| 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. |
