Enterprise Growth Strategies Entrepreneurship - Enterprise Growth Strategies

What is meant by 'Financial Synergy'?

When acquisition is done through coercive means, it is engaging in which type of acquisition?

In the following cases identify the type of merger:
It is between two companies producing different goods or services for one specific finished product.

A merger between Fiat and Tata motors would be what type of merger?

Reliance Industries donated a part of its revenue from its industrial units in Gujarat for the earthquake victims. Which form of value addition is being pursued by the company?

Distinguish between internal expansion and external expansion.

Alpha Ltd., a multinational restaurant chain company, gives an exclusive right to four Indian companies to set up the restaurants in metropolitan cities in India in return for their payment of royalties and conformance to standardised operating procedures. Indian companies decided to employ local workers and to distribute left-over food amongst the needy as a provision in the agreement with Alpha Ltd.

1. Identify and give the meaning of the concept discussed in the above para.
2. List the main ingredients of the agreement that Alpha Ltd. will enter into with the Indian companies.
3. Also, identify any one value which the Indian companies want to communicate to the society through the agreement.

'Healthy Juice India Ltd.' and 'Asli Juice Ltd.' are engaged in the production of fruit juice. Both the companies sell the juice in 1,000 ml tetra packs and are in direct competition. To avoid competition, the management of both the companies decided to merge and formed a new company 'Asli Healthy Juice India Ltd.' The new company decided to sell the fruit juice through the company owned outlets throughout the country.
Name and explain the 'Enterprise Growth Strategy'.
Also, identify the channel of distribution decided by 'Asli Healthy Juice India Ltd.'

Explain ‘Care to Ecology and Environment’ and ‘Concern for Workers’ as social responsibilities of an entrepreneur.

'Golden Sweets' was a partnership firm, owned by Swati and Sushma. 'Asam Sweets' was another partnership firm owned by Vipan and Pranav. Swati and Sushma were sharing profits in 1:2 ratio and Vipan and Pranav were sharing profits in 2:3 ratio. Both the firms were situated in a famous market of Guwahati and were doing competitive business. Pranav the partner of 'Asam Sweets' observed that many of their customers were from far off areas and if branches of ‘Asam Sweets’ are opened in other parts of the city, the firm may earn huge profits. Similar was the situation of 'Golden Sweets'. One day in a function at a common friends house, the partners of both the firms knew that the internal expansion of their respective firms will be costly. Hence, they decided about the merger of the two firms. For this purpose, they decided to meet again to finalise the conditions of merger. Finally, on 1.1.2016 their respective firms were merged and a new firm ‘Asam Golden Sweets’ was formed with all the four partners Swati, Sushma, Vipan and Pranav. Their new profit sharing ratio was 1:2:2:3. During the year ended 31.12.2016, the new firm opened four new branches in different parts of the city and earned a profit of 30% on sales.

1. Identify the type of merger adopted by the two firms and also give its meaning.
2. Also give the names and meaning of two other types of mergers.

Kamal started a gym named as 'Strong Muscles Gym'. He installed large number of machines and equipment of different types and appointed trained trainers to help the customers in the use of machines. Initially, he kept a low fee per hour so that the boys and girls belonging to poor families may also avail the facilities of the gym. Very soon his gym became popular and he started operating in three shifts. For this, he appointed additional trainers. He also installed extra machines so that more customers could be enrolled. In two years, he started earning good profits. He took a nearby building on rent and started a ‘Recreation and Health Club’ for the senior citizens of the locality on very nominal charges. He also encouraged young boys and girls to participate in the cleanliness drive started by the Prime Minister. They agreed and started giving one hour daily for the cleanliness of the nearby areas, before the opening of the 'Strong Muscles Gym' and the 'Recreation and Health Club'.

1. Identify and explain the type of business expansion that took place under the entrepreneurship of Kamal.
2. Also, identify any two values that Kamal tried to propagate.

'Sultan Trucks Ltd.' are the manufacturers of commercial trucks for the last 20 years. The company had been doing good business but recently due to irregular supply of parts by its suppliers; the company could not make timely delivery of trucks to the parties who had booked their trucks. The customers cancelled their bookings, and there were very few new bookings. The sales of the company started declining that resulted into losses. The management of the company analysed the problem and decided to take over those two firms because of whom the problem arose, one of them was supplying tyres for its trucks and another axle to the company. The company also extended credit facilities to the customers and started booking the trucks without charging any booking amount. It also decided to employ 100 unemployed youth, with 50% reservation for females to take up the cleaning operations, using the imported machines, inside the factories as well as the surrounding areas.

1. Identify and state the concepts of 'Enterprise Marketing and Growth Strategies' discussed in the above paragraph.
2. Identify anyone value which 'Sultan Trucks Ltd.' wants to communicate to the society.

Explain the concepts of 'Cost, Revenue and Break-Even-Point'. Also explain how Break-Even-Point is calculated.

Raman started a gym named as 'Strong Body'. He installed large number of machines and equipments of different types and appointed qualified trainers to help the customers in the use of machines. Initially, he kept a low fee per hour so that boys and girls belonging to the poor families may also avail the facilities of the gym. Very soon his gym became popular and he started operating in three shifts. For this, he appointed additional trainers. He also installed extra machines so that more customers could be enrolled. In one year he started earning good profit. He took a nearby building on rent and started a 'Recreation and Health Club' for the senior citizens of the locality on very nominal charges. He also encouraged young boys and girls to participate in the cleanliness drive started by Prime Minister. They agreed and started giving one hour daily for cleanliness of the nearby areas before opening of the 'strong body' gym and 'recreation club'.

1. Identify and explain the type of business expansion that took place under the entrepreneurship of Raman.
2. Identify any two values that Raman tried to propagate.

State any four primary activities that are essential for a firm to have a competitive advantage as given by Porter.

'Sun-Cars Ltd' is a manufacturer of cars. It is famous for adding new and unique features in every new model. This time the company launched a car 'Solaro' which does not require hydro-carbon fuel. It is run by solar energy and takes less time in charging. Besides saving fuel, it saves electricity also, Because of these qualities the car was a big hit in the market.

1. Quoting the lines from the above para identify and explain the two types of 'added value' in the business-growth strategy.
2. Also, explain two more type of added value other than discussed in part a.

'Toto-T mobiles' is a famous brand of mobile phones. Its target customers are students and professionals who require specialised features in the mobiles. This time the company developed a small size wireless mobile charger which is more convenient to use than the regular charger. This charger is made of recycled material and consumes very less electricity.

1. Quoting the lines from the above para identify and explain the two types of 'added value’ in the business-growth-strategy.
2. Also, explain two more types of added value other than discussed in part (a).

Explain any four growth sustaining activities adopted by an Entrepreneur.

Explain any four factors that influence growth of an Enterprise.

Explain any six reasons for the failure of mergers and acquisitions.