DEFINITION of 'Harvest Strategy'

A strategy in which investment in a particular line of business is reduced or eliminated because the
revenue brought in by additional investment would not warrant the expense. A harvest strategy is
employed when a line of business is considered to be a cash cow, meaning that the brand is mature and
is unlikely to grow if more investment is added. The company will instead siphon off the revenue that
the cash cow brings in until the brand is no longer profitable.

Definition
Economics is the science of analyzing the production, distribution, and consumption of goods and
services. In other words, what choices people make and how/why they make them when making
purchases.
Microeconomics is a branch of economics that studies the behavior of individuals and businesses and
how decisions are made based on the allocation of limited resources. Simply put, it is the study of how
we make decisions because we know we don't have all the money and time in the world to purchase
and do everything. Microeconomics examines how these decisions and behaviors affect the supply and
demand for goods and services, which determine the prices we pay. These prices, in turn, determine the
quantity of goods supplied by businesses and the quantity of goods demanded by consumers.
Microeconomics explores issues such as how families reach decisions about what to buy and how
much to save. It also affects how firms, such as Nike, determine how many shoes to make and at what
price to sell, as well as how competitive different industries are and how that affects consumers.
Microeconomics should not be confused with macroeconomics, which is the study of economy-wide
things such as growth, inflation and unemployment.
Macroeconomics is the study of economics involving phenomena that affects an entire economy,
including inflation, unemployment, price levels, economic growth, economic decline and the
relationship between all of these. While microeconomics looks at how households and businesses make
decisions and behave in the marketplace, macroeconomics looks at the big picture - it analyzes the
entire economy.
In order to begin our discussion of economics, we first need to understand (1) the concept of scarcity
Scarcity
Scarcity, a concept we already implicitly discussed in the introduction to this tutorial, refers to the
tension between our limited resources and our unlimited wants and needs. For an individual, resources
include time, money and skill. For a country, limited resources include natural resources, capital, labor
force and technology.

Because all of our resources are limited in comparison to all of our wants and needs, individuals and
nations have to make decisions regarding what goods and services they can buy and which ones they
must forgo. For example, if you choose to buy one DVD as opposed to two video tapes, you must give
up owning a second movie of inferior technology in exchange for the higher quality of the one DVD.
Of course, each individual and nation will have different values, but by having different levels of
(scarce) resources, people and nations each form some of these values as a result of the particular
scarcities with which they are faced.
So, because of scarcity, people and economies must make decisions over how to allocate their
resources. Economics, in turn, aims to study why we make these decisions and how we allocate our
resources most efficiently.
Macro and Microeconomics
Macro and microeconomics are the two vantage points from which the economy is observed.
Macroeconomics looks at the total output of a nation and the way the nation allocates its limited
resources of land, labor and capital in an attempt to maximize production levels and promote trade and
growth for future generations. After observing the society as a whole, Adam Smith noted that there was
an "invisible hand" turning the wheels of the economy: a market force that keeps the economy
functioning.
Microeconomics looks into similar issues, but on the level of the individual people and firms within the
economy. It tends to be more scientific in its approach, and studies the parts that make up the whole
economy. Analyzing certain aspects of human behavior, microeconomics shows us how individuals and
firms respond to changes in price and why they demand what they do at particular price levels.
Micro and macroeconomics are intertwined; as economists gain understanding of certain phenomena,
they can help nations and individuals make more informed decisions when allocating resources. The
systems by which nations allocate their resources can be placed on a spectrum where the command
economy is on the one end and the market economy is on the other. The market economy advocates
forces within a competitive market, which constitute the "invisible hand", to determine how resources
should be allocated. The command economic system relies on the government to decide how the
country's resources would best be allocated. In both systems, however, scarcity and unlimited wants
force governments and individuals to decide how best to manage resources and allocate them in the
most efficient way possible. Nevertheless, there are always limits to what the economy and government
can do.
Economics
The theories, principles, and models that deal with how the market process works. It attempts to
explain how wealth is created and distributed in communities, how people allocate resources that are
scarce and have many alternative uses, and other such matters that arise in dealing with human wants
and their satisfaction.
ECONOMICS:1. Is the branch of knowledge concerned with the production, consumption, and transfer of wealth.
2. the condition of a region or group as regards material prosperity.
"he is responsible for the island's modest economics"

Control Chart
Control charts are used to determine whether or not a process is stable or has predictable performance.
Typically, control charts identify upper and lower control limits to determine the acceptable range of
test results.
Control charts commonly have three types of lines:
Upper and lower specification limits
Upper and lower control limits
Planned or goal value
Control charts illustrate how a process behaves over time and defines the acceptable range of results.
When a process is outside the acceptable limits, the process is adjusted.
Control charts can be used for both project and product life cycle processes. For example, for project
processes a control chart can be used to determine whether cost variances or schedule variances are
outside of acceptable limits.

Run Chart
A run chart is a line graph that shows data points over time. Run charts are helpful in identifying trends
and predicting future performance.
Run charts are similar to control charts, plotting data results over time, however there are no defined
control limits.
Example
A control chart may be used for a pharmaceutical company that is testing a new pain medication. The
drug must stay effective in the system for a minimum of three hours but last no more than five hours, to
prevent accidental overdose.
The mean time or goal efficacy duration would be four hours, with three hours the lower control limit
and five hours the upper control limit.
A run chart may be used to plot the temperature within the manufacturing plan every day for a month to
determine a trend.
SUMMARY
While both a run chart and a control chart plot data points over time or batches, the control chart is
enhanced with defined control limits and a target or goal delineation.
A Gantt chart is a horizontal bar chart developed as a production control tool in 1917 by Henry L.
Gantt, an American engineer and social scientist. Frequently used in project management, a Gantt
chart provides a graphical illustration of a schedule that helps to plan, coordinate, and track specific
tasks in a project.
To complete a project successfully, you must control a large number of activities, and ensure that
they're completed on schedule. If you miss a deadline or finish a task out of sequence, there could be
knock-on effects on the rest of the project. It could deliver late as a result, and cost a lot more. That's
why it's helpful to be able to see everything that needs to be done, and know, at a glance, when each

activity needs to be completed.

Gantt charts convey this information visually. They outline all of the tasks involved in a project, and
their order, shown against a timescale. This gives you an instant overview of a project, its associated
tasks, and when these need to be finished.

Why Use Gantt Charts?

When you set up a Gantt chart, you need to think through all of the tasks involved in your project. As
part of this process, you'll work out who will be responsible for each task, how long each task will take,
and what problems your team may encounter.
This detailed thinking helps you ensure that the schedule is workable, that the right people are assigned
to each task, and that you have workarounds for potential problems before you start.
They also help you work out practical aspects of a project, such as the minimum time it will take to
deliver, and which tasks need to be completed before others can start. Plus, you can use them to
identify the critical path the sequence of tasks that must individually be completed on time if the
whole project is to deliver on time.
Finally, you can use them to keep your team and your sponsors informed of progress. Simply update
the chart to show schedule changes and their implications, or use it to communicate that key tasks have

been completed.

Mary Parker Follett (1868-1933)

Follett defined management as: "the art of getting things done through people".
Her ideas are contradictory to the idea of scientific management, as she believed that managers and
subordinates should fully collaborate. Power is central to her ideas. Power is created and organized by
organizations, and according to her it is legitimate and inevitable. Regarding to power Follett used the
term "integration," to refer to noncoercive power-sharing based on the use of her concept of "power
with" rather than "power over."
Her ideas were formulated in three principles:
1. Functions are specific task areas within organizations. The appropriate degree of authority and
responsibility should be allocated to them so tasks can be accomplished.
2. Responsibility is expressed in terms of an empirical duty: People should manage their responsibility
on the basis of evidence and should integrate this effectively with the functions of others.
3. Authority flows from an entitlement to exercise power, which is based upon legitimate authority.

Power Over vs. Power With

Power over is a traditional relationship in which one person has power over another person or one
group over another group or one nation over another nation. It is a traditional relationship in the sense
that dominance and coercion are used time and again before other alternatives are sought. One side vies
for power over another, at best trying to influence the other to concede its position, at worst using brute
force to have its way. Power over is a relationship of polarity, opposite views and differentials in power
forever attracting each other from a posture of suspicion if not downright contempt. Power with is at
once relational and collective. It creates new possibilities from the very differences that might exist in a
group. Unlike brute force, which must be continually reinforced to sustain itself, power with emerges
organically from the participants involvedPower Over vs. Power With and grows stronger the more it is
put to use. Power with is an organizational form of collaboration, an idea central to what today is called
stakeholder engagement, multisector approaches, and co-creative power. Power with has the boldness
to believe that acting from immediate self-interest is not always the wisest course of action, nor that
one person or one group should be in a position to know what is best for another. Follett believed
instead that reciprocal influence could lead to a creative synthesis. What is remarkable about Folletts
approach is that she did not advance power with as a Utopian solution. Rather, she asked a far simpler
and subtler question:
How could our dependence on relationships of power over be diminished?
Management by Objectives (MBO) is a personnel management technique where managers and
employees work together to set, record and monitor goals for a specific period of time. Organizational
goals and planning flow top-down through the organization and are translated into personal goals for
organizational members. The technique was first championed by management expert Peter Drucker and
became commonly used in the 1960s.

Key Concepts
The core concept of MBO is planning, which means that an organization and its members are not
merely reacting to events and problems but are instead being proactive. MBO requires that employees
set measurable personal goals based upon the organizational goals. For example, a goal for a civil
engineer may be to complete the infrastructure of a housing division within the next twelve months.
The personal goal aligns with the organizational goal of completing the subdivision.
MBO is a supervised and managed activity so that all of the individual goals can be coordinated to
work towards the overall organizational goal. You can think of an individual, personal goal as one piece
of a puzzle that must fit together with all of the other pieces to form the complete puzzle: the
organizational goal. Goals are set down in writing annually and are continually monitored by managers
to check progress. Rewards are based upon goal achievement.

What Is Management by Exception?

Management by exception (MBE) is a practice where only significant deviations from a budget or plan
are brought to the attention of management. The idea behind it is that management's attention will be
focused only on those areas in need of action. When they are notified of variance, managers can hone
in on that specific issue and let staff handle everything else. If nothing is brought up, then management
can assume everything is going according to plan.
What is a Model
A Model is an abstraction of reality.
Downscoping is reducing the number of businesses as organization is managing in order to better focus
on its core business.
Downsizing
In a business enterprise, downsizing is reducing the number of employees on the operating payroll.
Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent
downscaling and a layoff intended to be a temporary downscaling in which employees may later be
rehired. Businesses use several techniques in downsizing, including providing incentives to take early
retirement and transfer to subsidiary companies, but the most common technique is to simply terminate
the employment of a certain number of people.
Rightsizing is downsizing in the belief that an enterprise really should operate with fewer people.
Dumbsizing is downsizing that, in retrospect, failed to achieve the desired effect.
In finance and economics, Divestment or divestiture is the reduction of some kind of asset for
financial, ethical, or political objectives or sale of an existing business by a firm. A divestment is the
opposite of an investment.
Refers to the sale of an asset for financial, legal or personal reasons. For corporations, divestment can
refer to a company selling off a portion of its assets, such as a subsidiary, to raise capital or to focus the
business on a smaller core of goods and services. For investors, divestment can be used as a social tool

to protest particular corporate policies, such as a company trading with a country known for child labor
abuses. Divestment can also be required of companies by the Federal Trade Commission in order to
have a merger approved.

DEFINITION of 'Harvest Strategy'

A strategy in which investment in a particular line of business is reduced or eliminated because the
revenue brought in by additional investment would not warrant the expense. A harvest strategy is
employed when a line of business is considered to be a cash cow, meaning that the brand is mature and
is unlikely to grow if more investment is added. The company will instead siphon off the revenue that
the cash cow brings in until the brand is no longer profitable.

Adam Smith used the metaphor of the invisible hand to refer to the guidance and benefit society receives
when individuals act in their own self-interest when trying to make money. According to Smith, when
consumers are left to freely choose what they want to buy, and businesses are left to freely decide what
they want to sell, the self-interest of both will lead to decisions that result in good prices and the right
products in the economy and marketplace. As a result, Smith argued that no government intervention is
needed. We simply have the invisible hand of economic self-interest to guide us. Let's explore the theory
more to help it all make sense.

Adam Smith argued that an economy works best when the govt. leaves people alone to buy and sell freely
among them. If businesses are allowed to pick their products, and price and trade them as they wish, selfinterested owners who are trying to maximize profit will compete with each other, leading to lower price and
better product offerings.

For example: If business B charges less than other stores for a gallon of milk, the customer will then by
milk from business B. As a competitive business owner, you will have to then lower your price of milk
or offer something better than business B if you want to keep making money and selling products. Your
own self-interest to stay in business will make you work to come up with better prices, services or
products. So no need to govt. intervention