MGT 30220 Study Guide - Final Guide: Investment Banking
Strategic Management Study Guide
• Methods of Diversification:
o Greenfield Entry:
▪ entry into an adjacent market by a firm that opens its own operation
▪ Makes sense when companies have the front-end and back-end
resources and capabilities they can immediately exploit to create value
▪ Also makes sense when companies can afford to enter new arenas slowly
and at small to moderate investment
o Acquisition:
▪ the purchase of another company or its assets
• preferred mode of entry when the firm needs to quickly expand
its own resources and capabilities in order to effectively compete
▪ Make sense when delay proves costly
• better for tech companies
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