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

20X1 without WTL 20X1 with WTL 20X0

Customer lines 16,420,800 19,365,710 15,988,500

Employees 74,640 114,550 72,675

Lines per employee 220 169 220

1. What are Global's 20X0 productivity and 20X1 productivity without WTL?

2. What are WTL's 20X1 productivity and Global's 20X1 productivity with WTL?

3. What difficulties do you foresee if Global brings WTL's productivity inline?