The importance of intellectual Property

Intellectual property is any product of human intellect that is intangible but  has  value  in  the  marketplace.  It  is  called  “intellectual”  property  be-cause it is the product of human imagination, creativity, and inventiveness.5 Traditionally, businesses have thought of their physical assets such as land, buildings, and equipment as their most important assets. Increasingly, how-

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Patents of the firm

A patent is a grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for the term of the patent.9 The owner of the patent is granted a legal monopoly for a limited amount of time. However, a patent does not give its owner the right

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Trademarks of the firm

A trademark is any word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those products or services from others. All businesses want to be recognized by their potential clientele and use their names, logos, and other distinguishing features to enhance their visibility. Trademarks also

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Copyrights of the firm

A copyright is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work.22 The work must be in a tangible form, such as a book, operating manual, magazine article,

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Trade secrets of the firm

Most companies, including start-ups, have a wealth of information that is critical to their success but does not qualify for patent, trademark, or copyright protection. Some of this information is confidential and needs to be kept secret to help a firm maintain its competitive advantage. An example is a company’s customer list. A company

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Conducting an intellectual Property audit

The first step a firm should take to protect its intellectual property is to complete an intellectual property audit. This is recommended for all firms, regardless of size, from start-ups to mature companies. An intellectual property audit is conducted to determine the intellectual property a company owns. The following sections describe the reasons for

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BIG FISH PRESENTATIONS: Growing in a Cautious, yet deliberate Manner

In early 2011, Kenny Nguyen and Gus Murillo attended an event taking place at Louisiana State University, the university they were attending. The speaker was the vice president of a Fortune 500 firm. Rather than being blown away by the presenta-tion, they were shocked by how boring it was. The speaker plodded through what

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Preparing for Growth of the firm

Most entrepreneurial firms want to grow. Especially in the short term, growth in sales revenue is an important indicator of an entrepreneurial venture’s po- tential to survive today and be successful tomorrow. Growth is exciting and, for most businesses, is an indication of success. Many entrepreneurial firms have grown quickly, producing impressive results for

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Reasons for Growth of the firm

Although sustained, profitable growth is almost always the result of deliber- ate intentions and careful planning, firms cannot always choose their pace of growth. A firm’s pace of growth is the rate at which it is growing on an annual basis. Sometimes firms are forced into a high-growth mode sooner than they would like.

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Managing Growth of the firm

Many businesses are caught off guard by the challenges involved with grow- ing their companies. One would think that if a business got off to a good start, steadily increased its sales, and started making money, it would get progressively easier to manage the growth of a firm. In many instances, just the opposite

Challenges of Growth of the firm

There is a consistent set of challenges that affect all stages of a firm’s growth. The challenges typically become more acute as a business grows, but a busi- ness’s founder or founders and managers also become more savvy and experi- enced with the passage of time. The challenges illustrate that no firm grows in

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SHAKE SMART: Maintaining Consistent Strategies for Growth

In late July 2010, Kevin Gelfand had just finished a workout at the Aztec Recreational Center, the gym on the San Diego State University campus. He was dreading the bland protein shake he was about to drink. Rather than repeating this ritual, Gelfand decided to start experimenting with protein shakes of his own. He

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Internal Growth Strategies of the firm

Internal growth strategies involve efforts taken within the firm itself, such as new product development, other product-related strategies, and interna- tional expansion, for the purpose of increasing sales revenue and profitabil- ity. Many businesses, such as Modcloth, Sir Kensington’s, and Zappos, are growing through internal growth strategies. The distinctive attribute of in- ternally generated

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Additional internal Product-Growth Strategies of the firm

Along with developing new products, firms grow by improving existing prod- ucts or services, increasing the market penetration of an existing product or service, or pursuing a product extension strategy. 1. Improving an existing product or Service A business can often increase its revenue by improving an existing product or service—enhancing quality, making it

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International Expansion of the firm

International expansion is another common form of growth for entrepreneur- ial firms.9 According to a 2011 survey conducted by the Small Business & Entrepreneurship Council (SBE) and the Financial Services Roundtable, 21 percent of small businesses said that expanding into overseas markets factored into their business plans over the next five years.10 A look

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External Growth Strategies of the firm

External growth strategies rely on establishing relationships with third parties. Mergers, acquisitions, strategic alliances, joint ventures, licensing, and franchis- ing are examples of external growth strategies. Each of these strategic options is discussed in the following sections, with the exception of franchising, which we consider separately in Chapter 15. An emphasis on external growth

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UPTOWN CHEAPSKATE: Franchising as a Form of Business Ownership and Growth

When Chelsea Sloan was young she lived with her family for a period of time in Ohio where her father was a shopping center redevelopment manager. Her mother shopped resale stores to help clothe her four children, all of whom were under age ten (two additional children came later). One store that caught the

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What is Franchising and how does it Work?

Franchising is a form of business organization in which a firm that already has a successful product or service (franchisor) licenses its trademark and method of doing business to other businesses (franchisees) in exchange for an initial franchise fee and an ongoing royalty.5 Some franchisors are established firms; others are first-time enterprises that entrepreneurs

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Establishing a Franchise System

Establishing a franchise system should be approached carefully and deliber- ately. While the process is a familiar one to a company such as McDonald’s, which at the end of 2013 had 35,429 restaurants in 119 countries,10 franchis- ing is an unfamiliar process to a new franchise organization. Franchising is a complicated business endeavor, which

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Advantages and disadvantages of Franchise

There are two primary advantages to franchising. First, early in the life of an organization, capital is typically scarce, and rapid growth is needed to achieve brand recognition and economies of scale. Franchising helps a venture grow quickly because franchisees provide the majority of the capital.13 For example, if Comfort Keepers were growing via

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