Write a paper on a case study.
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Write a 3-5-page APA formatted paper that reviews the selected
case study and answers its discussion questions.
In addition to the APA formatted separate title page (page
numbered “1”), provide an Introduction (page numbered “2”)
consisting of 2-3 paragraphs describing the background of the case
study.
The review and answers should follow the standard 3-5 page essay
format.
The body of the paper should consist of the answering of all
questions posed at the end of the selected case study.
A Conclusion should be included as should citations and a properly
formatted Reference(s) page.
In addition to the textbook, at least one other scholarly paper
should be used.
o At least one in-text citation is required for all referenced
sources (textbook and additional other scholarly paper).
o APA format must be strictly followed.
Case Study
Meeting Demands of Global Growth, Netflix Migrates to Integrated ERP
Netflix, as a pioneering DVD rental and video streaming company, enjoys tremendous success
around the world. Available in almost every country, the company benefits from some of the
most advanced big data analytics to continually improve each viewer’s experience on its
platforms, customizing for local and individual tastes. For example, instead of emphasizing
demographics as a means to segment the market, Netflix takes a step further by drawing on big
data to create “taste clusters.” These support niche programming far more effectively. Reed
Hastings, Netflix cofounder and CEO, explains that the company aims “to transform selection so
that consumers can find a steady stream of [entertainment] they love.”
Founded in 1997 by Hastings and Marc Randolph, the company introduced the monthly
subscription model with flat fees and unlimited DVD rentals without due dates, and no late fees
or shipping charges. The model became wildly popular and eventually drove the brick-andmortar video rental companies out of business. Netflix began expanding internationally, and now
operates in close to 200 countries. The company draws on its outstanding artificial intelligence
and big data analytics to please customers in each country as well, offering dubbed and subtitled
content and locally produced programming.
Netflix enjoys customer relationship and supply chain management systems that are world-class
and highly customized to its unique business needs. But its back-end financials and human
capital management were a complicated mix of 11 different applications with rickety interfaces.
Netflix needed a modern ERP with these two modules, especially because the company takes
some unusual approaches to talent management. Winning the war for talent in Silicon Valley and
on a global scale is no easy feat, given the tremendous shortage of candidates with the right skill
sets. Some companies offer perks such as free gourmet food, foosball, or roller rinks, but Netflix
takes a different tack. Employees are offered freedom and power to make their own decisions
about everything from their problem-solving strategies to vacation days. For expenses, for
instance, Netflix’s only policy is “act in Netflix’s best interests.” For parental leave, the policy is
“take care of your baby and yourself,” and leave days aren’t tracked. Careful recruitment and
hiring are essential, and employees that don’t work out receive generous severance packages.
To meet the need for flexible human capital management, along with an integrated financial
management system that easily masters the complexities of a global operation, Netflix turned to
Workday, a cloud-based ERP company. The effort consolidated the 11 separate systems, and
Netflix was able to deploy the financial module in just six months. Back-office tasks such as
payroll processing, which once took several days—or longer if changes were needed—were
drastically improved. The integration with financials meant that journal entries became
automated rather than manual, greatly reducing errors.
Many of Workday’s capabilities partner well with Netflix’s talent management approach and its
global reach into so many countries with different currencies and diverse laws about taxation,
employee benefits, and workplace policies. And the partnership worked well for Workday, as
well, as Reed Hastings and others at Netflix suggested valuable new features to improve the
software. Workday added over 25 new features based on such recommendations, all of which
makes the products more competitive.
Discussion Questions
5-19. How did Netflix gain such a large customer base so quickly? What impact did the model
have on the DVD rental business?
5-20. How would you describe Netflix’s approach to talent management?
5-21. Why did Netflix not choose an ERP that included all four of the major modules?
5-22. How is Netflix benefiting from the Workday implementation? How does Workday benefit
from the partnership with Netflix?
Sources: Brennan, L. (2018). How Netflix expanded to 190 countries in 7 years. Harvard
Business Review Digital Articles, 16–
20, http://search.ebscohost.com/login.aspx?direct=true&db=bft&AN=132377634&site=ehostlive&scope=site, accessed June 2, 2019.
Camarena, N. (2019). Video: Why Netflix loves Workday payroll, www.workday.com/enus/pages/video-netflix-payroll.html, accessed February 20, 2019.
Laporte, N. (2019). The Netflix shuffle. Fast Company, (230), 24–
28. http://search.ebscohost.com/login.aspx?direct=true&db=bft&AN=133682039&site=ehostlive&scope=site, accessed February 20, 2019.
McCord, P. (2014). How Netflix reinvented HR. Harvard Business Review, 92(1/2), 70–
76. http://search.ebscohost.com/login.aspx?direct=true&db=bft&AN=93302820&site=ehostlive&scope=site, accessed February 20, 2019.
Netflix Website. (2019). www.netflix.com, accessed February 20, 2019.
Workday and Netflix. (2019). www.workday.com/en-us/customers/netflix.html, accessed
February 20, 2019.