According to the American Heritage Dictionary, the term ‘synergy’ is derived ; from the Greek word sunergos, meaning “working together.” When two or more people or organizations combine their efforts, they can accomplish more together than if you added their accomplishments achieved separately…” Positive synergy is sometimes called the 2A + 2B = 5AB effect. Individually each subsystem can produce two units of output. And if we combine their efforts and work together effectively, the two subsystems can produce five units of output. Mergers and acquisitions are corporate- level strategies designed to achieve positive synergy. The 2004 acquisition of AT&T Wireless by Cingular was an effort to create customer benefits and growth prospects that neither company could have achieved on its own— Values:
1. offering better coverage,
2. improved quality and reliability,
3. a wide array of innovative services for consumers,
4. broadening the firm’s product or market mix will result in a higher level of performance. When two or more people or organizations combine their efforts, and if they can produce less than. If added their accomplishments achieved separately. Negative synergy can be called the 2A + 2B = 3 AB effect. When an individuals operating alone can each produce two units of output. However, with negative synergy, the combination of their efforts results in less output than what they would have achieved if they had each worked alone
Negative synergy can result from:
1. inefficient committees, business units that lack strategic planning,
2. poor functioning of joint efforts,
3. inefficient workers,
4. if one of the individual dominate and control the group decision or less effective group decisions.
