SYNERGY

•Pranav Chiplunkar (187312)

•Gautam Joshi (187326)
•Nishit Bhadra (187307)
•Yash Desai (187316)
•Maithilee Kurvey (187333)
•Lohit Mundewadi (187336)
 INTRODUCTION
Derived from greek words: “syn” and “ergein”
Synergy is creation of whole which is greater than
sum of its parts.
Great help for mergers and acquisitions.

Pranav Chiplunkar
(187312)
 TYPES OF SYNERGY
Financial synergy: Aim to use financial resources to
the fullest.
Management synergy: It is a mobile approach,
management resources are made available to all
departments.
Sales synergy: Same marketing tools like advertising,
warehousing are used.
Operational synergy: Operation facilities are
streamlined. No confusion between two divisions is
ensured
Investment synergy: Common investment plan and
Pranav Chiplunkar
ideas are used to have optimum use of resources.
(187312)
 EVALUATION OF SYNERGY
MEANING:
 Evaluation of synergy serves as a useful mechanism
to recycle feedback as an input to shape future plans.
 Evaluation includes the ways departments and
divisions perform their roles. Their results are
assessed against set standards.
 Evaluation of synergy enables to reward managerial
performance.

Gautum Joshi (187326)

NEED FOR EVALUATION:
Need for Evaluation arises when the business fails to
assess correctly the cost benefit of a potential synergy.
When managers try to evaluate synergy, they invariably
land up making comparisons with the past experiences.
Regular Evaluation Of Synergy keeps the managers
alert all time.

Gautam Joshi (187326)

 IMPACT OF INTERNAL AND
EXTERNAL FACTORS
INTERNAL:
These factors impact the success and approach to business operations.
Company Leadership is an important factor which upholds values of employees and
effectiveness of communication.
Most of internal factors are in control of the management.
Other factors like financial and physical resource, software systems, patents, trademarks,
etc also influence business organizations.
EXTERNAL:
When external factors are not in tune with synergy, it may not produce desired results.
These factors may affect the ability of combining firms to attain their goals.
While adopting synergy, the management has to understand the external environment
confronting them and also anticipate how changes in the environment might affect the
profitability of the firms.

Gautam Joshi (187326)

 IMPORTANCE OF SYNERGY
Synergy is the result of certain studies that indicate
that coming together of two divisions or two firms
will be favourable for the future growth of business.
It takes into account both internal and external
environment affecting the organisations.
Adequate scope is provided to introduce corrective
actions in order to adjust strategies and policies to
new requirements.

Nishit Bhadra (187307)

 APPRENSESIONS OF SYNERGY
Several studies have indicated that synergy initiatives
have often fallen short of expectations or some have
ended with few meetings.
Others have generated scores of activities and slowly
disappeared and others have become permanent
corporate fixtures without accomplishing their goals.
The failure of synergy is not restricted to frustration
and embarrassment because it involves opportunity
cost as well.

Nishit Bhadra (187307)