EKONOMSKI FAKULTET SVEUŠILIŠTA U RIJECI

MULTIDISCIPLINARNA KATEDRA
Kolegij: Poslovni engleski jezik 1
Nastavni materijali

Lecture 1
Introduction to Business English

The first lecture serves as an introduction to the course. It gives an overview of the topics
dealt with within the course, introduces students to the sources and textbooks used and
presents testing procedures and the required skills and competences to be acquired at the end
of the course.

The textbooks used in this course are as follows:

1) New Insights into Business by Graham Tullis and Tonya Trappe, Longman (main
course book, Units 1-7)
2) English for Business Studies by Ian Mackenzie, Cambridge University Press (selected
extracts)
3) Business Matters by Mark Powell, LTP Business (selected extracts)

Most classes will be conducted by using one of the above textbooks. Students are required to
bring them along for each class. Additional assignments may be taken on using recent
newspaper and journal articles.

Lecture plan including the list of topics and units dealt with during the course:
1. Introduction to the course
2. Company structure – introduction of key vocabulary
3. “The Philips Story”, New Insights into Business
4. Grammar corner: Present Simple and Present Continuous, Past Simple and Past
continuous
5. Listening skills – Describing responsibilities in a company, Pat Guerin, Guinness
Ireland, New Insights into Business
6. Recruitment – introduction of key vocabulary
7. “Fit for Hiring? It’s Mind over Matter”, New Insights into Business
8. Curriculum Vitae and Letter of Application
9. Application form ; Grammar corner: The passive voice
10. Retailing – introduction of key vocabulary
11. “Richer Pickings”, New Insights into Business
12. Franchising – key vocabulary,
13. “One day in my life”, New Insights into Business; Bang & Olufsen – case study
14. Banking – introduction of key vocabulary ; The Croatian Banking System
15. “The banking industry”, English for Business Studies

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 Presenting testing procedures:

The final exam is both written and oral. The written exam is composed of two segments:
vocabulary and grammar. The vocabulary part tests students’ knowledge of basic business
terms and phrases dealt with during the lectures while the grammar part covers tenses in both
active and passive voice. The oral exams tests students speaking skills where they are
expected to be able to carry on a conversation about topics dealt with during the lectures.
In order to pass the written exam the students must correctly solve more than 50% of both the
vocabulary and the grammar segments of the test. Once he or she passes the written exam, the
student may take the oral part of the exam.

To acquaint students with the mode of testing, they are presented with a sample test.

Prior to trying to solve the test, as a group, the teacher introduces some basic business
vocabulary through a noughts and crosses game. The teacher provides a phrase and elicits
possible definitions in English or their Croatian equivalents from students organized in
groups.

Example

Number 5. OUTLET a) a store selling goods of a particular manufacturer

b) dućan
Number 25 REVENUE a) income, earnings
b) prihod
Number 11 RETAILING a) the sale of goods to the end-user, usually in small quantities
b) maloprodaja

GOLDEN BACK-UP UNDERWRITE STANDING

OUTLET
HANDSHAKE STOCK SECURITIES ORDER
ACQIUSITION LOAN MARK-UP SOLVENCY EUROCURRENCY
RETAILING COLLATERAL OVERHEADS COMMODITY REFERENENCE
STOCKPILING MORTGAGE MERGER BOOK VALUE INTEREST RATE
SATURATION REDUNDANCY TURNOVER HEADQUARTERS REVENUE

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 BUSINESS ENGLISH A1
GROUP A

1. WHICH OF THE FOLLOWING TERMS ARE DEFINED BELOW?

OUTLET REDUNDANCY TURNOVER

INDUSTRIAL UNREST MARK-UP CHARGE
DOWNSIZING BOOK VALUE EMPOWERMENT
REDUNDANT RESALE VALUE SUBSIDIARY
GOLDEN HANDSHAKE ASSET SUBSIDY
INDUSTRIAL RELATIONS MORTGAGE SURPLUS
HEADQUARTERS MERGER RETAILING
FRINGE BENEFITS MATURITY NICHE
ACQUISITION SOLVENCY BACK-UP STOCK
REVENUE OVERHEADS STOCKPILING

1. A reduction in number; a cutback

2. Strike or a condition of angry discontent of the workforce
3. A store selling goods of a particular manufacturer or a wholesaler
4. Ability to pay liabilities when they become due
5. A special incentive offered as an inducement to elect early retirement
6. Accumulation of goods for further use
7. A lucrative segment of the market
8. The number of workers hired to replace those who have left during a given period of time
9. A takeover of another company by purchasing it
10. Opposite of shortage

2. WORD BUILDING

1. Our company’s main objective is to keep ahead of the…………………. (compete)

2. Manager needs to have an ……………….. mind. (analyze)
3. He’s a very …………….worker. (rely)
4. To be a good manager you need many ……………….. (skill)
5. Most ………………. in our organization are involved some kind of training.( employ)
6. I’m ……………..whether to take the job or not. ( sure)
7. Due to our …………………. to get certain supplies, we lost the order. (able)
8. Being a currency dealer in a bank, she has to make quick decisions and be very
……………….. at all times. (decide)

9. The company’s well known in the agricultural industry, it sells mainly

farm………………- eggs, butter, milk. (produce)
10. The Personnel Director is an outspoken………………… of our reorganization. (criticize)

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Lecture 2

COMPANY STRUCTURE

“The structure of an organization can be defined simply as the sum total of the ways in which
it divides its labor into distinct tasks and then achieves coordination between them”
(Mintzberg, 1979, p.2)

A company is a business organization producing and selling goods or service. It can take on
different forms: corporation, partnership, association, joint-stock company etc.
Most people, when they think about the organization of a company, picture a chart comprised
of a set of linked boxes. Each of these boxes indicates a position or a role played within the
company with the lines denoting the main relationships – the line of authority and
communication. To be able to go further on, one must first be sure to understand what is
meant by structure. This term is widely used to describe the form of an organization. An
extremely simple structure would involve a boss and his employees, who are directly
responsible to him - a structure where the entire decision-making is done by a single person,
the owner-cum-boss.
The division of staff can take on two forms: a horizontal division of labor into different
specialist tasks – functions (e.g. marketing or production) and a vertical division that
comprises three, rather than two, levels of hierarchy – the big boss, some managers and the
workers. The structure of an organization may include the following components:

 The way people are grouped into teams or departments.

 The way activities and responsibilities are allocated.
 The line(s) of reporting from subordinates to superiors (boss), and the number of
subordinates that report to any one boss.
 The lines of communication between employees and the means of integrating different
activities.
 The monitoring of performance and the design of reward systems.

So to put it in plain English, when talking about company structure we may say that most
companies consist of three groups of people: the shareholders or stockholders, who provide
the capital, the management, who have been delegated some authority/responsibility for
overseeing the task, and the workforce. At the top of the organization hierarchy is the Board
of Directors, headed by the Chairperson or President, responsible for policy decisions and
strategy. The Board usually appoints a Managing Director or a Chief Executive Officer (CEO)
who has overall responsibility for the running of the business. The management layer is
usually subdivided into Senior, Middle and Lower management. Senior managers head the
various departments within the company which in most cases include the following:

Marketing Production
Public Relations (PR) Sales
Information Technology (IT) Research and Development (R&D)
Human Resources (HR) or Personnel Legal Affairs
Finance

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TYPICAL ORGANIZATIONAL FORMS

LINE STRUCTURE

Most organizations have a hierarchical structure with one person or a group of people at the
top of the pyramid and an increasing number of people at each successive level. The chain of
command is linear i.e. it runs down the pyramid. Each level knows who their superior and
subordinates are and which decisions they are responsible for.

STAFF STRUCTURE

Some organizations have different people working for them as assistants or advisors. These
people are incorporated into the company structure but do not have any line authority and are
not integrated into the chain of command. Their role is simply to help and advise their
colleagues in carrying out their tasks (e.g. the Assistant to the Sales Manager). Note that one
should not confuse this position with the position of Assistant Sales Manager who is
incorporated into the hierarchy and is considered as the second most important person in this
department.

FUNCTIONAL STRUCTURE

The description of an organizational structure in the previous chapter is an example of the

functional structure. The division of staff is done in accordance with the business functions of
an organization. The number of departments (functions) varies from organization to
organization depending on their size and operational complexity. In such a structure, each
department is responsible for making decisions solely concerning their function in the
company and cannot take any decisions without consulting the relevant department. For
example, the production and sales department have to consult the finance department prior to
taking any financial decisions.

DIVISIONAL STRUCTURE

Many organizations have become larger and more complex and single departments are unable
to cope with multiple costumers and in-firm service users. The company thus establishes
divisions concentrated around markets, geographical areas or products. Each division
represents a semi-autonomous business unit and has within itself several functional sub-
divisions in charge of production, marketing, sales etc.

MATRIX STRUCURE

As seen so far, all of the above-mentioned structures rely upon the vertical chain of command.
A matrix structure overlays two organizational forms: the functional and the project-oriented
structure. In a matrix structure, there are two official reporting lines – one to the manager of
the specialist function and the other to the project manager. For example, an employee
occupying a position at the intersection of the vertical and horizontal lines is required to report
to both the functional and project heads.
DEVELOPING READING AND COMMUNICATION SKILLS

1. What is understood by organizational structure?

2. How does horizontal structure differ from vertical structure?
3. Name some organizational functions. Try to describe their specific duties in a
company.
4. Describe a structure of some well-known Croatian company. How many layers of
management does it have? Is its form functional or divisional?
5. Find the meaning of the following acronyms: CEO, CFO, HR, R&D, IT, PR
6. What type of organizational form is appropriate for a multi-product firm? Explain
your choice.
7. Discuss the meaning of the term “legal entity”?
8. Why do you think there are differences in legal forms between the American and the
Croatian Company Law? Do you think such differences complicate business life?
Lecture 3

Exercises:

1.) Unscramble the following phrases and match them with the given definitions:

Doarb of torrecids
Nagaming torrecid
Niseor engagemment
Dhoraselrhs
Fowrrcoke

 A person appointed by the board who has overall responsibility for running the business
 The personnel, the people employed by the company
 A body headed by the Chairperson or President responsible for policy decisions and
strategy
 Company officers heading different departments
 Owners of the company

2.) Write down as many possible departments as you can think of: Finance, Accounting and
Control, HR (Human Resources) or Personnel, Sales, IT, PR (Public Relations), Marketing,
R&D, Legal Affairs, Production etc.

3.) Draw a chart/diagram of an imaginary company.

Compare your chart with the Philips’ chart shown on page 5 of your book. Note the
differences and give possible reasons. different size, industry, product line etc.

4.) Do task 1 prior to reading the text on page 6. Read the text and support the correct
answers by citing relevant data abstracted from the text.

5.) Do vocabulary tasks 1 and 2 on page 7.

6.) Read the text and find phrases or words that mean the following:
a) a solid ground or base beneath a building
b) produce
c) encourage, stimulate, move
d) important dates, turning points, sights
e) monitor
f) shops, stores, service points
g) set of principles or beliefs

7.) Write a summary of the text on Philips in no more than 100 words, using the vocabulary
from exercises 5 and 6. (This will be a great practice for your oral exam)
Lecture 4
Grammar corner

Exercises:

1.) Think of a company you would like to work for. Imagine yourself working for this
company. What is your function or job title? What are you responsible for? Who are you
responsible to? Does anybody report to you? What other units, departments or divisions do
you regularly have to work with? What does your typical working day look like?

Now think back about the answers you have given. What tense did you use i.e. what tense do
you use for talking about regular actions?

You use the present simple to talk about things in general or things that happen repeatedly.
e.g. I report directly to the CEO.
I am responsible for the recruitment policy of my company.
I usually try to delegate the primary selection tasks to my subordinates.

Positive:

I
YOU TRY
WE REPORT
THEY
HE
TRIES*
SHE
REPORTS*
IT
*The third person singular adds S or ES

Negative:

DO NOT
SUBJECT (don't) INFINITIVE
DOES NOT (without to)
(doesn't)
* The auxiliary verb carries the (e) s and that's why the verb is in the infinitive form without
to.
e.g. I don't do preliminary testing.
He doesn't like going to meetings.

Questions:

WH-QUESTION DO INFINITIVE
SUBJECT
WORDS DOES (without to)

e.g. Where do you live?

Who does she report to?
For activities going on at the time of speaking, we use the present continuous.
e.g., I am interviewing a candidate for the new job opening.
She is trying to do her best.
He isn't reading a book at the moment.

Positive and negative:

I AM
HE
SHE IS
IT (NOT) V + ING
YOU
WE ARE
THEY

Questions:
AM
WH-QUESTION
IS SUBJECT V + ING
WORDS
ARE

e.g. What are you doing?

Who is she waiting for?

We also use the present continuous when we talk about things happening in a period around
now for example today/this week/ this evening etc.
Is Peter working this week?
We use the present continuous when we talk about changes happening around now.
The interest rates are going up.
Note: we use the present continuous only for actions and happenings.

2.) Imagine that you are on a big ship sailing towards the USA. Finish the following sentences
to describe the current situation.
Two old men are talking and drinking at the bar. .
A young couple on the deck.
I in my cabin.
My friends in the casino.

Unfortunately, your ship is called Titanic. You hit an iceberg two hours ago.
a) What were they doing when the ship hit the iceberg?
b) What did they do when the ship hit the iceberg?
e.g. When the ship hit the iceberg, the two old men were talking and drinking,
When the ship hit the iceberg, the two old men finished their drinks and ran towards
the nearest exit.

The first sentence is in the past continuous. As we can see the past continuous is used to say
that somebody was in the middle of doing something at a certain time. The action or situation
had already started before this time but had not finished. The second example is in the past
simple. We use the past simple for actions that happened in a definite period of time in the
past. We often use the past simple and the past continuous together to say that something
happened in middle of something else. However, as can be seen from the above example we
use the past simple to say that one thing happened after another.

Past continuous
Positive and negative:

I
HE
WAS
SHE
IT (NOT) V + ING
YOU
WE WERE
THEY

Questions:
WH-QUESTION WAS
SUBJECT V + ING
WORDS WERE

e.g. Where were the two men standing?

What was the young couple doing on the deck?

Past simple
Positive
V+ ED
(regular verbs)
SUBJECT or
IRREGULAR
VERBS

e.g. They finished their drinks.

They ran towards the nearest exit.

Negative:

SUBJECT DID NOT INFINITIVE

(DIDN'T) (without to)

* The auxiliary verb denotes the past tense that's why the verb is in the infinitive form without
to.
e.g. They didn't walk.
I didn't panic.

Questions:

WH-QUESTION INFINITIVE
DID SUBJECT
WORDS (without to)

e.g. Where did they run?

Why didn't you panic?

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Put the verb into the correct form, present simple, present continuous, past simple or past
continuous.

1. She can't come today. She (visit) her mother.

2. Peter (walk) his dog when I (meet) him in the park.
3. I (get) angry. Stop doing that!
4. Who (you/go) out with during the weekends?
5. How fast _ (he/drive) when he (have) the car accident?
6. Sam usually (cook) on Sundays but last weekend she (be)
ill so she (not cook).
7. It's usually dry here at this time of year. It (not rain) much.
8. Last night he (phone) me three times while I (have)
a meeting with my coworkers.
9. Sally (be) busy when we (come) to see her. She
(knit) a pullover for her son. We (not want) to
disturb her, so we (not stay) very long.
10. When I first (hear) about the break up, I _ (not can)
believe my ears. I (think) that they (play) a trick on
me.

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Lecture 5

LISTENING SKILLS – Describing responsibilities in a company

Which Arthur was born in 1725 in Ireland and established a company whose product one
must definitely try? (If your first guess was Guinness, consider yourself a real beer drinker
and one of the rare people who guessed it right.)

Open your book (New Insights into Business) to pages 10 and 11 and do task 1. Listen to part
1 and check your answers. Pay special attention to the difference in 2 and 7.*

Go through this part of the text again and find the words or phrases defined below:

1) a blue-collar employee
2) an industrial facility
3) the work of keeping a building or machinery in a state of good repair
4) connections or dealing between employers and employees

Before doing task 3 in the textbook, try predicting the answers to the questions asked. Listen
to part 2 and see how right you were. Listen again and give full answers. Listen for the last
time and find the words or phrases meaning the following.

1) sindikat
2) radna snaga
3) menadžeri neposredno nadredeni u zapovjednom lancu
4) zapošljavanje
5) sastavljanje ugovora
6) djelatnici/radnici na odredeno

Before doing task 4, try defining, on your own, the word given or use a dictionary to look
them up. Do task 4 in writing.

Grammar corner
Now go back to beginning of the lecture where you see the * mark. I hope you have noticed
that there is a difference between these two. The first expression is in Past Simple (PS) and
the second expression in Present Perfect Simple (PPS).
Sort out the following under these two tenses and give your own examples.

 Talking about present results of past actions (PPS)

 Referring to a definite moment or period in the past (adverbs of time)(PS)
 With time adverbs since/for (PPS)
 Annual reports (PS)
 After this is the first/ second time (PPS)
 Announcing news (PPS)
 Talking about completed actions that happened in the past (PS)
 With expressions referring to “time up to now” (PPS)

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  Describing something e.g. the history of a company (PS)
 Talking about life experiences (PPS)
 Referring to a completed event in the future after WHEN & AS SOON AS (PPS)

Now try doing the following task. Decide if these sentences are correct. If they are wrong
correct them.

1. Peter’s lost his book. He can’t find it anywhere.

2. Have you seen that terrible accident last night?
3. We’ve rented a new flat. Do you want to see it?
4. Tom has rented his last week.
5. What have you been watching yesterday evening?
6. Ann has dropped out of school when she was 16.
7. I’m looking for Mike. Have you seen him?
8. I’m very hungry. I haven’t eaten anything today.
9. She hasn’t been feeling well so she went home.
10. When has this been invented?
11. Have you heard the news about Sue? She’s been sacked.
12. How many sonnets has Shakespeare written?
13. Have you read any of them?
14. As soon as I finished, I’ll get back to you.
15. I visited France three times in my life.
16. Ouch! I cut my finger. It’s bleeding.

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Lecture 6

RECRUITMENT
Recruitment refers to the process of sourcing, screening, and selecting people for a job or
vacancy within an organization. The sourcing stage of the recruitment process includes
advertising and the recruiting research. Advertising, as a common part of the recruitment
process, often encompasses multimedia, such as the Internet, general newspapers, job ad
newspapers, professional publications, window advertisements, job centers and campus
graduate recruitment programs. The recruiting research is the proactive identification of
relevant talents who may not respond to job postings or other recruitment advertising
methods. This initial research for the so-called passive prospects results in a list of prospects
that can then be contacted to solicit interest, obtain a resume/CV and be screened. The
screening and selection stage involves the assessment of candidates, their skills and
qualifications. The qualifications may be shown through resumes, job applications,
interviews, educational or professional experience, the testimony of references, or in-house
testing, such as for software knowledge, typing skills, numeracy and literacy, through
psychological tests or employment testing. The final stage involves onboarding. A well-
planned introduction helps new employees to become fully operational quickly and is thus
often integrated with the recruitment process.
Though individuals can undertake individual components of the recruitment process, mid- and
large-size organizations generally retain professional recruiters or agencies.

Traditional recruitment agencies

This type of an agency is also known as an employment agency and is situated on a physical
location. A candidate visits a local branch for a short interview an assessment before being
taken onto the agency's books. Recruitment Consultants then endeavor to match their pool of
candidates to their clients' open position.

Online recruitment websites

These sites have two main features: job boards and a resume/Curriculum Vitae (CV) database.
Job boards allow member companies to post job vacancies whereas candidates can upload
CVs and are thus included in searches by member companies.

Headhunters
Headhunters are third-party recruiters and are often retained when normal recruitment efforts
have failed. They are usually employed to fill senior management and executive level roles.
In-house recruitment
Larger employers may tend to undertake their own in-house recruitment using their Human
Resources department. In addition to coordinating with agencies mentioned above, in-house
recruiters may advertise job vacancies on their own websites, coordinate employee referral
schemes and/or focus on campus graduate recruitment.

14
DEVELOPING READING AND COMMUNICATION SKILLS

1. Define the stages in the process of recruiting candidates for a job?

2. Point out the possible differences in job content. Use your own imagination.

3. How would you advertise a job vacancy for a sales clerk? How would you advertise a
job opening for a top managerial position (for a university professor, a band
musician)?

4. Discuss your own competences to see if they fir the above description.

5. Discuss the advantages of using web recruitment.

6. Have you ever tried searching for a job on the web? Describe your experience.

7. What would be the advantages of hiring a professional agency to do the job hunt?

8. Imagine yourself conducting an interview with a job candidate: practice your skill
with several colleagues.

9. What do you think is the most fulfilling part of being a HR manager? What are the
drawbacks of holding such a position on the company?

15
Lecture 7

Exercises:

Fill in the gaps by using the following expressions:

applicant application form apply candidate covering letter

curriculum vitae or CV employment agencies job description
job vacancies references short-listed job opening interview

People in search for work look for advertised in newspapers by

companies and . When they find a
they like they decide to by sending in their and a
. (They thus become a or an ).
Sometimes companies have a ready made which you have to fill in
order to apply for the job. You are often asked to give the names of two people who are
prepared to write for you. If your qualifications and abilities match
the , you might be , i.e. selected to attend an
.

Open your book to page 14. Look at task 3 and give your opinion about the methods
sometimes used to recruit people. Which of these methods are acceptable/ unacceptable in
your opinion? Why?

Fit For Hiring? It's Mind over Matter

Read the text on page 16 of your book and give a short clarification of the title. (i.e. what does
the title suggest)

Read the text and decide if the statements on page 17 are true or false by citing relevant data
abstracted from the text.

Find the following expressions in the text and give your definitions. If you cannot define them
from the context, feel free to use your dictionaries.

Managerial (2) Skill (16)

Record of accomplishment (5) Clerical workers (17)
Propel up (5) Entrepreneurial (19)
Corporate ladder (5) Downsizing (49)
Corp. (7) Size up (70)
Co. (8) To land a job (74)
White- collar jobs (10) Performance (85)

Do you think that psychometric tests should be included in the recruitment process? What do
you think about them being introduced as a part of the university entry exam?
Write a 100-word essay stating your reasons for or/and against such testing.

16
Lecture 8
Exercises:
Where can you find the following words and expressions?

advertisement I should like Dear Ms Smith Yours truly

look forward to
previous experience information an application form
hearing from you

to apply to the
CV I am interested in Yours faithfully
position

Yours sincerely an interview job description Dear Sir or Madam

Sort the expressions into the following three columns:

Opening paragraph Body of the letter Closing paragraph

The opening paragraph refers to previous correspondence. It can state the purpose of the letter
or it can explain where you learned about the ad.
The body of the letter gives the information required: qualifications that match the employer’s
needs i.e. saying why you are interested in the position and relating your interests to those of
the company. Then you should highlight the aspects of the educational background and
business experience that relate directly to the job you are applying for. You should point out
how this will contribute to the company. It should be focused and brief.
The closing paragraph represents the conclusion and should indicate your willingness to
attend an interview.

Helpful notes:
1. If you decide to put your phone number, place it on the left hand side, so that it is not
confused with the address.
2. When writing the sender’s address in the top right corner, do not include the sender’s
name. Include the sender’s country if the letter is being sent abroad.
3. Be sure to pay attention to the difference in date writing between BE and AE. In the
USA, the month is given before the date. e.g. August 15 2001
4. The recipient’s address should be written in full as it is written on the envelope.
5. If you open your letter with Dear Mr. Smith you should end it with Yours sincerely,
XY and if you begin it with Dear Sir or Madam with Yours faithfully, XY
Miriam wrote a letter to the company which advertised the post of a junior accountant in
England whereas Lucas wrote a letter to the company which required an English speaking
Computer Operator. The paragraphs of the letters are mixed up and in the wrong order.
Put the paragraphs of both letters in the correct order
a) In which paragraph do they:
1. say why they are writing
2. talk about their previous experience
3. state the conclusion
4. explain how they found about the job opening
5. ask for further information

The mixed up letters

 Dear Ms Smith
 Dear Sir
 I enclose my CV and if required I could come to England for an interview.
 I am 23 years old. Apart from my secondary schooling I studied English at the leading
School for foreign languages in Athens and have the Cambridge Proficiency
Certificate.
 A friend in England sent me your advertisement which appeared in last Saturday’s
Daily Standard.
 I should be grateful for further details. At present I am teaching English in a School
for foreign languages in Athens but I could be available for interview at any time.
 I would like to work in England and gain experience in n accounts office. I have kept
the accounts for my father’s jewelry business for the last two years, but owing to ill-
health he is selling the business. I can speak and write in French, German and English.
 I have seen your advertisement for a Computer Operator and am interested in the
position.
 I hope to hear from you soon.
 I have also trained as a computer operator, although I have only just finished my
training and have not yet had any experience. I hope to make this my career, and am
delighted to have the possibility of employment with a company where I can use my
English.
 Yours sincerely,
Miriam Ott

 Yours faithfully,
Lucas Aristos
Open your books to page 22. Look at the outline of the application letter and indicate where
the abstracts form Fiona’s letter should go.

By looking at the letter try to predict what kind of job is Fiona applying for and what her CV
might look like i.e. what type of educational qualifications, professional skills and activities
she possesses.

Look at her CV on page 21 and see if you were right.

Prepare you own CV based on the example given in the book.

Helpful notes:

1. AE high school and elementary school vs. BE primary and secondary school
2. The term gymnasium refers to a gymnastic hall and not to gimnazija ; use
either general course high school or grammar school
3. Law School, Medical School are not high schools they are universities
4. In English you receive a high school diploma and a university degree
(Bachelor B.A or B.Sc, Master M.A. or M.Sc. and Doctor of Philosophy,
PhD)
5. Activities are quite an important part of the CV. They say a lot about the
person’s personality so do not forget to mention them.
6. References do not necessarily have to be just your former employees or
professors, they can also be your close friends and even relatives (just make
sure you have contacted them first)
Lecture 9
Just for laughs.
Find the mistakes and explain the possible misunderstandings Greg might have had.
Fill in the application from using your personal data.
NAME: Greg Bulmash
SEX: Not yet. Still waiting for the right person.
DESIRED POSITION: Company's President or Vice President. But seriously, whatever's
available. If I was in a position to be picky, I wouldn't be applying here in the first place.
DESIRED SALARY: $185,000 a year plus stock options and a Michael Ovitz style severance
package. If that's not possible, make an offer and we can haggle.
EDUCATION: Yes.
LAST POSITION HELD: Target for middle management hostility.
SALARY: Less than I'm worth.
MOST NOTABLE ACHIEVEMENT: My incredible collection of stolen pens and post-it
notes.
REASON FOR LEAVING: It sucked.
HOURS AVAILABLE TO WORK: Any.
PREFERRED HOURS: 1:30-3:30 p.m., Monday, Tuesday, and Thursday.
DO YOU HAVE ANY SPECIAL SKILLS?: Yes, but they're better suited to a more intimate
environment.
MAY WE CONTACT YOUR CURRENT EMPLOYER?: If I had one, would I be here?
DO YOU HAVE ANY PHYSICAL CONDITIONS THAT WOULD PROHIBIT YOU
FROM LIFTING UP TO 50 LBS?: Of what?
DO YOU HAVE A CAR?: I think the more appropriate question here would be "Do you have
a car that runs?"
HAVE YOU RECEIVED ANY SPECIAL AWARDS OR RECOGNITION?: I may already
be a winner of the Publishers Clearing house Sweepstakes.
DO YOU SMOKE?: On the job no, on my breaks yes.
WHAT WOULD YOU LIKE TO BE DOING IN FIVE YEARS?: Living in the Bahamas
with a fabulously wealthy dumb sexy blonde super model who thinks I'm the greatest thing
since sliced bread. Actually, I'd like to be doing that now.
DO YOU CERTIFY THAT THE ABOVE IS TRUE AND COMPLETE TO THE BEST OF
YOUR KNOWLEDGE?: Yes. Absolutely.
SIGN HERE: Aries

20
Grammar corner
THE PASSIVE VOICE (is done/was done/ will be done)
The passive voice is used when it is not necessary or desirable to mention the doer of the
action; it is also used to say what happens to the subject.

1. (O)bject —€(S)ubject

2. It is formed by the auxiliary verb to be + Past Participle of the main verb

(v+ed or irregular)

3. The verb to be is used in the original tense of the sentence; i.e. the same rules of
tenses apply to both active and passive

4. The preposition by is used if the doer of the action is important i.e. if we want to say
who does or what causes the action.
e.g. This building was constructed by Jane Doe and not by Agatha Smith.

Present Simple: am, is, are
Present Continuous: am (is, are) being
Past Simple: was, were
Past Continuous: was (were) being
Present Perfect: have (has) been
Past Perfect: had been
Future: will be
Modal verbs (present): can ,might be etc
Modal verbs (past): could, may have been etc
The apples are washed and sliced before
being put on the tables.
Your room is being cleaned at the
moment.
The house we live in was built by my
grandfather.
We were being followed all day yesterday.
This car is brand new. It hasn't been
driven at all.
The candidates had already been short-
listed before he even applied.
They will build a bridge across the river.
The lift can't be used. It's out of order.
Her books might have been stolen.

Rewrite these sentences using the passive form.

1. They haven't passed me your message.
2. Jane’s colleagues gave her a present just before she told them about the baby.
3. Nobody told me that John and Ann broke up.
4. How much are they paying you?
5. Why aren't they serving any drinks? I am going to die from thirst.
6. Has anybody told you what to do?
7. They will hold the meeting on Monday.
8. They built a new ring road round the city.
9. They are building a new hospital near the airport.
10. Ann couldn't use her office when they were there.
e.g. I haven’t been passed your message.
Your message hasn’t been passed.

21
Lecture 10

RETAILING

Retailing is a business of selling goods or merchandise from a fixed location, such as a

department store or kiosk, or by post, in small or individual lots for direct consumption by the
purchaser. In commerce, a retailer buys goods or products in large quantities from
manufactures or importers, either directly or indirectly, through a wholesaler, and then sells
these in smaller quantities to the end-user. Retail establishments are often called shops or
stores.

RETAIL TYPES

There are three types of retailing. The first is the market, a physical location where buyers and
sellers converge. Usually this is done in town squares, sidewalks or designated streets and
may involve the construction of temporary structures (market stalls). The second form is shop
or store trading. Some shops use counter-service, where goods are out of reach of buyers, and
must be obtained from the seller. This type of retail is common for small expensive items such
as jewelry and controlled items like medicine and liquor. Self-service, where goods may be
th
handled and examined prior to purchase, has become more common since the 20 century. A
third form of retail is virtual retailing, where products are ordered via mail, telephone or
online without having been examined physically but instead in a catalog, on television or on a
website. Sometimes this kind of retailing replicates existing retail types such as online shops
or virtual marketplaces such as Amazon.

RETAILING IN CROATIA

The Croatian retail market is valued at U.S. $8 billion and there is intense rivalry between
domestic and foreign companies. It is dominated by an increasing number of foreign retail
chains such as CBA, Coop Italia, Lidl & Schwarz, Mercator, Metro Group, Spar International
and Billa so domestic retailers such as Konzum, Getro, Diona are faced with a reduced market
share. In contrast to other EU countries, Croatians spend the majority of their incomes on
necessities. There is a strong correlation between an increase in disposable income and
increased spend in retail. However, as incomes increase further, a bigger part of household
income will be spent outside the retail sector in the future. The introduction of foreign
retailers to the domestic retail market has a positive influence on the retail structure
development and consumer awareness in Croatia. However, without a competitive retail
policy, the domestic retailers lack the ability to break into foreign markets, which will be
crucial for Croatia in order to join the EU. Therefore, the domestic and foreign retail structure
in Croatia needs to be continually analyzed, including the level of retail prices, trading
margins, forms of retail institutions and side services offered.

22
DEVELOPING READING AND COMMUNICATION SKILLS

1. Compare the meaning of the terms commerce and retailing. What is an end-user?
2. Try selecting three types of retailing portrayed in the text. Try to explain what type of
merchandise is suitable for each type of retailing. Why?
3. Try finding a word equivalent to necessity in the Croatian language. Is there an
equivalent for the word trading-margin? How about counter-service? Would the exact
translations from English to Croatian carry the same meaning?
4. Make a list of products you buy almost every day. Where do you buy such products?
Describe your usual shopping experience.
5. Imagine yourself shopping for fancy clothes in a situation where you can afford
anything that pleases you. Describe the store you are shopping in. Is this store located
in a shopping mall?
6. Chose a line of products you may want to sell in your imaginary store. Now picture
yourself as the manager of a retail outlet selling those products. What are your
concerns about the competition? Describe some actions you may take to win over
customers.
7. Do you believe the government should have a policy for helping domestic retailers?
What kind of help would that be? What information would you find useful in case you
decided to break into the foreign market.

23
Lecture 11

Exercises:

Match the following expressions with their definitions

1. business of selling products to the general public a. OUTLET

2. stores, shops, service points b. DEPARTMENT STORE

3. US term for shopping centers c. RETAIL CHAIN

4. shopping centers over 30,000 square meters d. CASH & CARRY

5. shopping centers under 30,00 square meters e. RETAILING

6. large shops that sell a wide variety of products

f. SUPERSTORES
(e.g. Harrods)

7. the sale of goods in large quantities to retailers g. MALL

8. a retail organization whose aim is not to make

h. WHOLESALE
profit but to provide benefits to members (zadruge)

9. a business that sells goods at discount on condition

that the buyers pay in cash and carry the goods i. CO-OPERATIVES
away themselves

10. outlets of the same retailer spread throughout the

country (world) selling a standardized selection of j. HYPERMARKETS
products

Think about the retail business in Croatia. How has it changed in the recent years? What are
the reasons for these changes? What are the problems small retailers face?

Do task 1 and 2 from your book (New Insights into Business) p. 25 and 26.

Look at the text about Julian Richer and write reasons for his success.
Write down five questions you would like to ask him about Richer Sounds. Read the text and
see if you can find answers to your questions.

Read the text and do task 3 on page 26.

Read the text and find expressions defined below.

1) One who sells goods to the general public at reduced prices

2) To authorize or give formal assurance
3) To earn or make money
4) The difference between the cost of merchandise and net sales
5) A sales talk, often high pressured
6) To fix or repair

24
 7) The general fixed cost of running a business such as rent, lighting, heating that cannot
be charged to a specific product or part of work operations
8) The rate at which items are sold and inventory replaced
9) Last numbers, out-of-date products
10) Opposite of shortage
11) Exclusive segment of the market
12) Free-lancer
13) To save or accumulate good for further use
14) Clean out stocks
15) Producer

You have been asked to prepare and test a questionnaire that will be used in a consumer
survey of customers of a chain of retail CD shop. The questionnaire will be used in interviews
with customers to collect the following information.
 customer profile
 customer satisfaction
 attitudes to mail order and e-commerce

In pairs prepare the questions to include in your survey, covering the following areas.
Customer profile
 resident / visitor
 professional and social background
 income
 regular / occasional
 level of spending
 how they discovered the store
Customer satisfactions
 service
 product range
 prices
 communication of information
 suggestions for improvement
Customer attitudes
 experience and opinion of mail order
 experience and opinion of e-commerce

You questionnaire should contain a mix of question types:

a) multiple questions
b) closed questions
c) open questions

Write a report for the chain of CD shops based on the information you obtained in the
interviews.

25
Lecture 12

FRANCHISING

Franchising is a method of doing business wherein a franchisor authorizes proven methods of

doing business to a franchisee for a fee and a percentage of sales or profits. Sometimes
however, the franchisee may receive a franchise solely for producing a particular product,
including trademark and royalty, but not the method of doing business. This is called product
franchising or trade name franchising. Various tangibles and intangibles such as national or
international advertising, training, and other support services are commonly made available by
the franchisor, and may indeed be required by the franchisor, which generally requires audited
books, and may subject the franchisee or the outlet to periodic and surprise spot checks.
Failures of such tests typically involve non-renewal or cancellation of franchise rights.
A franchise agreement will usually specify the given territory the franchisee retains exclusive
control over, as well as the extent to which the franchisee will be supported by the franchisor
(e.g. training and marketing campaigns). The franchisor typically earns royalties on the gross
sales of the franchise. In such cases, franchisees must pay royalties whether or not they are
realizing profits from their franchised business.

ADVANTAGES
A quick start, opportunities of low cost expansion, training and support
- As practiced in retailing, franchising offers franchisees the advantage of starting up a
new business quickly based on a proven trademark and formula of doing business, as
opposed to having to build a new business and brand from scratch. A well run
franchise would offer a turnkey business: from site selection to lease negotiation,
training, mentoring and ongoing support as well as statutory requirements and
troubleshooting.
- After their brand and formula are carefully and properly executed, franchisors are able
to expand rapidly across countries and continents and can earn profits without further
investment. Additionally, the franchisor may choose to leverage the franchisee to build
a distribution network.
- Franchisors often offer franchisees significant training, which is not available for
individuals starting their own business. Although training is not free for franchisees, it
is supported through the traditional franchise fee that the franchisor collects

DISADVANTAGES
Control, price, conflicts
- For franchisees, the main disadvantage of franchising is loss of control. While they gain
the use of a system, trademarks, assistance, training, marketing, the franchisee is
required to follow the system and get approval for changes from the franchisor.
- Starting and operating a franchise business carries expenses. In choosing to adopt the
standards set by the franchisor, the franchisee often has no further choice as to
signage, shop fitting, uniforms etc. The franchisee may not be allowed to source less
expensive alternatives. Added to that is the franchise fee and ongoing royalties and
advertising contributions.
- The franchisor/franchisee relationship can easily cause conflict if either side is
incompetent (or not acting in good faith). For example, an incompetent franchisee can
easily damage the public's goodwill towards the franchisor's brand by providing
inferior good or services, and an incompetent franchisor can destroy its franchisees by

26
 failing to promote the brand properly or by squeezing them too aggressively for
profits.

DEVELOPING READING AND COMMUNCATAION SKILLS

1. Define the terms franchising, trademark and royalties in your own words. You can use
the Croatian language. Now try giving simple definitions in English.
2. Select some forms of support services a franchisor might offer a franchisee.
3. What are some possible disadvantages of franchising for the franchisor?
4. What are some possible disadvantages of franchising for the franchisee?
5. The text uses some expressions you may not be familiar with: turnkey business,
leverage, sourcing and good will. Can you explain their meaning?
6. Imagine that you are a franchisor. Try stipulating a typical franchise agreement. Have
you made a list of services offered? Have you defined expected conduct by your
franchisee? Have you remembered to specify dates and fees? How about territorial
exclusiveness? Why do you think all these items are important?
7. Form groups of 4 students where two will act as franchisors and two as franchisees.
Try bargaining with each other over the terms of contract. Finally decide whether you
can, as a franchisor, give up on the regular terms? Why or why not?

27
Lecture 13

Match the phrases and their definitions

FRANCHISE MASTER FRANCHISE FRANCHISOR

MASTER FRANCHISEE FRONT END FEE OR FRANCHISE FEE

ROYALTY OR MANAGEMENT SERVICE FEE FRANCHISEE

 The right or license granted by a company to an individual or group to market its

products or services in a specific territory
 A person or a company that grants a franchise
 The amount of money paid to acquire a franchise
 The amount of money paid for continuous advice and assistance; a compensation or
portion of proceeds paid to the owner of the right
 Allows individuals or corporations to buy the rights to sub-franchise within a specific
territory
 A person or a company to whom a franchise is granted
 Is generally responsible for recruiting individual franchisees and is responsible for
providing support and training on an as-needed basis

Think of examples of franchise operations in Croatia in the following sectors:

Fast food Clothing Motor Trade

Think of the advantages and disadvantages of franchising for both the franchisors and the
franchisees.

Now look at task 3 on page 35 of your book and decide whether the mentioned points refer to
franchisees or franchisors.
Listen to the CD and check your answers.

Vanessa Stein holds a McDonald's franchise. Using the categories listed in task 1 of the
reading section, list the things you think she has to do during the day.

Read the text on p. 36 and compare your ideas.

Read the text and do task 2.
Read the text and find phrases that mean the following:

BUSINESS TERMINOLOGY
 Informal sharing of information and services among individuals or groups linked by a
common interest
 Statement of the financial position of a business on a specific date; a tabular statement
showing the debit and credit balances to be equal in a set of accounts
 An itemized bill for goods sold or services provided containing prices, the total charge
and terms

28
  A company whose business is to provide or equip other companies with goods or
services
 The rate at which new staff is hired and old staff replaced
 Informal for debit and credit account, usually done to see how you’re standing
 A list of employees and the wages they are paid
 Anonymous critic or reviewer of services offered

ADDITIONAL VOCABULARY
o To brighten, freshen or polish up again; renovate
o To be proud of; to have as a feature
o Evaluate, grade
o To express approval of; praise

Bang & Olufsen is a Danish franchisor which manufactures and sells hi-fi and television
equipment in 40 countries. Think about all the cots a potential franchisee could have and put a
figure on it i.e. how much money would one need in order to become a Bang & Olufsen
franchisee. Open your book page 41 and see how close or far off you were.

Read the franchise brochure and try to define the following terms mentioned in the brochure
(you may have to use a dictionary for some of the terms)

DISPLAY
BACK-UP STOCK
INDUCTION TRAINING
RETAIL SOFTWARE PACKAGE
PROFILED CONSUMER BASE
KNOW-HOW
VALUE ADDED TAX
TURNOVER

Now look at the vocabulary task 1 on page 40. Do the matching exercise and then do task 2.

29
Lecture 14

THE BANKING SYSTEM IN THE REPUBLIC OF CROATIA

There are currently 33 commercial banks in the Croatian banking market, the Croatian Bank
for Reconstruction and Development and 5 building societies. Six banks based outside the
Republic of Croatia have their representative offices in Croatia.

LEGISLATION

According to the Banks Act (Official Gazette 84/2002, 141/2006), a bank is a financial
institution established as a public limited company with headquarters in the Republic of
Croatia. The establishment is based on a license issued by the Croatian National Bank (CNB).
The minimum amount of authorized capital required to establish a bank is 40 million Croatian
kunas. A bank must follow the principles of liquidity and solvency, and the minimum rate of
capital adequacy must be at least 10%.

COMMERCIAL BANKS

Commercial banking services include receiving cash deposits, granting loans and other
investment of funds in one’s own name and for one’s own account, as well as issuing means
of payment in the form of electronic money.

Along with these services, it can also provide other financial services such as: issuance of
guarantees and other types of security; factoring; leasing; lending (including consumer
credits, mortgage loans and financing of commercial transactions); trading in one’s own name
and for one’s own account or in one’s own name and for the account of a client (in money
market instruments and other negotiable securities; trade in foreign means of payment; trade
in financial futures and options; currency and interest rate instruments); domestic payment
transactions and international payment transactions; collection, analysis, preparation and
provision of information on the creditworthiness of business entities and natural persons;
brokerage and agency; management of pension and investment funds; advice on capital
structure, business strategy and similar issues, and the provision of services associated with
the acquisition of shares and business stakes in other companies, and services associated with
other substantial investments; other similar services as specified in the bank’s operating
license.

BUILDING SOCIETIES

The purpose of building societies is organized fund collection i.e. collection of deposits from
domestic natural persons and legal entities and channeling these into housing loans to
Croatian nationals to meet their housing needs in the territory of the Republic of Croatia. The
state supports this scheme by financial incentives. The savers and credit users can also be
towns and municipalities if the resources are used for housing construction that will solve the
residential problems of the low-income citizens.

CREDIT UNIONS

A credit union is a financial institution which conducts business on the basis of an adequate
license obtained from the Croatian National Bank (CNB). The members of credit unions can
be only individual merchants and craftsmen whose companies have headquarters in Croatia

30
and physical persons with residence in the Republic of Croatia under the condition they fulfill
the conditions as defined by the law. Credit unions may perform the following activities:
accept money deposits of its members in domestic currency, approve loans in domestic
currency to its members, conduct daily exchange trades for members, support their members
in need when circumstances change, issue warranties for its members’ obligations in domestic
currency.

CROATIAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

Within the Croatian banking system, HBOR plays the role of a development and export bank
established with the objective of financing the reconstruction and development of the Croatian
economy. Its core activities include the financing of reconstruction and development of the
Croatian economy and infrastructure, export stimulation, funding the development of small
and medium entrepreneur, environment protection support, insurance of Croatian goods and
services from non-market risks.

CROATIAN NATIONAL BANK

The Croatian National Bank is the central bank of the Republic of Croatia. It operates
autonomously and independently, while being responsible to the Croatian Parliament. The
primary objective of the CNB is to achieve and maintain price stability.

The CNB’s tasks include the formulation and implementation of monetary and foreign
exchange policy; maintaining and managing Croatian international reserves; issuance of
banknotes and coins; issuing and revoking operating licenses for banks, bank supervision and
enactment of subordinate legislation governing bank operations; maintaining banks’ accounts
and executing payments through them, granting loans to banks and receiving deposits from
them; regulation, improvement, and supervision of the payment system; performing
operations on behalf of the Republic of Croatia as defined by law; enactment of subordinate
legislation relating to operations within its field of competence as well as performing other
operations as provided by law.

DEVELOPING READING AND COMMUNICATION SKILLS

1. Can you describe the banking system of Croatia? What types of banks exist under the
Croatian law?
2. How is the Croatian National Bank different from the other banks in the Croatian
banking system? What are its tasks?
3. What type of bank can be considered dominant in the Croatian banking system?
Explain your answer.
4. The text mentions and extensive list of services provided by commercial banks. Do
you use any of them? Which ones?
5. Explain the benefits of e-banking to consumers. Are there any benefits for the banks
themselves? Which ones?
6. You have probably noticed many legal terms in this text. Do you know the name of
the official publication in which all acts of law must be published before a law goes
into action? Can you make a list of legal terms appearing in this text? Do you know
their meaning? Try looking them up on the web.
7. Define the role of the Croatian Bank for Reconstruction and Development. Do other
countries also have similar institutions? Check it out on the Internet.

31
Lecture 15

Exercises:

Fill in the text using the following expressions:

in the black branch account high-street banks current joint account

go into the red overdraft mortgage deposit account debit card
pay off savings account standing order interest plastic
credit card interest rate

Mary has an at her local of one of the big .

She has a for writing checks, paying by and paying bills. It is a
with her husband. Normally, they are , but sometimes they spend
more money than they have in the account and they . This is agreed
by the bank up to a maximum of $500, but they pay quite a high on it. She
also has a _ or for keeping money longer term. This account
pays them but the rate is quite low. Her husband has a _ with
the same bank. Buying with is very convenient. They
what they spend each month so they don’t pay interest. The interest rate is even higher than
for overdrafts. Like many young people today, they also have a , a loan to buy
their house. As far as their bills go, they have set up a with their bank so
they don’t have to think about it every month.

Look at the text and say if these statements are true or false.

1. You talk about the local agency of a high street bank.

2. Americans refer to current accounts as check accounts.
3. A joint account is held by more than one person.
4. If you put $5000 into a new account and spend $6000, you have an overdraft $1000 and
you are $1000 in the red.
5. An account for saving money is called a safe account.
6. An account that pays a lot of interest has a high interest rate.
7. If you pay for something with a credit card, you can say, informally that you use plastic
to pay for it.
8. If you pay the complete amount that you owe on a credit card, you pay it down.

Which of the facilities mentioned in the previous text do you use?

What other services do commercial banks offer in Croatia?
What changes have there been in personal banking recently?
What further changes do you foresee in the future?

Look at the text The banking industry page 69 in English for Business Studies. Read the text
and write short headings (one or two words) for each paragraph.

Read the text and underline the key sentence(s) for each of the paragraph to be included in a
short summary of the text. Look at task 2b and check.

32
Read the text and underline all the words that you do not know. Hopefully most of them all
defined in the vocabulary task 2c on page 72.

Comprehension check

1. Are banks a profitable business? How do they make their profit? (commercial and
investment banks)
2. What is meant by the sentence that the banks have to find a balance between yield and
risk when lending money?
3. Is the Croatian banking system organized in the same way as British and American
banking? How does it differ?
4. How are interest rates determined? What is the discount rate? What factors influence
the rate amount?
5. What is Eurocurrency? Why is the dollar the world’s most important trading currency?
Does this fact still stand? What has changed?

33
GLOSSARY

advertising fee- money paid by the franchisee to contribute to the franchisor’s annual advertising and marketing
costs
authority- the right to take decisions and give orders
balance sheet- statement of the financial position of a business at the specific date, esp. a tabular statement
showing debit & credit to be equal in a set of accounts
blue chip borrower- a company considered to be without risk, very safe large companies
blue-collar worker unskilled or semiskilled industrial employee
board – a committee, a group usually in charge of something
bonus- money or sth else given in recognition of good work
book value- official value of an asset
cash card- a plastic card issued to bank customers for use in cash dispensers
cash dispenser- a computerized machine that allows bank customers to withdraw money, check their balance,
etc
cash machine or cashpoint (US ATM)- cash dispenser machine
cashflow- funds received and expended by a business which is often analyzed into various components
central bank- the bank that looks after the government’s finance and monetary policy and acts as a banker to
other banks
charge- an amount of money paid for services or goods: money charged by a bank for services s.a. paying
cheques
cheques (us checks)- pieces of paper provided by banks that has the same value as cash (the sum of money
written on them is later taken from one’s account)
clock-up - earn or make money
collateral- anything that acts as a security or a guarantee for a loan
commercial or clearing banks- banks offering a wide range of services for general public and businesses,
including accepting deposits, making loans and managing customer’s accounts
commodity- a product or an article of commerce
company- a system designed to perform functions and tasks in an efficient way, using people and machinery
conglomerate- a group of companies, operating in different fields, that have joined together
contract out - take on outside firms or individuals to produce goods or do a job
co-operatives- an organization whose aim is not to make profit but to provide benefits to members
core activities - basic businesses
credit card- a card which guarantees payment for goods and services purchased by the cardholder, who pays
back the bank or finance company at a later date
current account(GB), checking account(US)- one that generally pays little or no interest, but allows the holder
to withdraw his or her cash without any restrictions (tekusi racun)
cut-price retailer- one who sells at reduced prices to the general public
decentralization - dividing an organization into decision-making units that are not centrally controlled
delegate (authority)- transfer the right to take decisions and give orders to lower levels in the company
department stores- large shops selling a wide variety of products, usually from a city centre location
deposit account(GB), time or notice account(US)- one that pays interest, but usually cannot be used for paying
cheques (GB), or checks (US, and on which notice is often required to withdraw money
deposit(v); deposit(n)- to place money in a bank; money placed in bank
deregulation- the ending or relaxing of legal restrictions
downsizing - a reduction in number; a cutback
empowerment – delegation of official or legal authority to otherwise subordinate levels
end-of-line products- last number, out-of-date products (e.g. the last pair of shoes in a store)
fixtures and fittings- law, property; things s.a. lights etc that are fixed or fastened to a house or building and are
included as part of the property when it is sold
foreign currency- the money used in countries other than one’s own
franchise- the right or license granted by a company to an individual or group to market its products or services
in a specific territory
franchisee- an individual or company/association holding a franchise
franchising- a business system in which a company (or a franchisor) sells an individual (or franchisee) the right
to operate a business using the franchisor’s established system or format
free-lancer- an independent
fringe benefits - additions to regular salary or wage
function – a specific activity in a company e.g. production, marketing, finance

34
giro account - direct transfer account (žiro racun)
glocalization- conflict between globalization and localization , meaning companies that want to become global-
successful in foreign countries, have to be aware of the local cultural characteristics that affect the way business
is done, and try to learn the particular culture as well as harmonize with it
golden handshake - a special incentive offered as an inducement to elect early retirement
gross/ gross profit margin- the difference between the price that the product or service is sold for and the cost
of producing it, without including overheads
headhunters - specialist trained to find and recruit people for very important jobs
headquarters - main offices
hierarchy –a group of persons or things arranged in order of rank, grade, and class
home banking- doing banking transactions by telephone or from one’s own PC, linked to the bank via a network
hyperstores- stores extending to area over 30 000 m2
implement - put into practice
industrial relations -connections or dealing between employers and employees
industrial unrest – strike; a condition of angry discontent of the workforce
internship - period of service in order to gain practice and expertise written statement of character, reference -
qualification or ability as of someone seeking a position; testimonial
invoice- an itemized bill for goods sold or services provided containing prices, total charge and terms (faktura)
know-how- intellectual capital
liquidity- available cash, and how easily other assets can be turned into cash
loan- a fixed sum of money on which interest is paid, lent for a fixed period, and usually for a specific purpose;
bank credit (kredit)
(loan)maturity- the date when a loan becomes repayable
lucrative niche- exclusive segment of the market
maintenance -the work of keeping a building or machinery in a state of good repair
mall- shopping centre (us) = shopping centre- a large variety of stores in the same location
manage - run or lead for example a company
manufacture - produce, turn out
manufacturer- producer
market/-ing research- the activities involved in obtaining information about a particular market, including how
much of the product is being sold, who is buying it, why they are buying it etc, or information about what they
might buy
master franchisee- a leader/manager who might be appointed by the franchisor to supervise the business in a
particular area
merchant banks- bank specialized in offering services for companies or corporate customers rather than the
general public
monitor - supervise, control
mortgage- a loan, usually to buy property, which serves as a security for the loan (zalog, hipoteka)
networking- informal sharing of information and services among individuals or groups linked by a common
internet
opening stock- money needed to run a business
operating margin- the difference between the cost of merchandise and its retail price (razlika izmedu prihoda i
rashoda)
operations manual- a short brochure/book which contains all the information about how to operate the business
(provided by the franchisor)
outlet - shop, store or service point
overdraft- an arrangement by which a customer can withdraw more from a bank account than has been
deposited in it, up to an agreed limit; interest on the debt is calculated daily
overheads- the general costs of running a business ( s.a. rent, lighting, heating) not related to particular product
or services; operating costs
patent – the right to make or sell an invention
petrodollars- the value of $ according to the price of petrol
plant – a factory or a workshop etc. where a product is manufactured
policy - an agreed course of action
portfolio management- taking care of all a client’s investments
practice - the way of doing business
profit- positive financial results
recruitment - the process of hiring
redeployment - moving individuals from one position (job) to another within the company
redundancy -the state of being superfluous or no longer needed
resign- to give up a job or position

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resume - curriculum vitae
retail chain- outlets of the same retailer spread through the country (world) selling a standardized selection of
products
retailing- business of selling products to the general public
royalty or management services fee- money paid by the franchisee to franchisor for continuing advice and
assistance, usually calculated as a percentage of annual turnover
senior management - company officials heading different departments
skill - ability, proficiency, expertness gained through training or practice
solvency- ability to pay liabilities when they become due
standing order- an instruction to a bank to pay fixed sums of money to certain people or organizations at stated
times
stock turnover- the rate at which items are sold and inventory replaced
stock up - save, accumulate goods for further use
stockbroking- buying and selling stocks or shares for clients
stockpiling- accumulation of stocks or supplies
strategy –a planned series of action
subordinates- people on lower level of hierarchy, led by people (managers) on higher position
superior - high and higher in order, status, rank
superstores- stores extending to area under 30 000 m2
suppliers- companies that provide goods for retailers
surplus- opposite of shortage
takeover- when a company buys or acquires another one
trademark- a name, sign, or design used on a product to show it is made by a particular company, they are
protected by law
turn out - produce, manufacture
turnover- total sales
underwrite securities- to guarantee to buy all the new shares that a company issues, if they cannot be sold to the
public
warranty- a written guarantee
white-collar workers - clerical employees
wholesale- the sale of goods in large quantities to retailers
workforce - the personnel, the people employed by a company
working/ operating capital- money used by a business to carry on production and keep trading (ex.: to pay
employees and suppliers before money is received for good sold)
yield & risk- profit and loss

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