Курс предназначен для широкого круга лиц, стремящихся в максимально короткие сроки овладеть основами делового общения в типичных ситуациях, и содержит достаточное количество информации, необходимой для деловой корреспонденции. By Alison Baduel

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Lesson 6

New Business and Strategic Planning

Lesson Introdction


New Businesses


In order to create a new company you must first evaluate your marketplace and make an estimation of the future success of the company you wish to create. The typical approach to make this kind of assessment is through writing a business plan. A business plan will allow you to get a better idea of whether or not your idea for the new company you are considering is a good idea or not. When writing a business plan there are many factors that and individual must consider and evaluate in order to conclude whether or not a business idea is a good one or not.


Strategic Planning


Strategic planning is key to the evaluation of a new business idea and to the established company. Strategic planning goes through a very rigorous process of identifying strengths and weaknesses of different ideas and directions the company is considering. This process allows the company to make well –informed decisions and plans for the future. The evaluation system of strategic planning helps to ensure that the company will remain stable and profitable in the future. Although strategic planning is limited due to a company’s inability to see unpredictable changes, it offers the company a plan of action to follow. This plan of action helps the company to stay in business and be aware of its goals.

Factors that are Important for New Business

• Low taxes

• Skilled staff available for hire

• Low interest rates

• Cheap rent prices

• Stable economy

• Good transportation links

• Cheap labor

• Strong and stable currency

• Government grants

Exercise 1: Match the words on the left to their definitions on the right.

Interest rate	The market value of a country’s output
Exchange rate	General increase in prices
Inflation rate	Cost of borrowing money
Labor force	Price at which one currency can buy another
Tax incentives	Percentage of people without jobs
Government bureaucracy	People working
GDP	Low taxes to encourage business activity
Unemployment rate	Money from overseas
Foreign investment	Official rules/regulations/paperwork
Balance of trade	Difference in value between a country’s imports and exports

New Vocabulary Review

1. The interest rate is the cost of borrowing money.

2. The exchange rate is the price at which one currency can buy another.

3. The inflation rate is the general increase in prices.

4. The labor force is the total number of people working.

5. Tax incentives are low taxes that are offered to encourage business activity.

6. Government bureaucracy consists of official rules, regulations and paperwork.

7. GDP is the Gross Domestic Product and is the total value of goods and services produced in a country.

8. Unemployment rate is the percentage of the population without jobs.

9. Foreign investment is money from overseas.

10. Balance of trade is the difference in value between a country’s imports and exports.

Vocabulary Exercise

The economy is stable following the problems of the past two years. By following a tight monetary policy the government has reduced the i____ r___ to 2%. After going up dramatically, the i_____ r_____ to 8%. The last six months has seen a slight improvement in the e______ r____ against the dollar. The G____ has grown by .15%. Exports are increasing and the b_______ of t_______ is starting to look much healthier. The u____ r____ continues to be a problem as it is still at 16%. In order to stimulate the economy and attract f____ i____ the government is offering new t____ i____ as well as making a renewed effort to reduce g____ b____. Finally, a large skilled l___ f____ means there could be attractive investment opportunities over the next five years.