Question

Proctor and Gamble is a large multinational organization that has many business sharing distribution resources. Diversification strategies take advantage of the __________ that exist in their organization. a) employees b) costs c) discontinuities d) synergies.

Answer 1

Answer:

d) synergies

Explanation:

Synergy refers to the interaction between two or more entities (employees, workers, departments, etc.) that produce a greater value than the sum of their individual parts.

Imagine if Proctor & Gamble which manages nearly 40 different brands, had to have individual distribution centers for each brand. Besides having to spend a ridiculous amount of money, their work would be negatively affected by all the extra coordination processes needed and the extra time wasted.