Analysis and Cost-Benefit Chart for Netflix - Coursework Example

?Netflix Financial Affiliation with more information about affiliation, research grants, conflict of interest and how to contact Netflix Financial 1) Please retrieve and create the break even analysis and cost benefit chart for Netflix. Netflix is one of the American suppliers of no-demand media of internet streaming in UK, USA, Latin America, Canada, and the Caribbean. “Netflix, Inc. is an internet subscription service company, which provides subscription service streaming movies and TV episodes over the internet, and also sends DVDs by mail. 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. “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). “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 costs 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. “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 specified 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 been there since 1990; on the other hand it is widely misinterpreted and has been equated to downsizing, quality, client/server computing, and various other types of management nostrums of the past several years. (2). Summarize the benefits for BPM discussed in the article. The case study provides various modern viewpoints or approaches to improve business processes using information systems. BPM Software in an organization is one of the powerful instruments for managers to manage, document, and examine critical procedure, and then to develop them. BPM software offers the tools to facilitate organizations to study, analyze, and develop their processes, with a procedure being anything that transforms materials and resources into the form of services or products. This software also offers the technological foundation that facilitates mobility and communication of various types of data across applications. BPM software can be employed as the technology to facilitate the use of the best practice procedures, reliable and repeatable. The technology used is an organization is an investment that can offer enormous business advantage to the organization; on the other hand, the tangible value of the business connected with BPM is normally not well-understood. This software is to help and develop the effectiveness of the daily business processes, procedures, and actions. It also helps decrease costs across every aspect of the business, with its abilities to incorporate and examine present applications, processes and systems. BPM technology brings about various other advantages that cannot be attained by traditional procedure improvement techniques. It enables the practice of enhancing the effectiveness and efficiency of any business establishment by automating the company’s business processes. BPM software binds the various activities of the process, and implements the process from start to finish.BPM software, as a technology, can deliver nonstop and endless advantages to company, irrespective of its size. Yet, more prominently, these advantages will be unique to the company. As businesses grow up, so do their business processes. To assist and control these, entire business processes look to this software, as this software offers the benefits required to attain business process objectives. The Advantages in the BPM Software: “Standard or customizable forms, and templates to simplify new or current business processes, Integration and collaboration between other business, and IT systems or applications, The ability to use workflow to help automate processes, Real-time and graphical monitoring and Reporting depending on the vendor, Integration of web enabled services, Organization and standardization between business processes” (What is Business Process Management, 2001). Reference List Company Description, (2012). MarketWatch, Inc. Retrieved from http://www.marketwatch.com/investing/stock/nflx/profile Cost Benefit Analysis Template, (2009). Download.com. Retrieved from http://download.cnet.com/Cost-Benefit-Analysis-Template/3000-2077_4-10921909.html Hagen, K. (2008). How to Calculate the Breakeven Point for Your Business. Yahoo. Retrieved from http://voices.yahoo.com/how-calculate-breakeven-point-business-835979.html?cat=3 What is Business Process Management, (2001). Globusz® Publishing. Retrieved from http://www.globusz.com/ebooks/Supply/00000015.htm What is Business Process?, (n.d.). Process Driven. Retrieved from http://processdriven.livejournal.com/ Read More