VII. Decide which of the alternatives (A-E) each speaker is talking about. You will have to use some alternatives more than once

A. trade dispute D.wage negotiations

B. merger negotiations E.bargaining tactic

C. customer-supplier negotiations

1. We agree that when the new company is formed, there will be no forced redundancies.

2. We’ve agreed to a rise of 2.5%, but the union also wants a minimum salary of ₤20,000.

3. If the US taxes our steel exports, we will increase the tax on goods from the US.

4. We start by asking for a very high price, then we negotiate down to a reasonable level.

5. If we order 10,000 units from you, what discount will you offer us?

6. The President of Energon will head the company and I have agreed to stay on as VIP.

7. The employers’ offer is a joke. Our members deserve at least 8% this year.

IX. Draw a line from each word on the left to a word on the right to make a word pair. (There is one word that you don’t have to use.) Then use your word pairs to complete the sentences below and translate them into Russian.

kick atmosphere

fallback ground

neutral priority

relaxed talk

negotiating off

small position

team

1. We will hold talks on _____________ so neither side has an advantage.

2. We’ll _____________ the discussion by setting out our needs.

3. Our ______________ is very experienced and fully understands the process.

4. We believe the talks will be held in a ____________ with no real arguments.

5. We start with ____________ over coffee, but then it gets serious.

6. We have asked for 10%, but we do have a ____________if that is turned down.

X. After one of the negotiations draw up a contract according to the pattern and sign it.

Contract No __________

For ___________ products (in bulk/wholesale)

Bryansk __________ Date________________

The contract is made between _________________hereinafter called “Sellers” and ____________hereinafter called “Buyers”, whereby it is agreed as follows:

1. SUBJECT OF THE CONTRACT

Sellers have sold and Buyers have bought_____________________________

2. QUALITY

The goods sold under the present contract shall be of the following specification:______________________________________________________

_________________________________________________________________

3. PRICE

_______________________________________________________________

4. TIME OF DELIVERY

The goods sold under the present contract are to be delivered by Sellers and accepted by Buyers__________________________________________________

5. PAYMENT

_______________________________________________________________

The rate of exchange of U. S. into ____________________________________

_______________________________________________________________

JURIDICAL ADDRESSES

Sellers: _________________________________________________________

Buyers: ________________________________________________________

SELLERS BUYERS

(Signatures) (Signatures)

UNIT X

FRANCHISING

I. Practice the pronunciation of the following words:

franchising [ ], franchiser [ ], franchisee [ ], advantage [ ], reputation [ ], franchise [ ], calculate [ ], annual [ ], turnover [ ], manual [ ], Europe [ ], France [ ], invasion [ ], licence [ ], joint venture [ ], throughout [ ], Paris [ ].

II. Translate the following words and word combinations into Russian and learn them by heart:

- to take advantage of smth - operations manual

- to be (under)developed in franchising - annual turnover

- to make retail sales through franchising - a boom

- to achieve international development - cross-border franchising

- to be well established in… - to grant master licences

- to form a joint venture - local market expertise

- to be on the up and up - to lead way in franchising in

- to put up capital Europe

- franchising - advertising fee
- franchiser - to bring franchising to a wider

- franchisee public

III. Read and translate the text.

FRANCHISING

Franchising can be defined as a business system in which a company
(or franchiser) sells an individual (or franchisee) the right to operate a business using the franchisor’s established system or format. The franchisee is thus able to take advantage of the franchiser's brand names, reputation and experience. As part of the contract (or franchise agreement) the franchisee pays an initial sum of money, known as a franchise (or front end) fee, to the franchiser and, in addition, agrees to pay a management services fee (royalty), which is usually calculated as a percentage of the annual turnover. In certain cases the franchisee may also pay an advertising
fee to contribute to the franchisor's annual advertising and marketing costs. It is important to realize that the franchisee also has to put up the necessary capital to open and manage the business. Once the contract has been agreed, the franchiser provides an operations manual, which is a document containing all the information that the franchisee requires in order to run his or her business.

Massive growth in franchising across Europe is forecast over the next few years as trade barriers, which used to obstruct business activity, disappear. Something of a boom is predicted by a number of companies who are preparing an onslaught on European markets, which are still relatively underdeveloped in franchising.

France and Britain are the most franchised-developed countries, but even in these two only 10 percent of retail sales are made through franchised outlets.

The most optimistic projections suggest that by the end of this decade
as much as half of all sales in Europe will come through franchised outlets.
American companies especially see Europe as a happy hunting ground and are using Britain with its common language as the launch pad for European expansion.

Names like McDonald’s, Burger King, Kentucky Fried Chicken and, more recently, Domino's Pizza have already blazed trails across Europe.
From now on it is likely to be US retailing and service companies that will make up the invasion force.

‘We know of a number of US operators looking to use the UK as a foothold for moving into Europe’, says Stuart Brown a consultant with Hayward Franchising Services. ‘We expect considerable growth in cross-border franchising as a means of achieving international development. In most cases, companies need a local partner who knows the market place. Hence the expansion through master licences of franchising. Joint ventures are the name of the game’.

In retailing, Body Shop has led the way in franchising in Europe. Having opened its first shop in Belgium in 1988 it now has more than 250 outlets in mainland Europe, from Finland to Portugal. Chairman Anita Roddick and her vision of local partnerships in other countries has made Body Shop one of the greatest retail successes since the war.

Benetton of Italy used the method of granting master licences to similar
effect and another Italian casual clothing company Stefanel, is using franchising to move into eastern European countries such as the Czech Republic, Hungary, and others.

Local market expertise is essential for best financial returns. There may
be no boundaries in Europe any more, but cultures remain very different. It is no use saying: what's good enough for the British is good enough for the French. You have to understand local culture that is why franchising to local businessmen is the best way to expand.

The range of franchise opportunities is now myriad. Retailing used to
be the main cross-border growth area and names like Mothercare, Evans (part of the Burton Group) and even Marks and Spenser are taking the franchise route to Europe. Now come service companies, whether it be office cleaning, car tuning, computer technology, picture framing, hairdressing or legal services. One already making a move is a ServiceMaster, the US-based cleaning operator. It is now well established in the UK and has moved into Germany, from where it is expecting to
expand into other countries.

To bring franchising to a wider public an increasing number of exhibitions are being held. The Blenheim Group is responsible for a number of these shows and their spokesman Cheryl Wallis says: ‘Cross-border franchising is on the up and up now that trade restrictions are disappearing. Our Paris show was particularly well received. We had 22,000 visitors and 170 exhibitors, 12 per cent of whom were from outside France’. A number of French companies are poised to invade the UK via the franchise route. Cross-border franchising is definitely the name of the game from now on.