1. Case Study Paramount Pictures
Friday, April 18, 2008
8:46 AM
Challenge: To develop a plan to create a new digital imaging division to service the needs of
Paramount's Studio Group.
Issues:
1. No formal method to track existing cost of services.
 No centralized real-time means of identifying and tracking costs of projects.
2. Business plan did not exist.
 Ideas of a new division had been discussed, but no formal plan existed for justification
of division.
3. Need the support of senior management.
 Many of the senior management team had established relationship with key vendors
whom they trusted.
 Senior Management need to support the new division for its success.
4. Needed location to house division.
 Facilities (Approximately $15,000 sq. ft.) needed to be housed on the Paramount
Studio lot in Los Angeles, CA.
5. Need to move from a cost center to a revenue generating center.
 Division had to support existing company needs as well as pursue outside work.
6. Existing relationships with outside affiliates.
 Long, well established relationship already exist, but the market place was demanding
a change in the business model.
Plan:
1. Research all product and service cost of outside vendors currently supplying needs of studio
group.
2. Develop business plan for new division
3. Identify, design, and prepare cost of new 15,000 sq. ft. facility to house production facility.
4. Identify staff for division
5. "Sell" project to Senior Management
Result: Gained approval for $1,000,000 budget from President of Studio Group to setup,
build and operate new division.
Case PM Page 1