NETFLIX Company Analysis
Michael M. Akers521
June 3, 2011
Academic Crib Sheet
Continue your business analysis using the company you selected in Week Four.
Write a paper no more than 2,400 words in which you research the company’s business environment.
Review the company’s income statement, balance sheet, and cash flow to determine the financial health of the company. Be sure to compare your company to at least two other companies in the industry. Be sure to answer the following:
• What have you learned about the company by reviewing each statement? • Is there information in any of these statements that concerns you? If so describe what it is and what it concerns. • How can management use this information moving forward?
Summarize the company’s financial health. How does it compare to other companies in the industry?
Include a summary of the company’s technological advantages, or lack thereof, in comparison to at least two other companies in the same industry.
Describe how globalization has affected the company’s business strategies.
Conduct a benchmarking analysis. Be sure your analysis includes the following in comparison with other companies in the same industry:
• Best practices
• Operational processes and procedures
• Products or services
Format your paper consistent with APA guidelines.
For financial analysis Netflix has to make more Technological advances, including non-technical ones, are coming more quickly than ever before, thereby affecting all aspects of a typical company. As network computing technology progresses, there are increasing pressures to create a new type of workplace. The current workplace will experience a transition that will fragment it into myriad on-site and off-site offices. Not only will the work environment change dramatically in the 21st century, but there will also be a need for business systems to support the new work environments. A body of information organized into a coherent framework forms the basis for the creation of knowledge. For example, an annual report forms the body of knowledge for financial accounting. Typically, knowledge about a company’s financial position is impossible without a framework to organize ratios derived from accounting data and information in the balance sheet, income statement, and cash-flow statement. Knowledge comes from insight and understanding of the underlying structure of financial information. It requires expertise to interpret financial results in a creative way. Overall, while information is data about the data, knowledge is basically information about information. Data mining, also known as knowledge discovery, explores the knowledge held within a company’s database by revealing patterns and trends that can suggest improved performance in terms of greater customer satisfaction, higher quality products, savings, and profits. In effect, data mining uncovers hidden patterns and provides predictive trends which can be easily applied to benefit the business. Since the raw materials for data mining are abundant, data contains records that could potentially reveal hidden patterns and predictive trends that could further a company’s mission, its objectives, and its measurable goals. Sales records, for example, could reveal highly profitable retail sales patterns. In turn, financial analysts could find future trends that are highly profitable. As another example, an engineering firm could determine the combination of data conditions (e.g. manufacturing time, lot size, assembly parameters, operator number, reject rate, etc.) that determine the quality of the products being produced. In the final analysis, the key to successful data mining is to employ those tools that result in real knowledge discovery (Dewhurst and Burns, 1993). To discover meaningful patterns in a data set, consider, for example, gross margins that are stored in a retail sales database. Gross margins fluctuate...
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