2020-10-10
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This study
...is an accurate/ comprehensive/ convincing analysis of …
...is an instructive/ minute/ profound/ thorough description of…
...is a good snapshot of functional analysis…
...supports the theory of…
...sheds new light on …
...allows a principled decision on …
...sounds attractive…
...proved to be successful…
...deals with the complex subject in an orderly manner…
...shows very convincingly, that …
...presents a wealth of data about…
It is doubtful / I doubt that…
I am unsure whether …
I am afraid / not sure/ I am not convinced that…
I am skeptical / critical / suspicious of …
This example can serve as an illustration to….
This procedure may be illustrated by …
Two sample cases (simple examples,) will help demonstrate …
Here I shall give examples, which show that …
To illustrate the point (further), we may take / consider another example…
The following examples may serve as illustrations…
Ex. 6.14. Search for a podcast on the subject ‘SWOT analysis – Management study guide’, listen to the podcast or watch the video, take notes and get prepared to deliver a small talk in class (a 5-minute lecture) using your notes. You may use the following website to complete the task: www.managementstudyguide.com.
| UNIT 7 |
| RUNNING A BUSINESS |
Ex. 7.1. Define the following terms: backers, competitive edge, venture capital, go public, initial public offering, turnover, acquisitions, reinvestment, collateral, suppliers, competitors, loyalty. Check their definitions in the dictionary.
Ex. 7.2. Read and translate the following text.
INITIAL IDEA
Someone has an idea for a new business (a 'start-up'). Maybe they spot a gap in the market or maybe they have an idea that is similar to existing offers, but with a competitive edge. Potential sources of finances for this new business include self-funding, backers such as friends and family members, a bank loan, and a venture capital firm. A bank will want some sort of security in case the loan is not repaid, and sometimes the person's house is offered as collateral. The fourth option, venture capital (VC), is attractive for businesses with a high profit potential in the medium term, but high start-up costs. A VC company will offer funds and take on the risk of the business failing, but in exchange will want a large number of shares. They aim to sell these later, when the business goes public. When financing is in place, the business is registered as a legal entity: sole trader, partnership, limited company, etc.
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Early months and growth phase
Now the business can start trading. The risk of failure in the first two years is very high. Often the problem isn't sales, but cash flow: the company has to wait for its invoices to be paid, and meanwhile the debts are piling up. The bank will only extend its line of credit up to a point.
But hopefully the business achieves a critical mass of customers and establishes itself in the marketplace. It ends a growth phase. This early growth tends to be organic - turnover increases, the company employs more staff, it develops a supply network, etc. The majority of small companies just continue in this way – growing or shrinking year by year depending on their managerial skills and general market conditions.
Selling the business
However, there are other possibilities. The founder of the company may decide to sell the business as a going concern. They might sell to a competitor or to a company wanting to expand into that market. The buyers here are looking to grow through a strategy of acquisitions (takeovers), an alternative to the strategy of organic growth.
IPO
Another possibility is that the founders may decide to go public (= float/list on the stock exchange). Here, they sell their original privately-held shares at an IPO (initial public offering). This brings in a huge amount of money, some going directly to the owners as reward for their hard work, the rest going back into the business as reinvestment.
TEN REASONS WHY A NEW BUSINESS CAN FAIL
| REASON | CAUSE | SOLUTION |
| Poor initial market research | starting a business with a good idea, some money and a lot of enthusiasm | take some time to research the market thoroughly |
| Cash flow problems | buying too much stock, customers paying late or not at all, suppliers needing to be paid on time | produce realistic cash flow forecasts and pay strict attention to budgets |
| Failure to listen to customers | sticking with your own original ideas for too long | actively seek the views of customers, and act on what they say |
| Bad business location | false economy = cheap lease in the wrong neighbourhood | remember that accessibility for customers is crucial |
| Ineffective marketing | thinking that a good product will sell itself | be creative, constantly review the marketing plan |
| Overexpansion | being too ambitious | be realistic |
| Overspending | spending your seed money too soon | planning, keeping some cash in reserve |
| Poor customer service | behavior of some employees | training, monitoring company culture |
| Underestimating the competition | assuming that you have customer loyalty | watch competitors closely |
| Failure to change | complacency after initial success, lack of innovation | be flexible, recognize opportunities, adapt |
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Ex. 7.3. Find a word in the text that matches the definition below. The words appear in order.
carefully and completely ….
(informal; phrasal verb) continuing to do something without changing it …..
(two words) something that is cheap but could have bad results …..
small area of a town …..
(two words) money that is used to start a new business ….
being faithful to a product / brand / company, etc ….
being too satisfied and confident, so that you stop trying to improve …
