These cases follow Emilia Nguyen-newly-appointed CEO of her family's third-generation real estate business in the historic district of Scott's Addition in Richmond, Virginia-as she prepares her proposal to renovate her family's 8,000 sq. ft., three-story Art Deco building. She plans to convert the building from traditional annual-lease office suites into a coworking space with five separate options, each with its own price point. Four of these options are available as a month-to-month rental, and one option will be offered to walk-in customers in a café. In the A case, Nguyen examines survey data from 50 respondents that captures willingness-to-pay (WTP) price points for each of the four monthly rental options. She must set prices and allocate the available space between these options to optimize revenue. Students are provided with a spreadsheet of survey results and asked to calculate the optimal price point for one of the four monthly rental options, ignoring capacity constraints. Then students must recalculate their answers while considering all four options and capacity constraints. Thus students must solve a problem that incorporates both pricing and capacity allocation decisions.

These cases follow Emilia Nguyen-newly-appointed CEO of her family's third-generation real estate business in the historic district of Scott's Addition in Richmond, Virginia-as she prepares her proposal to renovate her family's 8,000 sq. ft., three-story Art Deco building. She plans to convert the building from traditional annual-lease office suites into a coworking space with five separate options, each with its own price point. Four of these options are available as a month-to-month rental, and one option will be offered to walk-in customers in a café. In the B case, Nguyen must develop a pricing scheme for walk-in customers who want to rent office space in the café, which occupies half of the first floor. She is deciding between establishing a fixed price-per-day and hourly pricing. This requires calculating the optimal price for each pricing scheme and comparing the respective revenues. She examines survey data from 20 respondents that captures WTP price points for spending up to eight hours working in the café (in increments of one hour). Students are again provided with a spreadsheet of survey results which allows them to calculate the optimal pricing scheme (and price) without considering capacity constraints, then again repeating the calculation after considering capacity constraints.

Spreadsheet supplement for case UV8155.

This fictional, international case explores online delivery models through the voices of two female protagonists: Melis Aydin, COO, who is from Turkey; and Athena Galini, CEO, who is from Greece. They have recently begun an online grocery-delivery (OGD) service called GidaExpress (i.e., Express Food) by closing on a TRY300,000 low-interest loan and entering a start-up incubator in Istanbul, Turkey. Aydin and Galani are evaluating three models for hiring drivers-all full-time employees who can be trained (and perhaps provide more consistent and higher-quality customer service); all independent workers who are paid a wage rate that escalates in order to meet demand; or a hybrid of the two. This story allows for a discussion of the strategic trade-offs between investing in a full-time workforce and sourcing independent workers of unknown quality using a fluctuating wage rate, and how these decisions impact the ability of the business to deliver on the value proposition.

Student spreadsheet for case UV7907.