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Boards, Incentives, and CSR

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However, even after adoption these measures, often businesses are unable to compete: • • • Often competing businesses may offshore production to places such as China, where the labour cost is very cheap. Rivals may be able to increase productivity at an even faster rate, than the business, through a combination of technology and cheap labour. Rival might also enhance the quality of the product while at the same time increasing the productivity of the business. LABOUR TURNOVER ???????????????????????? ???????????????????????????????? = ???????????????????????? ???????? ???????????????????? ???????????????????????????? (???????????????? ???? ???????????????????????? ???????? ????????????????) × 100 ???????????????????????????? ???????????????????????? ???????? ???????????????????? ???????? ???????????????? ???????? ???????????????? (???????????????? ???? ???????????????????????? ???????? ????????????????) Labour turnover can be caused by a variety of reasons.

Overall, increasing the motivation of workers by giving them more power or authority is also a great way to increase productivity, as they can highlight the main problems with the production process and can therefore come up with a better solution. High labour productivity will drive the costs of the business down and hence the business can sell cheaper products to gain greater sales or keep prices the same and get more profit – depending on the elasticity of the product. However, even after adoption these measures, often businesses are unable to compete: • • • Often competing businesses may offshore production to places such as China, where the labour cost is very cheap.

BUSINESS INTEGRATION 3. EFFECTS OF GROWTH ON A BUSINESS AND THE ANSOFF MATRIX TYPES OF GROWTH Growth is of two types: organic and inorganic growth. Organic growth is when the business expands by setting up new outlets, factories or offices (service). Inorganic methods of growth involve combining with or taking over other businesses which happens in the form of takeovers or mergers. QUAZI NAFIUL ISLAM ORGANIC GROWTH • • • Slow growth through internal expansion and the increase of sales. Safer than inorganic growth as culture clashes are avoided.

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