Synergy is an important concept for mangers because it will reinforce the need to work together in a cooperative manner. Further, organisational units tend to be more successful working together than working alone. Synergy arises when two actions performed jointly produce a greater result than they would if performed independently. There are different ways in which synergy can be obtained when a company expands its range of products and the markets it sells its products in, or when it diversified into new products and markets. It is useful to identify different categories of synergy. Synergy is gained by exploiting the strengths within the company and is closely associated with economies of scale. Although synergy might be acquired by developing the internal resource of a company, it is more commonly sought through mergers and acquisitions.