Netflix Financial Coursework Example | Topics and Well Written Essays - 1000 words

Netflix Financial - Coursework Example The Company operates its business through three operating segments: Domestic streaming, International streaming and Domestic DVD† (Company Description, 2012). Break-even analysis is one of the simple methods to find out how much of the product in an organization must be sold to create a specific level of productivity. â€Å"At the breakeven point of a business, income is equal to expense, and therefore there is no gain or loss. It is the starting point from which an increase in sales or a reduction in costs generates a gain, and a reduction in sales or an increase in costs generates a loss† (Hagen, 2008). â€Å"At the breakeven point: revenue = fixed costs + variable costs† (Hagen, 2008). So, in order to compute the breakeven point, it is necessary to determine every fixed and variable cost that has been involved in the operation. Fixed costs are those costs that are invariable, and that should be paid in spite of the level of sales. At the same time, variable cos ts are incurred in percentage, to the level of sales. The analysis is carried out by a business to find out the number of units which require to be sold for a particular price, to enable the company cover the total cost connected with production. The study recognizes the break even point, which is in fact the point at which the company doesn’t create any loss or profit. 2008 2009 2010 2011 No. of units sold 194 167 596 684 Total revenue 1364.7 1670.3 2162.6 3204.6 Total variable cost 899.1 1269.5 732.2 1563 Contribution margin 465.6 400.8 1430.4 1641.6 Fixed cost 100 100 100 100 Break even unit 41.66666667 41.66666667 41.66666667 41.66666667    Sales 2008 1550.06 2009 1334.33 2010 4762.04 2011 5465.16    Profit 2008 83 2009 115.9 2010 160.9 2011 223.1 Contribution Margin per Unit = $2.4 Fixed cost of Netflix is assumed to be zero price per unit= $7.99 BEU= Fixed Cost/Contribution Margin Cost–Benefit Analysis (CBA) is also called Benefit–Cost Analysis (BCA). It is an organized process for comparing and computing advantages and costs of a project, judgment or government guidelines. â€Å"Cost Benefit Analysis Template provides a simple tool for calculating financial futures. With its familiar layout and excellent direction, this program makes financial forecasting simple enough for even novices† (Cost Benefit Analysis Template, 2009).    Total cost    2008 999.1 1364.7 2009 1369.5 1670.3 2010 832.2 2162.6 2011 1663 3204.6 1). How does the article suggest that business thinking and practice has evolved since the exhortations for business process reengineering in the 1990s? Part 2: (1) How the article does suggest that business thinking and practice has evolved since the exhortation for BPR in 1990? Davenport & Short (1990) describe the term business process as "a set of rationally connected tasks carried out to accomplish a defined business result." A process is "a structured, measured set of activities designed to produce a sp ecified output for a particular customer or market. It implies a strong emphasis on how work is done within an organization" (What is Business Process?, n.d.). In their view, there are two significant characteristics of processes, and they are: (i) They have clients (external or internal), (ii) They cross organizational borders, i.e., they occur across or among organizational subunits. One method for recognizing business processes in a company is the value chain method recommended by Porter and Millar (1985). The idea of BPR has

Performance Management Essay Example | Topics and Well Written Essays - 1250 words

Performance Management - Essay Example Performance management is a process that came into the scene during the period of 1980s and continues to impact the business environment (Armstrong, 1998, p.47). This research paper will focus on the topic of performance management while focusing specifically on the subjects of its definitions, purpose, benefits as well as methods used to conduct this process. Definition of Performance Management Researchers have provided the world of business with several definitions of performance management. For example: Samsonowa defines performance management as a process that is conducted on continuous basis in order to attain the objective of improving individual’s performance of tasks while involving activities including setting of goals, providing feedback along with reinforcing behavior as well as training of employees (Samsonowa, 2011,p.33). According to this definition the process of performance management is conducted with the sole aim of enhancing individual task performances by providing certain aims and targets to employees for achievement and ensuring that these targets are met by providing training and development to employees and if employees fail to attain those targets, they are provided with further training and development in order to decrease their performance gaps. The definition even pays emphasis to involvement of feedback, rewards as well as punishments in order to reinforce behavior. This means that with the assistance of performance management, employers first identify how well employees have performed and if they perform according to set targets and standards, they are provided with rewards to ensure that similar behavior occurs again in future and if they fail to attain targets they are punished in order to ensure that certain behaviors are not repeated. Purpose of Performance Management The process of performance management and creation of performance management systems is done on the basis of either one or of the two purposes or for both the purposes including administrative/decision making purposes and developmental purposes (Smither, 2009). When performance management is conducted for the purpose of decision making/administrative purposes the aim of the organization is to use the process to document the performance of individual employees and to make decision regarding the rewards and punishments to be offered to employees. The rewards and punishments that might be offered to employees on the basis of the process of performance management may include promotion or downgrade of an employee from one position to another increasing or decreasing compensation and benefits of the employees in order to either reinforce their performance or encourage them to perform better in future. On the other hand when the purpose of conducting performance management is developmental in nature, current performance of individuals is compared to either historical performance or set targets and if a difference between current and budgete d performance is figured out, employees are provided training and development in order to close the gap in performance levels. Both purposes have their own strengths and the purposes cannot be rated in order to figure out which purpose is more effective and efficient. Advantage of the Process of Performance Management One of the main benefits of performance m