All companies have their own level of labor productivity. Changing this level over time shows performance dynamics. Under the influence of various factors, the dynamics can change in a positive or negative direction. However, there is no doubt that the development of production occurs with an increase in productivity (Martini and Suardana, 2019). As a result of labor activity, goods and services are produced that are characterized, firstly, by production costs, or prime cost and secondly, by market value. The ratio of these two values for each type of goods and services, multiplied by their volume, determines the profitability and profitability of production. The effectiveness of production can also be measured by comparing its volume with the value of the fixed production assets of the enterprise engaged in the production of this product.
In 2018, the company had a strong performance with many sales in different countries around the world. The main buyers were the Philippines, Australia, and India. At the same time, the main income was brought by Australia, and despite high sales, the Philippines is considered a loss-making country. In some cases, the Philippines shows a negative income, which could have a deplorable impact on the company’s budget. Relatively larger losses in 2018 led to a decrease in the company’s productivity in 2019. Productivity is considered the main indicator of the entire system of labor indicators in the organization. The main purpose of the analysis of labor productivity is to identify the reserves of its growth and improve the management of production and economic activities.
In 2019, the main countries for the company’s supplies were Asian countries. At the same time, Australia, profitable in 2018, brought a negative loss. The most profitable countries were Nepal and Vietnam, with the largest number of post-bets. Malaysia was generating relatively high profits, despite the small number of deliveries. 2020 was the most unprofitable year for the company, which is possibly due to the covid pandemic. There was a large number of shipments to China, while the country was one of the most unprofitable. Additionally, the largest negative returns can be seen in Vietnam. Australia again began to generate sufficient income and became the first in terms of profit. In 2021, the company’s income leveled off and began to bring fewer losses. The most profitable countries were China, Australia, and India. At the same time, countries such as Indonesia and the Philippines brought the least income to the company.
The significance of financial analysis is determined by the fact that its results are an indicator of the economic situation of the organization. Based on the analysis, management can make management decisions to improve the financial condition of the company and increase the efficiency of its business activities (Qorri et al., 2018). Thus, every year the smallest and even unprofitable profit of the company brings the third quarter. The first and fourth quarters are the main profitable time for the company, during which the largest sales are made. The second quarter is unstable and in different years is marked by a diametrically opposite amount of profit.
At the same time, when looking at quarterly earnings, Australia becomes the most important region, where the largest sales occur in the state of Victoria and South Australia. Moreover, it is important to note that on a quarterly basis, one of the profitable countries is India. In such cases, the Philippines and Nepal can be considered unprofitable for the company. Instability can be noted in Indonesia, where the company has a high and negative profit in the first quarter.
The lowest sales but higher profits are brought to the company by such states as Western and South Australia. Moreover, a good income with minimal cost can be noted in Queensland, Australia. In some cases, Myanmar shows sufficient profit with small sales. The concept of “productivity” in the modern economy is applicable not only in relation to the labor resource involved in production activities. Based on the provisions of modern economic theory, there are four factors of production: land, capital, labor, and entrepreneurship. Thus, this combination ensures the production of products, and therefore it is possible to talk about the productivity of each of these four factors.
The introduction of the achievements of science and technology into an enterprise is one of the ways to effectively increase labor productivity. Thanks to scientific and technological progress, it has become possible to introduce modern equipment and technologies into production, use alternative energy sources, and apply the latest technologies and tools in production (Daryanto et al., 2019). The inclusion of scientific and technological progress in the activities of the organization allows you to minimize costs, speed up the production process, and also make the product more competitive.
Customer segmentation is a process when an organization divides customers into groups according to certain criteria: gender, age, location, interests, activity on our website, and the number of purchases made. The company sells products to the entire database but can make separate offers for each segment (Bi et al., 2019). A group of customers will receive an offer that covers their needs, and the company will be able to increase profits. The consumer market is heterogeneous. It includes people who react differently to the product due to their differences in age, lifestyle, and income level. For example, low cost is more important for some customers, quality is more important for others, and functionality is for others. It is important to determine the possible number of segments even before the start of active communications with customers.
Further, in the course of mastering the market, it is possible and necessary to make changes to the initial division, however, the complete absence of segmentation will not allow you to establish effective promotion and sales of the product. In each region, technology and Office Supplies bring in the most profit. This is probably due to the increase in the market for technology and the needs of the buyer in technology. Unprofitable in most cases is the supply of furniture, which means that the company needs to consider the relevance of this segment.
Along with this, the personal income of the entrepreneur increases. As a result, productivity refers to the efficiency of using various resources, such as energy, material, labor, or information, that are employed in production – supply of services or any goods. This economic category reflects the relationship between the quantity and quality of goods produced or services rendered and the resources that were spent on their production. Productivity makes it possible to compare the volumes of output and services rendered at different levels of the economic system.
Reference List
Bi, J. W., Liu, Y., Fan, Z. P. and Zhang, J. (2019) ‘Wisdom of crowds: Conducting importance-performance analysis (IPA) through online reviews’, Tourism Management, 70, pp. 460-478.
Daryanto, W. M., Dzikro, S. I. and Fitri, D. N. (2019) ‘Financial performance analysis of conventional taxi in Indonesia: Before and after the emergence of ride-hailing company’, South East Asia Journal of Contemporary Business, Economics and Law, 19(1), pp. 13-21.
Martini, L. K. B., & Suardana, I. B. R. (2019) ‘Company performance measurement applying balanced scorecard approach’, International Journal of Social Sciences and Humanities, 3(1), pp. 7-13.
Qorri, A., Mujkić, Z., Gashi, S. and Kraslawski, A. (2018) ‘Green supply chain management practices and company performance: A meta-analysis approach’, Procedia Manufacturing, 17, pp. 317-325.