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respect was established. It resulted in a cooperation arrangement between two firms to develop a new dynamic RAM chip. Each firm felt it needed a partner to minimize risks.

The relations with Hitachi have changed corporate culture of Texas Instruments. Now, rather than trying to invent all of its new products, the firm has arrangements with other companies, from small US companies to big innovative Taiwanese businesses. This practice showed a new realistic way to success in the complexity of the global markets.

Notes: 1 – союз;

2- предъявлять судебный иск.

Make up a list of key words to cover the content of the text. Summarize what was told in the text in two or three sentences using key words.

Text 4

Franchising or granting a franchise is one of the ways to get into business. Franchising is the right to use another firm‟s name and products to market them within a specified territory. Examples of successful franchising are not hard to find – fastfood restaurants, service stations and small retail stores can be found everywhere, especially in the suburbs and along highways.

Franchise outlets are also common in shopping malls. “Any business that can be taught to someone is being franchised” – experts say.

Let‟s examine the roles of different participants in a franchising agreement. The franchiser is the business that grants the franchise license along with exclusive territorial distribution, use of its emblem and other benefits, such as training and marketing assistance.

The franchisee is the person or group that buys the franchise, obtaining the right to use the franchiser‟s organization name and trademark and paying a fee or royalty in return.

Franchising has several distinct advantages and disadvantages. Often, what is an advantage to the franchisor is a disadvantage to the franchisee, and vice versa.

Let‟s study franchisor’s pluses. For a franchiser the big advantage is that he can expand the distribution of its products without making major capital expenditures. The franchisee is usually expected not only to pay the franchiser a fee for the right to open a retail outlet, but also to raise the money needed to build and equip the facility. This requirement greatly reduces the capital

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outlays required of the franchiser. And the franchisor gets a hardworking and highly motivated local person as his representative.

Another advantage is for the franchisor is that several sources of revenue can be built into the franchise agreement. These include initial fee to obtain the franchise, a percentage of gross operating revenues and profits from selling the necessary supplies to the franchisee. The franchisor supplies the franchisee‟s outlets with products ranging from hamburger meat (if it is

McDonald‟s outlet) to computer forms and charges a fee of 5% from monthly sales.

The main disadvantage for the franchisor is loss of control. If the franchisee does not maintain the proper standard, it will reflect badly on the franchiser‟s reputation. That is why some businesses, a hotel chain La Quinta, for example, does not franchise their property.

Pros and contras for the franchisee. The biggest advantage for the franchisee is the assistance provided by the franchisor in establishing the business. Such assistance may include sitelocation recommendations, help in obtaining local bank financing and instruction in the day-to-day operation of the facility.

McDonald has become international by a wide spread of franchising. The company offers the most extensive program of training for its franchisees.

The franchisee also benefits from the franchisor‟s efforts at promotion on the local market (advertising, market research studies, the development of new products and services).

The first and greatest disadvantage is that the franchisee is normally expected to raise most of the capital to begin operations. Another disadvantage, particularly for successful franchisees, is that a big portion of their sales revenues is sent back to the franchisor. In one word, franchises are expensive.

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Note: Pros and contras (Latin) – за и против

Task 5

How much new have your learnt about franchising? Answer the questions.

1.Is the franchising system widely spread?

2.What is franchising?

3.What are the most common examples of franchised business?

4.Why do companies grant franchise?

5.What is the best and simplest definition of a franchisor?

6.What are the benefits of a franchisor?

7.Why do some companies refuse to grant a franchise?

8.How can franchisees benefit from getting into business this way?

9.Is it always easy to make good profit for a franchisee?

Task 6

Discuss the pluses and minuses of franchising using the table.

Generally all companies have similar structures. The Structure is often substituted with the word hierarchy. If it is a corporation with, may be, hundreds of owners who are shareholders, then the hierarchy of the corporation may begin with the Board of Directors (see the organizational scheme below).

The Chief Financial Officer (CEO) usually has the title

“Vice president Finance”. Normally he supervises the functions of the Treasurer and the Controller. The Treasurer staff carries

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out the activities involved in the management of corporate funds, and the controller‟s staff handles tax and the accounting-related tasks.

This organization chart applies to big companies. In smaller companies the 12 finance-related positions may be compressed into two, three or one position.

The word manager is very common in denoting heads of the departments, or directors, so in many companies it is used instead of the words denoting all top positions in the firm.

Board of Directors

Chairman of the Board of Directors

Task 7

Study the organizational scheme of the company and reproduce it in Russian. Remember that CEO is Chief Executive Officer. It

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may also be called Chief Operational Officer. Titles may vary in different companies.

Task 8

Study the description of the top management duties and remember what each manager does.

How top management is introduced. Let‟s get acquainted with a medium-sized company from UK. It is NORTHWEST ENTERPRISE INCORPORATED. You will read about different people and their responsibilities. These are not definitions of their duties from the official document, but pieces of a conversation when different people were introduced to a Managing Director of a Russian production company from Siberia, which is their possible partner in a joint-venture.

Jeff Peterson is the Chairman of the Board of Directors. He plans, coordinates and supervises everything.

Antony Anderson is a Managing Director. He is in charge of the day-to-day running of the company. All managers of the company report to him.

Jane Mayers is the Chief Accountant. The Accounting department maintains financial records and provides accurate and timely financial information.

Michael Simon is Finance Manager. He looks after securing funds for all phases of the corporation business operations. He takes funds from the activities not doing well and puts them into the promising ones.

James Davis is a Marketing Director. His main tool is knowledge of what the customers want.

Production Manager is John Thompson. He is responsible for the production process and innovations which allow the company‟s products to be competitive.

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Barbara Baines is a Personnel and Training Manager in Northwest Enterprises, Incorporated. Decisions on personnel have a key influence on the company operation, so she is a very important person in the top staff.

Task 9

This is a Memo (memorandum). Choose a person from the list of top managers and make a phone call reminding politely about

Mr. Tomilin’s visit on the 11th of September.

NORTHWEST ENTERPRISES, INCORPORATED

Memorandum

September 10, 2014 To: Managing Personnel

From : Jeffery Peterson, Chairman of the Board of Directors

Re: Meeting with the Managing Director of the Russian Company TOMIBOR.

The most recent information is that Mr. Tomilin, a Managing Director of TOMIBOR is arriving tomorrow September 11. TOMIBOR is a Russian Production company, very dynamic and forward looking. We are interested in exploring the possibilities of forming joint-ventures with TOMIBOR.

The managing staff are all invited to a meeting with Mr. Tomilin, which to be held on September11, 2014 at 2 pm in the Executive Managing Room.

Everybody should come with ideas and questions concerning future cooperation.

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Task 10

Translate the words beginning from the smallest type of business in the USA and the terms associated with its operation. Then translate «large business words”.

A partnership, a private limited company, a public limited company, a corporation, shares or stocks, a board of directors, a chairman, a president, a vice president – finance, a sole trader / individual partnership, liability = responsibility for debts, the stock exchange, a managing director, a corporation.

Task 11

Match the English verbs in the left column and the Russian verbs in the right column. Подберите английским глаголам русские соответствия. У вас должен получиться список из 17 глаголов.

Task 12

Grammar revision. Choose the correct variant of verb forms in brackets. Be attentive choosing between Passive and Active forms.

1.Noncommercial organizations (form / are formed / is formed) to spread ideas or for charity work.

2.When the company is listed at the stock exchange and (is offered / are offered / offers) shares to the public, it is called PLC.

3.In a partnership responsibility, profits and losses (share / are shared / is shared) by the partners as stated in the partnership agreement.

4.He (was promoted / promotes / promote) to the position of a Marketing manager.

5.At an annual meeting of shareholders they (elect / elects / are elected) the board of directors to manage a company.

6.Small business (are owned / is owned / owns) by one person.

7.Noncommercial organization (aren‟t earn / don‟t earn / doesn‟t earn) money, don‟t have profit and don‟t pay taxes.

8.They (provide / are provided) all the accounting information of the company.

9.Corporations (pay /are paid/ are paying) the largest amount of money to the Government in the form of taxes.

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