Sie sind auf Seite 1von 21

ORGANISATIONAL BEHAVIOUR

PROJECT

ON

(http://brand.netflix.com)

PRABHAT TRIVEDI - 180301008


VISHNU SHANKAR SHUKLA - 180301020
PGDM (EXECUTIVE)
Batch- 2018-2019
ACKNOWLEDGEMENT

This case study involves the cooperation and support of few motivating individuals, without whom
the study could not have reached its conglomerate stage.

Our foremost & loudest appreciation would be to the Almighty for the health and the thoughtful
memory we enjoyed before and during the case study.

We would like to express our deep sense of gratitude to our beloved families for their undaunted
support throughout the preparation of this study.

We would also take this opportunity to convey our sincere gratitude and heartfelt appreciation to
Mr. Prashant Iyer, Brand & Editorial Manager, Netflix India,,for his valuable guidance.

Finally, we thank all the colleague-friends who rendered all the needed backing in completion of my
case study.

PRABHAT TRIVEDI

VISHNU SHANKAR SHUKLA


TABLE OF CONTENTS

Ø Chapter-1: Vision, Mission & Core Values of the Netflix Inc.


ü Interpretation
Ø Chapter-2: Alignment-
ü SMART principles
ü SWOT Analysis
Ø Chapter-3: Structure of Organisation
Ø Chapter-4: Interpretation of Logo of Organisation
Ø Chapter-5: Job advertisement
ü KSA Tabulation
Ø Chapter-6: Motivational Aspects adopted
Ø Chapter-7: Leadership
ü Style and approach of CEO
Ø References
Ø Appendix – Interview with Netflix Employee
EXECUTIVE SUMMARY

Although the rise of its international visibility is relatively recent, Netflix has been operating since 1997. And
today Netflix is the world's leading internet entertainment service with 139 million paid memberships in over
190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and
languages.

This report aims at a refined understanding of the organization’s structure, culture, environment and
behaviour. In today’s fast-changing business environment, Netflix approach to talent and culture is quite
compelling with a ‘Freedom and Responsibility’ incorporated organizational structure.

In addition to a very clear value proposition, Netflix has opted for a unique organizational culture and talent
approach. Netflix employees are made familiar with an organizational culture in which they clearly postulate
that they are a team, not a family or a “recreational kindergarten”. Every employee must read a document that
contains his or her positions regarding the work culture, which includes in a perfectly clear way the ten true
values of an organization. One of the qualities that distinguishes Netflix’s labour policy document from others
is that it uses a completely open, frank, clear language and avoids any kind of politically correct euphemism.
In this way, they naturally establish how they interpret the company’s present and what future they aspire to.

The emphasis is on results and people, not processes. If someone gets amazing results with little effort, they
will be rewarded above anyone else who gets good results with hard work. This rigidness of environment can
be viewed as ‘too stressful and intense’.

Hierarchy is to a great degree irrelevant at Netflix because employees are encouraged to work directly with
employees in other groups to get their work done. This work is not approved, negotiated, or mediated by
managers.

For Reed Hastings (Co-Founder and CE0) transformational leadership, creative intelligence and reciprocity
come together to best describe his leadership abilities. To reinvent the company’s human resource policies so
radically can be viewed as a testament to Hastings creative intelligence and transformational leadership
abilities. Hastings is a leader that prides himself on making few decisions; his aim is to allow his employees
to take ownership of generating new products and initiatives.

Netflix’s new culture document ends with the following lines from Antoine de Saint-Exupéry:

If you want to build a ship,


don’t drum up the people
to gather wood, divide the
work, and give orders.

Instead, teach them to yearn


for the vast and endless sea.
CHAPTER-1

1.1 Vision, Mission & Core Values

• Becoming the best global entertainment distribution service


• Licensing entertainment content around the world
• Creating markets that are accessible to filmmakers
• Helping content creators around the world to find a global
audience

• Promising customers stellar service


• Promising suppliers a valuable partnernship
• Promising investors sustained profitable growth
• Promising employees allure of huge imapct

• Judgement
• Communication
• Impact
• Curosity
• Innovation
• Courage
• Passion
• Honesty
• Selflessness
1.2 Interpretation

VISION
MISSION

CORE
VALUES

How coherent are they???

Vision statement representing the ‘top of the funnel’ of the organization structure provides the
optimal goal and ultimate reason for existence, with insistence on high performance culture over
process adherence culture through creative/inventive work in combination to increased employee
freedom

Mission statement of the Netflix equates to its ‘brand promise’ referring it as a quest. The overview
of it can be inferred as to grow streaming subscription business domestically and globally with a
focus on expanding streaming content, enhancing user interface and extending services to more
internet-connected devices, while staying within the parameters of net income and operating
segment.

Core Values of Netflix are the behaviors and skills that are valued in fellow employees, as opposed
to nice-sounding values, focusing on achieving excellence. The entity of organization is represented
that of a pro-sports team than that of a family, aiming in increasing talent density faster the growth
of business complexity.

From the above analysis it can be deduced that Vision, Mission and Core Values of the
organization are coherent with each other and aim for recruiting, developing and cutting
smartly the resources with parallel employee abilities and personality traits, to aim stars in
every position.
CHAPTER-2

2.1 SMART Analysis

The study of the objectives and goals of the organisation must necessarily precede any further
analysis of strategy. Objectives spell out the goals that have to be achieved to realise a mission. They
set out in more detail how a mission is to be achieved. Closed statements / objectives are written as a
quantifiable target, financial operating target while open objectives are more in qualitative terms.

The chief mission of Netflix is “to become the gold standard of content while continuing to lead in
streaming technology by extending the streaming services to all corners of the globe”, which thence
should conform with the SMART strategic criteria, i.e.,
Specific, Measurable, Agreed with those who must attain them, Realistic and Time- constrained.

• Netflix spent more than $8 billion on original content in 2018, proving its dominance over
the television industry as the streaming service grew to more than 137 million subscribers in
over 190 countries enjoying more than 125 million hours of TV shows and movies per day.
Netflix is set to face a series of new competitors ranging from tech giant Apple to
conglomerates like Disney and AT&T's WarnerMedia launching their own streaming
services in the coming year.
• The company is continuously growing the target for subscribers will be going from 15.5
million to 16.3 million in US. Netflix plans to feature approximately 700 original TV shows
and movies in 2019. The company's international streaming revenue grew over 58% last
year, according to latest filings. Netflix’s streaming business in India is expected to generate
$7.6billion of sales this year. Their 2018 Annual Report provides details of their increasing
corporate revenue: a 78% increase in revenue to $272.2 billion for net profit of $6.5 billion.
§ Netflix has been increasing its emphasis on the India market, which has turned out to be a
lucrative content hub for the streaming giant. It has commissioned around 12 original series
and 20 original local language films in the country so far. The firm is reportedly expected to
double its employee headcount in the country in the coming months. The Annual Report
states that the customer satisfaction rating has reached "an all-time high of 95%" Also, "9 out
of 10 customers said they were so satisfied with the service that they were willing to pitch it
to family and friends."
§ Netflix are creating original programming, developing native language content and fine-
tuning their pricing strategies to achieve the realistic goals. Netflix has signed a strategic
partnership with direct-to-home player Tata Sky that will enable subscribers of both the
services easily access Netflix catalogue through future Tata Sky platforms. In the coming
years, Netflix has to stay on its toes. Competition in OTT sector, which is slated to surpass $5
billion by 2023, will become even stiffer. In addition to rivals Amazon Prime Video and
Hotstar, new behemoth entrants like Disney and Apple could also come fighting for a piece
of the streaming pie.
§ Netflix is testing a mobile-only subscription with select users in India. Netflix ended 2018
with 139.3 million paid subscribers, of which 80.8 million come from International markets.
Netflix will be spending $1 billion this year on technology and $9.2 billion on content. The
company will also be spending on specialised servers that can speed up the internet with
focus on the personalisation AI too. End of 2019 the estimated target presented revenue of
7.67 billion dollars with an increase of 22% year on year. Between changing deals, creating
shows, and burning through cash, 2019 is shaping up to be a challenging year for the
streaming giant.

2.2 SWOT Analysis

STRENGTHS:

1. Brand Name
Netflix has become the sole brand name for online streaming content with a share price
increase of over 6000% since 2008 (Bradshaw and Bond, 2018).
2. Large customer base
Through serving 190 countries, Netflix has access to over 130+ million subscribers. This
strength gives the company bargaining power when in talks with studios to secure exclusive
content (Bradshaw and Bond, 2018)
3. Original content
Through careful acquisitions, Netflix have secured numerous original shows that have
appealed to audiences. In 2018, two Netflix shows gained such popularity, that they have
pushed subscribers from 83m to over 100m in one quarter (Bradshaw, 2018).

WEAKNESSES:

1. Cost of original content


While its original content creates a competitive advantage for the company, the cost
continues to grow to support this content. In 2019, it is expected for Netflix to invest $8.2bn
solely on securing original content rights (Bradshaw, 2018).
2. Lack of rights to original content
Unlike many traditional television studios, Netflix does not own most of their original
programming. Due to this, usually rights expire after a year and the original content can be
shown on rival services
3. Environmental cost
Netflix has been ranked 'D' in terms of environmental awareness. This has garnered bad
publicity for the company as rival competitors Amazon and Facebook use over 40%
renewable energy with their services (Lewis, 2017)
OPPORTUNITIES:

1. Expansion into China


Difficulties with licensing, has left Netflix unable to enter China through traditional means.
The company must find a 'joint-venture' to capitalize on the 540m Chinese users who
currently stream media content (Russell, 2017),
2. Partnerships in Europe
To meet new European laws, Netflix can partner with the BBC and Canal Plus to gain access
to a wealth of native-language European content and grow customers in local markets
(Murgia, 2017).
3. Grow user-count in India
Netflix has made its fastest investment in India compared to any other market since its entry
and has said the country has potential for over 100 million members in the future.
4. Growth of technology
With the growth of VR and 4K UHD content, Netflix has new ways to allow customers to
access their content and provide further competitive advantages.
5. Region specific content
A growing market for content is foreign-language programming. Partnerships with local-
language content will curb traditional criticism that US-based streaming services only offer
English-speaking content.

THREATS:

1. Increased competition
Facebook is the latest to try and take on traditional media by launching its own original
content. Amazon, Hulu, HBO, YouTube are all competing for audiences to subscribe to their
platforms. For Netflix, this will continue to develop as more companies seek to buy the latest
'original content' exclusively for their platform (Kuchler & Bond, 2017).
2. Digital piracy
For more than 30 content providers (including Netflix), piracy has led to 5.4bn downloads of
media content in 2016 alone. This threatens the whole of Netflix's business model and ability
to fund content in the future (Opam, 2017)
CHAPTER-3

Structure of Organisation

Netflix has a flat, organizational circle structure where employees are given more freedom and
responsibility than those at other companies. Netflix avoids top-down decision making and seeking
management approval for everything. These practices are characteristic of a traditional bureaucratic
organizational structure. Instead, the company values high employee performance and excellent
work. Netflix doesn’t support keeping “B level” employees. So even though Netflix may have a
flexible organizational structure, there is a trade-off between freedom and stability that employees
face. The verticals and horizontals are:
CEO Reed Hastings meets with a group of people called the “R-staff”. They directly report to him
and meet monthly. Under the “R-staff” are the “E-staff”, or executive staff who oversee various
teams within the company, each with their own particular focus like platform engineering, regional
marketing, and content.

Co-Founder & CEO

Chief Marketing Chief Service and


Chief Product Officer
Officer DVD Operations
Officer

Chief Content Chief Financial


Secretary & General Chief Talent Officer
Officer Officer
Counsel

E- TEAM
CHAPTER-4
Interpretation of Logo

Ø The current logo of the Netflix, which was created in 2014, uses it’s trademark red colour as
the font’s colour with a semi-circle curve on the bottom.

Ø The use of Hollywood red font in the Netflix logo displays the brand’s ability to stand out
from its competition, creating a new brand identity.

Ø The core visual metaphor for the logo was a stack, conveying two ideas that are crucial for
the Netflix service: an infinite catalogue and custom-curated selections.

Ø With an increase of users viewing on smaller devices, the Netflix logo has come out as
simple, versatile and distinct, providing it the fresher look for their demographic shift to
younger generation. The organisation has launched a short version (small sized alternative)
for the logo in form of new letter emblem consisting of a solitary “N”, where the full
woodmark did not work well.

Ø The Netflix has used ethos and logos more in their current logo to easily brand & easily
marketable, to attract their viewers.

Ø Netflix approach of making its logo look more like a network or production company than a
simple movie distributor, gives them more credibility as a creator.
CHAPTER-5

5.1. Job Advertisement

The Editorial team at Netflix is on the pulse of conversation among our consumers not just listening,
but participating in and starting thoughtful, hilarious, exciting discussion with fans. Though part of
the larger marketing organization, this team work is unique in that we express a firm perspective on
content in the way a traditional media outlet would.

As our slate of content continues to grow, we’re looking for an experienced digital video expert to
help us expand, define, and strategize around video on YouTube, as well as on other social platforms
(primarily Facebook and Instagram).

Brand and Editorial Manager

Job Title: Brand & Editorial Manager


Number of Positions: 1
Country: United States of America
Category/Department: Marketing/PR
Level of Education: Graduate Degree with specialization in Feature Content Development
Years of Experience: 0-3 years
Application Date: 18/03/2019

Position Description
To be a successful brand & editorial manager in this role, you’ll need to have excellent judgment to
balance the needs of the community and the needs of our business. You’ll not only be thinking
through new ways to talk about Netflix content thru video, but also larger cultural moments and
trends that shape conversation for our audience. Experience overseeing video creative and
production is a must; as well as the ability to strategize, ideate, explore new video opportunities
across platforms, and to work across departments and build consensus within a large organization.

Position Requirements and Offer Details


Key responsibilities:
i. Develop and oversee execution of video content for the Netflix YouTube channel
ii. Create and advance long-term strategy to move our presence on YouTube forward whether
that’s through the existing channels, or creating new ones
iii. Work on strategy and execution for video across Netflix Facebook and Instagram
iv. Work with Audience Development team to meet ambitious growth goals without
compromising creative integrity
v. Manage a team of freelance writers, video producers, agencies and production companies
vi. Build relationships within and outside Netflix to increase the access and credibility of Netflix
editorial video channels
vii. Work closely with our cross-functional partners (publicity, creative marketing, and content
team) to advocate making platform-specific video content
viii. Build and manage budgets
ix. Stay on top of YouTube and other social video trends, timely events, and upcoming title
launches to seize on reactive opportunities
x. Regularly interact with talent, PR reps, and press to build understanding and trust
xi. Be experimental with content, take risks with what you’re creating, be ambitious and
original.

Salary package shall be as per Industry Standards.

5.2. KSA Tabulation and Job-Fit Analysis

• Qualification Ø Graduate
KNOWLEDGE (Essential) Ø Seasoned expert in digital landscape

• Experience (Specific) Ø 0-3 years

• Conceptual ü Ability to tell an engaging, cohesive


story through video content, Strong
global IQ, platform best practices,
and consumer behaviour
SKILL
• Technical ü Solid understanding of marketing
and social media analytics, YouTube
content creation

• Human resources ü Working directly with talent and


talent representation, Clear &
effective communication,
comfortable working with teams
from different regional markets
• Affectiveness (Values) v Respect and understanding for
Netflix culture, High tolerance for
change

ATTITUDE • Behavourial
(Personality) v Strong presenter; confident and
collected - and great with talent,
Creative, risk taker

• Perceptual (Cognitive) v Strong perspective with flexibility to


pivot when new information is
presented, data-centric approach to
the testing and optimization of
content

The position vacancy is the case of ability job-fit as the hired candidate must have the ability to
build and lead a team, as well as create content and think strategically.
CHAPTER-6

Motivational Techniques Adopted

Various techniques have been employed by the organization for employees, few include:

• Good basic remuneration package


• High-performance workplace
• Preference options for equity compensation
• No vesting schedule
Attracting • Innovative and impressive recruiting process
Employees • Self regulating environment

• Standard paid-time-off policy-Unlimited vacation


• Eliminating the formal policy and forgoing expense account
• Job chat sessions every quarter
• Self monitoring excercises
• Unlimited maternity and paternity leaves
Retaining • Tackling tough challenges alongside great colleagues
Employees • Transparent feedback exercises

• Performance management culture


• Informal 360-degree review system
• Generous severance package for outstanding performers
High Performance • Strategic workforce planning
Teams
CHAPTER-7

Leadership Approach and Style

Reed Hastings is an American


entrepreneur, cofounder and current
CEO of the media rental service
Netflix. In 1997, Hastings had the idea
of a subscription-based movie-rental
service (after incurring a large late fee
when he failed to return a store-rented
videocassette); he and business partner
Netflix CEO & Co-Founder Reed Hastings Marc Randolph incorporated Netflix
in California in 1997 and started mail-
order DVD operations in 1998.
For Reed Hastings transformational leadership, creative
intelligence and reciprocity come together to best describe his
Hastings is a leader that prides himself
leadership abilities. Hastings’ approach to personal time off,
on making few decisions; his aim is to
travel policies, formal reviews and compensation packages
allow his employees to take ownership
are far from the mainstream (and often tiresome) Corporate
of generating new products and
America practices.
initiatives.


Hastings empowers his workforce, believes they are sophisticated enough to manage an
autonomous-driven work environment and will ultimately do what is right for Netflix, themselves as
employees and their families. To reinvent the company’s human resource policies so radically can be
viewed as a testament to Hastings creative intelligence and transformational leadership abilities.
Hastings believes that creating a company culture at Netflix centered on traditional corporate
practices would not work and negatively impact motivation, attitudes, behavior and performance.
The positive company culture created by Hastings has fostered reciprocity where employees feel
obligated to repay the company by performing well. Today the company culture and their
performance are well revered.

Netflix was a transformational pioneer as seen with its initial mail-order DVD service (surpassing
the likes of Blockbuster). Hastings’ ability to see a need, design a plan and introduce it to the
market-place again remains testament to his creative intelligence and transformational abilities as a
leader.

In the end Hastings mindset and actions help support the validity in Transformational Leadership,
Triarchic Theory of Intelligence and Cialdini’s Social Influence/Reciprocity.
REFERENCES

1. https://jobs.netflix.com/culture

2. https://hbr.org/2014/01/how-netflix-reinvented-hr

3. https://blog.psionline.com/7-aspects-of-netflixs-company-culture-that-youll-want-to-copy

4. https://qz-com.cdn.ampproject.org/v/s/qz.com/work/1439451/the-seven-ways-netflix-culture-
sounds-like-your-worst-work-nightmare/

5. http://community.mis.temple.edu/mis4596sec003s18/2018/02/19/netflix-chill-organizational-
structure/

6. https://www.inc.com/ryan-jenkins/this-is-how-netflix-built-a-culture-of-highly-motivated-
employees.html

7. https://1000logos.net/netflix-logo/

8. https://wra360netflix.weebly.com/netflix-logo.html

9. https://www-forbes-
com.cdn.ampproject.org/v/s/www.forbes.com/sites/greatspeculations/2017/04/20/a-closer-look-at-
netflixs-content-strategy/

10. https://www.netflixinvestor.com/ir-overview/long-term-view/default.aspx

11. https://brand.netflix.com/en/assets/

12. https://www-marketwatch-com.cdn.ampproject.org/v/s/www.marketwatch.com/

13. https://www.businessinsider.in/

14. https://www.nytimes.com/2019/

15. https://m.economictimes.com/tech/internet/
APPENDIX – Interview with Employee of Netflix

1) Are policies and organization structure in your organization clearly defined?

Yes, definitely when it comes to Netflix then we all have only one thing in mind “becoming best
global entertainment distribution service in the world”. The organization structure of Netflix, itself
provides the best knowledge flow path from higher level to lower level and wherever we require any
consensus on decision then the structure in itself provides us the best communication channel to
present our views, ideas and merit directly to the decision taking management.

2) Does your organization reward its employees in proportion to the excellence of their job
performance?

Rewarding with higher packages to high performing employees is an important intrinsic part of the
employee motivation cycle in Netflix with aim to create team of stars, that can produce only the
excellence, although sometimes it's harsh on psychological level especially with the regular 'Keepers
Test'.

3) Does a friendly atmosphere prevail among the employees in your organization?

I have been working there for last 14 Months and I never came across any negative argument or
skirmish with any of my colleagues. The thing is when you all have one shared goal in mind then
chances of animosity in itself dissolves and team building happened on its own.

4) Does your organization give freedom to its employees to plan, decide, and act in one’s
own sphere?

This is the thing for which one definitely gives credit to the top management and work culture of
Netflix. Self-monitoring exercises under a self-monitoring environment gives you space and channel
to present you work and values according to your own comfort and this idea of 'freedom and
responsibility of an adultlike' that Netflix is implementing promotes independent decision-making
attitude.
5) Do you feel encouraged by your organization for innovative approaches in solving
problems and conveying ideas to your superiors?

I have never faced such type of situation till now as I have already mentioned we all have one
common goal in mind and when everyone is working for it then it does not matter from where the
innovation is coming in the hierarchy if it is for the benefit of our shareholders and stake holders
then definitely it is going to pass by the board but for any idea to culminate brain storming is must
and we all appreciate the lacunae finding if any before implementing any decision.

6) Has your organization an effective way of getting relevant feedback and critical
information for corrective action?

Yes, constructive feedback - up, down and across the organization - on a continual basis is prevalent.
Here we are responsible for our own MBOs and the first rating is done by the employee itself on the
scale of 1 to 10 then it will move to the higher authority with one on one communication about your
contribution and how could have done it better for your own improvement and for the Netflix.

7) Are senior people based on their age and service, recognized by your organization?

Age has never been a criterion in the Netflix we respect the experience and dynamism on the same
scale and you will find people from age all group in our organization throughout the hierarchy and
the most interesting thing is here you will find most of the time the young manger prefers to share
his or her quality time with the most experienced member in the organization and their valuable
inputs definitely makes a huge difference when it comes to competition and Netflix never hesitates
to give them the recognition and share of pie they deserve.

8) Is your organization assisting the development of your skills, thereby advance in the
organization?

We have continuous training program throughout the year on various technical and managerial skills
for the all-round development of an employee and to tackle the current challenges in this cut throat
competition and tacitly develop you for the next level roles.
9) Does your organization make decisions, keeping in mind the good of the employees and
society?

Charity begins from home and to start with Netflix assumes that employee is a part of society and
while taking any decision our organization takes complete cognizance of each and every shareholder
interest in mind.

10) Does there exist a cordial relationship between the union and management in your
organization?

There is no such union’s existence in Netflix but as I have expressed in earlier question that we all
share a very congenial relationship with our juniors as well as with our seniors and there is a proper
channel in place for everyone to communicate throughout the hierarchy.

11) Do organization employees have a feeling that they are motivated and a feeling of
satisfaction?

As an individual I am loving my Job and each day is a new challenge for me and that is the biggest
source of motivation for me to work with Netflix India. And as a whole I would like to say my
whole team is looking motivated otherwise such type of consumer expansion in such a short span of
time and in a diverse country like India is not possible with an unsatisfied and demotivated
workforce.

Das könnte Ihnen auch gefallen