Case study

( Deadline: 6 pm, 9/9/2021)

Listen and fill in the blank

Track 41

So, to summarise, our product is a (1) storage device with a modular design. It’s very flexible
(able to bend easily without breaking), very versatile ( able to do many different things). It can
be divided up, added to and shaped to fit (2) any space in a house or apartment. You can put
bottles, flowers, magazines, fruit, nuts, lots of other things in it. It’s (3) lightweight, durable and
very stylish, and made out of a special, (4) recyclable material.

We're looking for an investment of $200,000 from you in return for a stake of (5) 25%
in our business. The name of our product is MultiStore.

Track 42

T1: OK, another question I'd like to ask you. Have you taken out a patent for the device?
El: Yes, we have. The product is (1) fully protected against copying.
Tl: Excellent. And what’s your profit margin on each 10-module unit?
El: It’s approximately (2) 80%
T1: Mmm, quite good. And how about your forecasts for the next three years,(3) turnover
and profit ?
El: In year one, we forecast a turnover of $150,000 and a profit of approximately $120,000.
Year two, turnover of $600,000 and a profit of $5480,000. And in year three, a turnover
of $3 million and a profit of $2.4 million.
T2: Now I’d like to ask a question. How many of the 10-module units have you sold, and
who have you sold them to?
E2: I can answer that question, as I'm the sales person in our team. We've sold about
2,000 units, mainly to (4) major department stores and specialist shops for household
goods in New York and Chicago.
T2: OK, thanks for all the information. Now, I'll tell you what I think. I like your product,
it’s definitely got (5) sales potential , and I'd like to make you an offer. I'll give you the
full amount, $200,000, but I’d want a stake of (6) 50% in your business. The market for
 this sort of product is very competitive, there’s a lot of risk involved, and (7) marketing
and promoting it could be very expensive. So that’s the deal I’m offering you.
El: Mmm ... we'll have to think about that. OK, thank you. How ahout you? Are you
interested as well?
T1: Yes, I like the product as well, but I also think it’ll need a lot of marketing to get
established, and you may have to change the packaging. So ... I’ll offer you the full
amount, $200,000, for a stake of (8) 45%
El: OK, so we seem to have two offers on the table. Could I ask each of you, what (9)
business expertise you could bring to our business? How much help could you give us,
apart from money?
T1: Well, I have a company which sells (10) household products to the retail trade, and
it’s very successful. You would be able to use our sales force to build up sales and
develop the brand. And I would be very (11) hands-on in developing your product.
T2: In my case, I have a very good track record investing in start-up businesses like
yours. Basically, I invest in people, and I’ve been impressed with your presentation.
I think we could work well together.
El: Thanks to both of you. Could we have a break and consider your offer?
T1&2: By all means/certainly. Take your time..