Businesses set to vie for north top awards

The 1998 Highlands and Islands Business Awards are open to firms large and small, offering the chance of winning fame and fortune.

Hundreds of companies have taken part over the years in the awards, which this year are co-sponsored by the Highlands and Islands office to accountants Ernst and Young, the Press and Journal and, new sponsors for 1998, HIE Ventures Ltd.

Reflecting the diversityof the area's businesses, they offer four catego­ries:

Larger business, smaller business, tourism and the most promisingnew­comer — and an overall prize of Highlands and Islands Business of the Year.

The larger business category is open to businesses operating with an annual turnoverexceeding £1 500,000 or more than 20 employees.

The winner will receive the Ernst and Young Acorn Award, designed by Caithness Glass, a parchment scroll, cover plaqueand publicity from Press and Journal, and another prize to be announced.

Firms with an annual turnover of up to £1 500,000 or up to 20 employ­ees can enter the smaller business category. The winner will receive another original Ernst and Young Acorn Award, similar recognition from Press and Journal and another prize to be announced.

The Highlands and Islands Tourism Award will go to businesses, regard­lessof size, operating in the area's vital tourism market.

The criteria, in addition to the basic of a good and potentially enduring business, will include quality of product or services and success in identi­fying, meeting the needs and attracting target markets. The winner will receive the Ernst and Young Acorn Award, Press and Journal publicity and a prize to be announced.

The judges will assess answers to the questions listed on the entry form to help them establish how well each business plans for the future, designs its products or services, monitors its performance and addresses its mar­ket.

All responses will be helpful in judging the potential of each firm for sustained development as a contributorof the economy of the Highlands and Islands.

Interested firms can pick up entry forms at Ernst and Young's Inverness office in Moray House, bank Street, or from the Press and Journal offices in Academy Street, Inverness. More details can be obtained by calling (01343) 237581.

The 1998 Highlands and Islands Business Awards will be presented at the Awards Luncheon to be held at Eden Court Theatre, Inverness, on a date to be announced.

Vocabulary

to vie – соперничать

award – присуждение (награды, премии); премия

to win fame and fortune – завоевать славу и богатство

diversity– разнообразие

promising– подающий надежды

annual– ежегодный

turnover – оборотный капитал

parchment scroll– пергаментный свиток

cover plaque – почетный знак

regardless – не взирая на

contributor – содействующий, помощник

Exercise 9: Work with a partner. Recollect the sentences where the following words and phrases were mentioned. One phrase wasn't given in the article at all.

1) to win fame and fortune; 2) Islands office of accountants; 3) four categories; 4) an annual turnover exceeding £1 500,000; 5) publicity from the Press and Journal; 6) regardless of size; 7) quality of product or services; 8) retail sector; 9) to monitor performance; 10) a contributor to the economy of the Highlands and Islands; 11) Eden Court Theatre.

UNIT 5: COMPETITION

Everybody thinks that you are a success in business: your firm has a profit, people work as a good team and you run the company well. Nothing to worry about? Just the other way round! The more successful you are, the more concerned you are. Your trouble consists of 11 letters - C-0-M-P-E-T-I-T-I-O-N.

Text 1: Now read the text which will help you to understand the world of competition better. Say what is the most widely-spread type of it.

The competitive environment affectsthe number and types of competi­tors the marketing manager must face— and how they may behave. Al­though marketing managers usually can't control these factors, they can choose strategies and avoid head-oncompetition. And, where the compe­tition is inevitable, they can plan for it.

Economists describe four basic kinds of market (competitive) situations: purecompetition, oligopoly, monopolistic competition, and monopoly. Understanding the differences among these market situations is helpful.

In monopolistic competition, a number of different firms offer market­ing mixes that at least some customers see as different. Each competitor tries to get control (a monopoly) in its "own" target market. But competi­tion still exists because some customers see the various alternatives as sub­stitutes. A subset of these firms may even compete head-on for the same customers with similar marketing mixes. With monopolistic competition, each firm has its own down-sloping demand curve. But the shape of the demand curve — and elasticity of demand — depends on how similar com­petitors' products and marketing mixes are. Most marketing managers in developed economies face monopolistic competition.

In monopolistic competition, marketing managers sometimes try to differentiate very similar products by relying on other elements of the marketing mix. For example, Clorox Bleach uses the same basic chemicals as other bleaches. But marketing managers for Clorox may help to set it apart from other bleaches by offering an improved pouring spout, by producing ads that demonstrate its stain-killing power, or by getting it better shelf positions in supermarkets. Yet such approaches may not work, especially if competitors can easily imitate the new ideas. Efforts to promote real — but subtle— differences may not do any good either. If potential custom­ers view the different offerings as essentially similar, the market will be­come more and more competitive — and firms will have to rely on lower costs to obtain a competitive advantage.

The economist's traditional view is that most product-markets head toward pure competition — or oligopoly — over the long-run. In these sit­uations, a marketing manager competes for customers against competitors who are offering very similar products. Because customers see the differ­ent available products (marketing mixes) as close substitutes, competing firms must compete with lower and lower prices, especially in pure com­petition where there are likely to be large numbers of competitors. Profit margins shrinkuntil they are just high enough to keep the most efficient firms in business. Avoiding pure competition is sensible— and certainly fits with our emphasis on target marketing.

Effective target marketing is fundamentally different than effective de­cision making in other areas of business. Accounting, production, and fi­nancial managers for competing firms can learn about and use the same standardized approaches — and they will work well in each case. By con­trast, marketing managers can't just learn about and adopt the same "good" marketing strategy being used by other firms. That just leads to head-on competition — and a downwardspiral in prices and profits. So target mar­keters try to offer customers a marketing mix better suited to their needs than competitors' offerings.

Most marketing managers would like to have such a strong marketing mix that customers see it as uniquelyable to meet their needs. This com­petition-free ideal guides the search for breakthroughopportunities. Yet monopoly situations, in which one firm completely controls a broad prod­uct-market, are rare in market-directed economies. Further, governments commonly regulate monopolies. For example, in most parts of the world prices set by utility companies must be approvedby a government agency. Although most marketing managers can't expect to operate with complete control in an unregulated monopoly, they can move away from head-on competition.

Vocabulary

environment – окружение; окружающая обстановка/среда

to affect– действовать, воздействовать, влиять

to face – сталкиваться

to avoid– избегать

head-on – будущий, предстоящий

inevitable – неизбежный

pure – чистый

substitute– замена; заменитель

down-sloping – опускающийся

demand-curve – кривая спроса

bleach – отбеливающее вещество

pouring spout – горлышко, отверстие

stain– пятно

subtle– тонкий, неуловимый

margin – прибыль

to shrink – сокращать(ся)

sensible– (благо)разумный, здравомыслящий

downward – спускающийся

uniquely– единственно

breakthrough – прорыв

to approve – одобрять; утверждать

Exercise 1: Match the ends (below) of the sentences to their beginnings.

1. Most marketing managers in developed economies...

2. Efforts to promote subtle differences of the product...

3. If potential customers see different products as essentially similar...

4. In pure competition profit margins shrink until...

5. Marketing managers can't...

6. Governments usually...

7. There are four basic kinds of market situations…

A. pure competition, oligopoly, monopolistic competition and mono­poly.

B. regulate monopolies.

C. they are just high enough to keep the most efficient firms in busi­ness.

D. meet monopolistic competition.

E. may not do any good effect.

F. the marker will become more and more competitive.

G. take some marketing strategy being used by other firms.

Exercise 2: Give the Russian equivalents to the following words and phrases. Recollect the sentences of the text where they were used.

1) competitive environment, to affect; 2) to face; 3) to avoid competition; 4) cus­tomers; 5) inevitable; 6) pure; 7) substitute; 8) demand curve; 9) bleach; 10) pouring spout, stain-killing power, better shelf positions; 11) subtle; 12) margin, to shrink; 13) sensi­ble; 14) uniquely; 15) breakthrough; 16) to approve; 17) to operate, to move away from.

Exercise 3: Work with a partner. Find the synonyms in the Text 1 to the following words and phrases.

the world around you; to influence; to meet; to get rid of; invisible;to decrease; reasonable; suggestion; to work.

Exercise 4: Translate the conversation between Ann, director of a successful company and her acquaintance. What kind of competition did Ann face?

J. Привет! Не ожидал встретить тебя здесь! Прекрасно выглядишь! Слышал, что у тебя преуспевающая компания.

A. Это правда. Хотя налоги мы платим вовремя, прибыль у нас есть.

J. Значит, у тебя нет никаких проблем?

A. К сожалению, проблема есть и очень большая. Это конкуренция. Наша компания старалась избежать ее, но она неизбежна!

J. Правда? А я слышал о фирмах, которые полностью контролируют рынок.

A. Ты, наверное, говоришь о монополистической ситуацию Но это – редкость для рыночной экономики. Кром е того, государство полностью контролирует монополии. Например, во многих государствах цены компаний должны быть одобрены государственными учреждениями.

J. А с какой ситуацией столкнулась ты?

A. С чистой конкуренцией. Мы конкурируем с компаниями, которые предлагают подобный товар. Самой большой проблемой является то, что покупатели воспринимают различные товары как замену друг другу.

J. А можно найти какой-нибудь выход?

A. В общем, да. Например, понизить цену или найти какую-нибудь особенность, которая бы отличала наш товар от других. Но небольшие отличия не всегда помогают. Наши менеджеры по продажам как раз сейчас работают над этим.

J. Ну что ж, удачи тебе!

Text 2: From the first Text 1 you have learned about the basic kinds of com­petition. Now it is time to know how a marketing manager can avoid it. Hopefully you will use this information in your life.

Read the text and say what any marketing manager should know about potential competitors.

The best work for the marketing manager to avoid head-on competi­tion is to find new or better ways to satisfycustomers' needs. The search for a breakthrough opportunity — or some sort of competitive advantage — requires an understanding not only of customers but also of competi­tors. That's why marketing managers turn to competitor analysis — an or­ganized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies. A complete discussion of the possible approaches for competitor analysis is beyond the scope of the first marketing course. But we will briefly cover an approach that works well in many different market situations.

The basic idea is simple. You compare your current (or planned) target market and a marketing mix with what competitors are currently doing or are likely to do in response to your strategy. You also consider competitive barriers— the conditions that may make it difficult, or even impossible, for a firm to compete in a market. Such barriers may limit your own plans or, alternatively, block competitors' responses to an innovative strategy. For example, Nutra Sweet's soon-to-expire patent on its low-calorie sweeten­er effectively limited direct competitors from entering the market.

The initial step in competitor analysis is to identify potential competi­tors. It's useful to start broadly — and from the viewpoint of target cus­tomers. Companies may offer quite different products to meet the same needs, but they are competitors if customers see them as offering close substitutes. For example, Dow ZipLock bags, Reynold's aluminum foil, Sarah Wrap, and Tupperware containers compete in the same genetic mar­ket for food storageneeds. Identifying a broad set of potential competitors helps marketing managers understand the different ways customers are currently meeting needs and sometimes points to new opportunities.

Usually, however, marketing managers quickly narrow the focus of a com­petitor analysis to the set of rival firms who will be the closest competitors.

Even if no specific competitors can be identified, marketing managers must consider how long it might take for potential competitors to appear and what they might do. It's easy to make a mistake of assumingthat there won't be competition in the future — or of discounting how aggressive com­petition may become. But a successful strategy attracts others who are ea­ger to jump in for a share of the profit — even if profits only hold up for a short time. That is why it is important for firms to find opportunities where they can sustaina competitive advantage over the longer run.

Finding a sustainable competitive advantage requires special attention to competitor strengths and weaknesses. For example, it is very difficult to dislodgea competitor who is already a market leader simply by attacking with a strategy that has similar strengths. An established leadercan usually defend its position by quickly copying the best parts of what a new com­petitor is trying to do. On the other hand, an established competitor may not be able to defend quickly if it is attacked where it is weak. For exam­ple, Right Guard deodorant built its strong position with an aerosol spray dispenser. But many consumers don't like the messy aerosol cloud — or have become concerned about the effect of aerosols on the environment. That weakness provided Old Spice with a competitive opportunity for a deodorant in a pumpdispenser. Right Guard did not quickly fight back with its own pump. The company thought that promoting a pump could hurt sales of its established product — and might even help the competitor.

A marketing manager should actively seek information about current or potential competitors. Although most firms try to keep the specifics of their plans secret, much public information may be available. For example, many firms routinelymonitor competitors' local newspapers. In one such case, an article discussed a change in the competitor's sales organization. An alertmarketing manager realized that the change was made to strengthen the competitor's ability to take business from one of her firm's key target mar­kets. This early warning provided time to make adjustments. Other sources of competitor information include trade publications, alert sales reps, mid­dlemen, and other industry experts. In business markets, customers may be quick to explain what competing suppliers are offering.

The search for information about competitors sometimes raises ethical issues. For example, it's not unusual for people to change jobs and move to a competing firm in the same industry. Such people may have a great deal of information about the competitor, but is it ethical for them to use it? Similarly, some firms have been criticized for going too far — like wait­ing at a landfillfor competitors' trashto find copies of confidential com­pany reports.

Beyond the moral issues, stepping over the line of ethical behavior can prove to be very costly. Spying oncompetitors to obtain trade secrets is il­legal, and damage awardscan be huge. For example, the courts ordered Keebler Co., Nabisco Brands, and Frito-Lay to pay Procter & Gamble about $125 million in damages for stealing secrets about its Duncan Hines soft cookies. Nabisco had obtained Duncan Hines' recipe by entering a restrictedarea. Keebler has gone so far as to hire an airplane to take aerial photographs of a Duncan Hines manufacturing facility that was under con­struction. A Frito-Lay employee posed as a potential customer to attend a confidential sales presentation.

Vocabulary

to satisfy — удовлетворять

foil — фольга

wrap— обертка

food storage — хранение продуктов

to assume — предполагать, допускать

to discount — не принимать в расчет

to sustain — выносить; выдерживать

to dislodge— выгнать; сбивать

an established leader — признанный лидер

a dispenser — распылитель

pump— насос; насосный

routinely — постоянно

alert — бдительный; живой, проворный

to make adjustments — приспособиться

sales reps — репетиции продаж

middleman— посредник

ethical issue — этические вопросы

landfill— место закапывания мусора

trash— мусор

to spy on smb — шпионить за кем-либо

damage awards — штраф, компенсация за убытки

restricted— ограниченный, закрытый

to pose (as) — принимать вид, притворяться (кем-либо)

Exercise 5: Work with a partner to complete the sentences below with the following words.

to satisfy; to assume; to discount;

to sustain; to dislodge; an established leader;

to make adjustments; a middleman; to spy on smb

1. Don't_____________ the strengths of current and potential competi­tors!

2. All famous companies do their best to_____________ customers' needs.

3. The use of competitor analysis will help you to ______ a com­petitive situation.

4. A company which has already won a target market is an_______ ______ there.

5. Trade publications, alert sales reps and ______ are sources of competitor information.

6. If a marketing manager___________ that there won't be competi­tion in the future, he will make a big mistake.

7. A market situation changes very quickly, you should ______ according to it.

8. Frito-Lay decided to________ Procter & Gamble to obtain trade secrets.

9. It is very difficult to________ a market leader by attacking with a strategy that has similar strengths.

Exercise 6: Give the English equivalents to the following words and phrases.

удовлетворять потребности; признанный лидер; постоянно; приспособиться; посредник; предполагать; не принимать в расчет; компенсация за нанесенный ущерб; ограниченный; выдерживать.

Exercise 7: Explain your friend who is not too good at economics what
the following words and phrases mean.

+ competitor analysis

+ competitive barriers

+ an established leader

+ an alert marketing manager

+ damage awards