A firm plans to use a defensive core strategy of monetize,harvest,and divest,with the strategic objective of maximizing cash flow.Which of the following strategies is the firm most likely to implement as a part of its core strategy?
A)build customer retention
B)enter new related markets
C)develop new markets
D)manage for cash flow
E)improve customer loyalty

Question

Quizplus · Accepted Answer

The strategy of monetize, harvest, and divest aims at maximizing cash flow by enhancing the profitability of existing products or services, reducing investments in declining products or services, and divesting non-essential and non-performing assets. Managing for cash flow is one of the key elements in this strategy, as it involves focusing on cost reduction, improving working capital management, and generating cash from existing resources. The other options such as building customer retention, entering new related markets, developing new markets, or improving customer loyalty may not be the primary focus of a defensive core strategy of monetize, harvest, and divest.

A Firm Plans to Use a Defensive Core Strategy of Monetize,harvest,and