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Case
| HBS Case Collection
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1995
(Revised from original 1993 version)
Rudi Gassner and the Executive Committee of BMG International (A)
by
Linda A. Hill
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Abstract
Explores the roles of CEO Rudi Gassner and the 9-person executive committee in leading BMG International. BMG International is the international music subsidiary of Bertlesmann, a German company that is the second-largest media conglomerate in the world. Describes a 1993 decision that Gassner and the executive committee must make about whether or not to change managers' business plans and bonus targets as a result of a newly negotiate reduced manufacturing cost. Allows for discussion of a number of timely and important issues: 1) the complexities of managing and growing a large global business; 2) the tensions between centralized corporate control and decentralized local management in a global organization; 3) the impact of leadership style on corporate culture and performance; 4) the challenges of leading a senior mangement team; and 5) the final decision by CEO Rudi Gassner and the subsequent actions taken by the members of the executive committee.
Keywords: Managerial Roles;
Management Teams;
Decision Making;
Business Plan;
Growth and Development Strategy;
Global Strategy;
Leadership Style;
Organizational Culture;
Business Subsidiaries;
Business Conglomerates;
Cost Management;
Change Management;
Music Industry;
Media and Broadcasting Industry;
Germany;