Luqmanul Hakim Bin Johari (2020977427) Individual Assignment Case Study 1

FACULTY OF BUSINESS AND MANAGEMENT
BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE
MGT 657
STRATEGIC MANAGEMENT
CASE STUDY 1
ON
NETFLIX
PREPARED BY: -
NAME: LUQMANULHAKIM BIN JOHARI
MATRIC. ID: 2020977427
GROUP: JBA2425B
LECTURER’S NAME: DR. AHMAD SYAHMI
AHMAD FADZIL
SUBMISSION DATE: -
10 DECEMBER 2021
QUESTIONS:
a) Discuss the meaning of the following statement: “Good mission statements identify the
utility of a firm’s products to its customers”. How is these would apply to Netflix?
A good mission statement reflects the anticipation of customers. Customers' needs should be
identified, and then a product or service should be provided to meet those demands. Netflix's
mission statement, for example, focuses on delivering on-demand movie rentals and provided
streaming services in the entertainment business.
b) Create a mission statement for Netflix by identifying the nine (9) components of a good
mission statement discussed by Fred R David.
Netflix aims to offer a better kind of entertainment service to grow the streaming subscription
business domestically and globally
Our main goal is to offer entertainment options that are both licensed and original for all ages
(1) that can be watched on any screen that has an internet connection. (4) We expand our variety
of user interface and offer our streaming service to even more Internet-connected devices (3)
We are continuously improving customer service by meeting their needs, with a focus on
expanding our original content production and on-demand digital content streaming. (8) We
commit to providing members with top-notch service.
(6) For our suppliers, we guarantee that we are a worthwhile business partner. (7) We promise
our investors long-term profitable growth. (5) Lastly, for our workforce, we offer big
opportunities. (9) We will go above and beyond with regards to our environmentally conscious
habits (7) and (2) will deliver the greatest quality content to our valued users.
c) Drucker says that the most important time to seriously re-examine the firm’s vision/mission
is when the firm is very successful.
Do you agree or disagree with this statement?
Yes I’m agree with the statement because The most important time to ask seriously “What do
we want to become?” and “What is our business?” is when a company has been successful.
Success obsoletes the very behaviour that achieved it and creates new realities and different
problems. A very successful firm is the target of rival firms who try to imitate, duplicate,
reverse engineer their products and take market share from the leading firms.
d) What are the five major types of external forces that should be examined as part of an
external audit for Netflix? Give an example of each type of force.
1) Economic Forces
-level of disposable income
2)Social and Cultural Forces
- immigration and emigration rates
3)Political, Governmental and Legal Forces
- voter participation rates
4)Technological Forces
- technological advancements
5)Competitive Forces
- potential moves a competitor could make.

e) The global recession forced thousands of firms into bankruptcy especially during this
pandemic. Does this fact alone confirm that “external factors are more important than internal
factors” in strategic planning? Discuss.
External forces are significant, but they are out of our control. External variables play a
significant role in determining the environment in which a company operates. When norms
governing the use of capital, credit risk, and market risk are disregarded, high borrowing leads
to bankruptcy, as has been observed in many situations. There were no specific rules governing
how businesses may obtain finance through debt or equity. They were not governed by industry
ROI specifications, and since such things are not the primary goals of financial discipline, it is
only logical that there are no inadequate internal controls or poor financial planning, but this
also means that stakeholder interests are of the utmost importance.
f) Develop the Competitive Profile Matrix (CPM) for Netflix in Malaysia.
Netflix Score Rating
Critical success Weight Rating 0.6 2 Score

Factor
Product Quality 0.20 3 0.4 2 0.4 2 0.4
Customer Loyalty 0.10 4 0.15 1 0.2 2 0.2
Sales Distribution 0.05 3 0.2 3 0.05 1 0.05
Global Expansion 0.10 2 0.3 3 0.3 2 0.2
Advertising 0.10 3 0.8 4 0.3 2 0.2
E-Commerce 0.20 4 0.6 2 0.8 3 0.6
Customer Service 0.15 4 0.3 3 0.3 2 0.3
Price 0.10 3 3.75 0.3 3 0.3

Competitiveness
Total 1.00 3.75

g) Develop the Internal Factor Evaluation (IFE) Matrix for Netflix Malaysia
No Key Internal Factors Weight Rating Weighted

Score
Strengths
1 First Mover Advantage 0.03 3 0.08
2 Brand recognition 0.05 3 0.15
3 High repeat customer satisfaction 0.05 3 0.15
4 Extensive customer database 0.10 4 0.40
5 Large movie and TV series selections 0.03 3 0.08
6 Original viewing content 0.05 3 0.15
7 Low overhead costs 0.08 4 0.30
8 Predictable revenue streams 0.03 3 0.08
9 Affordable customer pricing 0.05 4 0.20
10 Available on multiple platforms 0.05 4 0.20
No Key Internal Factors Weight Rating Weighted

Score
Weakness
1 Age of titles available for streaming 0.03 3 0.08
2 Expired and loss of contracts (Sony, 0.05 3 0.15

Stars, etc.)
3 Processing time for shipping DVDs 0.05 3 0.15
4 Potential for damage of DVDs 0.10 4 0.40

5 Unable to control timetable customer 0.03 3 0.08
keeps DVDs
6 Unable to control timetable customer 0.05 3 0.15

keeps DVDs
7 Competitors have greater financial 0.08 4 0.30

resources (i.e. Amazon, etc.)
8 Growth is beginning to see a slow down 0.03 3 0.08
9 Unable to offer streaming of new releases 0.05 4 0.20

for 28 days
10 Video providers entering exclusive 0.05 4 0.20

contracts with competitors

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FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE

mission statement discussed by Fred R David.

Do you agree or disagree with this statement?

external audit for Netflix? Give an example of each type of force.

-level of disposable income

2)Social and Cultural Forces

- immigration and emigration rates

3)Political, Governmental and Legal Forces

- voter participation rates

- potential moves a competitor could make.

Netflix Score Rating

Critical success Weight Rating 0.6 2 Score

Product Quality 0.20 3 0.4 2 0.4 2 0.4

Customer Loyalty 0.10 4 0.15 1 0.2 2 0.2

Sales Distribution 0.05 3 0.2 3 0.05 1 0.05

Global Expansion 0.10 2 0.3 3 0.3 2 0.2

Advertising 0.10 3 0.8 4 0.3 2 0.2

E-Commerce 0.20 4 0.6 2 0.8 3 0.6

Customer Service 0.15 4 0.3 3 0.3 2 0.3

Price 0.10 3 3.75 0.3 3 0.3

Total 1.00 3.75

No Key Internal Factors Weight Rating Weighted

1 First Mover Advantage 0.03 3 0.08

2 Brand recognition 0.05 3 0.15

3 High repeat customer satisfaction 0.05 3 0.15

4 Extensive customer database 0.10 4 0.40

5 Large movie and TV series selections 0.03 3 0.08

6 Original viewing content 0.05 3 0.15

7 Low overhead costs 0.08 4 0.30

8 Predictable revenue streams 0.03 3 0.08

9 Affordable customer pricing 0.05 4 0.20

10 Available on multiple platforms 0.05 4 0.20

No Key Internal Factors Weight Rating Weighted

1 Age of titles available for streaming 0.03 3 0.08

2 Expired and loss of contracts (Sony, 0.05 3 0.15

3 Processing time for shipping DVDs 0.05 3 0.15

4 Potential for damage of DVDs 0.10 4 0.40

6 Unable to control timetable customer 0.05 3 0.15

7 Competitors have greater financial 0.08 4 0.30

8 Growth is beginning to see a slow down 0.03 3 0.08

9 Unable to offer streaming of new releases 0.05 4 0.20

10 Video providers entering exclusive 0.05 4 0.20

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