Ciara Hanlon

18010773
BMNG7311 Assignment

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Contents Page
Introduction 3

Question One 4-5

Question Two 5-6

Question Three 6

Conclusion 7

References 8

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Introduction
In the report I will be addressing three questions that could help you and the Netflix
team to understand three major aspects of your strategy, namely the conceptual fit
between Netflix’s internal and external environment, Netflix’s strategic intent and the
sustainability of your company. As well as help you to improve your businesses
organizational strategy which could benefit you and have a positive impact on your
business. The first question I will address is based on the “inside-out” and the
“outside-in” perspectives. I will briefly explain what these terms mean and distinguish
their differences. I will also identify which perspective your company is using as well
provide new ways for you to improve your performance in the market. In the second
question I’ll address mission statements as well as analyze your current mission
statement and suggest ways to improve it as well as I will give an example of how I
would’ve drawn up Netflix’s mission statement. Finally in third and last question I will
address give brief summary on the concepts as well as the importance of “shared
value” and “inclusive business” as well as discuss how you incorporated those into
your company as well and look at ways that you could improve your approach
towards them.

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Question One
In order to achieve success in any business there is a lot you would have to
consider. One of these things is choosing to go for an inside-out strategy or an
outside-in strategy.

Inside-out strategy

The inside-out strategy focuses on the internal factors of the business. It also looks
at how businesses can use current existing resources to increase value. The
purpose of using this strategy states that if businesses start building up internal
strengths and abilities, they will become more sustainable due to the fact that they’re
making smart choices. When this approach is used by businesses they leverage
their internal competencies, such as creating a good, hard-working, creative team;
improving relations with customers and stakeholders as well as improving the work
flow being done in the business (von Ahn, T.2021).

Outside-In Strategy

The outside-in strategy focuses on the external factors of the business. It

encourages businesses to focus and direct their attention on their customers and
their experiences. This strategy is usually guided by the belief that providing good
customer value is the only way to achieve success. This approach involves starting
by looking at their target market and researching what their customers want before
they start to develop their marketing strategies (von Ahn, T.2021).

How do find out what approach our business uses?

There are two questions that we could ask:

1. Do we know who our target market is; have we identified their needs and
wants; have we identified how to solve their problems and can we provide
them with value (Lagerstedt, E.2015).
2. Is there a strong relation between our target market needs, our value
proposition, and our overall business model, internal processes and
customer-oriented organizational culture (Lagerstedt, E.2015).

If we can answer to the questions above with a firm yes, there is a high probability
that your business leans towards an Outside-In approach. If you can’t answer the
questions then it’s likely that that your business likely uses an Inside-Out approach
(Lagerstedt,E.2015).

Netflix currently uses an outside-in approach. The reason for this is because Netflix
knows who their target market is. They target people who are of a younger age
group. They aim to provide their consumers with quality streaming service as well as
they value their customers because they want to make everyone happy and they do
this by offering films and movies which cater to kids, teens, adults etc. as well as

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they offer diverse films and TV shows which shows that they want the customer to
feel included which goes hand in hand with their values.

Question Two
A mission statement is a brief explanation given by any organization stating why and
giving reason as to why they exist. A mission statement also describes the
organization's purpose and its goals and objectives as well as how they are going to
achieve these goals. The mission statement also aids the vision of the organization
the and aims to communicate the purpose and give direction to employees,
customers, suppliers, vendors and all other stakeholders that have in interest in the
organization(Shrm,2021).

In my opinion Netflix has very average mission statement as it is brief and it

describes their objectives but a few important things are missing. However there is
always room for improvement as we are living in a world which is constantly
changing and don’t know what the future may hold. When we look at a mission
statement, generally these types of questions are asked and answered.

1. Why is this organization in business? What do you want for the company,
your employees, and your customers? What was your primary purpose for
starting your business? Netflix’s mission statements objectives state that they
aim to improve the lives of their customers and by doing this they created a
streaming service for people around the world who can now watch what they
want in the safety of their own homes and now that we are in a pandemic they
have managed to improve the lives of very much everyone (Steffens, R.2018).
2. Core competencies and competitive advantages – Netflix is operates in more
than 190 countries as well as they offer streaming in different languages
making them at a competitive advantage. For example HULU and Disney+
are also streaming services but they aren’t available in many countries
including South Africa we would choose them because we don’t have many
other options (Steffens, R.2018).
3. What customers do we serve – Netflix targets millennials and gen-xers as
they are the younger audience and are more likely going to be using a
technological device all the time and would also probably ask their parents to
create an account because of their being more variety and easily accessible
and maybe cheaper than going to the movies in the long run (Steffens,
R.2018).
4. How do we view our responsibilities to shareholders, employees, communities
the environment etc. Netflix strives to hire the best and they value integrity,
excellence, respect, inclusion, and collaboration. As well as they also
encourage employees to share their ideas and make their own decisions
(Steffens, R.2018).

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 To make Netflix’s mission statement better you could mention how inclusive and
diverse you are by stating that you value all your customers and employees etc.
by stating that you offer many films and TV shows with POC(people of
colour)leads and many non-English films as well as you cater to those who have
disabilities . This will immediately give off the impression that you value everyone
and not just one race or people who don’t have disabilities and many more
people would want to support you because of it because you are making an effort
to make them feel valued and seen or heard.

Question Three
Businesses incorporate strategies such as shared value and inclusive business into
their business model so that they can make their employees and customers feel
appreciated and included.

Shared Value - can be defined as the policies and operating practices that
businesses put in place to enhance the competitiveness while concurrently
improving the economic and social conditions of the communities in which they
operate. So this means that both sides share in the value that was created. For
example providing good health care packages to employees or volunteering in
poorer communities or donation food etc. (Simanye,2015).

Inclusive Business -Inclusive businesses provide livelihood opportunities and close

access gaps for people living at the bottom of the economy. They do this in ways
that are commercially and financially self-sustainable by focusing on less fortunate
individuals across their value chain by making them apart of the businesses core
principles by making them suppliers, retailers, distributors etc.

Netflix shows inclusive business and shared value to the extent by incorporating
movies and films that are diverse or with people who are disables to show
consumers that they are not alone. In their workplace however they have started
support and create opportunities for minorities and they’ve done this creating
employee resource groups that are used to create a home environment for
employees so that they can share and so forth here are a few examples
Dream@netflix which is for people wo are immigrants and allies; Black@netflix is for
black employees and allies and Accessibility which is for people with disabilities and
allies. Netflix also wants to pay their employees fairly regardless of their race,
disability, responsibilities, gender identity etc. So in employee payment plans they
have benefits which include exible parental leave policy, a family forming benefit,
and transgender and non-binary care in their health plans.

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Conclusion
To conclude I just want to say thank you for this opportunity allowing me to assist
you in improving Netflix as a whole. The three questions that I went over should
allow to you to get an idea of what organizational strategy entails.

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References
Shrm, 2021. Understanding Inclusive Business. [Online]. Available at:
https://www.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_
Site/Inclusive+Business/Understanding+Inclusive+Business/ [Accessed 10th May
2021].

Euromeda, T. 2021. Shared value. [Online]. Available at:

https://simanye.co.za/2015/10/01/the-triple-bottom-line-inclusive-business-and-
shared-value/ [Accessed 9th May 2021].

Shrm, 2021.Understanding Inclusive Business. [Online]. Available at:

https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/
isthereadifferencebetweenacompany’smission,visionandvaluestatements.aspx
[Accessed 9th May 2021].

Netflix, 2021. Inclusion and Diversity. [Online]. Available at:

https://about.netflix.com/en/inclusion [Accessed 9th May 2021].

Lagerstedt, E. 2014. Business Strategy: Are You Inside-Out or Outside-In? [Online].

Available at: https://knowledge.insead.edu/blog/insead-blog/business-strategy-are-
you-inside-out-or-outside-in-3515 [Accessed 8th May 2021].

Von Ahn, T. 2021. Inside-Out Strategy vs. Outside-In Strategy: Which Marketing
Approach Is Best? [Online]. Available at: https://viralsolutions.net/inside-out-strategy-
vs-outside-in-strategy/#.YJmKadUzbIU [Accessed 9th May 2021].

Steffens, R. 2018. 8 Questions You Should Answer to Help Develop Your Mission
Statement. [Online]. Available at: https://www.bluleadz.com/blog/8-questions-you-
should-answer-to-help-develop-your-mission-statement [Accessed 10th May 2021].