StudentShare solutions
Triangle menu
  • Home
  • Subjects
  • Miscellaneous
  • Many companies argue that they search for synergies between the business in their portfolio.do you think this is a realstic aspiration in aswering this qustio

Many companies argue that they search for synergies between the business in their portfolio.do you think this is a realstic aspiration in aswering this qustio - Essay Example

Not dowloaded yet

Extract of sample
Many companies argue that they search for synergies between the business in their portfolio.do you think this is a realstic aspiration in aswering this qustio

In business, the term describes a hoped-for or real effect resulting from different individuals, departments, or processes or portfolios of a business or companies working together and bringing about higher productivity and revenues than those of the sum of the individual elements or processes or portfolios of the business. This kind of advantage may be derived from the combined or cooperative efforts of different lines of business of an enterprise and or from the merger of two companies in the same line of business or industry. In fact, synergy is the magic word often bandied about to justify mergers and acquisitions. We shall consider in this paper the nature, content and the extent of synergy that may be generated in both these categories of business combination. However, at the outset itself, it needs to be said as Addison's Sir Roger de Coverly had often declared years ago that "much may be said on both sides of the question". (Joseph Addison)
Currently, many of the world economies are 'knowledge-based', heavily dependent on and driven by innovative technology. Any business which cannot adapt itself to the exacting demands of such an economic environment may find it difficult to survive long in the hustle and clamour of the competitive world in which it has its existence. Today's management has to be strategically equipped for the situation. Synergy supplies that strategic equipment. And a management so equipped will focus on the whole, and not on the parts, of a conglomerate business and will work on the interface of components, on their links and binding factors, and on the potential for the whole system to achieve results that are greater than the sum of the parts. A corporation that builds on core competencies utilises skills that combine to strengthen value chains and build greater competitive advantages. This leads to synergies among business units, which help them to become more productive together than independently. The collection of skills used in this situation may be largely intangible, but corporations can and do build synergies by sharing tangible resources. Corporate strategy seeks to develop synergies by sharing and coordinating staff and other resources across business units, investing financial resources across business units, and using business units to complement other corporate business activities. In the language of simple arithmetic logic, if two horses can pull 9,000 pounds, four horses can pull 18,000 pounds. Sounds reasonable - but in the language of synergy, it is wrong! Four horses in combination will be able to pull over 30,000 pounds! It is synergy that makes the difference.
A few examples
For instance, Ford Motor Company's different brands have their own strengths and systems. The organization unites them together with shared data and compatible systems. Their different high-tech and consumer-focused businesses have imparted the potential of impressive revenue growth, and supplied the synergies for maximum benefit. Another example is that of Toyota. Its global competitive advan ...Show more

Summary

We intend to discuss in this paper whether the search by many companies for synergies between their businesses is a realistic aspiration or merely like the search after the Holy Grail. In order that the discussion would be both 'light-bearing' and fruit-bearing', it is advisable to define what we understand by the term synergy in business…
Author : vanceschulist
Many companies argue that they search for synergies between the business in their portfolio.do you think this is a realstic aspiration in aswering this qustio essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Many companies argue that they search for synergies between the business in their portfolio.do you think this is a realstic aspiration in aswering this qustio"
with a personal 20% discount.
Grab the best paper

Related Essays

Why do you think it is important to manage know-who and stimulating connection between people
Managing Knowhow. Managing Knowhow 21st century is the era of information society and such a society, by its very nature is oriented around specialized knowhow. The challenge before the knowhow companies is to evolve into durable organizations by managing the knowhow of human beings (Charan, 2007).
1 pages (250 words) Essay
Some Management Accountants Argue That Budgets Are Great for Planning, but Not For Control. What Do You Think They Mean
Budgeting forecasts potential earnings, helps to anticipate problems and compares the expected performance with actual performance. Thus, some management accountants argue that budgets are great for planning, but not for controlling. I think this statement has several meanings.
6 pages (1500 words) Essay
How far would you argue that technology drives change in narrative construction Evaluate the relationship between technology an
Technically, it has gained major notice for its visual mastery and it has pushed the limits of digital developments as it has also prompted other film-makers to make the transition to the rich digital format. The digital genre however has not been widely accepted, especially among filmmakers who value the more subtle and more cerebral narrative construction in film.
12 pages (3000 words) Essay
What do you think is responsible for the political and economic stagnation in many postcolonial states
Legitimatization has mainly drawn on the prescriptions of neo-classical economics. Deregulation of domestic economic life, less state intervention in economic activities, and fewerobstacles to international trade: these are the main tenets of neo-liberal policy.
6 pages (1500 words) Essay
What do you think
Now what exactly is political correctness? Political correctness is a term used to describe language or behavior that aims to produce the least amount of offense. As the scope of political
2 pages (500 words) Essay
How does Plantinga argue for the claim that belief in God might be properly basic Do you think his argument is good Do you think that the conclusion of his argument is true
The philosophers belonging to the classical and traditional schools of thoughts have explained in detail their arguments about the existence of God and the rationality of individual’s belief in it. These thoughts are accepted as well
6 pages (1500 words) Essay
What you think
However, with the help of the lecturer and the class group, I have been able to acknowledge the role of philosophy not only academically but also in life. I have come to acknowledge philosophy
1 pages (250 words) Essay
The first part (14-101) of The Big Burn sets up the conflict between business interests and preservation interests. Write a short essay in which you argue that there is a conflict between these forces and what the potential results of that conflict are
The author talks about the people who attempted to prevent the fire and the consequences. It is quite evident from the book that there existed conflicts between the conservatives and people with business interests. The essay aims at exposing
2 pages (500 words) Essay
Aspiration
It is in this direction that the entry of food, fluid or other foreign material into the lung is generally considered to be accidental because the lung is not supposed to harbor such substances (Wierbicky, 2008). When any foreign material
2 pages (500 words) Essay
Many might argue that that now during an economic downturn is a bad time to start a business. What do you think
Startups operate through lean business model that ensures maximization of customer value and satisfaction (Ruhm 51). During economic downturn, businesses become more innovative. The startups strive to solve the problems created by the economic recession. During
1 pages (250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation