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Unit 4 Discussion 2 Harvesting or Divesting A Product Service

Unit 4 Discussion 2 Harvesting or Divesting A Product Service

Q Harvesting or Divesting A Product/Service In chapter 13, Best discusses defense strategies that involve Harvesting or Divesting a product – or service – to eliminate a negative cash flow. This can be done for a variety of reasons: poor sales, end of product cycle, or a new product design was introduced. Identify a company that used this strategy? What was the result? For example: Twinkies – although they shut down because of financial troubles – it eliminated a negative cash flow by closing the company. Kodachrome is an example of an individual product

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A company that used Divesting strategy is International Business Machines (IBM) to ensure that there would be no business done in South Africa by the organization. This decision had been taken by the managers and owner of IBM during the late 1980s and early 1990s (Kim et al., 2021). The decision had been taken because of the extremely low percentages of sales of personal computers of IBM in South Africa (Kim et al., 2021). Moreover, there had been networking stopped in South Africa because of lack of interest shown by customers of the country in buying and using networking software mostly (Kim et al., 2021).