Internal development is when companies look inside the firm to develop a new
product or to create an entrepreneurship department. (3M, Sony, Ritz hotel).
Disadvantages: its time consuming.
Real Option Analysis: A
Firms use their corporate office for portfolio management. Corporate helps viewing
the entire organization like a portfolio of businesses. Usually corporate uses the BCG
Stars: high growth and high market
Mergers & Acquisitions
Mergers & acquisitions: When firms buy other business
Helps offer more product / services
Helps increase profit and market power (P&G and Gillette)
Helps to have less competition
Helps to share knowledge and leverage the