CHAPTER 6

4. What is synergy? How it can be achieve?

Synergy is the concept that the value and performance of two companies combined
will be greater than the sum of the separate individual parts. If two companies can
merge to create greater efficiency or scale, the result is what is sometimes referred
to as a synergy merge.
Achieving synergy in business involves effectively combining and leveraging
resources across different units to create greater value. Here are key steps to
achieve this:
1. Shared Resources: Utilize common resources such as technology
platforms, branding, and centralized operations to achieve economies of
scale.
2. Cross-Promotion: Implement cross-promotional strategies and unified
loyalty programs to enhance customer engagement across multiple business
units.
3. Strategic Acquisitions and Partnerships: Acquire complementary
businesses and form strategic alliances to expand offerings and market
reach.
4. Best Practices: Standardize best practices across all units to ensure high
quality and operational efficiency.
5. Innovation: Foster innovation to introduce new products and services that
cater to evolving customer needs and preferences.
6. Financial Synergies: Optimize resource allocation and diversify risks to
support growth and stability across different business segments.
7. Corporate Culture: Develop a strong, unified corporate culture and
leadership that aligns with the company’s strategic goals and values.
By focusing on these areas, businesses can create synergy that leads to increased
efficiency, customer satisfaction, and overall competitive advantage.

5. International Strategies: An international strategy is an approach with low

levels of global integration and local reactivity. In terms of organizing the business
units. it means that the company centralizes all information, authority, and
decision-making for international markets at the headquarters.
Multinational Strategies: When the organisation is involved in a number of
markets beyond its home country. But it needs distinctive strategies for each of
these markets because customer demand and, perhaps competition, are different in
each country.
Global Strategies: A global strategy is a business approach where a company
views the world as a single market and aims to achieve efficiency by standardizing
products and services across all markets. This strategy emphasizes centralized
decision-making and uniformity to capitalize on economies of scale and maintain a
consistent brand image worldwide.
Transnational Strategies: A transnational strategy is a business approach that
seeks to achieve both global efficiency and local responsiveness. This strategy
involves standardizing certain elements where possible to benefit from economies
of scale, while also customizing products, services, and practices to meet local
market needs. Decision-making is balanced between central and local units to
effectively integrate global coordination with local adaptation .