Rather, a stream of new product innovations is required. By contrast with the independent production company of this case, each new film - which is expected to generate financial returns to the principals - is sufficient for the company to be successful. Any subsequent new films involving the film’s participants will be produced by a different independent company.
As another instance, people’s learning is expected to have different contributors and beneficiaries across the two organizational contexts. In the advanced-technology company, for example, each new product innovation provides an opportunity for participants on the project team to learn and acquire experience, and this same company intends to retain such participants, hence, benefit from their increased experience on the next project. By contrast with the independent production company, each new film provides an opportunity for participants on the project team to learn and acquire this experience also, but this same company has little or no expectation of retaining such participants, and hence, benefiting from their increased experience in the next project.
Experience is paramount in the motion-picture industry. Generally, on film projects, budgets are very tight, and schedules are very demanding. People are hired largely based on their experience and are expected to perform well immediately when called to do so. There is negligible slack time or margin for learning through trial and error, but experienced people learn exactly through trial and error. Because experience is valued so highly and film-production houses have such short time horizons, entry into the industry is very difficult for most people. Further, the role played by schools and colleges is minimal in this industry. Some skills and techniques can be learned and refined through formal education (e.g., acting schools, theatre, film degrees), but the majority come through direct experience. Mentoring plays an important role. True, the film business focuses heavily on exploitation over exploration. Yet success of the industry as a whole is critically dependent upon learning and exploration overtime.
(b) Product package
(c) Financial return
(d) Company longevity
2. What will be sufficient for an independent production company to be successful ?
(a) New product innovations
(b) Financial returns from each new film
(c) Active role by firm's participants
(d) Organisational context
3. What does an advanced-technology company expect from the learning experience of its participants ?
(a) Benefit for the next project
(b) Opportunity for more learning
(c) Little expectation of retaining them
(d) Help in marketing the previous product
4. What is not the expectation of an independent production company in the case of its participants ?
(a) Absence from the next project.
(b) Retention for the next project.
(c) Participation in the current project.
(d) Use of opportunity to acquire experience.
5. Why do film production houses value experience highly ?
(a) Because of the importance of trial and error methods.
(b) Because of the margin for learning.
(c) Because of short time horizons.
(d) Because it allows easy entry to everyone into the film world.
6. According to the author, what has been the focus of film business ?
(a) Formal education
(d) Indirect experience