A plant in Chicago has started producing new machines Model 35. The machines are of high quality and meet the requirements of the customers.
Many foreign companies are interested in buying this model and the management of the plant has already received a lot of orders for it. For example, they have got a letter from the company “Brumes and Sons”. This company would like to buy 15 machines from the company in Chicago. The company in Chicago is also interested in selling their machines to “Machines and Tools” and would like to invite Mr. Hertz, the manager of the company, to come to Chicago to have talks.
Now the two companies are going to discuss the terms of delivery and sign a contract.
Ø 2) Say whether the statements are true or false:
a)A new machine model is produced at a plant in Chicago,
b)This model has become very popular in the country,
c)The plant in Chicago, producing the new model, receives a lot of orders for it,
d)The manager of the company in Chicago is going to the company “Machines & Tools” for talks.
Ø 3) Which of these statements may be included into the text?
a)The market is short of such kind of machines.
b)The management is considering what company should be given the priority.
c)The market abounds in fresh food and vegetables.
d)They settled the date of the meeting.
e)Mr. Lyder, the Deputy Director, will head the delegation.
Business with Italy
Ø 1) Look at the phrases from the text:come to Russia on business, both for Russian and Italian business, that is why, to sign a contract, according to the contract, in six months, are interested in. What do they mean?
Ø 2) Read the text and answer the questions:
a)How often does Mr. Lorento come to Russia?
b)Why does he visit Russia so often?
c)What will the Italians deliver to Russia?
d)What will the Russian company deliver to Italy?
Mr. Lorento is an Italian businessman. His company has good business contacts with Russian companies, so he often comes to Russia on business. He has already been to Saint Petersburg four times. Mr. Lorento thinks that trade with Russia is very important both for Russian and Italian business. That is why they try to understand each other.
The partners want to develop their trade relations. They have just signed a new contract. According to this contract, the Italians will deliver shoes to Saint Petersburg, and the Russian company will deliver some machines to Italy. Now they are discussing the details of the contract. The first goods will come to St. Petersburg in six months. The Italians are very interested in new machines from Russia. They are planning to use them in their production at the end of the year.
Ø 3) Correct the given outline of the text:
a) An Italian company is interested in getting machines from Russia very much.
b) There have already been some business contacts between the two countries.
c) An Italian businessman, Mr. Lorento, thinks that his company will benefit from the trade with Russia.
d) Now the partners are in the process of talks.
4.4 “Europa Marketing”
Ø 1) Read the text and decide what heading, from the given below, would you use instead of “EUROPA MARKETING?”
a)THE CONSULTANCY COMPANY.
b)THE SALES DIRECTOR’S ASSISTANT.
c)AMBITIOUS PLANS.
d)WISH TO REALIZE THE PERSONALITY POTENTIAL.
“Europa Marketing” is a marketing and public relations company and they do consultancy work for companies operating in Great Britain and European Markets. The clients of the company come from different countries. The employees contact them by post, but most of them come to the company’s office at least once during a project.
Ann assists the Sales Director in arranging these visits, setting up meetings and presentations and works with mail. She can do her work very well and her boss is very pleased with the results of her work.
The company has a good reputation but Ann feels that her work is rather boring. She thinks that this job is a secretary’s duty. She wants to travel, to use the foreign languages she knows. That is why she wants to work for another company. She has already sent her resume to one company and is waiting for the answer now.
Ø 2) Make up an outline of the text in writing.
Mr. Brown’s Firm
Ø 1) Read the text and choose the most suitable heading, from the given below, instead of “Mr. Brown’s Firm”:
a)THE PROSPEROUS FIRM.
b)A TELEPHONE TALK.
c)THE DIRECTOR OF THE FIRM.
d)FUTURE TALKS.
Mr. Brown is the director of a firm. He works for a very big company. They sell different goods to very many countries. They export about 30% of the products. Mr. Brown’s firm does business with French and British companies.
Many customers come to the firm to discuss business with the engineers of the firm. They usually discuss prices, terms of payment and delivery. The customers are pleased with the quality of the products. The firm can guarantee delivery of their goods within seven days.
Now Mr. Brown is in his office. He is sitting at the table and speaking on the phone with Mr. Bell, the director of the joint stock company “Bell.” They are making an appointment for Friday. The company “Bell” is interested in a new model of the firm’s product range. Mr. Bell would like to have some catalogues and get some information on the product.
Ø 2) Which of the suggested statements may be included into the text?
a)With the use of the updated methods of management they improved the quality of their goods.
b)They are thinking of making business contacts with the Russian Federation because of the vastness of the Russian market.
c)It takes months to deliver goods.
d)He wants to look them through.
Ø 3) Translate the text into Russian in writing.
The BP Group
Ø 1) Look at the phrases taken from the text: they focused on, oil refining process, a fall in oil prices, a decrease in profits, an increase in production, did their best. What do they mean?
Ø 2) Answer the questions:
a)What did the BP Group focus on in 2009?
b)What are the spheres of activity of the company?
c)What methods helped the company to survive?
2009 was the year of success and achievement for the BP Group. They focused on the main businesses and developed their strategic base. The BP Group combines different spheres of activity: from oil refining process to chemicals production.
A fall in oil prices led to a decrease in profits, but there was an increase in oil and gas production. The management of the company did their best to save the situation. The performance of each division was analyzed. Investments in more profitable businesses resulted in their further growth.
Now the Director of the BP Group is sure that major difficulties are behind and the company will be a success in the future.
Ø 3) Decide what heading, from the given below, would you choose instead of “THE BP GROUP”?
a)IN SPITE OF THE WORLD ECONOMIC CRISIS
b)THE YEAR OF SUCCESS
c)THE MANAGEMENT ROLE IN SAVING THE SITUATION
d)THE CRISIS AHEAD
Ø 4) Translate the text into Russian in writing.
The Founder of IBM
Ø 1) Decide what heading, from the given below, would you choose instead of “THE FOUNDER OF IBM”:
a)DECISION MAKING PROCESS
b)DEPRESSION OF THE 1930S
c)HISTORY OF IBM
d)PRESIDENT OF IBM
Thomas J. Watson Senior began his business career as a salesman and later, when he became President of IBM, he used his sales techniques in the company.
When Watson started working for the company in 1914, IBM took a leading position in the information-processing industry. Under his management, IBM employees got good salaries and good pensions. But he demanded long hours’ work and enthusiasm.
Up to the 1950, IBM never sold machines. They just rented them to their clients. It helped the company during the Depression of the 1930s. He made almost all decisions himself. There was no management training school in his days. He liked to give advice: “Be careful with people. Don’t say bad words, and don’t wear a white shirt.”
Ø 2) Name the statements which are true:
a)Thomas J.Watson was President of IBM.
b)He began his career as a Sales Director’s secretary.
c)He started working for IBM in 1920.
d)He demanded from employees to work much and be enthusiastic about what they do.
e)His policy of renting machines to the customers helped IBM during the 1930s.
f)The Depression in the USA was in the 1930s.
g)He was fond of saying, “Be friendly with people. Always praise them and wear a white shirt.”
Ø 3) Make up an outline of the text in writing.
4.8 LARGO FOODS INVESTS $4M IN NEW PRODUCTION LINE
Ø 1) Look at the heading and the words from the text and say what it is about:food manufacturer, a new production line, a daughter company, turnover, to employ, higher quality product, to test.
Ø 2) Look through the text and find:
a)the names of the companies,
b)the cost of a new production line at the main company,
c)largo’s turnover,
d)the number of employed people at Largo,
e)largo’s after-tax profits.
Snack food manufacturer Largo Foods has invested almost $4m in a new production line which will enable the company to double its production levels and boost its profits.
Resulting from the new production facilities, sales at Largo and its daughter company Potato Cuisine are expected almost to double next year.
Largo’s turnover is $20m but the company, which employs 240 people, had been unable to expand further as capacity was limited. The new $3.9m line will increase its turnover and will result in a higher quality product with a lower cost base. Largo’s after-tax profits are thought to be about $1.6m.
The company is currently testing a new snack and is working with a partner to develop the machinery needed to produce the new range. “Nobody else is doing this, we are leading the market,” Managing Director said.
Ø 3) Answer the questions:
a)How will the new production facilities affect the sales at Largo and its daughter company?
b)What will be other benefits from the new production facilities?
c)What is the company doing now?
Ø 4) Read and translate the text into Russian in writing.
BUSINESS ORGANIZATIONS
Ø 1) What business organizations do you know? Do you work in one of them, by any chance? What kind of business organization is it?
Ø 2) The writer uses the following words and word combinations in the text: proprietorship, partnership, limited liability partnership, accountant, lawyer, corporation, unlimited lifetime, stock, to own, a legal entity, responsible for, profits, shareholder. What do they mean?
Businesses are structured to meet different needs. One basic difference involves who is responsible for the business. Another involves how long the organization can stay in business. The following is a report about ways that businesses are organized under United States tax law.
The simplest form of business is called an individual proprietorship. The proprietor owns all the property of the business and is responsible for it. This means the proprietor receives all the profits. But this also means that the proprietor is responsible for all the debts of the business. Also, any legal action against an individual proprietorship is taken against the owner. The law recognizes no difference between the owner and the business.
Most small businesses in the United States are individual proprietorships. There are more than twelve-million of them. United States tax law has simpler reporting requirements for these kinds of businesses. One person may be able to complete all the tax documents required.
Another kind of business is the partnership. Two or more people go into business together. An agreement is usually needed to state how much of the partnership each person controls. They can end the partnership at any time.
But partnerships and individual proprietorships have a limited life. They exist only as long as the owners are alive. Some states permit what are called limited liability partnerships. These have full partners and limited partners. Limited partners may not share as much in the profits. But their responsibilities to the organization are also limited.
A partnership is often called a pass-through entity: money passes through it to the individual partners. The federal government does not tax partnerships. But the partners are taxed on the payments they receive.
Doctors, lawyers and accountants often form partnerships to share the profits and risks of doing businesses. A husband and wife can form a business partnership. The Census Bureau says there are more than one-million American partnerships. Partnerships and individual proprietorships are usually small business organizations. Next week, we discuss a bigger kind: the corporation.
These are the ways many small businesses are organized.
If to speak about the structure of big business, the most complex is the corporation. This kind of business organization is designed to have an unlimited lifetime. Investors in a corporation own stock. This is a share of the ownership. Investors can trade their shares or keep them as long as the company is in business. Investors may get paid dividends, a small amount of money for each share they own.
A corporation is a legal entity, a being separate from its owners. Shareholders are not responsible for the debts of the corporation. Shareholders can only lose the money they invest in stock. The corporation itself is responsible for its debts.
A board of directors controls the corporate policies. The directors appoint top company officers. The directors might or might not hold any shares in the corporation.
United States tax law recognizes two general kinds of corporations. The first is known as the corporation. Corporations were the only kind for many years. Most pay taxes on their profits. Shareholders also pay taxes on dividends they receive. Some people call this “double taxation.”
Ø 3) Which of the summaries renders the content the most adequately?
a)The text is about the ways that businesses are organized. There are different kinds of businesses, for example, an individual proprietorship and a partnership. The former has simple reporting requirements for taxes, while partnerships are not taxed by the government at all. Instead the partners are taxed on the payments they receive. These are the small businesses.
The most complex business is the corporation. Investors in a corporation own stock and are paid dividends. Shareholders are not responsible for the debts of the corporation. A board of directors controls the corporate policies. The corporations pay taxes on their profits.
b) This text deals with different types of business organizations, such as individual proprietorships, partnerships and corporations. The first two comprise about 13 million business organizations. Corporations belong to big business. Proprietorships have simple reporting requirements for taxes. Partnerships are not taxed, instead, the partners are taxed on payments they receive. As for corporations, most of them are taxed.
THE TARGET MARKET
Ø 1) Read the heading and the following words from the text and guess what the text is about: product, price, placement, promotion, the four P’s, to determine the target market, the knowledge of customers, market research.
The marketing strategies of determining product, price, placement, and promotion are not planned in isolation. Marketing analysts often look at a combination of these four factors. This combination of the four P’s is known as the marketing mix. The elements of the marketing mix focus on the consumer. In order to develop a successful marketing mix, researchers first ask two important questions: Who is going to buy the product? What is the potential to sell this product?
The group of customers or consumers who will probably buy the product is known as the target market. The company directs its marketing efforts toward this group of potential customers who form the target market. Once market researchers have determined the target market they wish to appeal to, the company can develop an appropriate mix of product, price, placement, and promotion.
The company attempts to match consumer needs or mold consumer desires to the product being offered. For example, if the target market is “middle-class teenagers,” the marketing mix might consist of the following:
Product: blue jeans
Price: withthe market
Placement: department store
Promotion: advertisements on a “pop music” radio station
A successful marketing mix depends on the knowledge about consumers and their buying habits gained through market research as well as correct identification of the target market. Strategies of product, price, placement, and promotion are blended in order to reach a chosen group of consumers.
Ø 2) Make up an outline of the text in writing.
Distribution
Ø 1) Read the following text and say whether the following statements are true or false. Prove your opinion:
a)Distribution is the process of delivering the product to the customer.
b)Almost every product gets consumed far away from its point of production.
c)Since production point is usually far away from the market, distribution costs remain stable.
d)Physical distribution of products is the process of reaching them to the customers.
e)Very often a product is consumed at the place and time of its production.
The process of delivering the product to the customer is termed as distribution. Distribution management consists of two major tasks: physical distribution and management of distribution channels. Physical distribution can be defined as the process of reaching the product to the consumers. It encompasses all the activities involved in the physical flow of products from producers to consumers.
It is physical distribution that provides place-utility and time-utility to a product. In other words, it is physical distribution that makes the product available at the right place and at the right time, thereby maximizing the company’s chance to sell the product and strengthen its competitive position. If a product could be consumed at the place and time of production, there would be no need for distribution. Such products are rare.
Almost every product gets consumed far away - both in time and space - from its point of manufacture. They have to be carried, stored and distributed. In the case of some products, the location of the production points is totally dictated by production considerations, like proximity to a port or to the source of raw material. In such cases, the production point may be far away from the market.
Distribution aids the process of demand generation. It is distribution that largely determines the customer service level. Through this, distribution serves as an effective tool for building up of client oriented market. And conversely, inefficient distribution leads to loss of customers and markets.
Distribution is a very important area for cost savings. Over the years, in most businesses, distribution costs have grown into a sizeable chunk of the total costs and now rank second among all cost elements, next only to the material costs.
Ø 2) Name the items indicating functions of successful distribution:
a)delivers products to customers,
b)provides place and time utility of the product,
c)is a very important tool for cost savings,
d)explains how small business operates,
e)makes the product available to the customers,
f)maximizes the company’s chance to sell the product,
g)strengthens the company’s competitive position,
h)determines the customer service level,
i)criticizes the general approach to business.
Basic terms of delivery
Ø 1) Read the heading and the subheadings and say what the article is about.
(CIF) Cost, insurance, freightis one of the basic terms of delivery of export contracts in accordance with which the seller pays for transportation to the port of destination, costs of loading and arranges marine insurance of the goods for the time of transportation. According to c.i.f. terms, the seller sends thebuyer (through the bank) the documents entitling the buyer to the goods. The documents transferred are: a bill of lading, insurance policy, a pay-bill, sometimes such documents as a Certificate of Origin, a Certificate of Quality and an Export License. To accept the goods the buyer undertakes to effect payment as soon as he receives the documents. Sometimes it is considered that according to c.i.f. terms of the contract the buyer pays for the documents but not for the goods: as long as the documents received are in order, the buyer should pay no matter whether the goods were lost or damaged in transit. In that case the buyer holding the Insurance Policy can claim for compensation for the goods damaged or lost in transit.
(FOB) Free on board,free on rail (FOR), free on car (FOC), free on truck (FOT) are terms of delivery according to which the seller pays for transportation of goods to the point of loading and their consequent shipment on board a ship, a plane or a car. The seller also pays the insurance of the goods to the place of loading. Afterwards transportation and insurance costs are borne by a consignee. Besides, there is one more term of delivery called “free on board and trimmed” which in itself is a condition of sale used in trade with coal, according to which the seller pays for the delivery and the loading of coal onto a vessel, and guarantees its correct placing.
(C&F) Cost and freightis a condition of sale for goods carried by sea where the seller pays for loading and transporting goods but the buyer pays the insurance costs once the goods have been loaded. The buyer orders the goods on a cost and freight basis, preferring to make insurance arrangements personally.
(CICI) Cost, insurance, freight, commission, interest;according to c.i.c.i. terms of the contract, the seller apart from paying the cost of the goods, insurance and freight pays the buyer additionally a commission fee and an interest charged by the seller’s bank for documents transfer.
(FAS) Free alongside shipis a condition of sale where the seller pays for transportation and insurance of the goods until they arrive at the ship. The buyer is then responsible for the actual loading of the goods.
Ø 2) Say whether the questions below are covered in the text:
a)according to c.i.f. terms, the seller sends the buyer the documents entitling the buyer to the goods;
b)the term of delivery according to which the seller pays for transportation of goods and their shipment;
c)quite often the Bills of Lading have a more detailed descriptions of responsibilities concerning delivery;
d)the term of delivery according to which the goods are carried by sea and the seller pays for loading and transporting;
e)the transport of goods between the countries is organized by shipping agents;
f)the term of delivery according to which the seller pays for transportation and insurance of the goods;
g)the Bill of Lading is the contract by which the ship owner agrees to convey the cargo to the place of destination and to hand it over to the addressee.