Case Study 4

Description
The objective of this in class case study is to demonstrate how a project priority system can be used to select and prioritize
projects according to an organization’s objectives and strategic plan. The exercise involves a film division of a large
entertainment conglomerate and the priority team’s decision to review and prioritize different film proposals. The priority
system used is consistent with the one described in Chapter 2.
 
Materials Required
Refer to: 
Carson & Gray, Chapter 2, Case 2.2: Film Prioritization: Class Case Study Exercise
Detailed Instructions
Read the Case Study associated with the specific unit carefully, then proceed as follows
1. This unit case study will be completed in class and submitted on Moodle. ?????
2. While there is no “formula” for analyzing case studies, the following guidelines are recommended: 
a. Define the outcomes and objectives for your analysis. What questions are you trying to answer and
what issues are you trying to resolve?
b. Skim through the case study and get a sense for how it has been structured.
c. Read through the case study with paper and pencil and make notes as you go along.

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 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 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 percent. 
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.

In this assignment you are to evaluate and classify a set of project proposals (projects from film industry).
Film Project proposals are as below:
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.
 Probabilit 80% 50% 20%
y

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 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. 
Probabilit 80% 50% 20%
y

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.
Probabilit 80% 50% 20%
y

ROI 15% 20% 24%

Project Proposal 5: Nadia!

The story of Nadia Comaneci, the famous Romanian gymnast who won three gold medals at the 1976 Summer Olympic
Games. The low-budget film will document her life as a small child in Romania and how she was chosen by Romanian
authorities to join their elite, state-run, athletic program. The film will highlight how Nadia maintained her independent spirit
and love for gymnastics despite a harsh, regimented training program. 
Probabilit 80% 50% 20%
y

ROI 8% 15% 20%

Project Proposal 6: Keiko—One Whale of a Story

The story of Keiko, the famous killer whale, will be told by an imaginary offspring Seiko, who in the distant future is telling
her children about their famous grandfather. The big-budget film will integrate actual footage of the whale within a realistic
animated environment using state-of-the-art computer imagery. The story will reveal how Keiko responded to his treatment by
humans. 
Probabilit 80% 50% 20%
y

ROI 6% 18% 25%

Project Proposal 7: Grand Island

The true story of a group of junior-high biology students who discover that a fertilizer plant is dumping toxic wastes into a
nearby river. The moderate-budget film depicts how students organize a grassroots campaign to fight local bureaucracy and
ultimately force the fertilizer plant to restore the local ecosystem. 
Probabilit 80% 50% 20%
y

ROI 9% 15% 20%

Assignment: You are a member of the priority team in charge of evaluating and selecting film proposals. Assume
that all of the projects have passed the estimated hurdle (required lowest limit) 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 50-50
chance the ROI will be 18 percent, and a 20 percent chance that the ROI will be 24 percent.

REQUIREMENTS: Prepare your report as an essay, summarizing the responses to the questions below.

1. Use the provided evaluation form to formally evaluate and rank each proposal.

2. Report your rankings and justify your decisions.