Final answer:
A Greenfield investment is the strategy involving starting a new operation from scratch, building facilities, and hiring staff in a new location, without the partnership or infrastructure of an existing business.
Step-by-step explanation:
The strategy that involves starting a new operation from scratch is known as a Greenfield investment. Unlike joint ventures, acquisitions, or franchising, Greenfield investment means that a company enters a foreign market by building its facilities from the ground up. This involves constructing new physical plants and facilities, establishing new production operations, and hiring new employees. It’s a direct form of investment where the company starts its operations in a new location without the help of a previously existing business.
Franchising, on the other hand, is when a company (the franchisee) pays for the rights to do business under the name of another company (the franchisor) and receives support such as training and supply chain assistance. This is different from Greenfield investment as it relies on the existing brand and business model.