Scribd
Upload
3 views1 page

Harvesting Strategy and Synergy Explained

A harvesting strategy is a business plan to reduce or eliminate investment in a product or brand line when management determines further expenses to boost sales would not be justified by potential future revenues. Synergy is the concept that two combined companies will be more valuable than the sum of their individual parts, often driving mergers, and shareholders benefit if synergies increase the post-merger share price through factors like revenue increases or cost reductions. A strategic decision is an ongoing process of creating and altering strategies based on outcomes to achieve organizational goals.

Uploaded by

Kamal Joshi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
3 views1 page

Harvesting Strategy and Synergy Explained

A harvesting strategy is a business plan to reduce or eliminate investment in a product or brand line when management determines further expenses to boost sales would not be justified by potential future revenues. Synergy is the concept that two combined companies will be more valuable than the sum of their individual parts, often driving mergers, and shareholders benefit if synergies increase the post-merger share price through factors like revenue increases or cost reductions. A strategic decision is an ongoing process of creating and altering strategies based on outcomes to achieve organizational goals.

Uploaded by

Kamal Joshi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Q Explain Harvesting Strategy.

Ans: A harvest strategy is a business plan for reducing or altogether eliminating investment in a
particular product, brand or line of business due to a company's management determining the required
expense to attempt to boost sales any further would not be justified by likely future revenues from the
product or brand line.
Q Comment on Synergy.
Ans: Synergy is the concept that the value and performance of two companies combined will be greater than
the sum of the separate individual parts. Synergy is a term that is most commonly used in the context
of mergers and acquisitions. Synergy, or the potential financial benefit achieved through the combining of
companies, is often a driving force behind a merger. Shareholders will benefit if a company's post-merger share
price increases due to the synergistic effect of the deal. The expected synergy achieved through
the merger can be attributed to various factors, such as increased revenues, combined talent and technology,
or cost reduction.
Q what makes a decision strategic?
Ans: Strategic decision making is an ongoing process that involves creating strategies to achieve goals

and altering strategies based on observed outcomes.

You might also like