Which of the following shakeout strategies requires a company to limit or decrease its investment in a business and to extract, or milk, the investment as much as it can?
A)Market concentration strategy
B)Share-increasing strategy
C)Cost-leadership strategy
D)Hold-and-maintain strategy
E)Harvest strategy

Question

Quizplus · Accepted Answer

The harvest strategy requires a company to limit or decrease its investment in a business and extract, or milk, the investment as much as it can. This strategy involves reducing costs and increasing cash flow while limiting or eliminating new investments. Therefore, E is the correct choice.

Which of the Following Shakeout Strategies Requires a Company to Limit