Question 1

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

Accepted Answer

Internally generated growth refers to the growth that a company achieves through its own resources and capabilities, without relying on external sources such as mergers, acquisitions, or investments. It is often referred to as organic growth because it occurs naturally, from within the organization.

Question 2

Which of the following is an example of an external growth strategy?
A) Geographic expansion
B) Improving an existing product or service
C) Increasing the market penetration of an existing product or service
D) Extending product lines
E) Strategic alliances

Accepted Answer

E

Question 3

An advantage of internal growth is that it is a rapid form of growth.

Accepted Answer

Internal growth is usually slower than external growth methods such as mergers and acquisitions, but it does have the benefit of being more controlled and less risky.

Question 4

New product development is a low-risk growth strategy.

Accepted Answer

New product development typically involves a high level of risk, as success cannot be guaranteed and substantial investment is often required upfront. It is therefore considered a high-risk growth strategy.

Question 5

Which of the following is an advantage of internal growth strategies?
A) Need to develop new resources
B) Get quality and pricing right
C) Investment in a failed internal effort can be difficult to recoup
D) Provides maximum control
E) Adds to industry capacity

Accepted Answer

Internal growth strategies provide maximum control as the company is using its own resources to grow and expand.

Question 6

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

Accepted Answer

External growth strategies involve efforts taken outside of the firm, such as mergers, acquisitions, and strategic partnerships. Internal growth strategies would involve efforts taken within the firm itself, such as new product development and international expansion.

Question 7

Which of the following was not identified in Chapter 14 as one of the top five reasons new products fail?
A) The potential market was overestimated.
B) Customers saw the product as too expensive.
C) Lack of passion for the product
D) The product was no different than the competition's.
E) The costs of developing the product line were too high.

Accepted Answer

Lack of passion for the product was not identified as one of the top five reasons new products fail in Chapter 14. The other options (A, B, D, and E) were all discussed as potential reasons for new product failures.

Question 8

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

Accepted Answer

The answer of Explain the difference between internal and external...

Question 9

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) increasing the market penetration of an existing product or service
B) extending product lines
C) geographic expansion
D) licensing
E) improving an existing product or service

Accepted Answer

Improving an existing product or service includes enhancing its quality, convenience, durability, or updating it to make it more current. It is a common strategy used by businesses to stay competitive in the market and retain existing customers.

Question 10

Modcloth, Zappos and Sir Kensington's are examples of firms that are growing via ________ growth strategies.
A) in-house
B) external
C) internal
D) central
E) derivative

Accepted Answer

These firms are growing through internal growth strategies, which involve expanding their operations, product lines, or market reach from within the company itself rather than through mergers, acquisitions, or partnerships.

Question 11

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 ________.
A) at a pop-up store in the Memorial Union on the Iowa State University campus
B) at a kiosk just outside the Aztec Center on the San Diego State University campus
C) at concession stands in Spartan Stadium on the Michigan State University campus
D) on central campus at the University of Nebraska campus
E) in the Lory Student Center on the Colorado State University campus

Accepted Answer

The opening feature of Chapter 14 states that the first place the shakes were sold was at a kiosk just outside the Aztec Center on the San Diego State University campus.

Question 12

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.
A) in-house
B) center
C) domestic
D) external
E) internal

Accepted Answer

Shelby is pursuing an internal growth strategy by developing new product lines within her existing firm, rather than through partnerships, acquisitions, or expansions into new markets.

Question 13

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

Accepted Answer

In order to stay ahead of competitors and meet changing customer demands, fast-paced industries often require continuous innovation and new product development.

Question 14

Internally generated growth is often called organic growth because it does not rely on ________.
A) outside intervention
B) its own skills and capabilities
C) external funding
D) internal leadership
E) internal design expertise

Accepted Answer

The answer of Internally generated growth is often called organic...

Question 15

Which of the following statements is not true regarding new product development?
A) New product development involves designing, producing, and selling new products as a means of increasing firm revenues and profits.
B) When new product development is properly executed, there is tremendous upside potential.
C) The key to successful new product development strategy is to develop products that aren't simply "me-too" products.
D) In general, developing new products is a low-risk strategy.
E) In many fast-paced industries, new product development is a competitive necessity.

Accepted Answer

Developing new products is often considered a high-risk strategy because it involves significant investment in research and development, design, and marketing without any guarantee of success. Many new products fail to gain market acceptance, resulting in significant financial losses for the firm.

Question 16

New product development, other product-related strategies, and international expansion are examples of ________ growth strategies.
A) external
B) domestic
C) primary
D) internal
E) in-house

Accepted Answer

New product development, other product-related strategies, and international expansion are examples of internal growth strategies, as they involve efforts within the company to expand its operations or market reach.

Question 17

Describe the internal growth strategy of new product development. Why is it a competitive necessity in some industries that entrepreneurial firms focus on this form of growth?

Accepted Answer

The answer of Describe the internal growth strategy of new...

Question 18

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 ________.
A) utilize both internal and external growth strategies
B) emphasize internal rather than external growth strategies
C) emphasize international growth strategies from their inception
D) configure their products and services in ways that have built-in growth potential
E) compete on the basis of quality rather than price

Accepted Answer

The primary takeaway from the feature on SwitchFlops is that savvy growth-minded startups configure their products and services in ways that have built-in growth potential, which is evident in the interchangeable strap feature in SwitchFlops. The feature doesn't mention any emphasis on internal or external growth strategies, international growth, or competition on the basis of quality or price.

Question 19

Which of the following was not identified in the textbook as a key to effective new product development?
A) Develop products that add value.
B) Get quality and pricing right.
C) Find a need and fill it.
D) Conduct ongoing feasibility analysis.
E) Focus on broad target markets.

Accepted Answer

The textbook does not identify focusing on broad target markets as a key to effective new product development. Instead, it emphasizes the importance of identifying specific target markets and their needs in order to develop products that add value and fill a need.

Question 20

Which mechanism for firm growth involves the creation and sale of new products or services?
A) Strategic alliances
B) New product development
C) Licensing
D) Franchising
E) Joint ventures

Accepted Answer

New product development involves the creation and sale of new products or services, which can help a firm achieve growth by diversifying its offerings and accessing new markets. Strategic alliances, licensing, franchising, and joint ventures may also contribute to firm growth, but they do not necessarily involve the creation and sale of new products or services.

Quiz 14: Strategies for Firm Growth

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

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

An advantage of internal growth is that it is a rapid form of growth.

New product development is a low-risk growth strategy.

Which of the following is an advantage of internal growth strategies?

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

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

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

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 ________.

Modcloth, Zappos and Sir Kensington's are examples of firms that are growing via ________ 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 ________.

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

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

Which of the following statements is not true regarding new product development?

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

Describe the internal growth strategy of new product development. Why is it a competitive necessity in some industries that entrepreneurial firms focus on this form of growth?

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 ________.

Which of the following was not identified in the textbook as a key to effective new product development?

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