1.5 Growth and evolution: แบบฝึกหัด

What type of economy of scale arises when a large business can afford high-capacity, automated machinery that reduces the unit cost of production?

A national commercial bank acquires a prominent general insurance brokerage firm to cross-sell life, home, and auto insurance policies directly to its existing retail banking customer base.

Which form of external growth is represented in this acquisition?

A high-growth technology firm evaluates two methods for international expansion into a volatile foreign market:
- Option A: Form a 50/50 Joint Venture with a well-established local firm.
- Option B: Enter into a Strategic Alliance without creating a new legal entity.

Which of the following statements accurately evaluates the strategic trade-offs between these two external growth methods?

Which of the following is an example of an external economy of scale?

A commercial car manufacturer acquires a major steel rolling mill that supplies \(70\%\) of the flat steel panels used in its automotive assembly lines.

Which precise strategic integration direction does this acquisition represent?

Define the term organic (internal) growth.

Explain one reason why cultural clashes often arise during a cross-border merger or acquisition.

Company X is a premium brand considering international expansion. Management must decide between franchising and foreign direct investment (setting up wholly owned subsidiaries).
Explain one reason why franchising might expose Company X to severe brand dilution risk, and one financial reason why direct investment carries higher financial risk.

Define the term strategic alliance and state one key characteristic that distinguishes it from a joint venture.

A logistics company expands rapidly from a regional fleet of \(50\) trucks to a nationwide fleet of \(1,200\) trucks. As a result, the management notes rising average costs per delivery.
(a) State the economic term used to describe rising average costs of production as a business expands.
(b) Explain two internal causes of this phenomenon that can arise in large, complex organizations.