Exam 14: Strategies for Firm Growth

An acquisition is the pooling of interests to combine two or more firms into one. An merger is the outright purchase of one firm by another.

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

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

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 an example of an external growth strategy?

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.

New product development is a high-risk growth strategy.

Internally generated growth is often called ________ growth because it does not rely on outside intervention.

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

In a ________, the partners collaborate at a single point in the value chain to gain economies of scale in production or distribution. In a ________, the position of the parties is not symmetrical, and the objectives of the parties may diverge.

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

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

Which of the following was not mentioned in the textbook as a reason that new products fail?

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

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