Intelligent Business Level Intermediate Unit 1 Companies Companies

Intelligent Business Level: Intermediate Unit 1 Companies

• Companies (UK) • Corporation (US) • Sole trader (UK) one’s own business • Partnership more than two businesses work together • Limited company (UK) private company with limited liability • Plc (Public limited company – UK) limited company with freely bought/sold shares

• Inc (Incorporated – US) = Plc • Multinationals a company operating in different countries • Merger two or more companies join together • Takeover = merger one company takes control by buying more than half of shares • Joint-venture two companies together invest in a project

Survival of the fittest • Keynotes - joint-stock - shareholders - multinationals - subsidiaries - assets - mergers - acquisitions - dotcoms - entrepreneurs

Preview • Types of companies - a large multinational corporation - a small or medium-sized family business - a trendy new high-tech corporation • Which type of company would you prefer to work for? • What are the advantages and disadvantages of working for each one?

• Large multinationals Advantages: - clear structure and career progression - good benefits - recognized by future employers Disadvantages: - narrow area of work - lack of view of what is happening in the rest of the organization

• Family business Advantages: - close relationship with other workers - ability to see how all the roles fit together Disadvantages: - difficulties working with other family members - amateur running of the business

• Hi-tech corporation Advantages: - exciting environment Disadvantages: - fast-moving business area may be risky - possibility of redundancy if the business fails

Developments that threaten the survival of traditional companies Developments in technology Growth in the power of consumer group Expansion of e-business Increase in shareholder power Financial scandals Transfer of money and jobs to cheaper countries • Weakening trade unions • • •

Positive and negative impacts on companies of each development • Discuss in groups of three • Write the answer on the board • Compare with teacher’s suggested answer • Get bonus mark (if any)

1. Developments in technology (+) greater efficiency (-) specific skills can become redundant 2. Growth in consumer power (+) increased responsiveness from companies (-) possible impact on image and profitability 3. Expansion of e-business (+) opportunity for any company to sell anywhere (-) competition from companies with few overheads

4. Increase in shareholder power (+) greater control of individuals at the top of companies (-) lack of freedom by directors to make decisions 5. Financial scandals (+) increased regulation and greater financial soundness (-) loss of consumer/shareholder trust 6. Transfer of money/job abroad (+) more competitive companies (-) loss of control over quality, loss of skills at home 7. Weakening trade unions (+) more competitive companies (-) unhappy staff

Reading Company structure: A matter of choice • Question 1: Why does the author think ‘choice’ will play a major role in determining the structure of tomorrow’s companies? If consumers, producers and shareholders have more choice, companies will have to structure themselves to ensure they are flexible enough to give consumers etc. what is wanted.

Reading comprehension 1. Main idea of paragraph 1&2: characteristics of US corporations in the past 2. Main idea of paragraph 3, 4, 5, 6 changes occurring to those corporations 3. Meaning of ‘shifting from high-volume to high value’ changing from mass-produced to smaller quantity with a larger profit margin

4. Types of future companies mentioned giant companies, small companies with few tangible assets, networks of entrepreneurs 5. Why not one type of future companies? because consumers, producers and shareholders have more choice 6. Key to survival for future companies flexibility

Speaking • Would you like to be a freelance worker or employed with a fixed salary? • What are the advantages and disadvantages of each situation?

Suggested answer Freelancer: Advantages freedom to accept interesting work and to refuse dull work Disadvantages lack of security regarding job and income Employee: Advantages fixed monthly salary, job security, routine Disadvantages routine, lack of freedom

Glossary 1. 2. 3. 4. Durable (adj) = long-lasting Decade (n) = 10 years Tangible assets (n) : buildings, machinery, etc… -ise (Br. E) , -ize (Am. E) standardise capitalise specialise modernise equitise computerise urbanise

Vocabulary 1/1: Find words in the text to describe people who … 1. work independently or on a short-term contracts freelancers 2. are willing to take risks entrepreneurs 3. are willing to invest in new/ risky business projects venture capitalists 4. express a wish to buy something bidders / consumers 5. make goods producers 6. own part of company shareholders

Vocabulary 1/2 1. Bureaucracy inflexible system of administration 2. Flattened hierarchy more middle than senior managers 3. Standardized products goods of the same quality and design 4. Lifetime employment permanent jobs

5. Merger when two companies become one 6. Customized made for a particular user 7. Tangible assets buildings and machinery a company owns 8. Lease rent a building on a temporary basis

Vocabulary 1/3 1. Corporations of the past standardized products, lifetime employment 2. Today’s multinationals flattened hierarchy, customized 3. Online companies flattened hierarchy, venture capitalists, bidder 4. All producer, shareholder, merger, tangible assets, lease

Language check - Focus on present simple and continuous - Self-study - Exercises and practice (assigned as homework) - Contact teacher (if any problem arises)

Vocabulary 2/1 Transatlantic, Inc. - traditional, hierarchical, bureaucratic company Spearhead Electronics Ltd. - less traditional, light organizational structure, few assets, network of complementary companies

Career skills: talking about your job - My job entails/involves … - I’m responsible for … - I work for/under … - I’m in charge of … - I report to … - I manage …

Listening: 2. - Harry Wilson - overseeing every aspect of policy and practice, responsible for all employees worldwide - 15, 000 employees - I’m (ultimately) responsible for …

3. Karl-Heinz Egonolf 4. Jill Black 5. Mary Fitzsimmons

Writing: Write profiles for the people in the listening activity - name - present position - present responsibilities Speaking: - role-play introducing yourself and talking about your job

Culture at work - some cultures: steep hierarchy with many levels of management, clear roles, powerful senior managers - others: flat hierarchy with more equality and flexibility What is common in your country? Which would you prefer to work in? Why?

Dilemma and Decision (assigned as homework) 1. Dilemma 2. Decision 3. Write it up (writing focus: Formal emails)