ENTR: Chapter 14

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

Technology

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

True

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

acquisition

market penetration strategy

actions taken to increase the sales of a product or service through greater marketing efforts or through increased production capacity and efficiency

Internal Growth Strategies

involve efforts taken within the firm itself, such as new product development

new product development

involves designing, producing and selling new products as a means of increasing firm revenues and profitability

Merchandise and character licensing

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

Technology Licensing

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

outsourcing

work that is done for a company by people other than the company full-time employees

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

False

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.

Internal

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

Merchandise and character

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

N/A

organic growth

does not rely on outside intervention: internally generated growth

improving an existing product or service

enhancing quality, making it larger or smaller, convenient

joint venture

entity created when two or more firms pool a portion of their resources to create a separate, jointly owned organization

external growth strategies

establishing relationships with third parties

Licensing agreement

formal contract between licensor and licensee

Licensing

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

product line extension strategy

making additional versions of a product so that it will appeal to different clientele

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

merger; acquisition

spin out

occurs when a larger company divests itself of one of its smaller divisions and the division becomes and independent company

acquisition

outright purchase of one firm by another Surviving firm: Acquirer Firm that is Acquired: target

strategic alliance

partnership between two or more firms that is developed to achieve a specific goal

merger

pooling of interests to combine two or more firms into one

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

product line extension

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

technological