UNIT 1 COMPANIES ‘Be not afraid of growing slowly; be afraid only of standing still.’ Chinese proverb INTRODUCTION Translate into English the following text Las multinacionales son las empresas más visibles. Pero el tejido de la mayor parte de las economías nacionales se compone de organizaciones mucho más pequeñas. Muchos países deben gran parte de su prosperidad a las PYMEs (pequeñas y medianas empresas). Multinationals are the most visible of companies. But the tissue of most national economies is made up of much smaller organisations. Many countries owe much of their prosperity to SMEs (small and medium-sized enterprises). Luego están los empresarios autónomos, negocios de un solo hombre o de una sola mujer. En el mundo profesional, son a menudo personas que han dejado (o se han visto forzados a dejar) grandes organizaciones y que se han establecido por su cuenta, con la experiencia que han adquirido en ellas. And then there are the sole traders, one-man or one-woman businesses. In the professional world, they are often people who have left (or been forced to leave) large organisations and who have set up on their own, taking the expertise they have gained with them. Pero en cada caso el principio es el mismo: sobrevivir – el dinero que entra tiene que ser más que el dinero que sale. Las empresas con accionistas buscan más que sobrevivir – quieren rendimiento para la inversión. Las buenacciones de una empresa suben o bajan en relación a cómo ven los inversores la futura rentabilidad de la empresa. But in every case the principle is the same: to survive - the money coming in has to be more than the money going out. Companies with shareholders are looking for more than survival - they want return on investment. Shares in the company rise and fall in relation to how investors see the future profitability of the company. 1. How many collocations with the word ‘company’ can you find? family-owned multinational small medium-sized profitable failing bankrupt work for a stay with a change company 1 Inglés para el Ámbito Comercial I (Unit 1) Quotation Ask the class if it is better to grow slowly or quickly, which may bring them on to well-known fast growing companies. DIFFERENT COMPANY ORGANIZATIONS 2. Watch the video “Types of business organizations” and answer the following questions a) What types or firms are mentioned? Sole Traders, Partnerships, Limited Co and plcs b) Why did Tony decide to set up his own company? Because he was made redundant c) Which modality of company did he choose? He decided to be a sole trader d) What advantages does Tony have by being part of the Hopewell Business Centre?? The Centre can help him with financial and legal advice and all worries involved e) Tony says that he ‘didn’t want the hassle’. What does he mean exactly? He means he doesn’t want to have to deal with any problems. Partnership a) What’s Mr Skinner’s job? He is a solicitor and he works for Winch and Winch. He tries to help people having legal problems b) How often does he visit the Centre? Quite regularly c) Does he get a lot of money from the advice? No it’s free of charge. He just try to help them out. El d) Where is Winch and Winch based? In Rochester e) Are partners allowed to work together as a company? No, they have to work independently f) According to Mr Huggins, what’s the main advantage of partnerships? You have colleagues on whom you can rely and with whom you share problems g) … and the disadvantage? You cannot limit your personal liability. In case of “trouble” partners are liable for the full of their assets. h) What’s a Partnership Agreement? It regulates the relationship between the partners, their capital, profits and losses, duties, disagreements Limited Liability Company Fountain Workshop is another company of Hopewell Centre. It’s a Limited Liability Company. a) What is the advantage of a Limited Liability Co, according to the MD of Fountain Workshop? The directors have a limited liability. In case of trouble they will not respond with their full personal assets b) Over which turnover a Limited Co has to file accounts? £ 350,000 m 2 Inglés para el Ámbito Comercial I (Unit 1) c) Ian Kirkpatrick speaks about the directors ‘having legal obligations towards the company’. What legal obligations could these be? A Managing Director has an obligation to manage the day-to-day affairs of the company properly and correctly. Public Limited Company Nicole Foulston, Chief Executive of Brands Hatch Leisure PLC talks about her company. What’s the company main activity? a) Promote and organize motor sports events She says, “The company is listed in the Stock Exchange of the UK”. What does it means? b) That the shares are quoted on SE market What’s the main advantage of a plc company? c) They can raise money more easily and efficiently by issuing shares Nicola Foulston mentions ‘raising money more easily and more efficiently as a PLC’. Why would a company like hers want to do this? d) A company like Brands Hatch Leisure needs to expand its business by offering new events and to do this it needs to raise capital. 3. Discuss these questions. 1 Which of the words below can describe: a) b) good qualities of an organisation? bad qualities of an organisation? professional impersonal cold caring disciplined democratic decentralised paternal hierarchical welcoming centralised slow-to-respond flat market-driven bureaucratic There are no 'correct' answers here, but you would expect the following to be listed under good: professional, democratic, caring, disciplined, welcoming, market-driven. You would expect the following to be listed under bad: cold, impersonal, paternal, slow-to-respond, bureaucratic. The pairs that are left (centralised/decentralised and flat/hierarchical) are more likely to spark debate (but may not!) as they are more specific to individual companies and more sensitive to opinion than the other adjectives in the list. 2 Which words could you use to describe your own organisation or an organisation you know well? 4. Complete the sentences below with words and phrases from the box. share price subsidiary 1. 2. 3. 4. 5. 6. 7. workforce profit market share turnover head office The amount of money a company receives from sales in a particular period is called its Turnover ………………………… Profit The money a company makes after taking away its costs is its ………………………… A company which is more than 50% owned by a parent company is called a Subsidiary ………………………… Workforce The employees in a particular country or business are called the ………………………… The percentage of sales a company has in a particular market is its Market Share ………………………… Head Office The main building or location of a large organization is its ………………………… Share Price The cost of a company’s shares is its ………………………… 1. Turnover (BR English; Am Eng prefer ‘sales’. 2. profit 3. subsidiary 3 Inglés para el Ámbito Comercial I (Unit 1) 4. workforce 5. Market share 6. Head office 7. Share price COMPANY ORGANIZATION 5. Watch the video ‘A company structure’ and explain the functions of these people. ● ● ● ● Commercial director: he is responsible of maintaining the quality control system. Office manager: he is responsible of a team of financial controllers. Dispatch manager: He ensures that the goods are dispatched and delivered safely and on time to the customers. Shift overseer or supervisor: he ensures that works are produced accurately and on time by the team on his shift. 6. Look at this diagram representing the structure of a company and answer the questions below. Which group of people ● own the company? shareholders ● sell to the company? suppliers ● formulate policy? Board of Directors ● buy from the company? customers ● work for the company? staff 7. Study this organization. 4 Inglés para el Ámbito Comercial I (Unit 1) La principal diferencia entre Marketing y Advertising. MARKETING= realiza las políticas y las estrategias para que después ADVERTISING las ponga en distintas plataformas. Which department: a puts the products in boxes and crates? packaging b places ads in magazines? advertising c pays the staff? wages & salaries d purchases supplies? buying e sells the products to customers? sales f plans how to sell new products? marketing g services the machines and equipment? maintenance h arranges courses for the staff? training i recruits new employees? personnel j manufactures the products? production k invoices customers? customers’ accounts l looks after customers' problems and complaints? aftersales service m dispatches the products and sends them to customers? distribution n organizes control systems to prevent mistakes? quality o deals with taxation, investment, and cash management? financial services FINANCIAL PERFORMANCE 8. Complete the extract from a company report with appropriate words or phrases from the box. share price subsidiary workforce profit market share turnover head office I’m pleased to say the company has continued its excellent performance. We are changing, growing and doing well at a difficult time for the industry. Turnover…1 was €57.2 million, an increase of 15% on last year, and …profit…2 rose by 5% to €6.4 million. We are a highly competitive Business. We have increased our … market share…3 20%. Consequently our ...share price…4 has risen and is now at an all-time high of €9.6. Increased production and strong demand have had a positive effect on our cash flow, so we are able to finance a number of new projects. We have successfully moved to our new … head office…5 in central London. We are now planning to start full production at the recently opened Spanish …subsidiary…6 in October. Finally, thanks once again to our loyal and dedicated …workforce…7. Our employees will always be our most valuable asset. 5 Inglés para el Ámbito Comercial I (Unit 1) 9. Complete the chart below with information from the box. Then make sentences about the companies. For example, ‘Cisco Systems is an American IT company. It supplies Internet equipment’. Peugeot Benetton container ship operator American Express French Japanese Italian drug and chemical maker drinks supplier Company Cisco Systems Peugeot Bacardi Martini American Express Bayer Benetton Sony Maersk Main activity Internet equipment supplier Car manufacturer Drinks supplier Travel and financial services provider Drug and Chemical maker Clothing manufacturer Electronic goods maker Container ship operator Nationality American French Spanish American German Italian Japanese Danish ACCOUNTING 10. Watch the video “Accounting 1” and translate into Spanish the following accounting vocabulary accountant contable to debit cargar (en cuenta) accounting contabilidad to credit abonar (en cuenta) account cuenta transaction transacción account payable cuenta a pagar book-keeping contabilidad account receivable cuenta a cobrar book-keeper contable debit cargo ledger libro mayor credit abono balance saldo 11. Watch the video “Accounting 2” and translate into Spanish the following accounting vocabulary GAAP Generally Accepted Accounting Principles operating expenses gastos de explotación income ingresos non-operating expenses gastos indirectos operating income ingresos de explotación expense account cuenta de gastos non-operating income ingresos indirectos cash flow flujo de caja revenue ingresos brutos (gross income) cash flow problem problema de liquidadez profit beneficios (ingresos netos) cash flow statement estado de flujo de caja expense gastos BALANCE SHEET AND PROFIT AND LOSS ACCOUNT 12. Study the balance sheet and the profit and loss account below. Find the terms that refer to. (BO) 1. what the company owns and what it owes assets and liabilities 2. things that permanently belong to the company fixed assets 6 Inglés para el Ámbito Comercial I (Unit 1) 3. money they have to pay the bank for their loans interests payable 4. money borrowed to meet day-to-day running expenses bank overdrafts or loans 5. money supplied by shareholders share capital 6. money owed to shareholders dividend payable 7. money owed to suppliers trade creditor 8. money their customers owe them debtors 9. the company's total sales turnover 10. costs incurred in buying raw materials and producing goods cost of sales 11. expenses they've incurred but not yet received invoices for accrued expenses 12. regular expenses incurred in running the business such as rent, light, heating, salaries, and advertising expenses administration and other overheads 13. the loss in value of equipment, etc., due to use or age depreciation 14. inventory. stocks 13. The company has had a difficult year. Find evidence for these facts in the figures. Fact: Competition has been very tough. Evidence: Turnover has fallen. Facts 1. They've borrowed some money to buy new equipment. Plant & equipment have increased 2. Their customers have been demanding that they keep larger stocks. Stocks and finished goods have gone up 3. Their customers have also been demanding longer credit periods. Debtors increased 4. Their suppliers have been insisting on shorter credit periods. Creditors have fallen 5. They've made some poor investments. Investment income has gone down 6. And they haven't been able to afford to pay their shareholders much. Dividends have decreased 7 Inglés para el Ámbito Comercial I (Unit 1) 8 Inglés para el Ámbito Comercial I (Unit 1) 14. Now, translate into Spanish the contents of the Balance Sheet and the Profit & Loss account. Balance Sheet as at 31st December Balance General al 31 de Diciembre ASSETS / ACTIVO LIABILITIES / PASIVO Fixed assets / Activo fijo, inmovilizado Current liabilities / Pasivo corriente o circulante Land and Buildings / Terrenos y Construcciones Bank Overdrafts / Descubiertos bancarios Plant and Equipment / Construcciones y Loans / Préstamos Equipos/Maquinaria Investments / Inversiones Current Assets / Activo Circulante Creditors / Acreedores Taxation / Impuestos Dividend payable / Dividendos a pagar Net Current Assets /Activo Circulante Neto Stocks / Existencias Finished Goods / Productos Terminados CAPITAL AND RESERVES/CAPITAL Y RESERVAS Work in Progress / Productos en Curso Debtors /Deudores Share capital / Capital social Cash and Bank / Tesorería, Efectivo disponible Profit and loss account / Cta. de pérdidas y ganancias 9 Inglés para el Ámbito Comercial I (Unit 1) Profit and Loss Account for year ended 31 st December Cuenta de Pérdidas y Ganancias al 31 de Diciembre Turnover / Facturación, volumen de ventas, cifra de negocios Cost of sales / Coste de ventas Gross Profit / Beneficio Bruto Administration costs / Costes de Administración Overheads / Gastos generales, gastos generales de fabricación* Depreciation / Depreciación, amortizaciones Operating profit / Beneficios de explotación Investment Income / Ingresos por inversiones Interest payable / Intereses a pagar Profit (or Loss) on ordinary activities after tax / Ganancias (o pérdidas) por actividades ordinarias después de impuestos Dividends / Dividendos Profit retained and transferred to reserves / Beneficio retenido y destinado a reservas * Hoy en día se encuentra en muchas cuentas PRESENTING YOUR COMPANY 🖭15. Listen to the presentation about Tara Fashions (Listening 1). Complete the chart. (3.3) Tara Fashions Where is the head office? Cordoba, Spain What does it sell? Clothes (practice pronunciation) Who are its customers? Fashion-conscious men and women aged 20-35 Annual turnover? €260 million Annual net profits? €16 million Number of Stores: in Spain? in other European countries? 15 Strengths? Can bring out new designs very quickly 14 (5 new stores every year) Designs sold at right price Future plans? New store in NY next year 🖭16. Listen to 1.15 again. Tick the phrases that you hear in the Useful Language section below (see below). 10 Inglés para el Ámbito Comercial I (Unit 1) 17. Which of these suggestions do you agree with? To make an effective presentation, you should: 1. find out as much as possible about your audience. Find out as much as possible about your audience and adapt your presentation accordingly, using this information. Don't just give the presentation you were going to give anyway. 2. introduce yourself (name, position, company). Good idea. Make sure your in-work Ss know their job titles as they really would be in English rather than an anglicisation of the titles in their own language. 3. start with a joke. Humour is used very differently in different places. Some cultures see it as a lack of seriousness. If in doubt, leave it out. 4. outline the structure of your talk. Point out that in the English-speaking world, this is a fairly normal procedure. It certainly helps language learners to structure their presentations in this way. 5. vary the tone of your voice. You could ask Ss what they understand by tone. It could be taken to include stress (putting emphasis on particular syllables and words), volume (loudness) and intonation (rise and fall of the voice). These should be varied but, at the same time, don't overdo it! 6. refer to your notes as often as possible. Don't bury your nose in your notes and don't write out a complete script. 7. use clear visual aids. Good idea but don't overdo it and use too many. Don't overcrowd the visuals with too much information. 8. summarize your main points. Related to point 4 and very useful. USEFUL LANGUAGE Outlining the presentation ● First, I'll give you some basic information. ● Secondly, I'll talk about our stores in other countries. ● Next, I'll talk about career opportunities. ● Last of all, I want to look at our future plans. Introducing new information ● Here's some basic information. ● Let me add a few figures. ● Let's have a look at some statistics. 11 Inglés para el Ámbito Comercial I (Unit 1) ● What are our strengths? Ending the presentation ● To conclude, I want to tell you about our future plans. ● Finally, a few words about our new project. ● Thanks very much for listening to my talk. ● Thanks for coming to my presentation. 18. Invent a company. Listen to the presentation about the fashion company and then make your own presentation about the company you have invented. IDIOMS AND EXPRESSIONS 🖭 19. Listen to the recording “Idioms and expressions (1)”. Then answer the following questions Expression 1: “look before you leap” Is the verb ‘to leap’ regular or irregular? both What does it mean? : Think about what you’re going to do before you do it, considering the consequence before you act. What example is mentioned to illustrate the meaning? Before signing a contract, taking a parachute dive or buying a house Where’s the origin of the phrase? It comes from one of those ‘fox fables’ Translate into English the following sentence: ‘Deberías haber mirado antes de saltar’? You should’ve looked before you leapt. Expression 2: “to rest on your laurels” What does it mean? : to rely or be satisfied with your old achievements. What example is mentioned to illustrate the meaning? You can never rest on your laurels when you learn English. 12 Inglés para el Ámbito Comercial I (Unit 1)