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Management Essentials Report Netflix
Management Essentials Report Netflix
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MANAGEMENT ESSENTIALS
Summative Assessment
2
Table of Contents
Introduction 3
Mission 3
Values 4
Critical assessment on alignment of the mission, values, and preferred style of management
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Conclusion 15
References 17
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Introduction
In the current competitive atmosphere for becoming successful, organizations are looking
towards better management procedures to be adopted. The better management within
companies ensures optimum utilization of resources, planning, elimination of wastage,
earning efficiency and productivity in all business operations (Crostack, Klute and
Refflinghaus, 2011). Besides, new talent acquiring must be a focus because currently several
issues are found. For example, lack of management leads to failure in terms of revenue
earning, economic constraints, lack of client base, and bad publicity affecting reputation
(Huscroft et al., 2013). Therefore, a good management practice is required by the
organizations to hold competitive edge respectively.
A good management practice is defined as, “practice, procedure and tool which offers to
proceed towards desired performance by help of environmental outcomes as it gets evolved
through time resulting in continuous improvement in terms of information, technology and
awareness in industry” (Benson, 2014). Thus, it is important to re-evaluate management
practice and making changes for achieving success within the companies.
Netflix is American over the top content platform and production company with primary
business focuses on subscription streaming service online for films, TV series, and produced
in-house with around 208 million subscribers (Pilipets, 2019). For this given case, the
purpose of the study is to determine current management practice at Netflix for retaining the
top global talent for continued success as the world’s largest entertainment and media
company. Henceforth, some major aspects are covered in the report including reflection on
management practise, Key Business Challenge, Impact of on Employee Engagement and
Organisational Performance, as well as management of value alignment respectively.
Mission
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#2 Global Dominance
Another mission in longer run is to globally dominate OTT platform space as it provides
reach in more than 30 languages and 190 countries around 73.94m users in the US and
Canada, 66.7m in EMEA, 37.54m in Latin America, and 25.49m in the Asia Pacific (Rivera,
2019).
The corporate mission put highlights on the entertainment industry success with thriving of
consumer expectations and preferences. The first aspect of mission statement showcases that
company needs to become successful in terms of entertainment business with different
categories broadly identified including movies, series, documentaries performance art, stage
plays (Business Strategy Hub, 2021). Therefore, mission statement focuses on Netflix
operations and strategic plans required to broad the Netflix operations. On the contrary,
second aspect focuses on worldwide reach of audience with company association should be
achieved. For example, movie streaming business should expand on larger global scale for
which company want to explore in large space (Rivera, 2019). Henceforth, Netflix aims to
expand organisational structure by offering expansion across the globe for diverge audience
and markets.
Values
The core Netflix values focuses on specific behaviours of skills of employees rather than
organizational structure aspects. It includes ten core and fundamental values described below.
Communication: Secondly, communication is core value of Netflix which offers better global
expansion. For example, for achieving effective communication style and engaging globally,
company have focused on non-English content for the viewers worldwide. The increasing
network could incorporate different content, cultures and regions as entertainment service
(Peakon Post, 2021).
Curiosity: The company always decides to integrate new opportunities and thus curiosity is
another core value to be seen.
Courage: The Netflix’s another core value to taking risks and associating themselves with
uncomfortable decisions. The employees who performed well get rewards and praise of better
work done with appreciation (Peakon Post, 2021). The new programs for with no vacation
policy is instilled as employees could take leave for some time and again re-join effectively.
Impact: The core value of Netflix showcases that performance in business operations could
improve the overall success. The staff and employees are not controlled however they are
appreciated for bringing new ideas (Peakon Post, 2021). Thus, new changes impact them to
bring new ideas and incorporate in business operations making HR practices strong.
Innovation: The core value of innovation in Netflix is based on developing new ideas to
resolve problems. The concept of video stream platform was innovation and brought
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consumers nearby accessing content much faster as compared to DVD launch which takes
more than 1 year to access locally at shops. Besides, subscription starts for different devices
in a range affordable by viewers easily.
Integrity: The company always offers the content which is original and operates in business
aspects with same core value. For example, transparency and originality by not hurting any
person, group or religion is incorporated by new and authentic content. The stories are not
authorized or accessed by copyright issues and content is always unique in terms of
presentation to viewers.
Inclusion: Netflix follows this core value by providing new options and diverse
collaborations, backgrounds and cultures. For instance, one movie per week in local and
regional language have been supported by the company. It also creates regional support and
offers content in different languages with unique and authentic themes respectively.
Passion: The emotional connection with audience is highly appreciated by Netflix as core
value respectively. The application platform adopts recommendation engine from which an
algorithm predicts best content like movies, documentaries, series, and viewership
(TheBrandBoy, 2021). As a result, consumers also get affected by search engine to gauge
their emotions and personal connection from video streaming platform. Hence, personalized
offerings and customization also builds good connect with audience for identification of
content.
Selflessness: Some organizations only focus on profit minded streaming towards OTT
platform which differs from Netflix’s core principle. The company has kept an ad-free
platform even though a lot could be gained from paid ads. The viewers' experience has been
kept as top priority by developing valuable business skipping ads (TheBrandBoy, 2021).
Also, the organization have kept minimal subscription mode as per the device availability.
Hence, consumers are kept as topmost priority as per alignment of company’s motives.
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from employee experience and achieving success from new creative ideas (Moskovich, and
Palgi, 2015).
Thus employees following an autonomous approach has been adopted by the workforce in
Netflix to manage work driven environments with employees respectively. For example,
Netflix has eliminated formal reviews among managers and employees and focuses on
creating value by discussing performance and work interactions (Zhang, Cao and Tjosvold,
2010). Rather than focusing on traditional corporate practices such techniques will offer
culture positively by motivation, positive attitudes, behaviour and performance.
All three elements, mission, values and preferred style of management like democratic follow
each other due to a common approach of incorporating employees in the decision making
process. Netflix as a company holds entertainment and global dominance as the primary
mission to accomplish among the consumers. The value and democratic management is
aligned with mission by offering encouragement and motivation among employees to adopt
new goals for accomplishing. The value is based on skills and behaviours of the employees
who could help to create business ideas making Netflix more successful. Furthermore, with a
strong mission goal and value belief, the democratic style of management becomes easier to
execute.
To explore the concept of democratic style of management, the manager takes inputs from
employees on business operations, feedback, and full participation for new opportunities
(Dragilev, 2018). With Netflix’s vision is to transform the company’s growth, democratic
style of management offers employees an equal weightage to complete this objective. The
mission and values also demands the employees to take forward initiative and support the
company for making it successful in the entertainment business. Therefore, employees focus
on creating value within Netflix with new and resources to earn extreme success in terms of
business process management.
The adoption of democratic management as management style for Netflix was chosen to
uplift motivation, morale and job performance of employees through different mechanisms. It
also incorporates an atmosphere for managers to create so that employees could follow it as a
form of inspiration (Mitonga-Monga, Flotman, and Cilliers, 2018). In the case of the Netflix
company, this type of management aligns mission, and core values completely. For example,
change could be adopted with democracy such as Reed Hastings makes employees accept
organizational commitment through decision making, loyalty for articulation of vision, and
offering support in creating something better (Avolio and Yammarino, 2013). As employees
are involved in smaller decisions, democratic style has made them more committed to task,
followed by success in the entertainment business. Hence, there is a positive relationship
between democratic style and commitment is made to get successful alignment of mission
and objective completion.
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Task 2 – Key Business Challenge for Netflix
With an increasing competitive edge, in the Netflix organization several issues are also
developed. First of all, the current competition in the company occurred due to different
packages offered by rivals. For example, Netflix have exclusive offering to stream
subscription services whereas Amazon’s prime video subscription package does not have
extra charge for selected product with free shipping from purchasing catalogue (Sebag
Montefiore, 2019). Henceforth, increasing competition have challenged company to add extra
perks with their consumer offering. Additionally, content from different services make
company highly qualified and works as an important factor respectively. Another competitive
challenge is due illegal piracy of content offered. The pirated content to available which
makes it difficult to overcome the disclosing the new content. For example, applications from
BitTorrent makes it easy to capture pirated data. It operates on a decentralized network and
does not have shutdown which makes content available and more accessible with comparison
to average user (Sebag Montefiore, 2019). Therefore, removal of such key business challenge
could be accomplished with help of following management competencies. Besides, Netflix
adopts them for making their competitive edge.
Due to ever increasing competition, Netflix have been adopting creativity in number of ways
since it’s inception. First of all, Netflix introduced a rental model in the year 1998 with
addition of subscription model to sell DVDs. Due to ever expansion of Netflix company, the
new model was launched for taking fees and unlimited rentals to develop respectively. This
creative expansion was helpful and made a change in selling of DVDs for movies and TV
series. However, growth of OTT platforms made them to adopt new models for consumers in
the year 2003 (Netflix Annual Report, 2020). Thus, company was shifted to adopt subscriber
model as new innovation technique.
The movie rentals were a very tedious process in which Netflix found huge challenge. The
viewers will be logged in, make payment request, wait for receival and after watching sent in
back as well as late fee cannot be incurred as expectation. In addition to this, rental stores are
now operating and thus more time was undertaken. Hence, new model was developed by
Netflix in which as per lower movie charge, late fees and watching from home could be
accomplished. The online website platform offered a much larger content for consumers to
watch with huge flexibility. With help of subscription model, it becomes easy to manage the
consumers by giving them content as per likes only.
The new creative change brought with business model subscription offered Netflix a huge
opportunity as technology company and interdiction of personalized product respectively.
The new platform was developed as personalized application which uses recommendation
system and variety of algorithms to develop content to member preferences Netflix Annual
Report, 2020. The new model from creative change incorporated user ratings and reviews so
that from historical view only liked content is shown. Thus, new software was developed by
developers who improved company’s overall performance in terms of engaging content. With
new innovative change, digital content was seen as per customer changes made on
application with vertical and horizontal screen adjustments.
Another transition was working on video content for streaming entertainment online. Initially
Netflix started as an DVD rental company that was working on inventory of movies and
content. However, a new change was adopted from traditional movie rental businesses to
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OTT platforms. Thus, company with online streaming content was highly appreciated by
consumers. The new change was found for on-demand launch in the year 2007 (Netflix
Annual Report, 2020). As a result, new change in the Netflix provides support new platform
for watching TV series, movies under pay per subscription model. To put it clearly, with help
of the subscription service with help of video on demand, creativity is managed. As a result,
it has supported driving source for revenue as well as entertainment, television and movie
making industry support for facing competitive challenges effectively.
Emotional Intelligence is the most important aspect which managers of Netflix requires to
overcome major barriers in terms of management. The emotional intelligence is described as
understanding ability, using and managing emotions in a positive way for stress reliever,
communication, empathy and conflict diffusion (Obradovic et al., 2013). There are four
dimension of EQ which managers needed including self-awareness, self-regulation, social
self-consciousness and relationship management. Thus, EI could influence employee
engagement and organisational performance if managers of the organization closely observe
as per following discussion.
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Impact of Netflix Managers’ Emotional Intelligence on employee engagement
Self-Awareness: The self-awareness develops emotional contact with other people and for
self-regulation (Huang et al., 2016). The Netflix managers have self-awareness skill through
they are able to understand the team and guide them well. Furthermore, empathy as primary
source through which each employee’s opinion in autonomous culture is understood. For
example, new ideas on incorporating in online platform will be highly appreciated in
Netflix’s sales team. As a result, team members and customers both are satisfied with the
outcome.
Self-regulation: The Netflix managers also requires to have self-regulation ability in which
emotional maturity reflects higher capacity assessment and emotional control altogether
(Huang et al., 2016). The change resilience is seen in Netflix managers because they support
new creative changes for the company to overcome any challenge. The flexibility towards
responding to change also helps employees to share their issues with management authority
respectively.
The entertainment and media organizations work into those settings where interpersonal
interaction is needed. In Netflix the interaction occurs for managing online service platform
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with marketing strategies and new innovations (McCord, 2014). The interactions among
managers and team occurs for allocated tasks including customer interest, receiving
instructions, supervising reports, cooperation and coordination among team members
(Shekhar, Gupta and Dubey, 2012). The managers at Netflix understand employee issues
related to tasks by using antecedent and response focused emotional regulation so that social
interaction related to problems are resolved.
The emotional intelligence offers a set of competencies in which personal competence and
social competence with combination offers role in direction and control of individual’s
feelings related to work efficiency. The employees could be managed with managers who
have full control on mood, and impulse in work settings. For example, Netflix keeps
employee neutral by cutting of employee rating to place in higher performance or
underperformance list and keeps them motivated with monotonous working experience
(Channe, 2015). The empathy focuses on understanding one’s emotions and feelings and
working as per changing situation through emotional competency, emotional maturity and
emotional sensitivity (Supramaniam and Singaravelloo, 2020). With employees interacting
to Netflix managers related to new business processes, the performance of organization
improves in terms of decision making.
The job satisfaction and wellbeing are observed under manager’s emotional intelligence
competency resulting in organizational performance. Furthermore, employees kept in positive
emotional state develops positive affection in terms of work environment (Danquah, 2014).
Due to such a reason, job satisfaction and well-being is felt by the employees as they
experience positivity in work culture. The commitment also follows by successful job
satisfaction by working on the job wholeheartedly. The Netflix managers through open
communication encourage employees for offering feedback on current scenario and
opportunities for improvement (McCord, 2014). With incorporation of employees with EI
competency in managers bring satisfaction among employees due to time effectiveness,
higher turnover intentions, interest in daily tasks and full commitment. The Netflix managers
have been seen self-motivation as EI competency as they inspire employees to think
independently for decision making (Channe, 2015). Henceforth, managers offer confidence to
the employees who are not performing well at every level respectively. Overall, employees
being cared off at Netflix work culture provide the increment in organizational performance
successfully.
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The organizational performance improved by the Netflix managers with strong emotional
intelligence competency change resilience. The ability for change resilience focuses on
adjustment of one’s emotions, thoughts and behaviours with changing situations and
conditions altogether (Quang, Khuong and Le, 2015). At Netflix, Reed Hastings incorporates
employee feedback with change as part of it so that employees could feel empowered
impacting motivation, attitude, behaviour and performance (Goncalves, 2018). The working
situation depends on employee’s interaction openly on ideas, suggestions and opinions. Being
a manager of Netflix, higher emotional intelligence is seen because company offer
constructive feedback on each employee with changing needs which impacts on
organizational performance as a whole. Another aspect is that organizational performance
depends on service delivery and quality of product which is due to higher emotional
intelligence. As it is seen that Netflix uses an autonomous strategy for employees so they
could take an independent approach for selecting what is right for the company's improving
service quality (Brunetto, Teo, Shacklock and Farr-Wharton, 2012). Thus, customer
satisfaction with new type of content on Netflix website also improves the performance of the
company.
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approach have standardized, intuitive, and valuable metric to manage current risk and operate
it in a successful manner (Baldwin, 2021).
Besides, some changes included increasing capacity for changing adaptability, increment for
operational expertise, advanced approaches for learning paradigms, change in internal tool
building for people interaction on strategic approaches, as well as improvement in team
building with empowerment and guidance on operational responsivity and development
balance (Baldwin, 2021). Hence, with help of resilience as competency and aligned with core
value, Netflix have received different outcomes.
To manage different relationships, conflicts could appear among different stakeholders while
taking opiniated decisions. Furthermore, to align this management competency,
communication is included as primary core value from Netflix which gets aligned. To remove
conflicts and doing negotiation, the management appreciate communication. The purpose of
communication is to understand that employees are understanding basic requirements
respectively as core objective (Larcker, 2018). Hence, Netflix determine that employees
could understand written communication with concise articulated speech, listening and
understanding on new changes, determining to manage calm pose in stressful situations, style
of communication for different people with cultural backgrounds, and offering timely as well
as resourceful feedbacks.
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To manage different conflicts, negotiation as management competency takes place by
offering structured governance from board attendance, executive, and senior executive
meetings. The management takes three important meetings for sharing major concerns for
conflict resolve process.
● First of all, staff meeting with Hastings takes place at monthly meetings with all seven
executives to be present for open discussion related to strategic and organizational issues
(Larcker, 2018).
● Secondly, executive staff meetings take place as quarterly meetings with top 90
executives in which presentations and breakout sessions are done to review strategic
concerns, competitive threats, and issues related towards workplace and policies (Larcker,
2018).
● Lastly, quarterly business review takes place as 2-day gatherings and top 500 employees
are included in quarterly review as focuses on business, presentations, crowd-sourced
discussion topics, and group dinners (Larcker, 2018).
For building better teamwork and management of team, two core values of Netflix get
aligned including courage, and impact. First of all, employees at Netflix are encouraged for
taking risks and associated with selection of challenging decision making. The focus is to
make employees take risk in working as team by taking responsible decisions related to task
allocated to them. In the teamwork, each individual should cooperate with other to make
thing work successfully. Furthermore, teamwork is built if each team member who performed
well through rewards on showing courage in decision making and appreciation on work
accomplished in effective manner (Kaplan, 2016).
In addition to this, Netflix another core value is impact through which Netflix adopts a format
to coach, model, and train employees in effective teamwork and team effort development. For
example, new programs could motivate employees to improve in the workplace and conduct
better results effectively (Kaplan, 2016). Some major benefits included approval for
important work done with accomplishments, records of strong performance and trust building
in team management, improvement of colleagues in teamwork, as well as receiving results
for developed process.
It has been understood from above discussion that Netflix follows a company culture through
honesty and responsibility given to the employees. Furthermore, all the employees should
adopt to a responsible method and technique for earning business model success. For such
reason, teamwork is done by keeping open communication from each member. The approach
adopted here is by seeking understanding on what people think in team. For example, de-
centralization of work in decision making offers motivation force as all team members are
adopting same objective even if some ambiguity exist altogether (Towery, 2018). Henceforth,
team management in Netflix is adopted with open communication, expectation of creativity
from employees and keeping autonomous culture to perform and support other team members
in a balanced fashion.
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Conclusion
Emotional intelligence is extremely vital in the Netflix’s managers so that they could able to
understand what is going on with employees. The work productivity and efficiency could be
earned if employees are engaged into work in a very stable culture and atmosphere. For
employee engagement, emotional intelligence competencies will create a culture in which
interpersonal relationships and work ethics is promoted. The managers align employees at per
their caliber and potential without reaching any over the top challenging situation. On the
contrary, Netflix could improve organizational performance by bringing best from each
individual employee. The service delivery and product quality in terms of entertainment will
be better because open discussion with employees on bringing new changes are promoted.
Also, democratic leadership works because each employee has creative freedom in promoting
business activities respectively.
It was found that Netflix’s core values do reflect on the management practices which are
undertaken by the company. The practices like resilience, stakeholders, conflicts and
negotiation as well as teamwork are important competencies which support companies to
manage any difficult situations. Henceforth, the competencies are mandatory for
organizations to balance work and aim at earning success.
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