Situation

You work for Thana Productions, a small Indian film production company, based in Bombay. Thana makes television films and series, many of which it has sold to countries in Europe, southern Africa, and the Far East. The company has only been in existence for ten years; it has expanded very rapidly in the last five years, since the arrival of a new and very dynamic production manager, who has given an international dimension to the company’s films, casts, directors and sales. Thana makes most of its films and series in Hindi, but has recently started making some in English.

This production manager now wants the company to make a major Hollywood-style feature film in English. The story will be based on the best-selling novel La Cantonaise (The Cantonese Woman) by Shaneyl Bergé, to which Thana owns the film rights. The book has sold over 500,000 copies in French, but has not been translated into English. It is a love story set in China in a context of civil war and revolution in the early part of the twentieth century. It would be a big-budget film, costing at least $50 million if an Indian location, little-known actors, and a little-known film director and screenwriter were chosen; and double that amount otherwise, if a Chinese location, big-name (possibly American) actors, and a well-known film director and screenwriter were chosen.

Preliminary studies, and the experience of other big film production companies, indicate that the financial return on a $100 million investment would be 10%, if the film was a box-office success and if it was distributed worldwide. The same studies show that if a $50 million budget was chosen instead, with distribution in India and in other countries which are regular customers of Thana Productions, the return would only be 5 or 6%. Thana could not possibly make either investment alone (see turnover and profit figures): it would have to find partners to co-produce, finance and distribute the film.

2. You must decide:

• if Thana should find partners and undertake the production of La Cantonaise

• and if so, whether the company should choose the low-budget ($50 million) or high-budget ($100+ million) solution, who the partners could be, and what role those partners should have

Fact sheet

ROLES:

Role A: The President

Chairing the meeting: You chair the meeting and make sure everyone joins in. Organize the meeting in the following way:

1. First, get each participant’s opinion as to whether your company should undertake the production of La Cantonaise, and come to a decision on this question.

2. Then if you do decide to undertake this production, make the choice of a $50 million production or a $ 100+ million production, after careful evaluation of the advantages and disadvantages of each budget.

Your own point of view: Thana is a profitable and growing company, but you think it is absurd to try to undertake an enormous and over- mbitious project of even $50 million, let alone $100+ million. Your colleagues must remember that in its first year of existence ten years ago the company only made three short television films. Even last year turnover was under $10 million, and profits, although healthy, were only $500,000 after tax. If the company continues to expand as rapidly as at present, in five or ten years you will be able to consider a gigantic project like La Cantonaise. But for the moment you should be less ambitious and perhaps plan a major Indian film on a budget of, at most, $20 million.