Exam 14: Strategies for Firm Growth

Describe what licensing is. What type of intellectual property can be licensed? Identify the two types of licensing pursued by entrepreneurial firms.

The two primary steps involved in finding an appropriate acquisition candidate are (1) Make a "short list" of appropriate acquisition candidates and (2) ________.

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

Brian Ramsey owns a firm that develops and sells smartphone accessories. He is currently trying to grow his firm through strategic alliances and joint ventures. Brian is pursuing a(n) ________ growth strategy.

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

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 an advantage of internal growth strategies?

If a business enhances the quality of a product, makes it more convenient to use, improves its durability, or makes it more up-to-date, any one of those initiatives fall under the category of ________.

A ________ strategy seeks to increase the sales of a product or service through greater marketing efforts or through increased production capacity and efficiency.

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

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 to use specific forms of its intellectual property in exchange for monetary compensation. Qualcomm in engaging in an external growth strategy referred to as ________.

Shelby Collins owns a firm that designs and sells women's clothing. She is currently trying to grow her firm by developing new product lines. Shelby is pursuing a(n) ________ growth strategy.

In the context of strategic alliances, ________ alliances feature cooperation in research and development, engineering, and manufacturing.

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

A(n) ________ strategy involves making additional versions of a product so that it will appeal to different clientele.

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

Explain the difference between internal and external growth strategies. Provide examples of each.

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

Technology licensing is the licensing of proprietary technology that the licensor typically controls by virtue of a utility patent.

Which of the following is an advantage of growth by means of external growth strategies?