Chapter 7 – Strategies for Growth

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

• Acquiring a competitor

• Licensing your brand to another company

• Expanding product offerings within your own company

• Forming a joint venture

Which company partnership is a real-world example of a joint venture?

• Touch 'n Go and Boost

• Proton and Geely

• AirAsia and Visa

• Shopee and Lazada

Which of the following best describes a franchising model?

• A company builds and transfers a facility abroad

• A company allows others to use its brand and business method

• A firm produces goods in its home country and exports them

• Two firms create a new jointly-owned business

What distinguishes a scale joint venture from a link joint venture?

• Scale JV involves unrelated industries

• Link JV focuses on similar industries

• Scale JV combines similar resources; link JV combines different strengths

• Link JV is only for short-term projects

Which of the following is a legit example of a licensing agreement?

• Proton and Geely forming a new entity

• Petronas allowing foreign firms to use its lubricant formulas

• McDonald's opening outlets in Malaysia

• Nestlé launching a new flavor of Milo

What is the purpose of a turnkey project?

• To form a long-term partnership

• To share intellectual property

• To build and transfer a facility ready for operation

• To launch a new product line in a domestic market

Which of the following is an example of geographic expansion?

• Maggi releasing a new instant noodle flavor

• Secret Recipe opening outlets in Thailand

• Nestlé launching Milo in Malaysia

• TNB acquiring another energy producer in Malaysia

True or False: A wholly owned subsidiary is partially controlled by a foreign partner.

• True

• False

True or False: Exporting means producing goods in a foreign market for domestic use.

• True

• False

True or False: Franchising involves giving another party the right to replicate your brand and business model.

• True

• False