Decoding Business Concepts: From CCP to Nudge Theory

Key Business Acronyms

• CCP: Chinese Communist Party
• OCA: Online Choice Architecture
• EBIT: Earnings Before Interest and Taxes
• CRS: Corporate Social Responsibility
• GPS: Global Positioning System
• COGS: Cost of Goods Sold

Scott Galloway on the Modern Business Landscape

Professor Scott Galloway highlights oil as the most important commodity. However, in the current era, he argues that social media platforms like TikTok are the real deal, although he believes TikTok should be banned due to its links with the CCP, which he considers a tool of espionage.

Innovation Strategies of Supermajors

Supermajors, or large oil and gas companies, are employing innovative strategies such as:

• Emotional Resonance: Engaging users through comments and attractive content.
• Offloading Content Production: Reducing costs and monetizing content by relying on users to create it.

Essential Business Vocabulary

• Accountability: Being responsible for doing something.
• Acquire: To buy a business or property.
• Algorithm: A set of rules used in calculations or problem-solving, especially by a computer.
• Asset: Something of value owned by a person or company.
• Backlash: A strong negative reaction.
• Autoplay: To reproduce automatically.
• Bolster: To reinforce or strengthen.
• Churn: The rate at which customers stop using a company's service and switch to another.
• Cohort: A group of people with the same characteristics.
• Digitization: The process of converting information into a digital format.
• Disruption: A major change to traditional methods, often through new technology.
• Downrank: To lower in rank or importance.
• Echo Chambers: Environments where a person encounters only beliefs or opinions that coincide with their own.
• Envisage: To imagine something in the future.
• Fracking: A method of getting oil or gas from rocks by injecting liquid at high pressure.
• Externalities: Costs or benefits that affect a third party who did not choose to incur that cost or benefit.
• Insurgent: Someone who is fighting against the government.
• Kevlar: A strong artificial material used in protective clothing.
• Machine Learning: A type of artificial intelligence that allows software applications to become more accurate in predicting outcomes without being explicitly programmed to do so.
• Market Cap: Market capitalization, the total value of a company's shares of stock.
• Monetization: The process of converting something into money.
• Offload: To get rid of something you do not want by selling it or giving it to someone else.
• Rabbit Hole: A situation in which you become so interested in an activity or subject that you cannot stop doing it or learning about it.
• Value Chain: The series of consecutive steps involved in creating a product or service.
• Slot Machine Effect: The addictive nature of certain activities, similar to the way slot machines are designed.
• Unfettered: Not limited or restricted.

Commonly Confused Words and Graph Terminology

• Do harm, do business, do a terrific job
• Raise: To increase something (requires an object).
• Rise: To increase (does not require an object).
• Arise: To emerge or come into existence.
• Arise from

Graph Terminology

• Slightly
• Significantly
• Considerably
• Fluctuated
• Plunge
• Remain steady
• Sharp rise
• Peak
• Dramatic fall

Cognitive Biases

Availability Bias

The availability bias is the tendency to give more importance to the cases that we can easily remember. We tend to generalize based on what comes to mind or recently available information.

Confirmation Bias

The confirmation bias is the tendency to search for, interpret, and recall information in a way that supports what we already believe.

Bernie Madoff: A Case Study in Fraud

Bernie Madoff was a financier who ran a massive Ponzi scheme, a type of investment fraud. He was sentenced to 150 years in prison for his crimes.

Nudge Theory and Behavioral Economics

Nudge theory is a concept in behavioral economics that proposes adaptive designs of the decision environment (choice architecture) as ways to influence the behavior and decision-making of groups or individuals.