16. Compile as many words as you know with the letters of the word demographics
Remember: this is not a burden, but a great opportunity to revise your active vocabulary! By the way, what does the word mean?
17. Read the following proverbs and find their Russian equivalents. In what situations can you use them? Make your own situations.
1. Experience is the best teacher.
2. Politeness oils the wheels of life.
3. Fortune favours the brave.
4. As is the workman so is the work.
5. What is worth doing is worth doing well.
6. Where there is a will there is a way.
7. A good beginning is half the battle.
8. Wishes don’t wash dishes.
9. There is no smoke without fire.
10. We never know the value of water until the well is dry.
11. Time is the best healer.
12. Health is the greatest wealth.
13. Early to bed, early to rise makes the man healthy, wealthy and wise.
14. There is no bad weather there are bad clothes.
________________________________________________________Lesson 15
1. Read the text the evaluation of industry
1. No company operates in a vacuum. Every business is a part of a larger overall industry. A business may intersect two or more industries. For instance, you may produce electronic devices utilized in new and used automobiles. Thus, you are part of three industries: electronics, new automobiles, and the automobile after-market. An industry consists of all industries supplying a similar product or service, other businesses closely related to that product or service, and supply and distribution systems supporting such companies.
2. Maturity. Industries don’t remain static. They may change dramatically over time. Generally, the life cycle of an industry (or the development stages) comprises four phases:
new;
expanding;
stable;
declining.
3. New industries provide excellent entrepreneurial opportunities. Smaller companies are well-suited to respond to rapid changes, and larger companies have not recognized the field’s opportunities. The market, however, is limited as customers are not yet comfortable with the product or service.
4. Expanding industries enjoy rapidly growing markets as customers begin to recognize the need for the product or service. Competition is brisk as well-funded companies *begin to enter the field.1 All companies are vulnerable at this stage, even those that looked stronger when the industry was new.
5. Stable industries have arrived at a plateau with markets leveled off at a reasonably high level. The rate of growth is slow, and customers maintain strong brand loyalty. It is relatively difficult to enter these industries.
6. Declining industries result from technological, demographic, and sociological changes, and from overwhelming foreign competition. Corporations leave the field or go bankrupt. The few major companies *fight to survive by stealing remaining customers from weakened competitors2. This last phase is not inevitable. Many long-standing, stable industries show no sign of decline.
7. Industries have distinct attributes in different stages of maturity. Even
industries
that seem closely related are *quite dissimilar based on development
stage3
.
For instance, the soft drink industry is relatively stable, and a few
major companies dominate the field. Little room exists for newcomers,
and it would be
extremely expensive to try to compete. On the other hand, bottled waters are in a
developing industry with lots of competition and variation.
8. Sensitivity to economic cycle. Some industries are heavily dependent on strong economies, either nationally or internationally, and it is crucial to understand how vulnerable your industry is to economic downturns. Construction, large consumer items (autos, furniture, etc.), and tourism all suffer substantially when the economy is in recession. Industries dependent on new business formation or business expansion, such as office and technical equipment, also suffer in poorer times.
9. Such industries as discount department stores and used car dealerships are countercyclical, doing relatively better in poor economies than in strong ones. And some industries, such as personal care products and low-cost entertainment, are relatively immune to economic cycles.
10. If a business is located in a smaller community that is heavily dependent on one industry or one major employer, one should consider the effect of the economy on that industry or company and thus, one’s own business.
Considering the economic conditions or cycles that affect business helps a businessperson anticipate and plan for difficult times.
11. Seasonality. For many industries, certain times of the year produce higher revenues than others. For example, toy companies are dependent on Christmas sales, while summer is the big season for bathing suit manufacturers. But many other industries also fluctuate throughout the year.
12. Most retail businesses and consumer products are affected by the Christmas season, which may account for one-third to one-half of all sales. This is what the practitioner, Charles Huggins, President of See’s Candie says:“Forty-seven to forty-eight percent of our volume occurs around Christmas. We keep historical records of our sales volume and timing, so we know what the sales pattern is likely to be, both in the stores and when mail order and quantity orders will be placed. If Christmas is on a Tuesday this year, we go back and look at the last time it fell on a Tuesday, to see sales volume by day of the week, so we’ll know what to expect the Friday before Christmas. We put together a ‘game plan’, a complete schedule, so *we can keep fresh product churning4.”
13. Spring is an important season for any wedding associated industry. Tourism-related businesses may depend heavily on the summer. And products and services that are nonessential may actually suffer during the Christmas season, as consumers reduce nongift expenses.
14. When preparing your financial forms, it is imperative that you understand and account for the seasonal factors that have an impact on your income and expenses. Your product may be sold in December, but you may have to pay for raw materials in June.
________________________________________________________________________Lesson 15. the evaluation of industry
On the worksheet below, describe the impact, if any, the various seasons have on the economic health of your industry and business. Also describe any additional seasonal factors. Do it in the most detailed way.
HOW SEASONAL FACTORS AFFECT YOUR INDUSTRY |
Christmas/Any other holiday: _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Summer: _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Winter: _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Other: ______________________________________________________________________________________________________________________________
|