Defensive Strategies - Defensive strategy 1B: build customer retention - Defensive strategy 3B: harvest or divest for CF
3 important questions on Defensive Strategies - Defensive strategy 1B: build customer retention - Defensive strategy 3B: harvest or divest for CF
When would a company choose a 'harvest or divest CF' strategy?
When the company can no longer achieve the desired level of CF by the strategy 'manage for CF'.
What happens with a 'harvest strategy'?
A business improves short-run performance by reducing marketing and sales expenses and systematically raising prices.
What happens with a 'divest strategy'?
- The company finds a buyer for the business
- The company shuts down the operations and sells its assets
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