Which of the following conditions could lead an organization to enter into a new business through internal development rather than through acquisition?
A.
It is expected that there will be slow retaliation from incumbents.
B.
The acquiring organization has information that the selling organization is weak.
C.
The number of bidders to acquire the organization for sale is low.
When entering a new business, an organization may choose internal development (building the capability from within) if the competitive environment is favorable. If retaliation from incumbents is expected to be slow or weak, the organization can afford the time needed for internal development without facing immediate, strong competitive pressures.
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emtofid
1 month, 2 weeks ago