Monday, August 19, 2019
Bertelsmann AG Financial Analysis Essay -- essays research papers fc
Bertelsmann AG Financial Analysis Report History Ã Ã Ã Ã Ã Bertelsmann AG was founded in July 1835 by Carl Bertelsmann as a print shop. Initially the company concentrated on Christian books and songs. In 1849 Carl BertelsmannÃ¢â¬â¢s son Heinrich took over the publishing business, which employed 14, and extended the inventory of the publishing house to novels. At the time of his death in 1887, the staff had grown to 60. Ã Ã Ã Ã Ã Next to head the company was Johannes Mohn, son-in-law of Heinrich. The companyÃ¢â¬â¢s growth slowed during this period and the focus was redirected to theological subjects. In 1910 he introduced paid vacation to the company. By 1921, when he turned control of the company over to his son Heinrich, the company had grown to 85 people. Ã Ã Ã Ã Ã Under the leadership of Heinrich Bertelsmann, the company experienced rapid growth and by 1939, the publishing house had grown to employ 400 people. New marketing channels were added as the readership became more mainstream in the late 1920Ã¢â¬â¢s. On the verge of World War II, the company moved from classical literature and fiction to include books with militaristic themes and eventually published books with nationalistic, racial and anti-Semitic content. The publisher insured its survival for most of the war by linking itself with the Nationalist Socialist ideology. Trouble started in 1944 when it was shut down by the German government as non-essential to the war effort and then crippled in March 1945 during an allied air raid on Gutersloh, in which only some of the printing machines survived. Ã Ã Ã Ã Ã After the war, the publisher was rebuilt by the fifth generation to lead Bertelsmann, Reinhart Hohn, whose influence continues to the present. He took the company from a medium-size printing company to a media conglomerate. In 1950 he established the ReaderÃ¢â¬â¢s Circle, which bypassed the traditional marketing channels and allowed books to go directly to the reader. Within a year, it had 100,000 members and by 1954 membership had reached 1,000,000. The LP label Ariola Records was founded in 1958 which signaled the companyÃ¢â¬â¢s entry into the music market. Bertelsmann entered the film industry with the purchase of Ufa Filmproduktionsgesellschaft in 1964. MohnÃ¢â¬â¢s transition of the company culminated in 1971 with incorporation. He remain... ...tor-Presse Stutgart. The Sales to Asset Ratio of the Gruner + Jahr group is very high, at 1.90 (corporate is .81) which could indicate that demand is very strong. Sales to Asset Ratio of Random House is close to the corporate ratio at 1.02. The parent company also has a strong cash position, so operations in this division will have solid financial backing. Whether these efforts will be successful cannot be determined at this time, but Bertelsmann has a rich history and culture upon which to build. Bibliography Apuzzo, Matt. Ã¢â¬Å"Lawsuit: Sony BMG Blacklisted AgentÃ¢â¬ . Associated Press. 1 April 2005. 5 April 2005. . Bernstein, Leopold A. Financial Statement Analysis. Homewood, Illinois: Ricard D. Irwin Inc., 1978. Bertelsmann Media Worldwide. 4 April 2005. . Bertelsmann Media Worldwide. 2004 Annual Report. Blelefeld. 4 March 2005. Bertelsmann Media Worldwide. 2003 Annual Report. Blelefeld. 15 March 2004. Bertelsmann Media Worldwide. Press Conference, Ã¢â¬Å"Corporate Development and StrategyÃ¢â¬ . Berlin. 17 March 2005. Surman, Matt. Ã¢â¬Å"Bertelsmann Profit Rises in 2004.Ã¢â¬ Business Week Online 17 March 2005. 4 April 2005 . Wikipedia, the Free Encyclopedia. Ã¢â¬Å"Bertelsmann AG.Ã¢â¬ 4 April 2005. .