Final answer:
The strategic reasons for undertaking a corporate venture are strengthening competitive position, obtaining above-average returns, and adding to the corporation's resource base.
Step-by-step explanation:
The correct option for the question is (D) all of the above. All of the mentioned options - strengthening competitive position, obtaining above-average returns, and adding to the corporation's resource base - are strategic reasons for undertaking a corporate venture. Let's dive deeper into each of these reasons:
- Strengthening competitive position: A corporate venture can help a company gain a competitive advantage over its rivals. By investing in new ventures or business opportunities, a company can expand its product offerings, enter new markets, or develop innovative technologies that give it an edge in the industry.
- Obtaining above-average returns: Corporate ventures can generate higher returns compared to traditional investments. By diversifying their investment portfolio through ventures, companies increase their chances of achieving above-average financial performance and growth.
- Adding to the corporation's resource base: Ventures can provide access to new resources, whether it's intellectual property, technology, talent, or strategic partnerships. By acquiring these resources through ventures, companies can enhance their capabilities and expand their operational reach.
In conclusion, all of the mentioned options - strengthening competitive position, obtaining above-average returns, and adding to the corporation's resource base - are strategic reasons for a company to undertake a corporate venture.