Synergy

The video explains synergy as the combination of two forces creating more value than their individual sums. It covers types of business synergies: cost synergies from mergers or acquisitions, revenue synergies from expanded sales, financial synergies from improved financial metrics, and operational synergies enhancing efficiency. Synergy results in greater value when entities combine efforts.

What is the main idea behind the concept of synergy?

• The combination of two forces creates more value than their individual contributions.

• The combination of two forces creates less value than their individual contributions.

• The combination of two forces creates the same value as their individual contributions.

• The combination of two forces has no impact on value creation.

How can organizations achieve cost savings through synergy?

• By increasing the price of products.

• By combining resources and efforts.

• By reducing the quality of products.

• By increasing the number of employees.

What is revenue scaling in the context of synergy?

• Reducing the number of products sold.

• Increasing the cost of production.

• Decreasing the number of distribution channels.

• Expanding sales through combined distribution channels.

Which of the following is a result of financial synergy?

• Improved financial performance metrics.

• Decreased operational efficiency.

• Reduced market share.

• Increased product defects.

What is an example of operational synergy?

• Decreasing the number of employees.

• Improving efficiency through resource sharing.

• Increasing the number of suppliers.

• Reducing the quality of customer service.