In a declining industry, a company may utilize a harvest strategy and: a. significantly increase its investment in a business. b. extract maximum profits from its investments. c. venture into new market segments with new products. d. expand the number of stores or outlets for its products. e. significantly increase its advertising expenditure.

Question

Business

Aliya Pena

9 July, 04:29

In a declining industry, a company may utilize a harvest strategy and: a. significantly increase its investment in a business. b. extract maximum profits from its investments. c. venture into new market segments with new products. d. expand the number of stores or outlets for its products. e. significantly increase its advertising expenditure.

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Answers (1)

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Van Ramirez · Answer 1

b. extract maximum profits from its investments.

Explanation:

A harvest strategy is when companies reduce the investment they have in a product that is in the end of its life cycle to be able to get the highest profits possible so the investors can get their money. According to this, the answer is that in a declining industry, a company may utilize a harvest strategy and extract maximum profits from its investments.

The other options are not right because in a harvest strategy companies decrease thir investment, they don't go to a new market and as they are trying to get the maximum profit possible, they are not interested in increasing the advertising expenditure.