which of the following is an example of synergy in business

These types of synergies relate to improvement in the financial metric of a combined business such as revenue, debt capacity, cost of capital, profitability, etc. The two firms combined may be able to achieve higher profitability than either firm could achieve on its own. Synergy can be reflected in increased revenues and/or lower expenses. Bank of America acquiring Countrywide Financial to reach a large pool of new customers The value chain model classifies all company activities as either primary or support activities. Examples of positive financial synergies include: Increased revenues through a larger customer base, lower costs through streamlined operations, talent and technology harmonies. Examples of synergy in M&A. 46) Which of the following is an example of synergy in business? Which of the following is an example of synergy in business? A) Amazon's use of the Internet to sell books C) Blockbuster combining traditional video rental with online video rental D) Walmart's order entry and inventory management system to coordinate with suppliers E) Nike's use of technology to improve its product offerings Examples of synergies in the business world include business mergers, combining or creating compatible product lines, and creating cross-disciplinary work groups… A classic example of synergy in M&A is the merger of Kraft and Heinz, announced in 2015. The synergistic effect of such transactions often forms the basis of the negotiations between the seller and the buyer.The following are the main types of synergies that corporations enjoy: 5 examples of synergy in business: Mergers and acquisitions – buying or teaming up with a complementary business and joining forces to grow faster. Synergy Example. For example, a company may acquire a similar firm, allowing it to expand its product offering and, as a result, increase its sales and revenues. Corporate synergy refers to the benefits that two firms are expected to gain when they merge or when one firm acquires another. Synergy is often one of the goals of a merger or acquisition. According to the press release from Heinz: “The significant synergy potential includes an estimated $1.5 billion in annual cost savings implemented by the end of 2017. Adding substantial new …

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