Which of the Following Is a Disadvantage of Greenfield Ventures

question 105

Multiple Choice

Which of the following is a disadvantage of greenfield ventures as a mode of entering foreign markets?

• A) Greenfield ventures have a higher potential for throwing up unpleasant surprises.
• B) It is much more difficult to build an organizational culture from scratch than to change the culture of an existing unit.
• C) Companies find it difficult to avoid the hubris hypothesis of acquisitions.
• D) There is a possibility of being preempted by aggressive global competitors who enter via acquisitions.
• E) A firm does not have the freedom to build the kind of subsidiary that it wants.

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Definitions:

Rubber Stamps

Tools used to apply inked designs or impressions, metaphorically referring to giving approval without careful consideration.

Business Communications

The sharing of information between people within and outside an organization in a professional context.

Goodwill

An intangible asset representing the value of a company's brand, reputation, and customer relationships.

Business Communication

The sharing of information between people within an organization or between a company and its customers.