English Business

Compiled by Irma 1

Content Unit 1 Business Transactions 2

Unit 2 Business Letter Writing –

Introduction

6

Unit 3 Enquiry 11

Unit 4 Offer- Reply to Enquiry 14

Unit 5 Project Reporting 17

Unit 6 Competitive Advantage 19

Unit 7 Invoicing, Accounting & Settlement of Account

21

Unit 8 Banking & Payment in Foreign Trade

24

Unit 9 Recruiting, Selecting Personnel 31

Unit 10 Organization Structure 32

References

English Business

Compiled by Irma 2

Unit 1

Business Transactions

1. Conversation The manager of a sport wear shop talking to two new assistants detailed instructions about the procedur es involved when buying stock.

M: So, what do we mean by a supplier, Debbie

A1: A supplier is a company that sells goods to shop, l ike us.

M: Right. So, if we need goods, we go to a supplier. Notice that I said a supplier. For all the goods we stock here there are various suppliers we use. And we stay in contact with all of them so that we can get the bes t offers. So how we do compare the offers?

A2: By making an enquiry.

M: And how?

A2: By phone.

M: Right. This book here. “The Sport Equipment Trade Jour nal”, gives details of all the trade suppliers. Tha t mean companies that sell to the trade- to shop like us. So, when we need stock, we check for suppliers here and then phone round for quotes. When asking for a quote we need to state the item we want and the quantity we need. And we write a quote here on the quote record form, showing the supplier’s name, the ite m, the quantity and the price. And before we put the phone down?

A1: We ask the supplier to send us a copy.

M: Or better?

A1: To fax us a quote.

M: Right, and why?

A2: So that we have something in writing.

M: So what detail would you aspect the supplier to fax?

A1: Oh, er….price…..special discounts, delivery cos ts…..

M: And?

English Business

Compiled by Irma 3

A2: Delivery time

M: Right. Good. So, now we’re got the best quote. What ’s next?

A1: We place an order.

M: And how do we place an order?

A2: Using our order form. And we send it or fax it to supplier.

M: Exactly. So this is the order form here. As you can see, it shows our name here , and our order number. Below that we write the details of the order: item name, item reference number, number of unit and the unit price . At the bottom we write the agreed delivery date fr om the supplier’s fax, and the delivery address, which is our address here. What else does the order need?

A1: Signature

M: Right. In fact, I’m the only person who can sign fo r orders, so all order form will need to come to me, right?

A1,2: Fine/ Ok/ Right.

M: So, the goods arrive as agreed, together with anoth er document. Do you know what it’s called?

A1: A delivery note.

M: Yes, that’s right. The delivery note is proof that we have taken delivery of the goods. So we have to sig n the delivery n ote and hand it back to the driver. So now we’ve had the goods.

A2: We receive a bill

M: Yes, a bill or…………….

A1: An invoice

M: Exactly. And that’s what we are going to look at next.

2. Controlled Practice

Based on the conversation above, complete the parti cipant’s note below:

English Business

Compiled by Irma 4

TRANSACTION/ RECORD NAME

TRANSACTION/ RECORD DETAILS

Step 1:………………………… We tell supplier: a. Item we want b. Quantity we need

Step 2: Quote record form

We write down: a. …………………………………… b. ………………………………….. c. ……………………………….. d. …………………………………..

Step 3: Supplier’s quote

Supplier sends/ faxes to us: a. ……………………………… b. …………………………….. c. …………………………….. d. ……………………………..

Step 4: ………………………… We send to supplier: a. Our name b. Supplier’s name c. …………………………………….. d. Item details- name, reference

number, number of units, and price e. …………………………………… f. …………………………………… g. …………………………………

Step 5: …………………………… We must: a. …………………………………….it b. ……………………………………..to the driver

3. Presentation Exercise: Prepare a conversation with your partner about : a. How to handle an order b. How to decline an offer c. How to serve a customer come to your store

4. Word Study

A. Complete the following word table by writing the mi ssing forms in the space provided. The first one has been done for you. Do not include person/ agent under noun.

Noun Verb Adjective

Sale/ sales sell Saleable/ selling ………………………………………. ………………………………………. Various/ varied ………………………………………. compare ………………………………………. ………………………………………. ………………………………………. Special/ specialized ………………………………………. ………………………………………. Agreed/ agreeable Signature ………………………………………. Signed proof ………………………………………. ………………………………………. ………………………………………. presume ……………………………………….

English Business

Compiled by Irma 5

B. Complete the following sentences about order proces sing with an appropriate word. 1. We usually…………………………………………………..our orders by phone on

Monday 2. We normally……………………………delivery of the orders at the

end of the week 3. Invoices are normally sent by…………………………..for follow ing

week 4. If there is a mistake in the invoice, I normally sp eak

to the supply company by…………………………………… 5. After that I usually confirm details of the mistake

in…………………………………….; and I send the details by……………………………….so that the suppliers receive the information right away.

C. Vocabulary

To stock Trade Quote (quotation) Item Discount Unit price To hand Bill invoice

Hold goods for sale Business of buying and selling Estimate of what something will cost Thing e.g. product to be sold or bought Special price offered by seller to buyer, usually as a percentage off the normal price Price for a single product Give Document showing amount to be paid See: bill

English Business

Compiled by Irma 6

Unit 2

Business Letter Writing

1. Business Letter Writing Business Letter Writing is an essential part of bus iness. In spite of telephone, telex, and telegraphic communic ation. The writing of letters continues; in fact most telephon ed and telegraphed communications have to be confirmed in writing. Letter is often evidence of an arrangement or a con tract, and must therefore be written with care, even the short est and most usual of letters may have this importance. The need for thought in writing is clear when you realize that i n speaking- either face to face or by phone – the rea ction to the spoken word can be seen or heard immediately, b ut reaction to a letter is not known until the answer is received. When you have written a letter, read it through car efully, see that you have put in everything you intended, a nd have expressed it well. Read it again, trying to put you rself in the place of the receiver, to find out what impress ion your letter will make.

2. The letter heading layout Business letters usually are typed on notepaper bea ring a special designed heading which provides the reader of the letter with essential information about the organiz ation sending it. Normally the heading include the name o f the company and address, its telephone number and teleg raphic address. It is becoming increasingly common for fir ms to print an emblem or trademark on their stationary. Here is an example of a heading that might be used by a British company.

Telegrams Telephone BRONK LONDON 01 486 0517

Registered Number BP

725716 H. BROWN & W PINK LIMITED Home & Overseas Merchants DIRECTOR: H. BROWN 18 HILLS ST W. PINK LONDON WIM 5 RN

English Business

Compiled by Irma 7

3. Part of the letter

(a) Telegrams Telephone BRONK LONDON 01 486 0517

Registered Number BP 725716 H. BROWN & W PINK LIMITED Home & Overseas Merchants DIRECTOR: H. BROWN 18 HILLS ST W. PINK LONDON WIM 5 RN

( b) JAS/ DS (C) July 12, 2006 (d) Oliver Green and Co. Ltd 25 King Edward VII St Manchester M24 5BD (e) Dear Sirs, We understand from our several of our trade connect ions in Bolton that you are the British agent for Petrow & Galitopoulos AE of Athen s. Will you please send us a price lists and catalogue s for all products manufactured by this company, together with details of trade discou nts and term of payment. We look forward to hearing from you. (f) Yours faithfully BROWN & PINK Ltd (g) J.A Stevens Chief Buyer

Explanation:

(a) The heading This has already explained on the paragraph above.

(b) The reference This is typed on the same line as the date, but on the left, and consists of initials of the person who si gns the letter and those of the typist.

(c) The date The form in which the date is written in this lette r- 12 July 2006- is probably the simplest and the cleares t of all the current forms used in the English speaking world, but there are alternatives ways of writing the date for example: July 12, 2006 (American put the name of the month f irst) 12 th July 2006 and July 12 th 2006. Another practice widely used in Europe is to write the date in a highly abbreviated form- 12.7.2006 for ex ample- but this should not be done in letter written in En glish, since in Britain 12.7.2006 means 12 July 2006, wher eas in

English Business

Compiled by Irma 8

the USA it means December 7 2006.It is obvious that the use of such form could result in confusion.

(d) The inside address A few points concerning the name and address of the firm written to need to be made.

(e) The salutation The word s “Dear Sirs” is the usual salutation in B ritish Business letters. In the USA the most common saluta tion is “Gentlemen”.

(f) The complementary close

Name & Address Salutation Complimentary close

Oliver Green and Co. Ltd 25 King Edward VII St Manchester M24 5BD

Dear Sirs Yours faithfully (Yours truly)

The Marketing Manager Oliver Green and Co. Ltd 25 King Edward VII St Manchester M24 5BD

Dear Sir Yours faithfully (Yours truly)

Ms. J. Faulkner Oliver Green and Co. Ltd 25 King Edward VII St Manchester M24 5BD

Dear Ms. Faulkner Dear Madam

Yours sincerely

(g) The signature

It often happens that the person who has dictated a letter is unable to sign as soon as it has typed. Since it is essential to send a letter as soon as possible, the typist or some other employee connected with the letter in question will sign it instead: in such cases he or she will write the word “for” or the initial

4. Format of Business Letter - The block format is by far the simplest. Every part of the

letter starts at the left margin with spaces betwee n each part. It has a very professional look it. The order for the parts of the letter are date, inside address, salutation, the body, complementary close, signatur e and added information.

- The modified block . Like the block, the modified block has the advantage of separating paragraph so that e ach one stands out . The spacing between sections remains t he same as in the block. The signature and date are placed to the right, thus allowing them to stand out also. The complementary close and the signature are aligned a nd placed near the center of the letter, two spaces be low the last paragraph.

- Modified Semi Block. You will recognize the modified semi- block as the format most commonly taught as “busine ss letter”. It is the same as the modified block excep t that

English Business

Compiled by Irma 9

the paragraphs are indented five spaces. All spacin g remains the same.

- Simplified Letter. This is useful when you do not know the title of the person you are writing to, or when you are writing to a company, government agency or organiza tion. It eliminates the courtesy title (Mr, Miss, Ms Dr) , the salutations and the complementary close. The focus of the letter is on the body and what is to be said. The s pacing is the same as the block format.

- Hanging Intended Letter. On occasion you will see this form, but for all practical purpose, it is seldom u sed. Its main advantage is that is calls attention to th e body and each of the paragraphs. Spacing between the lin es and sections is the same as in the previous examples.

Here are the format in figures: a. Block Format

b.The modified block

Unit 3

March 15, 2009 Mr. Rudy Ring Weatherproof Ltd. Newton Liverpool L 30 KE Dear Sir, Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxx Yours sincerely Dymont & Co xxxxxxxxxxxx

March 15, 2008 Mr. Rudy Ring Weatherproof Ltd. Newton Liverpool L 30 KE Dear Sir, Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxx

Yours sincerely Dymont & Co

xxxxxxxxxxxx

English Business

Compiled by Irma 10

c. Modified Semi Block

d. Simplified Letter

e. Hanging Intended Letter

March 15, 2008 Mr. Rudy Ring Weatherproof Ltd. Newton Liverpool L 30 KE Dear Sir, Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxx Yours sincerely Dymont & Co xxxxxxxxxxxx

March 15, 2008 Mr. Rudy Ring Weatherproof Ltd. Newton Liverpool L 30 KE Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxx Dymont & Co xxxxxxxxxxxx

March 15, 2008 Mr. Rudy Ring Weatherproof Ltd. Newton Liverpool L 30 KE Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxx

Dymont & Co

English Business

Compiled by Irma 11

Unit 3

Business Letter Writing- The Enquiry

1. The Enquiry

Most letters of enquiry are short and simple. As a prospective buyer, the writer of an enquiry states briefly and clearly what he is interested in, and this is a ll the receiver of the letter needs to know. It is rather different when the object of your enqu iry is to obtain a special price for regular orders, or selli ng rights in your area. In cases like this you are asking fo r concession and you have to “sell” your proposal to the supplier. This requires much more skill than does t he writing of a routine enquiry, and we will be returning to l etters of this type shortly. The first enquiry- a letter sent to a supplier wit h whom you have not previously done business- should include: a. A brief mention of how you obtained your potential

supplier’s name. Your source may be an embassy, consulate, or a chamber of commerce, business assoc iate, exhibition, advertisement or trade press.

b. Some indication of the demand in your area for the goods which the suppliers deals in.

c. Details of what you would like your prospective sup plier to send you. Normally you will be interested in a catalogue, a price list, discounts, method of payme nt, delivery time, and where appropriate, samples.

d. A closing sentence to round off the enquiry. 2. Routine enquiry- suggestions sentences

a. Opening lines - Your name has been given us by the British Chamber of

Commerce in Hamburg……………………………………… - We saw your product demonstrated at the Hanover Fai r

earlier this year, and would like to know whether ……………………………

- We have seen your advertisement in last Sunday’s Observer , and would be grateful if you would let us have details of………………………………

- etc b. Indicating the state of the market

- There is a brisk demand here for high-quality sport s shirts of the type you manufacture

- There is no market here for articles on this type i n the high price ranges, but less expensive models sell v ery well throughout the year

- etc

English Business

Compiled by Irma 12

c. Asking for information - Will you please send us your catalogue and price li st

for……………………………………… - We would appropriate a sample of each of the items

listed above. - We are also interested in your terms of payment and the

discounts offered for regular purchases and the lar ge orders.

- etc d. Closing sentences

- We are looking forward to hearing from you. - We would appropriate a prompt answer. - We hope to hear from you shortly.

3. Example of Enquiry letter- from a French importer of fashion goods to a British exporter

FOURNIER ET CIE Importers of Fashion Goods PARIS Avenue Ravignie 14

Paris XV

JdP/ AG September 12, 2006

The Western Shoe C. Ltd Yeovil, Somerset 519 3AF ENGLAND Dear Sirs, We have heard from the British Embassy in Paris tha t you are producing for export hand-made shoes and gloves in natural materials. There is a steady demand in French for high- qualit y goods of this type. Sales not high, but a good price can be obtained for fashionable de signs. Will you please send us a price lists and catalogue s and full details of your export prices and term of payment together with samples o f leathers used in your articles and if possible, specimens of some of the articles them selves. We look forward to hearing from you. Yours faithfully FOURNIER ET CIE J.dU Pont Managing Director

4. Note on letter

Remember the following combinations of noun and pre positions: Demand for Details of Samples of Requirements for Samples of To quote To look forward to To place

English Business

Compiled by Irma 13

5. Definitions Catching on : becoming popular or fashionable Drawback : disadvantage Condensation : drop of liquid forming, in this cas e, in tropical climates Associates : people the writer does business Let us down : failed to execute our orders properl y Getting into arrears : falling behind schedule Hard-wearing : strong, able to stand up to a lot o f use Carriage paid home : all transport paid by sender Carriage forward : transport to be paid by buyer Franco; free delivered: all costs paid by sender C.O.D : Goods to be paid for the buyer on delivery

English Business

Compiled by Irma 14

Unit 4

Replies to Enquiry- Offers

1. The Offer A reply to an enquiry from a regular customer is no rmally fairly brief, and doesn’t need to be more than poli te and direct. Provided the supplier is in a position to m eet his correspondent’s requirements, his reply will genera lly: a. Thank the writer of the letter of enquiry for the l etter

in question. b. Supply all the information requested , and refer bo th to

enclosures and to samples, catalogues and other ite ms being sent by separate post.

c. Provide additional information, not specifically re quested by the customer , so long it is relevant.

d. Conclude with one or two lines encouraging the cust omer to place orders and assuring him of good service.

2. Suggestion sentences: The Offer

Opening lines: - Many thanks for your enquiry of 3 April……………………. - We are please to have your enquiry about …………. - Replying to your enquiry of 3 June…………………

3. Example of reply the enquiry on the previous unit

WSC Western Shoe Company. Ltd

Yeovil, Somerset 519 3AF ENGLAND

SG/EO October 12, 2006

Fournier Et Cie SA Avenue Ravignie 1 Paris XV Dear Sirs, We thank you for your enquiry of 12 September 2006, and appropriate your interest in our products. Details of our export prices and terms of payment a re enclosed, and we have arranged for a copy of our catalogue to be sent you today. Our representative for Europe, Mr. J. Needham, will be in Paris from the 24 th to the 30 th of this month, and we have asked him to make an appointment to visit you during this period He will have with him a full range of samples of our hand-made lines, and is authorized to discuss the terms of an order with you or to negotiate a contract. We think our articles will be just what you want fo r the fashionable trade, and look forward to the opportunity of doing business with you. Yours faithfully WESTERN SHOE COMPANY Ltd S. Granville Export Sales manager

English Business

Compiled by Irma 15

4. Offer of Goods & Services

In many types of business it is the practice of the seller to offer goods to his regular customers and to others who may be interested, without waiting for an enquiry. Similar ly suppliers regularly make special offers of goods wh en the prices are particularly favorable. In these cases t he customer’s interest has to be aroused. Here is a selection of phrases for use in making of fers and quotations: a. Opening lines

- We have pleasure in……………………………. - You will be interested (in) (to hear that)……………………… ….. - You will find enclosed with this letter a sample of …………… - etc

b. Prices & Terms - Our prices are quoted……………………….. - Our prices including packing and carriage - Our catalogue prices are less 25% to bona-fide deal ers - etc

c. Conditions & Qualifications - This offer is (firm for 3 days) (subject to contrac t) - This offer must be withdrawn if not accepted within 7

days - This is a special offer and is not subject to our u sual

discounts - etc

d. Supply & Demand - This article is in great demand - Tropical fruit is in good supply just now - We shall be unable to obtain further supplies - etc

e. Asking for Instructions - Will you kindly let us have an early decision - Please send us your instruction by (cable) (telex) - We await your instruction by return - etc

f. Concluding Sentences - Our whole experience is at your service. We hope yo u

will make use of it - An early reply would help us to help you - We look forward to the pleasure of serving you - Etc

English Business

Compiled by Irma 16

5. Vocabulary

Become effective: begin to operate Bulk purchase: buying in large quantities Call on: to visit Evidently: clearly; obviously Entail: to cause; involve Firm order: definite order Expendable: short lived, not durable Grant: to allow Prospective: potential Lines: products or group of products

6. Offer of Goods and Services

In many type of business it is the practice of the seller to offer goods to his regular customers and other who may be interested, without waiting for an enquiry. Similar ly, suppliers regularly make special offers of goods wh en prices are particularly favorable. In these cases the cust omer’s interest has to be aroused. Dear Sirs, You will be interested to hear that we have been ab le to obtain a further supply of Brazilian coffee of the same quality as that we sup plied you with last year. The total consignment is only 10,000 kg., and we are pl eased to offer it to you at 60p per kg. With the increases in freight charges which become effective next month, the next consignment will be rather dearer, so we recom mend you to take advantage of this offer, which is firm five days only, and to em ail or facsimile your order without delay.

7. Follow- up letter

It often happens that after answering an enquiry, a firm receive no further news from it’s prospective custo mer. Very few customers write and tell those who send them qu otations why they do not wish to place an order. The practic e of sending a representative to call on the enquirer so on after the enquiry is answered is common, as is that of se nding a follow- up letter. Dear Mr. Morton, You wish to modernize your store-rooms with the mos t up-to-date shelving system yet devised: that is clear because you asked for our ca talogue, which was sent to you earlier this month. The next step lies, of course, with you. You could have a demonstration of the fitting of the lock shelf system in your own store room, or see the combined units here in our showroom. You could test for yourself the wonderful adaptabil ity of our system to all storage problems, by sending us a trial order for one 5 met er section, which compromises three units. Or if you have any special problems, y ou are welcome to our advice without any obligation. You may be sure that whichever of our services you decide to use, you will receive our immediate attention. Yours sincerely.

English Business

Compiled by Irma 17

Unit 5

Project Reporting 1. Conversation

Here is a conversation between two colleagues discu ssing the progress of a marketing campaign.

A: When did the project start?

B It begin at the end of last year

A: What have the results been like so far?

B Rather disappointing. We hoped to rea ch our targets before now

A: How do you account for this results?

B It’s difficult to say. The retailers think the prod uct is over-priced

A: Do you agree?

B No, not really. I believe the advertising has faile d to reach its target

A: Really?

B Yes. As you know, this product is targeted at th e 30- 40 age group. I don’t think it is reaching them.

A: So, what are you going to do about it?

B We have just commissioned some new research into ou r target customer group.

A: Surely we don’t need more research

B I’m afraid so. We are simply not reaching our targe t and we need to know how to get them

A: Of course, but we carried out pretty exhaustive res earch before the project began

B True, but we obviously reached the wrong conclusion s, so it means have to go back to square one.

English Business

Compiled by Irma 18

2. Controlled Practice

a. Practice the conversation above with your partner b. What is the main idea of the conversation above, di scuss

with your friends c. Prepare your own conversation.

3. Word Study Match the word on the left with their closest equiv alents on the right. 1. Preliminary 2. to run (a test) 3. to reach (a target) 4. to scale up (production) 5. to work on (something) 6. a phase 7. on a small scale 8. (keep me) up to date 9. to hold (a press

conference) 10. (tell me) where we stand

a. to prepare………. b. In limited quantities c. To have………………….. d. …………..informed e. A stage f. Initial g. To increase……….. h. To carry out i. To achieve j. ……………..what the position is

4. Word Check Original (plan): first, initial Encouraging: showing positive results Tooling: machines need for production Promotion literature: leaflets, poster etc, used to publicize/ advertise Media coverage: reports, publicity in newspapers, o n TV etc 5. Homework Prepare a project reporting in group. Present in fr ont of the class. You can choose your own topics.

English Business

Compiled by Irma 19

Unit 6

Competitive Advantage 1. Presentation

Here is the presentation by a Director of NETCOUNT software Ltd outlining the competitive position of the compa ny.

What I’d like to do is to outline a SWOT analysis o f the company , whish we have recently carried out. As I’m sure you all know, SWOT stands for strengths, weaknesses, opportunities, an d threats. So, let starts with the strengths. It’s apparent th at our main competitive advantage is our range of products. Our accounts software packages are perceived as the most user- friendly on the market, relatively easy to install, requiring much less tra ining than our competitor’s packages and representing better value for money. So, all in all we’ve got an excellent product. Our other ma in strength is our people- especially on after sales side. Our after sales tea m is perceived as faster, more qualified, friendlier, an d generally more efficient than our competitors’. This applies both to the help- desk and the field maintenance people. Right. Lets turn to the weakn esses. Although we have such a strong product, we haven’t achieved the sort of market pen etration we should have. Basically this is because our marketing is no t so effective as our competitors’. One especially STERLING , has a much stronger presence in the market both in terms of sales and profile. We’ve relied too heavily on product quality, not enough f or promotion. We’ve got to put considerably more effort into our advert ising and direct mail campaigns. So, that brings me to the opportunities. We’ve clea rly not taking the opportunity we have to dominate the small business user market. We could be achieving significantly higher sales- I estimate fifty to sixty percent more. We could also be building to mu ch more extensive customer base- this would ensure to more secure fut ure as well. Our main treat, of course, is STERLING. They’ve got a much more impressive dealer network and their promotion is a lot more sophisticated than ours. On the other hand, we’ve g ot the better range of products. We should be capitalizing on this. One way…..

2. Controlled Practice

Based on the presentation above, complete this tabl e! Strength: 1…………………… 2………………………

Opportunities: 1…………………… 2………………………

Weakness: 1……………………….

threat: 1……………………….

English Business

Compiled by Irma 20

3. Modification of Comparisons & contrast a. Modification of Comparisons

Form - To indicate a great difference

Considerably: a considerably grater amount Much: much less training A lot: a lot more expense Significantly: significantly higher sales

- To indicate medium difference Somewhat: somewhat higher interest Rather: rather more defects

- To indicate small difference Slightly: slightly fewer trainees A little: a little higher cost

Usage These adverbs are used to modify (strengthen and we aken) the comparison

b. Contrast To draw attention to a contrast, a variety of conne cting words can be used: - Although………………,……………. - ……………….;however,………………… - ;on the other hand…………….

c. Exercise

Use the table below to compare the two companies, N ETCOUNT & STERLING. Modify the comparisons using this code: +++ = strong modification ++ = neutral modification + = weak modification

NETCOUNT STERLING Sentences Product Use-friendly Ease of installation Amount of training Value for money Marketing Effectiveness Presence in market Dealer network Sales Customer base Sophistication of promotion After sales Speed Friendliness

+++ + + ++ ++ +++

+++ ++ +++ + ++ +++

e.g. Netcount’s software is much more user friendly

English Business

Compiled by Irma 21

Unit 7

Invoicing, Accounting & Settlement of Account

1. Invoice The invoice is an important document in the export trade, as copies may be required by banks, export-import agen ts, shipping companies, custom authorities, and consula tes. It is therefore one of the shipping documents , and as th ere are other types of invoices, this one is called commerc ial invoice. Here are some of the terms and abbreviations connec ted with invoicing and accounting: Dr: Debit a/c: account b/f: brought forward c.w.o: cash with order Cr: Credit c/f: carried forward Bal: balance N/C: no charge The invoice will be sent to the customer by post or through an agent or a bank. In the case of single or isolated transactions, payment is then required, either befo re delivery or on delivery of the goods. This method of payment is called payment on invoice. But where the buyer has opened an account with the seller, the latter will not want payment on invoice. Instead he keeps the record of all invoices sent out to his customer and then, once a month (or once a quarter) he will send an account of all the goods dispatched and payments received during this period. This document is called the statement (statement of account) and the customer knows that he now has to pay. This is called payment on statement . Accounts may be paid my means of: - International money order: for small, private trans actions - Banker’s transfer: direct transfer from buyer’s to

seller’s bank - Bill of Exchange - Letter of Credit Here is a selection of phrases for use in invoicing : a. Sending the invoice or statement

- We enclose invoice amounting to £235.53, covering t he first consignment per S.S Nova Scotia

English Business

Compiled by Irma 22

- Attached to this letter you will find our statement showing a balance of £235.53; we are drawing on you for this amount.

- A copy of the invoice is enclosed. The shipping documents will be handed to you by the SAS Bank against settlement of the amount shown.

- etc b. Notifying payment of account

- We enclosed our (cheque) (money order)for £235.53 i n settlement in your invoice no. xxx of 24 th March.

- We have pleasure in sending you enclosed our cheque for £235.53

- We have arranged payment through the PXY Bank in London of the sum of £235.53

- etc

2. Errors & Disagreement in Account a. Error in totaling invoice b. Error in extending item on invoice c. Disagreement in goods sent & charged d. Incorrect discount in statement e. Discrepancies in statement f. Etc

3. Accounting Accounting is a process to book the economy transac tion by preparing the entry journals of transactions, putti ng them in a general ledger, making journal adjustments and or reclassification, preparing the financial statement . The financial statements consists of: a. Balance sheets

- current assets - Fixed assets - Other assets - Short terms liabilities - Long terms liabilities - Equity

b. Income Statements

- Sales - Cost of Goods Sold - Operating Expenses - Other Income & Expenses

c. Statements of Changes in Equity

- Share capital - Retained earning - Net income

d. Cash flows Statements - Operating activity - Investing activity - Financing activity

English Business

Compiled by Irma 23

e. Note to Financial Statements - General - Summary of significant account policy - Accounts in details

4. Controlled Practice

a. Look for an example of an invoice and or settlement s b. Look for an example of financial statements, discus s it

with your partner

5. Word Check

Discrepancy: error; disagreement Carriage: freight; cost of transport Warrant: justify; entitled us to To query: to question; raise a question To waive: to cancel; overlook Outstanding: unpaid Punctually met: paid when due Kept (in this case) paid promptly

6. Homework

Find out a figure of financial statement of “go pub lic company”. Is there any different between one compan y’s financial statement to other? Discuss with your fri end and your lecturer.

English Business

Compiled by Irma 24

Unit 8

Banking & Payment in Foreign Trade

Introduction. The purpose of this chapter is deal with all numerous functions of banking, and to outline the p rincipal services rendered by bank in connection with trade, and to give the students vocabulary which is essential for corr espondence and for an understanding of the various documents u sed in matters relating to payment in commerce. First lets discuss the two passages below, to give you simple description about bank and its activity.

1. Passage : A Bank Manager Speaks My name is Jane Carson and I’m the manager of a sav ings bank in Portland, Oregon. My bank is open everyday from 8:3 0 in the morning until 4:00 in the afternoon. On Fridays the bank remains open until 6:30 in the evening. Friday is our busiest day. Many people get their pa ychecks on Fridays and they come in to deposit them. I find th at on Fridays I have to keep six windows open all day long. My ba nk tries very hard to reduce the amount of time that customer hav e to wait for service. We have many signs to remind people that t hey need their passbooks for all transactions and that they must fill out their deposit or withdrawal slips completely. If ou r depositors cooperate with us we can accommodate them with a fe w delays as possible. Of course, people do forget. The tellers inform me that many customers still forget to endorse their checks or t ry to open or close joint accounts with the signature of only one of the parties. But I hope that my program of information for customers will reduce such delays. Banking has changed a lot in recent years. Computer s now do much of the work that the tellers used to do. As compute rs improve, they are able to accomplish more difficult tasks an d they help us serve our customers better. Another important change in banking, especially for savings banks, are the many different term-deposit deposit accounts that they are now available to our customers. Since thes e certificates of deposit offer very high interest ra tes they help

English Business

Compiled by Irma 25

attract depositors to our bank. I make sure that my staff always has the latest information about these accounts so that they can advise our depositors correctly. My bank is not a very large bank. The total of our current assets and fixed assets comes to 15,550,000 dollars . I’m proud of our balance sheet. Although some banks across th e country are having difficulties, my bank has more assets than l iabilities. We are solvent and growing. The number of customers we serve has increased this year and I expect that it will conti nue to grow in the future. Answer the following questions orally!

1. What does a bank manager do? 2. How many windows are open in Fridays? 3. Why do they need so many windows on Fridays? 4. What are some of the ways in which customers cause delay? 5. What does the depositor have to do to open or close to

joint account/ 6. Why are computers important to a bank? 7. How do term- deposit account help a bank get new

customers? 8. Why does the banks manager want her staff to have t he

latest information on term – deposit accounts? 9. How much money does Jane Carson’s bank have in asse ts? 10. Why is Ms. Carson hopeful about future of her bank?

Composition Make a list of the most important aspects of Jane’s Carson’s job. Building your vocabulary Find the words in the right –hand column that match the words closest in meaning in the left- hand column!

1. percentage 2. customer of a bank 3. person’s written name 4. money owed 5. two-party account 6. director 7. piece of paper 8. money in the bank 9. record (noun) 10. lateness

a. savings b. joint account c. rate d. slip e. delay f. account g. manager h. depositor i. signature j. liabilities

English Business

Compiled by Irma 26

Rewriting sentences. Rewrite of the following sentences replacing the underlined word or words with the cor rect form of one of the new words of this lesson. Model: Please write the necessary information on this form Please fill out this form

1. Please write your name on this slip 2. The bank tries to take care of all it’s depositors 3. I must take out fifty dollars today 4. Please sign the back of this check 5. Which bank offers a higher percentage of interest?

Banking Conversation You work in a bank in the United States. Using the new vocabulary of this lesson, explain to a customer wh at he or she has to do in order to:

1. Withdraw money 2. cash a check 3. close a joint account

Now explain the following things to a customer:

1. Why there is a delay 2. what a teller does 3. which type of account pays higher interest rates

2. Banking & Payment

a. General The main functions of banks are to accept and hold deposits, to honor draft-cheques and bill of exchan ge – draft on them, and to grant advances in the form of loans and overdrafts. Banks also provide services such as keeping customers’ accounts, obtaining & giving information, transferring funds for payments or investments, handling foreign currency transactions , issuing letter of credit, acting as trustees, execu tors and guarantors, looking after securities and other valuables and in foreign trade, collecting payments , discounting bill of exchange, and financing imports and exports.

b. Correspondence with bank The following phrases and sentences are commonly u sed in connection with routine correspondence:

- Opening an accounts Please open a current account for us in the name of John Smith & Co. We enclose specimen signatures of the partners, either of whom may sign cheques on ou r behalf. Will you kindly open our no. 1 account with ₤750 and place ₤250 to our credit in a no. 2 account.

- Payment Instructions Please transfer 100 to the Westland Bank, Bournsea, to the credit of Clark & Sons Ltd, debiting our no. 1 account

English Business

Compiled by Irma 27

- Accounting & special instructions We are pleased to say that our records now agree wi th your statement.

c. A short explanation of some banking terms

- current account : the account into which a client pays his trading receipts and on which he draws his cheques. No interest is paid in current account. Ba nk make charges for handling these accounts unless an agreed minimum balance is kept in over an agreed period of time

- Deposit account : Surplus funds from the current account are held in this, and receive interest.

- Interest : The charge or profit due for lending money - Loan : money lent - Cheque : An order in writing from a person to his

bank to pay on demand a certain sum to a named person.

- Bill of exchange : An order in writing from one person to a bank or to another person , to pay on demand o r at a given date, a certain sum to the person named in the bill.

- Letter of credit (commercial ): an arrangement with a bank by means of which a buyer guarantees payment t o a seller on fulfillment by the seller of certain agreed conditions. The instructions must be in writing and if marked “irrevocable” , it can not be cancelled.

- Draft : This really means a document used to “draw” money from some source, but sometimes it is used to refer to the money itself. A bill of exchange is often referred to in a letter as “the draft”.

- Bankers’ draft : a draft or cheque drawn by one bank or another

- Bankers’ transfer : transfer of money from the bank account of a debtor to the bank account of his creditory by order of the debtor

- Overdraft : a debit balance of a bank customers’ current account. This may be authorized by the bank .

- Security : a document of value given as cover for a loan.

- Trustee : person appointed to protect the interest or property of a person unable to do so for himself.

- Executor : person appointed to carry out the wishes of another person deceased.

3. Payment in Foreign Trade

Payments in foreign trade may be made by: a. Bankers’ transfer

This is the simple transference of money from the b ank account of a buyer in his own country to the bank a ccount of the seller in the seller’s country. It is merely necessary for the buyer or debtor to send a letter of instruction to his bank- or use a special form. The transfer is carried out at current rate of exchange . Such transfer, of course, subject to any exchange contro l

English Business

Compiled by Irma 28

regulations of the country concerned. This transact ion is simple and quick can be speeded up by cabled instru ction if desired.

b. Bill of exchange (B/E) The bill is an order in writing from a creditor to a debtor to pay on demand or an on a named date a cer tain sum of money to a person named on the bill, or to h is order. The bill is drawn by a creditor on the debto r, and is sent to debtor (or his agent) for the latter to pay or accept. The debtor accepts by signing his name on t he face of the bill together with the date. The bill now be comes legally binding, and the acceptor must meet it on o r before the due date.

c. Letter of credit The most generally used method of payment in the ex port trade today is the letter of credit. It is ideal fo r individual transactions or for a series, makes trad e with unknown buyers easy, gives protection to both selle r and buyer and overcomes the credit gab, i.e. the time p ayment loss between order and delivery.

English Business

Compiled by Irma 29

Unit 9

Recruiting & Selecting Personnel

1. Reading Practice

When there is a vacancy in a company, it is the job of personnel manager and his department to manage the recruitment of a new employee. One way an organization can find staff for job vacancy is to recruit in- company. Management c an inform people of new appointment by means of the company’s notice board or news bulletin. Another possibility is to a sk for recommendations from departmental managers. If it i s necessary to recruit outside company, the department personne l may use commercial and government employment offices or con sultant. It may prefer to put its own advertisement in newspape r, magazine, radio, TV and the like. Exercise: Complete the notes on the advantage and disadvantag es of internal promotion, discuss with your partner.

Internal promotion a. Advantage

-………………………………………………………………………….. -………………………………………………………………………….. -………………………………………………………………………….. -…………………………………………………………………………..

b. Disadvantage -………………………………………………………………………….. -………………………………………………………………………….. -………………………………………………………………………….. -…………………………………………………………………………..

2. Controlled practice a. Look for a vacancy b. Make an application letter based on the position of fered in

the vacancy. c. Describe the steps of recruiting employee

3. Vocabulary

To promote Competence Reward Reject

Assessment Employer Employee Short list

Applicant Interviewer Interviewee Reference

English Business

Compiled by Irma 30

Unit 10

Organization Structure 1. Organization Chart

Here is the example of organization chart in a comp any.

Discuss it: a. Try to explain the responsibility of each departmen t b. What is the function of organization structure c. Choose a company, make a appropriate organization

structure 2. Word Check Achieve Satisfaction Efficient Effective Job rotation Decision making policy

Dependable Suitable Work for Be responsible for Look after Report to Work under

Work with Work as Work in Responsibility Job description Job specification capable

Exercise:

a. Check those words in your dictionary b. Based on the words or phrases above, make sentences

Director

Personnel Dept Finance & Acco unting Dept

Marketing Dept Production Dept

English Business

Compiled by Irma 31

References

David Cotton, David Falvey and Simon Kent "Market Leader" for Pre-intermediate Business English, Longman, 2002. Brieger, N and J. Comfort ; "Developing Business Contacts" Prentice hall International English Language Teachi ng, 1993 Brieger, N and Anthoni Cornish ;" Secretarial Contacts" : Communication skills for secretaries and personal a ssistant, Prentice hall International English Language Teachi ng, 1989 Lin Lougheed, Business Correspondence. F.W. King, D Ann Cree, Revised By O’Gorman, English Business Letter - New Edition . David M. Stillman, Ronni L. Gordon, Harvard Univers ity Extension, Instrumental English: English for Banking and Finance, McGraw- Hill, , Inc.