The Old Can Change Right? – Story about myself

I am at that age where buying that shiny sports car seems like a logical idea. Every day I have been questioning everything I come across. I’m at an impasse on should I go right, or should I go left, and how will this affect others in my life. Should I even care what they think? I believe taking this course has come at a valuable time. I needed guidance. I mean I don’t think I knew the true meaning of what the good life or happiness was. I see now that I must truly change myself and how I view the world so that I can really achieve this. But, how do I stop myself from my own self-destructive character?

We go through life thinking that having it all will make us happy and subconsciously we are going through a daily routine. We get up, get dressed, go to work, come home, sleep, and then repeat. I mean this is how we achieve our good life right, by working ourselves to death for a piece of paper that brings our happiness. Our society has convinced us that nothing else matters but making sure we have the big house, fancy car, the perfect kids, the perfect job, and just overall the perfect life. But, are we truly happy. “It is argued that the theory happiness-is-relative mixes up ‘overall happiness’ with contentment’. Contentment is indeed largely a matter of comparing life-as-it-is to standards of how-life-should-be” (Veenhoven). So according to this am I happy? Honestly, no I am not. I had somehow convinced myself that the only thing that could make me happy is money. In my eyes, money brings about happiness and eventually the good life. Afterall, I am American, and consumerism is our way of life. I am killing myself trying to achieve this ideal life and I never stopped to think if it was right. It is not. I have learned that this path will never bring me to that happy state or the good life. I was being selfish and only thinking of myself. I could never truly reach happiness because although I had reached most goals, they weren’t really my goals. They were the goals I was institutionalized to think that I wanted. “The good life isn’t a standard of living. It’s a state of mind and a state of being” (Mueller). I realized I needed to change my entire being and train of thought.

So far thanks to this course I have managed to take a step back and re-evaluate where my priorities stood. I started to say “no” more often and I have been met with some backlash on this. I never realized how much I was allowing myself to be taken advantage of. I was getting the guilt trip because I was no longer funding my adult children’s “free ride”. I did some deep thought and realized that it was my own guilt feelings that fueled this free ride. I had been apart from my kids for two years, thanks to the Army, and it negatively changed my actions. Now, I am trying to look at the world from an outsider’s perspective. To see what I was missing. In my car I would just numbly drive by the homeless and now I look at them. I realized that most are worn down by life and I began to wonder whether our own society’s rush to “the good life” caused their circumstances. Were we so greedy in wanting more money that we made it difficult for them to find housing. That the jobs they tried to find were denied them because they did not fit in to the ideal look of a worker. I began to make kits filled with necessities and handed them out to the few that would take it. I don’t understand why most wouldn’t take them. They wanted money instead. I did not let that sway my new outlook. I began to look at the personal relationships I had. I realized that I had isolated myself on this little “Kacie island” and I had not really let anyone in. As Aristotle had stated, “And friendship is not only necessary but also beautiful, for we praise those who love their friends...” (Sachs, 144). I needed to change so I began to reach out for these personal interactions and I felt weird. I guess I need to continue to practice this as I am completely out of touch.

After all that is said I done I can only hope not to revert to my old ways. I tend to self-sabotage, but I know that with enough practice I can overcome. At least I hope I will. I had been doing good in saying “no” to people but slowly I found myself saying “yes” here and there. I got suckered into cosigning a loan for a car. Yes, I know I never learn. Those homeless people from before, I would think that they were there because they let themselves. I would subconsciously look at their clothing to see if they truly needed my help. I had to remind myself that that was not the reason I was there. I wanted to do good. When they would not take my little kits and wanted money instead, I would quickly think that they just wanted to go buy drugs. Again, I had to re-center my thinking and telling myself that there could be other reasons why they didn’t want your stupid kits. I realized I was being negative as I had always been. In my sign language class, they posted fliers for these community meetings for the deaf and I attempted to attend one. Well I did attend one and from the moment I got there I wanted to leave. I had to internally talk myself out of fleeing and remind myself that I wanted these interactions. I wanted to hiss at people. Who does that? My subconscious self does that’s who. I am a work in progress, but I am trying.

A lifetime of habits and thinking gets in the way of trying to be better. I am glad that at least as of today I can get a clearer picture of what the good life/happiness is. It’s not what I thought. I know that I need to change, and I am trying. And at the end of the day, I must relearn new ways of thinking and reacting. I need to stop being so feral and come back to this newly found philosophical society. 

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Javascript and the Netflix User Interface

This article talks talks about how since the very introduction of JavaScript, it has become the de facto language of the internet. Nearly all web applications and pages support JavaScript in some way. Especially after Ajax, which was a set of web development techniques used to create asynchronous web applications, the Web exploded with additional facets of functionality. With more and more applications being pushed to interact more with the client side browser, web development has had to extend past JavaScript’s original uses. The main problem with this is that these ever growing web applications have complex needs when it comes to loading JavaScript files and relative dependencies.

Netflix is a company that does extensive split testing, which is testing where they compare two versions of a web page to see which is more user friendly. Their UI and user experience is a crucial part to their experience as a streaming company. In fact, a Netflix user may be involved in 30-50 split tests at the same time with single-page application loading. For example, one Netflix user may be using a slightly different header and search bar than another Netflix user. Scaling the tests this way, though complex and difficult, gives Netflix a large amount of continuous feedback to keep improving their UI. These tests However JavaScript wasn’t built to handle managing conditional dependencies.

Netflix’s home page, according to the article, delivers 150kb of payload in a single JS file. The file itself is actually various files strung together. Netflix has personalization algorithms for the different aspects of UI based on a subscriber’s location, viewing tastes, country of signup, and even sharing preferences. So, Netflix tries to package different aspects of different UI components together depending on the user, and sends the according components together in a payload. Each functional section of the site is known as a module. They group relevant features together into a single unit. They are also important because they help manage dependency management. The article explains that in many programming languages, dependencies can all be imported synchronously because the runtime environment of the application is on the same machine as the required dependencies. The problem with JS dependencies is that the runtime environment known as the browser is separated from the source, or server, which creates a lag. In fact, this lag between browser and server is one of the most contributing factors to web application performance.

Many attempts have been made throughout the years to try to tame this problem, but the closest so far has been to use libraries that have developers create modules, then generate payloads containing only the modules that the page requires. Still, Netflix can’t use this solution because of how many different split tests they want to implement at one time, as this solution is not very scalable. Netflix needed to figure out a way to resolve all the different conditional dependencies of each component when they are loading different components for different users across the board. They implemented a technique called the Just-In-Time dependency resolution. Using statistical analysis to build a dependency tree, a data structure that organizes structures within code so that there are relationships between structures. By linking certain Netflix users to specific JS files, then the said specific files can be linked to the page payload and then load on the client side.

I thought this article was very interesting. In particular, I didn’t realize that there was a lag between JavaScript applications and the server because JavaScript could only run on the browser. It seems that there are many problems to combat. Still, with Node.js as a technology that can run on the server, I feel that it is only a matter of time before Web Applications can run entirely on the client side with a server environment of their own.

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How did Netflix Start?

Uses and Gratifications Theory: The Importance of Netflix in Our Lives “Just one more episode, then I’ll study” is what most people have been saying as they are neck deep in the latest season of the popular Netflix Original Series “House of Cards”. Netflix is one of the most influential mediums of our generation. Netflix and other streaming services like Hulu and Amazon Video have the broadcast media companies scrambling to catch up. It has changed the way the current generation of people consume media. The theory of Uses and Gratifications can helps us explain why people are using media, cutting cable and using streaming services like Netflix and YouTube as their form of entertainment.

Founded in 1997 by Reed Hastings and Marc Randolph, Netflix started as a DVD rental and sales company, you could say it was an internet version of Blockbuster except none of the non-existent late fees for a rental that was returned on time… bad Blockbuster memories. In 1999, Netflix introduced their monthly subscription concept. At the beginning of the 2nd millennium, Netflix accumulated over 300,000 subscribers for their monthly DVD rental services. Unfortunately, they were losing money because cost of business was overpowering the incoming revenue. Hastings and Randolph decided they needed to try to sell their company and get out while they could. An offer was proposed to Blockbuster for them to take over Netflix, and turn the platform into Blockbusters online store, if you will. Blockbuster turned down the $50 million offer. Which left Hastings and Randolph scrambling. Fortunately, Netflix saw some good days after the deal with Blockbuster fell through. Like any business, they had their up and downs. In 2007, they had mailed their billionth DVD, and shortly after that they decided to move away from that business model.

They introduced video on-demand via the internet in late 2007. Throughout the years, they continued to build their library, which brought in more business to the point where we are today. Netflix is the gold standard for streaming services and original content for that matter. Coming in hot with just a hair over 137 million monthly subscribers which is approximately 49 million more subscribers than their closest competitor, Amazon. Netflix is one of the most influential companies our generation. Netflix started a revolution of streamed internet content. They acquired rights to many of the iconic shows of the past and the present to fill their library and give their subscribers something to watch. Iconic shows like: Friends, Breaking Bad, The Office, and Mad Men just to name a few. They’ve also flooded their library with what they call “Netflix Original Series”, and that includes titles such as: Stranger Things, House of Cards, Ozark, and Masters of None. Some of their original content has recently stirred up controversy, shows like: 13 Reasons Why and Making a Murderer.

These two shows, for example, bring to light things like mental health and the injustice of our justice system in America. 13 Reasons Why is about a young girl, who was bullied into suicide by her peers at school, and she made tape recordings about 13 people who contributed to her demise. Making a Murderer is a docu-series about a two men, Steven Avery and Brandon Dassey, but mostly Steven Avery. Avery was charged and convicted of murder back in 2007, but the evidence presented by the prosecution in the case was questionable, yet the jury convicted anyway. This show implies and attempts to prove that Avery was framed by a sheriff’s department in Wisconsin. These shows are controversial, yet relevant to our society because it brings light to things people don’t want to talk about or acknowledge in society. All of this leads to our question, how does Netflix and other streaming services help prove the Uses and Gratifications Theory? Let’s start off by explaining what the Uses and Gratifications Theory is. In the early 1940s, researcher began their research on what is now called “Uses and Gratifications Theory” trying to understand why people chose specific types of media. While that research was going on, women who listened to the soap operas on the radio were asked what they get out of listening to this program. According to Katz (1973), the women continued to listen to the soaps because “… emotional, wishful thinking, and learning”. They later classified those three reasons as gratifications.

From there on out, the researchers continued to pursue more understanding of how and why people chose their media. In its basic form, the Uses and Gratifications Theory attempts to explain the uses and functions of media for individuals and societies. There are three objectives to the Uses and Gratifications theory: 1. Explain why people use mass communications to satisfy their needs. 2. Understand the motives for an individual media use. 3. Find the positive and negative consequences of individual media use. (Rubin, 1983) We can use these three objectives to try to understand why people gravitate to media services like Netflix and specific shows on that platform. Let’s use a few hypotheticals to try to explain the Uses and Gratifications Theory and the objectives it seeks to understand: Haley is a hopeless romantic. She’s been let down by many guys up to this is point in her life. Haley loves to watch shows like Grey’s Anatomy and Love. A show like Grey’s Anatomy shows her the love she wants. She wants someone to love her like McDreamy loved Meredith. She also watches Love because she sees herself in the main character, Mickey.

A self-destructive girl who pushes people away who care about her. Finally, she finds someone who will put up with her antics. Haley watches these shows because to satisfy a need in her life that she wants fulfilled, but can’t get it; therefore, she puts herself in the shoes of the characters in the show, and lives their experiences. Some people have this need to feel to be included or “in the know”. Jack and his office friends are standing by the water cooler are talking about the latest season of Making a Murderer, but Jack is the only person that in the group that does not know what they are talking about because he hasn’t seen the show. Jack could ask them to explain the topic of the docu-series, but he don’t want to interfere with the conversation. Jack feels left our because he was excluded from the conversation because he has not watched the show. Jack uses the fear of being excluded to motivate him to watch Making a Murderer ensuring that he will be involved with the next talk about Making a Murderer. Both Haley and Jack practice the Uses and Gratifications Theory to fulfill needs in their lives. Whether it is needing to be loved by someone or being excluded in a conversation.

The Uses and Gratifications Theory is a way to explain their need to consume media in order to benefit their lives. The term “binge-watching” was coined during the rise in popularity of Netflix. According to Pittman (2015), binge-watching is watching multiple episodes a show in rapid succession during one sitting. There is nothing wrong with the idea of binge-watching, but like everything else it has its pro and cons. Pros: you could be binge-drinking rather than binge-watching. Cons: productivity takes a hit. That’s the big one. College kids now days are starting to experience issues with productivity and self-control when it comes to watching Netflix and other services. According to Bondad-Brown (2012), college students are one of the largest consumers of streaming services due to the lack of cable. She later mentioned that in a broader sense, millennials tend to consume streaming services over other generations. Once again, due to the lack of cable.

Most millennials don’t have cable because it’s too expensive and they can receive their entertainment through streaming mediums, like Netflix, much cheaper than they can through companies like Spectrum and DirecTV. This act is called “cord cutting”. Cord cutting is the opting out of cable companies and choosing to consume media digitally through devices like cell phones, gaming consoles, and computers. For a few years, cable companies assumed that people would eventually come back to cable, because live sports isn’t available, broadcast television isn’t on Netflix. Still people are refusing to fork over the money for cable/satellite. Cord cutting has forced cable companies to adjust the way produce their content (Shade, 2015). Many major media outlets are creating their own subscription-based system. For example, ESPN has created ESPN+, which is for those people who do not have a cable package and for those who have cable but want more content from the Worldwide Leader in Sports. ESPN+ gives people an opportunity search their library to find out-of-market and previously aired sporting events, along with their original content like the 30/30’s and Detail, which is produced by future Hall of Famer, Kobe Bryant.

You can get all of this for the low price of $5.99 a month. ESPN understands where the market is going, and they are doing what they can to remain relevant among millennials. Netflix has changed some aspects of our lives. It changed how we chose to consume media, why we chose the content we chose. The Uses and Gratifications Theory helps us answer those questions of how and why. Netflix changed how content is produced and provided to us. It is important for us to understand how Netflix along with the Uses and Gratifications Theory affects our lives. It is important to ask ourselves, why we consume such content? How does it affect us? It’s not something that warrants change, but it is something that every person should aware of.

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Brief Description of the Netflix Company

NETFLIX

Background of the company prior to Cloud Migration

Netflix was co-founded in 1997 by Reed Hastings who previously started a software company and by Mark Randolph who was the software executive in the company. In 1998, they launched their website where people can buy their film(DVD’S) on what they are choosing. But, when the Amazon started selling DVD’s Netflix stopped selling DVD’s and started to rent them and later in the year 1999, they offered the subscription service where people can rent unlimited DVD’s. In 2000, they stopped the single rental model completely and started focusing on the subscription services by making the films available exclusively by partnering with Warner Brothers and Columbia pictures and also established distribution centers across America to increase the speed of delivery and provide the customers overnight service option.

Business Drivers/Goals behind cloud migration (E.g. TCO, Time to market)

Migrating to the Cloud helps to increase overall operational agility of a company. This helps a lot while responding to market needs more quickly when compared to the traditional on-premises model. A high-level study found that companies will be able to reduce their total cost of ownership (TCO) by an average of around 60 percent over a five-year life cycle by moving to AWS cloud services. Data centers hosting, Infrastructure costs and IT Staff costs reduced significantly. Unplanned downtime, unexpected network changes were cut down. These were the business drivers that inspired Netflix to move to cloud. Also, taking advantage of AWS capabilities and scalability, focus on reinvention will help in innovation and transform business by speeding time to market.

Technology Drivers/Goals (E.g. Improved Availability by X, scalability, performance, Security)

Availability:

There was a time in 2008, when Netflix had its data center and running its own relational databases. Netflix data center was down and has undergone a major database corruption because of which the company were unable to ship the DVD’s for 3 days. For any company to improve its business they need to overcome bad customer experience, that is when they started thinking of having a reliable database platform that reduces critical issues especially downtime. Migrating to cloud provides high availability (99.99% for example).

Scalability:

Before moving to cloud, Netflix team spent a lot time and effort in increasing the processors, disk space etc, to meet timely public demands. After they migrated to cloud, it became easy for them to upscale and downscale the resources for IT requirements. Simply Netflix need not worry about the architectural limits. Netflix was fast growing, they had to handle ever increasing volumes of data in their data centers and were not sure with the increase in volumes of data is it the best way to go with data centers. That is when they have planned to migrate to cloud which will allow them to handle lot of virtual servers and petabytes of data storage within less time.

Performance:

Netflix has started the Online streaming in the year 2007, with the large number of customers using the online streaming resource the traffic has increased and they were not able to provide customers with better performance during the peak streaming hours. So, migrating to cloud they can use EC2 instances to improve the performance during peak hours of streaming. AWS Cloud is pay as you use model we can leverage the EC2 instances based on the traffic. Customer facing any issues with streaming won’t benefit their business. Performance is one of the major driving factor for their business growth.

Security:

For any industry security is one of the major factor. Having all the data in the data center in one place makes it unsecure as all operations route via data center, moving to the amazon cloud helps them to not worry about the patching and the low-level infrastructure as everything is taken care by the cloud provider which makes it more secure.

Migration strategy used for cloud migration

Netflix followed the strategy of “Migrate Features One at a Time (roman riding)”. So, what is roman riding? Let me explain it with an example in general terms:

  • Roman Riding is the name of a Circus stunt, where rider starts off with one horse and after that parellely he rides on both horse and later while finishing the stunt he ends up on one horse. How can we relate to Netflix migration?
  • In this strategy, they had the own infrastructure and AWS infrastructure running side by side slowly they migrated the applications to AWS infrastructure (Front end applications) first with backend still in the data center. Slowly they replicated the backend data using home grown framework known as IR (Item Replication) into AWS S3 and SimpleDB. The main functionality of IR is to keep the data in sync with the Data Center and the S3 and SimpleDB.
  • So basically, they have refactored the monolithic application into hundreds of micro services and they have migrated them one at a time starting with Front end applications. Slowly once the billing and customer stuff is migrated into the cloud they have retired the traditional data centers.

Organizational Change

Cloud architecture is completely handled by the AWS (COE), Netflix doesn’t have any IT staff working on cloud. Capacity of cloud is more than 10 times bigger than the Data center, Netflix data center staff were reduced and became flat. Netflix even moved few of their IT staff to working on the coding parts of the applications. As the Data center necessity is overcome there is less need of the System Admins, Database Admins, Storage and Network admins (Traditional IT roles are becoming extinct). Instead of long transitions they have organized cloud camps to provide transition to developers which is simple and short and ready to work model. New transition includes some of the features below:

  1.  Orientation for one day.
  2.  Use Netflix PaaS platform to design simple “Hello World”.
  3. Security Integration and monitoring.
  4. Read or writes to Cassandra.

Netflix follows flat organization structure for better job satisfaction and better communication among the lower levels of management.

Cultural Change

Employee is given a full end-end responsibility of the application(DevOps), a simple diagram which explains everything.

DevOps is nothing but development and operations team combined into one team. Where the associates will completely own the application, they are building. (For Example, in the below image you are working for Netflix and you developed some application in devops model you will the one who is responsible for testing, releasing that to customers and support that application if any issues, in case of any issues re-plan the design to fix them and do all the process again to make it available to customers).

Netflix before migrating into cloud they have followed the Waterfall approach to build their applications, test and deploy them to make it available to customers. Having migrated to cloud they have adopted to Agile methodologies and followed continuous integration and continuous deployment patterns to make the services available to customers at faster rate. Earlier there was a large team responsible for the developing the Monolithic application but now micro services architecture is adopted as whole monolithic application is divided into sub applications and large team is also divided into small team and each team is completely responsible for the applications they develop.

Migration Journey

Below is the simple diagram that explains the migration journey of Netflix. I felt that pictorial representation will be helpful in better understanding before going into the description part of the migration journey.

Netflix has started its online streaming services in 2007. In 2008, due to major hardware failure company was not able to ship the DVD’s for 3 days which was a major setback.

Online streaming business was growing faster, most of the people prefer using streaming services compared to DVD rentals and the traffic coming into data centers via online streaming is quite high and they were in situation to establish more data centers to handle it. With the high usage of online streaming, management were down to two choices:

  1. Recruit world class datacenter operations build teams and guess how much capacity they would need, and built it before it was needed – lot of upfront $$ investment.
  2. Use the Elastic compute services of AWS and spend $$ on video content and developers.

Keeping the above problems in mind, Netflix management came up with 5 goals (Availability, Scalability, Performance, Agility and Security). After long research, they came up with the solution to migrate to AWS Public cloud.

The journey of cloud migration in Netflix started with migrating some application which weren’t really customer facing. They didn’t have enough space in the datacenters for encoding backlogs. They moved to EC2 to show that capacity existed on demand. The next thing they moved is Quality of Service(QoS) logging into S3 for unlimited storage space and log analysis to Elastic Map Reduce(EMR) service. They decided not to build anymore datacenters and moved front workloads to AWS before 2010. They migrated web pages and API clients to AWS and had backend in the datacenters. Slowly, they moved customer data from datacenters to AWS and were able to backup their data at lower costs. In the last step, they migrated corporate IT and billing to cloud and closed their data centers.

Where are they now in their journey?

In 2008, they started their journey. It took almost 7years to completely migrated to cloud, in early January 2016 Netflix officially announced they have completely migrated to cloud and shut down the last remaining data center used by streaming service. We can say that Netflix is a fully migrated cloud industry.

Migration journey into cloud was not easy they have faced lot of difficulties and it took almost 7 years to completely migrate everything. Few lessons learnt by Netflix during their migration:

Few wrong choices initially, NOSQL before Cassandra, API platform prior to Zuul.

All data center tools don’t cope up too well with cloud. Initially data center IT staff faced lot of challenges in writing the code and learning the new stuff.

If migration journey had started a year or two later would have been more stable and mature and discussion to get it done rite would have been much easier. When their migration started they were almost the starting company to adopt to this migration and didn’t knew much about it and it outcomes.

They even came to know not everything is perfect and system can fail even in cloud. In 2012 during Christmas eve company suffered a streaming failure when it was hosted on one AWS region and it went down. So, they have built Simon Army and Chaos Monkey tools to test the up-front disaster in advance and make sure their application is not getting effected by any type of disasters.

Netflix has rolled its services to 190 countries and has almost 130 million subscribers around the globe. This growth would be almost impossible if they had been still using data centers as fast racking of the servers would have been a problem.

Netflix had a problem in past on their products availability, migrating to cloud they were able to achieve 99.999% uptime for their resources.

Netflix had 10 times the customers they had 6 years ago and 100 times the online traffic using their resources which is a trade mark sign for any industry.

Cost is one of the major outcome of the cloud migration, before migration they had to upfront invest on the data centers without knowing the outcome. But, now in cloud it provides the flexibility to pay only for the resources we can use. Infrastructure is all done in cloud so cost reduction in maintaining data centers and racking servers and IT staff to maintain them.

In my view, the approach followed by Netflix is the best one and even if I was to embark on that journey I would go with the same approach. Please find my justification to that below:

Rehosting (Lift and Shift): Netflix could have followed this simple and very easy approach but by doing lift and shit they will just transfer the existing issues or problems into cloud and it would not help their business outcome. Shifting the existing application to cloud and later making changes into it as they desire could be easy but doing that they would have bought the bad architecture and bad practices along with it. So, I feel this approach is not suitable for the company who has its customers all over the world.

Platforming (Lift and Reshape): Just by migrating the servers and Database to the AWS wouldn’t solve the problems of availability, performance and reduce latency in case of Netflix. As Netflix application is Monolithic, there are chances that there can be issues in large application and cause problems to the customers if any piece of code doesn’t work properly. In Monolithic application, everything is inter-related even if something doesn’t work it effects the whole process. So, I feel this strategy might not be suitable for Netflix.

Repurchasing: They have purchased the Virtual machines of AWS to run their operations. As AWS is pay as you use model it helped them save cost.

Refactoring/Re-architecting: This is the strategy followed by Netflix and even I would like to use the same. As Netflix had large Monolithic application it is very difficult for them to manage it so using this strategy they have re-designed the architecture but building hundreds of micro services and each team is given complete ownership of the application they develop which is easy to maintain. They followed the Devops approach with each team take complete end to end ownership of their application. Even in case of any issues it is very easy to track them and solve them with less SLA compared to huge monolithic application.

Retire: Having migrated to cloud, in my view there is no point in maintain the traditional data centers anymore and they are too costly as well. I would have used this strategy to get rid of the data centers after the cloud migration is completed successfully. As there is no point in having data centers going forward.

Retain: Having migrated to cloud successfully and business has business had tremendous growth after cloud migration I feel that everything is in place in new system to support their business and they need not worry about retaining any of the old stuff they had earlier.          

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Analysis of Netflix and its Competitors

Netflix, Inc. is in the entertainment industry established in 1997 by Reed Hasting. It is headquartered in Los Gatos, California. Netflix is a public site for streaming media video on demand. It is accessible worldwide aside from countries like; Mainland China, Syria, North Korea, and Crimea. It works in three sections: Domestic Streaming, International Streaming, and Domestic DVD. The organization offers TV shows and motion pictures, including unique arrangement, documentaries, and highlight films. It offers individuals with the capacity to get gushing substance through a large group of Internet-associated screens, including TVs, advanced video players, TV top boxes, and cell phones. The organization likewise gives DVDs-via mail enrollment administrations. As of January 22, 2018, it had roughly 117 million individuals in 190 nations.

Netflix operates and functions in a competitive environment, where Amazon is its biggest competitor. There is high cover among Netflix and others on interest administrations, particularly Amazon Prime in the United States., U.K. also, Germany. Almost 50% of Netflix supporters additionally utilize Amazon Prime Video in the U.K. and, the United States., and 30% of aggregate respondents to the exploration gathering's study utilize both Amazon Prime Video and Netflix.

The membership charges for these administrations is around ten dollars per month, or, in other words to many link memberships make it less demanding for buyers to buy in to various gushing administrations with the end goal to build the assortment of substance. As needs be, huge numbers of Netflix's clients see different players as reciprocal administration as opposed to an option in contrast to Netflix. The achievement of Amazon Prime Video was at first saw as a risk to Netflix. Notwithstanding, the supporter development for the two administrations, and in addition the endorser cover, shows that numerous clients are utilizing the two administrations instead of setting them up against each other. Given the genuinely moderate membership expenses and assortment of substance accessible on different gushing administrations, it gives the idea that the cover of supporters will proceed in the close term.

This has made Netflix a more attractive industry because nowadays most people tend to not visit movie theatres regularly due to busy schedule, driving, or because they do not feel comfortable watching movies in the theatre and rather watch it from the comfort of their home. Millions of people subscribe to Netflix because it is very convenient for them and they make a lot of movies and television series available to watch for families, kids, and even movies that have been shown in the movie theatres, hence; this would save lot of family’s trips to the movies or Redbox and save money too (individual payments to watch a movie).

In contrast to Hulu, or, in other words video industry and Redbox who offers less motion pictures and less gadgets, Netflix is an International film rental industry. Administratively, Netflix has decreased its nature of video spilling on gadgets to certain remote clients of AT&T and Verizon. The reason for this was to shield their clients from surpassing their month to month subscription data. Netflix's differentiation strategy or methodology was to raise its membership charges. This change had disillusioned many of their clients not excluding myself. In any case, it did not detract from the way that Netflix is or has always been but remains profitable and effective. As Netflix developed into their prevalence, there has been no other motion picture rental industry to make a benefit even though some may have approached. The social effect Netflix has is the way that they prevailed over their rivals who fundamental activities were retail recordings. When Netflix started their motion picture rental industry, it caused a great deal of video dissemination focuses to leave their businesses. Netflix has commanded the DVD rental industry. Netflix has given their clients an awesome incentive for their money's worth. Anyway monetarily, because of the decrease of DVD's and Blu-ray Disks, Netflix has not possessed the capacity to keep up its working edge levels. Hastings chose this considering this real mishap, Netflix needed to expand its month to month membership and concentrate more on video streaming.

Netflix ended up prevailing over Blockbusters just by utilizing the DVD mailing framework alone. Netflix achievement in the end made Blockbuster petition for financial protection. Innovation has enabled Netflix to extend its motion picture seeing. As expressed previously, clients are currently permitted to watch the movies they like on phones, cell phones, PCs, workstations and video consoles. Clients can take Netflix wherever they go. Netflix has just demonstrated that they are remaining in front of their rivals. Having faithful clients and the streaming of motion pictures is Netflix's most prominent quality.

The Porter's Five Forces Model will be utilized to analyze and examine the long run benefit of this entertainment industry and how the industry can achieve a competitive advantage. These few paragraphs will have detailed explanations of how these forces drive the movie industry to be more successful. Firstly, the rivalry or competition among recognized and reputable companies is powerful and severe. The movie rental industry is extremely focused as there are countless firms in this industry. This is a true and valid point because there are likewise many methods for consumers to obtain a movie which also increases rivalry. There are depleted substituting costs which also lead to intense competition. Netflix strategic rivals have huge levels of investment and have accomplished economies of scale.

Low levels of product differentiation additionally boost and enhance competition. Secondly, the threat of new potential entrants is abstemiously truncated and low. This is to a great extent because of mind-boggling expense or capital necessities coming about because of stocking the items required. The marking and picture of the biggest firms in the business likewise causes some trouble of entering the market. Important competitors in the business incorporate; Red Box, Hulu, and Amazon moment video. Another contestant would need to spend a ton cash on promoting and publicizing to wind up focused.

Thirdly, the threat of substitute products is relatively high in this business and prices need be kept low to be competitive and viable. Substitute items to the motion picture rental industry are wide in number and they incorporate physically going to a movie theatre, sitting in front of the TV, browsing the internet or notwithstanding playing a computer game. Innovation has hugely helped to build the risk of substitute items. More customers are utilizing the web to investigate costs, discover deals, and read audits. Fourthly, the bargaining power of buyers is quite high. Exceptionally value delicate clients have a considerable measure of intensity. There are next to zero exchanging expenses and clients have a great degree huge measure of choices on which items to pick. Although purchasers are divided, and no solitary purchaser can impact an item or value, their decreasing image devotion give them a sensible measure of intensity. Price rates in this industry must be even or consistent crosswise over comparable items.

Fifthly, the bargaining power of suppliers is ascetically and judiciously high. Regularly providers can force a cost increment on their items or lessen the nature of their items provided which may diminish an organization's general productivity and effectiveness. This turns out to be valid in the film rental industry as their providers are the studios who make the motion pictures. In 2013, Netflix was compelled to expel Nickelodeon and MTV TV programs from their determination because of a terminated agreement with Viacom.

On the off chance that Netflix plans to keep up, sustain, and develop its market position in the coming streaming wars, they must win three specific struggles and competitions; content inventor background, the global market, and families. Content inventor background is very important because with the passage of the tech geniuses and their unimaginably huge cases, content makers are awakening to an exceptional merchant's market. Anybody with an awesome show and no reasonable stage inclination can make an offering rivalry.

This is terrible for Netflix. Regardless of how much stock they offer and how much obligation they induce and create, Apple and Amazon can outdo them just to drain them out. Their solitary conceivable guard is to succeed on culture. They must make Netflix the best place for makers or inventors particularly for newcomers with trial ideas. While they have exceeded expectations here up to this point, their substance slate is an issue. Regardless of how specialty they go, there is a viable point of confinement on advancement, perceivability, and consideration. This gives the favorable position to stages desirous or ambitious for foundation content.

The global market appears as their most grounded wager. Their non-English substance is in an alternate class. If the current scene holds, they can overwhelm this territory with minimal powerful rivalry. Not exclusively would they be able to draw in the best remote makers with their worldwide group of onlookers, they can eat up as of now hit shows for barely anything. In that capacity, it is anticipated that this will be the establishment of their going-ahead methodology. The United State will dependably be their most extravagant market, however new achievements abroad are at a cheaper rate.

Families are the most important customers because parents or guardians with children are by a wide margin the slightest price sensitive section. Netflix as of now costs about the equivalent as a solitary DVD at Walmart. Regardless of whether membership fees are raised or increased, no parent guardian is returning to singular buys. Being realistic; Netflix is the least expensive sitter around. If they do not create an announcement hit soon enough, they will lose the families that care less about Netflix's grown-up material. 

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Netflix and other Streaming Services are Artificially Scarce Goods

Market failure occurs in the market for artificially scarce goods since they are economically inefficient. These goods are excludable and nonrival in consumption. In other words, suppliers of the good can prevent people who don’t pay for the good from consuming it and the same unit of the good can be consumed by more than one person at the same time. For example, me watching Jaws on Netflix doesn’t prevent you from watching it on Netflix as well.

According to the article, “Netflix had $14.9 billion in revenue and $1.3 billion in profit for the last 12 months” (Lee). However, Netflix has committed to spending $18.6 billion on content being produced for next year. Netflix pays a huge upfront cost to provide content on their site which is why they need people to pay them to use their service. Unless Netflix can earn revenue for producing the good, they will be unable to produce at all. This leaves society even worse off. The fact that there are people paying for Netflix’s services means that Netflix has some benefit to society. In fact, Netflix has “130 million paying customers as of September” and “7.6 million more paid subscribers expected to be added in the last three months of 2018” along with “23 Emmy Awards this year, the same as HBO” (Lee).

Clearly, people enjoy the content provided by Netflix. Artificially scarce goods can lead to market failure because they suffer from inefficiently low consumption. Because films on Netflix are excludable, people who are not willing to pay do not get to consume the good. Furthermore, because the films on Netflix are nonrival in consumption, the marginal cost of an individual’s consumptions is zero. Therefore, the price that the supplier charges for the artificially scarce good exceeds marginal cost, leading to inefficiency in the market, otherwise known as market failure. Artificially scarce goods lead to deadweight loss on the consumer’s side. Graphically, an artificially scarce good will have a demand curve that slopes downward and the equilibrium will be when the demand curve hits the x-axis since marginal cost is equal to 0.

The deadweight loss is equal to the quantity where the demand curve hits the x-axis minus the quantity supplied at the fee multiplied by the price of the service and then divided by 2. In summary, Netflix is an example of market failure because it provides artificially scarce goods in the form of films, where Netflix can prevent people who don’t pay from enjoying their content, even though making the content available to the next person doesn’t cost anything. While all the people who are willing to watch Netflix for free could be watching their content, only the people willing to pay Netflix’s fee get to watch the films. This creates deadweight loss on the consumer side. Deadweight loss indicates economic inefficiency, which by definition is market failure.

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Dominance of Netflix Among Online Streaming Services

Over the past few years, Netflix has been keeping its tendency to dominate the online streaming service market. The number of Netflix subscribers has been dramatically increased with its growing number of licensed and original content. As more and more people joining the league, we all have to ask the question “is it worth subscribing to Netflix?”. For most people who love to watch TV shows and movies, and have time to do so, the answer is definitely a “Yes.” Netflix is the perfect choice for them because of its giant catalog of contents, its useful features that keep it comfortable and convenient to use and its affordable prices.

With how advanced and sophisticated the film production has become nowadays, more and more people like to spend their free times staying at home watching a TV show or a movie. Netflix provides a service for people to do so. The vast library of TV shows and movies Netflix has is the main reason why people subscribe to it. There are thousands of shows inside Netflix waiting for people to watch. Netflix’s TV shows widely range from comedian, drama, sci-fi to horror, documentary, and anime. Unlike HBO who mainly focus on dramas and comedian, Netflix offers a large variety of options for almost anyone. Also, Netflix has shifted away from streaming licensed contents to making its original shows and movies in the past few years. It has produced some critically acclaimed shows such as House of Cards, Orange Is the New Black and Narcos. The success of its original contents has captivated a considerable amount of fan to pay to watch them. Netflix has decided to spend most of their revenues to develop more and more original contents. With the same amount of money you pay each month, you will get an expanding library of TV shows and movies that you can not finish for a short period of time.

User experience is an essential part of whether a company is successful or not. Netflix has paid attention to the slightest detail of its features to make the website convenient and accessible. For a website with such a large amount of shows, it would be a mess if they do not have a concise organization of the page. When you open Netflix, you will notice that the homepage is neatly arranged into the shows tending now, the shows for you to keep watching, and the shows recommended for you by genres. It helps you find the shows you left off before and decide which show you are going to watch next. Another critical feature of Netflix is the subtitles. Now with Netflix become popular among the world, more and more people from non-English speaking countries have access to it. Most of Netflix’s show has subtitles in English, Spanish, Franch, and Chinese.

The subtitles can help them understand the show, and for those who know English, they can also use the subtitles in some circumstances such as learning other languages or in a situation that is unsuitable for turning on the sound. While online streaming needs internet and people wanted to watch shows when they do not have access to WiFi, Netflix has launched another beneficial feature: downloading. This feature enables people to download most of the shows on Netflix to their computers, phones, and tablets and now people can watch the shows they like when they are going on a trip or anywhere they can not do so before. The launch of this feature will significantly increase people’s interested in Netflix because this is what people need in this era: unlimited access to the shows at where they want and when they want.

With all these appealing features, the price is still a major factor of whether a person should subscribe to Netflix or not. The price of a Netflix subscription is considered affordable for two reasons. First, if you select the Standard plan, which you can stream in HD and on two devices at the same time, it will cost you $11 per month. If you compare it to other entertainment expenses, it is relatively inexpensive. For example, People can get 10 to 20 hours of entertainment per month on Netflix for $11, while a single ticket to a two-hour movie in a movie theater will cost you more than that, and yet you can choose high-resolution shows from the entire library all you want if you choose to watch on Netflix.

The second reason is you can share and split the cost by taking advantage of Netflix’s feature: support of multiple profiles and multiple devices. This is a feature that most other online streaming media do not have. People can create five different profiles in one account each with different lists of TV shows and movies they like and Netflix will analysis their list and find the shows that most match to them. It is nice to have a profile for yourself because this way you will not get the shows you do not like on your page just because someone else watched it. If you select a Standard or Premium account, you can watch on two or four devices at the same time. So if you have a friend, a roommate to split or wants to share it with your families, it would be a good way to cut the cost of Netflix. 

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Netflix Vs Hulu Showdown

In today's society, technology offers so many great entertainments thats available for anyone to use. Also its for a great purpose of watching movies and television shows. It’s easy to cut your cable service and go months without it. However, it’s hard to decide which streaming service is right for you, especially when it comes to Netflix and Hulu. Along with the online streaming options thats available today, Hulu and Netflix are two of the most popular apps, but the focus of their content library options is very different. These two online streaming are similar in their own way. Although I am a fan of Hulu, Netflix comes out on top.

Along with the great two online streaming apps. Hulu and Netflix became the two most useful apps for entertainment, especially when you live in the twenty first century where technology is the most common idol all over the world. Not only their the most used apps now a days, but they also offer an amazing low rate price which is the other thing that people definitely need. Hulu and Netflix has different plans, where you could pick from. The plans includes the price and subscriptions for particular movies and tv shows. Also all of the plans are under fifteen dollars which is another great thing about it. In addition, I personally think that Hulu and Netflix comes in handy when you have families and friends over. Instead of wasting money going out to the movies or renting a DVD from the store, you can stay home and watch multiple movies or tv shows at home. 

The thing that's great about Hulu and Netflix is that they don’t have due dates to when paying the monthly bill, your more likely going to pay when you have the money. Not like the cable service, where you have to pay on a certain day or else your cable service will be cut until you’ve made the payment. Moreover, Netflix offers a great selection of movies and tv shows from old to new. And it’s separated into different categories which I think it's so helpful and easier to find. However, Hulu offers the same thing but the movies and tv shows are mostly scattered all over the place. The good thing about Hulu is it includes the cable or the network and also the movie that best fits in that category. Therefore, Hulu and Netflix is highly recommended if your interested in watching movies or television shows.

Netflix offers the widest selection of old to new movies and as well as television shows. Furthermore, netflix includes genres such as romance,horror,comedies, and sometimes netflix original films. In netflix, you could download your favorite movies or tv shows on the app. For this matter, it is only used for when your traveling to a place that does not provide good service. It's useful for road trips and you can watch it anywhere without connecting to wifi or your cell phone data, as long as you have already downloaded it onto the app and to your phone. It comes into different plans that has a monthly subscription and it's good throughout the year. Also the first month is free and you can cancel anytime if you feel the need to. Netflix online streaming companies is ad free which is great features for entertainment. And the pricing range is amazing that provides its consumer of three payment plan with no due date, and you could pay it whenever; however, if you don't pay it monthly than it wont let you access to any movies and tv shows. The first plan includes unlimited movies and tv shows for only $7.99 per month.

This plan is good for college students. Next, netflix offers a great standard $8.99 plan that includes HD (high definition) viewing for different movies and tv shows. This plan is good for newly wed couples and for those who wants to share the payment for one account. Besides the basic and standard plan, netflix offers a premium plan that's best if you have a family. It includes everything from other plans and has up to six sharing screens per person in the family. Also its only $10.99 per month and has great ideal options. It's a good plan if you have kids or teenagers, because it’ll notify you if your kids and teenagers are trying to watch a movie that their not suppose to watch. The good thing about netflix is there are no ad or commercial interruptions when watching movies and tv shows. Netflix came up with a better interruption system which is trailers. The trailers are mini previews before watching a movie or tv show that your interested in watching. Personally, I’m grateful for the trailers because it gives you a glimpse of what movie or show that you're going to watch. In other words, netflix offers great selection of movies, television shows, plans, payments, and etc.

Furthermore, Hulu can stream the best TV including exclusive series, Hulu originals, and so much more. Also its commercial free and Hulu partnered with several locals and cables. For example, 21st century FOX, NBC Universal, CBS Corp, and etc. This opportunity made Hulu popular for people to cut their television provider and join Hulu because different cables are on Hulu for a cheap monthly price. Along with Hulu’s great prices, Hulu subscription only offers two different plans. The first plan includes limited commercials with movies and tv shows; however, its without the locals, cables and its only $7.99 per month. This plan is good for teens and young adults. The second plan that Hulu offers is $11.99 per month, no commercials and includes all the locals and cables. Families and Seniors use this plan because it holds an interest of different entertainment with the reality and the new to the old.

These plans are good throughout the year and has no due date. Your more likely to pay whenever but, in order to continuing watching movies and tv shows, you would have to pay it so that you could further catching up on with whatever you are watching. Hulu has good service for when traveling and as well as the strong service for cable signals that can be used anywhere and anytime. Although, you are paying the monthly fee for entertainment on Hulu. The biggest downfall is the advertisements and commercials that will not allow you to skip through it. On the bright side, they offer a plan that includes everything, where there will be no advertisement or commercials interrupting you from watching your movies or television shows. Personally, I hate commercials and advertisements. I know it only takes up two to three minutes, but it always interrupts you and won’t allow you to further watching until the ad or commercial is done. Also know one wants an ad or commercial interrupting when it gets to the good part of the movie or show.

Consequently, Netflix and Hulu are two similar apps that offers movies and television shows, but their content library are very different. Although, Hulu has a better viewing of movies and tv shows because it partnered up with locals and cables. Netflix still update the library content with a thousand of new to old movies and tv shows. I personally think that if your into watching updated shows and movies, then Netflix is highly recommended for that matter. If you like to watch streaming live television, a year old movies or tv shows, then Hulu is where you should be able to find those. As much as I love Hulu, I’m a Netflix person. Netflix is there with amazing great options of different movie and tv shows. Also I just enjoy watching Netflix because it definitely includes all my favorite shows and movies. I still am watching Netflix up until this day and it’s a hundred out of hundred recommend. I will be forever grateful for the person who created Netflix and it’s existence.

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The Story of the Origin of the Netflix Company

Everybody has heard of Netflix and chill, but that idea was popular before Netflix was created. People have been renting movies and watching them with their significant others and families since the creation of VHS video rentals and sales. Netflix started as a rental company then expanded to a major streaming company. Most people would rather be able to watch TV shows and movies where they want and when they want, not at a specified time that television company tells them they can catch a show or movie. This is just the latest form of entertainment, people have been going to plays, listening to the radio, then basic television and now you can stream almost anytime and anywhere.

As a consultant, a microeconomic analysis of Netflix will be conducted to ensure that the growth and development of the company is sustained and lasting. Included in this analysis is the history of the firm, the supply and demand conditions, price elasticity of demand, costs of production, overall market and the recommended path the firm takes in order to sustain success and further grow as a company in a competitive market.

Netflix was founded in 1997 when two men, Reed Hastings and Marc Randolph co-founded the company and provided movie rentals to people from an online database. Between 1997 and 2001, the company created the online website where people could rent DVDs, video games, or stream movies online through a system where users can choose the shows, movies or video games the interest them and created a subscription. Included in that subscription were unlimited movie rentals in which a user requests a movie, the company mails the movie, the customer watches the movie and then mails the movie back. Once the company receives the movie, the customer receives the next movie requested (About Netflix, n.d.).

Between 2002 and 2005 the company reached 4.2 million customers in the United States. Between 2007 and 2011, Netflix created a streaming system in which customers could watch TV shows and movies on their computer, Xbox, through internet connected devices, Blu-ray devices, etc. The ability to connect to Netflix became virtually endless which was incredibly successful. With being able to stream anytime, anywhere, and easily is great customer satisfaction. Finally, by 2016, Netflix expanded so much, it became a worldwide. Netflix is the world’s leading internet television network with 104 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films (About Netflix, n.d.).

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Advantages and Disadvantages of Netflix Policies

Netflix is well known for his structure of organizational and flat circle. Because of the unlimited days off and the light politics of account of spending, the workers are more responsible and freer than the average employee on the market. Netflix avoids making decisions from top to bottom and to ask for the approval of the direction for everything. These methods show a traditional bureaucratic organizational structure. Instead of it, the company values the high performances of his employees and its excellent work. The company considers that, so that the employees can well performance artist, they should have the freedom to make their own decisions and to dictate their schedules. 

Even if we could qualify Netflix’s working environment as “chill” thanks to their policies that are not very strict or the leeway they give, it turns out the consequences of their practices don’t have the expected outcome on their employees. According to Patty McCord, the former person in charge of the talents of Netflix, the working culture is intense, and employees are under a lot of pressure. The employees must behave at an exceptionally raised level. The administrators must make periodically a test of guard. For this test, the person in charge imagines that a member of his team intends to leave Netflix for another company. Then, he must determine if he would fight fiercely to keep this person. If he answers no, this person is quickly sent back and is offered a severance pay. Netflix does not support the maintenance of “B” employees. So, while Netflix has a flexible organizational structure, there is a compromise between freedom and stability that employees face. Would potential employees really choose Netflix to work for? What would be the advantages and disadvantages of each option?

Netflix strives to recruit only 'responsible adults': they will openly discuss the problems they face with their colleagues and superiors and will never abuse the benefits they are given. Confidence in higher value leads to different control practices. Thus, it is assumed that employees spend the company's money as if it were theirs and control expense reports less. If the employee takes a vacation, it is because he needs it and he will be more efficient after resting. Premiums usually distributed in large companies are discontinued because they do not improve the performance of 'responsible adults' who, paid at the right market price, are in any case already interested in the success of the company they serve. They have themselves decided on the share of wages and stock options in their remuneration, setting the balance that best suits their needs and their degree of risk aversion.

Concerning the advantages and drawbacks, we basically have two different ways of analysis Netflix’s policies:

  • many companies have followed this type of structure for their employees. From recent researches, it has been proven that these methods would conduct to better productivity amongst the employees. Netflix has benefitted from permitting employees to choose if they want to work from home or when to work. It would be a great opportunity to work in this type of work environment when the environment meets your criteria. If an employee’s working system allows him to be flexible and to feel free, it should lead to better productivity.
  •  The empowerment of the employee can be very controversial as well as positive. The argument of giving the employee more leeway and autonomy creates a productive working environment in which employees are stimulated is to consider. Of course, one would obviously think that by not limiting the vacation days and giving lax spending policies, we could face an moral hazard problem. We think we are moving towards a more relaxed future of work. Many companies are already offering fewer working days, under condition that the tasks are all completed, and many are very successful. However, the intense pressure exerted by performance does not seem to be an environment suitable for all personalities or working methods. For example, we do not think we would do well, knowing that any mistakes made will be made against us and will put us on the chopping block. Knowing employee satisfaction at Netflix would be an interesting topic to explore.

Netflix seems to be an organization where mistakes are not tolerated, even if they are part of working. It turns out that a lot of people would prefer a more stable and safer employer, more tolerant of mistakes, preferring more structure, so the extremely flexible benefits would make me constantly doubt if I deserved a day off. Most employees are in tune with the company culture and remain there for a long time: they are people focused on excellence and comfortable in an agile environment that is constantly evolving. However, some people attach more importance to the security of their position and a stable situation than to the search for performance: they do not feel comfortable at Netflix.    

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Netflix is One of the Best Streaming Providers both in the United States

Netflix has over 93.8 million customers all around the world. Netflix’s gross profit margin for the second quarter in 2018 significantly improved compared to the same time a year ago. Even though their sales and net income increased significantly, the company is unable to grow at a faster pace in comparison to the competition (Seitz, 2018). To remain competitive, Netflix needs to evaluate its current standing as well as the competition. It is important for Netflix to understand where the business is now, which direction the business should go, and who the competitors are. One method the company can use to decide which direction to take the business is by conducting a strengths, weakness, opportunities, and threat (SWOT) analysis.

A SWOT analysis is a planning tool used to plan future projects, highlighting potential problems inside the business, and developing or refocusing advertising and marketing strategies (Schneider, 2015). By showing the business’ ability to carry out its goals; their internal assets such as what Netflix does well; and what advantages the company has over the competition will help the CEO and board members decide which course of action to take. Just as important is being able to find the company’s internal threats and weaknesses. Areas to consider are resources shortages, training requirements or technological requirements. Identifying weaknesses gives Netflix an idea of where the focus their efforts to meet the company’s goals. To determine the opportunities, Netflix Incorporated needs to keep in mind the current and future technological, political, demographic, and environmental changes. The last step is to address external threats that will affect the business.

Netflix is an American entertainment company that has become a leading internet television provider. The company has a member base of about 93.8 million members over 190 countries. In the United States alone, Netflix has over 50 million members, and the numbers keep growing. Founded by Reed Hastings and Marc Randolph in 1997, Netflix quickly rose to the top taking local movie rental establishments out of business. Netflix’s headquarters is located in Los Gatos, California. In the beginning, Netflix profits came from streaming media, and offering DVDs for sale and rent. Since, the company is producing films, and expanding into television (Sharma, 2018).

Netflix’s internal factors SWOT details the strengths, weaknesses, opportunities, and threats of the streaming mogul. The analysis reviews Netflix trajectory from online movie streaming to DVD rentals. It also analyses the company’s current standing and potential in producing their own shows, videos, and now movies. The competition is threatening Netflix continued success. Netflix’s management needs to explore the opportunities and figure out where they need to make changes.

Centralized costs and limited variable costs per geography make up Netflix’s business model. Global distribution provides a data feedback loop that will allow Netflix to invest in content, marketing, and product development more efficiently than key competitors (Seitz, 2016). In order to remain competitive, Netflix needs to research and understand the industry in its entirety, and respond to the new competitor. Netflix’s main competitors are well-financed corporations with proven success in other markets. These competitors include Apple, Amazon, Google, cable networks, and other streaming services.

Netflix does have a huge advantage over their competitors, the fact that it leads the way for the video streaming market. Even though their current online DVD rental services and instant streaming service continues to boom, the company must decide on how they will continue to differentiate the business from the competition.

SWOT ANALYSIS

STRENGTHS WEAKNESSES

  •  Leading video streaming network presence in over 190 countries
  •  Increased in membership – leads to business growth
  •  Strong focus on innovation in technology and development
  •  Produces local content, distributes globally over own network
  •  Customers Service - Old content suppliers are becoming Netflix’s competitors
  •  User’s dependency on release of new famous shows
  •  Decrease in free cash flow
  •  New content licensing costs far exceed streaming costs
  •  Original investment content leads to downsizing content library

OPPORTUNITIES THREATS

  •  Shifting most of the company’s content to the world wide web or internet offers huge opportunity for Netflix
  •  New projects – acquisitions/mergers
  •  Global distribution
  •  Growing international market
  •  Business expenses are increasing both in the United States and abroad
  •  DVD demand is decreasing, shipping costs increasing
  •  Increase in technology, development, and administrative expenses
  •  Netflix’s dependency on international revenue due to fluctuating rates
  •  Netflix’s price hikes can lead customers to switch to the competitors services

Strengths. World’s leading video streaming network – in 2017, Netflix had over 93 million subscribers. Netflix provides services to customers in 190 countries (Sharma, 2018). Netflix major strength is their ability to stream online, allowing consumers to access movies directly through smart televisions. Content varies in each country according to the taste and preference of the country. Netflix offers 7,500 videos, which is two times more than its primary rival, Amazon Prime. Rich technologies protect and support Netflix network.

Increase in membership helps the business grow. Netflix is continuing to grow their streaming service both domestically and internationally. In 2017, the company grew 33 percent year-on-year growth in the global subscriber department. Their operating income doubled to $209 million. By the end of fiscal year 2017 third quarter, paid membership increased to 104.2 million from 83.28 million the previous year (Sharma, 2018). The company is working to improve the international market experience in order to increase profitability and enable further investment in potential growth markets.

Netflix consistent focus on innovation and technology helps them provide customers the best user experience. Netflix is innovating to bring the best results to its subscribers by focusing on new languages, payment options and more features to satisfy the needs of different people across the globe. To accomplish this the company is entering into new partnerships with mobile and television operators, as well as device makers. It is also working on improving the mobile experience by investing in network servers and internet service providers (Bajpai, 2016).

Netflix has managed to build a sizeable, sustainable competitive advantage that is contributing to their success. One of the competitive advantage is their breakthrough into movie and show production. Netflix produces some blockbuster television series like Narco and House of Cards as well as original movies. To sustain this competitive advantage, Netflix invested in a couple acquisition/merger projects. In their endeavor to produce original content, Netflix bought Millarworld. A comic book publisher, the purchase of Millarwood gives Netflix access to greater content (Sharma, 2018). In 2016, Netflix partnered with Univision to broadcast the first season of their original show Marcos to test whether airing old seasons on traditional TV will lure people to sign up for Netflix service ahead of next season.

Weaknesses. The competitor’s business models are similar to Netflix. Competitors like Hulu, Amazon, and other similar competitors spend close to what Netflix spends to access content. Having said this, these competitors are not the major concern. The main competitors are brands like Google and Apple; these competitors have the cash and customer base to put Netflix out of business (Jalan, 2016).

In 2015 Netflix’s rate on return (ROA) decreased by nine percent. This implies that Netflix is spending more cash on acquiring content at a rate that is higher than the rate of amortization for their streaming content library (Jalan, 2016). In addition to a decrease in ROA, Netflix available cash has also decreased. The company invested heavily into creating unique content. The company’s investment in producing original content continues to rise. Because of original investment content Netflix had to downsize content library. Netflix let go of its deal with Epix, which means that the company will not stream the latest episodes of the Hunger Games or Transformers (Jalan, 2016).

Netflix Opportunities. The international market is the new engine for Netflix growth. Original content is something subscribers have come to love and expect more of from Netflix. Netflix needs to continue increase the content volume, as well as widening the coverage and offering a range of programs. A focus area for Netflix needs to be on cultivating strategic partners, television manufacturers, mobile device manufacturers, and electronic retailers.

Netflix maintains a level of convenience by its unique distribution model. The lack of brick-and-mortar locations allows Netflix to focus on internet distribution and shipping using the United States Postal Service (Schneider, 2015). Deliver to consumers is quick and reliable. Consumers have a choice of streaming online or order DVDs with overnight delivery. The framework and technology in place enables Netflix to minimize errors, service interruption, and delays. Being that this is not a perfect world, Netflix keeps customers happy by compensating them with free months, reducing billing fees, and other promotions (Seitz, 2016).

Threats to Netflix Operations. Netflix uses warehouses to distribute its inventory of DVDs. The company also uses trucks to deliver DVDs to its customers. The costs of warehouse rentals, truck maintenance, drivers, etc. are high. Netflix does not charge late fees or delivery fees for the DVD service. This is an area Netflix needs to focus to determine if this a service worth the expenses.

As technology changes, Netflix needs to upgrade and maintain the technological infrastructure. In addition, the entertainment industry is experiencing rapid growth and innovation with the introduction of three-dimensional televisions and the rising popularity of streaming content. The content for traditional DVDs is declining, as broadband speeds become faster and cheaper.

Netflix Priority List

One of the priorities for Netflix is the ability to attract new customers and increasing the number of subscribers. The number of people subscribing to Netflix in the United States is approaching saturation and growth is starting to stagnate. As a result, Netflix is investing in expanding abroad. The company has expanded into countries like Japan, and plans to expand into other Asian countries (Jalan, 2016). One market to explore and find a way to penetrate is China and India; two densely populated markets that can lead to significant subscriber growth. A global presence presents an opportunity for growth. New market penetration takes time; the company must learn to adapt and cater to the needs of new markets. Netflix will needs to research and analyze new markets to decide if the return on investment is worth the risks.

Improving and maintaining the infrastructure needs to be a priority for Netflix. In 2012, Netflix suffered a massive infrastructure failure. Since then, the company improved their technology. Netflix operates its own CDN called Open Connect, which allows massive bandwidth costs and improve streaming (Jalan, 2016). Netflix is also investing in a project called Chaos Monkey; it randomly takes virtual machines offline to ensure Netflix can survive network failures without affecting the customers. The company also backs its content on Google Cloud Storage. In the event of a natural disaster or insider threat failure Netflix is able to recover and fix issues (Jalan, 2016).

Focus on customer service will help the company retain current customers and attract new ones. The Data Analytics is a program Netflix uses to figure out what the customer wants. Data mining helps Netflix determine the cost per hour viewed for each piece of licensed content (Jalan, 2016). Data Analytics helps Netflix determine what content viewers pay to see. Netflix compiles the data to estimate the expected hours of viewing for each movie or show. Netflix uses the information during contract negotiations. Another use for the data is to help Netflix determine what type of original content the company should create. This is one of the reasons Netflix is having a high rate of success in creating new, original content.

Creating new opportunities should be at the top of Netflix list. Netflix is working with premier hotels, like Marriot, to provide high speed, free uninterrupted content. The company has a dedicated app to internet-enabled television across hotels. The app allows direct access to Netflix content to hotel guests. Existing customers can use their subscription; otherwise, guests can sign up for a new account. This ensures new customer acquisition for Netflix (Jalan, 2016).

Netflix Readiness for the Future

Netflix business strategy is focuses on the company’s future readiness through advances technology and content vision. To remain the top service provider, Netflix needs to review their two main cost centers to find ways to reduce costs while continuing to provide a high level of service. Creating advanced technology infrastructure to improve video streaming is expensive. Maintaining server space is a high cost commitment. In addition to that, Netflix spent a lot of money in its Data Analytics infrastructure. The Data Analytics infrastructure allows Netflix to collect data on their customer’s content consumption habits. The company uses the data to customize the content and offer customers what they want.

Another factor that affects Netflix’s bottom line is the licensing costs. Content licensing costs with television networks, filmmakers, and other content owners makes up Netflix’s biggest expense (Jalan, 2016). Netflix spends nearly $200 million a year to gain access to Disney films and television programing. Until about 4 years ago, Netflix’s content was, mainly movies and television series the company paid to have streaming rights. Today Netflix’s commitment to original content consists of 24 episodic series, documentaries, comedy specials, and feature films. The company is investing in several more series and movies.

One factor that drives production costs is the costs of rental space. Netflix leases from other production companies the space to film their original content. Netflix is investing in real state to build its own studios. Disney Studio collaborated with Netflix to produce original content for international markets (Jalan, 2016). Making the right decisions is key to continued success. By using data the Data Analytics program gathers, Netflix is able to find the right genres and talent that the audience likes and creates connection – connecting with the shows.

Subscribers love Netflix’s original content. Their original content helps Netflix maintain a competitive advantage in the market by attracting more people to its platform. Netflix is working to increase the sheer volume of content. It is also widening the breadth by bringing in a range of programs. Netflix is innovating to bring the best results to its subscribers by focusing on new language, payment options, and more features to satisfy the needs of different people across the globe. To do this, Netflix is continuing to collaborate with mobile and television operators. Netflix is also working to improve the mobile experience, as mobile devices are the primary medium of accessing the internet in many countries (Jalan, 2018).

Conclusion

The internet and broadband in the United States is changing. Homes that use high-speed internet have significantly decreased in the last few years. Today, most consumers are using their mobile device to access the content online. With free access to video platforms like YouTube and Apple iTunes, competition for viewership has increased; an area Netflix is focusing on to improving their routers and streaming speed. Netflix change in their business model is key to maintaining the readiness of the company. Through innovation in technology and content Netflix will continue to be one of the top streaming service providers both in the United States and abroad.

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Social Responsibility in Business

 

A sustainable business effectively accounts for social responsibility. The apparent primary social responsibility of a business would be making profit. Corporate social responsibility (CSR) involves the balancing of social, economic and environmental components of the business while increasing stakeholder value. This is of instrumental value as it can be used to help business achieve and sustain successful performance. The relationship between a business and the society has been radicalized to a more ethical outlook that analyzes the greater impact of business on society. (Safwat 2015),

Deposit taking Savings and Credit Cooperative Organizations (SACCOs) have often faced stiff competition from commercial banks hence the need to come up with strategies and policies to earn member trust while creating a competitive advantage over commercial banks. Firms use CSR to create shared value for their stakeholders and to mitigate their adverse impacts (Crifo & Forget 2015). The marketplace has seen a significant growth in the demand for ethical behavior (Irune Gomez 2019). In order to ensure SACCO perpetuity CSR involving social, economic, ethical and environmental concerns for employees, customers, community, government and other stakeholders is adopted.

SACCOs, like other cooperative organizations, naturally support CSR as there exists a special link in essence. Cooperatives are viewed as socially responsible based on their principles and value such as self-help, self-responsibility, equality, concern for the community, economic participation among others. These principles and values have been adopted by International Cooperative Alliance (ICA) as they are consistent with the nature and functions of cooperatives.

CSR reporting has globally become a main tool through which organizations communicate their economic, social and environmental performance (Helena Maria-Araya, Fernando Polo-Garrido, Elies Segui-Mas 2019). This implies that CSR has greatly influenced business communication. The increasing significance of CSR has prompted governments to promote socially and ecologically responsible corporate practices in their national public policies. States like Canada and Denmark monitor CSR practices and have national policies that make it mandatory for companies to include information on CSR in their annual financial reports. International benchmark bodies such as ISO 26000 (CSR standard), OECD guidelines, ISO 14001 (EMS) and Global Reporting Initiative (GRI). CSR universally in cooperatives contributes to sustainable growth and development in areas where the corporation operates. In line with Sustainable development Goals (SDGs) of the United Nations, cooperatives help empower people and ensure inclusiveness and equality. Through CSR practices, cooperatives further help to meet urgent environmental and economic challenges. there is a shift from the traditional single bottom line to contemporary triple bottom line (TBL) which involves people, planet and profit firm performance measures (Bagh et al. 2017; Bremner 2016).

African countries, being majorly developing nations embrace CSR in cooperatives as this is in line with their common objective of sustainable development. CSR is considered as a way through which businesses make contributions to improve social, ethical and environmental conditions. CSR in cooperatives is also expected to aid in poverty alleviation.

The Kenyan government engage cooperatives as an implemented economic plan to enhance profits and ultimately development. In rural areas, SACCOs have been recognized as an important venture for mobilization of finances for progression in these regions where people live primarily from farming. There has however been a diversification of SACCOs in such a way that they are no longer only agriculture based. Now, cooperatives contribute to about 43% of the GDP in Kenya. CSR has been adopted by cooperatives to ensure sustainable growth over years.

Corporate Social Responsibility

CSR involves incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change to the immediate community. CSR is a concept pertaining an entity’s obligation to act in a way that benefits the society. It is a duty that every individual has to perform so as to maintain a balance between the economy and the ecosystems. In order for organization to be sustainable it must be financially secure, decrease its negative environmental impact and act in conformity with the expectations of society. Although the prime focus of business is generating profits, corporations can contribute to social and environmental goals by applying corporate social responsibility as a strategic line in their core business practices.

Financial Performance

Financial performance refers to a composite of an organization’s financial health, its ability and willingness to meet its long-term financial obligations as and when they fall due and its commitments to provide services in the foreseeable future. Financial health is measured by firm’s return on investment (ROI), return on assets (ROA) and return on equity (ROE)

Long-term objectives represent the results expected from pursuing certain strategies which represent actions to be taken to accomplish long-term objectives.

Statement of the Problem

Over past decades, a relationship between CSR and organizational profitability has been established. There exists an increased trend of Savings and Credit Cooperatives (SACCOs) providing information on social, environmental and economic aspects of their operations. Corporate social responsibility is a concept which has become dominant in any form of business reporting as it depicts how organization is committed to impact to the society. The subject concern also elicits a discussion on CSR practices through critical study of research literature.

According to Donna J. Wood (2015), in her research on organizational behavior, Corporate social performance constitutes a broad view of corporate responsibility unlike the narrow view focused on owner wealth. It involves a concept of principles and processes that organizations need for interactions with stakeholders as well as the outcomes and effects of these interactions. Organizations build healthy relationship with their stakeholders through interactions that in turn aid in ensuring reduced conflicts of interest as stakeholder interests are taken into consideration. Eliza Sharma (2019) in her book about CSR and Environmental Management explains that CSR can also be viewed as a gateway to integrate business with ethics for expansion beyond mere profit line. This means good organizational reputation that earns customer loyalty over years. In her organizational communication research, Rahul Mitra (2016) highlights environmental CSR practices under organizational sustainability. CSR therefore aids in providing prolonged organization existence by bringing forth a competitive advantage in the market.

These studies enlighten the close relationship between CSR and firm’s long run profitability. However, these studies have failed to tell how a firm’s financial performance would improve per shilling spent on CSR. Therefore, by failing to depict the effects that CSR has on a firm’s financial performance, there exists a knowledge gap and need for further research. This study is therefore aiming at filling this gap. The study attempts to analyze the positive effect of CSR on profitability by monitoring costs and diversifying risks across different projects in a bid to ultimately provide high returns.

Justification of the study

The study will be used by company executives to understand the importance of engaging in social activities and evaluating emerging social risks as an offshoot of their operating activities in a bid to dominate a significant market share. According to Cruz & Ramos (2015) CSR heightens the need for organizations to adopt policies that focus on the importance of minimizing or eliminating harmful practices meted on stakeholders. By understanding the effect of corporate social responsibility activities on financial Performance, investors can determine how to allocate their portfolio so as to maximize returns and thereafter change their assessment of companies' performance as a result of their ethical engagements. Analysts and academicians will find this study helpful in understanding the effect of CSR activities on a firm’s long-term financial performance.

Scope of the Study

The study focused on CSR impacts on deposit taking SACCOs in Kenya. This study investigated ways in which investing in the society affects business turnover and its consequent profitability. The study also summarized some of the descriptive information, as well as information from the historical record, in an attempt to describe the factors affecting financial performance of SACCOs in the region. Secondary data captured performance for 5 years (2013 to 2018)

Limitations of the Study

Limitations of the study includes issues related to confidentiality of some respondents who could not be willing to disclose some information relating to CSR due to the risk of benefitting rival firms. In order to counter this, the researcher will structure the questionnaires in a way that respects their confidentiality. The manager in charge of CSR may also be busy and could not allocate adequate time for the completion of questionnaires. The researcher will therefore do a follow up to ensure they are completed. In this study, CSR is measured in terms of monetary spending on social projects hence non-financial CSR projects may not be captured due to the difficulties involved in measurements. There therefore exists a possibility of different results if such aspects are taken into consideration.

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Corporate Responsibility Master of Business Administration

Abstract

This paper will analyse a business that needs to be environmentally friendly and working towards creating positive social impact, against a need to achieve a certain degree of profitability required by the shareholders.

Introduction

The business is environmentally friendly towards creating a positive social impact. The competition is high therefore the business is having difficulties in winning bigger contracts. Other organisations and individuals gave financial support to the business to guarantee its long-term sustainability in exchange of 75% of the total shares. Also, with the financial support the business must have a 15% profitability per year, otherwise the shareholders can replace the CEO. Meanwhile the CEO has to write a strategic plan for the next 5 years having the business’ mission and vision, supported by the shareholders, but there is a thin line between achieving the profitability required and at the same being environmentally friendly as well as promoting a positive social impact. This approach will create additional costs that put at risk the profitability required by the shareholders.

The Plan

The CEO had to create a well-balanced approach towards achieving the profit required and the corporate social responsibility that is so important for the business, the community, and for the other stakeholders. As long as this balance was maintained the 5-year strategic plan could be implemented (Crowter & Guler, 2008).

The priorities are growth, productivity, and responsibility supported by a happy organisation. This growth is not just selling more, but increasing the business share of the market, growth in profit, and continuing growth in shareholder value. Here we can input the profitability requirement of 15% (Hall, et al., 2008).

Productivity means using the actual resources smartly and responsibly, generating savings that could be used to pay for the additional costs of the corporate social responsibility initiatives the company will pursue (Hall, et al., 2008).

At the end responsibility is fundamental to building a long-term shareholder value, pursuing commercial and financial objectives with a certain and needed respect for the social responsibilities (Hall, et al., 2008).

The plan would be to increase the gross turnover, operating profit, profit after tax and interest, number of employees, but reducing the number of factories to have less provisions for environmental potential responsibilities. By increasing profit, the tax contribution to the government would also increase, in line with the corporate social responsibility.

At the same time the business would expend more in environmental, health and safety issues, plus giving more in donations to charities and communities, always below the line of 15%, maintaining shareholders happy.

It is a strategy of fighting another day, being profit and keeping under the radar the need to always contribute to environmental, health and safety matters, and donating to charities and communities.

This struggle between money and responsibility cannot be fought head on, as the CEO cannot win this war totally, but the CEO can win battles, and many battles won can make a difference.

And this is how the CEO can and would convince the shareholders that this approach is the best option. The shareholders also know that money cannot be everything. It is also important to operate the business responsibly, otherwise not even a minimum of profitability can be achieved, after so many cases of corporate failures from environmental disasters, for example.

Conclusion

A part of reducing the number of factories, key performance goals would be to manage better the wastage generated by the company, like increasing the amount of hazardous waste sent to approved landfills, recycling and incinerating more hazardous and non-hazardous waste, and decrease the amount of non-hazardous waste sent to landfills.

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Taking Responsibility for One’s own Actions

I do possess a strong attitude when it comes to accepting responsibility for my own actions, I am always looking for new ways to improve myself, my job, and my relationships I believe that once total responsibility is accepted for everything that has happened in one’s life, solutions to life’s difficulties can be instantly found.

A negative person who likes to play the blame game might blame others for their stress load whereas somebody who accepts total responsibility for their outcomes will get got out of that state sooner they own the fact that they are responsible for the company they keep If you’re not happy with the situation and have taken responsibility for it, you are able to find a solution – in this case, by getting out of an unhealthy relationship.

When you accept responsibility, you accept a willingness to develop your character and in doing that, the stronger your character will become and your life will be improved as a result of this respons is owning your own life (ability to respond)

What can you do to increase the strength of this attitude?

To increase the strength of taking responsibility one must self-evaluate. Whether it be daily, weekly or monthly, create an inventory list on what’s working and what’s not, with this one can always progress and become. Another method to increase ones attitude is not getting overwhelmed by our own judgement and always taking accountability for everything experienced.

What things would you say during an interview to demonstrate that you possess the career readiness competency of ownership/accepting responsibility?

Stability –Where do you see yourself in the next five years?

No employer wants to invest time and money in an employee just to have them quit within a couple months. They want to see you working with a business for an acceptable period of time. When asked “Where do you see yourself in the next five years?” they’re actually looking for stability and a response that shows that you have goals set my response to this question would be “I see myself having earned my business degree, working towards my Masters. I also see myself holding the title of supervisor in the higher claims department.

Employers don’t only want employees that will show up to work, they want you to be on-time. Giving examples of times I’ve been relied on shows responsibility and turning up fifteen to twenty minutes early to interview proves that I can be organised and punctual.

Employers inquire about weaknesses, time management, how you got a positive outcome out of a negative one etc to see how well you work under pressure.

“While attending college, I also worked at a medical clinic. I was successful due to practice of good time management skills, and made to do list every day. As I completed each task, I checked it off the list. As a result of my to-do lists, I was able to visualize my daily progress.”

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Two Greatest Risks to Voluntary Social Responsibility

Richardson (2015) best states that the greatest risks of demonstrating social responsibility in the retail industry are “the threat of substitution and capricious consumers” (p. 98). The greatest risks M&S may face in their endeavor to engraft their sustainability plan (Plan A) into every sector of its organization are twofold – loss of competitive advantage due to substitution and/or overreach that can lead to systemic mistakes.

With the early 1970s movement of social responsibility for consumer purchasing and the environmental movement in the 1990s, consumers are looking more towards organizations who demonstrate social responsibility (Drumwright, 1994). In today’s consumer driven economy organizations vie for the best position in the market to recruit and retain customers. Certainly, M&S is no different as they faced the challenge of fickle consumers and sought to rebrand themselves (Richardson, 2015). M&S implemented a transformational business strategy to demonstrate social responsibility through managing its waste, engaging in fairer trading, and having a positive impact on climate change (Richardson, 2015).

 Such transformational change requires a shift in their organizational culture, and as a long-term process (Richardson, 2015), it leaves M&S somewhat vulnerable to finicky consumer behaviors. In their voluntary quest, M&S found themselves leading the industry in how to define the success of social responsibility (CSR) (Richardson, 2015). The risk of being such a leader is that a competitor may subsequently define successful CSR better and show more results to support their different definition. This may cause fickle consumers to leave M&S and substitute their products and services with those of their competitor. Customers may see other retailers providing more of what they want while still maintaining some sense of social responsibility, especially if quality and pricing is more superior to that offered by M&S. Additionally, if M&S’s marketing strategies are not aligned with their transformational change to increase social responsibility, the true message behind their plight will be lost on its customer base (Drumwright, 1994).

Although M&S understands that things will go wrong and they are comfortable operating in that space of uncertainty, another risk is that the organization may find itself in a negative public light, consistently engaging in damage control if mistakes become too systemic (Richardson, 2015). M&S has voluntarily placed a tremendous undertaking upon itself to bring the entire supply chain, organizational departments, and culture into alignment with Plan A by 2020 (Richardson, 2015), leaving them vulnerable to criticism if they cannot meet their own demands. 

While noble, this may be an overreach in expectation causing more harm than good. With growing mass-media, consumers are becoming more educated and more aware of retailers’ practices that appear socially irresponsible (Wagner, Lutz, & Weitz, 2009), regardless of whether the practice may be outside their industry’s scope. One may believe that consumers can be forgiving of organizations who have issues with social responsibility. However, studies show that negative information regarding social responsibility has a greater impact on consumer perception than positive information (Wagner et al., 2009). Regarding inconsistency in an organization’s social responsibility, studies show that consumers are more apt to perceive this as corporate hypocrisy, which can lead to an even greater negative impact (Wagner et al., 2009). Such a predicament would be disastrous for M&S if they had to try to undo the psychological ramifications of the public’s perceptions of hypocrisy.

Top Two Recommendations for Cultivating Stakeholder Engagement

The concept of collaborative stakeholder engagement is finding traction in the corporate social responsibility arena (Aakhus & Bzdak, 2015). One of the best ways M&S can cultivate engagement of their Plan A among internal and external stakeholders is through a robust communication strategy. Already a commitment objective, involving customers in Plan A (Richardson, 2015) will help to engage external stakeholders in their decision-making and implementation of Plan A. Furthermore, M&S should expand their communication and engagement to include their internal stakeholders as well. In fact, Drumwright (1994) notes “supervisors and middle managers who will inherit greater management challenges due to the socially responsible product” (p. 13) should be engaged in collaborative problem solving to help overcome resistance within the organization and to increase the likelihood of successful transformational change. Communication among organizational leaders and its stakeholders should be clear, concise, informative, robust, and frequent to elicit the best engagement response. Such practices will help build trust in the concept of Plan A, give stakeholders a voice, and therefore, increase buy-in to the changes and the requisite change behaviors.

Another recommendation for cultivating engagement with stakeholders is to have a robust marketing strategy. An effective marketing strategy can highlight M&S’s social responsibility endeavor, its convictions for operating in an environmentally conscious manner, and educate stakeholders that it is not being done for competitive advantage but because it is the right thing to do (Drumwright, 1994). Such a marketing strategy can also highlight the socially responsible behaviors of M&S’s external stakeholders, including their supply chain, and create a collaborative movement with their vendors. Such key partnerships highlighted in an effective marketing campaign can help build consumers’ trust in the retailer as well as the overall industry. The added benefit is that employees will perceive they are working towards a higher purpose and that their impact goes beyond just M&S, but also impacts an entire system.

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Our Ethical Responsibility in the Growth of AI

Abstract

As artificial intelligence (AI) becomes more prevalent in today’s industries, research has been unclear as to the effect this will have on occupations in the U.S. The slow development of AI technology through the decades has allowed adequate time for analysis and postulation on how the different facets of society can best support a positive implementation of AI into the world. AI and automation are increasingly used in the workplace, so governments, businesses, and educational institutions will need to adapt to support future progress. While the outcomes for our future vary, all reports agree that ethics is the key to the beneficial use of AI and ensuring our success as we transition into a new technological world.

INTRODUCTION

Artificial intelligence (AI) has traversed well beyond science fiction. AI are absorbing more services every year that humans have performed for centuries, such as transportation, customer service, manufacturing, and even leisure. The possibilities that AI can unlock are only limited by the imagination, yet development of increasingly more powerful AI has been a slow process. 

This gives us more time to think about what kinds of jobs will be rendered obsolete when AI becomes more efficient at services than humans could ever hope to match. Industry executives might look forward to the savings of employing intelligent technology vice humans who have needs, goals, and insurance policies, but the average employee should be informed of the safety of their job and what potential outcomes the future may hold. The synthesis of artificial intelligence with the workplace will undoubtedly affect the U.S. economy, but the extent of those effects depends on key ethical decisions. Included is a consolidation of research in various fields to more accurately anticipate the effects of AI on tomorrow’s workforce and possible adaptations necessary to ensure our success.

In this paper, information about AI and automation will be used seemingly interchangeably even though the two concepts do not always overlap. This is because both are transformational forces in our economy and will have similar effects even if they affect different occupations.

BACKGROUND

The Encyclopædia Britannica defines artificial intelligence as “the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings” [1]. The intelligence capability of computers has grown very quickly lately due to advances in deep learning, where computers teach themselves a skill using reward-based programming that simulates the function of neurons in a human brain. These “neural networks” are established to allow for simultaneous analysis of its data environment and form a conclusion based on its own experience. While there is a disagreement as to how accurate the word “intelligence” describes the current capabilities of computers [2], people are cautioned to keep an open mind to the possibility of human-like intelligence.

Brief History of AI

The first artificial neural network was created in 1951 by Marvin Minsky – co-founder of Massachusetts Institute of Technology’s (MIT) AI Laboratory – and Dean Edmunds to simulate a rat solving a maze with a reward signal input when it found the correct path. That same year, programs capable of playing chess and checkers were designed. In 1957, Frank Rosenblatt designed the first artificial neural network algorithm that was capable of supervised learning. AI development was very promising but slow in delivering its promises due to available technology. The publishing of the infamous ALPAC Report of 1966 [3] was the first of several events that inspired a drastic reduction of AI research funding due to its recommendations that computational linguistics – the focus of AI research at the time – was limited by the current state of computers available at the time. Ray Solomonoff proved Algorithmic Probability in 1968 – later used as the mathematical basis for how deep learning operates – but did not publish the results for 10 years due to the lack of interest in the topic. 

The general lack of interest in AI development continued well into the 1990s. Despite a reduction of activity, progress still thrived, and in a letter from Raj Reddy – president of the Association for the Advancement of AI – to association members in 1988, he states, “And the mythical AI winter may have turned into an AI spring. I see many flowers blooming” [4]. This “winter” – likened to hype-induced crashes like the dot-com bubble or the more recent cryptocurrency crash – began to turn around. In 1991, the AI-based Dynamic Analysis and Replanning Tool (DART) reportedly paid back 30 years of government research agency DARPA AI project investments within its first year of use in Operation Desert Storm [5]. New milestones started to appear. In 1997, IBM’s Deep Blue supercomputer defeated reigning world champion chess player Garry Kasparov. In 2011, Apple released Siri, the first AI-based digital assistant. In 2015, Google DeepMind’s AlphaGo defeated European Go champion Fan Hui. The Go victory was seen as a major victory for deep learning, as Go is significantly more complex than chess [6]. Also in 2015, image recognition surpassed human performance [7]. Finally, in 2018, there is now significant progress with self-driving cars from Uber, Tesla, and Google.

Predictions

Vernor Vinge – professor of computer science and science fiction author who invented the concept of the technological singularity – stated in a paper in 1993, “I believe that the creation of greater than human intelligence will occur during the next thirty years…. I'll be surprised if this event occurs before 2005 or after 2030” [8]. Now, over halfway through this period, this goal has not been achieved, which can be evidenced by the lack of clear victors of the “Turing test” – first proposed in 1950 by Alan Turing, a forerunner in computer science and cryptoanalysis – where an interviewer can be fooled about the interviewee’s humanity while performing a blind interview of a computer and a person. There is no formal Turing Test, although some like the Loebner Prize attempt to carry the torch. Even participants of the Dartmouth College AI Conference: The Next 50 Years (known as AI@50) who were polled – some of which were attendees of the original conference in 1956 – had strong negative feelings toward the question “When will computers be able to simulate every aspect of human intelligence? 41%... said ‘More than 50 years,’ and 41% said ‘Never’” [9]. As time advances, the hype has died down and predictions become more pragmatic about the growth of an artificial intelligence.

CURRENT STATUS OF AI AND THE ECONOMY

Robotic automation in the United States has increased steadily for the last several years due to a push to strengthen its industries’ performance in the marketplace [10]. As automation increases, human involvement in the production process has decreased from one of direct involvement with every step to one of supervision, and like with human supervision your number of supervisors is always outnumbered by your workers.

An often-cited Oxford study concluded that 47% of 702 U.S. job occupations were at high risk of computerization [11]. One other point the study makes is that the Industrial Revolution allowed a boom of unskilled labor, but the prominence of jobs based on the introduction of electricity created a need for skilled labor, thereby starting a correlation between education and job growth. In fact, the study also found a direct modern correlation between educational achievement and occupation computerizability [11]. As AI capabilities grow, more skilled workers will be needed, possibly in fields that did not previously exist.

Some economic growing pains of increasingly computerized systems have already been felt. The implementation of cloud-based information and data sharing leaves systems open to cyber-attacks. 38% of cyber-attacks against businesses in 2017 caused at least $1 million in damages [12]. Businesses are growing rapidly, utilizing the most recent tools available while the weaknesses are still being explored by malicious people. So far, no AI-enhanced cyber-attacks have occurred, but given the access it is given to our data, including personal assistants like Siri, Cortana, and Alexa, it is believable that AI will enable easier access to sensitive information.

PREPARATION FOR THE FUTURE

Currently, preparations for the implementation of AI in the economy have not extended much beyond the discussion phase. Research scientists in the AI field have been cautioned about their responsibility to ensure the public knows the limitations of AI so our policies reflect what is in the best interest for both citizens and the development of AI [13] and guard against impeding progress out of fear [14]. Currently, AI must be supervised in its learning process through human input in data labeling, data acquisition, explanation of results, transferability of skills between fields, and unbiasing data [15]. These factors reduce its usefulness and are currently slowing its introduction into businesses worldwide. Even though a large portion of our jobs in the U.S. are computerizable, the progress at which AI researchers unlock new capabilities is bottlenecking the pace at which our world changes.

This slow pace of development and discussion allowed the formation of the Subcommittee on Machine Learning and Artificial Intelligence, allowing for the U.S. government to be better informed as changes occur in the field and better serve its nation. Its 2016 report [16] is generally favorable toward AI and the advances it can bring to the U.S, is well-informed about its shortcomings and the growth that will be necessary to allow AI to be entrusted with safety-critical applications, and mentions that researchers and practitioners in the field must be open to government regulation to allow for the nation’s best interests. One of the main public concerns is how employment will be affected when technology displaces human workers, of which one possible outcome is technological unemployment. In 1930, famed economist John Maynard Keynes defined technological unemployment as the “means of economising the use of labour outrunning the pace at which we can find new uses for labour. [17]” Keynes saw this as a temporary condition that would be corrected because humankind controls the outcome, even if reactive methods win out over proactive.

Some companies, like AT&T, are retraining their workforce to maintain their competitive edge and preparation for technological advances. The effects of this move could benefit more than just the relevancy of its product. “According to the company, employees that are currently retraining are two times more likely to be hired into one of these newer, mission-critical jobs and four times more likely to make a career advancement” [18]. This statement resonates with the conclusion of the Gallup 2017 State of the American Workplace report that our current style of management is broken and should shift to more of a “coaching culture” to help correct our reliably low employee engagement, which is currently at 33% [19]. AT&T is actively adjusting its business and employment model to proactively meet the challenges brought on by technological advances. Conversely, Foxconn, which supplies phones for Apple, recently laid off 60,000 employees from their factory in Kunshan, China – over half the employee strength – due to automation [20]. This is an example of the capabilities of automation triumphing over ethical management.

FUTURE POSSIBILITIES

While not every citizen can be bothered to understand and track the technical changes the world is undergoing, the effects of change will be felt by all, regardless of how slow the process is. Higher education is already in the process of change via teacherbots and online courses [21], which have the potential to make education cheaper and more available. The two most extreme results posited are a technological singularity and massive layoffs. While the possibility of a singularity – where AI operates at a higher intelligence than humanity and changes civilization according to its own agenda – seems unlikely, there are advances in biological understanding and microprocessor design [22] that also promote the opinion that we cannot predict what will happen next. Massive unemployment due to a technological upset could occur, provided companies do not undertake the necessary measures to protect their employees, like AT&T. These concerns drove the Organization for Economic Co-operation and Development to establish an expert group on AI and launch a policy observatory to ensure that AI is used for the benefit of the world [23] while the United Nations has formed the AI for Good Global Summit to achieve its goals for peace and prosperity worldwide [24].

Andrew Ng, founder of Google Brain, cautions, “Countries with more sensible AI policies will advance more rapidly, and those with poorly thought out policies will risk being left behind” [7]. One policy that is rapidly gaining attention is the idea of a “basic income,” where a periodic stipend of money is distributed to citizens regardless of income or work status, allowing people to survive when computerization displaces more human workers; basic income is currently described by several billionaires as a necessity of the future [25]. Ideas like these will allow a nation to minimize the economic effects on each household. Some cities, including Chicago [26], are starting to develop a basic income program with the intent of launching a test run. Current polling indicates a mixed sentiment toward basic income [27] which turns negative with the stipulation that it is paid for by taxes [28]; also, Americans have a negative view of how AI will impact the economy as a whole yet remain optimistic when only thinking about the effects on their job [27]. Investor Glenn Luk reminds us that if 90% of our jobs became automated, we would be where we are today: the farming, equine transportation, and railroad industries have been completely transformed to only contain a small percentage of the workforce they did 100 years ago [29], and the formation of new jobs and fields offset those changes.

ETHICS

It is difficult to research AI without finding a call from authors to keep ethics at the forefront of every decision, whether from a government report or a university paper. The 2016 federal report states that policy-makers need to involve technical experts, the Department of Transportation should continue preparing for automated vehicles, and universities should include AI ethics in their curricula for related programs [16]. MIT announced the new Stephen A. Schwarzman College of Computing, bringing in a $1 billion initiative to address the opportunities and challenges of AI, including injecting AI into related fields and developing a strong conversation about ethics [30]. MIT has always been a key player in the growth of AI and they are continuing to be proactive in all its fields, including ethics. Google DeepMind has formed its own ethics board, and recently Google dropped a U.S. Department of Defense contract due to employee protests that their research could be used to support drone attacks [31]. Wright and Schultz [32] published an ethical framework for integrating AI and automation into the workplace and recommends embracing regulation and ensuring stakeholder – i.e. “customers, employees, governments, and competitors” – interests are preserved. Furthermore, Siau and Wang encourage those involved with AI to do everything in their power to build public trust with this new technology [33], which should be easier to accomplish as the ratio of positive to negative media articles grows [7].

CONCLUSION

Predictions range from humanity living an easier life as AI bears more of our workload to mass unemployment due to greed, improper preparation, or a rampant singularity, but we must not forget that humans are creating AI and we have the ability to pull the plug. Currently, stakeholders in government, business, and education embrace an ethical approach to AI in the U.S. economy and are encouraging the rest of the world to do the same. Decades of analysis and caution have painted a clear picture of everyone’s ethical responsibility, regardless of how rapidly the technology advances. How we handle change is more important than the change itself; continuing this ethical path will allow for the smoothest transition into a new technological world. 

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A Study on Corporate Social Responsibility of Private Sector Companies in Gujarat

ABSTRACT

CSR is described as contribution of business towards sustainable development and is defined as the development for current and future needs. CSR is associated with many elements such as corporate sustainability, corporate responsibility and corporate stewardship. CSR will provide best interest of society which leads in the direction of positive contribution to the human society. This research paper highlights on implementation and functioning of CSR in various companies. The main goal of the study was to analyse the implementation and functioning of CSR in selected companies in Gujarat.

INTRODUCTION

CSR is a business practice which can cause sustainable development in to the model of company’s business. It has created positive impact on social economic and environmental factor. CSR is the responsibility of the organization for the impact of its decision and activities on society and environment resulting in ethical behavior and transparency which can contribute to the sustainable development.

OBJECTIVES OF STUDY

  • To get the information of CSR through opinions of managers.
  •  To get the information of approaches for practising social responsibility through opinions of managers.
  •  To get the information regarding execution and practising social responsibility through opinions of managers.

DIMENSIONS OF CSR

Corporate Sustainability

Sustainability means the ability to maintain different systems socially, economically and environmentally.CSR is normally defined as the practice under good social, economic and environmental condition. CSR is implemented in most of the organization to improve reputation and profitability of an organization. CSR shows the view about the ethical views and concepts which is relevant economically, socially and environmentally.

CSR and Corporate Accountability

Corporate accountability generates a system under which companies establish policies, target &processes to handle its activities. Corporate accountability involves CSR issues like business ethics, governance, human rights, financial &environmental performance of organization. Effective & accountable system helps the organization to maintain culture which develop & support CSR activities within the institutional framework. Companies are also generating accountability for better performance at senior management level by developing CSR activities.

MEASUREMENT OF CSR

CSR can be measured in to three levels.

  •  Measurement in terms of responsibility.
  •  Measurement in terms of responsiveness.
  •  Measurement in terms of outcomes

Soc?ial Responsibility

Corporate responsibility has following elements.

  •  It shows the relationship between business and society.
  •  Responsibilities are associated with firm and its methods and outcomes which can be found within the framework of basic principle.
  •  The behaviour of manager where manager and other members are ethical and moral actors.

Within every domain of corporate social responsibility, they are obliged to exercise such direction as is available to them towards socially responsible outcomes.

Social Responsiveness

Corporate social responsiveness is the capacity of the business to do something to social pressures. It is the ability of the business organization to survive for the business environment.

CSR consists of following elements.

  •  Identification of business environment- It indicates the gathering of information and transmitting them throughout the organization.
  •  Management of stakeholders- stakeholder is an individual or groups who can affect the objective of firm. Stakeholder management involves the relationships of stakeholders with an organization.
  •  To highlight the motivational principles of an organization and is converted in to main issues to which stakeholders are associated.

BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

Business ethics investigate the issues such as systematic, corporate and individual. Corporate issues in business ethics are questions about moral policies, activities and practices. Individual issues are the issues which can be raised about the person within an organization. Systematic issues are issues about economical social and legal systems within which business can develop.

The benefits of CSR are as given below.

  •  To improve financial results of an organization:

CSR generally helps to improve the financial performance of an organization.

  • To Maintain public credibility:

The demonstration of willingness of an organization provides accessible, credible and verifiable information which can improve trust among shareholders.

  • To eliminate cost:

The communication can create faith between organization and stakeholders which can decrease complex issues and improve decision making of the company which involve and

Engage shareholders and give their feedback to an organization which can reduce complex issues and conflicts between firm and shareholders.

  • To increase attraction of investors:

More effective and ethical practices of an organization can reduce conflicts between firm and stakeholders and better financial performances can increase attraction and trust of investors to the firm.

  • To Improve relation with shareholders:

The firm having transparent and accountable actions and decision can improve relation of a firm with shareholders. Better trust of shareholder can build by accountability and transparency of a firm.

RESEARCH METHODOLOGY

After designing the research design the next step is to collect the data. There are two types of research data.

Primary Data: Primary data were obtained by structured questionnaire to investigate about the CSR activities Present in different organization. Data were collected through sample survey method.

Secondary Data:

Secondary data were collected by company journal, brochure, website and prospectus.

Sample and sampling methods:

A particular sample from population was selected for research. The sample design can be classified in two categories.

  1.  Method of Random sampling.
  2.  Method of Non random sampling.

Random sampling:

In Random sampling method every member of population has a probability higher than zero of the being selected for the sample. This sampling method is more representative than non-random sampling.

Data handling tools for data analysis:

Data analysis has been done by tabulation, percentage method charts for getting full conclusion with the help of graphical method by using Microsoft excel and Google forms.

LITERATURE REVIEW

Arora and Puranik (2004) observed CSR trends in India. They concluded that corporate sector has got benefits from privatization and liberation processes. These processes have changed from philanthropic mindsets to CSR which has been lagging behind its financial growth and performances. R.S. Raman (2006) used content analysis techniques to analyse top 50 companies in India to view the nature of corporate responsibility. The study also concludes that Indian firms are given more importance on product improvement and human resource development. Study also highlights the firm’s responsibility towards the shareholders. Suman kalyan chaudhary et.al (2013) investigated highlighted CSR practices in 12 major Indian banking and financial institution of the country. 

Bank websites, annual reports, newsletter etc. were used as secondary source of data for the period of three years (2007-2010). Paper concluded that all banking and financial institutes were engaged in social banking and developments of bank approach. Rashmi Rai, Nishu Singla (2011) in their paper highlighted CSR activities as a long term investment of the business. The study was under taken on multinational companies listed on Nifty index. Secondary data were used for studying qualitative approach. For making a good image in the mind of shareholder and sustainable business, companies should focus on CSR.Chinnadurai Dr.P (2014) in his article “Corporate Social Responsibility in India” mentioned the necessity of CSR in India. Different companies in which CSR was functioning were analysed. Suggestion had been given by researcher for corporate in designing of CSR initiatives.

DATA INTERPRETATION & FINDINGS:

Data was interpreted based on responses given by different respondent from different companies/Organization. The different sector companies were selected such as Engineering, Forging, chemical and pharma. The sample size of this study was 25. The analysis was done based on questionnaire filled by different respondent and accordingly findings were prepared.

CONCLUSION

From above analysis it can be concluded that 60%companies/Organization allocate fund for CSR activities. Rest of 40% companies do not allocate any fund for CSR activities.

From the analysis mentioned above it is concluded that 75% corresponding companies evaluate activities for functioning of CSR. Only 25 % companies do not evaluate activities for the functioning of CSR.

From above analysis it can be seen that Most of the companies take investment initiatives in Education, Poverty alleviation, Conservation of nature and Helping the underprivileged people.

From above graph it can be concluded that 55% companies take initiatives in education sector, 72% take initiative in poverty alleviation, 83% take initiative in conserving the nature and 72% take the initiative in helping the underprivileged people.

From the above analysis it was observed that most of the organizations report CSR information to the Government and Board of Directors.

From the study it was concluded that most of companies support CSR activities and allocate fund for CSR activities and take proper initiative for implementation and functioning of CSR activities.CSR helps an organization to maintain balance between social, economical and environmental needs to fulfil the expectation of shareholders and stakeholders. Now day’s companies are taking CSR activities seriously for the development of shareholders and stakeholders.

  •  Measurement of social economical and environmental impact.
  •  Measurement of firm’s policies and practices.
  •  Formulating plans and programs for achieving CSR.
  •  Generating social programs for maintaining CSR.
  •  Measurement of outcomes and performances of an organization.

FUTURE PERSPECTIVE:

  • CSR is one of the most important aspects for sustainability of any business. It is necessary for the researcher to make research for a long time.
  •  Various tools have to be developed for measuring dimension of CSR.
  •  More geographical area must be considered by researcher instead of selected companies.
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Wright’s Thinking American Declaration of Independence

He lived with his parents and other two brothers, Cedric and Roscoe, in a low-state house in the outskirts of Chicago. The family depended on income from ordinary jobs. Among the three children, Wright grew up as rather astute and curious person, a behavior that would always land him into trouble with the boys from his neighborhood. Besides, born at the center of the American Civil War, Wright’s life was defined by the rough experiences of political instability. The war was marked by various oppressive political decisions which were majorly made by the Great Britain. The pre-declaration of Independence was marked by Great Britain’s attempt to tighten its grip on the American thirteen colonies. Consequently, this form of politics greatly shaped Wright’s way of thinking through experiences in a highly volatile environment.

Due to the fact that he was an African American, Wright went to Blue Spring Elementary school which was a pure black school. His father struggled to pay his fees because the mother was just a housewife. The social construct of the American society was marked by racial segregation (Krawczynksi 3). Children from African American communities were not allowed by natural law to attend the same school as the whites. Racism was evident even at places of worship (Lewandowski 24). His family would attend church service in Valley Wood church; the only protestant church for the African Americans in Chicago. Despite these historical impediments, Wright always demonstrated a high level of cognition. His intelligence seemed to be contradicting the then prevailing misconception that African American child had less intelligence compared to their white counterparts. He later joined Illinois College, again, an institution for the pure black and graduated in 1762 when he was 20. He studied sociology. His choice of major was defined by his desire to understand the American society that was at its revolutionary peak. Wright was determined to know how politics influences the societal stability and American racial plurality.

This desire led him to write many essays on political issues affecting the Americans. After graduation, he found a job with a publishing company for the African American literature. When Wright turned 37, he became more attracted to the American post-independence democratization dilemma. After the Declaration of Independence in 1776, Americans started reconstructing their neo-nationalism principles (Reich 278). Wright learned that the Declaration of Independence had established radical political principles which indiscriminately contradicted the common principles of the Declaration. One of the principles declared that the Independence of America was entirely based on the declaration that “all men” are equal (Becker 2). The established radicalism greatly influenced how Wright thought and saw the new political page with a fresh sense of curiosity. As a result, he resorted to sensitizing his community, through his writing on political extremism.

This made him to be arrested and jailed for 20 years. Wright’s life in prison was marked by a complex network of thoughts, beliefs, and new ways of understanding the prevailing political principles. The major dilemma that the American society faced was whether to use natural law to address its social problems or constitutional provisions established in 1789 (Cavalli 3). While constitution allowed fair and equal treatment of all Americans as enshrined in the Declaration of Independence document, the Americans of majority race saw this as a contradiction of the natural law of selection. Wright responded to the whites’ support of natural law rather than respect the constitution with intellectual robustness.

He played an integral part in the formation of civil rights groups that fought the racist approach of the American reconstruction. Cavalli presents the American democratic reconstruction and the aspect of racism with a rather biased approach. In the chapter “Theories of Democracy and Types of Government,” I think he deliberately avoids creating a strong link between American democracy and the racism dilemma. However, he recognizes the fact that the democracy of post-independence addressed the political issues from a general point of view without considering the finer details. Wright’s African American background and the racial biases that he experienced made him to vehemently oppose the desire to perpetuate racist socio-political construction.

The full-blown segregation wave during his schooling days made him to take up the role the town coordinator of Chicago Movement for Equal Treatment, a civil rights group that was opposed to the unfair treatment of blacks in almost all components of the society. Wight respected and believed in social justice. He saw most of the problems of the African Americans as political constructs whose motives were to perpetuate white supremacy. He based his understanding of social justice on John Locke’s philosophy of political construction. In his theory, Locke supported the establishment of political institutions and fundamental principles of universal equality, race or religion notwithstanding (Richardson 101). Because of his belief in John Locke’s philosophy, I think his philosophy on social justice was heavily influenced by the call for universal equality. This made him to be at loggerheads with the authority which was, by this time, composed of the whites. At the time of his arrest, his civil rights group was earmarked as an organization which undermined American democratic values. This was the irony of the American socio-political values. Wright later died in 1805 at 65 years due to liver complications.

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My Desire to be a Free Man

When in the course of human events, it has become necessary for me to emancipate myself from my parents. I have been subjected to sixteen years of my parents’ tyranny which has made my life less than content. I have come to find their incessant nagging intolerable and their rules to be very restrictive. I have reached a point in my life where freedom is more than a “want.” It is a need that can only be met by dissolving the constraining links that have connected me with my parents. I shall now explain the causes of my need to declare independence from my parents. I hold these truths to be evident: that all teens are created equal and have had to live with certain alienated rights, with the most important one being the right to exercise their free will at all times.

This involves, but is not limited to the right to go wherever they please, whenever they please. Additionally, they have the right to choose which chores are important and need to be done at that moment rather than be forced to do tedious tasks. Another vital right is self-governance. They should be able to set their own expectations and do what they can to meet them instead of having to live under their parent’s dictatorship. To prove this, let facts be submitted to a candid world. Thanks to my parents, my social life outside of school is severely lacking. I have been forbidden from going to my friend’s house. I have been restrained from going out to places such as the mall, or the movies with my friends. I have also been prohibited from communicating with certain people simply because my parents “thought it fit.”

Over the years, my parents have hindered my pursuit of happiness by keeping me from being involved with my friends outside of school. They are constantly pushing me to challenge myself and strive to get high honor roll. An A-minus is not enough in the eyes of my parents. An A average only satiates them temporarily. On top of these overly high expectations, my parents expect me to fulfill a handful amount of chores every day. I find it incomprehensible that they expect me to be on top of my school work at all times, yet they are constantly nagging me for not having time to do chores because of my workload. Nor have I been wanting in attentions to my severely restricted life. I constantly plead with my parents to let me out. However, they have been deaf to the voice of reason. I have gone to great lengths, trying to appease my friends. I have done all my chores which did nothing to impress them because they considered it as an obligation rather than a simple courtesy. I have also tried to exceed their academic expectations by doing all my work and getting high honor roll. Unfortunately, they also dismissed my achievements as if I had no other option than to attain them. I, therefore, have concluded that I ought to be free from my parents’ dictatorship.

I hope that by being emancipated from my parents, I might acquire the kind of life, liberty, and happiness that I have been deprived of for the past sixteen years. I hope to be free to spend time with my friends whenever I feel like it. I would also want to be able to choose what chores are worth doing ut at the time and which ones are not. Additionally, I would like to be able to set my own expectations instead of trying to live in my parents’ image. For the support of this declaration, I pledge my life and my freedoms because neither would mean anything under my parents’ strict rule. 

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