IRE260H1 Study Guide - Final Guide: Haier, Bertelsmann, Strategic Business Unit

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Rudi gassner and the executive committee of bmg international (a) Arnold bahllmann (regional director and executive committee member), negotiated a reduced manufacturing transfer price for the upcoming years production of cds- savings of million. They had to decide whether or not to change business targets. Whether managing directors bonuses should be based on old or new figures. Gassners opinion- in six years the company had achieved a lot of success, however gassner thought that they had to carefully monitor the economics of the business and maintain their agility. Needed to adjust the targets and also the bonus bias. He didn"t want them to become complacent the whole year. The rds did not align with this opinion and gassner thought that this was because they did not want to face their mds and he wanted them to think for the company and not themselves. Bmg international- subsidiary of bertelsmann ag, german media conglomerate with over.

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