Critical evaluation of present management practice



Here is Your Sample Download Sample 📩

For any multinational business organization, effective management practice is the key factor to the success of the company. The robust management practice helps to manage and control business and organizational operations more efficiently. Proper management practice and teams of skilled employees play a hugely important role in the organizational development, company's performance, and productivity to achieve the organizational goals in the long term. To maximize the quality of work and increase the efficiency of the management, positive work culture, encouragement and expert training are the main three pillars on the road to success (Kmecová, 2018). To smoothly run the operation of a company both the management and the leaders are required to team up and solve the potential organizational issues, management conflicts, and business challenges for a better outcome (Jooss et al. 2021). Following different business models, operational methods, and corporate expertise, good management and leaders introduce new innovative ideas, strategic strategies, and planning to meet the short-term objectives and daily required tasks to meet the long-term organizational vision. Netflix is one of the biggest and most popular OTT platforms that is massively expanding its digital content business in different corners of the world. The CEO of the company ‘Reed Hastings' is also the founder of the company and has developed effective business innovation and efficient management practices to grow the brand value of Netflix (Hidayati, 2022). The main vision of the CEO is to offer the best original content to its global customer at a competitive price range. Netflix is known for its great team-building process since it developed the Tuckman model of team building in its management practice. 

Task 1 - Netflix management practice 

According to Fagerjord and Kueng, (2019), the global brand value of Netflix has immensely expanded as the largest and most popular streaming platform among all the OTT and digital content platforms. The company was founded by two partners Reed Hastings and Marc Randolph in 1997 to offer the best entertainment content to its potential customers through a subscription business model. Over time the company changed its business strategies and business models to develop a group of expert management employees to meet its long-term organizational vision (, 2022). The company followed and implemented professional management practices to accelerate its performance and grow financially in the competitive market of the entertainment industry. 

Mission and vision of Netflix 

As per Aib et al. (2021), the main focus and organizational mission of Netflix are to expand its business market and maximize the business opportunities in the online entertainment industry. The vision of the management of the company is to increase the organizational performance to cope with the changing preferences and growing market opportunities in the digital content industry with creative business strategies and planning (Maharani, 2021). To meet the expectations of its customers and meet the demand of the market the company aims to provide the best customer experience, original content opportunities, and a smooth online interface to satisfy the needs of its customers. 

Improving the lives of customers:  

According to Huang et al. (2021), Netflix is highly committed to its customer's satisfaction and entertainment experience. The company aims to improve the quality of entertainment consumption and the lives of their customer. The company has positively balanced its customer expectations as well as the content variation to diversify its operations and market needs at a positive level (Van Veldhoven and Vanthienen, 2019). Netflix believes in offering high-quality original content to offer never like before experience to its online subscribers.  

World-class entertainment

To maximize the reputation and brand value for a long time in the competitive business market Netflix always aimed to deliver world-class entertainment video content in different gerners to get different types of viewers. AUDITYA and Hidayat, (2018), stated that Netflix always made sure to provide best-in-class documentaries, movies, TV shows, web series, and other short video content to entertain its customers and keep them connected with the digital family (Kumar, 2018). The interface Netflix also supports customized interfaces for the different tastes and preferences of their different age viewers. Netflix always tries to make sure that their critical content does not reach the kids that is why they also offer different video content spaces for adults and kids which are highly beneficial to keep them attached to high-quality content (Onyusheva and Baker, 2021). 

International dominance

Idiz et al. (2021) said that Netflix always focused to maximize its market share and market value in the global entertainment business market as it actively follows movie streaming operations to conduct business internationally. To dominate the international business market and get a higher number of customers Netflix offers a 3-month trial pack for their new users so they can come and enjoy their content for free and then convert their new visitors into loyal subscribers (Csalló, 2021). With the help of a strong digital network and smooth online servers, the company only improved its operational abilities to develop a sustainable business model as well as, met international content standards by ensuring proper CSR activities to increase its possible business markets. 

Exceeding expectations

The CEO of Netflix always mentioned their subscribers as one of the most vital shareholders and the main key to their success that is why the company never compromised its quality over quantity. According to Quico, (2019), Netflix is a global giant in the digital entertainment platform and the main reason is they focus on delivering interruption-free services, limitless high-quality digital content in different languages, and bringing content following the market preference and increasing need for particular genres.

Value of Netflix 

Fletcher and Nielsen, (2020), stated that Netflix fosters adds value to the entertainment lives of their customers to achieve their business goals on a global scale. Following the key factors of integrity, inclusion, expertise, collaboration and mutual respect, the management of the company has efficiently added value to the lives of their employees as well by giving them an encouraging and positive workspace. 

Effective communication

Guadiana, (2020) shared that by using the persuasive communication approach to interact with the employees more efficiently Netflix has successfully built a strong management structure where employees can directly connect with their leaders and higher authorities. Additionally, their effective communication abilities among the employees help them to connect with their customers and solve their service problems as soon as possible (Fouladirad et al. 2018). This put a huge positive impact on the relationship between the brand and its customers for a better service experience. 


According to Van der, (2018), Being a multinational company, Netflix has always been aware of various organizational challenges that may affect the performance of the business where the conflict in decision making is one of the critical among all of the issues. Even when Netflix wanted to shift its business from selling DVDs to offering online digital content on the internet several conflicts occurred in the decision making and organizational management change. Although due to future business vision and proper judgment the company successfully built an international identity by mitigating those conflicts (Alves, 2018). 

Integrity and Innovation

One of the biggest reasons behind the global success of Netflix is the loyalty of the company toward its customers. Netflix always avoids serious sentimental issues regarding cast, people, color, religion, and groups (Song, 2021). The originality of the company is one of the key success factors that positively helped them to provide innovative digital content as well as bring innovative business strategies to grow the international market. 

Management approach of Netflix 

As per the research of Raats and Evens, (2021), it has been found that Netflix follows an extraordinary management approach which helps them to develop innovative business strategies and influence the smooth performance and effectiveness of their business. The management of Netflix only hires those professional employees who are expert in their working field or has sufficient knowledge about advanced corporate working skills to contribute to the organizational goals (Lengyel, 2021). Because of a positive working environment, and friendly corporate culture, employees of the management are allowed to share their innovative ideas, strategies, and even essential issues directly with the leaders and higher authority. Lozic, (2021), stated that the CEO of Netflix often mentioned that they always motivate their employees to bring the best out of them to improve their productivity and creative thinking skills. Although, besides the encouraging working culture, Netflix follows a “No vacation policy” so their expert employees don’t get an interruption in the organizational development and work hard dedicated to meeting the organizational objectives [Referred to Appendix 1]. 

Task 2 - Primary business challenges for Netflix 

To bring advanced technological innovation and to improve just click way fast digital experience Netflix had to come across several ups and downs to adopt these developments. van Zeebroeck and Bughin, (2021), mentioned that currently the business and market share of Netflix in the global digital entertainment industry is the highest but over a period the company had faced several business and organizational challenges that slowed down its business market growth and put a negative impact on their organizational development speed. Before the services of Netflix people never witnessed original world-class entertainment content on an OTT platform. Since the company shifted its business from renting and selling DVD s to online streaming platforms on a subscription model, the company had to wait quite a long adopt new entertainment consumption practices through OTT platforms. Bughin et al. (2021), said that to maximize the quality of entertainment, Netflix even avoided any time of commercial advertisement that can interrupt the enjoyment of their customers. Although, being a new business in the online streaming industry, Netflix had to go through huge technical, non-technical, financial, and operational management issues in the initial stage of its business (, 2021). Even in the current business market when the global business of Netflix has successfully grown its brand at a huge large scale still it is facing huge business challenges due to increasing competition in the online streaming platforms. Fast-growing rival OTT platform such as Amazon Prime, HBO max, Hulu, and Disney + are massively increasing their international business and capturing a sufficient amount of market as they offer more variety of content, the same quality services at a lower price range (, 2021). This increasing completion not only led Netflix to struggle with decreasing international market share but also reduced their subscribers resulting in a potential loss in profitability. 

Managing Creativity: Creativity in the organization defines as the process of gathering something innovative and new to meet regular challenges by boosting the effectiveness and professional expertise in the operations. Creativity in thinking and operations helps to develop problem-solving abilities, and efficient decision-making skills and brings flexibility in the work. According to Burroughs, (2019), Netflix is known for its creative content and operational strategies to attract its viewers to its content. The company always try to do innovative experiments with the quality and the quantity of their digital content. However, often Netflix has been criticized for delivering quantity over quality to stay in the race of delivering the highest number of content available on a streaming platform. Even just like any other creator, Netflix also faced huge creative blocks in offering consistently high-quality content to its viewers (Kuosmanen, 2020). Lack of content creation and growing market competition led the company to focus on their quantity that followed them towards stereotype average entertainment platform affecting their primary business mission. McAndrew, (2021) mentioned advanced digitization, big data collection, analysis and A.I based algorithm which facilities Netflix to understand the demand and preferences of their customers and the market. As a result, the company started to focus on only those types of content that are high in demand and quite neglected their vision to deliver creative original content which was one of the primary reasons for their success factors. To compete in the competition over time the company has effectively reduced their subscription price for their customer but it also influence the content quality of their services since they started to provide quantities as well. 

Managing Decision making: The active collaboration between the management and leaders in the process of decision making has always helped Netflix to grab the market opportunities to increase its ability over customer acquisition and customer retention. As per Hadida et al. (2021), to increase the engagement with the customer and built a brand's recognition in the competitive business market in the last few years the number of contents on Netflix has massively increased compared to any other streaming platform (Larcker and Tayan, 2018). Amazon Prime is one of the main reasons for increasing business challenges for Netflix because it offers not only high-quality streaming content but also offers additional benefits to the customer who purchase their products from amazon. According to Riekkinen, (2018), In many countries, the subscription fee of Netflix has gradually increased during this period time because the company pays a sufficient amount of money and profit share with various entertainment production houses and organizations for access to the studios. Due to the increasing expenditure and service price of Netflix, the company faced huge challenges to retain its old customers as well as get new potential customers to their expectations (Mardani and Krisnawati, 2022). The company always made an appropriate decision over to grow its business globally but some decisions regarding market sustainability affected its organizational mission in the long term [Referred to Appendix 2]

Task 3 - Potential impact of management and emotional intelligence on the employees of Netflix 

The founders of Netflix have been successfully capable of transforming the outlook of the world of entertainment and the OTT platform (Alam et al. 2018). This platform has successfully gained superficial recognition in the market on every global scale. The popularity and the profitability of the platform, as worthy mentioned by Matingly and Kraiger, (2019), are due to the presence of exclusive intelligence in terms of emotions, defined as Emotional Intelligence (EQ). However, according to Kotsou et al. (2019), this platform has been observingly developing by bringing in variations in the traditional method of providing entertainment that comes with several advantages for its and also employees. From and amongst the several reports collected, it has been observed that the management team of Netflix provides a healthy and positive environment for work, a place where the employees are capable enough to show the potentiality and capability of excellence in terms of behavior (Black et al. 2018). This set-up leads the employers to gain more confidence in their work thus leading to a great profit turnover. According to Quisenberry, (2018), the organization's founder always aims at using the emotional engagement of the employees for providing them with several emotional and managerial tactics that would trigger their intelligence leading to a better performing scale. On the other hand, as mentioned by Jamshed and Majeed, (2018), therefore it can be inferred that emotional intelligence plays a crucial role in engaging the working force of the company. 

The EQ of Netflix is seen to be measurable using the Ability Model and Mixed Model. With the help of these two models, the EQ level of the firm is looked at and measured. This measurement in turn shows the impact of the intelligence of Management on the firm. The Ability Model is about the idea of conceptualizing intelligence as a set of various interconnected, objectively measurable, and cognitive-emotional abilities that helps in the ability to perceive, manage and facilitate the movement of the emotions of the employees (Drigas and Papoutsi, 2019). Through this model, it can be perceived that there is a link between the CVC and the EQ. It is generally hypothesized that individuals who have a high level of EI have a higher score in the CVC that is at rest, in response to a task that is stressful. The Mixed model focuses on the subjective ratings of the emotional aspects that stress self-awareness, self-regulation, social skills, empathy, and motivation of the employees (Wang et al. 2018). With the help of these two models, the management team creates emotional bonds and opportunities for the employees [Referred to Appendix 4].

Emotional perception is created through self-awareness

This is the process in which facial expression, languages, voices, and pictures help a person to analyse and recognize the ability of the individual and also to learn the emotional set-up of the person. According to Prentice Netflix et al. (2020), Netflix management with the use of this model has been capable enough to identify and recognize the emotions of the employees and the capability of the founder of Netflix has been quite helpful in the judgemental process. According to Lee, (2019), the management team has used the Mixed model to understand the ability of emotions, strengths, and weaknesses of the team and also the employees. 

Self-regulation and the use of emotions

This activity is concerned with the ability of a person to use the emotions of the other person to get the desired result. With the assistance of this activity, the management of Netflix has been able to employ the employees by providing them with the necessary training for developing the process of decision making and the skills of solving problems (Miao et al. 2018). It is also the EQ of the founder along with the management skill of the leaders that have been able to employ the working force (Rezvani et al. 2018). With the help of a mixed model, the leaders of Netflix have controlled and re-directed the changing circumstances without compromising the needed output [Referred to Appendix 3].

Understanding emotions and adapting to social skills

According to Khosravi et al. (2020), this activity under the ability model is built to understand the twists and complexities of emotions. While some of the management shows the ability to recognize their employees with the help of their facial expressions, on the other hand, as mentioned by Shariq et al. (2018), the emotional language plays the role to show the complex emotional relationship that is fairly understood by some management teams. Netflix management has been able to show a tangible ability to understand the emotional movement of the employees. The higher EQ of the CEO helped in understanding the profitability of the organization and in turn making effective decisions based on the act of managing the relationships between the management and the employee force. 

Managing emotions through empathy and motivation

This leads to the understanding capability of the management team of Netflix in matters of emotions of birth themselves and the others. The management team of Netflix follows a healthy establishment of bonds by providing the employees with equal jobs, promotions, and skill development (Sanchez-Gomez and Breso, 2020). The founder of Netflix believes in the fact that all the employees are provided with equal opportunities to participate in the activities and further offer their opinion on matters of need.


Ahad, R., Mustafa, M.Z., Mohamad, S., Abdullah, N.H.S. and Nordin, M.N., 2021. Work attitude, organizational commitment and emotional intelligence of Malaysian vocational college teachers. Journal of Technical Education and Training, 13(1), pp.15-21.

Aib, I., Shehzad, W. and Irshad, S., 2021. Promotional practices in mission and vision statements of corporate companies: A systemic functional linguistic analysis. Liberal Arts and Social Sciences International Journal (LASSIJ), 5(1), pp.630-647.

Alam, F., LeBlanc, V.R., Baxter, A., Tarshis, J., Piquette, D., Gu, Y., Filipkowska, C., Krywenky, A., Kester-Greene, N., Cardinal, P. and Au, S., 2018. Does the age of acute care physicians impact their (1) crisis management performance and (2) learning after simulation-based education? A protocol for a multicentre prospective cohort study in Toronto and Ottawa, Canada. BMJ open, 8(4), p.e020940.

Alves, M.M., 2018. NetFlix: "The Crown” of entertainment (Doctoral dissertation).

AUDITYA, A. and Hidayat, Z., 2021. Netflix in Indonesia: Influential Factors on Customer Engagement among Millennials' Subscribers. Journal of Distribution Science, 19(1), pp.89-103.

Black, J., Kim, K., Rhee, S., Wang, K. and Sakchutchawan, S., 2018. Self-efficacy and emotional intelligence: Influencing team cohesion to enhance team performance. Team Performance Management: An International Journal.

Blattner, C.E., 2019. Rethinking the 3Rs: From whitewashing to rights. In Animal experimentation: Working towards a paradigm change (pp. 168-193). Brill.

Brueller, D., Brueller, N.N., Brueller, R. and Carmeli, A., 2019. Interorganisational relationships in times of decline: Implications for organisational resilience. Applied Psychology, 68(4), pp.719-758. (2022). Business model canvas of Netflix,

Bughin, J., Kretschmer, T. and van Zeebroeck, N., 2021. Digital technology adoption drives strategic renewal for successful digital transformation. IEEE Engineering Management Review, 49(3), pp.103-108.

Burnard, K.J. and Bhamra, R., 2019. Challenges for organisational resilience. Continuity & Resilience Review.

Burroughs, B., 2019. House of Netflix: Streaming media and digital lore. Popular Communication17(1), pp.1-17.

Cameron, K.S., Whetten, D.A. and Kim, M.U., 2019. Organizational dysfunctions of decline. Academy of Management journal, 30(1), pp.126-138.

Clark, J.M., 2018. The 3Rs in research: a contemporary approach to replacement, reduction and refinement. British Journal of Nutrition, 120(s1), pp.S1-S7.

2021. Tuckmans Model. 

2022. Statistics of Netflix. 

Csalló, R., 2021. Value Proposition at NETFLIX.

(2021). battle-of-the-streaming-giants-netflix-vs-amazon-prime-infographic 

Darvishmotevali, M., Altinay, L. and De Vita, G., 2018. Emotional intelligence and creative performance: Looking through the lens of environmental uncertainty and cultural intelligence. International Journal of Hospitality Management, 73, pp.44-54.

Drigas, A. and Papoutsi, C., 2019. Emotional Intelligence as an Important Asset for HR in Organizations: Leaders and Employees. International Journal of Advanced Corporate Learning, 12(1).