Appshop, Inc.

Abstract

A regional director of a consulting firm must decide how to compete for a major consulting contract. Appshop can take a level payment contract, a lower level payment with a prospective bonus given high performance, or bid on an RFP where a significant reward is given contingent on the client's savings. The case can be used to introduce Monte Carlo simulation modeling and to build skills in structuring a decision tree in a spreadsheet. It affords an opportunity to simulate alternative risk profiles and to discuss their comparative advantages.

Citation

Bodily, S.E. and Clark, E. (2017), "Appshop, Inc.", . https://doi.org/10.1108/case.darden.2016.000026