Stores do their best to part us from our cash, but they are not always as friendly if a (1) …. is defective. We have teamed up with consumer watchdog Which? to offer some help.
a The iron I bought was faulty and I was given a replacement, but that also stopped working after a week. The shop has refused to exchange it, saying the second iron was a gift. Is this correct?
b My parents bought us a washing machine as a present but it exploded when we were out. The smoke and fire damage is extensive. Who is responsible for this?
с I have written many letters to a local supermarket after having found bits of glass in their fresh fruit. I still don't have a satisfactory response.
Which? answers:
1 As you did not buy the machine yourself, you have no contract with the shop. But you can claim against the manufacturer under the Consumer Protection Act 1987 for (2)….. to your house and any (3) …. injury. Your parents, however, can claim for the machine from the retailer.
2 Try contacting the trading (4) …. officer. He / she is responsible for
(5) …. of the Consumer Protection Act.
3 No, you are legally (6) …. to goods of a (7) ….. quality.
4.8 Companies operate in a legal environment. Below are 10 areas of legislation. Match each legislative area (1-10) with the correct description (a-j).
| Legislative area | What is it about? |
| 1 environmental legislation | a Minimum standards in quality, service and rights of customers. |
| 2 social legislation | b Restrictions on use, movement and sale of items that present serious risk. |
| 3 consumer protection | c Protection of air, water and land. |
| 4 dangerous goods security legislation | d Issues concerning state such as defence interests, nuclear resources, etc. |
| 5 tariffs, duties and taxes | eEmployment law, hours of work, holidays, insurance, etc. |
| 6 official secrets, state security legislation | f Restrictions on ways of promoting goods and services. |
| 7 sale of goods legislation | gCompulsory levies applied by government. |
| 8 company law | h Rights for all groups in society to be treated fairly. |
| 9 advertising standards | i The quality of goods and services and the accuracy of any claims made for products and services offered for sale. |
| 10 equal opportunities law | jObligations to publish accounts, names of directors, etc. |
4.9 Business idioms. There are many metaphors and idioms related to sport and gambling used in the business world.
1) British business leaders say they face an uneven playing field in Europe. (= unfair competition)
2) What time does the sales workshop kick off? (= start)
3) Let's kick around a few ideas around for a new marketing slogan. (= discuss or brainstorm)
4) You may not like his methods, but he's realty on the ball. (= quick to understand)
5) Can you give us a ball-park figure? (= an approximate number)
6) The ball's in our court now. (= it's (our) turn to do something about a situation)
7) The sales are on track for another quarterly improvement. (= likely to achieve)
8) The meeting is starting to get off track. (= not focus on the essential)
9) The company has a good track record in running projects. (= shown how good they are in the past)
10) The company has been gaining ground on the bigger players in the industry. (= reaching a similar level to; important companies or people)
11) This could be a very lucrative deal in the long run. (= at a much later time)
12) This strategy seems like a long shot. (= it will have little chance of success)
13) The odds are that our competitors will lower their prices soon. (= It's likely)
Look at the business idioms in italics and choose the correct meanings.
1 Let's get this meeting back on track.
a) postpone for a later date b) return to the main subject
2 Shall we go over the figures on the handout?
a) examine b) ignore
3 Well, we are running out of time. So let's have one final question.
a) have lots of b) don't have much
4 Could you stick to the point?
a) give an example b) talk about what's relevant
5 Can we get your input on this?
a) hear what you think about b) ask you to stop talking about
6 Would you like to kick off the discussion?
a) stop b) start
7 It's hard to keep track of what she's saying. She talks so fast.
a) decide what's relevant b) follow and understand
8 Why don't we kick around a few ideas?
a) discuss b) reject
Unit 5 Planning
Text 1 SWOT analysis
Before entering the marketplace it is essential to carry out a SWOT analysis. This identifies the strengths and weaknesses of a product, service or company, and the opportunities and threats facing it.
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection.
Strengths. A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include: patents or certain expertise; strong brand names; good reputation among customers; cost advantages from proprietary know-how;
exclusive access to high grade natural resources; favorable access to distribution networks.
Weaknesses. The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses: lack of patent protection; a weak brand name; poor reputation among customers; high cost structure; lack of access to the best natural resources; lack of access to key distribution channels.
In some cases, a weakness may be the flip side of a strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.
Opportunities. The external environmental analysis may reveal certain new opportunities for profit and growth. Examples of such opportunities include: an unfulfilled customer need; arrival of new technologies; loosening of regulations; removal of international trade barriers.
Threats. Changes in the external environment also may present threats to the firm. Examples of such threats include: shift in consumer tastes away from the firm's products; emergence of substitute products; new regulations; increased trade barriers.
The SWOT Matrix
A firm should not necessarily pursue the most lucrative opportunities. Rather, it may have a better chance at developing a competitive edge by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity. To develop strategies that take into account SWOT profile, a matrix of these factors can be constructed.
| Strengths | Weaknesses | |
| Opportunities | S-0 strategies | W-0 strategies |
| Threats | S-T strategies | W-T strategies |
- S-0 strategies pursue opportunities that are a good fit to the company's
strengths.
- W-0 strategies overcome weaknesses to pursue opportunities.
- S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats.
- W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.
Source: www.quickmba.com
This is a SWOT analysis of PetraServe, a company which runs motorway service stations.
| STRENGTHS | WEAKNESSES |
| Superior distribution network - we have one of the best. We are the specialist in long distance petrol needs for lorry and truck drivers — we have experience, knowledge and skill. Consumers see us as a quality brand. Innovative loyalty рrogrammе that’s unique in the market. We are a profitable company — we're making money. Highly recognizable brand. А globаl brand. | Undifferentiated offer in terms of basic product - petrol is the same whatever the brand. Lack of new products - we need mоге. Ineffective leverage of specialist image - we don't use our specialist image well. Inferior communication - we could communicate better. Damaged reputation for petrol and fossil fuels — they have a bad image. Customer loyalty is weak. |
| OPPORTUNITIES | THREATS |
| Developing market for service station shop (confectionery, саг maintenance products, etc.). Gap in the market: hybrid cars and electric cars will need fuel. Huge potential for growth - there is a lot of rооm to expand into new markets. | Our main competitor is strong. Price war in the fuel market is becoming more threatening — all our competitors are cutting prices. Emerging trend towards hybrid cars and electric cars. Consumer fears about environment and pollution. |