FIGHT FOR YOUR RIGHTS WHEN A DEAL GOES WRONG

Stores do their best to part us from our cash, but they are not always as friendly if a (1) …. is defective. We have teamed up with consumer watchdog Which? to offer some help.

a The iron I bought was faulty and I was given a replacement, but that also stopped working after a week. The shop has refused to exchange it, saying the second iron was a gift. Is this correct?

b My parents bought us a washing machine as a present but it exploded when we were out. The smoke and fire damage is extensive. Who is responsible for this?

с I have written many letters to a local supermarket after having found bits of glass in their fresh fruit. I still don't have a satisfactory response.

Which? answers:

1 As you did not buy the machine yourself, you have no contract with the shop. But you can claim against the manufacturer under the Consumer Protection Act 1987 for (2)….. to your house and any (3) …. injury. Your parents, however, can claim for the machine from the retailer.

2  Try contacting the trading (4) …. officer. He / she is responsible for

(5) …. of the Consumer Protection Act.

3 No, you are legally (6) …. to goods of a (7) ….. quality.

4.8  Companies operate in a legal environment. Below are 10 areas of legislation. Match each legislative area (1-10) with the correct description (a-j).

4.9 Business idioms. There are many metaphors and idioms related to sport and gambling used in the business world.

1) British business leaders say they face an unevenplaying field in Europe. (= unfair competition)

2) What time does the sales workshop kick off?(= start)

3) Let's kick arounda few ideas around for a new marketing slogan. (= discuss or brainstorm)

4) You may not like his methods, but he's realty onthe ball. (= quick to understand)

5) Can you give us a ball-park figure? (= an approximate number)

6)The ball's in our court now.(= it's (our) turn to do something about a situation)

7) The sales are on trackfor another quarterly improvement. (= likely to achieve)

8) The meeting is starting to get off track. (= not focus on the essential)

9) The company has a good track recordin running projects. (= shown how good they are in the past)

10) The company has been gaining groundon thebigger players in the industry. (= reaching a similar level to; important companies or people)

11) This could be a very lucrative deal in the longrun. (= at a much later time)

12) This strategy seems like a long shot.(= it will have little chance of success)

13)The odds arethat our competitors will lower their prices soon. (= It's likely)

Look at the business idioms in italics and choose the correct meanings.

1 Let's get this meeting back on track.

a) postpone for a later date            b) return to the main subject

2 Shall we go over the figures on the handout?

a) examine                                             b) ignore

3 Well, we are running out of time. So let's have one final question.

a) have lots of                           b) don't have much

4 Could you stick to the point?

a) give an example                             b) talk about what's relevant

5 Can we get your input on this?

a) hear what you think about                b) ask you to stop talking about

6 Would you like to kick off the discussion?

a) stop                                                 b) start

7 It's hard to keep track of what she's saying. She talks so fast.

a) decide what's relevant           b) follow and understand

8 Why don't we kick around a few ideas?

a) discuss                                                          b) reject

Unit 5 Planning  

Text 1 SWOT analysis

Before entering the marketplace it is essential to carry outa SWOT analysis.This identifiesthe strengthsand weaknessesof a product, service or company, and the opportunitiesand threatsfacing it.

A scan of the internal and external environment is an important part of the stra­tegic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic envi­ronment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection.

Strengths. A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths in­clude: patents or certain expertise; strong brand names; good reputation among customers; cost advantages from proprietary know-how;

exclusive access to high grade natural resources; favorable access to distribution networks.

Weaknesses. The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses: lack of patent protection; a weak brand name; poor reputation among customers; high cost structure; lack of access to the best natural resources; lack of access to key distribution channels.

In some cases, a weakness may be the flip side of a strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.

Opportunities. The external environmental analysis may reveal certain new op­portunities for profit and growth. Examples of such opportunities include: an unfulfilled customer need; arrival of new technologies; loosening of regulations; removal of international trade barriers.

Threats. Changes in the external environment also may present threats to the firm. Examples of such threats include: shift in consumer tastes away from the firm's products; emergence of substitute products; new regulations; increased trade barriers.

The SWOT Matrix

A firm should not necessarily pursue the most lucrative opportunities. Rather, it may have a better chance at developing a competitive edge by identifying a fit be­tween the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity. To develop strategies that take into account SWOT profile, a matrix of these fac­tors can be constructed.

- S-0 strategies pursue opportunities that are a good fit to the company's
strengths.

- W-0 strategies overcome weaknesses to pursue opportunities.

- S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats.

- W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.

                                                                             Source: www.quickmba.com

This is a SWOT analysis of PetraServe, a company which runs motorway service stations.

             SWOT and marketing strategy

Pat Albright is the senior marketing manager for PetraServe. She's presenting her marketing strategy to the board. The strategy was shaped by the SWOT analysis above.

“We need to exploit our strengths by making the most of our distribution network and loyalty programme. If we can also build on strengths such as our brand image and current profitability, then it'll be easier to address, or deal with, weaknesses such as the lack of new products. We need to anticipate the threat of new hybrid cars and seize the new opportunities this will bring in terms of providing service points for these cars. The potential price war in the fuel market poses a serious threat and we will need to minimize the weaknesses this may create. Our sector is also under threat from the trend towards greater consumer concerns about the environment, but I believe we can create an opportunity by strengthening our communication and informing consumers about what we're doing to preserve the environment.”

5.1 The extracts below are from a SWOT analysis. Do they describe strengths, weaknesses, opportunities or threats?

1 Competition is growing in this market, which could lead to a price war. There are now a lot of sites that offer the same service and product categories as Amazon. Amazon is a global brand but in some local markets the main competitor could be stronger and preferred by consumers.

2 Amazon has added a lot of new categories, but this may damage the brand. For example, offering automobiles may be confusing for customers. Due to increased competition, the offer is undifferentiated.

3 In 2004 Amazon moved into the Chinese market. There is huge potential here. In 2005 Amazon launched a new loyalty programme, AmazonPrime, which should maximize purchases from the existing client base.

4 Amazon is a global brand, operating in over ten countries. It was one of the first online retailers and today it has an enormous customer base. It has built on early successes with books, and now has product categories that include jewellery, toys and games, food and more. It has an innovative Customer Relationship Management programme. 

5.2 Complete the table with words from text 1 and related forms. Then complete the sentences below using words from the table.

1. Currently, the company is under….. from its main competitors.

2. In order to grow, the company will have to create new….. , not just exploit existing ….. .

3. We need to minimize     ….. and ….. .

4. To remain ahead of the competition we will need to anticipate …… such as increased raw material costs.

5.3 Correct the mistakes using words and expressions from text 1.

1. The brand is very strengthened.

2. Today, competitor fears about health are one of the biggest threats to the processed food sector.

3. An undifferentiated offer will weakness the company in the short term.

4. A clear opportunity is a gape in the market.

5. We may be threated by the emerging trend towards online shopping.

6. A war of prices has weakened our profitability.

5.4 Think about the company you work for, or one you would like to work for. Carry out a SWOT analysis of the company. Do the same for a company you would never want to work for.

5.5 A classic way to create a marketing strategy is to begin by looking at a company's Strengths, Weaknesses, Opportunities and Threats. Expo Marketing Consultants carried out a SWOT analysis of GUBU Toys Ltd. Put all their findings in the correct box to complete the SWOT analysis.

1 Reliable and committed workforce

2 Use of wood - seen as 'good for the environment'  

3 High labour costs

4 Location - far from population centres/ far from new markets

5 Beautiful handmade toys

6 Poor communications systems / limited technological skills

7 Internet as potential marketing tool / e-commerce

8 Lack of IT training in staff

9 Declining interest in domestic markets for traditional toys

10 Potentially strong demand in Germany and Scandinavia

11 Competition in Germany and Scandinavia / Baltic countries

12 Increased competition from mail order companies

13 Selling by new channels, e.g. mail order

5.6  Translate into English