bcg case 2nd round german office:
1. your client is a german car rental company, charges 250 Euro for renting out a mercedes s-class. the customer can ride 300km for free and gets charged an additional fee for every extra-km. how much should our client charge in order to achieve the same profit margin for the first 300km as for every km thereafter.
very unconventional case; key is costs=purchase price mercedes s-class - sale price mercedes s-class after 20 Th driven km. (70000-60000 = 10000). thus costs (for each km)=10000D/20000km=0.5D/km
some other people got asked following:
1. Please estimate the german market for dog arthrosis medicine; straight-forward: household-based estimation of dogs; age of arthritis; incidenc; how many dogs get diagnosed? how many dogs get treated...
2. how many chicken farms are there in the world?
3. your client is a german drug manufacturer. next year the patent for one of the drugs expires. please estimate the revenues for this drug next year after expiration of the patent.
good luck;)
Here is my answer for the car rental case, is that right? Profit margin= (rev-cost)/rev (250-0.5x350)/250 =(a-0.5)/a (250-175)/250 =(a-0.5)/a 75a=250a-125 125=175a A=125/175= 0.7D/km