Cannel Ltd manufactures soaps, shampoos and other complimentary toiletries that are available in hotel bathrooms. The company operates two factories with a workforce of 380 and labour costs are 47 per cent of its total costs. The company is relatively small, and selling throughout Europe, faces intense price competition from larger rivals. Recently, the company has had to reduce its prices to retain some major customers. Profitability has declined in recent years - last year, it fell by 14.5 per cent. The company has a highly skilled workforce although its labour turnover figure rose to 23.4 per cent last year from 14.9 per cent the previous year. 

With reference to the above scenario, you are required to answer the following questions: (a) 'The labour turnover figure rose to 23.4 per cent.' What might have been the reasons behind this rise

Answer rating: 100% (QA)

The rise in labor turnover could be attributed to several reasons 1 Intense price competition The scenario mentions that the company faces intense pri... View the full answer