Executive Directors

A modern business enterprise is often a ....................................... system requiring a lot of.......................................which is provided by the public when they .......................................shares in the company. Since they have .......................................the capital, it is appropriate that they choose the people who are to ......................................the company for them, namely the board of directors. Many of the.......................................also have executive responsibilities. Thus, a marketing director might be a full director of the board.......................................by the shareholders at the annual.......................................meeting like the other directors. Yet he might also be responsible for the day-to-day.......................................of the marketing department. Most of his time will be....................................... on administrative matters, organising market research, dealing with....................................... and generally ensuring that the ....................................... sales are maximised. But he will function as a director when the board of directors meets.

The .......................................... of managing director also ....................................... the roles of chief executive with membership of the board and this allows him to act as a vital .......................................between the board of directors and their ....................................... management team. The managing director is often also chairman of the board of directors.

Executive directors have the advantage that they are.......................................involved with the....................................... affairs. If the board of directors wish to move in a ....................................... direction the executive directors will know whether such a ....................................... of action is practicable. For example, the board might wish to ....................................... their products in a particular ....................................... market. The market would be profitable for the company, but the.......................................director knows that his team of salespeople lack the experience to take advantage of the situation. Or perhaps the board would like to ....................................... the advertising expenditure during the ....................................... year but the ....................................... director knows that the company will have to meet some heavy commitments during the…………….........................................months and it would be better to.......................................the campaign. Perhaps the best board is one which contains a.......................................of executive and non-executive directors. In this way the board has the.......................................of some directors who know the practical problems.......................................by the business, while others bring their own.......................................of expertise to the boardroom discussions.

Section D. Nouns and verbs

Add an appropriate noun or verb from the lists below to each of the following sentences where indicated:

a) The ....................................... of a company have the responsibility to ....................................... that the legal requirements are complied with.

b) The directors of a company must ...................................... a copy of the company's annual ....................................... to the Registrar of Companies.

c) The directors will ....................................... decisions by passing resolutions* at the ....................................... meeting.

d) Each of the directors will normally have one vote when a ....................................... is…………………… .

e) Resolutions are.......................................when there are a majority of .................................. cast in favour.

f) Executive directors are those who ....................................... departmental ………………… .

g) The directors are ....................................... by the ....................................... at the annual general meeting.

h) The managing director ....................................... to the board for the performance of his management .......................................

Nouns: accounts, board, responsibilities, directors, votes, shareholders, resolution, team.

Verbs: make, proposed, elected, answers, pass, ensure, undertake, send.

Section E. Multiple choice

Choose the phrase (a , b, or c) which best completes each sentence, and tick the appropriate box.

1. When the directors are discussing the problems facing the company they primarily have to consider

   1. the interests of the public;

   2. their own interests;

   3. the interests of the shareholders.

2. When a proposal is made and a vote taken the usual arrangement is that

   1. each director has one vote no matter how many shares he holds;

   2. only the chairperson can vote;

   3. the directors with most shares have the most votes.

3. Key members of staff will be chosen by the managing director because

   1. he is more knowledgeable than the other directors;

   2. he has got to answer to the board for their performance;

   3. he earns more than the other directors.

4. Non-executive directors will often be appointed because

   1. they have valuable contacts with potential customers;

   2. they have departmental responsibilities;

   3. no-one else is available.

5. Directors are usually required to have shares in the company so they can

   1. be seen to have a personal stake in the business and thus be affected by their decisions;

   2. receive share certificates from the registrar's department;

   3. take on administrative duties.

6. Strategic decisions are concerned with

   1. the details of day-to-day administration;

   2. the disposition of the company's resources;

   3. the payment of wages.

7. While decision-making powers are commonly delegated to senior executives

   1. the directors are not responsible to the shareholders for any mistakes which might be made;

   2. they are not responsible for any errors of judgement;

   3. the directors remain responsible to the shareholders for any mistakes which might be made.

8. The further ahead one plans

   1. the more troubles there are likely to be;

   2. the more one can anticipate problems and thus avoid them;

   3. the less one can anticipate problems.

9. Tactical decisions are those by means of which the senior executives

   1. carry out their own plans;

   2. destroy the opposition;

   3. carry out the plans prescribed by the board of directors.

10. The directors have to initiate long range plans with a view to ensuring

    1. the achievement of the company's objectives;

    2. the maintenance of good relations with the senior executives;

    3. compliance with the law.

Section F. Summarising

Give the following passage an appropriate title and summarise it in Russian in about 150 words.

Top management is often under heavy pressure so that immediate problems often absorb much of their efforts. Time to analyse complex data and project future trends is likely to be limited. To combat this problem a long-range planning department might be set up to act in an advisory capacity. The long-term planning team would be directly responsible to the managing director, but freed from routine duties. Such a department would be small and made up of top quality generalists*, trained to see the wood as well as the trees.

It is difficult to decide how far ahead to plan. An accurate long-term forecast is most advantageous to the firm, but the further ahead one looks, the less certain one can be of the outcomes. To overcome this problem a flexible approach needs to be adopted. Long-range plans for, say, three to five years might be mapped out, but there will have to be frequent reviews and re-appraisals so that the direction of the firm can be changed as and when the need arises.

Firms may want to enter new industries, launch new products, enter new markets (perhaps overseas) or acquire new subsidiaries. Existing activities may be expanded, consolidated or cut back. Whatever the requirements, careful planning is called for. The production side of the business has to be geared to keep pace with changes in the market. At the same time stocks must be kept at just the right level. If the stock level is too high, capital is tied up unproductively. If the stock level is too low, an upsurge in demand will lead to potential customers being turned away, possibly permanently.

There is also a difficult choice to be made between a policy of diversification* and short-term profit maximisation. The risk of failure can be reduced by choosing to produce a range of goods and services so that if revenue from any of them contracts it represents only a small part of the whole. A policy of diversification can be equated broadly to an insurance contract, and there is a price to be paid in both cases. In the case of insurance the price is in the form of a premium, and in the case of diversification it is the cost of choosing less profitable but more diversified activities. It is also possible, indeed likely, that the expertise of top management will fall short of encompassing all the diverse skills and detailed knowledge called for in such a wide range of undertakings.

The managing director, like the conductor wielding a baton on his rostrum, has the often unenviable task of orchestrating the diverse activities into a purposeful concerto.

Section G. Apostrophes

The following discussion took place at Beauty Unlimited between Terry Cotwood (Production Director), Helen Laleham (Chief Engineer), Sally Forster (Personnel Director) and Tom Burnett (Chief Timekeeper). The Production Director has brought them together to discuss a problem. His secretary has brought them in some coffee to start the proceedings. That is good psychology. It gives them a chance to socialise before they get down to business.

TERRY:	(to Helen) Well thats great Helen. I hope the mortgage goes through alright. You'll feel a toff living up at the Common... (he taps on his desk)... Can I have your attention?... Thank you... I think youve got an idea of what I want to discuss with you this morning. Its this business of absenteeism. Toms got the figures for us.
TOM:	Ive handed out copies to everyone. Id like you to look at the second page in particular. Its quite obvious where the main problems lie. The lipstick production lines the one that gives us most trouble.
SALLY:	Theyre always the problem. Youve got to understand how boring it is. The operations are repeated over and over again. Weve tried all sorts of things to make it a bit more bearable but its still one of the factorys worst jobs.
TERRY:	Id like to see some rotation of the jobs. Havent we tried that Sally?
SALLY:	It didnt work when we tried it a few years ago but Im quite prepared to try it again.
TERRY:	Thats good. Well leave that problem in Sallys hands and move over to Helens problem.
TOM:	By its very nature its the exact opposite of Sallys problem.
TERRY:	By its very nature?
HELEN:	The explanations simple enough, Terry. The engineers jobs are quite demanding in comparison with most jobs here. Our young engineers dont think theyre getting enough pay. Theyre leaving as soon as theyve got another job lined up. Those who are left are overworked. Thats whats keeping my people away from work. They cant keep up the pace.

Your task

You are asked to go through this passage of recorded speech putting in the various apostrophes which have been omitted.

Section H. Correct a report

You are the Personal Assistant to Richard Grieves, the Sales Manager at Fenton Floyd Ltd. He has been asked for a brief report on sales for the last quarter by Robert Davidson, the Managing Director. The report was drafted and sent down to the typing pool but it has emerged with a number of mistakes in it. Richard has asked you to go through it correcting any errors you find. There are at least ten obvious errors, he says, and there may be more.

To Richard Greves, From Robert Davidson, Sales manager Managing director

Sales for the last quarter of 200-

for the first time in six years we have fallen short of our quarterly sales target (by approximately 3%) and while this was a dissappointment to the whole of our team there are some simple explanations for the poor results. I understand you have already been given a detailed breakdown of the sales figures.

Overseas Division

The recent falls in the value of the US dollar have had an adverce effect on our sales in that part of the world. We find ourselves in an extremely competetive market, with a number of domestic companys already undercutting our prices. We have until now managed to retain our 10% share of the market, but the further decline of the dollar has put new pressure on us. New Products Division

This is the other area which has produced dissappointing results. The explanation here is, as you will know, that the Head of the Division recently suffered a heart attack and will not be returning to work. His replacement, Michael Graeme, had to be brought in from outside the company. While I am sure he will soon bring about a recovery, there has been a temporary downturn in sales in this division. Action being taken

every member of my team has been made aware of the seriousness of the situation and I am glad to say that from the projections in front of me it looks as if our total sales are once again beginning to rise, please let me know if you require any further details.

Richard Grieves

Section I. Complete the sentences

Complete the following sentences using your own words.

1. A non-executive director may ...

2. Although the directors only meet...

3. The directors are primarily ...

4. Long-term plans are necessary because ...

5. A personnel director ...

6. A financial director ...

7. The managing director in a manufacturing company ...

8. The lines of communication in a large company ...

9. The shareholders will expect the directors to ...

10. The directors are elected ...

11. When the directors choose their senior executives ...

12. When the directors vote in the boardroom ...

Section J. Meanings

The following memorandum was recently circulated to members of staff at Grenadier Products. You are asked to explain the meaning of the highlighted words and phrases.

GrenadierProducts MEMORANDUM To All Office and Sales Staff

From Julie Bright, Office Manager

(date) The directors have expressed concern that the telephone account for Grenadier Products has increased by 12½ % over the past twelve months. The total bill for the year has amounted to approximately ₤37,800 or over ₤150 for each working day. To get this figure into perspective, the telephone charges could be equated to the salaries of two fairly senior members of staff for a whole year. I fully appreciate that in a marketing orientated company such as ours a variety of contacts need to be made with customers and it would be foolhardy for telephone conversations to be abruptly terminated just because some arbitrary time limit has expired. However, the importance of the telephone to our business should not deter us from attempting to reduce the costs to a reasonable level. With the full approval of the directors I am now introducing the following guidelines which are to be followed by all members of staff from now on:

1. Before you make a 'phone call you are expected to plan out roughly what you are going to say. Have any files which may be necessary close to hand.

2. If you are unable to reach the person you require do not hang on while they are on the line to someone else.

3. Take advantage of any cheaper rates which are offered in off-peak hours.

4. Bear in mind that our customers also have to pay expensive 'phone bills. Doubtless they will also appreciate any reasonable attempt you make to deal with their enquiries quickly, smoothly and pleasantly.

5. Personal calls are not allowed except in emergency. The normal arrangement will be to ask your immediate superior for permission before making a non-business call. This rule is not intended to be applied harshly but any misuse of the telephone service puts greater pressure for economies on the rest of us.

6. When staff are using the 'phone from now on they should be particularly concerned to be cost-conscious. If everyone plays their part more drastic measures can be avoided. vii) Nothing which is written here can be used as an excuse for curtness and inefficiency in dealing with our clients/customers without whom this business would cease to exist, as would our jobs.

While these rules come into force immediately, the debate is by no means over. I would welcome ideas from any member of staff who can suggest further ways in which we can solve these (or any other), problems. Two ideas which have already been floated are: that a spell of telephone training should be included in the normal induction programme. that a small but thought-provoking label (see below) should be fixed to each telephone receiver in the company.

Section K. Vocabulary

shareholders	dividends	strategic	tactical	expertise
eminent	frequently	obligations	remuneration	delegation
curtness	co-ordinate	diversify	objectives	take-over
integrity	executive	enterprise	administration	conflicting
majority	arbitrary	initiate	compliance	generalist

Match the words listed above with the dictionary definitions which follow.

1. To avoid the situation where all the eggs are in one basket.

2. Someone in a position of authority.

3. An undertaking with a view to profit.

4. The quality of being reliable and straightforward.

5. Brevity to the point of rudeness.

6. Payments made to those who own the equity of a company.

7. To bring together effectively.

8. The decision which chooses the direction in which a company is going.

9. The part of a business concerned with day-to-day problems.

10. Opposing or warring.

11. Meeting with the set requirements.

12. Someone who is able to contribute to a business in a variety of its departments.

13. Having a reputation in a particular branch of business, such as law.

14. The sort of decision which is not based on facts.

15. The opposite of rights.

16. Targets or goals.

17. To commence or start.

18. More than half, for example, of votes cast.

19. Part proprietors of a company. Those who collectively own the equity.

20. Specialised skill or knowledge.

21. A description for salary, usually reserved for more senior officers.

22. The act of giving authority to one's subordinates, while retaining the responsibility for the outcome.

23. The situation when a majority of a company's voting shares are acquired by outsiders.

24. Occurring often.

25. The decision which concerns using the resources which have been allocated to the best possible effect.

Section L. Text for home translation

Your task: Give full written translation of the text with analysis of translation techniques. Pay special attention to the highlighted words and phrases. While translating, complete your glossary on the topic.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Top Managers: Nature of the Work All organizations have specific goals and objectives that they strive to meet. Top executives devise strategies and formulate policies to ensure that these objectives are met. Although they have a wide range of titles—such as chief executive officer, chief operating officer, board chair, president, vice president, school superintendent, county administrator, or tax commissioner—all formulate policies and direct the operations of businesses and corporations, non-profit institutions, governments, and other organizations. A corporation’s goals and policies are established by the chief executive officer in collaboration with other top executives, who are overseen by a board of directors. In a large corporation, the chief executive officer meets frequently with subordinate executives to ensure that operations are conducted in accordance with these policies. The chief executive officer of a corporation retains overall accountability; however, a chief operating officer may be delegated several responsibilities, including the authority to oversee executives who direct the activities of various departments and implement the organization’s policies on a day-to-day basis. In publicly held and non-profit corporations, the board of directors ultimately is accountable for the success or failure of the enterprise, and the chief executive officer reports to the board. The nature of other high-level executives’ responsibilities depends upon the size of the organization. In large organizations, the duties of such executives are highly specialized. Some managers, for instance, are responsible for the overall performance of one aspect of the organization, such as manufacturing, marketing, sales, purchasing, finance, personnel, training, administrative services, computer and information systems, property management, transportation, or the legal services department. In smaller organizations, such as independent retail stores or small manufacturers, a partner, owner, or general manager often is responsible for purchasing, hiring, training, quality control, and day-to-day supervisory duties. For example, general and operations managers plan, direct, or coordinate the operations of companies or public and private sector organizations. Their duties include formulating policies, managing daily operations, and planning the use of materials and human resources, but are too diverse and general in nature to be classified in any one area of management or administration, such as personnel, purchasing, or administrative services. In some organizations, the duties of general and operations managers may overlap the duties of chief executive officers.