Under the title "The whole is greater than the sum of the parts", Alfredo Ortuño presented: ‘YECLA, Worker, Entrepreneur and Innovator’ his particular idea about the SYNERGY concept. This was held at CETEM last Friday 14/11 at the business convention.
1. PROLOGUE:
“THE CRISIS IS OVER”
Gentlemen, the economic situation of the country and of the closest Europe, as detailed below through excerpts obtained from an economic newspaper, has slightly improved and a very slow growth perspective is optimistic.
“This is what there is for a while”
The eurozone stagnates in the 2nd quarter:
After knowing the null growth of the Eurozone in the second quarter of the year, there is a concern in Brussels and to which Economy Ministers such as the Spanish Luis de Guindos headline: "There is a risk of a new recession" what it has to do to us think and lay the foundations so that the future economic strategy focuses on growth and job creation.
The constitution of new companies falls 1.2% in July:
In June and July fewer companies were created in Spain, 1.2% less than in the same month of the previous year. The "positive" figure is that the number of dissolved companies has also decreased in both months (14.9% and 15.6% less in the months of July and July, respectively).
The number of bankruptcy proceedings decreases by 30%:
In the 2nd quarter of the year, the number of insolvency proceedings has continued to fall to 1870, 30% less compared to the same period in 2013.
According to this, we must act, according to the world in which small and medium-sized companies move, which are ours, and I dare to present my particular idea.
2. PRESENTATION:
This paper: "Synergy between companies", aims to have a clearly practical and real orientation.
There are many experiences that I have gone through throughout my business career, and my goal today is to contribute a small grain of sand to those who are listening to me.
I would settle for you to stay with some concept that, no matter how small, would serve you to deal with any real situation that you are going to encounter in the future.
“The whole is more than the sum of its parts “
3. INTRODUCTION:
SYNERGY:
The term synergy comes from the Greek, synergo, which literally translated means “working together”. According to the Royal Spanish Academy, synergy is the "action of two or more causes whose effect is greater than the sum of the individual effects".
In other words, we find a case of synergy when 2 and 2 do not add up to 4, but instead add up to 5.
2 + 2 = 5
SYNERGY BETWEEN COMPANIES:
The concept of synergy becomes more interesting if we apply it to the business world.
Why not join forces with other companies to achieve better quantitative and qualitative results?
It is not that companies are going to lose individuality, a concept that we Yeclan businessmen esteem so much, but to combine skills, knowledge, resources...
If several companies unite under an optimal work methodology and with a common goal, the result will be superior to what each company would achieve individually.
The advantages are numerous: from sharing risks, sharing costs, jointly overcoming barriers... and most importantly, sharing resources and knowledge.
4. CASE STUDY:
I'm sure we all know the RENAULT and OPEL brands, and also the CITROEN, FIAT and PEUGEOT brands.
Extrapolating the concept of synergy between companies to the automotive sector, we have a clear example of how important companies decide to join forces and jointly develop vehicles for which sometimes the logo is practically the only thing that differentiates them.
Renault and Opel have jointly developed the Opel Movano and Renault Master models in France. On the other hand, its direct rivals: Fiat and Psa Peugeot Citroen, have been marketing the same van since 1981.
I suppose that this is no coincidence and that if the big ones do it, why aren't we capable of developing a similar project in our business sphere, taking advantage of the synergies between companies?
Let's learn from those who take advantage of us...
SYNERGY BETWEEN COMPANIES OF THE CITY OF YECLA:
The furniture industry in Yecla is characterized by its cluster structure, a concentration of companies related to each other in a very limited geographical area, and it is also the nerve center of regional furniture and the municipality with the highest percentage of manufacturing concentration in the Region of Yecla. Murcia.
However, we have not known how to take advantage of our business fabric and despite the crisis we have suffered, the businessmen of our city are still too oblivious to the concept of synergy between companies.
It is true that associations have been created, that joint commercial missions have been carried out…and that some have given some results, but we have not gone further.
Would we entrepreneurs in our city be capable of developing a project similar to that of the automobile sector but extrapolated to our business environment?
I propose my particular idea:
The manufacture of a single sofa model, jointly developed by at least 3 Yecla companies:
ADVANTAGES:
Companies will share:
Knowledge, which will surely lead them to develop a much more competitive product than if they had done it individually.
Product development costs.
Suppliers of Raw Materials: skeleton, rubber, fabric… taking advantage of economies of scale, you buy more quantity and you will get a better price.
Risks…
Sales with more rigorous payment systems.
Transport grouping
and many others, exhaustively analyzing each of the processes.
The result:
A highly competitive product developed with the aim of generating optimal results for different companies.
DISADVANTAGES:
Depending on the prism with which we look, we will find:
Many
Some
or nothing.
YOU DARE?
5. CONCLUSIONS:
To conclude, I would like to say that there are many successful companies from which we could learn to use synergies in our businesses.
As an entrepreneur that I am, I like to look at leading companies that do things very well and DO NOT COPY but adapt to my company what could make it evolve. Today, however, and although I don't consider myself a big name, at least for now, I hope that with this paper I have shed some light on the situation in which we find ourselves.
Honestly, I believe that this idea will not be carried out until the entrepreneurs, who are currently in charge of Yecla companies, disappear and other generations come with fresh air, much more practical and without so many prejudices...
Alfredo Ortuno Morales
Manager CABANES & ORTUÑO
