After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon?
A) Strategy execution
B) Portfolio strategy
C) Core competency
D) Synergy
E) Delivering value

Question

Quizplus · Accepted Answer

This is an example of synergy, which occurs when the combination of two entities produces a greater outcome than the sum of their individual efforts. The increased collaboration between Sunshine Systems and RTD Enterprises resulted in both units benefiting from cost reductions and revenue increases.

After Sunshine Systems Merged with RTD Enterprises, Company Executives Noticed