Business and businesses Business Company firm concern Business is the production, buying, and selling of goods and

services A business, company, or firm is an organization that sells goods and services A business may also be referred to formally as a concern

The business of America is business Unless you understand how money flows through a business, you will not understand the operation Mr. Gatess boyhood pastime was computer programming. Today Microsoft, his company, is the worlds most successful supplier of computer software. Imagine Japan allowing ony to be only Japanese firm to ma!e a product li!e a "al!man. #u $ont, a chemical concern based in "ilmington, brings its e%tensi&e agricultural research staff to the pro'ect. enterprise free enterprise private enterprise commerce commercial A business may be referred to approvingly as an enterprise to emphasize its adventurous, risk-taking qualities, and business in general may be referred to in the same way, for example in combination such as free enterprise and private enterprise Business is also referred to as a commerce !his world, and its related ad"ective commercial, are often used to distinguish the business sphere from other areas such as government or the arts, or to distinguish it from non-money-making activities

There is now greater emphasis on terms li!e pro'ect and &enture, setting up an enterprise that will run for a time and then be sold on. Americans ha&e an ease with indi&idual enterprise and ris! that few (uropeans share. The preser&ation of a system of free enterprise is essential to economic freedom. Go&ernment in Malaysia has promised to reduce its interference in the economy and rely on pri&ate enterprise to pace economic growth. The go&ernments concern is to ensure that schools are teaching s!ills which are useful to industry and commerce. )angaroo hunting is not 'ust a hobby but a lucrati&e commercial business

1.

Business partners

Leaders School Ventures Community

# % & ' ( ) * an individual$s business activities, especially those for politicians a very large business organization specific money-making pro"ect, perhaps involving an element of risk an institution that awards qualification in business studies people involved in business in general heads of important companies who speak for ( as a whole the morale of all those referred to in ( and )

Interests Business Confidence

interests empire ventures school community leaders confidence

Empire

From multinationals to small firms corporation corporate multinational big business +arge companies are referred to as corporations, especially in the , Corporate is used to describe things relating to a corporation, in expressions +arge companies operating in many countries are multinational Big business can refer to large business organizations or to any business activity makes a lot of money that

small and medium- -mall companies are referred to a small businesses or small firms sized companies The outh depends more on small and medium*si+ed businesses for 'obs than on large corporations ,e decisions was ta!en to sell -$s three corporate 'ets. ome of the operations of a typical multinational are more global then others. In )orea, democracy has slowed some go&ernment decisions*ma!ing. -ut it was also cut the power of big business groups and the bureaucracy, in the process creating freer mar!ets and more opportunities for small business. $urism in ,ong*)ong is a big business. it is the third largest source of foreign e%change and employs, directly and indirectly, /01,111 people "omen run 23 per cent of e%isting small businesses, but 44 per cent of new businesses are now started by women. .... the small firms greatest handicap. not si+e, but loneliness. .... the south*west of Germany, a ha&en of small and medium*si+ed companies, or 5 Mittelstand as they are !nown. 2. Corporate partners

image strategy governance logo

# % & ' ( ) * .

collapses corporate ladder

image ladder performance culture governance strategy collapses logo

culture

the perception that people have of a corporation performance what corporate employees climb during their career company results over a period of time the values that people have and the ways that things are done in an organization the way a company is managed at the highest level plans that companies have maintaining and developing their position in the future company failures a symbol, usually showing the company$s name

a b c d e f g

Corporate collapses and associated fiascoes have exposed the failure of the auditing industry as a whole , not "ust the failure of individual audits /o single sub"ect has so dominated the attention of managers, consultants and management theorists as the sub"ect of corporate culture 0hile 0al-1at grew, 0alton was developing the practices that were to give the firm one of America$s most-admired corporate strategies 2uct, remaining one step ahead on the corporate ladder has been transferred to /ew 3ork as head of -ociety 4eneral in America 4ood corporate governance should be about stopping messes from happening, not "ust cleaning afterwards 5ew investors are prepared to look beyond conventional measures for assessing corporate performance All phone book are to have identical blue covers with the British !elecom logo 6t$s part of the corporate image

CORPORATE IDENTITY: THE EXECUTIVE UNIFORM

An e pensive advertising campaign can attract you to a company! its impressive "uilding #ill ma$e you glad you came! "ut if the first person you deal #ith is #earing a purple tan$ top and flared trousers! are you really going to ta$e them seriously % A uniform is the most personal manifestation of a company corporate identity! so companies specialising in ecutive career#earare putting #hite collar #or$ers and professionals into orporate suits

,here is often a certain amount of choice availa"le in terms of style and colour! so not everyone ends up dressed identically) (ut together! the effect remains coordinated) At the A""ey -ational not only ate corporate suits provided! "ut the corporate identity is carried into maternity #ear and for the special re.uirements of ethnic group) ))) ,he ma/ority of people #ho #ear corporate clothing are those #ho deal directly #ith the pu"lic! and the response from customers has "een very positive) ))) (ut #ho among the professionals #ould #ear company colours! and ho# are they persuaded to do so % ,he most recent ne#comers to corporate dressing are financial services companies such as "an$s and "uilding societies and the challenge is to find a loo$ that places everyone) )))

&ohn Leader! a 'idland (an$ "ranch manager #ears his dar$ "lue corporate suit "y choice) e can choose "et#een single* "reasted or dou"le*"reasted! and I alternate Industries "et#een and the sectors. t#o) +o#ever! I #ouldn #ear it out if I #as #ith a customer as I industry Business may be classified according to which industry they are in7 for thin$ it #ould "e example unfair for them to oil, "ebanking, seen food construction, sector -ector is sometimes used to mean industry in the same way, particularly by #ith someone #ho is o"viously a 'idland public sector specialists such as financial "ournalists, but it$s more often used to talk about "an$ man private sector different parts of the economy in combinations such as public sector and
manufacturing sector service sector private sector, or about types of business in expressions like service sector and manufacturing sector

Ardens customers are primarily in the pac!aging industry but also the electronics sector. Many people in the pri&ate sector had to ta!e &ery low pay increases this year. The 6rench go&ernment is thin!ing of introducing German*style wor!er participants into the state industries. This suggests that public*sector companies will not be free from political interference, a fact that deters pri&ate, profit*minded in&estors. 7il industry that has !ept the manufacturing sector going for much of this year is aircraft. Many young wor!ers are ta!ing 'obs in the rapidly growing ser&ice sector 8 ban!ing, computer programming, financial ser&ices.

Public sector and private nationalized nationalization privatization state-owned sell-off sell off utilities 0hen the state returns a company to the private sector in a sell-off, it$s privatized !his is privatization !he first to be sold off in a privatization programme are often the companies responsible for the public supply of electricity, water and gas8 the utilities 0hen a private company is bought by the state and brought into the public sector, it$s nationalized in a process of nationalization A nationalized company is a state-owned

-ritish 9ail stations worth about :/1 billion will be sold off under go&ernment plans to pri&ati+e the networ!. Malaysia is fi&e years into an initial pri&ati+ation program. To date, 22 go&ernment*owned concerns ha&e been pri&ati+ed, including lottery, a national airline and shipping companies, regional water utilities, highway construction pro'ects and a commercial T; station. Mo&ing e&en further from the wedish model, weden is to sell 43 state*owned companies. The sell*off could raise as much as <31 billion. Go&ernment inter&ention in manufacturing in&estments is a bad 'o!e in e&ery for*Gods*sa!e*lets pri&ati+e*it nationali+ed industry from -uenos Aires to 7ms!. Mr. alinas has undone two gross acts of confiscation, namely the nationali+ation of the ban!s in /=02. The other was the nationali+ation of the oil industry by >a+aro ?ardenas in /=40. The oil business is the biggest sacred cow of them all.

BIOTECH

OE!

"IT#Y

For all the talk about miracle drugs, the Stakes biotechnology industrys greatest successes have been financial,6fnot scientific$ shares Company A owns shares or equity in Company B, A has or holds a stake
equity holding Stoc$mar$et

"IT#Y

investors have sun$ 14 "illion into 6f A owns less than half the shares in B, it has a minority stake in B the "iotechnology industry over the past five shareholding years! despite the fact that most "iotech shareholder 6f A owns more than halffirms the shares in B, it has a ma!ority stake or controlling stake in B stake have yet to sho# a profit) -o# even 2all Street hold a stake is losing "iotech shares) So the ma"ority stake its taste for 6f you have shares in a company you are a shareholder controlling stake ever*inventive are concocting a industry3s minority stake sophisticated range of partnership deals #ith "ig concocting Such deals uncannily similar toraise more e@uity from its e%isting shareholders. 7ne companies) aircraft industry analyst said,are 5If G$A is to sur&i&e, it must the #ay that independent film producers raise uncannily < nieostro=ny! niesamo#ity The panish ban!s ha&e the sorts of lin!s with the corporate world that are typical of the German ban!s, with the ban!s holding money in +olly#ood) large sta!es in almost all the ma'or panish companies. ome of the ban!s ha&e begun to rethin! this situation.
The (iotechnologists position of the 6ayed brothers, of ,arrods, who shudderproprietors at the comparison! "utha&e held a /1A shareholding in ears for years, is becoming &ery interesting.

holing or shareholding in B

shudder < dr=enie! #9dryga> si? to /3A The ris$y &ery rich Marc 9ich is to retire from the business (oth he founded /3 years ago and will reduce his controlling sta!e "usiness and that of ,inselto#n) within fi&e years.

there are parallels "et#een the economics of their

industries have to spend gigantic sums developing cover their costs! let alone ma$e a profit)

products long "efore it is sta!e clearin #hether they Mc$herson always ta!es a ma'ority the business he#ill in&ests in and he li!es a hands*on role in the management.
(urocom has been attempting to raise its minority sta!e in "?9 s as business to a ma'ority.

(oth involve lengthy periods of #aiting) A film usually ta$es five years to pay "ac$ its investors! #hile a drug may ta$e eight years) And "oth industries rely on a fe# "loc$"usters to pay for an enormous num"er of failures) ,hus! less than 145 of the 1144 million it too$ to ma$e ,erminator 2 came from the film3s producer! Carolco 6ictures7 the rest came from a cluster of different sources! including Colum"ia ,ri*Star! #hich distri"uted the picture to American movie theatres! and Canal*6lus! a 8rench ca"le*,V company) 'any "iotech firms are financing their research in a similar #ay) &oel 'arcus! a Los Angeles la#yer #ho speciali9es in the "iotechnology industry! 0 descri"es a typical "iotech firm as one needing 1244 million to "ring its first drug to mar$et) :nly 1;4 million if this comes from the sale of shares)

"loc$"usters * su$ces

cluster < grono! u$@ada> si? grupami

Another 124 million is raised "y conducting research for other companies) (ut 1144 million comes from a corporate partner! usually a "ig drug firm) It either pays cash! even "efore a drug is out of the la"oratory! or it underta$es to perform the costly chores of testing and manufacturing it in e change for mar$eting rights) In 1B;0! &ohnson 1 &ohnson pic$ed up nearly all the mar$eting rights to three Amgen drugs! including E6:! a treatment for anaemia #hich has since "ecome a "loc$"uster) ))) Since then Amgen has #on ever "etter ! and every more complicated! deals #ith its partners) ))) Amgen3s success reflects the gro#ing clout of "iotech firms #ith the #orld3s "iggest drugma$ers! #ho are afraid that the "iotech industry #ill s#eep a#ay many of its money*spinners #ith ne#! une pected treatments) Even #hen a "ig drug firm "uys a controlling sta$e in a "iotech firm! it3s usually careful to let the firm3s founders continue to run it) 2hen +offman*Laroche "ought a A45 sta$e in Cenentech in 1BB4! it demanded only t#o of Cenentech3s 13 "oard seats) ))

chores

clout

money-spinners 9 pieni:;na prz<dka

Parents and sisters 2olding company subsidiary wholly-owned A holding company or holding is one that holds stakes in one or more subsidiaries 6f it owns all the shares in a subsidiary, the subsidiary is a wholly-owned one

parent company A holding company$s relationship to its subsidiaries is that of parent company, sister company and the subsidiaries$ relationship to each other is that of sister companies A brother-sister holding and its subsidiaries form a group companies group A conglomerate is a group containing a lot of different companies in different conglomerate business =ournalists also refer to large groups as giants giant Bewspaper $ublishing, the holding company which owns the daily and unday Independent titles, announced the plans to increase the panish sta!e as part of a range of financing options.

Mr. 6it+patric! did not gain control of Goodman ,olding, the Irish*registered parent of the ma+e of Goodman companies, until last 6riday. Goodman ,olding has subsidiaries in >iechtenstein and the ?hannel Islands, which control in&estments around the world General Motors is, in effect an 5alliance in which the principal partners are not merely wholly*owned subsidiaries, but elements within a single integrated management structure. Toyota is a much looser confederation. 7a!land tries to a&oid contrasts with companies that it lists as doing business in outh Africa. The list co&ers companies with license agreement, though it still doesnt touch brother*sister companies The fate of the sportswear company Adidas was decided yesterday. The 6rench businessman -ernard Tapie has sold his controlling sta!e in the group to a group of in&estors for #MC/3 million. $eaarson a publishing*to*tableware conglomerate that controls the 6inancial Times, $enguin boo!s and 31A of The (comonists, bid for Thames Tele&ision, -ritains biggest independent T; producer, Thorn (MI, a music*to*lighting group accepted, agreeing to sell $earson its 3=A sta!e in Thames for <== million.

A%orti&e ' [ nieu(an)] Conteste( ' [ sporn)] Derisor) , Ina(e1uate ' [ niea(e2/atn)] !/eetene( , [ pr4es5o(4on)]
"bortive ] Unso3icite( , [ nie usi3nie pros4on) Contested #erisory If a bid is Inade$uate S%eetened &nsolicited &n%elcome it is

unsou*+t , [ niepo-.(an)] un/ante( , [ niec+cian)] 0ou*+t a*ainst insu3tin*3) 3o/ not enou*+ unsuccess0u3
&nsuccessful Fought against Insultingly lo% 'ot enough Improved &nsought &n%anted

(aunching a bid take over !here is excitement when Company > is attempting to gain control of takeover takeover bid, perhaps by increasing its holding or stake in takeover bid Company 3 if it already owns shares in 3 takeover target launch a bid Company > makes or launches a bid against Company 3, the takeover target hostile bid 6f Company 3 doesn$t want to be taken over, the bid is hostile ac$uire ?ther ways of saying that one company is taking over another are to say that make an acquisition one company is acquiring another or making an ac$uisition bid ) ofero%ana cena To!ay, the worlds oldest wine appellation, is being ac@uired by a Japanese distiller and a 6rench insurance group Made&a, the fast*growing pharmaceuticals group, rose /=p to 22Dp on the news that it has made another ac@uisition in America. Made&a is to buy Adams >aboratories, a Te%as drug manufacturer, for <EE.2 million. TT Group , the pac!aging company, has launched its second hostile ta!eo&er bid in little more than a year, with a <C.0 million offer for Magnetic Group, the magnetic components manufacturer. TT won a long running battle for ?rystalate last August. The 4EE share offer is e@ual to the price paid by TT on Thuesday for a =.D per cent sta!e, bringing its total holding in the target company to /C.2 per cent. This compares with a mar!et price of D/p before and after the announcement of the bid. Magnetics board re'ected the bid as 5derisory, unsolicited, unwelcome and totally inade@uate. Predators raiders and %hite knights predator !he takeover process is often described in terms of one animal hunting another8 a company or individual seeking to take over another company may raider referred to as predator, and the target company as the prey corporate raider @redators are also referred to as raiders or corporate raiders prey be Company > in a

The company, and the sector, ha&e deep problems to cope with and an uncertain future ahead. In their present state, they are sitting duc!s for (uropean or American predators loo!ing for an entree to the -ritish insurance mar!et. The group could fall prey to one of the industrys hungrier predators. >ee Iacocca, ?hryslers boss, e%plored the possibility of a ta!eo&er of General Motors, on behalf of a corporate raider in /=0E, but dropped the idea after deciding 5it might be easier to buy Greece. *n behalf on ) na kor+y,- % spra%ie fend off a bid A company wishing to resist, %ard off, or fend off being taken over has a %ard off a bid number of options poison pill %hite knights greenmail %ard off ) uchyli- .cios/, 6t may plans that give existing shareholders special rights, or it may make itself less attractive to bidders by selling off a valuable part of the company, or holding on to an unattractive one Actions like these are poison pill ?r it may persuade a friendly partner, a %hite knight, to take a stake in the company, thus preventing a complete takeover by a hostile bidder Bidders may agree to withdraw their bid if paid enough money for the shares they hold in the target company !his is greenmail

The agreement will help Ba&igation Mi%te fend off potential raiders. >ondon "ee!end Tele&isions attempt to attract a white !nights to help it ward off the unwanted ta!eo&er bid from Granada has collapsed. U "est, the giant U telephone company and one of the largest cable operators in the U), was interested in a sta!e of 2=.= per cent in the >ondon IT; company 8 the largest amount possible without triggering a full bid. trigger ) cyngiel hamulec U merchant ban!s do not appear attracti&e at the moment. Indeed, T- s chairman, ir Bicholas Goodison, perhaps should consider holding on to ,ill amuel. it is a poison pill against predators who might want to swallow the whole group. s%allo% ) po0yka... greenmail transactions, in which the target of a takeover attempt buys off hostile bidder by repurchasing any shares that it has acquired. Greenmail means that these shares are repurchased by the target at a price which makes the bidder happy to agree to leave the target alone.

(everaged buy1outs and !unk bonds. .lever ) d2%ignia3 !unk ) stara %o0o%ina 3 leveraged buy ) out (B*

bond ) obligac!a +obo%i4+anie/

6n a leveraged buy1out, or (B*, a company is acquired by a group of investors, often financed by heavy borrowing !he debt is then paid out of the target company$s operating revenues or by selling its assets revenue ) doch5d .pa6st%o%y/

!unk bonds

!he borrowing involved in +B? is often hihg-risk debt called !unk bonds. +B?$s financed by "unk were frequent in the #A.Bs and after an absence following the excesses if that period, they are now occurring again occurring ) pr+ychod+i- na my,l +dar+a- si7

8Just business e%plains many business issues usually shrouded in mysticism and emoti&e language. 6or instance it made me feel at home with 'un! bond for the first time. These are simply fi%ed*interest securities with less than in&estment*grade le&el rating. They are in themsel&es a borrowing instrument, which are neither good or bad, but ha&e ac@uired a bad name because if their use in certain criminal transactions. Shrouded ) okryty ca0unem o%ini7ty Shrive shrove shriven ) %yspo%iada- i daro+gr+es+enie An e%ample of a solid company that seems to ha&e thri&ed on the strength of 'un!*bond financing is 6M? ?orp., which ma!es armored and other military e@uipment. In /=0C, the company, its shareholders and employees bought out its stoc!s in a le&eraged buy*out financed by 'un!. 9hrive throve thriven ) uda%a- si7 mie- po%od+enie "rmored ) pancer+ +bro!a

ACEFISI,I:- VIA &F-G Huring the 1B;43s! ne# issues of /un$ "onds multiplied tenfold as more and more companies issues large .uantities of lo#*grade de"t to finance ta$eovers or defend themselves against "eing ta$en over) ,he development of this mar$et for lo#*grade corporation "onds #as largely the "rainchild of the investment "an$ing firm Hre el (urnham Lam"ert) ,he results #as that for the first time corporate midgets #ere a"le to ta$e control of corporate giants! and they could finance this activity "y issues of de"t) +o#ever
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