An SBU can achieve synergy by ______.
A)aligning its activities with its functional strategy
B)coordinating and integrating its activities with the corporate strategy of the firm
C)developing new core competencies
D)reducing the extent of outsourcing

Question

Quizplus · Accepted Answer

Synergy is achieved by coordination and integration of activities across different levels of the organization, which is best achieved by aligning SBU activities with the corporate strategy of the firm. This allows SBUs to leverage shared resources, capabilities, and knowledge, creating economies of scale and scope that support the overall success of the business. Developing new core competencies can also contribute to synergy by enhancing the firm's competitive advantage, but this is not specific to SBUs. Conversely, reducing outsourcing may limit operational flexibility and reduce cost savings, making it an unlikely source of synergy for most organizations.

An SBU Can Achieve Synergy by ______