In early 2011, United Communications, a U.S.–based international telephone communications company, purchased the controlling interest in Bucharest Telecom Ltd. (BTL) in Romania. A key productivity measure monitored by United is the number of customer telephone lines per employee. Consider the following data for United. 

1. What are United’s 2010 productivity and 2011 productivity without BTL? 

2. What are BTL’s 2011 productivity and United’s 2011 productivity with BTL? 

3. What difficulties do you foresee if United brings BTL’s productivity in line?

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2011 without BTL 2011 with BTL 2010 Customer lines Employees Lines per employee 19,994,000 14,615,000 72,350 202 15,054,000 74,520 114,590 202 174