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Unit 1. COMPANY STRUCTURES
Key Concepts
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shareholders |
people who own shares in a company or provide the capital |
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management |
board of directors or the people in charge of running a business, regarded collectively |
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workforce |
the total number of people who are employed by a particular company |
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organization chart |
an administrative and functional structure of a business |
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Board of Directors |
a group of people elected by its shareholders to manage the company who are responsible for policy decisions and strategy |
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Chairperson / President |
permanent head of the board of directors |
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Managing Director / Chief Executive Officer (CEO) |
the most important working director in charge of the way the company is managed, is appointed by the Board of Directors, has overall responsibility for the running of the business |
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senior managers / company officers |
heads of various departments or functions within the company |
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Marketing |
a department that is concerned with promoting, selling, and distributing a product or service |
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Public Relations (PR) |
part of an organization’s work that is concerned with obtaining the public’s approval for what it does, answering inquiries made by customers |
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Information Technology (IT) |
a department with the responsibility for the theory and practice of using computers to store and analyse information |
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Personnel / Human Resources (HR) |
a department with responsibility for the recruiting, training, and welfare of the staff |
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Finance |
a department with responsibility for paying the salaries, reporting how well or badly the company is doing and how much it can spend |
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Production |
a department that is concerned with making the actual product or rendering service, deals with quality and quantity problems |
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Research and Development (R and D) |
department that is concerned with designer work directed towards the innovation, introduction, and improvement of products and processes |
Supplementary Vocabulary
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shareholders |
акционеры |
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to provide the capital |
предоставлять капитал |
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management |
дирекция |
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workforce |
работники, рабочая сила |
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management structure |
структура управления |
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organization chart |
организационная схема |
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Board of Directors |
совет директоров |
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Managing Director |
директор-распорядитель, управляющий, главный менеджер |
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senior (top) management |
высшее руководство |
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middle management |
средний уровень управления (руководители подразделений) |
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chairperson |
председатель |
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to head |
возглавлять |
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to be responsible for |
отвечать за |
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to appoint |
назначать |
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Chief Executive Officer (CEO) |
(главный) исполнительный директор |
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overall responsibility |
общая ответственность |
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to run the business |
вести дело |
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company officer |
должностное лицо компании, член руководства компании (например, один из директоров) |
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departments of Marketing, Public Relations, Information Technology (IT), Personnel / Human Resources, Finance, Production, Research and Development (R and D) |
отделы маркетинга, связей с общественностью, информационных технологий, кадров, финансовый, производственный, (научных) исследований и (опытно-конструкторских) разработок |
1. Complete the passage below using the appropriate words or phrases from the box.
Chairperson Senior managers Managing Director Board of Directors
At the top of the company hierarchy is the 1 , headed by the 2 (or president). The board is responsible for making policy decisions and for determining the company's strategy. It will usually appoint a 3 (or chief executive officer) who has overall responsibility for the running of the business.
4 or line managers head the various departments or functions within the company.
The Philips Story
The foundations of the world’s biggest electronics company were laid in 1891 when Gerard Philips established a company in Eindhoven, the Netherlands, to manufacture light bulbs and other electrical products. In the beginning, it concentrated on making carbon-filament lamps and by the turn of the century was one of the largest producers in Europe. Developments in new lighting technologies fuelled a steady programme of expansion and, in 1914, it established a research laboratory to stimulate product innovation.
In 1920s, Philips decided to protect its innovation in X-ray radiation and radio reception with patents. This marked the beginning of the diversification of its product range. Since then, Philips has continued to develop new and exciting product ideas like the compact disc, which is launched in 1983. Other interesting landmarks include the production of Philips 100-millionth TV set in 1984 and 250-millionth Philishave electric shaver in 1989.
The Philips Company
Philips’ headquarters are still in Eindhoven. It employs 256,400 people all over the world, and has sales and service outlets in 150 countries. Research laboratories are located in six countries, staffed by some 3,000 scientists. It also has an impressive global network of some 400 designers spread over twenty-five locations. Its shares are listed on sixteen stock exchanges in nine countries and it is active in about 100 businesses, including lighting, monitors, shavers and colour picture tubes; each day its factories turn out a total of 50 million integrated circuits.
The Philips People
Royal Philips Electronics is managed by the Board of Management, which looks after the general direction and long-term strategy of the Philips group as a whole. The Supervisory Board monitors the general course of business of the Philips group as well as advising the Board of Management and supervising its policies. These policies are implemented by the Group Management Committee, which consists of the members of the Board of Management, chairmen of most of the product divisions and some other key officers. The Group Management Committee also serves to ensure that business issues and practices are shared across the various activities in the group.
The company creed is “Let’s make things better”. It is committed to making better products and systems and contributing to improving the quality of people’s work and life. One recent example of this is its “Genie” mobile phone. To dial a number you just have to say it aloud. Its Web TV Internet terminal brings the excitement of cyberspace into the living room. And on travels around the world, whether passing the Eiffel Tower in Paris, walking across London’s Tower Bridge, or witnessing the beauty of the ancient pyramids of Giza, you don’t have to wonder any more who lit these words famous landmark, it was Philips.
2. Answer the questions to the text about Philips on page 6 of the Student’s Book of New Insights into Business (NIiB SB).
1. What is known of Gerald Philips?
2. What was the produce of the company in the beginning?
3. What fuelled a program of expansion?
4. Why was a research laboratory established in 1914?
5. How did Philips protect its innovations?
6. What were the landmarks of the company’s diversification of its product range?
7. Which figures may well speak of the Philips’ impressive international presence?
8. Who determines the long-term strategy of the Philips group as a whole?
9. What is the managerial structure in the company?
10. What is the company creed?
11. What is its meaning?
12. What devices may remind you of Philips on travels around the world?