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. By building the second manufacturing facility on the same plot of land, Home Designs takes advantage of ____ synergy.

Question

Quizplus · Accepted Answer

By building the second manufacturing facility on the same plot of land, Home Designs takes advantage of cost synergy. This means that the company can reduce costs by sharing resources, such as utilities and personnel, between the two facilities. This is a common type of synergy in vertical integration, where companies expand their operations to incorporate different stages of the supply chain, as Home Designs has done by adding window production to its door manufacturing business.

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