MBA501 - Business Portfolio and Dynamic Capability: Fantasy Film

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This presentation analyzes Fantasy Film, a digital animation studio, and its four business units: Fantaspace, Advantage, AniSoft, and DigiFX. The analysis utilizes BCG, GE-McKinsey, and Synergy matrices to evaluate each unit's performance and market position, considering revenue, market share, and growth potential. Recommendations are provided for strategic management, focusing on investments, diversification, and innovation. The presentation also assesses the company's dynamic capability, focusing on its ability to identify opportunities, mobilize resources, and transform assets, with corresponding recommendations for improvement. The goal is to enhance the company's ability to adapt to market changes and sustain its competitive advantage.
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Dynamic Capability and
Business Portfolio
Development
BUSINESS ANALYSIS AND RECOMMENDATIONS
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Introduction
Fantasy Film –Overview
The company is a specizlied digital animation studio
Specialized in
Animated Feature Films
Animated Advertisement
Digital Animation Software
Digital Special Effects
Headquarter -> Sydney
Production facilities -> Brisbane, San Francisco and Los Angeles.
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Introduction (cont.)
Fantasy Films have following four business units
Fantaspace :
Specializes in digital animation feature films.
Revenue: $4.8 billion
Academy Award for best animated feature film “Slippery Bob”.•
Advantage :
Specializes in digitally animated advertisement
Revenue: $1.9 billion.
Clientele: Amazon, Tesla Motors, and Apple.
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Introduction (cont…)
Anisoft :
Specializes in digital animation software
Revenue: $200 million.
Clientele: DreamWorks is a client subscriber.
DigiFX :
Specializes in special effects for live action feature films.
Revenue: $150 million.
Contracted for digital special effects work for ‘AquaMan’.
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BCG Matrix Analysis
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GE-McKinsey Matrix
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Synergy Matrix Evaluation
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Business Profile Overview
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Analysis and
Recommendatio
ns
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Fantaspace
Analysis
Possess high competitive strength
Potential for incoming and outgoing benefit in business development.
Animation film market is highly attractive with tremendous growth
Revenue: approximately 4.8 billion out of the 7 billion Market (67.14%) of the respective
industry
BCG Matrix: Star
A potential market leader
GE McKinsey Matrix: High growth
Synergy Matrix: Fits
Promising growth in recent cycle.
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FantaSpace - Recommendations
Prioritize in investments in following domains:
R&D
Innovation Technology
Training Skilled employees
Innovation and Creativity
Benchmark and compare market share and growth periodically with competitors:
Use Academy Award as a competitive edge and for promotional purposes for
attracting new clients and develop reputation.
Promote the development of cross functional teams for diversified product and
service developments.
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Advantage - Analysis
Possess medium competitive strength
low incoming and very high outgoing benefit for business development
Digitally animated advertisements for TV and internet has comparatively lower growth
rate and mediocre attractiveness for consumers
Revenue $1.9 billion from 2.5 billion Market (76%)
This shows that it yielded high margin in low growth market.
BCG Matrix: Cash Cow.
GE McKinsey Matrix: Medium Selective
Synergy Matrix: Givers
The analysis reveals that the company has matured and may turn into a Dog because
of the lower growth rate in overall industry.
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Advantage - Recommendations
It must be kept at the second number for investment priority.
The company should invest in:
Innovation and technology
Diversification of products and services
The company should aim for
Sustaining in the market by developing competitive edge
Introduce new services
Maintaining the production level
Create value by collaborating with other companies
Focus on newer business strategy
Increase clientele
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AniSoft - Analysis
low competitiveness
very high incoming and low outgoing benefit.
Digital software development domain has high growth and high attractiveness in the
global market.
Revenue and Market Share: 11.11% market share ($200 million out of $1.8 billion).
BCG matrix: Question Mark
GE McKinsey Matrix: High Selective
Synergy Matrix: Takers
This reveals:
Low market share in a potentially high growth market.
The company is at the ‘growing’ stage in business cycle.
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AniSoft - Recommendations
They need to invest to increase their growth and chances of sustainability.
DreamWorks contract may increase their reputation and growth rate
Needs vigilant strategies, managers and supervisors to promote and
develop business.
Look out for diversification of services
Look out for more opportunities
Increase clientele and subscribers
Improve decision making process with decentralization.
Invest in innovation and creativity
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DigiFX - Analysis
Possess low competitive
low incoming and low outgoing benefit.
The Special effect industry has lower growth along with lower attractiveness within the
market.
Market Share and Revenue is 11.53% market share which is $150 million from 1.3
billion industry
BCG matrix: Dog
GE McKinsey Matrix: Low Harvest
Synergy Matrix: Misfits
The analysis reveals that it has lower market share in a low growth market.
Business Cycle Stage: Matured and sustaining
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DigiFX - Recommendations
Not recommended for further investments
Cash may be trapped if not lost.
Company should either sell off, or may consider collaborations for
improved sustainability in future.
Diversify the business domain.
Transfer or cross-refer the skilled employees to other business to secure
their employments and improve their retention chances.
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Conclusion
Fantasy Film is a sustaining business with a potential to growth tremendously.
Company has matured and is enjoying a good reputation with potentially high
revenue from all four sub-businesses.
However, they need to invest more on innovation and creativity to sustain
future competition.
For this purpose, they may:
Sell off or integrate DigiFX with other businesses
Diversify their services and products
Invest in more skilled employees
Conduct business analysis for future trends and opportunities.
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Dynamic
Capabilities –
Fantasy Film
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Introduction
Dynamic Capability can be defined as:
The capacity of an organization to purposefully create, extend, or
modify its resource base” (Helfatet al.,2007).
Fantasy Film – Matured Business
For becoming a market leader – identify and understand core
competencies, and harness more opportunities
Keep transforming and upgrading to sustain future pressure.
Aim: the section with analyse and recommend how the business can
improve its dynamic Capabilities.
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Identification and Assessment of
Opportunities
Analysis
Matured Business with four sub-businesses:
Fantaspace-digital animation film
Advantage – Digital animated advertisement
DigiFX – special effect for live action
Anisoft – digital software development
Strengths
Core competency – Animation and digital advertisement
Must invest more in digital software development
Must identify competitive edge!
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Cont…
Weaknesses
Lack of business dynamics
Less effective managerial structure
Lack of competencies in senior management teams
Time bound as well as Funds bound.
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Recommendations
Opportunities
Collaborate with more companies to improve value and diversification of portfolio.
Possible collaborations:
Apple Inc. for development of applications and virtual reality.
Tesla Motors for simulations and automations.
DreamWorks for robot and automated developments
Amazon for hologram technology
Threats and Risks
The market is highly competitive and rapidly transforming
The threat of new entrants is very high
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Mobilization of Resources
Analysis
Problematic managerial structure
Inability to seize the potential market
Must develop cross functional competent teams
Must collaborate and develop more partnerships
Should remain dynamic and avoid centralization of decision making,
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Conclusion
The company CAN sustain Dynamic Capability
Through resource base by sharing, transferring knowledge, hiring
skilled employees and innovated technology
strengths in digital animation
It could develop its core competency in this domain,
Company should has ability to sense the new trend in market
Mobilize, Transform and upgrade the competencies to create and
maintain competitive edge.
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References
Sarma, H., Porzel, R., & Malaka, R. (2017). A step toward automated
simulation in industry. In Dynamics in Logistics (pp. 99-105). Springer,
Cham.
Zhou, T. (2018). Strategies on Optimizing the Development of China’s
Animation Industry.
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