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Finances

cost structure: The monetary consequences of the means employed in the business model. A company's overhead.

revenue: The way a company makes money through a variety of revenue flows. A company's income.

These 9 business model building blocks constitute a business model design template which allows companies to describe their business model.

Evolution

A brief history of the development of business models might run as follows. The oldest and most basic business model is the shop keeper model. This involves setting up a store in a location where potential customers are likely to be and displaying a product or service. Over the years, business models have become much more sophisticated. The bait and hook business model (also referred to as the "razor and blades business model" or the "tied products business model") was introduced in the early 20th century. This involves offering a basic product at a very low cost, often at a loss (the "bait"), then charging compensatory recurring amounts for refills or associated products or services (the "hook"). Examples include: razor (bait) and blades (hook); cell phones (bait) and air time (hook); computer printers (bait) and ink cartridge refills (hook); and cameras (bait) and prints (hook). An interesting variant of this model is a software developer that gives away its word processor reader for free but charges several hundred dollars for its word processor writer.

New words and word combinations: 1. to reveal - появляться, открывать

2. to employ - нанимать

3. goal - цель, месть назначения

4. to be aware of - осознавать

5. survival - выживание

6. salary - заработная плата

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7.safe working conditions - безопасные условия работы

8.performance - выполнение

9.to provide - обеспечивать

10.growth -рост

11.responsibility - ответственность

12.approach - подход

13.to adopt - принимать

14.schedule - расписание

15.deadline - крайний срок

Read and translate into Russian Text B. Management and human resources development.

Managers perform various functions, but one of the most important and least understood aspects of (heir job is proper utilization of people. Research reveals that worker performance is closely related to motivation; thus keeping employees motivated is an essential component of good management. In a business context, motivation refers to the stimulus that directs the behavior of workers toward the company goals. In order to motivate workers to achieve company goals, managers must be aware of their needs

Many managers believe workers will be motivated to achieve organizational goals by satisfying (heir fundamental needs for material survival. These needs include a good salary, safe working conditions, and job security. While absence of these factors-results in poor morale and dissatisfaction-, studies have shown that their presence results only in maintenance of existing attitudes' and work performance. Although important, salary, working conditions, and job security do not provide the primary motivation for many workers in highly industrialized societies, especially at the professional or technical levels

Increased motivation is more likely to occur when work meets the needs of individuals for learning, self-realization, and personal growth. By responding to personal needs - - the desire for responsibility, recognition, growth, promotion, and

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more interesting work managers have altered conditions in the workplace and, consequently, many employees are motivated to perform more effectively.

In an attempt appeal to both the fundamental and personal needs of workers, innovative management approaches, such as job enrichment and job enlargement, have been adopted in many organizations. Job enrichment gives workers more authority in making decisions related to planning and doing their work. A worker might assume responsibility for scheduling work-flow, checking quality of work produced, or making sure deadlines are met. Job enlargement increases the number of tasks workers perform by allowing them to rotate positions or by giving them responsibility for doing several jobs. Rather than assembling just one component of an automobile, factory workers might be grouped together and given responsibility for assembling the entire fuel system.

New words and word combinations:

1.marketing - изучение рынка

2.a means - средство

3.to sell - продавать

4.to eliminate - устранить

5.equipment - оборудование

6.to suffer - страдать

7.to achieve - достигать

8.to maintain - поддерживать

9.cost - стоимость, цена

10.to advertise - рекламировать

11.to find out - обнаружить

12.manufacturer - производитель

13.long-term - долгосрочный

Read and translate into Russian: Text C. Marketing and management.

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Marketing is an integral part of the business operations. It is the fundamental means by which industry sells its products. To curtail marketing or to eliminate it altogether would be like suggesting that industry should stop selling - - a process that would remove the dynamic element in the national economy. In some industries, such as office equipment and data processing, it would be more than the growth rate that would suffer. In new industries selling to new markets is essential, and in modernized production plans of the established industries marketing effort is necessary to achieve the volume essential in maintaining low unit costs and remaining competition internationally.

The most criticized activity of marketing is advertising. Advertising is intended to inform in order to sell. The advertiser describes his product as being the best because he believes this to be true. He has spent time researching the place and finding out people's needs and then developed a product accordingly. Following this he goes into the market place and promotes the product he has specially developed for the market he has selected. So the manufacturer will not normally give information damaging the product. Nor should he be expected to.

Management is not the same as planning, although the two ideas have much, in common. When people argue nowadays in favour of economic planning they usually have in mind long-term structural changes in the economy calculated to accelerate the rate of economic growth.

New words and word combinations:

1.currency - валюта деньги

2.to peg - держать цену

3.circulation - оборот

4.exchange rate - валютный курс

5.monetary - монетный, денежный

6.to adopt - принимать

7.to join - присоединиться

8.financial market - финансовый рынок

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9.to account - считать

10.to replace - вытеснить

11.minting - чеканка

12.distribution - распределение

13.payment - платеж

Read and translate the text. Text D. Euromoney.

The euro (currency sign: €; banking code: EUR) is the official currency of the Eurozone, which consists of the European States of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia and Spain. It is the single currency for more than 317 million Europeans. Including areas using currencies pegged to the euro, the euro affects more than 480 million people worldwide) With more than €610 billion in circulation as of December 2006 (equivalent to US$802 billion at the exchange rates at the time), the euro has surpassed the U.S. dollar in terms of combined value of cash in circulation. While all EU member states are eligible to join if they comply with certain monetary requirements, the euro is not used in all of the European Union as not all EU members have adopted the currency. All nations which have recently joined the EU are pledged to adopt the euro in due course, but the United Kingdom and Denmark are under no such obligation. Several small European states (The Vatican, Monaco and San Marino), although not EU members, have adopted the euro due to currency unions with member states. Andorra, Montenegro and Kosovo have adopted the euro unilaterally.

The euro was introduced to world financial markets as an accounting currency in 1999 and launched as physical coins and banknotes in 2002. It replaced the former ECU at a ratio of 1:1. The euro is managed and administered by the Frank- furt-based European Central Bank (ECB) and the European System of Central Banks (ESCB) (composed of the central banks of its member states). As an independent central bank, the ECB has sole authority to set monetary policy. The

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ESCB participates in the printing, minting and distribution of notes and coins in all member states, and the operation of the Eurozone payment systems.

Unit VI. Computers

New words and word combinations:

1.artificial - искусственный

2.inference - вывод, заключение

3.cognitive - познавательный

4.skill - навык, умение

5.to calculate - считать, вычислять

6.to contain - содержать

7.to represent - представлять

8.widespread - широко распространенный

9.endeavor - попытка, старание

Read and translate into Russian Text A. Expert systems and artificial Intelligence.

Are computer programs that are derived from a branch of computer science research called Artificial Intelligence (Al). Al's scientific goal is to understand intelligence by building computer programs that exhibit intelligent behavior. It is concerned with the concepts and methods of symbolic inference, or reasoning, by a computer, and how the knowledge used to make those inferences will be represented inside the machine. Of course, the term intelligence covers many cognitive skills, including the ability to solve problems, learn, and understand language; Al addresses all of those. But most progress to date in Al has been made in the area of problem solving - concepts and methods for building programs that reason about problems rather than calculate a solution.

Al programs that achieve expert-level competence in solving problems in task areas by bringing to bear a body of knowledge about specific tasks are called knowledge-based or expert systems. Often, the term expert systems is reserved for programs whose knowledge base contains the knowledge used by human ex-

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perts, in contrast to knowledge gathered from textbooks or non-experts. More often than not, the two terms, expert systems (ES) and knowledge-based systems (KBS) are used synonymously. Taken together they represent the most widespread type of Al application. The area of human intellectual endeavor to be captured in an expert system is called the task domain. Task refers to some goaloriented, problem-solving activity. Domain refers to the area within which the task is being performed. (Typical tasks are diagnosis, planning, scheduling, configuration and design. An example of a task domain is aircraft crew scheduling.

Building an expert system is known as knowledge engineering and its practitioners are called knowledge engineers. The knowledge engineer must make sure that the computer has all the knowledge needed to solve a problem. The knowledge engineer must choose one or more forms in which to represent the required knowledge as symbol patterns in the memory of the computer - that is. he (or she) must choose a knowledge representation. He must also ensure that the computer can use the knowledge efficiently by selecting from a handful of reasoning methods. The practice of knowledge engineering is described later. We first describe the components of expert systems.

New words and word combinations:

1.to take a look - взглянуть

2.mainframe computer - большая ЭВМ

3.user - пользователь

4.to shrink - сокращать

5.to overcome - преодолевать

6.personal computer - личный компьютер

7.network - сеть

8.to provide - обеспечивать

9.to lay down - составить(план)

Read and translate into Russian Text B. Digging up the past of networks and the birth of Ethernet.

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Following on from the launching of Zilog's Z-Net local area network, it seems an appropriate time to take a look at a principal competitor, Ethernet, particularly as the three companies participating in this scheme — Intel, Digital Equipment Corporation and Xerox — held a European seminar on the subject in Amsterdam on 2nd March.

Why do we need local area networks? To answer this it is necessary to recap briefly on the history of data processing. In the 'forties and 'fifties, mainframe computers (macros) operated on the batch processing principle, with users queueing to run their jobs. Their programs frequently crashed, had to be debugged and then re-submitted, resulting in taking up a spot at the back of the queue again.

When transistor technology came along mainframes began to shrink in size and also in price: this allowed Digital Equipment (DEC) in 1963 to introduce the first commercial timesharing system, the PDP6. This overcame the queue problem to some extent by allowing up to 16 users to have simultaneous access to the machine.

Development continued throughout the 'sixties during which the PDP8 minicomputer came along and achieved a dominant-.position as an industrial workhorse.

A breakthrough came in 1972 when timesharing was made available on minis. This was an important event, since it brought computers out of machine rooms and into user offices. The next step was to link minis and terminals to macros, which resulted in the well-known 'spaghetti' problems associated with vast quantities of hard wiring.

In the mid-seventies, with the advent of personal computers, interconnection between micros, minis and macros had become a pressing problem. Many of these small machines could not access data on larger machines, or other small machines at different locations. This problem led to the conception of the single cable local area network (LAN). Dropping a cable down a lift shaft with a branch

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on each floor could link hundreds of different machines from various manufacturers into an intelligent communications network; more importantly, it would provide the necessary structure to manage distributed computing.

Xerox Corporation began working on the idea in 1975 and developed the basic local network design. Agreement was reached with Intel to develop the VLSI components and with DEC to supply system expertise in transceivers and minicomputer networks. Between them and, in the case of Xerox, $10 million later, specifications were available and protocol laid down to encourage widespread implementation.

Many big companies, like ICL, Olivetti, Hewlett-Packard and Nix-dorf, are committed to designing future products for use on the Ethernet network. At the present time there have been over 270 applications from interested firms, of which number 22 have announced agreement on compatibility. Furthermore considerable interest has been generated in the process control industry and several firms have entered into negotiations with Xerox to establish the feasibility of introducing Ethernet protocol into instrumentation projects.

Ethernet has been field-proven for over five years at various Xerox sites throughout the USA. It has over 7000 man-years of development behind it, sufficient to dispel many of the myths surrounding it.

Criticisms which have been leveled at the Ethernet concept concentrate on performance, cost and the limited number of attachments possible. The first of these has been largely answered by Xerox's William Lynch, Answering the question: 'Can I guarantee that my message will get there in a tenth of a second if I use Ethernet?' He says: 'Yes! Data can get from sender to receiver in a tenth or a hundredth of a second almost always. Conservatively, it can get there in a hundredth of a second upwards of 90% of the time

DEC put it another way: the entire contents of Tolstoy's War and Peace could be transmitted in 4.4s' Concerning the number of attachments that can be 'hung' on the network. Ethernet has 1024 tap locations each of which can interface several

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terminals. Servicing 2000 is not seen as a problem The idea that Ethernet is just a development project which would never be implemented has been well and truly scotched. Already there are over 40 installations up and running in the USA. So far as the UK is concerned, the Greater London Council's installation is due to come on-line this month.

New words and word combinations.

1 .a computer game-компьютерная игра

2.to save-сохранить, сэкономить

3 .counterpart-партнёр

4.tools-инструменты

5.to require-требовать 6.equipment-оборудование

7.соnsumer-потребитель

8.to correlateнаходиться в каком-либо соотношении 9.а survey-обозрение, осмотр

10.а device-устройство

I1 .а pattern-образец, модель

12.to face smth-оказаться лицом к 13.to embark-грузить H.softwarenporpaMMHoe обеспечение 15.hardware-системный блок

Read and translate into Russian. Text C. Major computer applications.

A student learns French by playing a computer game in which the object is to successfully rent an apartment in Paris. Instead of building a physical model, an aerospace engineer saves millions of dollars and thousands of hours by testing an airframe concept on a computer.

His electronics-industry counterpart, using powerful computer-aided-design (CCAD) tools, creates a computer that would have required the work of 40 engineers two decades ago.

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