LECTURE 1

ORGANISATIONAL STRUCTURES

 Formal structure – organisational chart

 Informal structure – human relations

1. Functional / line structure

 Used by start-ups and traditional companies

 Each department specialises in its own field
 Advantage: clear structure, everybody knows who they should report to and who their line
manager is
 Disadvantage: there is little chance for people in a department to experience other types of
work

2. Divisional structure

 Suitable for international companies

 Advantages: it allows the company to organise its structure around regions, customers and
products
  There is more specialisation, flexibility and speed of reaction to changes

 There is delegation of responsibility from the head office to individual regions,

and decisions are made locally

 Disadvantage: each part of the structure (department) can occur several times within the
company

3. Matrix structure

 It combines some features of functional organisation and divisional organisation:

 -traditional hierarchy of the line structure

 - more fluid management structure

 Disadvantage: - no obvious division of labor (people have responsibilities in different areas)

 -There can be a conflict of interest and the chain of command may not be clear

II. Types of managers

 Functional manager - has management authority over an organizational unit—such as a

department—within a business, company, or other organization.

 Project manager - has the responsibility of the planning, procurement and execution of
a project, in any undertaking that has a defined scope, defined start and a defined finish;
regardless of industry

 Top manager - member of the senior, top-level management of the organization (CEO, COO,
CFO)

 Middle manager - manager in an organization at a level between senior and junior managers

 Lower (line/junior) manager - manages employees who are directly involved in the production
or delivery of products, goods and/or services

 Division manager - oversees a wide range of personnel and job functions, with large
organizational responsibility while reporting to a vice president, general manager or controller

 Senior accounts manager -  has a key part of a company's sales team, whose job is to meet sales
goals; he/she is responsible for developing relationships with clients to acquire new business
and network with existing customers to retain their business
III. FOCUS ON VOCABULARY

 Responsible to vs responsible for

 + TO - when you are naming the person or group of people to whom you have a duty:

 E.g. The company president is responsible to the Board of Directors.

 We are responsible to our clients.

 + FOR - when you are naming a task that a person or group has to carry out:

 E.g. We are responsible for the program.

 Marian is responsible for overseeing the project.

 Customer-facing = dealing directly with customers

e.g. Customer-facing staff play a vital role in the experiences consumers have with a certain company.

 Liaise = to establish and maintain communication for mutual understanding and cooperation

e.g. In his new position, he has to liaise extensively with consultants and accountants on a daily basis.

 Worldwide = global/globally

e.g. We distribute worldwide through 34,234 stores on all continents.

 Strain = pressure

e.g. I have been under so much strain recently because I had to find a new job and a new house.

 Disperse - to cause to become spread widely

 e.g. The General ordered the troops to disperse over the valley.

 - to cause to evaporate or vanish

 e.g. The CEO’s statement on the radio dispersed all rumors of the company’s possible
bankruptcy.

 to pull out = to leave, to depart, to withdraw

 e.g. Because of the Corona virus, many companies have pulled out of China.

 on call = ready to respond to a summons or command

 e.g. Who is the doctor on call in the Emergency ward tonight?

 to brief: to give someone instructions or information about what they should do or say

 e.g. The interpreter was briefed by the lawyer about how she should behave during the trial.

 to debrief:  to interrogate (someone, such as a pilot) usually upon return (as from a mission) in
order to obtain useful information; to carefully review upon completion

 e.g. At the end of the project, we had a debriefing session, trying to see what went well and
what went wrong during the process of completing it.
  To express possibility: can, could, may, might

 To express probability: must

 To express certainty: will

 + short infinitive of main verb/auxiliary verb

 Do not take ”s” in the 3rd person

 Interrogative form: inversion: modal verb + subject+verb

 Negative form: subject+ modal verb+NOT

Examples

 You can apply for a scholarship for the summer school if your English is good and you are
motivated to study.

 I am sorry I could not come earlier, I was caught up in traffic.

 May I borrow your car for the weekend?

 I might be able to join the Skype session if I have good internet connection in my hotel.

 After rehearsing the presentation for so long, you must know it by heart now.
LECTURE 2

MANAGING ORGANISATIONS

1. Larry Greiner’s theory of organisational growth

Stage 1: Creativity

 Dominated by the founders of the organisation, who

◦ are usually good, creative entrepreneurs

◦ are not very fond of management activities

◦ are focused on marketing and selling products

 Emphasis: creating a product and a market

 Crisis of leadership

◦ from conflicts among managers with unwanted management responsibilities

Stage 2: Direction

 Solution to crisis of leadership: get a strong, specialised manager, who

◦ is acceptable to founders

◦ can pull the organisation closely together

 outcome: growth through direction

 responsibility for direction: new manager, key staff

 in time, lower managers want more autonomy

 Crisis of autonomy

Stage 3: Delegation

 Solution to crisis: increase delegation from top managers

 Top managers – find it difficult to let go of their power

 Lower-level managers – lack decision-making experience

 Organisations – struggle

 Lower-level employees – dissatisfied

 A decentralised organisation structure develops

 “+” – it increases motivation at lower levels

 “-“ – top managers – dissatisfied with the loss of power and control

 Crisis of control - It often leads to a return to centralisation –middle managers

 inappropriate, disliked by lower-level managers

Stage 4: Coordination
  Solution: formal systems – implemented to achieve greater coordination

 Top managers = supervisors

 Workers at lower levels – motivated by the decentralised model

 The organisation can become too large and complex to be managed through formal systems

 Crisis of red tape

Stage 5: Collaboration

 Solutions: developing teams, solving personal differences

◦ Social control, self-discipline

 Problem: employees – exhausted by too much teamwork and strain to reach innovative
solutions

 Crisis of growth – the business has run of ideas

Stage 6: Alliances

 Solution: find alliances, accept to be taken over

 Levels of hierarchy - removed

2.1 Focus on vocabulary

 Red tape = bureaucracy

e.g. He decided to leave the public sector because he could no longer put up with the red tape that he
was struggling with daily.

 Outdoor = in the open air

e.g. An outdoor tennis tournament will be organised in Iasi this year, and I look forward to it!

 Trust = an arrangement whereby a person (a trustee) holds property as its nominal owner for
the good of one or more beneficiaries.

e.g. This project will be financed by a trust that was set up 5 years ago.

 Trader = a person who buys and sells things as a job

e.g. Small, local traders are organising a March fair where you can see what they produce and buy their
products

He has been pushing me to become a currency trader but I just do not have that kind of personality, to
spend so much time following market trends and financial speculation gurus.

 a  sole trader  = a person who runs a business on their own

e.g. Being a sole trader is a risky endeavor.

 Stall = a stand, booth or compartment for the sale of goods in a market or large covered area

e.g. You can find fresh dairy products at the stalls on the left.

 Stallholder = owner of a stall

e.g. Stallholders are protesting against the poor hygiene in the market.

 Homeware – products used in the house

e.g. Now there is just one shop in town, specialising in homeware.

 to recall a product = to withdraw a product from the market

 e.g. A few years ago, Toyota had to recall thousands of cars from the European market.

 faulty = broken, not up to standards, malfunctioning

 e.g. They had to recall the product because it was faulty.

 outstanding – 1. remarkable, excellent; 2. which has not been completed, paid, etc.

e.g. His achievements are outstanding and he has been shortlisted for the Nobel Prize.

You have an outstanding debt towards our company of $34,556.

 to chair a meeting = to run/preside over a meeting

e.g. Who is chairing the meeting tomorrow?

 agenda = document circulated before the meeting which includes details about the time and
place of the meeting and the list of items to be discussed

e.g. There are 5 items on the agenda of the meeting.

 to go over the agenda = to read aloud the items on the agenda

e.g. The chair goes over the agenda at the beginning of the meeting.

 Apologies – first item on the agenda. It refers to the persons who have announced that they
cannot attend the meeting

 AOB (any other business) – last item on the agenda. It refers to any question that needs to be
discussed, and which was not planned in advance.

 minutes = document issued after the meeting has taken place, which gives a summary of the
arguments discussed and of the decisions that were made

e.g. The secretary used to take the minutes but now that she is sick, we have to ask one of the
participants to do this job.

 Adjectives vs adverbs

1. Most adverbs - formed by adding ‘-ly’ to an adjective

e.g. sure – surely

profitable – profitably

beautiful – beautifully

! Fast – both adjective and adverb

e.g. She loves fast cars.

You are driving too fast for me!

  Adverbs of degree: a bit, slightly, quite, rather, so, too

e.g. I think she is a bit shy, this is why she does not talk much.

This cake is quite sweet, I cannot eat it.

He is so rude, I cannot believe he has been hired in a customer-facing position!

 Connectors (Linking words)

 First, second, third

 then, later, subsequently, finally, eventually

 also

Present Perfect:

Form: S + HAVE/HAS+ Vb (3rd form/Past Participle)

 Used to express:

 An action taking place in an unfinished past

 A past action with a present result

 key words: lately, just, yet, already, since, for, ever, so far, this week/month/year

Past Tense:

Form: S+Vb(-ed)/Vb – second form (irregular verbs)

 Used to express:

 a past, completed action

 events occurring in the past, in a story

 key words: ago, last (week/month), yesterday, the day before yesterday, in 2003, in 1976, etc.
LECTURE 3

SUPPLY-CHAIN MANAGEMENT

Theory of SCM and logistics

Definitions:

1. Logistics = the practical arrangements that are necessary in order to organise something successfully,
especially something involving a lot of people or equipment

2. The supply chain = the suppliers, storage facilities, retailers and modes of transport involved in
getting a product from its original source to the end user.

e.g. The supply chain of coffee:

- Actors involved: the farmer, the coffee buyer, the storage company, the coffee manufacturer,
the buyer for the café, the employees working in the café, the customer

- Stages of the chain: the farmer sells the coffee; it is stored, packed and transported to the
manufacturer producing the finished goods (coffee beans are ground and repackaged); finished
goods are sold to the café; hot coffee is sold to customers

Functions of a supply chain

 Receiving and filling customer requests

 New product development

 Marketing

 Production operation

 Distribution

 Finance

 Customer services

Each stage in the supply chain is connected through the flow of materials, products, information and
funds. These flows often occur in both directions.

Supply chain goal

The primary purpose of the supply chain is to maximise the overall value generated.

Supply chain value=supply chain surplus=supply chain profitability

S C Value = the difference between what the final product is worth to the customer and the cost
incurred in fulfilling the customer request.

S C Surplus = the difference between the revenue generated from the customers and the overall cost
across the supply chain
Decision-making phases of SCM

1. Supply-chain Strategy/design decision – long term, expensive

- How to structure the supply chain

- What will be the configuration of the supply chain

- How to allocate resources

- What processes each stage will involve

2. Supply-chain planning

- Time frame: 3 months to a year

- Goal: to maximise the supply chain surplus

Result of this phase is the development of a set of operating policies that short-term operations need to
follow.

3. Supply-chain operations

- Time frame: weekly or daily

- Decisions about an individual customer’s order

- Goals: dealing with incoming orders; allocating production resources to meet individual orders; setting
a date by which an order is to be filled; setting the mode and schedule of delivery

Focus on vocabulary – nouns and noun phrases

Storage facility = a specially designed location where materials/goods/products are

kept/stored/deposited for a while

End user/consumer = customer, person who buys finished products

Supplier = a company offering raw materials or partly finished goods to other companies

Manufacturer = producer of finished products (similar terms: production facility, production unit,
factory)

Wholesaler = company which sells finished products to shops

Retailer = shop selling finished products to consumers

E-tailer = organisations selling finished products via the Internet

Time frame = period of time

e.g. Enjoying a cup of coffee makes you the end user in a complicated supply chain that you are
probably unaware of.

Amazon and eMag are famous e-tailers today.

Which other local clothing manufacturers do you know besides Deltaplan and Be you?
Focus on vocabulary – verb-noun collocations 1

To make the most of/maximise the overall value

e.g. Cutting a few unnecessary intermediaries could maximise the overall value of our supply chain…
Don’t you think so?

To increase/ raise the supply chain surplus

e.g. We need to call in an expert who will teach us how to raise the supply chain surplus.

To create/generate revenue

e.g. How do you generate revenue in a time of crisis?

To cause/incur costs

e.g. Finding ecological supplies incurs additional costs.

To assign/allocate resources

e.g. Minimal resources were allocated to this project. Its success is improbable.

To deal with/handle orders

e.g. Please, handle orders more quickly; there’s a long line of customers in front of your desk!

To fix/set the mode and schedule of delivery

e.g. The purpose of our meeting today is to set the mode and schedule of delivery within a time frame
that is convenient for both our companies.

To coordinate/configure the supply chain

e.g. Let’s configure the supply chain! Who’s in charge of transportation?

To spend time processing/filling customer requests/orders

e.g. In order to prioritise my tasks, I should know how you prefer that I mainly spend my working time
today: filling customer requests or updating the data base?

Conditionals- general rules

When – use it to show that you know something will happen, e.g. When the meeting starts, everyone
becomes quiet.

If – use it to show you are not certain that something will happen, because a condition must be fulfilled
for that thing to happen, e.g. We might finish by lunchtime if the meeting starts on time.

In case – means that you do something so that you are ready for a situation in the future, e.g. We should
save some money to survive for a while in case our company ever goes bankrupt.

Unless – means the same as except if, e.g. I’m afraid we won’t find a replacement for Sally unless we
collaborate with a headhunting agency.

Provided that – means the same as only if, e.g. We will sign the contract provided that you include a
suitable clause on product return policy.
Negotiating – stages

1. Decide what you want to achieve

2. Decide how much you are prepared to compromise

Stages 1 and 2 occur before the negotiation meeting(s)

1. Establish a relationship

2. Exchange information

3. Make proposals and bargain

4. Come to an agreement

The language of negotiations

Questions are a very important tool which can help to improve communication in negotiations.
Mastering questions helps you build negotiation skills. Questions can be used:

1. To check/clarify information, starting with phrases such as: You mean…, You mean to say that…?, Do
you mean that… ?, If I understand correctly, you’re saying that…?, etc.

e.g. You mean at the moment you’ve probably got three packing orders?

2. To find out new information, starting with: The question is…? Or with any wh-word like who, where,
when, how, which, why

e.g. What is your opinion on that?

I was wondering what your team thinks about our proposal?

When shall we meet next?

Who is your main supplier?

Why do you disagree?

LECTURE 4

CUSTOMER RELATIONSHIP MANAGEMENT

CRM – theory 1

1. Definition: CRM is management which concerns the relationship between the organization and its
customers.

2. The main focus of CRM: developing business goals and building customer relationships through:

- Exceeding customer expectations

- Managing impact on the culture of the organization

- Treating customers as partners

- Valuing relationship-building

- Considering service a value-adding activity

- Giving employees rewards based on customer focus

3. The purpose/uses of CRM:

- to increase profit by offering better customer service than competitors

- to reduce costs, wastage and complaints

- to decrease staff stress by improved services and better relationships

- to facilitate instant market research by communicating with customers

4. What do customers want?

- To have their needs satisfied by getting the benefits of cost-effective products and services

- An inclusion of their perspective in the buying-selling process and in the customer-supplier

relationship

5. Steps in building customer relationships:

- Making sure the customer’s goals and the organisation’s goals are met

- Establishing and keeping a good relationship with customers

- Producing positive feelings in the organisation and the customers

6. The importance of CRM:

- Customers are both a source of income and a source of information

- Knowing what customers want and need provides a clear focus for the company’s production
and services
  Customers are a vital factor for every organisation.

 CRM is the same for every organisation (large or small).

 CRM should meet the customers’ goals and the organisation’s goals.

 The main purpose of CRM is to increase profit.

 Good CRM reduces costs.

 The organisation must get information from customers to give them what they want.

 Customers should be treated like a partner.

 Providing service should be seen as adding value to the company.

 Good organisations manage CRM.

Focus on vocabulary 1- business terms

- Convenience = 1. a condition which makes it easier to do something and helps to avoid wasting time or
effort; 2. something that you do to make things easier for yourself or that is intended to make things
easier for you. Expressions: at somebody’s convenience, convenience food, convenience store

E.g. Please suggest a time to meet next week, at your convenience.

- Scope = the range or amount of something covered

E.g. CRM is the same in principle for large and small companies – it is the scope of CRM which can vary
drastically.

- Wastage = the amount used in an unproductive way

E.g. A clear focus of the company’s production reduces wastage significantly.

- To resource = to give a department/organisation the help or the money it needs

E.g. Forward-thinking organisations understand the need to maintain a strategic focus on CRM and to
resource it well.

Compound words can be made of :

-noun + noun (+ noun), e.g. customer service, customer relationship management, human resources

-noun + adjective, e.g. cost-effective, value-adding, relationship- building, profit-sharing, profit-making,

record-breaking, loss-making, problem-sharing, problem-solving, product-making, product-sharing,
product-pricing

E.g. In times of crisis especially, customers tend to opt for cost-effective products.

We’ve made a record-breaking $56 million in profit this year.

When you meet new clients, you should spend some time on relationship-building.

Profit-sharing schemes are a type of bonus companies can use to get managers to work harder.

Free IT support is a value-adding activity our clients appreciate.

Our product-pricing strategy means that our products cost more than our competitors’.

Abbreviations

The following common business abbreviations express types of interaction between organisations and
their customers/clients:

B2B = business to business, e.g. a wholesaler sells electronic components to companies who then use
them to make consumer goods.

B2G = business to government, e.g. the Ministry of Education signs a deal with a company to use their
computers in all state schools.

B2C = business to customer, e.g. somebody goes into a shop and buys a new mobile phone.

C2C = customer to customer/client to client, e.g. a customer writes an independent review of

something they bought on a website advertising the product.

The value-centred business approach

The value-centred approach to business refers to:

- contributions of businesses to the local community

- doing business in an eco-friendly way

- offering a wide choice of products/services which reflect customers’ values

- giving part of the company’s profit to non-profit organisations

- producing positive feelings amongst customers

A company communicates its values to customers:

- via the company website and promotional materials

- by the way they treat customers

- through correspondence or interaction with customers

- by their actions towards the environment and their own employees

Focus on grammar - Past tense simple

Form of past tense simple:

- affirmative: S + Vb+-ed or Vb – second form of irregular verbs, e.g. I studied, he wrote a letter
 - negative: S + did not/didn’t + Vb – short infinitive, e.g. I didn’t study, he didn’t write a letter

- interrogative: Did + S +Vb – short infinitive, e.g. Did you study?, Did he write a letter?

Meaning and use of past simple:

 a past, completed action: I wrote to that university last year.

 events occurring in the past, in a story: After we received that phone call from my boss, we
went to the store and returned the faulty components; then we called our office.

Specific time expressions: ago, yesterday, the day before yesterday, last +
week/month/year/summer/Friday, etc., in 2003, on January 2-nd 1978 (dates in the past), etc.

Focus on grammar – Past tense continuous

Form of past tense continuous:

- affirmative: S + past tense of “to be”=was/were + Vb (short infinitive) + -ing, e.g. I was looking for
responsible manufacturing practices, so it took some time.

- negative: S + wasn’t/weren’t + Vb (short infinitive) + -ing, e.g. He wasn’t preparing the presentation
when I checked on him.

- interrogative: Was/were + S + Vb (short infinitive) + -ing, e.g. Was he preparing the presentation when
you checked on him?

Meaning and use of past tense continuous:

- situations and actions happening over a period of time in the past, e.g. Tim was working on his PhD
thesis that summer, so he didn’t have time for any vacation, really.

- a situation in progress at a particular time in the past, e.g. In September we were making a profit.

- a situation or action in the past that is interrupted by another one (this one in past simple), e.g. I met
our new Sales Manager while I was having an online meeting with our team in Prague.

Past simple and continuous –examples of use

I found the supplier when I was looking on the internet.

When you phoned me, I was having lunch with a client.

She was doing a second job, but gave it up when she started her new job.

They found out about the product while they were attending a trade fair in Moscow.

As I was leaving the building, I saw the visitors from Dubai.

We were having a meeting when the director’s phone rang.

(past simple in green colour, past continuous in red colour)

Focus on grammar – Past perfect tense

Form of past perfect tense:

- affirmative: S + had + Vb+-ed or third form of irregular verbs, e.g. She had already written the
report last week.

- negative: S + had not/hadn’t + Vb+-ed or third form of irregular verbs, e.g. Last week, she hadn’t
written the report.

- Interrogative: Had + S + Vb+-ed or third form of irregular verbs, e.g. Had she written the report
last week?

Meaning and use of past perfect tense:

- events that happened before another action/event in the past (past of the past), e.g. By the time he
had finished the job, he was exhausted.

- To give a reason for a past event, e.g. The registration for the April workshop dropped down to
seven, because people had transferred to the one in May.

Time expressions: when, before, after, as soon as, by the time

Past perfect vs. past tense – examples of use

They had already made the decision before we spoke to them.

The order arrived just after we had sent them a reminder.

By the time we had solved the production line problem, our client had found another supplier.

As soon as we had changed the faulty part, everything worked fine.

The machine wasn’t working again, because someone had unplugged it.

I called her today, because I hadn’t heard from her since last week.

We didn’t make a decision today, because we hadn’t received all the information we needed.

We invoiced them separately for that, because that’s what they had asked us to do.

(past tense simple and continuous in yellow colour, past perfect in light blue colour)

Positive language in business relationships

Why is positive language important in business relationships?

- It helps companies to stimulate good relationships among employees (at work, in social and
team building events)

- It creates a positive work atmosphere

- It helps in building good relationships with clients

How can we provide positive feedback or express positive opinions? By using base/strong adjectives and
degree adverbs.

Adverbs used with base adjectives: very, extremely

Adverb used with strong adjectives: absolutely

Adverb used with both base and strong adjectives: really

E.g. I thought it was excellent actually.

All the feedback was very positive.

I think that was a good move.

I think it was brilliant all round.

I think they really enjoyed it.

Supportive language – other examples of use

- Do you think the visitors had a good time? – Yes, I think they really enjoyed it.

- I don’t think that meeting went too well. – Well, I’m sure it wasn’t that bad. Anyway, never mind, it’s a
learning experience.

- What did you think of my presentation? – It was absolutely brilliant!

- I sold ten of those packages today. – That’s great! Well done!

- I just lost that sale! – That’s too bad. Better luck next time!

- I’m really disappointed with our sales figures. – Don’t worry, things are sure to pick up in the spring.

- Dave’s presentation was awful. It was the worst I’ve ever seen. – Well, he’s just learning the job, so we
need to be more supportive.

- They were a bit disappointed by the fact that we couldn’t give them an exact figure. – Never
mind, I will call them with the numbers and smooth things over with them.

- That meeting was a complete waste of time. – Well, I’m sure that there were some positives in it!
LECTURE 5

ACCOUNTING

 Definition: the process of recording financial transactions pertaining to a business.

 Synonyms: accountancy, book-keeping

 The accounting process includes summarizing, analyzing, and reporting these transactions to

oversight agencies, regulators, and tax collection entities

- Profession: accountant/book-keeper

Financial statements

 Definition: written records that convey the business activities and the financial performance of a
company.

 Are intended for top management, shareholders, potential investors, tax authorities,
government regulatory bodies

 are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for
tax, financing, or investing purposes.

 Examples of statements required by governments:

 Balance sheet

 Profit and loss account

 Cash flow statement.

Parties interested in financial statements

1. Top managers – to see how the company has performed and how they can improve
performance

2. Shareholders – to spot positive and negative trends so as to make predictions about their
investment

3. External users – to see if they wish to invest in the company

4. Tax authorities – to check the company’s financial activity

 Employees – to predict job security

 Suppliers – to know how secure the finances of the company are before entering into a contract
with them

 Company’s bank – to set credit rating

 Local community authority – to predict provision of jobs for local people

ITEMS OF COMPANY FINANCES

INCOME

 Sales of products or services

 Rent on property

 Interest received on investments

EXPENDITURE

 Payment of salaries

 Purchase of raw materials

 Interest paid on bank loans

 Buying machinery

 Rent for property

FINANCIAL STATEMENTS

 THE PROFIT AND LOSS ACCOUNT = INCOME STATEMENT

 Shows the financial developments over a period of time (e.g. a quarter, a year)

 BALANCE SHEET = STATEMENT OF FINANCIAL POSITION

 Is a picture of what the company owns and what it owes at any moment

Accounting terminology

 Turnover – the value of sales made

 Cost of sales – the direct costs of manufacturing or buying items to sell them later

 Gross profit – turnover minus the cost of sales

 Expenses – the overhead costs of running a business, e.g. heating, electricity

 Net profit – the gross profit minus the expenses and taxes

 Creditors – companies to which money is owing

 Debtors – companies which owe money

 Reserves – money kept until it is needed in the future

 Overdraft – money owed to the bank

Balance sheet

ASSESTS

 Debtors

 Stock

 Reserves

 Net current assets

 Net assets employed

LIABILITIES

 Creditors

 Overdraft

 Long-term loan

 Original cost of equipment

 Methods of payment

 Credit card – the money is not taken from one’s bank account until the end of the month.

 Direct debit – money is taken from one’s bank account each month.

 Bank transfer – payment via internet banking (the bank takes the money from one’s account
and puts it into a company’s account).

 Cash – bills, coins.

 Debit card – paying by inserting the card in the machine, entering the PIN and the payment is
made from the bank account more or less immediately.

- Focus on vocabulary

- Lag = delay

E.g. If there is a lag between money coming in the company and money going out, you have a cash-
flow problem.

- fortnightly= every two weeks

E.g. I pay my canteen bills at work fortnightly.

- Balance = rest

E.g. We’ve already paid 20 % of this; when do we have to pay the balance?

- To invoice= to send the bill

E.g. We must remember to invoice them next week.

- Hassling – bothering

E.g. They keep hassling us about an invoice we have never received.

- Outstanding debts – money which people owe us

E.g. The outstanding debt from last month is more than $20, 000!

= to supplement – add to

- E.g. You could supplement your cash income by sending out the bills on time.

 Additional strain – more pressure

 Cash crisis – cash problem

 In great danger – at severe risk

 Expenditure – outflow

 On time – prompt

 Cash outlay – cash payment

 Debtors – people who owe you money

 cash outlay - money a company pays for its operating expenses. It's also called a cash disbursement
or outflow. The business may spend money on various charges, which run the gamut from material
costs to selling, general and administrative expenses.

Cash shortage (overage) - situation in which the physical amount of cash on hand differs from the book
recorded amount of cash. It is revealed when the physical cash count at the end of the day does not
agree with the cash register tape.

Cash inflow - money going into a business (from sales, investments or financing)

Cash outflow - which is the money leaving the business (payments to suppliers

A cash cow

 - a venture that generates a steady return of profits that far exceed the outlay of cash required
to acquire or start it. 

Focus on grammar (1) – talking about obligation and giving advice

 Obligation/necessity: must, have to, need to

e.g. Your invoice has to match the number of orders (obligation or necessity outside of speaker’s
control, such as a procedure or regulation).
Will she do that for me or do I have to do that myself?

I forgot to ring about that. I must do it on Monday (the speaker thinks it’s necessary, important or
urgent to do).

We need to know if you’ll really do that (not as strong as MUST).

What time do you need to leave today?

 Advice: should, ought to

e.g. I don’t think you should give them a discount.

Should I just photocopy these so that you’ve got the details?

NB: should, have to, need to – more polite, more frequently used in business situations

Mustn’t, ought not to, should not – something is not allowed or it is not a good idea

Don’t have to, don’t need to, needn’t – something is not necessary or it is not an obligation

e.g. Put it on the list to be done next month. It doesn’t have to be done today.

I mustn’t/shouldn’t be too long, Bob, because I’ve got to go at five o’clock.

You shouldn’t help him too much. He can do the accounts himself.

We’ll take care of the delivery. You don’t have to worry about it anymore.

I mustn’t forget to thank them for the invitation.

We should start invoicing in December, shouldn’t we?

 The modal verbs “must” and “should” do not require an auxiliary verb to form questions;
questions are formed by inverting the subject and the modal verb:

e.g. Must I hand out the paper today?

 “have to” – requires the use of the auxiliary “do”

e.g. Do I have to wash my hands every 5 minutes?

 “need” can be used both as a modal (inversion) and as a regular verb (+ auxiliary “do”)

e.g. Do I need to say that again?

Need I sign here as well?

Skill development – presenting facts and figures

 Verbs which describe an upward trend

  To go up

 To rise

 To increase

 To jump

 To peak

 To soar

 Verbs which describe a downward trend

 To go down

 To fall

 To decrease

 To plunge

 To plummet

Skill development – presenting facts and figures

Other verbs:

To fluctuate – rise and fall irregularly in number or amount

To level off - to approach or reach a steady rate, volume, or amount; to stabilize

To recover - to find again or obtain the return of (something lost)

Examples

- The dollar rose/increased from 111.10 yen to 111.57 yen last Friday.

- The average Japanese worker had a wage increase/rise of 4.2 % in the 12 months to December,
a real pay rise of 3 %.

- Unemployment has fallen/has decreased by an average of 11,200 over the past three months
compared with an average fall of 23,900 in the three months to March.

- The company’s share price fell back, but has now recovered.

- By June, the index (had) soared / (had) jumped/ (had) risen/ rose 23 % to $ 1,028, and finally
peaked at $ 1, 109 in December.
Prepositions + verbs and nouns describing trends

To increase/decrease + BY

(showing the amount of change)

+ FROM …. TO

(indicating the start and end point, respectively, of change)

Rise/ fall + OF

To peak, to level off + AT

(showing the level reached)

E.g. Imports are predicted to decrease by 5 % in value.

Mantell predicted that last year’s 3.8 % unemployment rate will rise to 4.3 % this year and level off at
4.9 % next year.

The cost of the project has risen from $ 24 m to an unaffordable $ 32 m.

There have been wage increases of 3% for each of the last two years.