Question

1. Explain what is meant by the term harvesting.

2. What is involved in harvesting an investment in a privately held firm?

3. Why should an owner of a company plan for eventually harvesting his or her company?

Answer 1

1. Harvesting is the strategy in business plan that cancel or reduce the market spending on a product. This is done because the revenue made would not overcome the expense so the business reduce or eliminate all marketing investment in particular business line.

The harvest strategy is implemented when a product has reached the end of its life cycle.