According to Goold and Campbell, when companies coordinate the flow of products or services of one unit with that of another unit which can reduce inventory, the synergistic effect is known as
A)pooled negotiating power.
B)shared know-how.
C)coordinated strategies.
D)economies of scale or scope.
E)new business creation.

Question

Quizplus · Accepted Answer

The synergistic effect of coordinating the flow of products or services between units leading to reduced inventory is known as economies of scale or scope. This means that the company can achieve cost savings due to increased efficiency and effectiveness through the coordination of resources and activities across different units. Pooled negotiating power, shared know-how, coordinated strategies, and new business creation are other examples of potential synergistic effects but are not directly related to the coordination of product or service flow.

According to Goold and Campbell, When Companies Coordinate the Flow