PPT: Enterprise Growth Strategies | Entrepreneurship Class 12 - Commerce PDF Download

 Page 1


ENTERPRISE 
GROWTH 
STRATEGIES
Page 2


ENTERPRISE 
GROWTH 
STRATEGIES
Introduction
Business Expansion
Business growth can be achieved through 
i n t e r n a l expansion (organically growing the 
business) or e x t e r n a l expansion (such as 
mergers, acquisitions, and franchising).
Franchising
A method that allows an independent retailer 
to use a recognized brand's trademark and 
business model for local distribution, typically 
in exchange for a royalty fee.
Page 3


ENTERPRISE 
GROWTH 
STRATEGIES
Introduction
Business Expansion
Business growth can be achieved through 
i n t e r n a l expansion (organically growing the 
business) or e x t e r n a l expansion (such as 
mergers, acquisitions, and franchising).
Franchising
A method that allows an independent retailer 
to use a recognized brand's trademark and 
business model for local distribution, typically 
in exchange for a royalty fee.
Types of Franchising
Product              
Franchise
Retailers sell trademarked 
products under a brand 
agreement.
Manufacturing 
Franchise
License to manufacture 
products under the 
brand's name.
Business Format 
Franchise
Full franchise system 
including business model, 
branding, and marketing.
Advantages to Franchisee
Brand recognition, reduced risk, training, 
and support.
Advantages to Franchisor
Fast expansion, increased market share 
without direct investment.
Page 4


ENTERPRISE 
GROWTH 
STRATEGIES
Introduction
Business Expansion
Business growth can be achieved through 
i n t e r n a l expansion (organically growing the 
business) or e x t e r n a l expansion (such as 
mergers, acquisitions, and franchising).
Franchising
A method that allows an independent retailer 
to use a recognized brand's trademark and 
business model for local distribution, typically 
in exchange for a royalty fee.
Types of Franchising
Product              
Franchise
Retailers sell trademarked 
products under a brand 
agreement.
Manufacturing 
Franchise
License to manufacture 
products under the 
brand's name.
Business Format 
Franchise
Full franchise system 
including business model, 
branding, and marketing.
Advantages to Franchisee
Brand recognition, reduced risk, training, 
and support.
Advantages to Franchisor
Fast expansion, increased market share 
without direct investment.
Growth Through Mergers 
and Acquisitions
M e r g e r s
Combining two firms into one larger entity.
Amalgamation: Two firms create a new entity.
Absorption: One company absorbs another.
A c q u i s i t i o n s
A company buys most of another company's shares to 
gain control.
Types: Friendly, hostile, reverse, backflip.
Page 5


ENTERPRISE 
GROWTH 
STRATEGIES
Introduction
Business Expansion
Business growth can be achieved through 
i n t e r n a l expansion (organically growing the 
business) or e x t e r n a l expansion (such as 
mergers, acquisitions, and franchising).
Franchising
A method that allows an independent retailer 
to use a recognized brand's trademark and 
business model for local distribution, typically 
in exchange for a royalty fee.
Types of Franchising
Product              
Franchise
Retailers sell trademarked 
products under a brand 
agreement.
Manufacturing 
Franchise
License to manufacture 
products under the 
brand's name.
Business Format 
Franchise
Full franchise system 
including business model, 
branding, and marketing.
Advantages to Franchisee
Brand recognition, reduced risk, training, 
and support.
Advantages to Franchisor
Fast expansion, increased market share 
without direct investment.
Growth Through Mergers 
and Acquisitions
M e r g e r s
Combining two firms into one larger entity.
Amalgamation: Two firms create a new entity.
Absorption: One company absorbs another.
A c q u i s i t i o n s
A company buys most of another company's shares to 
gain control.
Types: Friendly, hostile, reverse, backflip.
Reasons for Mergers and 
Acquisitions
Synergy
Combined value is greater 
than the sum of individual 
firms.
Access to New Markets
Expanding business reach.
Cost Reduction
Economies of scale, cost-
cutting through consolidation.
Technology Acquisition
Gaining new technological 
capabilities.