The key answer of exercise 3

There are no definite fixed answers, and it is best to work with what students come up with. However, in case they get stuck, here are some probable responses:

1. upturn in sales → better advertising and marketing, economy is picking up, product is becoming better known; decline in sales → product is becoming outdated, cheaper rival products have appeared
2. solid client base / loyal customers → years of work building this up, good product, excellent after- sales service, good reps
3. inundated / flooded → the result of advertising, celebrity endorsement, being picked up on by the media, etc.
4. relocating / moving → usually a cost-cutting measure, but could be to be nearer manufacturing centre, nearer transportation links or where the main business is
5. lay off → need to cut costs, business could be in financial trouble or could want to increase profits by cutting costs; employ → business is booming, expanding, demand is up so need more people
6. floating / launching → need investment and this is one way to get it whilst retaining basic control of the firm
7. pick up / get better soon → things need to improve through better advertising or improving product, business is in financial trouble, losing money, need to make major savings; maybe there’s a recession or products are outdated; end up going under → going out of business because sales aren’t improving; have to make serious cutbacks → have to make people redundant, reduce quality of goods, reduce salaries
8. hanging in / surviving → company has maybe cut back a bit, cut down on lavish spending, salary cuts, diversifying range of products and services or sending business overseas where salaries and costs are less
9. diversify → because core products are no longer as profitable as they once were; consolidate → no money to really expand or add new products so what there is now is good enough but needs updating to make it more saleable, build on what there is
10. take staff on → business is doing really well, company is expanding, demand is up, more people needed; make staff redundant → company is in financial trouble so need to cut costs so fewer people needed
11. downturn / drop in sales → product is perhaps becoming outdated, cheaper rival products have appeared
12. terminating → maybe had a row with the Russian partner; feel treated unfairly, don’t trust them anymore; contract is impossible to fulfill; they’ve breached the contract, etc.; pitching → you want to win the contract as it’d be lucrative for you; need the contract in order to expand