Exam 14: Strategies for Firm Growth

Which of the following is an example of an external growth strategy?

Two years ago, Jason Jennings and Mary Scott each owned a small chain of bagel restaurants in Orange County, California. Just recently, they decided to pool their interests and combine their individual chains of restaurants into one chain. What Jason and Mary did with their firms is called a(n):

External growth strategies rely on establishing relationships with third parties, such as mergers, acquisitions, strategic alliances, joint ventures, licensing, and franchising.

Which of the following is the primary disadvantage of franchising as a foreign market entry strategy?

________ is the licensing of a recognized trademark or brand that the licensor typically controls through a registered trademark or copyright.

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

The Savvy Entrepreneurial Firm feature in Chapter 14 focuses on SwitchFlops, a company that produces sandals with interchangeable straps. The primary takeaway from the feature is that savvy growth-minded startups:

An advantage of internal growth is that it is a rapid form of growth.

Trevor Watts owns a printing company. Over the past three years, Trevor has significantly increased his sales through the outright purchase of other printing firms. Trevor is pursuing a(n) ________ strategy.

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

The What Went Wrong? feature in Chapter 15 focuses on StumbleUpon, an Internet startup which sold itself to eBay for $75 million. Surprisingly, just two years after eBay bought StumbleUpon:

________ growth strategies rely on establishing relationships with third parties, such as mergers, acquisitions, strategic alliances, joint ventures, licensing, and franchising.

Internal growth strategies involve efforts taken within the firm itself, such as new product development, other product-related strategies, and international expansion.

Which mechanism for firm growth involves the creation and sale of new products or services?

Qualcomm, a high-tech company headquartered in San Diego, owns the rights to several of the key components that permit cell phones to work. Instead of selling cell phones itself, Qualcomm grants permission to many companies, such as Samsung and LG, to use specific forms of its intellectual property in exchange for monetary compensation. Qualcomm in engaging in an external growth strategy referred to as:

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

Technology licensing is the licensing of a recognized trademark or brand that the licensor typically controls through a registered trademark or copyright.

In regard to acquisitions, many firms have found that the process of assimilating another company into their current operations is not easy and can stretch finances to the brink.

Which of the following was not identified as one of the keys to effective new product and service development?

Describe what a joint venture is. Identify the two types of joint ventures.