Question

What is the difference between synergy and value creation with respect to strategy? Employing at least two different web resources, please give details and examples. Can you find an example of an organization that is employing true strategic value creation as opposed to the marketing/PR illusion of strategic value creation?

Answer 1

synergy and value creation are two similar and focus on improve the environment for all parties concerned

*** in strategy, synergy means to arrange or agreement between entitles than they tend to work together. the collaboration has to be in a way that is suistanable and create a great efficient impact than merely sum of different entitles.

example:

a company A that makes $x millions per year and company B that makes $y millions per year by themselves

if there exist a synergetic strategy between them and they form partnership then their joint effort will generate revenue is greater than $x+y so, the synergy is generated.

***** in strategy, value creation focus on increase output for a given input. in every business there are many processes and each of them have inputs and outputs. when the output is achieved with comparitively great benefit than input itself. it consider as creation of value.

example:

when we grind wheat and make flour we have input as wheat. however, when we have flour we have not only product but also utilize of flour readily. it is an addition of benefit of convenience.

**** a company that is truly create strategic value is tmos. they are conscious company that donate a pair sold.

the approach of company has cause them to allign their revenue generation process along with social cause tight.

it create a strong strategic value creation in the mean time.