Netflix is set to premiere a motion picture movie that will simultaneously be shown in theaters and on its website. “Crouching Tiger, Hidden Dragon: The Green Legend,” the sequel to director Ang Lee’s Oscar winning drama, will be out in theaters and available for online streaming on August 28, 2015, thanks to a deal between the Weinstein Brothers and Netflix.

Photo by EliteDaily.com

This is a monumental step for Netflix as it seeks to further expand its value propositions. Although Netflix subscribers were previously able to access a wide database of TV shows, movies etc., an unfulfilled desire always existed from consumers who wanted to experience a newly released movie in the comfort of their bedroom – legally at least. Physically going to the theater or waiting for the movie to be released on Netflix pose a customer inconvenience and a significant pain.

Hence, this move by Netflix will be an effective “pain-killer” for its customer segment as they increase the flexibility of its movie streaming services to create a hassle-free major motion picture viewing alternative. Furthermore, this deal should initiate a new wave of opportunities for Netflix to add more in-theater movies to its inventory, which may consequently convert the “movie theater experience” into a thing of the past.

References

http://www.bbc.com/news/business-29421555

http://money.cnn.com/2014/09/29/media/netflix-crouching-tiger-movie-deal/index.html?hpt=hp_t2

Major League Soccer’s extraordinary growth from a tedious “retirement league” to an established platform for intriguing soccer, has caught the attention of fans and investors alike around America who wish to bring a Major League club to their city – so is the case for the city of Sacramento.

Photo by Sacramento Republic FC

Sacramento is eager to be chosen as the 22^nd team to join the league – at least until 2020 – however, the management team for Sacramento Republic FC have key decisions to make. None bigger than: is it worth making this dream a reality?

In 2012, of the 19 teams in the MLS, more than half of the organizations were not profitable by the end of the season. Furthermore, the costs to start up a MLS club require the construction of a suitable stadium, which hovers around the $100 million mark. Despite the dismal reality for MLS clubs, Sacramento Republic FC can still become a profitable organization in the league if it is well positioned within its industry as stated in Michael Porter’s Generic Strategies.

If Sacramento is able to implement the low cost focus strategy on its abundant millennial and young population, it will have a greater chance at achieving profitability as an MLS club as well as providing the euphoria that Sacramento sports fans have long been deprived of.

References

http://www.businessinsider.com/r-sacramento-shoots-for-soccer-after-success-at-keeping-nba-kings-2014-9

http://www.forbes.com/pictures/emdm45efhfi/19-chivas-usa/

http://www.quickmba.com/strategy/generic.shtml

According to an article on the Times Colonist, Nestle Waters Canada is able to annually extract over 265 million liters of water from a Fraser Valley well without any expense, due to BC’s non-existent groundwater regulations.

From an outside perspective, Nestle is not going against business ethics by gaining its resources in a law-abiding manner and marketing the product back to the public. Instead, it poses the question of whether Nestle is fulfilling its social responsibility; to extract a reasonable amount of water – given the free nature to do otherwise – from a source that the residents of Fraser Valley heavily rely on for their clean, drinking water.

Photo by Wayne Leidenfrost

Nestle’s decisions thus far correlate to Milton Friedman’s view of social responsibility which stress the value-based management approach of a business, as long as it stays within the parameters of the law. Friedman argues that in order for an executive to make decisions that will inherently benefit the public – sustainable water use in this scenario – it also poses the problem of spending the money of its customers and employees for a cause that the executive sees fit. If Nestle were to forfeit their benefits and offer to pay the government for the quantity of water extracted, it would mean a substantial cut to their annual profit thus a loss of value for their shareholders. Furthermore, Nestle has disregarded Edward Freeman’s “Stakeholder Theory,” as the public – a huge stakeholder – is being heavily undervalued.

References

News Article: http://www.timescolonist.com/news/local/wild-west-of-groundwater-billion-dollar-nestl%C3%A9-extracting-b-c-s-drinking-water-for-free-1.587568

Milton Friedman’s view: http://site.ebrary.com/lib/ubc/reader.action?docID=10187339&page=171

Edward Freeman’s “Stakeholder Theory”: https://www.youtube.com/embed/bIRUaLcvPe8

Image: http://www.waterwealthproject.com/free_water_for_nestle_one_of_the_many_corporate_give_aways_of_bc_s_water