Factors of Organizational Success & Corporate Failure

“Factors of Organizational Success & Corporate Failure”

Orobah Fakhouri, Narkell James, Vadim Dyachenko, Sasha Seyed

LDR 531

Lola Jackson

5/17/2014

Introduction

How can organizational behavior relate to a business’s level of success? There are several factors companies need to analyze when developing a plan to move the company past the competition. In the past five years, the movie going experience has changed dramatically. With ticket prices at an all time high, more people are relaying towards DVD’s and online movie streaming. Netflix and Blockbuster Video are two companies who are in the same line of business even though they have different strategies on how the business functions. Netflix’s business model is based off of consumer streaming videos directly from the Internet for a monthly fee of $7.99. Blockbuster video is more of a traditional company with store front locations. Blockbuster’s business model focuses on physical copies of all DVD’s and Blue Ray movies, giving the consumer a wider selection to choose from. It is nice to have a wider movie selection to choose from but store fronts will have more overhead, leading to additional costs added in to rental costs. With Blockbuster Video charging their clients five times as much as Netflix does to their client base, there really needs to be an added incentive for clients to choose Blockbuster over Netflix. Organizations need to stay competitive in today’s business world. Change can be the answer to a failing business but recognizing the companies need for change is what most fail at. When discovering what it takes for a business to continue in the path of success versus the direction towards bankruptcy, it is important to review company objectives, leadership styles, and whether the organization takes a corporate or carefree structure towards their business model.

Organizational Success - Netflix

Organizations with strong objectives, vision, and mission, are more likely to succeed. The...