When the SBU objective is to "harvest market share," which of the following is NOT a primary sales task?
A) Service the most profitable accounts.
B) Eliminate unprofitable accounts.
C) Replace lost sales with new accounts.
D) Reduce service levels.
E) Reduce inventory.

Question

Quizplus · Accepted Answer

When an SBU (Strategic Business Unit) aims to "harvest market share," the focus is on maximizing short-term cash flow rather than expanding or maintaining market share. This involves servicing profitable accounts, eliminating unprofitable ones, reducing service levels, and minimizing inventory to cut costs. Replacing lost sales with new accounts contradicts the harvest strategy's goal, as it implies seeking growth or maintaining current sales levels, which is not the priority in a harvesting strategy.

When the SBU Objective Is to "Harvest Market Share," Which