Strategi Harvesting

Strategi Harvesting. This is called harvesting strategy Harvest strategy is used for products that have reached the stage of cash cow ie matured and is unlikely to grow any further even if investments are made Since some of the businesses are successful that extra revenue can be reused into increasing the performance of the comparatively poorer brands.

Harvest Strategy – Cash CowHarvest Strategy – TelecommunicationsHarvest Strategy – Equity InvestmentsVideo – Harvest Strategy Another MeaningCompanies use a harvesting strategy when a product has reached the cash cow stage Cash cow refers to a productthat makes a profit in a mature market and does not need heavy reinvestment It is unlikely that sales will increase even if the company invests further in the product There would be a much better returnoninvestment if profits were spent elsewhere in the company When implementing a harvest strategy the company has three options 1 Eliminate or reduce all capital spendingon the product In other words keep using existing equipment until it no longer works 2 Reduce or eliminate marketing and advertising expenditure New sales will rely on brand loyalty 3 Eliminate or reduce operating expenses In other words only approve expenditure when the return on investment is very high A MoneyZine article cites the telecommunications sector As more areas across America have wireless signals the need for a landline telephone declines Telecom companies continue supporting landline technology However they do not rebuild wired networks when storms for example destroy them They focus their expenditure on expanding wireless coverage In most cases businesses use the profits from their ‘mature’ brands to fund the development of new ones They may also invest profits in existing products that they believe have good growth potential In the world of equity investment the term has a different meaning It refers to a proposed plan for private equity investors or venture capitalists The aim is to get the most profit from their investment For equity investors floating a company ie launching an IPO is an example of a harvest strategy IPO stands for Initial Public Offering An IPO occurs when the shares of a company become available for the public to buy for the first time Investors can buy and sell that company’s shares on a stock exchange Another example is to sell the company in which the investor has a stake In the international world of bluefin tuna the term ‘harvest strategy’ has a specific meaning According to Brian Jeffries CEO of the Australian Bluefin Tuna Industry Association “A harvest strategy is a preagreed framework for making fisheries management decisions including quota setting”.

HARVESTING STRATEGY meaning in the Cambridge English Dictionary

Additionally harvest planning proactively identifies conflicts that may arise during the harvest process and enables the optimization of the operating system for harvesting Strategic timber harvesting also allows for the possibility of increasing productivity reducing costs and improving quality which results in greater profitability and market competitiveness.

The importance of a strategic timber harvesting plan INFLOR

Key Takeaways A harvest strategy involves reducing spending on an established product in order to maximize profits Typically harvest strategies are used on outdated products as profits are reinvested in newer models or newer Strategies for venture capitalists to exit successful investments also Author Will KentonOccupation Vice President of Content.