Completely new – innovative

Firm – venture
Existing rivals – established competition
Ask costumers if they like it – do market research
Well founded – valid
Possible to carry out – feasible
New business – start up
Money – capital
Wrote down what he wanted to do – drew up a business plan
Ask for money – ask for a loan
Rich people with money who invest in his firm – business angels
Ask money form the government – ask for a government grant
The cheapest loan possible – interest-free
A business plan is a guide—a roadmap for a business that outlines what a
business’s goals are and details how these goals will be achieved
Company structure
UP

DOWN

Boss
senior
director
superior
manager

Subordinate
junior
assistant
worker

The Area Sales Manager reports to/ is responsible to/ is accountable to the
Head of Sales.
The Marketing Manager reports to/ is responsible to/ is accountable to the
Managing Director.
Human Resources are responsible for/ are in charge of employing staff.
Our team of sales reps is responsible for/ in charge of the Sales and
Marketing Department.
Interns may also be called to assist /support the head of the Budget
Section in monitoring the status of projects.

Hierarchical structure
Definition: One person or a group of people at the top and an increasing
number of people below them at each successive level

(e.. Conflicts between departments Decentralized structure Large organizations making a range of products are often further divided into separate operating division Separate operating divisions. e. organization along product lines. only (not co. conflicting loyalties Team / Project oriented Definition: temporary groups responsible for 1 project -> split up Advantages: Autonomy. Philips Healthcare.All know their place.g. territory or clients. Efficiency (experts grouped together) Disadvantages: concern for success of dept. motivation Disadvantages: Decision making can be difficult. matrices) Definition: People report to more than one superior Advantages: Motivational: Authority and autonomy at lower levels too.. marketing. finance. Philips Domestic Appliances and Personal Care Matrix structure (pl.Advantages: Clear chain of command . the kind of decisions they can make Disadvantages: Activities can be too complicated for a single hierarchy. no responsibility on lower levels (not motivating) No unplanned collaboration Functional structure Definition: Business organized according to function or role. relational problems. to encourage collaboration within the company . HR) Advantages: Easier management than large hierarchical structure. Philips Lighting. only small and self-disciplined teams with a strong leader function well Flat or horizontal organizations Why are companies flattening their hierarchies? Motivation: managers delegate responsibilities and decision making to staff.g.). Experts from different fields collaborate Disadvantages: matrices involving several departments are too complex. slower decision making.

safe working conditions. sales. looks after issues related to marketing. promotion Self-actualisation Training opportunities. Safety needs Job security. preparing budgets and monitoring expenditures and costs. controlling workers. reduced need for administrative staff due to advanced IT systems Chief Operations Officer: Responsible for the corporation's operations. challenging job Overseeing workers . runs the Board and maintains communication with the CEO and high-level executives Chief Executive Officer: responsible for the entire operation of the corporation and reports directly to the chairman and board of directors.Cutbacks: companies economize in recessions. interesting. Allowing staff to gain qualifications at work. reporting financial performance. Leader of the corporation. creative job Responsibility Recognition Promotion . (Other name: Managing Director) Chief Finance Officer: Also reporting directly to the CEO. status symbols like cars. offices and new job titles. Maslow’s hierarchy of needs at the workplace Physiological needs a fair wage. he is responsible for analysing and reviewing financial data. telling them what to do Pay rise. order. social facilities like a club or sports pitch Esteem needs how others see us at work. production and personnel. promotion.supervising. direction Social needs team work. a meal and rest facilities. bonus – monetary incentive The opposite of threaten – reward Motivators Hygiene factors Influence the context of work Good labour relations Help employees’ psychological growth A challenging. and breaks.

Good working conditions Good wage or salary Job security Job safety Benefits .

and the basic marketing course is a product item. take on Dismiss – fire. lay off. All the courses a university offers constitute its product mix. make redundant. Brand recognition – be able to recognise a brand Brand loyalty – be loyal to a brand Brand switching – change brands regularly The sale of two or more competing brands by the same marketer. courses in the marketing department constitute a product line. Marketing mix: product. These sometimes appeal to different segments of the market. promotion and price + people.To employ – appoint. To acquire greater market share. Why? To acquire more shelf space. let go A legal technique for the resolution of disputes outside the courts arbitration A council composed of both employer and employees convened to discuss matters of common interest. engage. To attract brand switchers by offering something new. physical evidence and process . similar to a court – a tribunal A complaint – a grievance Resolve problems Solve an issue Call a strike Take industrial action Have a complaint Grievance procedure Products mix the total sum of products offered by a particular organization. sack. To motivate the workers inside the company by creating internal competition. It consists of both product lines and individual products. – a works council An organisation with powers to hear disputes and make decisions. In other cases one brand may ‘cannibalize’ another. hire. place.

coaching. the aim is to sell unnecessary VOCABULARY BUSINESS PLAN – a document drawn up to show how a business is planned to work INTEREST-FREE GRANTS – money given by government to help pay for something without calculated percentage for the use of the money borrowed VENTURE – a business project or activity that involves risk VENTURE CAPITAL FIRMS – an investment company that invests capital in potentially risky but profitable start-ups for above—average returns BUSINESS ANGELS – a rich investor who provides capital for a start-up in exchange for ownership equity or a stake in the company ENTREPRENUER – a person who sets up. personal selling and sales promotions Factors that determine the type of promotional tools used: 1) The size of the company’s budget and the cost of each promotional tool 2) Market size and concentration Small market – personal selling Large market – advertising 3) Customer information needs Lots of information and after-sales service needed – personal selling Little info – advertising Personal experience of the product – sales promotion 4) The stage in the product life cycle. capital.getting the right goods to the right people. advertising. common services and networking connections VALIDITY – the state of being legally or officially acceptable STAKE – the amount that someone has invested in a company often . in the right place. taking into account the possible negative and positive outcomes before investing too much money and time INCUBATORS – an organisation designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services that could include physical space. Marketing . owns and directs a company and takes commercial risks FEASIBILITY – ability to complete a project successfully. with the right level of communications profitably. at the right time.Promotional tools: public relations.

expressed as a percentage of the total share capital SHARE CAPITAL – money invested in a business in the form of shares COMPETITIVE ADVANTAGE – what an organisation can do better than its competitors A SUSTAINBILITY – able to continue over a period of time SALES PROJECTORS (FORECAST) – the sales business expect to achieve in a particular period of time BREAK-EVEN POINT – where total costs equal total income from sales and the company makes neither a profit non a loss REVENUE – the total income received by a business before any expenses are paid EXIT STRATEGY – an investor’s plan for getting their investment back and potentially realizing a profit FOUNDERS – the people who establish a company EMPLOYEES – the people who are employed in an organisation LINE AUTHORITY – a system of authority with different levels. able to take decisions without consulting someone at the same level or higher in the chain of command HIERARCHY OF CHAIN OF COMMAND – the power to give instructions to people at the level below in the chain of command TO REPORT TO – to be responsible to someone and to take instructions from them TO DELEGATE – to give someone else responsibility for doing something instead of you CONSULTANT – a person who provides expert advice to company CRISIS – a situation of danger or difficulty INNOVATION – a new idea or a method OBJECTIVE – something you plan to do or achieve PROMOTION – when someone is raised to a higher position PUBLIC SECTOR – the section of the economy under government control STRATEGY – a plan for achieving success SUBORDINATE – a person with less important position in an organisation REFERENCE LETTER – statements of former employers or teachers about your character and abilities LABOUR RELATIONS – relations between the management of a company and its workers OUTLETS – places of business for selling goods to costumers PRODUCT MIX – all the different products. brands and items that a company sells . one above another FUNCTION – a specific activity in the company AUTONOMUS – independent.

and know its name SHELVES – surfaces in a store on which goods are displayed MARKET SHARES – the sales of a company expressed as a percentage of total sales in a given market BRAND SWICHERS – consumers who buy various competing products rather than being loyal to a particular DISTRIBUTION CHANNEL – all the companies or individuals involved in moving goods or services from producers to consumers WHOLESALER – an intermediary that stocks manufacturers’ goods and sells it to retailers and professional buyers MARKET SEGMENTATION – dividing a market into distinct groups of buyers who have different requirements or buying habits PRODUCT DIFFERENTIATION – making a product appear to be different from similar products offered by other sellers ( advertising. packing ) MARKET OPPORTUNITIES – possibilities of filling unsatisfied needs in sectors in which a company can profitably produce goods or services MARKET SKIMMING – setting a high price for a new product to make maximum revenue before competing products appear on the market SALES REPRESENTATIVE – someone who contacts existing and potential customers and tries to persuade them to buy goods or services PRODUCT FEATURES – the attributes or characteristics of a product. shape. price PRICE EALSTICITY – the extent to which supply or demand of a product responds to changes of price MARKET PENETRATION – the strategy of setting a low price to try to sell a large volume and increase market share ADVERTISING AGENCY – companies that design advertising for clients ADVERTISING CAMPAING – the advertising of a particular product or service during a particular period of time BRIEF – the statement of objectives that a client works out with an advertising agency TARGET COSTUMERS – a defined set of costumers whose needs a company plans to satisfy ADVERTISING BUDGET – the amount of money a company plans to spend .RETAILER – businesses that sell goods to individual costumers LOGO – a graphic image or a symbol specially created to identify a company or a product PACKAGE – wrappers and containers used to enclose and protect a product BRAND RECOGNITION – the extent to which costumers are aware of a brand. such as size. quality.

public awareness increases and sales volume rises .costs are high .product’s features may have to change because of competing brands -> new costs .sales volume peaks . profitability increases . analysing and reporting data relevant to a specific marketing situation POINTS OF SALE – places where goods are sold to public PRODUCT CONCPET – an idea for a new product.promotion emphasises product differentiation . which is tested with the target customers before the actual product is developed SALES REPRESENTATIVE – someone who contacts existing and potential customers and tries to persuade them to buy goods or services INTRODUCTION STAGE . costumers have to be persuaded to try the product .prices might have to be reduced because of competitors but also companies try to defend their market share while maximizing profit .the price can remain unchanged because demand is increasing .promotion is aimed at educating potential customers and building product awareness GROWTH STAGE .low sales volume.promotion is aimed at much broader audience MATURITY STAGE .costs are reduced.high skim pricing to recover development costs or low penetration pricing to build market share . when satisfied customers recommend products to their friends VIRAL MARKETING – trying to get consumers to forward an online marketing message to other people TO LAUNCH A PRODUCT – to introduce a new product onto the market MARKET RESEARCH – collecting.in developing its advertising and buying media time or space MEDIA PLAN – the choice of where to advertise in order to reach the right people COMPARATIVE-PARITY METHOD – choosing to spend the same amount of money on advertising as one’s competitors SAMPLE PRODUCT – a small amount of product given to customers to encourage them to try it WORD-OF-MOUTH – free advertising.

as a result. while. owing to. due to. yet . that's why. since CONTRAST on the contrary. besides REASON because. moreover. because of.no promotion PRODUCT IS WITHDRAWN FROM THE MARKET ADDITIONAL INFORMATION and. but. thus. despite.the price is maintained or greatly reduced to liquidate stock if the product is discontinued .either cost are too high compared to sales so the product is discontinued or the company reduces costs to minimum . on the other hand PURPOSE so that. furthermore. in spite of. so. even though. whereas. consequently GIVING EXAMPLE for instance. in addition to. however. nevertheless.DECLINE STAGE .sales volume begins to go down . for example CONCESSION although. in order to RESULT/CONSEQUENCE therefore.