Business logic case

[raptor93]

I have a doubt clarification regarding the market's Geo-location selection.
Can the team define its own Geo-location for manufacturing the car depending on the market of that location which has cheap labor and resources.
Also can we define our target selling market's Geo-location where we expect maximum profits depending on the growth rate of the automobile industry and its GDP.
Also -The rules committee replied that the Target production cost should be same as cost report cost. Then how will we scale the cost report price to determine the mass production cost which is the target production cost in the business logic report.

Hence shouldn't the target selling price be same as cost report cost and then we scale down the cost report prices to determine the mass production cost which will be our target production cost.

Thanks in advance.

[JulianH]

Hello,

I'm not sure if this is the same at every competition, but as far as I know, the Cost of the car is fixed by the Cost report value, it doesn't matter if you are going to produce 100 Cars or 500 cars, if your car costs 12.000$ in Cost, you take that value and look at how many cars will be sold according to the demand curve.
There is no Geo factor in the Cost report. So it doesn't matter if you are planning to produce in Germany or in China, the cost are the same. Therefore you can't say "Ah we will produce in Uganda for 10% of the cost in the US and sell in Switzerland for 150% of the earnings of the US"...
The demand curve probably is considered to be the average of the following 5 years, so "growth rate" etc. is also not included in your Logic Case.

The BLC was implemented as simple as possible and I think in the following years they will further increase the compelxity of the thoughts of the students but right now, you can keep it simple.

Cheers