Synergy

(noun)

The concept that a whole can derive more value than the combination of the individual parts. A common expression in defining synergy is 1+1 = 3, or each piece derives more value that it would on it's own.

Related Terms

Examples of Synergy in the following topics:

  • Growth through buying out other companies

    • First of all, just like large firms, small firms can try to obtain synergies by means of complementary resources from bought-out firms.
    • Synergy effects and reduced or shared overheads can also be gained here.

  • Mergers and Acquisitions (M&As)

    • Economies of scope (aka, synergies) make product diversification efficient if they are based on a similar common use.

  • Acculturation problems when buying companies

    • The different cultures must be adapted to each other, or the growth of the entire company and its individual departments due to synergy effects is at stake.

  • Power

    • Eighty-seven years ago our great-grandfathers and –grandmothers built a capacity for the implementation of a new nation (partnering with God) with a commitment to harnessing synergies for enhanced outcomes for all stakeholders going forward.
    • Today we are confronting the challenge of seeing whether hopefully a country with these commitments and these synergies will still be there at the end of the day. ~ Don Watson

  • Defining Globalization

    • Globalization is a natural phenomenon, in both cultures and markets, that allows for synergy through specialization.

  • Modern Trends in Social Responsibility

    • Yunus' and Grameen Bank's work supports the claims of modern-day social entrepreneurs regarding the enormous synergies and benefits achieved when business principles are unified with social ventures.

  • Major Historical Developments in the Global Economy

    • Synergy in a globalized economy is well supported by those EU initiatives.

  • The State of the Economy

    • The synergy of U.S. political freedoms and free markets appeared vindicated by the Soviet Union's collapse in 1991.

  • Defining international marketing

    • The primary objective of the company is to achieve a synergy in the overall operation, so that by taking advantage of different exchange rates, tax rates, labor rates, skill levels, and market opportunities, the organization as a whole will be greater than the sum of its parts.