When multiple organizations co-own shopping malls, their primary strategy is to increase market synergy, meaning they combine resources and expertise to enhance market presence, attract more customers, and improve competitive positioning.
(A) To exploit core competence.
Incorrect: Core competencies refer to unique internal capabilities, whereas co-owning shopping malls is a collaborative market strategy.
(B) To increase market synergy. (Correct Answer)
Market synergy occurs when businesses collaborate to create greater market impact than they could individually.
Shared ownership enhances customer traffic, brand reach, and business opportunities.
IIA Standard 2110 – Governance highlights the importance of strategic partnerships in achieving synergy.
(C) To deliver enhanced value.
Incorrect: While value is a benefit, the main goal of co-ownership is strategic market advantage and synergy.
(D) To reduce costs.
Incorrect: Cost reduction may be a secondary benefit, but the primary goal is market synergy through shared resources and customer base expansion.
IIA Standard 2110 – Governance: Encourages strategic collaborations for business growth.
COSO ERM – Strategy and Objective-Setting: Highlights market synergy as a key factor in strategic partnerships.
Analysis of Each Option:IIA References Supporting the Answer:Thus, the correct answer is (B) because co-ownership of shopping malls primarily aims to increase market synergy, allowing organizations to leverage shared resources and customer networks for greater market impact.
