Answer to Question 1
A business plan is a written narrative, typically 25 to 35 pages long, that describes what a new business plans to accomplish and how it plans to accomplish it.
Answer to Question 2
A product line extension strategy involves making additional versions of a product so that it will appeal to different clientele or making related products to sell to the same clientele. For example, a company may take a low-end product, make another version of it that is a little better, and then make another version of it that represents the top of the line. The advantage of a product extension strategy is that it allows a firm to take one product and extend it into several products without incurring significant additional development expense. In regard to making related products to sell to the same clientele, many firms start by offering one product or service and then expand into related areas. Many companies utilize product extension strategies. Starbucks, for example, now sells bottled Frappuccino Coffee, which is an extension of its more traditional hot coffees and related drinks sold in its restaurants.
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