Common Terms of Business | Case Interview Basics

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Common Terms of Business

Opportunity Costs

Common Terms of Business

Opportunity costs are an economic concept to quantify benefits of alternatives that were ignored while making a decision. Precisely, opportunity(...)

Opportunity costs are an economic concept to quantify benefits of alternatives that were ignored while making a decision. Precisely, opportunity costs are the value(...)

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Economy of Scale and Economy of Scope

Common Terms of Business

Economies of scale are cost advantages of a company due to its large size. Most companies and businesses can realize advantages of scale that are(...)

Economies of scale are cost advantages of a company due to its large size. Most companies and businesses can realize advantages of scale that are a result of two eff(...)

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The Tuckman Model

Common Terms of Business

At the core of comprehending team dynamics is the ingenious creation of Bruce Tuckman, the Tuckman Model. Bruce Tuckman, an eminent psychologist(...)

At the core of comprehending team dynamics is the ingenious creation of Bruce Tuckman, the Tuckman Model. Bruce Tuckman, an eminent psychologist and researcher, intr(...)

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Servant Leadership

Common Terms of Business

The concept of Servant Leadership assumes that a leader is first and foremost a servant or sidekick. Sounds strange, doesn't it? People usually t(...)

The concept of Servant Leadership assumes that a leader is first and foremost a servant or sidekick. Sounds strange, doesn't it? People usually think that the boss o(...)

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Net Present Value - NPV

Common Terms of Business

The net present value (NPV) allows you to evaluate future cash flows based on the present value of money. It is the sum of present values of mone(...)

The net present value (NPV) allows you to evaluate future cash flows based on the present value of money. It is the sum of present values of money in different futur(...)

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Balance Sheet

Common Terms of Business

A balance sheet, also known as the financial position statement, depicts a company's financial balance in terms of assets and liabilities/equity.(...)

A balance sheet, also known as the financial position statement, depicts a company's financial balance in terms of assets and liabilities/equity. As opposed to an in(...)

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Design Thinking

Common Terms of Business

Design Thinking is more than just an approach or a method – it's a non-linear, iterative process that places creativity and problem-solving at it(...)

Design Thinking is more than just an approach or a method – it's a non-linear, iterative process that places creativity and problem-solving at its core. To understan(...)

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Income Statement

Common Terms of Business

The income statement or profit and loss statement (P&L) is a summary of the annual revenues, costs, and profits/loss, and is one of the three(...)

The income statement or profit and loss statement (P&L) is a summary of the annual revenues, costs, and profits/loss, and is one of the three financial indicator(...)

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Cash Flow Statement

Common Terms of Business

The cash flow statement belongs to one of the three financial statements in addition to the balance sheet and income statement. Cash flow stateme(...)

The cash flow statement belongs to one of the three financial statements in addition to the balance sheet and income statement. Cash flow statements show the inflow/(...)

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Supply and Demand

Common Terms of Business

The supply and demand of products is a key concept in economics. Briefly, the law of supply and demand states that the availability of a product(...)

The supply and demand of products is a key concept in economics. Briefly, the law of supply and demand states that the availability of a product (supply) and its des(...)

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Fixed & Variable Costs

Common Terms of Business

Fixed and variable costs are a crucial part of a financial analysis. You should be aware by now of the profitability framework in which we calcul(...)

Fixed and variable costs are a crucial part of a financial analysis. You should be aware by now of the profitability framework in which we calculate profits by subtr(...)

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CAGR - Compound Annual Growth Rate

Common Terms of Business

The Compound Annual Growth Rate (CAGR) is a really important tool for a consultant to compare long-term growth scenarios. It is the average rate(...)

The Compound Annual Growth Rate (CAGR) is a really important tool for a consultant to compare long-term growth scenarios. It is the average rate at which a value (e.(...)

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The Scrum Framework: A Guide for Aspiring Consultants

Common Terms of Business

Scrum is a popular agile development framework that has found widespread acceptance in various industries due to its ability to foster collaborat(...)

Scrum is a popular agile development framework that has found widespread acceptance in various industries due to its ability to foster collaboration and deliver high(...)

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The Kanban Framework

Common Terms of Business

In your journey to becoming an efficient consultant, understanding various work management systems is crucial. One such system that has made a pr(...)

In your journey to becoming an efficient consultant, understanding various work management systems is crucial. One such system that has made a profound impact, parti(...)

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The Blue Ocean Strategy

Common Terms of Business

The concept of the Blue Ocean Strategy (sometimes referred to as Value Innovation, Differentiation Strategy, Uncontested Market Space) was introd(...)

The concept of the Blue Ocean Strategy (sometimes referred to as Value Innovation, Differentiation Strategy, Uncontested Market Space) was introduced to the world by(...)

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Lean Management

Common Terms of Business

Lean Management is a business methodology derived from the Toyota Production System (TPS) that focuses on reducing waste (non-value-adding activi(...)

Lean Management is a business methodology derived from the Toyota Production System (TPS) that focuses on reducing waste (non-value-adding activities) in order to im(...)

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Peter Principle

Common Terms of Business

In today's business world, competition is tougher than ever. Companies are looking for ways to differentiate themselves from the competition and(...)

In today's business world, competition is tougher than ever. Companies are looking for ways to differentiate themselves from the competition and succeed. In this que(...)

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Emotional Intelligence

Common Terms of Business

Emotional intelligence refers to a person's ability to recognize, understand, and regulate their own emotions, as well as perceive, interpret, an(...)

Emotional intelligence refers to a person's ability to recognize, understand, and regulate their own emotions, as well as perceive, interpret, and respond appropriat(...)

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Information Technology Infrastructure Library (ITIL)

Common Terms of Business

The Information Technology Infrastructure Library (ITIL) is a globally recognized set of best practices designed to support the delivery of high-(...)

The Information Technology Infrastructure Library (ITIL) is a globally recognized set of best practices designed to support the delivery of high-quality information(...)

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DevOps

Common Terms of Business

DevOps is an innovative software development strategy conceived around 2008. This paradigm arose from the need for more effective collaboration b(...)

DevOps is an innovative software development strategy conceived around 2008. This paradigm arose from the need for more effective collaboration between project manag(...)

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Five Dysfunctions of a Team

Common Terms of Business

The ‘Five Dysfunctions of a Team’ is a model developed by Patrick Lencioni in his business novel of the same name. Patrick Lencioni is a renowned(...)

The ‘Five Dysfunctions of a Team’ is a model developed by Patrick Lencioni in his business novel of the same name. Patrick Lencioni is a renowned author and consulta(...)

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Kolb's Learning Circle

Common Terms of Business

In the 1970s, educator and psychologist David A. Kolb developed a model of experiential learning called the learning circle. This cycle describes(...)

In the 1970s, educator and psychologist David A. Kolb developed a model of experiential learning called the learning circle. This cycle describes the process of how(...)

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Interpersonal Communication

Common Terms of Business

Interpersonal communication refers to the exchange of information, thoughts, feelings, and ideas between individuals. It includes both verbal and(...)

Interpersonal communication refers to the exchange of information, thoughts, feelings, and ideas between individuals. It includes both verbal and non-verbal communic(...)

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Six Sigma

Common Terms of Business

In today's highly competitive business landscape, the pursuit of excellence extends beyond mere product delivery and service provision. Companies(...)

In today's highly competitive business landscape, the pursuit of excellence extends beyond mere product delivery and service provision. Companies are increasingly de(...)

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The Role of the Hypothesis in Consulting

Common Terms of Business

In the field of consulting, the hypothesis plays a central role in the analysis of problems, the development of solutions and the derivation of s(...)

In the field of consulting, the hypothesis plays a central role in the analysis of problems, the development of solutions and the derivation of strategic recommendat(...)

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The Roots and Effects of Inflation

Common Terms of Business

Inflation is an economic phenomenon in which there is a sustained increase in the general level of prices for goods and services. This leads to a(...)

Inflation is an economic phenomenon in which there is a sustained increase in the general level of prices for goods and services. This leads to a decrease in the pur(...)

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Learning Organization

Common Terms of Business

Learning OrganizationIn an VUCA era marked by relentless technological advancements, shifting market dynamics, and unpredictable global challenge(...)

Learning OrganizationIn an VUCA era marked by relentless technological advancements, shifting market dynamics, and unpredictable global challenges, the concept of a(...)

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Theory of Planned Behavior

Common Terms of Business

Why do people make the choices they do? What drives individuals to engage in specific behaviors, whether it's adopting a healthy lifestyle, conse(...)

Why do people make the choices they do? What drives individuals to engage in specific behaviors, whether it's adopting a healthy lifestyle, conserving the environmen(...)

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Situational Leadership

Common Terms of Business

In the dynamic world of leadership and management, one concept has consistently proven its effectiveness - Situational Leadership. This adaptable(...)

In the dynamic world of leadership and management, one concept has consistently proven its effectiveness - Situational Leadership. This adaptable approach has gained(...)

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Theory of Constraints

Common Terms of Business

Theory of Constraints (TOC), also known as Bottleneck theory, was developed by Israeli physicist and entrepreneur Eliyahu M. Goldratt. This theor(...)

Theory of Constraints (TOC), also known as Bottleneck theory, was developed by Israeli physicist and entrepreneur Eliyahu M. Goldratt. This theory is a management ap(...)

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Herzbergs 2-Factor Theory

Common Terms of Business

The Herzberg 2-factor-theory, also known as the two-factor theory or motivation-hygiene theory, was developed in the 1950s by Frederick Herzberg.(...)

The Herzberg 2-factor-theory, also known as the two-factor theory or motivation-hygiene theory, was developed in the 1950s by Frederick Herzberg. Herzberg was an Ame(...)

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Capability-Based Planning

Common Terms of Business

Capability-Based Planning (CBP) is a strategic planning method designed to help organizations achieve their business objectives through the effec(...)

Capability-Based Planning (CBP) is a strategic planning method designed to help organizations achieve their business objectives through the effective use of their ca(...)

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Unique Value Proposition (UVP)

Common Terms of Business

As an aspiring consultant, you will quickly realize that a company's success is closely linked to its ability to differentiate itself from the co(...)

As an aspiring consultant, you will quickly realize that a company's success is closely linked to its ability to differentiate itself from the competition. Here, jus(...)

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