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Top 10 Term that MBA Students know
1. Competitive Advantage First off, Dr. Thompson explains a competitive advantage "as an upper hand (production, delivery of service, etc.) that results in lower cost or higher sales than the competition, but mainly, that results in higher margins than the competition." It's a matter of knowing if assets, production processes, human resources, etc. are working more efficiently so that margins are higher than the competition, and, when he refers to margins, that instantly connects to the concept of ROA. Related Article: What Can You Do with an MBA? 2. ROA " ROA or Return on Assets is a measure of how efficiently your assets are working for you in the production of sales," says Thompson. "This is usually measured as net profits/total assets. For example, if your ROA is higher than the industry average, your assets are providing you with a competitive advantage." In addition to ROA, some other related terms are ROE and ROI . "These are simila...
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