Exam 14: Strategies for Firm Growth

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.

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Question 1

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A product line extension strategy involves making additional versions of a product so that it will appeal to different clientele or making related products to sell to the same clientele.For example,a company may take a low-end product,make another version of it that is a little better,and then make another version of it that represents the top of the line.The advantage of a product extension strategy is that it allows a firm to take one product and extend it into several products without incurring significant additional development expense.In regard to making related products to sell to the same clientele,many firms start by offering one product or service and then expand into related areas.Many companies utilize product extension strategies.Starbucks,for example,now sells bottled Frappuccino Coffee,which is an extension of its more traditional hot coffees and related drinks sold in its restaurants.

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 ________.

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Question 2

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New product development, other product-related strategies, and international expansion are examples of ________ growth strategies.

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Question 3

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Shake Smart, the company profiled in the opening feature of Chapter 14, sells nutritious smoothie-like shakes. The first place the shakes were sold was ________.

(Multiple Choice)

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Question 4

The majority of entrepreneurial firms first enter foreign markets as exporters.

(True/False)

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Question 5

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.

(Multiple Choice)

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Question 6

Samantha Jones owns a chain of ice cream stores in New England. To draw attention to her stores, she adopted a very colorful and distinctive logo several years ago, which depicts a funny-looking cow churning ice cream. Recently, a dairy company asked Samantha if it could use a characterization of her funny-looking cow on a line of yogurt it is coming out with, and offered to pay Samantha's company 3 cents for every carton of yogurt it sells that has the cow's image on the carton. If Samantha accepts this proposal, she will need to enter into a(n) ________ agreement with the dairy.

(Multiple Choice)

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Question 7

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.

(True/False)

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Question 8

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

(Multiple Choice)

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Question 9

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

(True/False)

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Question 10

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.

(True/False)

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Question 11

The Partnering for Success feature in Chapter 14 is titled "Three Steps to Alliance Success." The three steps to alliance success identified in the feature are ________.

(Multiple Choice)

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Question 12

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 ________.

(Multiple Choice)

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Question 13

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

(Multiple Choice)

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Question 14

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

(Multiple Choice)

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Question 15

A(n) is the pooling of interests to combine two or more firms into one. A(n) is the outright purchase of one firm by another.

(Multiple Choice)

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Question 16

International new ventures are ________.

(Multiple Choice)

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Question 17

Which of the following was not identified in Chapter 14 as one of the top five reasons new products fail?

(Multiple Choice)

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Question 18

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

(Multiple Choice)

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Question 19

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.

(Multiple Choice)

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Question 20

Showing 1 - 20 of 75

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.

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 ________.

New product development, other product-related strategies, and international expansion are examples of ________ growth strategies.

Shake Smart, the company profiled in the opening feature of Chapter 14, sells nutritious smoothie-like shakes. The first place the shakes were sold was ________.

The majority of entrepreneurial firms first enter foreign markets as exporters.

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.

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

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

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.

The Partnering for Success feature in Chapter 14 is titled "Three Steps to Alliance Success." The three steps to alliance success identified in the feature are ________.

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 ________.

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

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

A(n) is the pooling of interests to combine two or more firms into one. A(n) is the outright purchase of one firm by another.

International new ventures are ________.

Which of the following was not identified in Chapter 14 as one of the top five reasons new products fail?

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

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Venture's Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Franchising

Filters

Exam 14: Strategies for Firm Growth

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.

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 ________.

New product development, other product-related strategies, and international expansion are examples of ________ growth strategies.

Shake Smart, the company profiled in the opening feature of Chapter 14, sells nutritious smoothie-like shakes. The first place the shakes were sold was ________.

The majority of entrepreneurial firms first enter foreign markets as exporters.

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.

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

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

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.

The Partnering for Success feature in Chapter 14 is titled "Three Steps to Alliance Success." The three steps to alliance success identified in the feature are ________.

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 ________.

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

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

A(n) ________ is the pooling of interests to combine two or more firms into one. A(n) ________ is the outright purchase of one firm by another.

International new ventures are ________.

Which of the following was not identified in Chapter 14 as one of the top five reasons new products fail?

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

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Venture's Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Franchising

Filters

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

A(n) is the pooling of interests to combine two or more firms into one. A(n) is the outright purchase of one firm by another.