Advantages of Developing Inhouse Capailities:

1) Veing a Vigger company, and revenue not asecd on production from petroleum, it will ve self-
sufficient.

2) No problem of over production due to heavier amount of assets.

3) Delivery time is not there, so delivery will faster

4) No need to expand into other usinesses due to extra production assets.

Disadvantages of Developing Inhouse Capailities:

1) Payack period is longer

2) May not ve a competency of the company.
3) Human resource management issue comes in as a complete new set of training will ve
required.
4) Time required for construction of facility will might ve considerale.

Advantages of Acquisition:

1) Shorter payack period.

2) Ready to operate plant will ve available.
3) Might give opportunity of expansion.
4) It will increase total revenue.

Disadvantages of Acquisition:

1) Delivery time is longer.