Corporate Synergy - Cost

Cost

A cost synergy refers to the opportunity of a combined corporate entity to reduce or eliminate expenses associated with running a business. Cost synergies are realized by eliminating positions that are viewed as duplicate within the merged entity. Examples include the head quarters office of one of the predecessor companies, certain executives, the human resources department, or other employees of the predecessor companies. This is related to the economic concept of Economies of Scale.

Aspects of corporations
  • Abuse
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See also
Aspects of occupations
Aspects of organizations
Aspects of workplaces
Corporate titles
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