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Enterprise Growth Strategies

CBSE · Class 12 · Entrepreneurship

Quick revision notes for Enterprise Growth Strategies — CBSE Class 12 Entrepreneurship. Key concepts, formulas, and definitions for last-minute revision.

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An infographic illustrating the two main categories of enterprise growth: Internal Expansion and External Expansion, with External Expansion further branching into Franchising, Mergers, and Acquisitio
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Key Topics to Revise

1

Growth and Development of an Enterprise

  • Growth is essential for the survival of any business concern — a stagnant firm risks decline.
  • Entrepreneurs must evaluate financial, logistical, and emotional readiness before expanding.
  • The rule of thumb: expand only when untapped opportunities exist that can benefit the business.
2

Franchising

  • Origin: Franchising began in the 1850s when Isaac Singer sold licenses to distribute sewing machines. Ray Kroc scaled McDonald's into the world's most successful franchise system in 1955.
  • Definition: An arrangement whereby the manufacturer or sole distributor of a trademarked product/service gives exclusive rights of local distribution to independent retailers in return for royalties a
  • Franchisor: The company/person offering the franchise (e.g., McDonald's, Subway, Goli Vada Pav).
3

Advantages and Disadvantages of Franchising

  • ADVANTAGES TO FRANCHISEE:
  • 1. Product Acceptance: Franchisee enters business with an already accepted name, product, or service (e.g., Subway brand recognition; no need to build credibility from scratch).
  • 2. Management Expertise: Franchisor provides training programs covering accounting, personnel management, marketing, and production (e.g., McDonald's Hamburger University).
4

Mergers

  • Definition: A merger is a combination of two companies into one larger company involving stock swap or cash payment to the target.
  • In a merger, the acquiring company takes over the assets and liabilities of the merged company.
  • When firms are of similar size, the term 'Consolidation' is used; when sizes differ significantly, 'Merger' is used.

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Full Notes

Key Concepts

A business can grow either internallyFranchising is 'an arrangement wherebyThere are four types of franchisingAdvantages to the franchisee includeA merger is the combination

Frequently Asked Questions

What are the important topics in Enterprise Growth Strategies for CBSE Class 12 Entrepreneurship?
Key topics in Enterprise Growth Strategies include Enterprise Growth Strategies - Chapter Overview, Enterprise Growth Strategies — Chapter Overview, Merger vs Acquisition: Key Differences and Decision Flow. These are the concepts CBSE Class 12 examiners draw on most — study them first, then practise related questions.
How to score full marks in Enterprise Growth Strategies — CBSE Class 12 Entrepreneurship?
Start by understanding all key concepts. Practise previous year questions from this chapter. Revise formulas and definitions regularly. Use flashcards for quick revision before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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