Business synergy

Redesigning the corporate organization in a way that best unleashes performance at business unit level and captures cross-business synergy, in particular putting in place a lean investor-type corporate center that can unlock these synergies at low cost. 

Synthesizing the above studies, this research conceptualizes collaborative advantage as the following five sub-components process efficiency, offering flexibility, business synergy, quality, and innovation (Table 5.1). These collaborative advantage and performance are viewed from the perspective of an individual supply chain member. More specifically, the focus concerns the focal firm s overall view of the performance outcomes of supply chain relationships (Duffy and Feame 2004). 

CAPE Process Efficiency CAOF Offering Flexibility CABS Business Synergy CAPQ Quality CAIN Innovation... 

Chapter 5 ( Collaborative Advantage as Consequences ) operationalizes collaborative advantage as consequences of supply chain collaboration with hve elements of process efficiency, offering hexibility, business synergy, quality, and innovation. 

An example in point is Johnson Matthey, the world s largest supplier of opiates. The products are obtained by plant extraction, which is the company s core competence. JM acquired the chemical CRO PharmEco with the intent to offer a one-stop shop capability. As PharmEco was primarily involved in synthetic chemistry, it is difficult to come across a synergy between the small- and the large-scale business. 

ChemKit consultants are highly qualified and have great market knowledge Synergies through networks (BMLFUW, WKO, UNIDO, and many more) Business acceptance and interest in Chemical Leasing Intensive PR work to raise awareness Access to subsidies (BMLFUW, WKO)... 

It was confirmed that Chemical Leasing mobilises synergies while combining the know-how of producer and applicant of chemical products and establishing stable and profitable business relationships. 

Knowledge transfer, capability building, and mutual learning are even less likely than usual to happen automatically and naturally if colleagues rarely see each other here, appropriate incentives need to be defined to make sure that people communicate with and support one another. Finally, there is a danger that overhead will be duplicated in each business division. This should be kept to a minimum by finding ways to tap into synergies across business units, in local sales operations, for instance. 

Short-term cost or revenue synergies, resulting directly from the combination of both businesses ... 

Determining the Synergy Potentials that are Directly Business-related... 

As a rule, the business-related synergy potential can be identified using a simplified business system focusing on four areas. 

When it announced the acquisition of Solutia s resins, additives, and adhesives business in December 2002, UCB surprised analysts as well as employees, who were all expecting an acquisition in pharmaceuticals rather than in chemicals. The acquisition, however, was not completely opportunistic. UCB Chemical s business development department was continuously on the lookout for value-creating opportunities to give the business more critical mass in an industry where suppliers and customers were rapidly consolidating, which made a concentration wave in the resins industry inevitable over time. In this context, the acquisition was a clear no-regret move the acquisition price was attractive and could easily be financed by UCB, and there were many complementarities as well as synergies. In addition - and as clearly stated at the time - the increased scale created more options for the future, including a possible spin-off or divestment. 

European chemicals managers today are asking themselves the same question as their US counterparts did a decade or two ago how can private equity funds succeed, given their limited knowledge of the chemicals business itself Conventional wisdom says that such limited knowledge of engineering and chemical markets and a lack of operational synergies for such M A transactions should be obstacles to successful private equity investments. 

There was very little synergy between the pharmaceutical and the cropprotection parts of the business. 

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