Project Management – Case Study 2 Film Prioritisation
The purpose of this case is to give you experience in using a project priority sys-tem that ranks proposed projects by their contribution to the organization’s objectives and strategic plan.
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% to $21.2 billion. The company ...view middle of the document...
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 Animated Feature or Best Picture of the Year.
2. Generate additional merchandise revenue (action figures, dolls, interactive games, music CDs).
3. Raise public consciousness about environmental issues and concerns.
4. Generate profit in excess of 18%.
5. Advance the state of the art in film animation, and preserve the firm’s reputation.
6. Provide the basis for the development of a new ride at a company-owned theme park.
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% ROI. In addition to the brief film synopsis, the proposals include the following financial projections of theatre and video sales: 80% chance of ROI, 50% chance of ROI, and 20% chance of ROI.
For example, for proposal #1 (Dalai Lama) there is an 80% chance that it will earn at least 8% return on investment (ROI), a 50-50 chance the ROI will be 18%, and a 20% chance that the ROI will be 24%
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 breath-taking 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 rock-and-roll...