- Departments / Centres
Back-of-the-envelope question : A type of case question, most often a market-sizing question, that asks you to make an educated estimate of something. The back-of-the-envelope question received its name because the question used to start with, "You're on an airplane, with no books, phone, or any resources. On the back of an envelope figureâ€¦. "An example: "How many pairs of boxers are sold in the U.S. each year?"
Barrier to entry : Factor (such as capital requirements, access to distribution channels, proprietary product technology, or government policy) that would inhibit a company when entering a new market.
Benchmark : Continuously analyzing the industry leaders and determining what they do better. A comparison against the best to provide targets for achievement.
Bottom line : Gross sales minus taxes, interest, depreciation, and other expenses. Also called net profit, net earnings, or net income.
Brainteaser : A type of case question in which the interviewee is asked to solve a riddle or logic problem.
Cannibalize : To take (sales) away from an existing product by selling a similar but new product usually form the same manufacturer; also: to affect (an existing product) adversely by cannibalizing sales.
Capital : Cash or goods used to generate income.
Case question : A fun, intriguing, and active interviewing tool used in consulting interviews to evaluate the multi-dimensional aspects of a candidate.
Core competencies : The areas in which a company excels.
Cost of goods sold (COGS) : On an income statement, the cost of purchasing raw materials and manufacturing finished products.
Cost-based pricing : A pricing strategy in which a product or service is priced according to the cost of producing, manufacturing, or otherwise creating the product or service. R&D and COGS are the major determinants in the pricing strategy.
Cost-benefit analysis : A technique designed to determine the feasibility of a project or plan by quantifying its costs and benefits.
Depreciation : A decrease in estimated value.
Distribution channel : Means by which a producer of goods or services reaches his or her final users.
Economy of scale : Reduction in cost per unit resulting from increased production, realized through operational efficiencies.