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MARKET LEADER PRE-INTERMEDIATE

UNIT 3: COMPANIES
LECTURE

UNIT 3
COMPANIES

INDUSTRIES AND SECTORS

Industry (uncountable noun) is the production of materials and goods.
British industry suffers through insufficient investment in research.
In these countries industry is developing rapidly.
An industry (countable noun) is a particular type of business activity (not
necessarily production).
… the motor vehicle and textile industries
…food processing industry
…the Croatian tourist industry

The primary sector is the part of a country’s economy that consists of industries
which produce raw materials.
Mining, farming and fishing are primary industries.

The secondary sector (industrial sector) consists of industries which produce
things from raw materials, for example manufacturing and construction. The
tertiary sector (service sector) consists of industries which provide a service,
such as retailing, transport and banking.
Developing countries are characterized by large primary sectors and small
industrial and service sectors.

BUSINESS AND BUSINESSES

Business is the activity of producing, buying and selling goods and services.
A business, company, firm or more formally, a concern, sells goods or
services. Large companies considered together are referred to as big business.
A large company, especially in the US, is a corporation.

A company may be called an enterprise, especially to emphasize its risk-taking
nature.

Businesses vary in size, from the self-employed person working alone, through
the small or medium enterprise (SME) to the large multinational with
activities in several countries.

LECTURERS: Z. RADELIĆ & M. PAŠALIĆ 1

A lot of professional people like lawyers. MARKET LEADER PRE-INTERMEDIATE UNIT 3: COMPANIES LECTURE Multinationals are large and powerful companies that may have local subsidiaries (=local companies owned or controlled by them) in different countries. If they are plumbers or builders they are described as self-employed. A limited company or limited liability company is a company whose owners are legally responsible for only a part of its debts if it goes bankrupt. sole proprietors) are one-man businesses. architects or accountants work in partnerships. In Britain a plc (abbreviation for ‘public limited company’) is a company whose shares can be bought by the public. LECTURERS: Z. However. RADELIĆ & M. Sole traders (sole owners. most national economies are made up of smaller organizations. Some companies are private. The word Limited or the abbreviation Ltd is used in the name of a company to show that it is a limited company Publicly quoted companies (listed companies) are companies whose shares are listed or quoted on a stock exchange. rather than the tens of thousands employed by large corporations. PAŠALIĆ 2 . Anybody can buy and sell the shares of British Telecommunications plc on the stock market. Many countries owe much of their prosperity to SMEs (small and medium sized enterprises) with tens or hundreds of employees. They may be family-owned or dominated. while people such as designers and journalists are described as free-lancers. Small businesses with just a few employees are also important. Their shares are not publicly traded. Forms of businesses Most countries allow you to run a business in at least three different ways: • as a sole trader (especially BrE) / sole proprietorship (AmE) • as a partnership • as a company (BrE) / corporation (especially AmE) A company has to be officially established (registered) in a particular country and is owned by shareholders.

MARKET LEADER PRE-INTERMEDIATE UNIT 3: COMPANIES LECTURE Important characteristics of businesses SOLE TRADERS/SOLE PROPRIETORSHIPS • There are few or no official procedures to follow. corporate. LECTURERS: Z. the word company can refer to any type of business organization. • The people who run the business can be different from those who own it. PARTNERSHIPS • They can usually be established without following a formal procedure although there is often a written agreement between the partners. RADELIĆ & M. • Each partner is personally responsible for the debts of the business (unlimited liability). but it usually refers to a business that has been incorporated (= created according to a particular set of laws). The adjective. Inc. is often used in combinations such as:  Corporate culture (= the ideas. • The owners are responsible for a limited amount of the company's debts equal to the value of their investment (limited liability). • The company exists independently of its members and can last for ever. • Each partner can act as a representative of the business COMPANIES/CORPORATIONS • There are a number of official procedures to follow.). beliefs and values of a particular company or organization) We are trying to make our corporate culture more international. In American English the word corporation is used after the name of a business to show that it has been incorporated (abbreviated Inc. For example: John Daly International. WHICH WORD? Corporation or company In both British English and American English. PAŠALIĆ 3 . • The person starting the business is responsible for its debts (unlimited liability).

What makes a successful company? Successful companies usually have a large market share – the percentage of sales in a particular market. The company has to be managed to maximise profitability to investors who demand shareholder value: increased dividends and a rising share price. Dividend is an amount of the profits that a company pays to shareholders. Its profit is the money it makes after paying the costs. It LECTURERS: Z.  Corporate logo (= a printed design or symbol that a company or an organization uses as its special sign)  Corporate profits (= the money that is made in business after paying the costs) DESCRIBING COMPANIES Financial performance (= financial results) In any form of business the principle of survival is the same: the money coming in has to be more than the money going out. modern designs. Companies with shareholders want more than just survival – they want return on investment (ROI). MARKET LEADER PRE-INTERMEDIATE UNIT 3: COMPANIES LECTURE  Corporate headquarters (= the place from where an organization is controlled)  Corporate image (= what people think or feel about a particular company.  Corporate ladder (= a series of jobs from junior to senior level by which you can make progress in a company) After several years successfully climbing the corporate ladder he left to start his own business. the way that a company presents itself to the public) Creating a positive corporate image is an important part of marketing strategy. The amount of money a company receives from sales in a particular period is called its turnover. PAŠALIĆ 4 . RADELIĆ & M. A good example of a successful company is IKEA. a Swedish furniture company specialising in low-cost furniture with simple. The company will pay a dividend of 10 cents a share. Return on investment is a measure of how much profit an investment produces compared with the amount originally invested.

They may be:  Innovation (= introduction or development of new things. protecting the environment. which means that customers have to put the furniture together themselves.) Financial Times has carried out a survey among Chief Executive Officers from 25 countries to rank companies in terms of the above mentioned criteria. What makes a respected company? In addition to shareholder value (= profitability to investors) there are some other criteria to evaluate companies. LECTURERS: Z.  Then. MARKET LEADER PRE-INTERMEDIATE UNIT 3: COMPANIES LECTURE manages to keep its costs down by supplying many of the items as ‘flat pack’. RADELIĆ & M. Chief Executive Officer (CEO) is the person in a company who has the most power and authority and is responsible for managing its daily affairs. it is IKEA’s user-friendly packaging. the group of people chosen by shareholders to control the company and decide its policies.  Finally. There are several factors that make IKEA highly successful:  Firstly. ideas or ways of doing something)  Customer service (= the way in which a company treats its customers)  Community commitment (= the way in which a company supports the community in which it operates by creating jobs. it is a strong company culture and good designers who understand the needs of customers as well as production. etc. PAŠALIĆ 5 . This person is appointed by the Board of Directors. both for customers and for workforce. giving money to charity. it is a simple business idea that is easy to understand and easy to work with.