3.3.9 – Strategic Methods

Which of the following is a reason for business growth?

• Reduce cash flow

• Lower market share

• Achieve economies of scale

• Increase diseconomies

Which growth strategy involves expanding by selling more to the existing market?

• External growth

• Organic growth

• Joint venture

• Franchising

Which is a risk associated with rapid growth?

• Overtrading

• Improved liquidity

• Lower costs

• Reduced diseconomies

In Greiner’s Growth Model, which crisis follows rapid expansion?

• Autonomy crisis

• Direction crisis

• Growth crisis

• Innovation crisis

Which of the following best describes retrenchment?

• Expanding operations

• Cutting back to core areas

• Entering new markets

• Acquiring competitors

Which type of innovation focuses on creating a brand-new market?

• Product innovation

• Process innovation

• Disruptive innovation

• Kaizen

Benchmarking means:

• Lowering quality standards

• Copying best practices from others

• Focusing only on price cuts

• Using only in-house innovation

Which is a common barrier to innovation?

• Strong entrepreneurial culture

• Risk aversion

• High R&D spending

• Customer loyalty

What is offshoring?

• Closing factories abroad

• Moving production overseas

• Importing goods into home country

• Targeting only local customers

Which of the following is a method of entering international markets?

• Licensing

• Benchmarking

• Innovation

• Kaizen