Glossary of terms

Asset-based valuation Valuing the firm based solely on its balance sheet, focusing on the fair-market value of total assets minus total liabilities.

BATNA Best alternative to a negotiated agreement, or your walk-away position in a negotiation.

Beta A measure of how volatile a stock’s value has been, relative to the market as a whole; one of the indicators of how ‘risky’ a particular stock is.

Blue ocean An uncontested market space, distinct from a red ocean in which many other firms are competing.

Business strategy The choices a firm makes in how one business unit competes in a particular market.

Capabilities How a firm deploys its resources; ‘distinctive’ capabilities are those that the firm does better than others.

Capital ...

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