3. Тексти по спеціалізації

Text 1.

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Monetary Policy

The government tries to control the money supply (1) for several reasons. If prices are rising and the government fears an increase in the rate of inflation, it will try to reduce the money supply or slow down the rate at which it is increasing. If there is a serious slump (2), it might try to increase total spending (3) by allowing the money supply to increase. The measures used for these purposes are described as monetary policy (4). In Britain, for example, the Bank of England is responsible for carrying out the government’s monetary policy. Since the greater part of the money supply consists of bank deposits (5), monetary policy must try to control the level of these deposits (6). The extent to which they are created depends upon the bank customers’ (7) willingness (8) and ability to borrow (9) (the demand for loans (10)), and the banks’ ability to lend (11) (the supply of loans (12)). The Bank of England, therefore, must be able to influence the behavior of both the banks and their customers. The price of a loan (13) is the rate of interest (14) one has to pay for it. Any changes in the rate of interest, therefore, will affect people’s willingness to borrow from the banks (15). The Bank of England is able to operate in the money market (16) as a major borrower (17) and lender (18). It can, therefore, have a direct on the demand for or supply of loans. In other words, it can influence the price of loans – the rate of interest. A rise in the rate of interest raises the cost of borrowing (19). The demand for bank loans may fall or, more likely, grow more slowly. The rate at which total bank deposits (20) are growing will slow down. A fall in the rate of interest will reduce the cost of borrowing and increase the demand for bank loans. Total bank deposits will tend to grow more rapidly.

1. контролювати грошову масу; 2. раптове падіння; 3. загальні витрати; 4. грошово-кредитна політика; 5. банківські депозити; 6. контролювати обсяг банківських депозитів; 7. клієнти банку; 8. прагнення; 9. спроможність позичати; 10. попит на позики; 11. спроможність надавати позики; 12. пропозиція позик; 13. ціна на позику; 14. процентна ставка; 15. брати позику у банках; 16. на грошовому ринку; 17. позичальник; 18. позикодавиць; 19. вартість позики; 20. сума банківських вкладів.

Text 2. ORGANIZING

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There can be no doubt that good people and those who want to cooperate will work together most effectively if they are ac­quainted with the parts they are to play in any team operation and the way their roles relate to one another. Designing and maintaining these systems of roles is the managerial function of organizing.

An organizational role incorporates different objectives, which are the most important part of planning; a clear idea of the ma­jor duties or activities involved; and an understood area of dis­cretion or authority so that the person fulfilling the role knows what he/she can do to accomplish goals.

Thus, we think of organizing as the identification and classi­fication of required activities; the grouping of activities essential to attain objectives; the assignment of each grouping to a mana­ger with the authority necessary to supervise it; and the provision for horizontal and vertical coordination in the organization struc­ture.

An organization structure should be designed to clarify who is to do what tasks and who is responsible for what results, to remove obstacles to performance caused by confusion and uncer­tainty of assignment and to furnish decision-making and com­munication networks reflecting and supporting enterprise objec­tives.

The word "organization" implies a formalized intended struc­ture of roles or positions. Many authors on management distin­guish between formal and informal organization.

Formal organization means the intentional structure of roles in a formally organized enterprise. Formal organization must be flaxible. There should be room for discretion, for advantageous utilization of creative talents and for recognition of individual likes and capacity in the most formal of organization.

Informal organization is a network of personal and social relations not established or required by a formal organization but arising spontaneously as people associate with one another. The informal relationships established in a group of people playing ping-pong after dinner may help in the achievement of organizational goals. It is much easier to ask for help on an organization problem from someone you know personally.

One of the aspects of organizing is the establishment of depart­ments. A department as the term is usually used for production division, the sales unit, western/southern branch, the market research section or accounts receivable unit. While the purpose of organizing is to make human cooperation effective, the reason for levels of organization is limitations of the span of manage­ment. Organization levels exist because there is a limit to the number of persons a manager can supervise effectively, even if tins limit varies depending on situations.

Text 3. Mass production

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Mass production enables companies to produce large quantities of parts and products Within a short time. To do this, each worker on a factory assembly line is assigned only one job. Each person does the same job over and over. Mass production works only if all the same parts of components are standardized, i.e. the same size and shape. The parts must be interchangeable. Any one of several hundred pieces of one part must fit with any of several hundred pieces of a joining part. Today's automobiles are n.ade mostly with standardized, or interchangeable, parts.

Through mass production and the assembly line, a greater number of products can be made in a given amount of time. Mass production also makes products less expensive to produce and therefore less expensive to buy.

Where do companies put materials and purchased parts until they are needed on the production line? Many companies have to order large amounts of materials ahead of time. They then must pay for storage space in a warehouse. The company must also hire people (or buy robots) to move the materials to the production line. Once the finished product is made, it often spends time in a warehouse, waiting to be shipped. One way to cut down on inventory (things in storage) and costs is to use a computer to schedule deliveries just in time.

Just-in-time manufacturing (JIT) is a method that many companies are turning to because it eliminates the need for storage space and extra people to manage the inventory. All the materials and ordered parts get to the factory just in time to be used in production. When the product is finished it is immediately shipped to the customer. Just-in-time manufacturing enables companies to cut back inventory as much as possible.

You can see that good management and teamwork are important to just-in-time manufacturing, or synchronized production. If one part is not there on time, then the rest of the product must wait. To be successful, production workers, managers, suppliers, and workers who transport materials must work closely together. Computers play a large part in linking all those people together so thai they all know what they are supposed to do and when they are supposed to do it.

Text 4. RISK MANAGEMENT AND INSURANCE

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Every day the costs necessary to start up and run any kind of business are increasing. The risk of failure, bankruptcy and fi­nancial losses are also increasing. How to manage the problem? Speaking about risk management, one may consider this issue to be the major one among the other business issues. Some years ago the best way to protect against the risk was to buy insurance. Nowadays, insurance is rather expensive cost, thus people in business have to search for the other sources of managing risk.

Risk, in general, refers to the chance of loss, the probability of loss and the amount of possible loss. One may differentiate between speculative risk and pure risk. Speculative risk involves a chance/of either profit or loss. An enterprise may earn addi­tional funds through buying new machinery, considering options, making decisions to decrease the probability of loss. One takes speculative risk on the chance of making a profit. Pure risk is defined as the threat of loss with no chance for profit. Business firms deal with pure risk very often. To reduce it the firms might self-insure against the risk, avoid the risk or buy insurance to cover the risk. Reducing the risk is possible through purchasing and using safety devices to protect employees from possible ac­cidents, through providing health education and equipment maintenance programs. Self-insurance guarantees managing amount of loss to those companies that cannot afford conven­tional property or casualty policies. Firms having huge facilities, find self-insurance a good way out in difficult situation. The chance for risk is always present. Nevertheless, some companies try to avoid risks by not being involved in hazardous activities.

There are two major types of insurance companies: a stock insurance company and a mutual insurance company. A stock insurance company is owned by stockholders, just like any other stock company. A mutual insurance company is owned by its policyholders. It issues participating insurance, meaning that any excess profits go to a policyholder or investor in the form of dividends.

Insurance policy stands for a written contract between the insured individual or institution and the insurance company itself that promises to pay for all or part of a loss. The law of large numbers says that if a large number of people or organisations are subject to the same risk, a predictable number of losses occur over a given period of time. As soon as an insurance company determines these figures it can determine the premium (the fee charged by an insurance company) which might be rather high as to cover possible losses. Rule of indemnity states that an insured person or organisation cannot collect more than an actual loss from an insurable risk. Coinsurance clause requires businesses to perform insurance equal to a certain percentage of a building's actual value. A deductible clause explains that the insurance company has to pay only the part of a loss exceeding a figure in a policy.

There is a list of insurance policies, a firm can buy: 1) fire (insures from fire, theft, different natural disasters); 2) auto and truck (insures from property damage, collision, bodily injury, theft, vandalism etc.); 3) marine and aviation (insures boats, planes and their cargo); 4) liability (insures from legal claims from the firm's products or operations); 5) workers compensation (protects from injuries sustained on the job); 6) criminal loss (insures from theft and losses while breakings); 7) credit (covers from non-payment by consumers); 8) business interruption (insures from the firm being closed); 9) health (it is a firm who pays the cost of employees' insurance); 10) life (protects against the loss of key executives and employees); 11) farm insurance (protects property and liability risks on farms).

Most attention should be paid to life insurance presupposing insurance for executives and employees. Some life insurance plans include group life insurance, owner or executive insurance and retirement and pension plans. Rates for group insurance are lower than for individual one which saves a lot of money. An owner insurance enables the firm to pay off bills and keep on with performance in the case of an executive's death. It also guarantees a safety of a job for employees. Retirement plans should provide employees with the ability to get financial support after retiring from a job.

Risk management has become one of the most important and dynamic functions in business. People who deal with the risk and compile appropriate plans and efficient programs to cover the risk at a minimum cost are referred to as risk managers. The future career development is huge. Life insurance market has a great potential, because insurance companies appear and broaden day after day and demand insurance agents. These financial advi­sors sell mutual funds together with insurance policies.

Another job one may occupy in risk management is insurance adjuster. It stands for a person who calculates the extent of a loss. These people come, estimate the losses and state the sum of money to be reimbursed. Actuary representing the other profes­sion in the sphere of risk management predicts future possible losses on the basis of historical data.

There are many careers in risk management proposing versatile opportunities to get into business. Try one and reach for suc­cess.