Final Project Presentation

Film Prioritization

Ashley V. Twyman

1) What is the current situation?

A conglomerate company boasts a feature film division, theme parks, home videos, a TV channel, interactive games, and theatrical productions. The current situation is this large film company is looking at the projected line up for the next year of films. The company has been doing well, boasting increasing revenues of 12 percent from the previous year. It has steady growth over the last 10 years. Last years revenues were $21.2 billion. The company is negotiating expanding their theme parks to include parks in China and Poland. The film division alone created $274 million in revenue last year. However, profit margin was down 3 to 16 percent because of poor response to three of five films which were released last year.

2) What needs to happen?

Out of 7 films, the company wishes for 4-6 to be released. It is my goal to assist in determining which films should be released based on the company’s want list and need list (or company musts and needs). The decision needs to incorporate several variable factors including how the film will impact the rate of return on investment, while also trying to meet both wants and needs of the company.

3) What are the constraints?

The company would like the films selected to at least give an 18% return on investment and also meet the company musts and needs that have been established, which fitting in with the company mission statement. Time is also a huge constraint, as is money. With this project time and money are interrelated. If one of the films that was chosen takes longer to film, it will impact the ROI of the film, the timing of release of the film to the public (another financial aspect), it could impact whether or not the film could be considered for an academy award (if it’s too late in the year because of complications in filming it may not be considered), and so on.

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.

Want objectives:

1. Be nominated for and win an academy award or 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 CD’s).

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.

Mission Statement:

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.

4) What resources are required?

Projected return on investments status for each film, list of company must and need objectives, synopsis of each film and mission statement. In the actual implementation of the project, field professionals would be required to discuss pros and cons for each film and assist in making the final decision on films which should be released. Please see attachment ROI spreadsheet for further explanation.

5) Who is responsible for the resources?

The project manager should be responsible for insuring that all resourced have been acquired and all possible outcomes have been considered and discussed. The project manager should oversee the integration of all resources into the final picture. Other team members may be responsible for needed research and resources in order to accomplish the goal of prioritizing the films which have been presented. Also, experts in the film industry may need to be consulted concerning the films, expected filming time, how well each film may do in theatres, how else each film may be beneficial in regards to company must and want objectives.

6) What is the timeframe of the project (including sequencing of sub tasks)?

No specific timeframe has been defined in this project. However, playing the project manager’s position, I would like to have a definitive answer on this project in one

month’s time. Taking any more time than that could impact the company and set up losses for the year very early in the game. Less time may mean not considering every aspect of the project that is open for debate. The information and research aspects of the project should take no longer than one weeks time (five business days). After that, discussion about the provided research, and debate considering company objectives and mission statement with experts should take three to four days. Five days may be taken for this portion of the project, only if absolutely needed. After taking all the information and expert opinion into consideration, discussion with company heads should last no more than five to seven days. Three to four more days will be needed to finally approve and begin set up for each projected film that is accepted.

7) What are the costs associated with the project (or not doing the project, or even failing)?

Not doing the project or failing on this project is not an option, because it determines the company’s line up and major source of income for the entire year. Even if the project takes longer than anticipated, the money must be spent with the initial effort in order for the company’s entire year within their film division to be premeditated or to generate any sort of profit for the company. The money spent in this time frame is essential to the outlook of the company for the year, so it is important to stay within budget, but if budget is succeeded, initial money spend could be made up for throughout the remainder of the year. This project is the most important for the company, so any extra money spent will be worth its salt in the end.

8) What is the return on investment for the projects?

SEE ROI SPREADSHEET ATTACHMENT

9) What is the risk assessment for the project (use Monte Carlo simulation, fishbone diagram, or other method)?

The Monte Carlo simulation will be used for this project. SEE MONTE CARLO FOR FINAL PROJECT ATTACHMENT

10) What is the method of tracking the progress of the project (Balanced Scorecard, Stop Light charts, Gantt, or other)?

A large Stop Light Chart will be used and posted in a main meeting area for members of the project to record progress and keep up updated. Dates will also be integrated to determine if project portions are on time, ahead or behind schedule verses outlined timeframes. Progress should be updated daily before leaving work and when a major section of a project is completed. Dates should also be noted when changed or when section of project is completed. Morning meetings will revolve around Stop Light Chart and team discussion will decide what needs to happen each day.