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Questions and Answers
Integrative growth can only be achieved through horizontal integration.
Integrative growth can only be achieved through horizontal integration.
False
Diversification growth strategies are not useful for reducing the risks associated with relying solely on one industry.
Diversification growth strategies are not useful for reducing the risks associated with relying solely on one industry.
False
Intensive growth strategies focus on developing new products for new markets.
Intensive growth strategies focus on developing new products for new markets.
True
Concentric diversification strategy involves seeking new products that have technological or marketing synergies with existing product lines.
Concentric diversification strategy involves seeking new products that have technological or marketing synergies with existing product lines.
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Assessing growth opportunities includes planning new businesses, downsizing, or terminating older businesses.
Assessing growth opportunities includes planning new businesses, downsizing, or terminating older businesses.
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Study Notes
Integrative Growth
- Achieved exclusively through horizontal integration, where companies expand by acquiring or merging with competitors in the same industry.
Diversification Growth Strategies
- Not effective in mitigating risks associated with dependency on a single industry; reliance on diversification can lead to complexities without reducing core business vulnerabilities.
Intensive Growth Strategies
- Centered on the introduction of new products aimed at accessing new markets, potentially enhancing market share and revenue streams.
Concentric Diversification Strategy
- Focuses on developing new products that leverage the technological or marketing synergies with existing product lines, fostering innovation while maintaining brand consistency.
Assessing Growth Opportunities
- Involves strategic planning for new business ventures, evaluating the potential for downsizing, or considering the termination of underperforming businesses to optimize resources and focus on growth areas.
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Description
Test your knowledge of business growth strategies with this quiz. Assess different growth opportunities, such as new businesses, downsizing, and termination, and explore intensive growth strategies like market penetration and product development. Understand the concepts of integrative growth, backward integration, and diversification.
