HRM Essay Example | Topics and Well Written Essays - 1250 words

HRM - Essay Example Only a manger with outstanding skill can identify the required changes right way. If a company fails to understand the required changes, it would confront with crises as it misunderstands the symptoms as real issues to be addressed. The following part of the paper will discuss how a company can identify the need for change from its internal and external environments. 1. Unusual decline in turnover: this is the basic sign that would prompt every firm to identify the range of business profitability. Organizations usually review previous years’ audited balance sheet with intent to investigate the prevailing business trend as well as the organizational sustainability. In the same way if the operational cost is found exceeding the profit derived from the business, it indicates the need for some strategic changes in the business operation. However, the specific area of change can be identified only through further scrutiny. Presumably, most of the problems, no matter associated with fiscal aspects or market backlashes, are attributed to HR failure. 2. Strategic failures: If some of the recently implemented marketing strategies are not well responded, the company should review them to identify the causes of failure. Failure may not be necessarily due to their inaptness but can happen because of numerous direct or indirect factors related to business. As far as the internal environment is concerned, a well designed strategy can be defeated just by the mibehaviour of one or more individuals. In other words, how well a strategy is implemented is more important than the quality of its design. 3. Unethical practices: Organizational misconduct is an important symptom that indicates the inevitability of change, perhaps specifically in the area of HRM and organizational structure. Most of the fraudulent activities occur due to the inefficient internal communication and auditing. Modern organizations heed genuine concern to enhance internal communication by integrating various departments with the help of web-based technologies. By doing so they can easily manage the problems associated with information sharing and problem solving. Diagnosing the cause is not the end but the initial step of any treatment process. Once the need for change is identified a firm has to proceed with designing and implementing relevant changes that would enhance the overall cohesion of the organisation. There are numerous issues an organisation has to take into consideration while initiating changes. As Dunphy (249) warns, most important one among them is to address employees’ resistance to change which would raise several ethical concerns. An organisational culture that was formed over years cannot be altered overnight. A change can take place successfully only if people in an organisation realise that the organisation must change its current culture and practices in order to ensure the firm’s sustainability and progress. However, the process requires mem bers’ deep understanding of the need for change, their commitment to accomplish it, and the effective way of deploying it. The understanding refers to the knowledge about the current culture and its impacts on the firm, the anticipated benefit of the new system, and the real goal it would achieve. This knowledge can be acquired by reviewing the extent to which the current culture has helped the firm to meet its mission, vision, and values with regard to business aims and social concerns. 2 Organisations

Financial Analysis of Netflix Essay Example | Topics and Well Written Essays - 1250 words

Financial Analysis of Netflix - Essay Example In 1999, monthly subscriptions model was introduced and the reputation of the firm grew as a flat- fee rental with no due dates and late fee. Netflix has to its credit the personalized movie recommendation system which suggests choices to users based on their previous purchases. Also mentionable is the fact that Netflix user base has increased every year from the date its conception by over 50% from past years till 2005. After 2005, the number of subscribers continued to increase but at lower rates. (Netflix, 2012) Netflix also partnered with certain electronics companies to make streaming possible on the PS3, TVs with internet connections, Xbox 360, Apple iPhones, iPads, iPods and other internet connected devices. (Netflix, 2012) Researches showed that in 2011, 61% of the digital video market clintele belongs to Netflix. (Stambar, 2011) in 2011, Netflix is the highest revenue earner in the United States. (Frankel, 2012) This data clearly shows that as of right now, Netflix is a mark et leader. INCOME STATEMENT (Business Week, 2012)    31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 Revenues 1,364.70 1,670.30 2,162.60 3,204.60 TOTAL REVENUES 1,364.70 1,670.30 2,162.60 3,204.60 Cost of Goods Sold 910.2 1,079.30 1,357.40 2,039.90 GROSS PROFIT 454.4 591 805.3 1,164.70 Selling General & Admin Expenses 249.4 286.6 358.3 520.6 R&D Expenses 89.9 114.5 163.3 259 Other Operating Expenses -6.3 -- -- -- OTHER OPERATING EXPENSES 332.9 401.2 521.6 779.6 OPERATING INCOME 121.5 189.8 283.6 385.1 Interest Expense -2.5 -6.5 -19.6 -20 Interest and Investment Income 9.2 4.8 2.7 2.8 NET INTEREST EXPENSE 6.7 -1.6 -16.9 -17.2 Other Non-Operating Income 0.1 -- -- -- EBT, EXCLUDING UNUSUAL ITEMS 128.4 188.2 266.7 367.8 Gain (Loss) on Sale of Investments 3.1 1.9 1 0.7 Other Unusual Items, Total -- 2.1 -- -9 Legal Settlements -- 2.1 -- -9 EBT, INCLUDING UNUSUAL ITEMS 131.5 192.2 267.7 359.5 Income Tax Expense 48.5 76.3 106.8 133.4 Earnings from Continuing Operations 83 115.9 160.9 226.1 NET IN COME 83 115.9 160.9 226.1 Talking about the income statement of Netflix, the trend of revenues has certainly taken a great boost since 2006 from 1365 million dollars to 3205 million dollars in 2011. Growth in revenue certainly is a positive sign for any company. Netflix has achieved huge numbers during the four years. The cost of sales has also risen but looking at the overall gross profit margin, we see a rising trend. Expanses look pretty much under control and would not had been a point of concern for Netflix. The change in the income statement which was very obvious was the interest charges which rose by big number from (1.6) in the year 2008 to (16.9) in 2010 and (20) in 2011. This means that Netflix has taken huge amount of loans in 2010 and have retained them in 2011 as well. In the income statement, we can also see that the investment’s income earned has also decreased since 2006. This means that Netflix have taken out all the investments it had made outside its compa ny. Net income also shows a positive growing trend. From the income statement, we can say that Netflix is growing and has profitable numbers. BALANCE SHEET (Business Week, 2012)    31-Dec 31-Dec 31-Dec 31-Dec Currency in Millions of US$ 2008 2009 2010 2011 Assets             Cash and Equivalents 139.9 134.2 194.5 508.1 Short-Term Investments 157.4 186 155.9 289.8 TOTAL CASH AND SHORT TERM INVESTMENTS 297.3 320.2 350.4 797.8 Prepaid Expenses 26.5 26.7 62.2 56 Deferred Tax Assets, Current -- -- 2.2 10 Restricted