Failure Analysis Strategy Change Essay

Movies bemuse always been a sometime(prenominal) time enjoyed by manhoody. As the technology continues to grow, many video depots atomic number 18 going out of argument and digital or online movies are ascension in popularity. megahit Video and Netflix are businesses that have been affected by these salmagundis. smash hit opened in 1985 with the agency statement of Our corporate bang is to turn in our customers with the most convenient access to media pastime, including movie and game entertainment delivered through multiple distribution channels such as our gillyflowers, by mail, vending and kiosks, online and at home. We believe megahit conjures customers a value-prices entertainment experience, combine the broad product depth of a specialty retailer with local anaesthetic neighborhood convenience (Farfan, 2010). smash hit continued with the vision statement of At megahit, diversity means valuing differences. Its corporate value that must be continually developed , embraced, and incorporated into the way we do business (Farfan, 2010). Blockbuster operated with much than 7,400 stores worldwide and also operated through 1,600 franchise stores. As technology conk outed to change, customers began be adrift movies from the Internet as wholesome as using kiosks, such as Redbox, for movie rentals. Competition became a large factor in Blockbuster and the failing of the play along, but a large part of the failure was referable to manage changes and misunderstanding of the business as a whole (Dunston, 2014).Blockbuster FailureIn 2006 and 2007, Blockbuster was approached by the chief operating officer of Netflix, Reed battle of battle of Hastings, communicate them to acquire Netflix. Hastings k natural that Netflix had not formulated a plan to give way Blockbuster from stealing their customers, at the rate of a million per year. Blockbuster decided that the company did notneed Netflix because Blockbuster had a stronger and bigger growth, but t hen a change that was never expected happened. A new CEO was named for Blockbuster after a boardroom dis put ine. The man appointed CEO didnt fully understand the business and what Blockbuster needed in order to remain above the competition, especially Netflix. The CEO started changing plans for the company and however pulled out the Internet efforts that had been in aspire for Blockbuster. Within 18 months, 85% of the capital value of the company had been lost at bottom in 2 years, it was completely gone (Dunston, 2014). NetflixNetflix views themselves as exemption of on-demand and the fun of indulgent viewing (Netflix, 2014). Netflix also sharpenes on the convenience of the no-hassle, online cancellation and offer movies and TV series network. Technology and good leadership is how Netflix became the leader in the sedulousness (Halal, 2010).Netflix executives understood that the emerging technology was rapidly changing the voice communication of movie rentals. CEO, Hastings, developed strategies involving Internet streaming, convenient customer service, and the practical(prenominal) geological formation to deliver it cheaply and flawlessly (Halal, 2010). Another part of Netflixs technology strategy was to avoid the burden of having to go to a video store for customers. Customer service is key to a triumphful business, so Hastings used a monthly subscription to allow customers to have access to straight-out rentals, including no late fees. Instead of the hassle of renting movies, the focus is providing convenience.With the mission statement and vision of Our core strategy is to grow our streaming subscription business domestically and globally. We are continually improving the customer experience, with a focus on expanding our streaming content, enhancing our user interface and extending our streaming service to even more Internet-connected devices, while staying within the parameters of our consolidated net income and operating piece contribution profit targets, shows that the company wants the scoop out(p) for the company as well as their customers (Netflix, 2014). NetFlix Organizational TheoriesIn reading many articles online about the success of NETFLIX the two organizational behavior theories that have been estimaten in this company have been decision-making and system approaches. Netflixs huge decision to become a virtual DVD rental via online instead of going to actual in-store purchases like Blockbuster, has fit(p) them at the top of the food chain. The technological advances alone for Netflix has change the industry forever, they took the systems approach by understanding the companys input and sidetrack process and integrated the drive in developing new adaptational capacities and innovation. Blockbusters organization theory of scientific leadership move a great deal into how the company ran its in store business and how the objectives and decisions were placed within the company. If Blockbuster could focus more on the click feature like how Netflix did, and not dismiss the idea that it would be a revolutionary change in the industry and within Blockbusters stockholders.Roles of leadership and ManagementPer Netflix (2014) it has a functional organizational structure, which aims at its functions themselves, rather than by customer segments or regions. They have a CEO Reed Hastings has 6 departments that have managers within them that run it. The organization beyond those 6 managers is not as structured as the top echelon is, they run their departments as they see fit. The CEO has in quietened in their managers the management style of Context, not construe (Siegler), implying that very little control is given to employees, rather employees are held trusty for their actions and are expected to work efficiently and independently. Because of this idealists approach to management and how made the company has been with it, they have found that they have no need to change their management style yet.Organizational value within Netflix has been on promoting the stun mates (Netflix.com, 2014), and their importance in a great workplace. They have 9 value that they show is priority number 1 at Netflix, judgment, impact, curiosity, innovation, courage, passion, honesty and self-sacrifice (Siegler). The basic values that they believe as a company are workplace efficiency, emphasis on effective over effort, management best practices, retention practices, and large emphasis on a large salary, rather than stock options and bonuses. They believe that thiscreates an environment that promotes productivity, and efficient work environment, which shows in colleague retention and overall happiness at Netflix.Part 2 hint Organizational ChangeAs the CEO of Blockbuster it is my responsibility to valuate the organizations structure as well as the power and political issues within the company. The CEO can be disconnected to what is going on at the operations level of the company if he or she does not put forth the effort to be involved. As the CEO I go forth be involved in the operations of the company and be a leader employees can look up to. To implement the organizations change I will use a strategy based on nates Kotters 8 step plan for change. John Kotters 8 steps are establishing a sense of urgency, forming a powerful point coalition, creating a vision, communicating the vision, empowering others to act on the vision, planning for and creating short-term wins, consolidating improvements and producing still more changes, institutionalizing new approaches(Mintzberg, Lampel, Quinn 2003).As the CEO of blockbuster I see that technology is changing and we must carry up. If we do not keep up with the technological advances we are doomed to fail. I see the company as a technology company and not just a movie rental company. I do not want Blockbuster to just survive, I want Blockbuster to thrive. Blockbuster will start investing in new internet technologies and streaming services. We will queue up ourselves with major motion picture studios to ensure that we get the newest movies and offer our customers the best services possible. speed management will actively seek new opportunities and new world markets to expand our services. All employees will be encourage to provide new ideas and mediocrity will not be accepted. any aspect of the company will be evaluated and our services will provide our customers with the greatest movie streaming value.ReferenceDunston, Dain (2014). When Blockbuster Forgot What Business They Were In. Retrieved from www.daindunston.comFarfan, Barbara (2010). alliance Mission Statements Complete List of WorldsLargest Retail Missions. Retrieved from www.retailindustry.about.comHalal, buck (2010). How Netflix Beat Blockbuster An Exemplar of Emerging Technologies. Retrieved from www.billhalal.comMintzberg, H., Lampel, J., & Quinn, J. B. (2003). The Strategy Process Concepts, Contexts, Cases (4th ed.). Upper Sa ddle River, NJ Prentice HallNetflix Long Term inspect (2014). Retrieved from http//ir.netflix.comNetflix Capstone and Final Report (2014). Retrieved on January 7, 2014. http//mgmtclarity.files.wordpress.com/2010/04/capstone_final_report.pdf