synergy

Examples of synergy in the following topics:

• The Role of Teams in Organizations

  • By combining various employees into strategic groups, a team-based organization can create synergies through team processes.
  • In order to maintain synergy between employees and organize resources, teams are increasingly common across industries and organizational types.
  • The underlying assumption of a well-functioning team is one of synergy, which is to say that the output of a team will be greater than the sum of each individual's contribution without a team architecture in place.

• Valuing the Target and Setting the Price

  • As synergy plays a large role in the valuation of acquisitions, it is paramount to get the value of synergies right.
  • Synergies are different from the "sales price" valuation of the firm, as they will accrue to the buyer.
  • Synergy creating investments are started by the choice of the acquirer and, therefore, they are not obligatory, making them real options in essence.

• The Importance of Leverage

  • Although there are different ways of understanding the concept of gaining leverage as a manager, the underlying principle should be one of synergy.
  • The concept of synergy emphasizes that one additional employee's output is greater than an arithmetic expectation.
  • More simply put, synergy means that 1 + 1 > 2 (a common adage in business for synergy is 1 + 1 = 3).
  • Delegation therefore allows managers to optimize team structures and skill-set distributions to allow for synergy in operations.

• Reasons for Combining Businesses

  • Synergy: Synergy is two or more things functioning together to produce a result not independently obtainable.
  • If used in a business application, synergy means that teamwork will produce an overall better result than if each person within the group was working toward the same goal individually.
  • Synergy can take the form of higher revenues, lower expenses, or a lower overall cost of capital.
  • Manager's hubris: A manager's overconfidence about expected synergies from a merger may result in overpayment for the target company.

• 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.

• Building a Culture of High Performance

  • Valued diversity – Team synergy is lost when groupthink dominates the discussion.
  • Mutual trust – Reliance upon one another, and trust in each other's skills and capabilities, allows for less duplication of work and more overall synergy.

• Advantages and Disadvantages of Group Decision Making

  • Group decision making provides two advantages over decisions made by individuals: synergy and sharing of information.
  • Synergy is the idea that the whole is greater than the sum of its parts.

• Cultural Intelligence

  • Diversity in a rapidly globalizing economy is a central field within organizational behavior and managerial development, underlining the critical importance of deriving synergy through cultural intelligence.
  • An interesting perspective on cultural intelligence is well represented in the intercultural-competence diagram, which highlights the way that each segment of cultural knowledge can create synergy when applied to the whole of cultural intelligence, where overlapping generates the highest potential CQ.

• Interactions of Hormones at Target Cells

  • Differentiate among the interactions (permissiveness, antagonism, and synergy) of hormones at target cells

• Overview of the International Business Environment

  • Global Synergies – Some organizations have highly developed competencies that are easily scaled.
  • In these situations, global expansion means natural synergy.