Home Designs, Inc.
Home Designs, Inc. leveraged its brand name recently by adding windows and roof-related work and installation. On the same acreage where Home Designs has a door manufacturing facility, the company built another production facility for making windows. Sherice, the owner, is considering the strategic management approach necessary to determine how to take advantage of the company's strengths and exploit its opportunities.
-Refer to Home Designs, Inc. When Home Designs adds windows and roof-related work and installation to the door business, it can best be described as which type of synergy?

Question

Quizplus · Accepted Answer

The addition of windows and roof-related work and installation to the existing door business creates a market synergy, as it allows Home Designs to expand its offerings and capture more market share in the building industry. Procedural synergy involves improving operational efficiencies, rational synergy involves merging two companies for financial gain, technological synergy involves combining technologies to create new products or services, and management synergy involves integrating management styles and structures. However, none of these types of synergies accurately describe Home Designs' expansion into windows and roof-related work.

Home Designs, Inc. Home Designs, Inc. Leveraged Its Brand Name Recently by Adding