Film prioritization strategies and frameworks

¶ … Film Prioritization case study centers on the film division of a large entertainment conglomerate. This company has enjoyed a 7% increase in revenues over the previous year, however profit margin was down 3% due the poor performance of three of the five films the company released during that year. The mission of the company focuses on creating shareholder value by being the world's premier entertainment company. This includes using creative, strategic and financial means. To do this, the company produces four to six films each year. This paper will rank seven potential projects the company is considering and give the reasoning why they are ranked as they are.

Film Prioritization

Introduction:

The Film Prioritization case study centers on the film division of a large entertainment conglomerate. This company has enjoyed a 7% increase in revenues over the previous year, however profit margin was down 3% due the poor performance of three of the five films the company released during that year. The mission of the company focuses on creating shareholder value by being the world's premier entertainment company. This includes using creative, strategic and financial means. To do this, the company produces four to six films each year.

There are several objectives that each project must have, in order to be undertaken by the company. First, they must meet current legal, safety and environmental standards. All films must have an advisory rating of PG or lower. And, the project must not have an negative effect on any of the operations the parent company may have.

In addition to these must have objectives, there are also seven objectives that they would like to see in each project. They would like to see a project that would be nominated for an Academy Award for Best Picture. The company would like to create one new animated character each year. They would like to have a project that leads to ancillary sales, as well as generate profit in excess of 18%. A project would be preferred to advance the state of the art in film animation, as well as provide a basis for a new ride at one of the company's theme parks. In addition, the CEO has advocated that the company to champion environmental concerns. The company utilizes these objectives, along with the company's mission, and the directive of the CEO to determine which projects should receive priority treatment.

The Projects and Their Ranking:

According to the company's objectives, mission, and CEO's environmental directive, 7 film projects are being considered. All have passed the estimated hurdle rate of 14% ROI, for both theater and video sales. Other factors come into play when deciding which project should receive company prioritization.

The film that should receive top prioritization is Project Proposal 4: Escape from Rio Japuni. First, as mentioned this film offers an excellent probability of a high ROI. It has an 80% chance of achieving a 15% ROI, which helps meet the company's mission of financial responsibility to its shareholders. The film also meets all three of the "must have" objectives to be considered, by meeting all legal, safety and environmental standards, it should be rated at an advisory of PG or lower, and does not have any conflict with the parent company's objectives.

Reviewing the objectives the company would like to have present in their projects, one can see that it also meets those as well. A touching story, such as this where warring animals put aside their differences to escape the devastation of clear-cutting in the jungle, could easily be nominated for a Best Picture award. It also offers up a possibility for the creation of a variety of new animated characters, including Pablo, the young jaguar who is the lead, and the supporting characters that are sure to surround him, and could easily lead to an animated series. As it's a children's film, it is also perfect for generating additional merchandise revenues. The film also offers a powerful environmental message and could advance the art of animation. Lastly, a theme park ride involving the animals escape through the rainforest is certain to be a hit with young moviegoers.

Project Proposal 6: Keiko -- One Whale of a Story is rated second in priority, for the company. It's anticipated ROI is a bit lower than Project Proposal 4, although it meets the minimum hurdle of 14%. It also meets all three of the mandatory objectives that each project must have, for the company.

It too meets the desirable objectives of the company. A powerful story, it could easily be nominated for a Best Picture award. It would create one new main animated character, Keiko's imaginary offspring, Seiko, and could turn into an animated series. Again, as a children's film, it is perfect for ancillary merchandise. Keiko's story raises public consciousness about the humane treatment of wild animals, and there is a fifty-fifty chance that the project will generate 18% ROI. By integrating actual footage of the whale within a realistic animated environment, it is certain to advance the art of animation. And, it could be the basis of a new ride, perhaps that of Keiko's release back into the wild.

The third film, in order of priority, should be Project Proposal 1: My Life with Dalai Lama. It meets the financial objectives of the company, as well as all three mandatory objectives. It could be nominated for an Academy Award, given the subject matter and it would create a new animated character, Guoda, and his animal friends, as well as the Dalai Lama, which could also lead to an animated series. It's a children's film, and as such could lead to additional merchandise revenues, and given the nature of Buddhism could raise the awareness of environmental concerns. It has a 50% chance of meeting the desired 18% ROI, and could advance the art of animation. However, it is not necessarily a good film to base a theme park ride upon.

Project Proposal 2: Heidi is ranked number four on the priority list for the company. It meets the mandatory requirements of the company. In addition, as a big-budget film it could be nominated for a Best Picture award. As a children's story, it could generate merchandise revenue, and it has a 50% chance of earning 20% ROI. However, it is not an animated film, therefore does not create a new animated characters, nor will it advance the art of animation. It also will not raise awareness about environmental issues, and is ill suited for a new theme park ride.

The fifth project, in order of priority, should be Project Proposal 7: Grand Island. This film meets the company's mandatory requirements. It also could be nominated for an Academy Award, and it definitely raises the public consciousness about environmental issues. However, it is unlikely that it would lead to ancillary sales of merchandise. And, as it's not an animated feature, does not create a new animated character nor does it promote the art of animation. There is only a slight chance that the film will offer an ROI of 18% or greater, and it does not provide a background for a new theme park ride.