Business English

The fax or facsimile means the exact copy or reproduction. Faxing is a means of telecommunication that has developed very quickly over the recent time. It is connected to a telephone socket and works as a system similar to the telephone. Charges are measured in telephone units and therefore vary according to the time and distance.

The advantage of fax is an instant reception of many documents, the disadvantage is that it can't transmit original documents, but only their photocopies.

The structure and presentation of a faxed letter is much the same as that of an ordinary letter.

Sample of a Fax Message

11-Sep-97 11:48

FAX MESSAGE FROM

PENELECTRO Ltd.

TEL.No. +44(0) 1702 5522 11

FAX No. 44(0) 1702 556200

TO _______________ Poltava Amalgamation Plc

FOR ATTENTION___Ms BOGATYREVA/VICTOR

FAX No. ___________ 00 380 S3 22 31405

FROM _____________A.Reynolds

SUBJECT___________Electric Furnace

DATE______________ 11/09/97

No.of PAGES. ______ 1

Dear Sir/Madam,

We are pleased to hear that the situation on the furnace has begun to stabilize - does this mean that the quality is improving? If possible, please could you provide more data on the operational condition of the furnace and the percentage of reject tube on both lines?

We will be interested to hear the results of samples taken from the furnace bottom drain. Some poor quality glass is normal from this position when first draining - but it should clear very quickly. When there are concerns regarding glass quality it is good practice to drain from this position for about 5 minutes each day - to remove any possible contamination or dirt from the bottom of the melting chamber.

Please can you confirm that you received our fax of 07/09/97 from Mr.Andrew Reynolds, and if so, advise us on the points/questions raised therein regarding the electric furnace.

We would be grateful also, if you can confirm that payment has been arranged as promised in your last fax and as per the final Protocol. Further delays in this payment will cause us severe difficulties. If possible, please fax to us reference details of the appropriate bank transfer so that we can follow it from the UK side.

Best regards,

for PENELECTRO LIMITED

M.C.Reynolds

General Director.

The electronic mail (e-mail) was started in the late 60s by the U.S. military that were searching for a way of communication in the event of a large-scale nuclear war. They needed a system that would be decentralized, reliable, and fast in case the central institutions were destroyed. They came up with e-mail.

In the early 70s, e-mail was limited to the U.S. military, defence contractors, and universities doing defence research. By the 70s it had begun to spread more broadly within university communities. By the 80s, academies in a number of fields were using e-mail for professional collaboration. The 90s saw an explosion of the use of e-mail and other computing networking. It is estimated that more than 25 million people throughout the world were using it in the mid-90s.

E-mail is a way of sending a message from one computer to one or more other computers around the world. A subscriber to e-mail needs a terminal, such as a PC, a telephone line, and a modem, which is a device of converting signals into text. E-mail users must also have access to a mailbox, which they can call from anywhere in the world to retrieve messages. They receive a mailbox number and a password for confidentiality. E-mail is fast, cheap, and relatively reliable. It permits to send large amounts of information to different addressees and allows people to retrieve messages at any time.

A typical e-mail address is: direct@askbooks.kiev.ua (the e-mail address of the A.S.K. Publishers House). The part to the left of the @ sign, called userid has been chosen as a personal handle. The part to the right is called the domain and represents the particular computer that receives and delivers the message.

E-mail message usually comes in two parts: the heading and the body. The heading includes: the date, the writer's name, the addressee's name, who is to receive a copy (c.c.), if any, and the subject. The body of the message bears an ordinary content of a letter but a bit shorter.

The golden rule for writing e-mail messages is KISS (keep it short and simple). Use short phrases instead of long, active voice instead of passive avoid foreign words, metaphors, and scientific terms.

There's no bold in e-mall, so use capitals or asterisks. Among the abbreviations used in e-mail there are: BTW - by the way; IMHO - in my humble opinion; CONT - container; SHPT - shipment; RQST - request; BUZ - business; ESS - message.

A memo or memorandum (which came from the Latin “memorare” - to remember) is a written inner document which is produced by senior or middle management in order to inform the staff about the company's policy or procedures, to give instructions, to make announcements or to summarize the data of the latestmeeting or negotiations. A memo may be displayed on a notice board or sent to the employees according to the distribution list.

A typical memo has the following layout: the title, the date, to whom it is produced, from whom it is issued, the subject, the body (usually with numbered paragraphs), the signature, name, and position of the writer.

Sample of a Memo

To: all the staff Date: 22/10/2004

From: Personnel Manager

Subject: Business English classes

Since November 1 free English classes will be held for all personnel in the Training Center (room #3) twice a week - on Mondays and Thursdays. All teaching materials will be provided; the size of each class will be limited to 12 trainees.

The deadline of applications is 6p.m. 30/10/2004. Applicants will be tested for the level of proficiency in English to form 2 groups of pre-intermediate and intermediate levels.

(Signature)

Ann McCline

Use the following data to compose your own memo:

1. To: Department Managers; from: Managing Director; subject: reducing costs of production.

2. To: all employees; from: Director; subject: recognaziation of the company.

3. To: all staff; from: trade-union representative; subject: the annual meeting.

4. To: all shareholders; from: the President; subject: general annual meeting.

Complete the letter choosing from the words listed below:

travel agents, previous correspondence, system, responsibility, index, personal assistant, travel arrangements, directory enquiries, circulation, references, job, international telephone operator.

Dear Susan,

Well, I've been working for a week, and I must say I'm still bewildered. I hope it all sorts itself out.

Mr Sutherland is going away on a business trip - isn't it exciting? He's going to Spain, Portugal and Italy.

The first thing I had to do was to make his (1) _______ so I had to talk to the (2) _______ the Company uses and get them to book all the trains, planes and hotels, and I also had to organise his car hire, make the appointments and fix up his meetings. I've used the telephone a lot. The (3) ______ has got quite used to my voice, and the lady who deals with (4) ______ must be quite tired of me! I also had to look up the (5) ______ he's had with the people he'll be seeing, and sort out the letters he'll need to take with him.

We organised the (6) ______ list for memos. (He'll be sending tapes back to me.) While he's away, I've promised to reorganise his filing (7) ______ and make up an (8) ______ to the files, so that he can find things quickly. I've also got to learn which (9) ______ books to use when I need to find something! By the time I've done all this, I'll be really pleased with my (10) ______! I'm really going to be a real secretary, not just a shorthand typist; in fact I'm nearly a (11) ______ - P.A. for short - as I do take complete (12) ______ for some areas of the work.

See you soon!

Jane.

Listen to the stories of two people, who lost their jobs, prepare memoes on them for the personnel manager of your company.

Part 3. Social responsibility of business

What is the purpose of a business? Is it just to make as much profit as possible for its shareholders? Or does a business have a wider responsibility to help solve society's problems? This is the controversial topic we shall now examine.

Thirty or so years ago, discussions of social responsibility were of three types. Firstly, there was a lot of talk about how business people should behave in their work. Should they have the same ethical standards - the same principles - as they had in their private life? A question which was often discussed was: should an executive offer a bribe to secure a contract, when he knew that his competitors were likely to do so? Secondly, people discussed the social responsibility of business towards its employees. They were interested in how organisations could improve the working conditions of their employees. Finally, social responsibility included the idea that business people should contribute to cultural activities. They should support activities like music festivals and exhibitions. Executives were also expected to serve on educational committees, hospital boards, and so on. In other words, they had to take an active part in the life of their community.

Nowadays, there is a new approach to social responsibility. Many people say that a business should try to meet the needs and interests of society. It has an obligation to help solve the problems of society. Because of this new concept, society expects more from its business organisations. For example, pressure is put on business to provide a safer environment. A chemical company, therefore, is not only expected to meet government standards regarding pollution. It must take steps to reduce pollution to as low a level as possible - even if this means reduced profits.

These days, businesses are expected to show social responsibility in all kinds of ways. They are urged to provide safer products; to protect and respect envi- ronment; to hire more people from minority groups; to offer work opportunities to unemployed youngsters; to oppose racial discrimination and at all times behave with integrity. The list is endless.

The new concept of social responsibility means that businesses and business people must have integrity. They must deal honestly with their employees, and with the outside world. As Sir John Clark of the Plessey company says, “I attach more importance to integrity than to ability”.

Successful companies are very sensitive if their integrity is attacked. They usually respond sharply. Some time ago, an English health inspector found fault with the standards of hygiene in a Trusthouse Forte hotel. Lord Forte was most upset by the inspector's accusations. Making no attempt to plead guilty and by so doing avoid publicity; the Trusthouse Forte Group fought the case in the courts. It also advertised in several national newspapers to give its side of the case.

There are, nevertheless, some famous people who are against the new approach. One of these is Milton Friedman, an American economist who won the Nobel Prize for Economics in 1976. Milton Friedman believes that business has only one social responsibility. That is “to use its resources and energy in activities designed to increase its profits as long as it stays within the rules of the game ... and engages in open and free competition, without deception and fraud”. Fried-man says that a business's social responsibility is “to make as much money for its shareholders as possible”.

It is certainly true that social actions cost money. And businesses have to bear that cost often by raising prices, lowering wages or having less profit. Someone has to pay for the social actions in the end - it may be the customer, the employee or the shareholder.

A spokesman for the Rank-Xerox company spoke recently of the wide range of social projects Rank-Xerox were engaged in: grants of equipment to universities; information technology projects and seminars; training programmes in universities and schools; career seminars; sponsorship of art competitions etc. The spokesman said that the social projects were “an integral part of the company's business strategy”. They were not some sort of charity work which would get a brief mention in the company's annual report. Being a large organization, Rank-Xerox had many contacts with government departments and other groups in society. And, since it was a knowledge-based company, it needed to hire highly skilled people. Its social programmes were “critical to its success”. There was no doubt that, in the long run, these activities were profitable to the organization.

Learn the following words and word-combintions:

social - of society or its organization, esp. of the relations of people or classes of people

responsibility - authority; managerial freedom; duty, commitment

to offer a bribe - to offer money or services in one's favour

to reduce - to make smaller or less

to be urged - to be encouraged or entreated earnestly or persistently

integrity - moral excellence; honesty

to plead guilty - to declare oneself to be guilty or not guilty of a charge

to put pressure (on) - to constrain influence, affliction or difficulty

fraud - criminal deception; dishonest trick

to benefit - to receive advantage; profit, help

in the long run - ultimately, eventually

Fill in the gaps using the vocabulary listed above. Make any other changes in the following sentences if necessary.

1) Her present unpopularity is not going to help in the short run, of course, but ______ she may still be the best election hope for the Democrats.

2) The number of staff was ______ from 60 to 45.

3) The policeman was ______ of $10000 to keep his mouth shut.

4) His new job is highly paid, but it also means taking on more ______ for the decision taken.

5) While filling in the application forms to some of the companies you'll find the items concerning your ______ background.

6) The people were ______ that there should be no violence during the demonstration.

7) Doctors and lawyers are considered to be people of professional ______.

8) They ______ on him to resign.

9) The new tax laws are good for some people but middle-class families won`t….

10) FBI has a special department organised for resisting a dramatic rise in computer ______ made by hackers.

Answer the following questions to the text:

1) Should business people have the same ethical standards in their work as they have in their private life?

2) Why should a business try to meet the needs and interests of society? What are these needs and interests?

3) In what ways are businesses expected to show social responsibility? Give your own examples.

4) Why do successful companies respond sharply if their integrity is attacked?

5) Social actions cost money. How do businesses bear that cost?

6) How can the company benefit by showing social responsibility?

Comment on the following statements from the text:

1) Social responsibility is a controversial topic.

2) A business has an obligation to help solve the problems of society.

3) Businesses and business people must deal honestly with their employees, and with the outside world.

Role play

A. One group of business people supports the point of view that business should help to solve social problems even if their business did not create them; another group is of quite opposite opinion: a business's first priority is to create wealth. Have a discussion on this problem.

B. A Ukrainian businessman is arguing with an American one about the principle of social responsibility in their countries.

C. A group of workers is discussing the problem of social responsibility concerning the working conditions with their employers.

Letter of inquiry

Business transactions usually start with inquiries. As a rule, the prospective buyer gets the name and address of the prospective seller either at an exhibition, from an advertisement in a newspaper, magazine or thanks to a television or radio commercial. All these channels of information and advertising are very important.

Inquiries can be sent by mail, by telex or by fax. Sometimes inquiries can be made orally, by telephone.

In the inquiries the prospective buyer states in what goods exactly he is interested and asks for details on the price and terms of sale, availability of goods, delivery dates, terms and discounts, method of transportation, insurance, catalogues and samples of goods.

Sample of an Inquiry

Sanders & Lowe Ltd.

Import and Export (London Office)

Planter House, Princes Street, London EC17DQ

Telephone: 021 236161 Fax: 021 2368592 Telex: 341641

Sales Manager, Glaston Potteries Ltd.

Clayfield, Burntey BB10 1RQ, England

Your ref.:

Our ref.: 180/MB

Date: 7 June, 2004

Dear Sir or Madam,

We are writing to you on behalf of our principals in Canada who are interested in importing chinaware from England. We saw your products at the International Potteries Exhibition in London in May and were deeply impressed with them.

Could you send us your latest catalogue and price-list, quoting your most competitive prices? We would also appreciate your sending samples of the products.

Our principals are a large chain store in North America and they will probably place a substantial order if the quality and prices of your products are suitable. As you know the demand for potteries of all types in Canada and the USA is really great.

We look forward to hearing from you soon.

Yours faithfully,

L.W. Low

Write your own letter of inquiry. Use the words and еxpressions listed below:

We would like to represent your products in the Ukrainian market

Please send us samples of ... (your catalogues, leaflets, etc.)

We read your advertisement in...

With regard to your advertisement in ... of ...we would ask you ...

We have heard of your products from ...

We have seen your current catalogue showing.

We are interested in buying (importing, etc.)

Please inform us (let us know) as soon as possible

Would you please inform us if it is possible to deliver...?

Please let us know what quantities you are able to deliver till...

We would ask you to let us have a quotation. We read your advertisement in...

With regard to your advertisement in ... of ...we would ask you ...

We have heard of your products from ...

We have seen your current catalogue showing.

We are interested in buying (importing, etc.)

Please inform us (let us know) as soon as possible

Would you please inform us if it is possible to deliver...?

Please let us know what quantities you are able to deliver till...

We would ask you to let us have a quotation for…

Would you kindly quote your prices and terms of delivery (terms of payment, etc.) for ...

We would like to represent your products in the Ukrainian market

Please send us samples of ... (your catalogues, leaflets, etc.)

Would you kindly quote your prices and terms of delivery (terms of payment, etc.) for ...

We would like to have further details about...

We are distributors (importers, retailers, etc.) of...

We would like to get in touch with manufacturers (suppliers, sellers, etc.) of...

There is a large market here for yow products

For over ... years our company has imported from western countries ...

Our company was founded in...

We usually effect payment by letter of credit (cheque, bank transfer, etc.).

If your prices are competitive (the samples meet the standards, your equipment complies with our requirements, etc.) we may be able to let your have regular orders.

We look forward to your early reply.

Choose the correct word from listed below to complete the passage. The first one has boon done for you.

advertisements, exhibitions, trade, copy-writer, set up, Commerce, promotion, market, price sensitivity, copy, Marketing, controls, designer, media, budget, trade magazines.

(1) ______ & and (2) ______ involve letting potential customers know about a new product both before it is made and after it becomes available for sale. (3) ______ in the local and national press and (4) ______ in areas where there is likely to be a good market are among the ways in which this is done; the choice of (5) ______ -magazines, newspapers, radio and TV - for the advertisements and of locations for exhibitions is made as a result of thorough (6) ______ research, so that money (all marketing departments have tightly controlled (7) ______ is spent where it is most likely to produce results. The advertising (8) ______ usually provided by a specialist (9) ______ and set out by a (10) ______ to have the most impact, is probably the most common form of promotion, although the way in which stands are (11) ______ at exhibitions is also extremely important. “News” items leaked to (12) ______ are also important - and they are free! (13) ______ Associations and Chambers of (14) ______ can provide advice about the size of markets, their location, and also about such things as (l5) ______ and import (16) ______ in specific areas.

Watch BBC Business Course, unit Describing Your Company's Product and prepare your own dialogues.

Part 4. Money and methods of payment

To function as money a commodity must be widely acceptable to the population of the region or country. There must be not only its voluntary acceptability, it must also be recognized by the government of the country and have legal acceptability, that is, payment with this commodity must be regarded as a legal means of settlement of debts. To acquire acceptability a commodity must have the following attributes:

Medium of exchange: people must be willing to give and receive the commodity in exchange for goods and services. More significantly a medium of exchange allows peoples to specialize in particular areas, so that they and the economy can become more efficient. They will receive money for their labour and in exchange will be able to purchase the fruits of other people's labour. With this specialization, the volume of trade increases, the range of services and goods expands and money assumes a greater and greater role in the economy.

Store of value: Let us assume that cabbage is money and that we have it, say 1,000 pounds` worth. If we hold it for a long time it will go bad and deteriorate in value. But if we sell the total stock for 1,000 pounds we can hold the money in a bank without loss. This money can be used at any time for purchasing other goods. Of course, if we want to hold the money, we can invest it in an interest-bearing account and so obtain additional funds.

Unit of account: To act as a unit of account, money must be able to place a specific value on goods and services. Thus, it is able to act as a measure to value goods relative to other goods. It is a yardstick which enables people to compare the relative value of goods and services. In the UK we use the pound for valuing our income and household expenditure. At government level, the pound is used to calculate the national income, government expenditure, and so on.

Standard of deferred payment: We have mentioned that money acts as a medium of exchange and as a unit of accounting that its debts are stated in a currency and are settled in that currency. But in modern society contracts are made for settlement at some future date. For example, a national savings certificate, repayable in five years' time, will have a future known value. Contracts made between one person and another, for completion at some future date, will have to show the amount to be paid or received on conclusion of that contract. Money must, therefore, act as a standard of deferred payment.

In order to fulfill the functions of money, a commodity must have the following properties: portability, durability, divisibility, stability, transferability, and recognizability.

Most of the terms referring to various kinds of money have been already introduced. In view of the large number of terms in use, some of which mean the same thing, it is worth pausing to recapitulate. Coins refer to all metallic money. Examples are the l0p and 50p coins in your pocket. Notes refer to paper money. Taken together, notes and coins are commonly referred to as cash or currency. Deposit money or bank money refers to deposits held at banks.

Legal tender is money that must be accepted if offered in payment for a purchase or settlement of a debt. In the UK, legal tender consists of coins (up to certain maximum amounts) and notes. Cheques drawn on bank deposits are not legal tender, although they are commonly used in purchases and in the settlement of debts.

Money is said to be convertible if it can be converted into some other form of money that is legal tender. In the UK, bank deposits are convertible money since they are convertible into legal tender and they are so converted every time a customer withdraws currency from his bank account.

Today, all notes and coins in circulation are fiat money. Modern coins, unlike their predecessors, contain a value of metal that is characteristically only a minute-fraction of the face value of the coin. Nevertheless, they function satisfactorily as money. Since notes and coins are acceptable, they are medium of exchange; since their purchasing power remains relatively stable in normal times, they are a satisfactory store of value; and they also serve as a unit of account and a standard of deferred payments.

Payment terms are the agreed way in which a buyer pays the seller for goods. The commonest are: 1) cash with order or cash on delivery; 2) prompt cash (i.e. within 14 days of delivery); 3) cash in 30, 60, or 90 days from date of invoice; 4) letter of credit; 5) cash against documents.

Cash on delivery (COD) means the terms of trade in which a supplier will post goods to a customer, provided the customer pays the postman or delivery man the full invoice amount when they are delivered. It was extensively used in mail order (see mail-order house), but the use of telephone ordering using credit cards has reduced the amount of COD business.

Cash price is the price at which a seller is prepared to sell goods provided that he is paid immediately in cash, i.e. he does not have to give credit or give a commission to a credit-card company. This is invariably below the price that includes a hire-purchase agreement.

Cash against documents (CAD) means payment terms for exported goods in which the shipping documents are sent to a bank, agent, etc., in the country to which the goods are being shipped, and the buyer then obtains the documents by paying the invoice amount in cash to the bank, agent, etc.

Letter of credit is letter from one banker to another authorizing the payment of a specified sum to the person named in the letter on certain specified conditions. Commercially, letters of credit are widely used in the international import and export trade as a means of payment. In an export contract, the exporter may require the foreign importer to open a letter of credit at his local bank (the issuing bank) for the amount of the goods. This will state that it is to be negotiable at a bank (the negotiating bank) in the exporter's country in favour of the exporter; often, the exporter (who is called the beneficiary of the credit) will give the name of the negotiating bank. On presentation of the shipping documents (which are listed in the letter of credit) the beneficiary will receive payment from the negotiating bank.

On foreign trips nowadays people use widely traveller's cheques which can be acquired practically at any branch of a bank. For tourists they have at least two main advantages: they are much cheaper than credit cards, and are a safe and reliable way of keeping money. The most popular traveller's cheques are those issued by Thomas Cook, VISA and American Express.

Learn the following words and word-combinations:

medium of exchange - засіб обміну;

store of value - міра вартості;

unit of account - одиниця розрахунку;

yardstick - мірило, критерій;

standard of deferred payment - засіб відкладеного платежу;

portability - nopтативність;

durability - довговічність;

divisibility - подільність;

monies - грошові суми;

to ascertain - визначати;

transferability - здатність обміну;

recognizability - пізнаваність;

counterfeit - фальшиві гроші;

to recapitulate - називати;

legal tender - легітимний засіб платежу;

to back - підтверджувати;

fіat moneyAm. - паперові гроші(не забезпечені золотом).

Answer the questions on the text:

1. What are the functions of money?

2. What are the properties of money?

3. What kinds of money are coins and notes?

4. What institutions are responsible for issuing money?

5. What is legal tender?

6. What is the peculiarity of convertible money?

7. What does fiat money mean?

8. What are payment terms?

9. What is the difference between cash on delivery and cash against documents?

10. What is a letter of credit?

11. Why do tourists prefer to use travellers cheques instead of cash?

Substitute the following definitions with the words below:

deposit, puchasing power, deferred, outstanding, depreciation, counterfeit, legal tender, yardstick, to withdraw cash.

1. … - money placed in a bank account.

2. … - deduction in the value of a currency against other currencies.

3. … - money in notes and coins.

4. … - amount of goods that can be bought for a contain sum of money.

5. … - to take from the account.

6. … - issued for circulation.

7. … - form of money which must, by law, be accepted in payment of a debt.

8. … - put off to a later time.

9. … - standard of comparison.

10. … - made in imitation of another thing in order to deceive.

Letter of offer

After considering the enquiry for some time the prospective seller sends an offer in reply.

The offer usually quotes the price and stipulates terms of delivery, terms of payment and discounts, packing, transportation costs, time of delivery and some other necessary details.

When sellers quote prices in their offers they usually state on what terms at this price, they will deliver the goods. The supplier trying to attract the attention of potential clients or looking for new clients for special products or their range will speak about a firm offer which stipulates some specific conditions, such as a deadline and a system of discounts. The price will certainly depend on the terms of delivery.

The most popular terms of delivery in foreign business transactions are: Ex-mill, ex-works (from a plant or factory); fob (free on board); for (free on rail); cif (cost, insurance and freight); cip (cost, insurance and payed to…); c & f (cost and freight).

If the goods are offered on ex-mill terms the price will include the cost of the goods only.

If the goods are offered on fob terms the price will include the cost of the goods and transportation expenses to the port of shipment only.

If the goods are offered on for terms the price will include the cost of the goods and transportation expenses to the railway station only. These terms are similar to fob terms. The only difference is the mode of transportation. In case fob terms the goods are shipped on board ships or planes. In case of for terms the goods are transported by railway.

If the goods are offered on cif terms the price will cover the cost of the goods, insurance expenses and freight or transportation expenses, to the port of destination.

If the goods are offered on cip terms the price will include the cost of goods, insurance expences and freight to the place of destination.

If the goods are offered on c & f terms the price will cover the cost of the goods and freight to the port of destination.

*The price is USD 2,000.00 per ton fob NewYork.

*The quoted price is GBP 1,200.00 each cif Murmansk.

*We can offer the goods at the price of GBP 78.00 per metre c&f Liverpool.

*The goods are offered on for basis.

Offers usually state the terms on which the goods are to be paid, or terms of payment.

Terms of payment usually mean the currency, time of payment, mode of payment and many details.

In foreign trade transactions various modes of payment are practiced, among which the most popular are as follows:

by a bank transfer;

by a letter of credit;

for collection;

by drafts;

on an open account.

Sometimes mixed terms are practiced. That depends on the value of the goods, volume of the goods, time of delivery and many other factors.

Ten percent of the total sum should be paid in advance by telegraphic bank transfer.

Fifty percent of the total sum should be paid by telegraphic banker's transfer within 30 days after your bank receives shipping documents.

Forty percent of the total sum should be paid by drafts at 90 days' sight.

Sample of an Offer

BATTERIES INTERNATIONAL Ltd

123 Park Lane, CRISPEN, NY, 11456

Tel. (215)-436 578 Fax. (215)-436-579

Mr. Fred North, Purchasing Manager, Broadway Autos

134 Oak St., Angel City, NY, 11435

Your ref.

Our ref. 56 NMB 98

November 11, 1998

Dear Mr. North,

Thank you very much for your enquiry. We are of course very familiar with your range of vehicles and are pleased to inform you that we have a new line in batteries that fit your specifications exactly.

The most suitable of our products for your requirements is the Artemis 66A Plus. This product combines economy, high power output and quick charging time and is available now from stock,

I enclose a detailed quotation with prices, specifications and delivery terms. As you will see from this, our prices are very competitive. I have arranged for our agent Mr. Martin of Fillmore S.A. to deliver five of these batteries to you next week, so that you can carry out the laboratory tests. Our own laboratory reports, enclosed with this letter, show that our new Artemis 66A Plus performs as well as any of our competitor's product and, in some respects, outperforms them.

If you would like further information, please telephone or telex me: my extension number is 776. Or you may prefer to contact Mr.John Martin of Fillmore S.A in Madison; his telephone number is 01 77 99 02.

I look forward to hearing from you.

Yours sincerely,

Fred Stock

GENERAL MANAGER

Read the telephone conversation below and prepare a letter of inquiry from the director of the hotel and a letter of offer from the firm for 50 refrigerators.

- Sundel, Electrotech Sales Manager. Can I help you?

- Good afternoon, Mr. Sundel. This is Mr. Hart from Santina Hotel speaking. Have you got refrigerators IPD Model 245?

- Yes, we have, but we are heavy with the orders on this model.

- What is its price?

- Its retail price is $460 per unit.

- What is the discount for a lot of 100 units?

- Usually we give a 5 % discount.

- Is there a discount if I pay cash?

- I am not sure. I should consult our Financial Manager.

- What is the minimum term of delivery?

- A month.

Use for your letter the word-combinatiopns listed below:

We are pleased to learn your interest in…

We are most pleased that you want to buy…

We are glad to say that we can reserve you…

It is generous of you to take so much interest in our work…

We take pleasure to send you the desired samples and offer…

As to your inquiry of … we are informing you that…

We enclose our catalogue with the latest price-list.

Our detailed price-list will convince you in diversity of our assortment.

Our proposal is valid till …

We deliver our goods on CIF terms…

The price covers packing and transportation expenses…

We can give you a 5 per cent discount.

As you can see from our price-list, our prices are at least by 3% lover than market ones.

The words listed below have their letters in the wrong order. Choose from them to complete the sentences and fill in the words with the letters in the correct order.

sols raeled, rutrnoev, icysretu, aihnc, nidedmaml, utsciond, hsovadeer, wrlahesole, kocts tnloelcr, hacs dna cryra.

1. A l... l... is something sold very cheaply to encourage customers to come into a shop; once they are in, they may buy other things at profitable prices.

2. The amount of money taken (without any deductions) or the amount of goods sold is the t... .

3. Deciding how many items should be ordered, and when, is a matter of s… c… .

4. A number of shops belonging to one company is a c... .

5. Shops possess safes for s... .

6. A retailer buys his goods at a d... and sells them at a retail price to produce a profit.

7. A retailer buys his stock from a w... .

8. The costs of running a retail operation caused by lighting, heating, rent, wages, etc., are its o... .

9. The retailer is the m... between the manufacturer or wholesaler and the customer.

10. The everyday name for a warehouse from which a retailer collects the goods himself or herself is a c... a... c... .

Watch BBC BusinessCourse, unit Money, discuss it, and make up your own dialogues.

Part 5. Stores and consumers

Stores. Conventional stores are often more or less specialized in selling some specific kind of merchandise, for instance, all types of sportswear, play things for children, special kinds of foodstuffs, etc. All the luxury stores - the famous Tiffany (jewelry), Versacci (high fashion clothing), etc. or ordinary specialized stores - a variety of antique and collectible stores, as well as book stores or stores selling videos, CD's, cassettes, CD-ROM's, and accessories for computers. All of them are trading in goods destined only for some strata of the population (interested in such specific merchandise), but not for the general public. Even some food stores can be included into such category - such as specialty stores selling mainly national food or strong drinks.

Supermarkets sell food and basic everyday necessities. A supermarket is a large self-service store selling a great variety of food and household goods displayed on open shelves. A customer having easy access to all the shelves chooses himself the articles to be bought and pays for them at one of the checkouts at the exit. A customer takes a cart (Am.) or a trolley (Br.) on entering the supermarket which is the generally accepted code of “supermarket behaviour”. All the articles in self-service stores have special tags that activate the alarm sound if a customer attempts to leave the premises without paying. In most foreign supermarkets a conveyor belt starts about four or five metres from the check-out. A customer is supposed to put all his purchases out of the cart onto the belt. When the section of the belt with a customer's purchases approaches the cashier, she first enters the price of every article into the till, then packs the articles into plastic or paper bags and puts filled bags into the cart. Upon that a customer is expected to pay.

Malls are quite specific shopping centres where all kinds of manufactured consumer goods can be bought such as clothes, shoes, underwear, leather goods, kitchen utensils, cosmetics, perfumes, jewelry, cameras, cassette recorders, CD's etc. A mall is a collection of dozens of stores in one place, a kind of a trading city. The stores are relatively autonomous and may belong to different manufacturers, firms or trading companies. It is not only a place of trade but a place of entertainment as well. There are a lot of restaurants, bars, cafes, kiosks, stands and a lot of places to eat and to relax, such as performances, pop singers, comedians, and so on. The original meaning of the word “mall” is public walk. Malls are multi-storeyed structures with elevators and escalators leading from floor to floor and open galleries surrounding each of the upper floors. They are as a rule very beautifully decorated inside - with fountains and trees, different forms of applied arts. Though the greater part of all the malls are luxurious multi-storeyed buildings, one can meet more modest ones. They are usually constructed as a very long one-storeyed building in a form of rectangular with a roofed gallery and the open space in the centre of it.

Marts are small stores selling a variety of goods. They are self-service stores where a customer can buy food and drinks and all kinds of trifles (e.g., films for cameras, magazines and papers to read, sunglasses, etc.) Arts and crafts marts are engaged in selling objects of arts and folk crafts too.

Wal-Marts, the full name is Wal-Mart Discount City, the first of them was opened in 1962 in Arkansas by Sam Walton. A Wal-Mart has everything a mall has - all kinds of stores selling all imaginable kinds of manufactured consumer goods and many opportunities for customers to relax and have a fun. It also has everything a supermarket has - selling all kinds of food and houseware collected under one roof. The idea of Wal-Marts is creating one-stop shopping environment. The result was the creation of a shopping centre of enormous size and proportions. It is a gigantic one-storeyed structure with dozens of entrances and exits. It is really a trading city, that's why Wal-Marts are built beyond the town limits. And it is really a discount trading city because no other kinds of stores can afford such discounts.

Consumer Rights. In their role as consumers, ordinary EU citizens are key players in the Union's new frontier-free single market. The Union has in fact incorporated as the basis of its consumer policy, the protection of the five fundamental rights which lie at the heart of national policies. These are:

1. The protection of consumers' health and safety. Only products which will not endanger health or safety may be put on the market. This means setting safety requirements, providing full information about potential risks, and protecting consumers against physical injury.

2. The protection of consumers' economic interests.

There is, for example, a general ban on misleading advertising and unfair terms in contracts with consumers.

3. Consumer rights to information and education.

Consumers must be put in a position where they can make an informed choice among goods and services offered. This includes objective information on the features and price of the items available. Consumers also require proper information about their efficient and safe use.

4. The right to redress.

Consumers have the right to receive advice and help when seeking redress for faulty products or for injury or damage resulting from the use of goods and services. There need to be simple, affordable and rapid procedures for settling complaints and claims.

5. Consumer representation and participation.

Representatives of consumers need to be present in decision-taking procedures on issues of concern to them at local, national or EU level. At Union level, this covers not only specific consumer issues but also other relevant policy areas like food laws, transport, competition policy, financial services, environment and the like.

When the Community (the former name of European Union) adopted its first consumer programme in 1973, it focused on the practical application of the five principles. As a first result, a number of directives were adopted over the next 10 years covering among other things the safety of cosmetic products, the labelling of foodstuff, misleading advertising, consumer rights in door-step selling, product liability and the provision of consumer credit.

In addition to its programme of legislation on consumer protection, the Union took steps to make sure the interests of consumers are taken into account at local and EU level. It has supported the development of national consumer organizations and of five major EU-wide organizations with consumer interests. These are: the European Consumer's Organization (BEUC), the Confederation of Family Organizations in the European Union (Coface), the European Community of Consumer Cooperatives (Eurocoop), the European Trade Union Confederation (ETUC), and the European Interregional Institute for Consumer Affairs (EIICA).

Internally, the European Commission created an independent Consumer Policy Service in 1989 in order to give more authority and a higher profile to the implementation of consumer policy.

Learn the following words and word-combinations:

conventional - звичайний;

merchandise - товари;

antique storе - антикварний магазин;

collectible store - магазин колекцій;

accessories pl [ek'seseriz] - обладнання;

strata ['stra:ta] - прошарки (суспільства);

specialty - спеціальний асортимент;

everyday necessities - предмети нагальної потреби;

article - товар, вироб;

check-out - контрольно-касовий пункт

tag - ярлик, бірка

cashier - касир

till - касовий апарат

mall Am. - торгове містечко

kitchen utensils - кухонна утварь

mart Am. - невеликий магазин

Wal-Mart Am. - торгове містечко с багатьма магазинами.

Answer the questions on the text:

1. What articles are sold in conventional stores?

2. What is a distinguished feature of supermarkets?

3. What kind of stores are malls?

4. What is the analogue of a mart in your country?

5. Is any difference between Wal-Marts and malls?

6. What kinds of stores described in the text are there in your country?

7. What rights do the consumers enjoy in the EU?

8. When was the first EU consumer programme adopted?

9. What EU-wide organizations protect the interests of consumers?

10. What service was created in 1989 and why?

Answer the questionnaire by putting “yes” or “no” at each point. Then read the comments below:

Questionnaire

Are You a Skilled Buyer?

As a consumer you enjoy many privileges. You can buy a wide variety of products in a wide variety of stores. However, as a consumer you also have certain responsibilities. Reading labels, returning goods of poor quality, keeping records of your purchases, and paying bills promptly are among them. By accepting these responsibilities, you will be more pleased with what you buy.

1. Do you take your time about buying?

2. Do you shop at sales?

3. Do you avoid impulse buying?

4. Do you look carefully at what you buy?

5. Do you study labels?

6. Do you compare prices and services?

If you have put “yes” at five points except the 2nd, you proved to be a skilled buyer.

LETTER of ORDER.

To place an order for some goods it is necessary to fill in an order form stating the quantity of articles with their description, price, terms of payment, date of delivery, discounts, etc.

When it is necessary to make certain points quite clear a cover letter is prepared to accompany the order form.

The Seller or Supplier sends an order acknowledgement or confirmation in case he can fulfil it or a refusal if he cannot.

Sample of a Letter of Order

WISTERIA LTD.

164 Victoria St., Newbay, Ches., J23 4FG England

Tel. (143)-564-412 Fax (143)-564-414

Men's Clothes Dealers Ltd.

142 South Road Sheffield S20 4HL England

Yor ref. BV4397

Our ref. DFS3297

21st March, 2007

Dear Sirs,

Our Order for Silk Shirts

In response to your letter of 17th March, we thank you for sending us your catalogues of men's silk shirts. We are sure there will be a great demand for them in Ukraine.

We are enclosing our Order No.144, and would ask you to return its duplicate to us, duly signed and sealed, as an acknowledgement.

Yours faithfully,

Vladimir Smarton

Export-Import Manager

Enc.Order No.144

ORDER №144

(please refer to this number on all correspondence)

Men's Clothes Dealers Ltd.

142 South Road Sheffield S20 4HL England

21th March, 1997

Please supply 400 men's silk shirts in the colours and sizes (collar) specified below:

Size Colour Quantity

14 white 70

14 blue 30

15 white 70

15 blue 30

16 white 70

16 blue 30

17 white 70

17 blue 30

Price: $10.53 each (total -- $4212)

Delivery; air freight, CIF Kiev

Payment: by letter of credit

Packing: standard

Alex Wincot

Purchase Manager

Wisteria Ltd.

Please send us the copy of this order, duly signed and sealed, as an acknowledgement.

Write your own letter of order for 200 men`s suits, 60.7 pounds of sterling apiece, in black, grey and blue colours, payed for by a letter of credit, and delivered CIF Odessa. Use the word-expressions below:

In reply (response) to your letter (fax) of (dated) …

We enclose (are enclosing) our order for …

We accept your offer and have pleasure in placing an order with you for …

Please confirm that you can supply …

Please send the copy of this order to us, duly signed, as an acknowledgement.

Please supply/send us…

Choose from the words below to complete the sentences.

net, market, loss, cash-flow, capital, sales, overheads, expenditure, gross, profit.

1. The forecast which predicts how much money will be gained by a business is called the ... forecast.

2. The forecast which predicts how much money will be lost by a business is called the ... forecast.

3. The forecast which predicts how much money will be received or spent by a business is the ... forecast.

4. The forecast which predicts where most sales will be made, and what their value will be, is the ... forecast

5. The forecast which predicts how much the company will sell is the ... forecast.

6. The forecast which predicts how much money will be spent by the company is the forecast of...

7. The Forecast which predicts how much money is needed to start up a business or to increase its wealth is the ... forecast.

8. The forecast which predicts how much money the company will earn before tax is paid is the ... profit forecast

9. The forecast which predicts how much money the company will earn after tax is paid is the ... profit forecast.