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Enterprise Growth Strategies — Syllabus

CBSE · Class 12 · Entrepreneurship

What Enterprise Growth Strategies covers in CBSE Class 12 Entrepreneurship: 4 topics, for the 2026-27 session.

5 concepts

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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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4 Topics · CBSE Class 12 Entrepreneurship · 2026-27

Topics in Enterprise Growth Strategies

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.

Key Concepts

Central concept: Enterprise Growth Strategies

Internal ExpansionExternal ExpansionFranchisingMergersAcquisitionsReasons for M&AFailure of M&AValue Addition

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Frequently Asked Questions

What are the important topics in Enterprise Growth Strategies for CBSE Class 12 Entrepreneurship?
Key topics in Enterprise Growth Strategies include Growth and Development of an Enterprise, Franchising, Advantages and Disadvantages of Franchising, Mergers. Study these first, then practise questions on each for the CBSE Class 12 board exam.

Sources & Official References

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

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