A Critical Evaluation of Management Practice at Netflix

This report evaluates the management practices at Netflix, including the mission of the firm, key business challenges, impact of emotional intelligence, and alignment of values. It also discusses the battle of streaming giants and how the management is dealing with the situation.

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK-1............................................................................................................................................4
TASK-2............................................................................................................................................7
TASK-3............................................................................................................................................9
TASK-4 .........................................................................................................................................13
CONCLUSION..............................................................................................................................16
REFERENCES................................................................................................................................1

INTRODUCTION
Management refers to the process of organizing various activities in a alignment which
can produce the desired outcomes. The process of management is followed within the life of an
individual it is just not acknowledged by them. Every activity or situation that is organized falls
under management. With the context of business, management is the process of making
objectives, planing to achieve them and control the strategies that are implemented to achieve the
predetermined goals. POSDC are the initials that depicts classification of managerial activities in
5 components. Every managerial activities, from top to bottom falls under these 5 components.
These components are planning, organizing, staffing, directing and controlling which are aimed
to achieve the organizational benefits.
Netflix Inc. is an American subscriptive service that offers various television shows and
films which is produced by the company. It is one of the most famous OTT platforms that is
available across the globe. Films and shows produced by Netflix itself is referred as Netflix
originals. This platform was founded in the year 1997 in California and since then it has
expanded its services across the world.
Following report will be evaluating the managerial aspect of Netflix Inc. which will be
enlightened with various effective aspects. This will include management practices with
identification of mission of the firm, key business challenge for Netflix with the role of
management in it, impact of managers emotional intelligence in terms of employee engagement
and alignment of Netflix values.
TASK-1
Management Practice at Netflix
Netflix is one of the most successful business organization which has managed to survive
since its establishment by making such strategies and managing various situation which has
developed a flexible nature of the brand. Management of Netflix gets the appreciation for
making this happens. Management in the organization is so powerful that it has managed top
achieve this high level of the organization. The managerial practices in the organization is
followed accurately and creatively which helped the firm to gain a wider subscriber base. The
organization has faced many ups and downs in it journey towards success, the management of
the organization was one of the biggest factor that helped the organization to surpass difficulties

and managed to survive. Management practices in the organization revolves around 5
components that depicts the whole process of management. The first step is the planning process
in which the managers focus on formulating plans and strategies for tacking different situations
or to achieve certain goals. Every stage of strategy making is considered in this step of
managerial process. Organizing is the second step which focus on gathering the needed resources
for successful implementation of plan. Different physical assets such as machinery, software etc.
are collected in this step to form its combination in a way that it can support the implementation
of strategy. Staffing is the third step in which the management has to decide the human resource
that will perform certain activities for the successful implementation of plan. In the directing
step, the management directs the employees that how to work accordingly with the strategies to
attain the predetermined goals for the firm. Final step of the management process states the
controls of managers on the strategical direction with a frequent monitoring activity. This
dissolves the effect of various factors that impacts the strategy at different time period.
Mission of Netflix
Mission statement of Netflix reflects the aim of the organization to entertain the
subscriber residing in different parts of the world. From its mission and vision statement it can be
interpreted the focus of the organization is to target the customer with different preference that
lives in different parts of the world. Objective of the management is to make efforts for
providing such content to the subscriber which related to the preference of the customers. This
mission statement of the organization reflects the strategic direction and mindset of the
management that focuses on higher customer enjoyment with a relatable content. Management
process in the company takes place with this ideology and every decision taken by the managers
are focused towards this mission. Although, it is not an easy task for a OTT company to provide
content according to the different preference of customer but Netflix has achieved this objective
to a considerable extent which is highly appreciable. This mission of the company keeps a room
for developing more and more diversification in the services provided by Netflix as it focuses on
entertaining subscribers to a higher level.
Values of Netflix
Business commencement of Netflix is based on its core values that depicts the ideology
of the company that is followed to develop affirmative image in the market. These values of the

company directs and guides the staff towards working with integral behaviour which supports
the smooth running of the firm. The core values are described below:
 Inclusion- this core value of Netflix focus on true meaning of equality as the employee
base is managed without any biased elements involved.
 Innovation- innovation in the offerings that is mainly in the application comes under the
core values as it is the basic need for the company to achieve its mission.
 Passion- the company is passionate in the field they deal in and the staff of Netflix also
puts efforts to serve more enjoyable content to the viewers.
 Curiosity- this core value reflects the behavioural aspect of the company and states that
how it is aimed towards following the mission.
 Judgement- this refers to the final call of the management that is given according to the
mission statement.
 Communication- effective communication in the premises is the aim to avoid
misconception and to provide customers with the aimed content.
 Courage- Netflix adopts such content whose prevailing chances in the market is low but
the company diverges this judgement by showing the courage to provide it to subscribers.
Preferred style of management practices
Netflix is one of the known companies for acquiring unique management styles which
has made it one of the largest OTT platforms which is widely preferred by the viewers. CEO of
the company has played a vital role in developing such managerial concept which helped the
firm to survive many ups and downs with the flexibility. Hands off leadership approach followed
by the management of the company is one of the major factors that has helped the organization
to achieve such higher level. Employees were authorized with higher autonomy which increases
their productivity and creativity but the consequences of failure of any methods followed by
employees has to be faced. This increasing creativity reflected in the content produced by the
staff which later became a point of higher growth for the firm. This approach of leadership
pursued by the management became an example for many companies operating in the same
industry.
Alignment of mission, core values and management practices
Mission of the organization to serve the viewers with more such enjoyable content on a
global level is aligned with the core values of the firm which was organized and controlled by

the management practices. These three component has made it possible for Netflix to produce
and identify such content which can gain relevance with the preference of subscribers to and
certain extent. This alignment has helped the firm to go through difficult conditions that cam in
the way of success. Netflix successfully gained a position in the market which defines
incompetence to other OTT providers. Upliftment of the organization to such level was an
outcome of the focused mission that was the centre point of the core values of the company. To
achieve this mission to a considerable level, the management played a vital role by adapting the
hands-off approach to leadership.
TASK-2
Battle of the streaming giants
Business war between many OTT giants is ongoing which is getting immense day by day
which is harming Netflix as the viewers are getting diverted towards other platforms. Till 2020,
Netflix didn't face such big competition in the market and was able to attain decent amount of
profits from the subscription fees paid by the viewers. During the pandemic, boost in the demand
of such OTT platform was observed which attracted different organization to enter the sector and
grab the high opportunities available in the industry. Many organizations that were previously
dealing in other sector tried to enter this strategy (Maali and et.al., 2020). This situation created a
flood of competition for Netflix as there were many giants that forced the competitive effects on
the firm. While this period many OTT platforms entered the sector, many of them established a
strong foot in the market and other small platforms faced failure. But the effects of both giant
players and small players effected the profitability of the company by attracting the customers
towards them. Availability of several substitutes of Netflix created a major diversion of
subscribers. This was a result of low shifting cost that has to bear by the viewers. Many
strategies of the competitors forced the company to put more efforts to gain the previous market
position.
This war effected various aspects of the business which needed development. Many
content providers to Netflix shifted to other OTT platforms as the cost bearing was lower. There
were many well-known films and television series which shifted to other platforms that caused a
major harm to Netflix. Pricing strategy of the competitors focused on providing low subscription
fees to the viewers which led to high shift of customer preference towards those competitive

platforms. Current highlights of this battle between the telecast giants have shown that how it has
reduced the subscription fees because of the high competition. These prices are reduced to a
higher extent if compared to the past records, to survive in the industry and to gain higher
subscriber rate. Due to this battle the bargaining power of customer has substantially increased.
The wider availability of the options to the viewers have resulted in easy conversion of customer
preference towards the lowest priced platform.
Another angle to this battle gives a perspective over the impact caused by substitute
platforms most of which provides a minimum or no cost subscription with enjoyable content
which creates an additional challenge for Netflix. These are some platforms like you tube which
offers the content creators a free of cost stage where the content can be presented to the
subscribers. Although, the guidelines of the content is very rigid on these platform which
differentiate it from platforms like Netflix, Amazon Prime etc. but it somehow effects these giant
service providers.
How the management deals with this situation?
Management of Netflix is efficient and effective which focus on this dilemma very
closely by monitoring every aspect that is impacted by this stiff competition in the market. It has
become a matter of major concern for the organization which is coming in the way of
accomplishing their mission to provide enjoyable content across the globe. Although, the
management has started dealing with this issue by reducing the subscription fees with a very
good margin which has helped in retention of old subscribers and gaining new ones as well
(Barbosa and et.al., 2021). However, these efforts of the organization are not enough to eliminate
the competitive forces and to attain the mission of the firm. The two strategical elements that can
help the management of Netflix to tackle these barriers and to regain the position of market
leader is the creativity and decision-making.
Creativity
The main component that attracts the customers is the content provided on he platforms
which should be enjoyable from which the viewers can relate. Management can focus on
producing such content which can engage the viewers in it and can influence their view to a
higher extent to develop a sense of relativity from the content. This can be done by higher
creative writers and employees in the production or direction unit who can perform this task for
Netflix to regain the subscriber rate of the platform. For increasing the creativity of current staff

the management can focus on relieving the high work pressure (Abbas and Sağsan, 2019). The
alignment of this factor with the hands-off leadership approach of the firm can reduce the rigidity
in creativity which can give effective outcomes to Netflix.
Decision-making
Decision-making process is one of the key drivers that leads the company in certain
direction which can be both negative and positive. So, this process needs a sheer focus on
evaluation of the alternatives available to the management which is most feasible for gaining
higher organizational benefits (Zaid and et.al., 2018). This evaluation needs to consider both the
positive and negative aspect of the decided alternative which will impact the operations of the
company. Decision has to be taken accordingly by the management to ensure the goal
achievement of Netflix to gain higher number of subscribers.
TASK-3
Emotional intelligence of managers
Emotional intelligence of the managers is referred to their ability to evaluate the
psychological behaviour and mindset of the employee. A manager's ability to influence the
mindset of employees in a way that it can make them work happily without creating disputes in
the organization (Mahrinasari and et.al., 2021). Management of Netflix can be given the tag of
emotionally intelligent as they have formulated such plans and strategies that can increases the
efficiency and creativity of the employee that is depicted in the content produced by them.
Emotional intelligence of the managers focus on the following aspects:
 Motivation
The employee's will to work is referred to their motivation which can be reflected by
their enthusiasm to perform their job role. This motivation derives the employees towards
working efficiently to contribute in the achievement of organizational goals. Self or internal
motivation of the employees has to be analysed by the managers which can provide an idea of
which employees possess higher will to make efforts for attainment of goals and the ones who
are just performing their job (Saragih and et.al., 2020). Managers can try to increase the
motivation in the workforce by rewarding the one who are giving effective outcomes to the
company.
 Empathy

Empathetical behaviour of the managers towards their employees can improve relations
between them which can lead to higher coordination for the company. Understanding the
reasonable explanation for any mistake or error is expected from the side of management which
have a positive impact on the employee behaviour (Al Aina and Atan, 2020). Empathetical
behaviour towards employees should be up to a certain extent which ensured that the employees
don't take management for granted and tamper with the good behaviour. Empathy shown by the
management of Netflix can lead to increase in creativity in which can help the firm In product of
good content.
 Self-awareness
In this aspect the manager has to focus on their inner values and psychological position
which is highly necessary for maintaining various aspects of the firm. Manager is one of the
biggest intangible asset for the organization so, they should understand their own importance and
contribution towards the objectives of the firm. Their mindset should be strong enough to tackle
different condition and to work in immense pressure (Saeed and et.al., 2019). Better
psychological and mental health of the manager can have a positive effect on the managerial
activities performed by them. Managers in Netflix are counted among one of the most important
bodies that keeps sustainability in the company in different conditions.
 Self regulation
Self-regulation refers to the process of maintaining self attributes and emotion which lead
to making impulsive decision that can harm the organization and their carrier as well. Managers
have to keep a strong hold on their emotions in situations where important decisions have to be
taken (Mousa and Othman, 2020). Management of Netflix is well aware with this concept and it
can be noticed hat their behaviour and emotions controlled thoroughly which helps them to take
right call in difficult situation.
 Sociability
Social needs of employees refers to the basic fundamental that impacts the behaviour of
employees. Social responsibility of the managers sates that they have to maintain the aura in the
organization. These social values of the management in Netflix is very strong which depicts a
respected nature with the employees (Nudurupati and et.al., 2021). This behaviour towards the
workforce makes them feel honoured, and they give their best to the organization in the form of
creativity.

The potential impact of Netflix Managers’ Emotional Intelligence in promoting high levels
of employee engagement
Employee engagement refers to the involvement of employees with their will in different
activities of the organization. Dedication and enthusiasm are 2 main key indicators of employee
engagement ion the organization which reflects that how the employees are performing and
taking part in various activities. Employees which are engaged in the organization tends to do
their work with sheer will which is reflected from their work. This depicts their enthusiasm to do
work instead of just doing it for the pay-roll. The organization gets highly benefits with this
employee engagement as it increases their creativity that helps the organization to achieve its
mission to a certain level. There are many efforts done by the human resource management in
the organization to increase the employee engagement and make them feel connected to the
organizational goals. These efforts make the employees more comfortable and their a feeling of
belongingness with the firm is developed that helps them to perform their job roles with
productivity (Tereso and et.al., 2019)(Forth and et.al., 2019). It can be noticed that the efficiency
of the employee eventually increases as the result of the good working culture provided to the
employees. Netflix have a major focus on increasing the employee engagement by adopting the
leadership style that gives higher autonomy to the employees which extracts the creativity of the
staff which increase the output produce by them. Creating and managing the content is not an
easy task as it needs a regular creativity to provide the viewers with something new and unique
which can divert the crowd towards the platform.
Organizational benefits can be achieved with the employee engagement that is an
outcome of the management's emotional intelligence. This focus of the management towards the
psychological aspect of the workforce leads the employees towards making efforts to contribute
in the upliftment of the company. Employees can be one of the major factor that can enhance the
strength of the organization and help in tacking the impact of external factors that has affected
the profitability of Netflix (Valero, 2021). Creative employee base that is an outcome of the
efforts made by management can help the firm to gain a competitive edge over the rivals such as
Disney+ apple TV etc. whose business commencement have a major impact on the company.
Long term sustainability can be achieved by the organization that helps the firm to surpass the
barriers and difficult situation coming their way of success. Mission and vision of the firm can be

accomplished to a fuller aspect if the employees keep performing well throughout the
organizational journey.

TASK-4
MANAGEMENT PRACTICE AND NETFIX VALUE ALIGNMENT
Resilience – The culture in the Netflix is real which is described by its employees.
Netflix has the culture of Freedom and Responsibility in the culture the employees were free to
do whatever they want to do. To the perspective of the resilience there is the need of some
centralized capabilities while COVID – 19 (Giustiniano and et.al., 2018). There was creation of
the first resilience program that is the wide enterprise program. The increase of the resilience and
the fit of the culture with the Netflix is the requirements for the program. There are the three
primary capabilities to design the program. The capabilities are as follows:
Risk Scoring of Resilience – To understand the current risk of resilience in the organization by
the owners of the risk, the program was created through intuitive, standardized and through the
useful metrics.
Impact of Predictive Modelling and the Mapping Dependence – The assets interdependencies
and the were clearly measured by developing the virtual ecosystem and the using of scores. To
the chains of the dependency the weak links can be identified predictively and proactively. There
are no exclusives of the technology, in the virtual world engineers should think different (Munn,
2020).
Service of Resilience – To improve the capabilities of the resilience some risk owners will
require the simple context. To reduce the risk some of the owners of the risk will require the
expertise and the assistance. On the request of risk owners the resilience of service will provide
the activities of mitigation of risk and will act as the consultant for the risk owners.
The Risk scoring is the first capability which should be focused. The Context of the
Netflix was used as maxim in another steps. To make the decisions informed the needed
information was provided to the employees (Giustiniano and et.al., 2018). To determine the
resilience ongoing investments there was solution provided for the risk scores such as the
quantified and the standardized resilience. Risk Assets portfolio of each inventory department
should be the first part. The things of the risk assets are the:
 To the perspective of the resilience of the departments were owned
 Netflix critical ongoing operations
Physical locations, processes, production of studios, relationship of vendors and the
applications were included in the assets of the risk. It can apply the critical score to each

identified risk assets. To the assets of the RTO the range of the critical score is from 0 – 10. The
0 risk assets of the critical score means that company can disruptive suffer for some weeks
without impacting to the company (Munn, 2020). The availability of 24/ 7 defines the critical
score 10. BIA was conducted through this way. The difference between the capability and the
critically score is the resilience risk score final piece. The appropriate actions can be taken by the
partners of the business through understanding the status of the resilience intuitively and quickly.
It is easy for the business partners.
Stakeholders – Netflix includes both the internal and the external shareholders. Netflix
offers the entertainment content to more than 190 countries and the 30 langauges. It was the
American streaming services. In the world it is the trusted entertainment brands and it was the
largest brand. The shareholders, employees, leadership team are the key members of the internal
stakeholders of the Netflix (Kim, 2022). To the different function like legal, finance,
communication and the marketing, the leadership are the co - CEO, leaders, chief officer and the
chief content officer. To the success of the company there are the number of vice presidents of
different regions and the functions play role. There are more than 9,400 workers in the Netflix.
In the company the workers were divided into four teams.
The four teams are corporate functions, publicity and marketing, content and the product.
To face the problem company hires the best employee who were highly developed to the cut
edge solutions through the proper research. The Netflix ownership was majorly held by the
Institutional shareholders. Netflix has to keep informing there shareholders as the shareholders of
the Netflix were interested in the finance of the company (TORRES and ALARCÓN, 2021). The
external shareholders of the Netflix includes the competitors, customers, regulators, group
pressure, content independent producers. Across the world Netflix has more than 200 million
subscription. Through the subscription Netflix generates more income. Company can suffer a
loss if the company does not satisfy its subscriber. There will be the unsubscription of the
customers if they were dissatisfied. The content was original which is the primary focus of the
Netflix.
Form the independent customers Netflix is focusing on looking forward on more content
licensing to satisfy the customers of the Netflix and to remain competitive in the market. In the
future the success of the company was majorly depended on the independent distributors and the
producers. To gain the competitive advantage Netflix should identify the contents and the

activities of the competitors (Kim, 2022). The competitors of the Netflix are the Hulu, Amazon
prime, Disney+, Apple TV and the HBO max. To obtain the position in the market and to
perform the function well business should measure that the stakeholders are happy. The
stakeholders are the important part in the organization. Organization performance were majorly
depended on the stakeholders.
Conflicts and Negotiation – Conflict or dispute solving is the process of the conflict
negotiation. To satisfy with the outcomes it provides the need for each side. The interest was also
adequately addressed. In the management the conflict can be arisen due to the several issues
faced by the employees. All departments were responsible for the conflicts in the organization as
the decision in the company was taken by every department in the organizations. Due to the
several competitors of the Netflix it has to negotiate the price of the service and the product it
supply which impacts the profits of the Netflix. Netflix should understand the service provide of
its competitors to retain the position in the market and to gain a competitive advantage in the
market.
Teamwork – The management of the team in the organization help the business to grow.
Teamwork in the organization helps the company to generate more profits as working in the
team generates more ideas and the problems were also solved easily. Due to the bold leadership
styles and the management structure Netflix generated more than 60 percent growth. Compared
to the other companies media Netflix is operating the business differently. The management team
of the Netflix is the growth structure of the company (Larson and DeChurch, 2020). In 1997
company started the selling of DVD and the rental. Till 2007 Netflix more focused on the DVD
rentals and stop the selling of the DVD. In 2010 Netflix expand the business internationally and
started offering of the media streaming. From the acquiring content and the strategy of structure
company is able to provide the modern content. Netflix has the good working environment, it
allows every member in the company to recommend or approve the film or the series to the
entire committee of the Netflix.
To get excessive watch Netflix launch two seasons of every approved series. In the
committee of decision making process the head of programming the Ted Sarandos is at the top.
The culture of the Netflix is the Freedom and the Responsibility which help in making decision
faster. Reed Hasting the CEO of Netflix meet the R – staff team. The members of the team meets
monthly and directly report to the CEO. The platform engineering, content and the marketing

regional platforms were focused by thee members of the E – staff and the R – Staff (Swartz,
2022). To discuss the initiative strategies the team of the E and R staff meets more than 9 times
in the year. The team of content includes the seven vice president which works with Sarandos.
Unscripted series, shows, original contents and the film were discussed by the team of content.
The content team Sarandos is the Netflix hub, there was a separate under each vice presidents.
There was the expansion of the internation content team due to the incidental outside
United States the expansion of the company. To the TV shows, original shows, film licensing
unscripted series and to the range of film there are more than six Vps which were reporting
directly to him. To review the Netflix current state the directors below level vice presidents were
meeting quarterly. Directors group is composed as the largest group (Larson and DeChurch,
2020). The E – staff and the R – staff further discussion is to expand and discuss the country to
prioritize and to the particular country it includes the discussion of broadband penetration level.
Netflix is hiring those people who flourish with the freedom and the latitude culture. Adapting
this approach helps the Netflix in generating more innovative ideas and also helps to grow more
rapidly. The decision-making was guide by the culture of the company at the end of the day. It
helps the employees and the members of the team to understand their role in the job. It also helps
in identifying the success of the culture.
CONCLUSION
From the above report management of the Netflix and its functioning areas can be
concluded as one of the effective and efficient department. Various managerial activities that
takes place in the organization has been discussed thoroughly which is being highlighted with the
various terms and situations. The primary task in the report has described the management of
Netflix along with its mission and values that has highlighted the ideology of the company to
serve an amazing and enjoyable content to the viewers across the globe. Hands off approach of
the manager is mentioned as a leadership style preferred by the CEO of the company that has
helped the organization to achieve the position in the market. In second task battle of streaming
giants has been mentioned which highlighted the competitive stiffness in the industry that has
rapidly increased during the pandemic. Efforts of management to win this battle by regaining the

market position has shows various methods and techniques adapted by them. Although, these
techniques has not proves to be as effective as needed because the position of Netflix is not
regained till now. Creativity and decision-making process has been elaborated in the report
which can help the management to develop a competitive edge over their rival streaming
platforms. Moreover, the emotional intelligence of management in the company to improve
employee experience which can help in uplifting the organization has been studied thoroughly.
Final task in the report has shown the effects of management practices adapted by the leaders
which aims towards the shared values of Netflix Inc.

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