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NEW BUSINESSDealing withnumbersaI]D,.l» CD2.6 Say these numbers. Listen and check after each group.1a) 362b) 1,841c) 36,5032a) 3.5b) 2.89c) 9.8753a)4a) 15%5a) £80e) 4,537,295c) 617d) lhe) 2 / Jb) 50%c) 97%d) 100%b) $5,800c) €150,000d) €20,000b)IIsTry to answer these questions.1What is the population of your a) country? b) city?2How many people work for your company I study at your institution?3What is the average salary in your country?4What is the current inflation rate?5Approximately how many people are unemployed?6What is the interest rate for savings?7What fraction of their income do you think people spend on living costs?8What percentage of your income do you spend on transport?,.l» CD2.7-2.10 Listen to four extracts from a radio business-news programme.Underline the numbers you hear.1234liJJl4d) 684,321a) Inflation rate:2.0% I 1.2 %b) Unemployment:1 ,258.ooo I 1.soo.oooa) Profits increase:$1.8 billion I $1.8 millionb) Sales increase:80% I 18%a) )ob tosses:1/ J I 11•b) Workforce reduction:1 s,ooo I s,oooa) Interest rate reduction:o.s% I 1 .
5%b) Economic growth:2.8% I 1.8%Work i n pairs. You work for a marketing department, which is launchinga new range of mobile phones in an overseas market. You are gatheringstatistical i nformation.Student A: Turn to page 135.Student B: Turn to page 140.1Ask each other questions to complete your charts.2Discuss which are the best markets to launch the new range of phones in.U S E F U L LANGUAGESAYING LARGE NUMBERS912,757,250912 nine hundred and twelve million,==757 = seven hundred and fifty-seventhousand,BRITISH AND AMERICAN ENGLISHDI FFERENCES320 three hundred and twenty (BrE)three hundred twenty (ArnE)noughtloh (BrE) I zero (ArnE)0==250 = two hundred and fiftyDECIMALS1.25one point two five0.754 = nought point seven five four (BrE)zero point seven five four (Am E)point seven five four (BrEI Am E)CURRENCIES£3,000,000 = three million pounds€16,000 = sixteen thousand euros=FRACTIONS5h = five-sevenths1/l = a halfPERCENTAGES65% = sixty-five per cent2Is = two-fifths11• = a quarter71Scanned for Agus SuwantoBackgroundTaka Shimizu Cycles (TSC) is based in Nagoya,Japan.
Its brand is well known in Japan and in theU nited States. The company sells four models ofbicycle:••••Workers will be recruited locally and trained, ifnecessary, at a special school set up for that purpose.road bicycles for the non-enthusiast, generaluser. Price: US$100-$300The company is considering four countries as alocation for the factory. There is some informationabout each country on page 73. They are codenamed A, B, C and D .touring bicycles for serious cyclists who travellong distances.
Price: US$600-$3,000Sales revenue o f cycle models a s a percentageof turnoverracing bicycles for professional cyclists.Price: US$1,000 upwardsLast yearmountain bicycles for energetic, adventurous,keep-fit cyclists. Price: US$100-$250touring bicyclesNote: The company is about to launch a newbicycle for children, which has great salespotential.In the next 10 years, TSC plans to expand in Europeand South-East Asia so that it becomes a globalcompany. To do this, it has decided to build its ownfactory in an overseas country.
The factory will haveapproximately 2,000 workers, who will produce theframes for the cycles locally. Other components, suchas saddles, gears, chains, tyres, etc., will be imported.road bicyclesracing bicyclesmountain bicyclesPrevious yearroad bicycles3touring bicyclesracing bicyclesmountain bicyclesYou are members of the planning committee, which must choose a location for the new factory.1Work in pairs. Discuss the advantages and disadvantages of each location.2Work in small groups.
Discuss the four countries and rank them in order of suitability as a location.3Meet as one group, with one of you leading the discussion. Decide which is the most suitablelocation for the new cycle factory.Scanned for Agus SuwantoPopulation 120-150 millionPopulation 4.6 millionPopulation 1 1 0 millionPopulation approximately(exact figure not available)GOP per capita* US$65,800GOP per capita* US$3,800262 millionGOP per capita* US$21,100Geography No mountains.Geography Several mountainsGOP per capita* US$3,580Geography A variety of physicalfew hills; very flat landi n the north, flat i n coastalGeography Mountains, hillsfeatures + cli mate changesEconomyareasand flatlandsEconomyEconomyEconomy•Growth rate (last year): 1.9%•Growth rate (last year): 2%•Inflation rate: 1.6%•Growth rate (last year): 8.9%•Growth rate (last year): 4.6%•Inflation rate: 7.2%•Interest rate: 2.2%•Inflation rate: 7.25%•Inflation rate: 8.7%Interest rate: 6.5%•Unemployment rate: 3%•Interest rate: 7.8%•Unemployment rate: 6.9%•Unemployment rate: 7.
1 %••Unemployment rate: 8.25%Taxes•components: 8%•••New international airport••Sea ports not very efficientlya lot of training needed forcycle workers•Wage rates: rising in majorcitiesComments•to become independent.•The government willcontribute 30% towards the•Two modern seaports; high•••Not much skilled labourBusiness tax on annual•Import tax on cyclecomponents: 5%•Wage rates: highhandling cargo•Road network needs a lot of•Plenty of skilled labour•Wage rates: low but risingavailableThe country has a stablegovernment.•There are generous tax creditsprogramme to improvelabour••large supply of unskilledworkers who are used toworking long hoursAbout 70% of the population•Unions i n cycle ind ustryi n major cities are under the•Wage rates: averageage of 30.for building new factories.Government has a five-yeartransport systemComments•Road and rail network needsinvestmentfastThere are strict new laws onSeveral modern, well-runairports; low rates forSmall but well-managedinvestmentprofits: 28%TransportLabourpollution.•Good transport around theairportComments••main seaports•availablePolitical problems: people i nsome southern provinces wantTransportInternational airportlabour•Import tax on cycleInterest rate: 8%-12%Taxescomponents: 35%Has a fully integrated roadcharges for handling goodsUnskilled labour available;Business tax on annualprofits: 1 5 %•and rail network••Import tax on cycleTra nsportroads (frequent traffic jams)LabourTaxes•components: 18%Good rail network.
but poorrunBusi ness tax on annualprofits: 1 2 %Import tax on cycleTransport••Business tax on annualprofits: 22%•Taxes•There is a strong protestComments•A lot of paperwork is required•There are serious problemsmovement againstinternational companies.for new businesses.with air and water pollution.•Profits are tax free for the firstthree years after a factory hasbeen built.Scanned for Agus SuwantoSTARTING U !ija'The four Ps' form the basis of the 'marketing mix'. If you want to marketa product successfully, you need to get this mix right. Match the Ps (1-4)to their definitions (a-d).1producta) the cost to the buyer of goods or services2price3promotionb) informing customers about products and persuading themto buy them4placec) where goods or services are availabled) goods or services that are soldmIIliJ..)» (02.11-2.14 Listen to four consumers talking about d ifferent products.Decide which of the four Ps each speaker is discussing: product, price,promotion or place.Think of some products you have bought recently.
Why did you buy them?Which of the four Ps influenced your decision to buy?Tell your partner about a marketing campaign that impressed you.74Scanned for Agus SuwantoUNIT 8 •• MARKETINGFor each group of words below (1-5):Wordpartnerships•fill in the missing vowels to complete the word partnerships;•match each of the three word partnerships to the correct definition (a-c).1marketr � s � E! r c hs_g m_n t345consumerproductsalesa) the percentage of sales a company hasb) information about what customers want and needb- h -v---c) a group of customers of similar age, income leveland social groupa) description of a typical customerp r_f_l_b) where and how people buy thingsg __d sc) things people buy for their own useIa) introduction of a product to the markets h-re2""'nchI _ f_ c y c l _b) length of time people continue to buy a productrc) set of products made by a company_ n g_f r c sta) how much a company wants to sell in a periodf- g - r - sb) how much a company thinks it will sell in a periodt_rg_tc) numbers showing how much a company has soldin a periodadvertising c _ m p _ _ g nb- d g- t_g_ncya) a business which advises companies onadvertising and makes adsb) an amount of money available for advertisingduring a particular periodc) a programme of advertising activities overa period, with particular aims� )» CD2.15 Mark the stress on the word partnerships in Exercise A.listen and check your answers.EXAMPLE:D'market re'searchChoose a well-known brand for each of these categories.•car/motorbike Mercede>•food/drink•mobile phone I camera•magazine/newspaper•clothing/perfume•computer I electronic goodsFor each brand, think about these questions.1What is the product range of the brand? TJ-, e raf)9e if)clude> car>, val)) af)d truck>.2Which market segment is it aimed at in your cou ntry?3What is a typical consumer profile for the brand? Include the following:••See the DVD-ROM{or the i-Giossary.�WI!JIJage • gender • job/profession • income levelother products the consumer might buy•interests/hobbiesWork in pairs.
Choose one of the brands you looked at i n Exercise C.Discuss what sort of advertising campaign you could have for it in yourcountry. How else could you try to increase the sales figures of the brand?Exchange your ideas with another pair.75Scanned for Agus SuwantoUNIT 8 .... MARKETINGMarketingpharmaceuticalsl3ll-4)» co2.16 Richard Turner is the European Marketing Manager for apharmaceutical company. Listen to the first part of the interview andanswer these questions.1What is very important when you market to doctors?2How much time do marketing people usually have with doctors?3What are 'rational' advantages?4What are 'emotional' advantages?-4>» C02.17 Richard talks about 'the regulatory environment'.
This is wherethe authorities have official powers to control the production and safetyof drugs. Listen to the second part and complete this aud io-script extract.1 think the biggest.1 for us is the regulatory environment. The laws that we needto follow are quite. 2 - and quite rightly so. We in the pharmaceutical industry havethe same interests as the doctor. We want to help . ._J lead better lives.. . . .