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CURSOS DE IDIOMAS GLOBO BUSINESS ENGLISH AUDIOVISUAL INTERATIVO PROGRAMADO 9 PUBLICAÇÃO SEMANAL ILUSTRADA EDITORA GLOBO BUSINESS ENGLISH Vol. 9 UNIT 17 - 18 EDITORA GLOBO CURSOS DE IDIOMAS GLOBO BUSINESS ENGLISH O CURSO BUSINESS ENGLISH é um curso elaborado por especialistas para atender simultaneamente a leitores de três diferentes níveis de conhecimento da língua inglesa. * Nível 1. Indicado para pessoas com conhecimento elementar. * Nível 2. Acessível às pessoas com nível médio de conhecimento. * Nível 3. Indicado para pessoas que já dominam o idioma. Todas as lições dos fascículos apresentam uma sinalização: * = só o nível 1, ou 1º ano e nível elementar; ** = nível 2 e todas as lições; *** = nível 3. Apenas as seções com nível de conhecimento e número do fascículo. ** aparecem nos seis primeiros fascículos, exceto no final do curso. Nas últimas páginas aparece o índice dos fascículos, o número na sequência e o título. COMO ACOMPANHAR O CURSO Para obter o máximo de aproveitamento, estude a unidade no final das fascículos, onde as seções e exemplos propostos de prática e erros são examinados e as respostas são permitidas para cada unidade. Este material compreende: os Cadernos de Exercícios: um para cada unidade estudada e verificada; os textos nas unidades das páginas do próprio Caderno; o Gravador Dolby, onde a unidade é claramente ou destacadamente. Como material de apoio, tem o conteúdo e unidade devidamente grifadas: ... Para uma centralização completa, você encontrará no final os principais resumos e traduções no caderno final. AS FITAS Os principais diálogos e textos descritivos apresentados nos fascículos são reproduzidos em 15 fitas cassete que acompanham as edições de anos ou cursos em: anos 1, 3, 5, 7 e 9 (as unidades é um tipo de direção em: 4 cadernos, como curso de que 5 fascículos, série 5 volumes. Cada fita abrange 2 volumes relativos a unidades. NÚMEROS ATRASADOS A Editora Globo mantém suas publicações em estoque pelo próximo passo no momento. Já existem edições atrasadas de fascículos como parte da nova edição anual fotográfico, caso não haja algum domínio nas bancas. Escolha uma das opções abaixo: 1. NAS BANCAS Atividade para o distribuidor Cinrigale do seu local. 2. PESSOALMENTE Por meio do endereço abaixo: São Paulo: Rua Alfredo Ellis, 18 - Centro - Fones: (011) 226-1281 - 229-9257. Rio de Janeiro: Av. Venezuela, 58 - Santo Cristo - Fones: (021) 214-4427 e 262-5747. 3. POR CARTA Departamento Carta do cliente, setor de Números Atrasados. Caixa Postal 25, CEP 05966-001, São Paulo - SP. Barreiro, 1930 e Editorial Pará e Aspectim S. A., Barreiro. 1933) foi Editora Globo para a língua portuguesa, com sede em (AGP DELBR-LIULRI-CONUS) Comodidade relacionada ao consultor: Barry Kenchoc, instrutores terrestre; Barry Kench. Funções exploratórias relacionadas a conferências desempenhadas por Transcultural Language Skills, Rio Gramers e Sociedade Assistencial (AAAS), e Espanha Oliverpot. Trocado os direitos reservados. Nenhuma outra entidade pode promover vendas exclusivas ou limitar publicidade sem o consentimento do proprietário dos direitos autorais. Impresso e Conversa pelo: Fabecip nome Santiago Cruz Editor Globo S. A. Rua do Curtume, 665, CEP 05966-001, São Paulo, Caixa 011 8157, SP, Brasil. Distribuição executiva para todo o Brasil: Fernando Chiraglia Distribuidora S.A. Rua Teodoro da Silva, 907, CEP 20565-900, Rio de Janeiro, RJ. PLANO GERAL DA OBRA BUSINESS ENGLISH é uma obra publicada em 30 volumes semanais de 64 páginas. Cada edição combina 2 unidades de estudo (livreto) em 24 páginas cada, intercaladas pelos exercícios externos e internos. Todas as unidades são revistas com exames abordados no próprio anual. OUTRAS PALAVRAS DE REVISÃO Estudos relacionados ao consórcio transnacional de ensino; uma série que é a mais dura do curso. ASSISTENTE Através do grande poder examinado em uma série, apresenta uma série de questões transcritas. ISBN (da coleção): 85-250-1150-3 CONSELHO DE ADMINISTRAÇÃO Roberto Irineu Marinho João Roberto Marinho Roberto Marinho Filho Ricardo R. Fischer DIRETORIA Ricardo J. Fischer Fernando A. Ceotta Manuel Bezerra Filho José Arnon Seler Orlando Marques DIVISÃO DE FASCÍCULOS E LIVROS Diretor Ilano Barros Pinto Editorial: Santos F. F. Expedito (editor executivo) Anibal Santos Monteiro (editor de arte), Eleomar da Silva (assistente de redação) Colaboradores: Marlise Veloeisa (traduções) Marketing: Hercílio de Souza Paixão (editor) Carlos G. H. (remuneração de transferências), Elisabete Garcia Bianco (analista), Danilo Borges (gerente de produção), Zélia S. Arns (coordenadora) Diretor de Circulação: Wandercir Aniceto Matencio Diretor de Assinaturas: Celina de Marketing, Diretor de Assinaturas: Walperth Nonô Assessor de Comunicação: Maurício Costa Santos (diretor) Serviço de Apoio Editorial: Antonio Carlos Marques (gerente) OVERSEAS SUBSIDIARIES IN TROUBLE Unit 17 Contents ■ A Corporate Business □ Introduction Difficult and painful decisions. □ Fresh Frozen Foods Plc: Overseas Subsidiaries in Trouble The action taken to try to stop the relentless slide in the turnover and profits of the two New Zealand subsidiaries. □ Dialogue: Kiwis in Trouble Trying to find a solution to the problems that the two New Zealand subsidiaries have had since losing practically all their market in Europe. ■ Business Executives □ An Executive Writes Enclosing information instead of including it in the letter itself. □ An Executive Travels Travel Dialogues - On board the plane. ■ Business Matters □ Some Questions and Answers about… Banking (2) The merchant banks. □ Offices (7) Investing in computer facilities. ■ Business News □ The Cheese Makers (1) The growing number of small independent cheese makers in the UK. ■ The Use of English in Business □ The Tenses (9) The Past Perfect Continuous. Glossary of the Key Business Words and Phrases Used ■ Answers 385 A CORPORATE BUSINESS Introduction Subject: Difficult and painful* decisions. While a downturn in the profits of a subsidiary will attract the immediate attention of the parent company, it will not be cause for alarm. If this trend continues, however, something must be done about it. If there is no obvious reason for the slide, then there will have to be an investigation. A doctor will be sent to make a diagnosis. In this case the doctor will be the group's chosen troubleshooter. A report is made and action taken. It may be that a few executive heads will roll² and a 'new broom' will be appointed. Perhaps the workforce will be cut, certain products will be declared unprofitable, part of the fixed assets will be sold off or perhaps there will be a complete reorganization from top to bottom³. If the downhill trend continues the company will be sold off to the highest bidder. But what happens when the trouble is not the fault⁴ of the company but of the market? Suddenly there ceases to be a demand for its products. If this is temporary, as in seasonal businesses like ice cream in summer and umbrellas in winter, the problem is only short term. If, on the other hand, a company has all its eggs in one basket and the basket falls, what happens then? There are several possibilities: it can explore new markets, diversify if it is big enough, be sold off or go into liquidation. Someone somewhere has to make a difficult and painful decision. In spite of huge sums spent on advertising, the big tobacco corporations are fighting a losing battle against anti-smoking campaigns and the banning of smoking in public places. They have diversified and gone into chemicals, pharmaceuticals, food and cosmetics and they are now trying to open up new markets in the third world. For the moment they are still making profits. These profits, however, are not what they were. The two New Zealand subsidiaries of Fresh Frozen Foods have seen all but about 10 per cent of their European market disappear since the EC restricted imports in the 1970's. They have kept going by seeking new markets in the Middle East and East Asia but their profits have been decimated⁵. The time has come for the parent company to take decisive action. We shall now see how they begin to deal with the crisis. * painful dolorosas ² heads will roll rolarão cabeças ³ from top to bottom de cima a baixo ⁴ fault culpa ⁵ decimated dizimados 386 Fresh Frozen Foods Plc. Overseas Subsidiaries in Trouble Subject: The action taken to try to stop the relentless⁶ slide in the turnover and profits of the two New Zealand subsidiaries. The beginning of the trouble In the 1960's and early 1970's the New Zealand companies Southern Frozen Meat and Te Kuiti Canners were the star performers⁷ among the Group’s overseas subsidiaries. Then the UK entered the EEC and a black shadow⁸ was cast⁹ over the prosperity of these two fine¹⁰ companies. Their exports to the UK fell by well over 50% in just three years. Their profits plummeted as years before they had soared. The situation was very serious indeed. Fortunately both companies had a young, dynamic management team - it was this that had made them so prosperous - and they did not accept defeat. They sent their salesmen far and wide in search of¹¹ business. They found it in the Middle East and in East Asia. They were forced to cut their prices and very often had to wait for payment from customers in countries where they had a different conception of doing business. Their margins were reduced to a minimum and they were obliged to sell off fixed assets in order to keep going during some of the more difficult periods. The fact that they had assets to sell was thanks to Martin Middleton, the managing director of Group when it was Bryant & Lester. Middleton was often called 'Mr Long-term', because he was always thinking years ahead. When the New Zealand companies were riding high on a seemingly endless wave of prosperity, Middleton insisted that they bought offices, warehouses, factory space and land in prime areas. An appreciable percentage of their profits was regularly invested in such properties. These properties were needed for their business and they were used. Their offices, factories and installations impressed overseas customers, who noted that they were dealing with important companies well organized for international trade. Most important of all, though, was the fact that these properties were appreciating all the time. Both companies have managed to survive by selling them off. The last sale was just a few months ago when Te Kuiti Canners sold a fruit plantation they had near the town of Auckland. It is now being converted into a golf course for the Japanese. Head office decides to act On Wednesday 21st February Frank Holloway and Paul Hemmings had a long discussion about the plight¹² of the New Zealand companies and decided the matter was urgent. As they had had assurances from Ulf Andersson, the managing director of Triple F Svenska, that he was doing everything possible to import more from New Zealand, it was decided that he should come to London for an exchange of views about the situation. ⁶ relentless inexorável ⁷ shadow sombra ⁸ cast projetada ⁹ fine ótimas ¹⁰ in search of em busca de ¹¹ plight situação difícil 387 A CORPORATE BUSINESS Ulf came to London almost immediately, just two days later, in fact. He explained that Sweden was practically self-sufficient in food, so that it was not easy to import food that was already available in the country. This meant that he could do nothing about imports of frozen lamb. Fruit, however, was another question. 'Until we have succeeded in growing oranges and pineapples in Sweden, we shall have to continue importing them', he laughed.12 It was agreed that Ulf should send one of his best men to New Zealand to see what they were producing and whether or not there would be a market for it in Scandanavia. All expenses would be borne by the head office. Frank Holloway impressed upon Ulf that this was a very serious mission and that if it resulted in business being done in Sweden, Norway and Finland — not Denmark because they are EC — it would help towards saving these companies. 'We are not interested in expanding into Europe and taking over companies if we have companies within the Group desperate to survive', said Holloway. Andersson returned to Sweden convinced of the importance and the urgency of getting something done. Just three days later Sten Johansson, Ulf's right-hand man, was on his way to New Zealand. A matter for marketing Holloway and Hemmings had not been able to discuss the matter with Leslie Carrington, the director of business development, because he had been away in Italy. The morning he came back Frank Holloway rang through to him and half jokingly13 told him he had to go to New Zealand. A few minutes later all three were discussing the problem. Carrington said that he had been monitoring the situation for some time and had reached the conclusion that here was a matter for the marketing people to handle. He now asked Hemmings to approve the commissioning of a marketing study done by an outside consultancy firm. The idea was to research every country that might possibly import the products that the New Zealand companies were producing. The study would cost about £25,000. It is an indication of the seriousness of the situation that Frank Holloway did not hesitate for a moment. The study was commissioned immediately. Some slight doubts Paul Hemmings could not understand why a multinational like Fresh Frozen Foods could not do its own market research. As he saw it, the fact that the market research was international made no real difference. In addition, he had FRESH FROZEN FOODS (AUSTRALASIA) LTD WESTERN AUSTRALIA CANNED AND FROZEN FOODS MARTINDALE CANNING CORPORATION TE KUITI CANNERS SOUTHERN FROZEN MEAT CO. never liked consultant firms. He had the impression that one man, an expert in a particular field, had started a business to exploit his expertise. He employed a group of assistants, who were not experts, to work under his supervision. As he was always looking for business and persuading potential clients to make use of his know-how, he did not have time to supervise his team properly. The result was the production of beautifully presented studies, surveys and reports which did not deserve to be printed on such expensive paper or enclosed in such expensive folders. Leslie Carrington agreed with him, but said that in this particular case he knew all the partners of the consultant firm and that not only were they highly efficient but they belonged to an international network of consultants that supplied very quickly reliable up-to-the-minute information. Hemmings was convinced. The Board discuss the situation The problems of the two New Zealand subsidiaries were at the top of the agenda at the next meeting of the Board. The non-executive directors wanted to know why nothing had been done until now. If these companies had been in such serious difficulties for so long, why was no action taken? Holloway responded by saying that if the policy of the Group was to let subsidiaries have the maximum amount of autonomy, it was not possible to interfere too much in their affairs. He said that when a subsidiary got into difficulties, it should have to fight for its own survival. If it was unable to do this, then it should be sold off. If, on the other hand, it made every effort to overcome14 the downturn in its fortunes, it should have the help and encouragement of the parent company. The New Zealanders had done remarkably well to survive for so long and they deserved and would be getting immediate help. That was Holloway's opinion and the Board accepted it. Later on we shall see the results. 12 laughed gracajou 13 jokingly por brincadeira 14 overcome superar The Economies of Australia and New Zealand Once upon a time, these two countries considered themselves as extensions of Great Britain in the Antipodes. Now the links with the UK are about the same as those between Spain and Latin America. New Zealand relied on the UK even more than Australia as a market for its exports of wool, lamb and butter. Now it is looking for new markets to replace those the EC has closed to it. Australia is fortunate in being one of the world's largest mineral producers, exporting iron ore, aluminium, coal, bauxite, nickel, zinc, copper, silver, gold, and tin etc. At the moment its wool industry is going through a difficult period – see BUSINESS NEWS Unit 14 – but that is just one of its many commodity exports. There has always been an exodus from New Zealand to Australia – land of opportunity – and this will probably increase now. Australia’s population is five times the size of New Zealand's. Australia is growing and New Zealand appears to be shrinking. A CORPORATE BUSINESS Text Comprehension Answer the following questions: 1. Were the New Zealand companies star performers in the 1960's and 70's or in the 1980's? 2. Did their exports to the UK rise or fall? 3. Did they fall by well over or well under 50%? 4. Did the two companies find markets in South America or in the Middle East and East Asia? 5. Were their margins increased or reduced? 6. Why was Martin Middleton called Mr 'Long-term'? 7. Did the property the two companies bought when they were prosperous appreciate or depreciate in value? 8. Had Ulf Andersson given assurances that he was doing everything possible to import more from Tanzania? 9. Why is it difficult to export food to Sweden? 10. What was Carrington's conclusion after monitoring the situation for some time? 11. Did Frank Holloway reject or accept the idea of a research study into the markets? 12. Who did Carrington know in the marketing consulting firm? 13. What was the international network of consultants able to do? 14. What did the non-executive directors want to know? 15. Did Holloway say it was Group policy not to let subsidiaries have any autonomy at all? Notes on the Introduction Key business words downturn baixo downhill trend tendência de baixa highest bidder o que faz a melhor oferta seasonal businesses negócios de temporada, sazonais go into liquidation ser liquidada Comments on key structures • Note the expression new broom – vassoura nova. This refers to a person, usually a top executive, who enters a company and immediately begins to make changes. It comes from the popular saying A new broom sweeps clean. • Note the expression fighting a losing battle – travando uma luta perdida. • Note the word banning – proibição. This is much used in newspaper headlines because it is short: Minister bans strike – Ministro proíbe greve is an example. • Note the phrase they have kept going – continuaram. Notes on the Text star performers as empresas com melhor desempenho appreciating valorizando exchange of views troca de idéias expenses ... borne despesas... por conta de right-hand man braço direito expertise (know-how) especialidade, técnica Key business words Note the metaphor riding high on an endless wave of prosperity. The phrase comes from the sport of surfing and refers to being on the top of an exceptionally long wave (onda de prosperidade). When a person is said to be riding high, it means that all is going well. Comments on key structures Note the use of the phrase most important of all, though, was the fact that. This is used at the end of a list of anything from names of products to plans and operations. Compare the following: Smith, Jones, Fletcher and Danvers all agreed to sign. Most important of all, though, was the fact that Benson, the general manager, agreed to add his name to the list. We have increased production of frozen peas, beans, brussel sprouts and carrots. Most important of all, though, is the fact that output of the highly profitable minipacks of mixed vegetables has almost doubled this month. We have negotiated a loan for the factory extension and have arranged an overdraft facility of £200,000 for the next six months. Most important of all, though, is the fact that the building society has agreed to grant us a mortgage for the purchase of the Birmingham warehouse. Notice the use of the subjunctive should in the phrase It was agreed that Ulf should send one of his best men - Resolveu-se que Ulf mandasse um de seus melhores homens. Just as shall and will are auxiliary verbs to form the future and should and would are auxiliaries to form the conditional, so should is used to form the past subjunctive. Compare the following: It was agreed that we should ask for an increase in salary. Aborreceu-o que pedíssemos um aumento salarial. He said it was important that all doors should be locked. Ele disse que era importante que todas as portas fossem trancadas. I was very surprised that Smith should resign from the board. Muito me surpreendeu que Smith pedisse demissão da diretoria. Note that the last section of the text describes what was said at a board meeting. There are certain phrases in this section that are always used when writing the minutes (as atas) of a meeting. In particular: it was agreed that, asked or was asked, and responded by saying. Compare as used in the following: It was agreed that the cost was too high and that the plans would have to be shelved for the moment. Mr Brown asked the manager why the factory extension had not be built before. The manager responded by saying that there had been no need for it before. Mr Jones was asked if he favoured the plan. He replied that he did. Note that responded by saying is used instead of replied that when a person responds to an accusation and must answer in defence of an action. 391
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CURSOS DE IDIOMAS GLOBO BUSINESS ENGLISH AUDIOVISUAL INTERATIVO PROGRAMADO 9 PUBLICAÇÃO SEMANAL ILUSTRADA EDITORA GLOBO BUSINESS ENGLISH Vol. 9 UNIT 17 - 18 EDITORA GLOBO CURSOS DE IDIOMAS GLOBO BUSINESS ENGLISH O CURSO BUSINESS ENGLISH é um curso elaborado por especialistas para atender simultaneamente a leitores de três diferentes níveis de conhecimento da língua inglesa. * Nível 1. Indicado para pessoas com conhecimento elementar. * Nível 2. Acessível às pessoas com nível médio de conhecimento. * Nível 3. Indicado para pessoas que já dominam o idioma. Todas as lições dos fascículos apresentam uma sinalização: * = só o nível 1, ou 1º ano e nível elementar; ** = nível 2 e todas as lições; *** = nível 3. Apenas as seções com nível de conhecimento e número do fascículo. ** aparecem nos seis primeiros fascículos, exceto no final do curso. Nas últimas páginas aparece o índice dos fascículos, o número na sequência e o título. COMO ACOMPANHAR O CURSO Para obter o máximo de aproveitamento, estude a unidade no final das fascículos, onde as seções e exemplos propostos de prática e erros são examinados e as respostas são permitidas para cada unidade. Este material compreende: os Cadernos de Exercícios: um para cada unidade estudada e verificada; os textos nas unidades das páginas do próprio Caderno; o Gravador Dolby, onde a unidade é claramente ou destacadamente. Como material de apoio, tem o conteúdo e unidade devidamente grifadas: ... Para uma centralização completa, você encontrará no final os principais resumos e traduções no caderno final. AS FITAS Os principais diálogos e textos descritivos apresentados nos fascículos são reproduzidos em 15 fitas cassete que acompanham as edições de anos ou cursos em: anos 1, 3, 5, 7 e 9 (as unidades é um tipo de direção em: 4 cadernos, como curso de que 5 fascículos, série 5 volumes. Cada fita abrange 2 volumes relativos a unidades. NÚMEROS ATRASADOS A Editora Globo mantém suas publicações em estoque pelo próximo passo no momento. Já existem edições atrasadas de fascículos como parte da nova edição anual fotográfico, caso não haja algum domínio nas bancas. Escolha uma das opções abaixo: 1. NAS BANCAS Atividade para o distribuidor Cinrigale do seu local. 2. PESSOALMENTE Por meio do endereço abaixo: São Paulo: Rua Alfredo Ellis, 18 - Centro - Fones: (011) 226-1281 - 229-9257. Rio de Janeiro: Av. Venezuela, 58 - Santo Cristo - Fones: (021) 214-4427 e 262-5747. 3. POR CARTA Departamento Carta do cliente, setor de Números Atrasados. Caixa Postal 25, CEP 05966-001, São Paulo - SP. Barreiro, 1930 e Editorial Pará e Aspectim S. A., Barreiro. 1933) foi Editora Globo para a língua portuguesa, com sede em (AGP DELBR-LIULRI-CONUS) Comodidade relacionada ao consultor: Barry Kenchoc, instrutores terrestre; Barry Kench. Funções exploratórias relacionadas a conferências desempenhadas por Transcultural Language Skills, Rio Gramers e Sociedade Assistencial (AAAS), e Espanha Oliverpot. Trocado os direitos reservados. Nenhuma outra entidade pode promover vendas exclusivas ou limitar publicidade sem o consentimento do proprietário dos direitos autorais. Impresso e Conversa pelo: Fabecip nome Santiago Cruz Editor Globo S. A. Rua do Curtume, 665, CEP 05966-001, São Paulo, Caixa 011 8157, SP, Brasil. Distribuição executiva para todo o Brasil: Fernando Chiraglia Distribuidora S.A. Rua Teodoro da Silva, 907, CEP 20565-900, Rio de Janeiro, RJ. PLANO GERAL DA OBRA BUSINESS ENGLISH é uma obra publicada em 30 volumes semanais de 64 páginas. Cada edição combina 2 unidades de estudo (livreto) em 24 páginas cada, intercaladas pelos exercícios externos e internos. Todas as unidades são revistas com exames abordados no próprio anual. OUTRAS PALAVRAS DE REVISÃO Estudos relacionados ao consórcio transnacional de ensino; uma série que é a mais dura do curso. ASSISTENTE Através do grande poder examinado em uma série, apresenta uma série de questões transcritas. ISBN (da coleção): 85-250-1150-3 CONSELHO DE ADMINISTRAÇÃO Roberto Irineu Marinho João Roberto Marinho Roberto Marinho Filho Ricardo R. Fischer DIRETORIA Ricardo J. Fischer Fernando A. Ceotta Manuel Bezerra Filho José Arnon Seler Orlando Marques DIVISÃO DE FASCÍCULOS E LIVROS Diretor Ilano Barros Pinto Editorial: Santos F. F. Expedito (editor executivo) Anibal Santos Monteiro (editor de arte), Eleomar da Silva (assistente de redação) Colaboradores: Marlise Veloeisa (traduções) Marketing: Hercílio de Souza Paixão (editor) Carlos G. H. (remuneração de transferências), Elisabete Garcia Bianco (analista), Danilo Borges (gerente de produção), Zélia S. Arns (coordenadora) Diretor de Circulação: Wandercir Aniceto Matencio Diretor de Assinaturas: Celina de Marketing, Diretor de Assinaturas: Walperth Nonô Assessor de Comunicação: Maurício Costa Santos (diretor) Serviço de Apoio Editorial: Antonio Carlos Marques (gerente) OVERSEAS SUBSIDIARIES IN TROUBLE Unit 17 Contents ■ A Corporate Business □ Introduction Difficult and painful decisions. □ Fresh Frozen Foods Plc: Overseas Subsidiaries in Trouble The action taken to try to stop the relentless slide in the turnover and profits of the two New Zealand subsidiaries. □ Dialogue: Kiwis in Trouble Trying to find a solution to the problems that the two New Zealand subsidiaries have had since losing practically all their market in Europe. ■ Business Executives □ An Executive Writes Enclosing information instead of including it in the letter itself. □ An Executive Travels Travel Dialogues - On board the plane. ■ Business Matters □ Some Questions and Answers about… Banking (2) The merchant banks. □ Offices (7) Investing in computer facilities. ■ Business News □ The Cheese Makers (1) The growing number of small independent cheese makers in the UK. ■ The Use of English in Business □ The Tenses (9) The Past Perfect Continuous. Glossary of the Key Business Words and Phrases Used ■ Answers 385 A CORPORATE BUSINESS Introduction Subject: Difficult and painful* decisions. While a downturn in the profits of a subsidiary will attract the immediate attention of the parent company, it will not be cause for alarm. If this trend continues, however, something must be done about it. If there is no obvious reason for the slide, then there will have to be an investigation. A doctor will be sent to make a diagnosis. In this case the doctor will be the group's chosen troubleshooter. A report is made and action taken. It may be that a few executive heads will roll² and a 'new broom' will be appointed. Perhaps the workforce will be cut, certain products will be declared unprofitable, part of the fixed assets will be sold off or perhaps there will be a complete reorganization from top to bottom³. If the downhill trend continues the company will be sold off to the highest bidder. But what happens when the trouble is not the fault⁴ of the company but of the market? Suddenly there ceases to be a demand for its products. If this is temporary, as in seasonal businesses like ice cream in summer and umbrellas in winter, the problem is only short term. If, on the other hand, a company has all its eggs in one basket and the basket falls, what happens then? There are several possibilities: it can explore new markets, diversify if it is big enough, be sold off or go into liquidation. Someone somewhere has to make a difficult and painful decision. In spite of huge sums spent on advertising, the big tobacco corporations are fighting a losing battle against anti-smoking campaigns and the banning of smoking in public places. They have diversified and gone into chemicals, pharmaceuticals, food and cosmetics and they are now trying to open up new markets in the third world. For the moment they are still making profits. These profits, however, are not what they were. The two New Zealand subsidiaries of Fresh Frozen Foods have seen all but about 10 per cent of their European market disappear since the EC restricted imports in the 1970's. They have kept going by seeking new markets in the Middle East and East Asia but their profits have been decimated⁵. The time has come for the parent company to take decisive action. We shall now see how they begin to deal with the crisis. * painful dolorosas ² heads will roll rolarão cabeças ³ from top to bottom de cima a baixo ⁴ fault culpa ⁵ decimated dizimados 386 Fresh Frozen Foods Plc. Overseas Subsidiaries in Trouble Subject: The action taken to try to stop the relentless⁶ slide in the turnover and profits of the two New Zealand subsidiaries. The beginning of the trouble In the 1960's and early 1970's the New Zealand companies Southern Frozen Meat and Te Kuiti Canners were the star performers⁷ among the Group’s overseas subsidiaries. Then the UK entered the EEC and a black shadow⁸ was cast⁹ over the prosperity of these two fine¹⁰ companies. Their exports to the UK fell by well over 50% in just three years. Their profits plummeted as years before they had soared. The situation was very serious indeed. Fortunately both companies had a young, dynamic management team - it was this that had made them so prosperous - and they did not accept defeat. They sent their salesmen far and wide in search of¹¹ business. They found it in the Middle East and in East Asia. They were forced to cut their prices and very often had to wait for payment from customers in countries where they had a different conception of doing business. Their margins were reduced to a minimum and they were obliged to sell off fixed assets in order to keep going during some of the more difficult periods. The fact that they had assets to sell was thanks to Martin Middleton, the managing director of Group when it was Bryant & Lester. Middleton was often called 'Mr Long-term', because he was always thinking years ahead. When the New Zealand companies were riding high on a seemingly endless wave of prosperity, Middleton insisted that they bought offices, warehouses, factory space and land in prime areas. An appreciable percentage of their profits was regularly invested in such properties. These properties were needed for their business and they were used. Their offices, factories and installations impressed overseas customers, who noted that they were dealing with important companies well organized for international trade. Most important of all, though, was the fact that these properties were appreciating all the time. Both companies have managed to survive by selling them off. The last sale was just a few months ago when Te Kuiti Canners sold a fruit plantation they had near the town of Auckland. It is now being converted into a golf course for the Japanese. Head office decides to act On Wednesday 21st February Frank Holloway and Paul Hemmings had a long discussion about the plight¹² of the New Zealand companies and decided the matter was urgent. As they had had assurances from Ulf Andersson, the managing director of Triple F Svenska, that he was doing everything possible to import more from New Zealand, it was decided that he should come to London for an exchange of views about the situation. ⁶ relentless inexorável ⁷ shadow sombra ⁸ cast projetada ⁹ fine ótimas ¹⁰ in search of em busca de ¹¹ plight situação difícil 387 A CORPORATE BUSINESS Ulf came to London almost immediately, just two days later, in fact. He explained that Sweden was practically self-sufficient in food, so that it was not easy to import food that was already available in the country. This meant that he could do nothing about imports of frozen lamb. Fruit, however, was another question. 'Until we have succeeded in growing oranges and pineapples in Sweden, we shall have to continue importing them', he laughed.12 It was agreed that Ulf should send one of his best men to New Zealand to see what they were producing and whether or not there would be a market for it in Scandanavia. All expenses would be borne by the head office. Frank Holloway impressed upon Ulf that this was a very serious mission and that if it resulted in business being done in Sweden, Norway and Finland — not Denmark because they are EC — it would help towards saving these companies. 'We are not interested in expanding into Europe and taking over companies if we have companies within the Group desperate to survive', said Holloway. Andersson returned to Sweden convinced of the importance and the urgency of getting something done. Just three days later Sten Johansson, Ulf's right-hand man, was on his way to New Zealand. A matter for marketing Holloway and Hemmings had not been able to discuss the matter with Leslie Carrington, the director of business development, because he had been away in Italy. The morning he came back Frank Holloway rang through to him and half jokingly13 told him he had to go to New Zealand. A few minutes later all three were discussing the problem. Carrington said that he had been monitoring the situation for some time and had reached the conclusion that here was a matter for the marketing people to handle. He now asked Hemmings to approve the commissioning of a marketing study done by an outside consultancy firm. The idea was to research every country that might possibly import the products that the New Zealand companies were producing. The study would cost about £25,000. It is an indication of the seriousness of the situation that Frank Holloway did not hesitate for a moment. The study was commissioned immediately. Some slight doubts Paul Hemmings could not understand why a multinational like Fresh Frozen Foods could not do its own market research. As he saw it, the fact that the market research was international made no real difference. In addition, he had FRESH FROZEN FOODS (AUSTRALASIA) LTD WESTERN AUSTRALIA CANNED AND FROZEN FOODS MARTINDALE CANNING CORPORATION TE KUITI CANNERS SOUTHERN FROZEN MEAT CO. never liked consultant firms. He had the impression that one man, an expert in a particular field, had started a business to exploit his expertise. He employed a group of assistants, who were not experts, to work under his supervision. As he was always looking for business and persuading potential clients to make use of his know-how, he did not have time to supervise his team properly. The result was the production of beautifully presented studies, surveys and reports which did not deserve to be printed on such expensive paper or enclosed in such expensive folders. Leslie Carrington agreed with him, but said that in this particular case he knew all the partners of the consultant firm and that not only were they highly efficient but they belonged to an international network of consultants that supplied very quickly reliable up-to-the-minute information. Hemmings was convinced. The Board discuss the situation The problems of the two New Zealand subsidiaries were at the top of the agenda at the next meeting of the Board. The non-executive directors wanted to know why nothing had been done until now. If these companies had been in such serious difficulties for so long, why was no action taken? Holloway responded by saying that if the policy of the Group was to let subsidiaries have the maximum amount of autonomy, it was not possible to interfere too much in their affairs. He said that when a subsidiary got into difficulties, it should have to fight for its own survival. If it was unable to do this, then it should be sold off. If, on the other hand, it made every effort to overcome14 the downturn in its fortunes, it should have the help and encouragement of the parent company. The New Zealanders had done remarkably well to survive for so long and they deserved and would be getting immediate help. That was Holloway's opinion and the Board accepted it. Later on we shall see the results. 12 laughed gracajou 13 jokingly por brincadeira 14 overcome superar The Economies of Australia and New Zealand Once upon a time, these two countries considered themselves as extensions of Great Britain in the Antipodes. Now the links with the UK are about the same as those between Spain and Latin America. New Zealand relied on the UK even more than Australia as a market for its exports of wool, lamb and butter. Now it is looking for new markets to replace those the EC has closed to it. Australia is fortunate in being one of the world's largest mineral producers, exporting iron ore, aluminium, coal, bauxite, nickel, zinc, copper, silver, gold, and tin etc. At the moment its wool industry is going through a difficult period – see BUSINESS NEWS Unit 14 – but that is just one of its many commodity exports. There has always been an exodus from New Zealand to Australia – land of opportunity – and this will probably increase now. Australia’s population is five times the size of New Zealand's. Australia is growing and New Zealand appears to be shrinking. A CORPORATE BUSINESS Text Comprehension Answer the following questions: 1. Were the New Zealand companies star performers in the 1960's and 70's or in the 1980's? 2. Did their exports to the UK rise or fall? 3. Did they fall by well over or well under 50%? 4. Did the two companies find markets in South America or in the Middle East and East Asia? 5. Were their margins increased or reduced? 6. Why was Martin Middleton called Mr 'Long-term'? 7. Did the property the two companies bought when they were prosperous appreciate or depreciate in value? 8. Had Ulf Andersson given assurances that he was doing everything possible to import more from Tanzania? 9. Why is it difficult to export food to Sweden? 10. What was Carrington's conclusion after monitoring the situation for some time? 11. Did Frank Holloway reject or accept the idea of a research study into the markets? 12. Who did Carrington know in the marketing consulting firm? 13. What was the international network of consultants able to do? 14. What did the non-executive directors want to know? 15. Did Holloway say it was Group policy not to let subsidiaries have any autonomy at all? Notes on the Introduction Key business words downturn baixo downhill trend tendência de baixa highest bidder o que faz a melhor oferta seasonal businesses negócios de temporada, sazonais go into liquidation ser liquidada Comments on key structures • Note the expression new broom – vassoura nova. This refers to a person, usually a top executive, who enters a company and immediately begins to make changes. It comes from the popular saying A new broom sweeps clean. • Note the expression fighting a losing battle – travando uma luta perdida. • Note the word banning – proibição. This is much used in newspaper headlines because it is short: Minister bans strike – Ministro proíbe greve is an example. • Note the phrase they have kept going – continuaram. Notes on the Text star performers as empresas com melhor desempenho appreciating valorizando exchange of views troca de idéias expenses ... borne despesas... por conta de right-hand man braço direito expertise (know-how) especialidade, técnica Key business words Note the metaphor riding high on an endless wave of prosperity. The phrase comes from the sport of surfing and refers to being on the top of an exceptionally long wave (onda de prosperidade). When a person is said to be riding high, it means that all is going well. Comments on key structures Note the use of the phrase most important of all, though, was the fact that. This is used at the end of a list of anything from names of products to plans and operations. Compare the following: Smith, Jones, Fletcher and Danvers all agreed to sign. Most important of all, though, was the fact that Benson, the general manager, agreed to add his name to the list. We have increased production of frozen peas, beans, brussel sprouts and carrots. Most important of all, though, is the fact that output of the highly profitable minipacks of mixed vegetables has almost doubled this month. We have negotiated a loan for the factory extension and have arranged an overdraft facility of £200,000 for the next six months. Most important of all, though, is the fact that the building society has agreed to grant us a mortgage for the purchase of the Birmingham warehouse. Notice the use of the subjunctive should in the phrase It was agreed that Ulf should send one of his best men - Resolveu-se que Ulf mandasse um de seus melhores homens. Just as shall and will are auxiliary verbs to form the future and should and would are auxiliaries to form the conditional, so should is used to form the past subjunctive. Compare the following: It was agreed that we should ask for an increase in salary. Aborreceu-o que pedíssemos um aumento salarial. He said it was important that all doors should be locked. Ele disse que era importante que todas as portas fossem trancadas. I was very surprised that Smith should resign from the board. Muito me surpreendeu que Smith pedisse demissão da diretoria. Note that the last section of the text describes what was said at a board meeting. There are certain phrases in this section that are always used when writing the minutes (as atas) of a meeting. In particular: it was agreed that, asked or was asked, and responded by saying. Compare as used in the following: It was agreed that the cost was too high and that the plans would have to be shelved for the moment. Mr Brown asked the manager why the factory extension had not be built before. The manager responded by saying that there had been no need for it before. Mr Jones was asked if he favoured the plan. He replied that he did. Note that responded by saying is used instead of replied that when a person responds to an accusation and must answer in defence of an action. 391