Market Leader Intermediate 3rd edition SB
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ACTIVITY FILE<br />
6 Money, Skills, Exercise A, page 57<br />
Business in brief<br />
h was a bad day for the London<br />
market. Following disappointing<br />
results from FedEx in the US and<br />
fears of a credit crunch, the FTSE<br />
5 100 fell 125 points or 1.8 per cent<br />
to 5,756.9, while the FTSE 250<br />
fell 189.1 points or 1.9 per cent to<br />
9,538. Only eight blue-chip stocks<br />
managed to make gains. The best<br />
10 was Smith & Nephew, Shares in<br />
the medical devices group rose<br />
2.9 per cent to 5991' after UBS<br />
upgraded the stock to a 'buy'<br />
recommendation. S&N was also<br />
15 supported by rumours of a bid<br />
approach from a Japanese company.<br />
On the other hand, British Airways.<br />
down 5.2 per cent to 225'/,p, fell<br />
even further after Morgan Stanley<br />
20 cut its largel to 149p. This was<br />
because of worries about increasing<br />
fuel prices.<br />
Tate and Lyle, the sugar and<br />
sweeteners grouP. lost 5.8 per cent<br />
25 to 402'/,p after CityGroup lowered<br />
its forecasts because of rising com<br />
prices. Following recent floods in<br />
lhe US, lhe cost or com has risen<br />
25 per cent.<br />
6 Money, Case study, page 59<br />
Sculptures of famous people<br />
Description<br />
You make sculptures of famous people, e.g. Mohammed<br />
Ali, Michael Jackson, George Clooney, etc.<br />
The average price of a sculpture is $30,000. A recent<br />
sculpture of Nelson Mandela was bought for $55,000.<br />
The sculptures are aimed at all art lovers, but especially<br />
wealthy collectors.<br />
Why you want the money<br />
To finance and market exhibitions of 100 sculptures in<br />
New York and San Francisco art galleries next year.<br />
Advantages for tycoons<br />
The sculptures are very popular. The tycoons will be<br />
allowed to own nine of the sculptures at the end of the<br />
exhibitions.<br />
Negotiating terms<br />
You want the tycoons to invest $200,000 in 100<br />
sculptures. You offer 10% of the total sales revenue.<br />
Yo u moy invent any other information you wish. Note: it is<br />
likely that the tycoons will ask for a bigger stake in your<br />
business. Yo u must decide if it is worth increasing your<br />
offer. Try to predict what questions they will ask you.<br />
,-----,<br />
Alfresh lunch box with cooler<br />
Description<br />
You have your own company, Wangli Products. It makes a<br />
range of products for the leisure and food industries.<br />
The lunch box has sections for food, such as cheese and<br />
fruit, and small and large pots for milk, yoghurt, fruit<br />
juice, etc. There's a space for cooler bags.<br />
Alfresh is aimed mainly at schoolchildren, but will also be<br />
used by adults.<br />
Why you want the money<br />
You have cashfiow problems at present. You need<br />
additional finance to launch and market the new product.<br />
Advantages for tycoons<br />
The unique design of the box, its shape and colourful<br />
appearance will ensure it will be a winner!<br />
Turnover/profit projections<br />
Year 1: $100,000/$20,000<br />
Year 2: $500,000/$260,000<br />
Year 3: $3.5m/$1.2m<br />
Negotiating terms<br />
You want the tycoons to invest $200,000 for a stake of<br />
10% in our business.<br />
You may invent any other information you wish.<br />
Note: it is likely that the tycoons will ask for a bigger<br />
stake in your business. Yo u must decide if it is worth<br />
increasing your offer. Try to predict what questions they<br />
will ask you.<br />
136<br />
scanned for Paul Jennings
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