Synergetic effect of cohesion among business units in a holding group or corporation

Abstract

Subject. The article addresses the evaluation of components of synergetic effect in a holding company (corporation) having subsidiaries. These components are formed due to the cohesion and connectivity of enterprises of the holding company (corporation). Objectives. The aim is to determine the areas of functioning of the said enterprises, where a synergetic effect is formed due to their connectivity. Methods. We determined the connectivity of enterprises and the synergetic effect arising from it, using our original model of commodity-money flows in the integrated structure and at each enterprise. The main link of the model, which takes into account the connectivity of enterprises, is a system of equations for the cost of intra-group and market products shipped by enterprises of the holding group (corporation). Results. The paper identifies areas of enterprise functioning in the holding (corporation), in which a synergetic effect is formed due to their connectivity and cohesion. The synergetic effect of connectivity is defined as incremented results of economic activity of enterprises of the holding group or corporation that are generated by the connectivity. We use the Tulamashzavod case and provide specific examples of determining the synergetic effect of connectivity in the selected areas of operation of the holding group enterprises. Conclusions. The synergetic effect, which depends on the connectivity and cohesion of enterprises in a corporation with subsidiaries, manifests itself as a large-scale factor. It generates an increase in sales volume at the corporation's enterprises due to intra-group turnover, and enables to increase their competitiveness.