A Guide to the New Language of Accounting and Finance

H

Harvesting Strategy attempts to make the maximum short-term gain from a particular profit or service prior to withdrawing it from the market. The strategy is implemented by eliminating or reducing as many of the costs as possible. Current marketing costs may be reduced on the assumption that advertising incurred earlier will continue to have an effect and the possibility of manufacturing costs being reduced will be considered. There may be no public announcement of the potential withdrawal of the project from the market place as this may have an adverse effect on sales. There is not much published literature on the subject, but an interesting article by Noailly, van den Bergh, and Withagen (2003) examines the strategies used in managing renewable ...