Exam 14: Strategies for Firm Growth

Two years ago, Cameron Jones and Mary Scott each owned a small chain of smoothie restaurants in New York City. Just recently, they decided to pool their interests and combine their individual chains of restaurants into one chain. What Cameron and Mary did with their firms is called a(n) ________.

Which of the following statements is NOT true regarding new product development?

In a link joint venture, the partners collaborate at a single point in the value chain to gain economies of scale in production or distribution.

New product development is a low-risk growth strategy.

Which of the following was identified in the textbook as a disadvantage of participating in strategic alliances and joint ventures?

Describe the internal growth strategy of new product development. Why is it a competitive necessity in some industries that entrepreneurial firms focus on this form of growth?

The What Went Wrong feature in Chapter 14 focuses on the failure of Crumbs Bake Shop, a specialty-restaurant chain that sold gourmet cupcakes. According to the feature, Crumbs failed due to ________.

According to the textbook, the key to effective merchandise and character licensing is ________.

In the context of strategic alliances, ________ alliances typically match a company with a distribution system with a company that has a product to sell to increase sales of a product or service.

Licensing is the granting of permission by one company to another company to use a specific form of its intellectual property under clearly-defined conditions.

Which of the following is the primary advantage of a wholly owned subsidiary as a foreign market entry strategy?

Filtereasy, the company profiled in the opening feature of Chapter 14, provides a monthly subscription service for ________.

According to a survey of rapid growth firms conducted by the Small Business & Entrepreneurship Council and the Financial Services Roundtable, ________ percent of all U.S. exports are accounted for by small businesses.

Work that is done for a company by people other than the company's full-time employees is referred to as ________.

Describe what a product line extension strategy is. What are the advantages of this strategy? Describe a company you are familiar with that utilizes a product line extension growth strategy.

Loss of proprietary information is a disadvantage of participating in strategic alliances and joint ventures.

Geographic expansion is most common in manufacturing settings.

The ________ is the company that owns the intellectual property. The ________ is the company purchasing the right to use it.

Entrepreneurial businesses that grow by expanding from their original location to additional geographic sites are pursuing a ________ strategy.

A joint venture is a partnership between two or more firms that is developed to achieve a specific goal and has no joint ownership involved.