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Case
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Reference no. 9-102-001
Published by: Harvard Business Publishing
Originally published in: 2018
Version: 29 October 2018
Revision date: 27-Nov-2018

Abstract

Requires students to draw a new organization structure diagram for a rapidly evolving business. A/S DIENA is a newspaper publisher founded during Latvia's 1990/91 struggle for independence from the USSR with a clear social mission to support democracy. With the help of Swedish investors, over the 1990s the entrepreneurial business survives the ups and downs of the transition economy to build a leading national newspaper. In 1997, seeking new sources of growth, A/S DIENA expands outside the Latvian capital to set up the Regional Press Group, a decentralized network of community newspapers emphasizing employee ownership and a separation of roles between editors and publishers. By 2001, however, the community newspaper market is shrinking, the Regional Press Group is not yet profitable, and a Western-style profit planning system is met with some resistance by former state employees. The decision point focuses on how to redesign the Regional Press Group and its interactions with the national newspaper and the other business units of A/S DIENA.
Size:
1,300 employees, USD24 million revenues
Other setting(s):
2001

About

Abstract

Requires students to draw a new organization structure diagram for a rapidly evolving business. A/S DIENA is a newspaper publisher founded during Latvia's 1990/91 struggle for independence from the USSR with a clear social mission to support democracy. With the help of Swedish investors, over the 1990s the entrepreneurial business survives the ups and downs of the transition economy to build a leading national newspaper. In 1997, seeking new sources of growth, A/S DIENA expands outside the Latvian capital to set up the Regional Press Group, a decentralized network of community newspapers emphasizing employee ownership and a separation of roles between editors and publishers. By 2001, however, the community newspaper market is shrinking, the Regional Press Group is not yet profitable, and a Western-style profit planning system is met with some resistance by former state employees. The decision point focuses on how to redesign the Regional Press Group and its interactions with the national newspaper and the other business units of A/S DIENA.

Settings

Size:
1,300 employees, USD24 million revenues
Other setting(s):
2001

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