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THE US BANKING SYSTEMThe US banking system is not as tightly centralized as European systems. At its head we find the Federal Reserve Board (the "Fed"), which works through twelve regional Federal Reserve banks. The Board, (31) responsibility is directly to the Congress, is an independent agency, not subject to the orders of the President. But of course, a large amount of cooperation does exist (32) the White House and the Treasury on the one hand, and the Board on the (33) Credit cards are issued by banks or certain organizations and may be used by the (34) to have purchases (goods or services such as meals, accommodation and travel) charged to a bank account. The account is (35) for the corresponding amount and the card holder is sent monthly statements of account.Some credit cards are (36) internationally by many stores, hotels and restaurants. Cards holders may also obtain cash (37) presenting their card in a local bank, or by using automatic cash machine.Credit cards are issued by banks to their clients and guarantee the solvency of the holders (38) they pay by checks.In the USA, it is frequent for stores to (39) charge accounts for their customers. Instead of paying in cash the buyer only has to (40) a numbered card for the purchase to be charged to his account. 39()

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The History of Eldertree CosmeticsEarly days1. The company was established in ______ by Olivia Jenkins.2. Her products sold well because of the ______ of natural products.3. In order to satisfy demand, the owners had to find ______ in 1977. The 1980s4. The introduction of new products resulted in the ______ of the business.5. By recruiting professional expertise, the company managed to secure ______ with major UK retailers.6. To support further growth, Eldertree needed both of a bigger ______ company.7. In 1987 the company was acquired by Greenaway, the UK’s largest ______.8. To improve productivity, Greenaway decided to build a ______ in 1988.9. Greenaway also decided to keep Eldertree’s ______ for its products.EIdertree Cosmetics today10. Greenaway has centralised functions such as its ______.11. In spite of its increased size, the company has kept a ______.12. In the last decade Eldertree has become a ______ both at home and abroad. 2()

The History of Eldertree CosmeticsEarly days1. The company was established in ______ by Olivia Jenkins.2. Her products sold well because of the ______ of natural products.3. In order to satisfy demand, the owners had to find ______ in 1977. The 1980s4. The introduction of new products resulted in the ______ of the business.5. By recruiting professional expertise, the company managed to secure ______ with major UK retailers.6. To support further growth, Eldertree needed both of a bigger ______ company.7. In 1987 the company was acquired by Greenaway, the UK’s largest ______.8. To improve productivity, Greenaway decided to build a ______ in 1988.9. Greenaway also decided to keep Eldertree’s ______ for its products.EIdertree Cosmetics today10. Greenaway has centralised functions such as its ______.11. In spite of its increased size, the company has kept a ______.12. In the last decade Eldertree has become a ______ both at home and abroad. 1()

The Development of the Shoe IndustryFrom 1900 until 1940s, approximately 400 shoe manufacturers were operating in New England by 1985, only 10 percent remained. Despite the market pressures, Murrayhill remained profitable and had even diversified its distribution channels by establishing direct mail cataloging in the late 1970s. Murrayhill survived by producing a premium-quality product that was difficult to duplicate and that appealed to a narrow market segment willing to pay high prices for Murrayhill quality. As fashion became a more important component of men’s shoe purchasing behavior and casual styles became more popular; the company broadened its product line to include several fashionable and light-weight styles that retained the famous Murrayhill quality . (9) In 1985, the men’s premium shoe market was considered to include brands with a price range of $75 or higher. Murrayhill, Inc. Johnston & Murphy, E. T. Wright & Company, Alien Edmonds, and Florsheim were the major domestic manufacturers producing premium shoes.Measuring market share within the industry was difficult because so many of the manufacturers were private companies, like Murrayhill. (10) Alien Edmonds, headquartered in Wisconsin, relied primarily on nonproprietary retail outlets for its distribution. Its advertising was sizable, with expenditures in $1 million to $ 2 million range. (11) Alien Edmonds also operated a small direct mail catalog business, the majority of whose costs were handled by Edmonds’s retail accounts. E. T. Wright & Company, headquartered in Massachusetts, operated an extensive direct mail business and, like Murrayhill, relied on non-proprietary distribution. (12) Florsheim’s product line covered several price points, including those in the premium market. Florsheim was, by far, the strongest competitor, with an estimated market share of 18 percent and both non-proprietary retail distribution channels. Hanover, a medium-priced shoe manufacturer, also was noted for its direct distribution system. (13) Imports accounted for a 50 percent share of the total men’s shoe market. Bally, the strongest competitor, was the leading imported brand in this market before 1975 and maintained a market share of close to 25 percent at that time. By 1985, other imported brands included Baker Benjes, Cole Ham, Ferragamo, Bruno Magli, and Church’s. (14) Most of the imported brands were lighter in weight and designed to appeal to more fashion-conscious consumers.A. The continued labor intensity of shoe manufacturing made the industry vulnerable to lower priced imports.B. In addition, these companies were not always in direct competition because distribution channels differed.C. Despite the market pressures, Murrayhill remained profitable and had even diversified its distribution channels by establishing direct mail cataloging in the late 1970s.D. Johnston & Murrayhill, on the other hand, operated proprietary retail outlets and experimented in the mail order business for both men’s and ladies’ premium shoes.E. Most of this was spent promoting brand name awareness to consumers.F. The company owned over 100 proprietary retail stores, operated a successful mail order business, and produced private label footwear forJ.C. Penney & Sears, Roebuck department stores.G. The imported products differed from the domestic premium brands, however.H. Nonetheless, Murrayhill faced several strong domestic competitors and unrelenting price competition from imports. 14()

Question 4· You just came to this new company a week ago.· Write a proposal about your work.· Write 200—250 words on the separate answer paper provided.

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