Text 2 The Halifax Building Society

“The Halifax” is the biggest building society in the world. It has held this premier position since 1913, when its assets were about 4,000,000 pounds of sterling; now they are measured in thousand of millions. One person in eight of the entire population of the United Kingdom is a member of the Society, either as an investor or a borrower, and the Halifax is responsible for about a fifth of the assets of the whole building society, consisting of over three hundred societies.

The origin of the Halifax goes back to 1852 when a small group of men met in the Oak Room of the Old Cock Inn, Halifax and discussed the establishment of a permanent benefit building and investment society. The name of the Society, by the time of its official foundation on 1^st February 1853, was the Halifax Permanent Benefit Building Society, and the Rules were certified as conforming to the 1836 Building Societies Act. Investors paid for a share at the rate of 2/6d a week and borrowers received an “advanced share” of 60 pounds. For both investors and borrowers the rate interest was 5% and so charges were levied to cover management expenses, and members were fined if they did not pay their subscriptions punctually. In 1928 a merger between the Permanent and the Halifax Equitable (then the second largest in the country) produced the Halifax Building Society, five times larger than its nearest rival.

One of the major reasons for the success of the Halifax Building Society was the decision, taken very early in its existence, to open branches wherever there was a demand for its services. This policy is still applied today, when more than 1,700 offices cover every part of the United Kingdom, and additional offices are opened wherever there is evidence that existing or potential customers require more of the facilities for saving, investment and loans that the Halifax can offer.

In order to provide the best possible service to customers every branch is linked by on-line terminals to a central computer. This means that all transactions at branches all over the country are transmitted to Halifax on the same day and accounts are updated overnight.

Although the Society numbers its members in millions and uses the most up-to-date technology, its managers and staff give personal attention to the customers trying to meet their requirements quickly and efficiently.

Text 3 Paula Lambert and Her Company

Many people dream of turning a love for gourmet food into a business, but doing so is hard. Paula Lambert, owner of the Mozzarella Company in Dallas, is one dreamer who succeeded. In eight years, her company has grown from a local, two-product firm to a nationally respected supplier of twenty-eight fresh gourmet cheeses, with almost $1 million in sales.

Lambert’s love of Italian cheese began during a five-year stay in Italy. Back in the United States, she missed the fresh mozzarella and tomato salad that was common on Italian menus. Visiting Dallas cheese shops and restaurants, she learned that there was no good local source for fresh mozzarella. So she and two investors pulled together $100,000, hired a cheese-making instructor from Italy for the summer, bought some equipment, and in mid-1982 started the Mozzarella Company. By November, Lambert began selling to local gourmet shops.

The next year proved to be tough. Customers liked her cheeses, but the high prices affected sales. In December 1983, with the company almost out of money, Lambert began calling on restaurants, first in Dallas, then nationally. Her timing was excellent. Restaurants around the country were just beginning to feature fresh ingredients. But increasing sales isn’t the same as increasing profits. She needed more products. In early 1984 Lambert returned to Italy to learn how to make other cheeses. Expanding the product line provided more revenue and increased employee productivity.

Lambert’s story is about the advantage of running a small company. She stays close to her customers, providing a high-quality product and personal service. She also has many of the characteristics needed by those who start their own business: willingness to take risks, personal commitments, perseverance, creativity, flexibility, and a long-term view of the business.