Question: Write Discussion Question and give a personal opinion CASE APPLICATION Freedom and Responsibility at Netflix Founded in 1977 a DVD rentalsic, Netthis is how the
Write Discussion Question and give a personal opinion
CASE APPLICATION Freedom and Responsibility at Netflix Founded in 1977 a DVD rentalsic, Netthis is how the world's largest subscription streaming video service with more than 5 million paid bacters in about trice" The company's mail oder DVD service was a disruptor to retail video rental stoets such as Blockbuster However, the company's business model solved in response to changing customer preferences and they now primarily provide a video streaming service that includes original programming, competing with mir television networks This transformation required overcoming many cullenges and some credit the compe ny's successful shift toeganizational culture, which supports growth and innovation Nettlis's culture is rooted in the values of freedom and responsibility. The cos puny hires surt people and gives them the freedom to do what they do best. There are no animal performance reviews or other burcimacy to burden employees. Instead, employees are treated like adults and are given the freedom they need to do their jobs and manage their lives. For example, there is so expense policy or approval process etapkyees ase guided only to spend money in Netflix's hest interest. Employees have unlimited Vacation time and spending time in the office is not a priority Recently, the company even added up to one year of paid line for parents. With this freedom comes responsibility Employees are expected to produce, and they are held accountable for results Ideas conged, and they expect people with ideas on how to improve Netflix to put together grown to their ideas and move the forward Gordjedement is the and hard work is not ough employees must also achieve results Employees who don't need the expectations are asked to leave The company approach of asking employees to move on they are achieving expected results reduces the job security that most companies peonide hardworking employees If you aren't achieving results, or if what you doin't needed at the company any longer the company does not hesitate to ask you to leave Former Chiel Talent Officer Patty McCord noted that lie terminated the employment of us dreds of workers during her 14 years at Netflix. Most were not meeting the company's high expectations, while others had skills that were no longer needed. The company does not use performance improvement plans or written wamings shout performance, If you aren't working out, you are tired. Or as McCord prefers to say, you are asked to move on. While most employees who are fired are provided a gemeresseverance pack aps the reality is that hard work is not enough to promise you continued employment So how did a growing company like Netflix manage to build and maintain such a unique culture? McCord, considered the architect of Netflix's culture, led the effort by creating a 124-slide deck called "Netflix Culture: Freedom and Responsibility. The slides outline things that the company values, what matters to them, and what they expect from their people. Instead of a typical employee policy manual, the document essentially demands self-sufficient employees McCord notes that all of the ideas that set the foundation for the culture grew from within the company. They intentionally avoided looking at what other organizations were doing to promote innovation and growth. However, many others have looked with Netflix's approach to building an innovative culture. The company shared their slide deck on the Internet, and it has had nearly 14 million views since 2009. Inter- estingly, while many have viewed the slide deck, not many companies have copied the culture. While many organizations are starting to see that giving employees freedom while holding them to higher standards has some value, some suggest the culture isn't copied because it isn't that appealing. With statements such as "adequate performance gets a generous severance package, many believe that some of the messaging is harsh. Several years ago McCord became a victim of the culture she helped establish. In 2011, she backed a split between the streaming service and the DVD service. Custom- ers had to pay more for the DVD service, and more than 800,000 customers canceled their service. McCord took a lot of the blame for that decision, and that year she was interest asked to move on. However, McCord still speaks fondly of her time at Netflix and now works as a consultant coaching other companies on culture and leadership DISCUSSION QUESTIONS 3-14. Would you want to work at Netflix? Why or why not? 3-15. Does Netflix have characteristics of an innovative culture? 3-16. Do you agree that Netflix's culture contributes to the organization's success? Why or why not? 3-17. Could another company copy Netflix's culture successfully? CASE APPLICATION 2 Not Sold Out Competitors in the movie theater industry had hoped that they were through the chal- lenges they'd faced during the economic downtum. After ticket sales revenue in 2011 fell 4 percent from the previous year, revenue in 2012 was up 6.1 percent. However, in 2013. revenues were up again, but just barely--not even by 1 percent. The numbers of people going to see a movie continue to stall. So the industry has tried to pump up revenue with high-profile movies higher ticket prices, and premium amenities The number of movie screens in the United States totals a little more than 39,000 Together, the four largest movie theater chains in the United States have a little over 19.200 screen--and a lot of cats to fill. The largest, Regal Entertainment Group (based in Knoxville, Tennessee) has more than 7.300 screens AMC Entertainment (hased in Kansas City, Missouri) has almost 5,000 screens. The other two major competitors are Cinemark (based in Plano, Texas-about 4,400 screens) and Carmike Cinemas (hused in Columbus, Georgiaalmost 2.500 screens). The challenge for these companies is getting people to watch movies on all those screens a decision that encompasses many factors. One important factor according to industry analysts is the uncertainty wer how people want their movies delivered, which is largely a trade-off between convenience and quality for what the experts call fidelity experience. Will consumers choose convertit over quality and the mobile devices such as iPads? Will they trade some quality for convenience and watch at home on surtound-sound, flat-screen, high-definition home theater systems? Or will they go to a movie theater with wide screens high-quality sound systems, and the social experience of being with other moviegoers and enjoy the highest fidelity experience-even with the inconveniences? Movie theater managers believe that mobile devices aren't much of a threat even though they may be convenient. On the other hand, home theater systems may be more of a threat as they've become extremely affordable and have acceptable" quality. Although not likely to replace any of these higher-quality offerings drive-in theaters analysts note, are experiencing a resurgence, especially in geographic locations where they can be open year-round. The movie theater chains are also battling IMAX Corporation for customers as movie screens get bigger and bigger. Over the last five years, the number of these oversized screens built by the five largest theater companies has grown to the point where it almost equals the number of IMAX locations. The movie theater chains have invested in these formats because it can add several extra dollar to the ticket price, resulting in increased revenues Another factor managers need to wrestle with is the impression consumers have of the movie-going experience. A consumer lifestyle poll showed that the major dislike about going to the movies was the cost, a drawback cited by 36 percent of the respon- dents. Other factors noted included the noise, uncomfortable seats, the inconvenience. the crowds, and too many previews/commercials before the movie. A final question facing the movie theater industry and the major film studios is how to be proactive in avoiding the problems that the recorded music industry faced with