Which of the following is a disadvantage of greenfield investments?
A)There is a possibility of being preempted by more aggressive global competitors who enter via acquisitions.
B)It is far more difficult to establish a set of operating routines in a new subsidiary than it is to convert the operating routines of an acquired unit.
C)Companies could find it difficult to avoid the pitfall of the hubris hypothesis.
D)They could lead to high management turnover.

Question

Quizplus · Accepted Answer

Companies engaging in greenfield ventures could be preempted by more aggressive global competitors who enter via acquisitions and build a big market presence that limits the market potential for the greenfield venture.

Which of the Following Is a Disadvantage of Greenfield Investments