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UNIT 2

TYPES OF ORGANIZATIONS

Exercise 17. Classify the following industries as primary, secondary, or tertiary.

Agriculture; commercial fishing; government activity; hotel industries; mass media; mining; public education; public health service; railroad; retail stores; the aerospace industry; the airline industry; the armed forces; the automobile industry; the banking; the beverage industry; the clothing industry; the construction industry; the electronic industry; the engineering industry; the food processing industry; the forest industry; the gas industry; the heavy machinery industry; the manufacturing industries; the music industry; the oil industry; the restaurant industries; the steel industry; the textile industry; the trucking industries; the woodworking industry; tourist industry; trash disposal.

Exercise 18. Define the type of relationship existing between the following people in RAYCON Ltd (chart p. 39).

  1. Assistant Work Manager – Supervisors

  2. Chief Designer – Personnel Manager

  3. Managing Director – Company Secretary

  4. Marketing Manager – Sales Office Manager

  5. Personnel Director – Administration Manager

  6. Personnel Director – Works Manager

  7. Production Director – Progress Chaser

  8. Production Manager – Production Planner

  9. Production Planner – Publicity Manager

  10. R&D Director – Chief Designer / Chief Researcher

  11. R&D Director – Financial Director

  12. Sales Manager – Area Sales Manager / Area Office Manager / Sales Office Manager

  13. Sales Manager – Production Manager

  14. Supervisor – Representative

  15. Works Manager – Assistant Works Manager

Exercise 19. Match each definition in column B with the proper name in column A.

A

B

1

Partnership

a

firm based in a tax haven to avoid higher taxation

2

Minority inter­est

b

company in which another firm has less than 50 per cent interest

3

Society

c

organization which is part of the state ad­ministration

4

Enterprise

d

company owned by the state

5

Limited com­pany

e

company whose shares are publicly avail­able

6

Cooperative

f

firm owned by a parent company

7

Multinational

g

company whose shares are not publicly available

8

Parent com­pany

h

organization operating to make profit

9

Subsidiary (affiliate)

i

friendly association of people, for example, a sports society (society = firm)

10

Holding com­pany

j

firm, usually without commercial activity, created to be parent to other companies

11

Public com­pany

k

company which owns another

12

Private com­pany

l

two or more partners working together for profit, without limited liability

13

Nationalized company

m

organization to relieve poverty, advance religion, or education, etc. benefits from some financial conclusions

14

Government agency

n

firm where shareholders’ liability is lim­ited

15

Charity

o

democratic firm owned by its workers

16

Offshore company

p

organization operating in several countries

Exercise 20. Who’s responsible for Business Systems?

Below is a diagram showing the structure of a ‘mixed’ type of multina­tional company based in the USA: some activities are organised into do­mestic, regional and international divisions, other into world-wide divisions.

Chief Executive Officer (CEO)

Domestic Domestic World-wide Pacific International Corporate

Telecom- Business Defence Division Division Staff

Munications Systems Systems (Telecommu- (Telecom- (Corporate

Division division Division nications and munications Planning,

Business and Business etc.)

Systems) Systems other

than in the

Pacific region)

Now write questions and answers using responsible for/comes un­der.

Example: Who’s responsible for Business Systems in the Pacific? – That comes under the Pacific Division.

a) Corporate Planning __________________________________________________

b) Defence Systems in Africa ____________________________________________

c) Telecommunications in the USA ________________________________________

d) Business Systems in Europe ___________________________________________

e) Telecommunications in SE Asia ________________________________________

Exercise 21. You’ll have to see the Production people about that!

Below is a part of the structure of your company. It is a medium-sized subsidiary of a UK parent company.

Board of Directors

Chairman

Managing Director

Members of the Group Internal Audit team are visiting your firm, and you must help the auditors by answering their ques­tions.

Example: You hear: I have a question about the company’s sales budget.

You reply: You’ll have to see the Sales people about it.

a) I have a question about the company’s sales budget.

b) Could you help me? It’s about last year’s development costs.

c) I’d like to know exactly when you delivered these goods.

d) Our Computer Audit team wants to visit you soon. Who should I ask about it?

e) Do you have purchase contracts with all your suppliers?

f) I’d like to discuss these cash-flow forecasts. Who do you think could help me?

Exercise 22. Who’s the boss?

The following diagram is called an organization chart (or family tree). It shows the chain of command in organization. We can say that the Vice-President, Corporate Development is responsible to/reports to the President and Chief Executive Officer.

Rockbridge International Corporate Organization

Chairman of the Board

President and Chief Executive Officer

Can you make similar statements about the chain of command, by completing the following sentences?

  1. The Vice-President, Finance ________________________

  2. The President, Automotive Operations _______________________

  3. The President and Chief Executive Officer _____________________

  4. The Senior Vice-President, Corporate Staffs _____________________

  5. The Chairman of the Board _______________________________

Exercise 23. Study some of the language used to describe an organization in terms of: hierarchy; responsibilities/functions, titles, affiliates, structure.

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