Business Case Studies & Business Publications

The Sequel to Chance Encounters

Pfeifer, Phillip E...

Case

The Sequel to Chance Encounters

Pfeifer, Phillip E.

QA-0831 | Published February 13, 2015 | 8 pages Case

Collection: Darden School of Business

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Movie-industry analyst David Fitzhugh must estimate the value of the sequel rights associated with Chance Encounters, a soon-to-be-produced movie. The producers intend to use the cash from the sale of the sequel rights to help fund production of the original movie. With the purchase of the sequel rights, the client fully intends to produce a sequel--should the original movie prove successful.

This case provides students the following opportunities: -Practice building and using simulation models in unstructured situations. -See that the models do not need to be literal to be useful. -Practice using data to construct probabilistic forecasts. -Explore how simulation modeling complements options thinking.