Chapter 14 Flashcards
Work that people other than a firm’s employees complete for the firm.
Outsourcing
The company that owns the intellectual property in a licensing agreement
licensor
A company purchasing the right to use another company’s intellectual property.
licensee
The granting of permission by one company to another company to use a specific form of its intellectual property under clearly defined conditions.
Licensing
The formal contract between a licensor and licensee where companies record the terms of their agreement.
Licensing agreement
An entity in which two or more firms pool a portion of their resources to create a separate, jointly owned organization.
joint venture
A joint venture in which parties do not have symmetrical positions, meaning that the partners’ objectives may diverge.
Link joint venture
A strategy designed to increase the sales of a product through greater marketing efforts or through increased production capacity and efficiency.
market penetration strategy
Internally generated growth within a firm that does not rely on outside intervention.
organic growth
A strategy that involves making additional versions of a product so they will appeal to different clientele or making related products to sell to the same clientele.
product line extension strategy
A joint venture in which partners collaborate at a single point in the value chain to gain economies of scale in production or distribution.
scale join venture
A partnership two or more firms develop to achieve a specific goal.
strategic alliance
The pooling of interests to combine two or more firms into one.
merger
