Musicweb's Take Over of Bernberg Essay example

1993 Words 8 Pages
It's the late 90's and two corporate cultures clash when the forward thinking American Musicweb obtains the traditional and German direct-to-mail music retailer Bernberg. Musicweb workers are young, educated and at the cutting edge of technology. Bernberg employees are older, less-educated and using a 30-year-old business model. Emerging technology force Bernberg executives to take a long hard look at their-business-as-usual approach. Downloading music from the internet is taking off, and Bernberg is losing customers to online retailers. That's where Musicweb steps in. The American company was an early adopter to this new way of obtaining music and has had considerable success since they entered the scene about three years ago. After …show more content…
As a result, Berber workers face a reduction of force by 50 percent due to redundancies. Musicweb leaders lament at Bernberg's woefully inadequate skillset of those who remain. Introductions of a new culture and a move to new headquarters make the German employees heads spin and resistance to the merger rapidly builds. He quickly shuffles the German company leadership putting an American vice president at the top, putting another American in charge of technology development, hiring a European Human Resources manager and moving a German exec to head up marketing. The CEO's goal is to dominate the European's business-to-consumer online music retail.
His new organization is facing an external pressure of a "hyper-competitive environment" from the rapidly changing music retail market which had a cascading effect on the internal pressures at Bernberg. The German company had to get use to a new boss; they had lost their "identity" as direct-mailing services, and were now going to have to "collaborate" with Musicweb incumbents to redefine business practices. This catapulted Bernberg into transformational change. (TEXTBOOK) says organizations can face "second order change" which completely turns the organization in another direction and nothing stays the same. Textbooks says creating a happy medium between first order, a slow methodical approach to change and second

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