- •1. Four basic factors necessary for any business. Give the arguments for (or against) the statement that business is essential for all economies.
- •2. Advantages and risks of entrepreneurship. How would you initiate the business if you were an entrepreneur?
- •3. Similarities and differences between a sole proprietor and a partnership.
- •4. Favorable and unfavorable points of a corporation. Which of the three businesses would you prefer to work for?
- •5. The difference between intermittent and continuous production.
- •6. Which method of production would you choose for a) custom-made goods and b) standard goods? What are the most important factors in these methods?
- •7. What two methods do employers use to select applicants for an interview? Suppose you are to employ a manager for your firm. Which method would you use?
- •8. The functions of the personnel department. Your first steps as the Head of the pd if you happen to be appointed to this post.
- •9. The general concept of marketing, its constituent parts. Types of markets.
- •10. Modern marketing – new principles.
- •11. The function of distribution from the view of a business manager. The role of a middleman in distribution.
- •12. The distribution system from the view of a customer. Different types of retail outlets.
- •13. The concept of promotion, its main activities. What type of advertising would you use for promoting a new kind of product your firm has just launched?
- •14. Personal selling – what way does it differ from other forms of promotion? Try to persuade a foreign firm to buy a new passenger airliner constructed in Russia.
- •15. Two types of sales promotion activities. What would you do to promote a new type of tea or coffee?
- •16. Interdependence of promotion and market situation. What would you do if the market turns out to be saturated with your goods?
- •17. Four aspects of international business. What is the main difference between Smith’s theory and Ricardo’s theory?
- •18. Discuss the activities of an exporting company and the reactions of the country importing products. How should the country protect its domestic industries?
- •19. The importance of computers. Your opinion about the advantages and disadvantages of using computers. The prospective ways of computer development.
- •20. Types of layout. Compare product layout and process layout.
12. The distribution system from the view of a customer. Different types of retail outlets.
Channel of distribution is the route or way that a product travels from the manufacturer to the consumer. It includes all the middlemen, transportation companies, warehouses and other. Available forms of distribution vary from direct sale to using one, two or more intermediary channel levels. The simplest form of distribution and probably the least expensive for customers is direct sale. However, more often distribution involves several middlemen. The reason middlemen are needed is that we may desire many products from various manufacturers, but each of the products may be manufactured in different part of the country and we simply can’t purchase every item from the producer. So we need to be able to purchase different quantities of these items at one place that is convenient for us. Middlemen deliver and transport products to where they are needed and thus they give products place utility. It can increase the products price. The more middlemen the product has passed through, the more expensive the product is.
The channel of distribution depends on the type of the consumer products. There are two major types of products – convenience goods and shopping goods. Convenience goods usually have lower price and can be found at several convenient locations. For instance, as a rule we go to the closest place to buy chewing gum, chocolate, and soft drinks. In this case, convenience is even more important for us than price. To say it in other words, we are willing to pay for place utility. Such convenience goods can be found at supermarkets, stores, cinemas, and so on. Shopping goods generally cost more than convenience goods and require more consideration of price and quality. For example, when we are shopping for some home appliance we consider several different models and different shops to compare quality and price before making decision about a purchase.
Shopping goods can be found at various retail outlets [stores]. A full service retail sore is one where sales staff wait on [help] customers and can explain to them the various aspects and features of the product. The product is generally on display. The cost of space and commission are added to the cost of the product.
Another type of retail outlet is a discount house, where products are offered at a lower price. It may be caused by several reasons – either there is a small sales stuff, or the store can be situated in a warehouse where rents are lower, or they may not have the large selection of brands and lines.
Larger types of retail outlets are franchise stores and chain stores. A franchise store is owned independently, but operates under a franchise or license from a parent company. The franchisee pays a fee for the license and a certain percentage of the total sales to the parent company. In return, a parent company supplies products and provides advertising. The main difference between a chain store and a franchise store is that the chain store is owned by the parent company.