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  • November 1993 (Revised September 2018)
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Rudi Gassner and the Executive Committee of BMG International (A)

By: Linda Hill and Katherine Seger Weber
  • Format:Print
  • | Language:English
  • | Pages:21
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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

Citation

Hill, Linda, and Katherine Seger Weber. "Rudi Gassner and the Executive Committee of BMG International (A)." Harvard Business School Case 494-055, November 1993. (Revised September 2018.)
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About The Author

Linda A. Hill

Organizational Behavior
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Related Work

    • November 1993 (Revised September 2018)
    • Faculty Research

    Rudi Gassner and the Executive Committee of BMG International (A)

    By: Linda Hill and Katherine Seger Weber
Related Work
  • Rudi Gassner and the Executive Committee of BMG International (A) By: Linda Hill and Katherine Seger Weber
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