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Question - Productivity
In early 20X1, United Communications, a U.S.-based international telephone communications company, purchased the controlling interest in Bucharest Telecom, Ltd. (BTL) in Romania. A key productivity measure monitored by United is the number of customer telephone lines per employee. Consider the following data for United:
20X1 without BTL
20X1 with BTL
20X0
customer lines
15,054,000
19,994,000
14,615,000
employees
74,520
114,590
72,350
lines per employee
202
174
1. What are United's 20X0 productivity and 20X1 productivity without BTL?
2. What are BTL's 20X1 productivity and United's 20X1 productivity with BTL?
3. What difficulties do you foresee if United brings BTL's productivity in line?
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