Brooks Case Competition

Team 1:Zi Xuan Chua, Kheng Hoek Teoh, Yan Shin Ho, Shi Xian Teow

TASK #1-Expected profitability-WACC- IRR- Justify Choice ( YES )

Allocation of Cost Budget

• Story right : 2 million•Director & cost : 20 million•Production cost : 14 million•Post production : 5 million•Other expenses : 3 million

Expected cash flow

(3 million)Sept 31

2013

Dec 31 2013

(9 million)

(10 million)Jan 31 2014

Feb 28 2014(16

million)

(5 million)Mac 31

2014

Apr 30 2014

(250k)

(100k)May 31

2014

Jul 31 2014

(250k)

(700k)Aug 31 2014

Oct 31 2014

(700k)

19.2 millionDec 31 2014

Jan 7 2015

18 million

24.2 millionFeb 7 2015

Mac 7 20154.1

million

Expected movie gross profit

25 Dec to 31 Dec 31 Dec to 7 Jan 8 Jan to 7 Feb 8 Feb to 7 Mar0

0.5

1

1.5

2

2.5

3

3.5

4

Profit

Expected revenue

25 Dec to 31 Dec 31 Dec to 7 Jan 8 Jan to 7 Feb 8 Feb to 7 Mar0

0.5

1

1.5

2

2.5

3

Revenue

TASK #2•Crisis•Action taken•Revised Forecast•Backup plans

Crisis•North Korea•Causes:

1. Bomb2. Back out

Action Taken•Original Plan•Return of customers•Backup Plans•DVD•Online giants

Task 2 expected movie gross profit

25 Dec to 31 Dec 31 Dec to 7 Jan 8 Jan to 7 Feb 8 Feb to 7 Mar0

0.5

1

1.5

2

2.5

3

3.5

4

Profit

Task 2 expected revenue

25 Dec to 31 Dec 31 Dec to 7 Jan 8 Jan to 7 Feb 8 Feb to 7 Mar0

0.5

1

1.5

2

2.5

3

Revenue

Task #3•Limiting loss• -$49 million to -$34 million•$6.55 million•$6 million•$5 million•$4 million

Task 3 expected movie gross profit

25 Dec to 31 Dec 31 Dec to 7 Jan 8 Jan to 7 Feb 8 Feb to 7 Mar0

0.5

1

1.5

2

2.5

3

3.5

4

Profit

Task 3 Revenue

25 Dec to 31 Dec 31 Dec to 7 Jan 8 Jan to 7 Feb 8 Feb to 7 Mar0

0.5

1

1.5

2

2.5

3

Revenue

Counter Marketing Strategy

•Trend•Video•Targeted audience•Spread words