Chapter 12 deals with the importance with implementing corporate
diversification. The main benefit derived from implementing by having a
balanced, diversified board of directors. It allows investors to maximum their
potential investments. Netflix follows the classic diversified group of directors
by having the majority as outside of the company. These Directors, some who are
major shareholders, along with industry leaders from other firms, help keep the
confidence of the shareholders. Shareholders main focus is on maximizing to its
fullest potential the growth of the firm and returns on investment. The main
insider is the chairman of the board who is also the founder of Netflix, Reed
Hastings.
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