Assignment task:
Written Assignment has two parts. Each part provides an introduction followed by a series of questions. You are required to answer all of the questions in Parts 1 and 2. The answers can be found using the study materials provided in this module.
Your answers should be well developed and convey your understanding of the question topics. When it will strengthen your answer, you may quote or paraphrase relevant facts, ideas, and theories from your course reading materials. Be sure to cite these references in an appropriate manner following APA format.
Part 1:
In order to become successful, startups strive to achieve "sustained growth" over a sustained period of time. Growth is not a random or chance event. Rather, it is an objective that startups pursue deliberately. There are, however, challenges to growth such as managerial capacity, ability to achieve scale to meet customer needs, and the development/maintenance of professional business practices. Given those challenges, please answer the following questions:
1. What is sustained growth? Why is it important?
2. Is it possible for a firm to grow too fast? If so, what are the potential downsides?
3. List three reasons firms work hard to achieve market leadership.
4. Describe economies of scale and economies of scope as rationales for firm growth.
5. How does a firm's growth rate affect its ability to attract and retain talented employees?
6. Briefly describe the five stages of the organizational life cycle.
7. Give a brief overview of the managerial capacity problem.
8. Explain why cash flow management is an important issue for a venture that is entering a firm of rapid growth.
9. How do rapid growth firms deal with potential cash flow shortfalls?
10. One of the most difficult challenges involved with rapid growth is quality control. Why is this so?
Part 2:
Startups use internal and external growth strategies to achieve their growth objectives. Internal growth strategies rely on efforts generated within the firm itself, such as new product development, other product-related strategies, and international expansion. External growth strategies rely on establishing relationships with third parties, such as mergers, licensing, strategic alliances, joint ventures, and franchising. Both strategies have their advantages and disadvantages. Please answer the following questions:
1. Describe the difference between an internal and an external growth strategy. Provide examples of each strategy and how each one contributes to firm growth.
2. Describe the keys to effective new product and service development.
3. What is a market penetration strategy? Provide an example of a market penetration strategy, and describe how using it effectively might increase a firm's sales.
4. What is a product line extension strategy? Provide an example of a product line extension strategy, and describe how its effective use might increase a firm's sales.
5. What are the six foreign-market entry strategies? Briefly describe each strategy.
6. What is the difference between a merger and an acquisition? How can acquisitions help firms fill their needs?
7. What are the characteristics of a promising acquisition candidate?
8. Describe the purpose of a licensing agreement. In a licensing agreement, which party is the licensor, and which is the licensee?
9. Describe the difference between technological alliances and market alliances. Provide examples of both types of alliances and how they can increase a firm's sales.
10. How does a joint venture differ from a strategic alliance?