In a declining industry, a company may utilize a harvest strategy and:
A) significantly increase its investment in a business.
B) extract maximum profits from its investments.
C) venture into new market segments with new products.
D) expand the number of stores or outlets for its products.
E) significantly increase its advertising expenditure.

Question

Quizplus · Accepted Answer

In a declining industry, a company may utilize a harvest strategy, which involves maximizing profits while reducing investment. This often includes cutting costs and extracting maximum profits from existing investments. A harvest strategy would not involve significantly increasing investment (Choice A), venturing into new market segments with new products (Choice C), expanding the number of stores or outlets for its products (Choice D), or significantly increasing advertising expenditure (Choice E).

In a Declining Industry, a Company May Utilize a Harvest