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in addition to expanding synergy group’s already vast route network in the spanish - speaking and portuguese - speaking americas, the group’s two latest moves may have important mro implications for synergy group’s many airlines .
stunning design, the synergy group is committed to building exceptional homes for our local communities .
with the synergy group newsletter, we seek to strengthen our internal communication and create a stronger sense of belonging throughout the synergy group, across our fleet, business segments, and branch offices .
avianca’s parent synergy group has made two moves this week which show that it is positioning itself as the only airline group with the ambition to be omnipresent throughout latin america .
, avianca’s parent synergy group has made two moves this week which show that it is positioning itself as the only airline group with the ambition to be omnipresent throughout latin america .
as at to date, plon synergy group sdn bhd has three (3) subsidiaries companies, namely peterlabs sdn bhd, osmosis nutrition sdn bhd and oms resources sdn bhd. plon synergy group sdn bhd does not have any associated company .
an official of hana financial group said, “with the opening of the gangnam building, the competitive edge of and synergy among non - bank subsidiaries of the group will be enhanced, putting the group in a better position to offer higher levels of satisfaction, and thus greater happiness, to customers. ”
we at synergy group are committed to our society and the environment and have over the years been involved in various developmental and donation activities .
iai and its brazilian partner synergy group have established a unique joint venture structured to expand iai’s offerings in brazil through acquisitions of local companies and activities, thus rapidly expanding the combined offerings of iai and the synergy group in brazil. the new brazil based company eae aerospace solutions was established to become the shareholder and holding company of the group’s activities in brazil, some have recently acquired by the synergy group. synergy has recently announced a substantial investment in the brazilian company flight technologies, a local manufacturer of tactical uavs for the brazilian army. the synergy group also has relevant activities, including the control of theeisa shipyard, currently building a 500 ton patrol ship for the brazilian navy, and the brazilian digex company, operating in aircraft maintenance area .
the asb group comprises operating subsidiaries and associates that service business and consumer markets in a variety of industries. these operating companies are grouped under the several key business divisions of the asb group, which include :
55 eulji - ro, jung - gu, seoul copyright ⒞ hana financial group 2012. all right reserved .
while aeromar’s order for atr turboprops appears unremarkable in itself, another sizeable atr order announcement the following day, november 15, started indicating the potential scale of the pan - latin america ambitions of synergy group and its subsidiary synergy aerospace .
synergy marine and synergy maritime contribute to world - class technical ship management, training, and innovative industry practices .
airlines group is the largest airline group in latin america. it has passenger - airline subsidiaries in argentina, brazil, chile, colombia, ecuador, paraguay and peru, as well as cargo - airline subsidiaries in brazil, chile, colombia and mexico .
synergy group’s chairman germán efromovich said: “we look forward to continuing our relationship with rolls - royce and have confidence in the benefits of both its trent 700 technology and support services. ”
plon synergy group sdn bhd was incorporated on 13 november 2002 in malaysia as a private limited company under the act and began its operations in the same year. plon synergy group sdn bhd is an investment holding company whose subsidiaries, namely peterlabs sdn bhd, osmosis nutrition sdn bhd and oms resources sdn bhd, are principally involved in the manufacturing, trading and distribution of animal health and nutrition products .
clarifying the objectives and benefits of a potential synergy initiative is the first and most important discipline in making sound decisions on synergy .
at synergy group, we recognize the importance of high morale crew in the successful operation of the vessels. we have established our crewing offices in india (chennai and delhi) and the philippines (manila) .
order represented part of a strategic investment by synergy aerospace in the mexican regional airline .
engine - maker rolls - royce has won a $ 630m (£408m) contract with brazil - based synergy group, which operates several airlines in south america and one in africa, to provide trent 700 engines and services for the nine airbus a330s it agreed to buy yesterday .
synergy’s tagline is, “it’s personal”, and it is. - martin harris, executive director
the pursuit of synergy often distracts managers’ attention from the nuts and bolts of their businesses .
hitachi zosen is working to fortify its overseas network and reorganize its group strengths. in recent years it has concluded successive m & a deals with hitachi zosen inova ag (switzerland), nac international inc. (united states), and cumberland electrochemical limited (united kingdom). last year it welcomed into the group the listed subsidiaries daiki ataka engineering co. , ltd. and nichizo tech .
our group is one of the leading specialists in manufacturing, distribution and trading of animal health and nutrition products. our group products include animal feed additives, environment maintenance products, veterinary pharmaceuticals, biologicals, anthelmintic, antimicrobial, disinfectant, injectable products, mold inhibitor and toxin binder, multi - nutrient and supplement, complete feed premix, pre - probiotic / enzyme / acidifier, topical dressings and cleansing agents
the new building is expected to enable non - bank subsidiaries to offer their clients comprehensive, one - stop services based on enhanced business synergy among them, strengthen their positions within the group, and contribute to cost - saving efforts by offering reduced rents and shared facilities such as conference rooms and auditoriums .
the opening of the gangnam building is part of the long - term vision that the group established in early 2014, specifically the goal of raising the non - bank sector’s share of the group’s total profits to 30% by 2025. the relocation of non - bank subsidiaries such as hana capital, hana savings bank, and hana asset trust to the gangnam building is expected to serve as a major step toward achieving that goal .
most corporate executives, whether or not they have any special insight into synergy opportunities or aptitude for nurturing collaboration, feel they ought to be creating synergy. the achievement of synergy among their businesses is inextricably linked to their sense of their work and their worth. in part, the synergy bias reflects executives’ need to justify the existence of their corporation, particularly to investors. “if we can’t find opportunities for synergy, there’s no point to the group, ” one chief executive explained to us. in part, it reflects their desire to make the different businesses feel that they are part of a single family. “my job is to create a family—a group of managers who see themselves as members of one team, ” commented another ceo. perhaps most fundamentally, it reflects executives’ real fear that they would be left without a role if they were not able to promote coordination, standardization, and other links among the various businesses they control .
even when a synergy prize is found to be sizable, corporate executives should not necessarily rush in .
when executives manage synergy well, it can be a boon, creating additional value with existing resources .
avoiding such failures is possible, but it requires a whole new way of looking at and thinking about synergy. rather than assuming that synergy exists, can be achieved, and will be beneficial, corporate executives need to take a more balanced, even skeptical view. they need to counter synergy’s natural allure by subjecting their instincts to rigorous evaluation. such an approach will help executives avoid wasting precious resources on synergy programs that are unlikely to succeed. perhaps even more important, it will enable them to better understand where the true synergy opportunities lie in their organizations. (see the insert “what is synergy? ” )
we understand how important it is for you to be able to trust your financial professional. it' s important to have a trusted professional you can count on to provide you with accurate and helpful information. the synergy group can be that professional you trust. we are experienced, responsive and understand your need for integrity and transparency .
if business - unit managers choose not to cooperate in a synergy initiative, they usually have good reasons .
head and branch offices of hana capital, hana savings bank, and hana asset trust have already moved into the building, nine floors of which will be used by the group, and the remaining 11 floors will be rented out .
because executives view the achievement of synergy as central to their jobs, they are prone to four biases that distort their thinking. first comes the synergy bias, which leads them to overestimate the benefits and underestimate the costs of synergy. then comes the parenting bias, a belief that synergy will only be captured by cajoling or compelling the business units to cooperate. the parenting bias is usually accompanied by the skills bias —the assumption that whatever know - how is required to achieve synergy will be available within the organization. finally, executives fall victim to the upside bias, which causes them to concentrate so hard on the potential benefits of synergy that they overlook the downsides. in combination, these four biases make synergy seem more attractive and more easily achievable than it truly is .
on november 15, synergy aerospace gave notice to the world of its ambition. in the news release announcing the order, synergy aerospace said: “its extensive operations will be further enhanced through recently announced ventures in argentina (avian
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the downsides of synergy are every bit as real as the upsides; they are just not seen as clearly .
in some cases, the analysis of synergy opportunities will raise questions that will be hard to answer. the size of the prize may be uncertain: will a joint internet marketing group help or hinder our businesses as they move into electronic commerce? the parenting opportunity may be unclear: is the german product manager resisting the corporate marketing campaign out of chauvinistic stubbornness, or is the german market really different? the needed skills may be unproven: will our technical manager be able to lead a coordination committee on production planning? the risks may be hard to pin down: will a cross - asian product - development group undermine innovation ?
our hallmark is a highly personalized service offered by an experienced team to our clients, combined with a complete end to end ship management services portfolio. it is our constant endeavor to understand specific needs of a diverse client group and deliver each time with precision !
synergy is warm and friendly. new people feel instantly welcomed .
- valentina simonetti, governance, risk and assurance consultant
synergy partner mark pattrick has taken out the prestigious partner of the year award at the 2018 australian accounting awards. [ … ]
we believe that synergy can provide a big boost to the bottom line of most large companies. the challenge is to separate the real opportunities from the illusions. with a more disciplined approach, executives can realize greater value from synergy—even while pursuing fewer initiatives .
“this formation provides iai the growth and flexibility enabling us to grow in the brazilian market” iai chairman yair shamir told defense update at the laad 2011 exhibition in rio de janeiro. “the unique formation offers iai, and the synergy defense and security group acting as our local partner to acquire companies that will be able to absorb, promote and localize the wide range of capabilities offered by iai, tailoring it for the brazilian requirements. ” shamir added .
the strength of synergy is its people and this has allowed us to build an inclusive culture that lets us operate in a supportive and encouraging environment .
even so, synergy aerospace’s emergence as a rapidly growing airline presence in the south, central and spanish - speaking americas markets begs some obvious questions .
clarifying the real objectives and benefits of a potential synergy initiative—“sizing the prize, ” as we term it—is the first and most important discipline in making sound decisions on synergy. executives should strive to be as precise as possible about both the type of synergy being sought and its ultimate payoff for the company. overarching goals should be disaggregated into discrete, well - defined benefits, and then each benefit should be subjected to hard - nosed financial analysis .
the word synergy is derived from the greek word synergos, which means “working together. ” in business usage, synergy refers to the ability of two or more units or companies to generate greater value working together than they could working apart. we’ve found that most business synergies take one of six forms :
on february 26, hana financial group announced that it had held a ceremony to celebrate the opening of the gangnam building for offices of non - bank subsidiaries, including hana capital, hana savings bank, and hana asset trust. formerly grace tower, the gangnam building is located in yeoksam - dong, gangnam - gu, seoul .
we recently changed our name from lowdergroup to synergy group. we’re still just as passionate about collaborating with our clients to help them achieve their goals. for over a decade, we’ve been helping our clients overcome obstacles, master difficult challenges, determine educational needs, and achieve their personal and professional goals. whether you’re seeking counseling, in need of an assessment, or are an athlete or executive that wants to take your performance to the next level, our team of experts can help you achieve your goals .
in evaluating the potential for synergy, corporate executives tend to focus too much on positive knock - on effects while overlooking the downsides. in large part, this upside bias is a natural accompaniment to the synergy bias: if parent managers are inclined to think the best of synergy, they will look for evidence that backs up their position while avoiding evidence to the contrary. the upside bias is also reinforced by the general belief that cooperation, sharing, and teamwork are intrinsically good for organizations .
what emerges from all this activity? in our years of research into corporate synergy, we have found that synergy initiatives often fall short of management’s expectations. some never get beyond a few perfunctory meetings. others generate a quick burst of activity and then slowly peter out. others become permanent corporate fixtures without ever fulfilling their original goals. if the only drawbacks to such efforts were frustration and embarrassment, they might be viewed benignly as “learning experiences. ” but the pursuit of synergy often represents a major opportunity cost as well. it distracts managers’ attention from the nuts and bolts of their businesses, and it crowds out other initiatives that might generate real benefits. sometimes, the synergy programs actually backfire, eroding customer relationships, damaging brands, or undermining employee morale. simply put, many synergy efforts end up destroying value rather than creating it .
managers have sometimes accused us of being too skeptical about synergy. they argue that the disciplined approach we recommend—clarifying the real benefits to be gained, examining the potential for parental involvement, taking into account the possible downsides—will mean that fewer initiatives will be launched. and they are right. we believe that corporate managers should be more selective in their synergy interventions. in all too many companies, synergy programs are considered no - brainers. cooperation and sharing are viewed as ideals that are beyond debate. as we’ve seen, such assumptions often lead to failed initiatives that waste time and money and, sometimes, severely damage businesses. real synergy opportunities exist in most large companies, but they are rarely as plentiful as executives assume. the challenge is to distinguish the valid opportunities from the mirages. (see the exhibit “a disciplined approach to synergy. ” )
when synergy is well managed, it can be a boon, creating additional value with existing resources. but when it’s poorly managed, it can undermine an organization’s confidence and erode the trust among business units as well as between the units and the corporate center. synergy’s upsides are real, but so are its downsides. and the only way for managers to avoid the downsides is to rid themselves of the biases that cloud their thinking. when it comes to synergy, executives would be wise to heed the physicians’ creed: first, do no harm .
the synergy is attractive; the parenting opportunity is clear; the skills are in place. is it time to act? not necessarily. a final discipline is in order: looking carefully for any collateral damage that may occur from the synergy program. because the pursuit of synergy affects the relationship among business units and the relationship between the units and the corporate center—two of the most sensitive relationships in any big company—it can have far - reaching consequences for a company’s organization and strategy. if corporate executives overlook the negative knock - on effects, they risk great harm .
synergy doesn’t put you in a box, it allows you to get on with the job. it’s creative, innovative, and there’s a real entrepreneurial spirit there .
- kim moeller, partner
rolls - royce will offer totalcare long - term engine service support for synergy aerospace’s a330s, with yesterday’s additional nine aircraft worth $ 1. 8bn (£1. 1bn) according to airbus ’ list prices .
for both these chief executives, synergy had become an emotional imperative rather than a rational one. spurred by a desire to find and express the logic that held their portfolio of businesses together, they simply assumed that synergies did exist and could be achieved. like wanderers in a desert who see oases where there is only sand, they became so entranced by the idea of synergy that they led their companies to pursue mirages .
synergy real estate a privately - held independent global real estate development and investment firm founded in 2001 by mr. yaniv efraim. synergy real estate has an extensive global footprint and corresponding infrastructure, with local presence and hands on operational platform within all major markets in which the company operates at. this global infrastructure provides synerg’s acquisition team with proprietary market knowledge, sourcing capabilities and the local presence required to identify and execute complex transactions .
in other cases, cooperation can distort the way unit managers think about their business, leading to wrongheaded decisions. consider the experience of a diversified retailing company that tried to encourage greater cooperation between its two appliance - retailing businesses. one of the businesses, which focused on selling top - quality appliances at premium prices, was highly profitable. the other, which pursued a pile - it - high, sell - it - cheap strategy, was barely breaking even. the group ceo recognized the differences between the businesses, but he felt certain that synergy could be achieved, particularly in purchasing. to encourage greater cooperation, he put the head of the profitable business in charge of both operations .
the synergy bias becomes an obsession for some executives. desperately seeking synergy, they make unwise decisions and investments. in one international food company that we studied—we’ll call it worldwide foods—a newly appointed chief executive fell victim to such an obsession. seeing that the company’s various national units operated autonomously, sharing few ideas across borders, he became convinced that the key to higher corporate profits—and a higher stock price—lay in greater interunit cooperation. the creation of synergy became his top priority, and he quickly appointed global category managers to coordinate each of worldwide foods’ main product lines. their brief was to promote collaboration and standardization across countries in order to “leverage the company’s brands internationally. ”
synergy is an independent retirement focused financial firm serving clients throughout western pennsylvania and the pittsburgh region. founded in 1988, we have developed our business by reaching out, nurturing and maintaining close, trusting relationships with each of our clients .
in the sixteen years since its inception, from a single tel aviv office base, synergy re has invested in diverse and complex property, corporate, and portfolio transactions through varied economic cycles. since inception synergy has been involved in acquisition and development in scope of $ 5 billion in over 3, 000 sfr and more than 8 million sqft of commercial development and has ~ $ 25 billion of assets under management (gross) on behalf of over 250 institutional investors .
as the pizza problem shows, viewing cooperation as an unalloyed good often blinds corporate executives to the negative knock - on effects that may arise from synergy programs. they rush to promote cooperative efforts as examples to be emulated throughout the company. rarely, though, do they kill an otherwise promising initiative for fear that it might erode a unit’s morale or distort its culture. synergy’s downsides are every bit as real as its upsides; they’re just not seen as clearly .
sizing the prize provides a counterweight to the synergy bias, forcing corporate managers to substantiate their assumptions that the synergy initiatives they propose will create big net benefits. it also helps counter the parenting bias, as the careful analysis of opportunity costs can help corporate managers better understand the source of any unit manager’s resistance. and, by leading to the disaggregation of broad initiatives into discrete, well - defined programs, sizing the prize can set the stage for a focused, successful implementation .
but what is most eye - catching about synergy aerospace’s airline operations throughout the latin and spanish - speaking americas is the company’s fast - growing geographical coverage and also the sheer geographical scale of its pan - latin and spanish - speaking americas ambition .
in my previous firm, i had very limited exposure to client executive. within six months of being at synergy, i was presenting to rooms full of executive, and now i do it on a daily basis. - joe brine, senior manager
it is never possible to predict all the unintended consequences that can flow from a synergy initiative (or, for that matter, from any management action). but by simply being aware that business - unit collaboration can have big downsides, managers will be able to take a more objective, rigorous view of potential synergy efforts. in some cases, they will be able to structure the effort to avoid many of the potential downsides. in other cases, they will be able to kill proposals that would have created more problems than they solved .
from the synergy personalised agreement which gives all 130 team members the authority to determine how they want to work, to our partnership with youthcare canberra, healthy office initiatives, team building events and recently becoming a cpa recognised employer, we pride ourselves on being a workplace that is both innovative and unique .
whether or not the intended benefits of a synergy initiative materialize, the initiative can have other, often unforeseen consequences—what we call knock - on effects. knock - on effects can be either beneficial or harmful, and they can take many forms. a corporate - led synergy program may, for example, help or harm an effort to instill employees with greater personal accountability for business performance. it may reinforce or impede an organizational change. it may increase or reduce employee motivation and innovation. or it may alter the way unit managers think about their businesses and their roles, for better or for worse .
when a synergy program founders, it is usually the business units that take the blame. corporate executives chalk the failure up to line managers’ recalcitrance or incompetence. we have found, however, that the blame is frequently misplaced. the true cause more often lies in the thinking of the corporate executives themselves .
because the parenting bias encourages corporate executives to discount unit managers’ objections, it often leads them to interfere excessively, doing more harm than good. if, for example, unit managers believe that the opportunity costs of a synergy program outweigh its benefits, forcing them to cooperate will make them even more skeptical of synergy. if two unit managers have a bad working relationship, pushing ahead with a coordination committee will simply waste everyone’s time. although headquarters sometimes needs to push units to cooperate—when, for instance, some units are unaware of promising technical or operational innovations in another unit—it should consider intervention a last resort, not a first priority .
the discipline of pinpointing the parenting opportunity is probably the most valuable contribution that we have to offer to corporate executives in search of synergy. thinking clearly about why parental intervention is needed can help managers avoid mirages and select suitable interventions. unless a parenting opportunity can be pinpointed, our advice is not to intervene at all .
corporate managers afflicted with the synergy bias are prone to other biases as well. if they believe that opportunities for synergy exist, they feel compelled to get involved themselves. they assume that the unit managers, overly focused on their own businesses and overly protective of their own authority, disregard or undervalue opportunities to collaborate with one another. as one exasperated ceo told us, “there’s the i’m - too - busy syndrome, the not - invented - here syndrome, and the don’t - interfere - you - don’t - understand - my - business syndrome. if i didn’t continually bang their heads together, i believe they would never talk to one another. ”
finally, the category manager stepped back and tried to think more clearly about the synergy opportunities. she saw that the broad goal—leveraging international brands—could be broken down into three separate components: making the brand recognizable across borders, reducing duplicated effort, and increasing the flow of marketing know - how. each of these components could, in turn, be disaggregated further. making the brand recognizable, for instance, might involve a number of different efforts affecting such areas as brand positioning, pricing, packaging, ingredients, and advertising. each of these efforts could then be evaluated separately on its own merits. (see the exhibit “disaggregating a synergy program. ” )
the creation of new businesses can be facilitated by combining know - how from different units, by extracting discrete activities from various units and combining them in a new unit, or by establishing internal joint ventures or alliances. as a result of the business world’s increased concern for corporate regeneration and growth, several companies have placed added emphasis on this type of synergy .
even when a synergy prize is found to be sizable, corporate executives should not necessarily rush in. we would in general urge a cautious approach unless the need for corporate intervention is clear and compelling. corporate executives should start with the assumption that when it makes good commercial sense, the business - unit managers will usually cooperate without the need for corporate involvement .
some synergy efforts send the wrong signals to line managers and employees, clouding their understanding of corporate priorities and damaging the credibility of headquarters. when one company set up a coordination committee to seek marketing synergies among its businesses, the unit managers thought the ceo was abandoning his much - communicated goal of promoting stronger accountability at the individual unit level. they saw the corporate committee as a sign of a return to more centralized control. in fact, the shift of accountability to the units remained a core strategic thrust—the synergy initiative was simply a tactical effort intended to save money. in another company, an initiative to coordinate back - office functions distracted employees from the corporation’s fundamental strategic goal of becoming more focused on the customer. they began looking inward rather than outward .
by taking a more disciplined approach to achieving synergy, an executive can gain its rewards while avoiding its frustrations. the first step is to evaluate the costs and benefits—to “size the prize. ” if the net benefit is unclear, more exploration is needed. if it appears to be small, the executive should not pursue the synergy unless the risks of corporate intervention are low. if it seems large, the executive should determine whether an intervention by the corporate parent makes sense. if the parenting opportunity is unclear, the intervention should be restricted to facilitating further exploration. if no parenting opportunity exists, the executive should resist any urge to intervene. if a clear parenting opportunity exists, the executive should tailor the intervention to fit the opportunity while minimizing any downside risks .
perception opportunities arise when businesses are unaware of the potential benefits of synergy. the oversight may be caused by a lack of interest, a lack of information, or a lack of personal contacts. the parent can help fill the perception gap by, for example, disseminating important information or by introducing aggressive performance targets that encourage units to look to other units for better ways to operate .
evaluation opportunities arise when the businesses fail to assess correctly the costs and benefits of a potential synergy. the businesses’ judgments may be biased by previous experiences with similar initiatives, distorted by shortcomings in the processes or methods they use to assess cost - benefit trade - offs, or skewed by their own strategic priorities. in such cases, the parent should play a role in correcting the units’ thinking .
in one large retailing group, the chief executive was convinced, rightly, that there were big benefits to be had from improving and sharing logistics skills across the company. knowing that competitors were gaining advantages from faster, cheaper distribution, he felt, again rightly, that his businesses were not giving this function sufficient attention. he therefore set up a cross - business team to develop, as he put it, “a core corporate competence in logistics. ” as there was no obvious corporate candidate to lead the team, the chief executive decided to appoint the supply chain manager from the company’s biggest business unit, in the belief that he would grow into the role. as it turned out, the manager’s lack of state - of - the - art logistics know - how, combined with his poor communication skills, undermined the team’s efforts. the whole initiative quickly fell apart .
another question concerns the fact there are still eight countries in the spanish - speaking americas in which synergy aerospace has not yet formed airline subsidiaries or made strategic investments in airlines: bolivia, chile, cuba, the dominican republic, panama, paraguay, uruguay and venezuela. does it intend to do so, particularly if and when the economy of venezuela, a country with more than 30 million people, stabilizes ?
rather than encouraging interunit cooperation, the initiatives ended up discouraging it. as the failures mounted, the management teams in each country became more convinced than ever that their local markets were unique, requiring different products and marketing programs. after a year of largely fruitless efforts, with few tangible benefits and a significant deterioration in the relationship between the corporate center and the units, the chief executive began to retreat, curtailing the synergy initiatives .
all too often, executives set overly broad goals for their synergy programs—goals that make good slogans but provide little guidance to managers in the field. by disaggregating a broad goal into more precisely defined objectives, managers will be better able to evaluate costs and benefits and, when appropriate, create concrete implementation plans. here we see how one broad and ill - defined goal—“leveraging international brands”—was systematically broken down into meaningful components that could be addressed individually .
the pursuit of synergy pervades the management of most large companies. meetings and retreats are held to brainstorm about ways to collaborate more effectively. cross - business teams are set up to develop key account plans, coordinate product development, and disseminate best practices. incentives for sharing knowledge, leads, and customers are built into complex compensation schemes. processes and procedures are standardized. organizational structures are reshuffled to accommodate new, cross - unit managerial positions .
it sometimes works to a company’s advantage to align the strategies of two or more of its businesses. divvying up markets among units may, for instance, reduce interunit competition. and coordinating responses to shared competitors may be a powerful and effective way to counter competitive threats. although coordinated strategies can in principle be an important source of synergy, they’re tough to achieve. striking the right balance between corporate intervention and business - unit autonomy is not easy .
corporate executives who believe they should intervene are also likely to assume that they have the skills to intervene effectively. all too often, however, they don’t. the members of the management team may lack the operating knowledge, personal relationships, or facilitative skills required to achieve meaningful collaboration, or they may simply lack the patience and force of character needed to follow through. in combination with the parenting bias, the skills bias dooms many synergy programs .
the goals of synergy programs tend to be expressed in broad, vague terms: “sharing best practices, ” “coordinating customer relationships, ” “cross - fertilizing ideas. ” in addition to cutting off debate—who, after all, wants to argue against sharing? —such fuzzy language obscures rather than clarifies the real costs and benefits of the programs. it also tends to undermine implementation, leading to scattershot, unfocused efforts as different parties impose their own views about what needs to be done to reach the imprecisely stated goals .
pressured by the ceo, the category managers launched a succession of high - profile synergy initiatives. the results were dismal. a leading u. k. cookie brand was launched with considerable expense in the united states. it promptly flopped. a pasta promotion that had worked well in germany was rolled out in italy and spain. it backfired, eroding both margins and market shares. an attempt was made to standardize ingredients across europe for some confectionery products in order to achieve economies of scale in purchasing and manufacturing. consumers balked at buying the reformulated products .
the approach proved disastrous. the chief executive’s enthusiasm for the one - firm policy blinded him to the realities of the marketplace. most of the big clients resented the imposition of a gatekeeper between themselves and the actual providers of the specialist services they were buying. indeed, many of them began to turn to the firm’s competitors. far from creating value, the synergy effort damaged the firm’s profitability, not to mention some of its most important client relationships. faced with an uproar from the consulting staff, the ceo was forced to eliminate the client - manager positions .
the best antidotes for these four biases, as for all biases, are awareness and discipline. simply by acknowledging the tendency to overstate the benefits and feasibility of synergy, executives can better spot distortions in their thinking. they can then put their ideas to the test, posing hard questions to themselves and to their colleagues: what exactly are we trying to achieve, and how big is the benefit? is there anything to be gained by intervening at the corporate level? what are the possible downsides? the answers to these questions tell them whether and how to act .
once the overall synergy goal has been broken down into its main components, the next step should be to estimate the size of the net benefit in each area. uncertainties about both the costs and the benefits, however, often lead executives to avoid this obvious task. but without some concrete sense of the payoff, the decision maker will be forced to act on instinct rather than reason. that does not mean that an exhaustive financial analysis has to be performed before anything gets done. in most cases, order - of - magnitude estimates will do. is the program likely to deliver
top - down synergy efforts can also undermine employee motivation and innovation. one consumer - goods company, for example, launched an effort to coordinate research and development across its european units. although the effort appeared to be highly attractive, offering substantial productivity gains, it backfired. a key source of innovation in the company had been the internal competition between the u. k. and the continental businesses. by establishing a combined research unit, headquarters ended the competition—and the creativity. the effort succeeded in eliminating duplicated effort and achieving economies of scale, but these gains were overshadowed by the unanticipated downsides .
the estimated financial benefits don’t always tell the whole story, though. they rarely take into full account the opportunity costs of a synergy program, particularly the costs that result from not focusing management’s time and effort elsewhere. the difficulty lies in knowing when the opportunity costs are likely to be greater than the benefits. at one consumer - products company, for example, the corporate center was spearheading an initiative to take a product that had been successful in one country and roll it out in a number of other countries. the local managers resisted the idea. they argued that the program would incur considerable opportunity costs, forcing them to divert marketing funds and management time from other local brands. the key to resolving the dispute lay in determining the strategic importance of the planned rollout .
the skills bias is a natural corollary to the parenting bias. if you are convinced that you need to intervene to make synergies happen, you are likely to overlook skills gaps—or at least assume that they can be filled when necessary. professional pride, moreover, can make it difficult for senior managers to recognize that they and their colleagues lack certain capabilities. but a lack of the right skills can fatally undermine the implementation of any synergy initiative, however big the opportunity. what’s more, learning new skills is not easy, especially for senior managers with ingrained ways of doing things. if new and unfamiliar skills are called for, it’s a serious error to underestimate the difficulty of building them. it may be better to pass the opportunity by than to embark on an intervention that can’t be successfully implemented .
implementation opportunities open up when unit managers understand and commit to a synergy program but, through a lack of skills, people, or other resources, can’t make it happen. the business heads of a european chemical company, for example, agreed that it would be valuable to pool their resources when setting up an asia - pacific office in singapore. their aim was to improve the effectiveness of their sales efforts in markets that were unfamiliar to all of them. the initiative failed because none of the businesses had a suitable candidate to head the office; the individual appointed was not well connected in the region and lacked the skills needed to open new accounts. if the parent had intervened, by providing a suitable manager from its central staff or training and by coaching the man appointed, the chances of success would have increased greatly .
if convinced that the benefit is sizable and the parenting opportunity real, executives can then search for the best kind of corporate intervention. there are usually several possible choices, all with different advantages and drawbacks. synergies from combined purchasing power, for example, might be achieved by centralizing purchasing, by setting up a purchasing coordination committee, by establishing a corporate advisory center, by creating a cross - unit database on purchases, or by setting corporate standards for terms and conditions. the decision on how to intervene should depend on the nature of the benefit and the parenting opportunity. but it should also take into account the available skills in the organization and the ease with which implementation is likely to take place. and it should seek to minimize the downside risks. carefully selected interventions are the best way to release truly valuable synergy .
assuming that unit managers are naturally resistant to cooperation, executives conclude that synergy can be achieved only through the intervention of the parent. (the parent, in our terminology, can be a holding company, a corporate center, a division, or any other body that oversees more than one business unit .) in most cases, however, both the assumption and the conclusion are wrong. business managers have every reason to forge links with other units when those links will make their own business more successful. after all, they regularly team up with outside organizations—suppliers, customers, or joint venture partners—and they’ll even cooperate with direct competitors if it’s in their interest. in the music industry, to take just one example, the four leading companies will often share the same cd - manufacturing plant in countries with insufficient sales to support four separate plants .
the exercise proved extremely useful. the category manager was able to go back to the local managers and systematically discuss each possible synergy effort, identifying in precise terms its ramifications for each local unit. in some cases, she found she had to take the disaggregation even further. in examining the possibility of standardizing one product’s packaging, for example, she found there were local issues about the type and color of the cap; the material used for the bottle; the size, shape, and color of the bottle; and the size of the label. each item required a separate evaluation of costs and benefits. the type of cap, for example, had a big impact on manufacturing costs—and thus was an attractive candidate for standardization—but some local managers argued that changes in cap design could hinder their marketing efforts. customers in different countries preferred different cap mechanisms. by carefully balancing the cost savings from economies of scale in manufacturing against the possible loss of sales, the category manager and the local managers were able to reach a consensus on how much to reduce cap variety .
according to shamir, among the fields of interest of the new jv are companies providing aircraft maintenance and support, which could offer iai’s aircraft modernization, upgrading and support programs, providers of electronics and avionics, positioned to promote iai’s avionics design, integration products, and companies associated with maritime operations, capable of introducing maritime systems and capabilities. ïai brings a wealth of technologies and know how, especially in the field of system integration, being a complex, yet critical phase of every modernization and upgrading program” said shamir .
“we entered brazil with determination to be an active, leading player in the brazilian defense and security market” said shamir, “while we are pursuing several defense and security programs in the brazilian market we are not necessarily waiting for these tenders to mature, or wins to establish our presence here. ” iai regards the growing demand for homeland security as a springboard to enter the brazilian market, said shamir, “we are crafting our technologies to offer the brazilian government and federal customers with comprehensive solutions to specific needs, that will eventually improve the security, and emergency response of brazilian authorities, utilizing mature, efficient and ubiquitous intelligence, situational awareness and information management capability. “ as part of this operation, iai has already embarked on a large scale uav program supporting the brazilian federal police, and is pursuing the sisfron (integrated system for border management) and other opportunities .
“we are determined to invest what is necessary to establish our position, introduce our capabilities and, along with our local partners, introduce the solutions we feel as mature and suitable for our brazilian customers. we believe this market leadership strategy will win in the long run, as this market being in the advanced development phase, is searching for solutions we can offer” shamir concluded .
brazil signs us $ 5 billion contract for 36 swedish gripen ng fighter ...
finland has selected israel' s advanced naval attack missile to replace its current mto85m system, a derivative of swedish rbs15 that will reach the end of its life cycle in the 2020s. the new missile will be installed on existing hamina - class missile boats and the new squadron 2020 vessels, the first will be launched in 2019. according to the finnish mod, the missile will also be usable from vehicular platforms on land and against land targets .
write css or less and hit save. ctrl + space for auto - complete .
bombardier transportation signed a contract for 20 years of rail system maintenance services with an undisclosed customer in southeast asia .
bombardier today announced that it will be offering head - up display and enhanced vision system as an option on its best - selling challenger 350 business jets .
to mark the implementation of the c series partnership among airbus, bombardier and investissement québec on july 1, 2018, media are invited to attend ...
the closing of the previously announced c series transaction between airbus sas, a wholly - owned subsidiary of airbus se, bombardier inc. and investissement ...
rail technology leader bombardier transportation is pleased to announce fredrik owman as the new site general manager for its västerås operations in sweden .
bombardier is pleased to reinforce its partnership with the downsview aerospace innovation and research consortium to establish an aerospace hub in toronto ...
bombardier and dair invite representatives of the media to join them for an announcement about the establishment of a new aerospace hub in ...
bombardier transportation inaugurates new production hall for series production in saxony – kick - off for industry 4. 0 at its bautzen site
bombardier (tsx: bbd. b) today announced the following retirements and changes in responsibility for members of its senior leadership .
toronto is the financial and multicultural metropolis of canada. the daily life of its 6. 3 million citizens is punctuated by a series of ...
bombardier (tsx: bbd. b) and airbus have agreed to close the c series partnership on july 1, 2018 after having received all required regulatory approvals .
bombardier (tsx: bbd. b) and airbus (epa: air) will hold a conference call for media on friday, june 8, 2018, starting at 7: 00 a. m. edt - 1: 00 p. m. cest .
having received all required regulatory approvals, airbus se, bombardier inc. and investissement québec have agreed to close the c series transaction ...
bombardier (tsx: bbd. b) today confirmed the completion of the previously announced sale of its downsview property to the public sector pension investment ...
bombardier transportation was honoured at the victorian manufacturing hall of fame awards held in melbourne, australia.
synergy group corp. is a south american conglomerate created and owned by germán efromovich , an entrepreneur holding multiple citizenship of brazil , colombia and poland . the group is headquartered in rio de janeiro , brazil . it operates several airlines in south america , among which are avianca holdings , with a 66.66 % stake , and is active in the exploration of oil and natural gas throughout the region . additionally , it operates hydroelectric power plants , participates in the construction of telecommunications infrastructure , shipbuilding and technical inspections , radiochemistry , radiopharmaceuticals , agriculture and hospitality . synergy group has integrated the airlines and companies of taca with avianca under a holding company , avianca holdings . the synergy group owns 66.66 % of the newly created subsidiary company . kingsland holding ( texas ) owns the other 33.33 % of avianca-taca . synergy aerospace corp. , a sub-division of synergy group , is headquartered in bogota , colombia . it is the major shareholder of avianca holdings . the company controls eight airlines in four countries : avianca and tampa cargo in colombia , avianca brazil , variglog and synerjet in brazil , vip and aerogal in ecuador and grupo taca in el salvador . in november 2012 , synergy aerospace corp. established synergy aerospace europe . synergy aerospace established a joint venture in march 2011 with israel aerospace industries ( iai ) . brazil-based company eae aerospace solutions was established to become the shareholder and holding company of the group ’s activities in brazil . synergy wants to invest in flight technologies ( ft ) , a manufacturer of tactical uavs for the brazilian army , based in são josé dos campos . the joint venture will offer advanced defense systems , such as unmanned aerial vehicles ( uavs ) , multi mission transporters , mission and fighter aircraft upgrades , intelligence surveillance and reconnaissance ( isr ) advanced systems and radars . the synergy group also has relevant activities , including the control of the eisa shipping agency , currently building a 500-ton patrol ship for the brazilian navy , and the brazilian digex company , operating in aircraft maintenance area . synergy aerospace was a candidate in the acquisition of portuguese state carrier tap portugal . in november 2012 , synergy group created synergy europe based in luxemburg , to deal with the possible takeover of the portuguese airline . all european activities would be handled by its european subsidiary . through this unit , the company was planning to partner with european investors , including portuguese airline euroatlantic airways . in june 2015 , synergy lost the bid to the gateway consortium , that includes portuguese bus owner humberto pedrosa and brazilian david neeleman ( azul brazilian airlines ) . 
synergy group corp. is a south american conglomerate created and owned by germán efromovich, an entrepreneur holding multiple citizenship of brazil, colombia and poland. the group is headquartered in rio de janeiro, brazil. it operates several airlines in south america, among which are avianca holdings, with a 66.66% stake, and is active in the exploration of oil and natural gas throughout the region. additionally, it operates hydroelectric power plants, participates in the construction of telecommunications infrastructure, shipbuilding and technical inspections, radiochemistry, radiopharmaceuticals, agriculture and hospitality. synergy group has integrated the airlines and companies of taca with avianca under a holding company, avianca holdings. the synergy group owns 66.66% of the newly created subsidiary company. kingsland holding (texas) owns the other 33.33% of avianca-taca. synergy aerospace corp., a sub-division of synergy group, is headquartered in bogota, colombia. it is the major shareholder of avianca holdings. the company controls eight airlines in four countries: avianca and tampa cargo in colombia, avianca brazil, variglog and synerjet in brazil, vip and aerogal in ecuador and grupo taca in el salvador. in november 2012, synergy aerospace corp. established synergy aerospace europe. synergy aerospace established a joint venture in march 2011 with israel aerospace industries (iai). brazil-based company eae aerospace solutions was established to become the shareholder and holding company of the group ’s activities in brazil. synergy wants to invest in flight technologies (ft), a manufacturer of tactical uavs for the brazilian army, based in são josé dos campos. the joint venture will offer advanced defense systems, such as unmanned aerial vehicles (uavs), multi mission transporters, mission and fighter aircraft upgrades, intelligence surveillance and reconnaissance (isr) advanced systems and radars. the synergy group also has relevant activities, including the control of the eisa shipping agency, currently building a 500-ton patrol ship for the brazilian navy, and the brazilian digex company, operating in aircraft maintenance area. synergy aerospace was a candidate in the acquisition of portuguese state carrier tap portugal. in november 2012, synergy group created synergy europe based in luxemburg, to deal with the possible takeover of the portuguese airline. all european activities would be handled by its european subsidiary. through this unit, the company was planning to partner with european investors, including portuguese airline euroatlantic airways. in june 2015, synergy lost the bid to the gateway consortium, that includes portuguese bus owner humberto pedrosa and brazilian david neeleman (azul brazilian airlines).
synergy group corp. is a south american conglomerate created and owned by germán efromovich, an entrepreneur holding multiple citizenship of brazil, colombia and poland. the group is headquartered in rio de janeiro, brazil. it operates several airlines in south america, among which are avianca holdings, with a 66.66% stake, and is active in the exploration of oil and natural gas throughout the region. additionally, it operates hydroelectric power plants, participates in the construction of telecommunications infrastructure, shipbuilding and technical inspections, radiochemistry, radiopharmaceuticals, agriculture and hospitality. synergy group has integrated the airlines and companies of taca with avianca under a holding company, avianca holdings. the synergy group owns 66.66% of the newly created subsidiary company. kingsland holding (texas) owns the other 33.33% of avianca-taca. synergy aerospace corp., a sub-division of synergy group, is headquartered in bogota, colombia. it is the major shareholder of avianca holdings. the company controls eight airlines in four countries: avianca and tampa cargo in colombia, avianca brazil, variglog and synerjet in brazil, vip and aerogal in ecuador and grupo taca in el salvador. in november 2012, synergy aerospace corp. established synergy aerospace europe. synergy aerospace established a joint venture in march 2011 with israel aerospace industries (iai). brazil-based company eae aerospace solutions was established to become the shareholder and holding company of the group ’s activities in brazil. synergy wants to invest in flight technologies (ft), a manufacturer of tactical uavs for the brazilian army, based in são josé dos campos. the joint venture will offer advanced defense systems, such as unmanned aerial vehicles (uavs), multi mission transporters, mission and fighter aircraft upgrades, intelligence surveillance and reconnaissance (isr) advanced systems and radars. the synergy group also has relevant activities, including the control of the eisa shipping agency, currently building a 500-ton patrol ship for the brazilian navy, and the brazilian digex company, operating in aircraft maintenance area. synergy aerospace was a candidate in the acquisition of portuguese state carrier tap portugal. in november 2012, synergy group created synergy europe based in luxemburg, to deal with the possible takeover of the portuguese airline. all european activities would be handled by its european subsidiary. through this unit, the company was planning to partner with european investors, including portuguese airline euroatlantic airways. in june 2015, synergy lost the bid to the gateway consortium, that includes portuguese bus owner humberto pedrosa and brazilian david neeleman (azul brazilian airlines).