Case ID: QA-0546
Solution ID: 39824

High Places Studio A

Case Analysis

Laura Anderson, a vice president in High Places Studio's production-finance department, needs to make a recommendation to the studio's president, Leo Walsh, regarding whether the studio should go ahead with the production of an exciting mystery movie. Walsh has the final say on the development and production of movie scripts for major box-office release. This new movie idea, like so many others in the film industry, is risky. It could become a blockbuster hit, but it could also become a costly failure. Alternatively, Anderson could recommend that Walsh forgo production of the movie drama and use the studio's currently available resources to produce a film from another script for Home Box Office (HBO). Anderson has to determine the best use of the studio's current production resources. The HBO option would provide fairly certain profits. Conversely, a huge hit at the box office could put High Places on the map as a major contender among the Hollywood studios, but a flop could incur significant losses, which High Places could ill afford. See also the B case, UVA-QA-0547.


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