extremely critical that you moved Sales and Marketing for Copenhagen with the expectation of getting a more international dimension of the sales and marketing side. It has not been seen. I have not at all understood the idea of it, except that it provides an additional expense, "said Karsten Grønholdt Hansen.
Employees have as recently as March accepted that no one gets salary increases this year. It is only the third time since 1987 that this has happened.
"We were told that the situation was so difficult that could not be granted salary increases. Neither the Board or elsewhere in the organization, and we accepted, "said Karsten Grønholdt Hansen.
Tue Mantoni stepped in the middle of the financial year 2010-2011, the company achieved a turnover of 2,867 million. dollars and an operating profit of 60 million. crowns. After a downgrade expect B & O for the recently completed fiscal year revenue in the range from 2.800 to 2.900 million. dollars and an operating result of minus 150 to 200 million. crowns."
Management is what's wrong with the company.
Too long to list....
earlier not long ago people worked with passion , companies worked for their customers and products. Today, every company is LIVING for their f u c k stock market papers, to satisfy investors. Its like cancer. Its everywhere. Its must be quick , cheap , and push the stock market papers thats all about. How all the new CEO are teached in this brainwashing business *** schools.
A guy who probably just got fired trash talks his former employer. News at 11. Very unprofessional and whiny.
Lets forget about europeans(minority) and make much more money on chinese market. Way to go! Tue is not alone in that idea. They really dont care about costumers anymore. We are now simply byers.
Biggest mistake for me is placing bunch of new products on market. Stop it. I want my gear to be there in ten years and more. Like before. That makes them desirable and capable to produce icons.
PapaJustify:A guy who probably just got fired trash talks his former employer. News at 11. Very unprofessional and whiny.
bayerische:Management is what's wrong with the company.
Chasing "stupid money" leads to stupid decisions, and B&O now has a more than a decade long trajectory of doing just that.
There is empty luxury just for show, bought by people who don't care about the brand, just about what others think of it.
And then there are aspirational premium products made by demanding and discerning brand adherents, selling to enthusiasts who know the brand to its core, and who subsequently engender the kind of energy that draws others to the brand.
B&O used to be able to do the latter, and has devolved to the former, revealing no sign that management in Struer respects or knows the inherent brand values that made B&O great. Instead, we get a relentless line-up of missed opportunities, and the growing realization that they have no respect for their customers, who are seen as walking wallets to be picked, rather than potential enthusiasts.
The MBA-culture has a lot to answer for when it comes to the brand destruction B&O has suffered.
soundproof: The MBA-culture has a lot to answer for when it comes to the brand destruction B&O has suffered.
Maybe they should have watched the recent Apple WWDC - where Tim Cook and his crew pushed the message - they do it for the experience and they aim for the top in design and quality . The monetary success comes from that. If all you do is chase the bottom line that's where you end up - at the bottom.
Unfortunately BnO are now run by bean counters , not designers - the way things are gong they'll end up like Dell or worse . David Lewis's passing could ultimately destroy the company imo unless they come up with another world class designer with vision and from looking at the stuff they've been trawling out recently I don't hold out much hope for them. Sad , very sad.
StUrrock: The frustration from the Struer workforce is nothing in comparison to the dealer frustration in the network. Many feel totally alienated by the way the company is being run.
The frustration from the Struer workforce is nothing in comparison to the dealer frustration in the network. Many feel totally alienated by the way the company is being run.
+1
Some ppl doesn't like to compare apple and b&o but they both had their gurus(jobs/lewis). Now they are dead and apple had a lot harder homework to do with samsung and all other potatoe reselers. And striked again, with "made in usa". Way to go.
B&O have a lot easier job to do. Just don't destroy everything ffs.
Flappo:Maybe they should have watched the recent Apple WWDC - where Tim Cook and his crew pushed the message - they do it for the experience and they aim for the top in design and quality . The monetary success comes from that. If all you do is chase the bottom line that's where you end up - at the bottom. Unfortunately BnO are now run by bean counters , not designers - the way things are gong they'll end up like Dell or worse . David Lewis's passing could ultimately destroy the company imo unless they come up with another world class designer with vision and from looking at the stuff they've been trawling out recently I don't hold out much hope for them. Sad , very sad.
expoman: "Before the customer bought a product that was produced in Denmark with Danish labor and Danish quality. The part of our story sounds a little hollow today. For such, it's not anymore, "said Karsten Grønholdt Hansen.
Well, at least someone there got it.
I'm pretty sure Apple are massively influenced by bno - look at the logos in iOS7 , very reminiscent of the logos used on the beocentres from the JJ days. Simple and stylish.
Bno need to look at their past and the richness that's there rather than jumping into the future blindfold.
Why not bring out an integrated beocentre type thing ? Bluray , Digital Radio all with the sexy stylish looks that made bno famous ? a Beocentre 9000 for the 21st century !?
Or they could just bring out a round thing on wooden legs
I can understand your frustration, Sturrock.
TBS greatly expanded the number of B1 stores, but had no clue what to do with that network, instead going for "sales increases relative to the number of new stores." A witless 1:1 strategy that failed to exploit the potential for Store Drama with a global footprint. The stores should have been experience centers, with the marketing money going into making that possible.
But the greatest sin is the meandering product strategy (strategies? - there appear to be many).
B&O, unfortunately, is turning into a business case of what to definitely not do with a premium brand.
I'm pretty sure if JJ was in charge of the design team , things would be a whole lot different.
They were limited by the technical limitations of their time ( not that you'd have known it as the old stuff still looks like it's from the 25th century ! ), now they've got free rein to do anything absolutely anything they can dream up and they just seem to artificially limit their designs with boring half baked rubbish. It's utterly bewildering.
The brand can't possibly be turned around in 12 months, not unless they have miracles coming down the pipeline already, and given their record over the past few years, what are the chances of that happening?
What they should have obeyed, and what every new MBA-member of management should have had stapled to their foreheads, is The Seven CIC - which should have been followed religiously and long-term. If BMW and Porsche can work like that, why couldn't B&O?
That poster is worth studying:
http://archivedarchivedforum2.beoworld.org/cfs-filesystemfile.ashx/__key/CommunityServer.Components.PostAttachments/00.00.34.36.38/Skjermbilde-2011_2D00_10_2D00_27-kl.-10.26.56.jpg
In my experience charismatic leaders come and go. Some succeed. Those that don't succeed usually are forgiven and given a good pay-off ...... it's because they are charismatic confident and persuasive and can get away with anything.
I am (was) in the professional engineering business, and over the past 20 years or so I've seen organisations changed from engineering led businesses to finance and services businesses, with the engineering cheap and secondary to everything. It's a disaster in all construction and manufacturing fields.
The current generation of business leaders think that you can use project management and financial controls to produce profit earning goods, whereas the truth is, for long term success, you must have quality design and engineering for which customers will be happy to pay. The good design comes first, then possible high prices (with demand exceeding supply) and happy customers will follow. If the engineering quality is there people will forget paying a high price. If the quality is not there the brand is never forgiven for producing expensive products.
B&O have kept charging high prices for run-of-the-mill design and engineering quality. B&O needs to be a design-led innovator again.
Graham
WOOF WOOF!!!!
I say B&O needs to stick to their guns. DESIGN. WOOF!!
I don't think you can compare B&O and Apple:
- Apple is INDUSTRY- Apple is more than one thousand times [1.248 (or 1,248 for the us guys) times] bigger than B&O (market cap).- Apple has been producing at low costs in China for years (see studies on actual costs of an iphone).
AND
- Apple understands Software due to their history way better.- Has been a Company that led the way concerning digital distriubtion (i-tunes, apple tv).- Is BIG in Marketing (even free Marketing due to thousands of user, latest gossips, People stand in line to get their products, This is even in the News over here)
B&O - for me - is a (sorry!) a MANUFACTURER (= in a sense of craftmanship).They established industrial processes to survive, but on a much smaller scale.
I like B&O for the make of their AUDIO Systems and SPEAKERS, for TVs, nothing special for me (they are all flat now).BUT how to justify a Beosound 5 that is very well built if an ipad/android/etc. ppp does it much better remote job?I miss the new Icons (like Ouverture, BS9000, etc. - they had their Status at their times).
BUT it is tough times - Music is digital - so why bother about the built Quality of your Systems?You won't be touching them anymore, hide them (?!) and use an app to control.
For example: we are using Sonos throughout the house, with Beolab Speakers.We are in the process of replacing the BS9000 with Beomaster 6500/7000 (in White to fit in designwise) just to drive the Speakers and get fm Radio via the Radio button on the Beo 4 (my wife insists that this is still needed....)
It is really tough for B&O to find their NICHE!
Ralf
PS: My new phone is not apple anymore, by the way.... (neither a B&O one ;-))). Other have caught up (and I really don't like i-tunes).
Living Room: Beosystem 4, Beolab 7-2 (Center), Beolab 9 (Fronts), Beolab 8000 (Rears), no Subwoofer. Screen: Sony KD-85XH9096Dining Room: Beosound Essence MK II with Beolab 4000 on stands, fed by Amazon Echo Show 8Home Cinema: Beosystem 4, Beolab 7-4 (Center), Beolab 1 (Fronts), Beolab 4000 (Rears). Projector: Sony VPL-HW55Home Office: Beosystem 3, Beolab 7-4, Beolab 5000, Screen: Sony KD-55XH9005 on Beovision 7-40 stand, ML to Beosound 9000 MK3 and Beosound 5/Beomaster 5 (1 TB SSD version)Bedroom: Sony KD-65XH9077, Beosound Essence MK II with Beolab 6002 and Beolab 11 (all white, wall-mounted)
In storage: Beolab 5000/Beomaster 5000 (1960s).
It's so sad to see a company with such an incredible heritage piddle it all up the wall on the desperation of appeasing shareholders.
B & O needs a much better Ceo that doesn't act to enjoy his ego!
So, people in Struer: Sent me a PM for my adress, I'm gonna do the job! B&O is stuck in a crisis andthey need a turnaround NOW!
Since it is now a hard drive digital world how can B&O make an ICON?
They made the best Beogram, Beocord, Beosystem, Beosound etc. they could but now anything but an Iphone is to much space?
You don't need the big and bulky stereo production anymore.
It is a bygone area. Unless B&O cracks that problem what can be expected?
Beosound Stage, Beovision 8-40, Beolit 20, Beosound Explore.
kallasr: I don't think you can compare B&O and Apple: - Apple is INDUSTRY- Apple is more than one thousand times [1.248 (or 1,248 for the us guys) times] bigger than B&O (market cap).- Apple has been producing at low costs in China for years (see studies on actual costs of an iphone). AND - Apple understands Software due to their history way better.- Has been a Company that led the way concerning digital distriubtion (i-tunes, apple tv).- Is BIG in Marketing (even free Marketing due to thousands of user, latest gossips, People stand in line to get their products, This is even in the News over here) B&O - for me - is a (sorry!) a MANUFACTURER (= in a sense of craftmanship).They established industrial processes to survive, but on a much smaller scale. I like B&O for the make of their AUDIO Systems and SPEAKERS, for TVs, nothing special for me (they are all flat now).BUT how to justify a Beosound 5 that is very well built if an ipad/android/etc. ppp does it much better remote job?I miss the new Icons (like Ouverture, BS9000, etc. - they had their Status at their times). BUT it is tough times - Music is digital - so why bother about the built Quality of your Systems?You won't be touching them anymore, hide them (?!) and use an app to control. For example: we are using Sonos throughout the house, with Beolab Speakers.We are in the process of replacing the BS9000 with Beomaster 6500/7000 (in White to fit in designwise) just to drive the Speakers and get fm Radio via the Radio button on the Beo 4 (my wife insists that this is still needed....) It is really tough for B&O to find their NICHE!
I agree.
However given the present financial climate worldwide and the changes in the digital world B&O is in a tough position.And honestly I don't think other CEO's would have done much better, If not already ran the company into the ground the way they were going.
The world is changing and B&O needs to change a lot more in order to survive. As hard as it is for certain people to understand, they have to consolidate production and rebuild an all new dealer network. Kind of what they are doing right now.
They should drop TV's all together or limit them to 1 high end and 1 low end model, as the market is just too small for Luxury brand TV's to be produced. All tv's should be monitors only with a seperate beosystem box and updated at least once a year if not twice. This way it's financial more affordable to upgrade one pc at a time and will encourage people to do so. Honestly I think the tv business is eating up lots of research and development time and money and proven to be not financially viable, mostly because of the low quantities being sold.
There are now more than enough speakers in the program and the car stereo side should be doing ok.
I still would like a final beosystem unit (with a real good design) that works like a quality HT receiver so to connect all the speakers and your blu-ray, sat box, apple tv etc. Personally I find that having the connectability in the TV and it's consequent price tag is alienating a lot of possible clients, especially The V1 is a start, however in North America I do hardly see any tv's under 50" anymore. If they offer a 50" and keep the current price I'll buy 2!
B&O used to be more open to 'start small and grow to a full system by adding to your system as you go' Now you basically need a B&O tv or an overpriced beosystem3 box to get a working setup. Chopping up the investment cost would help attract more clients imo.
There are enough speakers in the program,but the beolab 6 and 8000 are more then 20 years old.
it's time for a new successor!
Flappo: I'm pretty sure Apple are massively influenced by bno - look at the logos in iOS7 , very reminiscent of the logos used on the beocentres from the JJ days. Simple and stylish. Bno need to look at their past and the richness that's there rather than jumping into the future blindfold. Why not bring out an integrated beocentre type thing ? Bluray , Digital Radio all with the sexy stylish looks that made bno famous ? a Beocentre 9000 for the 21st century !? Or they could just bring out a round thing on wooden legs
Well said
Instead of the BeoSound 5 they should have made something like the Loewe Media Center (for those who don't know -try to Google it)...A 'Center' with Blu-Ray, Digital radio, WiFi etc. etc. (in Classic B&O design ) For those who still like to put on a CD now and then -and maybe want to easily rip their CD's to a build in (or attatched HDD) - and to Watch a Blu-ray on their Beovision. To be easily connected with any smartphone/tablet.
After all -it's not everybody who just want to use their Pc's/Mac's/tablets/phones to play music at home. Some would still like to have an iconic BeoSystem/Center in the livingroom. Many of those (like me), just keep our old BeoSystems and play music from our computers and/or tablets/phones via third-party devices.
If B&O had made a really cool new BeoSound like that, I would have bought it.
BTW...Did Tue really think he could double or even triple the sales in a few years -only by introducing a sub-brand, made in China - and killing off most of the old products -and only releasing a few new *real* Bang & Olufsen products???
Anders Knutsson made a 'turn around' in the 90's. Tue has only made a 'turn off'...
As someone who has met Tue in real life, he strikes me as a man not fit for his task. Pompus.
Having done the same - I would agree.
My favorite B&O brochure was the -95 or -96 one... I still have it, taped together, from use.
It portrayed/portrays still to me a humble Bang & Olufsen. A cosy and family "mom and pop" like atmosphere from a small company in Denmark. I loved the way the products were almost invisible in "normal" homes. Some homes in the Brochure were even far from normal, like the arctic weather? station. The home on Greenland...
Today a Rolex brochure is more inviting, although it's something small that you only have on your wrist.
This is a side note though, and I'm sure even though the brochures in the golden days portrayed a wonderful and peaceful image to me, and made me want to buy everything in it, the company as every other company has had it's fair share of drama within it's walls.
This 12months to go before running out of cash, is it true?
Have that brochure also with the fat guy on arctic listening Beosystem 2500 :) Theres also japanese room with bl6000 and children playing :)
Damn i miss those times...