If a corporation is to achieve synergy by sharing activities across its business units,it is not important to compromise on the design or performance of an activity that is to be shared.

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Sharing activities inevitably involve costs that the benefits must outweigh such as the greater coordination required to manage a shared activity. Even more important is the need to compromise on the design or performance of an activity so that it can be shared. For example, a salesperson handling the products of two business units must operate in a way that is usually not what either unit would choose if it were independent. If the compromise erodes unit effectiveness, then sharing may reduce rather than enhance competitive advantage.

If a Corporation Is to Achieve Synergy by Sharing Activities