Exam 14: Strategies for Firm Growth

A market penetration strategy involves actions taken to increase the sales of a product or service through greater marketing efforts or through increased product capacity and efficiency.

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

In many fast-paced industries, new product development is a competitive necessity.

Shelly Watters owns a chain of fashion boutiques that started in Washington, DC and has expanded into Maryland, Virginia, and West Virginia. Shelly is growing her company via a strategy of ________.

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

Pam Ryan owns a store that sells running shoes and related products. Pam is currently trying to increase sales through endorsements by famous runners and former Olympic athletes. Pam is pursuing a(n) ________ strategy.

Which of the following is a disadvantage of growth by means of external growth strategies?

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

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.

In an acquisition, the surviving firm is called the ________, and the firm that is acquired is called the ________.

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

________ 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 growth by means of external growth strategies?

A spin-out occurs when a large company divests itself of one of its smaller divisions and the division becomes an independent company.

Chris Smith owns a store that sells all-terrain vehicles (ATVs). In the past, Chris just sold one version of each of the ATVs he sold in his showroom, but to increase sales, Chris now sells a low-end, a medium-priced, and a high-end version of each of the ATVs he sells. Chris's new strategy is called a(n) ________ strategy.

Rachel Watts owns a chain of office supply stores. Over the past three years, Rachel has significantly increased her sales through the outright purchase of additional office supply stores. Rachel is pursuing a(n) ________ strategy.

A product line extension strategy involves making additional versions of a product so that it will appeal to a different clientele or making related products to sell to the same clientele.

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

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

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