Enterprise Growth Strategies
CBSE · Class 12 · Entrepreneurship
Summary of Enterprise Growth Strategies for CBSE Class 12 Entrepreneurship. Key concepts, important points, and chapter overview.
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Every business, once established, must grow to survive and thrive in a competitive marketplace. Unit 4 explores the key strategies through which entrepreneurs can expand their enterprises — both internally and externally. The unit focuses on three major external growth strategies: Franchising, Merge
Key Concepts
A business can grow either internally
A business can grow either internally or externally. Internal expansion involves gradual growth through increased production capacity, new machines, m
Franchising is 'an arrangement whereby
Franchising is 'an arrangement whereby the manufacturer or sole distributor of a trademarked product or service gives exclusive rights of local distri
There are four types of franchising
There are four types of franchising: (1) Product Franchise — a manufacturer grants a retailer the right to distribute and sell their products using th
Advantages to the franchisee include
Advantages to the franchisee include: (a) Product Acceptance — entering with an established brand reduces credibility-building efforts; (b) Management
A merger is the combination
A merger is the combination of two companies into one larger company, involving a stock swap or cash payment. All combining companies may be dissolved
Learning Objectives
- Explain the concept of franchising and its types in detail
- Understand the advantages and disadvantages of franchising for both franchisor and franchisee
- Understand how enterprise growth is possible through mergers and acquisitions
- Enlist and explain the five types of mergers with examples
- Elaborate on the meaning and four types of acquisitions
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Sources & Official References
- NCERT Official — ncert.nic.in
- CBSE Academic — cbseacademic.nic.in
- CBSE Official — cbse.gov.in
- National Education Policy 2020 — education.gov.in
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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