Synergistic effects

Synergy means that the whole is great that the sum of parts.It makes 2+2=5.
Systems thinking result in synergy.It looks at the organization as a unified whole composed of interacting and interrelated subsystems.Functional activities,such as marketing,finance,operations,human resources and development are subsystems of an organization.Too much emphasis on a single activity reduces synergy.
Internal environment appraisal should consider organization in totality to see the "big picture"to achieve synergetic effects.Units become more productive together than endependently.

Synergistic effects emerge from :

• Cost saving :Cost economics to the organization.
• Elimination of duplication facilities.
• Effective use of available resources.

Synergetic effects are measured in terms of effects on functional activities.

• Marketing synergy :It occurs when existing,price,place,promotion support each other.Compatibility of existing product market with new product market.
• Production synergy :It occurs when new production use existing production facilities,technological skills and human resources capabilities.
• Research and development synergy :It occurs when existing R&D facilities can be used for development of new production.
• Financial synergy :It occurs when increased net revanue can be gained for a given level of investment or a decrease level of investment is required for a given level of earning.

The combination of organizational resources,Organizational behavior and strengths/weakness lead to synergistic effects.