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Work in groups of three and discuss what can influence the demand of goods and why companies sometimes have to switch from one aspect of business to another.
Is it possible to stay competitive for a long time? What measures can be taken in order to satisfy consumers and enjoy the fruits of the business?
Now skim the text, check your ideas and choose the best title for it, give reasons for your choice.
Consult Vocabulary p. 141.
A A way to success
B Fast changeable demand
C Technologies vs market stability
In order to be successful a firm has to identify unsatisfied needs within society and then proceed to satisfy them. Some would say businesses create needs by various forms of advertising, in order to satisfy them subsequently. Examples of this are the frivolous demand for chocolate Easter eggs and greetings cards and flowers for Mothers’ Day.
The main difficulty facing businesses, however, is that their markets are constantly changing. Consider the firms which were making gas mantles in the early years of the twentieth century. Their future looked assured. London and all other western cities were lit by gaslight. Then came the switch to electricity and gas mantles had become museum pieces almost overnight. There was a similar situation with the textile called rayon. Up to the middle of the twentieth century it was the fashion for western ladies to wear rayon stockings. Then nylon was developed and the market for rayon stockings completely disappeared. At the present time we are seeing typewriters giving way to electric typewriters – giving way to word processors, and we wonder what the next in line is. Likewise accounting machines gave way to mainframe computers which are now being revolutionised by the microchip. Markets and technologies are forever changing and the successful business is the one which can keep abreast of the changes.
The moral for the modern firm is to be forward looking, anticipating and projecting trends, forestalling problems by foreseeing them. Questions need to be constantly posed. What are we producing now? What should we be producing next? What changes need to be made? What are our competitors up to – at home and overseas? What is happening to the markets for our goods? Should we be diversifying our products? Where do they stand in their life cycles? What resources (including human resources) do we need to carry out our plans and how are we going to obtain these resources? To survive in business we need to be eternally vigilant, flexible, and competitive and keep pace with technologies.
Task 19. Comprehension 1
Read the text again and decide if the statements are true (T), false (F) or doesn’t say (DS) – there is no information in the text.
1. Society demands from companies to satisfy their needs.
2. Constantly changing markets cause problems for the businesses.
3. There are a lot of examples that demonstrate how innovations influence the production of goods.
4. The success of a company depends on careful planning.
5. Companies should rely only on a current situation and produce what they produce without foreseeing future trends.
Task 20. Writing 4
Study the situation in Beauty Unlimited and write a report. Consult Writing References, see Appendix III p. 134.
You are the Personnel Assistant to Sally Forster, Personnel Director at Beauty Unlimited. It has been suggested that the company set up a suggestion scheme whereby employees are encouraged to put forward their ideas for improving any aspect of the work. Mrs Forster has indicated that she would be prepared to ask the directors for a contribution of up to $10,000 in the first twelve months of the scheme and she is now asking you to write a brief but formal report (up to 200 words) indicating the likely value of the scheme to the company. She is envisaging setting up a special committee to vet any proposals put forward but admits she has an open mind on the subject at present. She is hoping you will come through with some ideas.
There are approximately 500 workers employed at the factory. Most of them are women under the age of 30. The company uses mass production techniques to produce a range of beauty aids from hair dyes to cleansing creams.
Task 21. Writing 5
Complete the following sentences using your own words:
Businesses will flourish …
An aspiring manager should learn …
Businesses are often affected by situations …
By anticipating problems …
The decision-making process …
If we can minimise our costs …
The good manager is one who …
The most valuable subordinate is the one who …
When a business is faced with falling sales it can either …
If only one member of staff can be promoted …
If a member of staff is consistently late …
Task 22. Vocabulary 5
Match the words given below to the dictionary definitions.
Capable of adaptation to changing situations.
This type of manager tends to make decisions without referring to those affected by them.
An objective and rational approach.
A weighing up of the pros and cons in a given situation.
A situation where an employee is no longer required by the employer.
The type of management which is both caring and helpful.
Risky, as when sailing in uncharted waters.
A description of a problem with many aspects to be brought into account.
A look forward in an attempt to spot future threats or opportunities.
To put a decision into effect.
Someone who is below another in the organisational hierarchy.
The alternatives available to one in the decision-making process.
Certain delegated powers given by a manager to his staff.
Stress laid on or importance attached to a particular aspect of a problem.
The type of action which is intended to solve a problem.