The Harvest Strategy

A business in this category is a candidate for removal from the corporate portfolio.

The factors driving the decision to harvest the business include poor financial performance, lack of compatibility with the core business, no competitive advantage, and poor fit with the future direction of the corporation.

General Electric's sale of its small appliance business to Black & Decker is an example of a harvest strategy. Generic strategies do not provide specific guides to action. Instead, they indicate direction or end results (e.g., harvest).

They offer broad guides to action. Specific action plans must be developed by management.