Category Archives: MGT460

leadership priorities & practice

Challenges in Netflix Organization- MGT 460 Paper

Question

This paper will be an application of the leadership practice concepts learned throughout your degree program to a real-world situation. In an eight- to ten-page paper, discuss one significant organizational challenge within your organization or an organization you have researched. How did the leadership of the organization address the challenge? Could it have been done more effectively? How would you recommend future leaders strategically plan to avoid encountering a similar challenge within their own organizations? Provide suggestions for overcoming the challenge based on your own research and concepts presented in your degree program and grounded in leadership theory. Some challenges to consider would be (but are not limited to): an ethical challenge, a challenge occurring because of changes in the economy, a globalization challenge, or a challenge of organizational culture. Please request instructor approval of the challenge you would like to use as your focus before beginning your paper.

The Final Paper should, at minimum, include:

A description of the organization and its primary stakeholders. Include the vision and mission statement if they are available to the public, and the code of ethics if the company has one (if it is long, an excerpt or description is an acceptable alternative).

A detailed analysis of one challenge facing the leadership of the organization.

A strategy for overcoming the challenge based on outside research, the textbook, and concepts discussed during your degree studies.

 MGT 460 Leadership Priorities & Practice Sample paper

Challenges in Netflix Organization

Netflix is an online movie subscription-based rental service that was established by Reed Hastings in1997. Netflix refers to an internet portal in which, subscribers can hire movies in DVD form and have the DVD’s directly delivered to their homes. Netflix was initially founded in the United States of America and it delivered DVDs to its subscribers through U.S. Postal service. This was a strategy to replace the DVD brick and mortar rental business, by expanding the business to home delivery market. By so doing, Reed and his group made in home entertainment accessible and easy to the masses. The company started as DVD delivery services during the time when the VHS the most famous entertainment distribution channel.

A radical change took place in the Netflix trajectory when it transitioned in 2007 to online streaming. Netflix has since managed to position itself as a dominant actor in the industry of online entertainment, with a worldwide subscriber base of about 190 million individuals and still growing. However, this is not without experiencing challenges (Sadq, 2015). Netflix is currently experiencing a number of challenges that are founded on growing competition in the market, unpredictable customer behaviors and change of technology among other things. The company needs to make important changes to be able to handle these challenges, as a way of protecting its competitive position in the market.

According to London & Mone (2012) changes entail radically modification or alteration of some organization aspects from its systems to its highly important direction. Change requires a process which is a way of planning, sustaining and implementing change by the organization leaders. This paper focuses on identifying challenges that Netflix is or has been facing, and how these challenges are being addressed or can be handled, for the organization to maximize its potential in the market.

Netflix initially managed to overcome competition by defining a way to sidestep the outdated brick and mortar retail stores, by delivering their products direct to their customers. Netflix later realized that it could reduce its operational cost by offering its product through the internet, and offering its customers a chance to change. Netflix main reason for success has been the courage to try new technology, to embrace change and unique operation strategies. With the expansion of internet use in the world, Netflix took advantage of the situation by offering its products online at a small subscription fees and with different subscription packages to fit different types of viewers.

Read Also: Leading Organizational Change

With this strategy, the company has grown from national level where it used to send DVDs to US address only to an international company that serves customers across the globe. The company is currently has over 30 million subscribers in around 43 different countries in the world, with a wide variety of movies and films titles and TV shows (Netflix Company, 2019). The new change resulted to the need of altering the company model to fit the new kind of business. This resulted to transformational change in the organization mission, value and vision, as illustrated by London & Mone (2012) who claims that, fundamental changes in an organization will require drastic changes on the organization vision, mission, structure, culture, and/or leadership.

To be able to understand Netflix leadership direction and the organizational future, it is highly important to understand the organization mission and vision. According to Netflix (2019) Netflix current core strategy is to grow its streaming business subscription globally and domestically, by expanding its streaming content, and promoting interface of its user and extending its streaming service to be accommodated by more internet linked devices, without reducing its level of profitability.

 

The company strategy changed from increasing the number of home services at local level to increasing the number of subscribers at local and international levels. According to the company’s CEO and cofounder Reed Hasting, Netflix vision is becoming the global best entertainment service distributor, licensing content of entertainment around the globe, generating markets which are reachable to film makers, and assisting content makers around the globe to establish global audience (Netflix Company, 2019). The company thus focuses on reaching many viewers and many film makers to create diversity in the market. The company vision demonstrates the company future plan of exploring far and wide for viewers and filmmakers, by working as their main meeting point.

The adapted organizational culture plays a great role in guiding the organization to achieve the anticipated change. Organizational change requires the participation and engagement of all stakeholders, especially workers who play the main role in implementing change. According to London and Mone (2012) organization culture plays a great role in determining the workers behaviors and involvement in organization operations. In a situation where the culture does not support workers performance feedback, engagement, ethical behavior, development and innovation, then it need to be changed.

In addition, organization cultural change needs leaders to guarantee that their essential beliefs are suitable, their behavior and values are consistent with the beliefs and the suitable process are applied to sustain and drive the desired culture. The Netflix company value shows the standards with which it requires its workers to function in their daily activities and decisions. Some of the company’s core values include honesty, passion, selflessness, creativity, intelligence, reliability, productivity, and communication (Netflix Company, 2019).

Read Also: Goal-Setting Framework (MGT 460) 

The company values demonstrate the workers dedication in serving customers with high level of ethics. It also demonstrates the company’s commitment to doing what is right at all time, with intention of pleasing its customers and avoiding any negative publicity that would soil its name in the market. The company also has its culture that guides how it interacts with people of different calibers. Based on this section, the company value people more than processes, which means the company can make changes on its processes to accommodate its stakeholders or to make them more comfortable. This cultural statement demonstrates the company’s readiness to change and commitment to change, to meet the needs of its customers among other stakeholders.

Netflix is experiencing a number of challenges in their business operations that require changes to minimize or eliminate their effects. One of these challenges is poor strategies in most aspects of its operation. According to Sadq (2015), Netflix initially ignored it actual situation when adopting the online business, by selecting business model that was similar to other popular internet brands such as Amazon and eBay. Due to competitive advantages with different retailers, the company failed to realize its mistake until it established that the subscribers wound not consider coming back due to bad first experience.

The company other main challenge is that, customers normally liked popular new released movies that were considerably expensive, therefore increasing the Netflix cost. Consequently, the scribers were required to pay extra cost to get new movies due to ’all you can eat’ strategy  though majority did not welcome the extra cost positively.

Netflix was thus always shipping the packages of new movies with a number of old movies, though most of subscribers did not like it. In addition, the number of new films was not enough to meet the desire of Netflix customers. At this point, there was no direct association between Netflix and major studios. The company only established its library via associations with a few movie distributors.

This also lowered their sales as many customers were dissatisfied by what the company was offering. The company also experience video on demand (VOD), which impacts the Netflix performance seriously. VOD can instantly offer customers a chance to watch latest movies. Thus, they regard VOD to be more convenient compared to traditional video store and rental DVD (Sadq, 2015).

Netflix is also experiencing growing competition in the market. As a result the company is experiencing loss of customers due to increase of price of some of its products, especially new popular movies that they can get elsewhere at a cheaper price. The company experience local competition from Hulu which is growing at a very high rate in the US market and which is demanding considerably low subscription per month, to offer quality and relevant content. The company is also experiencing high competition for Amazon and Disney+ among others (Bradley, 2019).

Although these companies have not managed to dominate the market or to pull Netflix down in a noticeable way, they have managed to win a great share of its customers in the market, making competition a great threat to the company. Moreover, companies such as Disney have a better ground to source their films and TV series than Netflix, and thus, standing as a potential competitor, with ability to push Netflix off balance. The new upcoming competitors are also forcing Netflix to reduce its prices to be able to continue wining more customers and hence, reducing its profitability. The company is also experiencing a decline in the new subscription growth, especially due to this high competition (Bradley, 2019).

To address some of the above challenges the company leaders focused on modifying its business model to what it has today. Other than renting DVDs online to its customers as it used to do in the past, the company has today offered an option of streaming any movie or film a subscriber may want to watch’ without having to wait for DVD delivery. This has made it possible for the company to offer its services to people far and wide in the globe at the comfort of their home.

The company can currently deliver its films without hitches of poor customer services that could be experience in cases of delay in the delivery of DVD, as experienced previously, or delivery of a DVD with unwanted series or movies as experienced before (Sadq, 2015). With the current business model, the organization managed to give its customers a chance to choose what they want to get the exact same thing without wastage of time.

All that customers need is the ability to afford the desired package, a digital device and reliable source of network. The company has also tried to handle the cost issues by diversifying its packages. Today, customers can subscribe to different packages based on what they can afford or what interest them most. This has in a way eliminated a number of issues, which include receiving what one does not want, or cost related complains. This has also played a great role in retaining old customers. However, high competition especially in terms of the content and prices is still making it hard for the company to keep all its old customers (Sadq, 2015).

Netflix managed to solve a number of problems by going digital and offering streaming movies over renting DVD. However, since it realized this, there have been a number of competitors arising to challenge its market share. To handle this, Netflix should focus on improving its customers or subscriber experience, to ensure that they cannot get a match in the market.

Netflix can do this by ensuring that it is always the first entertainment company to release the best and most appealing movies or films in the market (Maune, 2014). This can be managed by sourcing far and wide, and by making partnership with many more producers and filmmakers in the globe, especially those producing the best products in the market. The company should also centers on negotiating on the content cost, which is considerably expensive at the moment. Netflix leaders should invest in negotiating for better content pricing to be able to offer their customers better deals.

This can be done by expanding the company’s services to more countries where it would manage to get more subscribers, such that, the company can manage to attract more viewers. This will give the company a chance to reduce its cost without affecting its profitability. This is likely to give the company a higher advantage in the market, and reduce chances of being overtaken in the market.

Netflix should also consider investing on defining strategies to retain customers. Although the company has been able to attract customers, it has always found it hard to keep them. Some of the strategies that Netflix may consider to use to encourage renewal of subscription include reduction of renewal subscription fees, or provision of an extra package for those who opt to renew their subscription for free. This will give existing customers a reason to stay and to continue using the company services over its competitors. This move is also likely to demonstrate extra value to existing customers and create chances of winning customers’ loyalty.

Conclusion

In conclusion, Netflix has played a great role in transforming the way people rent movies in the global market. The company has managed to take advantage of technology advancement, to give new experience in the entertainment world. The company main strength is that it is always ready to create a difference in its ways of doing business, to give new experience to its customers. Although this is never without challenges, Netflix has always focused on defining new operational strategies that would assist in eliminating or reducing the magnitude of these challenges.

Netflix never shy away from challenges, and consequently, it has made innovation of new business operational strategies its main strength. Its current approach gives the company a guarantee of continuous growth for a number of years, and with its flexibility in adapting new technology, Netflix stands a great chance of leading in the entertainment industry for a few more decades.

References

Bradley, L. (2019, Jan 18). Netflix’s biggest competition? Basically everything besides TV, says. Hollywood. Retrieved from https://www.vanityfair.com/hollywood/2019/01/netflix-competition-disney-hulu-fortnite

London, M., & Mone E. (2012). Leasdership for today and the future. (1st. ed.). San Diego, CA: Bridgepoint Education, Inc.  Retrieved from https://content.ashford.edu/books/AUMGT460.12.1/sections/sec5.4?search=framework#w62391d

Maune, A. (2014). Competitive intelligence as an enabler for firm competitiveness: An overview. Journal of Governance and Regulation, 3(2), 29-42.

Netflix Company. (2019). Netflix basic info. Retrieved from https://netflixcompanyprofile.weebly.com/ https://netflixcompanyprofile.weebly.com/

Netflix. (2019). Netflix culture. Retrieved from https://jobs.netflix.com/culture

Sadq, Z. M. (2015). Analyzing Netflix’s strategy. International Journal of Science and Research (IJSR), 4(3), 2271-2273.

Leading organizational change

Leading Organizational Change (MGT460)

Task

The world we are living in today is full of immense changes. One of the tasks required to be performed by organization leadership is to lead organization in a certain way in order to ensure that the whole organization is dedicated to change. The leadership should also ensure all the support mechanism are there in order to sustain the change.

This paper the student is tasked with doing research on industries that are currently experiencing marketplaces and demographic changes. Example of these industries are publishing industry, entertainment, bookstores, brick and mortar.

Once the student has choose one industry from above you are then required to explain how would you apply Kotter’s eights steps toward leading change within that organization.

Sample paper

Leading Organizational Change

Brick and Mortar Industry

The world is experiencing growth and expansion of e-commerce. This has resulted to a constant decline of sales in brick and mortar stores, in different parts of the world, as e-commerce makes most products available to customers at their convenience. According to PEW research conducted in 2016, about eight in ten American shop for their products online, with about 15% of people in the country purchasing different products online every week.

The number of online shoppers in the U.S. has increased from 22% as recorded in 2000, to 79% as recorded in 2016, which is a growth of 57% in a span of 16 years (Smith & Anderson, 2016). Consequently, a number of brick and mortar stores have been forced to close down, or change their way of doing business, to remain viable in the market. For instance, Toys “R” US is one of brick and mortar stores that were forced closed with emergence of e-commerce. Other struggling brick and store companies include those in shoes, toys, music and electronic appliances market among others (Richter, 2018).

Kotter’s eights steps

Kotter’s eight steps are used in this section to address the issues brick and mortar stores are experiencing with emergence of e-commerce. The first step would be realization of unfavorable upcoming situation and moving in urgency to counter the situation. In this case, the company is supposed to recognize the growing decline of sales, and move fast to identify the cause and the measure to be taken. The organization leaders should be swift to convince other stakeholders on the need for adapting the new technological trend, to remain competitive in the market.

Having agreed on need for change, the leader will need to establish a strong team that can lead the organization to change its operations, to integrate e-commerce services. The identified change will be based on clear vision of increasing sales, by targeting global customers through e-commerce, and with strategy of developing e-commerce platform and shipping mechanism.  The organization leaders will also need to establish a blog and social media platforms, to use to communicate the company vision with its customers.

 Read Also: Goal-Setting Framework (MGT 460) 

Traditional ways of communication that were previously used to access customers should also be used to communicate new organization vision, to ensure that all customers have the needed information. The organization will then introduce training program where workers in the marketing and sales department will be taught on operating ecommerce business, and employing the best advertisement mechanisms and work efficiency, to win more customers and to build trust. Leaders will also define short-term milestones or goals to cultivate positive attitude and to motivate those in sales department to work even harder (Burke, 2008).

The organization will guarantee sustainable changes by cultivating innovative culture. This will ensure that the organization leads in change in the market, and that it is never caught up unaware as before. The leaders will also strive to ensure that the organization does not give up in the initial stages of introduction to e-commerce market, but instead, workers are always determined to win, by making sales and building more market shares, by expanding the company targeted market. The desired outcome would be revival of the sales rate, to surpass any past record in the company. The best supportive mechanism in e-commerce would be enhancing shipping services, and maintaining high quality of products and services, to win a huge number of trusted customers (Burke, 2008).

References

Burke, W. W. (2008). Organization change: Theory and practice (2nd ed). Thousand Oaks, CA: Sage Publications.

Richter, W. (2018, May 19). Here’s which brick –and-mortar retailers are getting hit the hardest. Business Insider. Retrieved from https://www.businessinsider.com/brick-and-mortar-retailers-getting-hit-the-hardest-2018-5?IR=T

Smith, A., & Anderson, M. (2016, Dec19). Online shopping and e-commerce. Pew Research Center. Retrieved from https://www.pewinternet.org/2016/12/19/online-shopping-and-e-commerce/

 

goal-setting framework

Goal-Setting Framework (MGT460)

Goal-Setting Framework (MGT460) paper is about a case study on the Los Angeles Tribune, which is a big newspaper publisher that needs several management issues addressed.

These problems include the following

  • Paper cost is rising.
  • Rising distribution cost.
  • Revenue that circulates going down also.
  • Clients purchasing advertisements locations are less because of new online listing services like craigslist.
  • The client’s age is 40+.

The paper will construct a goal-setting framework that will mainly focus on the above issues.

 

Goal-Setting Framework (MGT 460) Sample paper

Los Angeles Tribune is a large, though struggling newspaper publisher that distributes its papers in the entire region of Los Angeles. The tribune is currently experiencing a number of problems that need to be addressed. Three of the problems that will be addressed in this case include the rising cost of distribution, reduced circulation revenue, and the rising cost of paper. The company focuses on setting goals to determine the best strategies to address the identified problems.

The goal setting process, according to London and Mone (2016), involves creating mutually agreed-to strategies, measures and tactics to offer direction for development and performance. This paper describes goal setting process for addressing the three identified issues. This will start by identifying the goal statement, followed by identifying the corresponding recommended strategies, tactics, activities, goal measurements and success measures, and providing rationale for the given recommendation.

Rising Cost of Paper

Goal Statement

The first issue to be addressed is the rising cost of paper. Los Angeles Company depends highly on paper, to print information that it sells to its customers.  The goal statement for rising cost of paper is to reduce or eliminate the operation cost related to purchase of the paper. Increase in the cost of paper is increasing the final pricing of the newspaper in the market. This discourages majority from purchasing the printed newspaper, and consider other cheaper methods of accessing information on current events.

Solving Problem

The new strategy involves reducing the production of printed newspaper and instead, the company should focus on selling online-paper. To address the problem, the company should reduce its daily number of printed papers, to only print papers that target the population that cannot easily access the internet. It should then establish its own website, where it can sell online newspaper to interested parties. The e-newspaper price should eliminate the paper cost and printing cost, and thus, reducing the overall price of the paper (Sylvia, 2008). The company should continue cutting on the number of printed papers, and continue marketing its e-newspaper, to eventually eliminate paper and printing costs completely. To measure success of this strategy, the company will determine the number of online newspaper sales compared to printed paper sales and determine which give more counts. The total revenue for each group of sales can also be used to determine the strategy success.

Rising Cost of Distribution

 Goal Statement

The second problem to be addressed is the rising cost of distribution. Printed newspapers get to the targeted customers on daily bases, using the company determined physical distribution methods. A lot of money is incurred on transportation, as the company ensures that Turbine newspapers reaches all the targeted customers, and in ensuring that these papers are accessible to customers when needed or anticipated. The goal statement of rising cost of distribution is to reduce or eliminate the Turbine operation costs related to newspapers distribution.

Solving Problem

High distribution cost adds to the high operational cost, which results to increase in the cost of the Tribune newspaper in the market. The main issue facing Tribune is resistance to change. Printed newspapers are being overtaken by time and events, especially with regard to technology adaptability. There has been a shift from a printed newspaper to e-newspaper. Majority of previous Tribune buyers have shifted into sourcing their information from the internet. Internet based newspapers are cheaper, since they do not incur the paper, printing and distribution costs (Sylvie, 2008).

The company needs to review its position in the integration of new technology in its operation, and consider making improvement. E-newspaper is made available to those who want it, just by uploading it to the company website. This uses very little cost, and ensure that the newspaper is not only accessible to the Los Angeles population, but also to any other person who would be interested in reading it. The company should establish a website and start selling its newspaper online through monthly subscription, yearly subscription or daily purchase (Sylvie, 2008). The measure of success will be the cost saved by selling each newspaper online, and also the total profit achieved through online sales, compared to past level of profit, during physical distribution.

Related PaperMGT 460 Leadership Priorities & Practice

Reduced Circulation Revenue

Goal Statement

The popularity of printed paper has been declining with technology advancement. Most of the people prefer sourcing information from some of the free online sites such as social media sites that are completely free, news blogs, or news producing companies’ website, at a small subscription fee. This makes printed papers less marketable in this era. The Goal statement of reduced circulation revenue is to increase the company sales and profitability.

Solving the Problem

Printed papers are considerably expensive compared to other sources of information and news, such as e-newspapers. The high printed newspaper cost has caused a drastic shift to cheaper online newspaper. This has reduced the number of customers preferring printed newspapers, especially with spread of the internet and mobile devices that allows one to access news anywhere at any time.

Inability to embrace technological changes has reduced the Los Angeles Company competitiveness in the market, resulting to reduced sales and hence, reduced circulation revenue. The company should thus shift to developing and marketing its e-newspaper, to be able to reduce its pricing, as a result of reduced operational cost (Sylvie, 2008). This is likely to attract more sales and increase the company profitability. The success of this strategy can be measured by assessing the number of daily online newspaper sales compared to printed sales, and the level of profitability in both cases.

Conclusion

The three employed measures are highly necessary for the future of Los Angeles Tribune. The company should be able to recover from its current financial situation, after employing the suggested strategies to handle rising cost of paper, rising cost of distribution, and reduced circulation revenue. Based on the analysis, embracement of modern technology is the key to the future success of the company. With this, the company will manage to rebuild its revenue and profitability, within a short period of time.

 

References

London, M., & Mone, E. (2016). Leadership for today and the future (2nd ed.). Retrieved from https://ccontent.ashford.edu/

Sylvie, G. (2008). Developing an online newspaper business model: Long distance meets the long tail. Retrieved from https://www.researchgate.net/publication/237332129_DEVELOPING_AN_ONLINE_NEWSPAPER_BUSINESS_MODEL_LONG_DISTANCE_MEETS_THE_LONG_TAIL