Management & Change

Change is any alteration in the internal or external environments.

This includes: consumer tastes, production methods, markets or products.

In response to these changes, many busnesses have undergone organisational change in which they adopt a new idea of behaviour which results in a different in the form or operation of an organisation over time.

This could be changing: cor5porate culture, organisational structures, skills or development.

Internal and external influences create a never-ending pressure for change from a business.

Internal:

management/new leadership
employees
coporate culture
acquistions and mergers
resource capacity

External:

competition (price, new business, etc.)
Legisaltion (government policies, e.g. lockout laws)
Technology (cost cutting, efficiency, AI)
Social (trends, values, attitudes)
CSR

Think: PESTEL → Political ,Economical, Social, Technological, Environmental, Legal

Case Study Research Task: Netflix

Question:	Response
Then vs. Now	Netflix began in 1997 as a DVD rental service, specifically a DVD- by-mail rental service, shipping out 1 million DVDs per day. From the beginning, Netflix was set out to become a streaming service with the company launching a complete media streaming in January 2007, introducing video on demand via the Internet. There were only 1000 films available on this service compared to the 70, 000 on DVD. Eventually, Netflix shifted from physical media to online streaming only, shifting form desktop to TV and more. Now, Netflix is the most-subscribed video on demand streaming service with 325 million paid memberships in more than 190 countries as of 2026.
Social Changes &their response	A social change that happened was a growing cultural reckoning regarding how algorithms manipulate user behaviour, harvest data, and impact mental health. Netflix released the highly impactful documentary The Social Dilemma, which sparked global conversations about internet safety and digital detoxing. Heightened societal concern over the influence of online influencers, misogyny, and incel subcultures on teenage boys. The platform released the miniseries Adolescence, which tackled toxic masculinity head-on and prompted global debates among parents, schools, and policymakers regarding teen digital safety.
Technological changes & their response	Technological changes of Netflix include the shift from traditional TV and DVDs to online streaming services, where viewers have the ability of pausing and continuing at any time, which led to a response of individuals watching content anywhere on any device. The technological innovation resulted in an increased demand for on – demand entertainment rather than TV schedules, which enhanced binge watching, making it more common due to full season releases. There was a rise of high – speed broadband, mobile devices, and smart TVs. This changed how consumers accessed media. Netflix’s strategy was "ubiquity" partnering with hardware manufacturers to pre-install the Netflix app across almost every internet-connected screen. In the early 2000s, slow dial up internet made digital movie delivery impossible, so Netflix responded by launching its “watch now” streaming service in 2007.
Legal: licencing agreements	Netflix licenses their TV shows and movies from global studios for fixed periods, which drive their constant rotation of their catalogue. These contracts are limited-time leases. When a license expires, Netflix must pull the content, though they often renew, high-performing shows. As well as this, rights are negotiated per territory, hence why some shows/movies are available in other countries/regions and others aren’t.
Netflix’s competitors, what differentiates them, & how they have adapted?	Two of Netflix’s competitors are Amazon prime video and Disney Plus. Amazon prime is different through its business model. Amazon uses virtually unlimited resources to bid on premium live sports and blockbuster content, making it less reliant on standalone subscription profits. Disney plus is different because it has a multi – generational property like Marvel, Star wars and Pixar and focuses on more family friendly shows instead of individual watches.
2022 Job Cuts influences and why	In 2022, Netflix cut of approximately 450 employees in two major rounds of job cuts - 150 lost in May, 300 lost in June - which is the first time in 10 years that Netflix lost subscribers. The loss of subscribers reduced confidence in future growth, reflecting on slower revenue growth which led to Netflix wanting to reduce spending + costs, while rising prices and economic pressures encouraged some user to cancel their subscriptions. These issues significantly influence job cuts in Netflix.