Product details

The case examines how the German media group, Bertelsmann, emerged as a leading global media conglomerate. The role played by the leadership of Reinhard Mohn and the company''s corporate culture in its growth has been studied. Bertelsmann''s Internet initiatives between the late 1990s and 2002, under the leadership of CEO Middelhoff, have also been examined. The various problems faced by the company during the early 2000s on account of the failure of its Internet initiatives, changes in the corporate culture, and clashes between Middelhoff and the founding family over strategic issues are described. The case discusses the changes that took place with the appointment of a new CEO in mid-2002. It also examines the results of these changes and the future prospects of the company in light of continuing clashes between the founding family and the executive committee. The case is developed to enable students to: (1) appreciate the evolution of a small company, over the decades, into a leading player in the global media industry; (2) understand the role played by the founding family in establishing a company''s core values, corporate culture and strategy for growth and success; (3) determine the need for changing a company''s business model and organisational structure to keep pace with changing business dynamics; (4) examine the rationale behind and the consequences of entering new business lines rapidly without much strategic analysis; and (5) understand the causes and consequences of clashes between the company''s management and owners of a privately held company. The case is aimed at MBA/PGDBA students and is intended to be part of the strategy and general management curriculum. The teaching note does not contain an analysis of the case.