Discuss the concept of synergy as it relates to an organization’s growth. [3 Marks]
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Answered! Question 54 Discuss the concept of synergy as it relates to an organization’s growth. [3 Marks]…
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Synergy is a financial benefit that an organization achieves when it merges with or acquires with another corporation. Synergies help organization better results than two independent organizations. By combination of two corporations cost reduces, eliminate expenses associated with business operation. Innovative ideas come from two corporation’s executives, or managers and this innovative ideas improve performance of corporation as a whole. Synergies also reduce risks by merging of ideas and provide innovative solutions faced by independent firms and helps to reach position. Synergy also increases revenue by expanding business globally and selling products to international customers.
For example Walt Disney Company successfully benefits from synergy. Company’s movies, television programs and merchandising licensing programs benefits from one another.