business explainations:
Provision is not a form of income for a universal bank, but interest and commission is.
Accounts payable and long-term debt are liabilities on a company balance sheet, but inventory is not.
Fixed assets and intangible assets are items on a company balance sheet, but expenses are not.
Earnings and net income match wit heachother, but revenue does not. Revenue is not a form of a profit like earnings and net income is.
Shareholder's equity and capital and reserves match with each other, but investments does not. Investment does not match with other 2 words, because you have to spend money when doing investment.
business abbreviations:
P/E: price earnings ratio
IPO: initial public offering
APR: annual percentage rate
GAAP: generally accepted accounting principals
EBITDA: earnings before interests, taxes, depreciation and amortization.
business sentences:
We are still a little bit confused about the new marketing campaign for June and July. Maybe we could discuss it later today.
We have nearly completed our presentation and would like some advice fro you before we show it to the boss. Do you have any projectors in your company?
BTW, do you know whether management wants us to to go to Worms next week? If they do, we will have to take the early plane and book the hotel this week. We think we should go, what about you?
British English business terms and their American English equivalents
solicitor = attorney
negotiable instruments = commercial paper
articles of association = bylaws
voluntary liquidation = dissolution
competition law = antitrust law
claimant = plaintiff
Mergers & acquisitions: Why do most mergers fail?
Mergers do not have a lot of advantages, but companies should have in mind that most mergers fail and do not create value.
This can happen because of miscommunication and because the companies have different objectivs, organisational structures or corporate cutures which do not fit with each other. Although a bad preparation can lead to problems and if the companies have underestimated the costs and risks of a merger, it can be problematic either. Many mergers do have the consequence of losing customers, because the customers do not identify themselves with the new company anymore. So companies should have in mind that the biggest challenge are always the people, either the employees or the customers.
If they can not identify with the new company and its image, companies have to work hard to vercome this hurdle and try to hold customer's loyalty.
Sony: Which marketing tools or strategies would you use to market a robotic dog in Germany?
The robotic dog represents a lot of gadgets and stands for an electronic lifestyle. To market this to customers in Germany Sony has to work and think about a good marketing strategy, because people in Germany are not so addicted to technology as people in Asia are. This is why Sony has to adapt it's marketing strategy especially to the German customers. They should use all available media channels as many people as possible. Tehy can use IU advertisements, print media or e-mail marketing. Events should play a big role, because it enables the customers to experience the features of the robotic dog. Then they should use the customers testimonials, that means using the customers as non-pact ambassadors to get get feedback from them and include their opinion in the marketing campaign.
Sony should evaluate its marketing activities by using sales figures and customer satisfaction surveys to see if their strategy is successfull in Germany.
Case study: Primark: Primark model & Mr Marchant's dilemma
Primark focuses on high - quality merchandising at value for money prices.
Tehy sell at rock-bottom prices and to be able to do this, they have to keep their production and operational costs minimal. They only use private labels and do not use any direct advertisement or celebrity endorsement.
Primark has just a small number of stock keeping units and orders large volumes from its suppliers and sells overstock quickly and at an extreme discount. Ferthermore they are located at their large stores outside of downtown, so that they are not easy to end. This means that the company relies on word-of-mouth and just docuses on cheap products.
Mr. Machant face several dilemmas. The first one is the prompt international expansion in order to enter new markets and reach more customers. The problem here is that some brands smuggle when leaving their home base and because of the different shopping cultures in the different countries it is not sure if their concept will be successfull in other countries. The next dilemma is the model modification, e.g. moving sales online, so they should decide if they stay with their traditional high-street model or if they move their sales online too. And last but not least Primark has the problem of a lack of social responsibility. This happens, because you often find bad press about the company, for example about the overtime laws, the child labour and the poor quality of the products. In order to be successful in the future, they have to clean up their social reputation.
China's fakes & it's impacts: what are the different effects of counterfeiting on the global economy & rights holders and what are the advantages of combating it.
China has the one of the most important counterfeiting problems in the world's history. This causes damage to the global economy. Innovation gets underminded, criminal networks gain financially and the environment gets negatively affected. It also encourages sweatshop conditions and and can lead to a decrease of foreign investment, because of the fear of getting copied. So counterfeiting influences the whole trade structure. Right holdes have to deal with a damaged brand value, lower royalties and a lower sales volume. Also they will have more costsin order to combat counterfeiting when combating counterfeiting this may have a positive impact on the environment and the economy.
COmpanies will invest more in innovation and R&D and also the foreign investments will increase again. Consumers can profit more of a better quality and do not have to care about health and safety risks of products. Also governments will benefit from it, because of an increase in tax revenues. The criminal networks won't be supported anymore and a better and faster trade is possible.
Review on the article "Crisis in the eurozone" written by Chrostopher Alessi and published at Manila times.
The eurozone was implemented in 2002 with one single currency for the 17 members in order to increase the economic integration and improve the trade as a further step of the Maastricht Treaty. Originally Maastricht laid out several criteria for those EU-members that wanted to enter the euro zone.
They should have a healthy financial situation with a low inflation rate and a good productivity. In reality it was clear from the beginning on, that some of the members are not able to fullfill these criteria on the long term and so less solvent EU-members were allowed to adopt the euro, which means they entered the euro without a deep restructuring. Nowadays we have to deal with the consequences of it, because those countries threaten the eurozone's liability and triger a eurozone sovereign debt crisis, because more and more members ask for rescue and bail out packages in order not to get insolvent Greece.
Crisis is one of the most serious examples. The crisis was a result of prolonged defeat spending economic mismanagement, government misreparting and tax evasion. Therefore they already received two bailout packages, but also those couldn't prevent a political chaos as a result of all the austerity measures. Ireland is another country that received financial aid, but there the crisis was spured by a bank default crisis. And the risk is still increasing, because of Portugal's worsering debt crisis and Spain's rising budget defeat. Especially the debt crisis in Italy is a bit problematic, because it is the eurozone's third largest economy and a bailout is not an option for them. SO they already had a lot of reforms and changed their discourse to a more growth oriented approach, which showed it is obviously, theat the EU needs th reform in order to prevent further crisis and to coordinate fiscal and economic policy. That is why a fiscal union is planned together wit ha fiscal pact, when Germany haven't accepted the eurobonds.
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