When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits, it is often referred to as creating:
A)value webs.
B)value chains.
C)synergies.
D)core competencies.

Question

Quizplus · Accepted Answer

Synergies refer to the integration of the output of different units to create a greater overall benefit. This can come from pooling resources or expertise, as mentioned in the question. Value webs and value chains refer to the interconnected processes involved in creating and distributing a product or service, while core competencies refer to the unique strengths or capabilities an organization possesses that sets it apart from competitors. While some of these concepts may be related to creating synergies, the best choice given the description in the question is C.

When the Output of Some Units Can Be Used as Inputs