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F

  1. They were still owners of the partnership







  1. They owned 9,000 shares of stock







  1. They had enough votes to control the operation of the business.







  1. All in all the corporation then amounted 30 shareholders













G

    1. JoAnn McCline was elected as a managing director







    1. The total profit including taxes was $11,200







    1. There were seven people in the Board of Directors







    1. The part of the profit that each stockholder received is called a share



Task 1.6 Choose the correct answer.


A partner is...

  1. Any person who signs any kind of legal document.

  2. A person or group of people who take part in a legal agreement or dispute.

  3. One of two or more people who run a business.

The investor of the public company has a right to sell the shares belonging to him

  1. Only with the permission of the Chairman of the Board of Directors.

  2. Without the consent of other shareholders of the company.

  3. Only to the shareholders of the same company with the resolution of the shareholders' meeting to follow.

A sole / individual proprietor is...

  1. The managing director of the company.

  2. An individual carrying out economic operations in different spheres of business activities and concluding commercial deals on his own behalf.

  3. A hired person who is in charge of the operation of the company.

Task 1.7 Give your own definitions to these words




  1. partner

  1. business

  1. company

  1. liability

  1. trade

  1. consent

  1. advantage

  1. disband

Task 1.8 Below there are ten words and word-combinations used in the text. On the right of them, there are ten alternative ways of saying the same thing; however, these are mixed up. Choose the words and word-combinations on the right which have the same meaning as the ones on the left.




  1. to consider

1) to go on

  1. consent

2) personnel

  1. to carry out

3) the owner

  1. liquidation

4) the body of the directors

  1. to carry on

5) to receive

  1. the proprietor

6) to fulfill

  1. management

7) to regard

  1. a certificate of indebtedness

8) agreement in opinion or sentiment

  1. staff

9) debenture

  1. to obtain

10) winding up

Task 1.9 Study this information


Incorporation
All partnerships and companies are regulated by the law of the U.K. or by Acts of Parliament, and are to be registered with the Registrar of companies. In order to be registered they are to deliver a few documents, namely:

  • a certified copy of the company's charter;

  • statute;

  • memorandum and others.

When a company is registered a certificate of incorporation is issued by the Registrar.

Here is one of the certificates:



Duplicate for the file No 989855.

Certificate of Incorporation

I hereby certify that the Goldfields, Limited is this day incorporated under the Companies Acts, 1862 to 1994, and that the Company is Limited.

Given under my hand at London this tenth day of July one thousand nine hundred and ninety four.

Fees and Deed Stamps 15,200. 00

Stamp Duty on Capital 13,510.00

Registrar of Joint Stock Companies

Certificate received by Stephen Low

65 London Wall, E.G.,

Date 13 the July, 1994


Task 1.10 Read the text and make a short summary in English


Жеке кәсіпкерлік

Жеке кәсіпкер өз қызметінің орынын айқындайды және іске өз капиталын енгізеді. Оған – жергілікті заңдарды білу және істі бастау үшін жеткілікті қаражаты болу керек. Бұл - кәсіпкерліктің ең оңай және ең арзаң түрі.



Артықшылықтары:

  • ең оңайы - бастау;

  • ең арзаңы - ұйымдастыру;

  • ең икемді құрылымы, себебі бар білік Сіздің қолыңызда.

Кемшіліктері:

  • заң алдындағы жауакершілігі және қарызға жеке жауапкершілігі шектеусіз;

  • тұрақсыздық. Аурғаныңыз немесе өліміңіз Сіздің бизнесіңіз үшін – қауіп-қатер;

  • жауапкершіліктің ауыртпалығы және ресурстардың шектеулігі;

  • өз жеке істеріңізді бизнеспен шатыстыру оңай.


Серіктестік

Сіз, тағы бір немесе одан да көп адам өз жеке мүлікті біріктіріп, серіктестікті құрастыруға келістіңіз. Сізге тек қана капиталды және дивидендтерді қатысушылардың арасында (Agreement of Capital and Dividends Share) бөлу туралы жазба түрінде келісімді және серіктестікті басқару жөнінде барлық ережелерді ескертілген жарғыны (Statute) құрастыру керек. Серіктестік үшін қызметінің шектеулі мерзімі және ең болмағанда бір серіктестің шектелмеген жауапкершілігі қарастырылған.



Артықшылықтары:

  • ұйымдастыру оңай;

  • серіктестер арасында жұмыс қуаты, идеялар, тәжиребе және жауапкершілік бөлінеді;

  • капиталдың әлуетті қосымша көздері;

  • қатысушылар корпорация салығын төлемейді (корпорацияның пайдаға салынатын салығын). Қатысушылар серіктестіктің қызметінен табыстарын табысқа салық салынатын өз жеке табыстарға енгізеді;

  • негізгі серіктестердің әрқайсысына серіктестіктің атынан әрекет етуге болады.

Кемшіліктері:

  • негізгі серіктестердің шектелмеген жеке жауапкершілігі бар;

  • банкротқа ұшыраған жағдайда, ең үлкен жеке жарнасы бар серіктестер артығырақ залал көреді;

  • серіктестіктің бас қатысушысы қаза болған жағдайда, серіктестік бастапқы түрінде жабылып қалу мүмкін (бірақ, үнемі олай болмай, жаңа мүшелерді кіргізуге болады);

  • жүріс-тұрыс стратегиясы және өкілеттіктің үлестірімі анық айқындалмауы да мүмкін;

  • фирма істерінде әрбір серіктестің қатысу үлесін дұрыс айқындау қиын да болады;

  • жаман серіктестен құтылу қиын.

Корпорация

Корпорацияны құрастыру – бизнес ұйымдастырудың ең қиын және қымбат жолы. Корпорациялар меншікті бөлу түрін анықтайтын акцияларды (stocks, shares) шығарады. Жабық корпорацияларда кейбіреулер адамдар ғана акцияларға ие болады және оларды өздері сатады, ал ашық корпорацияларда – брокерлер арқылы сатып алғысы келетін адамға акцияларды сатады. Ең алдымен акцияларға жазылысты өткізу керек және тіркеуге керек құжаттарды дайындау қажет. Содан кейін осы штатта корпорацияның құруына оның қызметінің құқықтары мен шектеулері көрсетілген өкіметтің рұқсатын алу керек. Корпорацияның меншігі әрбір меншіктенушінің қатынасында заңмен анық айқындалады, бұл әрбір акционер немесе акциялар иесінің (stockholder, shareholder) жарналарын белгілі жағдайда қорғайды. Корпорацияның меншіктенуші болып жиі оны басқаратын адам емес болады (корпорацияның меншіктенуші болып акционерлер болады, ал менеджерлер болмау да мүмкін).

Акциялардың бағасы фирманың жақсы жұмыс істеуіне және ол қоғамға ұнағанына байланысты өседі немесе төмендейді. Мысалы, фармацевтикалық компания жаңа таңқаларлық дәріні ойлап тапса, акцияларының бағасы таур дүкенге түспей тұрғанда көтеріледі. Егерде, фирманың қызметіне өкіметтің қадағалау ықыласы түскен болса, оның акцияларының бағасы, іс сотқа жеткенге дейін төмендеуі мүмкін. Компания туралы қоғамдық пікір оның бағаларына жұмысы сияқты әсерін тигізуі мүмкін.

Акциялардың иелерін спорт командасы иелерімен салыстыруға болады. Олар командасын көтермелейді, акцияларды сатып алғанда, команда жақсы ойнап, сыйлық ұтады деп үміттенеді (акциялардың бағасы өседі). Команда ұтыла бастаса, матчқа аз жанкүйерлер билеттер сатып алады. Адамдар фирма өсіп, пайда табады деп үміттенеп, акцияларды сатып алады. Фирманың өсуі баяулай бастаса, ал ақша жоғалта бастаса, адамдар матчқа бармайтын жанкүйерлер сияқты, өз акцияларын сата бастайды. Акциялардың иелері акционерлердің жиналыстарына қатысуға және негізгі сұрақтары бойынша, мысалы, директорлар кеңесінің мүшелерін, кейде президентті де ауыстыру сияқты шешімдерді қабылдау құқықтары бар.

Директорлар кеңесін команданың тренер құрамымен салыстыруға болады. Олар нақтылықта майданға шықпайды және ойындарға қатыспайды, бірақ команда жұмысы бойынша тағдырдың шешімін қабылдайды. Барлығы да жақсы жүріп жатқанына көзі жету үшін, кеңеске жылда бірнеше рет жиналады. Күнделік шешімдерді корпорация ішіндегі менеджерлер қабылдағанымен, диркторлар кеңесі жоғары буынның басшыларын өздері жалдап, жұмыстан шығара алады. Директорларды акционерлер сайлайды.

Корпорацияның қызметкерлері (жұмыскерлері) футбол командасының ойыншыларға ұқсас. Тренерлері мен басшылары емес, олар өздері ойынды жүргізеді. Тренер қаншалықты жақсы болса да, жанкүйерлер қаншалықты ынта көрсетсе де маңызды емес, ойынның нәтижесін тек ойыншылар нақ шешеді.

Президентті немесе атқарушы директорды - chief executive officer (CEO) – спорт командасының жауапкершілік тренермен салыстыруға болады. Ол фирманы басқарады және өз қызметкерлерді белгіленген мақсатқа жету үшін шабыттандырады. СЕО фирманың жұмысы үшін жалпы жауапкершілікті өз міндетіне алу және істер ойдағыдай емес жүрсе, директорлар кеңесі мен акционерлердің алдында жауап беру тиіс.

Артықшылықтары:


  • акция иелерінің жауапкершілігі мөлшері жеке жарнасының сомасымен шектеленеді;

  • инвестордың артық болған жағдайда капиталды тарту оңай;

  • орнын басушылық, себебі меншікке құқығы басқа қатысушыларға табыстау мүмкін;

  • меншік құқығын басқаға қайта табыстау процедурасының оңайлығы;

  • корпорация құрушы/серіктес егер қайтыс болғанда, - жоқ болып кетпейді;

  • жұмыс функцияларын әр түрлі корпорациялардың арасында үлестіруге мүмкіндігі бар;

  • құқықтары мен өкілеттіктерін табыстау;

  • көптеген кісілердің тәжиребесі мен білімдерін пайдалану мүмкіндігі.

Кемшіліктері:

  • серіктестікпен салыстырғанда, жай корпорациялар үшін зейнетақы қоры мен жалақы аударымына шектеу қолданылады;

  • олардың іс-әрекетіне бақылауды жасау қиын, акционерлерден пайда бөлігін жасыру сияқты алаяқтықпен жиі кездеседі;

  • акционерлердің құқықтары Жарғымен шектелген, азшылықтың мүдделеріне жиі қысым жасалады;

  • шамадан тыс реттеуге жатады;

  • құру мен тарату өте қиын;

  • басшылар әдетте акциялар бас иелері үшін «жұмыс істейді» және олардың мүдделерін сақтайды;

  • кәдуілгі корпорациялар қос салық салу субъектілері деп есептеледі, себебі корпорациялық салығы бар;

  • заңдық реттеу жеке кәсіпкерлігі мен серіктестікпен салыстырғанда қатаңдау;

  • меншіктенушіге жалған қауіпсіздік сезімін береді;

  • қызмет еркіндігі аз;

  • жүргізу мен «тарқатылу» қымбат және қиын.

Task 1.11 In pairs make up a dialogue on one of these topics:




  • A business adviser and a person who wants to start his business;

  • Two friends are going to start their business and discuss all pluses and minuses of all types;

  • Your partner is going to enlarge your business incorporating it. Try to persuade him that it is an unprofitable step.

2 Takeovers and mergers
Task 2.1 Being a Company Number 1 on the market you want to get more profit but you have a competitor Company Number 2. What steps would you do to make your position stable?

Text

Takeovers and Mergers

There are several relationships that may grow up between business in Great Britain and the United States of America. They are as follows:



  • takeovers;

  • mergers;

  • amalgamation;

  • integration;

  • combination;

  • absorption etc.

No agreement has been reached among financial experts as to the precise difference in meaning between the terms. The most popular are takeovers and mergers. In a takeover one company buys a controlling interest in another company by acquiring at least 51% of its shares. The company does this by making a direct approach to the company's shareholders for their shares. The company intending to take over will not necessarily consult the company it is taking over.

The Stock Exchange Council in London has drawn up a code of practice to regulate takeovers to prevent some abuses. One such abuse is secret dealing when a company wishes to take over secretly and buys its shares secretly. Another abuse is insider dealing thanks to information used for personal profit.

With a merger, two or more companies involved will consult with each other previously. They try to make a certain agreement on their merger to the satisfaction of both companies.
Task 2.2 Study this chart. Can you give your own examples for every term?


Vertical integration

Сатылас интеграция



A situation where two more organisations that deal with different stages h production process are combined and controlled by one company. Vertical integration reduces costs and the threat of competition.

Генри Форд өз компаниясын 1903 жылы сатылас бойынша құрды. Ол Бразилияда каучукты плантацияны, Канадада орманның телімін және Америкада рудникті сатып алды. Автомобильдерді өндіру бойынша зауыты Дирборнда орналасқан, оған ағаш, каучук және тау рудасы жеткізілді. 20 жылдан кейін сатылас өзіңді ақтамаған.




Horizontal integration

Деңгейлес интеграция



A situation where two or more organisations that produce similar goods or carry out the same stage of the production process are combined and controlled by one company. The aim of horizontal integration is to eliminate competition.

Дженерал Моторс компаниясының құрушы Альфред Слоун деңгейлес интеграция идеясын қолданды. Ол дайын автомобиль компаниялары мен жиынтықтарды өндіру зауыттарын сатып алды. Слоунның деңгейлес сұлбасы қазіргі кезде де бар.




Group

Топ


A holding company together with any subsidiary companies in which it owns more than half of the share capital.


Holding / Parent company Төркіндес/Холдингілік компаниясы


The leading company of a group that holds all or more than half of the shares of the other companies.


Subsidiary / Daughter company

Еншілес компания




A company of which at least half the share capital is owned by another company called a parent or holding company.

Associate company

Қауымдастырылған еншілес компания



A company of which more than 20%, but less than 51% of the share capital is held by another company.

Affiliate company


A company that is attached to a larger organisation, i.e. completely or partly owned by another company.


Branch

Филиал / Бөлімше



A local office, shop or group that is part of a larger organisation with a main office elsewhere.


Take-over

Жұтылу


The buying of one company or most of the shares in it, by a person or another company.


Black knight

Қара сері



A person or a company that tries to buy (take-over) another company that does not want to sell. A black knight makes an unwanted take-over bid.


Grey knight

Сұрқай сері



A person or a company that tries to buy (take-over) another company and does not reveal any plans for the company's future.


White knight

Ақ сері


A person or an organisation that rescues a company from an unfavourable take-over bid. A white knight makes a better offer.


Target company

Компания-нысана



A company that a person or another company tries to buy by making a take-over bid.


Dawn raid

«Таңғы рейд»



A surprise attempt to buy a large number of shares in a company in the first minutes of a day's business on the stock exchange, before dealers can react by raising prices. But now "the dawn raids" are restricted by the City Code on Take-overs and Mergers and a Monopolies and Mergers Commission.

Task 2.3 Scan the texts and find the answers:



  1. What is the main idea of setting up a joint-venture that is to be launched in Seoul?

  2. Will the car financing venture limit itself to financing Kia and Ford car buyers only?

  3. What did the shareholders of TSB Group approve?

  4. Why is the demerger of the US healthcare group 'Baxter International' a classic of the genre?

  5. What is curious in that demerger?

  6. What does 'Banco de Napoli' intend to do with its branches?

  7. What did Cordis Company agree to?

  8. What are the terms of the agreement?

  9. Where from did the increase in sales arise?

Кia, South Korea's second largest vehicle maker, and Ford Motor Credit, a unit of Ford of the US, have established a joint venture car finance company for Korean buyers. Kia Ford Credit Finance has an initial paid-in capital of Won 33.3bn ($44m) which will be increased yearly. The venture will be launched on January 1, 1996 in Seoul, with plans to expand nation­wide. The car financing venture will not limit itself to financing Kia and Ford car buyers.

Shareholders of TSB Group approved the bank's merger with Lloyds Bank, and the change of name of their company to Lloyds TSB Group. The merger is expected to take effect from December 28, 1995. The shareholders also voted to allow TSB directors to make arrangements for Lloyds Bank share option holders to be given options over Lloyds TSB shares.

The demerger of the US healthcare group Baxter International is in several ways a classic of the genre. First, Baxter is splitting off the manufacturing and distribution activities.

Second, it is unpicking a decade-old merger with its larger rival American Hospital Supplies, which was largely designed to bring manufacturing and distribution together. It might also seem curious that only two years ago, Baxter carefully considered demerging the business and decided against it. The impression remains that Baxter's demerger is very much in line with the prevailing fashion: take a vertically integrated business and pick it apart, with a view to possible horizontal merger with fresh partners.

Banco di Napoli, the troubled Italian bank, intends to sell or close chronically loss-making Italian branches, while unproductive foreign branches will be disposed of or turned into representative offices.

Cordis, the US maker of cardiology equipment and other medical devices, agreed to a takeover by Johnson and Johnson in a deal valued at about $1.8bn. Under the terms of the agreement, Cordis would keep its Miami, Florida headquarters and its name.

Sale of the first six months of 1995 rose to FF26.95 billion, showing an increase of 22.8 per cent. The growth can be attributed to a 20.6 per cent increase arising from changes in structure, in particular the consolidation of four new subsidiaries into the group.

Task 2.4 Give English equivalents to words and word-combinations. Make up your own sentences using them.


  1. Бастапқы капитал

  2. Бірлескен кәсіпорынды құру.

  3. Банкілердің қосылуын мақұлдау

  4. Өндірістік қызметі мен үлестіруін бөлу

  5. Бизнестің дәстүрлі саласы

  6. Сатылас біріктірілген бизнестің типтік үлгісі.

  7. Жаңа серіктестермен деңгейлес қосылу

  8. Қиындықтарды көрген банк

  9. Созылмалы залалды филиалдар

  10. Банкілердің өкілдіктері

  11. Джонсон энд Джонсон жұтып қоюды ниет еткен кезде

  12. 1 милд доллар шамалап бағаланған мәмілесінде

  13. Шарт талаптарына сәйкес

  14. Сатудың көлемі ... дейін өсті

  15. Жаңа еншілес компаниялардың бір топқа бірігуі фурорды туғызды.

Task 2.5 Choose the correct answer:



A joint-venture is...

a) A business or commercial activity in which there may be some risk for the parties concerned.

b) A business activity in which two or more people or organizations work together.

c) A group of people chosen to represent others in organizing affairs thatconcern them all.



A merger is...

  1. The aim of selling to a particular group of people.

  2. A company whose shares are not recorded on the main market of a stock exchange.

  3. The combining of two or more organizations, usually to share costs, increase efficiency and avoid competition

A consolidation is...

  1. A temporary association of two or more companies for a major project that is too complex for any of them to do alone.

  2. The bringing together the financial resources and accounts of a holding company and its subsidiaries so that the strength of the whole group is revealed.

  3. A number of companies, sometimes involved with different products, joined together and run as one large company.

Task 2.6 Give every word combination collectively pertaining to each word listed below.




  1. effect

  1. merger

  1. capital

  1. to agree

  1. to value

  1. takeover

  1. option

  1. consortium

Task 2.7 Below there are ten words and word-combinations used in the text. On the right of them, there are ten alternative ways of saying the same thing; however, these are mixed up. Choose the words and word-combinations on the right which have the same meaning as the ones on the left.




  1. a subsidiary

  2. manufacturer

  3. growth

  4. consolidation

  5. a take-over

  6. a combination of businesses

  7. to allow

  8. loss-making

  9. a firm

  10. to finance




  1. a merger

  2. to supply with money

  3. a company

  4. to permit

  5. producer

  6. unification

  7. the process of assuming management

  8. a daughter company

  9. increase

  10. unproductive

Task 2.8 Insert the right word or word-combination choosing from those given.

  1. partner

  2. a joint-venture

  3. the company

  4. limited

  5. Board of Directors




  1. business

  2. work

  3. decisions

  4. the proprietor

  5. a letter

  6. private




  1. strict

  2. sole proprietorship

  3. corporation

  4. matter

  5. manufacturer

  6. General Manager




  1. I have a meeting with my………., so I decided to postpone all my appointments.

  2. I've got my own………, so my company is…….. ………

  3. My friend's father has got a factory. He is …………

  4. The Korean and Kazakhstani parties have agreed to establish ……… to produce TVs and VCRs.

  5. The director of the company is very………... He doesn't like it when people are late for………...

  6. A private limited company must have a word “……… “ in its name.

  7. Someone of the Town Hall came to see …… ………on an urgent ……….

  8. My father is the President of the………..

  9. Members of the ………. make important decisions about the policy of ………

  10. The sales manager reports to the ……….

Task 2.9 In the interview below a Chief Executive describes how he and his board decided whether to merge with a larger company in the same industry. Read the interview point out statements for and against it.


A merger of equals had a lot of appeal. If you combine the Number 1 and Number 2 players in an industry, by definition you're Number 1 in terms of size. And when you are growing that fast, you have a number of key management openings you have to fill. By combining two companies with good management teams, you automatically build up the strength of your management and you do it quickly. You can also widen your customer base and have more distribution channels.

In addition, the merger automatically makes your remaining competition second level. As a result, your competition must rethink its strategy. In the end, you force a period of mergers and acquisitions on your competition. They have no choice but to respond to the changes you initiated.

When we looked more closely, our concerns were raised. For example, percent of large-scale mergers fail. Mergers can fail on a number of levels. They can fail in terms of their benefit to the shareholders, customers, employees and business partners. A decision has to be right with each of those groups, or we would not go forward with it.

If you merge two companies that are growing at percent rates, you stand a very good chance of stopping both of them. That's a fact. For a period of time, no matter how smoothly they operate, you lose momentum.

Our industry is not like the banking industry, where you are acquiring branch banks and customers. In our industry, you are acquiring people. And if you don't keep those people, you have made a terrible, terrible investment. We pay between $500,000 and $2 million per person in an acquisition. So you can understand that if you don't keep the people, you've done a tremendous disservice to your shareholders. So we focus first on the people and how we incorporate them into our company, and then we focus on how to drive the business.

From Today leaders, Joel Kurtzman


Task 2.10 Complete this letter to shareholders. Use appropriate forms of these verbs.


rely on

advise on

spend on

compete with

combine with

succeed in

account for

invest in

consist of

budget for






Dear Shareholder,


I write to inform you that the Board has received information of a takeover bid for your company. This ……….an attempt by Porto Presto Co. to acquire a controlling interest by offering to purchase shares at a price of 650 pence. We have brought in a team of consultants to……… the tactics we should use to resist the bid.
Although the offer seems attractive, it does not reflect the true value of the company or take into account our future prospects. We have ………a major programme of expansion. During the next two years we plan to………. new plant and equipment. We have also allocated funds to……… a new computerised stock control system which will allow us to……… our much larger rivals. Furthermore, we plan to……… a machine tool company in a joint venture in China. We are confident this will allow the company to……… opening up new markets in Asia.
Policies like these ……… our success to date and contribute to our vision of the future. Therefore, we strongly advise you not to accept the offer of Porto Presto Co.
You can ………the Board to keep you fully informed of any future developments, but for the present we advise you to take no action in relation to the offer.
Yours sincerely

Darcy Shwimmer



Chairman
Task 2.11 Write a letter to your partner about a forthcoming merger of your company with another one and about the current situation in the branches of your company abroad.
Task 2.12 Using the brief descriptions, match the type of business organisation to each paragraph.

  1. subsidiary

  1. licensing agreement

  1. partnership

  1. Export Trading Company

  1. sole trader

  1. joint venture

  1. multinational corporation

  1. private limited company

  1. holding

  1. public limited company

  1. associated company

  1. head office

  1. franchise










  1. A ... is a private individual who runs a one-man business. Не/She takes all the profits but also all the risks.

  2. There are different kinds of... but they are all associations of two or more people sharing the risks and the profits in agreed proportions.

  3. A ... (Ltd.Co.) cannot offer its shares or debentures to the general public. Nor can shares be transferred between members without the consent of the other shareholders.

  4. A ... (plc) must have a minimum nominal share capital of $50,000. Shares can be freely bought and sold by members of the public.

  5. A ... or parent company owns more than half the share capital of another company which is known as a ....

  6. A ... is an agreement by which a franchisor gives another person or company (the franchisee) the right to sell goods or services using the franchisor's name and/or general business approach in return for a royalty.

  7. Under a... one firm allows another to exploit its intellectual property (e.g. a patent) in return for a royalty. This agreement provides an opportunity to benefit from R & D already carried out and to test a foreign market without a major capital outlay or management effort.

  8. A... involves the pooling of resources of two or more companies in a common undertaking in which each party contributes assets and shares risks. It is not necessary for the partners to have an equal stake. The type of contribution varies and many consist of funds, technological skills, plant and machinery or labour.

  9. A ... (MNC) is a firm which owns or controls production or services outside the country in which it is based. Examples include Exxon (USA), IRI (Italy), Unilever (The Netherlands/GB), Nestle (Switzerland) and Nissan (Japan).

  10. An ... is the American equivalent of the Japanese Sogoshosha. It consists of a consortium of firms which enables overseas buyers to purchase US goods without too many complicated procedures. The EximBank guarantees payments to American exporters who trade in this way.

  11. A company of which at least 20% and not more than 50% of the ordinary shares is held by another company is known....

  12. A ... is the controlling centre of an organisation.

Task 2.13 Make up dialogues following these specific situations and use set phrases you know.




  1. Discuss a merger of two car manufacturing companies, the advantages and disadvantages of the possible merger.

  2. Discuss consequences of a possible take-over of your company by another one.

  3. Discuss a demerger of a large electronic company.

  4. Discuss the establishing of the Kazakhstani-American joint-venture to produce petroleum.

3 Talking about company
Task 3.1 Listen to the presentation and fill in the chart

Name

Position

Company type

Location of the company

Number of employees

Clients

Annual turnover

Task 3.2 Explaining company structure

a) Look at the FUJITSU company structure















Picture 1
b) ICL is a subsidiary of FUJITSU

FUJITSU is the parent company of ICL.




The group

Consists of

Is made up of

Is divided into

Operates in



Twenty-nine companies

Three divisions

Six target markets

Task 3.3 Listen. Shigeru Kanamori and some colleagues from Japan are attending a presentation of ICL. A senior executive is talking about how the company is organized. Listen and complete the chart.













Picture 2

Task 3.4 Fill in the spaces using the words below.


Divided into

Manufactures

Division

Retail

Subsidiary

Employs

ICL is a …… of Fujitsu, which is an 82% shareholder in the company. The company …… a total of 24,000 people. ICL group consists of twenty-nine autonomous companies. Each company has its own Managing Director. The group is …… three divisions. The first is Industry Systems. This division produces business solutions (software) for ICL’s customers. The second is Technology, which …… computers and components. The third …… is Services, which sells computer services, like maintenance and training.

ICL operates in six different target markets: ……- that’s shops, healthcare: manufacturing, and travel and transport.
Task 3.5 Listen and add missed information


1 We're probably the best-known computer company in the world... We're making some big organizational changes, and we have great hopes for the future.


    1. We have a reputation for high quality. At present, 77% of our earnings come from our automobile division and 14% from motorcycles. Our 750 cc motorcycles are especially popular.




    1. We produce the world's leading ballpoint pen, and we also manufacture disposable pencils, disposable lighters, and disposable razors.




    1. We produce and market metal products and industrial and construction machinery. We're also expanding in other areas such as electronics, robotics, information systems, and land development.




    1. We manufacture cars, buses, and trucks, as well as engines and components. We have major production bases in the United States, Great Britain and Thailand,




    1. Clothing stores worldwide. We're expanding our sporting goods lines, and now produce tennis rackets, skis, hiking boots, roller skates, and sunglasses.



Task 3.6 Make a short presentation of your company on these basic points




Name

Position


Company

Sphere


Location of the company

Subsidiaries

Number of employees

Clients


Annual turnover

Task 3.7 Listen to the texts and find the answer




  1. Name types of directors and managers

  2. Name types of secretaries and their duties

Task 3.8 Read the text and build the hierarchy



register - тізім, жазу журналы

a notice – хабарлама

an implication - зардап, мағына

an argument - дәлел


a humanitarian- гуманист,

имандылықшы

a visionary - сәуегей



The British Company Management
The management of the company is called the Board of Directors (not Managers) headed by the Chairman (- the President /Am./). There is usually a Managing Director and in the case of big companies there may be several Joint Managing Directors.

A Manager in British companies is the person who is head of a department - Sales, Export, Works (Production), Staff, etc. So there are Sales Managers, Export Managers, Works (Production) Managers, Staff Managers, etc.

A General Manager has managers, working under his control, and receives his instructions form the Managing Director.

By British Company Law (the Companies Acts of 1948 and 1985) a limited company (public or private) must have a Company Secretary whose duties are plenty. First he is the clerk to the Directors: he is to keep Registers of Directors and Members, arrange for proceedings at directors and shareholders' meetings, prepare notices for the calling of these meetings, attend them and advise directors at board meetings on the legal, accounting and tax implications of any proposed business move as well as write minutes and reports (the minutes of a meeting are usually concise records of resolutions or decisions reached, and the reports are more extensive and give details of desiccations, arguments for or against the resolutions, and so on.) Second he represents his company and, in this capacity he supervises the working of the staff and the maintenance or start records (If there is no special staff manager), he is often finally responsible for the accounting and handling of contracts. Thus he is the link between the company and the members, between the company and the staff and between the company and the public.

The Company Secretary must be a properly qualified person, and to be able to fulfil his routine duties well he is supposed to have training in company law, accountancy and many other subjects. He is expected to be part-lawyer, part-economist, part-administrator and part-accountant.

But it taken a good deal more than professional qualifications to make a good company secretary: "he must be businessman and humanitarian, lawyer and visionary" (as one of the English newspapers put it).

the Board of Directors - директорлар кеңесі

the Chairman - төраға (ер), төрайым (әйел)

the Managing Director - өкімші-директор

a Sales Manager - сату бөлімінің меңгерушісі

an Export Manager - экспорттық бөлімінің меңгерушісі

a Production Manager - өндірістік меңгерушісі

a Staff Manager - кадр бөлімінің меңгерушісі

a General Manager - бас басқарушысы



the Company Secretary - коммпанияның хатшысы
Task 3.9 Match the definitions and the names of a company departments

1

Catering



produces goods

2

Dispatch and Distributions



monitors company products, tries to improve their quality

3

Customers Services



provides meals

4

Finance



deal with after-sales service and complaints

5

Health and Safety



sells goods, contacts customers, deals with inquiries about products

6

Maintenance



checks equipment regularly, carries out reports

7

Marketing



makes sure that products are widely known, finds out customers’ needs

8

Personnel



protects staff and property against crime

9

PR (Public Relations)



deals with telephone calls in and out of the company

10

Production



deals with money coming in and going out of the company

11

R & D (Research

and Development)



develops new products and new ideas

12

Reception



deals with visitors, takes messages

13

Quality control



sends goods out to customers

14

Sales



checks for dangers at work, monitors health

15

Security



deals with training, recruitment, staff problems

16

Switchboard



talks to journalists, presents the company to the public

Task 3.10

    1. Here are some terms used in a job titles

Head of Marketing

Deputy

Head of Sales

Catering Supervisor

Security Officer

Receptionist

Quality Control Inspector

Switchboard Operator

Sales Representative

Maintenance Engineer

b) Read the notes about the jobs of different people in a company. Talk to a partner about each person. Describe his/her job, using the words in brackets IN A SUITABLE form. Guess his/her occupation.


In charge of

Responsible for

Look after

Deals with



Involve

Concerned with

Make sure that

Monitor


Organize

Arrange


Liaise with

For example: LUC BERTRAND


Payments to staff

Money required for trip

Checking expenses claims, issuing cheques

Amount paid out for expenses



(concerned with)

(deal with)

(responsible)

(monitor)



?

Luc Bertrand is connected with payments to staff. He deals with the money required for trips. He is responsible for checking expenses and issuing checks. He monitors amounts paid out for expenses – He is a chief accountant


1 Mary Murray

company canteen

food supplies, staff rotas, meals

food preparation and service

canteen operates efficiently

(in charge of)

(organize)

(monitor)

(make sure)


?

?

2 Larry Hersch

customers’ complaints

complaints are dealt with quicker

checking the complaints are valid

Production manager

Write a report on any complaint


(deal with)

(make sure)

(job –involve)

(liaise with)

(have to)



3 Irene Theodorakis

visitors arriving at front desk

all visitors sign in on arrival

taxi and bus transport for visitors

messages left for staff members

security and switchboard staff


(look after)

(make sure)

(arrange)

(deal with)

(liaise with)



?

?

4 George Fenn

preventing crime within the building

checking means of access to the building

test burglar alarm regularly

people entering/leaving the building

doors and windows are locked after hours

distribution of keys

security patrols at night/weekends


(responsible )

(job –involve)

(have to)

(monitor)

(make sure)

(deal with)

(organize)



5 Charles Butros

health and safety of every employee

make record of every accident

accident rate in the firm

inspecting machines and equipment

training in safety and first aid

talks on safety

(responsible)

(have to)

(monitor)

(job – involve)

(organize)

(arrange)


?

Task 3.11 Complete the organization chart from the information provided. Two examples have been done for you. (Note that there are various ways constructing an organization chart. This is one of the most usual.)
The Managing Director (sometimes called the Chief Executive or President in the USA) is the head of the company.

The company is run by a Board of Directors; each Director is in charge of a department. However, the Chairman of the Board is in overall control and may not be the head of any one department.

Most companies have Finance, Sales, Marketing (sometimes part of Sales), Production, Research and Development (R & D) and Personnel Departments. These are the most common departments, but some companies have others as well.

Most departments have a Manager, who is in charge of its day-to-day running, and who reports to the Director; the Director is responsible for strategic planning and for making decisions.

Various personnel in each department report to the Manager, One example, present in almost all companies, is the Sales Representative, who reports to the Sales Manager.


Picture 3

Task 3.12 Below you may see a chart showing the way in which company may be organize. Find the correct word of gaps




Accountant

Board

Mail

Market

Administration

Head

Manager

Recruitment

Advertising

Innovation

Personnel

Salaries

Control

Managing

Processing

Stock



Picture 4
Task 3.13 This exercise is concerned with describing corporate organisation. Look at the chart below which shows the structure of the DSA Corporation. Then complete the paragraph which follows, using the correct form of the words in the box.

DSA Corporation (New York)




Civil Engineering


Building Materials


Construction




KAF Inc.

Halcon

Road Co

Conway

Picture 5


The DSA Corporation consists of three ... , Building Materials, Construction and Civil Engineering. DSA... New York and comprises four ..., KAF Inc., Halcon, Conway and RoadCo. Each of these is ... a Senior Vice-president who ... the ... .



subsidiary

report to

be headed by

division

be based in

parent company

Task 3.14 This exercise is concerned with describing management hierarchy. The illustration below shows the organization of КAF Inc. Study the organization chart, then complete the paragraph, using the correct form of an appropriate word or phrase from the box.



Chief Executive Officer


Board of Directors





Vice-President Finance


Vice-President Human Resources


Vice-President

Sales & Marketing

Vice-President Production





1 Director


2 Directors



3 Directors

3 Directors

Exports

Domestic Sales

Picture 6


be responsible for

be in charge of

be supported by

be accountable to

consist of

be headed by

support





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