- •Introduction
- •Terms of reference
- •Prioritization
- •3.1 Top priority – Proposal to expand into corporate advertising videos
- •3.2 Second priority - Fee negotiation for new children’s programme
- •3.3 Third priority – Re-commissioned drama series
- •3.4 Fourth priority – “Banks – friend or foe?” – a new documentary by vyp
- •4.0 Discussion
- •4.1 Proposal to expand into corporate advertising videos
- •Variant 1
- •Variant 2
- •Variant 3
- •1.Sutability of the market
- •2. Acceptability
- •3. Feasibility
- •4.2 Fee negotiation for new children’s programme
- •4.4 “Banks – friends or foe?”
- •5. 0 Ethical issues and recommendations on ethical issues
- •Recommendations
- •6.1 Proposal to expand into corporate advertising videos
- •6.1.1 Recommendations
- •1) Short-term recommendations
- •2) Long – term recommendations
- •6.1.2 Justification
- •6.1.3 Actions to be taken
- •6.2 Fee negotiation for new children’s programme
- •6.2.1 Recommendations
- •1) Short-term recommendations
- •2) Long-term recommendations
- •6.2.2 Justification
- •1) Short-term recommendations
- •2) Long-term recommendations
- •6.2.3 Actions to be taken
- •6.3.1 Recommendation
- •6.3.2 Justification
- •6.3.3 Actions to be taken
- •6.4.1 Recommendation
- •6.4.2 Justification
- •6.4.3 Actions to be taken
- •Conclusion
- •Appendices
- •Appendix 3. Porter 5 forces analysis. Independent tv production industry
- •Bargain power of customers: High
- •4. Threat of substitute products: Medium
- •If programme ideas are innovative, then there is no threat
- •5. Intensity of competitive rivalry: High
- •Appendix 4.The market growth potential - pest analysis
- •Appendix 5. Industrial and financial analysis.
- •Appendix 6. Profit and Margin for 3 variants of actor’s salary. Номер!!!)
- •Appendix 7.
6.3.3 Actions to be taken
Janet Black has to find out how often the series should be shown and conduct the finance analysis again.
Negotiations with the BBC should be started concerning first, the opportunity of having advertising time to promote Zubinos coffee shops and second, getting more money if more than 8 hours of series required.
Les Fisher should start the negotiations with the GGG and find out the exact cost of releasing John Strong from his pre-existing contract: first, the cost of releasing him for 4 months from now on; second, the cost of releasing him for the last two months of his contract. Costs should include penalties paid to GGG and the actual fee of the actor.
VYP screenwriters should start writing the scenario of the series and see if John Strong can be brought into action only after half of the series has been shot.
6.4 – “Banks – friend or foe?” – A new documentary by VYP
6.4.1 Recommendation
There are three aspects to the recommendations on this issue:
The recommendation of this report is to reject the proposal of cutting expenditures on the documentary, as the both options forwarded by the programme producer are inacceptable due to the possible damage caused to quality of the documentary
VYP’s programme producer should concentrate on the expending of the market and on seeking new sources of revenue.
VYP should set more strict control on further expenditures so as not to overrun the recounted numbers
6.4.2 Justification
Documentaries have significant impact on the reputation and the revenue of the VYP. Moreover the documentary “Banks – friend or foe?” is important and is potentially worthy of award, which means that it can contribute a lot to the company’s reputation and VYP cannot risk to have a lower quality programme than it’s possible. We should take into account that the estimated loss amounts only to 0,1% of the operating profit of company and in case of gaining an award VYP may possibly gain much more in the future, as it will strengthen its positions on the market.
As our recommendation is not to cut costs, to reach the break-even point we suggest to tackle the problem from the other way – by increasing revenues. As average commissioning revenue per hour has a tendency to fall (in the financial year 2011 it dropped by 14,4% compared to the year 2010), it’s high time VYP thought of the other ways of gaining profit. This is an alternative way to cutting back expenses, and we believe it worth taking into account and thinking over. If this direction is taken VYP will be able to secure its reputation for high quality documentaries and to maintain its profitability. Furthermore it can avert the brewing conflict between programme producers and directors, who each hold to their principles of work.
That such a problem has occurred in the first place shows lack of thorough planning and of cost control. VYP should set a stricter cost control on the programme so as the documentary will be a cost effective programme, otherwise there is still a risk to overrun the new forecast costs. If this happens the professional skills of the programme producer in question can be doubted and so the ability of VYP to make successful programmes profitably.