Two divisions of a company decide to use the same manufacturing facilities to capitalize on the organization's excess capacity and to reduce the fixed costs assigned by corporate headquarters.This is an example of:
A)A diversification strategy
B)Concentration on a single business
C)International expansion
D)A focused-differentiation strategy
E)Synergy

Question

Quizplus · Accepted Answer

Synergy is obtained when the value created by two divisions cooperating is greater than the value that would be created if the two divisions operated separately and independently.

Two Divisions of a Company Decide to Use the Same