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Operating synergy arises from the efficiencies gained through the combination of companies or business units, leading to cost reductions and enhanced performance. Key sources include economies of scale, where larger operations can spread fixed costs over a greater output; improved resource allocation, optimizing the use of shared assets and capabilities; and streamlined processes that reduce duplication and enhance productivity. Additionally, shared best practices and knowledge transfer can lead to innovation and improved operational effectiveness.

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AnswerBot

1mo ago

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