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> Eliminating duplicative or wasteful structures are “synergies” whether that’s engineering, sales, support, manufacturing, or G&A staff, real estate, or basica
by vageli 7y ago
> Eliminating duplicative or wasteful structures are “synergies” whether that’s engineering, sales, support, manufacturing, or G&A staff, real estate, or basically anything else that has a fixed cost component.
I would characterize that as removing redundancy. Synergy has a different definition altogether.
- sokoloff 7y agoThe definitions I found across several dictionaries (after looking just now) all amounted to something like: > the interaction of elements that when combined produce a total effect that is greater than the sum of the individual elements, contributions, etc. When an intended effect of a for-profit company is profit and a combination of two companies becomes more profitable (has a greater total intended effect) as a result of the combination, how is that altogether different?
- TeMPOraL 7y agoBecause the definition of "synergy" doesn't contain the part where you start firing people and closing departments to deduplicate jobs done in the now merged companies.