Sales for the last quarter of 2015 for the first time in six years we have fallen short of our quarterly sales target (by approximately 3 %) and while this was a disappointment to the whole of our team there are some simple explanations for the poor results. I understand you have already been given a detailed breakdown of the sales figures.
Overseas Division
The recent falls in the value of the US dollar have had an adverse effect on our sales in that part of the world. We find ourselves in an extremely competitive market, with a number of domestic companies already undercutting our prices. We have until now managed to retain our 10 % share of the market, but the further decline of the dollar has put new pressure on us.
New Products Division
This is the other area which has produced disappointing results. The explanation here is, as you will know that the Head of the Division recently suffered a heart attack and will not be returning to work. His replacement, Michael Graeme, had to be brought in from outside the company. While I am sure he will soon bring about a recovery, there has been a temporary downturn in sales in this division.
Action being taken
every member of my team has been made aware of the seriousness of the situation and I am glad to say that from the projections in front of me it looks as if our total sales are once again beginning to rise, please let me know if you require any further details.
Richard Grieves
Task 12. Reading 5
Getting started
▪ What do you know about the concept of “decision-making”? Discuss it in small groups.
▪ Think about situations when you are to make a decision and choose between alternatives: what influences your choice.
▪ Now read the text and check your ideas. Consult Vocabulary p. 140– 141.
When we talk about making decisions in business we tend to think of the major decisions which are made from time to time, such as the decision to go ahead with the Eurotunnel Project, or the decision to appoint a new chairman for the National Coal Board. The fact is that a multitude of decisions are being made in business every day. Certainly there are major decisions in process as the boards of directors and chief executives in large public companies decide to enter new markets, spend millions on new plant and machinery or advertising campaigns, and buy new buildings or make take-over bids against their most threatening competitors. Yet, for every one of these monumental decisions there area hundred thousand decisions made by more ordinary mortals.
In fact, man is a decision-making animal. He is continuously making decisions every moment of his life. Many of us wake in the morning to the sound of an alarm clock. Here is our first decision of the day. Should we turn off the alarm and go back to sleep? Or should we turn off the alarm and get up? There is even a possible compromise. We can turn off the alarm and stay half awake for another few minutes.
We come down to breakfast and face another decision. Do we have toast or cereals? One or two slices? And what about something to drink? Fruit juice or tea? Coffee? Black or white?
Breakfast over we move on to the next bout of decision- making. What shall we wear today? The black shoes or the brown? Shall we take a raincoat or an umbrella? Shall we go by bus or tube? The decisions we are obliged to make are endless, and interestingly, all the decisions we make, to the extent that we are logical in our approach, are dealt with in precisely the same way.
We are confronted with a problem. We then look for the alternative solutions to the problem, weigh up the advantages and disadvantages of each and select the one which gives us most pleasure and least pain. In business terms we are looking for the options which allow us either to achieve our objectives at the lowest possible cost, or allow us to emerge with the greatest profit.
Take the case of the Eurotunnel. As Britain is now a member of the European Community, her trade with Europe is growing. Unlike the other members of the Community we are an island, separated by an inconvenient expanse of water. Do we build a bridge? Or a tunnel? What would be the advantages of a bridge? And the disadvantages? What sorts of tunnels are available? What would be the benefits of a road tunnel as compared to a train tunnel? How much would each of the alternatives cost? And how much would they cost to maintain? How much traffic could they take? How much revenue could they be expected to earn? And who would provide the funds? These were the questions which needed to be answered by the French and British governments and their respective entrepreneurs before any decisions could be made.
These are, of course, monumental decisions, but the basic principle is the same: the advantages and disadvantages of the various possible alternatives are weighed up and an option is chosen. That is how all our decisions are made.
Task 13. Talking Point 4 – Brain storming
▪ Consider three careers which might be available to you. Make a short list of the potential merits and demerits of each and then decide (and indicate) which of the careers you would prefer.
▪ Make a list of the likely merits and demerits of the Eurotunnel and then decide (and indicate) whether you think Britain do benefit from this venture.
▪ Consider where you will take your next holiday. Make a short list of the options and write under each the merits and demerits of each of the proposals. In the light of your analysis where do you think you will be taking your next holiday? Consult Speaking References p. 126–130.
While preparing, make up a table where you put down all the pros and cons.
Table 1
Available Careers: pros and cons
Task 14. Vocabulary 4
Read the passage filling in the blanks, using words from the list below:
The problems confronting a manager are likely to be and varied and it is not suggested they can always be ________ by reference to a rigid formula, but an analytical and ________ approach is certainly to be commended. Whether the decision ________ to personnel, finance or marketing, the ________of the process are the same.
First, the ________ must be defined. Where it is________ it may be necessary to break it down into parts. All the relevant facts should be and the various aspects of the situation brought together. Then the full ________of alternatives (or options) should be considered. A choice will have to be made between the alternatives and this ________ weighting up the pros and cons of each of the alternatives, before deciding on what ________ to be the best solution in the given circumstances. What is best in the ________ may not be so appropriate in the long-term – and vice versa.
In a business ________ the decisions will be made in terms of a ________ evaluation. The best alternative will either be the option which gives the greatest profitability, or the one which allows a given goal to be achieved with the ________expenditure.
At this ________ the decision is still in the mind and it now requires implementation. Subordinates need to be told what is ________ of them and their ________ need to be monitored to make sure they are ________ with the instructions.
Subordinates are often given the ________ to participate in the phases of the routine. They can information and usefully discuss a situation with their manager.
However, the ________ between the alternatives is the manager's prerogative, since he ________ responsible for outcome.
Task 15. Writing 2
Study the information given below about Juniper LTD and write a report. Consult Writing References, see Appendix III p. 134.
Juniper