Unit 7: Which sector do you intend to work in? How do you fit into the total picture?

We all know that nowadays there are 4 sectors of the economy. The primary sector includes agriculture and the extraction of raw materials from the earth. The secondary sector contains manufacturing industries.

The tertiary sector is a service sector which includes education, healthcare, tourism and others.

As for me, I suppose that I intend to work in quaternary sector. This sector consisting of information services such as ICT (info and communication technologies), consultancy and R&D. I’m attracted to the sphere of global marketing.

I strongly believe that this sector is really perspective, as advanced countries have expertise in higher education, ICT, R&D and business consulting. But also, these countries should concentrate on their strengths, rather than trying to make things more cheaply than less-developed countries.

Unit 14: A major bank has been rescued by the government after losing billions of Euros on speculative investments. One director thinks that the way the bank can regain public trust is to enter the microfinance market in developing countries. As you are going to take part in the meeting to discuss this idea, explain what decision you would back up and why?

From my point of view, entering the microfinance market can help the bank to regain public trust and increase its revenues. Earlier microfinance schemes distribute very small loans to poor people, often without financial collateral. But today banks use social collateral, so they create a group of people which help each other to repay the loan. It’s not as risky as it sounds, because we are talking about a large number of people, with a very small amount of money. Moreover, nowadays bank are developing different microfinancing and microcredit products in developing countries such as Bangladesh, Latin America and Africa too. That’s why it actually creates a very nice and also raises the bank’s profile which can regain public trust.

Financial collateral (land, flat, car) is replaced by social collateral. Social collateral is when poor people create a group and divide the risk, helping each other to pay a lawn. It is a profitable, healthy return.

Unit 15.1 : If you are starting a business, you have to get capital from investors. In order to persuade them to invest, you need, among other things, to write a business plan. What things do you think need to be covered in your business plan so that they invest?

First of all, you should start writing your business plan with executive summary. It’s a one-page summary or overview of what the business plan is about and what it will contain (about company; products or services; managers; money etc.).

Then it’s necessary to write down market opportunity and information about your product or service. It should contain a brief description what the company should do, the target market, its needs, current products and services and why they are inadequate. For new product or service describe its features and the benefits for the customers, emphasizing differences with other products on the market.

Then continue with customer profile. It should give details about the customers you plan to cater to.

Furthermore, it’s crucial to add info about competition and competitive advantage. It specifies the existing competitors to your product, reviews their strengths and weaknesses, analyses the possibilities of future competitors entering the market and describes the sustainable competitive advantage the new business has over its competitors.

You shouldn’t forget to write about management team. Give information about the founders, directors, advisors and their experience.

Moreover include in your business plan implementation plan which describes sales and marketing and operational strategies, including the pricing strategy and financial analysis, which gives details of the business performance, existing assets and sales forecast. In conclusion, it’s crucial to add appendix which includes CV of the managers and any other necessary documents.