Netflix Case Study Essay

Company Overview The idea behind Netflix, the most popular provider of online and by-mail rental services, came from an unsatisfied, embarrassed customer. Reed Hastings, founder and current CEO of Netflix, was charged 40$ as a late fee because he returned the movie Appolo13 six weeks late (Zarafshar, 2013). This made him think creatively about an idea to transform the movie rental model into a more innovative business. In 1997, Hastings and Randolph started Netflix which was a DVD rental-by-mail business with no subscriptions. Later in 1999, and as a step further towards developing the business, Hastings launched the subscription-based business model which was based only on renting DVDs by mail with multiple plans dependent on the number of titles at a time. Netflix offered its subscribers to choose from its extensive DVD library with more than 120,000 titles for unlimited monthly DVD rental with free shipping as well as zero late and per title rental fees. It was very attractive for customers to mak e subscriptions on the spot as they were tempted with the incredible Netflix service. For example, Blockbuster subscribers found Netflix’s offers more appealing and it was easy for them to make the switch. (Wikipedia, 2014) Netflix has been always open to new opportunities that Hastings believes it will sustain the company’s competitive advantage. A new opportunity was captured when the streaming service was introduced in January 2007 where it enabled Netflix’s subscribers to instantly watch movies, TV-episodes, documentaries, series and much more on internet-connected devices such as smart TVs, PCs, DVRs, Blu-Ray players and special Netflix players. During that time, Netflix was leading the industry as it was the first company to offer paid streaming  services to its subscribers in US, Canada and Latin America. Today, Netflix is known as the largest provider of online streaming service with almost 44 million subscribers in more than 40 countries offered access to an ever-growing library of thousands of titles. (Netflix PR, 2014) Netflix executives were keen to devise flexible strategies accompanied by a profitable business model that gave them sustainable competitive advantages over their rivals. They constantly monitor their external environment and do the required amendments quickly and swiftly to leverage the emer ging opportunities and tackle the upcoming threats. Strategies ranging from growing its library content, service differentiation, very competitive DVD-by-Mail service, unique marketing plan and ambitious international expansion all made Netflix a leader in its industry. However, Netflix isn’t the only player in the DVD-rental and streaming services market. Blockbuster and Redbox are one of the many competitors in the DVD-rental market that use different competitive models to outcompete Netflix’s. Hulu Plus, Amazon and HBO GO have fueled the competition in the streaming service market. They all compete on acquiring more titles to expand their libraries and try to offer the best subscription plans in order to get more market share. Having this in mind, what should Netflix do next in order to outperform its competitors and sustain its competitive advantage. External Environment Analysis Macro Environment We will start our assessment of the external environment by examining the PESTEL factors in the Macro (General) Environment of the movie renting industry. Political Factors Network Neutrality is the principle that preserves the internet to remain free and open for all users. It defends against discrimination of the internet use based on the content or website services (Ala, 2014). Major Internet Service Providers (ISPs) would like to charge a company like Netflix more money because it’s website of online movie streaming is eating a lot of their internet bandwidth. According to the broadband internet service tracking firm Sandvine, Netflix alone is consuming 32.3% of the downstream traffic in North America, much more than any other site or service. (Protalinski, 2013) Major ISPs may well contemplate the idea of blocking Netflix from their service to release all that traffic or they  might demand increased internet subscription fees from Netflix to continue hosting their website; this would be a disaster for Netflix who is facing increasing content obligation costs and if ISPs opted for that step, they will have no other choice other than increas ing the monthly fees of their streaming service which will definitely not come to the delight of their customers. All of this is against the Net Neutrality rule, which states that all internet users will be under the same conditions to get space on the net whatever their website or content, is. â€Å"The possibility of regulations designed to mandate the neutrality of the Internet has been subject to fierce debate, especially in the United States† (Internet Cleaner, 2013) In an interview (Netflix Investor Relations, 2014), Reed Hastings says he is not concerned with the threat that ISPs might block Netflix since â€Å"it will fuel the fire for more regulation and no one is interested in this†. Environmental Factors Historically, the video rental industry was built on the idea of reusing the same stuff by different people over and over again and this concept is environment-friendly. Moreover, switching to the soft copies of media and streaming it through the internet reduces energy consumption and pollution levels due to a decrease in delivering DVDs by mail and also less manufacturing of DVDs. Socio-Cultural Factors People are expected to watch movies or play video games when they have more leisure time. However nowadays, many people are having 2 jobs to support their families which basically means less leisure time and less watching movies. In addition to that, people are now becoming more convenient watching movies at their homes instead of going out to the theaters since it is cheaper, less time consuming and is ideal after having a long tiring day; this emerging trend will boost the volume of the streaming media subscriptions. Moreover, the rapid acceptance of the society for technological advancements greatly benefits the online movie rental industry, this is particularly correct due to the new educational and pedagogical systems that stress more on computer learning making people more convenient when dealing with technology. Technological Factors The rapid technological advancements and production of electronic products such as Blu-ray DVD players, Video game consoles, smart phones, smart TVs and many other devices that can connect to the internet, made the concept of online rental and video streaming easier and more adaptable. As the internet services are becoming more popular and an important ingredient in people’s daily life, companies like Netflix will be able to increase its operations especially in the video streaming service. Therefore, the advancement in technology is an opportunity and enabler for the industry as a whole. 4K streaming is a new high-quality video technology that reduces compression rate and produces output in 4K/Ultra HD format. (Burns, 2014) Netflix started offering some of its content in this format, which signals their aim to go side by side with technological advancement. Of course, to be able to stream at this high resolution, you need to have a super speed internet (40-50 Mbps) so people now have a reason to upgrade and it means more profits to the ISPs. (Netflix Investor Relations, 2014) Economic Factors The industry depends on the consumers’ spending power and real income, which is affected by employment rate, interest rate, tax rate and inflation rate. When consumers have more money, spending on entertainment facilities rises and this is an opportunity for the industry. On the other hand, the spending power of households usually decrease in recession periods, so they will probably tend to sacrifice the theater ticket and may well reward themselves with some older movies available on streaming services such as Netflix’s. Legal Factors There is a considerable potential for legal actions to be taken against companies operating in this industry, actions related to the use of licensed material and customers’ privacy issues. Moreover, any company that operates in the international market should study well the rules and regulations specific to that market or else it will shortly fall in trouble or lose valuable opportunities. Some legal actions might have a positive impact on companies in this industry such as the amendment of the VPPA law discussed earlier. On the other hand, Netflix had some hard times in 2010 with lawsuits pertaining to privacy issues when an academic research suggested it exposed the movie preferences of its customers for the programmers who  participated in the Netflix prize to produce a better recommendation algorithm. (Buley, 2010) The issue was later resolved and Netflix cancelled the sequel â€Å"Netflix Prize II† competition. Competitive Environment In order to determine nature and strength of the competitor pressures in the movie rental industry Netflix is operating in, we use Porter’s five forces model of competition. Bargaining Power of Customers In the streaming market, customers have a high bargaining power; the reason behind this is that people are very well informed about other companies which are in the same line of business as Netflix. Customers are always in search for a better deal because buyers are very price sensitive when it comes to the video rental industry and they are always looking for the best quality, so they will leave Netflix as soon as a better offer is available since there is no switching cost. Customers always expect product differentiation, and if Netflix does not give it customers this variety, they will simply leave. Bargaining Power of Suppliers Bargaining power of suppliers is very high; Netflix relies on getting exclusive rights to certain television shows and movies so suppliers play a very big role in bargaining over what content is exclusively reserved for Netflix users. Also, there are only a number of studios who supply the movies and shows. Another reason bargaining power of suppliers is high is that Netflix can only get its content from those studios and there is no substitute for that content, also contracts with those studios are usually for a short period of time (1-3 years) and expensive; a good example of this is when Netflix was unable to renew its contract with Starz because they were demanding a much larger amount of money – $300 million instead of the $30 million paid in 2008. (Kafka, 2011) Threat of New Entrants Although entering the online movie rental industry needs a huge initial investment to get content and secure exclusive copyrights, we can say that the threat of new entrants is moderately high since it remains a growing market with a growing demand, and huge rich companies like Apple and Google may be tempted by its growth potential and might well enter the play stage  with generous budgets; and also the low exit costs in this market make this threat high. But in order to be profitable in this industry, companies need to achieve economies of scale and try it best to have a large volume of subscribers, which in Netflix’s case is how they achieve profitability, and also to have a large number of viewers if it is a VOD company. Threat of Substitutes The threat of substitutes is relatively high since substitutes are available, such as Blockbuster On demand, Amazon Prime Instant Video and many other VOD streaming media. Rather than having a subscription of unlimited views, customers can switch to a pay per view option. Another reason is that there is no switching cost. In addition to that, the prices of substitutes are convenient and low which makes it relatively easy to switch. Customers might also choose to switch because companies working on a VOD bases have better features such as making certain television shows and movies available within a few hours of airing them on T.V, unlike Netflix where customers need to wait a few months. Intensity of Competitive Rivalry Competition is very high in the video rental industry; Netflix has many current competitors which include Blockbuster on demand, Amazon, Apple, Hulu Plus and many others. Also Netflix has to keep scanning the environment for new competitors since it is easy for new rivals to enter the market for there are low barriers to market entry and exit. Netflix must fear its competitors because they can easily lose customers to them since switching cost is very low and they have no loyalty programs to make it harder for customers to leave. VRIO Analysis Netflix’s top resources can be listed as follows: 1. The variety and big selection of titles (comprehensive library of movies and TV-episodes) 2. The unique software for streaming and recommendation 3. Nationwide distribution network 4. CEO Reed Hastings Resources must have enough competitive potential for the organization to outcompete its rivals. By applying the VRIO framework (see table 1), one of  the best strategic tools to evaluate the firm’s resources, Netflix is shown to be at a moderate sustainable position. Providing its subscribers a wide selection of titles has been always Netflix’s primary strategy. During the year 2012, its library has reached over 120,000 DVD-titles and more than 30,000 titles ready for streaming (Wikipedia, 2014). This extensive library is definitely valuable for Netflix to attract more subscribers to watch from a wide variety of titles. Moreover, this resource is rare as not all competitors are able to offer its customers a huge number of titles for both DVD-rental and streaming services. However, such a comprehensive library is not very difficult to imitate. Apple and Amazon, for example, are constantly working hard to gain license agreements to acquire new content and grow their lib rary of titles. An obvious example on this is when Amazon won over Netflix and secured the streaming rights of the whole 8 seasons of Fox’s award winning series ‘24’ (Cantisano, 2014). Netflix has shown to be organized to capture the value of its library by making it available for its subscribers when using both services. Thus, having a big selection of titles places Netflix at a sustainable competitive advantage as long as no competitor grows a more extensive library. Otherwise, it will become easy for Netflix subscribers to switch to another company that offers wider selection. Netflix had well developed and easy-to-use software that provides titles recommendations for each subscriber based on personalized ratings. This resource is an added value to Netflix’s business because it became convenient for subscribers to quickly view movies they like or place them on â€Å"instant queue† for watching them later. (Netflix, 2014) Netflix announced a 1 million-dollar compe tition to challenge programmers to create an algorithm that can beat its Cinematch system by at least 10% of enhanced accuracy (Netflixprize, 2009). In 2009, three teams of talented programmers combined forces and developed that algorithm and Netflix’s system was given a major boost. Since the software is customized only for Netflix and consists of complicated algorithms, such a resource is considered rare. Although Netflix had set the bars high for its rivals, another company can call for a competition or hire top programmers to develop their own software that may beat that of Netflix’s. There is always room for improvement, and for that reason, this software can be imitated. Nevertheless, Netflix is continuously prepared to capture the value out of its smart software and make the best  use of it. As a result, the recommendation software positions Netflix on a sustainable competitive advantage as long as no competitor develops similar or improved software. For its DVD-by mail service, Netflix had largely invested in developing its nationwide distribution network by establishing as much distribution centers as possible. Their strategy is to provide customers with the fastest shipping service by delivering ordered DVDs within one business day. This is of a big value for customers who used to wait several days to obtain a DVD. To make it more effective and efficient, Netflix util izes a distribution network system (logistics system) that saves a lot of time looking for the closest center that has the ordered DVD in stock. The combination of wide-spread distribution centers and effective logistics software makes it a rare resource. It’s still almost impossible for competitors, such as Blockbusters, to deliver any of its DVDs within 1 business day. Furthermore, it’s difficult to have a large number of shipping points close to every home. Therefore, this resource is considerably inimitable. Obviously, Netflix is doing a great job in regards to quick delivery. It has promised its customer to ship DVDs anywhere within 1 business day. Today, by effectively employing the distribution network system, the company leveraged its capability to reach 98% of its subscribers. Hence, Netflix is organized properly to capture the value of their distribution centers. It is worth noting that although this resource gives them an sustainable competitive advantage, the demand on this type of service (DVDs sent by mail) is on a continuous decline, and the service might completely vanish in the next few years. L ast but not least, Netflix’s CEO, President and co-founder Reed Hastings is considered one of the firm’s most valuable resources. In the most difficult times, this innovative and visionary man knew what he was doing and didn’t lose the focus. His vision was very clear since the very beginning back in 1997 when he named the company Net-flix and not DVD-by-Mail (Fortune, 2009); he saw what the industry will be like in the future and believed in the powers of the internet. an intangible asset, as we are interested in his vision, education, expertise, know-how’s, innovation and skills, is considered a valuable one. If you take a quick glance on what has happened in the past few years, you’ll find it clear how such influential people affect their organizations in every aspect. For example, when Steve Jobs died, Apple’s  stock price went down by 5% immediately (Kollewe,2011) which shows you how people believed that the tremendous success Apple had in the past few years was directly linked to the innovative out-of-the-box thinking of their ex-CEO, and future manifestations showed that that was extremely true. So these brilliant executives are so valuable to their firms and they are also rare. Blockbuster’s ex-CEO Jim Keyes had the chance to buy Netflix in year 2000 for as little as 50 million dollars (now it’s worth more than 20 billion dollars!), but he was so arrogant and refused to give any recognition for Netflix’s success claiming his firm can easily do anything Netflix does. (Zarafshar, 2013) Failing to see the opportunities, combined with many wrong asse ssments of the external environment led to the bankruptcy of Blockbuster in 2011. Many analysts were actually quite sure that Netflix will be sold after the 2011 missteps that caused the stock price to fall by about 80% ; however, at that same exact time Reed Hastings was confident and quite sure that Netflix â€Å"will not only survive but flourish† (Morrissey, 2013). Those same analysts didn’t see, at that time, anything of a value in Netflix other than its CEO, who previously one the â€Å"CEO of the year 2010† award (Hartung, 2013) and whom they had great respect for (Morrissey, 2013); and indeed he was able to turn on his company and return it back to the list of the most successful companies in the world and the stock prices went up by more than 700% between 2011 and 2014! (Google Finance, 2014) In an interview, Hastings clarified that he doesn’t see his firm just competing with the other companies in the media-entertainment industry, but he believes to be competing with all companies that offer any kind of product or service that a person can enjoy during his leisure time, whether it is a soccer match, a newspaper, a video game or even hiking with friends or family (Netflix Investor Relations, 2014). This gives you an idea of the high mindset of this man which explains the success his company is now enjoying. Such a reso urce is hard to imitate as they usually come through the hierarchy of the same company; that’s what explains their full understanding of the industry they’re working in and the core competences of their firms. Just moving one brilliant CEO from one company to your company doesn’t guarantee you any success at all since many complex factors take action in the whole mix-up. Proceeding from here, it is obvious that this resource is organized to capture value for the firm. By setting the  strategies and adjusting them whenever and wherever needed depending on the ever-changing environment, Mr. Hastings is the captain who controls the helm to take Netflix to the island of success. Therefore, this resource gives Netflix a sustainable competitive advantage as long as he’s on the helm. In the future, will Netflix face the same difficulties Apple faced after their CEO was deceased? RESOURCE Valuable Rare Inimitable Is the company organized to capture the value of the resource? Competitive Potential Big Selection of Titles YES YES NO YES Sustainable/Temporary CA Title Recommendation Software YES YES NO YES Sustainable/Temporary CA Nationwide Distribution Network YES YES YES YES Sustainable Competitive Advantage CEO Reed Hastings YES YES YES YES Sustainable Competitive Advantage Table : Conducting VRIO analysis on Netflix top resources Netflix’s Competitive Strength The Netflix Strategy Netflix’s strategy so far hasn’t been to just focus on one or two aspects of their customer base, but to focus themselves in a number of directions in order to build upon and capitalize on a growing subscriber base. Their main strategy has been to build and maintain the most comprehensive selection of DVD titles in the industry, and they have done so by creating mutually beneficial relationships with a number of entertainment video providers. Their second main strategy has been focused on service differentiation- not only how customers receive content and consume it, but also how customers choose what to watch. Netflix’s number one competitive advantage over Amazon and Blockbuster is their unique software that takes what a customer has seen or rated, and based upon that information builds a list of suggested titles similar to ones they have just watched. While other companies had begun to leak into the rent-by-mail niche category that Netflix had started, no othe r company had customer profiling software quite like Netflix. Between 2006 and 2009, the film rental market underwent a major shift. The in-store rental market declined, while vending machine rentals increased and by-mail rentals nearly doubled. However, VOD (Video on Demand) services through cable, digital, and subscription also saw major increases. All of these changes meant companies like Blockbuster had to either restructure and make a complete business model shift – or face bankruptcy. Meanwhile, the increases in by-mail rentals and online subscriptions, two services that Netflix offered, meant that the number of Netflix subscribers more than doubled in that same time frame. Purchase decisions from customers were focused on convenient access, price, variety of DVD offerings, and ease of return/return fees. Customers like variety; a video rental store that only stocks the newest releases will not appeal to all markets. Increasingly, customers are becoming more nostalgic in their movie preferences, searching for titles long past premiere. Customers have also become increasingly busy, often not having the time to go to a store to pick out a movie or remembering to return their rentals on time. We live in a world of instant gratification, where being able to click a few buttons and watch the latest  movie or an old clas sic is extremely important. Customers also do not like fees. More and more companies today are offering free shipping/return shipping, and the same is true in the DVD rental industry. Netflix’s third main strategy was to attract more subscribers using multiple marketing channels including online advertising, radio stations, regional and national television, direct mail, and print ads. One of these marketing strategies included participating in a variety of cooperative advertising programs with studios through which Netflix received cash for featuring a studio’s movies in its advertising. Moreover, Netflix worked closely with the makers of Netflix-ready electronics devices to expand the number of devices on which Netflix subscribers could view Netflix-streamed content (Thompson, 2012). This is considered Netflix’s second competitive advantage because it got ahead competitors by being the first to market with next-generation products. By 2012, with the aid of new technology, Netflix added another core strategy which was to grow its streaming subscription business domestically and globally. By doing so, executives expected that the number of members with DVD-by mail subscription would decline, as subscribers migrated from renting DVDs to streaming online and as subscribers with both DVD-by mail and streaming subscriptions opted to only streaming online. The company continuously improved its streaming experience by expanding the size of its content library, increasing the number of Internet-connected devices, and improving the ease of navigating Netflix’s w ebsite of locating and selecting content to watch. The result was a rapid growing customer acceptance and interest in the delivery of TV shows and movies directly over the Internet. Finally, a central element of Netflix’s long-term strategy was making Netflix’s streaming service available outside the US, in countries like Canada, Latin America, the UK and Ireland. (Thompson, 2012) Although this international expansion was expected to temporarily depress the company’s overall profitability and incur huge expenses of obtaining licenses from movie studios and owners of TV shows, Netflix’s entry into such markets would launch a preemptive strike to secure an advantageous position of being market leaders with high-quality suppliers via exclusive partnerships or long-term contracts (Thompson, Peteraf, Gamble, Strickland, 2014). â€Å"We have to win the bidding for a big set of content, and then market ourselves effectively to start the membership growth† (Seave, 2013). How  long it takes for such a bold move to yield good results was not a major issue because Reed Hastings indicated that Netflix would take longer than eight quarter s after initial entry to reach sustained profitability. How Does Its Competitive Strength Compare Against That of Blockbuster and Amazon Compared with Blockbuster and Amazon, Netflix operates within the highly competitive media streaming market that has been forecasted to increase to $12.5 billion in 2017 (Bauman, Deal, Ishak, & Johnson, 2013). Netflix by far has the most comprehensive number of products and distribution channels, given that consumers can either rent DVDs by mail or stream them on their PC or TV. Its identity is valued greatly among consumers as a quick, easy, and available destination for streaming media. Additionally, the value of their brand has risen recently after the strong media attention for the success of its first original series, House of Cards. When it comes to competitors, Netflix’s main competitors were Amazon and Blockbuster. Operating as Amazon Prime Instant Video, it has three main advantages over Netflix; it offers subscription as a prime member for $79 a year which is $6.59/month, less than Netfl ix’s streaming price of $7.99/month, subscribers get free 2-day shipping on millions of items and its users can buy or rent a movie/show just after a few hours of it being broadcasted on TV, while Netflix subscribers needed to wait a few months in order to view the same movie or show (McGrath,2014). However, Netflix’s competitive advantage over Amazon is its library which has more variety and includes original content, thus making their library comprehensive in the streaming market. They also offer all their content to their subscribers for streaming through a very user friendly personalized interface and effective recommendation system that boosts the watching experience; in comparison, Amazon’s Prime Instant Video library have less categories and less straightforward search results, plus a significant portion of their online content cannot be streamed for free, you have to pay additional money to watch certain shows or movies. (Honorof, 2014) Blockbuster’s strategy was to keep expanding geographically by opening new stores in different locations, rather than switching to online streaming, thinking it would increase their market share. But due to the rise in competition from Netflix and Amazon, the company filed for bankruptcy in 2010 and in January of 2014 they permanently closed all their stores and only operated through â€Å"Blockbuster On Demand† on a pay per rental  bases and operated only in the US (Netflix Alternative, 2013). The competitive advantage Netflix had over Blockbuster is the number of titles they offered. Because Netflix did not operate from a physical store, it made it possible to store thousands of titles, both old movies and movies which were on high demand, and thus satisfying the preferences of much more customers than Blockbuster. Blockbuster was restricted in the amount and titles they had to offer in their stores because of its limited storage space. Another advantage was convenience. Netflix made it very convenient for customers to get their DVDs without having to leave the house and having unlimited videos on a subscription basis without late fees, all of which are things Blockbuster lacked. With all this said, it is obvious that Netflix used offensive strategies that helped it build its reputation as a market leader and created a strong brand loyalty by binding customers to its service. As a first mover, Netflix was able to move down the learning curve ahead of rivals, so it now knows exactly what customers are expecting and learned a hard lesson not to do sudden strategic changes as it did in 2011 missteps of price changes and split of service. As a first mover also, Netflix was able to set the technical standard for the industry by adopting the advanced streaming player and recommendation program that customers now can’t imagine accessing huge movie libraries without it, and Netflix is ahead of its rivals in this and it’s building it over time. Back in its early stage of existence, Netflix had no chance to compete traditionally with the giant Blockbuster, so it chose a special kind of offensive strategy called â€Å"The Blue-Ocean Strategy† which dictates that a firm can â€Å"gain a dramatic and durable competitive advantage by abandoning efforts to beat out competitors in existing markets and instead inventing a new industry or distinctive market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand† (Thompson, Peteraf, Gamble, Strickland, 2014) This is exactly what Netflix did as it didn’t go into the block and mortar business but focused from the very beginning on growing its online library and achieving its most important strategy back then which is to deliver DVDs by mail within one business day. This created a new segment of customers for its service and factors in the external environment started changing to its advantage wh ich shows that Hastings and his team where correct in reading their external  environment. Then in 2007 they started their streaming service which is also an offensive strategy that positioned Netflix far ahead of its competitors. Recommendations The past few years have shown how volatile the stock price of Netflix was as it fluctuated between as low as 53 dollars in 2012 to as high as 448 dollars in March 2014 (Google Finance, 2014). This is an indication that Netflix is operating in a very fast moving industry where innovation and continuous improvement are the keys for survival. Consequently, as professional consultants, we advise Netflix executives to learn from what has happened in the past and put new strategies or amend existing ones to tackle the future probable recurrence of the problems they have faced in the past few years. One of the major competitive advantages of Netflix over its rivals in the industry is having this huge and varied collection of title selections in its offering. First we advise them to convert all their DVD-version content, which is not available for streaming, to soft stream-able versions as statistics showed more customers are leaving the DVD-by-mail plan and registering for the more convenie nt trendy streaming service (Roettgers, 2013). Maintaining an increasing selection of title offering is vital in this respect, as in such an entertainment industry, we don’t see loyalty in customers as decreed by Marketing gurus; what we mean by this is, if another rival had a similar service with a richer content, many customers will switch with the blink of an eye. That’s why we are stressing on this point as it is a key for survival. Accordingly, Netflix should opt to create strategic alliances and cooperative partnerships with many movie studios to maintain its database of titles – retaining existing ones and adding new collections, and negotiating to reduce the wait time for streaming movies after they are out in the theaters. This will definitely create value to the customers, but Netflix’s harder job is how to create value for those suppliers, that is, how to convince them to add their productions in the Netflix service. This can be done by creating a win-win model that will persuade those studios to choose Netflix over other rivals, and hence can be achieved by highlighting a set of advantages they’ll get from the deal. An example of such an advantage, is to have the studio’s work available not only in US, but in all the 41 countries Netflix currently operates in, and  maybe make it available in local languages; this will increase the popularity of the studio’s work inter nationally and will basically mean more profits for future project releases. Catching up from this last point, it is vital for Netflix to find new smart ways to continuously increase their subscription base. By the end of Q1 2014, the number of subscribers went up to 33 million US subscribers and 11 million international subscribers (Welch, 2014). More subscribers simply mean more annual income which will lead to the ability to get richer content to their offering, which will in return link more customers in. This recursive cycle is so prominent and can be triggered by some smart tactics, to initially get more customers. Lowering the subscription price might lure many potential customers to register, but is not advisable to do that since the profit margin of the streaming service is already narrow (Roettgers, 2013). On the other hand, increasing the price of subscriptions is also risky and the crazy chaos that happened in 2011 will remain unforgettable. Hence, Netflix executives should devise new innovative ways to increase the value proposition of their service that will increase their customer base and enhance their reputation as a market leader. This can be achieved, for example, by doing the exact opposite of what they did in their 2011 missteps. What happened back then was to increase the price of their service for the sa me quality they offered; so let’s now try to increase the service quality holding the price fixed. One way of doing that, is to diversify their content; for example to start providing Live programs such as Sports events and News. This addition will get-in new customer segments – not only those who love to watch movies and TV series. So, if Netflix was able to secure the online broadcasting rights for a major soccer league matches, for example, and broadcasting Live CNN news, their customer base will be more fragmented and they will be moving in the direction of being an Internet TV provider with a variety of shows that suites all the different categories of viewers. Another technique to increase the quality of their service is to enhance their GUI (graphical user interface) by creating a new advanced online player for streaming media that can detect voice commands sent from the embedded microphone of the client’s personal gadget (laptop, Smartphone, tablet, etc†¦), analyze those commands and perform actions accordingly. For instance, â€Å"Volume Up† to increase player’s sound volume instead of using  your laptop’s mouse or going to â€Å"Settings† on your Smartphone/iPad; or the voice command â€Å"Action Category† to go to the list of movies in the Action category. Adding such a high-tech innovative feature in their player will amaze their happy customers and will leave their competitors contemplating in the shadows. Netflix can also enhance its online service by continuously challenging and rewarding bright programmers to come up with new algorithms that increase the effectiveness of their rati ng application. What they did with their one-million-dollar contest, which was won in 2009 by a team called BellKor’s Pragmatic Chao who were able to come up with an algorithm that overcame Netflix’s recommendation system by more than 10% (Netflix Prize, 2009), was very tidy and it really paid off; so they need to continue upgrading their systems – as it goes side-by-side with the ever increasing size of their database. Speaking about the content, it was very clear that the bargaining power of the suppliers, which are the TV shows producers and movie studios, are becoming increasingly high; and what happened with the Starz Entertainment deal is one example to mention here, when it announced it would remove it movies from Netflix streaming starting February 2012 (Young,2011). This leads us to what we believe is the most important recommendation for Netflix to consider, that is, invest more in original content. Going backward to the recursive cycle we previously explained, it is clear that getting new content goes in parallel with increasing the number of subscribers. For example, when Netflix secured the deal with Disney for exclusive rights to stream its movies starting 2016, many analysts assumed that the firm needs to get 4 million new subscribers to just breakeven with the cost of that deal (Morrissey,2013). One here might contemplate, that sooner or later, Netflix will reach a stage where it wil l cease to be able to increase its customer base, so its revenues will reach a kind of a slow moving ceiling, but their content obligations will continue to rise: to maintain the licenses for the current collection and to get new content in. Many movie studios are closely monitoring Netflix’s performance and stock prices, and they are demanding higher money for renewing their contracts, and this is a major threat for Netflix to consider. Unable to reach a renewal agreement with a major movie studio, will result in the disappearance of hundreds or  thousands of titles from their online library in a fortnight. This will really embarrass the customers. That’s why we recommend that Netflix needs to heavily invest in original programming before they reach the saturation stage, or a deadlock situation whereby they cannot enhance their content because it’s too costly and they need more money by growing membership, and they cannot grow membership because they aren’t able to enhance their content because it’s too costly! Reaching this stage means the firm is approaching its last days. The solution for this misery, and to avoid this tragic end, is to invest in original content right away. Netflix started distributing premier programs in 2011 and now has more than 10 exclusive TV shows in its offering (Wikipedia, 2014), one of which is â€Å"House of Cards† – an America political dram a television series – which â€Å"became the first TV series to win a primetime Emmy Award without ever broadcasting on a network or cable channel† (Neal, 2014). The success of the series encouraged Netflix to produce a second season of it in Feb 2014, and a third season is scheduled in early 2015 (Wikipedia, 2014). According to a study (Popper, 2014), one episode of such original content costs Netflix four million dollars; but although this is very expensive, allocating an important portion of the budget every year to produce such exclusive series will have its mark in the future. People can enjoy watching such series any time, as it is a permanent title in the online library, and Netflix doesn’t have to pay licensing or any other kind of expenses on originals once it is broadcasted. They can also make it available for their international customers by adding local language features (subbing or dubbing) to it. Growing internationally is still one of the main strategies that Netflix is counting on and although international expansion proved to be very costly, as Canada for example broke even after 2 years (Netflix Investor Relations, 2014); they are recommended to continue with it. It will give them more international recognition that will enhance their reputation and will pay off in their competition with rivals, and this is exactly what CEO Reed Hastings said in Netflix Q4 2013 Earnings Interview â€Å" we are treating international as a segment – for competitive reasons† (Netflix Investor Relations, 2014). As first movers in the streaming movie industry, it is advisable for Netflix to leverage their position as pioneers of the market by offering several loyalty programs that will increase the switching cost  of the customers to their existing and future rivals. One thing they can do is to create a points-based reward system which works as follows: every month you renew your subscription you’ll add 10 points to your balance, and if you’re a new customer you get 50 â€Å"free welcome points†. Then through time your balance will keep adding up points and you’ll have the choice to buy several valuable things with it. For example, one-month free subscription for 100 points, an original DVD movie (from a predefined list of titles) sent directly to your mail and that will cost you 200 points, and the chance to meet with the actors of your favorite TV-series (Netflix Original) for 300 points. Such a loyalty program will keep delight the customers and keep them hooked to the service. While many consumers have cut the cord and made the switch to Internet-only TV offerings, undoubtedly they’ve experienced frustrations as well. Netflix’s mobile app, while good, can be upgraded to present a much better and more seamless experience for those on tablets. We suggest added-value features like friendship connections, including the ability to see what friends on both Facebook and Twitter have watched, their recommendations, and share content with others. Another impre ssive change could be a ‘tagging feature’ when watching shows which we believe to be instrumental in expanding the social aspects of Netflix’s content. Viewers can tap the button at any time during a show to tag moments on the timeline relevant with quotes from the scene or make a comment regarding what they saw. Subsequent friends watching the content can see these tags, opening up dialogue between the partners and encouraging more social conversation through Netflix’s app. (The lab Blog, 2013). Compared to the current app’s design, this new proposal feels fresh and clean. Of course, those added features are optional and can be switched off whenever privacy is needed. By adding this feature, Netflix will be leveraging the benefits of the latest VPPA (Video Privacy Protection Act) law amendments President Obama signed which â€Å"facilitate social media sharing of video viewing preferences when users consent to disclosure of information via the Internet†.(McClellan, 2013) Moreover, integrating social media with customers’ viewing experience will give Netflix an important marketing tool that will help them detect which content is more appealing to their customers and will also give their customers a window to speak out what they like to see in the future. Finally we can say that the next step for Netflix  is to produce a Hollywood 100-million dollar movie that can be streamed same day it goes into the theater. This massive step of producing one movie eve ry year, of such a caliber, will be a major boost for Netflix in the coming years especially if they were lucky enough and those movies turn out to be a major hit. But here one has to say, is it wise for a company like Netflix, that reported 112 million dollars in net income by the end of 2013 (Google Finance,2014), to handle a project of this size? Isn’t it a crazy adventure? Or should Netflix go through a joint venture with other Pay-TV firms to reduce the risks of such a gigantic project? References Bauman, L., Deal, N., Ishak, P., & Johnson, S. (2013, February 3). Netflix Environmental Scan / SWOT Analysis. Retrieved April 22, 2013, from Memoirs of a Student: http://lisabauman.blogspot.com/2013/02/netflix–?environmental–?scan–?swot–?analysis.html Thompson, A. A., Peteraf, M. A., Gamble, J. E., & Strickland III, A. J. (2014). Crafting and Executing Strategy – The Quest for Competitive Advantage – Concepts and Cases (19th Ed.). New York, NY: McGraw-Hill/Irwin – Ch:6, pgs. 151-152 Thompson (2012) – Netflix in 2012: Can It Recover from Its strategy Missteps? Thompson, A. A. (2012). Netflix Alternative (July,2013) Blockbuster on Demand – Retrieved from: http://www.netflixalternative.com/blockbuster-on-demand/ McGrath (Jan, 2014) Amazon and Hulu Could Slow Netflix Growth in 2014 – Retrieved From: http://www.forbes.com/sites/maggiemcgrath/2014/01/07/amazon-and-hulu-could-slow-netflix-growth-in-2014-morgan-stanley-sa ys/ (Seave, 2013) Netflix to Competitors: Be Afraid, Be Very Afraid – Retrieved from: http://www.forbes.com/sites/avaseave/2013/06/06/netflix-to-competitors-be-afraid-be-very-afraid/ NetflixPR – Netflix Media Center – Company overview – Retrieved April 19,2014 from https://pr.netflix.com/WebClient/loginPageSalesNetWorksAction.do?contentGroupId=10476&contentGroup=Company+Facts Kollewe (October,2011) Apple Stock Price Falls on News of Steve Job’s Death – Retrieved from http://www.theguardian.com/technology/2011/oct/06/apple-stock-steve-jobs Zarafshar (Nov,2013) Remembering Blockbuster Retrieved from http://deweydigest.com/tech/2547 Cantisano (April,2014) Netflix loses Fox

Introduces Odysseus

The Odyssey, one of the most well known epic stories Introduces Odysseus, the King of Ithaca. This story demonstrates Odysseus’s physical and intellectual strength. Striving to return home after 20 years of his treacherous journey, he uses strength, skill, and superior ability to overcome his troubles. Although he faced numerous obstacles and fought many battles, he made it appoint to get home to his kingdom through his physical ability, intellectual insight, and overcoming his epic flaw. In the beginning of The Odyssey, Odysseus describes his homeland Ithaca and states â€Å"A rocky island, good for a boys training†.By saying this he makes it clear that he is proud of where he had grown up and that he had trained there. This introduces the physical prowess. He had been trained as a young boy to fight and carried that on with him as he grew up. Early on in the story he immediately shows his physical strength. The first story, Sailing from Troy, demonstrates this clearly when Odysseus states, â€Å"I stormed in that place and killed the men who fought. Plunder we took, and we enslaved the women to make a division, equal shares to all-†¦Ã¢â‚¬  (Homer, Lines 43-45). In the battle of Troy he and his army had won, obviously giving him experience and strength in killing.When he killed the men of Ismarus, it was evident that he had no problem doing so. Odysseus felt like he could take on anything that would come his way, feeling invincible. After they had won, Odysseus shouted to the Gods that nothing they throw at him could bring him down. One of Odysseus’s first encounters with trouble after he shouted to the Gods was the Cyclops. After the Cyclops killed several of Odysseus’s men, he finally came up with a plan of how to kill him. After the Cyclops is passed out, Odysseus plans to take a sharpened pike to its eye.As Odysseus describes, â€Å" I drew it from the coals and my four fellows gave me a hand, lugging it near the Cyclops as more than natural force nerved them; straight forward they sprinted, lifted it, and rammed it deep in his crater eye, and I leaned on it turning it as a shipwright turns a drill in planking†¦Ã¢â‚¬  (Homer, Lines 329-335). Not only is Odysseus showing physical strength, but so are his men. It clearly took a lot of strength, physically and mentally, to kill the Cyclops. Odysseus’s physical strength continues in the story The Land of the Dead. It takes several people and a lot of strength to get their giant ship going.In the story it describes the process, â€Å"We bore down on the ship at the sea’s edge and launched her on the salt immortal sea, stepping our mast and spar in the black ship†¦Ã¢â‚¬  (Homer, Lines 523-529). In order to get the masts and sails up you had to be very strong, and each time they left a place, they had to do so. Throughout the Odyssey, Odysseus and his men all display physical prowess in order to return back to Ithaca, but Intell ectual prowess also aids them in their return. Odysseus, using his intellectual prowess, is able to outsmart the obstacles he faces and also to make better choices for himself and his crew.In The Lotus-Eaters Odysseus land on an unknown Island and decides to send some men out and see what the land holds; â€Å"Then I sent out two picked men and a runner to learn what race of men that island sustained. † Instead of Odysseus risking his own life, he sends out others instead. This is a smart decision because he has no clue what is on the island and he wants to keep himself safe. In The Cyclops Odysseus had come prepared for anything that could happen, â€Å"A wineskin full I brought along, and victuals in a bag, for in my bones I knew some towering brute would be upon us soon-â€Å" (Homer, Lines 153-155).He knew that they were going to need food and supplies when they arrived on the island, so by using his intellectual prowess, he was prepared. Also in the Cyclops, he says, à ¢â‚¬Å"We beached there, and I told the crew to stand by and keep watch over the ship; as for myself I took twelve best fighters and went ahead. † (Homer, Lines 134-137). Wanting to stay safe, Odysseus took his best fighters with him and had the others stay back and watch the ship to be sure nothing happened to it. One of the most difficult obstacles Odysseus faced was overcoming if epic flaw.Odysseus had excessive pride, or Hubris, which sometimes got him in more trouble than he was already in. For example, in the Cyclops, as Odysseus and his men are leaving after stabbing the Cyclops’ eye, he shouts â€Å"Cyclops, if ever mortal man inquire how you were put to shame and blinded, tell him Odysseus, raider of cities, took your eye: Laertes’ son, whose home’s on Ithaca. † Before this, Odysseus had told the Cyclops that his name was â€Å"Nohbdy† and could have gotten away without the Cyclops knowing who it really was, but Odysseus had to boast and brag that if anyone were to ask, it was him who blinded the Cyclops.Also in the beginning of The Odyssey after they had one the Battle of Troy, Odysseus shouted to the Gods that nothing could stop him. By provoking the Gods, he brought his 20 year journey onto himself. But by overcoming this flaw in the end, Odysseus finally returned home. Although he faced all of these battles, Odysseus combined all of his skill to defeat them and got back to Ithaca to reclaim his title as King. He couldn’t have done it on his own, but with the help of his men, using his physical and intellectual prowess, and overcoming his epic flaw, he achieved his goal after 20 years of difficulties.

Movies Good or Bad

Division Classification Essay| Tabitha NewberryFridays 8:30-11:30| Is the theaters Movies worse or better than Home movies? | | While I do not generally care for television, I do enjoy movies. Movies, however, present both a financial and a time commitment. When my family and I go to a movie, we spend roughly $20 for admission and an additional $20 for popcorn, sodas, and other snacks. At this cost, a night at the movies will often function as the evening meal as well. Occasionally my mom and I or my sister and I will go see something I especially want to see and leave my son with a sitter.Still the financial obligation is significant. Movies generally last somewhere between an hour and a half to two hours, plus time to dress, drive, park the car, buy tickets, get snacks, find a seat, and watch previews. Thus, there isn't always room in a busy schedule–or a tight budget– to go to movies. In other words, I can't see them all at the theater. For these reasons, I've devise d a ranking of movies to include those that I can watch at home. The films belong in these categories: 1) Films I will pay to watch in a theater; 2) Films I will rent; and 3) Films I will watch on television.I will pay to see three different types of movies: family pictures, Funny, and what can I say I’m a hopeless Romantic. Sometimes these all overlap, making me truly happy but usually not. With a young son the pressures to see every child’s, or family, film is tremendous. He does not sit still long enough to even watch a 30 minute television show. At daycare, they hear all about â€Å"Brother Bear† and â€Å"Dore the Explore,† or â€Å"Go Diego Go. † The actual quality of these films is meaningless to children. Deny them the opportunity and they feel cheated. Take them to a bad film, and they become instant film critics.My son has a little bit before he gets to that point, but you get my drift. Yet I still try taking him, I do. As a family, we al l including my son like the funny movies. It is a given that we will see every new â€Å"Romantic Comedy† or â€Å"Kids Movie † film that makes its way to theaters within the opening week. Some other adaptations or other very film-not-movie type films warrant their own special experience for me, I suppose, due to my Romantic interest. Not terribly long ago I dragged my Sister to see a film entitled â€Å"The Vow† This film deals with a real love story of faith, the tale of a love that refuses to be forgotten, and is ased on the actual relationship of Kim and Krickitt Carpenter, who wrote a book about their marriage, also known as The Vow. Most movies that I will rent but not pay theater prices to view are the free kids movies or worse†¦BARNEY AND FRIENDS! These movies were the movies my mom used to say were a treat for us kids if we were good. â€Å"Free and funny† she called it. The previews sell them quite well but not well enough to put them on th e must-see list. So they end up in my home during one of those hey-want-to-rent-a-movie times. Unfortunately, finding time to watch a rented video or DVD is not an easy feat at my house.My son likes to fight his sleep and then homework and dishes and extra cleaning on the weekends when company comes over. The weekends are about the only times my son and I feel like staying up late to watch a movie. (Probably the only time he stays up late EVER), and not surprising we fall asleep just minutes into our rented films. Sometimes these films go unwatched back to the movie store. About once every couple of months when there's nothing I want to see on the Lifetime Channel, ill flip through the channels and find a movie.I don't pay for any of the special movie channels because I would never see a return on my investment. But I first saw â€Å"The day after tomorrow,† â€Å"The Alamo,† â€Å"The Shawshank Redemption,† and numerous others this way. Of course, they were fou r or five years old when I finally saw them. One plus to; waiting this long to see them is that I won't be influenced by the viewpoints of others when I formulate my critical analyses. Regardless of the genre and regardless of my personal classification, I find most films to be a bit of a let-down, especially if someone has raved to me about how wonderful a particular film is.I always seem to think the â€Å"industry† could do better. For this reason, many of them make it to the watch it on television group. On the other hand, those that do make it to the theater group are often suitable enough to make it to the purchase for home group, but that's really another class altogether. So with all that said and done; I think I would rather just chill at home with my son and wait 4-5 years to watch a movie on television, than spend almost 40 bucks on a movie I will probably only watch once at the theater. And save me a lot of time and effort as well.

Efforts to Revive Membership in the British Trade Unions Essay

Efforts to Revive Membership in the British Trade Unions - Essay Example Any laxity on the side of the unions in the push to champion employee rights may lead to the uncalled fall and liquidation of initially successful trade union. It is worth acknowledging that British trade unions enjoyed the advantage of high membership registration immediately before 1979. However, this high historic clamour did not last long as the trade unions faced a tragic resignation and defection of their member. The main causes of the fall of the British trade unions were due to the high risk of unemployment due to the financial crisis that resulted in a high lay-off of workers (Smith 2011). In addition, the employees were defeated by the government in their push for salary increment, an incidence used by the government to institute laws allowing the employers to sack their rebellious workers at will. Furthermore, the Labour government made depriving laws in 1974 with a move to revenge against the great miners strike by adopting the Tory anti-union laws designated to cut indus trial wages. Labour government also worked hard to weaken the momentary strong shop stewards’ organization. The initial moves accomplished by the Labour government demoralized individual workers from participating in national votes thus paving way for Margret Thatcher and Tories laws insurgence to power. Upon entrance of the Conservative government into power under the umbrella of Margret Thatcher, new mechanisms were devised to reverse the defeat suffered by the employers at the hands of the trade unions. In that line, Margret started by isolating the key trade unions after which Tory anti-union laws of 1980 was adopted. Conservative government began the fight with the steel miners and the health workers in the year 1980 and then the printers in 1985 whose defeats returned to the government. In addition, there was great contest between the leaders of the various trade unions over who could lead the entire trade unions in Britain. This led to the automatic weakening of the ef forts of the entire trade unions (Smith 2011). Since 1980, British trade unions have tried to regain their former stature and power with limited success. In a move to restore the initial membership of workers into the trade unions, British trade unions have adopted practical policies that have stood to bear desirable results that in reviving the image of the trade unions. According to Budd and Mumford (2001, 2), many trade unions in the British economy have adopted family-friendly policies, which have led to the recovery of particular trade unions. The family-friendly policy entails the provision of subsidized onsite daycare to the workers on board. In addition, family-friendly practices provide free health care services to the children of the employees. Furthermore, the family-friendly services offered by the trade unions in Britain avails free meals to the onsite workers, a practice ought to increase the performances of the employees. Family friendly practices include provision of benefits that allow flexibility of the employees to tune from full time workers to balance between work and family issues. According to Budd and Mumford (2001, 3), the most critical component of benefits offered by the family-friendly policy is the leave policies.

Research paper on false memory for psychology Essay

Research paper on false memory for psychology - Essay Example This paper aimed at ascertaining whether this is true using a sample of 126 people (36 Females and 90 Males). According to Roediger III, H et al. (2001), visual objects are better remembered than are words which are just memorized. To him, imagery aids are remembered since they are retained in the memory. All recall phenomenon depend on the interaction and retrieval process of the words to be recalled. To Roediger III, H. and McDermott, K.B. (1995), words which are associated with related words presented earlier on are false fully recalled. In a research, Roediger III and McDermott proved that, words which are related in a certain order are easier to false-recall than those that not related. This is so because, the memory tends to recall words in a certain order which may fail if the order is not followed. Human minds often retrieve information due to sheer falsehoods. According to Cathy, L. M. et al. (1999), in day to day life, many people interact, communicate and form and interrelationship between the various words they sue. To Cathy, L. M. et a, the ability to recall this words depends on the preexisting connections between the words and the other associates. The study below is based on the capability of recalling words. Age has also been cited as a factor in memory recall. In this case, this will be tested with the age of the various participants being split into two, those aged between 15-21 and those above 21 years; However, according to many researchers, the ability to recall words not included in any list does not depend on ones age. In this research study, it will be assumed that, the recall capability of all the participants is the same across all ages. Almost all of them are assumed to be able to recall words at the medium level. Some 126 participants were selected for the study with 36 females and 90 males. All of them were required to read the 15 words from the 15 lists and then told to remember

Using the UTILITARIANISM STRATEGY Briefly explain the strategy in your Essay

Using the UTILITARIANISM STRATEGY Briefly explain the strategy in your own words and describe how the strategy would be used to determine the right action if you found a wallet containing $300 - Essay Example Mill argues that people should act the way it brings them as much happiness as possible, and the only way they should sacrifice their own interests if their decision will bring more valuable common good than the personal one (Brink 2008). In the situation when someone finds a wallet containing $300 Utilitarian ethics has a certain way of solving such a moral dilemma. As far as human should act the way it will bring him more happiness, but acting morally, if you know whose wallet it is than you have to act according to the principle: do as you would be done by. The explanation is very simple: if the moral principle’s purpose is to build good and virtuous society, than everyone would be happy and grateful to receive his lost wallet. But if you don’t know whose wallet it is than you can keep it, because the money you found will make you happy. Brink, David. (2008). Mills Moral and Political Philosophy. The Stanford Encyclopedia of Philosophy (Fall Edition), Edward N. Zalta  (ed.). Retrieved from:

The Spirit catches you and you fall down by Anne Fadiman Assignment

The Spirit catches you and you fall down by Anne Fadiman - Assignment Example That is, the existence of soul has not been proved. In addition, life entails myriad crucial facets for example; life entails the aspect of being healthy physically, emotionally and psychologically. In this regard, life facilitates the proper human body functioning. The pertinence of soul has not been proved in any case; it importance is based on the theoretical view it is a form of life that exists in after life or eternal life. The argument with regard to the importance of life relies heavily on one’s belief for example; a person who believes in biological explanation of life may tend to argue that life is more important owing to the fact that it has been confirmed by scientific research. On the other hand, people with more belief on religious and philosophical beliefs may tend to argue that life and soul may have similar values. Taking these factors into consideration, it is evident that the perception of the importance of life and soul varies from one person to another. However, from my personal analysis and understating, life is more important than the

Risk Management and Investment Essay Example | Topics and Well Written Essays - 3750 words - 1

Risk Management and Investment - Essay Example From the report, it is evident that the performance of the firm is better than the performance of other investment funds. Additionally, various risks come along the portfolios. Consequently, the recommendations reside on the basis that adding, modifying, and excluding some of the investment funds in the portfolio with improve the performance of portfolio. The investment portfolio is aimed at maximizing income located in the United Kingdom. The investment fund comprises of Greggs Plc., Tate & Lyle, Domino Printing Services, JD Sports Fashion PLC, Bellway PLC, William Hill PLC, Beazley PLC, RPC, Group PLC, Huntsworth Plc, CSR Plc., and cash worth 5 million pounds. From the stock 10 of them are securities and only one is 5 million pounds on deposit, which will earn, one per cent since the date inception (Markon 2010). The investment fund is a type of income whose main purpose is to maximize return with very low risk. Therefore, the investment fund needs to invest in securities having stable income like fixed income securities, blue chips, and deposit receipts. Although the growth of the securities is not stable, they are not exposed to various risks. The report discusses the past performance of the investment fund. Thereafter, the paper analyses the risk of the investment fund, which may hinder the fund from achieving income maximization (Fama 1970). Finally, the paper outline crucial and helpful recommendation for the investment portfolio to make sure that the aim of the fund is satisfied. Before the third section, it is assumed that the date of inception is 1st January 2012 and cut off date is 3rd Februrary. Secondly, the paper ignores the changes effect, inflation rate, trade cost, and commission, which the factors will be nil. Thereafter, the return of the investment fund will be lower that the return of the investment fund. Consequently, the inter-bank lending rate of one year represents FTSE

Internet as the Greatest Transformative Force in Human History Essay

Internet as the Greatest Transformative Force in Human History - Essay Example Undoubtedly, the internet is increasingly one of the irreplaceable means of communication, for instance, it enables individuals to keep in touch and bring different people together, allows arrangement of meetings over the net among others. Therefore, many people argue that the internet has indeed adjusted their way of interaction with others. Most people including children spend their leisure time exploring the internet, download movies, video games among others. Moreover, people do join virtual social network through which they can discuss various aspects of daily life, and develop friendships and interact as if they are living in the real life. Some services provided by the internet such as webcam enable individuals to communication with relatives and friends from a distance. Furthermore, the invention of World Wide Web has impacted positively on the economic activities worldwide. For instance, today, various communicate or send a contract to customers from any part of the world. M ore so, people are able to send and receive e-mails instantly, and so, internet has enabled the international companies to manage their economic operations without experiencing many challenges. According to Anthony Giddens, the internet is the greatest transformative force in human history, and this paper presents a thoughtful argument supporting Giddens’s claim. ... The internet can be viewed as a database that is full of information and offers many services making people’s lives easier and cheaper. Back then, people used to travel to places in order to meet people, go to the libraries to do research, but with the development of internet, nearly all information needed are accessible (Groves 2009, 108). Today, many people use the internet for various purposes such as conducting research, sending e-mails among others (Lightman 2002). E-mail enables the user to compose a message and send it to the targeted receiver regardless of the distance (Kaminow 1997). Truly, the internet has transformed various aspects of our lives over the past few years, and it has transformed the whole world into a global village. In the contemporary world, life without the internet is impossible and unimaginable because almost every individual in the world depends on it either directly or indirectly. To start with, internet is very useful to many multinational comp anies as it enables these multinationals to provide necessary information on different products. More so, today, the internet is the heart of mobile banking and so, banking sector entirely depends on internet. In addition, many educational institutions use the internet for publication of different circulars and posting results, the students use the internet for study purpose. Moreover, individuals are capable of accessing a huge amount of information on any topic through the internet. This makes learning easier and students benefits a lot by using the internet for conducting research and doing their homework. Accordingly, the internet plays a very significant role in research work and

Innovative company Essay Example for Free

Innovative company Essay ?Innovative Engineering Company was founded by two partners: Meredith Gale and Shelley Yeaton, shortly after they graduated from engineering school. Within five years the partners had built a thriving business, primarily through the development of a product line of measuring instruments based on the laser principle. Success brought with it the need for new permanent capital. After careful calculation, the partners placed the amount of this need at $1. 2 million. This would replace a term loan that was about to mature and provide for plant expansion and related working capital. At first, they sought a wealthy investor, or group of investors, who would provide the $1. 2 million in return for an interest in the partnership. They soon discovered, however, that although some investors were interested in participating in new ventures, none of them was willing to participate as partner in an industrial company because of the risks to their personal fortunes that were inherent in such an arrangement. Gale and Yeaton therefore planned to incorporate the Innovative Engineering Company, in which they would own all the stock. After further investigation, they learned that Arbor Capital Corporation, a venture capital firm, might be interested in providing permanent financing. In thinking about what they might propose to Arbor, their first idea was that Arbor would be asked for $1. 2 million, of which $1. 1 million would be a long-term loan. For the other $100,000, Arbor would receive 10 percent of the Innovative common stock as a sweetener. If Arbor would pay $100,000 for 10 percent of the stock, this would mean that the 90 percent that would be owned by Gale and Yeaton would have a value of $900,000. Although this was considerably higher than Innovative’s net assets, they thought this amount was appropriate in view of the profitability of the product line they had successfully developed. A little calculation convinced them, however, that this idea (hereafter, proposal A) was too risky. The resulting ratio of debt to equity would be greater than 100 percent, which was considered unsound for an industrial company. Their next idea was to change the debt/ equity ratio by using preferred stock in lieu of most of the debt. Specifically, they thought of a package consisting of $200,00 debt, $900,000 preferred stock, and $100,000 common stock (proposal B). They learned, however, that Arbor Capital Corporation was not interested in accepting preferred stock, even at a dividend which exceeded the interest rate on debt. Thereupon, they approached Arbor with a proposal of $600,000 debt and $600,000 equity (proposal C). For the $600,000 equity, Arbor would receive 6/15 (i. e. , 40 percent) of the common stock. . . . Assignment 1. For each of the four proposals, calculate the return on common shareholders’ equity (net income after preferred dividends divided by common shareholders’ equity) that would be earned under each of the three income assumptions. Round calculations to the nearest $1,000 and 1/10 percent. 2. Calculate the pre-tax earnings and return on its $1. 2 million investment to Arbor Capital Corporation under each of the four proposals. Assume that Arbor receives a dividend equal to its portion of common stock ownership times Innovative’s net income after preferred dividends (if any); assume a â€Å"negative dividend† if Innovative has a net loss. 3. Were the partners correct in rejecting proposals A and B? 4. Comment on the likelihood that Innovative Engineering Company could find a more attractive financing proposal than proposal D. Answer : A. 1. 100k long term loan, 100k = 10% of Common Stock. B. 200k Debt, 900k Preferred Stock, 100k Common Stock. C. 600k Debt, 600k Equity, arbor will get 40% of the equity D. 300k debt, 900k equity, 50% Interest 8% Dividend 10%

The Supply Chain Management Of Nike Marketing Essay

The Supply Chain Management Of Nike Marketing Essay Nike is an innovation company, designing and planning for the sustainable economy of tomorrow, not just today. Climate change, and reducing Nikes environmental footprint, is something the company has been focused on for well over a decade, in conjunction with broader sustainability work.   By setting strong targets greenhouse gas emissions from owned operations and business travel were reduced by 18 percent from 1998 to 2005, despite an increase in the square footage of Nikes operations.   The majority of Nikes climate change impact derives from the operations of the more than 700 contract factories producing Nike-branded product.   Given that the transport operations which move Nike product from the point of manufacturing to the distribution centers account for about 25 percent of Nikes CO2 emissions, the company has set a target to reduce the inbound logistics footprint by 30 percent. Supply Chain Management which Nike have in its Considered Design becomes a di ¬Ã¢â€š ¬ erentiator for brands and a source of competitive advantage, company think it is crucial that the consumer has accurate, complete information on not just the delivery of green products, but the extent to which the company is committed to greening its entire supply chain. As early as 2003, Nike developed a baseline of its supply chain general environmental footprint, including inbound logistics and subcontracted manufacturing.As part of the companys Climate Savers agreement, Nike partnered with the University of Delaware to develop a model for measuring inbound emissions of product transportation from factory to  ¬Ã‚ rst distribution facility. Nike is working to expand that model to measure outbound shipments from distribution facility to retail. Footwear contract manufacturing, a majority of which is in Vietnam and China, is another major challenge for Nike. The company has began with audits of key factories to identify energy-intensive processes and potential areas of savings. Nikes US supply chain team has set goals to reduce its overall carbon footprint and is working closely with third-party logistics providers to  ¬Ã‚ nd opportunities to optimize fuel consumption and accelerate the use of alternative fuels. Nike also assessed its packaging footprint as part of a company-wide waste mapping exercise in making excellence in all aspects. The Challenge Finding a business solution that allows this leading apparel and footwear maker to align its demand and supply in a way that minimizes inventory and improve customer service levels. Business users were not satisfied with existing implementation of the demand planning system. The Solution Bristlecone developed and deployed planner DA and SC Policy Manager, composite pre-configured applications that allowed Nike to enforce higher level supply chain policies without having to deal with voluminous SKU Level demand and supply information. The composite apps bridged the gaps between Nikes existing ERP and SCM systems.   Business Impact   Ã‚  Ã‚  Ã‚  Ã‚  > Better ROI from existing ERP and SCM solutions     Ã‚  Ã‚  Ã‚  Ã‚  > Improved visibility into supply and demand     Ã‚  Ã‚  Ã‚  Ã‚  > Planners empowered to better align supply with demand   NIKE, Inc. recognizes the need for a well-coordinated and efficient supply chain for its business and the industry. Because the supply chain spans multiple jurisdictions from raw materials to production to shipping to retail and, ultimately, to consumers, a consistent and mature public policy position is needed. Nike support policies that deliver efficient, cost-effective delivery of NIKE Inc. products in a responsible manner. Our efforts concentrate on ensuring efficient transport, security and safety of NIKE, Inc. products throughout the supply chain. In addition, we advocate for policies that help to ensure that NIKE, Inc.s supply chain from factory to consumer operates in a manner that considers both people and the environment at each step of the way. We work with a number of bodies to advocate for these policies. These include national governments, industry associations and NGOs. Nike see two major changes in their supply chain management system. The first involves the apparel side of our business. With the elimination of quotas,they have changed their sourcing strategy to enter into many more strategic partnerships than they did in the past. Not all of apparel will necessarily be made in China. But going forward,they see many more apparel companies focusing on partnerships, and that should help in injecting more speed and agility into the supply chain management of Nike. 1) The second major change hinges on the need to be more demand-driven. Point-of-sale [POS] technology has progressed significantly in recent years, and POS information is more readily available and also a lot cleaner than it was in the past. At this point, it is up to company to figure out how to use that information to become much more responsive to the needs of our customers and deliver the products at a best suitable procedure and creates the value for time. 2) RFID will no doubt help Nike in a number of ways for continous improvement of supply chain management .RFID is being used to identify inbound and outbound product. RFID is being used in the warehouse to locate product. It is being used in manufacturing and processing industries to track and locate WIP (Work in Progress) and finished goods. RFID is being used to monitor and track product in transit, and RFID is being used to ensure store shelves are replenished.GAO RFID understands that the Supply Chain requires more than one type of RFID technology to satisfy all these different requirements and has developed different solutions for tracking as well locating.But they believe that it has the potential to help us build more demand responsiveness into our supply chain.   Nike has played a leadership role, along with other businesses and multilateral development organizations, in supporting infrastructure development in Vietnam and encouraging supply chain management of nike inc. The first component of the program involved having key Vietnamese government officials visit a Nike footwear factory in Vietnam and subsequently physically follow the movement of finished products from the factory to the port. The group traveled to southern China, an area well known for its development of physical infrastructure. They also visited Singapore to see world-class port facilities and operations and learn about infrastructure planning and financing. Not only the operation of nike in many countries today than they did 10-to-15 years ago, but the regulations in these countries are always changing. For example, back in 1990, the average tariff in India was about 58% for products coming in, and now its about 20% or so. Similarly, the average tariff in China used to be 30%, and today its about 6%. As a result, Nike operates differently today in the global marketplace even in countries where they had a presence for years. Formerly, because of the high tariffs, Nike tended to do mostly local sourcing. But now that tariff rates have fallen and subsequently increasingly starting to do much more deployment of global sourcing space, and thats changing the whole Nikes supply chain network Nike also overhauled its supply-chain system, which often left retailers either desperatel. The old jerry-built compilation strung together 27 different computer systems worldwide, most of which couldnt talk with the others. Under Densons direction, Nike has spent $500 million to build a new system. Almost complete, it is already contributing to quicker design and manufacturing times, and fatter gross margins 42.9% last year. That still-modest portfolio of different brands helps to lessen the companys dependence on hit shoes and could help Nike turn in a more consistent performance. Thats why Nike is eager to snap up complementary brands as they become available. In mid-August it paid $43 million for Official Starter Properties, licensors of sneakers and athletic apparel whose brands include the budget-level Shaq label. What were trying to do is move toward more of a consumer, noncyclical model, says Blair. The key is trying to find the right balance of discipline, innovation, creativity, and structure. Nikes Supply Value Chain In 1984, Nike owned just 16% of the athletic-shoe market, and for much of the 1980s it was running neck-and-neck with Reebok (Wilson 1).    Now, with somewhere between 43-47% of that market, Nike is the undisputed leader. However, things are not perfect with the company.    In the late 1990s, Nike began to see the results of many unresolved issues concerning competitive forces exterior to the company and a value chain, unrepresentative of its marketplace and enormous growth, interior to the company.    Both issues affected its bottom line negatively.    One significant issue was simply a function of poor inventory management and demand forecasting, coupled with the ongoing and dramatic slump in Asian sales. Nike had anticipated a doubling of Asian revenues, but saw instead a decline .   Nike also had recurring problems managing the flow of goods from manufacturers to retailers.    Finally, Nikes competitors, most notably Rebox, New Balance, Adidas and Fila, were copying m uch of the look of Nikes advertising campaigns, making its image projection much less effective.  Ã‚   Nike faced many challenges that they face in building, managing, and expanding global supply chains. Following are some of the nuggets gleaned from their remarks: Ocean freight between Asia and North America routinely takes 45 days or even as long as 60 days, in the event of missed sailing schedules or other problems. When an order is delayed, it has to be expedited through the manufacturing process, and the burden falls on transportation to offset the delays. But trying to make up for lost time by air freighting containers has a ruinous effect on freight budgets. Cross-country cost comparisons for sourcing product should be calculated on an all-in basis, including the costs of ownership along with all other costs incurred across the supply chain. Global supply chains daily involve such vexing problems as complex import-export processes, inadequate logistics infrastructures, and a gauntlet of regulations and trade agreements that are forever changing. When network optimization studies are prepared, they must identify and include the infrastructure-related challenges that are commonplace in emerging markets. Owing to escalating product proliferation, a key challenge is to build more speed, responsiveness, and adaptability into supply chains while still meeting the diverse needs of consumers in different markets. Customers are becoming more sophisticated and demanding, insisting on shorter lead times and faster inventory-turns. To be competitive, suppliers must accommodate these requirements without inflating their cost structures. Looking ahead, freight transport looms as a major source of concern including rising costs, capacity bottlenecks, and homeland security. The relative costs of manufacturing onshore versus offshore are shifting, and the balance could tip in favor of manufacturing beginning to migrate back to the U.S. from offshore locations. Worldwide, Nike faces a huge amount of product proliferation, and their challenge is to build more speed, responsiveness, and adaptability into our supply chains while still meeting the diverse needs of consumers in different markets.They started to create more partnerships with suppliers and carriers and implementing lean manufacturing programs everything and anything that can help us get more flexibility into their supply chain SUPPLY CHAIN MANAGEMENT OF NIKE IN INDIA At Nike which has $16 billion in revenues today with the goal of getting to $23 billion by 2011 process excellence is a key component of the companys supply chain strategy. Nikes three businesses footwear, apparel and equipment have some similarities since most of the products are made in Asia and sold to similar customers worldwide. Their production processes, though, are completely different. Much of this has to do with the fact that from the time Nike began in 1964, it has never owned a factory but has chosen to work through contract manufacturing. They are trying to build our strength in process excellence through standardization and also doing this through the concept of lean manufacturing, which Toyota has made popular. Nike is also working towards what it calls delivery precision. Nike conceives its products in the form of collections. A collection could consist of a top apparel, a bottom apparel, shoes, bag, cap, etc. This is how customers typically like to buy products. While Nike designs these products as part of one collection, each category of items is made in different locations. As a result, if supply chain execution goes awry, these products are not available as complete collections, and that leads to loss of sales. Getting this streamlined is extremely challenging because it involves changing the way contract manufacturers work. Nike supply chains need to support our different businesses and different business models, One of our key challenges is to design supply chains that can leverage what is common and use common platforms and, at the same time, customize parts of the supply chain wherever necessary to meet the end needs of the markets specially in countries like india.

Study Of The Leadership Of Adolf Hitler

Study Of The Leadership Of Adolf Hitler Adolf Hitler was born on 20th April 1889, in the small Austrian town of Braunau. When the World War I began in 1914, Hitler volunteered to join the German army. He was given a medal for bravery but he never had the chance to climb any rank. In 1920, Hitler joined the National Socialist German Workers Party, which was known as the Nazis. Hitler became leader of the Nazi party by using his great speaking ability. In the 1930s depression Germany had to pay an even greater debt, which was coming for the World War I. Hitler did not agreed to pay the debt and stated that the Jews and Communists were the cause for Germanys defeat in World War I. He ensured that his party was going to get rid of Jews and Communists and that he was going to reunite the German speaking part of Europe. In 1932, the Nazis party got about 40% in the elections and became the strongest party in Germany, so in 1933 Hitler was appointed as the Chancellor of Germany. Under Hitlers government, called the Third Reich, H itler used widespread propaganda to brainwash and manipulate the nation into accepting his theory about creating the perfect Aryan race. In 1939 when the World War II began, Hitler invaded into Poland in order to unify as he promised all German-speaking peoples. By this time extermination camps were being established throughout Germany, Poland, and Russia. When Hitlers plan did not worked out, he committed suicide on April 30,1945 [1]. 2. Leadership Traits 2.1 Charisma-Passion-Vision Hitlers charisma was the key to the whole success of National-Socialism, which he was supporting and wanted to pass through the people of Germany. Hitler obtained this charismatic altitude partially because of his political skills and appeal. The enabling factor, which was helping Hitler accomplishing almost every task he had, was his surprising clarity of vision. He had great ideas for Germany, to be bigger, better and purer than ever but also he was driven by his ego to take over the world, which was not as pure as he wanted Germany to be. Hitler was revealing his passion through his speeches. He knew that by arriving late at the meeting point would develop tension among the audience and make them expecting him. When he was arriving at the stage he was standing attention and was waiting for every one to stop talking so as to have total silence and then to start. His moves and gestures were so forceful. He was walking from side to side at the stage and he was gesturing with his hands and the tone of his voice was loud and passionate. He was sweating; his face was getting white, his eyes were bulged and his voice was full of emotion. He was shouting about the unfairnesss and prejudices done to Germany and he was making his audience to be full of hate and jealousy. So by the end of his speech the crowd was in a condition near to madness and was willing to do everything Hitler was implying. 2.2 Determination Hitlers determination and tremendous tenacity of purpose were two characteristics, which described him through his governance. He was a man who was striving for power and command. In order to have the power to be the commander of Germany and conquer the whole world, he managed to climb all the way up from being a simple soldier in the front line to become the chancellor of Germany and the commander of a enormous army. This fact indicates his great will and capability to meet his objectives and to achieve whatever he sought. 2.3 Integrity Despite the fact that Hitler was a great leader he had no sense of logical thinking. Hitlers lack of ethical reasoning and social intelligence goes back to his low self-awareness, empathy and interest in others. He was unethical in thoughts and actions, taking advantage of situations, which his followers were in, in the most vicious approach to reach his goals. By manipulating his army to put Jews into extermination camps, is the biggest example not only of his immoral and wicked character but also his twisted mind. 2.4 Confidence Hitler was greatly self-assured of his own abilities. His rise in the hierarchy scale, his influential speeches, the fact that he managed to get Germany back from the edge of economic disaster, the battles which he was making in crucial places or in critical time periods are facts which are showing the huge levels of confidence that Hitler had. 2.5 Sociability In terms of Hitlers management towards his secretaries and the people who worked with him closely, Hitler was, surprisingly enough, the more thoughtful boss. In fact, the fuehrer was adored by those who worked closest with him. His secretaries never became maddened by any kind of rudeness or lack of indulgence towards them. Hitler knew their names and birthdays, he was visiting them when they were ill, and they repaid him with lifetime loyalty, even after his crimes became generally known. 2.6 Intelligence Hitlers intelligence is indisputable. He managed to get Germany back from the edge of economic disaster and made them flourishing again, from a beaten country to a world power in just a few years. The fact that Hitler came from a front-line soldier to the fuehrer shows not only, as it was aforementioned, his great will and capability to meet his objectives but also his great mind sharpness since he was able to manipulate, even brainwashed a whole nation in order to do that. 3. Leadership Style 3.1 Task oriented Hitler was a high task oriented leader. He had clear vision and knowledge of the path for execute his strategy so he is the one who directed his people in an attempt to execute his vision. He wanted to monitor everything and retain control of every task, which was about to be executed. He never blamed himself for his failure but the other which in his case was Germany as a whole. 3.2 Relationship oriented In terms of Hitlers relationship orientation we can mention that he had really good interpersonal relations with those who worked closest with him. He knew personal details for them, fact which shows that he was interested in them and in their personal psychological health. He was visiting them when they were ill fact, which shows that he was interested about their physical health. So we can say that Hitler had good leader-member relations, his task orientation was high, and finally, his position power is strong, since he had all the authorities of the country. Consequently, Adolf Hitler appears to be a Task-Oriented Leader. 3.3 Transformational Transformational leadership is a type of leadership style that leads to positive changes in those who follow. Transformational leaders are generally energetic, enthusiastic and passionate. Not only are these leaders concerned and involved in the process; they are also focused on helping every member of the group succeed as well[2]. Transformational leaders engage in intellectual stimulation and inspirational motivation. As far as intellectual stimulation is concerned, Hitler was visionary wanted for Germany to be the first power and for him to conquer the world. As far as inspirational motivation is concerned, Hitler strived to be different in order to become the great world leader and had the proper for him plans and tactics on how to achieve his goals. In order to have their country standing again to their feet Hitler appealed to the values and ethics of the German people. Despite the fact that the need for resurrection in Germanys economy was obvious we can say that Hitler instead of fulfilling his followers higher mental needs and aspirations he was fulfilling his own needs. He was a dominant, magnetic leader that would possibly fit the characterization of a pseudo-transformational leader, because a leader satisfys the needs of his followers and their well being but Hitler did not do that. 4. Strategy Adolf Hitler was a very good strategist. The main point of Hitlers strategy was the accumulation of Lebensraum (Living space) for the Germanic race [3]. Citing the Treaty of Versailles suffocating indemnities and exploiting the public nervousness of the 1930s economic lack of money, he declared that the German borders were too restricted to secure their suitable position in the geo-political world relations, and that he wanted regions similar to the (British and French) colonies to secure enough economic resources to assure Germanys position as a major power [4]. The planned strategy to realize these goals was a series of quite short wars, to defeat one opponent at a time, and thus securing more land step by step. These wars were to be intertwined with periods of peace when the German army could re-supply and amass force for the next war. As the time was passing by his strategy was based on paranoia and cruel logic. Despite that, his inland territory remained very strong and indisputable. Afterwards, he ordered a constant bombing in Britain despite the strategic costs and failures. In the final stages of the war, his actions and orders were getting more and more mad rather than any attempt to have a rational strategy. 5. Authentic Leadership In my opinion Adolf Hitler was not an authentic leader. That is because, firstly, he promised he would help revive Germany; however, he did not say that he would take over most of Europe doing so. Secondly, in order to be authentic one must has self-awareness, to know not only his strengthens but also his weaknesses, an ability that he lacked. And thirdly, the most of the times, his feeling for conquering Europe, be the winner and the Fuehrer was overshadowing his rational thinking, which at the end brought the fall of his empire. 6. Leadership Level: Kouzes and Pousner believe that effective leaders engage in five practices; model the way, inspire a shared vision, challenge the process, enable others to act, and encourage the heart (1995). These practices and other leadership concepts provide a means of shaping a model leader. Understanding that effective leaders will also hold individual leadership traits, defining the term in a general sense is a challenge. For the purpose of our chapter, we will define effective leadership as the art of mobilizing others to want to struggle for shared aspirations (Kouzes Posner, 1995, p. 30)[5]. In my opinion, Hitler, is considered to be a level four, Effective leader, as he was able to maintain a helicopter view just before the end of the war. He was setting the directions and he was effectiveness and inspiration oriented. He was developing a high performance culture so as his army to be able to have the desired results. Although Hitler did had the professional will, a person who wants to conquer is not even close to personal humility, so he could never be at level five, Executive. 7. Action Logic Adolf Hitler follows the strategist action logic. In their analysis of action logics, Rooke and Torbert (2005) identify two characteristics of the strategist action logic. Firstly, strategists generate organizational and personal transformations and secondly, they exercise the power of mutual inquiry, alertness and vulnerability for both the short and long term. Additionally, a strategist is considered to be very effective as a transformational leader that is a pseudo-transformational leader in this case. Accordingly, Hitler focuses on building a long-term strategy that is first to revive Germany from its economic ruins and then to have the proper battle in order to have under his command all the Europe. Moreover, a large percentage of his attention lies on giving inspiring speeches to his people in order to keep them in tense and under his mental control. Another strength of Hitlers is his ability to climbing through the scales of hierarchy in his personal life, which in turn he transferred it to its leadership and managed to have Germany a major power in few years. 8. Evaluation Closing, in my opinion, we conclude that there is no alignment between Hitlers leadership style and the strategic needs of Germany. He exclusively focused on his own selfish goals for taking whole Europe under his control, instead of the needs of his people. He took things too personally overshadowing his rational thinking so he had intense rivalry with the rest of the world. Winning was so important for him that he would do anything to achieve it. These aspects of his character led him into madness and paranoia and at the end was the factor that took him down to the distraction.