Business Case Studies & Business Publications

Appshop, Inc.

Bodily, Samuel E.,...

Case

Appshop, Inc.

Bodily, Samuel E.; Clark, Eric

QA-0618 | Published August 22, 2003 | 2 pages Case

Collection: Darden School of Business

Product Details

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.