Question

Synergies allow businesses to add value to one another whereas the extent to which the corporate centre can add value to each of its businesses is called

Answer 1

i do not know the answer

Answer 2

The extent to which the corporate center can add value to each of its businesses is called relatedness.

• If the concept of synergy focuses on the value of resources when combined rather than autonomous, then relatedness focuses on the value obtained through the diversification of the business.
• The corporate center is involved with the allocation of resources, and it receives maximum value through diversification.
• As a result, relatedness has the capability to boost efficiency and effectiveness.
• Economic and technological developments make relatedness more endogenic and dynamic since all of these are key factors for diversification.