Management strategy: choices of a strategy

The term ‘management strategy^’ is similar to such terms as 'business policy' or

'(1)'.

Management always needs (2) of strategy.

But the environment may be changing so rapidly that a detailed rational (3) is both difficult and (4).

Many data soon become meaningless. That is why certain companies, like Shell, adopt a new approach to management strategy formulation, which is known as "scenario planning". It is the flexible (5).

This approach recognizes that uncertainty can never be eliminated, but it can be reduced by plotting different scenarios each responding to alternative versions of the future. (6) is therefore prepared for a number of possible changes that may occur.

(7) stresses the importance of (8) in the strategic process. The more complex and changing the business (9) and the more difficult the problems facing managers, then the more creative they need be.

Such situations are now commonplace in many organizations, calling for a greater creativity in strategy formulation. The life shows that strategy formulation is far from being a rational, logical process.

Instead, strategic choice is the product of coalition and involves some (10)between senior management and other groups. It is necessary to think about shareholders' meetings and about (11) with trade unions.

However, the most significant negotiations generally take place between competing fractions within management itself and are much more difficult to (12).

(13) are constantly modified in the light of experience and through the process of negotiation between interested (14). (15), strategies are constantly being changed.

So management strategy is a (16) of various approaches All organizations have strategies, formalized to a greater or lesser extent. We can see strategies at work in such different organizations as businesses, the police, charities, professional football clubs and the church.

In recent years there has been a focus on management strategies in the public sector.

The health service has actively invited its managers from industry and (17) in an attempt (18) a more businesslike approach, including a greater emphasis on strategy formulation.

We must (19) between those strategies pertaining to entire industries, such as shipping or machine tools, strategies employed by firms operating in a number of different business markets, such as General Motors, and strategies pertaining to those operating in a single or restricted (20).

Task 2. Match each of the words or phrases on the left to an appropriate definition.

1 loan	a) a record of all the money that a person or business has received or paid out
2 ownership	b) the state of having a paid job
3 earn	c) money that you spend while you are working that your employer will pay back to you later
4 expenses	d) an amount of money that sb/a bank, etc. lends you
5 employment	e) the state of owning sth
6 profit	f) the particular group of people that a product, etc. is aimed at
7 shareholder	g) the money that you have to pay to the government so that it can provide public services
8 target market	h) to get money by working
9 tax	i) a person who owns part of company and receives part of the company's profits
10 account	j) the money that you make when you sell sth for more than it cost you

Task 3. Fill in the blanks using the word combinations given below, translate the letter.

Letter 1.

(1) and price list of our lawnmowers, (2) in your letter of 18 May.

The machine bought by your friend was a 38 cm RANSOME’ which is an excellent machine. (3) of the smaller size of 30 cm shown on page 15 of the catalogue. Alternatively, smaller than this is the PANTHER JUNIOR shown on page 17.

We have both these models in stock (4) to show them to you if (5) call at our showroom.

Please (6) on 2314679 if I can provide any further help.

 

a) and should be glad

b) I enclose a catalogue

c) as requested

d) contact me

e) you will find details

f) you would care to

Letter 2.

Thank you for (1) regarding our plastic tile flooring. A copy of our brochure (2) showing the designs and range of colours in which the tiles are supplied.

Bottomline, 22 The Square, Rugby, is a very reliable firm (3) in your area. I have asked the company to get in touch with you to inspect your floors. Their consultant will be (4) on what preparation is necessary and whether dampness is likely (5).

Our plastic tile flooring is hard-wearing and if the tiles are laid professionally, (6) the work will give you lasting satisfaction.

Please let me know if I can provide any further help.

 

a) is enclosed

b)to advise you

c) to cause a problem

d) your enquiry of 18 August

e) I am sure

f) which carries out all our work

 

 

Task 4. Choose the correct variant.

1. Tourism gives … to millions of people.

a) rest

b) labor

c) work

d) travel

 

2. Tourism is a very important … for many countries.

a) business

b) job

c) hobby

d) thing

 

 

3. It is … industry in the world today.

a) big

b) biggest

c) bigger

d) the biggest

 

4. In many countries there … national parks.

a) are

b) is

c) am

d) be

 

5. The tourist resorts … to spend some of the money they get from tourists outside the country.

a) need

b) needs

c) had needed

d) has needed

 

6.The Red Cross … to give better healthcare in many countries.

a) help

b) is helping

c) helps

d) doesn’t help

 

7. Now governments of many countries … together to fight the problem of pollution.

a) is working

b) work

c) are working

d) working

 

8. A new hotel … in our city soon.

a) is built

b) will built

c) will be built

d) is being built

 

9. If I were you I … him money.

a) won’t lend

b) wouldn’t lend

c) don’t lend

d) will lend

 

 

10. I won’t pay attention to his words if I ….

a) can

b) can’t

c) will be able to

d) am able

 

 

LESSON 10

Task 1. Complete the text with the words in the box.

1. payment	5. Conversely	9. exports	13. the exchange	17. markets
2. imports	6. A foreign exchange market	10. supply and demand	14. As a consequence	18. the value
3. international trade	7. transportation costs	11. foreign currency	15. commodities	19. transactions
4. opportunities	8. foreigners	12. an incentive	16. deficit	20. Money

 

Transportation of Goods

When (1) are low and governments do not interfere much in (2) that cross national boundaries, firms and individuals frequently look across those boundaries for

(3) to buy or sell. Indeed, for many (4) there are international rather than domestic markets, and for most commodities there are international effects on (5).

Commodities that are produced in a foreign economy, but which are consumed by individuals within a domestic economy, are (6), while commodities, which are produced within a domestic economy, but which are consumed by individuals in a foreign economy, are (7). If the world price of commodity is below the domestic price, there will be (8) to import the commodity, purchasing it from foreign producers.

(9) once again solves the problem of coincident or reciprocal wants: individuals or firms who want to import a commodity can make (10) using money, while those individuals or firms who want to export do so in exchange for money. As long as money can be used in international transactions (as well as within an economy), exporters and importers do not need to be the same individuals.

The complexity arises because foreign firms usually want to be paid in money useful in their own economy. (11), domestic firms who want to export usually want to be paid with money useful in the domestic economy, while (12) to whom they must sell if they are to export usually want to pay for the commodities using money from their own economy.

When the money used in the international exchange is different from that used in the domestic economy, the person receiving (13) in the (14) will want to exchange it for a domestic currency. Hence, (15) creates markets for different kinds of money. Such markets are called foreign exchange or foreign currency markets. (16) is a market where one kind of money is traded for a different kind of money.

Changes in (17) in these markets change the rate at which one currency will be exchanged for another currency. (18), the price of goods that are traded will change either because of a change in the price in the economy where they are produced or because of a change in the exchange rate. The difference between (19) of exports and imports is the foreign trade balance. If the value of imports exceeds the value of exports then trade balance is (20).