Decide where each product sits on the cash‑generation versus growth curve. Apply explicit rules so money exits low‑return bets and funds advantaged plays.
A ‘harvest’ posture for a product line primarily aims to ______.
maximise cash generation while limiting new investment and protecting margin
accelerate R&D spend to gain share in a rapidly growing market
price below cost to build volume fast
exit immediately regardless of cash flows
An ‘invest’ decision is best justified when a business shows ______.
strong relative position, attractive market dynamics, and positive risk‑adjusted NPV
uncertain unit economics with negative NPV
low competitive strength in an unattractive market
a high historical spend that would be ‘wasted’ if stopped
High‑performing CFO teams avoid ‘peanut‑butter’ budgeting by ______.
reallocating material capital toward the best opportunities and away from laggards each cycle
tying all budgets strictly to last year’s revenue share
spreading small increases evenly to keep peace
freezing allocations year over year for stability
Milestone‑based funding is used so that ______.
success is judged by spend consumed rather than outcomes
projects continue only if gate criteria are met; otherwise they are killed or recycled
teams can bypass governance to move faster
approved projects receive the full five‑year budget up front
A classic signal to harvest rather than invest is ______.
low market growth with high share and stable cash flows (‘cash‑cow’ profile)
explosive category growth with clear product‑market fit
a small niche with unproven demand and large capex needs
structural decline and negative cash flows
In downturns, disciplined capital allocation prioritises ______.
continuing every project to preserve optics
maximising reported revenue regardless of margin
matching competitor spend to ‘stay in the game’
resilient ROIC, payback, and balance‑sheet flexibility over headline growth
Which governance practice strengthens invest/harvest calls across a portfolio?
using only historical spend as the baseline
weighting political influence in prioritisation
explicit criteria and scoring that are applied consistently across all units
case‑by‑case exceptions negotiated privately
A product under ‘harvest’ is most likely to change pricing and support in which way?
aggressive discounting to chase volume growth
bundling costly services at no charge to please long‑tail users
large new capex for capacity expansion
selective price increases and trimmed options to protect margin while honouring commitments
Dynamic portfolio reviews should explicitly consider ______ scenarios.
only the base case to avoid analysis paralysis
downside, base, and upside with triggers for reallocation
marketing calendar dates
the last fiscal year’s actuals copied forward
A common anti‑pattern that weakens invest/harvest decisions is ______.
requiring post‑investment reviews
spreading small bets everywhere instead of making a few big, high‑conviction moves
setting hurdle rates and sticking to them
publishing portfolio criteria in advance
Starter
Good start—review key concepts and try the quiz again.
Solid
On track—tighten judgement under edge cases and scenarios.
Expert!
Exceptional portfolio judgement—apply it to your toughest calls.
