Harvest Strategy

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Description of Harvest Strategy. Explanation.


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Definition Harvest Strategy. Description.

A Harvest Strategy is also known as an Asset Reduction Strategy and is a means by which an organization seeks to limit or decrease its investment in a business by extracting as much cash out of its operation as possible. It steers middle course between maintenance and abandonment. Reinvestment in the business is minimal.

Typically, this strategy is employed in unattractive or declining markets, and where the business is not seen as a major component of a firm's portfolio.

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Compare also: Cash Ratio  |  Exit Strategy  |  Turnaround Management

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