Failure Analysis Strategy Change Essay Example for Free

unsuccessful person depth psychology dodge Change EssayMovies engender al flairs been a past time enjoyed by many. As the technology continues to grow, many video stores ar going out of business and digital or online films are rising in popularity. blockbuster Video and Netflix are businesses that have been affected by these changes. Blockbuster undetermined in 1985 with the mission avowal of Our corporate mission is to provide our customers with the most convenient access to media entertainment, including movie and game entertainment delivered through multiple distribution channels such as our stores, by mail, trade and kiosks, online and at home. We believe Blockbuster offers customers a value-prices entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience (Farfan, 2010).Blockbuster continued with the vision statement of At Blockbuster, 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 more than 7,400 stores worldwide and as soundly operated through 1,600 franchise stores. As technology started to change, customers began streaming movies from the cyberspace as well as using kiosks, such as Redbox, for movie rentals. argument became a large factor in Blockbuster and the failing of the order, but a large berth of the failure was due to manage changes and misunderstanding of the business as a whole (Dunston, 2014).Blockbuster FailureIn 2006 and 2007, Blockbuster was draw neared by the chief operating officer of Netflix, Reed Hastings, asking them to acquire Netflix. Hastings k sensitive that Netflix had non suppose a visualise to stop Blockbuster from stealing their customers, at the rate of a million per year. Blockbuster decided that the party did nonneed Netflix because Blockbuster had a stronger and larger growth, but then a change t hat was never expected happened. A new CEO was named for Blockbuster after a boardroom dispute. 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 meshing childbeds that had been in place for Blockbuster. Within 18 months, 85% of the capital value of the company had been lost inside in 2 years, it was completely gone (Dunston, 2014). NetflixNetflix views themselves as freedom of on-demand and the fun of indulgent viewing (Netflix, 2014). Netflix also focuses 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 industry (Halal, 2010).Netflix executives understood that the emerging technology was rapidly changing the delivery of movie rentals. CEO, Hastings, developed strategies involving Internet st reaming, convenient customer redevelopment, and the virtual organization 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 successful business, so Hastings used a monthly subscription to allow customers to have access to unlimited 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 modify 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 segment contribution profit targets, shows that the company wants the best for the co mpany as well as their customers (Netflix, 2014). NetFlix Organizational TheoriesIn reading many articles online intimately the success of NETFLIX the two organizational behavior theories that have been seen 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 genuine in-store purchases like Blockbuster, has located 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 output process and integrated the drive in developing new adaptive capacities and innovation. Blockbusters organization theory of scientific leadership placed 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 creative th inker 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 instilled in their managers the counselling style of Context, not Control (Siegler), implying that very little control is given to employees, rather employees are held trusty for their actions and are expected to work effectively and independently. Because of this idealists approach to management and how successful the company has been with it, they have entrap that they have no need to change their management style yet.Organizational value within Netflix has been on promot ing the stunning colleagues (Netflix.com, 2014), and their importance in a great workplace. They have 9 values that they show is precedency number 1 at Netflix, judgment, impact, curiosity, innovation, courage, passion, honesty and selflessness (Siegler). The basic values that they believe as a company are workplace efficiency, emphasis on effective over effort, management best practices, computer memory 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 atomic number 82 Organizational ChangeAs the CEO of Blockbuster it is my responsibility to evaluate 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 effo rt to be involved. As the CEO I result 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 John Kotters 8 step plan for change. John Kotters 8 steps are establishing a sense of urgency, forming a powerful command 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 keep 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 spend in new internet technologies and streaming services. We will align ourselv es with major motion picture studios to run into that we get the newest movies and offer our customers the best services possible. Upper management will actively seek new opportunities and new world markets to expand our services. All employees will be encouraged to provide new ideas and second-rater will not be accepted. Every 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). Company Mission Statements blast List of WorldsLargest Retail Missions. Retrieved from www.retailindustry.about.comHalal, Bill (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 Saddle River, NJ Prentice HallNetflix Long Term Vie w (2014). Retrieved from http//ir.netflix.comNetflix copestone and Final Report (2014). Retrieved on January 7, 2014. http//mgmtclarity.files.wordpress.com/2010/04/capstone_final_report.pdf