Abstract

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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Family owned firms
• Leadership
• Owner manager conflicts.

Keywords

German media group, Bertelsmann, leading global media, conglomerate, leadership, Reinhard Mohn, company, Internet, 1990, 2002, CEO, Middelhoff, 2000,corporate culture, clashes, Middelhoff, founding family, strategic issues, CEO, future prospects, executive Committee