Discovering a new market

SITUATION

Tortuga Toys is a Spanish toy manufacturer which would like to expand into South-East Asia. The owner has travelled to the area to assess the market for his company's latest product. This lesson examines finance, investment, business forecasting, the stock markets and market research. It also looks at how to make travel arrangements.

CHARACTERS

LANGUAGE

Doing some desk research

11.1 Document study

Ramon Figueras works for Tortuga, in Madrid. Tortuga makes toys, and Ramon is looking at the possibility of expanding into South-East Asia. He finds some press cuttings. Read through them, and make a list of 'Good news' and 'Bad news'.

Good news:
Bad news:

11.2 Reading for key words

Find the words or phrases in 11.1 that tell you the following:

11.3 Document study

Ramon finds another article. Read through it. You will need it for 11.4.

11.4 Listen and read

A month after the article in 11.3 appeared, Ramon's father died and Ramon took over the company. Ramon receives a telephone call from Jack Lytton. Listen to what they say. Who is Jack Lytton? Why has he phoned?

RAMON	Ramon Figueras.
JACK	Ramon? Jack Lytton here - from UCLA.
RAMON	Jack! Hi, how are you? Are you in Spain?
JACK	No, but I'll get around to it sooner or later, don't you worry. The reason I'm calling is I keep picking up rumours about Tortuga. How are things over there in Madrid?
RAMON	Well - it's what in your marketing seminars you used to call 'a very interesting situation'.
JACK	Oh boy! As bad as that, is it?
RAMON	No, it's not all bad. In fact I did this fantastic deal last time I was in California. Let me tell you about it...

11.5 Listen and read

Ramon continues his telephone conversation with Jack Lytton. Listen to what they say. What arrangements does Ramon already have with countries in South-East Asia?

RAMON	So, anyway, I'm planning to go to Bangkok in about three weeks to start investigating the market for the Dolphin Commando merchandise in Asia.
JACK	Good thinking. I'm glad you learnt something in my classes. Dolphin Commando looks set to take off here . Those toy whales look like being the big craze for kids this fall.
RAMON	Yes, I know. We're going flat out here to meet the orders from the big retailers. We've contracted out a lot of the manufacturing work to firms in Taiwan and the Philippines, and all the packaging and distribution is being done in Cleveland, Ohio. But when the Asian countries get the programmes beamed to them by satellite in the new year, the market's likely to explode overnight.
JACK	In that case I'd better get off the line and let you get on with it! I have one or two contacts in Bangkok you might find useful, by the way - I'll dig out their addresses for you.
RAMON	Thanks, I'd really appreciate it if you could do that. Well, it's been good talking to you, Jack. I'll speak to you again soon.
JACK	Surely. Take care now. Goodbye!

11.6 Document study: an interview

Read this interview about the economy, and then answer the questions that follow.

INTERVIEWER	It seems that the economy has struck a bad patch. How do you see the situation developing?
MAN	Well, the most serious threat is that of high interest rates plus rising inflation.
INTERVIEWER	How do you think companies will cope with this, if they can't afford to borrow?
MAN	They simply won't invest. They'll go on using old machinery and equipment. They won't train new labour.
INTERVIEWER	But a lot of companies are already lagging behind on capital investment , and the venture capital is going abroad.
MAN	In that case, when the upturn in the economy does come, they won't be ready for it. They won't be able to meet the increased demand for goods.
INTERVIEWER	And if they're not competitive?
MAN	The companies will simply go into liquidation.

11.7 Writing practice

Ramon makes brief notes of things he has read and things he has heard in his conversations which might be useful to him. Read the articles in 11.1 and 11.3 again, and listen to 11.5. Now write notes for Ramon. Start with your list from 11.1.

Commissioning a market study

11.8 Listen and read

Ramon telephones a firm of market consultants in Bangkok. Listen to the way that Ramon says only enough to make sure that he is talking to the right person. Notice also how the people in the firm explain exactly what tney can do to help him.

RECEPTIONIST	Good afternoon, Thaipro Consultants, can I help you?
RAMON	Ah! Hello. I'm thinking of commissioning your company to do some market research for me in Thailand. I shall be coming to Bangkok in a week or so, but I wonder if there's someone I could have a word with now?
RECEPTIONIST	Yes, I think so. We have several departments here which specialise in different market sectors. Can you give me some idea of what type of business you're in?
RAMON	Yes, we manufacture and distribute toys. All kinds of toys!
RECEPTIONIST	Oh yes. Hold on, I'll put you through to someone who can help you. Oh! What name shall I say?
RAMON	Figueras - Ramon Figueras. ......
WOMAN	Good afternoon, Mr Figrash? How can I help you?
RAMON	Oh, good afternoon! My name is Ramon Figueras, I am chairman of...

11.9 Listen and read

The telephone conversation continues. Notice how the woman and Ramon show that they have finished the conversation.

WOMAN	Right, Mr Figueras, I look forward to meeting you when you come to Bangkok. If you telephone me a bit nearer the time , we'll make an appointment to meet at my office; we're quite central.
RAMON	Good. And meanwhile I'm looking forward to getting that investment fact-sheet you mentioned. Thank you for your help. Oh! I don't think I have your name.
WOMAN	Just ask for Supa - S-U-P-A. If by any chance I'm not in the office , my colleague will make the appointment.
RAMON	Right, thank you very much indeed, Supa.

11.10 Document study

The following is part of the leaflet on the economy and investment prospects that the consultant, Supa, sent to Ramon. Read through it carefully. Make a list of things that Ramon might think are 'Good', and a list of things he might think are 'Bad', for his company.

The Foreign Investment Outlook in Thailand, 1992-96

Thailand, with its modern infrastructure and services , rapidly-expanding young urban population and educated workforce, is set for spectacular economic and industrial growth. This is particularly true of textiles, electrical goods and light industrial products such as toys.

Targets and Forecasts for the Sixth and Seventh Plans
(based on official figures and Thaipro research)

* 1987 prices
** Million baht
*** % annual increase; 1987 prices

Source (1986-91 figures): Thai Government Board of Investment

This strong demand-led growth is projected to continue at least throughout the 1990s and offers outstanding medium-term market prospects to overseas suppliers and investors.

On the manufacturing side, we are conducting a research programme to assess the long-term outlook for overseas companies willing to set up joint ventures under Thai business law with local entrepreneurs , as well as 100% foreign-owned businesses.
A crucial factor will be the speed with which Thai manufacturers can meet the increasing demand for good design and durability as well as volume of goods. Interim findings of this project suggest that large-scale investment will be required and that overseas companies may need to be prepared to take risks and to move fast to exploit windows of opportunity.

Good:
Bad:

11.11 Reading for key words: formal and informal language

In her written report, Supa uses more formal language than when she talks to Ramon on the telephone. The phrases below are taken from the report. Write what Supa might say to Ramon to express the same meanings.

Making a business trip

11.12 Listen and read

Ramon is now in London, booking his flight on to Bangkok. Listen to what he says to the travel agent.

11.13 Listen and read

Ramon has to change his plans and postpone his flight to Bangkok. The travel agent telephones Ramon to tell him the new details. First read through the dialogue below. Then listen to what they say, and write your answers.

RAMON	Splendid! What's the airline and the flight number?
AGENT	Philippine Airways, (a) .
RAMON	Leaving Heathrow what time?
AGENT	(b) .
RAMON	From Terminal 4?
AGENT	No. (c) .
RAMON	When does it arrive in Bangkok?
AGENT	(d) next morning, local time.
RAMON	I see. Am I still in the same hotel?
AGENT	No, the Oriental was full, so I booked you into the (e) .
RAMON	Oh, right. I may need to ring them. Do you have the phone number? With the dialling code, please.
AGENT	(f)
RAMON	Thanks. Now, suppose I need to call you again. Is there a booking number I should quote?
AGENT	Your booking number is (g) .

11.14 Speaking practice: checking the details

Ramon continues his conversation with the travel agent. First read through the dialogue below. Then listen to what they say. Listen again, and speak the part of Ramon.

AGENT	Is that all right, Mr Figueras?
RAMON	Fine, thank you. One other thing. I gave you my personal credit card yesterday, and I should have given you my business Visa card.
AGENT	Right, that's easy. I can charge that to your business card if you will give me, first, your card number.
RAMON	(a) .
AGENT	Right. And the expiry date.
RAMON	(b) .
AGENT	Also I need to know the exact name on the card, please.
RAMON	(c) .
AGENT	Right, that's it then. Your ticket will be ready for collection tomorrow. Thank you, Mr Figueras! Goodbye!

11.15 Listen and read

Ramon is now on his journey from London to Bangkok. Listen to these statements and conversations. Where do you think Ramon is when each voice speaks?

VOICE 1	Your attention please - passengers for flight PR731 to Bangkok, please proceed at once to the Departure Lounge. PR731 passengers, boarding now at Gate 4. Please have your boarding cards ready. ......
VOICE 2	We shall be cruising at thirty-five thousand feet at a speed of four hundred and thirty miles an hour. On behalf of Philippine Airways, may I wish you a pleasant flight. ......
VOICE 3	Good morning, sir. Would you like a newspaper?
RAMON	Er, yes. If you've got a 'Financial Times', I'll take that. ......
VOICE 4	Ladies and gentlemen, we are now approaching Bangkok and we shall touch down in approximately ten minutes. Please fasten your seatbelts and extinguish all cigarettes. The weather on the ground is cloudy and wet, air temperature twenty-nine degrees. We may encounter a little turbulence on our approach , but nothing to worry about. ......
VOICE 5	Good morning, sir. You are travelling from London?
RAMON	Yes, that's right.
VOICE 5	Do you have anything to declare?
RAMON	No.
VOICE 5	Go straight through to passport control and immigration, please.

11.16 Listen and read

While he is waiting for a taxi, Ramon is approached by someone. Listen carefully to what they say. Listen to how Ramon cannot at first remember the other person.

MAN	Excuse me - aren't you Ramon Figueras?
RAMON	Yes, but I'm afraid ...
MAN	I knew it. I remember you from college - we were at UCLA together.
RAMON	Well yes. I was at UCLA but...
MAN	Hagendahl. Fred Hagendahl. I was reading Management Science - you were on the MBA.
RAMON	Ah, right! Didn't you have something to do with that IBM thing?
FRED	No, that was Johnson. I was the one who tried to organise the monkeys.
RAMON	Of course, I remember. You wanted them to write Shakespeare.
FRED	That's me. You do remember! You staying in Bangkok?
RAMON	Yes. At the Shangri-la.
FRED	Great. I'm at the Oriental. They're real close to each other. You want to share a taxi?

11.17 Writing practice

Ramon decides to add to the notes he made in 11.7, by writing details of what has happened to him since then. Write the details for him in note form.