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These are some of yourreasons. Add any other points you can think of.•••••The open-plan office in the new building will be unpopular with staff. Most people liketo have their own office.Young, talented graduates will not want to work in Beauchamp. They will prefer to bein Paris, so there will be a recruitment problem.Some workers may choose to stay in Paris, but travel 120 kilometres each day to thenew building. They will be tired and stressed, which will affect their work.The move will have a bad effect on the work-life balance of most staff.Overseas visitors enjoy coming to the European Head Office i n Paris. Will they enjoystaying in a small, northern, industrial town?6 Money, Case study, page 59New Formula XF anti-wrinkle creamDescriptionThe anti-wrinkle cream is based on a secret formula.
You visited a tribe in the Amazonjungle last year. The women had beautiful skin because of a cream they put on their faces.They taught you how to make the cream. The product will be aimed at women over 30.Why you want the moneyTo manufacture the product, launch and market it.Advantages for tycoonsYou tested the cream with 200 women volunteers; 90% said the cream smoothed theirskin and got rid of their wrinkles.
The product should be a world-beater.Turnover/profit projectionsYou do not have a business plan or turnover/profit projections. You want the tycoons toprovide you with expertise in these areas.Negotiating termsYou want the tycoons to invest $400,000 for a 30% stake in your business.You may invent any other information you wish. Note: it is likely that the tycoons will askfor a bigger stake in your business.
You must decide if it is worth increasing your offer.Try to predict what questions they will ask you.141ACTIVITY FILE8 Human resources, Skills, Exercise C, page 79Employment agency consultantYou will receive a call from the Human Resources Manager of Dolphin Department Store.The manager will ask you some questions. Here are the details:•••••••9An introductory fee is charged: 25% of worker'S first pay cheque.The hourly wage for temporary workers is €12.There is a minimum charge of four hours per day for all temporary workers.Overtime: company pays time and a half; Saturday/Sunday rates: double the hourly rate.Agency is responsible for work permits.Travel expenses of workers paid for by the client.The agency bills clients each week for the total hours worked by tem porary staff.International markets, Case study, page 89Information file: West Coast ApparelModelsYou are interested in ordering all three models - at the right price.QualityYou will emphasise in your marketing that all the models in the collectionhave been made in Argentina - a guarantee of their quality.
You do not wantany of the manufacture of the models to be outsourced.QuantityYou want to place the following first order:ModelQuantity(Iubman500Nightrider1,000Look800You are sure that the Nightrider and the Look will sell well. However, you arenot certain that you can sell large quantities of the (Iubman. Americans arevery price-conscious at the present, due to the current economic situation.Pri cesPampas Leather have quoted these unit prices:Clubman$380Nightrider$280Look$150Note: prices include all delivery costs to your specified US port.142PaymentBy bank transfer.
You would like to pay 50% of the order immediately andthe remaining 50% one month after receiving the goods.DiscountsAs you are such a large company and have placed a substantial order, youexpect an introductory discount of at least 5%.DeliveryPrompt delivery within five days of the agreed date.GuaranteeThree years for all the models except the Clubman. You would like aguarantee of five years for this model.ACTIVITY FILE11 leadership, Case study, page 111Director 2In your opinion, the company should d o the following:ooooBuy smaller specialist companies and build them up, e.g.
firms making golf bags andballs. There will be less competition in selling these products.Reduce the company's endorsements of top sportspeople. Instead, it should pay well·known sportsmen and women to advise the company on new products. This will leadto more product innovation.Focus more on developing products with revolutionary designs and higher prices. Thiswill help to improve profit margins.Keep the present style of management and introduce a cost·cutting programme, withthe aim of reducing costs by 20% in the next year to help profitability.Prepare your presentation. You may add any other ideas of your own for improving thecompany's performance.12 Competition, Case study, page 119Supplier1You represent Rashid Singh Enterprises. These are the terms you can offer.ooooDelivery: by sea; 1,000 necklaces and bracelets i mmediately on receipt of an order,remaining 4,000 by 1 5 November; earrings: 3,000 by 30 November - products notavailable from stock, as important customers have already placed orders.Trade discount of 2% off list pricesReturned goods: unsold goods may be returned within one month and the amountcredited to the customer's account.Guarantee: one year (bracelets, earrings), but two years for necklaces1 Brands, Skills, Exercise0,page 11Student CI n your opinion, the Cecile line has a lot of sales potential.
You think the products andbrand name are excellent. However, you believe the products are not promoted in the rightway and not sold in places which reflect the high status of the jewellery. You want:oooooto pay a famous film star to endorse the jewellery and wear it as often as possible.to spend a lot of money on a creative television commercial to advertise the jewellery.to sell the jewellery only in a limited number of high·c1ass jewellery and departmentstores and at airports.to have a new slogan which reflects the upmarket status of the jewellery.a top designer to create a new range of jewellery which can be sold under the Cecilebrand.
You think the present range is too limited.4 Organisation, Skills, Exercise F, page 41Student 0This is your first time at this conference. You don't know anyone.1Decide on the following:•ocompany namedepartment you work foro•activity / area of businessrecent activities2 Introduce yourself (and your company) to people at the conference. You enjoy talkingabout your company. You are looking for new business contacts.143ACTIVITY FILE4 Organisation, Case study, page 43Manager BYou are in favour of the relocation.
Listen to the opinions of the other members of thecommittee. Try to persuade them to agree to the relocation. These are some of yourreasons. Add any other points you can think of.••••••Relocation will reduce costs and boost proAts in the long run.Having everyone on one site will improve communication.Excellent facilities in the new building will motivate staff. For example, there is atop· floor cafe, fitness centre and a swimming pool in the basement.Relocation grants and tax incentives will be available from the local authority in the area.Overseas visitors will enjoy the surrounding countryside.There are several cheap hotels in Beauchamp and the surrounding area.4 Organisation, Case study, page 43Independent Management ConsultantYou have advised many companies on relocation.
You think the relocation would be goodfor the company. Add any other points you can think of.•••The new building will have a large, open·plan ofAce, which is very good forcommunication and staff relations.Teamwork should improve in the new building because there is a spacious loungewhere staff can relax and share ideas.InStep will help staff to relocate. The company will provide:-vans to help them move their belongings;-subsidised meals in the canteen;-child care facilities (creche);-petrol subsidies;-fiexitime working hours for staff with young children.6 Money, Case study, page 59On-the-Spot car cleaningDescriptionTwo years ago you started up a business, hiring and training unemployed youngstersto clean cars in car parks and garages in Atlanta.
You provide modern, high·poweredequipment. This enables your workers to clean car interiors and exteriors quickly andto a high standard.Why you want the moneyTo expand your cleaning service to other cities in Georgia.Advantages to tycoonsThe business is providing work for unemployed people. This would be good for thetycoons' image.It is a very successful local business.
Last year's turnover was $1.5 million. ProAt: $O.3m.Tu rnover/profit projectionsYear 1 : $2.5m/$0.5mYear 2 : $4m/$0.8mYear 3: $6m/$1.4mNegotiating termsYou want the tycoons to invest $500,000 for a stake of 20% in your business.You may invent any other information you wish. Note: it is likely that the tycoons will askfor 0 bigger stake in your business.
You must decide if it is worth increasing your offer.Try to predict what questions they will ask you.144ACTIVITY FILE6 Money, Case study, page 59TycoonsThe entrepreneur(s) will give a short presentation of their product/service, then they willanswer your questions. You decide whether to invest in their project and on what terms.You normally ask for a bigger stake than the amount the entrepreneurs offer.Here are some suggested questions. Try to add three questions to the list.•••••••Tell us about your background.•Where did you meet?•Do you have a business plan?How would you describe the market for your product?What is special about your product/service?What are its USPs (unique selling points)?•••How much of your own money have you spent on it?What about competitors?What are your forecasts for (a) turnover and (b) profit?What do you want from us, in addition to money?Who will make your product?How will you market your product/service?Do you have a patent for it?Note: If you are working with another tycoon, you may wish to offer the whole o{the stoke yourself inorder to make as much profit as possible.
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