Fantasy Film Business Portfolio and Dynamic Capability Development Report

This report evaluates the business portfolio and dynamic capability development of Fantasy Film, a leading organisation in the production of digital advertisement facilities. It includes analysis using BCG matrix, GE-McKinsey matrix, and Synergy matrix, as well as recommendations for each unit. The report also explores the lack of dynamic capability of the organisation and suggests solutions using SWOT analysis.

Business Portfolio and Dynamic
Capability Development Report
Fantasy Film
[Student Name] – [Student Number]

Introduction
• Fantasy Film Business Portfolio
• Fantasy Film is a popular and leading organisation that deals with the
production of digital advertisement facilities. The company offers
skilled services in terms of film designing, digital animated effects and
digital software for live movies.
• The head office of the organisation is situated at Sydney and the
production of facilities are provided in their Brisbane, San Francisco as
well as Los Angeles Branch. The organisation has four major units.

Contd..
• Fanta space: This unit offers digital animation software’s production and generates
nearly 4.8billion of market share.
• Advantage: these unit of organisation helps in the development digital animated
advertisement for the medium of television and internet sources.
• DigiFX: The unit produces digitalised effects for live action movies and they generates
almost $1.0 billion of share.
• Focusing on the production and capabilities of these units, the report emphasises on
different tools such as BCG matrix, BE mckinsey matrix, synergy matrix. The report also
evaluates and provides effective suggestion for the development of business in this units

BCG Matrix
?
Relative Market Share
Market Growth Rate
Anisoft
Advantage
Fanta space
DigiFX

GE-McKinsey Matrix
Growth
Competitive strength of
business unit
High Med Low
Industry attractiveness High
Med
Low
Growth
Harvest
Selective Harvest
HarvestSelective
SelectiveGrowth
Anisoft
Fanta
space
Advantage
DigiFX

Synergy Matrix
Threshold of acceptance
Misfits
Incoming:
Benefits from belonging
to portfolio
+-
Fits
+
-
Outgoing:
Benefit to portfolio
Altruists
Givers
Parasites
Takers
Advantage
Fanta space
DigiFX
Anisoft

Business categorisation
BCG
Matrix
GE-McKinsey
Matrix
Synergy
Matrix
Fantaspace Star High Fits
Advantage Cash flow Medium Givers
Anisoft Question mark Highly selective Takers
DigiFX Dog Poor harvest Inappropriate

Fantaspace
• Analysis
• The business unit has an increased opportunity of competitive growth with an approaching
benefit and constraining benefits in seeking business
• The market produces approximately 4.8billion of share from the animate production of movies
• The unit is in a developing phase of business.
• Recommendations
• Observing their conduction it could be said that the unit needs to provide increased investment in
the R&D operations, development of technology and in growing skilled employees with a value
offered competitive advantage (Karimi and Walter 2015).
• Apart from these, they are required to use their academy award for the purpose of strategic
management for recognising the emerging customers as well as capabilities.

Advantage
• Analysis
•The business unit has a moderate competitive power in the market provided with limited
approaching benefit and comparatively higher constraining benefits in their business activities
•The company produces almost 1.9 billion with near about 76% of the share market with a low
growing percentage with a moderate level of attraction
• Recommendations
•The suggestion for the unit would to invest their operation in innovating and technological
advancement activities for managing their existing level of production and to sustain its
competitive edge (Rayna and Striukova 2016).
•The unit is as well needed to build a acquisition with other companies for expanding their
value for both the firm.

Anisoft
• Analysis
• The digital unit has a high growth capability with hinge attraction in the existing market
• The share margin of the company is running at 11.11% with a growth of 200 million.
• The unit is at stage of development in business with a low share in market.
• Recommendations
• The business unit is requires to collect investment for transforming in to star position with the
rapid growth of the industry.
• The company is needed to seek solution and innovative technological strategies for
developing value and to empower their competitive edge (Čiutienė and Thattakath 2014).

DigiFX
• Analysis
• The business unit has poor competitive power with poor approaching as well as constraining benefits.
• The market profit of the unit is almost 11.53% with an expansion of 150 million from the 1.3 million of share
• Recommendations
• From the above analysis the company is recommended to sell their business as it could lead to downfall of the
entire business performance
• The unit is needed to focus more on the other three units for the acquisition of the knowledge and employees
skills with others
• They need to develop cross functional team for increasing the competitive power.

Conclusion
• Fantasy Film Business Portfolio
• Therefore, it is evident from the study that the organisation is in a matured stage of
business growth owing high performing activities of Fanta space, Anisoft,
advantages and Digifx.
• To be specific, the management department is conscious about the growth cycle of
the company based on which they have decided to expand their business unit
through Anisoft.
• From the recommendations it is clear that they are needed to expand their capability
for establishing cross operational groups.

Introduction
• Fantasy Film Dynamic Capability
• As stated by Barrett et al. (2015), dynamic innovation of an organisation is their capability
to entirely adopt the resource base. To be specific it is capability of the organisation to
incorporate, develop and reconfigure the internal as well as external capabilities for
addressing drastically changing market.
• In order to sustain its dynamic competencies the company is required to identify the core
capabilities in the external environment.
• Based on this issues the report explores, and evaluate the lack of dynamic capability of the
organisation and suggestion solution in terms of sensing, ad transformation dynamic
competencies using SWOT.

Identify and assess opportunities
• Analysis
Strength Weakness
 The core capability of the company is in the
animation of movie and advertising ability,
 High potential of obtaining star position.
 It has been seen from the case study that
company has a lack in business dynamic
competencies specifically in case of Script
Doctor event.
 They also have problems and lack in the
existing structure of management (Kremser
and Schreyögg 2016).

Identify and assess opportunities
• Recommendations
Opportunities Threats
 The company has high opportunities in
creating acquisitions with other companies
such as tesla and Apple
 The have the opportunities to advance their
system of animation and digital activities
such as digital icons and hologram
technologies by merging with the
companies (Teece et al. 2016).
 High market competition
 Low existing competitive strength
 Need to grasp new opportunities for
sustaining its competition.

Mobilise resources
• Analysis
• Fantasy film has been seen to be using similar script evaluation
program that had been established five years ago.
• It has also been seen from the case study that the management
structure of the company is not strong enough to deal with the
competitive market.
• The management team of Anisoft wasted around $3 million and
period of six months is establishing the product that was already
present within the organisation

Mobilise resources
• Recommendations
• Fantasy film along with all its unit is needed to restructure their management
setting. In this context, all the level of management is needed to get involved
in the system of management
• They need to take part in six sigma operation to remove the wastage of cost
and time (Gawer and Cusumano 2014).
• The team of management needs to re develop their operations through
innovative technologies and plan to build a solid ground for cross functional
operation

Transform and reconfigure
• Analysis
• For the purpose of transformation and restructuring they needs to change
its organisational infrastructure from top to bottom to process of
decentralisation
• They are needed to conduct extensive research on the competitive market
and needs to develop strategic internal as well as external mergers for
generating profit and innovation

Transform and reconfigure
• Recommendations
• They need to apply the process of decentralisation and strengthen the
level of management by providing them the authority and capability to
implement decision making (King and Baatartogtokh 2015).
• They are required to develop a team, with proper and fast learning
capability so that they can easily incorporate the new strategies with a
capability to transform the system.

Conclusion
• Fantasy Film Dynamic Capability
• Therefore, it can said from the study of fantasy film, that the organisation has the
utmost capability to maintain its dynamic competencies of resources through the
process of sharing, and inspiration of new knowledge on innovation and
technology.
• Through the analysis shown in the study and from the SWOT analysis the
company will achieve an opportunities to restructure their weakness in to strength
in the highly competitive market.

Reference list
•Barrett, M., Davidson, E., Prabhu, J. and Vargo, S.L., 2015. Service innovation in the digital
age: key contributions and future directions. MIS quarterly, 39(1), pp.135-154.
•Čiutienė, R. and Thattakath, E.W., 2014. Influence of dynamic capabilities in creating
disruptive innovation. Economics and Business, 26, pp.15-21.
•Gawer, A. and Cusumano, M.A., 2014. Industry platforms and ecosystem innovation. Journal
of Product Innovation Management, 31(3), pp.417-433.
•Karimi, J. and Walter, Z., 2015. The role of dynamic capabilities in responding to digital
disruption: A factor-based study of the newspaper industry. Journal of Management
Information Systems, 32(1), pp.39-81.

Contd..
• King, A.A. and Baatartogtokh, B., 2015. How useful is the theory of disruptive
innovation?. MIT Sloan Management Review, 57(1), p.77.
• Kremser, W. and Schreyögg, G., 2016. The dynamics of interrelated routines: Introducing
the cluster level. Organization Science, 27(3), pp.698-721.
• Rayna, T. and Striukova, L., 2016. From rapid prototyping to home fabrication: How 3D
printing is changing business model innovation. Technological Forecasting and Social
Change, 102, pp.214-224.
• Teece, D., Peteraf, M. and Leih, S., 2016. Dynamic capabilities and organizational agility:
Risk, uncertainty, and strategy in the innovation economy. California Management
Review, 58(4), pp.13-35.