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Business Productivity Of Capstone Project

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Question:

Discuss about the Business Productivity Of Capstone Project.

 

 

Answer:

Number of Staff Employed

The employee productivity or some shoes produced per worker is observable. At E Company, the number of workers employed was 504 in year 11 in North America with the worker productivity of 3,982 pairs. In Europe-Africa, there were zero workers employed in year 11 and hence zero productivity. In Asia-Pacific, the number of workers employed was 1454 with worker productivity of 2753 pairs. There were zero workers engaged in Latin America and hence zero worker productivity. Based on cumulative best practice, the worker productivity for North America was $2990 per worker and $ 0.75 per branded pair while it was $2819 per worker and $1.07 per branded pair in Asia-Pacific.

 

Pay Increases and Bonuses

The pay increases and bonuses had a direct positive effect on corporate image and productivity. The annual base wage (‘000’ per worker) was 15.0 in North America in year 11 from 15.0 in year ten while it was 3.1 in Asia-Pacific in year 11 from 2.8 in year 10. Incentive pay in year 11 was 2.2 compared to 5.1 in year 10 in North America whereas it was 1.1 in year 11 against 0.9 in year 10 in Asia-Pacific. The incentive pay per pair in North America stood at 0.55 in year 11 from 1.25 in year ten whereas it held at a constant of 0.40 in both years in Asia-Pacific. The pay increases and bonuses accounted for the better ranking of E Company at number 6 in year 11. The gains and bonuses made the company to boost its image hence better ranking. On the other hand, the increases and bonuses increased the productivity. Based on labor productivity, it is apparent that in Asia-Pacific, the productivity increased from 2500 pairs per worker in year 10 to 2753 whereas, in North America, the worker productivity reduced slightly from 4,000 in year10 to 3,982 pairs per worker in year 11. 

Training Strategies and Expenditure

The training strategies and expenditure have paid off. E Company’s investment in training culminated in enhanced productivity hence a financial benefit. Under branded production costs, it is observed that the best practices training in ‘000” was $1798 or $1.07 per pair in North America whereas it was 6123$ or 1.75$ per pair in Asia-Pacific. In overall, the training strategies and expenditure in “000” cost E Company 7,921$ or 1.53$ per pair. However, the training strategies and expenditure accounted for increased productivity per worker as explained above.  This means that the financial benefit was the expanded number of pairs of shoes produced hence large sales volumes which implied more revenue to the E Company.

 

Conclusion

From, the above information, it is clear that the overall productivity of E Company has increased. Moreover, the corporate image of E Company has increased and hence the position six ranking the company achieved. This is attributable to the better pay increases and bonuses and best practices training strategies that have been performed in the E Company. With this, the company has increased its capacity for production. This, therefore, means that the sales volume has increased which implies a higher revenue and hence income to the firm. This implies that the company has a financial benefit accruing from its actions including pay increases and bonuses alongside best practice training.

Therefore, the firm can favorably compete against its rivals and even ascend to a better position when the year 12 ranks are released. It is recommended that the E Company should continue upskilling its workers through best practice training strategies and pay increases and bonuses since they are the driving force behind a better corporate image. A corporate image, on the hand, implies better sales as many clients would want to associate with a reputable Company.   

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