When a large multinational packaged goods company purchased the advertising agency it has used for the past five years, its net savings after increases to salaries and overhead was equal to 12% of its media purchases and advertising production costs. There was no loss of the agency's client base and creative success increased as revenue-generation concerns diminished. What is this an example of?

Question

Quizplus · Accepted Answer

This is an example of Synergy, where the combined operation of the company and the advertising agency it purchased is more efficient or productive than their separate operations. The net savings and increased creative success indicate that the whole is greater than the sum of its parts, a hallmark of synergy.

When a Large Multinational Packaged Goods Company Purchased the Advertising