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BUS 644 Week 1 DQ 1 .pdf

Original filename: BUS 644 Week 1 DQ 1.pdf
Title: BUS 644 Week 1 DQ 1
Author: Dheerender

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BUS 644 Week 1 DQ 1
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Why Productivity Matters. It is sometimes easy
to overlook the importance of productivity.
National figures are often reported in the
media. They may seem to be ho-hum; there’s
nothing glamorous about them to get our
attention. But make no mistake; they are key
economic indicators—barometer, if you will,
that affect everybody. How? High productivity
and high standard of living go hand-in-hand. If
a country becomes more service-based, as the
United States has become, some (but not all)
high-productivity manufacturing jobs are
replaced by lower-productivity service jobs.
That makes it more difficult to support a high
standard of living.

Productivity levels are also important for
industries and companies. For companies, a
higher productivity relative to their
competitors gives them a competitive
advantage in the marketplace. With a higher
productivity, they can afford to undercut
competitors’ prices to gain market share, or
charge the same prices but realized greater
profits? For an industry, higher relative
productivity means it is less likely to be
supplanted by foreign industry.
1. Why is high productivity important for a
2. Why do you suppose that service jobs have
lower productivity than manufacturing jobs?
3. How can a company gain a competitive
advantage by having higher productivity than
its competitors have?

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