English for Business Studies

English for Business Studies - Lecture 1

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@RecommendedLobster4464

Study Notes

Business Fundamentals:
- Industry types
- Business types
- Business models
- Company structures
- Reading
- Vocabulary
- Supply chain
- Email Cover Letter

Watch the video at this link: [https://youtube.com/clip/UgkxsagDoRJGyPFBzhjju7Z Rm1KDU7xHeL1?si=Yyraf34bld-Vlyrt](https://youtube.com/clip/UgkxsagDoRJGyPFBzhjju7Z Rm1KDU7xHeL1?si=Yyraf34bld-Vlyrt) to answer the following questions:
- What are the primary industries?
- What do they include?
- Do you think they are the only type of industry?
Primary industries include: agriculture, fishing, forestry, and mining.
Secondary industries include: construction and manufacturing.
Tertiary/service industries include: banking, tourism, and entertainment.

Industry types:
- Primary: agriculture, fishing, forestry, mining
- Secondary: construction, manufacturing
- Tertiary/service: banking, tourism, entertainment
Business types:
- Sole trader: owned by one person, responsible for all debts
- Partnership: two or more people, sharing profits and losses.
- Limited liability (Ltd): responsible for losses, not the owners; shares not sold publicly
- Public limited (PLC): owned by shareholders, gain/lose money based on share prices, known as corporation or Inc.
Business Model:
- B2B: business to business (companies selling to companies)
- B2C: business to consumer (companies selling to individuals)
- C2C: consumer to consumer (individuals selling to individuals)
- B2B2C: third-party vendors / consultants selling company products to consumers

B2B: business sells products/services to another business; requires long-term, trusted relationships
B2C: business sells products/services to individuals; requires marketing, brand recognition, and advertising
Example: farmer selling strawberries to a retailer (B2B) or to consumers at a shop (B2C)

Question 1: What do B2B and B2C have in common?
- Correct answer: They both involve a company selling products or services.
Question 2: If a farmer creates a shop and sells strawberries, what is his business model?
- Correct answer: B2C
Question 3: If a farmer sells strawberries to a supermarket, what is his business model?
- Correct answer: B2B
Question 4: Which statement is NOT true for the B2B model?
- Correct answer: The business sells directly to the public at high prices.
Question 5: Which statement is true for the B2C model?
- Correct answer: The business can get the higher end-consumer price for their goods.
Question 6: What is NOT suggested as a method to attract customers?
- Correct answer: Selling at low prices.

Functional Structure:
- Headquarters = head office, main office
- Departments organized by function (e.g. research and development, production, marketing, accounting, finance)
Hierarchical Structure:
- CEO (chief executive officer) at the top
- Other employees in different departments under the CEO
- Examples: sales manager, CFO (chief financial officer), R&D manager, sales representative, software developer, tester

Baker's Dozen breaks even, not because of selling products well but overall margin is too small, operating costs are too high.

Revenue: Money from customers
Cost of Goods Sold (COGS): Direct costs (materials and labor)
Gross Profit: Profit after direct costs
Operating Costs: Other costs (administration, buildings, utilities)
Operating Profit: Profit after direct and other operating costs
Tax and Depreciation: Money paid to the government, and loss in value of equipment
Net Profit After Tax: Profit after all costs and taxes
Dividends: Distributed to shareholders
Retained Profit: Money reinvested in the company

Raw materials supplier → Component supplier → Manufacturer → Wholesaler → Retailer → Customer

Email Cover Letter: A brief, professional message sent alongside a job application, highlighting why applicant is right fit for the job.
Components:
- Specific subject line
- Clear explanation of why you are suitable for the job with qualifications/experience
- Statement that you are applying for a specific job advertised on a website.
- Closing statement that includes attachment of CV and a closing phrase like "Best regards" / "Kind regards".