16
1. Sales of Can-Am products in Europe |
|
||||
$ (000$) |
1200 |
|
|
|
|
|
1000 |
|
|
|
|
|
800 |
|
|
|
|
|
600 |
|
|
|
|
|
400 |
|
|
|
|
|
200 |
|
|
|
|
|
|
|
|
|
|
|
1 |
2 |
3 |
4 |
|
|
|
|
year |
|
|
“The first chart shows total sales revenue since year one. As you can see, sales have
risen dramatically in the first four years of trading from: |
.................... to ................... . |
” |
||
2. Breakdown of Can-Am sales by product range |
|
|
||
Product range |
Year 3 |
Year 4 |
% increase |
|
Baseball |
263 174 |
365 369 |
39% |
|
A/Football |
437 890 |
|
52% |
|
Total Sales |
701 064 |
|
|
|
“Table two gives sales by product range for the last two years. Notice that total sales
have increased from ................ |
to ................. |
”“That’s an increase of ........................ |
%” |
|
3. |
Sales forecasts of Can-Am products in Europe |
|
||
$ |
Million |
|
|
|
2.0
1.8
1.6
1.4
1.2
1.0
year |
5 |
6 |
7 |
“If you look at chart three, you will note that we forecast that sales will rise by 25% over the next two years. We expect them to reach ................ “
17
Exercise 3. Complete these notes made by Thomas Willhite while Mrs. Lamont gave her report. Use the words given below.
risen |
increase |
breakdown |
report |
reach |
forecast |
growing |
|
|
|
|
|||||
The sales chart for Can-Am products in Europe shows that sales have |
risen significantly. |
||||||
Their sales people ............ |
(a) that the market in Europe is ........... |
(b) at an annual rate of 17%. |
|||||
There has been an ........... |
(c) in sales in both their product ranges. |
|
|
||||
This is shown in a .......... |
(d) in Table 2. |
|
|
|
|
|
|
They expect sales to ........... |
(e) nearly $2 million by the end of year 7. |
|
|
||||
They ........... |
(f) sales will rise by 25% over the next two years. |
|
|
||||
Exercise 4. Notice these uses of the present tense:
a) Verbs which say what something does, what its function is:
This chart shows |
the overall picture. |
|
|
gives |
|
|
indicates |
|
b) |
Verbs of communication |
|
Our sales people say |
that the market is growing by 17% per year. |
|
|
tell us |
|
|
report |
|
We |
understand that the market is growing by 17% per year. |
|
|
gather |
|
|
hear |
|
c) |
Verbs of opinion |
|
We |
hope that sales will reach $2 million by the end of year 7. |
|
|
feel |
|
|
think |
|
|
know |
|
But notice:
We expect sales to reach nearly $1 million by the end of year 7.
18
Exercise 5. Use the graph to forecast Can-Am’s sales in Finland.
$
50000
30000
10000
Current |
4 |
5 |
6 |
7 |
8 |
9 |
Year |
|
|
|
|
|
|
Sales forecasts of Can-Am products in Finland |
||||||
We think that |
sales will rise to $30 000 in year 5. |
|||||
We expect sales to fall to $20 000 in year 6.
a)We expect ............. in year 7.
b)We believe ........... in year 8.
c)We forecast that .......... in year 9.
ΘNow work through the recorded exercise.
ΘThe meeting continues. Thomas Willhite argues for a larger market.
Willhite: Now, Mrs. Lamont, can you tell me what Can-Am’s share of the UK market is?
Lamont: About 18%, and we expect it to increase.
Willhite: And what is our share of the market in the rest of Europe?
Lamont: Er ... I’d have to check that.
Willhite: Well, I can tell you – it’s almost zero. Now let me ask you another question. What proportion of your sales are in the UK?
Lamont: About 85%.
Willhite: That’s what I thought. In other words, there is a huge, potential market in Europe that you’re ignoring.
19
Nash: But just a minute, Thomas, it isn’t as simple as that. Despite the EC, Europe still isn’t one market. It’s a number of independent national markets. They are all very different, with different regulations, different distribution systems.
Willhite: I appreciate that there are problems, but it’s a market we cannot ignore. Our sales people tell me it’s worth 15 million dollars a year. Now we are strongly in favor of expanding our sales in this market.
Lamont: But we must consider costs. Think what it would cost to export to ... to four European countries. I mean the selling costs and the transportation costs! And payment would take longer. Financing international sales can be very expensive.
Willhite: I am well aware of the costs, but what about the cost of not competing in these markets. The cost of lost sales. We are not the only company in the market. Nash: Believe me, Thomas, I know the European market. And, personally, I’m against your suggestion. It isn’t feasible.
Willhite: Well then, let me tell you this. We calculate that Can-Am’s sales in the UK will be lower than you forecast, as much as 17% lower. We also calculate that our total sales will double if we sell throughout Europe. We can’t ignore an opportunity like that ... and neither can you.
Θ Now listen to the recorded conversation.
Exercise 6. These are the arguments used in the meeting, for and against selling outside the UK. Who put forward these arguments – Touchline or Can-Am?
Can-Am has an 18% share of the UK market. Touchline
a)Potential in the European market is huge.
b)The majority of sales are in the UK.
c)Europe is made up of a number of different markets.
d)Europe offers a potential market of 15 million dollars a year.
e)Sales could double in continental Europe.
f)Distribution would be more complicated.
g)We must compete with other producers.
h)Sales in the UK will not be as high as forecast.
i)Your idea is not possible.
20
Exercise 7. Thomas summarizes the position with Touchline. Complete his summary with the words given below.
|
|
forecasts |
|
feasible |
distribution |
share |
costs |
revenue |
|
|
|
|
potential |
competition |
regulations |
|
|
||
|
|
|
|
|
|
||||
|
|
|
|
|
|||||
|
At present our |
share of the UK market is 18%. Our sales ............. |
(a) for the UK are much |
|
|||||
|
lower than Touchline’s. We know that Europe |
is a huge .......... |
(b) market. However, |
|
|||||
|
Touchline do not appear concerned that there is .......... |
(c) from other companies. Touchline |
|
||||||
|
insists that the |
............ (d) of selling throughout Europe would be too high. Firstly, they stress |
|
||||||
|
......... |
(e) systems differ from country to country. Secondly, they point out ......... |
(f) are not the |
|
|||||
|
same in every country. Touchline does not believe selling outside the UK is |
......... (g). We |
|
||||||
|
believe .......... |
(h) could double if Can-Am sells in Europe. |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
Revision of the file
Exercise 8. Insert prepositions where necessary.
1.Can-Am’s sales ... the European market are growing fast.
2.The annual revenue of the company comes ... export sales.
3.The company sells its products ... an exclusive distributor.
4.He invested $10000 ... an oil company.
5.Sales ... abroad have grown ... an annual rate ... 20% for the last few years.
6.Can-Am is competing ... rival companies from the USA.
7.Vice President of the company is concerned ... the present situation.
8.He contacted ... an expert from market research organization.
9.We are ... favour ... expanding our sales ... this market.
10.Our total sales will double if we sell ... Europe.
Exercise 9. Paraphrase the underlined phrases using your active vocabulary.
1.I know about this fact.
2.Several people in the Board said they didn’t support expanding on a new market.