Anno business english course types of company

3° ANNO BUSINESS ENGLISH COURSE

TYPES OF COMPANY

Which of the following types of companies would you prefer to work for? What are the advantages and disadvantages of working for each one?

- a large multinational corporation

- a small or medium-sized family business

- a trendy new high-tech corporation

Read the list of developments that threaten the survival of the traditional company. What are the positive or negative impacts on companies of each one?

- developments in technology

- growth in the power of consumer groups

- expansion of e-business

- increase in shareholder power

- financial scandals

- transfer of money and jobs to cheaper countries

- weakening trade unions

COMPANY STRUCTURE

Read the text A Matter of Choice from the Economist and say why the author thinks ‘choice’ will play a major role in determining the structure of tomorrow’s companies.

Read the text again and answer the following questions:

1 What were the characteristics of US corporations in the past?

2 What changes have occurred to those corporations?

3 What is meant by ‘shifting from high-volume to high-value’?

4 What different types of future companies does the author mention?

5 Why does he believe that there is not one definite type of future company?

6 What does he believe to be the key to survival for companies in the future?

Would you prefer to be a freelance worker or employed with a fixed salary? What are the advantages and disadvantages of each situation.

Key to exercises:

Large multinational company

Advantages:

The advantage of a big company is that there is more chance for advancement, usually greater opportunities, greater work choice, international opportunities with travel, overseas postings, and the money is probably very good to, incentives to be more productive - there is more diversity, even better rewards

Disadvantages:

Need to live for your job, so big it’s anonymous, demanding and stressful, not always job security – have to keep proving yourself

Small or medium-sized family business

Advantages:

Because a company is smaller, it may provide greater job satisfaction.

Disadvantages:

A smaller business will have less opportunities, people prefer to put trust in large established businesses rather than small not well-.known companies, run on a low budget, pay lower,

Less job security- when there’s a crisis small firms close first.

Family businesses can be old-fashioned and not always inclined to change – stuck in their ways.

Trendy new high-tech corporation

Advantages: employees often work from home using email etc. and go into work once a week etc. to meet with boss. The advantages of these alternate work arrangements to the employee include flexible work hours, shorter or no commute, and a comfortable working environment. The advantages to the employer include less need for office space, increased productivity, lower use of sick leave, and improved employee morale.

Disadvantages: work is stressful, employees work harder and faster than ever before – the industry is in trouble and experts not so much in demand as ten years ago because there are so many high tech companies, workers get laid off those left in work longer hours and do more without additional compensation – employees feel there is interference in their family lives from their jobs,

positive or negative impacts on companies of each of the following?

- developments in technology – company growth, work better, expansion all over the world, easier to communicate outside country, workers can work from home

- growth in the power of consumer groups – companies need to be more vigilant and careful , consumers protected, in theory companies will be more open, take power away from multinationals,

- expansion of e-business – people work from home, contacts all over the world, etc

- increase in shareholder power – shareholders have more say in the company, control more what goes on, oppose bad decisions by top management (e.g. huge pay rises) – save company from takeover

- financial scandals – ruin a company, teach them to be more vigilant nobody is safe , get rid of the bad pennies

- transfer of money and jobs to cheaper countries – company benefits, workers in country of origin get laid off – e.g. Twinings Tea moving in workers from eastern Europe and laying off British work force, aid ailing third world economies and give educated people there a chance to have work experience and earn money (India)

- weakening trade unions – workers are less protected, companies lose less money if workers can’t strike or can be sacked or not have rights