Routes to Strategic Development Internal Ventures (Organic development) Acquisition Joint Ventures (Alliances)

Internal New Venturing  The Attractions of Internal New Venturing  New Venture Pitfalls Scale of Entry

Scale of Entry, Profitability, and Cash Flow Large Scale (+) (-) O Profitability/Cash Flow Small Scale Time

Acquisitions as an Entry Strategy  When Firm Lacks Important Competencies in a New Business Area  When Speed Is Important  Perceived to Be Less Risky  When the Incumbent Firms Enjoy Significant Protection from Barriers to Entry in an Established Industry Attractions of Acquisitions

Acquisitions as an Entry Strategy  Post-Acquisition Integration  Overestimating Economic Benefits  The Expense of Acquisitions  Inadequate Pre-acquisition Screening Acquisition Pitfalls

 Target Identification and Pre-acquisition Screening  Bidding Strategy  Integration Guidelines for Successful Acquisition Acquisitions as an Entry Strategy

 Share the Substantial Risks and Costs Involved in a New Project  May Increase the Probability of Success in Establishing a New Business Attractions Joint Ventures as an Entry Strategy

 Requires the Firm to Share the Profits  Runs Risk of Giving Away Critical Know-how to a Possible Future Competitor  Venture Partners Must Share Control Drawbacks Joint Ventures as an Entry Strategy

Restructuring  Why Restructure?  Exit Strategies Divestment Management Buyout (MBO) Harvest and Liquidation