Growth Strategy Options Flashcards
Brownfield operation
Repurposing a facility that was previously unused
Contract manufacturing
Local company makes product in order to lower labor cost
Equity partnership
One company has partial ownership in another company with a partnership agreement in place that defines the extent of each companies control
Franchising
Investor pays a fee to use a trademark, product or service
Greenfield operation
Erecting a brand new operation, which requires a significant investment in human resources
Growth strategy
How the organization chooses to grow
Joint venture
Two or more companies merge to form a new company owned by all the owners of the prior individual companies
Licensing
Granted the right to produce a product or service and sell it
Management contract
Agreement with a company to manage the daily operations of another company
Merger/acquisition
Transactions in which the ownership of companies, other business organizations, or their operating units are transferred or combined
Strategic alliance
Companies share assets to create economies of scale
Turnkey operation
A facility that has everything needed to begin operations immediately
