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Exercise 5. Match the word from the line with its definition.
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Management, Top management, Middle management, Managing director, Manager
A. a person responsible for the day-to-day running of a company; second in the hierarchy only to the chairman.
B. the staff that includes the chief, executive of an organization, his or her deputy or deputies, the board of directors and the managers in charge of the divisions or departments of the organization.
C. the control and organizing of a business or other organization.
D. a person controlling or administrating a business or part of a business.
E. the staff that consists of the managers to whom top management delegates the day-to-day running of the organization.
Exercise 6.. Do you know the meaning of the following derivatives? Show it with the help of your own sentences.
to manage; manageable; management; manager; manageress; managerial
Exercise 7. Give the Russian equivalents to the following.
Involved in management; production oriented; impose regulations, ever-more-complex environment; encompasses both science and art; business executives; code of conduct; develop the body of knowledge; with respect to the second criterion; the issue is much less clear-out; is consistent with their interest; self-interest or concern for others; decision-making machinery; cross-cultural skills; consulting fee; character attributes; compare against the places set earlier; authority.
Exercise 8.
A. Read the portraits of managers in five different countries and decide which country each one corresponds to.
Germany, Poland, Sweden, The United Kingdom, The United States
1 Managers from this country
· consider professional and technical skills to
be very important.
· have a strong sense of authority.
· respect the different positions in the hierarchy of their companies.
· clearly define how jobs should be done.
· are very loyal to their companies and expect
their subordinates to obey them.
· are often older than in other countries.
2 Managers from this country
· receive a general education.
· delegate authority.
· take a practical approach to management.
· have relatively formal relationships at work.
· encourage their employees to work
individually.
· believe it is important to continue education
and training at work.
3 Managers from this country
· consider social qualities to be as important
as education.
· encourage their employees to take an
interest in their work.
· pay close attention to the quality of
working life.
· do not use as much authority as in other
countries.
· appreciate low-level decision-making.
· are often women.
4 Managers from this country
· generally attend business schools.
· communicate easily and informally at work.
· admire the qualities of a leader.
· expect everyone to work hard. Individual
performance is measured and initiative is
rewarded.
· have competitive and aggressive attitudes to
work.
· often accept innovation and change.
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5 Managers from this country
· have either gained their experience in state-owned
enterprises or are competitive self-starters.
· older managers hold technical degrees rather than business
qualifications.
· work very long hours and expect their subordinates to do so.
· are extremely innovative, optimistic and determined.
· are quick to invest in the development of new products,
market techniques and methods of production and
distribution.
B. In groups, discuss the advantages and disadvantages of each approach to management, and say which one you would find the most attractive. Do any of these profiles correspond to management practices in your country?
TEXT 16. FRANCHISING
franchisee торговое предприятие, пользующееся
правом торговать продуктами
промышленного предприятия на льготных условиях
rate процент, доля; коэффициент
failure rate процент банкротства (провалов)
franchisor компания, имеющая патент на деятельность
franchise франшиза, особое право, особый контракт
parent company материнская компания
contribute вносить, предоставлять
trademark торговый знак; фабричная марка
set down устанавливать
marketing procedure метод торговли, методика продаж
specify точно определять, устанавливать; обусловливать, оговаривать;
перечислять, указывать
common identity общая идентичность
straight-product-distribution франшиза, предусматривающая непосредственное распределение
franchise продукции
appliance shop магазин бытовой техники
product-license franchise франшиза на лицензионный выпуск продукции
comply with отвечать
brand сорт, качество; торговая марка
trade-name franchise франшиза на торговый знак
exercise control over smth осуществлять контроль за чем-либо
undertake предпринимать
with due consideration с надлежащим рассмотрением
sound management procedure хороший метод управления
make available предоставлять
transfer перечислять (сумму); переводить деньги
retailer flat розничный торговец
fee одинаковая плата: твердая комиссия (не меняющаяся от суммы сделки)
purchase price закупочная цена
low interest низкий процент
retain удерживать, сохранять
quality control контроль качества
via через
management decision решение руководства
expenses расходы
obligatory purchases обязательные закупки
supervisory personnel специалисты по техническому контролю
share with делить с кем-либо
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precede предшествововать
proper consideration тщательное рассмотрение
vendor продавец; торговец вразнос
clause условия, пункт, статья
sales quota квота на продажу
termination agreement соглашение об истечении срока; прекращение соглашения
standardized product нормированный продукт
standardized procedure стандартная методика
unlawful незаконный, противоправный
insolvency неплатежеспособность
obtain income получать доход
obtain profit извлекать выгоду
formal license официальное разрешение
permanent control постоянный контроль
take strike action бастовать
approximate balance приблизительный баланс (сальдо)
dealership дилерство, посредничество
boom бум, быстрый подъем (деловой активности)
proliferation распространение; количественный рост
diversification диверсификация (одновременное развитие многих, не связанныхдруг с другом видов производства, расширение ассортимента производимых изделий)
lawsuit иск; судебное дело
rocket внезапно, резко повышаться
real value действительная стоимость
estimate оценивать, составлять смету
shifting standards переменные стандарты (гибкие)
appraisal method метод оценки, аттестации
personal bias личное пристрастие
distort rating искажать оценку
rate harshly грубо оценивать
rating standards тарификационные стандарты
Franchising is a business system in which a company (or franchisor) sells an individual (or franchisee) the right to operate a business using the franchisor's established system or format.
As part of the franchise agreement the franchisee pays an initial sum of money, a franchise fee or front end fee, to the franchisor and agrees to pay a royalty or management services fee for continuing advice and assistance, which is usually calculated as a percentage of annual turnover. The franchisee may also pay an advertising fee to contribute to the franchisor's annual advertising and marketing costs. The franchisee also has to find the necessary capital to open the business.
The franchisor provides an operations manual which contains all the information that the franchisee needs to run his or her business. A franchisor may appoint a master franchisee to supervise the business in a particular area.
Good planning, financing and management are essential to any type of small firm. This is true whether the firm is a franchisee, a newly created firm, or an established firm under new ownership. That franchisees have a lower failure rate than other new small businesses is due in most cases to the managerial assistance provided by the franchisors. Failures can occur in any type of small firm when management does not apply continued good practice in the operation of the firm.
Franchising became very popular in the decade of the 1970s, and this growth has continued in the 1980s. Franchising is basically a system for distributing products or services through associated resellers. The franchise gives rights to the franchisee to perform or use something that is the property of the franchisor. The parent company is the f r a n с h i s о r. The small business owner who buys a franchise is the franchisee.
The objective of franchisees is to achieve efficient and profitable distribution of a product or service within a specified area. Both parties contribute resources. The franchisor contributes a trademark, a reputation, known products, managerial know-how, procedures, and perhaps equipment. The franchisee invests capital in the purchase of the franchise and provides the management of the operation in accordance with rules set down by the franchisor. Marketing procedures may be specified, and a common identity is established.
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Most franchises can be classified into one of the three categories that follow:
-straight-product-distribution franchises. Under this type of franchise, which is the most popular today, franchisors merely supply the franchisees with their products in salable form and the franchisees sell them in that same form. Auto agencies and appliance shops are prominent examples. The franchisors earn their profit from the price at which they sell to the franchisee.
-product-license franchises. In these cases the franchisees use the franchisor's name but manufacture their products to comply with the franchisor's requirements. The franchisors provide brand identity and usually specify methods of manufacturing and/or distributing the product.
-trade-name franchises. Under this type of franchise, the franchisor licenses its trade name to the franchisee but seldom exercises any control over the product or service being marketed. Equipment distributors often use this method of franchise.
Franchising offers its maximum advantages when undertaken with due consideration for the interests of the franchisee as well as the franchisor. The following table lists advantages to both parties.
| To the franchisor | To the franchisee |
| 1.Expanded distribution without increased capital investment. 2. Marketing and distribution costs shared by franchisee. 3. Some operating costs may be transferred to franchisee. 4. Flat fees often collected each month from franchisee. 5. Retains quality control of product via franchise agreement. | 1. Sound management procedures, training, and, decision-making assistance made available by franchisor. 2. Reestablished promotion and advertising programs provided. 3. Being part of large system of retailers. 4. Possible financial aid for part of purchase price at low interest. 5. Credit available in buying inventory and supplies. |
Some disadvantages of franchise also exist. These include the following:
| To the franchisor | To the franchisee |
| 1. Long distance control over franchisees. | 1. Usually gives up much freedom in management decisions. |
| 2. Expenses of training supervisory personnel and keeping them on the road. | 2. Obligatory purchases from franchisor, even if better prices are available elsewhere. |
| 3. Profits always shared with franchisor. | |
| 4. Franchises have become very expensive. |
Despite the great growth and popularity of franchising in recent years, it should be noted that not all franchises have been successful. Great care should always precede any decision to buy a franchise.
It is obvious that franchising has taken an important place in the small business field in this country. Many American franchisors have extended their franchises around the world. This significant development, when handled with proper consideration for both parties, can provide real advantages to both franchisor and franchisee.
EXERCISES
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