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 much …show more content…
(366)" Bernberg's driving external change isn't the takeover. It's the realization that the technological environment is shifting business to a new medium. The company has been a mail-order business for music since the 1970s and had largely ignored the digital movement. After the chairman concedes that the technology isn't going away, he agrees to the …show more content…
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 order change is what makes change manageable and less likely for workers to resist. For Bernberg, there was no smooth transition to second order change. The CEO jumped right in to making changes. He did not consider the German work culture or the amount of change he was attempting to make in a short amount of time. The leaders did not take any steps to assess how ready Bernberg open to change was, nor did they communicate the change in a timely fashion. It was only after the changes began and resistance began to build, that the leaders made an attempt to communicate the changes they were making by distributing a newsletter. By the time the newsletter had been distributed, a major amount of trust had been lost. (choi and roi article
Leading Change was named the top management book of the year by Management General. There are three major sections in this book. The first section is ¡§the change of problem and its solution¡¨ ; which discusses why firms fail. The second one is ¡§the eight-stage process¡¨ that deals with methods of performing changes. Lastly, ¡§implications for the twenty-first century¡¨ is discussed as the conclusion. The eight stages of process are as followed: (1) Establishing a sense of urgency. (2) Creating the guiding coalition. (3) Developing a vision and a strategy. (4) Communicating the change of vision. (5) Empowering employees for broad-based action. (6) Generating short-term wins. (7) Consolidating gains and producing more changes. (8) Anchoring new approaches in the culture.
Ramsay, D. (2012). The Rise of EDM | Music Business Journal | Berklee College of Music. [online] Thembj.org. Available at: http://www.thembj.org/2012/10/the-rise-of-edm/ (Accessed: 20 May 2014).
Spotify’s Time. (n.d.). Music Business Journal Berklee College of Music RSS. Retrieved May 21, 2014, from http://www.thembj.org/2014/05/spotifys-time/
An “analyst” was quoted in the case (in 2002) as saying that “people will pay for music on the Internet, eventually.” This person was skeptical of the willingness of consumers to pay for
Harvard Business School 2005, The essentials of managing change and transition, Harvard Business School Press, Boston.
One of the change models of Organizational Development was created by Kurt Lewin. It includes three phases: unfreeze, move or change, and refreeze (Lewin, 1951, 1958). Lewin’s model recognizes the impormance of changing the people in organization and the role of top management involvement to overcome the resistance of change.
...ges with general statements that I recognize from my own experiences with leadership. It is very frustrating to be told about a new idea without any type of explanation for the change. I recognize that leading change is incredibly difficult and Kotter seems to understand the structure of organizational change. If leaders will follow his guidelines and recommendations for their organizations, they can improve business and become significantly better companies.
Drivers for change come in two categories, internal and external. In the simulation, "Organization Structure", the pretence was that the stagnating system integration market, lead the CEO to get the engineers trained in networking techniques. This training, once put to use resulted in a 20% increase in total revenue for the company. This is an example of an external force for change. The company was faltering behind the staggering systems integration market, so change was imperative if the company was to maintain its profitability.
Kotter, J. P. (2007). ‘Leading change: Why transformation efforts fail’. Harvard Business Review, January: 96-103.
Introduction: In the past, music has been a costly business, where only people with a lot of money could enter and be successful in the industry. Changes in the music industry, coupled with new computer technology, have made it much easier for people without a lot of money to compose, produce, and distribute their creations. In order to get a better understanding of the music industry in comparison to 2014, one has to look at its history. There were many things that happened from the 1980’s onward, and they brought on a significant impact towards the music industry.
Change should be seen as a challenge and embraced with enthusiasm (Marquis & Huston, 2012). In my professional and personal life, I view and respond to change as a way to make improvements to existing regulations and circumstances. I embark upon the quest with determination to succeed at whatever task is presented to me. Life without change can become unchallenging and stagnant (Marquis & Huston, 2012). As society and technology advance, you must incorporate the necessary transformations that arise with it.
Porter’s five forces assist to evaluate where the firm’s power lie in a given market and the attractiveness of the firm to other companies and businesses with respect to buyer power, supplier power, threat of new entrants, competitive rivalry, and threat of substitution. With respect to Audible.com, their market is selling audio content online. Supplier power for Audible.com is medium to high. The firm has an advantage with its partners who offer only specific products through Audible.com less expensively as compared to other companies or websites. However, some of the audio content is offered through many other websites and stores, which can be used instead of Audible.com. As a result, this pulls the firm’s power from the highest on the market to medium power. In spite of that, Audible.com is a supplier of large audio content. The firm is famous for being respected and reliable. This implies that the commitment of outside firms offers the firm with a significant a...
The change process within any organization can prove to be difficult and very stressful, not only for the employees but also for the management team. Hayes (2014), highlights seven core activities that must take place in order for change to be effective: recognizing the need for change, diagnosing the change and formulating a future state, planning the desired change, implementing the strategies, sustaining the implemented change, managing all those involved and learning from the change. Individually, these steps are comprised of key actions and decisions that must be properly addressed in order to move on to the next step. This paper is going to examine how change managers manage the implementation of change and strategies used
One of the first scholars to describe the process of organizational change was Lewin (1974). He described change as a three-stage process that consists of unfreezing, moving and freezing stage. During the unfreezing stage the organizations become motivated to change by some event or objective. The moving stage is like implementation when the organization actually makes the necessary change. Furthermore the freezing stage is reached when the change becomes permanent. Organizational change has also...
The music industry started in the mid 18th century with Wolfgang Amadeus Mozart. Through the decades there has been a great increase in this industry; however, the revenues for this industry have declined by half in the last 10 years. This has been caused by music piracy, which “is the copying and distributing of copies of a piece of music for which the composer, recording artist, or copyright-holding record company did not give consent” . After 1980’s, when the Internet was released to public, people started to develop programs and websites in which they could share music, videos, and information with...