A business can boost its productivity through capital investments, such as buying new equipment. Use this video and discussion guide to help explain the concept of productivity to your students.
Discussion guide
After you’ve watched the video with your students, use this guide to explore key concepts, check for comprehension and lead a discussion.
Key concepts
- Increasing productivity means companies can grow their business without necessarily needing extra workers.
- Capital investments are purchases of machines, tools or buildings that help a company make more money in the future.
- Significant investments in productivity can help companies be more competitive and open new markets for their business.
Comprehension check
Ask the following questions.
How does investing in better or more advanced equipment increase productivity for a snow company?
Capital investments can increase a company’s productivity. For a snow removal company, investing in more advanced snow blowers or extra snowplows would help the company clear more snow. This would increase productivity and the money it earns in revenues.
What are some considerations that go into making a capital investment in equipment?
- Durability and quality: investing in well-made tools or machines can help make sure that equipment rarely breaks down and keep a company’s operations running efficiently.
- Costs and benefits: new equipment can allow workers to do more in less time or create opportunities to increase a company’s profits.
Group discussion
- Provide an example of how investing in new equipment (e.g., a bike, books or software) helped boost your own productivity.
- Think of a company or organization that has improved its productivity. What do you think it did to increase productivity?
- How can a company overcome challenges, such as limited amounts of time and money, to make investments in productivity?
- Is more productivity always better? What are some trade-offs that companies might face when using machines to increase productivity?
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