MBA501: Business Portfolio and Dynamic Capability Development Report

This report provides a comprehensive analysis of Fantasy Film's business portfolio and dynamic capabilities. The report begins with an introduction to business portfolio analysis and the BCG matrix, GE-McKinsey matrix, and Synergy matrix. These matrices are used to evaluate Fantasy Film's business units (Fantaspace, Advantage, Anisoft, and DigiFX), assessing their market share, growth rates, and competitive strengths. The report offers strategic recommendations for each business unit, including investment strategies for stars, selective investment for cash cows and question marks, and divestment for dogs. Following the portfolio analysis, the report assesses Fantasy Film's dynamic capabilities, focusing on its ability to identify and assess opportunities, mobilize resources, and transform and reconfigure strategic assets. Recommendations are provided to enhance the company's overall dynamic capabilities, including suggestions for skilled employee hiring and the development of new software. The conclusion emphasizes the importance of portfolio and dynamic capability analysis in enhancing business operations and profitability.

Business Portfolio and
Dynamic Capability
Development Report

Introduction
Business portfolio is the systematic way for analyzing the goods and services
which develop an association's business portfolio. This is a company set of
investments, products, holdings, businesses and brands.
Fantasy Film is the digital animation studio which are mainly specialized in
animated feature films, special effects, digital animation software and
animated advertising given to the live action films. An organization has
production service in the Brisbane, San Francisco and Los Angeles which
remain controlled by the company senior members.

BCG Matrix
?Relative
Market
Share
Market
Growth
Rate
BCG Matrix is a model used for analysing
products according to growth share and market
share. This model was designed to interpret role
of products in future markets and growth so that an
organization get easy to know that in which
business unit they have to invest in. This matrix is
based on 4 grids which shows relative growth and
market share of 4 business units of Fantasy Film.

Continue...
These are:
Star: A strategic business unit can be considered as Stars when they have high
relative growth and market share.
Cash Cows: Business units that have high market share but low growth rate, are
considered to be as cash cows.
Question Marks: Business units that have small market share and high growth
rate are considered to be as question marks.
Dogs: Business units that have low growth and market share are to be
considered as dogs.

GE-McKinsey Matrix
Gro
wth
Competitive strength
of business unit
Hig
h
Med Low
Indust
ry
attract
ivenes
s
H
i
g
hM
e
d
L
o
w
Gro
wth
Harv
est
Selectiv
e
Harv
est
Harv
est
Selectiv
e
Selectiv
e
Gro
wth
GE-McKinsey Matrix is a technique that
offers a balanced approach for organisations
having multiple business corporation to
analyse their investment plan for different
business units. This matrix is explained as a
framework that includes business portfolio,
and give direction for strategic planning of
development, growth and their investment.

Continue...
The allotment of resources on the matrix will give three proposals to the
organization to make further decisions:
Grow/Invest- Products with high market share and high returns in future are
kept in this section. It will always profitable for an organization to invest in
these units.
Hold/Selective- In this section, those units or products are kept which don't
have large market share and organizations should make selective investment in
these products.
Harvest/Divest- Products under this sections are of no profit or no use for the
organization and must be liquidate or divest soon. These products acts like cost
to company and do not generate any profit to the organization

Synergy Matrix
Synergy Matrix – It is encompasses on the combination of complementary
contribution of various programs , projects and initiatives. Fantasy Film has
mainly applied such tool and method for satisfying its clients requirement.
Along with this, it is very effective in resolving certain technical complexity of
the projects. It is widely applied method and it shows the expression of specific
area. Business synergy matrix consist as one of the important method which is
appropriate for company growth.

Continue...
Threshold of acceptance
Misfits
Incoming:
Benefits from belonging
to portfolio
+-
Fits
+
- Outgoing
:
Benefit
to
portfolio
Altruists
Givers
Parasites
Takers

Business categorisation
BCG
Matrix
GE-McKinsey
Matrix
Synergy
Matrix
Fantaspace Star High Fits
Advantage Cash cow Medium Giver/Altruists
Anisoft Question Mark Low Taker/
Parasites
DigiFX Dogs Low Misfits

Fantaspace
Analysis - Stars are considered to be the assets for an organization. In case of
Fantasy Film, Fantaspace is the star business because it generates highest
revenue amongst all business units, $4.8 billion and it has highest
contributions in terms of competitive strength, income benefit and out going
benefit.
Recommendations - As Fantaspace is most revenue generating product of
fantasy Films, the company should invest more in their star product. The
investment can be made by appropriate planning, innovation and coordination
in the management and team.

Advantage
Analysis - Cash Cows have low growth rate and can grow if large investments
are there. Advantage is the cash cows for Fantasy Film which generate $1.9
billion revenue.
Recommendations - The cash cow of Fantasy Films has low market growth
rate and need less amount to invest but their revenue generation is high. So
here the company should make selective investment as the rate of investment
is low here but its revenue will be high.

Anisoft
Analysis - Question Marks have high growth rate but it does not capture big
market. Anisoft is the question marks for Fantasy Film.
Recommendations - This product is kept under the question mark section
where the investment should be made selectively. Anisoft having high market
growth rate but their business strength is very low as well its benefits the
company are high.