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, ________ are created.
A) value webs
B) value chains
C) synergies
D) core competencies
E) benchmarks

Question

Quizplus · Accepted Answer

Synergies are created 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. Value webs refer to a network of related products, services, and companies that support each other. Value chains refer to the sequence of activities that result in the production and delivery of a product or service. Core competencies refer to unique strengths or abilities that a company possesses and can use to gain a competitive advantage. Benchmarks refer to a standardized set of criteria used to measure and compare performance. Therefore, the best choice in this case is synergies (option C).

When the Output of Some Units Can Be Used as Inputs