Economische Vaktaal Engels _ 1e Ba Handelsingenieur

8/17/2019 Economische Vaktaal Engels _ 1e Ba Handelsingenieur

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ECONOMISCHE VAKTAAL ENGELS – 1 e BAHANDELSINGENIEUR

1) Industries en c !"#nies

$ Industry groups

• First way to classify an economy:Primary industries: agriculture, forestry and mining.

Secondary industries: construction and manufacturing. Manufacturing: capital goods (equipment and machinery toproduce goods), dura le goods (cars, washing machines)

and non!dura le goods (food, clothing).

Ser"ice industries: an#ing, entertainment, tourism.

• Second way: $he pri"ate sector: large corporations, SM%s (&small andmedium!si'ed enterprises) and indi"iduals wor#ing on aself!employed asis.

$he pu lic sector: schools, hospitals and S %s (& state!owned enterprises, railway,..)

• $hird way:Industry groups

$ $ypes of usiness

Sole trader: usineess owned y one person, self!

employed, unlimited lia ility (personally responsi le for anyde ts). Self!employed professional freelancer

* partnership: $wo or more people. %+amples: lawyers,architects,..

* limited lia ility: a legal distinction etween the companyand the owners, company is responsi le for any de ts,owners ha"e limited lia ility-, the company is pri"ate. td

& limited, lc & limited lia ility company. %+ample: family!usiness


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* pu lic limited company: company is owned yshareholders (large /nanacial institutions ( an#s,..), othercompanies and mem ers of the pu lic), shareholders

recei"e a share of pro/ts, capital gain or loss y selling theshares, run y managers, super"ision of the oard. Plc orInc or 0orp.

* frachise: $he usiness owner allows other people(&franchisees) to set up in usiness using the company-s

rand name, products and reputation.

$ usiness e+pansion

Internal growth: stay pri"ate. %"erything increases ut thecompany stays pri"ate.

Internal growth: IP (&initial pu lic o1ering) process ofissuing shares for the /rst time. 0ompany: small large.

Internal growth: trade sale- to a larger company in thesame sector. $he original small company is a sor ed andthe name often disappears.

Merger: 2 companies 3oin to form one.

*cquisition (&ta#eo"er): ne company uys another. Startswith uying a large amount of shares. $he company often#eeps his nme, ecoming a su sidiary of the parentcompany-.

$ 4oca ulary4enture: a new usiness acti"ity.%nterprise: a company or any large important pro3ect.5e t: an amount of money that some ody owns.

ia ility: the amount of money that a company owns.Firm: synonym for company.

%)G& '#&i(#ti n #nd ec n !ic " &ic

$ Forces dri"ing glo ali'ation


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0ost factors: cheeper la our and manufacturing costs,outcourcing to other countries. ow costs ma3orcompetiti"e ad"antage.

Mar#et factors: emerging mar#ets o1er new opportunities,6I0s (& ra'il, 6ussia, India and 0hina) dominate theworld. 7eed to esta lish a glo al presence for glo alcostumers.

$echnology factors: the internet, mo ile communicationand software tools.

8lo al usiness cycle: reco"ery (& upswing) growth (&

e+pansion, oom) recession (& contraction, downturn)depression (& slump).

$ 0ompanies strategy in the face of glo ali'ation

$hree asic strategies:

Import9 %+port: lowest ris#, lowest pro/t potential.

utsourcing: deeper le"el of in"ol"ement, with a long!termcontractual agreement. outsource manufacturing

Foreign direct in"estment (F5I): highest ris#, gi"es themost control, shows the most commitment to the glo almar#et. 0ompanies uy property and usinesses in theforeign nation. *cquisitions to create o"erseas di"isions(su sidiaries), 3oint "enture and strategic alliances.

$ Politcal strategy in the face of glo ali'ation

2 asic responses:

eing in fa"our of mar#et forces and deregulation: la ourmar#ets more e+i le, lower ta+es to encourage pri"atein"estment and spending, encourage free trade an cut redtape ( ureaucracy) to ma#e it easier to start a new

usiness.


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eing in fa"our of su sidies and protectionism: protect the 3o security and social ene/ts, high ta+es in order to payfor social programmes and other go"ernment spending andprotect national usiness with measures such as tari1s

(&ta+es) and quotas (&limits) on imports.

$ Measuring and analy'ing glo al trade

$hree concepts:

alance of trade: di1erence etween a nation-s importsand e+ports. More e+port than import trade surplus, less

trade di ict.

alance of paiements: alance of trade ; alance ofin"estments and ser"ices.

%+change rates: 0urrencies uctuate according to supplyand demand. 4alue falls e+ports increase and foreignin"estment is stimulated, imported goods moree+pensi"e feel li#e a drop in their li"ing standards.

$ 4oca ulary , *S%*7 & regional loc#s that promoteeconomic integration6oyality: * company gi"es the right to manufacture itsproduct to a foreign company for a fee.

*)C r" r#te str#te+ #nd structure

$ Strategy and planning

S= $ analysis: Strengths, =ea#nesses, pportunities and $hreats.


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$ o p & s e n i o r

m a n a g e r s ? 0 % ( & 0 h i e f % + e c u t i " e ( @ c e r ? 0 ( ( & 0 h i e r ( p e r a t i n g ( @ c e r ? 4 i c e p r e s i d e n t s o r d i r e c t o r s o f d i 1 e r e n t d e p a r t m e n t s ? 4 i s i o n o f t h e c o m p a n y

M i d d l e m a n a g e m

e n t ? M a n a g e r s o f d e p a r t m e n t s , d i " i s i o n s , . . ? 5 e " e l o p d e t a i l e d p l a n s a n d p r o c e d u r e s

S u p e r " i s o r y

m a n a g e m e n t ? $ e a m l e a d e r , s u p e r " i s o r , S e c t i o n 0 h i e f

? 6 e s p o n s i l e f o r a s s i g n i n g n o n ! m a n a g a r i a l e m p l o y e e s

2 main types of planning:

Strategic planning: longer term, ig picture, de/ning thecompany mission, determing the o"erall goals and allocate

resources to reach these goals. 5one y top and middlemanagers.

perational planning: translate the long!term goals intoconcrete o 3ecti"es, day!to!day wor#. 5one y middle andsuper"isory managers.

$ 0ompany structure

rgani'ation y function: company is di"ided intodepartments as production, /nance,..rgani'ation y product: sta1 who is in"ol"ed in the same

product line.rgani'ation y customer type: di1erent sectors. arge

customers & #ey accounts.rgani'ation y geographical area: organi'ed according to

regions.

est way to organi'e the management hierarchy (&chain ifcommand):

0ross!functional teams: employees from di1erent parts ofthe organi'ation wor# together.


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Self!actuali'ation needs?Self!ful/lment: to achie"e, to de"elop to our fullest potentional

%go (self!esteem) needs? 6ecognition and ac#nowledgement, sense of status or importance

Social needs? Feel accepted and part of a group

Security needs? 7ot an issue in usiness

Physiological needs? 7ot an issue in usiness

• Maslow: Aierachy of needs:

• Aer' ergSimilar ideas, most important: sense of achie"ement,earned recognition and interest in the 3o . ut also:hygiene, maintenance can cause dissatisfaction: salary,

3o security, wor#ing conditions and good relations withco!wor#ers.

• Mc8regor: 2 categories of managers


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$heory D

People disli#e wor#

Must e: controlled,directed to achie"e

the organi'ationgoals.

$heory E

People li#e wor#

See# responsi ilityelie"e in:

empowerment (ma#edecisions without

managerial appro"al),ena ling (gi"ing them

the tools).

• 5ruc#er:M & Management y 3ecti"esFormulate clear

*m itious ut achie"a le goalsMonotoring and measurement: ensure o 3ecti"es areeing met

6ewarding: pay rise, onus

$ 0ommunication

$hree ways: top down or ottom!up or e+ternal (P6)

•

Informal communication:*ll the timePic#ing up information on the grape"ine (from oneperson to another in a con"ersation)5iscussing o@ce politics

• Formal communicationMeetings, presentations, reports7ot to practice in a oo#:

I. *cti"e listeningFull attention


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7ot interrupting e+cept to as# for clari/cation8i"ing consideration to another point of "iew

II. *sserti"enessStating your needs and opinions con/dently and

clearly7 $: eing indirect or su1ering in silence, eingaggressi"e or rude.

$ $eamwor#

• $eam (or tas#force9wor#ing party) personality types

Aead: thin#ing and pro lem!sol"ing

Aand: doing and actingAeart: networ#ing and resol"ing con icts

• stages of de"elopment:

Forming: get to #now eachotherStorming: ideas get suggested, con icts arise (clarify theirroles and e+pectations)7orming: wor#ing together and own or share team

o 3ecti"esPerforming: sol"ing pro lems and doing tas#s. (Milestones:e"ents that mar# an important stage in a process)*d3ourning: /nished, pu lic recognition and cele ration ofachie"ement.

$ 4oca ulary

*utocratic: instructions gi"en

5emocratic: sharing responsi ility and decision!ma#ingaisse'!faire: Minimal super"ision

-) O"er#ti ns !#n#+e!ent

$ perations& $he use of resources that are de"oted to the productionand deli"ery of products and ser"ices.


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& 0ore usiness and support functions (Mar#eting, A6,/nance)& Product de"elopment, managing the supply chain,production planning and control, illing and shipping.

administration

asic performance o 3ecti"es:

For the organi'ation For the customerGuality %rror!free process Products that are

on!spec (ha"ing therequiredspeci/cations)

0ost Aigh le"el ofproducti"ity 0ompetiti"e price

5ependa ility perationalsta ility

6elia le deli"ery(quantity H on time)

Fle+i ility * ility to respondto change

4olume anddeli"eryad3ustments, wideand frequentlyupdated product

rangeSpeed Fast trough!put Short lead!time(time etweenplacing order anddeli"ery)

$ 5e"eloping new productsIdeas from mar#eting9operations concept rief (&clearstatement descri ing the form, function, purpose and

ene/ts of the product)perational issues:

• Feasi ility: 0an we ma#e thisC (s#ills, capacity,resources..)

• 4ulnera ility: =hat can go wrongC 5ownside ris#C• Materials, parts and components will e neededC• 6educe production costs y reducing design comple+ityC

opportunities for:Standardi'ation (restricted "ariety)C


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0ommonality (using the same components)CModulari'ation (using su components that can e puttogether in di1erent com inations)C

• Aow can we reduce time!to!mar#et (time etween

concept rief and launch) and roll!out (phasedintroduction)C

$ Managing the supply chain

First!tier supplier: * component ma#erSecond!tier supplier: $he component ma#er-s supplier

$ogether upstream or supply side

First!tier customer: * distri utorSecond!tier customer: $he distri utor-s customer

$ogether downstream or demand side

Supply chain management:• Procurement (sourcing ; purchasing) from /rst!tier

suppliers•

Material management inside the plant: in"entory (stoc#)management ; production planning and control• ogistics (distri ution) to /rst!tier customers

Strategic issues:• 0ompany directly own any part of the supply chainC EesC

"ertical integration• pting for single or multi!sourcingC

ne supplier ; good communication, economies of scale (& costsa"ings from uying in large quantities)! ris#s of failure of supply, supplier got the chance togi"e upward pressure on prices

• Aow much of the process can migrate to the we(/nding the est price, deli"ery time and speci/cationstrough e!procurement)C

4irtual operation: uying a range of functions needed for aparticular pro3ect, after the pro3ect this networ# disappears.

speed and e+i ility, ut the company is left with "ery


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few core competencies (& #ey areas of technical e+pertise)where it retains a competiti"e ad"antage.

$ 4oca ulary

6FI5 tags: radio frequency identi/cation%P S: electronic point!of!scale

%M: original equipment manufacturer

.) /r ducti n

$ Managing the production process

* plant: where manufacturing ta#es place (factory9facility)0apital!intensi"e: requiring a lot of /nance

a our!intensi"e: requiring a lot of manpower

Inputs (materials, la our and informations) /nishedgoods, e@cientC Aigh le"el of producti"ity

ey stages:

• Planning: ring together customer demand withoperational issues of "olume, timing and the purchase of materials. ill of materials is produced and comparedwith the e+isting in"entory purchases are made

• Sequencing: =hich wor#station will carry out which tas#sin which order

• Scheduling: =hen should tas#s start and /nish• 5ispatching: $he super"isor authori'es tas#s to egin• oading: Materials or parts are introduced to an

operation so it can egin• Monitoring: 0hec#ing process, eliminating ottlenec#s

and identifying and sol"ing pro lems

ey issues:

• 0ontrol of capacity: $here might e a need to ramp up(increase) the production

• 0ontrol of in"entory


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$ ean operations and


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$ 4oca ulary9

0)M#r etin+ str#te+ #nd "r duct de2e& "!ent

$ Mar#eting strategy• *nalysis of the wider usiness en"ironment:

political9legal, economic, social9cultural andtechnological factors (P%S$)

• Identi/cation and analysis of target mar#ets• Sales goals• Mar#eting udget• Mar#eting mi+ (four P-s) and their timing

Product, price, place and promotion.Sometimes a /fth pac#aging: attracts the attention,e+plains the ene/ts of the product, descri es thecontents, protects the product and contri utes tocon"enience and ease!of!use.Sometimes a si+th people: #nowledge, s#ills andpersonality of the pre!sales and after!sales sta1 whocome in contact with the customer.

$otal product o1er: di"ersity of elements that ma#e up aproduct li#e "alue!for!money ( alance quality and price),

rand name and image, pac#aging, con"enience of saleschannel, store surroundings, ser"ice, speed of deli"ery, theguarantee,..

$ Mar#et research collecting data using mar#et research

• Secondary data: information that is already a"aila le $he company-s sales /gures according to di1erentcategories: customers, product lines,..%+trernal data found in pu lished sources li#e reportsfrom go"ernment agencies, trade associations,..

oo#ing at the customer-s uying patterns in mar#etswhere the product is already a"aila le.

• Primary data: data collected for the /rst time5i@cult and e+pensi"e

%@cient: e+act answers to questionsGuantitati"e information (carrying out a sur"ey)


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Gualitati"e information (face!to!face inter"iews)oo#ing at the acti"ity of the competitors (&enchmar#ing) product range and mar#eting strategy

%thnography: studying people-s eha"ior in naturalen"ironments

$ Mar#et segmentation

$arget mar#etC• Industrial product: 2 usiness!$o! usiness• 0onsumer product: 20 usiness!$o!0onsumer• Products for use in hospitals, schools: 28 usiness!$o!

8o"ernment

Mass mar#et: speci/c mar#et segmentsProduct!related: comfort, safety, lu+ury, good "alue!for!money, con"enience, dura ility,N5emographic: age, gender, education, family,NPsychographic: attitudes, lifestyle, opinions,N8eographical: region, post code,N

$ 4oca ulary9

3)Distri'uti n #nd "r ! ti n$ 5istri ution

Final lin# in company-s supply chain8etting the right products to the customer at the right timePhysical handling of goods, warehousing, choice of

distri ution channel, choice of retail outlet and orderful/llment (& doing something that is promised)

$ $he promotional mi+

• Personal selling:o Prospecting: identifying the potential customero *pproach: contacting the prospect and preparing for

the sales inter"iew


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o Presentation: features of the product, highlighting thead"antages and gi"ing e+amples of satis/edcustomers

o 5emonstration: see the product in useo *nswering o 3ections: customers ha"e a chance to

e+press their dou tso 0losing: as#ing to uyo Follow!up: processing the order quic#ly and e@cientlyo ong!term relationship: regular contact with the

customer• *d"ertising: use of di1erent media• Pu lic relations: managing pu licity (information that

ma#es people notice a company)• %"ents: memora le occasions• Sponsorship: sportteams, opera,N• %ndorsements y cele rities• $rade promotions to retailers: stoc# a new product

ther: product placement in /lms, word!of!mouth (personalrecommendations), "iral mar#eting (online social networ#ing)

• 8uerilla mar#eting: all uncon"entional techniques ("iralmar#eting, free products)

$ uilding customer relationships

• Promotion for long!term relationships with customers• $ools for de"eloping customer relationships:• uilding a rand identity: sponsorships• Frequency programmes: yer programmes on airlines• Forming communities of uyers: chatrooms on the

internet• *@nity mar#eting (& attracting customers on the asis

of their other interests)• Indi"iduali'ed ad"ertising: ased on pre"ious purchases• 0o!mar#eting: toy at Mc5onalds that lin#s to a new

5isney /lm• >sing 06M software to gi"e more personal e+perience

during the contact with the company

$4oca ulary9


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4)Acc untin+ #nd 5n#nci#& st#te!ents

$ Preparation of the accounts

I7P>$S (& documents, purchasing documents, payrollrecords, an# records, tra"el and entertainment records)

5*$*

Processed y speciali'ed software

recorded chronologically into 3ournals information from the 3ournals transferred into ledgers (&groot oe#en), there it accumulates in speci/c categories a trial alance-: at the end of each accounting period

• * summary of the ledger information to chec# whetherthe /gures are accurate

• >sed directly to prepare the main /nancial statements(income statement, alance sheet, cash ow statement)

•

In large companies: chec#ed y e+ternal /rm that signo1 the accounts (they declare they-re correct)• *lso pu licly a"aila le and appear in annual reports

$ Pro/t and oss account& income statement, PH• Summari'es usiness acti"ity o"er a period of time• $otal sales (re"enue) during a period and deduct the

costs related to producing that re"enue

$ alance sheet& reports the company-s /nancial condition on a speci/cdate*SS%$S & I* I I$I%S ; SA*6%A 5%6-S %G>I$E

• *ssets: anything of "alue owned y a usiness• ia ilities: amount owned to a creditor


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• Shareholder-s equity: what remains from the assets afterall creditors theoretically een paid (share capital &original in"estment and retained pro/t)

$ 0ash ow statement0ompanies need a separate record of cash receipts andcash payements=hyC Shows the real cash a"aila le to #eep the usinessrunning day to day (pro/ts only on paper until the moneyactually comes in many techniques to manipulate thepro/t)

Pro lems:•

>ne+pected late payements and non payements• >nforseen costs• >ne+pected drop in demand• In"ested too much in /+ed assets

Solutions:• 0redit control: chasing o"erdue accounts• Stoc# control: #eeping low le"els of stoc#, minimi'ing

=IP and deli"ering more quic#ly• %+penditure control: delaying spending on capital

equipment• * sales promotion• Factoring: using an outside company to reco"er a de t

$ 4oca ulary6e"enue: income

0ost of goods sold (&direct costs): manufacturing costs,salaries of manual wor#ers

perating e+penses (&indirect costs): salaries of sales ando@ce sta1, mar#eting costs

7on!operating income: pro/ts from in"estments in othercompanies

% I$5*: %arnings efore Interest, $a+, 5epreciation and*morti'ation


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%arnings: pro/t

5epreciation: loss in "alue of a tangi le asset

*morti'ation: loss in "alue of an intangi le asset written o1

Interest: money paid to the an# for loans

5i"idends: money paid to shareholders

6etained pro/t: !B alance sheet, 3oins the amounts frompre"ious years

*ccounts recei"a le: amount owned to the usiness ycustomers (creditors)

In"entory: "alue of raw materials and stoc#

0urrent assets: mar#eta le securities (& shares intendedfor disposal within one year)

Fi+tures: part of a uilding that cannot e mo"ed (eg. ight)

Fi+ed assets: long!term /nancial in"estments

Intangi le assets: patents, trademar#s and goodwill(&reputation, contacts and e+pertise of companies thatha"e een ought)

an# de t (&loan capital): includes o"erdraft (&temporarynegati"e alance)

*ccount paya le: money owned to suppliers

*ccrued: an e+pense has een incurred, ut the money isnot yet paid

Pro"isions: appear under current lia ilities. *mounts setaside for anticipated one!time payments that are not partof the regular operations


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Mortgage: long!term an# loan to uy a property

Principal (&amount raised y issuing the onds): repaya leto the ond holders at maturity

Share capital: amount raised at initial otation on the stoc#mar#et

6etained pro/t: reser"es

16) 7in#nci#& !#r ets

$ Securities

& stoc#s, onds and money mar#et instrumentsa. Stoc#s: Indi"idual in"estors and /nancial institutions can

uy them.Shares & stoc#s ; pri"ately held sta#es in small /rms thatare not pu licly traded

as#et of stoc#s

Pic#ed up y a fund manager ;put together into

* mutual fund in"est in particular countries or di1erent sectors trac# (O follow) a particular inde+ has an in"estment o 3ecti"e: regular income (di"idend),

long!term capital growth (increase share price) or aalance etween the two.

Stoc# e+change (O ourse): uy and sell shares physical location: e+. =all Street, 7ew Eor# no location: e+. 7*S5*G (electronic e+change) small selected group of stoc#s, rought together to

ma#e an inde+: e+. 5ow


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• $echnical analysis: using charts and internal mar#etstatistics

. ond mar#et:

8o"ernment of company wants to orrow a large sum ofmoney.

I

Issues a ond: recei"es the money as a loan (from aninstitution or indi"idual & the ondholder)

riginal amount (& principal) is paid ac# o"er a period oftime (& maturity9 the term of the loan) ; interest (&coupon)

%ntirely electronic

>S go"ernment onds: !year $! ond (treasury ond) KQ !year $!note%uropean go"ernment onds: 8erman ond

$wo grades, depending on the ris#s:• In"estment grade: safe• Aigh!yield or 3un# onds: high!ris#

$raded in open mar#et, their price goes up H down

according to:• In ation• 0urrency mo"ements

c. Money mar#et: short!term loans that pay interest. uying:• $! ills from the >S go"ernment• 0erti/cates of deposit- from a an#• 0ommercial paper- from a company

$ ther mar#ets


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Economische Vaktaal Engels _ 1e Ba Handelsingenieur