Fantasy Film Business Portfolio and Dynamic Capability Development Report

This report analyzes the business portfolio and dynamic capability development of Fantasy Film, an animation studio. It includes BCG, GE-McKinsey, and Synergy matrices, SWOT analysis, and recommendations for each business unit. The report also discusses the company's dynamic capability and opportunities for growth.

Business Portfolio and
Dynamic Capability
Development Report
Fantasy Film
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Introduction
Fantasy Film Business Portfolio
Fantasy Film is an animation studio which deals with animated services such as digital animated
advertising, animated films, special effects for action films and uses digital animation software for their
work (Wells 2013). The studio is headquartered in Sydney. The production facilities of this animation
studio is in Los Angeles, San Francisco and Brisbane.
There are four business units of Fantasy Film. They are:
 Fantaspace
 Advantage
 Anisoft
 DigiFX

BCG Matrix
ANISOFT FANTASPACE
DIGIFX ADVANTAGE

GE-McKinsey Matrix
FANTASPAC
E
DIGIFX
ADVANTAGE
ANISOFT

Synergy Matrix
FANTASPACE
ADVANTAGE
ANISOFT
DIGIFX

Business Categorisation
STAR
CASH COW
HIGH GROWTH
MEDIUM HOLD
QUESTION MARK
DOG LOW HARVEST
HIGH HOLD
FITS
GIVERS
TAKERS
MISFITS

Fantaspace
1. Analysis
 Fantaspace has high potential to become a market leader.
 Star in BCG Matrix.
 High growth in the GE McKinsey Matrix.
 Fits in the Synergy Matrix.
 High competitive strength, high growth rate and high industry attractiveness.
 This unit is in the growth phase.
2. Recommendation
 Formulation of good strategies for attracting new clients and building the reputation
(Dameron and Torset 2014).
 Creation of a good team who can develop innovative ideas and products.
 Priority should be given to investment in this business unit.
 Investments can be made in different sectors such as technology, skilled employees,
building competitive advantage and research & development.

Advantage
1. Analysis
 Cash cow in BCG Matrix.
 Medium hold in GE McKinsey Matrix.
 Givers in Synergy Matrix.
 Medium competitive strength, low growth rate and medium industry attractiveness.
 This unit is in the mature phase.
2. Recommendations
 New strategies should be formulated by the management so that the business stays
operational and new clients are brought in.
 The investment priority is next to Fantaspace (Blackwood 2016).
 Collaboration should be encouraged so that both the companies should be able to
sustain.
 A team should be formed which will encourage new ideas and innovations in the
organisation.

Anisoft
1. Analysis
 Question mark in BCG Matrix.
 High hold in GE McKinsey Matrix.
 Takers in Synergy Matrix.
 Low competitive strength, high growth rate and high industry attractiveness.
 This unit is in the growth stage.
2. Recommendations
 Centralised form of decision making group.
 Proper supervision and investment are necessary for it to grow.
 Have to create unique value with the help of proper strategies.
 Have the potential to grow in the rapidly changing market (Nagle and Müller 2017).

DigiFX
1. Analysis
 Dog in BCG Matrix (Palia, De Ryck and Mak 2014).
 Low harvest in GE McKinsey Matrix.
 Misfits in Synergy Matrix.
 Low competitive strength, low growth rate and low industry attractiveness.
 This unit is in the mature phase.
2. Recommendations
 Not suitable for investments.
 Advisable to sell this unit or it might affect the performance of the whole organisation.
 The employees with good skills and knowledge should be transferred to other business
units.

Conclusion
Fantasy Film expertise in animation works. The three units of the business are in the mature
stage which are Fantascape, DigiFX and Advantage. The business unit Anisoft has been
created by the business to enhance the performance of the company. The views which has
been deduced from the above analysis are as follows:
 The business unit Fantascape generates the maximum revenue out of the other units of
Fantasy Film.
 Advantage is also another unit which generates a lot of revenue which is why it is present
in the cash cow position.
 Anisoft is in the growth stage and have a good potential to perform well in the market.
 DigiFX is the only unit which is not beneficial for the company and hence should be sold s
that the overall performance of the company is not impacted
Therefore, it has been established that the company would develop proper strategies so that
they are able to learn and innovate new things with the help of proper knowledge and
funding.

Introduction
Fantasy Film Dynamic Capability
Dynamic capability is the ability of an organisation to fully realise the potential of their
resource base (Vogel and Güttel 2013).
Fantasy Film is currently present in the mature stage of the business which is one of the
most critical stage of a business. To establish the dynamic capability a deep understanding
of the core competencies of the business have to be realised along with the opportunities
that the market has outside of the company.

Identify and assess opportunities
1. Analysis
There are four business units of Fantasy Film which are Anisoft, Advantage, DigiFX and
Fantaspace. All of these units are currently in the mature stage of the business life cycle.
 Strength
The core competency of the company is the animation that they use in advertisements and
films. Even though there is no decided future of special effects, the digital software that is
used by the is seen to have the potential to grow in the market (Rosemann and vom Brocke
2015).
 Weakness
There is no proper dynamic capability of the company along with the lack in a proper
management structure which would help the company to function properly. This structure
issue has to be solved by the company for it to function properly and get an increase in the
dynamic capability of the business.

2. Recommendations
 Opportunity – The company has several opportunities within their organisation if they
can properly share and implement the knowledge that is held by them. The new trends
that have erupted in the market along with the new innovations have to realised by the
organisation to become successful. The skills that is possessed by the company have to
be utilised properly to develop the competitive edge of the organisation. Collaboration
with companies such as Tesla Motors, Amazon, Apple and DreamWorks could also provide
several opportunities for the organisation.
 Threat – The market in which they operate is very competitive and the company needs
to develop new competitive edge for it to survive in the market.

Mobile resources
Analysis
 There is an issue with the management structure of the organisation which needs ot be
rectified or redesigned so that every level of the organisation would have the ability to
make decisions in their respective fields.
 A cross function team is built which can share their knowledge, resources and
technologies with each other to increase the ability for new creations.
 They have to create their own competitive edge which will give them the ability to
survive in the market for a longer period of time (Berney and Bétrancourt 2016) .
 Since there is a bright future in the software of digital animation, it could be used to
capture the market.
 Collaboration of other companies could be done so that both the companies are able to
increase their value.

Recommendations
 New innovative ideas to be developed I the company so that they are able to attract new
clients for their operations.
 Use their core competency to draw out the different clients and organisations who would
like to collaborate with Fantasy Film.
 Design virtually interactive characters with the help of their digital software to showcase
their talents in the market (Miller 2014).
 Optimally use the abilities of thee employees of the company regarding animation.
 Restructure the while management group so that the cost is minimized in the decision
making process.

Transform and reconfigure
Analysis
 Strategic alliance to be create within the company so that new innovative ideas are
developed by the skilled employees of the company which can introduce technologies
and products which are able to meet the needs and demands of the customers.
 The change should be adopted quickly by the company through a new business culture
which will help the people of the organisation to accept the changes.
 The core issues and problems of the organisation has to be identified so that is becomes
easier for the organisation to conduct the changes (Seidl 2016).
 The company should transform according to the needs of the market and the customers.
 The potential that it will gain from using its core competencies optimally will make the
process of transformation more productive and will help to accept new ideas and
technologies for the organisation.

Recommendations
 Continuous improvement should be made within the organisation which will help the
company to give outputs based on the changing trends and demands of the market and
its customers.
 The company should quickly adapt itself to the transformation and apply the new
strategies within the organisation so that the capability of the organisation is reached.
 A strong business foundation and business culture should be established by the
management team which will help the organisation to accept the changes and also align
itself to other organisations in the same industry (Critten 2016).
 The management system should be decentralized so that every level of the management
structure would have the ability to make decisions in their area of expertise.
 The resources of the organisation should be deployed according to the capacity of the
organisation.

Conclusion
 It can be concluded that the dynamic capability of Fantasy film can be sustained by
sharing skills, innovations and knowledge within different levels of the organisation.
 Moreover, the organisation will be able to develop new technologies and ideas through
this process which will help them to realise their potential for growth in the market.
 The new trends that have erupted in the market would have to seized by the company to
create unique products and technologies which would be able to satisfy the needs and
wants of the customers.
 The SWOT Analysis have helped to determine the ability and capability of the
organisation along with the threats that would stop the company from growing, and
which have to be eradicated.
 The life cycle of every product and business unit will help to determine the extent to
which a product can be of use to the organisation.

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