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The harvest strategy: how to implement a disaster for the environment and the stockholders

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  • Van V. Miller
  • John Quinn

Abstract

This paper examines the harvest strategy – an often recommended approach for dealing with a weak business unit. It is shown to be a strategy that intertwines the distinct levels of strategy making with the ultimate goal of increasing corporate value. However, in order to be successful it must be carried out inconspicuously. Inconspicuousness is a euphemism for deception in the case of the harvest strategy. Such behavior, when an industrial accident occurs, exposes shareholders to the risk of substantial losses if the accident happens in high‐risk technology industries. The authors illustrate their contention by analysing the financial consequences of the Union Carbide tragedy at Bhopal and the Exxon disaster at Valdez. © 1998 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Van V. Miller & John Quinn, 1998. "The harvest strategy: how to implement a disaster for the environment and the stockholders," Business Strategy and the Environment, Wiley Blackwell, vol. 7(2), pages 71-89, May.
    • Handle: RePEc:bla:bstrat:v:7:y:1998:i:2:p:71-89
    DOI: 10.1002/(SICI)1099-0836(199805)7:23.0.CO;2-S
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    References listed on IDEAS

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    1. Alfred Marcus, 1989. "The deterrent to dubious corporate behavior: Profitability, probability and safety recalls," Strategic Management Journal, Wiley Blackwell, vol. 10(3), pages 233-250, May.
    2. Theodore T. Herbert & Helen Deresky, 1987. "Generic strategies: An empirical investigation of typology validity and strategy content," Strategic Management Journal, Wiley Blackwell, vol. 8(2), pages 135-147, March.
    3. Geisler, Eliezer, 1996. "Cleaning up after reenginering," Business Horizons, Elsevier, vol. 39(5), pages 71-78.
    4. Kotler, Philip, 1978. "Harvesting strategies for weak products," Business Horizons, Elsevier, vol. 21(4), pages 15-22, August.
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    1. John Dinwoodie & Sarah Tuck & Harriet Knowles & James Benhin & Mark Sansom, 2012. "Sustainable Development of Maritime Operations in Ports," Business Strategy and the Environment, Wiley Blackwell, vol. 21(2), pages 111-126, February.
    2. William L. Smith & Yue Cai Hillon & Yanni Liang, 2019. "Reassessing measures of sustainable firm performance: A consultant's guide to identifying hidden costs in corporate disclosures," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 353-365, February.

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