Strategy for The Above Business Unit

The follow four strategies can apply for above business units :

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Image by jurvetson via Flickr

01.Build : Here the objective is to increase market share, even forging short –term earnings to achieve this objects if necessary .Building is appropriate marks.

02.Hold :

Here the objective is to preserve market share . This strategy is appropriate for strong cash cows.

03.Harvest :

Here the objective is to increase short term cash flow regardless of long term effect.

Harvesting generally involves eliminating R and D expenditure, not replacing the physical plant as it wear out ,not replacing sales people, reducing advertising expenditures, and so on. This strategy is appropriate for weak cash cows .

04. Divest :

 Here the objective is to sell or liquidate the business because resources can be better used elsewhere. This strategy is appropriate for dogs and questions marks that are acting as a drag on the company’s profit .