1.       Look at the website of Scuba Toys (www.scubatoys.com). As you’ll see, this firm makes a wide range of products for all types of water sports. Spend some time familiarizing yourself with Scuba Toys’s products and its business model. Scuba Toys is about to launch an aggressive growth strategy. Write a one-page set of recommendations for Scuba Toys that outlines some of the issues it should be aware of as it launches its growth initiative (make sure you address adverse selection and moral hazard).

2.       Scubatoys.com is thinking about expanding internationally to provide a warehouse for distribution. Select a location that they should consider and explain what the company needs to consider as they expand internationally.

3.       Think of a company that you’re familiar with that has grown via a product line extension strategy. Provide an overview of the company and how it rolled out its product line extension strategy.

4.       Which of the growth strategies discussed in chapter 14 are the most risky? Which are the least risky? What role should risk play in a company’s decision to pursue a particular growth strategy?