Indicates
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
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.
Exercise 5. Use the graph to forecast Can-Am’s sales in Finland.
$
5
0000
3
0000
1
0000
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.
We expect ............. in year 7.
We believe ........... in year 8.
We forecast that .......... in year 9.
Θ Now work through the recorded exercise.
Θ The meeting continues. Thomas Willhite argues for a larger market.
Read the text
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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. 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
Potential in the European market is huge.
The majority of sales are in the UK.
Europe is made up of a number of different markets.
Europe offers a potential market of 15 million dollars a year.
Sales could double in continental Europe.
Distribution would be more complicated.
We must compete with other producers.
Sales in the UK will not be as high as forecast.
Your idea is not possible.
Exercise 7. Thomas summarizes the position with Touchline. Complete his summary with the words given below.
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forecasts feasible distribution share costs revenue potential competition regulations |
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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. |