Rudi Gassner and BMG

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Written by:

Kenneth C


Date added:

June 19, 2015







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6 / 1431


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Each business had performance linked compensation as a source of motivation to meet their target. By 1992, Bertelsmann became the second largest media enterprise in the world. After creating Bertelsmann Music Group (BMG) in 1986, Michael Dornemann, CEO of BMG, divided the company in two divisions, creating BMG International led by Rudi Gassner...
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Unlike its parent company, BMG International was mostly set up as a "Coordinated Federation". Even though Rudi Gassner thinks that he adopted to run BMG International the same way as the parent company, he still adopted to keep a centralized control of its subsidiaries. Exhibit 2 of the case gives us an organizational chart of BMG International...
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