V. Read and translate the following texts. Company results

Here is a short review of the company's main activities last year. I'm going to divide my review into three areas: firstly – financial, secondly – personnel, and thirdly –technology.

On the financial front the results have been very encouraging (pleasing): turnover has increased by 14 per cent, costs have dropped by 3 per cent, and profits are up by 16 per cent. So the company as a whole has performed well. Export sales have done very well especially in America, our largest export market. The domestic consumer market has been very competitive, and will continue to be so. To my regret, our results in this market have been rather disappointing – just 1 per cent as compared with the last year.

Now, the personnel. Our policy of personnel development through training and promotion opportunities has been a great success. We have actually recruited 72 new staff members, while 20 have retired; so there's a net balance of 52. The training department has expanded considerably, and moved into new areas such as quality assurance and sales training.

Finally, technology. I suppose it's no exaggeration to say that our technological thought is on the upgrade (upsurge), and our Research Department is trying to do its best to make a scientific contribution to the production process of the company. Over the last year, our Research Department has tested a new prototype engine. Results so far look very promising. We have also invested heavily in a European technology programme which links industry with universities.

Vocabulary

to increase – возрастать, увеличиваться

costs – затраты, издержки

to drop – снизиться, уменьшаться, падать

to be up – повыситься

domestic consumer market – внутренний потребительский рынок

competitive – конкурентный, конкурентоспособный

as compared with – по сравнению с

personnel development – работа с кадрами, отдел кадров

promotion – продвижение по службе, повышение в звании

opportunity – возможность

to recruit – нанимать, предоставлять работу

staff members – штатные сотрудники

to retire – уходить на пенсию

to move into new areas – распространять на новые области

quality assurance – гарантия качества

sales training – подготовка торгового персонала

it's no exaggeration to say... – не будет преувеличением сказать...

on the upgrade (upsurge) – на подъеме

to make a contribution – делать вклад

to invest heavily – инвестировать значительный капитал

Company strategy

A business company is an institution established for the purpose of making profit. It's a big organisation which is operated by individuals. Their share of ownership is represented by shares. In order to operate successfully a company has to have its strategy. The company strategy must be flexible enough and take into consideration the changing market conditions. The main objective here is to gain a market share, and in order to achieve it, it's necessary to reduce prices. But if you reduce prices, your margins will be lower, and that will cut profits.

If you can slowly increase production, you will be able to cut unit costs though it seems to be a long-term prospect. Unit costs can come down if you invest in new plants and machines. Let's try to define the company strategy from the point of view of the market and manufacturing.

If you think that increased market share is the main objective in the company strategy, you are highly mistaken. First of all you should go in for a higher profitability. If you can upgrade the product, you are sure to get better prices and therefore higher profits.

You should bear in mind that the market is very competitive now. If you increase prices, whatever the quality, sales may drop rapidly. Let's look at the problems from the manufacturing view-point. If you can reduce costs in manufacturing, it'll put you in a strong position and enable you to adapt to the market. The only way you can become flexible enough is to subcontract more of the production.

It means job losses if you do that, but the jobs which remain will be more secure.