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In Company Intermediate second edition

Part A 2.22

A: OK, this brings us on to the next item on our agenda this morning, which is online business. Now, I know some of you are concerned about the recent performance of E-Stock, our online subsidiary. So I’ve asked Gary Cale, our new head of e-business, to bring us up to date. Over to you, Gary.

B: Thanks, Michelle. To start off, then, I know you have all seen the figures up to the last quarter – disappointing to say the least. Nine months ago, when we first went online, we were getting over 250,000 hits a day. Three months ago, when I joined this company, we were getting just 60,000 and it was obvious we were failing to attract sufficient customers to our website. So, what was going wrong? In a word, technology. The problem was not the service we were offering, but the website itself.

Part B 2.23

B: Now, three things make a good website. First, access to the website must be fast. The slow access speed of our website meant people were getting bored waiting for pages to load and simply going somewhere else. Second, a good website must be easy to use. Ours was so complicated, customers sometimes didn’t know if they were buying or selling! And third, a good website must have excellent search engines. Ours didn’t. To give you an example of what I mean, a fault we hadn’t noticed in the programming caused fifteen hundred people to invest in a company that didn’t even exist. Yes, embarrassing. I’m glad I wasn’t here to take the blame for that one!

OK, to move on. Greenbaum-Danson is unquestionably one of the world’s leading financial services companies. We’re the biggest, oldest and most respected firm in the business. But to succeed in online stock trading, to succeed in any area of e-business, you need a first-class website. So, creating a first-class website was our first priority. The next thing was Internet advertising, winning back the customer confidence we’d lost. That’s a longer job, but we’re making progress. The final thing, and this always takes time in e-business, will be to actually make a profit. Well, we can dream!

Part C 2.24

B: Have a look at this. It’s a graph showing the number of trades our customers make per day on our website. As you can see, the figure was fluctuating for the first three months and then fell sharply to bottom out at just 10,000 trades a day. For a company of our size, that wasn’t too impressive. But look. We’re up to nearly 40,000 trades now, our highest ever, and still rising.

OK, I’m going to break off in a minute and take questions. So, to sum up. One, improvements in our website have led to more hits and increased trading. Two, advertising on the Internet will help us win back customers. Three, profits will follow. E-trading in stocks is the future. In the US alone it’s the way a quarter of the public choose to buy their shares. This is the information age and the Internet is the ultimate information provider. I’m reminded of what banker Walter Wriston once said: ‘Information about money is becoming more valuable than money itself.’ Thank you.

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In Company Intermediate End of course test, Class Audio CD2 tracks 22-24

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