The Concept of Business

 

IV. Answer these questions using the active vocabulary of the text.

 

1. Why is the name of Adam Smith remembered?
2. What technique was he responsible for introducing?
3. Why was Britain the richest country in the world in the nineteenth century?
4. What do you understand by the term «robotic production lines»?
5. Why do you think some jobs might be boring?
6. How can we blame Adam Smith for our present overcrowded towns?
7. How does large-scale production cause unemployment?

8. “We owe Adam Smith a great deal”. Do you agree? What are your views?

 

5. Read the text Part 2 and underline advantages and disadvantages for the manufacturer with regard to each method of production.

 

There are three main types of production method:

Job production

In this type of production specific work is carried out for individual customers. Job production is of the one off variety and can range from a bride's wedding dress to an ocean-going liner. Job production is usually labor intensive and requires the employment of skilled labor which is able to interpret technical instructions. If supervisors are employed they will need to be technically competent. Unit costs will always tend to be high when small numbers of individually designed items are produced.

Mass production

This method of production is possible where the demand for a product is so great that the goods can be produced in a continuous flow. Motor vehicles and food processing are among the industries which resort to mass production techniques. Once set up the production lines are not easily changed and advertising is often necessary to ensure that stocks of finished goods do not pile up in the factory. Unskilled and semi-skilled workers can be used, though the modern tendency is to use computerized robots. By using these capital-intensive methods unit costs may be substantially reduced and higher output can be obtained by running the expensive machines over two or three shifts per day.

Batch production

This method falls between job and mass production. It could be described as repeated production runs in contrast to the continuous flow or mass production technique. The orders consist of a significant number of similar items. One industry which uses this technique is the furniture industry. A batch of teak tables of a particular design will be produced and followed perhaps by a batch of mahogany tables. Book printers also use this technique. Runs of books will depend on the size of the market, but the printers switch from the production of one book to the production of another at the end of each run.

Both labor and machines have to be more versatile than in the case of mass production, but less so than in the case of job production. The production manager will have to attempt to organize the runs so that they are as economically viable as possible, but the unit costs will tend to fall as the length of the run increases.

 

VI. Read the texts again and decide whether these statements are true (T) or

false (F).

 

1. Over three hundred years ago, Adam Smith introduced some ideas which were to bring about a world revolution.

2. Smith convinced the world that globalization could solve the problems of poverty and want.

3. Unit costs will always tend to be low when large numbers of individually designed items are produced.

4. Advertising is often necessary to ensure that stocks of finished goods do not pile up in the factory.

5. Higher output can be obtained by running the cheap machines over two or three shifts per day.

6. The orders consist of a significant number of similar items in mass production.

7. Both labour and machines have to be more versatile than in the case of mass production, but less so than in the case of job production.

 

VII. Find Russian equivalents to the following phrases in the second column.

 

1. standard of living 2. give an occasional vote 3. be responsible for 4. solve the problems 5. the order of the day 6. carry out 7. unit cost 8. demand for 9. resort to 10. unskilled and semi-skilled 11. capital-intensive 12.shift per day 13. production run 14. trail of misery 15. spider's web 16.draw attention to

a)след нищеты b) уровень жизни c)партия (изделий) d)смена в cутки e) капиталоёмкий f) отдать случайный голос g) паутина h) решать проблемы i) спрос на j) квалифицированные и полуквалифицированные k) быть ответственным за что-либо l) прибегнуть m) что-л. обычное, повседневное; что-л. важное в данное время n) цена на единицу продукции о) обратить внимание на p) выполнять, осуществлять

 

VIII. Translate the following sentences using the active vocabulary from the texts.

 

1.Высокий  уровень жизни в обществе существует  благодаря достижениям в области  науки и техники.

2.Он обратил  внимание на ежедневную работу  рабочих.

3.Начальник  по производству ответственен  за организацию производственного процесса.

4. Цена единицы  товара поднимается с увеличением  спроса на нее.

5.Мы прибегли  к вынужденным мерам.

6.Иметь мобильный  телефон сегодня обычное дело.

 

IX. Make an outline of the texts consisting of 5-8 sentences.

 

X. Retell the texts according to its outline.

 

6. Marketing

 

1. Go through the following vocabulary notes to avoid difficulties in understanding and find these words in the text.

 

storage	сохранение	competitor	конкурент
complex	комплексный	charge	запрашивать цену
objective	цель	average	средний
vital	жизненный	wholesaler	оптовый торговец
failure	неудача	retailer	розничный торговец
potential	возможный	promotion	продвижение товара на рынок

 

2. Match the words in the left column with the definitions in the right column.

 

1. product 2. placement 3. price 4. promotion 5. manufacturer 6. wholesaler 7. retailer 8. customer

a) the process of getting the product to the customer through the channels of distribution. b) the communication between buyer and seller c) the sum in money or goods for which anything is or may be bought or sold d) something produced by effort e) a person who sells to final consumers in smaller quantities f) a person who sells goods in larger quantities g)a person who buys goods h)a person who produces goods

 

3. Read the text and say what four P's imply.

 

Buying, selling, market research, transportation, storage, advertising - these are all parts of the complex area of business known as marketing. In simple terms, marketing means the movement of goods and services from a manufacturer to a customer in order to satisfy the customer and to achieve the company's objectives.

Marketing can be divided into four main elements that are popularly known as the four P's: product, price, placement and promotion. Each one plays a vital role in the success or failure of the marketing operation.

The product element of marketing refers to the goods or service that a company wants to sell. This often involves research and development (R&D) of a new product, research of the potential market, testing of the product to insure quality, and then introduction to the market.

A company next considers the price to charge for its product. There are three pricing options the company may take: above, with, or below the prices that its competitors are charging. For example, if the average price of a pair of women's leather shoes is $27, a company that charges $23 has priced below the market; a company that charges $27 has priced with the market; and a company that charges $33 has priced above the market. Most companies price with the market and sell their goods and services for average prices established by major producers in the industry. The producers who establish these prices are known as price leaders.

The third element of the marketing process - placement - involves getting the product to the customer through the channels of distribution. A common channel of distribution is: manufacturer – wholesaler – retailer – customer.

Wholesalers generally sell large quantities of products to a retailer and retailers usually sell smaller quantities to customers.

Finally, communication about the product takes place between buyer and seller. This communication between buyer and seller is known as promotion. There are different ways of promotion: personal selling, in a department store; through a newspaper or magazine and Internet.

The four elements of marketing – product, place, price and promotion work together to develop a successful marketing operation.

 

IV. Answer these questions using the active vocabulary of the text.

 

1. What are the parts of marketing?
2. What are the objectives of marketing?
3. What are the vital elements of marketing?
4. What does each element of marketing refer to?
5. What are the channels of distribution?
6. What three pricing options may the company take?
7. What helps to develop a successful marketing operation?

 

V. Read the text again and decide whether these statements are true (T) or

false (F).

 

1. Buying, selling, market research, transportation, storage, advertising means marketing.

2. The four P's are product, price, placement and people.

3. The product element of marketing refers just to the introduction of this product to the market.

4. Three pricing options exist above, with, or below the prices.

5. Placement involves getting the product to the customer through the channels of diversification.

6. The communication between wholesaler and seller is known as promotion.

 

VI. Find Russian equivalents to the following phrases in the second column.

 

1.market research 2.in simple terms 3.achieve the objectives 4.marketing operation 5.research and development 6.charge for 7.establish the prices 8.price leaders 9.major producers 10.channels of distribution

a)главные производители b) лидеры цен c)каналы распределения d) назначать цену e) достигнуть целей f) проще говоря g) рыночная деятельность h) исследование рынка i)научно- исследовательский j)устанавливать цены

 

VII. Choose the appropriate translation of the following sentences.

 

1. Each one plays a vital role in the success or failure of the marketing operation.

a) Каждый играет жизненную роль в успехе или неудаче операции маркетинга.

b) Каждый выполняет важную роль в успехе или провале маркетинговой деятельности.

2. A company next considers the price to charge for its product.

a) Компания затем полагает, что цена заряжаетcя для ее изделия.

b) Затем компания рассматривает, какую цену установить на свою продукцию.

3. Most companies price with the market and sell their goods and services for average prices established by major producers in the industry.

a) У большинства компаний цены с рынком и продает их товары и услуги за средние цены, установленные главными производителями в промышленности.

b) Большинство компаний устанавливают цены согласно условиям рынка, и продают свои товары и услуги по средним ценам, установленным ведущими производителями данного вида промышленности.

4. Wholesalers generally sell large quantities of a product to a retailer and retailers usually sell smaller quantities to customers.

a) Оптовые торговцы вообще продают большие количества изделия розничному продавцу, и розничные продавцы обычно продают меньшие количества клиентам.

b) Оптовые торговцы, главным образом, продают товар розничному продавцу в большем количестве, а розничные продавцы обычно продают его клиентам в меньшем количестве.

 

8. Make an outline of the text consisting of 5-8 sentences.

 

9. Retell the text according to its outline.
 

VIII. Advertising

 

1. Go through the following vocabulary notes to avoid difficulties in understanding and find these words in the text.

 

mastery	мастерство	engage	нанимать, быть занятым
promote	способствовать продвижению  товаров	inferior	низкого качества
at a discount	со скидкой	distribution	раздача, распределение
free of charge	бесплатный	advertisement	реклама
sample	образец	enclose	прилагать, вкладывать
mail	посылать почтой	commercials	рекламные передачи
trap	ловушкa	persistent	настойчивый
pool	объединять капиталы	gullible	легковерный

 

II. Match the words in the left column with the definitions in the right column.

 

1. advertising 2. discount 3. distribution 4. credit 5. commercials

a) the process of physically satisfying the demand for goods and services; b) a commercially sponsored advertisement on radio or television; c) the promotion of goods or services for sale through impersonal media, such as radio or television; d) the practice of permitting a buyer to receive goods or services before payment; e) a deduction from the full amount of a price.

 

III. Read the text and say who made America great.

 

One can buy anything in America, but it takes a great deal of mastery to sell anything there. Millions of people are engaged in promoting products (goods and services). There are millions of methods to do it. The most primitive one is to deliver goods to a shop and then wait until it is sold out. In this case the main task is to get people into the shop and make them interested in what you offer.

To attract customers, some shops organize regular sales at discount prices. This does not mean that the goods sold at a discount are of an inferior quality.