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Netflix: Freedom and Responsibility

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Netflix: Freedom and Responsibility

Question 1: What Can you infer about the business strategy and the organizational

culture?

Netflix organizational culture is based on a philosophy that values people and

addresses the needs of ensuring that it is effective and profitable processes through its human

resources. The case study's information makes different influences concerning its

organizational culture. For instance, the corporate culture emphasizes responsibility, which

gives a clear identification of its autonomous and decentralized work environment where

employees have freedom and are trusted to make their own decisions (Anderson, 2019). Also,

it has work policies that allow the employees to do anything, including going on vacations,

but making sure they stick to what they agreed with their managers. Netflix organizational

culture gives compensation and rewards employees, and it also has a flexible work and work-

life balance. It has innovative strategies, and it is present globally with many subscribers from

different parts of the world. Looking at the types of organizational structures that are present

in organizations, Netflix has an organizational hierarchy that focuses more on decision-

making.

Question 2: The External Pressures that Netflix faces

Netflix is undergoing the pressure of new competition, especially in streaming, which

is weighing on Netflix, and it needs to invest heavily in content so as to increase its base of

subscribers. Just like many other companies, Netflix is being challenged by consumer

expectations, and the pressure is on how to make the demand for high-quality streaming

experiences. However, giving out streaming or content that is more exclusive is very

expensive, and therefore, Netflix has to deal with the production and acquisition costs

(Kovach, 2020). Lastly, after producing this content, they have to protect it against copyright

issues, and dealing with this is a great challenge to them, mainly since they deal with
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different countries and the regulations vary depending on the speed of the content. All these

challenges and pressures limit Netflix from operating effectively in different markets.

Question 3: Deciding whether I think the compensation strategy of Netflix fits its

business strategy, external pressures, and organizational culture

Netflix offers a great offer of stock options and based salary on their compensation,

which helps the consumers to decide on how much the compensation is in stock or cash. The

compensation strategy of Netflix fits the business strategy because their work focuses on

innovative strategies, and this helps employees to be creative and work within the aim of the

company (Netflix, 2020). Also, Netflix fits its external pressures, which is a good way of

retaining and attracting employers who have skills and our top talent in the streaming

industry. Lastly, it fits its organizational culture through the emphasis on employees having

responsibility and freedom where they can make their own decisions. Netflix ideas align with

the culture, and the external pressures of Netflix show commitments to their employees'

interests and the customer's demands while working on the long-term success of the

company.

Question 4. How would you change Compensation at Netflix

Despite the fact that Netflix has its core principles of compensation strategies of

offering responsibility and freedom to its employees, I would change in allowing great

flexibility in the rewards and accommodation of the employee needs, including the wellness

programs and employee giving programs. Netflix is staying in contact with its values, and

therefore, It should have more transparency in its activities and its compensation ideas, and

creating equality and fairness in the payments would be a better idea. To get top talents and

higher people with high skills, there should be career Development programs to help them

grow and desire to provide long-term benefits to the company. Generally, Netflix is capable
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of doing its best by providing fair and inclusive benefits, which allow its employees to focus

on their roles at Netflix. At the same time, they commute and seek to understand it more.
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References

Anderson, D. (2019, October 20). Netflix Inc.'s Organizational Culture & Its Strategic

Implications - Rancord Society. Record Society. https://www.rancord.org/netflix-inc-

organizational-culture-hrm-strategic-implications

Kovach, S. (2020, January 22). Netflix is feeling the pressure of the streaming wars. CNBC.

https://www.cnbc.com/2020/01/22/netflix-is-feeling-the-pressure-of-the-streaming-

wars.html

Netflix. (2020). Work-Life Philosophy. Netflix.com. https://jobs.netflix.com/work-life-

philosophy