Conditions for Equilibrium Essay Example for Free

Conditions for Equilibrium Essay When we say equilibrium, it is a state of balance. It is a condition where there is no change in the state of motion of a body. Equilibrium also may be at rest or moving within a constant velocity. A simple mechanical body is said to be in equilibrium if no part of it is accelerating, unless it is disturbed by an outside force. Two conditions for equilibrium are that the net force acting on the object is zero, and the net torque acting on the object is zero. Thus, the following objectives were emphasized in this experiment: to determine the equilibrant force using the force table and the omponent method, to determine the unknown forces using the first condition and second conditions for equilibrium, to locate the centre of gravity of a composite body, and to demonstrate rational equilibrium. 2. Theory Equilibrant is equal in magnitude to the resultant but oppositely directed. The first condition of equilibrium is when a body at rest or moving with uniform velocity has zero acceleration. The center of Gravity is the point where the weight of a body is assumed concentrate. The second condition of equilibrium is satisfied when the sum f all torques acting on an object about any axis equals zero. In activity 1, TA or the tension acting on the string is the weight of the pan A plus the weight added to it and multiplied to 9. 8 m/s2 TB or the tension acting on the string is the weight of the pan B plus the weight added to it and multiplied to 9. 8 m/s2 Experimental Equilibrant is the weight of the pan A plus the weight added to it. Theoretical Equilibrant= % Error = Exp. Theoretical X 100 Theoretical In activity 2, the equation Tl T2 cos e = O was used. From the equation, was derived to get the value ofT2 where, Tl is the reading on he spring scale when the pin is exactly at the middle of the ring e is the angle of the string makes with the horizontal Experimental Weight = T2 sin e Theoretical Weight= In activity 3, to check the results, the actual computation of center of gravity was used. Where XC and YC are the coordinates of the center of gravity of the circle, XS and YS of the center of gravity of the composite fgure. In activity 4, the equation was used, where, Xl is the length of the cylinder used X2 is the length of the center of gravity of the cylinder. And X3 is the length of the cylinder minus the 5. 0 cm. . Methodology There are 4 different kinds of activity in the experiment to determine the conditions for equilibrium. The materials used were the following: Force table and accessories, force board, cylinder of unknown weight, spring scale, electronic gram balance, card board, aluminum bar, cylinder of unknown weight, and protractor. For activity 1, the group used a force table, its three pans and accessories. The three pans were weighed and labeled as A, B and C. Pan A was hung at 30 degree mark and a 100g was placed on it whereas on pan B a150 g was placed and was hung at 200 degree mark. The group balanced the two tensions in the strings by placing weight on the pan C or adjusting its position in the force table to obtain the magnitude and position of the equilibrant. The theoretical equilibrant of the two tensions was solved using the component method. The group then computed the % error using the values obtained by the component method as your accepted value for magnitude as well as direction. Figure 1: Set-up for activity 1 For activity 2, a cylinder of unknown weight was suspended on the force board by means of two strings. A spring scale was then attached to one of the strings. One member of the group pulled the string horizontally until the pin was exactly at the middle of the ring. The reading on the spring scale was recorded as Tl . Another member of the group measured the angle that the other string makes with the horizontal and solved for the tension T2 of the other spring and the weight of a cylinder. Percent error was computed after. For activity 3, the group used a circle of diameter 10cm and a square of side 10 cm from the card board. The circle and the square was weighed and recorded as wc and Ws. The group determined the center f gravity of the composite fgure by using the balancing method and composite method. In balancing method, a pen was placed in the middle of the composite figure wherein the plumb method, the group used a string with a coin at the end then hung it from any point and measured where it intersects on the composite fgure. Figure 2: Balancing Method Figure 3: Plumbing Method For activity 4, the group first located the center of gravity of the aluminum bar by balancing it on a pencil. The cylinder used in activity 2 was hung 5. 0 cm from one end of the bar. Using the force board, the aluminum bar was supported by means of spring scale on the end and a string on the other end until the bar assumes a horizontal position. The group used the second condition for equilibrium to determine the weight of the bar and the tension in the string. Percent error was also computed. . Results and Discussion Activity 1 Tensions Magnitude (N) Position(0) TAI. 3105 300 1. 7962 2000 Experimental Equilibrant 0. 6241 3600 Theoretical Equilibrant 0. 5545 3560 % Error Table 1: Results of Activity 1 Table 1 shows the magnitude and the positions of the equilibrants and the tensions acting on the pans. The theoretical equilibrant of the two tensions was solved using he component method. The % error was computed using the values o btained by the component method as the accepted value for magnitude and the direction. Some factors that contributed the 13% error in this activity were the accuracy of the force table and its accessories used. Activity 2 Tl (N) 63 N (0) 440 T2 (N) 8. 7 N Experimental Weight (N) 6 N Theoretical Weight (N) 6. 3 N % Error 13. 2% Free Body Diagram of ring Table 2: Results of Activity 2 Table 2 shows the different unknown forces acting on the cylinder using the first condition for equilibrium. Some factors that contributed the 13. % error in this activity were the accuracy of the spring scale used and the pulling of the string horizontally. Activity 3 Weight of Square= 8. 36 g Weight of Circle= 6. 94 g Method Center of Gravity X- coordinate Y coordinate Plumb line Method 10 5. 2 Balancing Method 9. 55 4. 5 Computation 9. 54 5 Table 3: Results of Activity 3 Table 3 shows the x and y coordinates of the center of gravity of the component fgure using plumb line method, balancing method and the actual computation. In balancing method, a pen was placed in the middle of the composite figure wherein he plumb method, the group used a string with a coin at the end then hung it from computation was written in the manual. Activity 4 Reading of Spring Scale (N) 5 N Weight of cylinder (N) 5. 3238 N Experimental Weight of bar(N) 0. 7418 N Theoretical Weight of bar(N) 0. 7977 N % Error 7% Free Body Diagram of bar Table 4: Results of Activity 4 Table 4 shows the different unknown forces acting on the bar using the second condition for equilibrium. One factor that contributed the 7% error was due to the person holding the string at one end to make the cylinder bar in horizontal position 5. Conclusion Different activities in this experiment were accomplished to understand more about the conditions for equilibrium. Based from the results obtained by the group in the different activities, the group was able to determine the equilibrant force by using the force table and the component method. The unknown forces using the first and second conditions for equilibrium were determined. Using the square and circle fgure, the center of gravity of a composite body was located. Rotational equilibrium was demonstrated because the sum of all of the torques equals zero 6. Application 1 . State the first condition for equilibrium. If a body is in equilibrium, are there no forces acting on it? Equilibrium means the sum of all forces in all directions is equal to zero. It doesnt mean that there are no forces acting on it. It Just means that the forces that are acting on it are equal and opposite. 2. The Russell Traction system is used for a fractured femur. Identify the forces acting on the femur. If the weight hang is 5. 0 kg, find the force needed to immobilize the femur. What will supply this force? 3. What happens to the center of gravity of a person under the following situations? A. ) His upper right extremity is amputated. B. He carries all his books using the right arm only. )When ones upper right extremity is amputated, the center of gravity of the person would lean towards the right part of the body since the gravitational force on the remaining arm will push the center of gravity towards the right. b) When a person carries his books using only his right arm, the pull of gravity on the book would push the center of gravity of the body towards the left. 4. Devise a way by which you could determine your center of gravity. If the object is irregular in shape, the center of mass is always located closer to the more massive nd. Use felt pens to outline your partners body on a piece of butcher paper. Determine your partners approximate center of gravity by carefully cutting out the human outline and balancing it on your finger. Mark the center of gravity on your partners body with a piece of tape. Get a six foot piece of butcher paper and tape it feet. Mark their approximate center. Another way is to lie horizontally across the arm of a couch. The point where you are balanced is your center of gravity. 5. In general, the womens centers of gravity tend to be lower than mens. Can you explain why? Womens centers of gravity tend to be lower than mens because women have a bigger pelvis area. The skeletal structure of women make it so that their pelvis is bigger, since they will need the extra support come the time that they become pregnant, and their bodies support a baby. This means that the lower body of women is generally heavier in comparison to their whole body, as opposed to the lower body of men. This would make the center of gravity of women slightly lower, because more of their body mass is concentrated at the lower portion of their body.

Team And Leadership Effectiveness In The Workplace

Team And Leadership Effectiveness In The Workplace Leadership is defined as the process of influencing the activities of an individual or a group in efforts toward goal achievement in a given situation. In essence, leadership involves accomplishing goals with and through people (Hersey and Blanchard, 1993). Leaders envisage the future; they motivate organisation members and impart values-whether they are concerned for honesty, hard work, quality and taking calculated risk or concern for customers and employees. It seems there is no common definition of leadership , perhaps it is because the leadership concept is complicated and fuzzy. According to Robert Tannenbaum, Irving R. Weschler and Fred Massarik leadership is defined as interpersonal influence exercised in a situation and directed, through the communication process, toward the attainment of a specialized goal or goals. Leadership is about showing the way, by going in advance, and influencing the behaviour of others. It refers to introducing new business behaviour, practices, o r technologies, which demonstrate that sustainable development is possible (Sommer, 2003) Todays business leaders have identified two important factors that could drive success in organisations of world class cadre- continually enhancing performance by becoming faster, better and more effective, and including all employees in Performance improvement can be achieved only by enhancing the processes within an organisation. Since the processes are created and operated by the people, the only way to enhance performance would be through people. Therefore continuous effective improvement depends on the capability of managers to guarantee that each and every one becomes involved in enhancing performance, work efficaciously in teams in order to analyse processes, and study problems to implement solutions. Leadership Under the leadership of Mr. Narayan Murthy, the ex-chairman of the Infosys, the company has ended up being one of the most successful IT companies in the world. Infosys Technologies Ltd is one of the leading IT companies In India and worldwide. It is now a global leader in the Next Generation of IT and Consulting. Starting in 1981, Infosys witnessed its corporate success in a short time. Although the company started functioning almost twenty five years ago, it is in the recent times that it experienced strong growth. Ever since it started the company has had a remarkable growth in terms of revenue. Revenue in 1994 was only US$9.5million but in 2005 Infosys revenue touched US$2billion which was only half this revenue in 2004. There is a saying that Great companies can neither be built nor their greatness sustained without great leaders, the above results clearly proves that Mr. Murthy is one such great leader who lead the company to the success path. According to the Hay group review, a global management consulting firm, of 1249 leaders from prominent organisations functioning in the Indian market, about 60% create a de-motivating climate and do not employ those who can lead. It also found only 18% develop an engaging climate that promotes high performance. So today it is so very much necessary for many organisations to create motivating climate and engage people who can lead effectively. The successful organisation has one major attribute that sets it apart from unsuccessful organisations: dynamic and effective leadership (Hersey and Blanchard, 1993). Infosys took an initiative in this direction and opened Infosys leadership institute where it intends to grow leaders. The Leadership development program at Infosys Leadership Institute targets to produce a collective pool of leaders and shape them to take on present and future challenges in business. The Infosys Leadership Institute offers a wide range of organisational and individual development sessions to expound business problems. At Infosys they believe that a good leader can be only one who uses all different styles of leadership with one of them usually dominating and a bad leader is one who sticks to one style. At Infosys it is not that only the top management gives suggestions to support its vision and manage agility, uncertainty and ambiguity at all circumstances. Courtesy: http://www.authorstream.com/Presentation/swami_lalita-161501-infosys-leadership-ob-education-ppt-powerpoint/ The leadership believes in taking valuable suggestions from its young achievers in the company. The Chairman diagnosed that young achievers in the company were wavering to come forth with their ideas. These people had a great value to add to the company but could not give in to the discussions feeling in secured of infracting hierarchy. Mr. Murthy communicated to be open minded and encouraged the young achievers to speak. He found that the suggestions and thoughts given by them had a lot of substance and can significantly help the company. The leaders at Infosys are so very much adaptable, bothered significantly over the above issue they built a leadership institute where they can develop and groom leaders from its promising employees irrespective of the hierarchy and provide them the opportunity to help build the company. Today many organisations are facing talent problem, where people are being rushed into activities they are unaware of or assigned to jobs for which they have inadequate preparations. Due to the phenomenal growth of India in last 5 to 10 years people were getting promoted before their time and these people held a wrong perception of empowerment. Even though they had the authority, they lacked in terms of experience and credence to be true leaders. If organisations have to maintain conservative growth estimates, much of todays leaders need to motivate the employees who work for them. If not able to successfully motivate, it would be difficult to keep employees sticking around long enough to progress them into competent leaders. So it becomes very important to have motivating climate in any company in order to enhance its own performance. According to Hersey and Blanchard(1993), in leading or influencing there are three competencies of Leadership: Diagnosing-being able to understand the situation you are trying to influence, Adapting-being able to adapt your behaviour and other resources you have available to meet the contingencies of the situation, Communicating-being able to communicate in a way that people can easily understand and accept. The soul of leadership competencies in Infosys rest in their vision statement which reads as: We will be a globally respected corporation that provides best of breed business solutions, leveraging technology, delivered by best in Class people. To achieve their vision, leadership competencies have been marked along four dimensions: Work, people, technology and business. Each of these is further exaggerated into smaller functional terms in the graphic shown below. Courtesy: http://www.thehindu.com/businessline/praxis/pr0304/03040380.pdf The Infosys leadership institutes primary goal is to assist the company to counter the explicit challenges of now and in the future. They believe that by improving the quality of leadership they can handle its phenomenal growth, with stand the complexities of the market and swiftly changing environment, and through thought leadership they can develop higher customer value. Courtesy: http://www.thehindu.com/businessline/praxis/pr0304/03040380.pdf At Infosys in order to increase their quality of leadership they use a Nine pillar model of leadership development. At Infosys, for leadership development these nine pillars are functional elements. For the development of leadership competencies at discrete level each pillar has its own distinct importance. 360-degree appraisal: It is method of consistently collecting data about an individuals performance and potential from a broad range of co-workers. This may include the manager, direct reportees, peers and both internal and external customers. It is an organised method of gathering and processing data and gives the employee an opportunity to express on his valuable information. The response received from 360-degree feedback is used as a foundation to direct the person in gaining new skills and improving existing skills all arranged to the leadership competencies model. Development assignments: They are a traditional and powerful form of leadership development. Potential employees are allowed to have experience in various functions through Cross functional assignments and internal job rotations. Development assignments help an employee to gain practical leadership skills outside their zone of experience. Development relationships: Mentoring is viewed as a developmental relationship in the framework of leadership development. In order to transfer and share knowledge and experience, one-on-one relationships in work scenes are facilitated. This mentoring for leadership program is functional and learning from this course will be utilized to refine and broaden the element of leadership development throughout the organisation. Leadership skills training: It is a process by which individuals in the organisation go through a sequence of learning interventions on matter relevant to leadership. A Leaders teach series was formed in which the board of directors including the chairman, the Managing director, and the Chief Executive Officer hold a workshop with help of leadership institute faculty for the development of future leaders. Feedback Intensive program: These are comprehensive behavioural interventions based on informal and formal feedback taken from people that the individual interfaces with. These programs are structured in a way that individuals give and receive feedback in an environment that is non-threatening and could generate a workable plan for goal setting for progressive professional and personal development. Action Learning: It is a real time experience which is time based used to crack systematic, unresolved and real organisational problems. It is termed as a pragmatic process directed at producing a resolution a problem that has been identified by the organisation and a workable plan is designed for goal setting and strategies for progressive development to attain them. Systematic process Learn: It is an intervention that will enable individuals to view the organisation as system in whole which consists of many interacting sub systems. It is intended to yield plan for continuous advancement in systematic processes and details as to how a participant will initiate such an improvement. Community Empathy: The organisation holds a fundamental belief the social conscience requires to be nurtured and improved in each of its potential leaders. And the value of this community empathy aligns with the above fundamental belief. The Infosys leadership holds an ambition to opportunities for potential candidates on a regular structured basis to enrol themselves in cause outside the company that contribute to good of the less fortunate. Infosys culture workshop: These workshops are intended to help individuals to understand the purpose processes and the core values in ambience of leadership development. These workshops have been designed to in a way that allows expansive interaction among the individuals leading to strengthening of the Infosys culture and ensuring enough authorization to assure adherence to the culture of the company. Leadership traits: According to Warren Bennis, leaders should empower their organisations to develop an environment where people feel important, competence and learning matter, people are part of the team, and work is interesting. Leaders should also be creating an environment where standard matters and dedication to work enthuses effort. According to Huczynski and Buchanan, a charismatic leader holds the following characteristics: Visioning- providing a luxurious and extraordinary total dining experience that delights customers, empowering- giving staff a voice, showing confidence and trust, allowing staff to influence what they do, experiencing high standards,energizing- communicating vision, making staff feel part of something special, aiming for perfection, excitement, joy, passion in the work. The transactional leader a leader who treats relationships with followers in terms of an exchange, giving followers what they want in return for what the leaders desires, following prescribed tasks to pursue established goals( Huczynski and Buchanan, 2007) Transformational leader- a leader who treats relationships with followers in terms of motivation and commitment influencing and inspiring followers to give more than mere compliance to improve organizational performance( Huczynski and Buchanan, 2007) Traits that are found most often to be feature of successful leaders as per Yukl are: Assertive, cooperative, dependable, decisive, dominant, persistent, energetic, self-confident, willingness to assume responsibility, tolerant to stress, alert to social environment, adaptable to situations, achievement oriented and ambitious. Empirical research studies suggest that leadership is a dynamic process, varying from situation to situation with changes in the leader, the followers and the situation. Because of this, while there may be helping or hindering traits in a given situation, there is no universal set of traits that will ensure leadership success (Hersey and Blanchard, 1993) Team Work: Teams that can bring and stick employees together to investigate problems to implement solutions would be one of the best ways to increase productivity and product quality. And teams which can continually improve can be considered as powerful tools any organisation can use to ensure employees remain firmly focussed on meeting business goals and customer needs. Employers emphasis the significance of employees working as a team and apprise for people who hold the quality to work in such a way. Team work comes into consideration when there is a need to utilize different strengths of employees and goodness of cooperation. Principles of team work: Understanding the team is very important, as a team member he/she should know the following things: Roles and responsibilities operations of a team advantages of working as a team for individuals(motivation, job satisfaction, pride, external qualification) advantages of working as a team for the organisation (improved results due to increases in quality and productivity) Probable disadvantages of teams(Conflicts, domination) Working relations: Characteristics of a good team member Different working relationship problems with members and colleagues in other groups Team and leadership activities in order to improve team work success Team activities: The team should contribute to constant improvement activities, brainstorm activities, performance reviews, team briefings, problem resolution sessions, question and answer sessions, and team and individual appraisals. The team should be reading and contribute to team boards. The team should use internal network systems or e-mail to support communication. The team must keep displays and visuals updated. Leadership activities: Setting team objectives and goals, action planning, and recognising achievable business targets. Distribution and monitoring of team members, deciding on employee role and responsibilities, team work-load prioritization to make sure targets are met efficiently and effectively. Supervising the team performance against the objectives and goals, managing ineffective and poor performance, encouraging and motivating team members, developing a cohesive work-team through teambuilding approaches, analysis the training needs, creation of skills matrix, mentoring, team and individual appraisals, communication and consultation with management, peers and sub-ordinates and subject specialists, successfully managing conflict and tensions, grievance and disciplinary procedures. Conclusion: This paper shows the leadership in Infosys, one of the most successful IT Company in the world. Mr. Narayan Murthy, the Ex-chairman of the company has been a true leader and shows what a brilliant visionary he is. Under his leadership the company has grown tremendously within twenty five years of its existence. At Infosys they believed that a good leader can only be one who uses all different styles of leadership with one of them usually dominating. At Infosys, in order to improve the quality of leadership a leadership development program was initiated by opening the Infosys Leadership institute. This leadership Institute offers a wide range of organisational and individual development sessions to expound business problems and targets to produce a collective pool of leaders and shape them to take on present and future challenges in business. In order to achieve their vision, leadership competencies are marked along four dimensions of Work, people, technology and business. The Infosys believe that by improving the quality of leadership they can handle its phenomenal growth, with stand the complexities of the market and swiftly changing environment, and through thought leadership they can develop higher customer value. The Nine Pillar model of leadership development is used to improve the quality of leadership and as a consultant I would suggest the other company to use the Nine Pillar model as a basis to develop a similar model to improve their quality of leadership. About the team work it is now evident that it comes into consideration when there is a need to virtue of cooperation and use various strengths of employees. By understanding the principles of team work, and the team and leadership activities to be carried out properly could result in improvement in teamwork success.

Strategies for Entrepreneurship and Change Management

Strategies for Entrepreneurship and Change Management Raama Gabionza Entrepreneurship takes an important role in innovation. It is an agent of change. It involves creating new products, services, technologies, and businesses. It is about economic development and generating wealth for investors. It is also about developing business to address social problems and environmental issues. In the world of health, entrepreneurship also play a vital role. It corresponds with the revolution and changes in the state of health of the population and of the society. Like for an example, our world today suffers from distinct inevitable crisis like epidemiologic incidences and other uncommon situations affecting health of the economy. It is a threat to the population that could shake the health of every individual thus will lead to high rates in morbidity and mortality. Early detection and treatment of these illnesses or diseases are vital ways to decrease its incidences as well as morbidity and mortality rates. Invention and creation of medical treatment and therapi es as well as immunizations could lessen the possibility of acquiring the ailment. These interventions are brought by entrepreneurship which is an agent of change to both private and public health sectors. It provides interventions that are more developed, new, updated and better. It also provides more effective and efficient procedures, surgeries, and any other ways of treating specific threats to health. Entrepreneurship is essential in any situation as it could help in promoting and improving the well-being of the person and of the society as the whole. However, entrepreneurship may not always be successful as what anyone may think of it. There are major criticisms against entrepreneurship within the public and private health and social care sector. One example of this is the fear of change. People are afraid to change as it may be less effective and could lead to failure. They are afraid to loss their expertise and can’t adopt to the change. Like in surgeries, when new type of procedure is introduced, medical practitioners are afraid to change their usual practice into new procedure as it may cause danger and hazard both to the patient and the practitioners themselves. Another criticism against entrepreneurship is the quest for profits. People might think that the only reason why new services are being introduced because entrepreneurs always think about gaining profit. There could be uncertainty of services. People might doubt whether the service is really essential and necessary or not. They might feel that their ignorance are being taken for granted by the entrepreneurs presenting and introducing the new product or services. In addition, consumers may need to be aware that not all entrepreneurs are profit oriented. Entrepreneurs can be classified as either business entrepreneur or social entrepreneur. To clearly understand the difference between the two types of entrepreneurs, Abu-Saifan (2012), identified their unique characteristics. To start with, business entrepreneurs or the so called the profit oriented are characterized as the value creator. They provide value of the commodity or product and services being introduced. While social entrepreneurs or the non-profit, are social value creator. They provide what is beneficial to the society not for the benefit of their pockets. As for being a leader, they are opinion leaders. They consider the opinion of the society before they introduce the new product or services. They are also like the managers. They first look for the problems before they fix. Like for an example in the case of diabetes, they first assess the situation. They look for the cause of pr oblem and focus on repairing them before moving on to the treatment itself. They assess what could be the cause of the problem, may it be the diet of the person or their genetics or other factors. They see the problems first before they put things right. Unlike the business entrepreneur, they will just fix what is needed to be fixed. They often miss to foresee what is really the reason and cause of the problem. This is why they are characterized as the organizer. They just organize things. They are also strategic thinkers that they choose what strategy is best for them not considering the opinion of the population or of the society. They only aim for the best of their profit and interest. They focus on their goals and on what they wanted to reach. They are high achievers. They are the exact opposite of social entrepreneurs. Social entrepreneurs focus on their mission for the change beneficial to the society not for their pocket or to gain profit and interest which business entrepren eurs do. Moreover, in entrepreneurship, there are three strategies presented by Chin Benne, (1969) as general strategies effecting changes in human systems. These strategies could be helpful for the management in choosing who to employ to their organization considering changes as inevitable. This could also be helpful to the organization on how to manage and how to present or introduce changes to its people. The first strategy is the empirical or rational. In this strategy, people can be persuaded to change based on communication of information and by giving and offering them incentives. They have their reasons to comply to change being presented. Successful change is in accordance to logic and reasons that could be beneficial to organization and to the people. The change in this strategy centers on the balance of incentives and risk management. The second strategy is the normative or re-educative. This type of people are those that adhere to cultural norms and values. They normally go with the flow, conforming to what is being practiced, advertised or introduced by the management or by the organization. Redefining the present culture, norms, and values, and making commitments to new ones may initiate people to change. The strategy to encourage these people to change is to consider their culture, beliefs and their ways. People who are normative or re-educative are mostly willing to adapt to change as long as they see that their cultural values are respected and are in favor to the new system or product and services. Third is the power or coercive. In this strategy, the leader or the boss of an organization coerce people to change or to do new things. People are submissive and will do what they are told to do. This type of management is often used when there is a crisis in an organization or institution where change is a must. It could also be used when change should be done as soon as possible or as it is needed. People will usually adhere to change and will just follo w what the leader ought them to do. Furthermore, any type of management strategy may be used by the organization in handling changes. All of those strategies can be helpful in making changes successful but it may also be harmful when it is not properly addressed to the people’s need. Like for an example in the use of power or coercive strategy, it is good to be used in an emergency situations or crisis because according to Chin Benne (1969) it is assumed that people will do what they are told. Like in my own experience working as a health practitioner, there was an instance when our area was affected by typhoon. Some of us who are staying nearby the building of the institution were told by the management to do double shifts at work in order to make up the shifts of other employers who are affected by the typhoon and cannot make it to work. It was an order by the management that we, as an employers are ought to do. Considering the situation and the crisis happening, we have no other choice but to do the double s hifts. It might be shocking to us but we have to do it because it is an emergency and it was the only way that could ease the situation. Another strategy by Chin Benne (1969) is the normative or re-educative wherein people adopt to change when they see that the change conforms to their norms, values and culture. For example, in my home country, most of the people are Roman Catholic. When family planning was introduced in a catholic institution, like the use of contraceptives, not all members of team agree with the change. Roman Catholic are against with contraception. It is important for this people to consider their beliefs specially their religion and culture. In order for the change to be successful, leaders of the institution introducing contraception in the practice of health, addresses the opinions of the members of the team and people. It was agreed to make the change possible by pursuing the use of contraceptives by health education to the people but not forcing every indiv idual to do so or to comply. At least in that way, little by little, the change was made. In change management, there are four segments classified that could be present in an organization or in any group of people. These segments are the campaigners, initiators, opponents, and neutrals. These are important factors that could have direct or indirect effect in the system of change. In order to address properly these expected impact to the system of change, it would be helpful to identify the differences and similarities of these factors and at the same time, it would also help the manager or the leader on how to effectively deal with the different points of view and perspectives of every member of the team. Like for an example the introduction of the use of computer system in the health care facilities instead of the use of older method, paper documentations. People who advertise and advocate the computer system are called the campaigners. They see the new system as beneficial and that they will gain something positive from it. They are enthusiastic about change and they wi ll help to drive the change through. These people facilitate and give support to the trainings and education in order to promote change or the new system. Initiators, are those who would take the first step to change. They can be the creator or the designer. They are the prime movers and the ones who will take action to make the use of computer system possible. They are those who will make the change attainable. In order to initiate change, they educate the team about the computer system being introduced. They also facilitate, support and encourage participation and involvement of the team members to the trainings and teachings in relation to the system of change. On the other hand, some team members might disagree or oppose to the proposed system of change or the use of computer system. They are called as the opponents. They are the antagonists or the activists. They are those who are not convinced for the need of change and don’t see any justification for change. Education, negotiation and sometimes coercion are the effective way to communicate to these group of people. The fourth segment identified in change management is the neutral. Neutrals are the unbiased ones. They belong to neither side of the proposed change. They just go with the flow to change or not to change. It would be helpful communicate to these group of people by setting them what is really the vision of change, why it would be beneficial to change or not to change. They should also be involved to trainings and support groups in order for them to have a clear understanding of the change being introduced and for them to have an individualized decision as a member of the team. References: Abu-Saifan, S. (2012). Social Entrepreneurship: Definition and Boundaries. Technology Innovation Management Review, February 2013:22-27 Barton, J. (1991). Defining Entrepreneurship. Retrieved on 20 February 2015 from file:///C:/Users/raama.gabionza/Downloads/artikkeli_2.pdf Di-Masi, P. (n.d). Defining Entrepreneurship. Retrieved on 22 February 2015 from http://www.gdrc.org/icm/micro/define-micro.html Nickols, F. (2010). Four Change Management Strategies. Retrieved on 26 February 2015 from http://www.nickols.us/four_strategies.pdf Rouse, M. (n.d). Change Management. Retrieved on 25 February 2015 from http://searchcio.techtarget.com/definition/change-management Rubin, D. (2013). What is Entrepreneurship? Retrieved on 22 February 2015 from http://pinchot.edu/what-is-entrepreneurship/

Henry Ford :: essays papers

Henry Ford A. Historical Narrative 1.Henry Ford, by far the universe^s most renowned industry man, held a strong grip on American business. The Model t, which was his crown creation and the mass production method he used to produce it, changed the face of the current times and became a temper of the times because it was catchy. He had a blue collar appeal to the majority of Americans, who were just that blue collar, because he succeeded on his own merits. Even with the great wealth he accumulated, he still maintained the support of the common folk. 2. In Helbroner & Singer, Mr. Ford is discussed a great deal in chapter 10 Workers and Work. It is fitting that he be discussed in that chapter, due to the hard workers mentality he maintained and his actions concerning his position on the prices of his cars to fit the wages of his workers. H&S describes one of his greatest contributions as being the creation of the assembly line. This creation as H&S says, ^ deliberately speeded up the pace of work as machinery determined the pace of labor^. It also says, ^ the character of work was changed.^ B. Historical Interpretation 1. The author gives a somewhat normal account of Mr. Ford^s life, by normal I mean similar to other information probably heard in description of his life. What is amusing is chapter 7, which is, entitled Genius Ignoramus. This chapter gives information on some of Mr. Ford^s not-so bright ideas such as; the naval submarine he sought to build, and the three motors each day, and his political aspirations that most people do not know about. All these ventures failed for one reason or another, but did not take away from his overall genius in industry. 2. In chapter 30; Henry Ford: Legend and Legacy the author places Ford on that industrialist pedestal that he belongs on. He concludes that his legacy will go on in the continued production of cars in the mass method, as well as the old car and special interest auto clubs and publications. The author also concludes that if he had died before 1914, after he set sweeping changes in motion he would be even more of an immortal. C. Historical Method 1. The author utilizes several sources such as:

The Life of Billy Pilgrim in Vonneguts Slaughterhouse-Five or The Chil

The Life of Billy Pilgrim in Vonnegut's Slaughterhouse-Five or The Children's Crusade      Ã‚  Ã‚  Ã‚  Ã‚   Marked by two world wars and the anxiety that accompanies humanity's knowledge of the ability to destroy itself, the Twentieth Century has produced literature that attempts to depict the plight of the modern man living in a modern waste land. If this sounds dismal and bleak, it is. And that is precisely why the dark humor of Kurt Vonnegut, Jr. shines through our post-modern age. The devastating bombing of Dresden, Germany at the close of World War II is the subject of Vonnegut's most highly acclaimed work, Slaughterhouse-Five or The Children's Crusade: A Duty Dance with Death. Vonnegut's experience as an American POW in Dresden fuels the narrative that unconventionally defines his generation through the life and death of Billy Pilgrim. The survival of Billy Pilgrim at Dresden and his re-entry to the shell-shocked world reveal a modern day journey of the anti-hero. Vonnegut's unusual style and black satire provide a refreshing backdrop for a vehement anti-war theme and enhance his adept ability to depict the face of humanity complete with all of its beauty and blemishes. Likewise, Vonnegut adds his own philosophy concerning time, our place in it, and connection (or disconnection) to it and one other. Perhaps the most crucial step in understanding this intriguing work is to start with its title, which holds the key to Vonnegut's most prevailing theme.    Vonnegut addresses the writing of his work about the bombing of Dresden in the first chapter, detailing the stress he felt when faced with such a laborious task. The carnage of Dresden does not haunt those who were not there. The combined efforts of the A... ...dons the glimmer of hope that accompanies the fact that life has its moments of grandeur. He encourages the modern reader to escape the question "why me" and urges us to embrace a philosophy that consistently reminds us that even in the midst of the most cruel (and the most celebrated) events, humanity retains all of its virtue and vice. So it goes. Vonnegut allows us to laugh out loud, despite the tragedies of war and the anxiety of the post-modern world. His picture of the modern man is simultaneously dismal and hopeful. His unique style, satiric overview and astute ability to capture the multiple faces of mankind, properly place him in the realm of the most accomplished authors of the Twentieth Century.    Works Cited Vonnegut, Kurt Jr. Slaughterhouse-Five or The Children's Crusade: A duty Dance with Death. New York; Random House, 1969.   

Current Applications Of Software Agents Essay

If you have made a purchase at Amazon, you would have noticed that as soon as you complete your purchase procedures, Amazon presents you with a list of books that customers who purchased the same item as you did also bought along with this item. During your next visit, you will find a list of books that are similar to the ones you purchased previously that you might be interested in buying. Another popular site eBay displays a list of similar products that other customers who did the same search looked at. The above two sites are examples of two ways of implementing software agents. A software agent is a computer program that is capable of intelligently and autonomously executing a given task based on the instructions provided by the user. It basically operates on behalf of its owner. The goal of a software agent is to maximize the owner’s interests which it does by maximizing a particular utility function. Most software agents can learn from experience and adapt themselves based on the feedback obtained from the environment thus making it an autonomous process with no human intervention. A multi-agent system involves multiple software agents. Software agents are ideally suited for a wide variety of applications, in particular, process and workflow automation, electronic commerce, distributed problem solving and Internet applications (Acronymics, Inc. 2004). Some application examples include agent-based supply chain management, personal or user agents, e-business systems, e-market, e-banking, and e-investments, etc. Merchandise management in the retail industry is one area of application of the software agent. Merchandise management involves selection of desirable merchandise, disposal of slow-selling ones and ordering and distributing them appropriately. The competition is fierce with the eCommerce making it even more difficult due to diverse customer preferences low merchant loyalty. The only way to tackle this problem is by understanding the changes in customer demands quickly and responding appropriately through merchandise management. However, due to the sheer number of merchandise and brands, managing merchandise effectively becomes an impossible task. This is where software agents are helpful by performing the merchandise managers’ jobs autonomously, continuously and efficiently. These software agents help in evaluating and selecting merchandise and predicting seasons and building purchase schedules autonomously. An effective merchandise management helps reduce the inventory level while increasing sales and profits. (Jae Heon, P. , Sang Chan P. 2003) Rob Meijer describes the following commercial applications in his article: 1. Watcher agents – These autonomously look for the specified information and provide personalized versions based on the end-user’s preferences, an example is personalized versions of newspapers. To generate a personalized paper, a user must first provide with relevant personal information, preferences, and special interests. The agent then provides personalized news based on these details. With each visit, the agent improves and provides personalized newspaper without much human intervention. Fishwrap (MIT) and Newshound are examples of Watcher agents. (Meijer, R. 2005) 2. Learning agents – Based on the behavior of their user, they can learn to tailor their performance. Examples of the same are Firefly, Similarities Engine, WegHunter, Open Sesame, and InterAp. Similarities Engine was a Web-based music recommending system that worked similar to Amazon’s recommedations of new books; the technology has now been purchased by Microsoft. (Meijer, R. 2005) 3. Shopping agents – These agents are capable of comparing and finding the best price for an item. BargainFinder is an example of Shopping agents that searches the inventory of vendors on the internet to find the lowest prices on the desired product helping you save both time and money. (Meijer, R. 2005) 4. Information retrieval agents – These agents search for information intelligently and are capable of summarizing the information as well. Netsumm is an example that can provide an abstract of the most important sentences of a web page. (Meijer, R. 2005) The Intelligent Software Agents Lab (The Robotics Institute – Carnegie Mellon University) has created an information retrieval agent for Aircraft Maintenance. Considering the searching of relevant information along with time constraints, the mechanics are provided with wearable computers based on RETSINA infrastructure. When a discrepancy is encountered, all he needs to do is fill out a form on his computer and the agents would seek relevant information. â€Å"The advantages of wearable computers with agents include automatic location and retrieval of information relevant to repairs, utilization of historical repair data, increased efficiency of access to information from manuals, and reduction in average time for repair. The overall result is timely, quality maintenance. † (The Intelligent Software Agents Lab, 2001-2009) Another example on their site is WebMate which is a personal digital assistant that â€Å"provides URL recommendations based on a continuously updated user profile; offers ever more relevant web documents based on the ‘Trigger Pairs Model’ approach to keyword refinement; responds to user feedback by selecting features from documents the user finds relevant and incorporating these features into the context of new queries; compiles a daily personal newspaper with links to documents of interest to the user. † (The Intelligent Software Agents Lab, 2001-2009) 5. Helper agents – These are generally used for network management and standard maintenance functions. LANAlert is an example of Helper agent. (Meijer, R. 2005) Agents can also help automate the bargaining process i. e. based on the user preferences, products and services along with related conditions (like warranty and delivery time) can be made flexible to meet the client’s expectations. (Gerding, E. H. 2004) Google AdWords is an example of such an agent. On typing search keywords, it provides recommendations to users as sponsored links. First of all, there are limited ads that can be displayed on a search result page. The ads are displayed only on certain keywords selected by the advertiser. Also, since limited ads are there and also the order of displaying the ads (from top to bottom) makes a difference, advertisers have to compete for these spaces. This is done by choosing the best keywords based on the information provided by Google regarding search counts and setting an upper limit on the amount that you would pay if you have a visitor. The advertiser with the highest bid wins in this case. Gary Anthes provides the examples of the following companies who have been successful in utilizing software agents for complex processes: †¢ Procter & Gample Co. (P&G) used software agents to convert their supply chain management into a supply network connecting to 5 billion consumers in 140 countries saving $300 million annually. (Anthes, G. 2003) †¢ Southwest Airlines Co. optimized cargo routing using software agents. †¢ For Air Liquide America LP, software agents helped reduce both production and distribution costs. (Anthes, G. 2003) †¢ Software agents helped Merck & Co. find more efficient ways to distribute anti-HIV drugs in Zimbabwe. (Anthes, G. 2003) †¢ Simulation of buyer preferences using software agents helped Ford Motor Co. come up with car options that â€Å"optimized the trade-offs between production costs and customer demands†. (Anthes, G. 2003) †¢ Software agents helped Edison Chouest Offshore LLC to optimize service and supply vessels deployment in the Gulf of Mexico. (Anthes, G. 2003) Supply Chain Management through software agents not only help save costs but also help in inventory management through reduced inventory, and improved customer service. (Anthes, G. 2003) Gary Anthes also explains how software agents have helped P&G. Basically, each component of the supply system from trucks to drivers to stores was represented by a software agent. Using rules, they defined the behavior of each component that represented its actual behavior such as â€Å"Dispatch truck when full†. P&G then used the simulations to perform what-if scenarios and checked out inventory levels, transportation costs and in-store stock-outs. Many alternate rules were considered such as on ordering and shipping frequencies, demand forecasting etc. (Anthes, G. 2003) Through the use of these agent-based models, P&G realized that while sending trucks with less than full loads increases transportation costs, frequency of in-store stock-outs often resulting in lost sales is reduced. Similarly P&G relooked into many of its rigid rules and relaxed them to improve the overall performance of the supply chain. They also had to be more flexible in manufacturing – instead of one product at a time, they had to be able to produce every product every day, reducing stock-outs. Flexibility in distributing products within 24 hours instead of the customary 48 to 72 hours was another change that software agents helped P&G realize and change. (Anthes, G. 2003) References Jae Heon, P. , Sang Chan P. 2003. Agent-based merchandise management in business-to-business electronic commerce. In Decision Support Systems (Volume 35 , Issue 3 , June 2003). Elsevier Science Publishers B. V. Amsterdam. http://portal. acm. org/citation. cfm? id=794070 This article explains how an agent-based merchandise management system can help retail companies better manage their merchandise. Gerding, E. H. 2004. Autonomous Agents in Bargaining Games: An Evolutionary Investigation of Fundamentals, Strategies, and Business Applications. PhD thesis, Technische Universiteit Eindhoven. http://eprints. ecs. soton. ac. uk/15640/ This article explains how autonomous software agents could be used in the bargaining process and some of its applications. WebMate. The Intelligent Software Agents Lab. The Robotics Institute. Carnegie Mellon University. http://www. cs. cmu. edu/~softagents/webmate. html This article explains WebMate, a personal digital assistant, a real-life application of software agents. Aircraft Maintenance. The Intelligent Software Agents Lab. The Robotics Institute. Carnegie Mellon University. http://www. cs. cmu. edu/~softagents/aircraft. html This article explains how the aircraft maintenance issues have been resolved using software agents. Anthes, G. 2003. Agents of Change. In Computerworld. http://www. computerworld. com/action/article. do? command=viewArticleBasic&taxonomyName=Software+Development&articleId=77855&taxonomyId=63&pageNumber=1 This article provides examples of successful implementation of software agents by several companies and how it has helped them improve their processes as well as their thinking. Meijer, R. 2005. Intelligent Software Agents: Perspective for business. In The IPTS Report (Issue 5). http://ipts. jrc. ec. europa. eu/home/report/english/articles/vol05/art-it1. htm This article provides types of commercial applications of software agents along with implemented examples. Acronymics, Inc. 2004. Why, When, and Where to Use Software Agents. http://www. agentbuilder. com/Documentation/whyAgents. html This article provides an overview on software agents.

Netflix Case Study

Running Head: NETFLIX ON THE MOVE CHANGES IN THE MOVIE RENTAL BUSINESS Contents Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 Changes Within The Movie Rental Business†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 NetFlix History and Strategies†¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 6 Analyzing NetFlix Results†¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 9 Review and Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 10 Conclus ion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13 Introduction Impressive is the company that is able to make it to the top of their industry in quick fashion and remain there atop of all the rest of the industries.Taking away market share from other established companies is a feat that does not occur by accident. NetFlix is a company that was born in 1997 and by 2007 had revenues exceeding $1 billion. Not all competitors were prepared to handle the new strategies being employed by NetFlix and some fell quickly. Strategies and changes within the movie rental business that allowed NetFlix to accomplish such a qu ick business success story and others to fall just as quickly will be explored to give a clear picture of some of the external factors that were relevant in the NetFlix movement.By reviewing and analyzing some of the business decisions by NetFlix over the past 10 years, it will provide a better understanding of the effects of these decisions. Although NetFlix has obtained some great results over these years, there are also lessons to be learned and recommendations that can be given so that some of the less beneficial business decisions will not be repeated. This exploration of the NetFlix business strategy and the results from executing their strategies will help gain insight on how important it is to stay involved with the customer and satisfy the needs of the market.Changes Within the Movie Rental Business The video rental industry has reinvented itself often and in impressive fashion. Providing entertainment in the most convenient and cost-effective fashion has become the motivat or for multiple changes within the industry. The video industry began to take off in the 1980’s with larger chains like Blockbuster and Movie Gallery rising over the previous smaller shops. These new avenues are providing videos granted a better selection and often better pricing for the common video consumer.The popularity of these chains became more popular around the world and the businesses kept adding buildings and locations and became very popular for their wide selections, reasonable prices, and membership perks. Before long, these businesses added the increasingly growing gaming rentals as well making it convenient to now rent games for a much lower cost than purchasing the games. Convenience was impacted once again as NetFlix came on the scene in the late 1990’s. No other businesses had made efforts to use the unorthodox method of mailing DVDs to their customers.Rather than jumping in the car and heading to the nearest video store, NetFlix capitalized on bring ing the videos to the customer using their mailbox. Not only was it convenient, NetFlix allowed customers to hang on to the DVD without incurring late fees until the customer was ready to return and pick a new movie to be shipped out. Rather than a charge for each movie as the traditional method was for all other players, NetFlix charged in a monthly fee structure that allowed movie watchers to continue to watch videos as quickly as they could watch and send back with a request for a new movie.Although NetFlix was at first looked at as a non-threat with their entrance into the market, it was not long before others began make efforts to copy the methods that NetFlix had brought to life. â€Å"Further fueled by convenience, hassle-free Redbox kiosks offering $1 new releases at your local grocery store or gas station came on to the scene in 2004 and had grown to more than 25,000 kiosks by the year 2011† (Sunderland, 2011). Redbox began as an adventure with McDonald’s in o rder to add more convenience for the McDonald’s customers.In 2004, the concept of Redbox really started gaining steam. â€Å"With the majority of locations at McDonald’s restaurants, early headlines read, â€Å"Would you like a DVD with your fries? † and â€Å"Order Your Big Mac and DVD to Go† (The History of Redbox). And what are the newest trends in making video rental even more convenient? Video streaming has taken movie watching to a new level as there are multiple companies competing in this method of delivering a wide selection of movies and TV episodes over the internet.However, NetFlix has had a start on its competition by emerging as the world’s largest subscription service for movie watchers with over 15 million subscribers in 2010 (Gamble, Thompson, Peteraf, 2013). NetFlix has enjoyed being at the top of the industry until recently. Over the past 10 years, NetFlix stock has increased 1700% (Wofford, 2013). The difference today is that o ther businesses have caught on to the successful NetFlix strategies and methods. Competition has risen significantly in the internet streaming method of delivering movies conveniently to home watchers.Amazon Prime is one of NetFlix’s recent competitors in both the DVD rental and the streaming internet video. Amazon Prime is another company that has significant and impressive growth in the past 10 years as stocks have soared over 1,100% (Wofford, 2013). Although Amazon Prime had not reached the heights of growth as NetFlix has accomplished, the ride for Amazon Prime has been at a steadier pace. And there are others that have entered the DVD and internet streaming movie distribution as well. Even Walmart has begun to enter the internet streaming market to share in this growing method of convenient movie watching.DirecTV, Time Warner, DISH Network, AT&T, and Verizon are all companies that have created more competition in the market by utilizing existing or newer technology allow ing for more opportunity of movie and TV entertainment by providing convenient movie selections while sitting at home. NetFlix History and Strategies NetFlix was formed and incorporated in 1997 by two â€Å"new technology† entrepreneurs Reed Hastings and Marc Randolph (Funding Universe). The two entrepreneurs set out to sell and rent the recently created DVD over the internet and deliver to the renter’s mailbox.Few stores in 1997 carried DVDs which was new format that was new technology as compared to the video tape. Although the DVD players were expensive as they entered the market, the two entrepreneurs set their strategy that the DVD would soon replace the video tape and began to figure how to best get it to the movie watcher. Experimentation with different mailers ended with a package that would successfully be sent to and from the renter for the price of a postage stamp. The company began to purchase copies of the nearly 1,000 available titles available on DVD and with 30 employees opened for business on August14, 1998 (Funding Universe).Pricing and discounts were created to invite the consumer to rent more while giving ample time to watch the movies and return. Soon after opening, promotions were given through sweepstakes and additional free DVDs with the purchase of some brand name DVD players. Not only could movie watchers rent but they also could keep and purchase that same DVD if it was to their liking to do so. NetFlix was not born, however, to only send DVDs through the mail. As the name implies, the founders had a vision and strategy to expand further into the access that the internet would provide.With year after year major growth, in 2006 NetFlix ended the year with over 6. 3 million members (NetFlix). In 2007, NetFlix introduced to it’s members the ability to stream and watch movies and TV shows right on their personal computers. Now the challenge for the NetFlix team was to invent a way of getting streaming movies into eve ryone’s homes. And the strategy began new life again creating and experimenting with devices to attain this. After several ideas and some failed concepts, NetFlix strategy changed once again.The widespread adoption of broadband connections to the internet had taken place in consumer’s homes and Microsoft and NetFlix strategies met up. Microsoft had already put out the Xbox and had envisioned it to be more than just a serious gaming system. Microsof t found NetFlix’s ideas of streaming movies over the Xbox device to the screen to be a good fit. Soon, many other devices and TVs were built with a chip and the NetFlix application to stream thousands of movies and TV shows right to the living room. NetFlix continued to grow and be the leaders in this industry while taking away market share rom other â€Å"traditional† methods of renting and watching videos. NetFlix management believed that the subscriber consisted of three types of customers: those who liked c onvenience of home delivery, bargain hunters who liked a good priced movie, and movie buffs who wanted a wide selection of movies (Gamble, Thompson, Peteraf, 2013). The content was a weak spot for NetFlix, however. Despite having a now large movie rental business, NetFlix did not have the contacts it needed to bring the wide selection of Hollywood movies to the consumer’s screens.Although access to NetFlix may be cutting edge, few would watch if it only had older videos and TV shows (Roth, 2009). NetFlix began to search out ways to combine forces with other businesses that would give them access to more content. Not only was it lacking in content, but also needed to somehow gain access to the movie blockbusters much sooner. In many cases, hit movies would not be available to NetFlix for months and in some cases it would be years before these would be able to be watched by NetFlix subscribers.In 2008, NetFlix found agreement with Starz enabling the addition of 2,500 fresh vide os to NetFlix’s services (Roth, 2009). Underlying NetFlix’s great success from the years 2007 – 2011 was the understanding that they had to deliver additional content and make more available for streaming. Another strategy emerged in September 2011. Hastings announced that the company would charge separately for DVD rental and streaming video and that a new company named Qwikster would be formed to handle the DVD rental portion (Funding Universe).With substantial increases to consumers and issues like separate billings, users began to voice their displeasure with this strategy and many subscribers began to cancel their subscription. New subscriptions began to suffer as well with the new format and the price increase that was introduced. NetFlix reasoned that the change was needed due to the increase costs in licensing and streaming videos (Seeking Alpha, 2013). It was not long before the outcry of the customer and the loss of subscribers made Hastings rethink th is strategy.By the end of 2011, Hastings admitted that strategy was not appropriate and dropped the division of the DVD and streaming making them once again one entity. But by then, damage had been done and the poor strategy had taken its toll on the business while its stock had dropped by 75% (Funding Universe). The current strategy being pursued by NetFlix is one of moving to International expansion. Though many countries may not have the infrastructure in place to be able to stream from the internet, many countries do and this may be a unique opportunity for NetFlix to continue to grow.NetFlix has gained over 6 million subscribers within two years of its launch into International markets (Forbes, 2013). Although NetFlix seems to be leading now in the movie streaming industry just as it did with its strategy to mail deliver DVDs, competition is already on its way in the streaming movie business. Competition will continue to come up with their own unique strategies in their efforts to steal away some of the market share and success that has enabled NetFlix to continue to be successful. Analyzing NetFlix ResultsThe successful results of NetFlix over the years since its beginning can be seen in many statistical views. Focusing on the customer to tell us how NetFlix has performed would show us that from 2002 it grew from 600,000 members to over 6,000,000 members in 2006 (NetFlix). Each year after, NetFlix has gained a substantial quantity of members and in 2010 had over 20,000,000 members (NetFlix). Although there was a loss of subscribers in 2012 due to the Qwikster strategy of about 1 million subscribers, 2013 is estimated that NetFlix has over 33,000,000 subscribers in 40 different countries (Market Watch, 2013).The rebound has definitely made up for the loss of a year ago. This is amazing growth in a short amount of time and NetFlix has done well to keep ahead of its growth with its infrastructure and planning. Many of the new subscribers every year were cus tomers to local video outlets which have now suffered the reduction in business due to NetFlix’s success. The opposite effect of NetFlix’s success can be seen in businesses like Movie Gallery and Blockbuster as they have taken a large hit even to the extent of bankruptcy.Although it may be a short trip down to the video store, consumers have definitely shown by the numbers of subscribers that they enjoy the benefit and value of being able to have the movies come to them. Revenues are another way to show the success of NetFlix over the past 15 years. Like many other startup companies, the early years were not profitable. In 1999, the coming had to swallow $30 million in losses on only $5 million dollars of revenue (Funding Universe). However, by 2005 revenues had exceeded $600 million with net income of $42 million (Gamble, Thompson, Peteraf, 2013).By 2008, these amounts had doubled (Gamble, Thompson, Peteraf, 2013) and in 2012 NetFlix reported $3. 6 billion of revenue which was increase from the prior year by about 12% with $226 million net income (Bloomberg Business Week, 2013) . 2011 saw about a large growth of about 48% when compared to 2010 and while there was some growth of competitors in the recent years, many have seen negative growth in revenues partly due to the success of NetFlix. NetFlix has dominated market share in the digital on-line viewing of movies. According to a report by Sandvine Inc. in 2012, Netflix had captured 33% of prime-time web viewing (Edwards, 2012).As well, NetFlix has gained over 61% of all movie watching in the United States and with its aggressive strategy marches on to increase that as well as move aggressively internationally. Although international business continues to grow in subscribers, it is not yet profitable and currently is erasing much of the profits of the US business. It will take some time to get established internationally and provide profits. Stock prices for NetFlix had escalated significantly f rom the 2009 level of about $30 per share to the peak high value of $300 per share in 2011, but began a sharp downward trend in 2011 after the introduction of Qwikster.Basic earnings per share rose from a 2009 level of $2. 05 to that of $4. 28 in 2011 (NetFlix Investor Relations). It has taken some time to rebound from the events that surrounded the Qwikster disappointment, but stocks now seem to be continuing to increase as they appear to be reaching toward the $175 per share level. Review and Recommendations Over the short existence of the NetFlix company, it has done a good job at giving the customer what it has wanted and more. Over 90% of subscribers have indicated that they would recommend the NetFlix service to a friend (Gamble, Thompson, Peteraf, 2013).NetFlix has been able to stay ahead of the rest of the movie rental industry by staying in touch with their customers and providing the services and movie selections that are important to them. The software that NetFlix has de veloped has made it easy for the customer to choose movies by categories and provides detail for each movie that helps subscribers make their decisions as to what to watch. The NetFlix software is also able to personalize the movie selection experience by capturing what the viewer has chosen before and what likes and dislikes the viewer has recorded after watching their selection.This personalization brings to the subscribers attention other movies that they may want to watch based on their preferences and likes in the past. NetFlix has given the opportunity for first time users to use the NetFlix services for an entire month for free. This allows the customer to feel like they are getting a real bargain as well as gives them ample time to try out the service before paying for it. The pricing structures that NetFlix has instituted gives the subscriber options as to how many DVDs can be rented at a time along with unlimited streaming.The $8. 99 membership is a bargain as unlimited DV Ds and unlimited streaming of movies is included. The largest interruption to the NetFlix business was in 2011 when it decided to split the DVD portion of the business separately from the internet streaming portion. This move was not along the same lines as their customers were wanting. Qwikster was the new company that would handle all of the DVD rentals and NetFlix would continue to provide the streaming video. The two companies would not be separate and charge separately as well for their services.With this change, a large price increase would be incurred as well as subscribers would pay separately for each service. It almost seems as though in this instance that NetFlix was not interested in what their customers wanted. The strategy to break these services into two distinct companies was not born from what would satisfy the customer but was rather an internal strategy to satisfy what the owners of NetFlix thought to be advantageous. Along with the change, the communication to th e subscribers was ineffective and poorly distributed.This poor decision did not sit well with about 1 million lost customers and stock prices fell dramatically during this period. After the fact, NetFlix heard the voices of the customer and decided to abandon this strategy and go back to the original format, but the damage had been done. The recommendation here is to find out what the customer views as important before fully developing and implementing new changes. NetFlix had been following this well until the 2011 Qwikster event.Now they have learned the hard way how important it is to know what the customer views as valuable in their services. Even with the loss of 1 million customers, NetFlix began to rebound and grow with additional subscribers, but how much more could they have accomplished without this major set- back. Conclusion I have enjoyed the services that NetFlix has provided related to DVD rentail and streaming movies and TV shows over the internet right to my living room. NetFlix has worked hard to ensure that their customers have many selections at a reasonable price.The company has grown substantially year after year with more customers, revenues, and profits and has taken and maintains the lead in this industry. Although this success has come quickly, it has not come easy. NetFlix has had to effectively plan, implement, and successfully change its strategies to satisfy its customers and stay in the industry lead. It has done well in implementing these strategies and the results speak for themselves. References The History of Redbox. (n. d. ). Retrieved from http://www. edbox. com/timeline Sunderland, N. (2011). Convenience: The past and future of movie rentals. Retrieved from http://www. tetonvalleynews. net/entertainment/movies/convenience-the-past-and-future-of-movie-rentals/article_d88d5148-5000-11e0-8a97-001cc4c03286. html Gamble, J. E. , Thompson, A. A. , & Peteraf, M. A. (2013). Essentials of strategic management (3rd ed. ). pp. 277-30 3. Location: Mcgraw-Hill Irwin Wofford, T. (2013). How these companies are streaming money. Retrieved from http://beta. fool. om/tlwofford/2013/01/13/online-video-streaming-performing-well/20918/ Funding Universe. (n. d. ) Retrieved from http://www. fundinguniverse. com/company-histories/NetFlix-inc-history/ NetFlix. (n. d. ) Retrieved from https://signup. netflix. com/MediaCenter/Timeline Roth, D. (2009). Netflix everywhere: sorry cable, you’re history. Retrieved from http://www. wired. com/techbiz/it/magazine/17-10/ff_netflix? currentPage=all Seeking Alpha. (2013). Domestically funding international growth: the NetFlix strategy. Retrieved from http://seekingalpha. om/article/1293701-domestically-funding-international-growth-the-netflix-strategy Forbes. (2013). Sizing up NetFlix’s international subscriber growth potential. Retrieved from http://www. forbes. com/sites/greatspeculations/2013/03/05/sizing-up-netflixs-international-subscriber-growth-potential/ Market Watc h. (2013). NetFlix to announce first-quarter 2013 financial results. Retrieved from http://www. marketwatch. com/story/netflix-to-announce-first-quarter-2013-financial-results-2013-04-02 Bloomberg Business Week. (2013). Retrieved from http://investing. usinessweek. com/research/stocks/earnings/earnings. asp? ticker=NFLX Edwards, C. (2012). Bloomberg. NetFlix dominates streaming rivals in web-video market. Retrieved by http://www. bloomberg. com/news/2012-11-07/netflix-dominates-streaming-rivals-with-growing-web-video-share. html O’Neil, M. (2011). Social Times. NetFlix owns 61% of US digital movie market share. Retrieved from http://socialtimes. com/netflix-infographic_b73597 NetFlix Investor Relations (n. d. ) 2011 Annual report. Retrieved from http://ir. netflix. com/annuals. cfm Netflix Case Study Running Head: NETFLIX ON THE MOVE CHANGES IN THE MOVIE RENTAL BUSINESS Contents Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 Changes Within The Movie Rental Business†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 NetFlix History and Strategies†¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 6 Analyzing NetFlix Results†¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 9 Review and Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 10 Conclus ion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13 Introduction Impressive is the company that is able to make it to the top of their industry in quick fashion and remain there atop of all the rest of the industries.Taking away market share from other established companies is a feat that does not occur by accident. NetFlix is a company that was born in 1997 and by 2007 had revenues exceeding $1 billion. Not all competitors were prepared to handle the new strategies being employed by NetFlix and some fell quickly. Strategies and changes within the movie rental business that allowed NetFlix to accomplish such a qu ick business success story and others to fall just as quickly will be explored to give a clear picture of some of the external factors that were relevant in the NetFlix movement.By reviewing and analyzing some of the business decisions by NetFlix over the past 10 years, it will provide a better understanding of the effects of these decisions. Although NetFlix has obtained some great results over these years, there are also lessons to be learned and recommendations that can be given so that some of the less beneficial business decisions will not be repeated. This exploration of the NetFlix business strategy and the results from executing their strategies will help gain insight on how important it is to stay involved with the customer and satisfy the needs of the market.Changes Within the Movie Rental Business The video rental industry has reinvented itself often and in impressive fashion. Providing entertainment in the most convenient and cost-effective fashion has become the motivat or for multiple changes within the industry. The video industry began to take off in the 1980’s with larger chains like Blockbuster and Movie Gallery rising over the previous smaller shops. These new avenues are providing videos granted a better selection and often better pricing for the common video consumer.The popularity of these chains became more popular around the world and the businesses kept adding buildings and locations and became very popular for their wide selections, reasonable prices, and membership perks. Before long, these businesses added the increasingly growing gaming rentals as well making it convenient to now rent games for a much lower cost than purchasing the games. Convenience was impacted once again as NetFlix came on the scene in the late 1990’s. No other businesses had made efforts to use the unorthodox method of mailing DVDs to their customers.Rather than jumping in the car and heading to the nearest video store, NetFlix capitalized on bring ing the videos to the customer using their mailbox. Not only was it convenient, NetFlix allowed customers to hang on to the DVD without incurring late fees until the customer was ready to return and pick a new movie to be shipped out. Rather than a charge for each movie as the traditional method was for all other players, NetFlix charged in a monthly fee structure that allowed movie watchers to continue to watch videos as quickly as they could watch and send back with a request for a new movie.Although NetFlix was at first looked at as a non-threat with their entrance into the market, it was not long before others began make efforts to copy the methods that NetFlix had brought to life. â€Å"Further fueled by convenience, hassle-free Redbox kiosks offering $1 new releases at your local grocery store or gas station came on to the scene in 2004 and had grown to more than 25,000 kiosks by the year 2011† (Sunderland, 2011). Redbox began as an adventure with McDonald’s in o rder to add more convenience for the McDonald’s customers.In 2004, the concept of Redbox really started gaining steam. â€Å"With the majority of locations at McDonald’s restaurants, early headlines read, â€Å"Would you like a DVD with your fries? † and â€Å"Order Your Big Mac and DVD to Go† (The History of Redbox). And what are the newest trends in making video rental even more convenient? Video streaming has taken movie watching to a new level as there are multiple companies competing in this method of delivering a wide selection of movies and TV episodes over the internet.However, NetFlix has had a start on its competition by emerging as the world’s largest subscription service for movie watchers with over 15 million subscribers in 2010 (Gamble, Thompson, Peteraf, 2013). NetFlix has enjoyed being at the top of the industry until recently. Over the past 10 years, NetFlix stock has increased 1700% (Wofford, 2013). The difference today is that o ther businesses have caught on to the successful NetFlix strategies and methods. Competition has risen significantly in the internet streaming method of delivering movies conveniently to home watchers.Amazon Prime is one of NetFlix’s recent competitors in both the DVD rental and the streaming internet video. Amazon Prime is another company that has significant and impressive growth in the past 10 years as stocks have soared over 1,100% (Wofford, 2013). Although Amazon Prime had not reached the heights of growth as NetFlix has accomplished, the ride for Amazon Prime has been at a steadier pace. And there are others that have entered the DVD and internet streaming movie distribution as well. Even Walmart has begun to enter the internet streaming market to share in this growing method of convenient movie watching.DirecTV, Time Warner, DISH Network, AT&T, and Verizon are all companies that have created more competition in the market by utilizing existing or newer technology allow ing for more opportunity of movie and TV entertainment by providing convenient movie selections while sitting at home. NetFlix History and Strategies NetFlix was formed and incorporated in 1997 by two â€Å"new technology† entrepreneurs Reed Hastings and Marc Randolph (Funding Universe). The two entrepreneurs set out to sell and rent the recently created DVD over the internet and deliver to the renter’s mailbox.Few stores in 1997 carried DVDs which was new format that was new technology as compared to the video tape. Although the DVD players were expensive as they entered the market, the two entrepreneurs set their strategy that the DVD would soon replace the video tape and began to figure how to best get it to the movie watcher. Experimentation with different mailers ended with a package that would successfully be sent to and from the renter for the price of a postage stamp. The company began to purchase copies of the nearly 1,000 available titles available on DVD and with 30 employees opened for business on August14, 1998 (Funding Universe).Pricing and discounts were created to invite the consumer to rent more while giving ample time to watch the movies and return. Soon after opening, promotions were given through sweepstakes and additional free DVDs with the purchase of some brand name DVD players. Not only could movie watchers rent but they also could keep and purchase that same DVD if it was to their liking to do so. NetFlix was not born, however, to only send DVDs through the mail. As the name implies, the founders had a vision and strategy to expand further into the access that the internet would provide.With year after year major growth, in 2006 NetFlix ended the year with over 6. 3 million members (NetFlix). In 2007, NetFlix introduced to it’s members the ability to stream and watch movies and TV shows right on their personal computers. Now the challenge for the NetFlix team was to invent a way of getting streaming movies into eve ryone’s homes. And the strategy began new life again creating and experimenting with devices to attain this. After several ideas and some failed concepts, NetFlix strategy changed once again.The widespread adoption of broadband connections to the internet had taken place in consumer’s homes and Microsoft and NetFlix strategies met up. Microsoft had already put out the Xbox and had envisioned it to be more than just a serious gaming system. Microsof t found NetFlix’s ideas of streaming movies over the Xbox device to the screen to be a good fit. Soon, many other devices and TVs were built with a chip and the NetFlix application to stream thousands of movies and TV shows right to the living room. NetFlix continued to grow and be the leaders in this industry while taking away market share rom other â€Å"traditional† methods of renting and watching videos. NetFlix management believed that the subscriber consisted of three types of customers: those who liked c onvenience of home delivery, bargain hunters who liked a good priced movie, and movie buffs who wanted a wide selection of movies (Gamble, Thompson, Peteraf, 2013). The content was a weak spot for NetFlix, however. Despite having a now large movie rental business, NetFlix did not have the contacts it needed to bring the wide selection of Hollywood movies to the consumer’s screens.Although access to NetFlix may be cutting edge, few would watch if it only had older videos and TV shows (Roth, 2009). NetFlix began to search out ways to combine forces with other businesses that would give them access to more content. Not only was it lacking in content, but also needed to somehow gain access to the movie blockbusters much sooner. In many cases, hit movies would not be available to NetFlix for months and in some cases it would be years before these would be able to be watched by NetFlix subscribers.In 2008, NetFlix found agreement with Starz enabling the addition of 2,500 fresh vide os to NetFlix’s services (Roth, 2009). Underlying NetFlix’s great success from the years 2007 – 2011 was the understanding that they had to deliver additional content and make more available for streaming. Another strategy emerged in September 2011. Hastings announced that the company would charge separately for DVD rental and streaming video and that a new company named Qwikster would be formed to handle the DVD rental portion (Funding Universe).With substantial increases to consumers and issues like separate billings, users began to voice their displeasure with this strategy and many subscribers began to cancel their subscription. New subscriptions began to suffer as well with the new format and the price increase that was introduced. NetFlix reasoned that the change was needed due to the increase costs in licensing and streaming videos (Seeking Alpha, 2013). It was not long before the outcry of the customer and the loss of subscribers made Hastings rethink th is strategy.By the end of 2011, Hastings admitted that strategy was not appropriate and dropped the division of the DVD and streaming making them once again one entity. But by then, damage had been done and the poor strategy had taken its toll on the business while its stock had dropped by 75% (Funding Universe). The current strategy being pursued by NetFlix is one of moving to International expansion. Though many countries may not have the infrastructure in place to be able to stream from the internet, many countries do and this may be a unique opportunity for NetFlix to continue to grow.NetFlix has gained over 6 million subscribers within two years of its launch into International markets (Forbes, 2013). Although NetFlix seems to be leading now in the movie streaming industry just as it did with its strategy to mail deliver DVDs, competition is already on its way in the streaming movie business. Competition will continue to come up with their own unique strategies in their efforts to steal away some of the market share and success that has enabled NetFlix to continue to be successful. Analyzing NetFlix ResultsThe successful results of NetFlix over the years since its beginning can be seen in many statistical views. Focusing on the customer to tell us how NetFlix has performed would show us that from 2002 it grew from 600,000 members to over 6,000,000 members in 2006 (NetFlix). Each year after, NetFlix has gained a substantial quantity of members and in 2010 had over 20,000,000 members (NetFlix). Although there was a loss of subscribers in 2012 due to the Qwikster strategy of about 1 million subscribers, 2013 is estimated that NetFlix has over 33,000,000 subscribers in 40 different countries (Market Watch, 2013).The rebound has definitely made up for the loss of a year ago. This is amazing growth in a short amount of time and NetFlix has done well to keep ahead of its growth with its infrastructure and planning. Many of the new subscribers every year were cus tomers to local video outlets which have now suffered the reduction in business due to NetFlix’s success. The opposite effect of NetFlix’s success can be seen in businesses like Movie Gallery and Blockbuster as they have taken a large hit even to the extent of bankruptcy.Although it may be a short trip down to the video store, consumers have definitely shown by the numbers of subscribers that they enjoy the benefit and value of being able to have the movies come to them. Revenues are another way to show the success of NetFlix over the past 15 years. Like many other startup companies, the early years were not profitable. In 1999, the coming had to swallow $30 million in losses on only $5 million dollars of revenue (Funding Universe). However, by 2005 revenues had exceeded $600 million with net income of $42 million (Gamble, Thompson, Peteraf, 2013).By 2008, these amounts had doubled (Gamble, Thompson, Peteraf, 2013) and in 2012 NetFlix reported $3. 6 billion of revenue which was increase from the prior year by about 12% with $226 million net income (Bloomberg Business Week, 2013) . 2011 saw about a large growth of about 48% when compared to 2010 and while there was some growth of competitors in the recent years, many have seen negative growth in revenues partly due to the success of NetFlix. NetFlix has dominated market share in the digital on-line viewing of movies. According to a report by Sandvine Inc. in 2012, Netflix had captured 33% of prime-time web viewing (Edwards, 2012).As well, NetFlix has gained over 61% of all movie watching in the United States and with its aggressive strategy marches on to increase that as well as move aggressively internationally. Although international business continues to grow in subscribers, it is not yet profitable and currently is erasing much of the profits of the US business. It will take some time to get established internationally and provide profits. Stock prices for NetFlix had escalated significantly f rom the 2009 level of about $30 per share to the peak high value of $300 per share in 2011, but began a sharp downward trend in 2011 after the introduction of Qwikster.Basic earnings per share rose from a 2009 level of $2. 05 to that of $4. 28 in 2011 (NetFlix Investor Relations). It has taken some time to rebound from the events that surrounded the Qwikster disappointment, but stocks now seem to be continuing to increase as they appear to be reaching toward the $175 per share level. Review and Recommendations Over the short existence of the NetFlix company, it has done a good job at giving the customer what it has wanted and more. Over 90% of subscribers have indicated that they would recommend the NetFlix service to a friend (Gamble, Thompson, Peteraf, 2013).NetFlix has been able to stay ahead of the rest of the movie rental industry by staying in touch with their customers and providing the services and movie selections that are important to them. The software that NetFlix has de veloped has made it easy for the customer to choose movies by categories and provides detail for each movie that helps subscribers make their decisions as to what to watch. The NetFlix software is also able to personalize the movie selection experience by capturing what the viewer has chosen before and what likes and dislikes the viewer has recorded after watching their selection.This personalization brings to the subscribers attention other movies that they may want to watch based on their preferences and likes in the past. NetFlix has given the opportunity for first time users to use the NetFlix services for an entire month for free. This allows the customer to feel like they are getting a real bargain as well as gives them ample time to try out the service before paying for it. The pricing structures that NetFlix has instituted gives the subscriber options as to how many DVDs can be rented at a time along with unlimited streaming.The $8. 99 membership is a bargain as unlimited DV Ds and unlimited streaming of movies is included. The largest interruption to the NetFlix business was in 2011 when it decided to split the DVD portion of the business separately from the internet streaming portion. This move was not along the same lines as their customers were wanting. Qwikster was the new company that would handle all of the DVD rentals and NetFlix would continue to provide the streaming video. The two companies would not be separate and charge separately as well for their services.With this change, a large price increase would be incurred as well as subscribers would pay separately for each service. It almost seems as though in this instance that NetFlix was not interested in what their customers wanted. The strategy to break these services into two distinct companies was not born from what would satisfy the customer but was rather an internal strategy to satisfy what the owners of NetFlix thought to be advantageous. Along with the change, the communication to th e subscribers was ineffective and poorly distributed.This poor decision did not sit well with about 1 million lost customers and stock prices fell dramatically during this period. After the fact, NetFlix heard the voices of the customer and decided to abandon this strategy and go back to the original format, but the damage had been done. The recommendation here is to find out what the customer views as important before fully developing and implementing new changes. NetFlix had been following this well until the 2011 Qwikster event.Now they have learned the hard way how important it is to know what the customer views as valuable in their services. Even with the loss of 1 million customers, NetFlix began to rebound and grow with additional subscribers, but how much more could they have accomplished without this major set- back. Conclusion I have enjoyed the services that NetFlix has provided related to DVD rentail and streaming movies and TV shows over the internet right to my living room. NetFlix has worked hard to ensure that their customers have many selections at a reasonable price.The company has grown substantially year after year with more customers, revenues, and profits and has taken and maintains the lead in this industry. Although this success has come quickly, it has not come easy. NetFlix has had to effectively plan, implement, and successfully change its strategies to satisfy its customers and stay in the industry lead. It has done well in implementing these strategies and the results speak for themselves. References The History of Redbox. (n. d. ). Retrieved from http://www. edbox. com/timeline Sunderland, N. (2011). Convenience: The past and future of movie rentals. Retrieved from http://www. tetonvalleynews. net/entertainment/movies/convenience-the-past-and-future-of-movie-rentals/article_d88d5148-5000-11e0-8a97-001cc4c03286. html Gamble, J. E. , Thompson, A. A. , & Peteraf, M. A. (2013). Essentials of strategic management (3rd ed. ). pp. 277-30 3. Location: Mcgraw-Hill Irwin Wofford, T. (2013). How these companies are streaming money. Retrieved from http://beta. fool. om/tlwofford/2013/01/13/online-video-streaming-performing-well/20918/ Funding Universe. (n. d. ) Retrieved from http://www. fundinguniverse. com/company-histories/NetFlix-inc-history/ NetFlix. (n. d. ) Retrieved from https://signup. netflix. com/MediaCenter/Timeline Roth, D. (2009). Netflix everywhere: sorry cable, you’re history. Retrieved from http://www. wired. com/techbiz/it/magazine/17-10/ff_netflix? currentPage=all Seeking Alpha. (2013). Domestically funding international growth: the NetFlix strategy. Retrieved from http://seekingalpha. om/article/1293701-domestically-funding-international-growth-the-netflix-strategy Forbes. (2013). Sizing up NetFlix’s international subscriber growth potential. Retrieved from http://www. forbes. com/sites/greatspeculations/2013/03/05/sizing-up-netflixs-international-subscriber-growth-potential/ Market Watc h. (2013). NetFlix to announce first-quarter 2013 financial results. Retrieved from http://www. marketwatch. com/story/netflix-to-announce-first-quarter-2013-financial-results-2013-04-02 Bloomberg Business Week. (2013). Retrieved from http://investing. usinessweek. com/research/stocks/earnings/earnings. asp? ticker=NFLX Edwards, C. (2012). Bloomberg. NetFlix dominates streaming rivals in web-video market. Retrieved by http://www. bloomberg. com/news/2012-11-07/netflix-dominates-streaming-rivals-with-growing-web-video-share. html O’Neil, M. (2011). Social Times. NetFlix owns 61% of US digital movie market share. Retrieved from http://socialtimes. com/netflix-infographic_b73597 NetFlix Investor Relations (n. d. ) 2011 Annual report. Retrieved from http://ir. netflix. com/annuals. cfm