Business organization

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During the life every person is more or less connected with various organizations; there is no organization without people, there no people which are not connected with an organization. Here we will speak about a business organization (a commercial enterprise), exercising the function of managing production, distribution and sale of goods and services for the buyers’ benefit and sellers’ profit. If a group of people wants to form of an organization, they should consider the following conditions: a) presence of at least two persons; b) presence of at least one general goal; c) presence of a team of members who have intention to work together in order to achieve this general goal.

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    1.Communication skills – speaks clearly and with impact( influence);

    2. Social confidence – is perceived to enjoy the company of a wide range of people.

    Thinking skills:

    1.Analytical thinking – analyses large amounts of complex data, extracts essentials;

    2. Proactive thinking –comes forward with ideas unprompted by clients.

    While in operation, a company should be able to analyze its customers, competitors, changes if the environment it acts in, and to control its activities by answering the questions: What impedes (prevents) the profitability increase? After that it can define its corporate strategy.

    Only then a company faces its business success. Developing spiral, success attracts the new success, like a magnet.

    The company’s success depends on how all its strategies match its corporate mission. In turn, it is extremely important for the top management to have a clear understanding of corporate mission in order to create a basis for formulating corporate strategy.

    The most important task of top management is to motivate the personnel, instill self-confidence in staff, and make guiding line turn into accessible objectives.

        Answer the questions to Unit 2

    1. What is meant by the mini-strategy and vision?

    2. What’s special about mission and why is it so vital?

        3. Why are your company’s objectives so important?

    4. What are the strategic priorities?

    5. What can be considered as a bridge between the strategy and practice?

    6. Why is it difficult for company to do the strategic choice?

    7.  In what way can a company achieve its goals?

    8.  Why is it important to watch over a company image?

    9.  What is meant by “a spin of success”?

    10. What competences are essential for a manager to be a success?

 

    Vocabulary to Unit 2

    1. avoid v избегать, остерегаться, уклоняться.  Syn: escape, evade.

    2.  common purpose  общая цель

    3.  bridge n  мост                         

    4. destiny n судьба, предназначение

    5. in course of time   в ходе времени; по прошествии времени

    6. vision statement заявление о мировоззренческой концепции компании

    7. inspiration n 1) вдохновляющая идея; 2) влияние, воздействие

    8. framework n 1) структура, строение; 2) система взглядов, рамки

        With the framework of smth – в рамках, в пределах чего-л.

    9. apply v  применять, использовать, употреблять (to)

    10. articulate v  ясно выражать, излагать, формулировать

    11. guru n учитель, наставник, ведущий специалист

    12. intention n  намерение

    13. key-mission n  основная миссия

    14. set the direction определять направление развития, цель

    15. level of demand 1) уровень требования; 2) уровень спроса

    16. craft ( a vision) проявить мастерство  в определении  концепции компании

    17. dare v 1)осмеливаться, сметь; 2)пренебрегать опасностью, рисковать; 3) бросать вызов кому-л.

    18. capture n захват, поглощение

         capture v захватить силой, завладеть. e.g. to capture the attention привлечь внимание

    19. passion n  здесь:  пыл, энтузиазм

    20. destination n предназначение, назначение, цель

    21. acquaint (with) 1) знакомить; 2) извещать, информировать.

    22. expenditure n расходы, издержки, траты

    23. target n  цель

    24.elaborate v 1)детально разрабатывать,2) конкретизировать, развивать, уточнять

    25. survival n выживание, долговечность

    26. forecast n предсказание, прогноз, прогнозирование

    27. preference n предпочтение, преимущество

    28. intention n намерение

    29. permanent  adj. постоянный, долговременный

    30. priorities  n, pl   приоритеты

            31. productive capacity            - производственная мощность

    32. expenditure n затраты, издержки, расходы

    33. standard of living  уровень жизни

    34 accomplish goals  достичь целей

    35.with regard to  в отношении чего-либо, касательно

    36. be a useful tool   быть полезным орудием, инструментом

    37. concrete adj. конкретный, определенный

    38. measurable  adj.   измеримый, умеренный, не особенно большой

    39. accessible  adj. доступный, понятный, достижимый, поддающийся

    40. be common  adj. быть общепринятым, распространенным

    41. evidently adv. несомненно, явно, очевидно  

    42. be innovative   проявлять новаторские качества

    43. be obligatory  быть обязательным

    44. diversity of objectives многообразие целей, устремлений

    45 official confirmation  официальное подтверждение

    46. match the goal   соответствовать цели

    47. compatibility  совместимость, сочетаемость

    48. set the mind  решиться  сделать что-либо

    49. official confirmation официальное подтверждение

    50. compatibility   n совместимость, сочетаемость

    51. foresight n предвидение, дальновидность, предусмотрительность

    52. figurative  adj. образный, символический, фигуральный

    53. corporate identity  отличительная черта, своеобразие, лицо компании

    54. perceive v воспринимать, осознавать, постигать. Syn: realize, become aware

    55. proactive thinking упреждающее мышление

             

 

    Unit 3.Organization environment, resources and business activity

    Text 1. Types of environment

     No one existing organization can ignore the influence of the environment. A company is not an isolated economic unit which operates in the general economic system; the components of external and internal environment affect it. This influence one cannot overestimate. The firm lies at the heart of economics; there is a close interaction between the business system (a firm) and various factors (e.g., environmental components). These aspects are vital for the success and dynamic development; to create the efficient marketing offerings (in product and service) and efficient control a company should take them into account. In fact, any company’s activity is dependant on the external environmental factors; the most important of them are as follows: 

    Economics, Politics, Market, Technology, Social factor, International factor. Law and Nature.

    There are two types of the external environment, which impact any company’s activity: direct-action environment and indirect-action environment

    Direct-action environment: suppliers, consumers, unions, competitors.  The direct-action environment represents the immediate firm’s environment and impacts its activities. The business environment and company’s activities interact and adapt one for another.

    Indirect-action environment: law and government factors, economic conditions, political factors technology, socio-cultural factors, international factors.

    The external environment is very complex, and it is the task of company management to take it into account and react to it. The external environment has its features: volatility; uncertainty; interrelatedness; complexity.

    In fact, in today’s market, any company has to deal with the inflation, competitors, public values, government policy etc.

    The internal environment of an organization bears a relation to the structure, objectives, business processes, technology and people.

    Actually, a company produces goods and services, organizes sales and gets the profit. In other words, it realizes the aims of its activity by taking a responsible attitude towards the environmental changes. It is an important area for study and management because of problems all firms face in their activities.

    The team of executives should take the both: the external and internal environment factors into consideration.

    Moreover, the changes in the environment must lead to changes in a company

     strategy, if a company wants to achieve its objectives and survive.

    Text 2.  Company resources and activities.

    Generally, every company can be defined by variety of aspects:

    - Name of a company.

    - Type of proprietorship.

    - Year of foundation.

    - Years in business.

    - Headquarters.

    - Core product/service.

    - Growth rate.

    - Workforce.

    - Turnover.

    - Current and future projects.

    Some firms include in a company description as well their pre-tax profits, market share, target market, strengths and weaknesses, opportunities and threats, image and business strategy, management style, recent and future developments.

    However briefly, a company can present the information about its:

    - Location

    - MOS (mission, objectives, strategic priorities).

    - Business strategy

    - Business activity

    - Markets

    - Product range

    - Turnover

    - Workforce

    Some managers consider an organization to be like a triangle.

           Production  

    Money                                                                Personnel

    In fact, the basic components of any organization are:

    - people that work for an organization;

    - objectives that an organization has to achieve;

    - management that enforces the personnel to achieve these objectives.

 

    No doubt, an organization is, first of all, a social institute. The key role of its management is the mobilization of all resources for achievement of basic objectives, effective adaptation to the environmental changes, and decision-making.

    Any organization has the following resources at its disposal: human; material; energy; financial; informational; technological; time.

    All these resources ensure its stable work. The main aspect here is the human one, it provides creativity, produces economic results, and is inexhaustible. The process of management should be focused on mobilization of all resources that could lead to the optimum result with minimum costs.

    Before developing its strategy, a company should consider all its strong and weak points, pool all corporate resources, which enlarge or limit its spectrum of possibilities.

    The effective strategy ensures the best correlation between the market conditions and company resources.

    In fact, any organization is known to create value for their clients through the sphere of its activities. The value can be calculated according to the number of buyers, willing to pay for a company’s product. Actually, a firm starts to organize its entire value chain by managing its activities, and finally, gains the competitive advantage. The firm’s value chain is closely connected with the whole value system.

    Supplier Value Chains – Firm Value Chains – Channel Value chains – Buyer Value Chains.

    There are many points of interaction between all there links that represent the independent activities.

    Answer the questions to Unit 3

    1.  What are the external environmental aspects?

    2. Can you name the factors of direct and indirect-action environment?

    3. What is meant by a business environment?

    4. Why can no one existing firm ignore the influence of the environment?

    5. In what way can a company take the environment aspects in account?

    6. What factors constitute the base for threats and opportunities?

    7. What are the aims of a company activity?

    8. Why a protection of environment so important for a company?

    10.Why the protection of the environment vital for the future generations?

    11. What are your company’s activities?

    12. What kind of resources does any company use?

    13. What points should a company take into account before developing its strategy?

    14. What are the resources, which enlarge company possibilities?

    15. Which of resources can limit a spectrum of possibilities?

    16. What is a value chain?

    17. Do you agree that the most important component of every firm is its personnel?

    Vocabulary to Unit 3

    1. environment n окружающая среда

    2. external  adj. внешний

    3. overestimate v переоценивать, давать слишком высокую оценку

    4. be vital быть жизненно важным, существенным,

    5. offering  n  предложение (в том числе на продажу)

    6. take into account учитывать, принимать во внимание

    7. dependent adj. обусловленный, зависящий ( от обстоятельств)

    8.depend (on, upon) v 1)зависеть, находиться в зависимости от;

    2) положиться (на  кого-л.), рассчитывать (на кого-л., что-л.)

    9. law n закон, правопорядок

    10. nature n природа

    11. direct –action  прямые, решительные действия

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