What is harvesting and divesting of the SBU ?

Define Harvesting and Divesting of the SBU in Company?

Harvest strategy aims at maximizing the remaining profits with minimal or no further investment in the SBU.

Divest strategy aims at either selling off the business unit completely or closing it down. It is because the business unit is making losses and has no further chance to make profits.

Harvest strategy and cash cow

Firms often harvest a business unit before selling it off. Afterwards they use the profits derived out of harvesting and divesting into investing another profitable SBU.