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with Richard’s savings of $15, 000, provided the start-up capital for the firm, Computex.

He began by hiring another person to help him develop the components. The two of them spent the next six months producing the type of products they felt the market needed. When they had built up a good supply of components, they started trying to sell them. To Richard’s surprise, however, this proved to be very difficult. Many potential customers seemed to be suspicious of the low prices of the products. Why were they so much cheaper than those of more famous, well-established competitors, they wanted to know. Other customers clearly saw Richard’s company as a newcomer not to be trusted – people who would be here today and gone tomorrow.

It was over a year when Richard got his first order. By that time, he had an overdraft of $40, 000 and no more money to make further supplies of components. He was spending all his time advertising the products, running round to meet customers and trying to persuade them to buy.

Three months later, a few large orders were received, but Richard realized that he would have to wait two months or so before being paid.

At this point, the bank manager lost confidence in the business. He informed Richard that he was calling in the overdraft. “Give me some time to look around for more capital”, Richard said. “All right, I’ll give you a month, but not more,” was the bank manager’s reply.

After rushing about and talking to a lot of people, Richard received firm offers from two venture capital companies. The first was prepared to invest $200, 000 in return for an 80% share of Richard’s business; the second was willing to put up $250, 000 for a 90% share.

This was the situation facing Richard Thomas fifteen months after he had set up his high-technology enterprise.

overdraft – превышение кредита в банке overdraft facility – кредит, денежные средства to call in overdraft – потребовать кредит обратно

Questions

1.Could Richard have avoided the situation he now finds himself in? If so, how?

2.What should he do now?

3.What advice should you give him about how to run the company in the future?

4.What problems can arise when someone sets up a new business?

5.Consider Richard’s business, the high technology company. Note down it’s strengths, weaknesses, opportunities and threats.

7.Complete the text below with an appropriate relative pronoun: who, which, where, whose, that. In some sentences you can omit the relative pronoun.

Some tips on starting your own business

Planning is an essential ingredient for a successful business. The type of business

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____ needs most careful thought is the one you start from scratch. But you don’t need any original idea to have a good business. If you are worried about starting from scratch, you might want to think about buying a business ____ is already running.

Talking to people ____ have already started up their own business is very useful. You can learn a great deal from both successful businesses and those ____ have failed. Your Enterprise Agency or Chamber of Commerce may run business clubs ____ you can meet other small business owners.

Not having enough finance, ____ is one of the most common problems in small business, can be fatal. It is easy to underestimate the amount of money ____ you will need to set up your business. The time ____ you spend working out your cash needs and monitoring cash flow is time well-spent.

You should have at least a basic understanding of trading laws, ____ protect consumers, employees, the general public and businesses as well.

Failure to respect these laws could even be a crime. For example, every employee

____ employment continues for one month or more, has the right to receive a written statement, ____ is a sort of contract with the terms and details of their employment. You local tax office will send you documents ____ show you how much you need to take out of each employee’s wages, and where to send the money.

8. Translate the following text into English.

Термины “видение” и “миссия” компании часто употребляются как равнозначные, хотя первый из них скорее обозначает то, к чему следует стремиться, а второй – то, что необходимо сделать. В идеале корпоративное видение должно быть выражено одним коротким предложением, способным вдохновить и сотрудников, и инвесторов, и клиентов.

Корпоративное видение компании “Coca-Cola”, например, сформулировано просто, но эффектно: ”Сделать напиток “Coke” доступным для любого потребителя, в каком бы уголке мира он не находился”.

Стратегия бизнес единицы состоит из трёх основных компонентов: миссии, целей и компетентности. Миссия может в значительной степени влиять на диапазон маркетинговой деятельности фирмы, сужая или расширяя поле деятельности конкурентной борьбы.

Цель бизнес единицы – это плановый показатель деятельности фирмы, которого бизнес-единица стремится достичь, чтобы выполнить свою миссию. Поставленные цели должны быть согласованы и реально достижимы.

Под компетентностью бизнес единицы подразумевают особые способности бизнес единицы, обусловленные её кадровым составом, ресурсами и функциональными подразделениями.

Компания “Medtronic”, создавшая кардиостимулятор, в настоящее время является мировым лидером по производству кардиостимулирующих устройств. Основатель компании ещё 40 лет назад сформулировал миссию для подразделения по выпуску кардиостимулирующих устройств, которая по сей день остаётся неизменной. Формулировку этой миссии можно увидеть на плакатах в зданиях компании, на визитных карточках сотрудников; она служит источником постоянного вдохновения для работников “Medtronic”.

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Миссия компании “Medtronic”

Способствовать благосостоянию людей посредством применения инженерных разработок в области биомедицины при исследовании, создании, производстве и продаже устройств, облегчающих боль, восстанавливающих здоровье и продлевающих жизнь.

Цели бизнес-единицы (стратегические инициативы)

*Направлять наш рост в области биомедицинских инженерных разработок, где мы демонстрируем максимальные способности.

*Стремиться к максимальной надёжности наших изделий.

*Добиваться прибыли, позволяющей выполнять наши обязательства, поддерживать наш рост и достигать наши цели.

*Признавать личную ценность сотрудников.

*Поддерживать статус компании как “хорошего гражданина”.

Listening

Listen to the interview and make notes. Then speak about strengths, weaknesses, opportunities and threats of Marks & Spencer’s company.

You are going to hear Steve Kremmer talking about Marks & Spencer’s strengths, weaknesses, opportunities and threats. Marks & Spencer is one of the biggest and most successful retailers in the world. Michael Marks opened his first penny bazaar in 1884, in Leeds, England. Ten years later there were nine market stores, and Marks took into partnership Tom Spencer, the cashier of one of his suppliers. In 1926 Marks & Spencer became a public company. At that time they developed a clear idea of Marks and Spencer’s mission and purpose. Their later success was founded on this idea. They decided that the company was in business to provide goods of excellent quality, at reasonable prices, to customers from the working and middle classes. Providing value for money was their mission and purpose. One of the strategies they used was to concentrate on selling clothing and textiles. Later on, food products were added as a major line of business.

Case study

The Benson Group is a chain of department stores in the USA. Its chief competitors are HI-Mark and Levinson Brothers.

Read the information about Benson group and its rivals, speak about its strengths, weaknesses, opportunities and threats. Complete the company profile.

Benson faces uncertain future

Benson Inc., the department store group, announces this year’s annual results on

Wednesday. Once again, profits are expected to be well below expectations.

Benson built its first store in 1952. It now owns ten stores in the southern region of the United States, and two in Ontario, Canada. All the stores are on prime sites in the high streets of major cities. The Group’s head office is in Petersville.

Recently, Benson’s performance has been extremely disappointing. Two years ago, pre-tax profits had fallen just to $8.3m on a turnover of $225m. This year, profits are