The document is a comprehensive report on FSM Production, a leading film production company in Pakistan, covering its achievements, services, and future aspirations within both local and international markets. It details the U.S. film industry, highlighting Hollywood's historical significance, competition, and challenges faced by foreign filmmakers, especially from Pakistan. The report emphasizes the company's objective to enhance the Pakistani cinema through global collaborations while navigating legal, marketing, and human resource barriers in the film industry.

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ACKNOWLEDGMENT
First, we take this opportunity to acknowledge our institution, “JINNAH UNIVERSITY FOR WOMEN”
where we are pursuing our degree Bachelor of Business Administration. Above all, we would like to
thank the Almighty ALLAH without whom this work could ever have been completed. Second, we
impress our special thanks to MISS AMBREEN, our Course instructor, Report Guide for guidance,
support and encouragement which helped us in completing our Report. This report cannot be
completedwithout the joint efforts of our team who did remarkable jobs. Each member has done her
task which has given to them in a well manner.

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Contents
..........................................................................................................................................................1
ACKNOWLEDGMENT...........................................................................................................................2
Introduction.......................................................................................................................................4
What we do....................................................................................................................................4
Services..........................................................................................................................................4
Mission..............................................................................................................................................4
Vision.................................................................................................................................................4
Objectives/ Goals ...............................................................................................................................4
Achievements in Pakistan....................................................................................................................5
Initial to Investin Foreign Country.......................................................................................................5
Film Industry USA...............................................................................................................................6
Introduction...................................................................................................................................6
History...........................................................................................................................................6
Scope for Foreign Filmmaker...........................................................................................................7
Successful Filmmakers in USA..........................................................................................................7
Competitors in USA Film Industry........................................................................................................8
Strategies of Competitors to block new entrants ..............................................................................8
Restrictions for Foreign Firms & Industry Specific .............................................................................8
Political/ Legal Barriers .......................................................................................................................9
Marketing......................................................................................................................................9
Human Resource ..........................................................................................................................10
Financing......................................................................................................................................11
Question & Answers.........................................................................................................................12

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Introduction
The FSM ProductionisPakistan’sleadingfilmproductioncompany basedinKarachi,Pakistan.Sinceits
creation,ithas beendevotedtoprovide necessarytoolsrequiredforasuccessful production.Withan
experience of overmany years,The FSMproduction hasworkedalongside topnotchadagenciesfrom
Pakistan,the Middle East,Europe and East Asia.Specialistsinthe fieldof productionspanningacrossTV
Commercials,documentaries,feature films&TV drama converge togethertoforma winningteamthat
has settrendsinfilmproductionthatmakesusleaderinthe industry.
From the creative directorstoexperiencedfilmmakers,technical crew andskilledcraftsmen,our
professionalteamformsthe backbone of ourcompanyand deliversresultsbyeffectivelyexecuting
individualandcollective expertisethroughefficientoperational management.Oursuccessisdrivenby
our people andtheirdedicatedfocusonaimingforexcellence andmakingeverythingtrulypossible. The
FSMproduction isthe onlycompanyinPakistan,whichprovides“One StopSolution”;offeringexcellent
value aswell asa dedicatedfilmproductionteam.
What we do
 Production&directionof televisioncommercials&documentaries
 Reality/game showsproductioninassociationwithUKbasedproductioncompany
 ProductionManagementconsultancyforinternational films&documentaries
Services
 Producer(associatedwithproductionhousesinMalaysia,Thailand,India,UAE& UK)
 Panel of Directors(includingkeyIndianFilmmakers)
 Panel of Creative directors&scriptWriters
 ProductionManagementServices(including,permission, locations,coordination)
Mission
To provide viewers,abigscreenwithcultural influence,goodscripts&everlastingstoriesthatmakes
the viewer’smindforever&createsassociationwiththe story& to make commerciallyviable andhigh
entertainmentqualityActionAdventuremovies&Televisionproductionsforthe global market.
Vision
“To become the Leader in global film industry”
Objectives/ Goals
 To adopt newemergingtalentinordertobringa revolutionaryrevivalof Pakistanicinema.
 To target local communitycustomerbygivingstoryline thatcreatestheirassociationwiththe
story.

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 Optimisticaboutthe foreigninvestmentsof filmsscenes.Foreignlocationscangive apleasure
of proudto viewers,asPakistani enjoysbeinginthe storiesof foreign filmsorforeignlocations.
 To enhance the Filmingskillsof the PakistanFilmindustry.
 FSMcan bringactionthrilledmoviesinforeignlocationsthatmaycreate a positive imageof
Pakistaninthe viewersof foreignviewers.
Achievements in Pakistan
The FSM productionsuccessisthe outcome of majorentertainedTVCsandshortmoviesthatdepictthe
cultural & societal benefitswhichenhance the optimisminviewersthathadledFSMproductiontoits
peakof success,afterwardsFSMproductionenteredinto the dramacategorywhere itruledthe
televisionbybroadcastingmostof the famousdramasof the ongoingcultural & societal situation.
Followingare the mostviewedandpraiseddramas,
 Dhuwan(1994)
 Kalapul:The blackbridge (2008)
 Humsafar(2011-2012)
 Prohibited(2015)
Drama industryof Pakistanwasgettingestablisheddaybyday so,FSMproductiontooka stepforward
to the filmindustry.Accordingtothe viewer’sdemandof actionandthrilledmoviesFSMproduction
tookinitiative tointroduce Action &thrillingmoviestothe viewersof Pakistan,sowiththe highlyskilled
graphicdesignerthathadput theireffortswithcompetitivespecialeffectsinthe moviesthathad
positivelyreviewedbycriticsandlovedbyviewers, afterwhichpeopleof Pakistanattractedtowards
cinemas.Followingare the blockbustermoviesof Pakistanthatare produced& DirectedbyFSM
production,
 Waar (2013)
 Jalaibee (2015)
 Maalik(2016)
Initial to Invest in Foreign Country
As FSMhave achievedmajorgoalsinPakistani Marketsoitdecidedtogo abroad forfurtherscenes
shootingof actionsandthrillingscenesalthoughPakistanwasenoughtoshootthese scenesbutasper
demand,viewerswantsome HollywoodtouchinPakistani MoviessoFSMtook itsall setupto foreign
countriesforbestlocationsandscenesthatbettersuitsthe situations.Manycountrieswelcomeforeign
firmsinorderto create associationof theirpeoplewithcrossborderpeoplesbytouchingthe scenes
locationsof theirhome country.FSMtookinitiativestoinvestinabroadforfurthershootsof different
sceneswhich create a proudmomentforPakistani viewerstoshoottheircultural andsocietal storiesin
foreignlocations;itwillalsobe astrong variable toattract viewerstowardscinemaof Pakistan.

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Film Industry USA
Introduction
The cinemaof the UnitedStates,oftengenerallyreferredtoasHollywood,hashadaprofoundeffecton
cinemaacross the worldsince the early20th century.
The filmindustryormotionpicture industrycomprisesthe technological andcommercial institutionsof
filmmaking,i.e.,filmproductioncompanies,filmstudios,cinematography,animation,filmproduction,
screenwriting,pre-production,postproduction,filmfestivals, distribution;andactors,filmdirectorsand
otherfilmcrewpersonnel.
Thoughthe expense involvedinmakingmoviesalmostimmediatelyledfilmproductiontoconcentrate
underthe auspicesof standingproductioncompanies.Advancesinaffordable filmmakingequipment,
and expansionof opportunitiestoacquire investmentcapital fromoutside the filmindustryitself,have
allowedindependentfilmproductiontoevolve.The UnitedStatescinema(Hollywood)isthe oldestfilm
industryinthe worldwhichoriginatedmore than121 years ago andalsothe largestfilmindustryin
termsof revenue.
Hollywoodisthe oldestfilmindustryof the worldandthe largestintermsof box office grossand
numberof screens.
The majorfilmstudiosof Hollywoodare the primarysource of the most commerciallysuccessfulaction/
adventurousfilmsinthe world,suchas The Birth ofa Nation (1915), Gone with the Wind(1939), The
Sound of Music(1965), Star Wars (1977), E.T. the Extra-Terrestrial (1982), Jurassic Park (1993), Titanic
(1997), Avatar (2009), The Avengers(2012), Furious 7 (2015), Jurassic World(2015), and Star Wars: The
Force Awakens(2015). Today,Americanfilmstudioscollectivelygenerate several hundredmoviesevery
year,makingthe UnitedStatesone of the most prolificproducersof filmsinthe world.
Actionfilmisa filmgenre inwhichthe protagonistorprotagonistsendupina seriesof challengesthat
typicallyincludeviolence,extendedfighting,physical feats,andfranticchases.Actionfilmstendto
feature a resourceful herostrugglingagainstincredibleodds,whichinclude life-threateningsituations,a
villain,orapursuitwhichgenerallyconcludesinvictoryforthe hero.
AdvancementsinCGI(Computergeneratedimagery) have made itcheaperandeasiertocreate action
sequencesandothervisual effectsthatrequiredthe effortsof professional stuntcrewsinthe past.
However,reactionstoactionfilmscontainingsignificantamountsof CGIhave beenmixedasfilmsthat
use computeranimationstocreate unrealistic,highlyunbelievableeventsare oftenmetwithcriticism.
History
The historyof cinemainthe UnitedStatescan trace itsroots to the East Coast where,atone time,Fort
Lee,NewJerseywasthe motionpicture capital of America.The industrygotitsstartat the endof the
19th centurywiththe constructionof ThomasEdison's"BlackMaria", the firstmotionpicture studioin
WestOrange,NewJersey.The citiesandtownsonthe HudsonRiverandHudsonPalisadesofferedland

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at costs considerablylessthanNewYorkCityacross the riverandbenefitedgreatlyasa resultof the
phenomenal growthof the filmindustryatthe turnof the 20th century.
Film-makingbeganattractingbothcapital andan innovative workforce,andwhenthe KalemCompany
beganusingFort Lee in1907 as a locationforfilminginthe area,otherfilmmakersquicklyfollowed.In
1909, a forerunnerof Universal Studios,the ChampionFilmCompany,builtthe firststudio.] Theywere
quicklyfollowedbyotherswhoeitherbuilt new studiosorwholeasedfacilitiesinFortLee.Inthe 1910s
and 1920s, filmcompaniessuchasthe IndependentMovingPicturesCompany,PeerlessStudios,The
Solax Company,ÉclairStudios,GoldwynPicture Corporation,AmericanMéliès(StarFilms),World Film
Company,BiographStudios,Fox FilmCorporation,Pathé Frères,MetroPicturesCorporation,VictorFilm
Company,andSelznickPicturesCorporationwere all makingpicturesinFortLee.SuchnotablesasMary
Pickfordgottheirstart at BiographStudios.
The filmpatentswarsof the early20th centuryledto the spreadof filmcompaniesacrossthe U.S.Many
workedwithequipmentforwhichtheydidnotownthe rightsandthus filminginNew Yorkcouldbe
dangerous;itwasclose to Edison'sCompanyheadquarters,andtoagentsthe companysetout to seize
cameras.By 1912, mostmajor filmcompanieshadsetupproductionfacilitiesinSouthernCalifornia
nearor inLos Angelesbecauseof the location'sproximitytoMexico,aswell asthe region'sfavorable
year-roundweather.
Scope for Foreign Filmmaker
In our country,haslack of resources,cheaplaborbeennotavailableandnobetterlocationforshooting
some scenesof actionfilm.Firstly,we have toresearchaboutthe countrywhomhave all resourcesare
available incheapprices.We have decidedtoshootsome scenesof actionmovie inforeigncountrylike
USA (UnitedStatesof America) .Forshootsome scenesof actionmovie tosee all these things:Whatthe
policiesof USA formakingthe some scenesof actionfilm? How much moneyspentonthe scenes?How
much tariff andtaxesof USA? Andthensee the rate of labor andresourcesforshootingthe scenesof
actionfilm.Because if we hadto importthese thingsformakingsome scenesof actionmovie it’stoo
expensive andwe have nobigbudgettocoverup. So,in USA all these labor,resourcesandlocationare
cheap.We have a goodopportunitytoshootsome scenesof actionfilmeasily.
Successful Filmmakers in USA
1. MICHAEL BAY
(Director,Producer,Writer)
2. JAMES CAMERON
(Writer,Director,Producer)
3. JOHN WOO
(Director,Producer,Writer)
4. STEPHEN SOMMERS
(Writer, Producer,Director)
5. JOSSWHEDON
(Writer, Producer, Director)

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Competitors inUSAFilm Industry
Americanfilmindustrieswere largelyimmersedinthe competitionforthe domesticmarket.Itwas
difficulttosatisfythe huge demandforfilms.
Also,the numberof moviesbeingproducedannuallydroppedasthe average budgetsoared,markinga
majorchange instrategyfor the industry.Studiosnow aimedtoproduce entertainmentthatcouldnot
be offeredbytelevision:spectacular,larger-than-lifeproductions.
The UnitedStatesgovernmenthasbeenactivelypromotingfree trade agendasandtrade oncultural
products.
Competitorsare Metro-GoldwynMayer,20th CenturyFox,ParamountPictures,Lightstorm
EntertainmentandYashRaj filmsetc.there mostsuccessful moviesinthe world,suchasGone withthe
Wind(1939), Star Wars (1977), Titanic(1997), and Avatar (2009), Dilwale DulhaniaLe Jayenge (1995).
Othercompetitorsare The Walt DisneyCompany,SonyPicturesEntertainment,the SonyCorporation.
Strategies of Competitors to block new entrants
Strategiestheymake fornewentrantsare:
 An oligopolyinwhichthe majormovie makersare selectingthe safe andalternative.
 Theycan takeovertothe newentrantsbychangingthe competitivedynamicsforeveryone.
 Theycan make a Foreignbasedcompetition,throughdevelopmentof aspecificcompetitive
advantage
 Increaseddemandmayresultinincreasedpricestherebyallowinganew entranttomake use of
thisincrease andoffsetanyhighcostsof marketentry.
 Economiesof Scale can be a major barrierfor new entranttotry to match the scale to achieve
the same cost advantage as the existingcompany.
 Cost Advantagescaninclude accesstothe bestsuppliers,anunderstandingof existingmaterials
and knowledgeof theirquality,possessionof anynecessaryandimportantpatents,and
proprietaryinformationandtechnological knowledge.
 Theycan make a strategyto share profitswithgovernment
 Technologyandinnovationare keyplayersinthe industryandare the drivingforce of
competition.Marketleadersare diversifyingfromtraditional entertainmentsectorsintothe
emergingtechnological advancedareassuchas3D films.
 There isa perfectcompetitionbetweenfirmsbecause filmindustriesof differentcountriescan
be a threat.
Restrictions for Foreign Firms & Industry Specific
The USA filmindustrycanbe restrictingourfilmindustrythroughstrict regulations,specialized
knowledge orhighinvestmentrequirements.Conversely,thereislesschance of new companies
enteringthe marketif there issignificantprofitpotentialandnotmanyobstaclesinthe wayto achieving
thisprofit.Some otherrestrictionsare:

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 HighCapital Cost can be a major issue forour firm.
 Governmentandregulatoryrequirementssuchaspermitsandlicensesmaybe astrong barrier
to entry.There mayalsobe lawsgoverningwaystoconductbusinessthatmayconflictwitha
company’spracticesinothercountries.
 Tax, loansandinterestscanalsobe a barrierforour firmbecause governmenthasrightsto
increase taxesandcan increase interestonloans.
 Labor cost ,techniquesandstaff canalsobe a barrier because theycan demandforhighcost
 Governmentcancharge the incentivesfortelevision
 The internationalizationof the filmandtelevisionindustryalsoraisescultural issues.The
internationalizationof capital,laborandshootinglocationsmakesitdifficulttodetermine the
nationalityof afilm.
 Stereotyping,discriminationandbiasnesscanbe a major cause while recruiting
 Low availabilityof financing
 Cost of Box office
 A White boy’sclubcan alsobe a majorissue forour filmindustry.
Political/ Legal Barriers
There are numberof barriersthatour firmcan face while steppingintoadiverse,vast,more challenging
and biggest market of film world, the Hollywood as a Pakistani film maker. We have categories those
barriers into four aspects. The aspects are;
1. Marketing
2. Human resource
3. Finance
Marketing
Our company has designed an integrated marketing strategy to promote our movies in US and also to
grab our US audience. For our management it was not an easy task because in the market like US it is
not easy to attract your customers or target audience to invest a single penny to watch your movie
whenthere are numberof optiontheyhave fromnumberof famous,reputedandsuccessful production
houses. Similarly, the foremost issue our company has faced was the legal and political barriers (the
Federal Trade Commission (FTC) is the federal agency responsible for overseeing and regulating
advertisers and promulgates much of the marketing law) which we had to keep in our mind while
designing the marketing strategies and while entering into the US market. These issues are;
 AdvertisingandMarketinglawof FTC ( Federal trade commission)
 Children’sOnlinePrivacyProtection Act
 Act ConcerningUse of EndorsementsandTestimonialsinAdvertising
 EnforcementPolicyStatementonU.S.OriginClaims
 Online PrivacyProtectionAct
 Law of consumerprotectionunder Bureauof ConsumerProtection

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 Monitoringof Market SegmentandNetwork
 Copyright
Human Resource
Genderdiscrimination,biases, racial, ethnic issues, cultural differences and inequality are the factors
that can hinderwhile recruitingemployees in the US. Although US has claimed itself as a land of equal
opportunities for all who lives there or who step into its territories but there are various issues and
barriersthat can be face byany companyworkinghere.Acquiringhumanresourceswasanotherbigbug
for our production house. Because of entirely different caliber industry, our survival is already a
challengingtaskbutthe barriersinthe wayto acquire and retain competent and desired workforce has
magnified thischallenge. HoweverU.S.EEO(equal employmentopportunities) laws, the Civil Rights Act
of 1964 (Title VII), the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities
Act (ADA),andthe Equal Pay Act (EPA) hasbeenreducedissueslike discriminating on the bases of race,
color, sex, national origin, religion, age, and disability but still there are some major barriers that we
have encountered while procuring staff for our production house in US. These barriers are;
 Federal laborlaw
 Protective legislationforCalifornianworkers
 Employing nationalsinthe U.S
 U.S. pay scales
 Appointing nationalsfortopmanagement,becausePakistanisnota memberof FCN
 Laws regardingthe treatmentof workers,minimumwages,antitrust,anti-bribery,
discriminationandenvironmental responsibility
 Fear anddistrustinlocal regardingforeigninvestor
 Labor StandardsAct of 1938
 State agenciesthatconductbackgroundchecks
 FamilyandMedical Leave Act(FMLA)
 National LaborRelationsBoard(NLRB),anindependentfederal agencywhichhasoversightto
protectthe rights of mostprivate-sectoremployeestoorganize andto determinewhetherto
have unionsastheirbargainingrepresentative.
 The U.S. Departmentof Labor's Wage andHour Division(WHD),administersandenforcessome
of the nation'smostcomprehensive laborlaws,including: Minimumwage ,Overtime and
Misclassification
 Occupational Safety&HealthAdministration(OSHA)
 Rightsin the workplace
 Youth Labor Laws,These lawsprotectyouthrightsand include informationsuchas:What types
of workallowedtodo,Whenallowedtowork,How manyhoursper weekallowedtoworkand
How muchshouldbe paid
 Lobbysystem
 Prioritiesbasedonpersonal relationships

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Financing
 Governmentsrunprogramsto subsidiesthe costof producingfilms. Only Governmentsare
willingtoprovide these subsidiesaswe hope itwill attractcreative individualstotheirterritory
and stimulate employmentAndGovernmentrestrict inaparticularlocation.
 If you can take tax incentivesU.S.statesandCanadianprovinceshave between15% and70% tax
or cash incentivesforlabor,productioncostsorservicesonbonafide film/television/
expenditures torestrictGovernmentcriteria.
 These so-called"soft-money"incentivesare generallynotrealizeduntil atheatrical or
interactive productioniscompleted,all paymentsare made toworkers,financialinstitutions
and rental or propcompanieswithinthe state of province offeringthe incentives.Manyother
limitationsmayapply(i.e.,actors,castandcrew mayhave to take upresidence inthe state or
province).
 Must leadactor/actresswhite American.
 GovernmentalsorestrictPhysical shooting(principalphotography) mustbe completedwithin
the state borders,and/orthe use the state'sinstitutions.Thiswouldincluderental facilities,
banks,insurance companies,soundstagesorstudios,agents,agencies,brokers,catering
companies,hotel/motels,etc.

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Question& Answers
Followingare the questionsthatwouldarise before enteringanyforeigncountryinorderforfilming.
Our whole reportissummarizesintothesequestioni.e.forthe brief partof these questionreadermust
have to go throughthe reportin whichthese questionsare brieflyanswered.
1) How Easy or differentwas it to identifypolitical or legal forcesaffectingyour Firm’s proposed
entry?
It was verydifficulttofindoutthe barriersas itwas the new market for FSMProduction
 No one researchfirmscould geteasilyconvincedtogive secondarydataforour research.
 Pakistanhave verysuspectedimage amongforeignerssoitwouldnotbe easyto appliedmarket
developmentapproach.
 As perrecentyearsof Pakistanfilmindustryitwasthe victimof decliningsowithoutknown
name we couldnot be enteredinanyforeignmarketinstantly.
2) What political or legal barriers might existthat you were unable to identify?
A. The political influenceof ForeignIndustrydoesnotgive goodremarksonany Pakistani Firmthey
preferothercountriesoverPakistanbecauseithasbeenthe victimof terrorisminrecentyears
and got a stainof a terroristcountrythese aspectscreatessome hiddenbarriersforPakistan
that couldn’tbe easilyevaluatedthese type of barriersmaycome intolightwhenthe tasksof
any Pakistani Filmwouldbe performing.
3) Are the potential barriers so great as to keepyour firmout altogether?Why or why not?
A. Potential barriersare moderate forPakistaniFilmmakersbecause USalwaysdepictstheirpeople
that theyare helpingthe thirdworldcountrieswhile theyare justcreatingaborderline for
foreign firmsLike Pakistan.BarriersthatUS implementforPakistanFilmindustryoranyother
thirdworldcountry are like,
 Theywouldnotallowsome aspectof filmingintheircountrythatwouldabide their
culture or society.
 TheyallowPakistanFilmindustry toshootbuttheynot total give permissiontoshoot
withoutthe supervisionof theirpoliticalheads.
 Theyalwayspreferthose scenestoshootinwhichone of theirsuperherooractor is
associatedwiththe filming.
4) Do differentlevelsofgovernment (city,state or federal) pose differentpolitical andlegal
barriers to your firm? If so, describe your difficulties?
A. As suchno different level of governmentposes differentbarrierstoPakistanFilmmakersbut
theyembosssuchaspectof restrictionsthat couldbecome barriersforusinfuture.