COST CUTTING

• ISCA is a medium-sized manufacturer of precision metal-

cutting tools for industry, with four small factories around
Europe. It makes both standard cutting equipment on its
production line and more specialised, tailor-made cutters
for individual customers. It sells its cutters mainly through
its network of highly-trained salespeople around Europe,
and also through marketing at trade fairs and the Internet.
• Like many companies, ISCA is struggling financially, and is
rapidly losing market share to cheaper competitors from
abroad. It needs to cut costs to survive and grow. Its senior
managers meet for a crisis meeting.
 Questions
1.Read the background information and find out
what the company is and what problem is it
facing
2. Point some ways that medium sized
manufacturing company could try to save
costs.

3.How company can save cost!

• 2. Answer the following questions
• a. In which of the sentences above does the speaker
suggest and justify an idea?
• b. In which sentences does the speaker explain why
an idea wouldn’t work?
• c. Complete these sentences using words from the
box:
• Use a _____ conditional (if with _____ tenses and
_____ or can) to present and justify an idea that you
think will work. Use a _____ conditional (if with
_____ tenses and _____, could or might) to explain
why a bad idea wouldn’t work.
• 3. Complete these sentences using either a first
or second conditional, depending on whether
you think the suggestion is a good or bad idea.
• a. If we spend/spent less money on Research and
Development, we’ll/we’d …
• b. We could raise our prices. That’ll/That’d mean
…
• c. Our employees will/would work more
efficiently if we …
• d. Do we need such a big factory? We can/could
…
• e. If we automate/automated our production
line, …
 Role play
• You are senior managers in ISCA’s Logistics department.
Your department includes the following functions:
• goods-in (receiving raw materials from suppliers)
• pre- and post- production warehousing
• distribution using your fleet of delivery vehicles
• import–export
• Discuss together how you can cut costs in your
department, and what the consequences will be.
Discuss also how you think these other departments
might cut costs.
• Sales and marketing
• Operations (production)