Case Analysis 1: Organization Strategy and Project Selection Instructions: 1. This is a group work, 3 members or less. 2. All tasks in this case study should be answered and place in a short bond paper, having a font of \"Arial\" and a font size of \"12pt\". Also make sure the margin for all sides will be 1\" and spacing should be \"single space\". 3. The printout should be submitted on December 2 (Wednesday) in your class. Film Prioritization The purpose of this case is to give you experience in using a project priority system that ranks proposed projects by their contribution to the organization's objectives and strategic plan. sh is ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m 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. Th COMPANY"MUST"OBJECTIVES Every project must 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 wants 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. https://www.coursehero.com/file/12806487/Case-Analysis-1-Organization-Strategy-and-Project-Selection/ 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. TASK 1 (SHOW SOLUTIONS FOR EACH) You are a member of the project team in charge of evaluating and selecting film proposals. Use the provided formula to compute the NPV (Net Present Value) of each proposal. 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 included the following financial projection of theater and video sales: 80 percent chance ROI, 50 percent chance of ROI, and 20 percent chance of ROI. sh is ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m For example, for proposal #1 (Dalai Lama) there is an 80 percent chance that it will earn at least 8 percent return of investment (ROI), a 50-50 chance of ROI will be 18 percent, and a 20 percent chance that the ROI will be 24 percent. Tip, probability is the cash inflows. I0 = initial investment (since it is an outflow, the number will be negative) Ft = net cash inflows for period t k = required rate of return 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\