Stanley's services firm wants to enter an embryonic market, but it doesn't have enough cash to purchase the required assets. Which of the following strategies would you recommend to Stanley?
A) Diversify through acquisition.
B) Do not diversify at all.
C) Diversify with an internal new venture.
D) Diversify with a joint venture.
E) Diversify through vertical integration.

Question

Quizplus · Accepted Answer

Given Stanley's firm lacks sufficient cash to purchase the required assets for entering an embryonic market, a joint venture is a suitable strategy. It allows sharing the investment and risks with another company, making it easier to access the necessary resources without the full financial burden.

Stanley's Services Firm Wants to Enter an Embryonic Market, but It