Human resources department

D. Five of the departments in a box are described below. Fill in the gaps with the department names.

Finance department IT department Sales & Marketing department Production department Purchasing department HR department

1. … deals with employees, for example, selecting and recruiting staff. It is also responsible for organizing training to make sure the staff has the skills to do their work efficiently.

2. … is in charge of manufacturing the products and keeping the company’s production facilities running efficiently. Another responsibility is checking and improving quality standards.

3. … deals with the day-to-day running of the company’s computer systems and solves problems when they go wrong. It also designs information systems for the different departments.

4. … is in charge of sourcing (buying) any materials, equipment or components the production department needs to make the products. This involves finding suppliers and negotiating prices and delivery terms.

5. The main responsibilities of … are finding out what products the customers want, how and where to promote them, and at what price. This involves carrying out market research – collecting and analyzing data on their current and potential markets. They are also in charge of researching new ideas for products.

E. The job titles in italics don’t match the responsibilities. Correct them.

1. The Accountant deals with calls to the company.

2. The Managing Director buys equipment the company will need.

3. The Brand Manager is in charge of hiring new staff.

4. The Director of Human Resources manages the whole company.

5. The Switchboard Operator prepares financial reports.

6) The Purchasing Manager is responsible for marketing one of the company’s products.

F. The organization is in trouble. Match the departments with their problems (1-8).

Distribution Department Personnel ~

Research ~ Finance ~

Public Relations ~ Production ~

Marketing ~ Information Technology ~

1. One of the robots on the assembly line has stopped working.

2. Cash flow is much worse than I thought.

3. There’s a national newspaper on the phone. They want to talk about water pollution near the factory.

4. There’s something wrong with the network: all the screens have gone blank.

5. We have ten lorries waiting outside the main warehouse and there’s nothing to put in them.

6. The unions have just asked for another 10%.

7. If we don’t start producing some more useful ideas soon, they’ll close down the laboratory.

8. The latest survey shows that the majority of 18-to 25/year-old women think our perfume smells terrible.

Listening: Company Structure

(Market Leader, New Edition, Intermediate Business English CB by D. Cotton, Unit 3)

Over to you

Setting up a successful business requires careful preparation and planning. There are a number of questions that all entrepreneurs must ask themselves concerning the products or services that they intend to sell, the competition that they will face, the structure of the business itself and the sources of finance that they will need to open their new venture. This means that all of these parameters must be defined in a business plan: a document that shows how the entrepreneur will organize his or her business, how much he or she expects to sell and where the capital will come from. Once this information has been put down on paper, the entrepreneur can then choose an appropriate form for the company, register it with the authorities and open a business.

A. Study the Business plan checklist.

Details of the business	Name of business Type of business (limited company, partnership etc.)
Personal details	Relevant work experience
Personnel	Number of people /job function
Product / service	Description
Market	Describe your market. Who are your customers? Is your market growing, static or in decline? Who are the main competitors? What are the advantages of your product or service over the competition?
Marketing	What sort of marketing or advertising do you intend to do?
Premises / machinery / vehicles	Where do you intend to locate the business and why? What sort and size of premises will you need? What machinery / vehicles do you require?
Objectives	What objectives do you have for the business

B. Read these extracts and decide which sections of the checklist above they come from.

1. At first I will be concentrating on getting the business into profit. But if I am successful I would then consider looking for other sites in the city area and expanding the management team. Eventually it might be possible to set up shops in different locations around the country.

2. Retail outlet selling a wide range of specialist teas and tea-related giftware. Sales will be made direct to customers and also by mail order.

3. Two full-time sales staff for the shop. One personal assistant to do secretarial work and general office administration.

4. I plan to advertise on local radio and in the local press and free press. This will be complemented by flyers distributed directly through letterboxes to residents in the area.

5. I have already worked as an employee in two different companies, where I was involved in both marketing and customer service at junior management level.

6. The Tea Set. Initially the business will be registered as a limited company with ten shareholders.

7. In a street with pedestrian access only, which leads into the main shopping area and market square in a town of 70,000 inhabitants. The shop is also close to the station, which is used by several thousand commuters daily. The surface area is 45 square meters at a rent of 1000 Euros per month.

8. It is not easy to give a precise estimate but it would seem to be essentially passing trade within the shopping area. The target consumer is middle-aged and with a comfortable income. There is no competition in the area as the concept for this type of shop is new and comparable products are not currently available in other outlets.

C. You have decided to set up your own business together and have approached the bank for advice. They have asked you to prepare a business plan.

Module 2 Alliances

Strategic alliances enable companies to share resources. This creates synergies or advantages and leads to increased market share and greater competitiveness. Public companies hope to increase shareholder value when they form alliances. There are many kinds of corporate alliances. Corporate partnerships or joint ventures are formed when two or more companies decide to cooperate on one particular projector mission. When companies join together it is called a merger. When one company makes a successful takeover bid to buy another one, it is referred to as an acquisition.

Reading 1: Mergers and Acquisitions

One plus one makes three: this equation is the main idea of a merger or an acquisition. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. Strong companies will act to buy other companies to create a more competitive, cost-efficient company. The companies will come together hoping to gain a greater market share or to achieve greater efficiency. Because of these potential benefits, target companies will often agree to be purchased when they know they cannot survive alone.