Give your opinion on the following issue.

The sales of the clothes produced by the company have suddenly decreased on the market. What can possible reasons for it be?

B. Discussion

Work in pairs or small groups. Discuss your answers to the following questions.

1. All the companies producing TV sets for the domestic market have increased the prices on their product. What can all the consequences of this price rise be a) for customers? b) for producers? c) for competitors?

2. A company which manufactures furniture started buying progressively more expensive materials. What changes on the market could make them act like this? Is it going to affect the cost of the product in the nearest future?

3. The market for computers is already in equilibrium but the suppliers have decided to raise prices. Will it change the situation on the computer market? How?

C. Role play

Raising Sales

Prepare for a role play. Read the situation and the roles, and follow the procedure.

The situation

A company called “Super View” produces TV sets, mostly for a domestic market. Your main competitor is another domestic company called “Super Vision” producing TV sets of practically the same quality for the same customer. There are TV sets of some foreign producers on the market, too, but they are more expensive. Recently the demand for “Super View” company's product has decreased, and the sales have critically fallen. The Board of Directors are discussing all possible ways out of the situation.

The objective

Develop a complex plan aimed at overcoming difficulties and solving the problem.

The roles

General Director.You are the Chairman of the meeting. Explain the existing problem to the audience. Suggest all possible reasons for the situation that occurred. Give the floor to the staff and shareholders. Organize voting after discussing the proposals. Note down the most efficient ones. At the end of the meeting read out a complex plan, run the voting to approve it, thank the participants and close the meeting.

Managing Director.You keepto a customer oriented approach. Say what, in your opinion, should be done to increase the demand and raise sales. If possible, suggest several ways.

Financial Director.You are sure that if the company gets a bump order from the government the situation will be solved immediately. Give your proposals how to convince the government to make such orders for schools, universities, public agencies etc.

Production Manager.In your opinion, the company should look forward and enter the international market. Suggest what will happen if the company succeeds in it. Say what should be done to achieve this purpose.

Marketing Manager.You are a supporter of a product innovation approach. Express your own view on solving the problem. Give some examples of innovations (there may be even the most incredible ones, like a kind of a TV set with functions of a dishwasher, or special glasses for watching TV without a screen).

Sales Manager. You think that the best way is to unite with your competitors, “Super Vision”, creating a monopoly of domestic TV set suppliers. Give your arguments in favour of your plan.

Shareholders (the rest of the audience).Put questions to the speakers. Express your agreement or disagreement with the speakers' views. (You may suggest your own ways out of the situation as well). Try to predict the reaction of the market to this or that change in the company's strategy. Take part in the voting.

The procedure

1. The moderator opens the meeting.

2. The participants in turn take the floor and make their reports, expressing their views.

3. The moderator organizes the exchange of views and opinions.

4. The moderator organizes the voting to decide which decision to make.

5. The moderator closes the meeting.

After the role play the moderator evaluates the participants’ reports. The moderator's performance is evaluated by the group.

VII. Writing

Write an essay on one of the following topics.

1. Protectionism policies in stimulating the demand for domestic products and their impact on the market situation.

2. The society of consumption: true and false values.

3. Which is the lesser evil – lack of supply or lack of demand?