Microsoft Word - CS Assessment 2.docx XXXXXXXXXXAssessment 2 Identify a company that has undergone some major changes in its operations (for example, a major restructuring or takeover). Assess the...

CORPORATE FINANCE
Executive Summary
This article will look into the functioning and organisational change of a firm named Netflix. It will cover the various models used to manage change, describing a case study of a firm in terms of implementing change in Netflix. Change is not only an unavoidable task, but also a crucial part of driving innovation and gaining a competitive edge in a business climate where organisations are always faced with competition from rivals that make and sell identical products. Further, this paper will identify challenges that arise in this changes and possible solutions available. Additionally, this paper will evaluate the nature of these adjustments and if they were successful.
Table of Contents
Executive Summary    2
Introduction    4
Background    4
Necessity of Organisational Changes    4
Overview of Netflix    5
Three Step Model    6
Transition Process    6
Business Model Change of Netflix    6
Value    6
Customer Segment    7
Channels    7
Customer Relationships    7
Resources    7
Activities    8
Revenue    8
Partners    8
Cost Structure    8
Development of Key Figures    9
Changes in Competitive Market    10
Changes in Strategies    10
Limitations    10
Discussion    11
Conclusion    11
References    12
Appendix    13
Introduction
The environment is dynamic and businesses must adapt in order to thrive in today's turbulent markets. Change is more than simply introducing a new product to the market; it also entails altering an organisation's business strategy. Without this insight, a firm risks of losing its market relevance. Netflix is an excellent example of such a corporation. They successfully transitioned from an online DVD rental service to a streaming provider and finally to a content supplier (Jenner, 2018). They were aware of incoming new technologies in a timely manner, analysed them and planned their commercial deployment while the old technology was still viable.
Background
In today's environment, fast digitalisation presents both possibilities and risks; it is dismantling existing barriers and facilitating the entry of new market players. As a result, scholars emphasise the significance of redesigning business models in order to achieve a competitive edge. Toys "R" Us is a well-known example of a firm that failed to adjust to new market conditions and its business strategy. The current study illustrates a successful BM Change using the example of Netflix. Founded as an online DVD rental service, they opted to become a streaming provider for the first time. They were successful in transforming an existing profitable business concept into an internationally successful corporation (Jenner, 2018).
The current paper examines Netflix's business model through time to determine how such extraordinary success was achievable. The three phases—founding, first and second BM Change—are described in depth, differentiated into the BMC's nine building elements, using the Business Model Canvas (BMC), according to Sakal et al. (2019). This method exemplifies how to modify a company model successfully. The paper focuses on essential aspects in the Netflix transformation process, which explains the company's success.
Necessity of Organisational Changes
It is impossible to pinpoint where the word "business model" came from. According to one well-known definition, it outlines the reasoning of how a company generates, distributes and acquires value. Business models are continuously evolving and therefore, these cannot be completely defined (Allegretti et al. 2021). Change may be defined as the process, by which management actively modifies the intra-organisational activities and relationships of the business model in addressing sustainability circumstances.
Change has three triggers and environmental dynamics. The first trigger is a regular, predictable environmental change. This results in gradual and incremental transformation. Environmental competitiveness is the second trigger. This necessitates shifting competitive needs and high-velocity conditions. A movement in the environment is seldom predicted and it causes major changes not only in the company model but also in the whole organisation. The Business Model Canvas allows visualising how a company's business model evolves and changes over time. The BMC's key benefit is its clean and straightforward design, which targets consumer demands and focuses on the most important features (Allegretti et al. 2021).
Because the BMC does not consider competition, a whole chapter is devoted to competition analysis [Refer to the figures 1, 2 and 3 in the appendix]. The process of modifying an existing business model vs. building a new one is obviously distinct. Because current company models are built to be stable, changing them is especially difficult. To shift business models effectively, the following fundamental competences are required: recognising opportunities and risks, making timely and market-oriented choices and reconfiguring the organisational resource base (Sakal et al. 2019).
Overview of Netflix
Reed Hastings and Marc Randolph established Netflix in California in 1997 as an online DVD rental service. The easiest and most straightforward order and return procedure, as well as the personalised suggestion system, were the most notable characteristics and Netflix's selling points. Netflix established its streaming service in 2007 in response to new prospects created by technological and Internet advancements. By 2009, Netflix had over 12,000 movies and TV episodes accessible for rapid streaming, as well as 100,000 DVDs available through the delivery service (Gregory, 2021).
Netflix released their first Netflix Original Series, "House of Cards," in 2013, followed by a steady stream of uniquely created movies, documentaries and TV episodes. For the first time in 2018, the percentage of Netflix Originals surpassed the number of licenced series in their collection (Netflix Inc., 2018). This demonstrates its intention to become a content generator while remaining devoted to the heart of their business strategy.
Netflix was the studio with the most nominations at this year's Academy Awards, with 24, demonstrating the company's growing significance as a content provider. The film "Marriage Story" received the Oscar for best supporting female actor and the documentary "American Factory" won for best documentary feature. Netflix's first Academy Award triumph came in 2017 with the documentary film "The White Helmets," which was followed by numerous victories in the years that followed...