- How is labour productivity calculated?
- How is capital productivity measured?
- Give an example showing how productivity can be increased in supermarkets?
- Give six factors influencing productivity
- Is it worth increasing productivity if costs of production do not fall?
- How can businesses compete, except on price?
- How is productivity related to standards of living and economic growth?
- Why was productivity in the UK not rising 2008-2014?
- Why may firms not want to invest?
- Increasing efficiency often requires investment in human capital – why?
Leyland
Trucks
Leyland Trucks
in Lancashire, UK, has been making commercial vehicles since 1896. Since 1998
it has been a wholly owned subsidiary of Paccar Inc, a Seattle-based firm that
is the third largest maker of medium and heavy duty trucks, worldwide. Both
Leyland and Paccar are great survivors, continually adapting to new technologies
and new customer requirements. Leyland is Paccar’s main centre for light and
medium truck design, with a leading role in the development of aerodynamic vehicles
that increase efficiency and reduce fuel consumption.
The business
competes with Volvo and Daimler Inc. Its main markets are in Europe, Australia,
South Africa and North America. Leyland believes its success is due to the
productivity of its employees and the significant capital investments made in
facilities, information technology systems and production processes.
At Leyland,
employees are encouraged to realise their full potential as valued members of
the company. Learning and development opportunities are provided for all
employees, encouraging them to develop their professional and personal skills.
There are career opportunities for people just leaving schools and colleges and
advanced management programmes for senior leaders. The business is committed to
raising standards through investment in the capabilities of employees.
Questions
1.
What meant by the term productivity? (2
marks)
2.
Identify and explain two reasons why raising
productivity is a key objective for
Leyland’s managers. (4 marks)
3.
Explain how the wider community may benefit
from productivity improvements. (4 marks)
4.
Discuss the possible gains that increasing
productivity may provide for three
of Leyland’s stakeholders. (8 marks)
5. Assess
the relative importance of investment in the productivity gains described above. (12
marks)
