UNIT 2. COMPANY’S STRUCTURE




Warming up

Ex. 1. Read the text and answer the questions below.

There are many different types of companies. Most large corporations are public limited or joint-stock companies, which means that shareholders who wish to invest in the company can buy and sell parts of the company on the stock exchange. Many are multinationals with subsidiaries and assets in various different countries and they generally engage in mergers with other companies and acquisitions in order to expand. However, the large corporation is increasingly under threat from growing number of dotcoms set up by entrepreneurs.

1. What types of companies are mentioned in the abstract?

2. What threats do large corporations face?

3. What are dotcoms?

Ex. 2. Work in groups. Discuss the following questions.

If you are still studying:

1. Whatkind of organization do you want to work for?

2. In which department? (e.g. production, finance, accounting, marketing, sales, human resources).

3. Do you think it will later be possible to change departments? What do you think your first position will be?

4. Do you expect to have one immediate boss, to work for more than one superior, or to be part of a team?

If you are already working:

1. What is your function or job title?

2. What are you responsible for?

3. Who are you responsible to? (Who do you report to?) / Does anybody report to you?

4. What other units, departments or divisions do you regularly have to work with?

Big and Small Companies

Warming up

Ex. 1. Discuss the following questions.

1. Do you or would you prefer to work for a big or small company? Why?

2. Think of advantages of working in a small or a big company.

3. Think of disadvantages of working in a small or a big company.

Ex. 2. Read the following statements, and decide whether they are about the advantages of working in a big or small company. Explain your point of view.

1. If you have problems with your colleagues you can always change departments.

2. The atmosphere is friendlier and you know everyone.

3. You can actually see the result of your contribution to the company.

4. You can become more specialized in your work.

5. You have more independence, and you don’t always have to wait for permission from a superior.

6. You may be able to go and work in a foreign subsidiary.

7. You’re unlikely to be fired in a sudden reorganization or downsizing.

8. Your company will be in a better position in an economic downturn or recession.

Language input

Ex. 3. a) Learn the new conjunctions and connectors. The words or phrases in each line have similar meanings. Consult the dictionary if you don’t know the meaning.

To give an illustration or example of something just mentioned: for example (e.g.) for instance
To give another argument or example: furthermore moreover
To clarify (to express the same thing in different words): in other words that is (i.e.)
To express reasons, and cause and effect: as because due to owing to since because of consequently therefore thus
To express contrast: although conversely even though however nevertheless on the contrary on the other hand though yet

Note: These words are usually used at the beginning of a sentence, or at the beginning of a clause, after a comma.

b) Now prepare a short summary of your opinions regarding big and small companies, explaining which you prefer to work for (or would prefer to work for in the future).

Give several reasons - either your own or from the list – but also mention various counter-arguments.

E.g. In a big company you can....

Furthermore, big companies allow you to..., because of ….

Consequently, you can....

On the other hand, it is true that if you work for a small company, you can.... Nevertheless, I prefer big companies because..., even though... can be a disadvantage.

Ex. 4. How important are the following in showing a person’s status in an organization? Give each one a score from 1 (not important) to 5 (very important). Prove your idea, using connectors and conjunctions studied before.

a reserved parking space   having a secretary  
an office with a window   taking holidays when you like  
a uniform   the size of your desk  
a personal business card   more than one seat in your office  
your own office   flying business class  
a company car   a company credit card  
your name on your door   having fixed working hours  

Ex. 5. Practice the dialogue between Simon Taylor, a young entrepreneur, and his bank manager with your partner.

A: Good morning – is that the manager?

B: Speaking.

A: Hello. My name is Taylor, Simon Taylor. I’m from Germany, but I’m living in Cardiff and I’m a customer of your bank. Why I’m calling, I’ve been taking a business course at Cardiff Polytechnic, and I would like to set up a small business of my own here in South Wales.

B: Oh, yes. And what sort of business do you have in mind?

A: Well, I’d like to tell you about it personally, if I can come and see you.

B: Of course. You are almost welcome to come in here and have a talk,
Mr. … Taylor did you say?

A: Yes, Taylor, that’s right.

B: Do you have a business plan? It can save a lot of time if ….

A: A business plan? Of course, I have already prepared one.

B: Splendid. Let me have a look in my diary. How about Monday morning, the seventeenth, at 10 o’clock?

A: Yes, 10 o’clock Monday morning will suit me fine.

B: I look forward to seeing you then, Mr. Taylor. Goodbye.

Ex. 6. Before Simon Taylor arrives, his bank manager spends some time preparing a list of what he will need to ask Simon. Start the list for him.

Ex. 7. Insert words or phrases you find appropriate and reproduce the dialogue.

A: Well, Mr. Taylor, it’s an interesting idea, everything’s very nicely presented, and you’ve obviously done your homework. Though some of your figures are perhaps a little on the optimistic side. And you appreciate the bank will need ………….?

B: Naturally. But the only fixed asset I can offer you …………...

A: Yes, I thought you might say that. Loans can be secured on ………….

B: I’ve found a dealer who will sell me …………. I think that ought to be acceptable as security for a fifteen-thousand-pound loan.

A: Hm. Do you see …………..

B: Well – if we just stay with …………., yes.

A: Ah! So you might be looking to expand in a year or two. If you’re going to come back then borrow more money, then ………...

B: To be honest, Mr. Price, I want to ………...

A: I see. Well, I’m happy to approve your application for a loan of fifteen thousand pounds, to be repaid over five years. You’ll receive a letter of confirmation and a formal offer from the bank in a few day’s time. Repayments will be monthly, by direct debit. But remember, …………..

Ex. 8. Complete the text with one of these words and give its main idea.

enterprise zone free enterprise corporation private enterprise

enterprise culture enterprise economy

Margaret Thatcher often talked about the benefits of (1) … or (2) …. She said that her achievement was to establish an (3) … in Britain, an economy where people were encouraged to start their own companies and where it was acceptable to get rich through business: an (4) ….

In some areas, the government reduced the number of laws and regulations to encourage business to move there. Businesses were encouraged to set up in the London Docklands, for example. The Docklands were an (5) ….

Ex. 9. Look at the sample definition and define the words and expressions below.

E.g. Hierarchy is a system of authority with different levels, one above the other.

Function; line authority; report to; subordinates; autonomous.

Company’s Structure

Warming up

Ex. 1. Discuss the following questions.

1. What is meant by a company structure?

2. What is the management of the company called?

3. What can we call an effective company structure?

Ex. 2. Read the text below, about different ways of organizing companies, and then label the diagrams according to which of these they illustrate: line structure, matrix structure, functional structure, staff position.

a b с d

Company Structure

Most organizations have a hierarchical or pyramidal structure, with one person or a group of people at the top, and an increasing number of people below them at each successive level. There is a clear line or chain of command running down the pyramid.

Some people in an organization have colleagues who help them. This is known as a staff position.

Yet the activities of most companies are too complicated to be organized in a single hierarchy. Today, most large manufacturing organizations have a functional structure, including (among others) production, finance, marketing, sales, and personnel or human resources departments.

Functional organization is efficient, but there are two standard criticisms. Firstly, people are concerned with the success of their department than that of the company. Secondly, separating functions is unlikely to encourage innovation.

Yet for a large organization manufacturing a range of products, having a single production department is generally inefficient. Consequently, most large companies are decentralized. Each division had its own engineering, production and sales departments, made a different category of car (but with some overlap, to encourage competition), and was expected to make a profit.

An inherent problem of hierarchies is that people at lower levels are unable to make important decisions, but have to pass on responsibility to their boss. One solution to this is matrix management, in which people report to more than one superior. For example, a product manager with an idea might be able to deal directly with managers responsible for a certain market segment and for a geographical region, as well as the managers responsible for the traditional functions of finance, sales and production. This is one way of keeping authority at lower levels, but it is not necessarily a very efficient one.

A further possibility is to have wholly autonomous, temporary groups or teams that are responsible for an entire project, andare split up as soon as it is successfully completed. Teams are often not very good for decision-making, and they run the risk of relational problems, unless they are small and have a lot of self-discipline.

Ex. 3. Which of the following two paragraphs most accurately summarizes the text, and why?

Summary A:

Although most organizations are hierarchical, with a number of levels, and a line of command running from the top to the bottom, hierarchies should be avoided because they make decision-making slow and difficult. A solution to this problem is matrix management, which allows people from the traditional functional departments of production, finance, marketing, sales, etc. to work together in teams. Another solution is decentralization: the separation of the organization into competing autonomous divisions.

Summary B:

Most business organizations have a hierarchy consisting of several levels and a clear line of command. There may also be staff positions that are not integrated into the hierarchy. The organization might also be divided into functional departments, such as production, finance, marketing, sales and personnel. Larger organizations are often further divided into autonomous divisions, each with its own functional sections. More recent organizational systems include matrix management and teams, both of which combine people from different functions and keep decision-making at lower levels.

Language input

Ex. 4. Learn the new words and word combinations, which will help you to describe the company organization. Consult the dictionary if you don’t know the meaning.

The most common verbs for describing structure: to consist of to be made up of to be composed of to include to contain to be divided into
Other verbs frequently used to describe company organization: to be in charge of to support / to be supported by to be accountable to to be responsible for to assert / to be asserted by


Ex. 5. Describe the following organization chart in about 100–150 words.

Ex. 6. Find the logical order of airline starting procedure.

1. Advertise for baggage handlers, skycaps and counter personnel as your airline enters the last month of preparations.

2. Spend several months compiling data and developing content for your business plan before starting an airline.

3. Combine your business plan with a brief sales presentation before seeking a first round of investment capital.

4. Sit down with your pilots to complete FAA flight plans for every route flown by your airline.

5. Recruit qualified pilots, mechanics and attendants for your airline months before your first flight.

6. Protect your airline from lawsuits and financial damages with airline insurance from a provider like Assurant International Brokerage Corporation.

7. Negotiate airplane leases for passenger aircraft from companies like Cessna as you start your airline.

8. Secure a jet fuel contract with an energy company like Shell Aviation to keep your flights in the air.

9. Complete the four-phase application process for an air carrier certification from the FAA.

10. Install ticket printers, luggage tags, scales and other equipment in the counter space at your home airport.

11. Gain expertise on the future of finances, technology and consumer demand in the airline industry before investing money.

12. Secure a land lease from an airport in your community before acquiring aircraft.

Entrepreneurs

Warming up

Ex. 1. Discuss the following questions.

1. What entrepreneurs do you know in your country and abroad?

2. What are they famous for? What are their business achievements?

3. Are business leaders born or made? Explain your ideas.

Ex. 2. Search the Internet and find out who these people are (or were). Describe them using the expressions below.

state-owned company government-owned company be nationalized

... nationalized companies bureaucratic privatized enterprise

... software tycoon

a) Randolph Hearst (1863-1951);

b) Masayoshi Son (b. 1957);

c) Rupert Murdoch (b. 1931);

d) Aristotle Onassis (1906–1975);

e) Paul Getty (1892–1976);

f) Donald Trump (b. 1946);

g) William E. Boeing (1881–1956).

Ex. 3. Act out your own dialogues based on situations 1–3.

1. At dinner you meet an old friend of yours, who now works for British Airways. He tells you what it is like working for that organization.

2. You are a Russian businessman who is present at the board meeting of a large company. Take an active part in the discussion. Imagine any subject to discuss with your partner.

3. Talk about the organization you work for, or one you know well. How is it organized?

Listening

Ex. 4. You will hear a short extract from a talk by Professor Diamond called “How to get rich”, in which, drawing on the history of human societies, he makes a suggestion concerning the best way to organize a business. Match up the words on the left with the definitions on the right.

1) industrial belt a) a company's ways of working and thinking
2) wealth b) alone, placed in a position away from others
3) productivity c) an area with lots of industrial companies, around the edge of a city
4) corporate ethos d) breaking something up into pieces
5) collaboration e) the amount of output produced (in a certain period, using a certain number of inputs)
6) insulated or isolated f) the products of economic activity
7) fragmentation g) working together and sharing ideas

Ex. 5. Listen to Jared Diamond, and then answer math companies (a–d) with part-sentences 1–8.

a) Route 128 (the industrial belt around Boston, Massachusetts);

b) Silicon Valley (the high-tech companies in the area between San Francisco and San Jose, California;

c) IBM;

d) Microsoft.

1. has lots of companies that arc secretive, and don’t communicate or collaborate with each other

2. has lots of companies that compete with each other but communicate ideas and information

3. has always had lots of semi-independent units competing within the same company, while communicating with each other

4. is organized in an unusual but very effective way

5. is currently the centre of innovation

6. used to have insulated groups that did not communicate with each other

7. used to lead the industrial world in scientific creativity and imagination

8. was very successful, then less successful, and is now innovative again because it changed the way it was organ bed.

Ex. 6. Working in pairs, rearrange the following part-sentences to make up a short paragraph summarizing Diamond’s ideas about the best form of business organization.

a) and regularly engage staff who have worked for your competitors,

b) are at a disadvantage,

c) because most groups of people get

d) but also communicate with each other quite freely.

e) creativity, innovation, and wealth,

f) into a number of groups which compete

g) Isolated companies or groups

h) most of their ideas and innovations from the outside.

i) So in order to maximize productivity,

j) You should also exchange ideas and information with other companies,

k) you should break up your business



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