In early 20X1, SpaceTel Communications, a U.S.-based international telephone communications company, purchased the controlling interest in Sofia Telecom, Ltd. (STL) in Bulgaria. A key productivity measure monitored by SpaceTel is the number of customer telephone lines per employee. Consider the following data for SpaceTel:

1. What are SpaceTel’s 20X0 productivity and 20X1 productivity without STL?

2. What are STL’s 20X1 productivity and SpaceTel’s 20X1 productivity with STL?

3. What difficulties do you foresee if SpaceTel brings STL’s productivity in line?

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20X1 without STL 20X1 with STL 20X0 21,460,00 Customer lines Employees Lines per employee 15,370,000 72.500 212 14,787,000 69,750 212 116,000 18S