Essay Instructions: Company Profile
The company is the film division for a large entertainment conglomerate. The main office is
located in Anaheim, California. In addition to the feature film division, the conglomerate includes
theme parks, home videos, a television channel, interactive games, and theatrical productions. The
company has been enjoying steady growth over the past 10 years. Last year total revenues
increased by 12 percent to $21.2 billion. The company is engaged in negotiations to expand its
theme park empire to mainland China and Poland. The film division generated $274 million in
revenues, which was an increase of 7 percent over the past year. Profit margin was down 3 percent
to 16 percent because of the poor response to three of the five major film releases for the year.
Company Mission
The mission for the firm:
Our overriding objective is to create shareholder value by continuing to be the world?s
premier entertainment company from a creative, strategic, and financial standpoint.
The film division supports this mission by producing four to six high-quality, family entertainment
films for mass distribution each year. In recent years, the CEO of the company has advocated
that the firm take a leadership position in championing environmental concerns.
Company ?Must? Objectives
Every project needs to meet the must objectives as determined by executive management. It is
important that selected film projects not violate such objectives of high strategic priority. There
are three must objectives:
1. All projects meet current legal, safety, and environmental standards.
2. All film projects should receive a PG or lower advisory rating.
3. All projects should not have an adverse effect on current or planned operations within the larger
company.
Company ?Want Objectives?
Want objectives are assigned weights for their relative importance. Top management is responsible
for formulating, ranking, and weighting objectives to ensure that projects support the company?s
strategy and mission. The following is a list of the company?s want objectives:
1. Be nominated for and win an Academy Award for Best Picture of the Year.
2. Create at least one new animated character each year that can star in a cartoon or TV series.
3. Generate additional merchandise revenue (action figures, dolls, interactive games, music CDs).
4. Raise public consciousness about environmental issues and concerns.
5. Generate profit in excess of 18 percent.
6. Advance the state of the art in film animation, and preserve the firm?s reputation.
7. Provide the basis for the development of a new ride at a company-owned theme park.
Case 1-1: Film Prioritization 1
Assignment
You are a member of the priority team in charge of evaluating and selecting film proposals. Use
the provided evaluation form to formally evaluate and rank each proposal. Be prepared to report
your rankings and justify your decisions.
Assume that all of the projects have passed the estimated hurdle rate of 14 percent ROI. In
addition to the brief film synopsis, the proposals include the following financial projections of
theater and video sales: 80 percent chance of ROI, 50 percent chance of ROI, and 20 percent
chance of ROI.
For example, for proposal #1 (Dalai Lama) there is an 80 percent chance that it will earn at
least 8 percent return on investment (ROI), a fifty-fifty chance the ROI will be 18 percent, and a
20 percent chance that the ROI will be 24 percent.
Film Proposals
Project Proposal 1: My Life with Dalai Lama
An animated, biographical account of the Dalai Lama?s childhood in Tibet based on the popular
children?s book, Tales from Nepal. The Lama?s life is told through the eyes of ?Guoda,? a field
snake, and other local animals who befriend the Dalai and help him understand the principles of
Buddhism.
Probability 80% 50% 20%
ROI 8% 18% 24%
Project Proposal 2: Heidi
A remake of the classic children?s story with music written by award-winning composers Syskle
and Obert. The big-budget film will feature top-name stars and breathtaking scenery of the
Swiss Alps.
Probability 80% 50% 20%
ROI 2% 20% 30%
Project Proposal 3: The Year of the Echo
A low-budget documentary that celebrates the career of one of the most influential bands in rockand-
roll history. The film will be directed by new-wave director Elliot Cznerzy and will combine
concert footage and behind-the-scenes interviews spanning the 25-year history of the rock band,
the Echos. In addition to great music, the film will focus on the death of one of the founding
members from a heroin overdose and reveal the underworld of sex, lies, and drugs in the music
industry.
Probability 80% 50% 20%
ROI 12% 14% 18%
Project Proposal 4: Escape from Rio Japuni
An animated feature set in the Amazon rainforest. The story centers around Pablo, a young jaguar
who attempts to convince warring jungle animals that they must unite and escape the devastation
of local clear-cutting.
Probability 80% 50% 20%
ROI 15% 20% 24%
ASSIGNMENT INSTRUCTIONS: (I need assistance with this project, can you help me?) Read the Film Prioritization Case Study. Prepare a 1,050-1,750-word case analysis answering the questions posed by the case. Be sure to compare and contrast the various project selections criteria used by the organization presented by the case. Also, justify why the project selected met the organization?s project selection criteria. In your paper, complete the Assignment portion of the case evaluating and ranking each proposal.
