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30
GROSS MARGIN
Apple’s success in the 83/84 period concealed several problems. In particular, the company had neglected its gross margin. In 85 Sculley raised and targeted the business market. He managed to drastically improve the company’s gross margin.
54% Gross margin as % of sales
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1983 |
84 |
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86 |
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XV. Read the articles and talk about which company you prefer to work for. Explain your reasons.
IBM |
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APPLE |
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IBM, |
known |
throughout |
the |
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When Apple started up in 1977, |
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business world as “Big Blue”; |
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it was a company of the |
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is the giant of the computer |
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counterculture. Its |
executives |
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industry. But its image is solid |
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dressed in T-shirts and jeans. |
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and |
respectable |
rather |
than |
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Loud rock music played in its |
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innovative and |
exciting. |
Its |
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labs and offices. Apple aimed to |
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executives wear blue suits and |
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shift the focus of computers |
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white |
shirts. |
They dedicate |
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away from institutions and onto |
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themselves |
to |
customer |
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individuals. For |
Apple, the |
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service, conformity and profit. |
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personal computer was a set of |
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Nobody ever got fired for |
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“wings for the mind” |
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choosing IBM, they say. |
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XVI. Look at the personal characteristics, each one has a clue beside it to help you and a dot for each letter that you need to add. Which of these
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traits of character |
1) do you most dislike in a partner ; |
2) is most |
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important for you in a partner ? Place them in order (of importance). |
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1. He knows what he wants and he usually gets it. |
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str.n.wi.led |
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2. |
He never gives up without a fight. |
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d.t.rmi.ed |
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3. |
He doesn’t do much – he just sits back and watches. |
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p.s..v. |
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4. |
If he likes you, he’ll fling his arms around you and say so. |
i.p.l.si.e |
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5. |
He never knows what he’s going to do. |
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ind.c.s.ve |
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6. |
He likes to be the boss, the one on top. |
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d.m.n.nt |
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7. |
He never does all the things he says he’ll do. |
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u.rel.a.le |
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8. |
He’s constantly like a child on Christmas End. |
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ex.i.able |
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9. |
He hates to lose, in business or at tiddlywinks. |
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c.mp.t.t.ve |
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10. |
He lacks will-power. |
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w.ak-w.l.ed |
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11. He has no principles about hurting other people. |
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u.sc.upu.ous |
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12. |
He doesn’t desert you in a crisis. |
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l.y.l |
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13. |
He puts his heart and soul into his profession. |
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ded.cat.d |
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14. |
His heart rarely rules his head. |
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r.ti.n.l |
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15. |
He won’t let anything stand in his way. |
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ru.hl.ss |
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16. |
He’s always the last to introduce himself. |
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r.ser.ed |
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17. |
Be careful what he’s doing while your back is turned. |
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dis.o.est |
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18. |
He behaves like the weather in April. |
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cha.g.a.le |
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19. |
He works 18 hours a day, jogs and plays squash. |
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e.e.ge..c |
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20. |
He jumps into the bath without testing the water. |
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i.pet.ous |
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21. He wants to be even bigger, even better – the best. |
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am..t.o.s |
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22. |
He can only ever see one side of things. |
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nar.owm.n.ed |
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23. |
He can see a beauty in a pile of rubbish. |
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im.gin.t.v. |
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24. |
He’s got a memory like a sieve. |
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f..g.t.ul |
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25. |
He almost seems to enjoy harming people. |
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mal.c.ous |
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26. |
He’s afraid that the whole world is looking at him. |
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s.l.-c.n.c.ous |
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XVII. Here’s the article for you to get some additional information (to that you were given in the text), about J. Sculley. It’ll help you form an idea of his personality. What is he like? The previous question (XVI) should be useful for you to describe Sculley. Write down the personal characteristics (good or bad) that you would expect to find in J.Sculley. Account for your choice.
RESUME |
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John Sculley |
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Education: |
BA, Architectural Design, Brown University, 1961 |
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Master of Business Administration, Wharton Business |
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School 1963 |
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Professional experience: |
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1983 to present |
PRESIDENT AND CHIEF EXECUTIVE OFFICER, |
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APPLE COMPUTERS, CUPERTINO, CALIFORNIA. |
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Masterminded turnaround of company after crash in |
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computer market at the end of 1984. |
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1977 to 1983 |
PRESIDENT, PEPSI-COLA PURCHASE, NEW |
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YORK. Supervised Pepsi Challenge advertising |
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campaign, saw Pepsi overtake Coke as best-selling soft |
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drink in American supermarkets. |
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1973 to 1977 |
HEAD OF PEPSI CO. FOODS INTERNATIONAL. |
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Turned an operation making a loss of $16m into a |
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business making $40m pre-tax profit. |
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1970 to1973 |
VICE PRESIDENT OF MARKETING, PEPSI-COLA. |
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Revived hugely successful Pepsi Generation advertising |
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campaign. |
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1967 to 1970 |
MARKET RESEARCHER, PEPSI-COLA. |
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1963 to 1967 |
ADVERTISING EXECUTIVE, McCANN-ERIKSON, |
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NEW YORK. |
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Speaking |
XYIII. Below is the opinion of John Sculley. Look through this thought. Think for a moment: 1. Who does Sculley call a visionary? 2.Is Sculley himself a visionary? 3. Who may be called visionaries in Apple? To answer the questions the definition of the word “visionary” can help you
( visionary n - a person whose aims for future are noble or excellent but may lack reality or not easy to put into practise).
“Visionaries are constantly looking over the horizon to tomorrow. If their vision is on target it will change the market and they will prosper even if it means losing a few battles on the way.”
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XIX. Summarize the text (the key patterns are in question XVII, text 1).
TEXT THREE
Pre-reading
Do you know these words?
afloat |
adj; adv |
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solvent |
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bid n |
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предложение цены; цена, предложенная |
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покупателем |
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bid price |
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цена покупателя |
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binge |
n |
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a short period of time in which you do smth |
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intensely |
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cash flow |
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движение денежной наличности |
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corporate raid |
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the sudden purchase of large members of |
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company’s shares |
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coup |
n |
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удачный ход; удача в делах |
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diversify v |
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вкладывать |
в |
разные |
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предприятия |
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(капитал) |
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hail v |
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провозглашать |
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hire |
purchase |
BrE |
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покупка в рассрочку |
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installment plan AmE |
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lose money hand over fist |
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lose large amount of money quickly |
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market capitalization |
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рыночная |
капитализация |
компании: |
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суммарная |
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рыночная |
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стоимость |
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выпущенных акций компании (число |
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выпущенных акций, умноженное на их |
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рыночную цену); также стоимость всех |
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акций на данной бирже |
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meltdown n |
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the melting of the material inside an atomic |
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reactor, so that it burns through its container |
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and allows dangerous radioactivity to escape |
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money market n |
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денежный рынок, рынок краткосрочного |
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капитала; |
система |
предоставления |
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краткосрочных |
займов |
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финансовыми |
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учреждениями |
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