Provide recommendations to the organisation for the strategic management of each business unit with explanations for each recommendation. Prepare an assessment of the organisation’s dynamic capability including its capacity to:
1. Identify and assess opportunities
2. Mobilise resources
3. Transform and reconfigure strategic assets
Fantasy Film Business Portfolio The fantasy film operates four different business units including Fantaspace, Advantage, Anisoft, and DigiFX Fantasy film has specialized in digital animation software, digitally animated advertising, and digital special effects Each of the business unit offer different product line Poor coordination between these business units have led to duplication of product and wastage of fund Anisoft invested in $3 million in Script Doctor, a product that had been developed by Fantaspace The analysis involves assessing the business strength and industry attractiveness
Analysis Fantaspace is an attractive business unit and the firm has the greatest strength to grow. The unit has the distinctive competence to harness the competitive advantage Enjoys competitive edge in the market Recommendations The unit should consider investing for growth Concentrate on its strengths in its market Should seek dominance and maximize its market share The business unit needs to look for global opportunities.
Analysis The business unit has recorded some high rating in both industry attractiveness and business strength. However, it has low rating in other segments. This implies that the business has a lot of things to do to improve on its position. Recommendations The business unit should search for new segments It should consider investing for growth Consider relying on the existing strengths to maintain and achieve high competitiveness thus challenge even the market leaders It should consider expanding its existing segments to maximize productivity.
Analysis In each of the case presented for this business unit, it is evident that it has a medium attractiveness but low competitive strengths. This attractiveness is a positive feature that should be considered for development. Recommendations The business unit needs to invest selectively and concentrate only on selected segments. The business should invest for earnings Anisoft should specialize in the niche that can benefit its operations, especially based on its strengths It should further consider defending and maintaining market position
Analysis In both business strength and market attractiveness and other parameters, DigiFX scores the least. Recommendations The business unit should consider exiting the market It should further consider specializing in profitable niches DigiFX should avoid unnecessary investments by pruning product lines that are irrelevant in the market like Script Doctor The business unit should also value managing for cash and move to promising segments The company should consider avoiding investment and cut fixed costs It should time its exit so that it can sell the remaining products on stock thus maximize the cash value
Fantasy Film Business Portfolio The film company’s cash cow is the Fantaspace that has become attractive and gained competitive strengths The Advantage unit is a star as it invests more o product research and marketing. Through marketing and advertising, others products offered affiliate units get sold Anisoft is a question mark unit because it invest in already available product The DigiFX is a unit that is a dog and should be harvested. Fantasy Film should invest more in fantaspace unit
Fantasy Film Dynamic Capability The dynamic capabilities of Fantasy will focus on technology transfer, intellectual property, management of R&D The capabilities helps the company to maximize its competitive advantage in human resources, organizational learning, and manufacturing. Product and process development is also important for the company to change
Identify and assess opportunities
Analysis The company should consider investing in management of research and development Research and development is an important department that ensures the company maintains standards of film it produces The confusion brought by the Anisoft’s $3 million investment on Script Doctor Fantaspace’s animated films are attractive in the market and competitive Advantage business unit is a star thus requires more investment to become a cash cow The opportunity lies with investment where it can expand in new and promising segments and niches Technological capability will ensure the film company achieves the required standards in its production Focus on resource planning capability, core operations, and alliance management capabilities
Analysis The Fantasy Film faces resource constraints that can be used enhance its marketing Fantasy should mobilise resources for business units with positive prospects Fantaspace and Advantage are attractive in the industry Closing down the dog or DigiFX business unit to divert the resources towards the promising unit Anisoft is an average business unit operating in an attractive business The business units are heterogeneous as they try to achieve optimal capacity and technical efficiency independently Continuous training of workforce and adopting a horizontal management will improve performance Resource mobilization should be done through creditors and organizational development
Transform and reconfigure
Analysis The company needs to transform and reconfigure the existing assets Reconfiguring of the assets structures will bring external and internal transformation The changes the organization is willing to pursue should remain inexpensive and can even involve merging Fantaspace with Anisoft The co-specialization where the organization invests in dynamic capabilities can create valuable advantage because it integrates the technologies and external activities
Recommendations Transforming and reconfiguring Fantasy Film requires leveraging of the internal resources The dynamic capabilities framework provides for the use of specialized services The company should develop corporate agility Reorganize the employee's and managers routines to identify dysfunctional activities The firm should introduce strategic learning cycle to transform its operations Develop inexpensive processes through local autonomy and decentralization Co-specialization allows for integration of processes
Fantasy Film Dynamic Capability Fantasy Film should invest in the business units based on the resource base The firm has the ability to build, integrate and reconfigure its external and internal competencies that adapt the needed changes The dynamic capabilities help the organization to respond to external changes by combining different capabilities Adopt modern technologies to meet the expectations of the market It focuses on learning, co-specialization, new assets, and transforming existing assets
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