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How to Implement Harvest Strategy in Business

Harvest strategy, New Market entry, and business plan are studied in the last session. These sections have helped me to learn about how to enter a new market, when to implement harvest strategy and how to make a business plan.

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A harvest strategy is the plan to close business within a stipulated time and maximizing profit over this time. The decision regarding the time of exit from the business is to be planned. “A Harvest Strategy is also known as an asset Reduction Strategy and is a means by which an organization seeks to limit or decrease its investment in a business by extracting as much cash out of its operation as possible. It steers a middle course between maintenance and abandonment. Reinvestment in the business is minimal.” (Definition Harvest Strategy: Description. 2009).

The strength of employing a harvest strategy is required to evaluate and adopting of harvesting strategy is essential when there is an unattractive or declining market trend where the business is not seen as a major component of a firm’s portfolio. In the strategic planning process, a harvesting plan is also to be made in meeting the crisis and reducing the risk of huge losses. The strength of the harvest strategy is that it allows a time frame that can be extended based on the business profitability.

The value proposition is the unique features of the product or anything related to the company that distinguishes the company from its competitors.

“Value proposition is what makes customers choose you, instead of the competition. It’s part marketing, part operations and part strategy.” (Richards 2009).

A business plan is a guideline for managing the business in profitable ways. It is a written description of the future business. “A business plan is a formal statement of the business goals, their justifications and the procedures planned to be undertaken to achieve those goals.” (Business Plan).

At the time of the selection process of staff personnel, a business plan will act as a basis for setting up selection criteria. Thus best team members suitable to the business objectives can be selected. It explains the purpose of the organization. By establishing a vision in the business plan it can persuade others to contribute to achieving the vision. A business plan can be used as a yardstick for measuring the operational performance of employees and managers.

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Managers can utilize the business plan according to the business goals. Managers can use the business plan for the transmission of their vision to potential ideas. Potential ideas can be adopted for business development.

Newmarket entry involves changes in the Business Environment. Changes in the environment should reflect the Marketing Plan of the company. In such a situation company will have to focus on issues like Cost leadership marketing strategy, Product Differentiation strategy, Focus strategy, Pricing strategy, Promotional strategies, Product distribution, Human resources strategy, Financing strategy, and growth plans.

“Executives constantly look at new market entry opportunities as a way of generating rapid growth, diversifying their portfolios, and (occasionally) secretly satisfying their entrepreneurial spirit. Newmarket entry strategies enable companies to improve their revenue base by entering into new geographies, to solidify relationships with existing customers by extending their product offerings, and to diversify their customer base by targeting different customer segments.” (New Market Entry. 2009).

In the last session of the module, I have learned that attention must be made before entering into the new market. I also studied the importance of changes to be adopted in the changing business environment. I have learned that the main strength of the company is a well-defined structure and professional expertise. Opportunities in the new market can be utilized for gaining market share. The study shows that entry to the new market will offer profitability and growth. A marketing plan is required to be changed according to the changing business environment. The company is required to focus on growth and marketing plan and that should be based on environmental changes. While managing the business environment, the company’s vision, mission, and strategic planning must be focused.

A business plan shows that there is plenty of opportunities for the growth and development of the firm after entering into the new market. Organizational experience, knowledge, and skills are essential for acquiring success in the new market. Employees are important in bringing success to the firm. Employee retention is important in bring organizational success. It is also seen that organization is having good experience and service knowledge in the field to enter into the new market.

Bibliography

Business Plan. [online]. Economy Watch. 2009.

Definition Harvest Strategy: Description. (2009). [online]. 12Manage: The Executive Fast Track. Web.

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New Market Entry. (2009). [online]. Bridge Strategy Group. Web.

RICHARDS, Daniel. (2009). Writing a Business Plan-Business Concepts and Value Propositions. [online]. Web.

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