ORG 525 PORTFOLIO PROJECT - OPTION ONE - FINAL DRAFT.docx - Running head PORTFOLIO PROJECT \u2013 OPTION 1 NETFLIX\u2019S FLAWED DEC Portfolio Project \u2013

ORG 525 PORTFOLIO PROJECT - OPTION ONE - FINAL DRAFT.docx -...

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Running head: PORTFOLIO PROJECT – OPTION 1: NETFLIX’S FLAWED DEC 1 Portfolio Project – Option 1: Netflix’s Flawed Decision Making Shayne Cumine ORG 525 – Decision Theory in a Global Marketplace Colorado State University – Global Campus Dr. Cedric Alford June 5, 2020
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PORTFOLIO PROJECT – OPTION 1: NETFLIX’S FLAWED DEC 2 Portfolio Project – Option 1: Netflix’s Flawed Decision Making A good leader is able to identify and research alternative decisions by utilizing a robust and data driven decision-making process, making the best decision based on the data available. Organizations will inevitably benefit from good leaders who make informed decisions, as those decisions are more likely to have a positive impact on the organization. Making decisions based on data and facts is a hallmark of a good leader that believes in a methodical decision making process. By utilizing a robust and data driven decision making process, a good leader is able to identify and research alternative decisions, making the best decision based on the data available. Organizations will inevitably benefit from good leaders who make informed decisions, as those decisions are more likely to have a positive impact on the organization. In 2011, Netflix Inc. (Netflix) was a business that was experiencing substantial growth and decided to split its streaming and DVD businesses into to two separate companies The decision yielded disastrous results for the company and its customers due to a decision making process that failed to adequately understand the needs of the organization and the customers of the organization. As a result, Netflix suffered significant losses in earnings, stock value, and subscribership from which it took several years to recover. This paper will provide a background of the Netflix case, and examine how Netflix came to its decision. Further, this paper will examine the effects on the business of Netflix and the ramifications that its customers experienced as a result. Additionally, this paper will evaluate the decision making process of Netflix and identify the failures of the decision making process utilized. Finally, this paper will offer recommendations as to how Netflix and similar companies can avoid a similar decision making folly. Background of the Netflix Case
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PORTFOLIO PROJECT – OPTION 1: NETFLIX’S FLAWED DEC 3 In 2011, Netflix was offering customers a unique value – the ability to receive DVD rentals via mail and the ability to stream an online catalog of movies and shows for only $10 a month, it was a one stop shop for the entertainment needs of its customers. Further, Netflix was experiencing a boon in its subscribership, by the end of 2011, Netflix had 24.4 million subscribers, increasing subscribership 250 percent from its 9.3 million in 2008 (Hunger, Wheelen, Hoffman, & Bamford, 2015). Netflix had a competitive advantage over its nearest competitor in home entertainment, Blockbuster, as it was able to offer streaming services and reach customers that Blockbuster, a traditional brick and mortar store, simply could not compete against (Hunger, Wheelen, Hoffman, & Bamford, 2015).
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