(c) Michael Kraten, All Rights Reserved.
Here is the link to the introduction of the game. Here is the link to the first module of the game. Here is the link to the second module of the game. Here is the link to the third module of the game. This is the fourth module of the game.
Purpose of Conversation: A venture capitalist has offered to purchase the entire Vastarian project from WOW and to assume responsibility for all current and future liabilities.
Meanwhile, Matt has decided to fire PRS. He has offered John Formica the opportunity to “sign up” BFAC as a client if WOW decides to turn down the venture capitalist and keep the Vastarian project.
New Information: John Formica is ambivalent about the attractiveness of WOW as a new client opportunity. Although he is excited by the possibility of establishing a long term relationship with a global energy client, his “risk antennae” are buzzing with the fear that the Vastarian project carries substantial risk and no long term sustainable future.
Choice a: Do nothing and proceed with the project.
There is a 25% probability that “bad press,” human capital recruiting challenges, and distrust among potential customers and government regulators will result in a $250 million loss of shareholder value at WOW.
Choice b: Sell the project to the venture capitalist.
WOW would initially receive $200 million for the project. There is a 50% probability, however, that the venture capitalist would “claw back” $40 million of these purchase proceeds after one year because of performance deficiencies at the project.
Choice c: Shut down the project.
WOW would initially spend $20 million on shut-down costs. There is a 25% probability that WOW would spend an additional $40 million on site reconfiguration costs to finance post-construction activities.