How to respond to a students response 1.
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Netflix is a very large comaonay and there decisions should be thought of as means rather than ends. The decision-making process that should have been suggested to Netflix management would be to the rational decision-making process. According to Matteson, they are the organizational mechanism through which an attempt is made to achieve the desired state. First, they need to describe
their goals, and in the process establish the benchmarks and methodology which will tell them if they are making progress toward or have met those goals. Once goals are set and potential challenges identified, I would advise them to
brainstorm solutions. According to Proverbs 12:15 says” The way of a fool is right in his own eyes, but a wise man listens to advise.” If Netflix would have listened and followed the advice they probably would have been better then the year before. Thinking back on the concept of escalation of commitment, Netflix continuation with this pricing action reflects this concept remotely. “Escalation of commitment refers to an increasing commitment to a previous decision when a rational decision maker would withdraw”(Ivancevich et. al.2014.p.415). Netflix did not pay any attention to the consumer’s opinions regarding separating prices. In today’s day and age where consumers are able to order any and everything at the touch of a button, making transactions should be effortless. My advice to Netflix during this time would be to keep things simple. To better serve your clients you should make it where no one has to create multiple accounts for a service that once was combined and charged one single price versus two separate ones.
120 word reply either agreeing disagreeing or relating to
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