Executive Summary

The acquisition is a form of asset purchase and stocks of a company acquired. The methods employed in these two kinds are different in practices and solely based on shareholders’ positions.It is essential to determine that the growth rate should be for the transformation of the company and its corporate identity. Therefore, the targeted company identifies a new direction and adds some new capabilities.The management approaches define motives to work under mergers and acquisitions. This hypothesis is workable in many instances when a manager seeks to hire companies for their own interest and not for sole economic gain.

The increased competition in all financial sector develops motivation for customers to stay with that particular company.If a commercially viable strategy is not implemented, all the synergies of companies become worthless. In some cases, the cost of delivering a marketing strategy is better for the public. It is worthy to say that public institutions need to bring growth and harmony and manage high-risk assets. This report presents effective understanding of mergers and acquisitions, along with motives for success and failure from real life examples.

Table of Contents


The union of two or more companies that forms an entity or describes a pool of interest is a merger. It is not a consolidation, which is a combination of different companies/product lines or functional areas. The mergers correspond to no new entity, while in some particular cases, an entity is created. An accounting method that is used in merges as a part of the investment is known as purchase acquisition (Bick, Crook, Lynch & Walkup, 2017). The accounting method in which pooling of interest for the merger is combined when without considering the impact of the tax. Mergers and acquisitions are a vital tool to facilitate corporate expansion with the control of assets and shares. It also offers corporate power on the market through joint strategic opportunities.

Capital budgeting analysis is used to ensure the expected return rate, which will undertake specific considerations of financial issues and tax accounting. There is usually a significant hype about the impact of mergers and acquisitions, which is not favorable. They destroy the acquirer’s acquirer’s business value. The process of mergers and acquisitions incorporates the company’s valuation with the price that takes over its assets. This process highlights that price paid is higher than the actual price (Clarasys, 2020). The common failure of mergers and acquisitions is the difficulty of cultural integration. In common practice, the merger is an entity combined with two or more firms. It reflects different leadership styles, corporate cultures, and expectations of employees. The scope of functional differences is broad and based on employee’s expectations.

The corporate law defines a merger as the combination of different corporations and continues to exist when there is asset transfer. The mergers learn shareholders that exchange shares with shares for new firms. The acquisition highlights the target company as an entity that is involved in the business, and its shares are linked to shareholders for debt or cash (GERBAUD & YORK, 2007). The acquisition is based on buying all the assets or a part of the stock. Mergers and acquisitions are the different entities described under various researches. Research indicates that an alliance can be a formation of a holding company.

Corporate managers face increasing pressure to grow company size, mainly when there is a low demand for the product. The process involves managers looking to jump-start growth, and they have to make sure that this growth can provide returns for the shareholders (Ismail, Dbouk&Azouri, 2014). The concept of the merger is different from the acquisition is the sense of resource size. This field has grabbed extensive attention in recent times. Mergers highlight an interdisciplinary framework that enables companies to grow faster and also ensures that how weak companies are acquired. This pace is kicked up from 2001 to 2004 when at a global level, 30,000 acquisitions were completed. It is observed that an increased number of assets is attributable to certain key factors such as deregulation, low inflation, and a rising stock market. Disney and Pixar/Marvel is a successful example of mergers and acquisitions in the resource-based category. The increase in this activity is witnessed in industries like information technology, healthcare, infrastructure, and the development of software.

In South Africa, the Johannesburg Stock Exchange under the control of American corporations involved in market capitalization (Ghosal&Sokol, 2013). In 1984, the political transformation was established due to democracy. Big conglomerates faced unbundling, so their level of the stake was marginalized. Another example was the Emerging Economic Empowerment companies when they participated in the stock market that involved the unbundling of large consortiums. This acquisition by Anglo American Group, like Johnnic investment, led to the emerging business of blacks and companies acquired access to the public capital. This string of emerging acquisitions in previous years illustrates the control of market capitalization despite the widening of economic empowerment. America Online and Time Warner is an example of a merger and acquisition that managed acceptable returns. In some instances, management can experience acceptable returns determined by the size of the company. In some cases, the company has to contribute to the appropriate level of returns, so it selects aggressive growth by involving in mergers and acquisitions.

Part one

Mergers and motivations work on the basis of motivations. These are particularly to increase the financial return and get national interest. The key motives in the expansion of mergers and acquisitions are to create wealth and to expand the market base. Acquisitions are the small role players that can significantly add to the benefits. Proper post-acquisition strategies are not prevalent normally. South Africans large banks acquired smaller banks only to acquire the opportunity of community arrival and reinvestment bill. The bill was managed by the government and help for the smaller banks to get housing finance.

In past South African firms understood the calculated financial risk through understanding the secured liabilities. In case, if some post-acquisition strategies lack focusing on proper management skills or on external environmental factors, the business confronts failures. Some examples from financial sector companies present a high level of competition when there is an increase in customer loyalty and a good brand image (JOHNSON & SIMON, 2009). A bank can face a high threat if no minimum liquidity threshold achieved. Banks focus on risk-free investment and deposits to cover all the extra costs as well as to maintain their capacity level. The research presents that companies have to merge to manage operations and to cut costs efficiently.

Improve Financial Performance

The improvement in financial performance is attributable to the increase in revenue or reduction in costs. Under a synergic strategy, this is accomplished to get operational motivation.

Motivation smoothen profits

The financial improvement process undertakes firm features that explain income smoothing practices. It is based on general motivations that help managers to engage in the financial improvement process. Internal expansion by Hymer has faced by product diversification, vertical integration, and mergers & acquisitions. The motive for a firm’s expansion and profit generation is the pursuit of management (Ogada, Njuguna&Achoki, 2016). This context is well explained under proactive and defensive factors that operate effectively. Under geographic diversification, these factors ensure control due to power and competition in the markets. The market power perspective is defined under proactive factors that appear attractive to the industries. They are rendered more attractive due to the use of anti-competitive conventions such as mergers and acquisitions, barriers to entry, and collusion. Cross-selling success as pros for McKinsey & Company are in the form of efficient delivery of products to realize revenue synergies. Merging firms usually underestimate this potential, but the company has achieved its targeted cross-selling goals (Penrose &Pitelis, 2009).

The cons of cross-selling for the CitiCorp Group are difficulty with challenges related to revenue synergies. They involve multiple groups that are tough to estimate and measure their financial impact. Another con is the gap between end result and goal of targeted selling, i.e., estimated at 20% when measured for 3-5 years synergies.

Increase revenue or market share

The increase in market share of revenue is related to the cost rationalization under operational motivation. The economy of scale also plays a part in managing revenue. Cost rationalization is tax loss, staff, and plant matters. In this framework, market extension and product extension are categorized under horizontal form/ competitors. The market extension links to horizontal form and overseas, so the conglomerate M&A is involved. These mergers occur between two companies that deal with similar products, yet different markets. The market extension merger ensures that companies acquire success in a big market when they work on a large client base. The example of a market extension merger is the acquisition of Eagle Bancshares Inc. by RBC Centura (Renneboog&Vansteenkiste, 2019). The pros of this acquisition were a high growth rate in the North American Market and increased operations as being successful. Some little cons exist for Dow Chemical merger and acquisition in the form of intense competition that they are facing in the financial market. This needs diversification and operations in leading US markets.

The product extension merger occurs in two organizations in similar products and similar markets. This merger allows companies to access larger sets of consumers and group together, so they earn good profits. An example is Mobilink Telecom Inc. and its acquisition by Broadcom under the category of product extension merger. The pros of this type are certification and participation in the competition, as seen in the company’s success. The cons exist for Pfizer and Warner-Lambert for this form due to easily imitated business models and a variety of products in different markets.

Manager’s hubris

An unrealistic belief about managers is managerial hubris that relates to bidding firms when assets are managed for a targeted firm. The conglomerate merger occurs when unrelated business activities located in diverse geographical areas unite and form a company. Its example is Walt Disney’s unification with the American Broadcasting Company. Its successes are pros like value creation, acquisition of assets, and diversification. The cons can be illustrated better for H. J. Heinz and Kraft Foods as tax implementation and financial vulnerability based on circumstances.

Resource acquisition

The mergers and acquisition-related to the human resource are key business tools that show a corporate entity acquires other. This acquisition relates to the professionals when they involve in identifying solutions and recognizing problems in management (WATCH, 2010). The example of resource acquisition is Exxon and Mobile, the success factors in resource acquisition are retentions of employees; good employee benefits program, and development of new policies. The cons are appropriate to discuss for AT&T/Bell South regarding uncertainty in employee performance, low participation, resistance, and high turnover because it can lead to failures.

Vertical integration

The vertical integration as a merger and acquisition illustrates the concept of manufacturing plants and store brands. The functional areas are creation, selling, and distribution of products that eliminate the need for external entities such as transportation and manufacturers. An example of vertical integration is the acquisition of Google of Motorola6 Ikea’s 2015. Its cons are the flow of the supply chain and increased relations with the partners (Renneboog&Vansteenkiste, 2019). The cons for vertical integration can be seen from Facebook and Instagram M&A face downstream on occasions and intense competition in technology.

All of these types discuss that some types of mergers and acquisitions are more likely to get success over others, considering the factors involved.

National interests

The exclusive motivation for mergers and acquisitions is used for national interests. This mainly includes natural resources and strategic resources.

Natural resources

In Africa, the natural resources mergers are made by developed world organizations, such as Europe and North America. Merger action in basic industries, like, petroleum, agriculture, mining, quarrying, hunting, forestry, and fishing, had continued pretty flat during 1988 and 2004, at times when mergers in manufacturing and services had increased and decreased many times by the percentages in hundreds. If something, natural resources mergers bear an inverse relationship with commodities prices.

In different aspects the national interests, these are really difficult to understand. As per researchers, the National interest of Australia is something that can only be described by the Australian people or Government of Australia. It is not stationary and cannot be described mechanically. The law does not offer mechanical guidelines or definitions for the national interest measurement. Due to the significance of natural resources, mergers are oriented on specific principles to get benefits. The accusations of firms under political expediency needs openness. Mergers, as national interests, show greater flexibility (Penrose &Pitelis, 2009).

Due to the large scale of production, products appear in a combined form that must avoid anti-trust issues. It is necessary to increase production to maintain the scale in the industry, so firms invest more in new products, and natural resources such as oil and gas are used to enhance benefits for the economy. In some cases, raw materials are acquired at low cost; for instance, Walmart is the main example that works on corporate expansion and has not faced shrinkage from entering into new markets or reducing prices.

Strategic resources

Strategic resources are the leading format that works on mergers and acquisitions to expand know-how and enter into a competitive environment. The structural scope of the environment is linked to the enhanced mechanism of corporate governance. In the realm of the firm’s acquisition and resources, strategic initiatives play a crucial role. The corporate information security is an integral component to consider while working under acquisitions in the public interest. It helps organizations acquire a key advantage when organizations are facing threats to work. The role of corporate activity undertakes security concepts because it controls the organizational environment. It can be easy to overlook the security matters, but it may enter an insecure connection when the proper framework is installed. The diligence process is linked to the information of an organization where the cybersecurity aspect is recognized as fundamental terms.

The technology under strategic resources is updated with the need of time. Research indicates that 41% of companies focus on mobility and technology to work as a part of their growth strategies. Accenture strategy research states that with the pace of fast-changing communication, high tech industries develop. Established players focus on innovation and stay ahead. In mergers, mostly agile startups are implemented, but they appear complex to handle. The playing field of mergers and acquisitions has opened the door of a new transformation. Due to the implementation of technology, forward-thinking communication offers new paradigms (Ismail, Dbouk&Azouri, 2014). Mergers and acquisitions redefine the boundaries of the industry and generate improved performance.

Global mergers and acquisitions in Japan are experiencing rapid growth due to optimistic nature regarding globalization. The government of Japan has developed policies for mergers and acquisitions that support research activity. At the global level, the scope of transactions in firms remains robust due to prevailed harmony and technology. The activities of mergers and acquisitions in Japan in 2018 is estimated at $358.2 billion. The economic and demographic shifts are to cater to new opportunities. If a portfolio of companies is clarifying their acquisitions, it is likely that they aim for a sharp growth rate. Surge development costs in mergers and acquisitions are attributable to research and development expenses as well as new technologies.

Companies in Japan are focusing on capital market advantages because they are pursuing cross border transactions. In 2008, the financial crisis left these companies in solid shape in financial matters, yet they were characterized by the balance sheet cash (Ghosal&Sokol, 2013). Japan market and central banks faced a rise in interest rates, but they continue to maintain a zero level rate of interest, thus giving corporate operations access to the finance deals.


Several factors are responsible for the success and failure of mergers and acquisitions. The success factors are economies of scale, synergies, cost-saving, and rationalization of channel distribution. It explains different ways that companies adopt to focus on potential capital returns. The common reasons for buying acquisition are also discussed under it.

Strategic plan

The critical factors that impede conditions to influence the outcome of the project are the key terms that are viewed by stakeholders. Researchers view some critical factors as the measurements that are assessed by project success. These issues are project management, project success criteria, and cultural differences. The criteria of project research are fulfilled by budget and quality, according to some authors. These criteria do not necessarily measure project outcomes. To that end, project management is only considered for its operational value, not strategic (Alhenawi& Stilwell, 2017). Project success development is based on internal aspects, while external aspects can be complicated. This measurement is important for success estimation. Researchers also focused on the complex criteria of project management factors that contribute to the success of the project during the handover phase.

Assessing project success is attributable to the stakeholder community benefits, satisfaction, purpose achievement, and organizational benefit (Canback, 2004). In merger and acquisitions, the project management team focus on different perspectives required to get success within the estimated timescale(Warf, 2003). Cultural differences are key factors that may contribute or hinder in project development(Worthington, 2001). The strategic fit can be complimentary when two companies interact with different plans or identify merger strategy (Gupta, Kumar &Upadhyayula, 2012).


Mergers and acquisitions face intuitive target when the acquired firm become more successful(Vestal, 2007). The knowledge of the industry, along with the learning curve, describes the chances of success (Cowin& Moore, 1996). The strategic failure for mergers can be poor strategic rationales, poor integration, difficulty in leading, and communication of the organization. The poor execution and increased costs provide clear evidence of failure and important issues to consider. Slow post-integration of mergers, lack of risk management strategies, and cultural clashes are some key concerns that occur during implementation, for instance, in Altria/Philip Morris(Souply-Pierard and Robert, 2017). The strategic planning policy is important to implement because it is crucial to focus on an effective alignment tool that can follow the due diligence process.

Due diligence is about the assessment of the targets under M&A, where all parties learn how to eradicate misunderstanding(Roengpitya, 2011). The process is critical because of it and comprehensive analysis of the merger, such as their financial stability and cash flow (De Noble, Gustafson &Hergert, 1988). It is found out that the complexity of mergers and acquisitions is increased, i.e., Anheuser-Busch InBev and SABMiller. This endeavor offers an experience to focus on new opportunities. Firms, in this way, face losses and stimulate experience to boost their performance(Peltier, 2004). Firms face success when it learns from past experiences. Some mergers experience consistent purchasing that contributes to the chances of success(Papadakis, 2005). The acquisition experience is not a superior factor, but quick succession allows learning of new experiences for management. The management capabilities of the team effectively implement operational excellence. McKinsey & Company have shown a good implementation of strategy fit to contribute to the merger future.

Timing (Market Cycle)

Mergers and acquisitions are the main sources of organizational growth that achieve diversity, profitability, and growth rate(Friberg, Norback and Persson, 2012). These activities are inclined to attain corporate objectives such as market share and get diversified operations(Greco, 1996). Eagle Bancshares Inc. by RBC Centura, has focused on the market cycle by visualizing the growth pattern and competition. Analysts focus on the successful mergers and acquisitions that their success factors are based on marketing and targeting the right opportunities (Okafor, 2019). For instance, Glaxo/smith Kline is a successful merger and acquisition and has experience in guiding organizations to implement strategic direction. From the marketing perspective, the scope of functioning is based on certain strategies to target the right demographics and to acquire functional planning as well as execution. Due to the structural significance of M& A, the role of the market cycle is to focus on the time frame necessary to implement strategy fit that, in turn, gain advantages(Chibuzor, 2016).

Its role in breaking monopolies and raking control of industries is linked to a marketing perspective that undertakes predatory tendencies of business to seek diversification. This framework is built on the new market entry decisions, establishing market players, and to smooth the cash flows(Boen et al., 2006). Mergers and acquisitions are playing a strong role in increasing the capital flow, leverage buyers, and to create opportunities(Majumdar, Moussawi and Yaylacicegi, 2013). This method is significant for corporate restructuring since it makes companies focus on their operational excellence (Suniram& J, 2019). Asian and European firms seek healthy investment opportunities and time frames through M & A. Timing ensures discipline and productive capacity(Boen, Vanbeselaere and Millet, 2005).


The role of mergers and acquisitions in an industry is significant to enhance opportunities in the market and develop organizational benefits. Better operations and increased production capacity are significant to generate investment opportunities. When Mobilink Telecom Inc. and its acquisition by Broadcom was executed, the plan undertook functional expertise and managerial implications (Okafor, 2019). Mergers and acquisition projects are crucial for companies to grow rapidly and execute their corporate strategies, i.e., Mylan acquisition of Meda (drug maker). This is witnessed in well-developed studies as 50-70% acquisitions increase costs or revenue and can destroy the shareholder value. Some mergers fail and confront challenges to integrate. The example of Exxon and Mobile highlights the involvement of shareholders and the execution of plans by focusing on the client’s success(ABEDIN and DAVIES, 2007). The outdated strategic plan is linked to inadequate execution and planning. In some instances, if executive leadership is not experienced, the mismatch in integration planning occurs.

M&A projects identify significant execution factors that can contribute to success and failures. Planning and execution are key steps for mergers to take over a crucial development stage and maximize their potential for success (Souply-Pierard& Robert, 2017). Researchers have found out that through mergers and acquisitions, capabilities are improved, and a smoother integration is acquired. These success factors for firms are significant to classify in two stages, first is the front end, and the second is integration. Execution, in this way, gives rise to corporate leadership, planning and facilitates stakeholder team through learning mechanisms.


Mergers and acquisitions significantly impact organizations and bring changes in ideology and ownership. Strategic activities and cultural cohesion play a significant role in bringing harmony in the organization. The forward-thinking approach in M&A captures core competencies, organizational skills, and knowledge base. The strategic assets enhance collaborative leadership and talent retention for the organization. Cultural values and traits are important to analyze in different workplaces. The cultural traits are easy to identify due to social group diversity. The depth of cultural influences defines discipline, beliefs, and innovation. Cultural cohesion acts as the strategic asset for M& A that provides the internal weight of the organizational structure. This process develops cultural traits. These processes are linked to maintaining the integrity of the organization, so managers are required to be equipped to meet all organizational needs.

Mergers and acquisitions can be financial or strategic. The former allows expanding finance and bringing in the planning of the financial organization as well as product diversification. The expansion into new facilities defines new horizons and product development perspectives. Through offering credibility to the organization, it appears with the power balance in the market. This report about mergers and acquisitions discussed the extensive scope of their benefits, success, and motives for profit.

The report described key successes and failures of mergers and acquisitions with the appropriate motivations. Companies are engaged in M&A under a broader scope of activities that acquire success possibility. With the discussion of profit-based motives, the acquisitions work on the basis of different objectives. Motivations are illustrated in this paper that provides success criteria for the firms under two main objectives. This aspect is explained in this paper by improvement in financial performance and the maintenance of national interest. This report has examined market revenue, operational motivation, the economy of scale, and rationalization of cost. The diversification, resource acquisition, and vertical integration are discussed under extensive real-life examples. In light of significant evidence, it is discussed that motivation is not only significant to determine the success and failure of M&A. This report has discussed the strategic plan, its implementation, timing & execution under certain dimensions such as vertical/horizontal, relatedness, and APP pricing. The extensive review of different literary studies provided that M&A works more significantly under significant managerial experience with due diligence. The discussion of M&A has also yielded a broader scope of success factors such as strategy, expertise, and diligence. Cost and revenue synergies are focused on M&A strategies to improve functionality. In the realm of advanced technology, successful strategic rationales are considered appropriate to generate good ideas.

The current discussion in this paper has fulfilled the objective of this research, and it is inferred that reducing costs, improving organizational structure, and acquiring expertise for any organization is important to understand. Today, the growth of mergers and acquisitions is also associated with negative consequences. Companies invest a huge amount in acquiring expertise, and understanding of key factors play a stronger role in the success of mergers.


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Executive Summary

This report aims to study the business model of Netflix and Blockbuster. We analyze why Blockbuster failed even though it has become a vast multinational business and the role Netflix played in the downfall of Blockbuster. Moreover, we also discuss the business model and strategy adopted by Netflix, which are responsible for the continued success it has earned over the years. Through our findings, we were able to conclude that the main reason for the decline of Blockbuster was it’s of lack innovation along with changes in culture and technology. Conversely, Netflix was successful because it has been innovative and disruptive from the start.


As technology progresses, business models that previously held value face complete downfall if they fail to upgrade their business strategy according to the demands of the consumers. Even future expectations need to be kept under close consideration while planning and executing the business strategy. Failure to do so has led some of the most prominent and well-established companies to the ground while others replaced them quite successfully. One such example is of Blockbuster, which was a CD/video rental service provider. During the 1980s and 1990s, it was all extremely in demand and hence, one of the top business models. But approaching, the mid-2000s, when Netflix was founded, Blockbuster got replaced effortlessly, and today it is no more than a historical entity in the world of business and movie lovers. Certain strategic failures led to the demise of Blockbuster and similarly, some strategic success which allowed Netflix to replace it and reach the top in the entertainment business. In this report, we will discuss the strategic model and paths taken by both Netflix and Blockbuster and analyse their differences which led to one’s success and the other’s fall.


Historical and cultural analysis of Blockbuster and Netflix and their path dependencies

Video rentals became common in the early 1980s. Soon in 1985, David Cooks opened the first blockbuster store. At the time, there was a lot of potential in this business venture. It was expected to spread rapidly like fire across America. Which is why investor Wayne Huizenga, who precepted the business to be nothing short of a sort of McDonald’s, decided to invest in and became the CEO. Blockbuster’s lifespan was almost the same as the lifespan of the industry of video renting. Down the lane, the company had other financial and competitive issues as well apart from Netflix. By 1993, Blockbuster had 3,600 stores across America, and by 1994, Huizenga sold the company to Viacom. Blockbuster was facing serious competition by 1995 by Hollywood video which wanted to make an even larger physical footprint than Blockbuster. This may be seen as the first hit Blockbuster took as the next year in 1996, the company issued its positive net income which was to be the last in the coming decade. Soon in 1998, Netflix launched its subscription service, but it hadn’t yet become the company’s serious competition as opposed to Walmart, Target and Best Buy, which had high DVD sales in 2003. By 2005 Blockbuster fails to overcome Hollywood Video and sales decline even though the company launched the online business a year before. Still, there was also late fee which was despised by most customers. After some other failures and hits, Blockbuster finally files for Chapter 11 Bankruptcy with hopes to reorganize and continue. Dish Network buys the company out of bankruptcy in 2011 but is forced to close down all of the company-owned stores in 2013 (Green, 2015). Other franchised stores close down as well with a single Blockbuster store left open in Bend, Oregon in 2019.

Netflix started in 1999. Their pricing model was entirely different. Instead of charging rent per movie, Netflix was offering monthly subscriptions where customers could pay a monthly fee and then rent as many movies as they wanted. Another perk unlike Blockbuster was that there was no prescribed return date for the movies, and hence, there was no issue of late fee nor was it used to generate revenue. However, to rent more movies, one had to return the previously held ones. Blockbuster did not cut back on late fee immediately, which cost it a lot of loyal customers and market share which Netflix took over (Halal, 2015).


Strategic position analysis

Blockbuster realized its mistakes too late. It decided to launch its online business in 2004, but it was still a lot behind Netflix. Moreover, it also decided to finish late fee, but that again caused a huge dent in the revenue for the company. At the same time, Viacom took its leave from Blockbuster further weakening, and to properly establish the online business, the company needed around 200 million dollars. With all this and Netflix on the rise, Blockbuster lost 75 per cent of its market value from 2003 to 2005. Soon after, it went bankrupt with all the stores closing let alone one in Bend, Oregon(Olito, 2020).

Blockbuster also tried to make the following changes. Blockbuster adopted a by-mail service which allowed customers to get CDs delivered to their homes. The company’s website also allowed customers to download and watch movies on their computers. Moreover, Blockbuster partnered software developers to make apps that customers could download on their mobiles. They also got into a joint venture with IBM to develop a unique distribution channel which would replace inventory with digital files (ACM, 1993).Moreover, they implemented a short-range scheduling model which eased shipping operations and made them efficient, and also reduced labour and transportation costs (Chung, Dawande, et al, 2011).Despite of all this, the company wasn’t able to withstand competition. The chief restructurer officer at Blockbuster gave five main reasons for the revenue decline of the company. “Increased competition in the media entertainment industry; technological advances that changed the landscape of the industry; changing consumer preferences; the rapid growth of disruptive new competitors; and the general economic environment” (David, Higgins, 2013).

Blockbuster was also drowning in debt which further led to bankruptcy. The competitors were using channels that were more attractive to consumer demands, and hence, they earned greater market shares and market value as well as replacing Blockbuster. There was also economic recession during 2009-2010 which further worsened the situation for Blockbuster. Unemployment was on the rise; thus, consumer spending had considerably decreased, which faired negatively for the business. As a result, the company had to reduce a lot of its administrative expenses and shut down a lot of underperforming stores. It was fighting a lot of financial problems in the meanwhile, Netflix expanded and loomed all over the business(David, Higgins, 2013).

Strategic choices

Ever since the beginning of Netflix in 1999, it has taken the right business moves, which have helped Netflix reach the place it has today. Started with DVD leasing services, then it moved on to streaming and finally became a global TV network. Netflix was able to recognise that streaming services are the “new beasts” (Fagerjord, Kueng, 2019).The business model continued to skyrocket and be constructive. The company’s organizational structure was such that it did not become stagnant and continued to change through time and hence, was also effectively able to face competitors. As of 2017, Netflix amassed 11.7 billion dollars in revenue with 175 million subscribers. Today, Netflix produces its content as well, which is not only limited to Hollywood but amasses other countries’ cinemas as well. It has won awards for various contents (Teece, 2010).

The current business model of Netflix allows subscribers to a huge variety of things, including movies, tv shows, documentaries et cetera on various internet-connected gadgets. Customers have to buy membership subscription and pay monthly for it. They can subscribe to different packages according to their need and price preferences. The key partners for Netflix are content creating studios from whom Netflix buys content from to stream to its subscribers. The business also makes use of aggressive marketing strategies to increase the number of subscribers. Money earned from subscriptions is used primarily to purchase more content and also to produce its own, which comes under key activities for the business. Netflix also makes a profit through strategic product placement which is another smart business move. This implies that many products are highlighted in the shows as a way of advertisement. The Netflix business model makes effective use of its resources (Teece, 2010).

Even though Netflix also started as a DVD distribution service, it did not stop there like Blockbuster. The company rightly believed in the power of data analytics and used it to its advantage profusely. It was able to build a recommendation engine using the best possible data science algorithms. So, the system could now predict DVD requests more efficiently. This made them even better than Blockbuster and other video rentals. Netflix always believed in disruption via innovation as a business strategy, and it was successful in implementing that (Osur, 2016).

Strategy in action

Netflix also targets consumers very smartly. The main target audience includes young adults to middle-aged males and females. That is a huge segment of people. It also implies that instead of focusing on demographics, Netflix focuses on psychographics to lure people in. Hence, Netflix targets individuals who are too busy or broke to go and buy movies, and they want easy, cheap fix for entertainment. Thus, the value proposition is extremely important in the business model for Netflix. The company has been able to earn so many subscriptions because it is affordable for the majority. Secondly, the services can be availed on any range of internet-connected devices, making it convenient to use. Thirdly, there’s a huge variety of genres and shows that an individual can choose from. Every user gets personalized recommendations of shows and movies, which essentially makes most people hooked to Netflix for hours on a stretch. This is because of the algorithms they use. Binge-watching has become increasingly common on Netflix as entire seasons are released at a time instead of single episodes. Moreover, the absence of ads is a huge attraction for the majority as they can stream without any interruptions. Since Netflix is investing a lot of money in making original content, this allows them competitive advantage (Osur, 2016).

Any company’s financial conditions are the most important in predicting the future success of the company. Looking at Netflix’s financial conditions for three years between 2013 to 2015, it can be concluded that the business is doing well in terms of liquidity, profitability, and its assets. The company has up to a billion dollars in cash and equivalents, which can be immediately used for investments. An organizations ability to handle short term assets to pay off obligations is determined by liquidity and it has increased for Netflix in this time interval.However, it is dependent more on inventory rather than liquid assets. Debt to equity ratio shouldn’t be too high ideally, and Netflix has a small number of 1.07. Profitability ratios show the firms capacity to make a profit in terms of revenue and assets. Data shows that Netflix is very stable and balanced in this area. This can be attributed to the company’s international expansion and the creation of original content. Shareholders’ equity has also only increased in the case of Netflix since 2013. The company has been able to control costs effectively as well. “High working net operating profit implies that the organization has a great cost control and that sales are increasing faster than costs, which delineates a profitable solution for a company.” This is not in favour of Netflix, however. The company’s costs are expanding at a faster rate than its income. Revenue and net profit also decreased in 2015 in comparison to the previous two years as Netflix had a lot of expenses due to upgrades in content quality. Efficiency calculates the generation of sales revenue in a company using its assets. A high ratio shows that the company is effectively using its assets to generate revenue. In the case of Netflix, asset turnover has been decreasing even though there is an increase in total revenues from assets. This is because Netflix is spending a lot on expanding and on creating content, thus incurring huge costs (Mazzolini, Bozzolan, 2016).

However, overall, the company is doing very well and has been able to maintain continuous development and a good level of profit. The challenge for Netflix is to maintain an increase in rates of return. If profits grow smaller, it will become harder for Netflix to fight against competitors who have a more capital and financial backup. As of now, Netflix seems to be on the right track with its international expansion and newer content coming in. Netflix has to hold more content as well so that companies such as HBO and Amazon can’t outsource it for content. Failure to do this would lead to significant losses in subscriptions and ultimately, revenues which are why their original content apart from what is coming from their clients is a great help (Mazzolini, Bozzolan, 2016).


Blockbuster was a huge hit in the limited, give or take, twenty-year period. Firstly, because at that time there was no other way to enjoy movies unless one bought the VHS tapes, so rental stores were naturally a huge hit. Then the investors that pooled in money into the business in its early years took Blockbuster to the top in a short period and the business had a total of 6000 stores worldwide in 1944. It was dealing with billions of dollars. But all this did not last long. The late fee had aggravated a lot of people. In fact, Blockbuster earned 16 per cent of its revenue which makes for 800 million dollars just by the late fee. Netflix founder Reed Hastings is reported to have said that he founded Netflix because he was frustrated by the late fees at Blockbuster. So, in its early days, Netflix would deliver DVDs right at homes for monthly subscriptions and no late fees. This was, of course, a much welcome change to entertainment consumers, so they replaced Blockbuster. Another faulty move by Blockbuster was that the company never acted on its decision of buying Netflix when it was new. They were to buy it for 50 million dollars but never did so. The company seriously underestimated its competition because it was doing well at the time with 9000 stores globally and 60,000 employees and earned 5.9 billion dollars in revenue in 2004 (Olito, 2020).

The Netflix founder, Reed Hastings, went to the CEO of Blockbuster, John Antioco, in 2000 to propose a partnership but he was laughed out. At the time, Netflix was new. Fast forward to the future, Blockbuster failed miserably, and Netflix became a 28 billion dollars company, many times more worthy than Blockbuster ever was. The biggest fault of the company, however, seems to be the late fee. It is what truly drove customers away. Penalizing its customers for profit, was a faulty move in the business model for Blockbuster. Netflix’s popularity grew by word of mouth. More and more people fell in love with the services it provided. It became trendy. This behaviour is called threshold model of collective behaviour. Plus, it helped Netflix in the coming years that online networking became easier and popular through sites such as Facebook and Twitter. Both of these were not available to Blockbuster or were ignored by the company. The organization had a very tight internal network only and this also adversely affected it (Satell, 2014).

Discussion (Strategy Choices)

Netflix has promising plans for the future as well. There are two main projects that the company is expected to pursue which catch the eye. Firstly, Netflix television and secondly, the High Dynamic Range (HDR). Netflix television would emerge via partnerships with cable TV companies such as RCN, Grand Communication and Atlantic Broadband. The advantage of this business project would be that a new market segment could be tapped. There are a lot of people who aren’t avid internet or gadget users so, they would be able to avail Netflix services via television. However, there are also complications related to contracts, licenses and permits. So, for this project to be applicable and successful, Netflix would have to acquire rights from various cable TV studios. On the other hand, Netflix is trying to develop the feature of HDR, which is a new standard for image quality. It has invested quite a lot of capital in making this feature. This essentially provides an even better watching experience than HD. If this were to be successful competitors would face a blow (Mazzolini, Bozzolan, 2016).

In order to be successful in the future as well there are some strategic choices that Netflix can make. First of all, they always need to be aware of the changing trends in consumer decision making. Hence, Netflix should look into consumer technology such as IoT systems so that they can compete with companies such as Amazon. Secondly, Netflix needs to create something that is unique to their brand and adds to consumer experience like Alexa or Siri. Many companies such as Disney are collaborating with others to create something entirely different. This is so that Netflix sticks in the life of the consumers. Hence, Netflix needs to build up a strong collaborative strategy.They can partner with these companies to set up boxes or gaming consoles (Winter, 2011).Netflix should continue keeping its subscription price low and streaming quality high so there are minimum barriers to entry and more and more people continue to join. This way they can fight off competition (Fagerjord, Kueng, 2019).The company also needs to acquire more content on the basis of what consumer demand. For example, a lot of famous movies and tv shows are still not on Netflix and other companies such as Disney and Warner Bros are coming up with their own streaming channels which could cause Netflix to lose viewership with increased competition (Snyman, Gilliard, 2019).


Netflix has a platform business model. It has four main components which are producers, consumers, providers and owners. Advantage of this model is that it is not heavily dependent on physical assets, unlike the Blockbuster business model. The focus is on digital assets instead. Digital assets comprise of data by users. Access to this data has allowed Netflix to “build a state-of-the-art customer-centric business” which is another perk in this business model. This also aids in the reduction of costs such as store maintenance and other related costs. Thus, the efficiency of the company increases. They were easily able to innovate too, unlike Blockbuster, which had zero “innovative disruption” and hence, was driven out of the market (Brunetta, Turner, Ciccone, 2017). A platform business model does not acquire other businesses or fixed assets but instead makes links with more and more user networks(Fagerjord, Kueng, 2019).Lack of innovation leads to Blockbuster’s failure (Grshon, 2013). All this and the analysis done above shows how Netflix will be able to dominate in the industry of content streaming thanks to its malleable business model.


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Apple incorporated is a multinational company that is jointly owned by Vanguard Group and BlackRock, both being institutional investors. It has become the largest technological giants of today (World Economic Forum). It was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. It’s an American-based company whose current CEO is Tim Cook since 2011. Apple products include Apple Watch, Apple TV, Apple iPad, and, the most famous, iPhone. Apple earned a total revenue of $260 Billion in 2019. Its subsidiaries include Beats Electronics, Apple Store, NextVR, FileMaker and many more. As of 2019, the company had more than 500 retail stores globally. The SWOT analysis of the company is significant in revealing where the company stands today and how it will go about in the coming years of the future.


By identifying the strengths of the company, one can tell the company’s strong areas and how it has a monopoly over them and takes advantage of these to overcome its weaknesses. The company has internal as well as external advantages and strengths.

Apple’s Brand Image

One of its major strengths includes the fact that it has a sturdy brand image. The brand has been in the market for very long and has become a luxury good. Thus, many people with increased incomes prefer to buy Apple products, especially iPhones, because of the image it entails and displays wealth.

Self-sufficiency in Developing Parts

Another one of its strengths is that the company is self-sufficient in developing its own hardware, software, services and all other applications. Apple has designed its own ecosystem, and since it lacks Apple’s biggest competitor, Samsung, this is a really strong strength of Apple Inc.

Advanced Advertising and Marketing Expertise

Moreover, another important strength of the company is its advanced and attractive advertising and marketing abilities. Apple’s brand recognition is maintained via media giants and technology companies such as Forbes that acknowledges that the company is worth about 205.5 Billion US Dollars. Its reputation is maintained by quality advertisements such as “1984” and “Think Different” that guarantee superior marketing skills, promising to attract new customers by using advertisements as psychological tools. This enables the building of brand loyalty and confirms future customers.


Apple’s weaknesses are not many but are sufficient enough to be mentioned.

Expensive Products

One of its most targeted weaknesses is that it has extremely expensive products. iPhone 7 cost $649 in 2016, and in about three years, its price increased by 54%. Apple is the first American company toreach the trillion-dollar mark. Even Switzerland’s GDP is lesser than Apple’s market cap in monetary terms. Since its logo has become a status symbol; the company is alleged to charge the “Apple Tax” for its branding. The prices are so high that brand sales are decreasing exponentially in India.


Exclusivity of Apple Products

One of the major criticisms of Apple is that the company’s software is incompatible with working with other any other software. This has given rise to the concept of Apple universe whereby the customers are propelled to buy supportive products to enhance their products that are already in use. The exclusivity of the Apple products faces criticism by customers that complain that not only are their products expensive but are compatible only with other Apple products.


The opportunities available for Apple Inc. are external factors that affect its supply. These opportunities also help in the strategic planning of the company by highlighting the areas it can potentially take advantage of to enable economic growth.

Digital Revolution

One of the major areas of opportunity is granted by the overall trend of increased dependency on technology in this subtle digital revolution that is underway. This entails the increased use of Apple computers, iPhones, Keyboards and the accessories attached in furthering the increased use of technology. Offices, schools and freelance places are all now more dependent on technology than they used to be, and this increased demand for technology does propel the supply to increase to meet the demand.


Another opportunity provided to Apple Inc. is the very fact that globalization has successfully taken place. Globalization is the process whereby a company gains international scale and influence and expands its operational procedures. Globalization has boosted the company’s profit margins as consumers can easily request and purchase Apple products that are more readily available. This aspect increases sales, and thereby the profits also increase.

Product Diversification

Additionally, another strategy the Apple Inc. can take advantage of is the strategy of product diversification. This propagates that the company may increase the number of products it offers or may offer cheaper products to attract middle or low-income customers. Also, increasing their supply chains distribution centres, especially in developing countries, will help boost their sales that will, in turn, assist in earning more profits.


Apple Inc. also faces many threats, as any multinational company does.

Market for Products

One of the important areas of the threat the company faces is the potential market for phones and tablets might be on the fall as evidence show that the smartphone demand has fallen by 3%. Reasons for the fall might include the fact that when one has already purchased a phone or a tablet, he or she might not feel the need to buy that again when the older one is fully functional already. This argument suggests that sales might slow down.


Additionally, another threat present for Apple Inc. may be the emergence of new companies that offer the same products. These competitors might provide the same product with more or less the same features. The product also might be less expensive, so it is attractive to the consumers. Apple Inc.’s competitors include Samsung, Google, Nokia, Sony and many more.

Fear of Imitation

Another threat to the company may be the fear that its products can be imitated. Imitation has been one of the biggest threats for recognized companies. The fear of having their software or any aspect of the technology stolen is big enough to take measures to cover for it.

All in all, it can be observed from the SWOT analysis that Apple Inc. has many strengths, weaknesses, opportunities and threats. Analyzing and assessing all of these will help the company, its customers, and its competitors alike to make a decision that benefits the respective parties.


 Resources (page 2) (page 2) (page 1 and 2)


World Economic Forum (page 1)





Executive Summary

The following report aims to critically review the current strategic opportunities available to the Waterstones book chain when it comes to digital transformation. These opportunities arise as a result of various political, economic, social, technological, environmental, and legal factors present within the United Kingdom’s business environment.

With the recent outbreak of the Coronavirus Pandemic, firms are trying to shift to online operations readily.And the firms already having most of their operations online, are looking to capitalize on the opportunities that are present on the digital front. This report not only just reviews these factors, but it will also try to provide strategies on how to make use of these opportunities.

The incorporation of technology, or digitalization, of all business processes, is known as Digital Transformation. It is a structural change that completely changes how a business operates and delivers values to its customers.

Furthermore, some internal and external factors are at play. This report aims to analyze those factors thoroughly and looks to provide strategic solutions on how to counter or make use of such factors.

Lastly, one of the main focus of this report is to identify a new strategic aspect that the Waterstone book chain is yet to discover and capitalize on that before any competitor firm cashes in on that.

Digital Transformation

The digitalization of a business is known as Digital Transformation. Digital Transformation changes how a business conducts its operations and creates value for its customers. Apart from an operational change, a business that introduces digital transformation has to go through a complete cultural reboot. In recent times, the emphasis on e-commerce and the digitalization of businesses has grown a lot. Businesses have started to introduce digital transformation in different areas.

Every firm has a different sort of digital transformation based on its particular business conditions and demographics. However, there are a few common elements that all digitally transformed firms have. Firms having incorporated digital transformation are more customer-centric than other firms. Their idea is to enhance and enrich the customer experience at each touchpoint. A digitally transformed firm is very smooth and agile when it comes to operations. One of the main benefits and motivations for digital transformation is the fact that it enhances operational efficiency.

Lastly, as mentioned earlier, digital transformation means a change of culture. Digital Transformation is not about introducing the latest technologies. Instead, it is more about embracing change and leaving the old practices behind.

With developments made over the last decade, digital transformation is the way to go forward. It will be crucial to any business’s success.

Current Factors

Over the last decade, the world has increasingly been shifting to online businesses. The customers are satisfied with placing their orders online and paying through online channels. Items that can only be used physically are delivered at doorsteps. In contrast, the items that can be used in softcopies are simply being stored in the customers’ computers—for example, books and journals. With the outbreak of the COVID-19 in recent months, social distancing has become mandatory. Going out of the house is considered hazardous and dangerous. With all these circumstances, digital transformation has become even more critical. When it comes to Waterstones, it has been open to digitalization. And hence it seems to be in a pole position to capitalize on the current market conditions.

Politically, the UK government’s policies regarding the use of the internet for conducting online businesses have been somewhat flexible. Through various studies, the government has discovered the growing influence of digital services on multiple age groups across the country, which allows Waterstones, a healthy space online.

The UK has had a rather stable economy over the last decade, and this crucial factor allows Waterstones to introduce digitalization throughout its supply chain. And with the support of government policies, Waterstone can easily benefit through such measures.

Socially, the general direction of the whole world, and now especially with the Coronavirus, the preference has shifted mainly to online purchasing. Since Waterstones mainly sells books, it is a massive opportunity for it to go online.(Pînzaru, Zbuchea and Viţelar, 2019)

The concept of E-Books has become dominant because all the books can now be stored on a computer. This concept saves a lot of time that a consumer takes to make a physical purchase; it saves the space that hardcopies occupy. And for students, it saves the burden of physically carrying multiple books. (Pînzaru, Zbuchea and Viţelar, 2019)

And adhering to the guidelines laid out by the governments around to combat the Coronavirus, E-Books and softcopies comply with social distancing as well.

Although Waterstones is technically well equipped, with the current situation in light of the COVID-19, there will mostly be a sharp increase in the demand for E-Books and softcopies. Hence, Waterstones could benefit from more investment in Cloud or Artificial Intelligence. Technologically, it is an excellent time for Waterstones to expand digitally and adapt to digital transformation.

Through selling books and other related items online, Waterstones can significantly reduce its environmental footprint. For books, the first and foremost thing is paper, through hardcopies the manufacturers of books is directly linked to deforestation and hence leaves a critical environmental footprint. Furthermore, the transportation of raw materials and the deliveries of hard copies of books leads to large amounts of fuel emissions resulting in severe air pollution. Indulging in such practices can seriously taint Waterstones’ brand image. Environment preservation has continued to become quite essential in recent years, and customers prefer to opt for brands who are contributing to the environment. By emphasizing more on online operations, Waterstones can make a crucial contribution to the environment and reduce its environmental footprint to a great extent.(Shaughnessy, 2018)

On the legal front, the UK government, as discussed earlier, has been somewhat flexible and supportive with online businesses. And since most of the regulations and legal issues are related to the environment, conducting business online is considerably safer in that regard.

Implementation of Strategies

The recent shift towards technology and consumer preference of buying online, combined with the business atmosphere in the UK have presented Waterstones with a bunch of opportunities that it can use. (Berman, 2012)

Waterstones can look to increase investment on its online platforms. Since the government is supportive of such ventures, there is minimal risk of any political invention in Waterstones’ online operations. Having supportive government policies can also help Waterstones in expanding abroad. Since the business is online, Waterstones doesn’t have to have a physical outlet in overseas countries. The buyers from abroad can simply connect with Waterstones on its online platform and purchase E-Books and softcopies. (Matt, Hess and Benlian, 2015)

Apart from that, the UK’s stable economy means that the general business conditions are right, and firms are having a good time conducting business. Waterstones can use this opportunity to invest in digital transformation throughout its supply chain. With each touchpoint of the supply chain introduced to digital transformation, Waterstones can drastically increase its operational efficiency. The firm policy, inflation, and unemployment rates also mean that it will be more comfortable for Waterstones to expand through obtaining cheaper loans. Moreover, such stable conditions indicate that the customers will also have enough buying power to shop online in an instant without thinking twice.

Socially, with the COVID-19 situation, the growing awareness of the general population about using digital services makes it an excellent opportunity to go digital. Waterstones can develop its smartphone app that is accessible for almost everyone. This concept makes for a unique consumer experience since each user is carrying their virtual library in their pockets. The app is a quite convenient option since everyone has a smartphone in this day and age. Waterstones can earn a lot of revenue through its app downloads and then the in-app purchases.

Furthermore, through digital transformation, Waterstones has a massive opportunity to collaborate with online giants like eBay, Amazon, and Alibaba. With its books being displayed on their platforms, Waterstones can dramatically increase its market size. Moving on, Waterstones can partner with Universities and research centres and provide special discounts to the university’s students and the members of the research centre on their E-Books. This strategy will increase Waterstones’ customers base and help it to make a long-lasting mark. Lastly, one of the best strategies the Waterstones can implement is to partner with Schools, Colleges, Universities, and NGOs. Waterstones can provide digital library services to Universities and research centres. And with the increasing shift towards technologies, students prefer carrying their course materials on their computers rather than

coursebooks to the students through their digital application. This strategy will solve the students’ burden of physically carrying books while also providing the schools with a one-stop solution for coursebook provision across all levels of the school. All of this will do wonders for Waterstones’ brand positioning and market share.

By digital transformation and automation, Waterstones automatically becomes environment friendly. And with the increasing shift towards environmental sustainability, a brand that is contributing to environmental preservation outshines others. By merely conducting its operations online, Waterstones can attract a cumbersome amount of customers, which will increase its sales, brand reputation, and successful performance.

Challenges associated with Digital Transformation

One of the main challenges faced while shifting online and using digital transformation is that it is particularly hard to gauge consumer sentiment. In the business atmosphere today, customer experience matters the most. For an online business, it is harder to gauge customer experience. An unsatisfied customer may simply stop purchasing from your online store. (Schwertner, 2017)

The results of resistance to change, show themselves in a plethora of ways. Advanced ventures crucial to an organization’s going-concern can experience difficulty in getting subsidies, resources, or advertisements. These ventures might be changed so as not to compromise retail or accomplice brands. They are kept down by worries about tearing apart other income sources. They are approached to legitimize ROI to an unusual degree of conviction. They are sent through interminable lawful audits.

Kodak envisioned the automated camera, yet it was the inside assurance from a change that drove the association to cover it since it subverted the association’s legacy film business. Did mobile phones beat the landline business? The truth is out. Regardless, Bell Atlantic “guaranteed” itself by enduring that change was not very far away, and changed by choosing the irksome decisions required to conform to that change.

Another challenge that a company faces when adapting to digital transformation is the risk of employee pushbacks. The introduction of technology across the whole business might severely demotivate the existing workforce. With technology comes a massive threat of layoffs for the current employees. This threat brings the morale and productivity of the employees down drastically. There is a massive skill gap between those employees who know how to operate technology and those who don’t. The gap means that the skilled workforce already has hands full and hence, don’t have the time to train the old employees. (Digital Transformation- The Internet of Things- Opportunities and Challenges, 2020)

One of the most crucial challenges faced by companies operating online is the problem of substandard analytics. Whenever a customer visits an online store, they like personalization. They like to be shown what they’ve been buying or products of a similar nature. Substandard analytics ruin the customer experience, having the potential to convert profits into losses. (Digital Transformation- The Internet of Things- Opportunities and Challenges, 2020)

Associations that adequately “cross the void” to modernized reasonability consistently discover they need to oblige free what they used to charge for, sell as participation what used to be “independently.” Adapt through publicizing things that used to be paid for in various habits, and reconsider how they get pay from the value that they make. Those that do so deftly can every now and again find that the gathering of an electronic procedure offers more scale, pay, and advantage than the legacy approach. However, it takes experimentation, a notion of danger, and – to be uncaring – some mistake on the way. In spite of the fact that this approach is comprehensively recognized among new organizations, it is one that the organization and money related masters being developed associations, generally, fear. Notwithstanding, this is the gauntlet they should race to gain electronic ground.

Overcoming Challenges

Challenges are there to be faced and overcome. Hence is why the challenges that are present with shifting majorly to digital transformation can be faced. Its a fact that with online businesses, it is nearly impossible to gauge customer sentiment. If the customer has a bad experience, they might silently go away without any conversation at all. To overcome this crucial challenge, Waterstones can make sure that it is not just trying to achieve a higher sales target. The focus should primarily be on customer experience. By improving and enhancing all the touchpoints throughout the customer experience, Waterstones can firmly place itself in the minds of the customers. It will also help in automatically boosting sales, and retaining customers, providing stability in future growth.

To counter the employee pushback issues, Waterstones needs to think out of the box. It can tackle this challenge by incorporating a customer-centric culture. The focus needs to be on the customer more than anything. When a company strives to provide the best experience to its customers, there is a cultural reboot from top to bottom, which ultimately leads to employee training and development. Such actions help in massively boosting the morale of the employees, and they try to produce the best results as a result. (Borate and Borate, 2014)

Waterstones might not be able to delete uncertainty and vulnerability from employees’ brains. However, you can positively reduce them. Being steady and straightforward is vital. Keep your workers connected through the entire procedure. Engage them and paint them a future they would all be able to move in a specific direction. By helping its workers comprehend what’s in question, you can positively motivate them.

The issue of substandard analytics can be resolved through investment in better AI systems. Through introducing high-quality Artificial Intelligence systems, Waterstones can dramatically increase its database and gather more data efficiently. Through a comprehensive database, personalization becomes very simple and easy. When the customers are provided with interface personalization, they are displayed content of their interest, which enhances the customer experience and satisfaction significantly. (Pichan, Lazarescu and Soh, 2015)



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Steve Jobs had an unconventional life and was raised by two working-class parents. Steve Jobs was an entrepreneur that dropped out of college and worked on becoming the owner of Apple. Entrepreneurship is defined to be a key driver for economic growth, job creation, and also competitiveness. (OECD, 1998) There is also a growing understanding that entrepreneurship is best defined as a field of business that works on seeking to understand how opportunities create something new. Through entrepreneurship, new ways to organize existing technologies arise, and individuals use these discoveries to create something new and exploit or develop these opportunities. (Shane and Venkataraman, 2000)

Steve Jobs relied heavily on intuition to make managerial decisions throughout his life. In his statements, he claims that intuition is a great force, and a person’s gut is always telling them something. Steve Jobs believed that to reach success,individuals needed to be able to deploy their talents wisely. (Srinivasan, 2013) Jobs explained that most of the workers on his Mac were poets and musicians. Jobs strategy is not one that comes without historical precedent since the convergence of art and science has created artists like Leonardo da Vinci and Michaelangelo. (Snow, 1960)

Steve Jobs, during his time at reeds, learned how to do calligraphy and also learned to experiment with different fonts and styles. Learning this skill proved to be instrumental for him while designing the Mac, and it was one such situation where intuition worked. (Highhouse, 2008) claims that there is a stubborn reliance on intuition and human decisions are claimed to be more reliable than scientific aids for a study.

This behavior is not uncommon and is even seen in seasoned practitioners who often neglect to seek out new evidence because they trust their research and studies more.(Pfeffer and Sutton, 2020) Evidence-based management has been hard to apply, and there is often too much evidence available, which at the end of the day clouds an individual’s ability to make judgments. Therefore, many people rely heavily on intuition and steve jobs has also signified his reliance on intuition in several situations. In his lecture to recent graduates, he advises them to trust their gut while going for anything because it is impossible to connect the dots looking forward.

Bounded rationality is also in harmony with these theories. Bounded rationality theory claims that decisions individuals make are limited by multiple factors such as the time they have at their disposal, the information they have available, and their mental information processing ability. In certain situations, people are often called out to give numerical predictions on the well being of a stock. If a favorable description is given, it attracts a favorable review, and if a negative description is given, it attracts a negative review regardless of the authenticity of the information. In most situations, individual predictions are insensitive to the accuracy of the information. (Tversky and Kahneman, 1974)

Steve Jobs relied heavily on rationality to make his decisions and also employed the use of emotional intelligence in stressful situations. Situations where he was removed from Apple, and he started from the ground up again and was successful. (Steve Drucker, 1995) claims that innovation is a destabilizer that allows for the creative destruction of the steady-state and therefore allows constant changes to occur.


Decades of research have concluded that people care deeply about their self-concept and also expend a great deal of effort maintaining a positive image of self often by engaging in motivated reasoning (Steele 1988, Kunda 1990).

Steve Jobs is also no stranger to this. He engaged himself in positive images of self once he was laid off from Apple and motivated himself to start neXt and Pixar. These two initiatives ended up in him gaining back his lost position at Apple and also finding a partner that he could spend his life with.

Finance researchers have developed a Hubris hypothesis theory through studying the effects of over-optimism and overconfidence and have found out that overconfident managers end up overestimating the returns on their investments. CEO hubris is also fanned by the celebrity status that has come to pervade the upper echelons of business culture like steve jobs. In situations where Hubris becomes involved, tragedy can quite easily form. (Sadler-Smith, n.d.)

Steve Jobs has played a central and pivotal role to Apple, and much of Apple’s success is tied to his role. However, in some situations,steve jobs has executed poor managerial and unprofessional decisions as well. In a particular board meeting, Steve jobs was claimed to have barged in hurling profanities to the managers which ended up having the entire agreement going in bad taste.

Steve jobs rejoined apple not to make a profit but to donate to the cause. In his speech, he claimed that he loved what he did, and whatever happened at Apple was not enough to make him give up. Instead, it freed him up to start over, and once he was provided with the chance, he rejoined apple to make the most of his learnings. This version of executive leadership has been developed in the book ‘good to great.’ Level 5 leaders are individuals that are wholly and completely dedicated to the cause and the cause alone.

CNN reported that Jobs, in some cases, was not afraid to get his hands dirty and sometimes attended to customer service requests himself. Leaders who manage firms by taking in inputs from their employees and those who trust their employees more end up making their firm more productive and successful. Steve Jobs was able to bring about good results through walking a calculated balance of Hubris and Humility.

Steve Jobs has been known as an individual having a sharp eye for detail,and he had an autocratic style of leadership where he did not just stop at products. Steve also made a few mistakes in his professional life, but he did not let those mistakes get to his head and always picked himself up. (Economy, 2018)

Traditional economics Postulates that an economic man is also someone rational, and this man is also someone who is assumed to know relevant aspects of his environment which, if not complete, are at least impressively bright and also voluminous. (Simon, 1955)Moreover, Steve Jobs was also someone who possessed similar characteristics as those of a rational leader.


Managerial Decision making is the act of making decisions about something or about a position or opinion or judgment that has been reached. For effective management, a significant level of prior accumulated knowledge and insight needs to be naturally present to be able to formulate a practical insight that can connect the dots effectively. (Manchester, 1995)

For most of his managerial decisions, steve jobs was an Individual that relied on perfection and an individual that had a preset vision in mind. His vision alone was the sole reason through which he was able to convert a small scale garage company into a billion-dollar company with 4000 employees. Wallas, in his four-stage model of insight, describes a stage between incubation and illumination. The illumination stage is one in which our fringe consciousness is near a rising consciousness that success is coming. There is an intuition that the direction we are following is the right path, and breakthroughs are also just around the corner. (Sadler-Smith, 2012)

From an analysis of steve jobs’ life and the decisions he has made throughout, it can be said that Steve Jobs was operating strikingly similar to the four-stage model of insight as proposed by wallas. Steve was a Level five leader that was not motivated by profit.Instead, he was someone that was motivated by the impact he can create. Level 5 leaders are individuals that love what they do and are motivated towards creating innovative products.

Intuition itself has many stages. Researchers were able to split the findings in dual processes, namely recognition based intuition and intuition-based inquiry. Gerd Gigerenzer’s book ‘Fast and Frugal’ Heuristics also talks about the importance of a harmonic balance between intuition and analysis to be able to make effective managerial decisions. Steve Jobs is a big proponent of following one’s intuition and claims that one should always have the courage to follow his or her gut because they somehow already know what one is going to become.

In the Gestalt psychology view of problem-solving, prior knowledge and expertise can be a barrier to creativity (King and Anderson, 2002). steve jobs also faced this problem and enjoyed his freedom when he started NeXT and Pixar and claimed that it freed him to enter the most creative periods of his life. The technology Steve Jobs was able to develop at NeXT with no pressure was so brilliant that it became the heart of Apple’s current renaissance.

Steve jobs applied a sensible approach to problems where he did not solely rely on his intuition or gut. He also placed in consideration various other factors as well. Achieving a balance on intuition and analysis can be said to be the best possible way to arrive at decisions.

Creative problem solving is at the heart of every successful business, and most creative solutions do not occur in situations of stress or situations of expectation. Steve Jobs uses his intuitive approach and trusts his gut feelings to be able to create innovative solutions. The classical model of decision making is a very dubious one, and most leaders fail to follow simply one model of decision making.Instead, they follow multiple different decision-making models and often end up mixing them up to be able to achieve favorable outcomes.



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Bounded rationality
Based on research, bounded rationality is the decisions individuals make when they are pressed for time. Steve Jobs was a bounded rational who used to make the best possible decisions based on his gut. Time is a scarce resource for many, and in many circumstances, there is simply not enough time to calculate future decisions. He encourages people to be creative and be brave enough to follow their gut.


Evidence-Based Management
As discussed above, evidence-based management is a management strategy that requires much time and motivation to execute. Something which is not as easily available, and this management strategy rarely gets practiced because most managers have a stubborn reliance on intuition.
Steve Jobs was someone who relied on intuition and relied on his gut more than anything. He simply did not pursue things when they did not feel right, and it is for this very reason that he dropped out of college and eventually ended up starting a business empire.
Shortcuts are everyone’s favorites, and Steve jobs also used mental shortcuts to ease the cognitive load of making critical decisions.
Motivated reasoning


Steve jobs employs motivated reasoning by claiming that getting fired from Apple was the best thing to happen to him. His reasoning helped him make use of his skills to start new things that ended up becoming successful as well.






Current age is confronting challenges of health and humanity survival. The issue of pandemic global Coronavirus has stopped every business activity around the globe. Covid-19 crisis is taking over the world and testing clinical capacity of teams with unprecedented patient numbers (Bauer & Anderson, 1985). The situation is also providing opportunities to healthcare to envision effective care delivery in future. Leadership and communication are the core parts of teams during current pandemic. A thoughtful and strong leadership is critical for organizational stability. During the height of crisis, a team planning is necessary to tackle the situation. The team building approach works significantly for the leadership development and this practice yields a planned orientation. Covid 19 has modified communication ways in teamwork, focused more on team building work and developed sound basis. Leadership process is a systematic work that binds team members to produce a productive workforce.

Covid-19 upheaval has expedited team communication and virtual setup, leadership and management. Best practice to handle tough situation is team management, effective collaboration and virtual communication. Team management trains to work on virtual platform because teammates need to know their delivery and its significance. Before this crisis, team management have not faced virtually integrated and technology driven environment (Burt, 2018). Trust, confidence and engagement are some core parts of team management that needs to be communicated with customer. These attributes function effectively under thoughtful leadership.

It is critical to discuss that team leaders manage and devote essential time to train teams. Knowledge transfer through team building approach allow them to lead and perform effectively. It is important to understand that essential principles of leadership work inherently when applied to teamwork (Costantine, Landon &Saade, 2020). They aid team development approach, grouping performance and business environment. Due to effective communication and connectivity, awareness related to key societal issues needs a broad-based structure. A leader follows these rules and provide a wide scenario to implement techniques of grouping and group based tasks.

Performing strong and knowledge based teams play a critical role in developing groups. The group based learning allows individuals to participate in different ventures and focus on connectivity. Group based activities also focus on good attributes and put relevant impact on capabilities to face challenges (Georgiades, 2020). Under a leadership perspective, the goal of grouping is to face issues and develop planning. To accomplish groups’ objectives, preparation is essential that is invigorated by leaders and they develop a team charter. It is essential to understand the team operating agreement that enhance group members’ involvement and they know about work patterns. Teams can reduce stress by using mindful technologies and collaboration (Hajro, 2018). Role of group in education is significant to understand because positive and negative characteristics determine success ratio.

Purpose of study

It is important to know that how a leader contributes for the good of the group. This notion is better to understand when required leadership and grouping theories are considered. Working on leadership theories, allows understanding of team work, management principles and abilities needed to accomplish tasks. The purpose of this paper is to identify how a leader contributes to good things in a group and it will be linked to relevant theories. The paper will describe good and bad attributes of a group and its influence through leadership.

Theoretical Overview

Individual and collective level leadership pertains to effective team members. At individual level, groups behave different from the external point of view, for instance, it is reflected when a person say that someone has got into the bad company. The notion of self-managed teams is linked to the high performing and task oriented structure (Hirpara& Taylor, 2020). In certain organizations, these features of team are not common but depends on leaders’ involvement. A leader can walk in such situation and adopts necessary steps required for high performing groups. Teamwork, group and leadership play essential role in the Industrial age. Current pandemic has focused on the need to work in grouping to achieve goals and objectives.

Group Dynamics

Groups differ in size, character and composition. Some famous groups appear to share key values and similarity of features make them dominant. The systematic group study was stated by Kurt Lewin in 1940s, when multiple research papers were written on group dynamics. It is a vibrant field that overlap multiple branches like social science, psychology, education and sociology. The scope of groups and its linkage with industry is significant because in many disciplines, group study is focused (Kassema, 2020). For example, psychotherapy is about group therapy, in business, management teams are managed, and in politics, political leadership participates. Groups have taken recognition after the setting up of theories in social psychology about work nature, plan and development of teams.

In grouping, good and bad are two key types that elaborate the idea about functioning of groups. The good group functioning all goes well, it spreads positive influence and give positive motivation that persists. On the contrary, the wrong or bad group is about the rebellious attitude and conflicts in class or at workplace. This form of group engages team members in unproductive activities and show unwillingness to cooperate. The difference in good or bad group is different and based on situational factors. The group dynamics play inherent role in defining the role of group in classroom or in workplace. The internal characteristics of a good group pave the way for learning and evolve over time.

The learner group consists of active partners and members represent a strong social unit that is bigger than the sum (Kaul, Shah & El-Serag, 2020). Group development is essential to work inherently because if it goes astray, it can harm learning. It is important to consider the positive development of group processes, as driving force can pursue learning goals. Researchers have focused on key processes used in the development of group dynamics that go inside and analyze team building approaches. In educational contexts, the group dynamics determine coherency and act as independent units. The productive environment for groups allows their involvement and they specialize in subject matter training. Due to structural significance of group based behaviors, the scope of leadership extends.

Leader Member Exchange Theory

Literature presents the dimensions of leader member exchange theory under transformational leadership. The concept ‘leader-member exchange’ theory was floated in classical Greek Days under vertical dyed linkage (McArthur, 2002). The concept is about leadership approach that work on group behaviors within organizations. The theory is intuitive and discuss what a leader group structure can be. It explains the working dimensions of group and leadership by pointing towards the strong features. It also illustrates the dynamic of problems, issues of loyalty with leader and develops structure to offer solutions. A leader works to maintain team in most significant form through its hard work and striving efforts. The role of responsibility matters a lot when it comes to work through grouping.

Leaders usually garner their position of relationship. The leader member exchange theory highlights the fact that a position by grouping is secured by trust and confidence. Most of the trusted person and supporters do this with responsibility under an inner circle. The inner circle is based on dyad linkage theory. Dyad means two, and it refers to leader and it is linked to others for whom it work. Linkage is about relationship that work for the coherency to build team. Leaders feel that team is the main adhering point for their productivity because it specifically work for the support (Spinelli &Pellino, 2020). If a leader allows it followers work according to the task, they would get substantial support in this regard.

The scope of roles under leadership is undefined because a supporter can assume a formal role. A subordinate and leaders’ relationship is preserved at some instances, due to conflict of power. Due to acquisition of power, a leader undertakes challenges and can relate to the lower status. The term ‘inner circle’ can define the power of a relationship when it comes to a leader and supporter (Stillman, Fletcher &Carr, 2007). In a team, multiple tasks, strengthening roles and supportive relationship allow greater performance. Better roles define better leadership so supportive leaders support more and acquire greater responsibility. The range of leaders can be different from a small discussion forum to large and this framework undertakes strong attributes to accomplish a task.

Leadership range differs, when it comes to manage teams, either small or large encompassing roles tackle groups (Somech, 2003). For the structural framework, the complex tasks can need more organizational and group dynamics to work. In leader member exchange theory, there are three stages of development. First is the organizational stage that can be performed under some approaches and help a person rise from a crowd while having intelligence and charisma. The second stage is role development that comes with many origins and answers the questions that how group was formed. In the third stage of development, the ‘good old boy network’ expression is developed. This leader led relationship needs consideration to work on general qualities that will develop groups. In these cases, the fundamental values are integrity, trust, and willingness that not only work on openness but also delegate power. In current working environment and situation, egregious routinized systems face challenges.


The methodology of this paper is qualitative. With the help of interviews, research question will be addressed. Qualitative interview will be evaluated under a thematic analysis approach.


The participant of this study is a 27 years old university student at her final masters’ year in Educational Leadership and Management at the University of Coalalambour. She was approached while she was about to leave Coalalambour and requested to be interviewed since her major requires her to do lots of group projects. Pre-interview was done followed by the final interview, she refused to do a third interview because she was busy with exams. She was interviewed to understand the grouping and leadership principles because her major was educational leadership. Understanding leadership and grouping allows evaluation of major differences in productive work. The participant involvement provided insights to know about managing team work and participation in productive workouts.


The procedure used in this study is use of thematic analysis approach like the one developed by Braun and Clarke (2013). The thematic approach allows familiarizing with the data by assigning preliminary codes. In this interviewing process, data familiarity will provide themes by jotting down different ideas. After this, coding will be implemented. Coding is about summarizing three lined of interviews as dialogues that will reflect images, words or accurate concepts. Coding is the iterative stage that will explain the work and ideas.

Procedure further extends to validate the codes. It is to work on re-examining data by authenticating the consistency of data to ensure if it is not misinterpreted. Set up of themes after code validation will allow clustering in themes. The creation of multiple themes will allow finalizing of on theme, later its illustration will be done with verbatim quotations. When coding process will be finalized, the report results will be composed.

The thematic analysis of qualitative data is a useful approach to analyze data effectively. This process is suitable and appropriately applicable on interview transcripts like the one used in this study. The process will allow examining further ideas and themes that are workable and provide a future dimension. The advantages of thematic analysis of qualitative data are finding a running theme, getting flexibility of fata and think about key ideas (Singh, Meera Bai & Pal, 2011). For instance, the issue of current age is coronavirus that is modifying existing leadership behaviors in countries. Changed behaviors in leadership are transforming teamwork hence grouping.

Under this thematic approach, a freedom is attained that makes research study flexible because it is modified under different research studies. Literature helps validating different concepts of theory so a rich and detailed result is attained. Current research will contribute in this way to discuss epistemology about leadership. Our research question about leadership and changing group behavior due to Covid-19 will be significantly answered by this approach. This method will help organizing, analyzing and in identifying themes appeared from a dataset. The collected data will be analyzed in the next section in light of interview transcript.

Data Analysis

Based on interview and methodology, data is divided into three parts. A first part is a good group, a second part is a bad group, and the third part is discussion.

The good group

The interview discussion was vibrant because participant explained about her group and leading person traits. She described two group leaders who exhibited different characteristics. The researcher was interested in Group dynamics, and God forbid that how wrong can work for group related tasks. Group dynamics is a group work that operates in small numbers. Participant described that good leader gathers its team and makes it healthy by telling everyone about their roles. The leader, who builds a strong team, is enthusiastic and has an incredible capacity to empathize. A leader is visionary and tolerant who understand the issues with group members and seeks a problem-solving approach (Safronova&Urubkov, 2017).

The information provided by the participant discussed the excellent attributes of a leader and group roles. The leaders’ characteristics are never-ending because he wants to see its team strong. He is unconventional and fun-loving, neither needy nor demanding. In addition, a good leader develops a good group and has a youthful spirit. It is researched that in the times of corona crisis, leadership should be more responsible, accelerated and ready to help (Petriglieri, 2020). The foundations in the form of a strong team allow better performance and develop good team ethics (Schwarz, 2014). It also helps employees and fellows to move smoothly and communicate effectively.

Good teams and groups focus on results and outcomes when work is done collectively. The leader offers them clear direction under a visionary approach to achieve organizational objectives. During a crisis, a leader has the responsibility to gather group members and lead them effectively, so that they get hope (Miao, Newman, Schwarz & Xu, 2013). According to participant, an enchantment with vision is a clear framework that helps individuals set up their directions and learn frequently. Visionary leaders promise a better future due to their sacrificing and productive nature. In the times of crisis like the current pandemic of Coronavirus, leaders have to show responsibility to control and direct the team. If vision is not set in crisis, motivation will not be achieved.

The bad group

A bad group face the bad side of a leader during a time of crisis, so team members face the worst experience. The participant in this study has elaborated the worst experience she faced with a bad leader. For instance, at corona times, the leader kept the same plan outside of what team wanted to change because of the corona, such as social distancing.Participant discussed “the leader was less appealing to team members due to her behaviour and display of different features like, she boosted her math abilities, tried to avert his eyes and showed intense behavior”.Some bad points in her views are “changed momentum quite a bit with the Corona outbreak, unexpected change and stability in the group and lots of arguments which is a wrong way of doing things”.Team members seem unsatisfactory due to this kind of approach. Due to reduced participation or no vision of a leader, a group may turn into bad and show poor contribution.

Bad group exhibits a lethargic approach due to work and show overburdened. There is less competency in the group, and they lack crucial skills like productivity, efficiency and performance (McFarland, 2014). This kind of situation creates a stressful work environment so the leader can be disrespectful to co-workers, supervisors and other mates. Lack of involvement is the key feature of a bad group because there is no vision and direction that help team members to get involved in team activities. The poor team members refuse to take any responsibility, so they always face failures.

More specifically, Adair theory is best suited here. It is action-centered leadership that was presented by John Adair in 1960. It is three circles model that overlap each other and elaborate about task achievement, managing grouping and managing individuals that form a team (Mango, 2018).


Overlapping circles highlight that these three elements work together, as elements of managing individual can overlap managing group and that in turn can overlap achieving the task and so managing individuals (Junker & van Dick, 2014). This theory illustrates that if a manager wants to be a good leader, all these features should be implemented. The model is itself simple yet needs to adapt to the situation.


The interview with the participant provided key themes of grouping, such as good group, bad group and their working dynamics. The way of working and involving group members into different tasks has been greatly changed due to the crisis of coronavirus. Groups are no more working together due to social distancing rules. Leaders follow key precautionary practices to help group members stay safe and spread awareness (Grint, 2020). According to research studies, group behaviour can guide individuals in adopting goods and bad ethics. Interview inferred that group behaviour is mostly workable with leader behaviour, for instance, a positive attitude of a leader develops positive roots of a group, so it turned into a good group and vice versa. Corona crisis has changed the notion of many groups and group leaders about work and work ethics. For instance, better and improved collaboration has been seen today than earlier to tackle the crisis. Improved support and value-added opinion have been seen in current times due to a positive group working ethics (Dörnyei& Murphey, 2009).

In the bad times, the good group can hold power, trust and mouldbehaviours of the team, so a leader can have influence over the entire team. A good group have a powerful sense of strength and an incredible sense of authority so the leader will be idealistic. On the contrary, “a bad leader can be a critical person and always try to be a perfectionist” discussed by participant, so this will create distance in team members. Popular and ideal leader work on social skills to gather a team and tries to resolve conflicts. For example, in the interview, the participant mentioned some weak points of a leader while working as a group in corona situation when no precautions were followed, and gathering was allowed.

The difference in the good and bad group is apparent from working ethics, following the current scenario and leadership approach. Different team leader perceptions allow team members to think and behave according to the situation (Chappelow, 2007). From the participants’ view, good leader values its members and work together during the issue of the coronavirus, since it is important to follow distance maintaining rules. Hence, a leader can focus on group members’ behaviour and modifies them. A behavioral theory of leadership considers the reactions and observable actions of leaders and followers in a particular situation, just like a corona. The theory focuses on leaders’ behaviour and assumes that whether the leader is born or made, successful leadership is based on learned and definable behaviour.

Participative leadership theory describes a style of leadership that is an idea on the basis of group learning (Davis, 2001). These leaders enhance contribution and encourage the participation of the team in a group so that they feel more accountable (Cardiff, McCormack &McCance, 2018). This process help group members to be more specific to adopt decision-making approach and use a decisive style. A leader in this way enhance communication and social skills and brings in teamwork format. The structural process of team and leadership needs to be updated with the current crisis such as Covid-19 situation to train and educate the team members.


Leadership during crisis interpret the ideal traits necessary to form a group and build skills. Leaders not only provide structural approach but also reassure people to participate in product decisions. Adapting to new challenges of current crisis like corona is attributable to leader because he instils need in the team required to tackle conflicts. Group behaviour is decided on behalf of the leader. The report discussed the key issue of coronavirus today and its impact on leadership. It is based on leaders’ guidelines and actions. Mostly good leaders develop good groups because they develop good habits in-group members that allow them to participate in objective accomplishment. Bad groups face declined morale due to less involvement and less participation. In view of the participant of the study, a good leader engages team members and encourage them to participate in activities.

Leadership defines group roles, and current pandemic needs leadership skills that develop good group collaboration. If a good group develops better collaborative skills in members, it’s evident to work in collective support during a crisis. Moreover, good leadership necessitates a trustworthy image and decision making power. This interview analysis illustrated that the current challenging situation needs effective leadership skills to monitor group behaviour as well as to educate people. A leader works as a mentor and educator to direct group fellows, thus enhance learning. The views of the participant about good group and leadership showed that the best leader is an ideal one because he/she supports its team in all respects, is trustworthy, exchange ideas and coordination.

The leader is an influential figure and encourages the team to spread positive influence, get educated and stay involved. The study is useful in terms of analyzing the role of a good leader in building the best team with all good features. The study is beneficial in terms of describing a bad leader that corresponds to a bad group. The study discussed that bad group behaviour not only discourages team members but reduce their involvement. Lack of involvement declines productivity. The study illustrated the practical experience of a participant in the current scenario of coronavirus and how important it is to maintain social distancing and rules to avoid contact with the public. The study provides an institutional approach in terms of understanding the good behavior of a leader that results in good group ethics and that positive group activity improves health.

Group dynamics-based approach discussed that group interaction is essential to maintain in an organization, which is attributable to the leader. The performance of a leader describes how effectively a group is being managed and what attributes are built in the group members. The attitudinal/behavioural and participatory theories are relevant to discuss in this paper because they define the attitude of leaders and foster skills that are necessary to implement in the team. The current paper is valuable in terms of analyzing team behaviour and leadership approach. It helps to learn key frameworks of leadership and its role in modifying team members’ attitude. The paper enhanced learning about standards a leader set for managing teamwork allows establishing productive roles and responsibilities. During tough times like corona, leadership supports teamwork and develops group behavior. This situation also invigorates competencies in teams and groups.


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Gender: Female
• Approximate age 27
• Nationality Colombian
• Current status
•Time and language of the interview : English

Appendix A The Actual Interview Transcript

Interviewer: Good Morning!

Participant: Good morning!

Interviewer: I hope everything is okay with you?

Participant: Yea. What about you.

Interviewer: Pretty good, I would say. Thank you.

Participant: You are welcome.

Interviewer: So, are you ready?

Participant: Ready when you are.

Interviewer: Okay. Just to recap, you said you were in two distinctive groups, good and bad.

Participant: Yes.

Group Nature

Interviewer: What is the description of the groups in your opinion?

Participant: Well for the good group, we were five from different countries. Our leader ‘R’ was enthusiastic throughout the project. Which was about a presentation on the effects of depression on managing the team. We decided early on that we should get together in [location of the gathering] and we were always there except for one guy but he had his own reasons. As for the other group, we had four members. The leader of the first group was just a regular member there in the second group. He was a bit shy at first. The leader ‘K’ was a bit older than all of us. She said that she knew him from somewhere, but I did not bother to ask. We had a pretty good start, since the leader knows how to figure her way through numbers because statistics was our issue in the first group!


Interviewer: What were the symptoms of the groups being good/bad?

Participant: As for the good group, ‘R’ gave each and every one of us our roles and was tolerant of our mistakes. I still remember his smile wherever he was waiting for us when we get together. Like we often asked where this guy actually gets angry or not! He was optimistic and often seeking to understand. One day, [name of one of the group members] was completely lost for like a full week. Then, he suddenly contacted us and said that he ran into an accident. Our leader quickly gathered us and we went to his place to check up on him. Our leader told him that he already did his job and all he wished for is his fat recovery! What a man! He was also fun loving and unconventional, which validates my need for freedom. He was neither needy or demanding. I felt I was there because I want to be, not because I had to be there, if that makes any sense? There other guys were a bit slow but with quick minds and youthful spirits. I think it helped stimulate my mind.

As for the bad group, the leader ‘K’ was pretty confidant of herself. She even boosted about her math abilities. Saying that it will be a smooth sail and all that and winked at ‘R’. He tried to avert his eyes. Anyhow, she gave us high hopes since we did struggle quite a bit. Well, let us just say it was our main pitfall! The momentum changed quite a bit with the Corona outbreak. There where periods of unexpected change and stability in our second group. We were meant to meet at the evening. She said that we can meet in her place. One of the girls said that we should not because of social distancing rules. But she said that nothing would ever happen and we should meet to get things done. Suddenly, one of the girls did not come, ‘K’ was somewhat angry because she met her in the grocery store that day and, according to her, she was fine. ‘K’ argued a lot with her on phone. I knew this way of doing things is wrong. Yet, ‘R’ did not do anything at all! Her intensity scared us. As if there was not outlet for what she was thinking about. All she had in mind is that the work needs to be done according to her plan. ‘R’ Had an unsatisfactory look on his face.

Q3. Do you think group activity helps i.e. positive or negative?

  1. explain if it is negative

It depends on how the group acts with its leader. I think the second group was negative because of its leader. She thought that she is more capable than all of us and therefore she bossed us all around. She came across as cold and critical. I mean she did not listen to any of us. All she wanted is that we gave our answers to whatever questions she had. Thinking nothing about the current situation, I mean Corona kept us doing nothing but work and work. I do not know why he did not say anything to her, though!

As for the good one, being understanding and supportive really elevated some of the pain. Like no one was able to go as deep as we could! We spent quite sometime together outside of what we had to do.

Interview: What is your opinion about working in groups can impact grade?

Participant: Well It did impact both our grades and our health!

For the good group, we got a lower grade, but we thought that all of our efforts were payed off. As for the bad group, we got a better grad at the expense of our mental health!

Interviewer: Do you think grouping allows everyone to put in similar effort?

Not always! I got this sense of inadequacy with the second group. Like I need to just follow her and that’s it.

Interview What are the reasons that attribute the group’s being good/bad to?

  1. please mention if there are bad attributes

Participant: As for the good group, ‘R’ was practical, trustworthy and could hold things for others. He gave some of his time and did one of the guys work!


Influence of the leaders

Interviewer: What influence of the leaders had on grouping?

Participant : As for the good group, although he gave powerful sense of power and an incredible sense of authority, he was idealistic and in touch with his soft side.

The bad group had a leader who was critical and perfectionist and I think it created a distance.

Interview:  Can you state three drawback of group work in both groups?

Participant:To be honest, I did not like ‘R’ helping the other member that much. It is good to be caring but not to the extent of doing his work! Secondly, he did not ask about our weaknesses. We know that no one is competent enough in statistics not until the end! I think it because we also spent so much time having fun together.

The bad group had a pretty bossy leader. She seemed like she did not need the help of others. She also trusted herself so much  that she went to the extreme trying to prove that she was right! Thank god no one got corona!  I also felt like we were in the group only to do the work.

Interviewer: Do you agree that group projects enable individuals to use skills which individual assessment do not?

Participant: Yeah. Social skills, for example. Humans tend to view the world through closed kingdoms. Group work allows us to see the issue from multiple angles!

Interviewer: You mentioned conflicts in the two groups, what do you think the main reason behind them? Could you please state some causes?

Participant: Hmmm. I will be honest. ‘K’ is highly independent but a bit hard-headed. We failed to persuade her to do the work via Zoom. She said that since we all live in the same area, we had to come in one place and do the work. The police noticed us and told us to disperse and she was about to fight with the saying that we do not have corona. She was also so wrapped up in the project that she never spoke to any one of us outside of what she told us to do. She did an outstanding job in her part. But the others were less productive.

The good group was about to fell apart at the end. We were quite weak in statistics. As a result, we had this thought that all of our work is in vain. Still, being together gave us hope that everything will be fine in the end.

Significance of grouping

Interviewer: can you describe your general feelings about significance of grouping min light of the two groups?

Participant:The bad group left a bad taste in my mouth. I really wanted to be myself. But ‘K’s’ Impulsiveness made us doubt ourselves. I felt like if I follow my gut feelings, there will always be unfavorable consequences. So, from my perspective, I could not take any actions effortlessly. Had to go back to her.

As for the good group. We had this sense of belonging that we did not do anything wrong. Rather than seeing this pattern, I mean us not knowing anything bout statistics, as punishment, we thought of it as a process of personal growth.

Interviewer: How did the leaders as the group leaders behave and how did this contribute to what the group was like?

Participant:The good group had a pretty down-earth leader. I felt like it does not matter how hard I worked because perfection is hard. We really had fun together and felt like family.

As for the bad group. I think, while her intensity could help her achieve success in this world, it would not be very helpful to her in the long run. I do not think that I would ever work with her again
Interviewer: What happened to the groups in question?

Interviewer: Do you think the two leaders exerted influence on group members?

Participant:A big yes! I wanted to be the good group because I wanted to. I had to be in the bad group because I had to!

Interviewer: How leader’s ideas forward towards a strategy in groups , mention two ideas?

‘R’ felt like he already embraced his kindness and desire to provide. When he helped our friend, I felt safe and take care of. I can depend on this leader. Yeah and he likes to work in cooperation with others. I felt like I can help anyone with anything and I learned new things! Unlike the bad group. ‘K’ was like a robot, she said that everyone should only do his job and I felt board the whole time! She also did not follow social distancing rules and we did not work like we should. I think her not following the rules by the government worsened our commitment. It is like we thought he was a perfectionist in everything.

Interviewer: Are the described phenomena common in the country the you come from?

Participant: Oh boy! A roller coaster of emotions! You can find both good and bad people in my country!

Interviewer: Can you make your assessment of team effectiveness, if yes, mention three characteristics?

Participant: The workflow was solid with the first group. The leader seed like he had a knack for knowing how to deal with people. He was fun-loving and approachable.

The second group was bad. She was intense, arrogant and a bit nasty. I tried to hide what I felt a number of times. One day, I woke up and saw like 23 messages from her. She thought I was ignoring her. I did not bother to say that I was feeling sick because I do not think she would believe me. I just said that I was away and I am sorry.

Interviewer: How perceptions of one team leader can be different from others?

Participant: Since we came from different backgrounds, we had some religious and language barriers. But we did not think of it that much. In the good group, we had fun. In the bad group, we worked like hell. So, each leader had his own qualities that resulted in new experiences.

Interview: What are the key values that are inherent in the two leaders, as a participant of the group?

Participant:  ‘R’ valued group work and fun above all. As a result, we felt close to him and everyone else. ‘K’ Thought that we only need to do our job and we were distant from each other.

Interviewer: So you think a leader need to focus on group behavior, how a leader connects all the team members together?

Participant: Exactly.

What can minimized the conflicts in group members


Interviewer: Can you specify two things that you feel work differently the minimized the conflicts in group members?

Participant: ‘R’s’ kindness. It worked like magic with the good group. But he was almost non-existent in the bad one that I felt like it was a bad trait!

Also, ‘K’s’ intensity could have been beneficial to us in the statistical part of the project. We were a bit carless. But it was bad in the second group because it but so much pressure on us.

Interviewer: What is the reason some people go off task at any point during the group work?

Now that I think about it, the way ‘R’ showed his kindness towards us and that everything is aright make us procrastinate a bit. Also, When my friend got sick and ‘R’ helped him, I had this satanic thought of doing the same thing. But with ‘K’, we went discussing trivial things like that we can do everything online and she said that she would never join us! We had to come, and I did not work elsewhere except when we got together.

Interviewer: Since one of your team member was absent from group work but role is assigned, what would you do if you were the leader?

Participant: I would compensate that member’s work and move on.

Interviewer:  In your opinion, which leader was best to in assessing the understanding of group member?

Participant: I think the bad one. She asked about what each excels at.

Interviewer:  How collaboration in group work can yield learning?

Participant: Through coordination and exchange of ideas

Interviewer: Based on your experience with the group work, how every participant behaves with it?

Participant It was different in both. As I told you, the leader is the most influential figure.

Interviewer: Is it important for all group members to show consent towards agreed goals?

Participant: Of course!

Interviewer: What are some other thoughts about group work?

Participant: Sharing is caring. You need to always let the other members feel that you are connected with them.

How team members behave

Interviewer: Do you believe team members understands one another’s’ role?

Participant: Yes for the bad group but the pressure was so hard for us we lost interest in doing our best.

Interviewer: Do the two leaders assume the responsibility to train their members and focus on effective collaboration, coordination and development?

Participant: The leader of the bad group did not. She said: “What do you excel most at?” and we decided on the roles. She than said that since no one said anything when she said the word “excel”, no one needs any help! That snake!

Interviewer: What about the good group?

Participant: He did the same but followed us through to the end.

Interview: I think this is it. Do you have anything else to say?

Participant: No, Thank you.

Interview: You are welcome, Thank you for your help.

Participant: No problem. Good luck!

Interview: You, too!

Appendix B Pre-Interview

Interviewer: Good morning [Name of the participant]! My name is George! I am a researcher interested in Group dynamics and God forbid what might go wrong during group work! All of your info will not be shared by anyone, including this recording.

There will be two interviews. The first one is to just lay the ground for the second interview. So, for now, let us just talk in general and not go too deep. We will leave it for the second interview. Is this alright with you? I may ask for a third one if there is something that would need any clarification. Do You Have any questions?


Participant: Ready when you are.


Interviewer: How are you coping with the corona outbreak? I hope you are doing fine!


Participant: I am fine, Thank you. It has been really tough for me.


Interviewer: I am really sad to hear this! I really everything is fine. Do you need any help?.


Participant: Thank you so much. No , I am doing fine. I hope you are, as well. Do you need any help?


Interviewer: No, I am doing fine. Thank you for asking!


Participant: Good! I heard your boss is trying to get in touch with you all.


Interviewer: Yes. They are Putting us in groups of small numbers to take us back.


Participant: HeHe. Group dynamics the right way.


Interviewer: Haha. I would not say this at such an early stage but thank you!


Participant: No problem. Wish for your safe travel.


Interviewer: Thank you. Speaking of Which, you did say that you had a very interesting experience in two distinct groups. May I know about them? Let us first start with the good one.


Participant: Yes. We knew our roles from the very beginning. [The group’s leader] was a very active guy. He was pretty enthusiastic and I was instantly into the mood. I must confess, though. He was a bit confrontal. But I always felt that it was never an issue.


Interviewer: Do you mind if I ask why it was never an issue?


Participant: He felt like my practical side. Like he was a maturing influence on me.


Interviewer: Interesting! So he felt like he had this energy that made you want to show up, right?


Participant: Yes.


Interviewer: Was this the same for everyone else?


Participant: Yes, I think so. He had this incredible capacity to empathize.He was able to see the good in all things and he was visionary and can see the world from both sides despite the differences among us. Ironik enough, He was a complete guy in the other group!


Interviewer:Was he the leader in both?


Participant: No, He was just another member in the second one. He disapproved of that girl’s intensity, that was apparent. But it felt like his will was somewhat diminished and he could not express himself. He even reacted quite recklessly. Typical man!


Interviewer: I completely understand you. But may I ask you to discuss the two groups separately? Just to avoid confusion.


Participant: No problem.


Interviewer: So, you said that, for the good group, you all were different from one another. May I ask how? what was so different about you all.


Participant: Well, since this is an international university. We all came from dramatically different backgrounds.


Interviewer: Yes. I see. Was this the same with the other group?


Participant: Yea, minus having one member I knew from the older group.


Interviewer: Oh this second group seems totally different, eh?


Participant: Well the start was actually better than the first one!


Interviewer: Seriously?


Participant: Yeah but with the spread of Covid-19, it went downhill.


Interviewer: Oh! That is too bad.


Participant: I know, right!


Interviewer: What was the main thing that made it the worst experience?


Participant: Despite the fact that she showed a period of struggle, she kept with the same plan outside of what we wanted to change because of the corona. We went through trials for no clear reason! Just when we thought we leveled off and found a solution, she said no and when I confronted her in private, she said I trust my intuition and we should not change the way things are! What the! And he just stood there Like a wall despite his experience as a leader!


Interviewer: I really feel you. You need to give reasonable reasons for your actions!


Participant: I do not think that I will be able to get that man *tch*.


Interviewer: He must have been a headache. But I think this is it. Thank you so much. I will get back to you in 5 days time. Just email me with times you are comfortable with. Is this okay with you? Do you have anything else to add?

Participant: Not that I think of. Okay. Thanks!


Interview: Your welcome! Thank you so much for the help! Talk to you later!

Participant: You, too! See you soon!




Appendix CCoding List

Description of Good Groups:

  • They are collaborative
  • They are trustworthy
  • They communicate effectively
  • They show involvement

Description of Bad Groups:

  • Groups that are less involved
  • They are not trustworthy
  • Lack of involvement
  • No vision, less optimistic

Group activity benefits

  • understanding and supportive role
  • Positive collaboration
  • Optimism
  • Improvement in grades and health

Influence of leaders on Grouping

  • Strength
  • incredible sense of authority
  • Better communication
  • Focus on decision making

Projects help groups than individuals

  • Team building approach
  • conflict resolution
  • Enhancing social skills

Leaders as the group leaders

  • They modify team behavior
  • They enhance decision making skills
  • They encourage members by fun and learning
  • They give ideas that forward towards a strategy

Team effectiveness

  • Approachable
  • Fun loving
  • People dealing

Group Behavior

  • Kindness
  • fun & learning
  • Collaboration

Benefits of Group work

  • Sharing
  • Understanding
  • Coordination













Theme: Events that character go Through Change and Impact their thinking and Behaviour

Executive Summary

This essay explores the theme of whether events in characters’ life in the epic novel War and Peace by Leo Tolstoy affect the thinking and behavior of the character. This essay explores arguments related to historical context of the novel and vastly analysis the character development of Nikolai Rostov to understand the stance taken by the novel on this theme.

The Russian novel War and Peace by Leo Tolstoy is a recognized epic that was initially published in series but was later released in its full form in 1869. The novel is extremely profound in its nature as it does not encompass a single theme or adds to a single idea but explores human sublimity by mentioning topics such as psychological themes, philosophy, historical commentary, social dilemmas, ideological conflicts, and political struggles. Like other intellectual pieces of Tolstoy, this work as well gives an insight into the great mind of the author who made his mark in establishing the nuanced nature of a human mind. As expected from Tolstoy, the novel has many interesting and timeless themes such as individual desires versus the worldly “right”, the dynamics of social classes and many more. Ones of the most important themes explores the human tendency to be affected by what goes through their lives and how the events they go through effect and change their thinking. This theme is important because understanding this enables the readers to realize why this novel came to be about.

The historical context plays an important role in the plot, character development and thematic concerns of the novel and how the events affect the character is a major theme in the academia of history. It is important to note that this novel is fundamentally a thrilling example of history as much as it is an interesting story. It is important to note that it was in 1863 that Tolstoy endeavoured to write about a political dissident who was returning from exile in Siberia. The process took him five years, and he came up with a book that looked nothing like what he had planned initially. The story was instead spread around themes of love-stories, battlefields, economic strife, and religious teachings. This stemmed from his fascination of the Decembrist Revolution of 1825, whereby around 3000 Russian soldiers protested against the Nicholas I’s ascension to the throne after Tsar Alexander I. So his ideas tilted towards the events of 1825. Then he realized how can he comment on the events of 1825 without mentioning the story of 1812 when Napoleon’s tremendous invasion of Russia helped propel authoritarianism that the Decembrists were primarily rebelling against. Even after this, he realized how could he talk about Napoleon’s invasion without mentioning 1805 when the Russians first learned about the danger Napoleon posed after their defeat at the Battle of Austerlitz. This ordeal of what to incorporate led him to come up with something that would integrate his initial aspiration of mentioning the individual struggle and do so in the background provided by the significant historical context.

The starting of the novel is significant in establishing its overall stance as it opens with the scene of war between France and Russia. While he also mentions the tales of Aristocrats at the cocktail party and their indifference concerning the war. Their conversations subdue to money, sex and all the lavish niceties of life. This indicates the norm set by the author as he considers the upper class to have such conversations. This sheds light at the aspect of the events in people’s life affecting their behaviours as here the aristocrats are affected by the luxuries nature of their status so much so that it consumes them and blinds them to the real pains, struggles and actual reality of the world that they live in by large. The aristocratic conversations that take place in Anna Pavlovna’s salon serve as a microcosm of the upper strata of the society (chapter 1-6, pages 3-52).

Moreover, the historical significance of the novel is established as it questions the idea of the “great man”. Tolstoy is famous for bringing about the elephant in the room into the highlight. The nineteenth-century witnessed a boom in wars and invasions, whereby the cult of Napoleon was extremely prevalent. He was a recognized great man and was also an opportunist. The novel is set in 1805-1820 and describes the war between France and Germany. In doing so, a commentary on leadership is also given, and Tolstoy rejects the notion of the “Great Man” by mentioning the Battle of Borodino that was fought between Napoleon’s 130,000 troops, about 500 guns, versus Russians’ 120,000 men and about 600 guns. About 30,000 French men lost their lives, and 45,000 Russians were killed. The concept is stated brilliantly in Book 10, chapter 28, pages 1848-1849, “And it was not Napoleon who directed the course of the battle, for none of his orders was executed, and during the battle, he did not know what was going on before him. So the way in which these people killed one another was not decided by Napoleon’s will but occurred independently of him, in accord with the will of hundreds of thousands of people who took part in the common action. It only seemed to Napoleon that it all took place by his will. And so the question whether he had or had not a cold has no more historical interest than the cold of the least of the transport soldiers. Moreover, the assertion made by various writers that his cold was the cause of his dispositions not being as well planned as on former occasions, and of his orders during the battle not being as good as previously, is quite baseless, which again shows that Napoleon’s cold on the twenty-sixth of August was unimportant. The dispositions cited above are not at all worse, but are even better, than previous dispositions by which he had won victories. His pseudo-orders during the battle were also no worse than formerly, but much the same as usual. These dispositions and orders only seem worse War and Peace 1849 of 2882 than previous ones because the battle of Borodino was the first Napoleon did not win. The profoundest and most excellent dispositions and orders seem very bad, and every learned militarist criticizes them with looks oks importance, when they relate to a battle that has been lost, and the very worst dispositions and orders seem very good, and serious people fill whole volumes to demonstrate their merits, when they relate to a battle that has been won. The dispositions drawn up by Weyrother for the battle of Austerlitz were a model of perfection for that kind of composition, but still they were criticized- criticized for their very perfection, for their excessive minuteness. Napoleon at the battle of Borodino fulfilled his office as representative of authority as well as, and even better than, at other battles. He did nothing harmful to the progress of the battle; he inclined to the most reasonable opinions, he made no confusion, did not contradict himself, did not get frightened or run away from the field of battle, but with his great tact and military experience carried out his role of appearing to command, calmly and with dignity.” This lengthy quote gives an insight into the author’s mind that he believes that history is not only shaped by great men, but rather other cultural, social, societal and economic factors come into play. Also, the events of the past are so significant that they affect the people who later change the way events happen as hinted in this quote. This quote largely brings out Tolstoy’s way of criticizing people who believe in the “Great Man” concept. It is Tolstoy’s effort to highlight the importance of “ordinary” people that sort of cement the concept that people’s experiences shape people, shape them to become who they inevitably become. Hence, by that logic, they should not be given special attention, treatment or titles such as that of “Great Man” as Napoleon was recognized as.

This novel is a literary genius of Tolstoy’s imagination and sheds light on his own ideas of what causation means for him. The natural metaphor of a bee’s activity used is reflective of his own ideas in the complex novel War and Peace. In the First Epilogue, pages 2692-2693, it is mentioned, “A bee settling on a flower has stung a child. And the child is afraid of bees and declares that bees exist to sting people. A poet admires the bee sucking from the chalice of a flower and says it exists to suck the fragrance of flowers. A beekeeper, seeing the bee collect pollen from flowers and carry it to the hive, says that it exists to gather honey. Another beekeeper who has studied the life of the hive more closely says that the bee gathers pollen dust to feed the young bees and rear a queen, and that it exists to War and Peace 2693 of 2882 perpetuate its race. A botanist notices that the bee flying with the pollen of a male flower to a pistil fertilizes the latter, and sees in this the purpose of the bee’s existence. Another, observing the migration of plants, notices that the bee helps in this work, and may say that in this lies the purpose of the bee. But the ultimate purpose of the bee is not exhausted by the first, the second, or any of the processes the human mind can discern. The higher the human intellect rises in the discovery of these purposes, the more obvious it becomes, that the ultimate purpose is beyond our comprehension.” Hence, this quote proves that Tolstoy does not necessarily believe in the process of causation or he believes that the human mind is not enough or sufficient to encapsulate the entire process that goes behind an action and even though many of Tolstoy’s characters exhibit change after experiencing formative experiences, he also believes that one cannot truly understand or point out what is actually the decisive watershed moment.

Tolstoy also comments on the human tendency to find an answer in Book 13, Chapter 1, page 2324, as he states in an omnipresent tone, “Man’s mind cannot grasp the causes of events in their completeness, but the desire to find those causes is implanted in man’s soul. And without considering the multiplicity and complexity of the conditions any one of which taken separately may seem to be the cause, he snatches at the first approximation to a cause that seems to him intelligible and says: ‘This is the cause!’” Thus, it must be established that Tolstoy did not reject absolutely the notion that causation must not be made, but rather he pointed out the human weakness in the process of coming to a conclusion in a hasty manner whereby many important details are termed as unimportant.

Book 7 is highly important in demonstrating the theme that events shape character developments. The character of Nikolai (Nicholas) Rostov although had impactful moments in his life before book 7, it is here that his changed self is shown to emerge. However, book 4, chapter 2, pages 690-691, also marks the beginning of his change in character from an immature child to a young mature adult, “He felt that he had grown up and matured very much. His despair at failing in a Scripture examination, his borrowing money from Gavril to pay a sleigh driver, his kissing Sonya on the sly- he now recalled all this as childishness he had left immeasurably behind. Now he was a lieutenant of hussars, in a jacket laced with silver, and wearing the War and Peace 691 of 2882 Cross of St. George, awarded to soldiers for bravery in action, and in the company of well-known, elderly, and respected racing men was training a trotter of his own for a race…” It is important to note that the first six books prepare Nikolai’s transition from his war values into peace values. This also shows the strong connection between the entirely opposite concepts, and perhaps explores that the existence of one causes the other. But coming back to the importance of Nikolai’s character development, the pattern is evident in book seven during the scene of hunt and Christmas games. In the hunting scene, Nikolai is shown to develop a fascination for the land, and in the Christmas scene, for the first time ever, he decides to marry. The following sentence from book 9, chapter 12, page 1510, mentions his change, “The autumn in Otradnoe with the hunting, and the winter with the Christmas holidays and Sonya’s love, had opened out to him a vista of tranquil rural joys and peace such as he had never known before, and which now allured him.” This decision to marry has been visible in the metaphors used in the novel. In book 7, it is clear that despite the arrival of Christmas, the atmosphere is gloomy and sad, but things change on the third day of Christmas. This all can be seen as a precursor to the romantic meeting of Sonya and Nikolai in the upcoming chapter. It is important to note that this meeting marks a stark change in his character and this can be viewed in the light of an event changing the course of a character’s life as book 7, chapter 13, page 1246, mentions, “Firmly resolved, after putting his affairs in order in the regiment, to retire from the army and return and marry Sonya, Nicholas, serious, sorrowful, and at variance with his parents, but, as it seemed to him, passionately in love, left at the beginning of January to rejoin his regiment.”

Nikolai arrives at his first-ever win when he captures the young French Officer but rather than feeling good about it or feeling an air of victory; he feels “moral nausea” (book 9, chapter 15, page 1533). The cause for this can be traced back to book seven as his values were changed then during the hunting experience. The author reminds us of that by comparing war with the hunt and Nicholas in his soldier state with a huntsman by mentioning in book 9, chapter 15, pages 1529-, “Rostov, with his keen sportsman’s eye, was one of the first to catch sight of these blue French dragoons pursuing our Uhlans…He acted as he did when hunting, without reflecting or considering…With the same feeling with which he had galloped across the path of a wolf, Rostov gave rein to his Donets horse…” Now from this point ahead, the usage of comparing the French to the hurt animal and the Russians to the hunter becomes a recurrent theme in the novel such as stated in book 11, chapter 2, page 1941, “For five weeks after that there was not a single battle. The French did not move. As bleeding, mortally wounded animal licks its wounds, they remained inert in Moscow for five weeks, and then suddenly, with no fresh reason, fled back…” Hence, the events in Nikolai’s life are moved and shaped by his experiences in the past, and his feelings too are overshadowed by the working of the past. Similar to Nikolai, many other characters of this novel too face the same destiny of being moved by the events that have occurred, and their actions are shaped by the happenings in their life.

However, it must be pointed out that Tolstoy does not take a single stance on the debate under consideration of whether events shape character’s life as he mentions the complexity that lies in giving a distinct answer. It appears that the themes and the characters of this novel, such as Nikolai, indicate that human and living being’s behaviour is not merely dictated by the actions of the past. Instead, it is important to highlight that there are many reasons that lead to behavioural changes. By subtly communicating that “Great” people like Napoleon are not the supreme reasons that led to supreme happenings, but rather the happenings were a combination of environmental factors as well, including cultural, social and many other factors. Hence, the denial of “Great Man” theory in this novel sheds light in the belief that characters are more than the events and experiences that they endure as they actions that come as being attributed to them may not be only there doing as lots go behind an action that is undocumented. To respond to this quandary, the author Tolstoy also wrote a note to historians to improve on their work, but though this might not be directly related to the thematic discussion at hand, it is, however, interesting that he recognized the importance of historians and that in itself proves that he does believe in some sort of causation relationship, though a blind trust is not to be found.

So, conclusively it can be said that the theme of past events shaping people’s thoughts and lives is mentioned in both ways in the novel, both it is agreed upon, but at the same time it is discredited as well. This is the genius of the profound author Leo Tolstoy who managed to communicate the nuanced version of this debate in an understandable manner by fully mentioning the attached complexities of the theme at hand. It must be recognized that he is in no way discouraging humans from refraining from establishing such causal relationships but is, in essence, offering his view and conveying the nuances he thinks exist in dealing with such a complex theme.







Karl K. Karlson has an idea of starting a website called Aryans R Us. Amongst many other plans on how we want to run this website the one major project is to use it a platform for promoting the ideas he has in his mind. White supremacy, attitudes and theories that assert inherent dominance over other ethnic classes of the lighter-skinned, or “white,” human races. John Philip Jenkins redefines the term “white supremacy” used in this eraby such organizations that espouse ultranationalist, imperialist, or authoritarian ideologies. He is a white supremacist & he has some friends that also share the ideas that he has. (Jenkins, 2020)

He wants to use this website as a platform to post articles that they have been write to promote their cause of making the white people understand their place in the race. Another point of making this website is to call out and arrange the meetups of the white Supremacists mindset. He wants them to meet each other and discuss all the issues they feel are essential. Lastly, he wants to make an eBay type websites on which he wishes to sell Nazi and Neo-Nazi memorabilia. He wants to execute all these three ideas on his website. In this paper,I would argue if a website with such motivations of creation should be allowed to go live.

Keeping in mind that white supremacy movements have a history of frequently focused on aggression to achieve their goals, the website can’t be allowed to go live. The reason why I say this is that it would promote hate speech. People that feel they are racially superior to others they do not say it to hurt people. It could become a movement that attracts like-minded people and destroy the overall fabric of society. Even with a constitution protecting the rights of freedom of speech, there are ethics that need implementation.

The use of digital mediums like “websites” is exercising of Freedom &each individual has the right to do so as per his or her ideas. In this manner, if the website is leading to any movement that would lead to harm humanity and create unrest, these are reason enough not to let it go live.

It should be illegal for a website promoting ideas and memorabilia tied to hate speech to exist. Hate speech leads to creating unrest in society. If its popularity grows, it will ruin the peace of the community. The consequences of running such a campaign are dangerous. As per the harms principle, the only purpose for which power can be rightfully exercised over any member of a civilized community, against his will, is to prevent harm to others. (1978, 9) (, 2017). This website is likely to create a divide in the society as it reflects the pseudo mindset that despite so much struggles to condemn such ideals that promote injustice or unrest in the community can lead to creating harm.

Karl, should not be allowed to make his website, as hate speech is unacceptable in the modern-day world. Most liberal societies have set limitations to freedom of speech crossing the boundaries of hate speech (Stanford, 2017). The US has proven to be a promoter of freedom of expression over the years & the Nazi march through Skokie was one of its examples. Yet if anyone in America should be living their lives feeling safe and happy. Instead of white nationalists and other racist actor’s immunity target refugees, minority groups and religious minorities.

Despite understanding the value of freedom of free speech, the negative consequences of hate speech can’t be denied at all. Racial supremacy as a full-fledged philosophy is much more complicated than pure bias or bigotry. Moreover, most white supremacists today believe that the white race is in danger of extinction because of a growing “flood” of non-whites dominating society. This sort of mindset is hazardous in the log-run and their belief that drastic intervention is required to “save” the white race from being effected by other sports.

People with extremist mindsets always abuse freedom of speech. By definition, hate speech means degrading a person based on race, color, gender, faith, age, disability, or some other related grounds is hateful. (ALA, 2020) Allowing this website to be formed is equal to allowing Karl to gain access to so many like-minded people and spread hatred in the name of white supremacy is not just condemnable but unacceptable. This could lead to rage war between the white and the people of color leading to a violent movement.

Peter Hopkins, in an article, describes the violence spread by the white supremacists against Muslims. They are racially motivated towards shaping the minds of the followers that leads to hate speech that further leads to hate crimes. White supremacists show this attitude publically now near places like religious centers and community buildings where they focus on the teachings of their leaders. The researcher explored the modern types of religious and culturally based abuse that leads to further violence. (Hopkins, 2016) Hence, if this website is allowed, their policies will be aimed at communities who are victims of religious and ethnicity-based abuse. They will be motivated to abuse the rights of people from other races and religion, and they will refuse to accept co-existence of people from all religions and races.

Apart from the argument that how much of it is true, it is extremely dangerous to provide support to such mindsets who have historically chosen violence as their means of expression. The falseness or immorality of Karl’s views is another significant reason not to let this site go live. The message that these sorts of ideals bring, initiate violence in the mind of the viewers and even those who didn’t have any such beliefs start having such thoughts. This aggression is not coming out of thin air. When these loyalists employ racial language and enforce discriminatory policies such as the Muslim Ban, family splitting, silencing colored voters are amongst some of their actions that fuel the minds of their followers. Aggressive actions beget acts of aggression. (, 2019)

After careful consideration of the motives of Karl that include posting articles they have written on white supremacy, using it for white Supremacists to meet and discuss issues of importance to them and selling the things Nazi and Neo-Nazi collectables, I don’t think this website should be allowed to go on air. It clearly can lead to promoting hate speech and develop all sorts of negative mindsets that are unacceptable in the modern world. If they employ racial language and enforce discriminatory policies.

This could lead to campaigns such as the Muslim Ban, silencing colored voters as well as other hate crimes. Adding to that Aggressive actions beget acts of aggression that are also not acceptable at any cost. There should not be any such campaigns running that negatively affects the overall fabric of society. They should not be allowto run this website at any level and giving them the freedom to express their hatred against all other non-white people would only spread hatred and violence in society. Hence my verdict after analyzing all the outcomes of this campaign is no; they should be banned rather than allowed.


ALA. (2020). Hate Speech and Hate Crime. Retrieved from (2019). Here Are 10 Things You Can Do To Stop White Supremacy. Retrieved from

Hopkins, P. (2016, 7 22). Gendering Islamophobia, racism and White supremacy: Gendered violence against those who look Muslim. Retrieved from

Jenkins, J. P. (2020). White supremacy. Retrieved from

stanford. (2017). 2.3 Mill’s Harm Principle and Hate Speech. Retrieved from (2017, 5). Freedom of Speech. Retrieved from






to analyze the strategic position of an organization
Assess the strategic choices available to the organization to achieve substantial growth and make relevant recommendations(for the purpose of the plan, you will assume that a strong investor has been found who can fund the recommended strategies)
To this end, you need to select the organization on which your entire project will be based. It can be the organization whereyou are working or have worked in the past, an organization with which you are familiar, or if you are not employed, an organization you are able to research.

Part 1: Select the organization which will form the basis for your project. Provide a brief introduction of the selected
(10)organization (what it does, size etc.)

Part 2: Analyse the broad macro-environment of the organization in terms of political, economic, social, technological,
ecological and legal factors (PESTEL). Construct alternative scenariosas necessary.
(15)Use Porter’s five forces analysisin order to define the attractiveness of the industries and markets in which the
organization operates. Use the above analysis in order to recognise threatsandopportunitiesin the market place.

Part 3: Using suitable frameworks (e.g. benchmarking, value chain, value system) diagnose the strategic capabilities of the
(15) selected organization and classify them using the VRIO criteria. Prepare a suitable SWOT / TOWS matrix summarizing the
findings of the analysis of strategic capabilities and the analysis of the external environment (from Part 2).

Part 4: Express the strategic purpose of your selected organization through suitable statements of mission,vision,valuesand
(10)objectives. Take into consideration any influences from the type of ownership, the adopted social responsibility stance and
the expectations of the various stakeholders (perform a stakeholder analysis).

Part 5: Perform a cultural web analysis of your selected organization. Can you discern any inimitable capabilities embedded in
(10) the culture and which could enrich your answer to Part 3 of the project?

Part 6: Identify the strategic business units (SBUs) which exist in your selected organization. Using Porter’s framework and the
(10) strategy clock, identify the various generic strategies (e.g. cost-leadership, differentiation, focus and hybrid strategies)
currently followed by each distinct SBU. Given the desire of the organization for substantial growth, would you suggest a
change in any of the generic strategies followed by any of the SBUs? Please explain.

Part 7: Given the desire of the organization for substantial growth, generate a list of possible choices which could be pursued
(15) by the organization (e.g. market penetration, diversification, vertical integration, internationalization, innovation and
entrepreneurship) and the various methods for achieving them (e.g. organic development, M&A, strategic alliances).

Part 8: Evaluate the options (choices) compiled in Part 7 in terms of the SAFe criteria (suitability, acceptability, feasibility).
(15) Regarding the likely return (part of acceptability) there is no need to perform an in-depth financial analysis (you probably
do not have such data available anyway). Regarding financial feasibility, simply assume that the found investor can
provide the necessary funding for each of the identified options. Provide your recommended option(s) for the organization.
(3000 –5000 words)



Netflix. was founded Reed Hasting. In 1999, it was established as a movies rental service. The business model of Netflix, then and now, is the same – that is subscription model. The business was at first only a DVD-dispatch service, subscribers would pay for particular membership that would include the number of DVDs that could be rented at one time. DVDs were shipped to the customers, and then the customers would send it back (Hosch, 2020)

With thriving business for years, the company incorporated new segments, along with the DVDs rental service, into its model, including streaming services. The mission was to increase the number of subscribers and reduce cost – the cost associated with shipping and postage of DVDs. The streaming segment was initiated in 2007, with almost seven thousand titles available instant-watching; by 2010, the titles had grown up to twenty thousand. Customers had the option to avail the DVD subscription, the streaming option, or both. All three was available to them. In 2010, Netflix started its streaming services in Canada, and in 2011 it had initiated in 43 other countries. In the United States, member can still order DVDs to their homes. By 2016, Netflix was providing streaming services to more than 190 nations. Now, Netflix has three operational segments: International streaming, Domestic Streaming, and domestic DVD. Domestic Streaming and Domestic DVD are only available in the U.S (Reuters, 2020).

Although Netflix was founded a decade earlier, it was known mainly in 2010 as the most customary and famous subscription online streaming platform. Customers were consistently increasing, and Netflix was taking on the majority of the market subscribers. In 2011, the company announced that it would no longer provide a package subscription that includes both the DVDs-rental services and the streaming subscription. However, the company faced criticism from its customers, and the stock price fell drastically.

In 2014, Netflix announced that it had raised $400 million in new capital through equity investing. On April 22, 2020. Netflix proposed $1 billion worth of Senior Notes for its production, development, capital acquisition. On April 21, 2020. The company announced its Quarterly Earnings Per Share of $1.57; the Quarterly revenue was $5.77 billion (Reuters, 2020).

Netflix has a very aggressive business strategy; in 2012, it was initiated in new countries; Netflix provides free one-month access to the streaming service. The reason for the international expansion was to generate more profits, but not all foreign markets have such strong capabilities for streaming. For example, in Latin America, the company faced many issues due to the unavailability of internet-capable devices for the people. The company’s marketing strategies include customer guarantees, a user-friendly website, and witty advertising.

External Analysis

PESTEL Analysis

Worldwide economic condition is the primary factor of Netflix operations, therefore, understanding these things are crucial. Additionally, Netflix has majority international business which makes the PESTEL analysis even more salient (Favaro, 2018)(Fund, 2017).


  • Political factor is increasing in relevance to tech companies worldwide. Netflix is a streaming service, but it is also a tech company so it is liable to the government scrutiny. Governments around the world has put a cap with regard to data collection and other practices. Particularly in EU, the government has taken strict measures against tech companies that overindulgean anticompetitive behavior by targeting users through data collection processes (Pratap, 2020)
  • Netflix has tailored its services accordingly, depending on a region’s regulation. Another factors that affect companies like Netflix is the new tax regime in the EU.
  • Copyright and Patent ordinance.
  • Piracy statute in services sector.


  • Exchange rate fluctuation is a fundamental issue especially in third world countries where a rise in exchange rate makes Netflix a luxury.
  • Market efficiency and capital requirement to sustain presence.
  • Economic growth affects the purchasing power. As income rises, people tend to spend more on entertainment and luxuries (Tapalaga, 2019)
  • The growth in global economy, in past years, has resulted in more spending, by people around the world, on services like Netflix (Tapalaga, 2019)
  • With the global pandemic of coronavirus and lockdowns, Netflix has witnessed a temporary rise in membership and viewers around the world (Pratap, 2020)
  • Unemployment has risen radically, and if the situation continue people are likely to cut on unnecessary expenditure and save for basic necessities only.


  • Continually changing of customer preferences. Netflix is entertaining customers worldwide, it must adhere to the tastes and preferences from different cultures and societies.
  • Social class. The success of Netflix has been linked with the influence it has on social media networks and promotions, and the fact that it leans more toward the young generation (Tapalaga, 2019)
  • Consumer attitude towards health and environment, that may affect the viewership.
  • Continual adaptation of new segments and genres.


  • Communication with consumer is the most important marketing strategy. Netflix uses social media, which is linked with technology (Tapalaga, 2019)
  • Netflix uses numerous algorithms and machine learning that make relevant recommendation to consumer, while considering their preference and choice based on their previous search and watch (Pratap, 2020).
  • Requirement for internet connection.
  • Increase Video on Demand (VOD) demand.


  • Laws of production affecting environment. In 2019, Netflix reduce its energy consumption by 50% and they are planning to lower it by 80% and shift completely to sustainable energy products like solar panels and wind turbines (Tapalaga, 2019)
  • Competitors using sustainable energy products.


  • Tariffs in service industry
  • Employment regulations
  • A stern censorship regime in large markets – like China.

Porter Five Forces Analysis

This analysis will help understand profit potential for Netflix and the implication that these forces have on Netflix.

        i.            New Entries Threat

  • Low barriers to entry – easy to emulate, broadly available technology
  • Easily accessible – no switching cost.
  • Lower pricing strategies
  • New value promotion and subscription to customers
  • Higher product differentiation

      ii.            Bargaining Power of Suppliers

  • Supplier has higher power as they produce content and decide which content provider they want to partner with.
  • Bidding negotiations
  • Strong relation with the suppliers is the key
  • Some most-watched shows will be removed, therefore increasing risk of power of suppliers (TFLIE, 2020)

    iii.            Bargaining Power of Buyers

  • Consumer power will rise as Netflix competition rise – such as the newlylaunched Disney+ and Amazon Prime. Switching costs are low
  • Higher customer expectation.
  • Minimum consequences for cancelling subscription
  • In contrast to traditional media platform, it is less expensive.

    iv.            Threats of Substitutes

  • Traditional medium of viewing trend is declining (TFLIE, 2020)
  • Reluctance to adopt new technologies.

      v.            Competitive Rivalry

  • Competitors like Amazon Prime, not only offers free one-month access, but also free and fast delivery, music, and books.
  • Long term fixed cost
  • New technology and video streaming platform are continuously increasing.
  • In 2018, Netflix had 8 of the top most-viewed shows in the world, in its streaming list.

Takeaway from Netflix’s P5 analysis

Switching to Netflix is carries a low cost. Netflix takes into consideration customers’ preference. Netflix must refine its brand. Build capacity and R&D. Association with potential and devoted suppliers whose business depend on Netflix. Expanding customers’ base. Innovate & produce new content rapidly. Build a sustainable point of differentiation. Collaborate with competition.


Internal Analysis


Organizational Resources and Capabilities V R I O N
Competitive disadvantage
Highly dependent on third-part-production content
Competitive Parity or Equality
Innovation Potential P
Tech-savvy Assets P
Temporary Competitive Advantage
Licence from entertainment content creators P P
Undevoloped Competitive Advantage
Music segment P P P
Video Games P P P
Textual Content
VRIO Core Competencies
High Equity P P P P P
Large base of customers and producers P P P P P
Original Content Production Capacity P P P P P


Competitive Disadvantage. Netflix’s negative aspect is its dependence on third party production content. Although it has its own production series as well, the company mostly put content from other production sources to attract more customers by providing a variety of content. This factor endangers Netflix to competitive forces of producers. Platforms, like Disney and Disney+, offer only its original content. In the resource context, Netflix is a value chain source supports competitive advantage. Based on the VRION analysis, this platform is difficult to imitate. Competitors may produce more content, but Netflix’s customers base, funding of streaming business and its global reach are its solid points. Netflix value chain is big enough to produce original content. The value chain does include not only the supply of content and products but also the supply of information for the ease of subscribers/customers: the algorithms and content management. The VRIO analysis makes the original content production a fundamental beneficiary to the company’s sustained competitive advantage.  The high equity build up the company’s supply chain and its value chain by expanding its customers’ base (Knott, 2015) (Talaja, 2012)(Riveria, 2019)

SWOT Analysis


  • First mover advantage
  • Small operating cost
  • Netflix has made agreements with manufacturers for integrated Netflix app in their devices.
  • Tons of consumer data/expertise
  • High quality ratings for in-house production content


  • Heavy dependence on suppliers.
  • Large fixed cost
  • Small resources, as compared to competitors like Amazon
  • Netflix originals require high cost
  • Subject to technological changes.


  • Potential growth for subscription
  • Expansion of movie download option
  • Technological advancement – such as 4K, Virtual Reality (VR)
  • Video streaming in china
  • Leverage niche markets


  • Few barriers
  • Content Piracy
  • Fiercely competitive market
  • Amazon aiming to acquire live sports broadcasting platform.
  • Increasing cost could lead to higher subscription rate which lead to consumer switching to competitors.

Cultural Web Analysis


  • 130 million users worldwide
  • Turnover of more than 10 billion dollars
  • 114 million people


  • Freedom and responsibility
  • World leader in online entertainment


  • Founded in 1997 by Reed Hasting
  • The company’s fundamental business is movie streaming- subscription-based

Rituals and Routines

  • Encourage independent decision making by members and employees
  • Freedom and responsibility
  • Corporate team-work
  • Work is not too demanding


  • Smartphones and Laptops
  • Free vending machine
  • Pop-corn machine
  • Transport and vehicles provided by the company
  • Own corporate language
  • Free breakfast and dinner

Power Structures

  • Regional functions
  • Worldwide company


  • Multinational presence
  • World leader in online entertainment
  • Growth potential company
  • Freedom company (Capucine, 2020)

Possible Strategies for Growth

  1. Partnership with Multinational Television Provider

Netflix could further expand its global reach by partnering with television providers and TV channels. Netflix will likely reach areas where internet access is not very simple by partnering with local and famous TV channels. Such as the HBO, Sahara, Showtime. It will broaden and strengthen Netflix; it will provide an additional communication mean to consumers. It would also benefit from it in term of association with big names like the HBO.

  1. Acquire HBO

HBO content and seasons are by far the most popular and watched content around the world. Netflix should acquire HBO powerhouse. Production costs are rising, and they are likely to expand at a higher rate in future. So, instead of making its Netflix original, HBO will make its production. They are widely accessible and most-watched than the Netflix originals. Such as the Game of Thrones, West world, Succession.

  1. Continue International Expansion

Netflix is the leader in multinational reach and online entertainment, because of its aggressive expansion plans. But, there are still countries where Netflix do not operate fully, such as China and the middle east. Netflix is likely to double its size with these markets, reach economies of scale, and early movers benefit into these integrated markets. Netflix must deliberately control its cost and capital management in its growth plans.

  1. Initiate a sport broadcasting segment

Netflix is likely to further expand its customer, and not just millennials and generation Z, but people of every age and demographic by incorporating sports broadcasting into its services. Sports fans are more likely to purchase subscription, even at a higher price, than people who only binge-watch movies and seasons.

  1. Leverage Latest Technology

4k and Virtual Reality are becoming is popular worldwide. Initiating these segments into services are likely to increase brand image and quality content. Netflix should incorporate these (Diagle, 2019)

  1. Strategic Recommendations
  • It is recommended that Netflix initiate a strategy like YouTube – where third party content providers can sell their content directly so subscribers, but prices must be controlled by Netflix.
  • Providing a platform for third party content provider will make Netflix a more integrated and comprehensive platform for online entertainment
  1. Continue Focus on Original Contents Production, allocating capital towards content licensing, with time.

It is thought of that Netflix should emphasize its original content production. The company takes great measures in analyzing and contemplating customer’s preferences from all around the world and produces content that are acceptable, highly-rate, and appealing to customers.

Strategic Analysis of Netflix Vision and Mission Statement

Netflix vision and mission statements, both revolves around entertainment industry. The company’s vision statement directs the corporate decision making and the mission statement aim towards higher achievement. Netflix operational management involve handling multinational business growth. The company has the biggest market shares in international market.

Netflix Mission Statement

Netflix mission statement is to accustom the world with entertainments. It depends on the idea Netflix providing on-demand entertainment content. Like the vision statement, the mission statement put emphasis on the industry, as the company flourishes in fulfilling purchasers’ desires about the media they get to. The two main points of Netflix corporate mission are

  1. World Wide reachability and measures
  2. Entertainment

The primary purpose of Netflix mission statement is to show the company’s nature and role in the entertainment industry. Be that as it may, this business class extensively incorporates motion pictures, arrangement, performance art, stage plays, and others. Subsequently, this purpose of the statement might be excessively expansive in determining Netflix’s activities, even though it demonstrates conceivable vital plans of differentiating the business. A factor to consider is that the organization’s center procedure is to develop the streaming membership business.

This strategy framework suggests Netflix’s regular philosophy for high ground and genuine advancement methods and intentionally derives the corporate mission statement. For example, to reasonably entertain the world, the streaming business must build up its cooperation and membership to a grander overall scale. It is the spot where the second reason for Netflix’s corporate mission comes in, as the organization expects to contact gathers all around and reach the global audience. This overall size of assignments also includes that Netflix’s legitimate structure is fit to offering on the online services of help to diverse groups and markets. The on-demand media spouting association’s corporate vision clarification similarly addresses such an essential goal of the overall working

scale (Riveria, 2029)

Netflix Vision Statement

The vision is to be the leader in online entertainment streaming service. The vision is aligned with the corporate statement of purpose, and this vision has helped Netflix with its fundamental goal of being the leader in the competition, against huge players like Amazon and Disney.Netflix states that it points “To continue leading by offering an astounding entertainment experience.” The vision statement is composed of three main things:

  1. Leadership
  2. Entertainment
  3. Internet

Netflix’s strategic underpins the objective of leading with authority, demonstrating that the organization has accomplished its past corporate vision explanation of worldwide industry leadership. The business expects to keep up its authority and operational viability, while developing its enrollment to fulfill the corporate vision’s targets. The business qualities listed in the SWOT analysis of the above add to this industry initiative. The ‘internet’ some portion of the corporate vision explanation speaks to online media as an essential factor in business operations. Additionally, Netflix’s tendency as an entertainment business is incorporated as a point in the corporate vision, like how the corporate statement of purpose portrays the company as an entertainment organization. Prominent is Netflix’s Cultural Web, which spurs and motivates employees to help the business ceaselessly advance to fulfil the vision explanation by guaranteeing consumer loyalty and industry

initiative (Riveria, 2029)

Generic Strategies of Netflix

The company’s generic strategies line up with the company’s growth strategies – the Porter Five Forced model – and the in-depth growth strategies. Generic strategies play a significant role in Netflix’s on-demand content segment. Netflix focuses only on series, movies, and its own production content. Besides, Netflix’s development procedures and growth strategies for competitive advantage require the management activities that degree beyond online streaming entertainment.

Netflix Business Model

Netflix operations has these models:(Moore, 2019):

  1. Platform Model: Digital media marketplace. Through this the company’s content reach the customers. It is in the stage plan of action that the generic strategy is generally huge, considering the competitive advantage dependent on cost efficiencies conceivable through data advances for worldwide computerized content circulation
  2. Pipeline: Entertainment content production. Netflix utilizes the conventional pipeline approach to deal with and create moviesand series. This approach action empowers the organization to control content creation and bring sustainable growth, while the business development potential by means of business platform model cushions Netflix’s development and nonexclusive system for competitive advantage.
  • No Middle-Man Model. The company removes the middleman and distribute its original content via its own streaming service. For example, the new movie The Irishman was shown in a very limited number of cinemas, after Netflix’s approval.
  1. Unlimited Subscription model. The business model is designed in such a way to accommodate unlimited subscription.

Netflix Generic Competitive Strategy

Cost Leadership

Netflix has low charges. Netflix’s customers’ base is the largest as compared to its competitors. The approach relies on the company’s business model and value chain, which satisfy customers partly through personalized customizations, such as in mobile app settings. Through intensive growth strategies, the cost leadership generic strategy for competitive advantage gains the most significant market share, relating to Netflix Inc.’s corporate mission and vision statements which point to the strategic plan and goal of attaining and maintaining leadership in the international online entertainment.  industry(Moore, 2019)


Despite the fact that Netflix essentially applies cost administration as its generic strategy for competitive advantage, the business additionally utilizes separation in its tasks. As a nonexclusive technique, separation includes building up the online business and its items in manners that make them unique in relation to the opposition (Moore, 2019)

Netflix Growth Strategy

Market Penetration

It is the fundamental intensive strategy. This development system’s target of developing incomes and market share relies upon how Netflix’s generic strategy keeps up upper hands to pick up and hold more customers in current markets (Moore, 2019)

Market and Product Development

This strategy backs the company’s organizational development.Market improvement works by selling the organization’s present online streaming services and unique content to new markets. The Product development strategy goal is to create and sell new content in the organization’s current markets(Moore, 2019)

Suitability, Acceptability, and Feasibility (SAF)

Suitability Criteria


Criteria Hybrid Differentiation
Partnership Not in the long term. It requires capital and current prices are unlikely to generate profits in the long run Yes. Higher profit could lead to more investments.
Expansion Not in the long term. Due to international expansion and limitations in some countries Yes. Collaboration with other entertainment providers
Sports Broadcast Long run feasibility is unlikelyAs the sports industry is dominated by players like ESPN Yes. Collaboration with the big players in market.


Acceptability Criteria

Criteria Hybrid Differentiation
Risk of Loss High. Expansion to other regions and countries will double the short term cost. High capital is required because content productions are costly and too much of it will bring uncertainty and risk.
Investment Returns Low. Prices are not high enough to generate enough profit High. Collaboration would result in safer profits and high barriers to copying content.
Customers’ Reaction When customers are not loyal, they are more likely to switch to other online streaming platforms if Netflix prices are high and competitors prices are low or they provide better content. Customers will be loyal and will not switch to any other platform, because the content is differentiated and better.
Suppliers’ Reaction Subscription video on demand considered second tier as they do not generate enough profits. When suppliers have no power over content, price are likely to fall as a result. Thus reducing the cost.
Investors’ sentiment Short on shares. Netflix’s stock price has shown variation because of the sudden rise during the global coronavirus pandemic (Epstein, 2020) High profits will bring in more customers, as profits generated by the company rises.


For investors, decline is profit is unbearable. Therefore, they will not adhere to the hybrid strategy as it will result in profit decline. Prices might get down too, with hybrid adaptation.


Criteria Hybrid Differentiation
Do the current technology assets support the company’s strategy ? Yes. Company’s data levels have reached high levels.
Are the current financial resources enough to implement strategies effectively? Yes. However, not in the long term. Companies cash is expected to fall when the global lockdown is over and everything is back to normal(Poletti, 2020) Cash is abundant with Netflix, but need to quit the international expansion to stop the loss.
Is available data/information enough to implement strategies? Yes. Netflix is continuously investing to implement algorithms and machine learning into its management systems. Yes. Netflix was aware why its original content is going to be a hot because of the years of data collected. This was (still is) a great advantage in the ‘Netflix Original’ creation.


Netflix capabilities can sustain both hybrid and differentiation strategy.




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In your discussion-topic paper, identify the page number of the passage you are writing about and then explain what caught your interest and why, your impressions of what’s being conveyed, and even if you are only trying to understand something confusing about a passage and would like to raise questions about it to follow up on later in class. Write informally, there being no rigid structure to follow, and write in a conversational style appropriate for academic communication, i.e., no cursing, slang, texting shortcuts, emoji, etc. So, despite the informality, do write with a sense of logical purpose and concentration, communicating clearly, precisely, and effectively in standard English prose. I’ll see how you fare with this Monday’s batch, and, as needed, will provide further instructions to the group or to individuals. 

  1. 2. Part 2, chapter VII, page 253-278

Chapter seven starts a new turmoil on the protagonist Raskolnikov as he is reminded of his own accident when he sees the incident that happens to Marmeladoy. Here it is very interesting to note that Raskolnikov’s compassion overshadows his other selfish worldly desires as he helps the man and even pays him money to help Katerina. This part is highly important as it reveals that even though Raskolnikov is a murderer but despite that, he is compassionate and is actually very tender from the inside as he despite being in an economically hard position, still helps the poor family out and from the money that his mother gave him for his own expense. This part humanizes Raskolnikov’s character and strengthens it by adding dimensions and showing that he is not just a heartless being but is actually far more than that.

This also reveals a universal message that the author Dostoyevsky wanted to convey to his writers that humans are not simple beings who are merely good or bad but are profoundly complex in their behaviors, values, thoughts and ultimately actions as well. For instance, the protagonist can make sense of the murder he committed but cannot face seeing the suffering of another human being.

The metaphorical importance of the part when Raskolnikov is drenched with blood while aiding Marmeladov is very significant. It is important because it draws interesting parallels between the blood that granted him a moral dilemma and the blood that gave him life in a way. The former being the blood on his hands from the murder of Alyona and the latter being when he decides to commit to an extremely good deed that brings back life to him to an extent.

The dialogue, “Life is real! haven’t I lived just now? My life has not yet died with that old woman!” reveals these feelings of his and convey the recurring theme of the dual nature of a human being who is a combination of both good and bad.

The ending of part two is important as the surprise visit from Raskolnikov’s mother and sister overwhelm him so much that he faints.

  1. Part IV, page 397-506

Part four reveals the protagonist’s views on religion and familial ties. This part brings with itself uncertainty for Raskolnikov as he cannot differentiate if he is dreaming or not because his sense of morality has clouded his reality of the world. This part plays a crucial role in developing the character of the protagonist as despite the fact that he leaves his family, mother and sister behind, he asks his trusted Razumikhin to take care of them in his absence. This shows that the protagonist Is actually sincere from the inside but still has some weak spots and it is this dual nature of the character that makes him realistic and this portrayal is possible thorough the genius of Dostoyevsky’s writing.

It is important to note that this part also marks the redemption of Raskolnikov as he leaves his family behind and goes to visit Sonya. Although this part shows us that Raskolnikov mocks Sonya’s faith but it must be kept in mind that what marks his character arch towards redemption is his absolute choice to go in the first place. He makes fun of Sonya’s faith because he does not really understand it. His condescending bahavior is also eveident when he talks to Porfiry but this exchange also reveals the protagonist’s inner change towards finding the path of change, towards salvation and redemption. Despite feeling superior in the starting conversations, his tone changes when he realizes that Porfiry knows much more than him and thus his air of superiority sheds.

It is when Nikolai discloses the fact that he brought about the murder, Raskolnikov understand what really is happening that Porfiry might be intellectually superior than him, but they have no solid evidence against him in the role he played in carrying out the murder of the old lady Ivanovna. This changes Raskolnikov’s behavior again but it must be acknowledged that this is the first time his character broke and hence although it might not be one hundred percent evident that Raskolnikov has redeemed himself, he definitely begun his journey towards a better path or at least had a glimpse of the right path.


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