Strategic Synergy

Knowledge Center

   

Description of Strategic Synergy. Explanation.

 

Definition Strategic Synergy. Description.


Strategic Synergy is used to indicate the added value of shared resources or costs by combined organizational entities. The term is often used in strategy and mergers & acquisitions to compare the combined situation with separate entities.


Whether synergy is a real phenomenon or that the drawbacks of combining entities often outweigh the benefits, is a highly disputed theme in strategy and corporate finance. Synergies are often mentioned as a reason behind mergers & acquisitions, but they are difficult to achieve and even more difficult to measure.


Synergies can take many forms such as:

  • Sharing know-how about products, markets, marketing, manufacturing, R&D, or other functions.

  • Resource sharing of investment capital (cash and borrowing capacity) and other major assets.

  • Sharing and developing top management talent.

  • Combined branding.

  • Sharing customer relationships.

  • Sharing other stakeholder relationships (government).

  • Cost savings through combined purchasing power.

  • Cost savings in central services (HR, Legal, Purchasing, Finance, Governance, etc).

A standard drawback to consider is the reduced responsiveness of the less focused combined entity. Also, it may be possible to achieve many of the intended benefits without actually combining the organizational entities.


Strategic Synergy Special Interest Group


Special Interest Group (82 members)


Strategic Synergy Forum  

In the forum section you will find recent discussions within this knowledge area.


  Strategic Synergy Cases and Examples (0 reactions)
Hi, do you know of a remarkable case or an interesting examp...
 
 
 
 

Best Practices - Strategic Synergy

In the best practices section you will find the best forum discussions within this knowledge area.



Expert Tips - Strategic Synergy

In the expert tips section you will find advices from experts within this knowledge area.



Resources - Strategic Synergy

In the Resources section you will find powerpoint presentations, micro-learning videos, articles, news items, etc. within this knowledge area.


Mergers, Acquisitions & Corporate Control

Corporate Control, Mergers and Acquisitions, Anti-takeover Measures, Synergies...
 

Diversification, Synergy and Portfolio Management

Diversification, Corporate Strategy, Portfolio Management, Corporate Center...
 
 

News about Strategic Synergy


     
 

Videos about Strategic Synergy


     
 

Presentations about Strategic Synergy


     
 

Books about Strategic Synergy


     
 

More about Strategic Synergy


     

Compare with: Acquisition Integration Approaches  |  Parenting Advantage  |  Parenting Styles  |  Strategic Alliance  |  Joint Venture  |  Spin-Off  |  Horizontal Integration  |  Vertical Integration  |  Economies of Scale  |  Disaggregation  |  Divestiture

Special Interest Group Leader

You here? Sign up for free


 
 

Return to Management Hub: Change & Organization  |  Finance & Investing  |  Human Resources  |  Knowledge & Intangibles  |  Leadership  |  Marketing  |  Strategy  |  Supply Chain & Quality


More on Management  |  Return to Management Dictionary  | 

 

This ends our Strategic Synergy summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.0 - Last updated: 23-4-2019. All names of their owners.