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13.3 Defensive Strategies-Core Strategy III: Monetize, Harvest, or Divest
Using the data provided, evaluate the two strategies for maximizing short run cash flow.
13.3-A Manage for Cash Flow
Reduce customer retention expense to $100, customer acquisition expense to $500, and marketing and sales expense to .5%.
13.3-B Harvest/Divest for Cash Flow
Reduce market share to 5% with a 10% increase in revenue per customer, no customer acquisition expense, and a marketing and sales expense equal .1% of sales.