Formative Management Essentials-Netflix Assignment Sample
Introduction
Management of a business entails a variety of investments with strategic planning and execution. Any organization needs to effectively manage their resources and implement them for furthering the aims and objectives of the company. Netflix is one of the largest entertainment and media companies providing online content to its users. The company has a gross value of $1.2 billion and 213 million subscribers worldwide in 2021 (Netflix.net, 2021). Their business model has been based on employee development and providing quality content to its users worldwide. The present study discusses the essentials of managing the company effectively and analyzes the key managerial practices along with the challenges faced by Netflix.
Task 1
Mission
Mission of Netflix is to emerge as one of the world’s best online content producers and media companies. The company aims to develop a sustainable and profitable business, maintaining transparency and providing quality content to its stakeholders and users alike. The company has a mission to develop their distribution service in the global entertainment business. Mission of Netflix also includes developing as a valuable partner for their suppliers, along with providing profitable and sustainable growth for their investors. The company also has a vision of developing a safe and creative working environment for its employees and encourages a productive and impactful organizational culture (Netflix.com, 2021).
Values
Netflix values development of an extraordinary work culture and aims to develop a creative working environment for its employees and encourage a productive and impactful organizational culture. The company values their employees and has developed a diverse and inclusive work space with a team of individuals from diverse backgrounds. Netflix works on developing social value through their media transformation (Lozic, 2021). The company has a strong ethics policy and values their employees by providing those opportunities for development and growing their passion and innovation with collaborative work spaces (Netflix.com, 2021).
Management Practice
The managers at Netflix follow a democratic managerial process and give primary importance to their employees, encouraging career growth within the organization. The core company values include developing an inclusive and positive atmosphere within the organization. Netflix encourages their team members to think creatively and share opinions and ideas along with engaging them through provision of rewards and appreciations (Netflix.com, 2021). They use high collaboration and innovation as their primary practices to manage the company. They also invite ideas and provide their employees freedom to expand their intellectual sphere and grow within the organization (Rahe, Buschow and Schlütz, 2021). Netflix uses a transparent and radical managerial style with supervision for the development of individual team members. They use collaborative tools and intra network software to communicate and collaborate with each other within the work spaces. In order to promote innovative thinking, the managers at Netflix also provide their employees the freedom of creative thinking and provide them with a safe and secure work environment. Management practices at Netflix are informal with quality oriented work and consistent work practices to accomplish their aims and objectives (Larcker and Tayan, 2018). Along with this, the company also observes development of a inclusive and diverse work space with a team of individuals from diverse backgrounds. The managers observe talent management operations to develop and maintain the quality of their content and manage the operations of the company. Developing a strong and inclusive organizational culture has helped Netflix to develop their organization and deliver quality content developing a sustainable business.
Task 2
Netflix also faces various challenges in the development of their business and produce continual quality content for their users. Along with this, the company also faces challenges from the industry as several competitors are picking up speed in the entertainment business with lower cost options for their subscribers. The company also faced piracy issues and safety concerns of their users in online data leaks. Netflix is also facing an internal challenge which is hindering the growth and innovation of the company in the market (Anindita, 2021). Managing the employees along with the managers of the organization is a challenge in maintaining the balance for effective realization of their organization aims and objectives.
Creativity
The company effectively uses their diverse team and develops a culture to produce creative work for the development of the organization. Netflix tests their algorithms rigorously with a process of continuous adaptation and evolution. Their creativity lies in development of a connected and user-friendly AI which suits the tastes of their vast range of users (Netflix.com, 2021). The company values their employees and has developed a diverse and inclusive work space with a team of individuals from diverse backgrounds. Netflix has developed a strong ethics policy and ensures compliance of these values by all the team members for development of individual members of the team (Ciejka, 2018). The company engages in effective talent management operations to develop and maintain the quality of their content and manage the operations of the company. Along with this, effective collaboration and communication between team members helps Netflix to maintain and engage the talents in necessary areas for the overall development of the organization (Smith and Telang, 2018).
Decision Making
The managers of the company realize the importance of making informed and effective decisions for furthering the aims and objectives of the organization. The managers need to conduct proper analysis of their company’s position and value to understand the direction of growth and make effective and fast decisions to implement necessary values within the organization for the development of the organization in the global market. It is also important for the company to expand their global business and develop a sustainable and well defined business model to help the employees to understand their roles and responsibilities (Heinz, Hunke and Breitschopf, 2021). Along with this, Netflix also needs to develop their business and their distribution service to cater to their growing network and demands of the customers. It is crucial for the managers of Netflix to implement advanced communication channels to make these informed decisions.
Human Relations Theory
In accordance with human relations theory, focusing on worker satisfaction has been prioritized (John-Eke and Akintokunbo, 2019). This theory views workers as integral parts of an organization, which has been given priority by Netflix. The company follows ideals from human relations theory to interact with their employees, providing a holistic work culture to improve their productivity and creativity for the benefit of the organization. Netflix also uses this theory to implement inclusive and informal work culture within their organization. A creative and innovative approach to management and engaging their employees with benefits and appreciation boosts their productivity, in accordance with human relations theory of management (Burroughs, 2019).
Conclusion
The present study has discussed the essentials of managing the company effectively and analyzed the key managerial practices along with the challenges faced by Netflix. Effective managerial practices and strategic implementation is extremely crucial for the development of a sustainable and profitable business. Netflix uses a democratic managerial practice along with encouragements towards creative thinking for their employees. Along with this, developing a wide range of content and adaptive AI, increases quality of decisions in managing business of Netflix. Using collaborative tools and intra-network software to communicate and collaborate with each other within the work spaces has helped Netflix to maintain the quality of their content.
References
Anindita, V., (2021). Disruptive Strategy in Disruption Era: Does Netflix Disrupt the Existing Market?. International Journal of Business and Technology Management, 3(1), pp.30-39.
Burroughs, B., (2019). House of Netflix: Streaming media and digital lore. Popular Communication, 17(1), pp.1-17.
Ciejka, D., (2018). Worth Watching?: Assessing the Financial and Operational Health of Netflix.
Heinz, D., Hunke, F. and Breitschopf, G.F., (2021). Organizing for Digital Innovation and Transformation: Bridging Between Organizational Resilience and Innovation Management. In Proceedings of the 16th International Conference on Wirtschaftsinformatik (WI).
JOHN-EKE, E.C. and AKINTOKUNBO, O.O., (2019). The Alignment of Employee Engagement with Human Relations School of Thought.
Larcker, D.F. and Tayan, B., (2018). Netflix Approach to Governance: Genuine Transparency with the Board. Rock Center for Corporate Governance at Stanford University Closer Look Series: Topics, Issues and Controversies in Corporate Governance No. CGRP-71, Stanford University Graduate School of Business Research Paper, (18-24).
Lozic, J., (2021). MEDIA INDUSTRY TRANSFORMATION: COMPARISON MANAGEMENT IN COMCAST AND NETFLIX. In Economic and Social Development (Book of Proceedings), 69th International Scientific Conference on Economic and Social (p. 107).
Netflix.com, (2021) [online] Available at: https://about.netflix.com/ [Accessed on: 24.10.21]
Netflix.net, (2021) [online] Available at:https://ir.netflix.net/ir-overview/profile/default.aspx [Accessed on: 25.10.21]
Rahe, V., Buschow, C. and Schlütz, D., (2021). How users approach novel media products: Brand perception of Netflix and Amazon Prime video as signposts within the German subscription-based video-on-demand market. Journal of Media Business Studies, 18(1), pp.45-58.
Smith, M.D. and Telang, R., (2018). Data can enhance creative projects—Just look at Netflix. Harvard Business Review, 23.
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