Textbook Notes_21-end
Document Summary
The essential nature of a goal structure can be caught, for example, in the use of the shorthand terms growth, harvest, and divest to describe different generic goal structures. A growth strategy implies a priority on market, plant, and personnel investments to grow the business, if necessary at the expense of current profitability. A harvest strategy implies a stingy approach to investment and spending as priority is given to milking cash and profits from a business. Divest means to give priority to those actions that prepare and initiate the sale of the business. While such terms as these need to be developed with specifics in individual situations, they do capture the overall notion of a coherent set of priorities in the goals of a business. The product market focus component of strategy spells out the nature of the products and/or services that a business intends to offer and the characteristics of the markets that it intends to compete in.
