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DCR Nio Ee ‘ i Practical English for International Executives Pons Unit 7 CONTENTS Page Introduction 4 Arrivals p29: 2aiv(2) 1 anpudere dy opeterberew ; Making contact ferxepuen ve eee mnge ne 2 The sales meeting ?evotaw fry ee’ DE 38 Terms and contracts oitetee GO°PEE «we TPORTO 6g Finance £ 40) 2 Bg) euveret, 1 The production meeting rprjrdosernd Heeper, 94 Talking about companies 99 "¥4GPrr o Kew~7ouecsy 114 After hours we qgotbnweePeceecer yg | 141 L 4 2hebcs.) Keeping in touch 157 Sorting out problems 171 Summary of structures 187 Datafiles Numbers; British and American English; Graphs 190 Index 192 EI How can I use this language pack? What is in a Unit? Introduction You can use it in three ways: 1 To prepare for a certain situation: for example, making a presentation in English. In this case, use the Index on page 192 to find the pages about presentations. Exercises and Datafiles will help you prepare your presentation. 2 For reference: for example, a language point such as the passive form. In this case, use the Index to find the pages where the passive form is explained and practised, Language structures also appear in the Summary of structures on pages 187 to 189. Numbers, graphs and American terms also have special reference sections, see pages 190 and 191 3 As a business language course. By working through the exercises and Datafiles in Units 1 t0 10, you will: = cover a wide range of business situations; = meet and revise all the language points in the pack. Exercises Some exercises deal with language points (such as the passive form), and others give you practice in a situation (such as making a presentation). In all the exercises, you must use your English. Datafiles Datafiles are for you to read and understand. They are about business situations, and are useful for reference. Datafiles are accompanied by exercises on the same situation. Progress check This is a short test at the end of each unit Answers Here you will find answers for all the exercises in the unit, and for the Progress check. Try it yourself This is an invitation wo practise your English without the book. Cassette 2, side 2 has been prepared specially for this (see What is ‘Try it yourself”?), INTRODUCTION \vhat are the Each one has a number and title Sometimes a language point is exercises like? introduced, in a language input box. Exercise 5 The social programme (US: program) Language input when we tak about arrangements we have loc for the near future we use the present continuous tense. Example | am going to the opera tomorrow night. = Ronald Barret is talking about the social programme arranged for 1o_ 2) him and his colleagues during his visit to Federal Consolidated in New York. Underline the verbs in the present continuous. “Well, on Monday night we7é all having dinner together at the Stork Club to sort of get tg/know each other; the next evening we're Then you are told how to do the exercise. Sometimes you are asked to write words or numbers in your book. At other times, you must 1 words or numbers aloud. practise by saying ¢ How do | use Some exercises in the book have a cassette symbol, This he cassettes means that a part of that exercise is on the cassette. om with the book? These exercises also have an empty cassette box. In this, box you should write the number shown on the counter — of your tape recorder when this exercise begins (for example, 098). This will help you find the exercise easily next time. (At the very start of your cassette, put the counter to 000.) Using the cassette: 1 Read the exercise instructions in your book. 2 Start the cassette. Each exercise begins with the unit and exercise numbers 3 If you have to speak with the cassette, you will hear a short signal telling you when to do so. Practice with numbers At the end of the recorded material for each unit, there is a short exercise which appears on the cassette only. These exercises will help you practise using numbers in the context of each unit. Instructions and answers are given on the tape. May 1 stop the Of course! It is sometimes useful to stop the cassette and listen assette? again te a section which you find difficult. Listen to the words before and after the difficult part and try to imagine its possible meanings for yourself. If vou are still in difficulty with a section on the cassette, look at the Tapeseript which follows the exercise in the book. This shows you everything which is on the cassette for that exercise ~ but try What is ‘Try it yourself”? not to look at it unless it is absolutely necessary! For some exercises. you may need to practise a few times. It is not possible to do every exercise correctly the first time, so do not worry if it seems difficulc at first. Continue practising until you can do the exercise without stopping your machine Try it yourself is the chance to practise your English without the book, using cassette 2, side 2. You can do this at home, in the car or during a journey by air or rail. Cassette 2, side 2 is in ten sections. The first section contains situations and language points from Unit | of the book, and so on for Units 2 to 10. The ten sections together take you on a journey: you travel, telephone and meet people, have business discussions and social conversations, and keep in contact with them after your return home, There are no instructions for Try it yourself in the book. Instead, a voice on the cassette gives you the situation and tells you what you must do, and when (o speak. This time, there is no tapescript to help you, but you can of course stop your machine and keep practising, until you can do a section without stopping Cassette 2, side 2, may be used one section at a time, after doing the corresponding unit in the books; or, some or all of the sections can be used together, for revision INIT 1_ ARRIVALS AGENDA, UNIT 1 ARRIVALS AGENDA Situations Action On the plane Asking for things Exercise 1 Making conversation Exercises 2, 3 and 4 At the airport Going through the airport Exercise 5 Customs Datafile: Customs Changing your reservation Exercise 6 Asking the way Exercise 7 Following directions Exercise 8 Taxis Exercise 9 Trains and buses Exercise 10 At the hotel Checking in Exercise 11 Your room Datafile: Hotels Exercise 12 Problems Exercise 13 , Phoning home Exercises 14 and 15 Progress check Answers Try it yourself WS a0 io On the plane A Uplenndy ege red Vtece te te Exercise 1 Asking for things [J eaggage compartm A E ES, ais cae gangway) ¢ central aisle Language input 2 (polite): £9 fart) It you want something or want to stop someone, say: Excuse To ask for something, say: May |... ? (very polite)’ Example Excuse me, may | smoke now? Excuse me, could | have a newspaper, please? How would you ask for these things? Other things you might want: an in-flight magazine atissues r°s(v 2 Take another blanket © © 297 # a headset a sleeping pill e2<0.72"spuac Seer ogeserte 8 Or might want to do: borrow apen 7 2x’, change seats.» fee visit the flight deck watch a film buy some duty-free perfume raat ms UNIT 1_ ARRIVALS PEs Exercise 2 Making conversation Complete the following dialogue using the expressions below. Do you speak English? Ay 4% Where are you from? em Seven Peereoe® Ab-ha! Is this business or pleasure? 12 Ave nese And how long are you going for? Sam gain bd @ een Ky Is this your first visit to New “ York? Yes 5 Leg What do you do? I mean, who do you work for? 7 fm @ mann gep Ab-ha! You know, your English is really very good No, I mean it. You know, after a few days, when you Expressions (not in order): Yes, itis. A little, or . No, it isn’t. I know New York a It’s kind of you to say so. Hele 1 work for I'm from Nigeria/Franceletc or or Ihave my own firm. I'm Nigerian/Frenchietc It’s a business trip. © For a few daysia week or so/a or — f couple of months. I'm on business Exercise 3 Were you right? omar rt Check your answers to Exercise 2 by listening to the dialogue on your cassette Exercise 4 Now you do it! On the cassette you will hear the other passenger speaking to you, without looking at the dialogue above and without stopping your machine. CGE eC At the airport Exercise 5 Going through the airport rf Use these pages to check you know all the terms you may need for your flight. First, study the pictures and the notes below the ‘Then read the Language input and complete the sentences which follow. f calyx ray 7 . DEPARTURES departure board 4, ei¢é international/domestic flights {Ss cancelled: the flight will not take place Wi" delayed: late — = = > | Flight departures i ert go through departures go to passport control go to the check-in desk check in your baggage gv pay an excess baggage chargé! fc> se smoking or non-smoking? — go to the departure lounge ¢ 740-777 buy presents from the duty-free sho wines, perfume, cigarettes, spirits corps) ¢ b go to the boarding gate show your boarding pass... MED Site retens siieee thy Language input If you have no choice, you can say: I have to ... or | must .. . Example | have to go to the check-in desk. Thave to go through Customs. 77 = _ i 2 = a a @ Following directions Below is the plan of an airport terminal. Starting at the ent follow the directions on your cassette and then write the where you go in the spaces beside the plan, + You ae fore zl (at f OOS eel Oa _f mt oS et YY oe a ‘ lat |e wE|Y well ee gary betore tne desk @ sana reed Ye down the steps up the steps 14 CGI CEs Exercise 9 Tapescript a) Follow this corridor, then turn right. Go through the doors, and straight on. When you reach check-in, you'll see it on your left. b) Go right, into the terminal hall, then left. You'll see the shops on your right. On your left, there’s a door. Go through and up the steps ¢) Turn right off this corridor. Then you'll be in the terminal, and you'll find it at the other end, up the steps on the left, d) Yes, turn right as soon as you can; through the doors; go round the check-in desks, and you'll see them on your right. I think you want the one nearest to the big doors. e) Yes; along the corridor, through the doors on your right, past the check-in, and then you'll see Departures on your left; and the desk will be in front of you, Taxis (US: cabs) Exercise 10 Example Could you| take me to the Dynasty Hotel, please? take me to the city centre, please? give me a receipt, please? Now ask more questions, beginning Could you ... a) 42nd Street b) wait here for five minutes ©) the railway station d) a receipt e) the National Exhibition Hall Trains and buses Buying a ticket is quite easy. You say where you want to go and whether you want a single (one way) or a return, Example A single to London, Victoria, please. When you get to the train (or bus) you may want to check that you have the right one by asking: Is this the train (or bus) to London? Now practise buying a ticket, and then checking that you have the right train/bus, for these cities. a) Sydney b) Washington ¢) Seattle 4) Johannesburg ) Toronto 15 Can URGE At the hotel Exercise 11 Checking in If you have a reservation it is easy! You begin: My name is ... I have a reservation. If you don’t have a reservation, you have to ask for a room by saying: I would like a... For this exercise, you will need to understand the following symbols: P PI sien cou om vin ea fone tage two a) yy SID ES eatymorg cl breaker wat top by edt cad Example When you see these symbols 2) YF CBee Mr Durand 29-31 October you say: My name is Durand. I have a reservation. It’s for three nights. A single room with shower and toilet. Could I have an early morning call, please? The following people all have hotel reservations. What do they say when they check in? a) Mr Okawi 3-4 May b) Mrand Mrs Rossi 7-13 July ©) Mrand Mrs Weiss 12 March d) Miss Capulet 8-9 August e) Mr Cohen 16-19 April f) Mr Ung 23 June 16 GZS ens Datafile: Hotels | | | .——— | — Key 1 bed 6 bedside table 11 curtain 16 magazine 2 bedspread/duvet 7 lamp 12 hotel information 17 picture 3 trouser press 8 remote control 13 chair 18 carpet 4 cushion 8 telephone 14 table 19 desk 5 pillow 10 television 15 ashtray 20 drinks cupboard Exercise 12 At the hotel Cover the key in the Datafile on this page, and see if you can remember the name of each item which has a number. 7 TEES aS Exercise 13 Problems If you have a problem in your room, you may want to complain, ‘These are different problems which you might meet: The air conditioning/heating doesn’t work. The sheets are dirty. There isn’t any soap. The drinks fridge hasn’t been filled. Could you see to it at once, please? What will this man say to the receptionist? Exercise 14 Phoning home In English, telephone numbers are given one figure after another, example 0-1-0-3-1-2-4-7. To make a call from your room, you will probably have to ask the reception (desk) to obtain the number for you. You could say: Could you call this number for me, please? It’s 0-1-0-3-1-4-7-2-9-3. Now ask for these numbers: a) 010 54 39612 b) 010 58 2.97845 ©) Riyadh 21 375362 d) Singapore 3982712 ng, ar raion ponerse Chachi hOB CCI Exercise 15 (ox) ([™) Reception Desk ane Hold the line! If the reception says: One moment! or Hold the line! you should wait Please hang up and I’ll call you back, you should put down the telephone and wait for it to ring Now make two calls from your room, to the numbers given below, On the cassette you will hear the voice of the receptionist in the hotel. Try to make the calls without looking at the tapescript. a) You want to make a call from your London hotel room to your company in Singapore. The number is Singapore 3982712. Now pick up the telephone b) You want to make a call from your hotel room in Venezuela to your home in Saudi Arabia. The number is Riyadh 21 375362. Now pick up the telephone Tapescript Can I help you? Certainly. What is the number, please? I'm sorry? Could you give me that again? Thank you. Hold the line, please ... You're through now. Hello? Number, please? Just a moment .. . I’m sorry, what was the number you wanted? Right. I'll call you back I have your call on the line. Go ahead, please. 19 TGS General On the plane At the airport At the hotel a) b) 4) 8) h) i i k) ese Progress check What do you say first, when you stop someone to ask for something? What do you say if someone says that your English is very good? How would you ask for a newspaper on an aeroplane? It is 10 a.m, in London and 5 a.m. in New York; London is five hours New York; New York is five hours 2 London; there is a — of five hours. If you fly London-New York, don’t forget to put your watch If you have more duty-free goods than the , you must pay _______ on the You need a Customs ____ for commercial which are not for sale. Your reservation: 1400; 19 December; tourist class. You prefer: 2000; 20 December; business class. What do you say to change your reservation? How would you ask an airport official the way to Terminal 3? Where do you collect: your boarding pass? your luggage, after the flight? When yeu pay the taxi driver, you may want to ask him for a You are not sure if the train you are in goes to Vancouver. What do you say to the person next to you? How would you ask for this room, which you have reserved? In your room there are: no towels; dirty sheets; broken shower and television. Complain! Ask the desk to call this number for you: 010 31-2937-521 20 CIS Answers Try it yourself ECE Exercise 1 Excuse me, could I have a newspaper, please? Could I have a glass of water and an aspirin, please? Could I have some coffee, please? May I borrow your paper, please? Exercise 2 (in order): A little. I'm from __/I'm ___ It’s a business trip. For __ Yes, it is. I work for ___ It’s kind of you to say so. Exercise 5 See note below pictures on pages 10 and 11 Exercise 6 a) I would like to make a firm reservation for the 10th of August, please. ) I would like to change my reservation. I would like to leave on the 4th of September, please (at the same time). ¢) I would like change my reservation. I would like to reserve business class for the return journey, please. d) I would like to change my reservation. I would like to return on the 9th of April, on a later flight, please. €) I would like to change my reservation. I would like to return on the 13th of August, on the 9 o'clock flight, and to change from economy class to business class, please Exercise 7 As example: Could you tell me where the (picture) is, please? Exercise 8 a) toilets; b) Terminal 3; d) shuttle bus; e) information desk Exercise 9 a) Could you take me to 42nd Street, please? b) Could you wait here for five minutes, please? ¢) Could you take me to the railway station, please? d) Could you give me a receipt, please? €) Could you take me to the National Exhibition Hall, please? Exercise 10 As example: a) To Sydney, please. Excuse me, is this the wrain/bus to Sydney? Exercise 11 As example: a) My name is Okawi. [ have a reservation. It's for two nights. A single room, with shower and toilet, Exercise 12 See Datafile key. Exercise 13 In my room the television doesn’t work, the towels are dirty, there isn’t any hot water and the bed hasn't been made. Could you see to it straight away, please? Exercise 15 a) Could you call this number, please? It’s Singapore 3-9-8-2-7-1, b) Could you call this number, please? It’s Saudi Arabia 213-715-362. Progress check a) Excuse me. b) It’s kind of you to say so. ¢) Excuse me, may I have a newspaper, please? d) ahead of; behind; time difference; back. ) allowance; duty; excess, f) declaration; samples. 8) I would like to change my reservation. I would like a later flight 8 o'clock on the 20th of December, and 1 would like to change to business class.) Excuse me, could you tell me where Terminal 3 is, please? i) at check-in; at baggage reclaim. j) receipt. k) Excuse me, is this the train to Vancouver? 1) My name is ... I have a reservation for three nights. Is a single room with bath. May I have an early morning call, please? mi) In my room there are no towels, the sheets are dirty and the shower and television do not work! Could you see to it straight away, please? n) Could you call this number, please? It’s 0-1-0-3-1 21 ‘Now that you have finished this unit, try to manage by yourself, without the book. Use Unit 1 on cassette 2, side 2. On the cassette, you will travel by plane, arrive at an airport, and go to your hotel. In some situations, you will hear @ quiet voice telling you what to say. Practise until you can do the whole unit, (which lasts about five minutes), without stopping your machine. 21 UNIT 2 CE MAKING CONTACT AGENDA Meeting people First words Small talk Ending the small talk Situations Action Phoning your = Making a call Exercises 1, 2 and 3 contacts Telephone terms Datafile: The telephone Exercise 4 Appointments Confirming arrangements Exercise 5 Changing arrangements Exercise 6 Times and dates Exercise 7 Arriving at At reception Exercise 8 the firm Getting past the secretary Exercise 9 and 10 Datafile: Introductions Exercise 11 Exercise 12 Exercise 13 Exercise 14 Progress check Answers Try it yourself CEN EEN Exercise 1 Switchboard You Switchboard Secretary You Secretary You Secretary You Secretary You Secretary You Secretary You Secretary Exercise 2 Phoning your contacts Making a call A few common expressions are enough for most telephone conversations. Practise these telephone expressions by completing the following dialogue using the words listed below. Conglomerate Group; can I help you? Could 1____"____ Mr Pardee, please? Putting you Hello, Mr Pardee’s __. __I help you? , can you hear me? It’s a______ line, Could you up, please? IS THAT BETTER? Who's ____, please? (your name) from (your company). Oh, hello. How nice to hear from you again, We haven't seen you for ages. How are you? Fine, thanks. Could you me to Mr Pardee, please? the line a moment. I'll see if he’s in. I’m so sorry, I'm afraid he’s not in the at the __.. Could you give me your and T'll ask him to you 1'm ______ 347 8621. That’s London. Would you like to leave any for him? No, thanks. Just tell him I . Certainly. Nice to hear from you agein. Pil expect him to me this afternoon, then. Thanks. You're welcome. Goodbye on speak tos message. = bad put through number call back ring secretary through. office speak speaking = can_—_—hello rang hold. = moment — through Note If you do not hear or understand the other person, say: ?m sorry? or I’m sorry, I don’t understand, could you repeat that, please? It is not polite to say: Please repeat? On the line Now make the same telephone call to Mr Pardee using the cassette. You will hear the voices of the switchboard operator and the secretary, At first you may look at the text above, but then try to use only these notes. Call Pardee. If he’s out ask him to call back on 071-347 8621. 23 Pa ENaC the book. Key —\ What you hear ‘y say instructions to follow: Decisions for you to make: coma)[_] Exercise 3. Putting you through Before using the cassette read the flowchart. Then, on the cassette, you make several telephone calls to Mr Pardee of Conglomerate Group. You will hear the voices of the switchboard and of Mr Pardee’s secretary. You must make suitable replies using the expressions on the flowchart. Repeat the exercise several times, uml you can do it without / Conglomerate — ~~" Group. Can Lhelp you? | Could 1 speak to John Pardee. please? Sales Department.» John Roberts speaking. Hold the line. Putting you through Noe Mr Pardee’s office. Can I help Could I speak to Mr Pardee please? I'm afraid Mr Pardee < is 6 on the other line at the moment. Would you like to hold? C::- not in the office at. \ the moment. | When will he be back? Yes, I'll hold Baus you through, (Not until tomorrow, now. PS 'm afraic y = ring him then Thank you. Goodbye. 24 TE EER ESS /~ Stan here: Dial the number. Wait for the reply. yo, Sorry, I must have the | ——_, wrong extension. Could you transfer me back to Switchboard, please? my / Can Vell him who's rr calling? a Sorry, I must have the wrong number. _ ~\ Putting you through. Helmut Cohen LX from Leclerc Systems. [Good morning, Mr Pardee. This is Helmut Cohen from Leclerc Systems. =. = away on vacation. ...in a meeting. Can I give him a message? a) [Yes please. Could you ask him to call me back, My name is Helmut Cohen from Leclerc Systems, My aumber is 27% 9441 q Good morning. pom! (1s the voice clear? It not say: Sorry, it’s a bad line, Couid you speak up, please? Perhaps I could speak | to someone else in the Purchasing Department? TU put you through Mr O’Conner. Z a, Right. I'll ask him to call you back. > 25 PEE EERE telephone calls. Datafile: The telephone This datafile gives you many of the terms and phrases commonly used in making ‘The phone book The number is ex-directory. (UK). The number is unlisted, (US) I'll ring Directory Enquiries for the number. (UK). I'll call information. (US). Look up their number in the phone book (or directory). I'll look up the number in the telephone book. (US). The receiver Can | help you? The line He's on the other line. Would you like to hold the line? The line is engaged. (UK). The line is busy. (US). wey cue We wee Seal? aot oy aust Putting you through. I'matraid he’s not available at the moment, (UK). I'm afraid he's tied up at the moment. (US). You're welcome. Goodbye. The operator Dial 100 for the operator. (UK; Dial 0 (zero} for the operator. (US). I'd like to make a reverse charge (or transfer charge) call (UK). \ I'd like to make a \ y collect call. (Us), oo _| A message pad Can I tell him who called? Can | give her a message? Could | take your number? The dial Dial 123 for the correct time. (UK). Listen for the dialling tone. All lines to the country you have dialled are engaged. Please try later. (UK). *Remember If you do not understand, say “Sorry, | didn’t quite catch that.” “Sorry, could you say that again.”” 26 CELE NS Exercise 4 Using telephone terms A After studying the Datafile, decide whether the following are true or false. a) For international cails you dial: the country code + the area code + the number. b) The caller does not pay for a collect call. ©) Directory Enquiries will put you through to the number you want 4) Switchboard and operator are the same people. €) The dialling tones for ‘ringing’ and ‘engaged’ are different. oo oo of = on oo oF B Insert the missing word. a) Look it______in the directory, b) He’s_____ the other line. ©) Listen ____ the dialling tone. a) He’s tied e) She'll ring C Insert the correct term. UK term US term a) Directory Enquiries b) reverse charge call __ :) busy 4) area code e) exdirectory Time diferent cat g ates (4) tha Bulgaria —— = Toots NJ Count ente _ Rousse Ae gre Gabrovo- 66 ous Blagoeveree Bote go Dew sia Plovdiv vreges (seepage 3) Rings E Eneaged= P _ Burkina Faso jnamvionl cote Soom ‘ 010 6 ‘Tones : Ring E Engaged™ B a7 NNT CoE Appointments Exercise § Confirming arrangements ‘The day before your meeting you may want to call your contact to tr) confirm the arrangement. Here are the expressions you need, Language input Mr Smith? This is (your name). I'm ringing to confirm our meeting tomorrow. 2.15 at your of as arranged? as we agreed? as we said? Good. | look forward to seeing you. Goodbye. It is Tuesday and you have just arrived in Chicago. First, read your list of appointments for the rest of the week. Now you must make calls to confirm them, On the cassette you will hear the telephone ring and the person answer. Then you must confirm the arrangements you have made. There are six calls to make. pee | July DMO off Samauttha’s CrDheg yt TW 340 Chicago _ en sme Bed inte Bavon dete! 11,00 Linda Carte TT Tis je Cent” trices 6Fri wievid Tvad' ‘eu 01 11.30 Don fiat see Seat wife) pera! 7sat ane a Hotel 28 TE Lees Cos Exercise 6 a Changing arrangements It is not always possible to follow your original plans. You, or your contact, may want to change an appointment. Language input To apologize, say: I'm afraid that... I'm sorry but... Example I'm afraid that I can't manage Thursday. I'm sorry but I'm going to Boston on Friday. To suggest another time, say: Could | suggest . . .? What about. Perhaps . Below is 2 schedule for your week in Sydney, Australia. Before you leave for Sydney you receive some telephone calls from people you are going to visit * They want co change their appointments * You do not want to change the order of the appointments. * You would prefer not to meet them on the day they suggest © Suggest a different time on the original day, Example I’m afraid I can’t manage Monday. Could I suggest (or What about) Tuesday afternoon at 3 o’clock instead? * Study your schedule before you start the cassette * When you change the appointments, note the changes on your schedule. Monday, 12 November moming Arve Sydney airport 8.30 am ahemoon 3 pm. meet Tim Brown (agent) at hote! Tuesday, 13 November moming 10am. Mr Whitley, Australian Chemical Banke akernoon Wednesday, ld November moming aterioon 2 pm Lund & Lund Associates (Mr William Lund) ‘Thursday, 15 November morning afernoon 3 p.m. Jenny Kinsella + colleagues (BG. Distribution) Friday, 16 November morning 11 am. Tim Brown afernoon Flight 390, depart Sydney 6 p.m. 29 CERN Caer Tapescript Hello? Mr Rossi? This is the Australian Chemical Bank, I’m Mr Whitley’s secretary. I understand you have an appointment for 10 a.m, on Tuesday 13th. I'm afraid that Mr Whitley is rather tied up then, Could I suggest Monday instead? Yes, [’m sure that will be OK. Hello, Mr Rossi? Tim Brown, your agent. Small problem. Our meeting for Friday is all right, but Monday afternoon is likely to be difficult; someone is coming to see us who might be 2 useful outlet for some of your range. Perhaps we could change our meeting to Tuesday afternoon? Yes, OK. Right, that's fine. ‘Mr Rossi? It’s Jenny Kinsella here. From B.1.G. I'm sorry but my colleagues can’t all make it on Thursday afternoon, Could I suggest we meet on Tuesday instead? Er... yes... why no? OK... Well, thank you very much. Hello again, sorry, Tim Brown here again, I forgot; I have some other customers visiting on Friday morning. How about a meeting on Thursday sometime, if that’s all right with you? Right. Sorry to be difficult. Thanks a lot, Mr Rossi. Bye now. Mr Rossi? Good morning. I’m ringing for Mr Lund of Lund and Lund Associates. He’s very sorry, but he won't be able to manage Wednesday afternoon, Could I suggest Friday afternoon instead? ‘Well, I think that should be all right. I’ll give you a call this afternoon to confirm that. Thank you. Goodbye. Exercise 7 Times and dates Language input you read: you say: you read: you say: 0900 nine o'clock 1 Feb the first of February 0930 nine thirty 2 Aug the second of August 1 p.m,/1300|at one o'clockthiteen 3 Dec —_|on| the third of December hundred hours 4 Oct the fourth of October 1.901330 | Jone thiny/thirteen 21 Jan the twenty-first of thirty January Note: 7/4/93 = 7 Aprit 1993 (UK) 4 July 1993 (US) 30 Arriving at the firm Exercise 8 At reception Language input To explain why you are there, say: | have an appointment with (Miss Rush in Personnel). If you want other things too, say: But first, could you tell me (where the toilet is)? Now, at reception, ask for the following people and information. om) | On your cassette you will hear the receptionist say: Can I help you? a) Miss Jones/Personnelitoilet b) Jim Ludd/Accountsitelephone. ©) Mrs Sindon/Operations/tell me if Mr East is in, 4) Sam Higgin/Buying Department/the name of the chief buyer. €) Margaret Conrad/Public Relations/Miss or Mrs? Practise saying the following aloud. Example 0920, 18 June 1993: at nine thirty on the eighteenth of June, nineteen ninety-three. a) 1015, 25 Sept f) 2030, 2 Aug b) 2.15, 9 Sept g) 1500, 28 Feb ¢) 1130, 23 Apr h) 7/11/93 (US) 4) 3.30, 31 May i) 11/7/93 (UK) ©) 3pm, 22 July i) 2130, 6/3/93 (US) 31 UNIT 2_ MAKING CONTACT EGE Exercise 9 Getting past the secretary If you make a ‘cold call’ (without an appointment), you could have difficulty in getting past the secretary of the person you want to see. Here are a few suggestions of things you might say to the secretary a) I don’t mind waiting until he’s free. b) I'm sorry, I tried to ring in advance, but I couldn't get through. ¢) Could I have a word with him on the phone? 4) Would you tell him I'm here, please? e) I'm sure he'd be sorry if we weren’t able to meet. f) I’m only here for a brief visit before I return home, g) It should only take a few moments. Is he in his office? Which ones would you use in the following dialogue? (There are several possibilities.) You I wonder if I might have a word with Mr Rodgers? Secretary I'm afraid he can’t see you without an appointment You Secretary I'm sorry, but I can’t let you see hiny unless you've arranged a meeting, You Secretary Sorry, but | have my instructions. You —_ Secretary Mr Rodgers is a very busy man, you know. You — Secretary He did ask me not to disturb him You Secretary I’m afraid he isn’t available at this moment, You Secretary Very well, I'll tell him you're here, Exercise 10 Now you do it! Now it is your turn to try and see Mr Rodgers! On the cassette you — will hear Mr Rodgers’ secretary, who begins by saying ‘Can I help you”. Speaking in the pauses, try to obtain an interview with him ‘At first you may use the notes above, but then try to manage without them. 32 Tne a Datafile: Introductions i Introducing yourselt | don't think we've met. I'm Greeting Pleased to meet you. s How do you do. Introducing others Let me introduce you Maribel, this is Charles Hammond. Charles, this is Maribel Rivera. I think you two have already met: Steve Reich ~ Ruth Harris. ARRIVING AT THE FIRM Ah yes; nice to see you again! How | are you? Fine, thanks. How are you? | How to use people’s names ‘Surnames Pleased to meet you, Mrs Rivera. How do you do, Mr Hammond. First Nice to see you, Steve. names _Hil Pierre, how are you? Titles: Good morning, Doctor Smith. This is polite and shows respect. to use surnames at a first meeting. usual This is informal and most frequently used with friends. It is used more easily in the US. People with a title are usually addressed by their title and their surname. | CEN CGR Exercise 11 Exercise 12 Meeting people What would you say to the following people when you meet them for the first time? Example Pleased to meet you, Mr Copella. How do you do, Mr Blahofer. Hello, Bill! Hi, Karl! a Doctor Lodge Louise Mrs Truman (at the surgery) {at an office party) (at a formal dinner) ’ f is) SB (24 Edward Lyon Mr Guyot J C Offenbach, Jnr. (at an in-company (a Canadian (your new (tan nom (ecanaa ou nm ay seminar) First words Often the first words are the most difficult. Below are some suggestions for “breaking the ice’. Which of the sentences could be said by a visitor, and which by the person receiving the visitor? a) Sorry I'ma little early. I hope it is not inconvenient. b) Is the weather the same in your country? ©) Sorry to keep you waiting. I was rather tied up just now. 4) I’m pleased to be here, after a trip like that! €) Is this your first visit? What do you think of the city? £) People are very helpful here. On my way to meet you... g) Isn't it cold today? h) You found us without too much difficulty, then? i) Ws good of you to spare the time. j) I's kind of you to come all this way. k) like your offices. Have you been here long? 1) Did you have a good trip? m) Would you like a cup of coffee? 34 (EEL CGN aa Exercise 13 Small talk Before talking about the details of your business, there is usually a period of social conversation (smali talk) which can be difficult. A good tactic is to ask questions. There are three reasons for this: people like talking about themselves; it is easier for you to listen you may learn something useful! Language input To form questions: 1) with to be and to have change the word order Example Are you busy this month? Have you had some coffee? 2) with all other verbs, use do and did Example Do you smoke? Did you come to last year’s Trade Fair? 3) use question words and phrases like where, who, what, when, how (long/big) Example What does your company produce? How big is your Canadian operation? Practise asking questions, as small talk, from the following now how/get here this evening youlsee Herr Gluck often yourbeen to New York before your firm/have many overseas branches how big/your department yow/worked here long when/you plan to return home wholin charge of your publicity department international situation/affect your exports Jim Adler/still work here Exercise 14 Ending the small talk If the small talk continues too long, you may want to change the subject to business matters. Here are some ways of doing it ‘A With someone you know well: Let’s get down to business. or Let’s get started. B With someone you don’t know well: Perhaps we could talk about the subject of our meeting. or Shall we talk about the reason I’m here? Which expression would you use in the following situations? a) Ona sales visit to a potential customer. b) Ata weekly planning meeting with colleagues. ©) At your first meeting with the new group auditors. ) Ata meeting to obtain finance from a bank, €) Before making a speech at an office party. 35 PE ae as Progress check Phoning your a) If you get the wrong extension, you say: contact b) If you cannot hear, you say: ¢) If the person you want is out, you can say (give 3 possibilities): d) If the person you want is on the other line, you can say: e) To make the other person pay, ask the operator for a f) Say this number: 021-237 5012. What is the 021 part called? Appointments g) What would you say to Mr Smith to confirm this appointment? Mr Smith/1015 tomorrow his office. hh) You have already arranged another meeting for 1015 tomorrow. How would you tell Mr Smith that you cannot meet him then, and suggest 2 p.m.? i) And when he agrees, you can say: Arriving at j) You have an appointment (Mrs Le Tan, 11 a.m., Personnel) the firm but want the toilet first, What do you say at reception? k) You have no appointment. What could you say to the secretary, in order to see her boss? 1) How would you introduce Bill Brown, of Badgers, to Red Reynolds of Revolt Inc.? They have never met. m) Someone says ‘How do you do?” to you. What do you reply? n) Ata cocktail party at the firm you see another person who, like you, is alone. How do you introduce yourself to that person? ©) What do you say when you meet Professor James Perkins? p) You are on a sales visit to a new customer, He seems to be avoiding the subject of the contract you want to talk about. How can you stop the small talk? 36 TEL ANSWER: Answers Try it yourself aes Exercise 1 (in order): speak to; through; office; can; hello; bad; speak; speaking; put; through; hold; office; moment; number; ring; back; on; message; rang; call, Exercise 3 See flowchart. Exercise 4 A: a) true; b) true; c) false ~ they only give you information about numbers and codes; d) false ~ a switchboard is in a company, the ‘operator works in the public telephone system; e) true. B: a) up; b) on; ¢) for d) up; e) back. C: a) information; b) collect call; ) engaged; 4) code; e) unlisted. Exercise 5 See Language input Exercise 6 Possible new schedule: Monday: arrive Sydney a.m, afternoon free; Tuesday: 10 a.m. Tim Brown, 3 p.m, Mr Whitley; Wednesday: 10 a.m. Mr William Lund; 3 p.m. Jenny Kinsella + colleagues; Thursday: morning free; 3 p.m. Tim Brown; Friday: morning free, flight departs 6 p.m. Exercise 7 a) at ten-fifteen on the twenty-fifth of September; b) at two- fifteen on the ninth of September; ¢) at eleven-thirty on the twenty-third of April; d) at three+thirty on the thirty-first of May; e) at five p.m. on the twenty-second of July; f) at twenty-thirty on the second of August; g) at fifteen hundred hours on the twenty-eighth of February; hh) on the eleventh of July, nineteen ninety-three; i) on the eleventh of July, nineteen ninety-three; j) at twenty-one thirty on the third of June nineteen ninety-three. Exercise 8 See Language input Exercise 9 There are several possibilities; for example, c,b,a,e or 4,6g. Exercise 11 How do you do, Doctor Lodge? Hi, Louise! Pleased to meet you, Mrs Truman. Hello, Edward. Pleased to meet you, Mr Guyot. Pleased to meet you, Mr Offenbach, Exercise 12 Visitor: a, d, f gi, k Exercise 13 How did you get here this evening? Do you see Herr Gluck often? Does your firm have many overseas branches? How big is your department? Have you worked here long? When do you plan to return home? Who is in charge of your publicity department? Does the international situation affect your exports? How does the international situation ... ? Does Jim Alder still work here? Exercise 14 a) B; b) A; ¢) B; d) B; e) A Progress check a) Sorry, I have the wrong extension, Could you transfer me back to the switchboard? b) Could you speak up a little, please? It’s a bad line. ¢) When will he be back? Could you ask him to call me back? I'm on ... Could I speak to someone else, please? d) I'll hold. e) collect, call (US); reverse charge call (UK), £) 0-2-1-2-3-7-5-0-1-2. The area code (US): code (UK). g) Mr Smith? I’m ringing to confirm our meeting tomorrow; at 10.15, in your office, as arranged? hh) I'm sorry but I'm tied up in the mornings could I suggest 2 p.m? i) Good. I look forward to seeing you. Goodbye. j) I have an appointment at 11 a.m. with Mrs Le Tan, in Personnel. But first, could you tell me where the toilet is? k) See list of possibifities on page 32. 1) I don’t think you've met. Bill, this is Red Reynolds, from Revolt Inc, Red, this is Bill Brown, from Badgers. m) How do you doipleased to meet you. n) I don’t think we've met. I'm... 0) How do you do, Professor Perkins. p) Perhaps we could talk about the reason I’m here Now that you have finished this unit, try to manage by yourself, without the book. Use Unit 2 on cassette 2, side 2. On the cassette, you will make and receive telephone calls, confirm and change arrangements, visit a company and meet a number of people. Practise until you can do the whole unit, which lasts about five minutes, without stopping your machine. a CSS CCST UNIT 3 THE SALES MEETING AGENDA Situations Action Discussing ‘The brand leader Exercise 1 the market The marketing plan Exercise 2 Next year’s targets Exercises 3 and 4 Talking about Product performance Datafile: The product products life cycle Exercise 5 Presenting the Datafile: Giving a product presentation Exercises 6, 7, 8, 9, 10 and 11 Datafile: Audiovisual aids The sales The selling process Exercise 12 call Arranging a meeting _Exercises 13 and 14 Discovering needs Exercises 15, 16, 17, 18 and 19 Responding to needs Exercise 20 At the trade fair Exercises 21 and 22 Closing the Making 2 deal Exercises 23 and 24 sale Final details Exercises 25, 26 and 27 Progress check Answers Try it yourself 38 Discussing the market Exercise 1 The brand leader First, read this article about the world computer market, Then, using the information in the article, complete the table at the bottom of the page and fill in the company names on the pie chart COMPUTER TRENDS by the financial editor ‘When analysing the computer market worldwide it is useful to distinguish between sales of desk- top computers and portable laptop models, The major manufacturers perform very differently in differ- cent areas of the market; for exam- ple, ABI, the worldwide brand leader in desktop computers, ranks only fourth in laptop com- Puter sales and has captured only nineteen per cent of the European market. The Crown Corporation has succeeded in penetrating the difficult European market ‘and now has a twenty-one per cent market share; in worldwide sales, however, Crown ranks second in laptop models and fourth in desktops. Beginner's Inck A recent arrival on the scene, Unitec, has won a twenty-eight per cent slice of the European market and already stands at number five in the world market in both cate- gories. The computer division of Marcus Industries ranks just below A.B. in the desktop best five and currently leads the world market in portable models; in spite of this, Marcus have captured only six per cent of the European sector. Earope fights back ‘The remainder of the European market is shared by a number of local manufacturers who are com- eting well in home markets but ‘who do not figure largely on the international scene. The only one ‘of these European companies to challenge the US. and Japanese makers abroad successfully is Contact Electronics who entered the top five in the laptop field this year and managed to outsell both ABL and Unitec. Unitec’s main xivals, Perry-Hamilton, still occupy third place in the desktop cate- ‘gory, but are struggling to main- World market ranking Desktop Laptop eee 39 European market (2 Tic TEs DISCUSSING THE MARKET Exercise 2 The marketing director has drawn up a marketing strategy for the The marketing co™pany’s latest product; he is presenting the strategy t0 the area 1 sales managers and sales representatives in the form of a plan. Use plan the information on the plan to complete the sentences below. a) Before the ____ launch, ___ research and —_____ marketing are carried out. b) The marketing department is also responsible for __ policy. ©) The advertising ____is responsible for che _____ campaign. 4) There are two main types of advertising; above-the-line, or advertising and or non-media advertising. MEDIA (ABOVE-THE-LINE) ADVERTISING cu ADVERTISING ‘AGENCY ] ADVERTISING CAMPAIGN (EDIA (GELOW-THE-LINE) ADVERTISING SALES FORCE - SALES. DEPARTMENT — PRODUCTION PACKAGING "DISTRIBUTION -sumanaane fT aay A CARRRET /\ RESEARCH ag L MARKETING eg PRODUCT DEPARTMENT yaKkETNG og LAUNCH roe EST DISCUSSING THE MARKET €) Media advertising includes advertising on > and in ___ s,s and on. os. f) Non-media advertising includes ___, and g) The department is responsible for sending the sales ______to contact _____s,_____s and end s h) End-user is another term for ____, also called the i) Wholesalers sell to ___, who sell direct to the public. i) The place where the customer buys the product is called an or of sale, k) The sales department is responsible for selling and for service. iO, MAGAZINES, NEWSPAPERS, POSTERS) TIONS. PUBLIC RELATIONS, Tf CUSTOMERS “UC AFTER-SALES SERVICE “WHOLESALER - lt le a om OUTLET WHOLESALER | ad eS craic —_—_ AL RETAILER ( f POINT OF SALE RETAILER, Rae \e/ = a UNIT 3_ THE SALES MEETING DISCUSSING THE MARKET Exercise 3 Next year's targets Language input When you talk about your company’s targets and future objectives you use phrases like We expect ... , We are aiming for... , We predict .. . Example Next year we are aiming for sales of ten million dollars.| = Exercise 4 Now look at this table. Listen to the cassette and match the markets with the appropriate targets. The first one has been done for you. Market Target North America two billion dollar profit Europe a 12 per cent lead over competitors Middle East 16 million dollar sales South-East Asia 4,000 units per month Latin America a seven per cent market share Africa overtake current market leaders Australasia a three per cent increase in total sales Tapescript Pd like to run through our targets for the coming year, market by market, starting with what is for us, of course, the domestic market; that is, North America... In the home market next year we expect a three per cent increase in total sales, giving us about twenty per cent of the market as opposed to a projected seven per cent in Europe. The Middle East continues to be our most profitable area of opecations and for next year we predict a pre-tax profit of two billion dollars; I think you'll agree a most encouraging situation . .. The situation in South-East Asia is also improving and we are aiming for sales totalling sixteen million dollars there next year. In Latin America the position continues to be difficult due to currency problems and inflation, but we nevertheless expect to establish a twelve per cent lead over our competitors there, while in Africa we expect to overtake the current market leaders during the next twelve months. Australasia, as you know, is by far the smallest market; we are aiming for monthiy sales of an average of four thousand units Looking ahead Now cover the tapescript. Look at the table and write down the information it contains in complete sentences. Begin each sentence with Next year we Example Next year we predict a three per cent increase in total sales in North America. Language input Other phrases you can use when discussing future targets are We forecast ..., We hope for ... . We project... Example We hope for an increased share of the market. 42 TE SESS SET EEE Talking about products Datafile: The product life cycle PHASE 1 value of sales launch sales low, high investment low profits Exercise 5 PHASE 3 PHASE 2 PHASE 4 market saturated sales rise continues competitors react high profitability profits start to fall | sales and profits fal! Describing the cycle Look at the Datafile and then complete this passage. In the first phase of the product cycle, there is high in production, selling and advertising, but and are low. During the phase of the lifecycle, sales is high. In a new market, react at this point. In the third » sales to rise while profits may to fall, In the or final phase of the product's life, the market is __, and and both fall. and begin to 43, UNIT 3_ THE SALES MEETING TALKING ABOUT PRODUC: Datafile: Giving a presentation Mr Lopez is going to give a presentation of a new product to his colleagues in Citrus Inc., the soft drink manufacturer. He has drawn up a rough plan of the presentation. The plan shows the sequence of his talk and some of the phrases he intends to use. INTRODUCING YOURSELF PREPARING THE AUDIENCE | GOOD MORNING, LADIES AND I'M GOING TO BE TALKING ABOUT BETTER INTRODUCE MYSELF, '‘M | THEN MOVE ON TO. | ——_ From FINALLY, I'M GOING TO. GENTLEMEN | RRA UE WE HAVEN'T ALL MET BEFORE, SO I'D | ULL START WITH ____ AND Te SS | | [HOPE YOU'LL EXCUSE MY ENGLISH: I'MA LITTLE OUT OF PRACTICE, ESE a EES DELIVERING THE MESSAGE WINDING-UP_ FIRSTLY SECONOLY ‘SUMMARIZE THE MAIN POINTS | ean THIS BRINGS ME TO MY NEXT POINT THAT'S ALL | HAVE TO SAY FOR THE MOMENT THANK YOU FOR LISTENING, AT THIS POINT WE MUST CONSIDER, NOW IF THERE ARE ANY QUESTIONS. I'LL BE HAPPY TO ANSWER THEM. NOW. TO DIGRESS FOR A MOMENT 70 GO BACK TO “AY EARLIER, POINT FINALLY... TE SS Pes Exercise 6 The new product Listen to Mr Lopez’ presentation. Below are some notes made by (OmmO) ‘one of his colleagues. Unfortunately he has misunderstood some of Mr Lopez’ points. To help correct these points, write true or false against each statement. hte a = ten nn 4 et nent week | coved vin Seinen drink for E40 raed DM ope inst ancl the prod US cer ge \ Oe lorroroted ‘have. not produce “ | the markel. 72 1708 | fees te 1 the is shrinking We ave airnin |e vantainee 590 \ ») Hees of the packao" |" cheaper both bottles ond cans perieink comes inbeth belt e low \ oe flv oe of ihe doo robe f) The calricortené ofS Tapescript Good morning ladies and gentlemen; we haven’t all met before so I'd better introduce myself. I'm Luis Lopez from the Development Department of Citrus Incorporated .. . I should say before we start that I hope you'll excuse my English, I’m a little out of practice Anyway, I'm going to be talking this morning about a new product which we are planning to launch in two months’ time; its called KOOL-OUT, that’s K-O-O-L dash O-U-T, and it’s a lemon- flavoured drink . Well, J'll start with the background to the product launch; and then move on to a description of the product itself; finally, I’m going to list some of the main selling points that we should emphasize in the advertising and sales campaign. I think if you don’t mind, we'll leave questions to the end Now firstly, as you all know, we have had a gap in our soft-drink product range for the last two years; we have been manufacturing mixed-fruit drinks and orange drinks for the last ten years, but we stopped producing lemonade two years ago; I think we all agreed that there was room on the market for a completely new lemon- flavoured drink ... Secondly, the market research indicated that more and more consumers are using soft drinks as mixers with alcohol so, in other words, the market itself has expanded. ‘This brings me to my next point which is that we have a rather new customer-profile in mind; I must emphasize that this product is aimed at the young-professional, high-income, market and not the traditional consumer of old-fashioned lemonade. At this point we must consider the importance of packaging and design, and if you look at the video in a moment, you'll see that we have 46 Pe SSS Sa ES Exercise 7 ) Colleague You Colleague You Colleague You Colleague You Colleague You Colleague You Colleague You Colleague You Colleague You completely re-vamped the container itself as well as the label and slogan ... Now to digress for just a moment, the more sophisticated packaging means a high unit cost, and this may be a problem in the selling area, but we'll have a chance to discuss that aspect later 50... to go back to my earlier point, this is a totally new concept as far as Citrus Incorporated are concerned; as you see we are using both the new-size glass bottle and the miniature metal cans. Finally, let’s look at the major attractions of the product. In spite of the higher price it will compete well with existing brands; the design is more modern than any of the cusrent rival products, and incidentally the flavour is more realistic and natural . .. it’s low calorie, t00. O.K,, so just before closing, I’d like to summarize my main points again ... We have KOOL-OUT, a new design concept, aimed at a relatively new age and income group; it’s designed to be consumed on its own, as a Soft drink, or to be used as 2 mixer in alcohol-based drinks and cocktails. It comes in both bottle and can and this will mean a slightly higher selling price than we are used 0; but the improved flavour and the package design should give us a real advantage in today’s market ... Well, that’s all I have today for the moment, thank you for listening, now if there are any questions, I'll bbe happy to answer them . . Correcting the mistakes During the presentation, one of Mr Lopez’ colleagues fell asleep. Now he has to catch up on the information he missed. Listen to his questions on the cassette and try to answer them. Example Is KOOL-OUT an orange drink? No, it’s a lemon drink. Tapescript Is Luis Lopez from the marketing department? Is the new product called TAKE-OFF? How do you spell that? Is it an orange drink? Is there a gap in the market for this kind of drink? Is the design of the product unchanged? Is it cheaper than our other fruit drinks? Does it only come in cans? Does it taste natural? 47 NE Sa Tees Exercise 8 The product presentation Mr Lopez used his plan to help him give a presentation of a new product to his colleagues. The same type of plan and the same or similar phrases could also be used in a presentation to a customer. Use the plan below and the phrases that follow to construct a similar presentation to be given to a client. Introducing yourself Preparing the audience Sa a) Now, to change the subject for a moment . b) Before I finish, I'd like to run through the main points again . ©) Pll begin by describing __, and then go on to, and I'll end with 4) In conclusion e) L want to stress... £) Good afternoon. g) That brings me to the end of my presentation. h) I'd like to talk about... 48 TSS a eee Delivering the message Winding up craenvane == | ad i) To return to the point I made earlier i) First, let me introduce myself 'm from k) Feel free to interrupt if you have any questions. 1) Thank you for your attention, m) First of all Next... n) Please excuse my rather poor English! 0) I'd like now to turn to... p) Ifyou have any questions, I'll be glad to answer them. q) At this point we have to bear in mind 49 TE Sa) eae Exercise 9 Can I interrupt here? While you were speaking your colleague, or your customer, may imterrupt to make a point. You will have to deal with it! Look at the interruptions listed below and some possible replies. Match the reply to the interruption. Interruptions a) You haven’t mentioned the price yet! b) Your product is more expensive than your competitor's! ©) Pd like the exact specifications, please! 4) I still don’t understand the difference between the deluxe and economy models! ©) Your new model seems much heavier than the old one! Exercise 10 Face the audience lel without your book. Tapescript Replies 1 [take your point... but have you taken into account the improved durabiiit 2 Yl be coming to that in a moment. 3. You're quite right, but on the other hand our product has a number of unique design features, 4. Our technical department will be able to give you an answer on that 5 Let me clarify that for you. Now listen to the tape: you will hear the same interruptions from your audience, but in a different order. You must reply. Look at the above replies if necessary, then practise until you can manage I'd like the exact specifications, please I still don’t understand the difference between the de-luxe and economy models. You haven't mentioned the price yet. Your product is more expensive than your competitor's. Your new model seems much heavier than the old one. 60 TS Ea Exercise 11 Anticipating questions It is a very good policy to try and anticipate questions or problems, and to deal with them before your audience raises them. Here are some examples of how you can amticipate I can hear you say so costly? why is this I wonder why it’s so expensive? Now, you may well ask, what does he mean by ‘up-market’? What's ‘up-market’? You will have noticed that I haven’t given any figures. Z anticipates ‘Where’s the statistical data? ‘An obvious problem at this stage is the choice of colours. Does it oniy come in black? How would you anticipate the following questions? Example (Why is it so heavy?) An obvious problem is the weight. a) Why is the delivery period so long? b) What's ‘top quality’ specification? ©) Do the accessories have to be so expensive? 4) Why doesn’t he mention the price? ) Can he prove what he says with figures? 61 TESS SSS OE : Audiovisual aids Key 7 overhead transparency 14 name card 1 blind 8 video recorder 15 name badge 2 flip chart 9 video cassette 16 slide projector 3 whiteboard 10 (audio) cassette 17 slides 4 screen 11 cassette recorder 18 projector stand 5 TV monitor 12 computer 19 remote control 6 overhead projector (OHP) 13 marker pen 20 OHP transparency pen 52 TE Se a ETT Exercise 12 The selling process Stages closing the sale Handling objections Discussing customer needs Social conversation Presenting the product Look at the pictures below illustrating the stages in the selling process. At the bottom of the page are the names of the stages; write in the name of each stage under the appropriate picture. Did you go on holiday this a) Contacting the customer 3 year? {And you will need | etraning for your sta, won't yor We are using state-of-the-art technology. So we'll put you down for 5000. 53 TE LETTE Exercise 13 Jackson Gray Jackson Gray Jackson Gray Jackson Gray Jackson Gray Jackson Exercise 14 = Arranging a meeting Look at this telephone call from the sales representative to a potential new customer. Try to guess the words missing from the conversation. If you cannot guess, select the missing word from the list that follows the dialogue. Tapescript Hello, Jackson . Good morning, Mr Jackson, this is Mike Gray from Multiscan Industries Er, yes, what can I____ for you? Well, as you probably know, we are anew of high-performance microprocessors. I am going to be visiting your next week and I wondered if you would be in discussing these new ___ and perhaps having a__? M-m-m, yes, I would certainly be interested Good, would Wednesday morning be -_ ‘Ah, Wednesday is a bit _____; I’m tied up all day. How about Thursday? Thursday would be fine, Can you let me have an hour or so pen in the afternoon? Yes, I think that would be possible. Say, four o'clock? Excellent, well, I'll look to seeing you on Thursday then. Goodbye Goodbye office convenient sometime range interested models difficult forward do introducing demonstration Over to you! Now listen to the conversation on the cassette to check your answers, and then call Mr Jackson yourself. 54 CESS Sa aS Exercise 15 eal Exercise 16 Discovering needs Listen to your customer talking and note down his requirements on the following check list, Mark each point that applies. The first thas been marked off. Pe portable gf | fixed heavy lightweight small full-size constant occasional use use glossy matt glossy matt black black colour colour batteries mains adaptor | light-sensitive electricity | plug cells covered exposed different constant controls controls temperatures | temperature 8000 10000 immediate | delayed delivery delivery Tapescript ‘We need a machine that is completely portable, small, lightweight; small enough to fit into the palm of a hand or @ coat pocket, but powerful enough to compete with a full-size model. We are looking for something that is visually attractive; either a glossy finish in a bright colour, or matt-black. It’s got to be tough, tough enough to stand up {0 constant use, and the controls must be covered up or protected. It will have to be adaptable for use in different temperatures and with both batteries and an electrical current supply, As you know, the current varies from country to country so an adaptor plug will have to be supplied. We require a first delivery of about five thousand and want it as soon as possible Asking about the customers’ needs Look at the tapescript and underline the verbs used by the customer to express his requirement. The first verb to underline is need. Now use the underlined verbs to ask your customer about his needs. Write down your question. Example Do you need a machine that is completely portable? 55 Exercise 17 Probing questions Language input Another way of asking specific questions is to make a statement and add a question phrase at the end. if the statement is about a situation in general, you use the present simple tense. The question phrases used with the verb to be are isn’t it? isn’t he? isn’t she? aren't you? aren't we? aren't they? Example Your company is interested in export, isn't it? You are responsible for purchasing, aren't you? | Exercise 18 Now complete these questions, a) Running costs are a problem, = ==? b) They are your biggest competitors, —____ ¢) Seasonal fluctuation is a problem, 4) Your corporate image is very important, __ e) We are in agreement about your needs, f) The 606 is difficult to operate, g) These new components are overpriced, — _____? Suggesting more needs Language input If the question is about the situation in general, and the verb is not the verb to be, the question phrase is doesn’t it? doesn’t he? doesn’t she? don’t you? don’t we? don’t they? Example The old models sometimes malfunction, don’t they? You generally buy from Exovac, don't you? Exercise 19 Now complete these questions. a) You usually use imported components, b) You sometimes have trouble with servicing, ©) They sometimes deliver late, d) We always deliver on time, ___ €) Your customers complain about the quality, f) The current model costs 2 lot to adapt, 2) This product outsells its rivals, > The current situation Language input H you are talking about the immediate present, you use the present continuous tense, with the same question phrase as for the verb to be. Example You are considering a change, aren’t you? They are developing a new system, aren't they? 56 Exercise 20 Now complete the sentences. Example (Your subsidiary/introduce/ more up-to-date system 2) Your subsidiary is introducing a more up-to-date system, isn’t it? a) The government/impose/import restrictions ... ? b) Some of your machines/become/obsolete .. . ? ©) Consumers/change/their buying habits... ? 4) Your main competitor/ewwhis prices ) Youlimprove/your retail network f) Weswork/in the same field Responding to customers’ needs Below you will sce some customers’ requirements and some responses to the salesman. Match the response with the need in each case: We are looking for something that is not too fragile and not too difficult to operate a) We require supplies of these products very urgently b) I need some details on paper to show the technical department. ©) We have got to save money on operation costs and save time on maintenance d) We are not prepared to pay more than the market price ©) We want something new! 87 Our product is very strong and durable and extremely simple to use Responses 1 This is, the very latest design and intérperates ‘the thost up-to-date technology. 2 I think you'll find that our prices are most competitive. 3 I have all the specifications and technical data right here po 4 It is very economical to run and easy to maintain. “= 5 No problem. We can guarantee delivery within three weeks. SS ESS Exercise 21 At the trade fair Language input When you offer something to a client or customer, you say: Would you like? soot Example Would you like |a brochure? / 4°. to meet our representative? me to introduce you to our agent? Now offer your client the following, using would you like? Example (Contact/our agent) Would you like to contact our local agent? a) free sample b) talk tofour technical specialist ©) me/show you our stand d) our salesman/call on you €) demonstration £) discuss prices and terms g) usicontact your purchasing department hh) see some less expensive models i) catalogue (US: catalog) j) leave your company name and address with us Exercise 22 Asking and offering ‘Now listen to the cassette, Your boss will tell you what to say to the Fe) customer. You must then say it immediately using Would you like ... Practise until you can make the sentences without looking at the book. Example (Offer him a free sample) Would you like a free sample? Tapescript Boss Offer him a free trial You Boss Ask him if he'd like to visit our factory You Boss Offer her a free demonstration tomorrow morning You Boss Offer to send his head office a price list You Boss Ask him if he'd like to discuss performance guarantees You Boss Offer to talk to the local agent about reciprocal trading You Boss Offer him help with staff re-training You 58 Exercise 23 Closing the sale Coming to an arrangement Language input When we are talking about conditions we often use sentences made up of two parts. In one part we use the word if with the present simple tense; in the other part we use the future tense with will. Example If you settle promptly, we will give you a five per cent discount. If you have any problems, our local agent will handle them. Exercise 24 Practise making sentences like these from the phrases below. Example (agree to our terms/arrange free delivery for three months) If you agree to our terms, we will arrange free delivery for three months. a) pay in hard currency/guarantee no price increase for 18 months b) take over 2000 units/grant you a discount ©) place a regular order/send you the first consignment free of charge d) give us all your business/offer you a buy-back facility €) share the advertising costs/assist you in promoting the product Asking about terms When you are suggesting or asking for an arrangement, you can use the same verb forms in a question. Example If we agree to your terms, will you arrange free delivery for three months? Now ask questions using the phrases in Exercise 23 (change ‘you’ to ‘us’ where necessary), 59 TSS ESE Exercise 25 Future relations Look at the conversation between Mr Dipak and Mr Savage and fill in the gaps with the phrases listed below. Dipak Well, that takes care of the financial details. Savage Yes, I think so, I'll complete the order form on your behalf and our accounts department will send a pro forma invoice Dipak Well, I think that’s everything; it’s been an interesting meeting Savage Yes, indeed. Now, regarding , Y'll arrange for our service department to contact your technical people to agree a timetable for inspection and maintenance visits Dipak’ Will you be coming to see us yourself? Savage Well, I expect to be visiting your country —__ — but , PIL make sure our local agent calls in We will send you a and details of any _____ direct from head office. Dipak Fine, fine . Savage Well, it’s been a pleasure doing business with you and I look forward to seeing you again a) product-range update ) from time to time b) in due course £) in the meantime ¢) after-sales service g) in the very near future d) price movements h) on a regular basis Exercise 26 The end of the meeting — Now listen to the cassette to check your answers. Exercise 27 In other words Look at the phrases used in Exercise 25. Below are explanations of these phrases. Match the explanation to the phrase. very soon follow-up maintenance, replacement or repairs every week or every month or every three months, ete. now and again while we are waiting price increases or cuts changes in the products available at the proper time TSS Rss Discussing the market ing about products The sales call d) e) 8) h) i) P) @ fo) s) » Progress check What are the main responsibilities of the marketing department before the product launch? ‘The wholesalers sell to the sand they sell to the , who are sometimes called sor s. You can say ‘Next year we expect sales of four million’ or ‘In the coming year we four million total sales’. In the final phase of a product's lifespan, the market is and sales and profits ‘What do you say if you want to apologize for your English before speaking? What can you say to prevent the audience interrupting? How do you tell the audience you are going to sum-up? How do you tell them you are finishing your talk? What can you reply if your audience says ‘It’s very expensive!” and ‘You haven't mentioned any figures yet!” then you telephone a customer to arrange a call, how do you roduce yourself? How do you ask for about two hours of his time? ‘We need a faster photocopier’, Which words or phrase can you use instead of need? Ask your customer about these possible needs: more efficient servicing; a cheaper model; a different finish Turn these statements into questions. ‘You're moving to bigger premises.” ‘Your competitors always buy abroad.’ ‘Iv’ rather expensive.” “Your boss prefers our system.’ Your customer says: ‘We need these components quickly!” What do you say? Offer your customer: plant; a price list, Your customer says: ‘We need some product literature to look at.’ What do you say? Ask your customer if he, or she, would like: to meet your boss; to look around your display stand; to see a demonstration, Ask your customer to make immediate payment in return for a five per cent discount. What do you say to your contact just before shaking hands and saying goodbye? discount; a free sample; a visit to your 6 Ta CUES AMNSWETS Exercise 1 Desktop (in order): A.B.L; Marcus Industries; Perry Hamilton; Crown; Unitec. Laptop (in order): Marcus Industries; Crown; Contacts A.BLL} Unitec. European market: Unitec 28%; Crown 21%; A.B.I. 19% Marcus 6%; various 26% Exereise 2 a) product; market; test b) pricing ¢) agency; advertising 4) media; below-the-line e) T.V.; radio; newspapers; magazines; posters £) promotions; public relations; special offers g) sales; forces wholesalers; retailers; users) customer; consumer i) retailers j) outlet; point ky) aftersales. Exercise 3 See tapescript. Exercise 5 life; investment; sales; profits second; rise; profitability; competitors} phase; continue; start; fourth; saturated; sales profi Exercise 6 True: d, e, g, jl the rest are false. Exercise 7 No, he’s from the development department. No, it’s called KOOL-OUT. K-O-O-L new word 0-U-T. No, it’s a lemon drink. Yes, there is (a gap in the market for this kind of drink). No, the design of the product is not unchanged. No, it’s more expensive than our other fruit drinks. No, it also comes in bottles. Yes, it does (taste natural) Exercise 8 fj, m, hy c ky m, 0, 4 i, 62, b Bd bP Exercise 9 42; b3; cl; d5; el Exercise 11 (suggestions): a) I can hear you say... b) Now you may well ask, what does he mean by... ¢) An obvious problem is the cost of the accessories. d) You will have noticed that... e) Now you may well ask Exercise 12 a) Contacting the customer _b) Social conversation ¢) Discussing customer needs d) Presenting the product e) Handling objections f) Closing the sale g) Establishing follow-up and goodwill Exercise 13 (in order): do; introducing; range; offices interested; models; demonstration; convenient; difficult; sometime; forward. Exercise 15 portable; lightweight; small; constant use; matt black; glossy colour; batteries; mains electricity; covered controls; different temperatures; 5000; immediate delivery Exercise 16 Do you need ... , Are you looking for ... , Do you require ..., Do you want ... followed by the information given in the tapescript Exercise 17 a) aren't they? b) aren’t they? ¢) isn’t it?) isn't it? fe) aren’t we? f) isn't it? g) aren’t they? Exercise 18 a) don't you? b) don't you? ¢) don’t they? d) don’t we? €) don’t they? f) doesn't it? g) doesn't it? Exercise 19 a) The government is imposing import restrictions, isn’t it? 'b) Some of your machines are becoming obsolete, aren’t they? ©) Consumers are changing their buying habits, aren’t they? d) Your main competitor is cutting his prices, isn’t he? e) You are improving your retail network, aren't you? f) We are working in the same field, aren't we? Exercise 20 5; b3; cj d2; el Exercise 21 See example, Exercise 22 Would you like a free trial? Would you like to visit our factory? Would you like a free demonstration tomorrow morning? Would you like me to send your head office a price list? Would you like to discuss performance guarantees? Would you like me to talk to your local agent about reciprocal trading? Would you like help with staff re-training? Exercise 23 See example Exercise 24 See example Exereise 25 (in order): bs cs @ & hs a ds g Exercise 27 a) changes in the products available b) at the proper time 62 TSS a COS Try it yourself ©) follow-up maintenance, replacement or repairs 4) price increases or cuts) now and again f) while we are waiting g) very soon h) every week, etc, Progress check a) Market research; test-marketing; price policy. ') retailers, customers; end-users; consumers. ¢) predict/forecast/are aiming forhope foriproject. d) saturated, fall e) I hope you'll excuse my English, I'm a little out of practice/please excuse my rather poor English.) I think, if you don’t mind, we'll leave questions to the end. g) Before closing (I finish), Pd like to summarize (ran through) the main points again. hy) That's all T have to say for the moment/That brings me to the end of my talk. i) You're quite right, but ... I'll be coming to that in a moment. i) Good morning ..., this is... from... k) Can you let me have a couple of hours in the morning/afiernoon? 1) Require!wantare looking for. m) Do you need/require/want more efficient servicing? a cheaper model? a different finish?) You're moving into bigger premises, aren't you? Your competitors always buy abroad, don’t they? It's rather expensive, isn't iP Your boss prefers our system, doesn’t he? 0) No problem, we can guarantee delivery within ... p) Would you like... a discount? a free sample? a visit to our plant? a price list? q) I have all the details/dataf literature right here. F) Would you like to meet my boss? to look around our display stand? to see a demonstration?) Will you make immediate payment if we guarantee a five per cent discount? ¢) It’s been a pleasure doing business with you and I look forward to seeing you again in the very near future Now that you have finished the unit, try to manage without the book. Use Unit 3 on cassette 2, side 2, On this section of the cassette you will meet many sales situations. Practise until you can do the section (which lasts about five minutes) without stopping your machine Sas AGENDA UNIT 4 TERMS AND CONTRACTS AGENDA Situations Action Negotiating Questioning the Exercise 1 conditions conditions Negotiating Datafile: Negotiation Exercises 2, 3 and 4 Difficulties Exercise 5 International Datafile: Incoterms contract terms | Understanding Contract vocabulary Exercise 6 contracts Licensing terms Exercise 7 Contracts of sale Exercise 8 Agency agreements Exercise 9 Progress check Answers Try it yourself 64 CE Se NEGOTIATING CONDITIONS: Negotiating conditions Exercise 1 Questioning the conditions a) In the list below, you will see many of the conditions which are common in various kinds of business agreement. First, read the list of conditions and the examples. A Pas Conditions Examples unit price $15.00 per unit minimum quantity at least 10,000 units credit period 30 days after invoice delivery date 20 June 1993 bulk discount 242% if over 10,000 units penalty clause 5% for each month of delay cancellation clause 50% charge if cancelled less than six weeks beforehand exclusivity sole rights over all East Coast states royalty on sales under licence 3% of turnover on licensed goods ‘commission 5% on sales in the territory early settlement discount — 2% if paid within 20 days option period first option for 12 months after contract method of payment irrevocable letter of credit warranty period 18 months warranty from completion b) Now cover the right-hand column, Try to think up examples of the conditions you see on the left. Example unit price: $10.00 per unit. ¢) Then cover the left-hand column and try to remember the name of each example on the right. Example 30 days after invoice: credit period. 4) Now try to question the conditions on the list. Example Pm not too happy about the unit price. I think $8.2 would be more reasonablelappropriate. When you have questioned all the conditions, try to do the exercise again with the left-hand column covered. I SE NEGOTIATING CONDITIONS: Datafile: Negotiation Below are the stages of a negotiation and some expressions which you may find useful at each stage. Conversation (1) I'm sure/confident we can reach agreement. (optimistic) I'm sure there's room for negotiation. We have a lot to discuss. Let's see how we get on. (cautious) Presenting your position (2) This is our position. This is how we see it. We think the following is reasonable/appropriate. ‘Our approach is this. Questioning the other's position (3) How do you | explain your attitude? justify... ? account for... ? arrive at... 2 Why do you want... ? {Why such a | high charge? long delivery period? low discount? Refusing to accept (4) a I'm sorry, | can't accept 2%. je, You'll have to do better than that, I'm afraid. I'm afraid it's not enough. | Other firms offer more than 2%. | Refusing to move (5) 'm afraid | can’t agree to | that. | increase the rate. lower the price. shorten delivery. We've done our best for you. We have to maintain a policy. | have my instructions. Suggesting a compromise (6) May | make a suggestion? If you... then we may be able to We may be able to... but only if you Unless you . . . there is no question of our being able to Reaching agreement (7) Let's just go through the terms. ~} Let's summarize the conditions. CS SON PENSE Exercise 2 (exo) Supplier You Supplier You Supplier You Supplier You Supplier You Supplier You Supplier You Supplier Exercise 3 ox) Your tum to negotiate! Now you have the opportunity to negotiate. On the cassette you are negotiating delivery periods for machines you have ordered with the supplier. When he stops talking it is your turn to speak. You speak in turn until an agreement is reached. To help you with each answer you are given some information in the tapescript below and a number which refers back to the Datafile. Tapescript Well, let’s get started. You know, with this delivery problem I’m sure there’s room for negotiation. (1: cautious) Right, well this is how we see it. We can deliver the first machine in ten weeks, and install it four weeks after that. (3: long delivery period) Well, these are in fact the usual periods. It’s pretty normal in this kind of operation. Did you expect we could deliver any quicker? (2: 6 weeks maximum delivery; 4 weeks installation) I see what you mean, but that would be very difficult. You see we have a lot of orders to handle at present, and moving just one of these machines is a major operation. Look, if I can promise you delivery in eight weeks, does that help? (4: too late) Ab-ha! Well, look ... er ... You want the machine in six weeks. ‘Now that is really a very short deadline in this business. You said that you couldn't take it any later, but couldn’t your engineers find a way to re-schedule just a little, say another week? (5: refuse) Well, you really are asking us for something that is very difficult. I’ve already offered you seven weeks. I'll have to consult with my colleagues and come back to you, but I can’t see what we can do. (6: if deliver in 6 weeks perhaps talk about further order) Well, on that basis I suppose we might be able to look at some kind of arrangement. In fact, if you can promise another order I think we could accept your terms, (7: 6 weeks delivery; 4 weeks installation; decision on next order by 26th of this month) Exactly. If you could confirm this in writing I More negotiating After doing Exercise 2, here are three more activities you can try. a) Negotiate with the supplier on the cassette but without looking at the book. b) Negotiate again, this time using different expressions taken from the Datafile, ©) Try to use these new expressions with the supplier, without your book. 67 TMEV DEEN Exercise 4 ¢ Ten rules for negotiating Dr Ed Zap is holding a two-day seminar on negotiating techniques. At the end of the first morning he gives the group his ten rules for ney gotiating. Here they are, TEN RULES FOR NEGOTIATING 1. Find out how many points are to be negotiated. 4 Seex oopan e AS ope An etree POOR, ca, cores 3 16 the other person owés you 4 Concession. Don’t concede without exchange. BEE he value of yous jerat8 the value of your concessions, minimize the value of the other POPEON’S, osserhaver it-on ‘principle’, expect @ concession in return. what you are prepared to carry out. Don't show disrespect to the other person. If you’re happy with the result, don’t shout ‘I've won!’ couple Read Dr Zap’s rules and then look at the remarks in list A. These remarks are not good for negotiating. Instead, use phrases from list B. Which one would you use in each case? Example Instead of You see? I knew I'd win! say I think we can agree on these terms. a) b) °) d) 8) h) A You see? I knew I'd win! J I know what you want to discuss, so let’s start. I can reduce the price. Does that help? Delivery? That’s no problem; no extra charge. It’s against your policy to give discounts? OK. What a ridiculous idea! Don’t be stupid. Another half per cent? Yes, that’s a very generous offer you're making. This is my final offer. If you refuse, I'll cancel everything. B 1) If you increase the order, then we may be able to reduce the price. 2) Very well, but if you can't give discounts, I’m sure you can extend 3) If you can’t accept this, I may have to reconsider my position. 4) T think we can agree on these terms. 8) 'm afraid that will not be possible.’ 6) May we go through the points to be discussed before we begin? 7) Half a per cent is a very small amount, 8) Delivery? Well it may be possible but only if. PRS PENNS Exercise 5 When things get difficult In their negotiation exercises the managers on Dr Zap’s seminar sometimes find themselves in difficult situations. English-speakers know a key expression for each problem situation, \ Just give me a moment to do some calculations. | think we need to look at the exact figures. I'm sorry, could you go through So is that quite clear...? that agan? Yes, | think we're talking at cross-purposes. | don't think we're talking about the same thing. I'll have to come back to you on this. p Can we say it's agreed here and now? / Where does this January figure come from? Let me just check. Could you bear with me a moment? So what is your basis of calculation here? I'm sorry, | don't have the figures to hand. Which key expression would you use in the following cases? Example The other person has just realised that you are talking about different products! You say Yes, I think we're talking at cross-purposes. a) The other person wants you to agree a definite price today, but you need to consult your boss at the office tomorrow before committing yourself. b) Helshe suddenly asks you what discount you would make for a very large order indeed. You need a minute to work it out. ¢) Helshe asks to see the commission payments for she last three years. You didn’t bring these figures because they are not really important. 4) Helshe suddenly asks the price of similar products in the range. You have the price list in your briefcase - somewhere. ¢) Helshe has already explained the commission system twice, but you are still not really clear about it. £) You have been talking about air transportation costs while they have been talking about costs for transportation by sea. They suddenly realize and point this out. 69 UES SUES Ieee Datafile: Incoterms Incoterms are used in international import/export contracts to show the responsibilities of the buyers (importers) and sellers (exporters). They define who is responsible for '‘freight” or “carriage” (transportation), insurance against risks, "'duty” (import taxes) and “clearance” (import and export documentation). Ex-works (EXW) Goods are made available for collection from the seller's factory, The buyer is then responsible for all costs of transportation, insurance, etc. Delivered ex-quay (DEQ) The seller is responsible for deiivering goods to the dockside at the port of importation and for duty and clearance. LLY BS Delivered duty paid (DDP) The seller is responsible for all costs (including duty) of delivering goods to a named place in the buyer's country 70 seller's rae arrow Delivered ex-ship (DES) The seller is responsible for the goods until they are on the ship at the port of importation. The buyer is then responsible for import duty, clearance and all further costs. Delivered at frontier (DAF) The seller is responsible for delivering goods to an international boundary or border and for export clearance. The buyer is then responsible for all further costs including import duty and clearance. Delivered duty unpaid (DDU) The seller pays costs of delivery to a named place in the buyer's | country, but the buyer is responsible for import duty and clearance. TSSOP Ie Cost, insurance and freight (CIF) The seller is responsible Cost and freight (CFR) for all costs of delivering The seller is responsible for all goods to the buyer's costs for delivering goods to a named port of destination. named port of destination, except This includes the costs for insurance which becomes the of insurance for the buyer's responsiblity when the whole journey. goods are put on the ship. ah COLL Carriage paid to (CPT) The seller is responsible for transportation costs and for insurance for delivery of goods to the buyer's named destination. Free on rail (FOR) The seller is responsible for the delivery of goods to a named railway station. The buyer is then responsible for all further Free on board (FOB) The seller is responsible for delivery of goods onto Free alongside ship (FAS) ‘The seller is responsible for a ship or a plane. The | iy the delivery of goods only to buyer is then the dockside before they are responsible for all transferred onto a ship. The further costs. buyer is then responsible for all further costs and for export clearance. n PMS See ae CESS Exercise 6 Understanding contracts Vocabulary for contracts ‘The words below are often used in connection with contracts. Use some of them to complete the sentences which follow. You may need to put certain words in the plural. Use a dictionary to help you. Aa 3, ween? fore ss “termi “Clause oy no2 + dgreement pao sondition binding *** compromise __ party “csprovide for arbitration breach» 72+/""“comply with! “litigation out of court, term abide by ae a) A contract is an drawn up between two It is divided into > >and b) The contract___ any problems between the two parties. The conditions of the contract are on toth parties. If one party does not the clauses, Exercise 7 this is called a of contract. €) In the case of a dispute, many contracts provide for _ but in some cases the dispute results in ‘Most parties reach a______ without going to court, and the dispute is settled — 4) Some contracts are for a fixed period, or 5 also, there are ways in which the parties can end, or ____, the contract Licensing terms You have asked a US firm if you could make one of its products under licence, in your own country. Here is part of their answer But what do the iegal terms really mean? Replace the underlined terms with tke phrases listed below. ‘We've checked with our legal department. Yes, we are the patent holders for the XT7. We are prepared, in fact, to grant you a licence to make it in your own territory on these conditions: there would be a feo on agreement and then a royalty of 5% with s minimum ‘annual royalty of $60,000. The tarm would be four years, with the possibility of renewal on expiry. And, of course, in the event of any infringement, as our Hesnsee you would have to apply for an injunction on the infringer’s production. let you have yearly bottom limit illegal copying official manufacturer have the legal rights over copier’s further years period country ask for a ban when it ended permission 4." an immediate payment 5% to pay 72 TS PIPES NE Exercise 8 Contracts of sale Language input If a question begins with a question word (when, why, what, how much, who etc.) the structure is: question word + auxiliary verb + subject + rest of sentence. Example When + shall + we + make the last delivery? Note: Shall is used for questions with | or we. Shall is also used in legal documents. Will is most common for spoken English You work for AB Supplies. Your director is asking you about the contract with Collinson Retail, a major customer, By reading your answers carefully and using the information in the contract, decide what his questions are. Example When (will we receive the second cheque)? Thirty days after delivery. 8. Payment shall be made by cheque, and the terms of payment shall be as follows: 25% payable upon the placing of any order 80% payable 30 days after delivery of the product as ordered 25% payable 60 days after delivery of the product as ordered. 9. AB Supplies shall deliver to and Collinson Retail shall accept all orders in bulk at one delivery point. The initial order will be delivered no later than 31 January 1993, 10. AB Supplies shall not be liable for any damages whatsoever (including loss of trade or profit) incurred by Collinson Retail in the ‘event of delivery being frustrated or delayed by strikes lockouts riots trade disputes acts or restraints of Government impositions on exportation or arising from any cause not within the control of AB Supplies. a) When No later than 31 January. b) When Upon placing the order. ©) Where To one named delivery point d) Who Don’t worry; we have a clause in the contract about problems beyond our control. So we don't have to do anything at all. e-) How By cheque. 73 CNS CEE Exercise 9 The agency agreement You have an agency agreement with a European company. You distribute their products in your African territory but recently there have been certain problems. While on a visit to Europe, you bring up these problems with the company. Use your notes and the extract from the agency agreement to explain your position. Begin each point with According to the agreement you have to... But recently ... Example According to the agreement you have to refer all enquiries to us. But recently you sold 3,000 units direct to Oboto Stores. 1 Company sold 3, 000 units direct to poto Stores! 2 ‘The publicity they sent was int h! . oie is the money for last year’s 7a Py commision atte 5 Why wasn’t it paid on time? ‘The Company agrees not to sell the goods to any other Person or firm in the territory. It further agrees to refer all inquiries to the Distributors. 7. The Company agrees to provide free of charge sale leaflets, aids and manuals in the language of the territory. . The Company agrees to repay the Distributors to the extent of one half of their publicity disbursements within six months of the carrying out of such schemes. 9. The commission will be six per cent of the invoice amount of all transactions in the territory, payable within one month of the end of each quarter-year. Vo 74 CME SE Peres Negotiating conditions Incoterms Understanding contracts b) ©) d) e) 8) ‘h) i) %) » m) 0) Progress check What type of condition or clause is each of the following? a) at least 1,000 units; b) +5% for each month of delays ©) ~ 2% if paid within 20 days. ‘The supplier has given you a unit price of £5.50. You do not like it, and want to pay £5.25. How can you tell him this? The supplier wants to increase the price by 4.5%, but you don’t understand why. What do you say? A negotiator asks you to reduce your price. How do you refuse? How can you check that you are both sure of the terms you have agreed to? He wants an immediate decision, which you cannot make! What do you say? In the figures your agent has given you, there is a mysterious figure of $10,000. How do you ask him about it? The customer didn’t understand your explanation. Try again! You have lost your price list somewhere in all the other papers. While looking for it, what do you say? In the language of Incoterms, the supplier is called the and the buyer is called the A contract can be by agreement of the two parties, or can just _____at the end of its If you want to mention your obligations stated in an agreement, how do you begin? the agreement, Contracts are _____ on both parties, and if one party does not the terms this is a of contract. A licence is granted by 2 toa Agents receive____; patent holders receive 7 Se COREE OS Answers Try it yourself Exercise 2 Suggested replies: Let’s see how we get on. Why such a long delivery period? This is our position. We need delivery of six weeks maximum, with four weeks for installation, I’m sorry, but I can’t accept eight weeks. You'll have to do better than that, I'm afraid. I'm afraid T can't increase the delivery period any further. I have my instructions. May 1 make a suggestion? If you can promise delivery in six weeks, then we may be able to talk about a further order. Let’s go through the terms: six weeks for delivery and four weeks for installation; and the decision about the next order to be taken by the 26th. Agreed? Exercise 3 See Datafile for alternative replies. Exercise 4.a)4 b)6 c)1 d)8 e)2 f)5 g)7 h)3, Exercise 5 a) I'll have to come back to you on this. b) Just give me a ‘moment to do some calculations. ¢) I'm sorry, I don’t have the figures to hand. d) Let me just check, could you bear with me a moment? e) I'm sorry, could you go through that again? f) Yes, I think we're talking at ‘cross purposes. Exercise 6 a) agreement; parties; sections; clauses; conditions. b) provides for; binding; abide by/comply with; breach ¢) arbitration; litigation; compromise; out of court, d) term; terminate, Exercise 7 (in order): have the legal rights over; let you have; permission; country; an immediate payment; 5% to pay; yearly bottom limit; period; further years; when it ended; illegal copying; official manufacturer; ask for @ ban; copier’s. Exercise 8 a) When will the initial order be delivered?) When shall we pay the first 25%?) Where shall we deliver to? _d) Who is liable for damages if there are strikes? e) How shall we pay? Exercise 9 a) According to the agreement, you have to provide publicity in the language of the territory. But recently you sent publicity in English! 'b) According to the agreement, you have to repay publicity costs within six months. But recently you haven't paid our radio publicity costs. ) According to the agreement, you have to pay six per cent commission But recently I only got four per cent. d) According to the agreement, you have to pay commission within one month, but recently you haven’t paid on time Progress check a) 1) a minimum quantity; 2) a penalty clause; 3) an early settlement discount. ) I'm not happy about the unit price. I think £5.25 would be more reasonable/appropriate. c) Where does the figure of 4.5% come from? What is the basis of calculation? d) I'm afraid I can’t reduce the price any further. We have to maintain a policy. €) Let’s just go through the terms. ) I'll have to come back to you on this. g) Where does this figure of ten thousand dollars come from? h) Would you like me to go through that again? i) Could you bear with me a moment? }) seller; purchaser. k) terminated; expire; term. 1) According to. m) bindings comply with/abide by; breach, ) patent holder; licensee. 0) commission; royalties. Now that you have finished the unit, try to manage without the book. Use Unit 4 on cassette 2, side 2. On this section of the cassette you will have to negotiate terms and discuss contracts of various kinds. Practise until you can do the section (which lasts about five minutes) without stopping your machine. 76 TEL EST : UNIT 5 FINANCE AGENDA Finance and the product Situations Discussing profitability Comparing budget with actual costs Predicting future costs Reviewing the project Action Exercise 1 Exercises 2 and 3 Exercise 4 Exercise 5 Finance and the customer Explaining currency arrangements Arranging international payment Controlling customer accounts Exercises 6 and 7 Exercises 8 and 9 Exercise 10 Datafile: Credit control Finance and the Describing financial Exercises 11 and 12 company procedures Datafile: Cash cycle Discussing company _Datafile: Profit and Loss accounts Account Exercises 13 and 14 Datafiie: Balance Sheet Exercises 15 and 16 Analysing company Exercise 17 performance Progress check Answers Try it yourself Exercise 2. Costs and costing Complete the following passages using the terms below. Costs such as materials, relating directly to the product in question, are called costs. Other costs are . The calculation of costs is called __. A costing technique which uses pre-determined standards is known as —_. For each product there is a fixed for materials and for labour, and also a fixed charge for the share of the which are ___ to that product. Stages in a process or production may be known in costing terms as » The real, or cost, is not always the same as the cost. Differences, which are called ______, are carefully examined. variances cost centres direct charge indirect costing overheads budgeted allocated actual standard costing Exercise 3 Comparing actual and budget costs Here is a summary of actual costs compared to budget costs over a six-month period. Compare actual to budget using the expressions abovelup on and below/down on; express the variance using by Example Direct wages were above (up on) budget by $550,000. Indirect wages were below (down on) budget by $150,000. Six month costs analysis Summary: January - July 1993 Variance Actual cost Budget favourable/(adverse) Cost $000 $000 $000 Direct wages 9550 9000 (850) Direct materials 12500 11000 (1500) Factory costs 3760 3500 (260) Indirect wages 4350 4500 150 Selling and distribution 2550 2750 200 Administrative costs 2960 2700 (260) TOTAL COSTS 35670 33450 (2220) 79 TEES GENRE NP aaa Pe Exercise 4 Predicting future costs You are considering whether to invest in a new system of data communications. The future costs are an important factor. Language input To predict future events, after the condition if + present tense use the simple future: will + infinitive. Example If the system is successful, we will make a lot of money. ‘A DECISION TREE Now say what will happen if you make each of the six choices on this decision tree. Begin with If ... Example If we install the Teledec system, and it is unsuccessful, it will cost us $3,000,000. Costs (8) Tesaanon choose Teedes sooo ‘ysiem a a installation ‘choose Inforum successtul 900,000 system installation ->—_ unsuccessful 3.400.000 do nothing ‘commission a feasibility study [so notpreeg soo 000 e Exercise 5 Reviewing the project Below is a chart showing the progress of a plant installation contract. The project is being reviewed on Ist May, Study the chart, and then construct sentences about the past and future costs, using the notes which follow. Example At the end of February actual costs were down on/below budget by $20K. Useful phrases: above (up on), below (down on), the same as. Duageree 5k time now planned completion ated ne war Tage Tay waeg T Sep Tet Tow T bee The story so far: Looking ahead: sete a) At the end of February, a) If we proceed, the compton actual costs/budget/S20K total project/cost $270K b) In mid-March, actual b) If we proceed, welcomplete costs/budget project in February ©) At the moment, actual ©) Ewe proceed, total costs/budget/$30K projecybudget/$50K a UNIT 5_ FINANCE ERENCE TCL Finance and the customer Exercise 6 Talking about currencies ‘This person is confused by the jargon of foreign exchange and currencies. Can you explain the terms to him? You see, dollars, yen, francs, sterling, are all different Some are strong, others are and they all vary. There are always problems of foreign if the exchange changes suddenly. If one currency rises or falls another, the can cause losses. Most firms avoid too much to currency variation. One form of protection (or ______)is in case the rate changes. Multinationals sometimes coordinate their in foreign currencies by operating an invoicing company, vonand tab widened [TRADE EXCHANGE RATES AND RESERVES In the year 1o March France’ visible rage cic narrowed w $14 0 $139 bien. asralias12- mon ade surpls el sighs March 0 $41 lion cutentaecou dee was unchanged at $92 [hon Sweden's crrertxcount defi eas $. ban i he eto Feary. The ade ee ged Ooms ase 09% feet R f 8 1g Se ‘OREX |ANGES: BRS mone, IG) AGN EXCH = ise 3 a Dollar ron Se | eM eo” a) 2 ais. |\Dol 81 CES GS Exercise 7 A word from the Corporate Treasurer Your firm is a member of a multinational group. Like the other firms, you make your own arrangements for foreign exchange. At a meeting of group Financial Controllers, however, the new Corporate Treasurer shows that a change of system is needed. Make notes of what he says, using the following plan to help you. (Afterwards, check your notes by looking at the tapescript.) Problems 1 2 Reason New company and its role Procedure 1 2 3 Tapescript OK. Foreign exchange. We've got problems. Two problems. The first is that, as a group, we have too much exposure to currency variation, and that can mean losses. Big losses. Second, money costs money. All your hedging or transferring money costs a lot in time and money. And you know why we've got these problems? It’s because as a group, we're not coordinated. There’s no real group policy for foreign exchange. Right. Things are going to change. First, there’s going to be a new company. This is going to be called the group Invoicing Company (we'll call it the I.C. just for now), and the role of the I.C. is going to be to coordinate all foreign exchange transactions: for every part of the group. Right. How’s it going to work? Procedure. First, you always invoice customers in your own currency (dollars, pesos, lira, whatever you use), always: if possible. But, if you have to invoice in a foreign currency - and this is the second option - then invoice the new I.C. company. In your own currency. OK? And then the last step is that the I.C. will then invoice the customer for you, in the foreign currency. So everything passes through the I.C.; got it? Right; now let’s take a look at the details. I know some of you are probably thinking . .. 82 Tin Exercise 8 = Exercise 9 NCEP Arranging intemational payment Meanwhile, at a group training seminar in England, export sales executives are listening to a Senior Finance Manager. He is briefing them about the payment systems between the firm and its different customers. During the talk, one of the executives has to leave the room for a moment. Can you complete his notes while the Finance ‘Manager (on the cassette) continues his talk? You may need to listen to the cassette two or three times. uu Tapescript So: there are four systems that we use. Cash with order is ideal: but ‘most customers want a period of credit, so it’s not always easy to insist on the cash first. The next one I mentioned was Open Account; and there are three ways that open account customers can pay us: by cheque, by telegraphic transfer, or by mail transfer. BUT: we don’t give a customer open account facilities until we have business references from two major firms and from a bank. Open account is OK with people you know well, but don’t go round offering it to strangers! Now, bills of Exchange, or draft. We use two types: sight bills, which are a little like a cheque; and time bills, which are paid after # certain period. OK? Sight bills, time bills, OK. Now, the type of payment system I prefer to use is the irrevocable letter of credit. The word ‘irrevocable’ is important. It means that there’s no risk: the banks guarantee that we get our money: and that’s the way I like it Is that clear? To check your understanding of the Finance Manager’s talk, give brief answers to the following. a) Which system is best for the firm’s cash flow? b) Which system involves most risk for the firm? ©) Why does the Manager prefer irrevocable credits? 83 TEES EIEN ee Exercise 10 Controlling customer accounts You are investigating the credit control system of a group subsidiary. In front of you is an age-analysis of unpaid debts. these are the account codes in the sales ledger a print-out from a computer these are accounts receivable these amounts are overdue \ (US) debtors (UK) (=late) | 7 T 95.071 quo) UNITED ssTEMS SA rerouerecovas fe mates Og8aMARCH PAGE 2 / =~ AGE ANALYSIS. -.\ cone account BALANCE SODAYS BODAYS sans MORE THAN DATE LAST ‘S00RYS) PAYMENT DAO! BESTONS SA. 11891.90 7.95560 346200 9737000 =. 83 DAGe BERGONICASA © 20,282.90 © 78.70840 © eaneo 257490 000 2.02.93 HOI CRITTERTON ENTERPRISES SA 90.621 51 “CREDIT LIMIT. 27/500.00 oe cera “Eno “CREDIT LIMIT 20.00.00 EXCEEDED" 27,063.50 000 2.75790 000 © 26.0233, exceeoro™ 11,768.90 000 © 68870000 sw 02.98 0.00 0.00 0.00 5032590 220382 | this customer has exceeded _—the balance is outstanding _this looks like a bad debt (=gone over) his credit limit (= unpaid) (it may never be paid) Language input if you are describing a present situation and you want to say how long it has continued, use for with the present perfect tense. Example The $50,325.90 has been outstanding for (more than) 90 days. A colleague telephones your extension to ask how long the following amounts have been outstanding. What will you tell him? To find your answer look at the computer print-out above a) $37370____________ d)_ $7,855.60 b) $2,757.90 e) $11,765.90 ) $998.60 Language input 1 you are describing a present situation and you want to say exactly when it began, use since with the present perfect tense. Example Bestons have not paid us since 1 March 1993. Your colleague now wants information about the other customers. What will you tell him? £) Bergonica hy) Cristales g) Criterton si) Dierras Datafile: Credit control | | | Sometimes you may need to call a customer, in English, to ask where the money is! Here is a little help. I'm sure you know why I'm ringing. Then why didn't you tell us earlier? You realize that payment is now overdue? You know that you have exceeded your credit limit? Our agreement was quite clear conceming payment. I'm only concemed that promises are kept. I'd like your payment to be made without any more delay. I don’t think I like your attitude. { We don't want to have to take the matter any further. (It's because | —ofdetects in your product | —of errors in your invoice |. — you sent the wrong items. _ | Weill be able to process your orders ‘as soon as your payment comes through. | — Ez [Hook forward to immediate payment, then. Thank you. Gooabye. | If the problem is very serious you | may have to end the caill with: | We may have to consider legal action. nN MPN Finance and the company There can be many reasons why you may look at a company’s financial records. ‘The exercises on these pages will give you practice in discussing company procedures and accounts. Exercise 11 Talking about the paperwork ‘The ‘paperwork’ means the movement of documents involved in a transaction. The operations below are not in a logical order. Can you put them in order by writing 1, 2, 3 etc. beside each operation? The first one has been done for you. a) You check the payment. b) The customer places an order. ©) The customer checks the invoice. d) You acknowledge the order, €) You invoice the customer. f) A potential customer makes an inquiry. g) You produce and dispatch the goods. hh) You quote a selling price. i) The customer makes payment. Exercise 12 A final check Without looking at the exercise above, see if you can complete the following a) He makes an ) You dispatch the ____ b) You quote a________f)_ You invoice the ©) He places an_________g)_ He checks the — d) You acknowledge the h)_He pays the _ Lu ___ | — Datafile: Cash cycle i Ss — vow moras os ages — P| temea go | ~ Se | ‘your supplier ae cated creators you ‘oc {your customers are cllod debtors: ay br uppues by paying tre ie Fey pay or gods by pe your | a — ‘stock, deblors and cash are working capitals casn is more iqud tan | Seesaw | {bank overarats | 86 Datafile: Profit and Loss Account You are looking at small UK companies in your industry as a possibility for future investment. One of them is called Ettron Ltd. Below is its Profit and Loss Account. ETTRON LIMITED PROFIT AND LOSS ACCOUNT For the year ended 31 December 1993 | 1993 992 || tumover 2000 £000 «£000 «£000 | | Cost of sales 4240 3610 3440 3070 || Gross profit 800 540 Distribution costs 50 40 Administrative expenses 330 230 Interest payable and similar charges 20 © (400) «= 30.800) Profit on ordinary activities | | _ before taxation 400 240 ‘Tax on profit on ordinary activities 180 30 Profit on ordinary activities after taxation 250 210 Dividends paid and proposed Ordinary dividend 70 50 Preference dividend 30 (100) 308) Retained profit for the year 180 130 Note: These are the accounts of a UK company, and follow European models and the EC Fourth Directive. The following differences from US terms should be noted. uk us ordinary shares (equity) common stock preference shares preferred stock stock inventory creditors accounts payable debtors accounts receivable retained profits (reserves) earned surplus corporation tax corporate tax 7 TEES RENE Exercise 13 Exercise 14 Understanding the Profit and Loss Account The following statements refer to items in the Profit and Loss Account and are either true or false. a) Turnover means annual sales. b) Overheads include distribution and | administrative costs. ¢) Gross profit means profit after tax. d) Retained profit means profit after distribution of dividends. ¢) Macerials are included in cost of sales. | f) The preference dividend is a fixed percentage and so offers less risk than ordinary shares. | Comparing figures ‘Most figures on the Profit and Loss Account change from year 10 year, and you may need to compare them, Language input Comparing figures. Equal figures: When two figures are the same, use as high/low as... Example Preference dividends in 1992 were as high as in 1991. Note also: nearly almost | as high as virtually exactly Unequal figures: When two figures are quite different, use higher/lower than . .. Example Costs were higher in 1991 than in 1992. Note also: much higher/lower ' a lot higher/lower than... considerably higher/lower Refer to the Profit and Loss Account in the Datafile to compare the items below. Example Turnover in 1992 was much higher than in 1991. Preference dividends were exactly as high in 1992 as in 1991. a) Turnover in 1992 and 1991. b) Gross profit in 1992 and 1991. ¢) Interest payable and similar charges in 1992 and 1991 4) Tax on profit on ordinary activities in 1992 and 1991 €) Administrative expenses in 1992 and 1991, 88 TEES EINES Res Datafile: Balance Sheet | ETTRON LIMITED BALANCE SHEET AS AT 31 DECEMBER 1992 | 1992 1981 | £000 £000 £000 £000 Fixed assets Intangible assets 100 100 Tangible assets 1320 1860 Investments 200 200 1620 1860 Current assets Stocks 220 180 Debtors 530 270 Cash at bank and in hand 120 100 870 550 LESS Creditors: amounts falling due within one year 360 550 Net current assets 310 = Total assets less current 2130 1860 liabilities || creditors: amounts falling | due after more than one year 200 200 Provision for liabilities and charges Deferred taxation 150 (350) 30 (230) | 1780 1630 Capital and reserves Called-up share capital Ordinary shares 1000 1000 Preference 630 00 1680 1500 | Profit and Loss | Account 150 130 Shareholders’ funds 1780 1630 89 TEINS FNENaUPeL Exercise 15 Exercise 16 Understanding the Balance Sheet The following statements refer to items in the Balance Sheet and are either true or false. | True | False a) Stocks include raw materials, work-in-progress and finished goods. } | b) A debtor refers to a sum of money which is owed to the company. ¢) Stock means stock held at the end of the year. | d) Tangible fixed assets include factories, machinery and vehicles, but not stocks. e) A creditor refers to a sum of money which the | company owes to someone, a supplier for example. | Difficult questions Investors like to ask difficult questions. Yet Why have debtors increased? is a very direct form of question Language input Note how the following indirect questions are formed: introduction + question word + rest of sentence (includes the verb). Examples Could you explain + why + debtors have increased? Could you tell me + how + you calculate the provision for liabilities? Would you mind explaining + what + the figure for intangible assets represents? Here are some direct questions. Try to change them into indirect questions. a) What is the interest on the preference shares? b) Why are creditors lower? ©) Why is the figure for debtors so high? d) How do you calculate the stock values? €) What is the credit period for your customers? TENS NEETU A Exercise 17 Analysing company performance You are, of course, looking at other companies for possible investment. In order to compare Ettron with other companies, you have chosen the following ratios using figures from Ettron’s Final Accounts. You will need to took at pages 87 and 89. Current ratio Current assets 870 Ability to meet debts Current liabilities +tax 360150 Gearing (US: leverage) _Fixed interest capital 630 Capital structure Ordinary shares 1000 Earnings per share Profit ~ Preference Profit per ordinary dividend 250-30 share Ordinary shares 1000 Return on capital Profit 250 employed Capital 1780 Profitability Debt collection period, _Debts x 365 days 530x365 average Turnover 4240 Stock turnover Cost of sales 3440 Replacement of stock Average stock (180+ 220)x0.5 per year When you have read the above, cover the right-hand column. Then, use the information in order calculate each ratio. Write them below (to one decimal place) Current ratio: Gearing: Earnings per shai Return on capital employed: Debt collection period: Stock turnover: Finance and the product Progress check a) You break even when your sales is higher than your fixed costs and ____costs together. b) If actual costs are $3.5m, and the budget allowed for $3m, complete this sentence: Actual costs are budget $0.5m. 9 TEENS SESS Finance and the customer Finance and the company c) If actual costs are $2.8m., and the budget allowed for $3m, complete this sentence: Actual costs 4) Revised completion date: end February. Predicted total cost: $270m (budget $220m). What will happen if we proceed? If €) _____is a type of protection against in the rate of between different f) Find other words to replace the ones in bold type: i) The balance is still unpaid. ii) Most of it is overdue. iii) You have gone over the limit, —__ g) Today's date: 6 June 1993, Last payment by customer: 6 December 1992. Question: How long has his balance been outstanding? Answer: ____ six months. He hasn’t paid last December. h) Instead of saying the following to a customer, what would you say? We will stop our deliveries to you Read the contract, stupid! _ Tell that to the judge, in cour, i) How would you describe the first figure, in relation to the second? 19,000;19,500 500;50m. _2,675,000;2,675,300 86546 i) Construct questions beginning Could you or Would you mind from these notes. Dividends have doubled, Why? The goods will arrive. When? Payment will be made. How? Answers Exercise 1b) 133,334. ¢) break-even point; income; costs. d) $3.5. Exercise 2 (in order): direct; indirect; costing; standard costings charge; overheads; allocated; cost centres; actual; budgeted; variances, Exercise 3 Direct materials were above budget by $1,500,000. Factory costs were above budget by $260,000. Indirect wages were below budget by $150,000. Selling etc. were below budget by $200,000. Administrative costs were above budget by $260,000. Total costs were above budget by $2,220,000. Exercise 4 a) If we do nothing, it will cost us nothing. b) If we commission a feasibility study, and do not proceed, it will cost $300,000. ¢) If we choose the Inforum system, and the installation is unsuccessful, it will cost $3,400,000. d) If we choose the Inforum system, and the installation is successful, it will cost $900,000. e) If we choose the Teledec system, and the installation is unsuccessful, it will cost $3,000,000. f) If we choose the Teledec system, and the installation is successful, it will cost $500,000. Exercise 5 a) At the end of February, actual costs were down on budget by $20,000. b) In mid-March, actual costs were the same as budget. ¢) At the moment, actual costs are up on budget by $30,000. d) If we proceed, the total project will cost $270,000. e) If we proceed, we will complete the project in February. f) If we proceed, the total project will be above budget by $50,000. Exercise 6 (in order): currencies; weak; exchange; rate; against; variation; exposure; cover; hedging; trading. 92 CEES Eee Try it yourself Exercise 7 Problems: 1 Too much exposure, which can mean losses. 2 Costs (time and money). Reason: No group policy. New Company, and its role: Invoicing Company, to coordinate all transactions in foreign exchange. Procedure: 1 Always invoice in own currency. 2 If you can’t, invoice the new company. 3 New company invoices customer. Exercise 8 See tapescript. Exercise 9 a) Cash with order. b) Open account payment. ¢) Irrevocable Credits are guaranteed by both banks. Exercise 10 a) The $373.70 has been outstanding for 90 days. ) The $2,757.90 has been outstanding for 90 days. ¢) The $998.60 has been outstanding for 60 days. d) The $7,855.60 has been outstanding for 30 days. ¢) The $11,765.90 has been outstanding for 30 days. f) Bergonica have not paid us since 21 February 93. g) Critterton have not paid us since 26 February 93. hh) Cristales have not paid us since 18 February 93, i) Dierras have not paid us since 22 September 93. Exercise 11 a) 9, b) 3, c) 7, d) 4, €) 6, f) 1, g) 5, h) 2, i) 8 Exercise 12 a) inquiry. b) selling price. ¢) order. d) order. ¢) goods. f) customer g) invoice. h) invoice. Exercise 13 a) True. b) True. ¢) False. Gross profit means profit before expenses and taxation, d) True. e) True. f) True. Exercise 14 a) Tumover in 1992 was much higher than in 1991. b) Gross profit in 1992 was much higher than in 1991, ¢) Interest payable and similar charges in 1992 were considerably lower than in 1991. d) Tax in 1992 was much higher than in 1991. e) Administrative expenses were a lot higher in 1992 than in 1991 Exercise 15 a) True. b) Truc. ¢) True. d) True, e) True. They are long-term loans, secured on assets. Exercise 16 (suggestions): a) Would you mind telling me what the interest is on the preference shares? b) Could you explain why creditors are lower?) Could you tell me why the figure for debtors is so high? 4) Would you mind explaining how you calculate the stock values? ¢) Could you tell me what the credit period is for your customers? Exercise 17 1.71; 0.63; 0.22p; 0.14; 45.62 days; 17.2 times, Progress check a) income (or revenue), variable. b) Actual costs are above (up on) budger by $0.5m. €) Actual costs are below (down on) budget by $0.2m. d) IF we proceed, we will complete the project at the end of February, and the total cost will be above budget by $50m, at $270m. €) hedging, variation, exchange, currencies. f) outstanding; unpaid; exceeded. g) For six months. He hasn’t paid since last December. 1h) We will be able to process your orders as soon as we receive this payment. Our agreement was quite clear about this. We may have to consider legal action. i) 19,000 is almost as high as 19,500. 500 is much lower than 50m, 2,675,200 is virtually the same as 2,675,300. 86 is considerably higher than 46. j) Could you tell me why dividends have doubled? Could you tell me when the goods will arrive? Would you mind explaining how payment will be made? Now that you have finished this section on Finance, try to manage without the book. Use Unit 5 on cassette 2, side 2. In this section you will have to discuss financial matters concerning products, customers and companies. You will need to practise this section of the cassette more than once. Practise until finally you can do the whole section without stopping your machine. 93 TS a) EOSIN UNIT 6 THE PRODUCTION AGENDA Situations Action The overview Talking about the Exercise 1 plant Production matters Datafile: Production activities Exercise 2 Datafile: Production problems Talking about Phases in the process Exercise 3 processes Describing the process Exercise 4 Current operations Exercises 5, 6 and 7 Making comparisons Exercises 8 and 9 Operating instructions Exercises 10, 11 and 12 Visiting the Making requests Exercises 13 and 14 plant Talking about schedules Exercise 15 Talking about output Exercises 16 and 17 Other Talking about Exercises 18, 19 and 20 departments _ purchasing Departmental functions Exercise 21 Progress check Answers Try it yourself 94 UR ae ED ECE Exercise 1 The overview Talking about the plant cer eS Ropes Look at RIV Industries’ proposed layout of a light industrial production plant. Find words on the plan which correspond to the explanations below. Example Loading bay = Point where finished goods leave plant. a) Point where finished goods leave plant. b) Storage area for tools and other technical equipment. ¢) Part of a video terminal where messages appear. d) A device which carries items along the production line, €) Machine to move goods on the shop floor. f) Large storage area, separated from production unit. g) A sophisticated device for cutting or drilling the product. h) Main open work area. i) Key positions occupied by workers. ji) Separate areas outside the production flow. k) The basic materials from which products are manufactured. 95 CS a aE a ) RAW MATERIALS (PURCHASING -— s ee ee ——) Datafile: Production activities | PRODUCT DESIGN meron = ——— RBZ SD 7 — > STORES PRODUCTION PLANNING |! | { wventory contro. |. ATEW3SSV | QUALITY CONTROL 7 XN ATGNISSY ENS | PRODUCTION S e awsoasia aisvm | ZL | 7 Z as ” iS <= PACKAGING b DESPATCH ) (| TRANSPORTATION } DELIVERY ) 4 zs) _— wt we | Tea TART) IDEs Exercise 2 Production activities First, study the Datafile on basic production activities. Now look at this diagram and fill in the spaces and words from the list below. ‘The first one has been done for you 7a "1 work in the department.” S g 3 machine | OLLING ad (eee eee ea) i | z g x 5 g g = : le Ss YiVE & g g 2 x = z a1 eylts r i 4 “ anges | 3 » GOODS 5 es liz ASseMaLy $18 {J - | lal — 2 ° DEsParcn ¢ <____) | 8) VALIANT LIGHT ENGINEERING LTD Cw NEWTOWN PLANT raw materials maintenance and repair _delivery production planning quality control inspection product design transportation inventory control _ packaging Datafile: Production activities Bottleneck (too many things stuck in the system) stoppage (the system has to stop) shutdown (the system or factory has to close) PROCESSES - We' ve had a... hiccup (temporary W interruption) glitch (small problem) hitch MACHINES - The machines are. out of order (not working) out of commission (not usable at the moment) down (not functioing at the moment) suffering from wear and tear zy (damage from use) obsolete/outdated (old-fashioned) PRODUCTS - The product is. | damaged (broken, bent, etc) flawed (not perfect) substandard (not as good as usual) defective (not working =| properly, faulty) PEOPLE ~ We have suttered from... —f absenteeism ( strikes (workers refusing (workers staying fo work) away from work) go-slows (working too V slowly) disputes (disagreements A with bosses) ~ “ Types of problem vote Output per department the problem in Dept. A mor Deparment A | was a one-offlisolated incident | the stoppages in Dept. B are a | rr" recurring problem LI the low output of Dept, C has Dessert become a(n) ra continuing/ongoing situation 98 Tae ae a NEEM Exercise 3 3 Exercise 4 Talking about processes Phases in the process ‘The words listed below are steps in the production process of a potato supplier. Listen to the cassette and then use these words to label the diagram. washing despatching peeling chopping growing sorting canning labelling freeze-drying steaming Tapescript Well, the potatoes are grown on our farms and brought to the production plant here. First of all we peel them, then we wash them, Next we sort them, and grade them (according to size and weight). The acceptable potatoes are then steamed, chopped and freeze-dried. After that the granules go to the canning department: the cans are filled and vacuum-sealed. We next send the cans to be labelled and packaged, then despatch them to distribution centres. Describing the process Language input ‘The passive is usually used when the object of an action, and the action itself, are more important than wno is doing it. Example The potatoes are grown on our farms. (not Our farmers grow the potatoes) The passive is often used in describing processes. To form the passive use the verb to be + past principle. Example The passive Is formed in this way. Now listen to the cassette again and complete the following description of the process, using the passive form. ‘The potatoes are _______ on our farms and____ here to our new production plant. Firstly they are next they are > and after that they _____ and____. Once they are “cooked” they and - . Following that the granules are_______ and Finally the cans are > and PN ST) PENNER Exercise 5 Current operations Change the following sentences to the passive form. Example (We export the goods to Asia.) The goods are exported to Asia. a) The company manufactures the goods in England, b) They transport the raw materials by rail. c) We buy in the components. d) He inspects the parts regularly. e) They dispose of the scrap immediately. £) The workers assemble the instruments on the shop floor. g) They package the finished products by hand. h) We repair the machine tools frequently. Exercise 6 Processes in the past Language input To make a passive sentence in the simple past tense we use the past tense of the verb to be with the past participle. Example The goods were exported to Asia. Now write the sentences in Exercise 5 in the past tense. a) b) _ ©) 4) - ©) f) 8) ‘h) Exercise 7 Who does what? Language input Sometimes we use the passive form with the word by, to show who or what performs the action. Example The government subsidizes the production centre (active). The production centre is subsidized by the government (passive) Now change the sentences into the passive form with by. Example (Farmers grow crops.) Crops are grown by farmers. a) Lasers weld the microcomponents. b) Robots assemble the plants. ©) Time-and-motion experts monitor efficiency. 4) Crafismen hand-build our traditional products. €) Skilled workers operate the more sophisticated tools. 100 CU Se Pees Exercise 8 Making comparisons Language input Comparative forms are made as follows: ‘a) one-syllable words, add -er Example smaller, faster b) two-syllable words ending in y or e and in er Example simpler, easier ¢) other two-syllable or longer words use more Example more careful, more dangerous Use the comparative form (with the verb to be if necessary) to complete these sentences. Example Handbuilt units are cheaper but automation is more efficient. a) With the new system, output ______ (high) and costs (low), b) The conventional machines _____ (economical) but the new one (fast). ©) I think this scheduling plan ____ (good), but it (difficult) to implement. 4) Out latest product ___ (light), (strong), and ___ (attractive) e) We are trying to make our distribution network (up-to-date) and __(efficient). f) Robots make material handling easy.) g) The miniaturized elements are getting ____(small) and (small), h) The new machine tools are not only _____ (sensitive) but (safe) and (clean). i) Although our traditional products _ (expensive) they are still _____ (popular with customers). i) The workers (happy) in the (ight), ____ (spacious) production shed. Exercise 9 More about comparisons Language input When we compare one thing with another we use the comparative form with than, Example This year’s output Is higher/lower than last year’s. Now complete these sentences using the comparative form and than, Example (robots/fast/human workers) Robots are faster than human workers. a) The organic raw materials/expensive/the synthetic raw materials, b) Our laser-cutting device/accurate/their diamond cutter. ¢) Batch production/complicated/flow production. d) We are finding that plastic/durable/fibreglass. €) Our experience is that short-cycle operations/economical/continuous flow operations. f) Manufacturing a standard series/profitable/one-offs. 101 ri Exercise 10 Exercise 11 Se NS PE ess Operating instructions Match the pictures with the instructions below. Note that instructions are often written in short forms. 1 —> 6 x I ’ \ ae \e=" ea 5 ve a) Insert card b) Unscrew lid ©) No smoking d) Attach filter e) Press burton 1) Raise lever Explaining instructions Language input Direct instructions, orders or commands are given using the imperative form of the verb. The imperative is the infinitive of the verb without the word to. Example Load the machine! Look at the dialogue below; the supplier's representative is explaining how to operate a new machinetool. The operator is having trouble understanding him, [In other words. take ofF the cover, ae DB First, remove the cover ‘ae Pi 102 CR aT SNE eS Exercise 12 = Representative Operator You Representative Operator You Representative Operator You Representative Operator You Representative Operator You ‘Now look at these instructions, The operator has difficulty understanding the terms, so the supplier’s representative ‘translates’ the terms into more conversational English. Try to match each difficult term with its conversational translation, Example Invert the terminal block means Turn over the terminal block. a) b) °) d) e) f) 8) h) i) i) k) Connect the device to the power source. Place the laser-camera in the portable container provided. Replace the cover. Introduce the cartridge. Ensure that the alarm system is fully operational, Insert the electronic key. Remove the unit from the protective packaging. Withdraw the card from the slot. Re-set the dial to zero, Enter the code number on the keyboard. Select the appropriate switch setting In other words i) 2) 3) 4) 5) 6) D 8) 9) 10) 11) Turn the dial back to ‘Make sure the alarm is working properly. Put in the electronic key. Put the cartridge in. Put the cover back. Take the card out. Unpack the unit. Plug in the apparatus. Put the camera in its carrying-case. Punch in the code. Choose the right setting. Listen to the representative giving an instruction. If the operator does not understand, you must put the situation into different words. You may look at the tapescript at first, but then try to manage without it Tapescript Insert the punch-card. I don’t follow. Remove the lid. P'm not with you. Ensure that the power is on T'm not clear about that. Replace the lid. I don’t understand, Withdraw the punch-card. Sorry? 103 Tn ae Sa Visiting the plant Exercise 13 Making requests Language input When you ask permission to do something, start your question with May... 2 Example May | see the warehouse? When you want someone else to do something, start your question with Could you ... ? Example Could you show me the computer? Mr Olsen is visiting the Petrochemical Production Centre of ‘Magnochem; the production supervisor, Mr Pettit, is showing him around. Mr Olsen has made a note of some of the things he wants to do. Look at the entries in the notebook and ask Mr Pettit’s permission using May I. .. Example (visit/loading bay) May I visit the loading bay? - _ 1. visit [reegeln® unit | anager even lee ‘egstallinatio? | 3, look round / 8 prane | 4, see [product samples | 5. examine (re PATE em ‘Mr Olsen has also made a note of some things he would like Mr Pettit to do. Turn the notes into requests, using Could you Example (toolroom/show me) Could you show me the toolroom? 7. inspection $3 . se tion proces 8. separa /epeegticn — arrange 9. meeting divectr 1 Ke me — “round 104 Tn ae Sa PSNR a0 Exercise 14 Dealing with requests a If the answer to a request is yes, you can say oma) LE ) Certainly! | { With pleasure! If the answer is no, you must be polite ! Vm afraid that is not possible. I'm afraid Mrs | Kennedy is Listen to your visitor making requests; each time a voice will tell you if you should use a ‘yes’ or ‘no” phrase. Practise replying using the phrases above. Tapescript Visitor Could you show me the production line? You (Yes!) Visitor May I visit the despatch department? You (Yes!) Visitor Could you arrange a meeting with the Chief Engineer ? You (No!) Visitor May I see your production schedules? You (Yes!) Visitor May I go inside the cooling unit? You (No!) Visitor Could you tell me where the toilets are? You (Yes!) Visitor Could I bring a group of people to visit the plant? You (No!) 105 NGM Se TEC Exercise 15 Talking about schedules | Language input To talk about something that generally happens, we use the present simple tense. When we talk about something that is happening now, or in the real present, we use the present continuous tense. We make this tense with the verb to be and the -ing form of the main verb. Example We generally run at 88% of our capacity, but at the moment we are running at 91%. Complete the following sentences with the correct tenses. a) We never 100% efficiency, but this month we ____ for 98%. (gev/aim) b) Although we generally good results, we with a new loading system (gevexperiment) c) At the moment we to balance the plant load, although we always some machines. (try/under-utilize) d) Because we constantly _ from stoppages, we _—________ a completely new system. (suffer/adopt) e) Our experts currently the efficiency of the machines that we most often (measure/rely on) £) We occasionally ___ problems with overloads, so this month we the job sequence. (have/change) g) At present the sales department. a list of priorities for the jobs we regularly. (prepare/perform) hh) The machines rarely » but the welding machine today. (malfunction/malfunction) Exercise 16 o The department's performance Mr Vennonen, the company’s Public Relations Assistant, is interviewing the Production Supervisor for an article on productivity for the company newsletter. Listen to the Supervisor, then cover the tapescript and complete Mr Vennonen’s notes. Tapescript Well, I can give you a few figures which may help you ~ for example, we run our machines at 150 hours per week at a throughput of 44 units per hour. On average we produce 355 finished articles per shift. So weekly output is over 6,500 units. Our machine utilization is very good - an average of 86.5%, that is, 9% better than the average for last year. Every month we have supervision and maintenance costs of about £22,000 and total monthly production costs average out at £68,000. Nevertheless, last month we had a profit of £104,000 which is 6.3% up on the previous month. 106 UNOS eee VSS Exercise 17 =x) P R Boss You P R Boss You PR Boss You R P Boss You P R Boss You P R Boss You P R Boss You PR Boss You PR Boss Talking figures Mr Vennonen’s boss, the company Public Relations Officer, is asking questions about production, Look again at Mr Vennonen’s notes, listen to his boss and answer his questions. Just give the figures. Example You hear: What’s their throughput per hour? You say: Forty-four units. Tapescript OK., tell me; how many articles do they produce per shift? How many a week is that? 1 see, what is their machine utilization? M-m-m O.K., what is the weekly machine running time? What was their profit last month? ‘What sort of increase does that represent over the month before? I see, now about monthly production costs; what is the average total? Good, and finally, how high are their monthly supervision and maintenance costs? Fine. Thank you Running © A dytieles per shift pili zation avi e over Cue SE Intenance Costs | Throughput Rrcentage chang Supervision and per month: the | Produation costs per ‘Profit pev ron worth: | Machine # 107 Other departments Exercise 18 Talking about purchasing ‘THE COMPANY THe MARKET uauy conte. suncnagng ACCOUNTS, ‘The Purchasing Manager is talking about his job. Read this account and fill the gaps with words from the diagram above, and from the list below. Iam in charge of _____ and it is my___to monitor the as well as with other departments within our _____ such as the and _____ departments. T have to decide which 10 buy ________ and components from, depending on quality and service. I also have to make the —— decision, in other words whether to manuficture @____ or component ourselves, or to________ from an outside ‘make-or-buy’ / parts / responsibility / source / price / raw materials / liaise / buy in 108 UN Sa ST PEs Exercise 19 Exercise 20 Purchasing terminology The Purchasing Manager is still talking; try to match the underlined words and phrases with the explanations below. Sometimes we operate a sole supplier contract whereby we use only one supplier for a fixed period. Generally, however, we prefer to use a large number of suppliers® from our approved suppliers? list. We usually place single orders at a negotiated price®, but sometimes we get involved in advance orders at a fixed price for certain commodities. Apart from ordering, I have to put out orders for tender, arrange reciprocal trading‘ and maintain our own company’s reputation’ in the marketplace. a) multiple sourcing b) standing ©) return contracts 4) buying forward/speculative buying €) spot orders f) single sourcing g) encourage competitive bids & \ . Buyers and suppliers ‘Can you match these phrases with the explanations below? b) We're only passing on the increases which we a) I'm sorry, but these prices are | still out of line | have to pay with your | | competitors SED SH | prices $ / yO - 7 c) But these prices are d) Sorry, but we can’t cut ‘over the top them any further 1) excessively high 3) transferring to the customer 2) reduce 4) higher than UES PEE Exercise 21 Departmental functions aw MATERIAL CONTROL (COMPONENT CONTROL PRODUCT CONTROL MACHINES CONTROL PROCESS CONTROL LOADING Bkcx.oADIG TaANseORT SPECIFICATIONS TESTING Taanerenance Faw WATERS couronents REPAIR wominpnostess \/ Luanicarion ‘imiSHeD GOODS CLEANING sarery STOCKS, eeruacewenr TOCx RECORL Syeaneoants MODIFICATION E-OROEAING SERVICING FORAGE Look at the diagram above, then complete the statements below by choosing the best alternative answer. (Be careful: there may be two acceptable answers!) Example Monitoring stock levels is the job of 1) quality control 2) despatch 3) inventory control a) The despatch department is also known as 1) warehousing 2) goods outward 3) goods inward 'b) Inventory control could also be described as 1) stock control 2) materials control 3) quality control ©) Moving finished goods to depots, wholesalers, or customers is the job of 1) quality control 2) maintenance 3) despatch. 4) One of the main responsibilities of inventory control is to 1) repair machines 2) maintain stock levels 3) check products for defects €) machines require periodic overhauls by 1) maintenance engineers 2) quality control experts 3) despatch supervisors 110 TSE eee £) The Quality Control department has to 1) carry out 2) carry over 3) carry off inspection of products and processes g) Lubrication, cleaning and servicing of machines is performed in order to 1) cause breakdowns 2) cause stoppages 3) prevent breakdowns h) Safety stocks are maintained in case of 1) overstocking 2) delivery problems 3) storage problems i) Routing and backloading (filling empty vehicles on return journeys) are important for maximum 1) economy 2) efficiency 3) difficulty i) Future costs, prevention costs and appraisal costs (inspection costs) must be 1) maximized 2) maintained 3) minimized Progress check The overview a) What are the names of the buildings that normally make up a production plant? b) What are the names of the principal departments involved, directly or indirectly, in the production processes. Talking about c) Change this sentence to the passive form. The pump pumps processes the liquid down the pipe and the cooler then cools it, 4) Fill the gaps in this sentence: the grapes are washed, ____ they are crushed, processed and bottled, (finally/after that/firstly) €) Change this sentence to the past tense. ‘The articles are sent to the depot and they are then distributed to the wholesalers’, 1) Give the comparative form of ‘The product is small, light, and versatile’. 2) Make a comparative sentence from: ‘Our production line/fastlefficientlour competitors’. h) If a batch is not part of a standard series it is a * off” i) Put these instructions in other words, (1) put the card in the slot (2) now withdraw the card, i) If someone gives you an instruction that you do not understand, what do you say? Visiting the k) Ask permission to (1) visit the control room (2) inspect some plant samples. 1) Ask your host to (1) show you round the warehouse (2) explain the quality control processes. m) If your visitor asks to see the refinery unit how would you tell him (1) yes (2) no? URES a ANSWERS. rn) Your visitor asks to see the managing director. How do you tell him ‘no’? ©) Complete this sentence with the correct verb tenses, We usually 1,000 units per week, but this month we 6% more, (manufacture/produce) Pp) The total amount produced each year is the a os q) Isa machine utilization of 90% good or bad? Other r) Who does the purchasing manager maintain contact with? departments s) Which department is in charge of (1) transportation (2) inspecting products for defects (3) controlling stock levels (4) repairing machines? AMSWEYS Exercise 1 a) loading bay; b) toolroom; ¢) screen; _d) conveyor belt; ) trolleys £) warehouse; g) machine tool; h) shopfloor; i job stations; i) workshops, jobbing shops, toolrooms, benches; k) raw materials. Exercise 2 a) purchasing; 'b) product design; ¢) raw materials; 4) production planning/inventory control/quality controVimaintenance & repair (in any orders e) inspection; packaging; g) transportation; hy) delivery Exercise 3 (in order); growing; peclings washing; sorting; steaming; chopping; freeze-drying; canning; labelling; despatching, Exercise 4 (in order); grown; brought; peeled; washed; are sorted graded; steamed; are chopped; freeze-dried; canned; vacuum-sealed; labelled; packaged; despatched. Exercise § a) The goods are manufactured in England. ) The raw materials are transported by rail.) The components are bought in 4) The parts are inspected regularly. e) The scrap is disposed of immediately, f) The instruments are assembled on the shop floor. g) The finished products are packaged by hand. h) The machine tools are frequently repaired Exercise 6 As Exercise 5: change ‘are’ to ‘were’ and ‘is! to ‘was" Exercise 7 a) The microcomponents are welded by lasers.) The parts are assembled by robots. c) Work efficiency is monitored by time-and- motion experts. d) Our traditional products are hand-built by craftsmen. e) The more sophisticated tools are operated by skilled workers. Exercise 8 a) is higher; are lower; b) are more economical is fasters ¢) is better; is more difficult; d) is lighter, stronger and more attractive; ) more up-to-date; more efficent; f) easier; g) smaller and smaller; b) more sensitive; safer; cleaner; i) are more expensive; more popular; j) are happier; lighter, more spacious Exercise 9 a) The organic raw materials are more expensive than the synthetic raw materials, b) Our laser-cutting device is more accurate than their diamond cutter. ¢) Batch production is more complicated than flow production. d) We are finding that plastic is more durable than fibreglass, e) Our experience is that short-cycle operations are more economical than continuous operations. ) Manufacturing a standard series is more profitable than one-off. 412 Ca ‘ANSWERS; TRY IT YOURSELF Try it yourself Exercise 10 a4; b3; ¢5; dé; el; £2. Exercise 11 a8; b9; c5; d4; €2; £3; g7; h6; il; 10; kL. Exercise 12 Put in the punch-card (or: Put the punch-card in). Take off the lid (or: Take the lid off). Make sure that the power is on, Put back the lid (or: Put the lid back). Take out the punch-card (or: Take the punch-card out). Exercise 13 1) May I visit the recycling unit? 2) May I talk to the plant manager? 3) May I look at the crystallization plant? 4) May I see some product samples? 5) May I examine the new pumps? 6) Could you show me the computer room? 7) Could you describe the inspection system? 8) Could you explain the separation process? 9) Could you arrange a meeting with the Production Director? 10) Could you take me round the storage area? Exercise 15 a) get; are aiming; _b) get; are experimenting; ¢) are trying; under-utilize; d) suffer; are adopting; e) are measuring; rely on; ) have; are changing; g) is preparing; perform; hh) malfunction; is malfunctioning. Exercise 16 (in order): 44 units per hour; 150 hours per week; 3555 over 6,500 units; 86.5%; approx 22,000; £68,000; £104,000; 6.3%. Exercise 17 See tapescript Exercise 16. Exercise 18 purchasing; responsibility; market; liaise; company; quality control, stock control, marketing, accounts; supplier/vendor; parts; price; ‘make-or-buy’; parts buy in; source. Exercise 19 a2; b7; €6; d4; €3; fl; g5 Exercise 20 a4; b3; el; d2 Exereise 21 a2; bl or 2; €3; d2; el; fl; g3; h2; il or 25 j3. Progress check @) production shed, warehouse, office b) Purchasing, product design, stores, production, packaging, despatching, production planning, inventory control, quality control, maintenance and repair ¢) The liquid is pumped down the pipe and then cooled. d) Firstly .... after that .... finally e) The articles were sent to the depot and they were then distributed to the wholesalers.) The product is smaller, lighter and more versatile. g) Our production line is faster and more efficient than our competitors’. h) one i) (1) Insert the card in the slot (2) Now take out the card (take the card out). j) I don’t follow, I'm not with you, I'm not clear about that, or I don’t understand.) (1) May I visit the control room? (2) ‘May I inspect some samples? 1) (1) Could you show me round the warehouse? (2) Could you explain the quality control procedure? ma) (I) of course/certainly/with pleasure/right away (2) I'm afraid that is not possible) I'm afraid he is not available, ) Manufacture ... are producing p) annual output q) Good r) The market, the suppliers (vendors), the marketing/accountsistock control/quality control departments in his own company. 5) (1) despatch (2) quality control (3) inventory control (4) maintenance. Now that you have finished this unit, try to manage by yourself without the book. Use Unit 6 on cassette 2, side 2. On the cassette you will have to deal with various production matters and activities. Practise until you can do the whole unit, which lasts about five minutes, without stopping the machine. 113 CE CSI UNIT 7 TALKING ABOUT COMPANIES the company Changes in the company Personnel Internal change Changes between ‘companies New operations abroad AGENDA Situations Action About the Types of company Exercise 1 organization Responsibilities in the Exercises 2, 3 and 4 company Working for Working conditions Exercise 5 and 6 Exercise 7 Exercise 8, 9 and 10 Datafile: Changes between companies Exercises 11 and 12 Try it yourself Company Performance in figures Exercise 13 performance Your company’s fortunes Exercises 14 and 15 Comparing performances Exercises 16 and 17 Company Controlling and attending Datafile: Company meetings meetings meetings Exercises 18 and 19 Meeting the Public relations Datafile: A word from press your PRO Exercise 20 Progress check Answers 114 About the organization Exercise 1 What sort of company is it? There are many types of business organization and the different terms can be confusing. Read both columns below. The left-hand column gives various types of organization and the other column contains short descriptions of each organization. Cover the Type column, and from the description name the type of organization. Finally, cover the Description column, and try to describe each organization listed. Type Description charity = an organization to relieve poverty, advance religion or education, etc; benefits from some financial concessions. company (UK) an organization operating to make a profit. corporation (US) cooperative = a democratic firm owned by its workers, enterprise = a new commercial activity [for example How’s your new enterprise? Also in some company names; for example, Smiths Enterprises (enterprise = firm) government agency = an organization which is part of the state administration, holding company = a firm, usually without commercial activity, created to be parent to other companies, limited company = a firm where shareholders’ liability is limited, minority interest. = company in which another firm has less than a 50% interest. multinational = an organization operating in several countries. nationalized company = company owned by the state. offshore company = a firm based in a tax haven to avoid higher taxation. operation = a general word for a company, usually a small one, part of a large group. It also means-activity; for example, our commercial operation, parent company = accompany which owns another. partnership = two or more partners working together for profit, without limited liability. private company =a company whose shares are not publicly available. public company = a company whose shares are publicly available. society = a friendly association of people; for example, a sports society (society = firm). subsidiary (affiliate) = firm owned by a parent company. 115 Ces ‘ABOUT THE ORGANIZATI Exercise 2. Who's responsible for Business Systems? Below is a diagram showing the structure of a ‘mixed’ type of multinational company based in the US: some activities are organized into domestic, regional and international divisions, others into worldwide product divisions. Chiet Executive Otticer (CEO) T T T T 1 Domestic Domestic Worldwide Pacilic Division Intemational Corporate Statt Telecom- Business Detence (Telecom. Division (Comorate munications Systems Division Systems Division munications and__(Telecom- Planning, etc.) Division Business ‘munications and ‘Systems) Business Systems other than in the Pacitic ‘egion) 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 ©) Telecommunications in USA 4) Business Systems in Europe €) Telecommunications in SE Asia Exercise 3 You'll have to see the production people about that! —, Below is part of the structure of your company. It is a medium- L sized subsidiary of a UK parent company. Board of Directors Ghaieman ee Managing Director | Manscing rector | a 1 I I | Researchand | (Mareing] [Sees] [Prodvoion ] [Tees] [Accouns ] [Personne | Development — t 1 1 1 — Purse] [—Faauy | [meniroce ] [Fareoot] [Neugonen | [Trance] [oma] Deparment | aeceune | | Accounts | | procestng Members of the Group Internal Audit team are visiting your firm, On the cassette you will hear a series of questions, and you must help the auditors by answering their questions. Example You hear Ihave a question about the company’s sales budget. You reply: You'll have to see the sales people about that. 116 Css CMe Tapescript I have a question about the company’s sales budget. Could you help me? It’s about last year’s development costs. Td like to know exactly when you delivered these goods, Our Computer Audit team wants to visit you soon, Who should I ask about it? Do you have purchase contracts with all your suppliers? Td like to discuss these cash-flow forecasts. Who do you think could help me? Exercise 4 Who's the boss? Rockbridge International Corporate Organization, USA Board of Directors Chairman of the Board, President and Chief Executive Officer I | T Vice Presdent _VicePreaden Vioe-Presdest, Vice Presiden, Senior Vice-President, Comerste Development International” Pubic Relations General Counsel Corporste Stati idverasng Lu I President, | | Automouve Operanons Vice-President, Vice-President. Vice-President, Vice-President, Investor Relations "Personnel Funence Research and Engineering The above diagram is called an organization chart (or family tree), It shows the chain of command in an organization We can say that the Vice-President, Corporate Development is responsible to/reports to the President and Chief Executive Officer. Can you make similar statements about the chain of command, by completing the following sentences? a) The Vice-President, Finance b) The President, Automotive Operations ¢) The President and Chief Executive Officer 4) The Senior Vice-President, Corporate Staffs ) The Chairman of the Board 7 CO KING FOR THE COMPANY Working for the company Exercise 5 What's it like, working for ABS? =) nlp mae ‘At dinner you meet an old friend of yours, who now works for ABS. He tells you what it is like working for that organization. Read the following questions, and answer them when you have listened to your friend on the cassette. You may have to listen more than once. a) Complete the following; 1 There are good promotion 2 Salaries are quite 3° There's a profit-sharing scheme. 4 There's a five-week b) What benefits in kind (non-cash advantages) does your friend receive? ¢) What kind of move is your friend considering? Tapescript ‘What's it like? I’m quite happy. There are good promotion prospects if you're interested, And there’s a very good training scheme, At the moment - did I tell you? - I’m considering a transfer to another division, But I'll tell you about that in a minute. Apart from that ... Well, salaries are quite competitive; there's a generous profit-sharing scheme too. There’s also a five-week holiday allowance, which is better than 2 lot of firms, What else is there to say? A company car, of course. Quite a good pension scheme. That's it. The only thing I wasn’t happy about was the fact that when I started the job, the relocation expenses weren't very generous; you know, buying a new house, moving the family, all that sort of thing costs money. I thought that UE DREN aa ‘The headhunters are looking for managers with hands-on experience and an excellent track record. Where I work, a couple of years in sales is the inside track Young Linda is ahigh-flier now. In a couple of years she will be one of the movers and shakers Hh In our organization success is the T+\_ name of the game! &) {Top management here preter to > 465 lemvetmonmoerermenna © | young oxeclvescn te wa op A — Can you match the expressions above with their meanings below? Example The fast way to make progress = the inside track. a) the fast way to make progress. b) making important calculations. ¢) the dynamic people who make things happen. d) moving up towards the top of the firm. €) an ambitious person whose results are excellent f) practical and direct knowledge of their job. 2) the small number of senior people who run the organization, h) very good past performance i) outside agencies who hire people for companies. i) the main aim of the firm, 119 Ce CIN aaa Oe Exercise 7 The personnel interview Language input To express a large quantity, use a lot of Example a lot of meetings; a lot of experience To express a small quantity, use not many (plural) or not much (singular) Example not many negotiations; not much experience If there is a verb, the not makes it negative. Example You haven’t taken part in many negotiations You haven't much experience in planning ‘You have just interviewed a British applicant for a position in the Personnel Department of your company. She has answered your questions about her experience of personnel work. Read your notes. Personnel Recruitment Checklist (2) ‘Has the applicant organized Management Development courses? (2) experience of Management by Objectives a lille. experience of performance appraisal? “ experience of job analysis and specification? ~ experience of job evaluation? v conducted recuitment interviews? @) organized redundancies? once experience of suggestion schemes? oa taken part in union negotiations? twice experience of management consultation? alittle experience of dismissal and grievance procedures? v experience of manpower planning? alittle Now summarize this applicant’s experience, beginning: You haven't organized many Management Development courses ... 120 CESS PNAS Changes in the company Exercise 8 Talking about intemal change ‘These headlines come from the in-house magazine of the ABS Group. EASONNEL FUNCTIONS ot HEAD OFFICE ratignalizanon swreamlining) rapet “oman h | Funciasia DEP) To tn "ARTMENT {se "PF COMMER apial investment toring Now try to make sentences which follow this example Our diversification policy means that there will be new types of products in 1993. Because you are talking about predictions for the future, remember to use will in each sentence. Exercise 9 Explaining the changes On the cassette you will hear comments about the changes in your You hear: I hear that you will have new products for 1993. You reply: Yes, that’s part of our diversification programme. Now reply to the comments on the cassette, Practise until you can do this exercise without looking at this page. Tapescript I hear that you will have new products for 1993. I hear that there will be a reduction in the training budget. I'm told that the Purchasing Department is to come under Commercial Services Pve been told that all Personnel functions are moving to Head Office 1 gather that the new plant will go ahead. 1 hear that the new model is going to be assembled by machines, I'm told that 50 people are losing their jobs at Newton. I understand the small assembly plants are all being closed. 121 eA Nae Exercise 10 Changing with information technology ‘The Information Systems Manager remembers how things were in 1974, Can you change the verbs (in brackets) to the simple past tense? Example In 1974 I was only 25, 1974 Our EDP department (is) separate from the rest of the company. Staff from Accounts and Sales (bring) data to us, which we (feed) into the computer on punched-cards. There (is) no on-line access for ather departments: we (process) the data in batches, and (pass) the print-outs to the departments by hand. So we (control) all the input and all the output directly, and we (update) all the data on the computer. This year, the Informations Systems Manager is planning the telecommunications for a new subsidiary. In his proposal, he uses the present tense. Using will, can you change the verbs (in brackets) to the future? Example There will be local area networks connecting . 1994 The diagram shows the fully integrated system. There (are) local area networks connecting the mainframe and all the peripherals, which (means) that all workstations (can) have on-line access to the main databases. This real. time capability (is) most important. We (need) an electronic mailbox facility, and (require) an integrated video conferencing facility We (can) benefit from computer-aided design systems == = 122 UY CONES Datafile: Changes between companies takeover (or acquisition) Abas taken over B A offers to buy 8 privately, or makes a take-over bid publicly venture B accepts or resists Aand B have merged joint venture formal association before a } AandB a } . } & } } set up the joint Note: In some countries, takeovers and after 2 ae before 2 holding company associations which may have too much influence on the market (cartels), are controlled by monopoly (UK) or antitrust (US) legislation a commerical | ‘organization this is - called vertical integration a | another manufacturing |. '84€S,) manufacturing company company this is called horizontal integration Why do takeovers occur? (irom Twenty Years of Acquisition Behaviour in America, H. Ansoff et al., Cassell/Associated Business Programmes) In order, from the companies asked: + To complete product lines 2 To increase market share 3 To fully utilize existing marketing capabilities To offset unsatisfactory growth To capitalize on technological expertise To obtain patents, licences and know-how To meet the demand of diversified customers To utilize existing production capacity To increase control of sales outlets To reduce dependence on suppliers 4 5 6 123 CaN CNS Exercise 11 (exa)(~) Talking about new operations abroad In this exercise we look at some of the factors which are important when considering a new overseas operation. Language input To ask for information about something, you can ask: What about . . . ? or What do we know about .. . ? Example What about the rate of inflation? What do we know about development plans? Before the committee meeting to discuss a new operation abroad, you have made a list of information which you need. On the cassette, you will hear your colleague at the meeting asking if you have any questions. Ask each question, using What about . . What do we know about ... ? and then make a note of his answer before asking your next question. Tapescript So, that’s the general picture. Does anyone have any questions? I'm told that it’s 2% per annum, Yes, rather high: so far as I know it’s about 20% Corporation Tax? I’m told it’s 10%. I understand that there's a two-year tax holiday, which isn't bad. So far as I know, there’s a fixed percentage: about 35%, I think Nothing; I mean, I understand that there aren’t any at all, Any more questions? No? Well, I think we 124 Ee CNS Economic aspects ‘Gross National Product (GNP)? growth rate? development plans? stability of currency? rate of inflation? Geographical aspects transport infrastructure? Political aspects Ps political stability? possibility of nationalization? Taxation aspects Corporation Tax? tax incentives? tax holidays? Labour aspects : accelerated depreciation? skilled labour? R duties and tariffs? local management? labour laws? social security? amenities for expatriates? Capital aspects cost of local capital: availability? insurance and bankinj Jaws about local participation? Business aspects cia insurance from home country? antitrust laws? permitted profit margin: corruption? Exercise 12 So far as | know Language input If you have information, but are not sure whether it is true, use: So far as | know ... I'm told that ... | understand that .. . Example I'm told that the labour laws are very strict. 1 understand that the cost of land is high. Using the information which you noted above, make sentences beginning with So far as I know ... I'm told that ... and I understand that . .. If in difficulty, look at the tapescript. 125 CNR POM Company performance Exercise 13 Your ten-year sales record As Chief Executive of Minitex (a Macrotex subsidiary), you have to present your sales record to the parent company Executive a) First, listen to the presentation of your sales record on the cassette, and note the movements it describes on the graph below. You will need to stop your machine several times. When you have finished, compare your graph with the one on page 139. 160,000 140,000 120,000 100,000 80,000 82 83 84 85 8 «87 «88 89 LSB b) Now, without the cassette, try to provide a similar presentation of the sales record. Practise without looking at the tapescript Tapescript There are two types of product range represented on this graph: product ranges A and B. They are represented by two different curves. Let’s look at product A first. In 1982, Microtex sold 100,000 units in this range, and sales remained at this level in 1983. Then in 1984 turnover increased to 120,000, and by 1985 the level was 140,000. Again, in 1986, there was a steady increase to 150,000. ‘The next year sales of range A fell slightly to 140,000 and then fell dramatically in 1988 to reach a low point at 90,000. Since then, there has been a steady increase: to 100,000 in 1989; then a rise to 110,000 in 1990; the same increase again, to 120,000 in 1991; and again, range A sales have reached a peak of 140,000 in 1992. Now product range B. Range B was the major product range in 1982; at a level of 150,060 units per year. Sales in this range enjoyed a steady period for three years, until 1984, but then in 1985 there was a sharp drop to 110,000. The sales force managed to achieve a slight increase in 1986 (to 120,000), but then the downturn continued: in 1987, 110,000; 100,000 in 1988; 1989, 90,000; 1990, a low point of 80,000. Since then sales have remained steady, and we think that turnover in the product range has reached a trough which may continue for two or three years to come. 126 UES CON Exercise 14 Your company’s fortunes In 1987 your company, Minitex, created a small operation called Microtex, You have to give a description of its progress to the Central Executive, and so you have made the following notes. There was a teeing f concern Tris was’a boom period x There was a spit of cantaence We were 9 senous aitcully 1 was’ penoe of growth ana exoansion “ThingS looked baa There an air of 7 We Broke into new mamets cautious optimism We etteciée a recovery {we got off to 2 good stat a ing stan) fe twrned the ‘company round Jan, 87 Jan. 88 Jan. 89 Jan. 90 Jan.91 Jan. 92 Jan. 93 When you have read the notes above, cover them, and see if you can write them on the graph below. Finally, see if you can provide a commentary on the fortunes of Microtex, using these expressions. Remember to use the simple past (we got off, it was, etc.) and to refer to the dates. Example In January 1987 Microtex got off to a good start. fo Jan. 87 Jan. 88 Jan. 89 Jan. 90 Jan. 91 Jan. 92 van, 93 UAE Coase OS Exercise 15 A growth period Your colleague from another subsidiary, Maxitex, presents these figures showing his company’s development in recent years. Markets Rest of word Rest of world Staff growth ~ RARAA -— = ARRRRRR Om RAR ARR RRR RR RG coon Language input _ Instead of giving an exact time or date, you can use ago. Example Five years ago we had only ten employees. if you talk about the present situation, and mention the time or date when it began, use since. Example Turnover has doubled since 1991. If you want to say how long a present situation has continued (without mentioning when it began), use for. Example Turnover has risen every year for 11 years. 128 UE ee} POEs bar chart Tumover growth Your colleague's English is not too good, and in his presentation the makes a lot of mistakes, You, of course, know better! How would you complete the following statements about his company? a) Our turnover was only $0.4 million ten years___. b) Five years _____, 18% of our sales were to Europe. ©) Our staff has been increasing steadily ___ 1988. 4) Turnover has nearly doubled 1990. e) Turnover has increased every year eleven years. £) Our sales to Europe have increased by 7% 1988, g) Our staff has increased by 400% _____ five years ago. h) Our turnover has been over $10m per annum __ the last four years. 129 LES Pon Exercise 16 How do you compare with the competition? ‘The parent company is sure to ask you about the competition. You are fortunate, because Minitex's main competitor, Cassandra, is in difficulty, and you can compare the two companies with confidence. Language input Contrasts (comparisons which concentrate on the differences between two things) are made using whereas or while. Example Minitex is taking on more staff whereas/while Cassandra is declaring redundancies. Now, contrast the fortunes of the two companies, using the information below. UTS) is taking on more staff is declaring redundancies is enjoying steady growth has a falling turnover is making profits is making heavy losses is in credit and has no liquidity has an overdraft and cash-flow problems problems has an increased market share has a reduced market share is launching new products has a limited product range enjoys high productivity is inefficient in production has a capital investment cannot afford new investment programme has good workforce morale suffers from industrial unrest is highly competitive is no longer competitive seems a sound and reliable seems a high-risk investment investment has a secure future may soon | collapse go bankrupt fold up be wound up ‘When you have finished, cover one column with a piece of paper, and try to remember the opposite expressions in the other column. 130 IT 7_ TALKING ABOUT COMPANIES COMPANY PERFORMANCE: Exercise 17 Are you in the right sector? An investor looks at the performance of different industrial sectors over the past six months. He knows all the jargon of his favourite sectors! Can you explain the terms he uses, by completing the sentences below? FOCUS: STOCKMARKET SECTORS The char shows how the prices of shares in

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