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Answer the following questions.
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1. What kind of institution is a business company? 2. What kind of strategy must a company have? 3. What does a company have to do in order to achieve the main objective? 4. Will you cut profits if you reduce prices? 5. In what way will you be able to cut unit costs? 6. What will become with unit costs if you invest in new plants and machines? 7. Is the increased market share the main objective in company strategy? 8. What's the main objective of the company strategy? 9. What can you expect if you upgrade the product? 10. What may happen if you increase prices whatever the quality? 11. What may happen if you reduce costs in manufacture? 12. Is it true that subcontracting more of the production means job losses? 13. Do you take it correctly by understanding that the jobs which remain after general job losses will be more secure?
Making a career
In 1960 Brian Baker, Managing Director of Lindon & Son, borrowed a large sum of money from Bridges and Company Bank to finance the business. It's in place here to mention that Mr. Baker's business has been in full swing since that time, and seems to be prospering in the future. Suffice it to say that within a short period of time the parent company "gave birth" to many subsidiaries, and now has got 50,000 employees, as well as many manufacturing assembly plants and factories. We have our branches in 25 cities and towns all over the world.
It's no exaggeration to say that we produce high quality products. We use the most advanced technologies, and are in close contact with the market. We produce a great variety of products ranging from spare parts of domestic appliances to small tractors and grass-cutters.
To keep abreast with the time and to have our production on a high technological level we try and invest a lot of money in research and development. Our company has sales reps all over the world, and our prices are said to be very competitive.
As regards our future we plan to increase our production, profits and turnover, to export to more countries, and expand our international links. In the latter case, we have made considerable progress by concluding economic, scientific, and high-tech agreements as well as through exchanging specialists.
Now back to Mr. Baker and a short history of his business. Mr. Baker has had an enormous input in his business, and proved to be a talented and gifted manager. 18 years ago Mr. Baker earned a good salary in Frankfort, but he wanted to have his own company. He couldn’t afford to start a company immediately, because he needed money. During his years in Frankfort he saved as much money as he could, and some years later he invested his money of $500,000 in total in his new company. His profits rose by 25% per year and reached $45,6 mln in 1990. Now he owns 80% of the company, and his shares in the company are now worth $899 mln.
Public relations. To complete the picture of portraying our company it should be noted that our managers not only perform their office duties, but also participate in the communal work. At our Headquarters public relations officers are engaged in their day-to-day activities aimed at working with clients, mass-media, and members of the staff. We are in close touch with the press. Therefore, from time to time we have the pleasure of seeing our "image" in some leading papers.
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Vocabulary
to finance a business – финансировать дело
it’s in place here to mention – здесь уместно упомянуть
to be in full swing – быть в полном разгаре
suffice it to say that... – достаточно сказать, что...
parent company – материнская компания
subsidiary – филиал, дочерня компания
assembly plant – сборочный цех
advanced technology – передовая технология
to be in close touch with – находиться в тесной связи c
spare parts – запасные части, запасные детали
domestic appliances – предметы домашнего обихода
grass-cutter – газонокосилка
to keep abreast with the time – для того, чтобы идти в ногу со временем
as regards – что касается
to expand international links – развивать, расширять международные связи
in the latter case – в последнем случае
input (contribution) – вклад
to earn (to get) a good salary – получать хорошую зарплату
to afford – позволить себе
to save money – экономить, откладывать, копить деньги
public relations – связи с общественностью
to perform one's duty – выполнять обязанность
communal work – общественная работа
headquarters – штаб-квартира
to be engaged – быть занятым
to aim at – иметь целью, стремиться
to be in close touch with – находиться в тесной связи
therefore – поэтому, следовательно
Answer the following questions.
1. For what purpose did Mr. Baker borrow a large sum of money from the bank? 2. In what state was Mr. Baker's business? 3. What is the structure of the company? 4. How many employees work for the company? 5. What is the strength of the company? 6. How much is his capital worth? 7. What do you know about public relations activities carried out by some members of the staff?
Licensing
When a company is small it can’t sometimes enter a foreign market. It can sign a licensing agreement with a foreign firm. A license is a legal agreement in which one firm gives another a right to manufacture and sell its product. A company that obtains this right pays the licenser a royalty. Royalty is a certain percentage of the income from the sale of the product.
Businesses that have patents or trademarks usually can use licensing to protect them against counterfeiters. The licensee gains a successful product and the know-how. The licenser often controls the quality of the goods which the licensee produces, because high quality guarantees the reputation of the licenser. The licensee chooses the selling strategies because he knows more about how to sell the product in the foreign market.
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Companies that want greater control over their product have to manufacture it at home and then export it to the foreign countries. In this case exporters must examine the market. Some firms can sell their products to an export/import merchant who takes all the selling risks. In other cases the company may use an export/import agent who sells the product to wholesalers or retailers in the foreign country. Sometimes the exporter may set up its own sales offices and branches abroad. This is more expensive, and only large firms can afford it.
Vocabulary
to sign a licensing agreement – подписать лицензированное соглашение, договор
licenser – лицензиар
royalty – лицензионный платеж
patent – патент
trademark – торговая марка
counterfeiter – фирма, незаконно использующая чужую торговую марку
licensee – лицензиат
merchant – купец, торговец; лицо, занимающееся оптовыми продажами
wholesaler – оптовик, оптовый торговец
retailer – розничный торговец, лавочник
to set up a branch abroad – учредить филиал за границей
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