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SPHR · Question #186

The large auto parts manufacturer for which you work has recently purchased land in an adjacent city and plans to build an additional warehouse. This is the best example of which of the following?

The correct answer is B. A greenfield operation. Building a new warehouse on newly purchased, undeveloped land is a greenfield operation - the company is constructing a facility from scratch on a clean site, like a "green field" that hasn't been built on before. A brownfield operation (A) would involve redeveloping or repurposi

Business Management & Strategy

Question

The large auto parts manufacturer for which you work has recently purchased land in an adjacent city and plans to build an additional warehouse. This is the best example of which of the following?

Options

  • AA brownfield operation
  • BA greenfield operation
  • CA workforce plan
  • DAn acquisition

How the community answered

(40 responses)
  • A
    8% (3)
  • B
    88% (35)
  • C
    3% (1)
  • D
    3% (1)

Explanation

Building a new warehouse on newly purchased, undeveloped land is a greenfield operation - the company is constructing a facility from scratch on a clean site, like a "green field" that hasn't been built on before. A brownfield operation (A) would involve redeveloping or repurposing an existing site or facility, such as renovating an old factory. A workforce plan (C) addresses staffing needs, not physical infrastructure. An acquisition (D) means purchasing an existing company or facility, not building a new one from the ground up.

Memory tip: Think of "greenfield" as literally building on green grass - fresh, new, never-built land. "Brownfield" = an already-used ("dirty/brown") site being reused.

Topics

#greenfield operation#business expansion#organizational growth#strategic planning

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