The goblins catch a bird at the giant tree and take it back to the mad dog in front of the wizard's house.
How to Clear Gobliiins Level 11
Switch to 
Dwayne/Oups and click the rocks to the left of the
tree roots in the bottom-left of the screen. He will walk to the corner of
the screen without getting too close to the dog. Then change the cursor to
a fist and click the dog. You will release the bird, distracting the
dog. However, you still need to avoid getting close to the dog.
Switch to 
Hooter/Ignatius and click the rocks to the left of the
tree roots in the bottom-left of the screen. He will walk to the corner of
the screen without getting too close to the dog. Then change the cursor to
a fist and click the dog. The dog will grow wings and fly away.
Next, switch to 
Bobo/Asgard and change the cursor to a fist,
and click the small wooden door that you can see through the stone archway.
It will open.
This completes the level. Click the flashing "Go" in the open door. Make a note of the code in the bottom-left of the screen ( ), then click anywhere to continue to the next level, Inside the Wizard's House, Part 2.