Netflix

here is what I need ;

OVERVIEW – Provide a brief history and overview of the firm that will provide context for the strategic audit.

I.CURRENT SITUATION

Discuss the performance of the corporation over the past year in terms of ROI, market share, and profitability.

(!) Important: In this section, keep in mind the following flow:

Vision/mission leads to objectives.Objectives are achieved through strategies.Strategies are supported by policies.

(!) Important: To be effective, a mission statement should address three factors:

• WHAT need is being satisfied – Defines the products or services.
• WHO is being satisfied – Defines markets or customer groups.
• HOW customer needs are satisfied – Defines the technologies used and the functions performed.

Examples of Strategic Objectives

• A bigger market share
• Lower costs relative to key competitors
• Broader or more attractive product line than rivals
• Increased ability to compete in international markets
• Expanded growth opportunities

(!) Important: Both financial and strategic objectives should include timeframes (e.g., “lower costs relative to key competitors by the fourth quarter of 2004.”)A company should have both short-run and long-run objectives:

• Short-run Objectives – Target performance levels to be achieved soon (usually within a year).
• Long-run Objectives – Target performance levels to be achieved later (within three to five years).

Examples of Financial Objectives

• Achieve revenue growth of 10% per year
• Increase earnings by 15% annually
• Increase dividends per share by 5% per year
• Boost annual returns on invested capital from 15% to 20%
• Improvement in bond and credit ratings

• Low Levels of Diversification
• Moderate to High Levels of Diversification
  • Related Constrained – Less than 70% of revenue comes from the dominant business.All business units share product, technological, and distribution links.
  • Related Linked – Less than 70% of revenue comes from the dominant business.There are only limited links between the businesses.
• Very High Levels of Diversification
  • Unrelated – Less than 70% of revenue comes from the dominant business.There are no common links between the businesses.

(!) Important: Corporate-level strategy should increase the firm’s value by enhancing its ability to earn above-average returns.Identify if this is occurring with the present strategy, and if so, how?

• Cost Leadership – Providing goods or services with acceptable features at lowest cost relative to competitors.Example: Wal-Mart.
• Differentiation – Providing goods or services that are perceived to be substantially different with respect to what is valued by customers. Example: Lexus.
• Focused Cost Leadership – Cost leadership, as defined above, that is focused on a particular competitive segment.Example: Crystal.
• Focused Differentiation – Differentiation, as defined above, that is focused on a particular competitive segment.Example: Porsche.
• Integrated Cost Leadership / Differentiation – Simultaneously providing cost leadership and differentiation.Example: Southwest Airlines.

• Offensive (Strategic Actions) – Designed to build competitive advantage or improve market position.
• Defensive (Strategic Response) – Designed to defend competitive advantage or recover market position. Examples: Guerilla Strategy, Retrenchment, Harvest, Liquidation, Second/Late Mover, Market follower

• Are relatively easy to implement and reverse.

Example: A local company would be acting strategically if it built a dozen new gas stations in a city.One of the stations could then act tactically if it lowered the price of each of its grades by a penny.

Example: A business unit has chosen the generic business strategy of differentiation.It differentiates itself through superior customer service.Any significant policies concerning the superior treatment of customers should be noted e.g. not saying “no” directly to a customer.

In addition, note any other key policies of the organization.Examples: Affirmative action, safety, security, quality, ethics, social responsibility, sexual discrimination policies, minority and women-owned businesses etc.