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Even Industries in a Declining Stage Can Have Important Strategic

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Essay

Even industries in a declining stage can have important strategic implications.What is meant by the term harvest strategy? Provide an example of this strategy.


Definitions:

Profit-maximizing

A strategy or point where a business reaches the highest possible profit level with given operational limits and market conditions.

Total Revenue

the overall amount of money generated by a firm from its sales activities before any costs or expenses are subtracted.

Variable Cost

Costs that change in proportion to the activity of a business such as the cost of raw materials.

Variable Costs

Costs that vary in proportion to the level of production or sales volume.

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