ACTIVITY 5

1. A company that processes fruits and vegetables is able to produce 400 cases of canned peaches
in one- half hour with four workers. What is the labor productivity?

Answer: Labor productivity = Quality Produced / Labors Hours

= 400 cases (4 workers x 1/2 hours / workers)
= 200 cases per labor hour
2. A wrapping-paper company produced 200,000 rolls of paper one day. Labor cost was
P16,000, material cost was 50,000, and overhead was P32,000. Determine the
multifactor productivity.
Multifactor productivity = Quality produced at standard price/(Labor cost +
Material cost + Overhead)
= 200,000/( P16,000+P50,000+ P32,000)
= P2.04
3. List the key ways that organizations compete.

While organizations can compete in an infinite number of ways, they can be divided into three
basic competitive strategies:

Price monopoly. The organization invests in operational processes, economies of scale, and
other optimizations that provide them with a supply chain advantage, allowing them to offer a
lower price while still profiting. Dell, WalMart, and McDonald's are three companies that have
benefited from a price leadership advantage.

Product Leadership. The organization invests in innovation, research and development, design,
and branding in order to create a product that is unique and valuable in the eyes of consumers,
allowing them to extract more value. Porsche, Apple, and Louis Vuitton are examples of
companies that use this competitive strategy.

Customer Retention. The organization invests in people and customer service, personalization,
or ways to tailor the service to the specific needs of customers, frequently focusing on a niche.
This enables them to provide a more relevant, personalized service, resulting in customer
preference. Ritz Carlton hotels are examples of companies that pursue customer intimacy.
4. Select two stores you shop at, and describe how they compete.
Two fast-food chains have been in the business for a long time and are still known to be
competitors. Today, there is a debate over which food chain is superior, whether it’s
Jollibee or Mc Donald’s. Here are some areas that the two fast-food chains compete:

Product - Jollibee and McDonald's both have menu items that are similar. Fried chicken,
hamburgers, and fries are just a few examples. Although their menus are similar, they
each have some items that the other does not have. Jollibee, for example, has items on
their menu that are not in Mc Donald's. One of the few items missing from McDonald's
is Jollibee's famous sandwich, the Jolly Hotdog. Others are lumpiang shanghai and arroz
caldo. Mc Donald's, on the other hand, also has items on their menu that Jollibee does
not have. McDonald's offers the famous McNuggets, which Jollibee does not. Other
options would be twister fries, hashbrowns, and a fish fillet burger. When it comes to
the items on their menu, we can see that there are minor differences between the two.

Taste – However, in an article Tamantiong stated that while McDonald's benefited from
economies of scale and decades of experience, hey identified one major area in which
the U.S. giant could not compete: Taste. Filipinos, he said, prefer sweeter and spicier
flavors, and it would be difficult for McDonald's to adapt without hurting the iconic
American taste for which they had become famous.

Service - Jollibee and McDonald's provide services that are appealing to their customers,
particularly children. Both food chains have programs where they cater children's
birthday parties. McDonald's has a McDonald's Children's Party, and Jollibee has a Jolly
Kiddie Party. Both of them want your child's birthday party to be fun, enjoyable, and
memorable. Both restaurants offer kid-friendly meals. McDonald's has the Happy Meal,
while Jollibee has the Jolly Kiddie Meal. Both of them want to help the kids finish their
food while also having fun with the toys that come with the meals. Both food chains
ensure the happiness and satisfaction of the children.

Price - Each meal is reasonably priced and comes in a variety of sizes. Both are bidget-
friendly aimed primarily at students and families. Jollibee, on the other hand, comes out
on top in terms of affordability. Perhaps because McDonald's is a foreign corporation? Is
this why their prices are higher and more expensive than Jollibee's? Their price
differences, however, are not far apart. In the Philippines, for example, a single piece of
chicken joy with rice and a drink costs Php 99, whereas the same item at McDonald’s
costs Php 122, both in delivery.
5. Why is productivity important?
When implemented in a business setting, the productivity benefits are obvious and
widely felt. Companies, for example, see an increase in profitability when the cost of
producing their goods and services falls. When workers become more efficient, they
require less labor to produce the same amount of goods. Aside from that, it has the
potential to reduce operational costs, optimize resources, and reduce employee
burnout. In addition, productivity results to improvement of customer service. When
customers are given more time and attention, one of the external benefits occurs.
Systems run more smoothly, and the customer feels the benefit. Of course, when the
customer benefits, so does the company, because happy customers lead to happy
managers and shareholders.