market-based management

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.