How does Netflix’s internal culture negatively or positively affect their ability to stay competitive and deliver cutting edge content?

Understanding Business
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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How does Netflix’s internal culture negatively or positively affect their ability to stay competitive and
deliver cutting edge content?

The offender, Jonathan Friedland attempted to apologize for his misdeed, hoping it would fade away and his apology
would be accepted. However, it didn't work that way, instead the anger was palpable between co-workers, and
eventually led to the firing of Friedland after a few months of inaction.
Netflixers are given a high level of freedom and responsibility within their "Netflix way" culture. Blunt feedback is
encouraged, trust and discretion is the ultimate gate keeper, as employees have access to sensitive information, and
are ultimately trusted for how they expense items and take vacation time.
Between the insanely fast-paced streaming services industry, it is hard to keep this culture at a premium, but it is
imperative for the success of the company overall. "As you scale a company to become bigger and bigger how do you
scale that kind of culture?" said Colin Estep, a former senior engineer who left voluntarily in 2016. “I don't know that
we ever had a good answer."
In order to keep up, sometimes the company is seen as harsh in their tactics to keep the best of the best. "I think we're
transparent to a fault in our culture and that can come across as cutthroat," said Walta Nemariam, an employee in
talent acquisition at Netflix, in the video.
Netflix has stayed true to their cultural values despite the pressures and sometimes negative connotations associated
with this "cutthroat" environment. Their ability to remain agile, while displaying no tolerances for societal injustices
makes them at the forefront of new age companies. It is a difficult pace to stay in line with, but it seems that they are
keeping in stride and remaining true to who they are, for now.
Transcribed Image Text:The offender, Jonathan Friedland attempted to apologize for his misdeed, hoping it would fade away and his apology would be accepted. However, it didn't work that way, instead the anger was palpable between co-workers, and eventually led to the firing of Friedland after a few months of inaction. Netflixers are given a high level of freedom and responsibility within their "Netflix way" culture. Blunt feedback is encouraged, trust and discretion is the ultimate gate keeper, as employees have access to sensitive information, and are ultimately trusted for how they expense items and take vacation time. Between the insanely fast-paced streaming services industry, it is hard to keep this culture at a premium, but it is imperative for the success of the company overall. "As you scale a company to become bigger and bigger how do you scale that kind of culture?" said Colin Estep, a former senior engineer who left voluntarily in 2016. “I don't know that we ever had a good answer." In order to keep up, sometimes the company is seen as harsh in their tactics to keep the best of the best. "I think we're transparent to a fault in our culture and that can come across as cutthroat," said Walta Nemariam, an employee in talent acquisition at Netflix, in the video. Netflix has stayed true to their cultural values despite the pressures and sometimes negative connotations associated with this "cutthroat" environment. Their ability to remain agile, while displaying no tolerances for societal injustices makes them at the forefront of new age companies. It is a difficult pace to stay in line with, but it seems that they are keeping in stride and remaining true to who they are, for now.
Today's news is littered with scandals, new allegations of sexual assault, and tragedy.
Since 2017 and the #metoo Movement, stemming from the Harvey Weinstein scandal, more
and more public figures have been put into the spotlight to defend themselves against allegations from women around
the globe.
Not only publically, but privately in companies around the world, there have been firings, and investigations into
misconduct from co-workers, managers, and CEOS. It is a relevant topic that is getting long overdue publicity and
encouraging more men and women to come forward to discuss openly rather than hide the events and injustices of the
past. Other events showcase the tumultuous and on-edge society we are living in, such as the Charlottesville, VA
attack, that left 1 dead and 19 injured whena person drove a car through a crowd of protestors during a white nationalist
gathering.
With events on a daily business, it is important for companies to take a stand against racial hatred, harassment of any
kind, and have firm policies when such events occur. Take Netflix for example, who in July of 20 18 fired chief
communications officer for saying the "N-word" in full form. This event occurred during an internal meeting, not directing
the slur at anyone specific, but claimed it was being made as an emphatic point about offensive words in comedy
programming. The "Netflix way", the culture that is built around radical candor and transparency was put to the test
during this occurrence.
Transcribed Image Text:Today's news is littered with scandals, new allegations of sexual assault, and tragedy. Since 2017 and the #metoo Movement, stemming from the Harvey Weinstein scandal, more and more public figures have been put into the spotlight to defend themselves against allegations from women around the globe. Not only publically, but privately in companies around the world, there have been firings, and investigations into misconduct from co-workers, managers, and CEOS. It is a relevant topic that is getting long overdue publicity and encouraging more men and women to come forward to discuss openly rather than hide the events and injustices of the past. Other events showcase the tumultuous and on-edge society we are living in, such as the Charlottesville, VA attack, that left 1 dead and 19 injured whena person drove a car through a crowd of protestors during a white nationalist gathering. With events on a daily business, it is important for companies to take a stand against racial hatred, harassment of any kind, and have firm policies when such events occur. Take Netflix for example, who in July of 20 18 fired chief communications officer for saying the "N-word" in full form. This event occurred during an internal meeting, not directing the slur at anyone specific, but claimed it was being made as an emphatic point about offensive words in comedy programming. The "Netflix way", the culture that is built around radical candor and transparency was put to the test during this occurrence.
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