Wednesday, April 7, 2010

Lowered CD Prices

Universal Music has been in high competition with iTunes and their amazingly low prices for CDs and songs. UMG has recently decided to lower their price of CDs in the attempt to increase sales. There is a good chance you can now get your favorite artists CDs at a price as low as $6!

Chapter 9 of Crisis Management discusses different levels of learning, behavioral learning and a deeper level of learning. Behavioral learning seeks to change the external controls of the organization so that crises are less likely to occur and are less serious if they do occur. This level of learning changes aspect of the company such as standard operating procedures, rules, regulations, and technological systems. The deeper level of learning challenges the values and assumptions of the organization. It involves changing the organizational culture and the cognitive arrangement of the company.

The case of UMG lowing CD prices would be considered Behavioral learning. They are attempting to prevent a crisis of low sales and loss of money by attempting to encourage more people to buy their CDs at their newly offered lower price!

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