Career

Express

gee

Course Book
Gerlinde Butzphal and Jane Maier-Fairclough
Library
Summer Row
Birmingham
B3 1JB
Tel: 0121 232 4055
www.ucb.ac.uk
C a r e e

Exp r e s s

Book
Course
al
Gerlinde Butzph
gh
Jane Maier-Fairclou
eS:

ProfeeDrMario Oesterreicher
Cyn idenMachleidt
Dr PeterTischer

Garnet
Introduction

Career Express Business English B2 is a multimedia course, which has been specifically
designed and developed for students in higher education. It covers the B2 level of the CEF
(Common European Framework) and has been written in American English.

Each of the twelve modular units is intended to take four hours of class time (4 SWS) and focuses
on core areas in business and economics. Particular emphasis has been placed on choosing issues
which reflect the ‘big picture’ and help activate your own knowledge of the topic. Careful analysis of
the lexis central to each topic has made it possible to select the most frequently occurring and
useful vocabulary.

One of the cornerstones of Career Express is the conviction that students need to assume
responsibility for their own learning. The course has been devised in accordance with the principle
that academic study is divided up between class time and self study. To make the best use of class
time, the units concentrate on teaching specialist business language through reading and listening
activities while also providing ample opportunity to use the new language in discussion, role-plays
and case studies.

Additional material on all of the topics. and skills addressed in class is available for extra practice
outside the classroom. Work on the activities in the Over to you section at your leisure. It contains
extra reading material, writing activities and tasks for guided web research. The research work done
outside of class can serve as a basis for class presentations. The online digital workbook in the
student Se/f Study offers the opportunity for independent practice in addition to class-based
lessons (see next page for details).

we Student Web material: Career Express Self Study Online page 3

In Career Express fluency is key. It is a vital skill not only in higher education but also in
professional life. This emphasis on natural language production has the added advantage of
enabling students to develop and reinforce their ability to work in a team of peers, an increasingly
important ‘soft skill’.

In short, Career Express provides abundant material for stimulating and realistic classroom
interaction and puts the student in the driver’s seat on the express journey from studies to future
career.

The authors

was born and raised in the U.S. and works as a senior university lecturer
has taught Business Studies at a of Business English. She has been
university for over twenty years. involved in designing her university’s
foreign language program.
What’s in a unit? Additional components

Appetizers to get you interested in a topic, activate your own Two CDs containing the entire Course Book audio material -
knowledge and make you want to find out more. more than two hours of realistic listening material.

Career Express Self Study Online

Relevant texts introduce you to the language of business and Use your enrolment key to log into your Career Express
provide a springboard for discussion.
Business English Se/f Study. Here you can find a wealth of
sama = additional interactive material to help you cope with your
= workload outside class:
=
Realistic listening scenarios expose you to a variety of native = ° =Vrk through the interactive exercises : in the digital
and non-native speaker accents and train core listening oo Workbook at your own pace to consolidate your language
comprehension skills. z skills for each unit of the Career Express Business
English B2 course. You can do a final assessment test
-
for each unit.
Business Skills | =
This section introduces you to the skills most needed in
business, such as taking part in meetings, using diplomacy :
at work, describing charts and presenting products.

Picking up on issues raised in the reading and listening

sections, this feature is an opportunity to share your ideas
using the relevant language. (Not in every unit.)

Role-play
(i e There are useful Templates to help you complete
Put yourself into the shoes of another and view a essential business tasks, such as writing resumés or
professional situation from a number of perspectives, all business letters.
while practicing functional language. (Not in every unit.) * All the class Listenings are available in a handy MP3

format to download.
Diversity e Watch the Video “An internship abroad” about business
student Rebecca doing an internship in the U.S. Each of
This unique feature gives you an insight into the impact that
culture has on business and business relationships. Bring in the four episodes - job interview, socializing and small
your own experience of different cultural backgrounds and talk, presentation, meeting - comes with a set of
ensure the future success of your professional endeavors. interactive exercises to practice what to do and what to
(Not in every unit.) say in these situations.

Company Case

These task-based case studies have been inspired by real

business scenarios. They require you to work in teams, find
strategic solutions to real-life problems and present these to : Turn to page 172
the class. to find your
enrolment key.
Useful expressions

Lists of important functional language to help you with

activities. These appear throughout the Course Book and in
the Useful expressions list at the back of the book.

rR IROOT sa
SaaS eal
 Unit 1 O Talking about career skills and Listening: Finding an internship
Applying for an personal qualities
internship Describing job responsibilities Reading: Recruiters’ pet peeves

=} 6
ae
Discussing working conditions and Reading: Best places to work
Unit 2
Work and p(ijay what’s essential in a job
Writing business emails and Listening: Talking about
responding appropriately professional life

page 16

Unit 3 Discussing and evaluating customer Reading: Customers’ complaints

Customer service service
Functions of politeness and Listening: LEARNing to listen
diplomacy

page 26

Unit 4 Describing types of retailers and their Reading: Discount food chains
Selling to the products
consumer Describing charts and analyzing Listening: The lowest prices
figures around

Discussing aspects of globalization Reading: Trouble with Trade

Globalization and Using the language of trade and
international trade transport Listening: The container
Complaining and apologizing revolution

page 44

Understanding and discussing Listening: Production and Its

Products and manufacturing processes management
production Talking about product specifications
Reading: Birth of the cool

page 54

Unit 7 Discussing marketing strategies Listening: Passing the buck

Marketing Giving clear and well-structured
communications presentations Reading: Alternative methods of
marketing

page 64

Unit 8 Discussing debts and credits using Listening: The debt trap
Debts, savings and the language of banking and finance
investments Considering different forms of Reading: Types of investments
investment

page 74

Unit 9 Describing and contrasting types of Listening: Spider and starfish

Company structure organizations organizations
Describing one’s position and role in
an organization Reading: The structure of
organizations

Unit 10 Using accounting terminology Reading: The Enron Story

Accounting ai %8 =e. i + Understanding financial statements
0 - Softening criticism Listening: The world after Enron

Unit 11 Talking about a country’s economy Reading: The BRIC countries

| Rapidly developing Using the basic terminology of
economies economics Listening: Tectonic shifts in the
global economy

Discussing entrepreneurship Listening: Setting up a business

Starting a business Understanding the organization of a
business plan Reading: The Corporate Fitness
Using legal terminology to describe Business Plan
company ownership
page 114

Files page 124 Audioscripts page 141 Aiphabetical wordlist page 157 Useful expressions page 166
 Self Study (selection)

Discussion Making your Applying for an internship A challenging The role of tenses in career talk | Grammar
resumé stand out * Drafting your resumé internship Action verbs for the job-hunt | Vocabulary
* Drafting a cover letter Talking about your achievements | Skills
Role-play: Selling yourself * Preparing for the interview Dealing with cultural shock
* Selling your USPs during internships abroad
Video 1 Interview

Discussion: What matters Professional emailing A clash of cultures Finding the other half: statements on work
ina job? * Sending the right message and pay |Vocabulary
* Getting the answer right Understanding culturally Formal and informal style in emails | Skills
Role-play: How to make ¢ Finding the right style determined differences in Forming questions: asking about working
good people stay motivation conditions | Grammar

Role-play: Complaining Telephoning Service desert? Customer service verbalized | Vocabulary

and apologizing ¢ Business to customer (B2C) Telephoning: anticipating the customer’s
¢ Improving your telephoning skills Deciding how to improve needs | Skills
* Evaluating telephone customer service Timewise: for - since - ago | Grammar
performance

Discussion: The future of Charts The right part of town Adverbs: Comparatively speaking |
retailing ¢ Understanding bar and pie charts Grammar
¢ Describing bar and pie charts Finding the right location for Frequently confused words: account for and
Role-play: Choosing the the right customers amount to | Vocabulary
right distribution channel Then and now: comparing pie charts | Skills

Discussion: Thinking Telephoning Children at risk Apologizing for a mistake or an

about globalization ¢ Business to business (B2B) inconvenience | Skills
¢ Making small talk Deciding how to best Using prepositions of time | Grammar
Role-play: Small talk or ¢ Saying the right thing protect the consumer Using the right verbs: from warehouse to
deep talk? without sacrificing profits customer | Vocabulary
Video 2 Socializing and small talk

Discussion: Can business Presentations Crossing borders Verbs used in production: be precise |
expertise of the 20" ¢ Presenting a product Vocabulary
century still be applied ¢ Describing a product Deciding on a new location The passive: talking about production
today? for production processes | Grammar
Describing a product: features and
specifications | Skills
Role-play: Bringing your Presentations Okobrause Quantifiers: some, a Jot of or hardly any
marketing knowledge into ¢ Opening and structuring marketing? | Grammar
play presentations Launching a product on a Collocations: running an advertising
¢ Reaching your audience new market campaign | Vocabulary
¢ Preparing slides Opening and closing a presentation | Skills
¢ Icebreakers Video 3 Presentation

Discussion: The banks’ Negotiating Finding the right Noun/verb collocations: increase your
interest ¢ Achieving a good deal partner overseas interest | Grammar
¢ The key stages Do you take your risk small, medium or
Role-play: Negotiate your ¢ Getting what you need What is sustainable banking? large? | Vocabulary
dream car Linking offers to conditions | Skills

Discussion: Talking about Meetings A marriage of Positions in company hierarchy |

organigrams ° Getting ready convenience Vocabulary
¢ Participating in meetings Get the verb right: say or te// | Grammar
Role-play: Committee ¢ Acting as the chair Making a cross-cultural Opening and closing a meeting | Skills
work at university merger work
Video 4 Meeting

Discussion: Corporate Talking about balance sheets A back office in India Accounting collocations | Vocabulary
fraud in accounting e Using the right terms What you own and what you owe: balance
Deciding on moving sheet terminology | Skills
Diplomacy
accounting offshore Conditionals: speculation, speculation |
¢ Breaking the bad news
Grammar

Role-play: Investor’s Describing trends A multinational’s Verbs and nouns of change with prepositions|
choice ¢ Describing and comparing strategic approach to Vocabulary
economic growth the Chinese market Mixed tenses in graph descriptions |
¢ Writing a graph description Grammar
Strategic management - Summarizing information from a graph |
taking the right decisions Skills

Discussion: Assessing the Executive summaries The pitfalls of Putting together the executive summary |
economic viability of a ¢ What are the key issues? franchising Skills
business idea Starting a business: legal vocabulary |
Using legal terminology Analyzing business models Vocabulary
¢ Describing a company’s legal and their legal implications Future tenses in a business plan | Grammar
structure
 Applying for an internship

Learning Focus Warm-up

e Talking about your education and
Have a look at the job advert below. Would you be interested in doing an internship
job experience
at American Fields? \f so, what makes it interesting for you?
¢ Presenting your skills, abilities
and achievements
¢ Writing a resumé
¢ Writing a cover letter
American Fields: internship opportunities
; i : =~ Wigs
Self Study g a Visit‘ouirwebsite = _ ma! Contact Amer

¢ The role of tenses in career talk American Fields’ internship program

¢ Using the right adjectives when American Fields is based in the U.S. and known worldwide for its innovative
marketing yourself food products. We’re looking for talented undergraduates from a wide
NY range of backgrounds who are interested in taking part in an international
¢ Talking about your achievements
internship program. Good English is a must. Preference will be given to
¢ Understanding
job adverts
applicants with a second foreign language, if possible Spanish.

Video Interview Your tasks would include

¢ analyzing market trends
Watch Rebecca Lorenz applying for
e identifying and evaluating business opportunities
an internship at Exhilarate, the New
¢ working in teams to develop plans for new products and new programs
York-based sports event agency. Will
Our internships are full-time, paid positions. You would be working in a young and
she win over Nan Robinson, the
energetic team. We can adjust start and end dates to academic schedules but you
charismatic boss?
must be prepared to commit yourself to at least two months of full-time work.

Email us your details to [email protected]

Listening: Finding an internship

1 How would you go about finding an internship? What has been your experience of
looking for an internship?

2 Match the terms on the left with their definitions on the right.

a a student’s main subject at college or university

_ transcript
eye b the payment for work performed
application
Cc a written request for sth such as a job
degree
d an outline of the main events in a person’s career development
Ww
pb major
p e the qualification that you get after completing your studies at
resume
university
compensation f
a university’s list of the courses a student has taken
3 Form collocations by matching each of the adjectives on the left with one of the
nouns on the right. One noun will be left over.

negotiable ean
customized skills
corporate letters
valuable office
deadlines

4 The student organization /nternational Student Network is hosting a panel

discussion on how to find your dream internship. Listen to the following people
describing their experiences and tick the correct boxes.

Marc Jennifer Marion Brian Simon

Found his/her internship online J

Found his/her internship through connections

Created his/her own internship

Was paid for the internship

Received no compensation for the internship

Speaker provides no information about pay

Talks about his/her job interview

5 Listen to the interviews with three of the speakers again and fill in the gaps.

Marc
1 I’m in accounting and so | began onanum ber of websites in that field.

2 | was about to give up my... when | found the perfect . It even

and included housing.

} | the application and was going to it

had on my computer.

Jennifer
4 | from Lake County Community College in May with a Office
Management.

5 One week later | found myself sitting in the at booksonline.com meeting

with Shirley — my

Marion
6 Then! to six of them, stressing my personal qualities - you
know,

7 | can only recommend using your own imagination and creativity. It is one way to get
around the and really

6 Listen to Brian and Simon talking about their experiences. What was stressful Samy
about the recruitment process they took part in?
Lilt

== Differences in U.S. and British English

7 Discuss the following questions:
American English British English
1 What motivates students to do an internship abroad?
@ resumé curriculum vitae (CV)
2 What are a company’s motives in employing interns?
* to graduate from high school to do your A-levels
¢ to go to college to go to university
* to do an internship to do a work placement
* cover letter covering letter
 Reading: Recruiters’ pet peeves

1 Imagine that you work as a recruiter in the Human Resources department of a

major company. Every day dozens of applications arrive on your desk. You must
‘make quick and efficient decisions. What criteria would you use?

2 Read the article and compare your criteria with those mentioned in the text.

Recruiters’ pet peeves

details of your experience that are most
relevant to each company.” For example,
45 a young woman applying to an online
travel organizer sent a brief application
Several thousand recruiters from a frustration. “Many applicants don’t seem
directing the reader to her own very
variety of industries across the U.S. and to be aware that their resumés will be
professional website. On the website she
Canada were recently interviewed in a read on computer screens,” said one
had documented her own recent trip to a
study made to determine why resumés 25 manager. Recruiters are also annoyed by
number of Asian countries along with her
get thrown into the “excluded” pile. information that is poorly organized or by
personal qualifications. A design student
Recruiters receive hundreds of personal information that is not relevant
applying to a famous fashion company
resumés a day and can often spend only to the job. They particularly want to know
enclosed photos of clothes she had
5-10 seconds on each. Understandably, what a candidate’s focus is and what his
created herself with her application. And
they want to narrow down the range of 30 or her achievements are. Applicants who __
then there is a story about a young man
applicants and the best strategy to do this do not meet these expectations should Pe
who desperately wanted to work for a
is through the process of elimination. The not be surprised if their application lands
famous IT company. He appeared in the
human resources professionals confessed in File 13.
office of the HR officer and said he was
that they look for reasons to exclude Many candidates seem to think they
prepared to wait until he could deliver his
resumés, not include them, and that 35 can use the same resumé for applying to
resumé to her in person. After six hours
resumés are generally excluded on the any job. One recruiter compares this to
he finally got an interview.
basis of the recruiters’ pet peeves. buying any old suit off the rack and then
Of course, unusual approaches should
There was a high degree of consensus rushing to church for your wedding.
always be used with discretion. The
as to what these pet peeves are. They “Candidates should tailor each resumé to
important thing is to make your
start with spelling errors, typos and poor 40 fit the job they’re applying for,” she says.
application stand out from the dozens or
20 grammar. Poor formatting was also “Every company and every position is
hundreds of others that the recruiter will
frequently named as a source of different, so you have to highlight the
be dealing with.

File 13 the trash can

Discussion: Making your resumé stand out
In view of the fact that there is so much competition on the job market, what can
you do to prevent your resumé landing in File 13?

The manager of an advertising

Apart from the traditional cover letter and resumé, what other media can be used
agency * A bank manager « A fast
to apply for a job?
food chain looking for a franchisee *
An NGO looking for a PR director
What would the people listed in the box on the left expect from a promising
candidate’s application?
 Business Skills

Applications: Drafting your resumé

|@ Resume writing
1 You have already heard Simon talking about his internship. Read his resumé below.
Has he followed the criteria mentioned so far? Skills

_—
SIMON MUCHAEL HULL
PERSONAL Data Address: Email: [email protected] Date of Birth: February 10, 1986
Himmelgeister Str. 49 Phone: (0049) 211 634927 Nationality: | German
40225 Dusseldorf Mobile: (0049) 171 2516304
Germany

Seeking a marketing internship in a multinational company in the United States

EDUCATION
University of Applied Sciences Diisseldorf
* BA in Business Studies — Expected date of graduation: September 2011
* Current grade average: 1,7 (corresponds to A-)
* Degree Program Highlights: International Business Economics, Intercultural Management, General Business
Studies, Accounting and Taxation, Business Spanish, International Marketing, Regional Studies
Goethe Gymnasium, Diisseldorf (secondary school) — Graduated in May 2005
Kalamazoo, Michigan — High school year, awarded a high school diploma in 2003
TRAINING
Mihlenfeld GmbH 2006-2008
Two-year training program at a major paper manufacturer
* Gained experience in the following departments: Purchasing, Personnel, Marketing, Production, Accounting
* Certificate Industrial Business Management Assistant (Industriekaufmann)
Henkel GmbH Summer 2009
Internship in the Marketing department
* Carried out customer survey by phone, collected and processed data

ThyssenKrupp GmbH February—June 2010

Temporary Job in the Purchasing department
¢ Assisted the IT officer in setting up new supplier database, checking and updating customer databases
OTHER EXPERIENCE
President of student organization in the Business Studies department 2009 to present
Represent students in faculty meetings and advise first semester students during Orientation Week activities
Student assistant to Dr Herbert Schmidt, Professor for Accounting 2008 to present
Hold tutorial sessions and assist with research

Community service as paramedic (alternative to military service) 2005-2006

Drove an ambulance, assisted doctors and worked in a hospital
Counselor at Stony Ridge Summer Camp, Indian Bay, Michigan July— August 2004
Taught tennis and swimming and worked as a cabin leader for the age group 10-12
SPECIAL SKILLS
¢ Near-native proficiency in English (CEF C1)
* Good knowledge of Spanish (CEF Br)
* Basic knowledge of French (CEF A1)
¢ Proficient in Word, Excel, PowerPoint
INTERESTS
American football — Played for four years on local team 2000-2004
Saxophone — Have played the saxophone since I was ten, played in university big
band for two years
References available upon request

Skim Simon’s resumé again. Does he have any special skills or job experience
which can be used as his unique selling proposition (USP)?
In what way do you think his skills and experience would be valuable for American
Fields, the company which has offered him an internship?
 Applying tor an
internship

Business Skills

|@ Word partnerships with action 3 When writing or talking about your job experience, it is important to use action verbs,
verbs for the job hunt because they show the employer which skills and abilities you bring to the workplace.
Vocabularv Form collocations by matching each set of action verbs on the left with a noun on the
right. Sometimes there is more than one possibility.

Action verbs Nouns Collocations

carry out
deal with | participate in Aecision-making
a plan
take care of E ;
campaigns
handle
customers
analyze
; a database
compile ;
; day-to-day office work
implement Ee ;
; decision-making
improve '
machinery
manage
presentations
operate
i: reports
participate in
research
prepare ae
statistics
research
set up

4 Now think of your own work experience and write at least five sentences describing the
jobs and assignments you were responsible for during your training program or
Writing a resumé
internships.
wp Over to you, page 15
 Business Skills

Applications: Drafting a cover letter |G Understanding job adverts

1 This is Simon’s letter of application to American Fields. He tried to adapt it to the Readina
internship which was advertised on the company’s internet site. Read the advertisement
on page 6. In his letter did Simon refer to all the points in the advert?

Simon Michael Hull

Himmelgeister Str. 49
40225 Dusseldorf
Germany
[email protected]

Mr Rodney Smith
American Fields
1000 Minnehaha Drive
Minneapolis, Minnesota
55039
USA
April 15, 2010

Dear Mr Smith:

A
I would like to apply for the position of intern as advertised on your website. I believe that my
background, training, work experience and education have prepared me for this job.

B
I have always been interested in the food market and especially in the market for organic foods.
As you probably know, Germany has one of the largest markets for organic foods in the world
and as my parents have been running an organic supermarket for the last ten years, I have a good
knowledge of the natural foods business. I am certain that this knowledge could benefit American
Fields. In addition to that, I am a very conscientious worker. My organizational skills would be an
asset to your company. Thanks to an extended stay in the U.S., my English is fluent and I also speak
good Spanish.

Cc a)
During my two-year training period at Mihlenfeld, a paper manufacturer, I was able to familiarize
myself with the various departments of a company. This experience convinced me that I would
like to pursue a full-time career in business, if possible in the food sector, after graduating from
university.

ae Ae ae BS CBRN
he TT
Se WEES cae ps, > Ok wre gee

a
rs,
5-0. “uA
py tae
4 2
I am enclosing my resumé and I would be happy to provide references upon §B tile
yt f
request. i

I can be reached by phone at (0049) 211 634927 or on my mobile at

(0049) 171 2516304. I look forward to hearing from you.

Thank you for your attention.

Sincerely,

Simon Michael Hull

Simon Michael Hull

Encl.
 Applying for an
internship

Business Skills

|@ PISA Sal aaa 2 A letter of application can be divided into four main sections. Read Simon’s letter
Skills on page 11 again and label each section with one of the following functions:

e background
¢ USP (= unique selling proposition) or what makes him special
e further steps
e reference and reason for application

3 Applying successfully for a job or internship is all about selling yourself. Using
meaningful adjectives helps you to emphasize your strengths. Here is a list of
adjectives which are frequently used in applications. Sort them into the grid.

How to say that Adjectives

active * adaptable * ambitious ¢ eee
ee you have objectives
analytical * conscientious ¢
communicative * creative ¢ critical you are good at what you do
decisive * determined * dynamic *
; you are good with people
flexible * good with numbers
innovative * inspiring * methodical ¢ you like getting things done
motivated ¢ reliable * well-organized ‘ :
is you think outside the box

4 If you were to apply for an internship at American Fields, which strengths would
you mention in your cover letter?

Choose five of your strongest personal qualities and skills. Then think of a situation in which
- you showed each of these strengths. Describe each situation in a sentence.
Writinga cover letter
> Over to you, page 15 Share this with a partner. Explain why you think the situations you described show a special
strength of yours.

Role-play: Selling yourself

You have five minutes to present yourself as if you were going to apply with a
video. Include what you have done and achieved so far in terms of education,
training and work experience. Act this out in pairs or groups of three.

EE Presenting yourself

graduated from ... in ...

did a training program at ...
received a certificate in ...
gained a lot of hands-on experience
during my ...
havesattended lectures in ...
am majoring in ...
expect to receive my degree in...
Sabine was an International Business Studies major
who was required to do an internship abroad as part
of her degree. When her fellow students began to
apply for jobs in the U.S. and Canada, she hit upon
what she considered a unique idea. Why shouldn’t she
look for an internship in India?
On www. internshipsinindia.org Sabine found a
start-up tour operator in Chennai targeting foreign
business travelers. They were looking for an intern to
research the travel needs and behavior of Europeans
in India and generally help with marketing to this
group. The internship even paid a salary that was very
generous by Indian standards. Sabine applied and was
accepted immediately.
In June she flew to Chennai and was greeted by Mr
and Mrs Shembekar, the owners of the company. She
discovered that they had arranged for comfortable
accommodation for her in their own neighborhood.
After a couple of days to acclimatize, she began work
and was greeted warmly by her new colleagues. The
work was interesting and she was praised by the
Shembekars for her contributions.
During the first two weeks Sabine was exhilarated by
the sights and sounds of the city and life in this exotic
culture. She was usually surrounded by people,
especially by the Shembekars and their extended
family, so she did not feel lonely. In the third week she
realized that her mood had changed dramatically. The
heat was getting to her and she had begun to long for
Western food. Soon after she began suffering from
insomnia. The sight of beggars in the streets depressed
her no end and even at work she had inexplicable
crying jags. It became more and more difficult for her
to function and she was seriously considering calling
the whole thing off and going home.
 Research yourself: SWOT analysis
1 A personal SWOT analysis is a powerful technique to identify your skills, talents
and abilities. Knowing this makes your job search more focused and successful.
SWOT stands for Strengths, Weaknesses, Opportunities and Threats.

Take a large piece of paper, divide the paper into four quadrants and label each
area like the page below. Then look at each area and consider the questions.

Weaknesses*
Strengths*
lop or
What skills do you need to deve
What can you do especially well?
improve?
What do other people consider your
What do other people consider your
strengths?
weaknesses?

oe wovk experience o lack of wovk experience

o education
o education: Low mavks,
e stvon technical wrong major
knowleage o weak technical
o specific skills knowleage
e personal eo skill Aeficit
chavactevistics o negative personal
characteristics

Threats**
Opportunities **
a
What current trends could put you at
What current trends could be to your
disadvantage?
advantage?
What is your competition doing?
What skills do you have that your
competition lacks?
o negative trends
o positive trends in your o competitovs
Fela *
Strengths and weaknesses form an
o networks innate part of who you are and your
characteristics. They are within your
control.
** Opportunities and threats are
normally external and beyond your
control. Opportunities refer to con-
ditions which couldbe helpful to
achieving your objective. Threats refer
to conditions which can negé SC itively

impact your objective.

2 What to say when asked about your weaknesses in a job interview? On page 15
you will find an excerpt from a book called Best Answers to the 100 Most FAQs in
Job Interviews. Study the excerpt, then look at your SWOT analysis again and note
ideas about how you could deal with your potential weaknesses in a job interview
Practice presenting yourself with another student.
 What do employers want to hear when asking “What are your weaknesses?”

So So don’t tell them that you have had severe difficulties with your
g S spelling since second grade at school because it shows that this
ae a question isthrown at you? weakness of yours cannot be corrected.
ness which cannot easily be corrected? Tell them instead about a weakness you are working at overcoming,
kness whic would have a truly negative e.g. that you have difficulties with speaking in public but that you
erformance in the job? _ have attended several presentation seminars which have helped to
improve your confidence.
What employers react to most positively is when you are honest about a minor weakness which you have been able to turn into
something positive. So for example you could tell them that your desk sometimes becomes quite disorganized but now you force
yourself to tidy it up in the evening so that everything is organized when you start again the next morning.

Web research: Job opportunities on the net

Think about an area you would like to work in as an intern abroad or a foreign
company you are interested in. Then get on the internet and search for a suitable
position. Print out the job description and bring it to the next session.

Writing: Drafting your resume

After you have found a suitable offer for an internship on the internet, write your own
resumé in English. Make sure that all the points listed are relevant for the job. Also
take the issues discussed in the unit regarding a good resumé into consideration.

Below you will find a list of selected action verbs. Try to integrate as many as possible
when drafting your resumé.

accomplish consolidate evaluate network shape

achieve consult form observe simplify
advise co-ordinate found organize solve
analyze correct generate perform streamline
arrange correspond guide plan strengthen
attain create identify prepare structure
be responsible for design improve present succeed
build develop increase promote suggest
calculate discover introduce realize support
collect distribute launch redesign teach
combine double lecture report train
complete draw up manage research
compose edit maintain schedule
condense establish negotiate set up

Bring your resumé to the next class for feedback.

Writing: Composing a cover letter

Now write the accompanying cover letter. Make sure that you refer to all the
requirements listed in the job advert. Make sure you use at least five action words
from the list above. Bring your cover letter to the next class for feedback.
 Wo r k a n d p ( a y
Learning Focus Warm-up
¢ Describing your job and working
What are you looking for in your future job? Rank the following in order of
conditions
importance for you.
e Talking about benefits at work
¢ Writing business emails and
job security
responding appropriately
opportunities for promotion

Self Study a stimulating workplace environment

¢ Writing an email to reschedule a flexible working schedule

a meeting
a high salary
¢ Agreeing and disagreeing
¢ Recognizing paraphrased ideas a good work-life balance

an opportunity to work internationally

the reputation of the company

fringe benefits

Explain your ranking to your fellow students.

Reading: Best places to work

1 Google is considered to be a very desirable employer. What have you heard about
working conditions at this company? Before looking at the article on page 17, jot
down a few benefits that you would expect to find there.

2 Scan the first part of the article to line 39 to see if Google in fact offers these
benefits. Which benefits did you find that you had not expected?

3 Now read the article to the end. Which of the following perks are mentioned at the
company Boston Consulting Group?
true false
Employees can choose the clients they want to work with.
The company offers courses in professional development.
Workers who are pursuing a university degree receive help with fees.
An employee’s husband or wife is insured along with the employee.
WDrnN
ar
= Thecompany provides a kindergarten for its workers’ children.
 Where work meets play
Playful perks propel Google to top of out list of best small companies -
Fortune’s 100 best places to work employees enjoy setting their own
career paths, said Kermit King, a
SAN FRANCISCO Does this sound like 45 Chicago-based partner at the Boston
your workplace: On-site pool, 11 firm, which employs about 1,500
gourmet restaurants, pool table and people in the U.S.
climbing wall, plus unlimited sick leave, “Consultants are largely free to
five weeks’ paid time off after a year on choose from a variety of industries or
the job, $8,000 in tuition reimbursement topical problems and to determine the
and classes in foreign languages? shape and trajectory of their career
It’s a safe bet only Google Inc. and the types of work that they work
employees would answer that question on over time,” King said.
in the affirmative. That helps explain But workers aren’t without help in
why Google catapulted to the top of 5 forging that path: BCG spends time
ona

Fortune’s list of “The 100 best and money on employees’ professional

companies to work for” in the company’s development. The company has career “Companies learn from this list. The
first year as an entrant. development counselors on their staff, people at Google have said that when
Google’s perks “are quite amazing, King said. Plus, some workers have an they started their company they wanted
but also what really pushed them over 60 “office sponsor who has an utterly non- 85 to make it a great place. And”, he said,
the top was the enthusiasm of evaluative role and who is there solely “if you look at, for example, the benefits
20 employees who work there - they just as a mentor, sounding board, and and programs at the accounting
love working there,” said Milton confidante.” companies, you'll see they’re very
Moskowitz, a New York-based writer and Also, the company offers classes in similar. If one’s going to give six weeks
co-author of the list with Robert 65 communication skills, as well as 9 =} of fully paid paternity leave, pretty soon
Levering. Levering is a co-founder of the technical training. “You really end up you'll see all of them are doing that.”
25 Great Place to Work Institute, which with a generalist education in business,” That’s just what has happened with the
surveys the employees and compiles the King said, all “while being well-paid.” [...] accounting firms on the list, he said.
list for Fortune. BCG employees also enjoy 12 paid One trend seen at many of the
At Google, “fun things go on there 70 weeks of maternity leave (for regular 95 worker-friendly companies on the list:
that don’t go on at other companies,” part-time workers, too, and mothers ongoing efforts to offer flexible work
30 Moskowitz said. “You can come to work who adopt), full benefits to spouses and schedules, Moskowitz said.
in your pajamas. Some come in tuxedos, domestic partners, and emergency child “There are a lot more flexible work
just as a contrast to the pajamas. They care, free to workers in most U.S. arrangements that are being tried out in
have all these games going on there,” he ~ or locations. 100 many companies,” he said. Employees
said. might opt to work six hours on two
News of Google’s workplace perks will Your company next? days, or take a Friday off, he said. “They
no doubt pump higher the some 1,300 Maybe your company isn’t on the list. customize the program to try to make it
resumés the company receives each day The good news is some companies who easy for employees to deal with their
on average, but it’s not the only firm don’t make the list use it as a 105 lives.” [...]
that’s likely to see a rise in applications. 80 springboard for changing policies, adapted from MarketWatch Inc.
40 At Boston Consulting Group — No. 8 on Moskowitz said.
the overa!l list and No. 1 on the break-

4 Read the article a second time and make a list of all the benefits you have found.

5 Find expressions in the text meaning the following:

¢ to reply to a question with yes

¢ the form one’s professional life will take
¢ aperson responsible for young employees who willjigienttooie pene
¢ firms not included in the ranking
e the person to whom you are married
¢ to adapt the work schedule to an employee’s an cel fee

Discussion: What matters in a job?

|@ A nice place to work
Of the benefits you have listed above, which of these are standard benefits in a
company? Which are unusual? Would you say that these unusual benefits really
Vocabularv
enhance an employee’s working life or are they just window dressing?

2 Which benefits will be important for you when you look for your first job after
graduation? Make a list of must-haves.

3 Why do you think a company like Google offers such generous benefits?
2] Work and p(ay ee
wes
Sas ese fe fn

Listening: Talking about professional life

1 You are going to hear a radio program called Career Rap, which features young people
just starting professional life. Before you listen, please fill in the gaps with an
appropriate form of the words on the left.
compensation ¢ dismissal °
expense account * probationary period 1 His failure to come to work on time was the reason for his
redundancy * remediation ¢ retirement
2 His plans for include buying a yacht and sailing around the world.

3 | have an of $20,000 a year and spend most of it on entertaining clients.

4 If the company outsources its production to Southeast Asia, there are sure to be a lot of

lf your employer is not satisfied with your work during your , You won't be

given a permanent contract.

The workers who had been laid off were offered some financial

Modern technology has provided solutions for the speedy of contaminated

industrial sites.

2 Now match the following expressions on the left with their definitions on the right.

1 to troubleshoot a_ to occur unexpectedly

2 to hit the jackpot b_ to play various roles

3 to happen out of the blue cto provide expert help in a crisis

4 to wear a lot of different hats d_ to be very lucky

"9g )) 3 The following interview with a young woman named Joanna Harris took place on the
radio breakfast show Career Rap. Listen to it and decide whether the statements below
are true or false.

true false

Joanna began working for the prestigious consultancy immediately after leaving university.
Joanna’s job at the big consultancy was a very stressful one.
Her first employer didn’t offer any perks.
Joanna was laid off because the company was dissatisfied with her work.
Joanna is paid by the environmental consultancy as well as by her first employer.
In general, she is satisfied with the working conditions at the new company.
—
WDND
Of
NGO She is thinking of setting up her own business.
4 Listen to the second part of the interview again and answer the following eg ))
questions:

1 What are Joanna’s responsibilities at the environmental consultancy?

2 What kind of work is done at the environmental consultancy?
3 Joanna claims that “the environmental consultancy business is a growth market”. Can |@ Se eae
you think of any reasons why this might be the case?
Skills

Role-play: How to make good

people stay
Get into pairs and read your role cards. Suggest ideas and try to
negotiate the best model to encourage good people to stay with your
company. Agree on a package that would have the desired effect and
still be economically feasible.

we Student Apage 124

Situation: A few years ago you and your partner started A//Rounders, a company
which manufactures sports goods for outdoor enthusiasts.
At present A//Rounders is in a crisis, due to its high staff turnover.
You want to be able to attract talented staff and you know that such people are
: : Suggesting and discussing
difficult to keep. It is clear that there should be some changes made in the EB a a 4
company’s HR policies, but you and your partner advocate different approaches. ¢ Why don’t we ...?
Read your role cards and suggest your ideas. Feel free to suggest other benefits, ¢ Wouldn’t it be better if we ...?
as well. ° Well, | think we can both agree on...
e | don’t think | can go along with that. NEA
RSE
ANNAN
SERNA
SES
RONSO
TN

¢ How might this work?

a You are a passionate surfer and mountain climber who dropped out of college
pe) ¢ Can we leave it here, then?
to start the company.
®
xe)
J
You want to offer bright, young graduates two months’ paid leave to work on
y
Y) environmental projects or participate in expeditions in which they would try ScS
SSS
EN
eRe
ET
EE

out the company products. You also want to subsidize employees who are
working on a master’s degree. You are convinced that these measures will
have the desired effect without straining the company’s finances too much.

IORI
RES
LESSEE
SEYLER
SINE
SO
 | Business Skills |

Email writing: Sending the right message

1 Which of the following forms of communication do you prefer? When and why?

face-to-face conversations | telephone conversations | postal correspondence |

emails | text messages

2 What kind of mistakes do you think business people often make when writing
emails? Do they matter?

3 Read email A and discuss the function of the highlighted parts. Then have a look at
the other emails and highlight other functional phrases.

From: Roy Ellis, Mercatus Property Development From: Jill Masters, Engin Redevelopers & Sons
To: Joanna Harris, Environ Consultants To: Joanna Harris, Environ Consultants
Subject: (Chemicals)
Factory site, Southfield — Subject: Your tender for Swansea Harbor project

Dear Ms Harris,
Hello Joanna, With reference to your tender for the remediation project
You"lbe"Gladiteear
that I’ve finally succeeded in getting of the former Swansea Harbor Basin, we are very pleased
hold of the environmental officer at Brunswick Council. to inform you that you and two other consultancies have
His name is Cecil Summer and he’s agreed to arrange a been short-listed.
visit to the former chemicals factory site, which as you For this reason we would like to invite you to a
know, is going to be the site of our housing project. presentation in which you will have the opportunity to
outline a detailed remediation strategy for the
How about meeting inhis office on 25 September at 9 redevelopment of the site in question.
[S’AIGEK? Then we'll drive out to the site, where we'll also We would like to suggest Monday, 21 September for the
meet some representatives from Southfield. meeting, which will take place at our office.
Please contact us as soon as possible to confirm this date.
{NFealize)
this is!Short notice, but it’s very important that
your consultancy should be present. Please let me know if We are looking forward to hearing from you.
this date is convenient for you.
Yours sincerely

‘Hope tohear from you soon. MBSE

Roy From: Bill Bowden, Environ Consultants

To: Joanna Harris, Environ Consultants
: Subject: Portreath site

From: David Billing iC

Joanna,
To: Environ Consultants
I’m just proofreading the report on the Portreath site
Subject: Enquiry
which has to be handed in by 21 Sep. - that's in a week!
What I think is missing is a reference to relevant
Dear Sir or Madam,
European directives on brownfield sites.
I am a second-year geology student at Southfield
Oh, by the way, how was your trip to Paris?
University. As part of my course I am required to do a
Lots of shopping and eating good food, I bet!
two-month work placement. Since I am very interested
Well, I don’t want to hear about it.
in environmental consultancy, I’m writing to enquire
Anyway, can you do some research to find the ones
about the possibility of doing a placement with you. I
relevant to our case and send them to me ASAP? I’m
would be available full-time from mid-June. Please find
attaching the report for reference.
all the relevant details in my attached CV.
Thanks a lot. :
Thank you very much for your consideration. brownfield sites 1. an area of land
I am looking forward to hearing from you. Cheers in a city that was used by industry
Bill or for offices in the past and that
Yours faithfully may now be cleared for new
David Billing
building development
_ - - ~
> SAS,
= .

20
 ‘Business Skills

4 Which of the emails is: |G Writing an email to reschedule

: ; a meeting
an enquiry | a request for action | an arrangement of an appointment | an attempt to inform Skills

5 Essentials of good email writing - discuss the following:

Which of the emails has a clear structure? When is it important to have a clearly
structured email? What is the relationship between each writer and Joanna?

6 Find expressions in the four emails to complete the grid.

Formal style Informal style

Greeting

Opening/References With vefevence to ,..

Request

Enquiry

Arrangements How about meeting ...

Attachments

Giving good news We ave happy to tell you

that ,..

Polite ending | aw looking forwavaA to

heaving from you soon.

Closing

Email writing: Getting the answer right

Read the replies Joanna wrote to the emails. Which replies don’t correspond in
style to the email received? Can you think of any reasons for the change in styles?
Find more expressions to add to the grid.

From: Joanna Harris, Environ Consultants From: Joanna Harris, Environ Consultants
To: . Bill Bowden, Environ Consultants To: Roy Ellis, Mercatus Property Development

Dear Bill, Hello Roy,

Thank you very much for your email. I’m glad that we were finally able to get an
I don’t want to sound unhelpful but I also have a appointment.
deadline to meet, which is actually on the same day as I'll be there at 9 o’clock.
yours.
The webpage www.environment-agency.gov.uk has Looking forward to seeing you
direct links to the European directives. Joanna
I hope that this information will prove useful.
Joanna
 Business Skills

From: Environ Consultants From: Joanna Harris, Environ Consultants

To: David Billing To: Jill Masters, Engin Redevelopers & Sons

&

Dear David, Dear Ms Masters,

Thank you very much for your application. We were delighted to learn that we have been shortlisted
We are happy to tell you that we found your research for the Swansea Harbor project.
experience quite impressive and would like to invite Monday, 21 September fits perfectly into our schedule.
you to an interview during the first week of April. Please let me know how much time will be available for
Please call our secretary Erica Jansen to arrange a our presentation.
date. We would also appreciate it if you could send us an
agenda and instructions for reaching your office.
Best regards We are looking forward to the meeting.
Joanna Harris Yours sincerely
Joanna Harris

Writing: Finding the right style

|G Formal and informal style in emails Choose one of the following writing tasks and afterwards swap your email with
somebody who did the other task. Discuss whether the tone, style and content are
Skills appropriate.

1 Joanna has given you the job of answering the following email. Take everything you
know about the consultancy into consideration.

From: David Billing

To: Joanna Harris, Environ Consultants
Subject: Internship in London in June

Dear Joanna,
Thank you for the positive reply regarding an internship at your consultancy.
I am very much looking forward to working with you.
Could you please let me know when the internship would begin so that I can
start looking for suitable accommodation in London? Would you also, by any
chance, have information on where I could find assistance in this regard?
I look forward to hearing from you.

Yours sincerely
David Billing

2 Imagine you are HR Manager at Google. You have just received the following email
from a prospective intern. Write an appropriate answer.

From: Christopher Franklin

To: John Swift, HR Manager
Subject: Internship sales department

B
Student
Dear John,
Thank you for your email. I am delighted at this opportunity of doing an
internship with you. However, I’m afraid I won’t be able to work for the entire
six months as proposed by you since my semester begins on 15 February.
Would it be possible to cut short my internship by one month? I was also
wondering if you offer any internship compensation for my basic expenses.
I’m looking forward to your answer.

Yours sincerely
Christopher
22
 American Computers Corp. had operated a successful
pay-by-performance scheme in its domestic plants for
the previous two years.
The production facility was proud of its self-
managed teams, who were remunerated according to
a team-based pay scheme with three levels of
compensation. The majority of teams usually hit level
2 or 3, which was quite outstanding. Although over
the period of its use the pay scheme had required a
lot of readjustment, overall output coupled with
quality had increased.
Headquarters therefore decided to introduce this
system in the company’s plant in South Korea, which
was run by an American management team. So far the
teams in production had received a fixed amount of
pay, which was very low by American standards. The
company hoped that the new system would motivate
the workers to work faster and harder, thus increasing
the plant’s productivity.
The new pay system was explained to all the
workers in detail and no complaints or concerns were
voiced. Shortly after the introduction, problems
began. The base pay hadn’t changed but none of the
teams reached level 2 or 3. A couple of months later,
A clash of cultures most of the teams weren’t even meeting level 1 SARA
asst
acensauRi

anymore.
Talks with the foremen didn’t really provide any
What had gone wrong? Why did the pay-by-
insights, so management decided to watch the teams
performance scheme, which had been working
during their work. This revealed a very interesting
so well in the company’s home country, not work
phenomenon: the formerly high-performance teams
in the Korean factory?
had adjusted their work pace to the teams with the
lowest performance. As a result, management started
Discuss this case in your group. In thinking to monitor the workers whom they expected would not
about the case, you might consider the following be able to meet a faster pace of production, signaling
- questions: to the staff that those whose performance didn’t
¢ What do you know about American culture? improve would be dismissed. This resulted in an
¢ What do you know about East Asian culture? uproar: workers threatened to hand in their notice.
: ¢ What false assumptions might the American The American management was flabbergasted. They
| management have made? returned to the old pay scheme as quickly as possible
Why did the workplace atmosphere not because production threatened to come to a halt.
improve when management returned to the Nevertheless the work atmosphere had deteriorated
old scheme? sharply and within the next six months half the
If you were a manager, how would you have workforce left the company.
dealt with this situation?

Present your observations to the class.

 Reading: The blue-eyed salaryman
In the book The Blue-Eyed Salaryman, Niall Murtagh writes
about his experiences in a Japanese company. Read the
following extract, which describes the author’s first day
at work.

A security guard looks on, dressed in a navy blue uniform, the red
three-diamond Mitsubishi logo on his peaked cap. He stands with his
legs apart, his hands behind his back like an army officer, looking at
each face passing through the gate. Army vibes already. If this
continues, I’ll soon be a deserter. Deserters won't be shot.

The security guard shouts good morning at each face because it’s
official company etiquette to greet your colleagues enthusiastically in
the morning, although many people don’t say anything, they’re not
in the mood and those who do merely grumble because it’s hard to
10 be enthusiastic early in the morning after commuting from the outer
suburbs of Tokyo or Yokohama with twelve hours of work ahead.

The few trees near the entrance give way to corrugated-steel-walled

factory buildings on one side of the company road. On the other
Joanna is supervising David, the new intern in the
there’s a small Shinto shrine to keep the manufacturing gods on our
consultancy. She has noticed that he tends to be a bit
side. Next to the gods’ little home is my building, a new office block.
direct when writing emails. Below are some sentences that
The receptionist tells me to go to Personnel, where they give me
Joanna would like to see softened. Express them using a
booklets about the company history, rules, benefits and employee
more diplomatic and formal style.
obligations. They give me a company jacket and a cloth cap with the
1 You don’t have the qualifications to work in our consultancy. three-diamond logo. What’s the cap for?

20 Kawaii-san is in charge of kitting out new recruits. She says it is a

safety cap because you never know how or where you might bump
2 I’m too busy to help you with your project.
your head. Then she adds that if you’re not working in the factories
you don’t have to wear it.

3 Did you notice that the figures in your report are all wrong? I tell her I don’t think I’ll wear it too often. I'll be careful not to bump
25 my head.

But you must wear the ID badge at all times. And at no time should
4 Ms Clark wants to meet you next Friday at 12 o’clock in
you walk around with your hands in your pockets.
her office.
What’s wrong with walking around with my hands in my pockets?
There must be a reason, but I'd better go easy on the questions
5 We decided to call off the meeting. 30 for now.

She brings me to the photo studio. The photographer gives me a

blank number plate and helps me pick out the digits of my personal
6 Yippee, the new project has really taken off.
man-number, even for the women. He arranges my man-number on
the plate and tells me to hold it up in front of my chest.

7 Does the time suit you? Up a little higher please, otherwise your man-number won't show.
Look straight ahead. Try not to look so serious. It’s not a prison,
you know.

He takes my mug shot with the man-number for the company files
and I go back to Personnel with Kawaii-san.

24
 8 a place where you can do a master’s degree or a PhD
40 Please introduce yourself with a little speech, she says. All the new
employees do it.

The busy Personnel people look up from their desks and stop 9 material, substance (also: a set of unspecified objects)
working a moment or two. | stand up straight, look at the desk in
front of me because no eye contact is necessary yet, and say
50 something - my name, where I’m from, what else? An apology.
3 Answer the following questions in writing.
Apologies always go down well. It doesn’t matter what the apology is
about, anything will do. Please forgive my poor Japanese. Please 1 In what ways is the company described in the extract different
correct my mistakes. An apology breaks the ice. He can’t be that bad from a company in your country?
if he starts off with an apology. Almost like one of us. My speech 2 What do you find out about the narrator?
55 continues - what I did before arriving in the company, how I studied 3 What do you find out about the company’s employees?
hard in graduate school and got my degree like any new recruit. I
don’t mention my career as an accidental sailor and intercontinental 4 Below you find some statements about work culture in
hitchhiker, drifting whichever way the wind was blowing and ending Japan. Write the lines in the text which provide an
up here because the wind happened to be blowing east. illustration of each.

60 [continue my little speech by telling my new colleagues what they 1 Direct sustained eye contact is avoided in order to show
want to hear, how pleased I am to be joining the company and how | FESPOCE. ecccscnun
look forward to getting to know everyone, and have a lot to learn, 2 New employees are not expected to promote their
please teach me about company life, that’s all for now, thank you accomplishments and abilities, in order to avoid
very much. | finish with a nod that will have to do for a bow, uncomfortable situations with colleagues who might be less
65 everyone returns to work and I’m part of the organization already. Well QUAIIFIE”. cere
The right stuff. 3 Itis essential to demonstrate good MANNETS. occu.
4 Achieving harmony is more important than achieving good
adapted from Niall Murtagh, The Blue-Eyed Salaryman
Sal€S ANd POFItS. wee
5 The Japanese are family - and group-oriented. .........0.
oa Protocol, rank and status are of great importance. occ
2 Find the words in the text with a similar meaning to the
7 The Japanese are highly organized. ...0........
following:

1 the person who protects the company from theft

Web research: Benefits
Choose two internationally known companies - e.g.
2 to travel daily between your home and your place of work Starbucks, Nestlé, Proctor and Gamble, Citibank, Caterpillar
- and using the internet, research the benefits these
companies offer to attract employees.
3 a residential area situated outside a city
Company Position Pay package Other benefits

5 alittle pin a person wears to show who s/he is

6 the department concerned with hiring (and firing) employees

7 astatement in which you tell someone you are sorry for

something

ZS
 Customer service

Learning Focus Warm-up

¢ Identifying reasons for poor
Have a look at the definition of customer service and discuss the questions below.
customer service
¢ Telephoning: employing
the
principles of good customer
service (B2C)
¢ Evaluating telephone
performance

Self Study

¢ Frequently used nouns in

customer service
¢ Telephone phrases: saying the
right thing
e Using modals to form polite
questions

Have you or someone you know ever worked in a call center?

What are some potential problems a call center agent might have to deal with?
What problems might a customer face?

Think of a recent experience you have had with customer service. Was it good or bad?
Tell a partner about it.

Reading: Customers’ complaints

Replace the underlined words with an appropriate word form from the box.

1 Th € company made the customer pay more than the real value of the product.
2 According to the sales contract the customer had the right to take advantage of special offers.
refund * voucher * overcharge sb «
3 Although it was the customer’s fault that the product stopped working, he was able to get the
be entitled to * replacement
money back.
recoup sth * warranty
The usual guarantee for a product is six months.
T
ere are three different ways a company can compensate a customer for a mistake: offer a
piece of paper which can be exchanged for another product, provide the customer with another
product of the same kind or give the customer the money back in full.
26
2 Read the following consumer blogs, taken from a consumer group’s website. What do
you think caused the failure in customer service in each case? Try to create categories
for the different types of mistakes.

Donald’s Complaint Blog

Cell phone bill
January 30 by Donald
Comp-Blogs ee ee
A while back | found a new cell phone provider with what looked like Consumer Complaints & Research Website
a good package. Then | got my first month’s bill. They had Archives
August 2009
overcharged
g me byy $ $300! | h ad signed
i itli
a contract entitling me to the July 2009 Bad service at ElectroMart
so-called family plan with unlimited text but the company was June 2009
5 charging me for each text message! | had to dial the number of the May 2009 : ; ;
Customer Service department again and again before | could even March 2009 Last year my son and | wanted to surprise my husband with a new TV for his

get through. | once waited for 50 minutes to speak to a representative February 2009 birthday. We picked one out at ElectroMart, which we tried out in the store
who then disconnected me. | had to repeat my story at least 20 times November 2004 and seemed to work fine. At home my husband unpacked it, turned it on and
before | could even find somebody who was sympathetic. They finally Ceiecores it turned itself off again. We tried to switch iton again but the same thing
10 fixed the error but | could only recoup $200. Complaints 5 happened time and again. Finally, we took it back to the store. We were sent
Laws to the Customer Service department, where we had to wait ten minutes to
| : Office be helped. The ‘associate’ was talking to his girlfriend on the phone. When
Tags: Complaints, Office, Thoughts Thoughts he finally spoke to us, he was pretty rude. He said it needed a part and gave
Politics us a slip with the estimated completion date, three weeks later. When |
Weather 1 called the store on that date | got no response, so | went back there in
Cell nhone exnlosion
person. | finally found a rep who said the TV had to be sent back to the
manufacturer and | was supposed to come back in two weeks. Well, another
two weeks later | went back to the store and finally found someone helpful.
She said the TV had been under warranty and shouldn't have been returned
‘ eee 15 to the manufacturer in the first place. We should have been given a refund or
Cu Omer Services Com plai a replacement but now it was too late. | asked to see the manager, who told
: . os me to contact the ElectroMart Customer Service Center. Well, | finally got a
Home AboutUs Work & Services Contact Us nO 1 IIGONE yo refund and went to a competitor. What a hassle. We are never going to shop
at ElectroMart again.
Pepito’s Patio — poor dining experience Blog A
Tuesday, March 2 by TI Wea Posted by Wendy K. on 27 February |Filed in Complaints, Devices |Leave a Comment
Int
My family and | had been eating at the Pepito’s Patio chain for Business Blog
years because we really love Tex-Mex food. Then last month we Good Dinner
were visiting my mother in Peoria and | wanted to treat the whole Thoughts
family to dinner. OK, the restaurant was busy, but we had to wait
a an entire hour to place our order. When the food finally came, my
steak was burnt and my wife found a hair in her enchilada. Of the Customer
course we sent everything back and had to wait half an hour for MS eaieces Soe
the fresh order. | complained to the manager, who apologized Lei
and gave us a refund, but we were still pretty upset. Anyway, we anahenio Avehites
10 decided to give Pepito’s a second chance a week later in another Advertising
town. This time the food was so spicy that no one could eat it. Baggage delay — World Air Neadleniics
We sent the food back and then they told us that we just weren’t by Angry Traveler Business

been Oe MMe aureeecite |

SiC ete ues UNE ee A month ago I used my summer vacation to attend my cousin's wedding in oo
gave us a voucher for a meal at another Pepito’s Patio, but | can Warsaw. The World Air flight from Seattle to New York was taking off5 hours Google
15. promise you we won't be using it. late for reasons that were never made clear to us passengers. As a result, I missed Joursobens
my connection in New York and spent 16 hours in transit at JFK. Finally the Marketing
5 airline put me ona flight to London which connected to Warsaw. | arrived a
day after the wedding and without my bags, which had not been routed Categories
appropriately. Returning to Seattle from Warsaw, the plane was late once again, Consumer Advice
for no apparent reason. I missed my connection and the airline sent me to the Miscellaneous
Hilton, but at the hotel they said they didn’t have an agreement with World Resources
(0 Air. I had to argue for halfan hour on the phone with an airline representative, Service Based
3 Choose one of the consumer blogs and answer the who wanted me to return to the airport. I refused to move and finally got a Society
following questions: room. I got back to Seattle one day late for work. My boss was furious. Technology/Compu
I have written and phoned the airline a number of times asking for a refund
1 How should the company have acted in that particular case? but the airline claims that circumstances (i.e. the weather!) were out of their
15 control. Anybody with a similar experience?
2 How could customer service be improved?
3 Are there any ways in which the consumer could have
influenced the quality of customer service?

4. Think of a typical, bad experience with customer service you have had and write a blog
that could be posted on a consumer website.

27
 Customer service _

Listening: LEARNing to listen

°@ )) 1 The principles of good customer service can be practiced on the telephone, e.g. by
following the so-called LEARN concept - listen, empathize, apologize, react and notify.

Listen to the following telephone conversation between Frank Meier and the Customer
Service department of Street Wise, an American company. Does the agent observe the
LEARN concept?

mg y) 2 Now listen again and fill in the grid with the telephone phrases the customer service
agent and the customer use. Some have already been given.

Function Agent Customer

Starting a conversation

Stating the purpose of the call I've just been trying ...

Checking information Is the ...?

Apologizing I'm very sorry but ...

Showing empathy

Confirming information
|G Telephoning: anticipating the Spelling words
customer’s needs
Skills Saying that you didn’t understand

Assuring Don't worry.

Ending a conversation

3 Read the following email and role-play a telephone conversation according to the
instructions on your role card. Make sure you follow the LEARN concept.

From: [email protected]
To: Frank.Meier
Subject: Credit card verification

Dear Frank,
We are very happy to tell you that the verification of your Visa card went through without any problem.
Please use our telephone ordering service at 0800-959-8794 from 8 a.m. to 8 p.m. Monday through
Friday EST to place your order.

Sincerely,
StreetWise.com

Please do not respond to this email.

we Student
B page 133

You are a Customer Service agent for Street Wise. This is your first day at work, so you are especially careful
about checking and double-checking the customer details.

Product prices:
Student
A / still believe in Santa Claus, $17.99, number 118669361 (in stock)
Green stripe tee $16.99 reduced from $19.99, number 121213134 (in stock)
College Hero $19.99, number 128037307 (in stock)
Mr Messy $17.99, number 113577610 (currently out of stock)

Shipment conditions: By standard courier service = 3-4 days

Overnight delivery = extra charge $25

ie 4 Would you say that the LEARN concept could be useful for call center workers?
 Business Skills

Telephoning: Evaluating telephone

performance
1 You
HO are
eeeattendin ga training
toiini 8 semina
i ron customer pomice
i for young managers and
ollowing questionnaire, which is to serve as an aid in
evaluating telephone calls.

The eu leader has asked you to listen to three recorded telephone

conversations and evaluate each one, using the questions below.

Fill in the questionnaire below using the following rating system:

If the question doesn’t apply to this situation, write N.A. (not applicable).

5 = excellent
4 = good
3 = satisfactory
: 2 = bad
9 questions for evaluating 1 = terrible
customer service on the phone!

Conversation 1 Conversation 2 Conversation 5

gy» Kk» ?

Was the customer put through promptly

to the right person?

Does the representative give the customer

her/his undivided attention?

Does the person sound interested and

concerned?

Was the representative able to identify

the problem quickly?

Did s/he appear knowledgeable?

and
Did the person avoid technical jargon
ge the custom er could unders tand?
use langua

the
If the employee was unable to answer
s
customer’s request, did s/he offer option
or alternatives?

yee
If an error had been made, did the emplo
apologize?

behavior
Was the representative’s telephone
courteous and professional?

2 As part of your training seminar you have been asked to create a set of
guidelines that could be used to train new agents. Consider some of the good
practice from the previous exercise.

29
sy Customer service

Role-play: Complaining and apologizing

Role-play a telephone conversation between a frustrated customer of a health club and a Customer Service
agent. The agent should try to observe the LEARN concept and both parties should come to an agreement in
the end.

p> Student
B page 140

Customer
You are a member of Hercules Gym & Health Club. You signed a year’s contract for membership at Hercules and were told
by an employee that you could cancel at anytime. You have now moved to a town ten miles away and haven’t been to the
A gym in six months. You canceled the contract by email
Student and thought you had stopped paying fees, but Hercules is still
charging your credit card for use of the gym. You have just received a letter from Hercules’ lawyer saying you owe them
$300 and threatening you with legal action.
ra enbaneepoeagtn nec inprnota ER reene net renceREC CR Staor eras reetear etter itemseotance noctennetemnpecyncedneceentecces ssrceneeemnnce — - CRSP SELL BORO SESE EDEN EES OOSEERE

Diversity
Consumers’ refusal

The following table is from a study on customer satisfaction which shows the
percentage of people who changed service providers. What does the table tell
you about customer expectations in various countries?

Compare different countries. Why do consumers in some countries switch

their providers more easily than others?

In the past year, which of the following types of service providers, if any, have you
switched away from because of poor customer service?
Global Global India Canada U.S. China Australia| France Germany Brazil U.K.
2008 2007
Banks 51% 50% 56% 59% 59% 46% 54% 48% 50% 37% 46%
Internet service providers 39% 37% 37% 51% 43% 28% 48% 41% 28% 32% 39%
Retailers 37% 34% 27% 45% 44% 19% 40% 26% 31% 32% 44%
Cell phone 29% 23% 38% 33% 39 % 31% 23% 31% 31% 20% 19%
Home telephone 29 % 26% 33% 44% 31% 21% 36% 22% 33% 15% 28%
Cable/Satellite television 28% 26% 31% 42% 42% 11% 17% 13% 11% 24% 29%
Utility companies 27% 23% 29% 35% 33% 15% 28% 28% 15% 25% 24%
Hotels 24% 20% 27% 25% 24% 27% 26% 14% 24% 34% 22%
Airlines 22% 21% 33% 25% 18% 31% 33% 12% 20% 22% 20%
Life insurance providers 15% 12% 36% 21% 15% 14% 13% 12% 11% 11% 10%

30
C Jonas Lehmann, the son of a European business family
om pa ny Case which operates the department store chain Lehmann,
returned home two months ago after doing a Master
of Business Administration (MBA) in the U.S. Jonas’
father, whose own father had started the chain of 30
stores after WWII, was eager to see his son take his
place in the family business. After years in a foreign
culture and a first-class business education, Jonas
was prepared to see the family business with new
eyes. He decided to spend the first month visiting
stores in various towns to observe staff and so went
on a tour of all the Lehmann branches. What he saw
on site was sobering. Sales staff often ignored
customers, continuing conversations with each other
or on their cell phones. They often responded to
customers’ questions grudgingly or with indifference.
He was amazed to witness instances of outright
rudeness, as in a toy department, when a clerk
scolded a child for touching a doll’s house. In the
department for watch repair, customers picking up
their watches were greeted with “Can | see your
ticket?” Procedures for returning goods required
multiple signatures, which sent customers chasing
from one part of the store to another. In many
departments of many stores, he came away with the
impression that the customer was considered a
nuisance and that staff simply stood around waiting
for quitting time. What a contrast, he thought, to the
Service desert? customer-friendly business practices of the He
returned to the company headquarters determined to
turn around the customer service offered by the
Consider the questions below and then design chain’s 1,500 employees.
a package of measures which Lehmann could
' implement. Present these in class.

-@ How do you explain why customer service

was So poor?

¢ Why do people tolerate such poor customer

service?

How can the customer service in a chain with

1,500 employees be improved? How would an
improvement affect the business?
 Field research: Customer satisfaction Reading: Victory for voices over
Write down ten questions that could be asked to find out keystrokes
how satisfied customers are with the service they receive.
Read the following article and answer the questions on
Then conduct your survey, either in your class or in a public
page 33.
place - for example, outside the university cafeteria - and
HILLSBORO, Ore. — Megan Funk had been on the phone for 30
write a brief summary of the results.
minutes and had already untangled one billing knot, listened to a
woman insist that she had returned a Pilates DVD when it was clear
Email practice: Complaining and she had lost it and received one request to replace a cracked copy of
Hotel Rwanda.
apologizing politely
Ms Funk is one of 200 customer service representatives at the
Read your role card below and write an email to another Netflix call center here, 20 miles west of Portland, where she is on
student who for the sake of this exercise will work for the the front lines of the online movie rental company’s efforts to use
airline’s Customer Service department. customer service as a strategic weapon against Blockbuster’s similar
10 DVD-mailing service.
wp Student B page 33
Netflix set up shop here a year ago, shunning other lower-cost places
in the United States and overseas, because it thought that
Oregonians would present a friendlier voice to its customers. Then in
xt
~
Cc
July, Netflix took an unusual step for a web-based company: it
® eliminated email-based customer service inquiries. Now all
Oo
S|
pa] questions, complaints and suggestions go to the Hillsboro call center,
Y i
which is open 24 hours a day. The company’s toll-free number,
previously buried on the website, is now prominently displayed.

Netflix is bucking several trends in customer service. Booz Allen

20 Hamilton, a management consulting firm, and Duke University
studied 600 companies last year and found a continued increase not
Three weeks ago you booked a flight online to London with just in outsourcing, but also offshoring, in which call centers are
moved overseas.
a cheap airline called EasyFiight.
Because the email confirmation didn’t arrive and there was “T don’t think there’s any trend to pull back,” said Matt Mani, a
no record of your booking on the “My EasyFlight” page, senior associate at Booz Allen. “This is a unique strategy for Netflix.
you booked the flight online again. There’s so much more competition, this is something they’ve done to
This time all went smoothly but when your bank statement get closer to the customer, because without that, there’s really no
connection a customer has to Netflix.”
arrived, you saw that EasyFlight had debited your bank
account twice for the same amount. Netflix’s decision to greet anxious consumers with a human voice,
Write an email to the airline’s customer service demanding 30 not an email, is also unusual in corporate customer service. “It’s very
that they correct the mistake. interesting and counter to everything anybody else is doing,” said
Tom Adams, the president of Adams Media Research, a market
research firm in Carmel, Calif. “Everyone else is making it almost
impossible to find a human.”
Read your role card below and write an email responding to
student B. In contrast, Blockbuster outsources a portion of its customer service,
and when people do call, they are encouraged to use the website
we Student B page 33 instead, Its call center is open only during business hours, said
Shane Evangelist, senior vice-president and general manager for
Blockbuster Online, because the majority of customers prefer email
You work at customer support in ScanFurniture’s head 40 support, which is available 24 hours a day. “Our online customers are
office in Norway. comfortable using email to communicate,” he said.
Write an appropriate response to the email you will receive
The decision to invest heavily in telephone customer service was an
A
Student
from student B.
expensive one for Netflix, but it may be one advantage that the
company has over its rival, analysts say. “It’s vital in a world where
45 they’re no longer growing their customer base,” Mr Adams said.

32
 Michael Osier, vice-president for information technology operations Email practice: Complaining and
and customer service, said he rejected cities like Phoenix, Salt Lake
City and Las Vegas, which are known as call-center capitals, because apologizing politely
of their high employee turnover rates. He settled on the greater
Portland area because of the genial attitude on the part of most Read your role card below and write an email responding to
service workers. student A.

“In hotels and coffee shops and the airport, it’s amazing how > Student Apage 32
consistent people are in their politeness and empathy,” said Mr
Osier, who is based at Netflix headquarters in Los Gatos, Calif.
55 “There’s an operational language in the industry that people are so You work at customer support of EasyFlight’s head office
jaded about — phrases like ‘due to high caller volume.’ We’re very in England.
consciously trying to counter that mentality.” Write an appropriate response to the email you will receive
Student
B from student A.
Ms Funk has been working at Netflix for eight months, a veteran by
call center standards. (Mr Osier said his goal was to keep people
60 there for an average of two years, twice as long as the industry
average.) At $12.50 an hour, she said, the pay is slightly higher than Read your role card below and write an email to student A
in her previous job, in retail sales. who for the sake of this exercise will work for
ScanFurniture’s Customer Service department.
One of the first questions customers ask, Ms Funk said, is where she
is, and they express their approval at the answer. “They like hearing wp Student A page 32
it’s not being outsourced,” she said. Very few callers have asked
about the disappearance of the email option ...

adapted from The New York Times

Tick the following statements true or false: Student

B
true false

1 Netflix customers can call the call center

to order films which they then download.

2 Blockbuster is Netflix’s most important

competitor.

3 Netflix processes most of its customer

enquiries by phone.
Eight weeks ago you bought a bookshelf from
4 More and more companies are Scanfurniture, a large Norwegian furniture store.
outsourcing their services to external At home when you opened the package you found that the
suppliers as well as moving services glass door was cracked. You went back to the store to be
abroad. told that they would replace the glass door, but
unfortunately they had run out of stock. They promised to
5 Most companies in the service sector
send a replacement as soon as possible.
provide customer service through call
In the meantime you have checked several times with the
centers.
Customer Service desk of the local store but all they did
6 Blockbuster does not operate a call was promise that they would send the glass door to you as
center. soon as they got it.
Because you are fed up by now, you decide to write to the
7 Netflix decided against locating in
Customer Service department at the company’s
Phoenix, Salt Lake City and Las Vegas
headquarters in Oslo, demanding to have the glass door
because the cost of maintaining call
sent to you from Norway.
centers there Is high.

8 Ms Funk is one of the newest employees

at Netflix.

ics)w
 Selling to the consumer

Learning Focus | War 2 Rhea | @) 5g ))

¢ Describing types of retailers and
You are going to hear managers in five different types of retail establishments
their products
talking about their business. Match each recording with one of the types below.
¢ Describing charts and analyzing
Then find the corresponding picture.
figures
¢ Talking about pie and bar charts mail order company
mom-and-pop store
specialty chain outlet
Self Study U
department store
e Adjectives describing products, ar
WN
— big-box retailer
locations and prices
e Frequently confused words:
account for and amount to
¢ Talking about pie and bar charts:
approximations

Match these words from the recordings to the correct definition.

1 suburban a easy to reach, accessible

2 upmarket b located in the area just outside a city

|G Types of retailers and their 3 convenient
existing in reality, with real physical facilities
products

Vocabularv 4 bricks and stylish and of good quality and therefore appealing to wealthy
mortar consumers

5 prime of the greatest commercial value

Can you find an example of each store type in your country?

34
 Reading: Discount food chains
1 Doa quick analysis of your own consumer spending and answer
these questions:
1 Where do you or your family usually shop for essentials? Why? J00A value Lov money
2 Which retailers do you think are the most successful in the food market and what makes quality
them so successful in your opinion?
3 Which of the factors on the right are important to you when you shop for groceries? shopping expevience

customer sevice
2 Read the text and answer the following questions:
convenience of location
1 Which facts in the article suggest there is a global price war in retailing?
2 Who are the winners?
3 What is the secret of their success?

The Germans are coming

Germany’s “hard discount” model of Tesco, the world’s fourth-biggest retailer,
supermarket retailing is spreading in 40 is fighting an all-out price war against
Europe. Lidl in Ireland, and Belgium’s Delhaize
It is as far from the charming ideal of recently slashed prices in response to
French farmers’ markets and small discounters. Carrefour, too, is under
family-owned shops as you could pressure to cut prices.
imagine: strip lights glare down on a 45 But can the discounters hold onto their
narrow range of products in ugly gains? Tesco’s finance director recently for Carrefour. “They are privately owned
packaging, displayed in cardboard boxes suggested that they were merely having and can take a long-term approach to
piled on the floor and on low shelves. But a “moment in the sun”. He was quickly expanding abroad. New stores cost little
sales are booming at the new Lidl contradicted by the head of buying for 80 to open and generate rapid sales,” says
discount supermarket in south-west 50 Aldi in Britain, who pledged to open a Jurgen Elfers, retail analyst at
Paris. “Previously, the German chain store a week and win a tenth of the Commerzbank in Frankfurt, "so the
stuck to the suburbs, where poorer folk market (it has 2.9% now). In Germany, discounters can expand during hard
live,” says Fatouh Mourad, the store’s the heartland of discounting, cut-price times more rapidly than any other kind
manager. But rising food prices and operators have some 30% of the market, 8 oO of retailer."
widespread concern about pouvoir (a)a1 according to Planet Retail, a consultancy, What should perhaps worry
d’achat, or purchasing power, in France and shopping at Aldi and Lidl is the conventional supermarkets most, in fact,
have given Lidl the confidence to push norm for rich and poor alike. The two is that the discounters have proven
20 inside the city’s limits. firms doubtless reckon they have a shot themselves adept at moving upmarket,
As economic prospects worsen across at replicating that position elsewhere. 9 Oo even as they retain most of their
Europe, discounters such as Lid] - and 60 Discounters stock a fraction of the efficiencies. In many markets, for
Aldi, another German chain - are taking goods that a normal supermarket offers, instance, Lidl now stocks a limited range
market share. They generally charge resulting in fewer suppliers, a high of branded goods alongside its cheaper
25 some 30-50% less for groceries than volume of purchases and sales, and owr-label items. In Britain Aldi used to
ordinary supermarkets. In France, massive economies of scale. “You would 95 be known for tinned and packaged foods,
according to TNS, a research firm, 6 on find 16 brands of tomato ketchup in a but has now also introduced fresh and
discounters increased their market share normal big supermarket,” says Paul delicatessen products.
to 11.2% in the second quarter of this Foley, managing director of Aldi in In recent years the German discount
year, up from 10.5% a year ago, whereas Britain. “In my store you will find a model has experienced only one big
the share fell at Carrefour, the world’s choice of one.” Discounters mostly sell 100 setback. In March Lid] pulled out of
second-largest retailer. 7o their own-label goods, which are more Norway after four years of trying to
Discounters affect prices well beyond profitable than branded goods, where the establish itself. Rema 1000, a local
their own stores. “There’s a massive brand owner takes a big cut. discounter, will take over Lidl’s stores
35 global price war in food retailing, much Aldi and Lidl, which dominate the there. Executives at the posher kind of
of it provoked by the gains by Aldi and world of discounting, have annual sales 105 supermarket must be longing to know
Lidl and other discounters,” says James 7 on estimated at €43 billion and €35 billion how the Norwegians did it.
Amoroso, a food-industry consultant. respectively, compared with € 102 billion adapted from The Economist, Paris

35
 3 Tick the following statements true or false:
true false
1 Goods at the Paris Lia/ outlet are displayed attractively.
fo In Paris, Lid/ locates its stores in low-income neighborhoods.
3 The German discounters are forcing food retailers in other countries to cut their prices.
4 German discounters in France increased their sales by 10.5% in one year.
5 An executive of a major British supermarket thinks that the discounters’ success will not last long.
6 Aldi and Lid/ are optimistic about exporting their success to other countries.
7 Discounters are known for their wide range of goods.
8 Discounters are likely to be hurt by a recession.
9 Both Aldi and Lid/ have been doing well on the stock market.
_ 10 Norway is an especially promising market for German discount retailers.

4 Find expressions in the text which show positive or negative developments.

positive developments negative developments

@ as economic prospects worsen

5 Find expressions in the text meaning the following:

1 Tesco is in fourth place on the list of world retailers. ~

7 Aldi plans to win 10% of the market.

3 Discounters stock only a tiny part of the goods normally on offer.

4 Discounters in Germany have about one-third of the market.

5 Aldi has estimated annual sales of € 43 billion and Lid/ has € 35 billion.

6 Why do you think the American discounter Wal-Mart was forced out of the German retail
market?

Listening: The lowest prices around

x )) 1 Listen to an excerpt from Cash Flow, an American radio program and jot down the prices
for the products below:

Product Price

1 The typical shelf price for a bottle of (laundry) detergent in the promotional
discounting model
The everyday price for a bottle of detergent in the new Best Bargain model
The typical grocery store price for a box of cornflakes
The Best Bargain price for a box of cornflakes
ar The
wWhN competitors’ retail price for a microwave

Fg )) 2 Listen to the second part of the interview again and answer the questions.

1 In what way is Best Bargain different from the German discounters?

2 Which reasons for Best Bargain’s low prices does Brad Allan mention that were not mentioned
in the article about German discounters?

36
3 What explanations for Best Bargain’s low prices does Mr Allan avoid mentioning?
What
could they be? Do you agree with his statement: “The whole country benefits”?

Discussion: The future of retailing

The Shopping Buddy

(Personal Shopping
Assistant) is a computer-like
device mounted on the
shopping cart. It provides
information about the
location of items in the store,
makes personalized offers,
and suggests recipe ideas. It
allows the shopper to check
prices and add up the total.
Eg:
Special $1 90
=

Lact 100 F968 Or

| Special $3.99
' Garelick Farms Pastaurized Homoganieed 2%
Mikfot Reduced Fat White. > so
Deli Order

Look at the photos which depict various modern

technologies used in retailing and discuss the
following questions:

* How do you think the barcode has changed retailing?

The Interactive Shelf-Talker is a system for
¢ How could the other technologies affect retailing in the
displaying product information. The device works
future?
as a sliding interactive LCD monitor. Customers
¢ Do these technologies address the needs of any specific
can access additional information using an
consumer groups?
optional touchscreen.
e Are there any disadvantages in the use of these
technologies for the retailer or the consumer?

The Self-Check-Out
Machine enables
customers to weigh
fruit and vegetables
and scan barcodes
on items they want
to buy. The machine
then totals up the bill
¢ Customers may/might be tempted to ...
and accepts payment
¢ Consumers may/might wonder whether ...
by card or in cash.
¢ Consumers may/might conclude that ...
¢ Retailers could/will probably ...
¢ Retailers may/might hope for ...

ice)™S
 Business Skills

2007 Revenues of U.S. top 100 retailers

Rest: $813 bn Wal-Mart: $379 bn Charts: Understanding bar and pie charts
Home Depot:
$77 bn
1 Have a look at the charts and answer the following questions:

CS How could you describe the distribution of revenue generated by the top 100 retailers in
Caremark: the U.S.?
$76 bn
Supervalue:
Kroger: $70 bn
Look at chart 2. Compare the growth rates of the supermarket sector with those of the
$44 bn
Lowe’s; $48 bn
apparel sector. Where do you find the highest growth rate? Can you explain this?
Costco: $ 64 bn
How is the information in chart 3 different from that in charts 1 and 2?
Sears: $48 bn
Target: $63 bn
Walgreen: $54 bn
Source: www.stores.org

oe 2007 Hottest U.S. Retailers by growth Revenue growth 2004-2007 of the 40 hottest U.S. retailers
=

o
Revenue growth %
ict)
=
oO
Amazon.com
SS
oO 9 |Abercrombie & Fitch
~
=)
je) 15 |Whole Foods Market
N
SS American Eagle
xe)
S
S) 28 |Walgreen
37
N
n
oO
=)
= Wal-Mart
o
>
Walgreen American Average
a
fod) ApparelUrban
American Outfitters
Abercrombie
Source: www.stores.org Source: www.stores.org

6g )) 2 Now listen to an excerpt from a university lecture on the topic Retailing in the U.S.,
in which the lecturer refers to the same charts, and complete the following
sentences:

1. Wal-Mart tops the list by far with $379 billion, which is

eer . all revenue combined.
2 Although the pie chart shows onlly........ retailers in the U.S.,
one thing is rather striking.
3 Costco’s and Jarget’s reVeNUe ......0..0. See roughly $64 million each.
4 Supervalue, which ranks tenth, has revenue of $44 million, which is 12%
sown Wal-Mart’s revenue.
Sy MS ARONA) (WEN IS oceearncursmnasinon that Wal-Mart.
6 American Apparel showed............ growth rate.
7 None of the supermarkets are
8 Only the whole food seller Whole Foods Market them - with 70.6%

|@ Then and now:

comparing pie charts Charts: Describing bar and pie charts
Skills
1 One of you is Student A, the other Student B. Look at the correct chart and
describe it to your partner. Your partner will use your description to complete the
template. Be sure not to show it to him/her until the chart is complete!
> Student A Chart 1 page 124, Student B Chart 2 page 134

Pie Chart

Sociologists in the U.S.

Student
A
recently published a
study on shoplifting.
Student B will give you
the relevant information.
Complete the pie chart.

38
 Business Skills

Bar Chart rf
40
StudentThe graph shows the
B 35
development of sales of 30 = Oo
two different brands at
one supermarket. 15 UO
Student A will give you 10
the relevant information. 5
Complete the bar chart. . SS ES Tan ae
Ses
SS& ya
r oo x
Sto
iS

a = 9 i

Consumer behavior
across cultures

1 Imagine a foreign food retailer intending to

break into the American market. How could
differences in the factors listed below affect
the company’s decision as to where to locate
its outlets and what goods to offer?
Hcg
¢ age structure of the population
¢ population density
¢ availability of public transport
* average working time per week
¢ ethnic minorities
e health consciousness
¢ price of fuel/oil

2 What would be different if the retailer were to

break into the French market?

i EE - =

Cc Talking about pie charts

The biggest slice/segment of the pie represents ..., which had

more than a third of the total turnover.
The largest proportion of thefts occurs in the ... age group.
c: Talking about bar and pie charts ...§ market share accounts for ...% of the total.

The legend shows the brands represented in the chart.

... sold twice / three times as many ... as ...
....§ market share is only a quarter/a third / half that of ...
... showed the most / the least significant growth.
...’§ share of the market was slightly more than /less than ... %.
Ec: Talking about bar charts
... has approximately / just over/roughly ...% of the market.
The x-axis/y-axis represents /shows turnover in dollars.
Last year ...’s turnover amounted to $1.2 million.
 Business Skills

Role-play: Choosing the right distribution channel

Divide up into groups of four and read your role cards on the pages listed. Student A is the owner
of SuperStrudel, student B the owner’s partner and investor, students C and D are company
employees with different agendas. Present your arguments in the role-play, making use of the
graphs and company profiles on this page.

p> StudentBpage 125, Student C page 129, Student D page 135

Situation: SuperStrude/ is a European bakery which started operating in the U.S. five years ago. It
specializes in hand-crafted baked goods - breads, cakes and pastries - which have become a hit with
health-conscious consumers who appreciate the use of organically grown ingredients. The company is
also unique in that it is run on a business model emphasizing employee participation, i.e. employees
are involved in the decision-making process and receive a share of the profits. A year ago the owner
was pressed to buy new equipment and quickly found an American partner who was willing to invest in
a the bakery.
SuperStrudel has become so successful that it has caught the attention of major supermarkets. It has
been approached by all six major food retailers in the area, who have expressed interest in distributing
its products. This is a unique opportunity to expand. The owner is now going to meet with his partner
and employee representatives to decide which retailer would provide the best distribution channel.

<x £
You are the owner and founder of SuperStrude/. You want to preserve the integrity of your original
~
Cc
) business model. The high quality of your ingredients and the concept of employee participation are
x0)
od
p=] principles you are not willing to give up. You would like to have a distributor who respects these.
0)

Market share of grocery retailers Sales growth in the last three years
Best Bargain 27.0%
Others 29.1%
King’s 15.0%

Nice Price 14.0%

Green Goddess a

Foods 1.7%
=
o

Matt’s Market 4.2% BigMart 9.0% 3

Customer rating of shopping experience* Average wage/hr. for sales clerks and cashiers (first year)

$ 16.00
$14.00 '
$12.00 ;
* Ona scale of 20. $10.00 :
Includes factors $8.00
| such as satisfaction $6.00
ieee with store layout, $4.00
as | lighting, helpfulness $2.00
= '
: isa of staff. $0.00 (

S TEs
ee

40
Compa ny Case Just after Sam Patel finished his business degree at
Winstead Metropolitan University in England, his grandfather
died, leaving him £100,000. Sam, always a passionate
runner and sportsman, decided to combine his passion with
his interest in business and open a sports goods store with
specialty merchandise. He now has to decide on the most
Fme
appropriate location in Winstead, which has a population of
about 600,000.
Winstead used to rely heavily on manufacturing, but since
the early 1990s there has been an influx of service sector
businesses, especially call centers and retailers. It has also
become a center of financial services for the region,
attracting a new group of white-collar workers. It has a large
student population due to the presence of its two universities
and several higher education colleges. Winstead also boasts
two league football teams and has a long tradition of football
fan culture. There are good sports facilities and a large
number of football and other sports clubs.
Sam has been looking at various locations. On the one
hand, a large retail mall has just opened outside of town, in
which he could still rent space. There is also an outlet mall
in the area. On the other hand, the city is making an effort
to revive its High Street, which in recent years has gone into
decline, Thanks to redevelopment measures, at least in the
first year he could expect subsidies from the municipal
government to help finance shop rent. In recent years the
area around the train station has also been upgraded and
The right part of town there are shops in this neighborhood which could be rented.

Read the text, then list the advantages and.

disadvantages of each location from a business
point of view. Put yourself into Sam’s shoes and
decide on the best location for the shop.

Winstead: Changes in the last decade

1999 2009

Total Population 563,774 597,600

Population by age
group

0-18

| 19-40 138,123 155,376

41-60 ce 157,858 179,280

61-80 107,118 125,496 fe

81+ 28,189 35,856 &
Students enrolled 39,763 70,513

Business start-ups 1,32) 1,501

Sports clubs 17 33 §
Health and fitness 6 13
clubs
 Writing: Summarizing information Then visit the store’s homepage and ask yourself how
important the following factors are for you:
You are a consultant to SuperStrudel, the bakery described
on page 40. Your client has asked you to make a ¢ the shopping experience in the store
recommendation as to which retailer they should work * being able to touch, feel, smell the products in the store
with. You have collected your findings in a 20-page report * convenience (online purchase versus going into town)
but, as a meeting is taking place with SuperStrudel/ this * meeting friends in the store and socializing with people while
afternoon, you need to give the owners a short summary of you’re shopping
your findings. Write a memo summarizing your
Describe all this in a paragraph, finishing off by forecasting
recommendations.
the future of these bricks and mortar shops.

Reading: Big Retailers Still Struggle

in India
Read the following article and write a short essay
answering the questions below.

By Mehul Srivastava from New Delhi

Most Indians continue to find big retail stores more interesting

as cultural phenomena than as places to do their actual
shopping.

Just a few days before Diwali, the five-day Hindu, Sikh and Jain
festival, Rajlaxmi Pandit knew it was time to buy some gifts for her
family and friends. So she hopped on the Delhi Metro for a 45-minute
ride across town to the closest Big Bazaar, a big-box wannabe
offering everything from saris and neckties to cornflakes and frozen
Web research: Online retailing chapatis. The 34-year-old homemaker spent nearly an hour sifting
through piles of children’s clothes, admiring watches and trying out
Think of four bricks and mortar retailers you patronize. cell phones.
Check whether they have online stores.
Then, without making a purchase, she hopped right back on the
e lf so, how does the range of merchandise online differ from Metro and headed for the noisy street market in Bhogal, the working-
that in the bricks and mortar store? class neighborhood where she lives with her husband and three
e Are there any special offers? children. There, shopkeepers called out to her by name as she made
her way in and out of mom-and-pop stores clutching a list of prices
e¢ What methods of ordering are possible?
from the Big Bazaar. She picked
e What is their policy regarding payment, returning merchandise
out a $120 phone for her sister;
(e. g. mailing or pick-up service, return to store) time the price was about $5 less
restrictions, refunds? than at the Big Bazaar, and the
¢ How convenient would it be for you to order merchandise? shopkeeper had it delivered to
her house three hours later,
Be prepared to talk about this in the next class.
where her husband paid cash.
“Big Bazaar was nice,” says

Field research: Evaluating the 25 Pandit. “But | just wanted to see

all the prices. | don’t buy at
shopping experience those big shops.”

Choose a bricks and mortar book shop or electronics As Diwali fireworks light up the Indian skies, millions of people
retailer that you know well. Think about the total shopping across the country buy new appliances, clothes and gifts for the
30 entire family. In the days leading up to the festival, markets in Delhi
experience they create in their point-of-sale (POS).
have been packed with shoppers weighing gold bangles on tiny
Consider the following elements and how the consumer is
scales they brought from home, dragging annoyed children from
influenced by them: entrance, aisles, shelves, music,
store to store, stuffing them into sweaters too hot for the October
special offers, customer service. balminess and spending cash squirreled away for months.

42
 TRICKY LAWS FOR FOREIGN RETAILERS The success of the small players - and the larger economic slowdown
~ have contributed to a shakeout in Indian retail. Nearly 2,000 shops
But like Pandit, most Indians find big retailers more interesting as
70 have closed in the past 18 months. Subhiksha, a 1,600-store discount
cultural phenomena than as places where they would actually buy
chain, ran out of money to pay employees or rent early this year and
anything. Indian regulations for foreign retailers are complicated;
shut down. Spencer’s Retail (no connection to Marks & Spencer) has
big-box stores such as Wal-Mart or Carrefour are only allowed to
closed down 150 of its 400 shops. Pantaloon Retail, owned by the
partner with Indian companies in the wholesale sector, rather than
same company that runs Big Bazaar, closed 103 of its shops
selling directly to customers like Pandit. Meanwhile, single-brand
75 countrywide. As India’s largest retailer, it still has more than 1,000
retailers like Levi Strauss that primarily sell one manufacturer’s
shops. The Future Group is restructuring the entire company and
products are allowed to sell directly to customers, but they must also
considering selling equity to raise funds. Vishal Retail, which runs
have a joint-venture partner.
170 discount stores, is restructuring its debt.
That means that for foreign-owned retailers, much of India remains
Winning over customers may not be as easy as winning over the
out of reach. Marks & Spencer, for instance, has just 15 stores
80 government. Reliance Industries’ retail chain, Reliance Fresh, had to
through an alliance with Reliance Industries, although the British
close stores all around the country - including 12 in Uttar Pradesh,
retailer said it plans to add another 50 outlets in India. Through a
India’s most populous state - in 2007 and 2008 as politically
joint venture with Bharti Enterprises, Wal-Mart in May opened its
connected traders led protests against it, alleging that it ripped off
a0 first Indian store - called Best Price Modern Wholesale - in the
farmers. That distrust continues even today, in spite of Reliance’s
Punjabi city of Amritsar, but it’s allowed only to sell to people who
85 plans to open wholesale stores for traders. “They buy commodities
register by showing tax documents that prove they own a retail
like spinach, potatoes or fruit at dirt-cheap rates from the poor
outlet, often called a kirana store. The joint venture hopes to open
farmers, Sell it at their Reliance Fresh stores, and mint money,” Gopal
another 15 outlets.
Bhargava, a state minister for rural development in India’s largest
state, Madhya Pradesh, said, according to media reports.

90 Indian companies have to tiptoe around state governments trying to

avoid a repeat of what Reliance Fresh went through. They need to
figure things out in a hurry. “Eventually, once modern retailers can
get their supply chain infrastructure in place, there’s a lot more in
terms of price competitiveness that they can offer,” says Mohan
95 Singh, Hong Kong-based analyst for Macquarie Securities. “As
Indians grow richer,” he adds, “consumer spending will skyrocket in
the next ten years, creating an opportunity that Indian retailers must
figure out how to exploit.”

Bloomberg Businessweek

What makes Ms Pandit typical of millions of Indian

shoppers?
What conditions must big retailers like Wa/-Mart fulfill
55 MOM AND POP STILL RULE before they can open stores in India?
What explains Indians’ loyalty to mom-and-pop stores?
The market remains almost completely dominated by small corner
Why have Indian chains not been much more successful
stores, though, with chains of air-conditioned supermarkets and big-
than Western ones in their own country?
box outlets now holding less than 5% of the market, according to
brokerage house Edelweiss Securities. Because they don’t have much In your opinion, is there a way to combine the benefits of
60 of a foothold in the country, most of these companies haven’t had a the big-box stores with those of the neighborhood
chance to build up the sort of efficient supply chains that allow retailers?
Western retailers to discount their wares deeply. Meanwhile, the
nimble mom-and-pop stores exploit personal connections to
shoppers, home delivery, easy credit, and gifts and discounts for
65 loyal customers. “Some things are cheaper at the big stores, but if1
tell my corner guy that I saw cooking oil for $7 a kilo at Big Bazaar,
he gives it to me for the same price,” says Pandit.
 Globalization and
international trade

Learning Focus

e Discussing aspects of
Create a definition of globalization using the following sentence parts:
globalization
e Using the vocabulary of trade * an interconnected international market
and transport ¢ globalization is
¢ Telephoning: Business to * move across national borders
business (B2B) ¢ resulting in
¢ Making small talk e the worldwide process
e to other markets
¢ in which goods, services and capital
Self Study é ee ; PI
e Apologizing for a mistake
e Using the right form: econo-
¢ Using prepositions of time

4 Would you say this is a good definition? Does it leave anything out?
S ET

One of Rebecca’s first challenges at Which of the following statements about globalization do you agree with? Discuss them
Exhilarate: Meeting
the prospective in class. a wees
sponsors - definitely some /
oc Globalization
RES:
has /
ae Globalization
2...
characters among them - and resulted in a drop in } creates jobs. / ee —
establishing rapport in order to build poverty worldwide. 4 Ss << of.

their interest in the company. i,

Pee
— 4 oe A
TA Fuad = / _ Globalization has
= “Y & / been responsible for the
D\ emergence of extremely J
\ . powerful corporations. 4
¥ an yr.

Globalization
is a relatively new
Y phenomenon.

Ve A has led to
the spread of democracy
throughout the world.

It is largely
Globalization the inhabitants of
\ opens new markets. / wealthy nations that
have profited from
Globalization globalization.
enables the exploitation
of foreign workers.

44
 |@ Using the right form: econo-
Reading: Trouble with Trade
Vocabularv
1 Enter the following terms in the mind map below.

free trade

Negative
consequences

Forms of Globalization
Positive
protectionism consequences

Cee mee m etme sere es ecetee

*.. Reasons for
ee eeeeseng

drop in price of goods * economic growth * economic inequality * eAyrerrerta-pelution «

other countries’ vestvictions norms and standards * quotas ¢ spread of materialism ¢ reduction of balance of payments deficit
tetelation against other countries’ restrictions * special interests of domestic industries * Adam Smith:
The Wealth of Nations (1776) * subsidies * sweatshops ¢ tartfs-« terrorism ° traverearcteudsa

2 Match the following terms with the best definition:

1 ripple effect a_ materials before being processed or manufactured into

a final form

2 watershed b government services such as health care, old age

pensions and unemployment benefits

3 pact ca turning point

4 social safety net d aseries of consequences resulting from a single event

5 raw materials e an agreement between two or more parties

3 What aspects of international trade could people find troubling?

4 In the following article the Nobel laureate in economics and Princeton professor
Paul Krugman talks about his attitude towards global trade. Read the article and
complete the table on page 46.

D) 25 trade with third world countries reduces

Trouble with Trade the real wages of many and perhaps
most workers in this country. And that
While the United States has long poorer than we are and that pay their reality makes the politics of trade very
imported oil and other raw materials workers much lower wages. difficult.
from the third world, we used to import 15 For the world economy as a whole — 30 Let’s talk for a moment about the
manufactured goods mainly from other and especially for poorer nations — economics.
5 rich countries like Canada, European growing trade between high-wage and Trade between high-wage countries
nations and Japan. low-wage countries is a very good thing. tends to be a modest win for all, or
But recently we crossed an important Above all, it offers backward economies almost all, concerned. When a free-trade

watershed: we now import more 20 their best hope of moving up the income 35 pact made it possible to integrate the
manufactured goods from the third world ladder. U.S. and Canadian auto industries in the
than from other advanced economies. But for American workers the story is 1960s, each country’s industry
That is, a majority of our industrial trade much less positive. In fact, it’s hard to concentrated on producing a narrower
is now with countries that are much avoid the conclusion that growing U.S. range of products on a larger scale. The

45
 replace the jobs they lost to foreign level, and China, where they’re only
competition. And lower prices at Wal- 90 about 3% or 4%.
Mart aren’t sufficient compensation. So am | arguing for protectionism?
All this is textbook international No. Those who think that globalization
economics: contrary to what people is always and everywhere a bad thing
sometimes assert, economic theory says are wrong. On the contrary, keeping
that free trade normally makes a country 95 world markets relatively open is crucial
richer, but it doesn’t say that it’s to the hopes of billions of people.
normally good for everyone. Still, when It’s often claimed that limits on trade
the effects of third-world exports on U.S. benefit only a small number of
wages first became an issue in the Americans, while hurting the vast
1990s, a number of economists — myself 100 majority. That’s still true of things like
included — looked at the data and the import quota on sugar.* When it
40 result was an all-around, broadly shared concluded that any negative effects on comes to manufactured goods, it’s at
rise in productivity and wages. U.S. wages were modest. least arguable that the reverse is true.
By contrast, trade between countries The trouble now is that these effects The highly educated workers who clearly
at very different levels of economic may no longer be as modest as they 105 benefit from growing trade with third-
development tends to create large classes 75 were, because imports of manufactured world economies are a minority, greatly
45 of losers as well as winners. goods from the third world have grown outnumbered by those who probably
Although the outsourcing of some dramatically — from just 2.5% of G.D.P. in lose.
high-tech jobs to India has made 1990 to 6% in 2006. As I said, I’m not a protectionist. For
headlines, on balance, highly educated And the biggest growth in imports has 110 the sake of the world as a whole, I hope
workers in the United States benefit from 80 come from countries with very low that we respond to the trouble with trade
50 higher wages and expanded job wages. The original “newly not by shutting trade down, but by doing
opportunities because of trade. industrializing economies” exporting ma- things like strengthening the social
But workers with less formal education nufactured goods — South Korea, Taiwan, safety net. But those who are worried
either see their jobs shipped overseas Hong Kong and Singapore — paid wages 115 about trade have a point, and deserve
or find their wages driven down by the 85 that were about 25% of U.S. levels in some respect.
aa ripple effect as other workers with 1990. Since then, however, the sources of
adapted from The New York Times
similar qualifications crowd into their our imports have shifted to Mexico,
industries and look for employment to where wages are only 11% of the U.S.

= ih & ? > a mi ee
= La i =
___ Effects of global trade on the U.S. economy
oP *

Benefits

Drawbacks

Ss Does Krugman think globalization is a good thing? Highlight the words or phrases
*
Since 1982 the U.S. government
has maintained restrictions on which show the reader that he is vacillating between the two points of view.
sugar imports to the U.S. in order
to protect American sugar growers. 6 Finish the sentence: The trouble with trade is that
This has disadvantaged American
sugar-using industries and the
consumer, who pay more than
twice the world price. The sugar
program has been sharply
criticized as an example of U.S, How, according to Krugman, has international trade changed in recent years? How
7
protectionist trade policy.
has his own attitude towards trade changed?

8 If Krugman had focused on developing economies instead of the United States,

16 what benefits and drawbacks of global trade might he have mentioned?
 Discussion: Thinking about globalization
1 In today’s world it is not only manufacturing jobs that are outsourced but any jobs
that can be digitized. Can you think of some non-manufacturing jobs that have
been moved to low-wage countries?

What kinds of jobs are not outsourceable?

It has been said that young people in the West who are entering today’s job market
are in direct competition with millions of young people in China and India. What
skills and abilities do young people need to make sure they will be able to compete?

Listening: The container revolution

1 Fill in the gaps in the following sentences using one of the words from the box
below.

1 The warehouse has hired an additional security guard because of the problem of

Rail transport is often considerably faster than road

For some travelers, the is less important than the journey.

The aircraft is designed to carry e.. as well as passengers.

The building is small and doesn’t provide much space for .

Ieee officers are on strike and refusing to check cargo flights.

customs ¢ destination * duty ¢
There is no . _.... ON goods coming from other countries within the E.U. freight * handling * haulage
pilfering * storage * vessel
All items sent with express delivery will receive priority

ONWoke
co
DN
WY
FF
oO
BO ees: _. has a capacity of 1,000 passengers and 306 cars.

2 Listen to the excerpt from the radio program Business World and mark the
following statements true or false:
true false
Malcolm McLean began his career with a small fleet of ships.
Today 19% of all goods are shipped in containers.
Michael Brown’s father also worked in a container port.
The containers are brought directly to the ship by lorry.
The terminal manager decides in which order containers are loaded onto the vessels.
— The fee for a container
aAaarwhnr transport can change dramatically from one year to the next.

3 Listen to the first part of the recording again and describe how transport in the
past differed from modern container transport. Use the construction used to.

__ whereas today. they. ave transported in. containers,

4 What qualities of containers make them ideal for transport?

5 Containers are also used for purposes other than transport. In what other areas are
they used?

47
 Globalization ana
‘internationaltrade > :
Business Skills

Telephoning: Business to business (B2B)

'g )) 1 Adam Grimm of Mapet Engineering in Braintree, U.K., wants to send a consignment of
equipment to the U.S. Listen to the telephone conversation and write down the following
|G Using the language of trade and information:
transport : : ;
Vocabularv 1 deadline for the arrival of the ZO0dS 1 The WIS. sia scrntarsenstincertecei cret ecient axrage ine
2 sailing date of vessel that would reach Houston by that time octet Rake
3. arrival date of same vessel ee ; Fete oh A as ee
4 total time the goods will spend at sea . whois alee ete OR ee
5 rate for 40 ft. container.
6 customer’s special requirements

2 Have a look at the following Bill of Lading, which Adam Grimm has received from the
shipping company. Does it correspond to his instructions?

BILL OF LADING

SHIPPER Bill of Lading Number:

27569
Name: TDM Engineering
Radrass NT Relay Siteet CARRIER NAME: Thetis Shipping Ltd.
Braintree
CH75 6TH UK

CONSIGNEE Ocean Vessel: Victory

Flag: Malaysia
Name: Mapet Engineering
Port of Loading: Southampton
Address: 306 Explorer Drive
Dallas, TX Port of Discharge: Galveston, TX
77062-4032
USA Final destination: Houston, TX

Freight Charge Terms:

Prepaid Collect 3° P.
CUSTOMER ORDER INFORMATION
PACKAGE WEIGHT COMMODITY DESCRIPTION
QTy TYPE Commodities requiring special oradditional care or attention in handling or stowing must be so marked and packaged as to
ensure safe transportation
with ordinary care.

1 125 Ibs fluorescent lights

2 250 Ibs lighting

RA BS Se Se a
i=
special instructions
|@ Apologizing for a mistake or
inconvenience Fragile merchandise. Please handle with care.

Skills [|COD Amount: $

c eorecins 3 One of you is Adam Grimm, who calls Thetis to correct the mistakes in the Bill of Lading.
The other is a Thetis employee. Role-play the telephone conversation.
Even when you are annoyed, it
=
is important to express yourself
diplomatically. Here are some
expressions that are used to soften
criticism and complaints.
° I'm afraid ...
¢ I’m sorry, but ...
¢ Unfortunately ...
* I’m sure you realize that ...
¢ Would you mind ...?

48
 Bugiiess Skills

Small talk: Saying the right thing

1 How do you feel about small talk?
|@ Not at a loss for words:
what to talk about
* Do you find it easy to talk to people you have just met?
* What do you think are suitable topics for small talk in a business situation? Video
¢ Why do people make small talk?

2 Colin Finn, procurement manager for a major British retailer, is visiting /nfosystems in
Bangalore, India, to discuss outsourcing some of the company’s back office Operations.

How would you respond to the following questions/statements?

Did you have

a good flight?
My name is
Colin Finn.

Are you satisfied

with your hotel?

How long have

you been at
Infosystems? Is this your
first visit to India?

3 Now listen to the conversation and find out what the speakers actually say. 'g y)

1 My name is Colin Finn.

2 Did you have a good flight?
3 Are you satisfied with your hotel?
4 |s this your first visit to India?
5 How long have you been at /nfosystems?

4 Listen to the conversation between Colin and his host at dinner and answer the a ))
questions.

1 What does Colin say to praise the restaurant?

2 How does Colin say that he’s not really interested in visiting temples?

3 How does he praise the food?

5 Listen to Colin as he says goodbye to his host and fill in the gaps in the conversation: 7" »)
e@ Sunil Kumarswami ® Colin Finn

@ Mr Finn, it’s having at Infosystems. | do hope we’ve

to with all the information you need.

m Yes, , Mr Kumarswami. It’s fruitful

And thank you so much

e lt . Give my to your wife.

49
 Giodalization ana
so international trade
Business Skills

Diversity

Role-play: Small talk or deep talk?

An American company has organized a reception to welcome a business
partner from another country. One of you is the visitor, the other an
Sn
employee of the company receiving the visitor.
Small talk, > Student
B page 132
big effect
Your profile: |You are an environmental engineer. You have been sent to your
om le dismiss small talk cae =
i : oes me company’s subsidiary in the U.S. to work on a joint energy-saving ‘
as being a waste of time. Far c ; : ;
) project. Your assignment is to generate American interest in new '
from it. Small talk, as every 2 ae : :
; ra ways of eliminating environmentally unfriendly processes. You are ;
diplomat knows, has a crucial oo) Pee a :
he ik : keenly interested in this problem in general and are well qualified for r
function in breaking the ice, : een :
ry aan this new project. You are looking forward to finding people who ‘
establishing rapport and building ; ; XN
share your enthusiasm for environmental issues. You love to argue t
long-term relationships. The : :
E Eo: ‘ your ideas. :
topics may seem trivial, but their '
effect is not. The situation: You have just arrived and your hosts have prepared a welcome party ;
A favorite topic in Europe and the reception in your honor. You are going to be introduced to a member '
U.S. is, of course, the weather. In of staff who you know has quite a lot of influence in the area of :
a business situation it is common sustainable business practices. You think this person will be ;
to exchange personal interested in your ideas and you are looking forward to engaging R
information, comments on the him/her in deep conversation. ;
trip just completed and remarks You think it is great to find people who care as much as you do about i
about the food being shared. By the environment and want to lead this field in new directions. You are i
engaging in small talk, you show looking forward to real dialog. :
an interest in your business : i
Your task: After you have met, try to engage your colleague in a discussion :
partner and demonstrate respect 4 Sa ae
about climate control and the necessity for a global initiative to curb
for their culture. This serves to
global warming. What does s/he believe are the ways your company
make you feel comfortable with
can become a forerunner in this development? Probe deeply to find
each other and set the stage for
out what your colleague thinks. You want to show your colleague that
future business relationships.
you value his/her opinion and work in this field and are interested to
hear his/her views.

What conclusions can you draw from this role-play about cultural differences? OLB
ROLLED
LESS
TOL
DET
TTOMELET
LEO
TOG

vpreemeerscees
..Company Cas PlayWorld Inc. is a market leader in toys. For at least
twenty years it has been outsourcing production to
China, a strategy which brought the company
enormous cost advantages. However, two years ago a
scandal broke when toxic lead levels were detected in
the paint on various playsets which had been
manufactured by a Chinese supplier. PlayWorld was
forced to recall more than ten million items. At the
same time other toy companies, all of whom
outsourced production to China, experienced similar
problems and had to make similar recalls. PlayWorld
was assured by its suppliers that this would not occur
again and seemed satisfied that standards had been
Children at risk | raised. Then only two months later a consumer
protection organization reported 400 cases in which

Choose one of the options mentioned in the text powerful magnets used in various toys had come loose.
This was a cause for concern, as the magnets are very
and in groups discuss its advantages and
disadvantages. powerful and when swallowed can attract each other
and cause intestinal perforation or blockage. In five
cases children had in fact swallowed more than one
Returning production to the U.S.
magnet and req
advantages the company wi
Opinion on t
disadvantages
who feel that th e Made in China \abel is now a liability
and are pleading for a return of production to the U.S.
Industry alliance Another faction thinks that there should be an
industry-wide alliance which would increase pressure
advantages
on the Chinese government. Others feel that the best
disadvantages policy is simply to put more pressure on the
company’s suppliers, possibly with a system of
internal monitoring, and
Pressure on suppliers _ ion suit A class action suit
otherwise continue as
is a form of legal action in which a
advantages before.
large group of people with similar
| disadvantages Interests sue a company or
organization.
x
Before you start, think about the following
question:

¢ What might have caused the dangerous flaws

in the toys?
Then, in class, decide which of the options or
combination of options PlayWorld should pursue.
 Writing: Wealth through trade Reading: Is globalization good for
1 Write a short paragraph describing the graph you see the people of the world?
below.
Read the two texts and answer the questions.

Worldwide trade volume and GDP per capita 28194

24541
8191 Main Street Should
7401 Embrace Globalization
by Daniel Griswold

Millions of American families benefit from

free trade every day. We benefit whenever
we buy a cart of groceries, a new shirt, a
TV or acar. The receipt doesn’t say, “You
have saved $30 (or $300 or $3,000)
because of import competition,” but the
savings add up to hundreds of billions of
1948 1953" 1963)" 1973" 1983 1993 ' 2003 ' 2006 dollars every year for American households.

I Trade Volume ($b) BB GOP per capita ($) Most Americans believe in competition. We are better off when a
Sources: WTO, UN dozen restaurants and a half-dozen auto repair shops compete for our
business instead of only one or two. By expanding the number of
producers selling goods and services in the domestic market, trade
safeguards and intensifies competition. The result is lower prices,
more variety and better quality for tradable products. Free trade is
In... (year) X amounted to ... / stood at ...
the market’s trust buster.
... slightly more/less than ...
... approximately ... Free trade means we can buy fresh-cut flowers from Colombia in the
.. nearly ... middle of winter, along with fresh fruit from Chile and fresh
vegetables from Mexico. Free trade means we are more likely to find
... JUSt OVEF ...
the style and size of shirt we want on the shelves at department
... grew/increased steeply ...
20 stores.
... doubled/tripled ...
The consumer benefits of variety can be harder to quantify than a
simple drop in price, but they are just as real. A 2004 study by the
2 Inhis article Trouble with Trade Paul Krugman makes the National Bureau of Economic Research found that the real incomes of
following statement: American families are about 3% higher because of the greater variety
25 that imports bring. That translates to a real gain of $1,300 per
“For the world economy as a whole — and especially for poorer person or more than $5,000 for a family of four just from the
nations — growing trade between high-wage and low-wage expanding varieties that trade has brought to the marketplace.
countries is a very good thing.”
Imports from China have delivered lower prices on goods that matter
Do you agree or disagree with the statement? Write a short most to the poor, helping to offset other forces in our economy that
essay (200-250 words) expressing your reaction. Use 30 tend to widen income inequality. A 2008 study found that trade with
various arguments and examples. China has helped to offset nearly a third of the official rise in income
inequality from 1994 to 2005. Lower prices on goods imported from
China have more than compensated for any downward pressure on
low-skilled wages because of U.S.-China trade.
| agree /disagree with ... 35 Imposing steep tariffs on imports from China would, of course, hurt
Firstly/Secondly ... producers and workers in China, but it would also punish millions of
For example / For instance American consumers through higher prices for shoes, clothing, toys,
One important factor is ... sporting goods, bicycles, TVs, radios, stereos and personal and
oreover ... laptop computers.

n addition to the previous point, there is ... 40 It would disrupt supply chains throughout East Asia, invite
However ... retaliation, and jeopardize sales and profits for thousands of U.S.
Although ... companies now doing business with the people of China. Sanctions
On the whole ... of the kind contemplated in Congress would also violate the same set
All in all... of international trade rules that members of Congress accuse China
of violating.

a
 We should insist that our government adopt trade policies that are Large corporate producers are given further advantages by policies
best for most Americans, regardless of what other countries do. And that promote “free trade”. The premise underlying trade agreements
that means pursuing trade policies that spread benefits to the like Maastricht, GATT and NAFTA is that we will all be better off if
widest possible number of Americans, especially the poor and 40 we continue to increase the distance between producers and
50 middle class, who have the most to gain from removing the final consumers. As a consequence, Spanish markets sell Danish butter,
remaining barriers that separate us from the global marketplace. while Danish stores sell butter produced in France; England exports
Daniel Griswold is the Director of the Center for Trade Policy Studies roughly as much wheat as it imports; the average pound of food in
at the Cato Institute in Washington, D.C. America travels 1,500 miles before it reaches the kitchen table, and
The article is an extract from his book Mad about Trade: Why Main 45 the total transport distances of the ingredients in a pot of German
Street America Should Embrace Globalization, (2009) yogurt totals over 1,000 miles — even though all are available within
50 miles.

Governments around the world, without exception, are promoting

Globalization versus these trends in the belief that their ailing economies will be cured by
50 throwing themselves open to economic globalization. Ironically,
Community these policies undermine the economies not only of local and
by Helena Norberg-Hodge regional communities, but even of the nation-states that so zealously
promote them.
Society today is faced with a choice
between two diverging paths. The path But there is an alternative path, a significant counter trend that,
endorsed by government and industry 55 despite a lack of support from government or industry, continues to
leads towards an ever more globalized flourish. Throughout the world, particularly in the industrialized
economy, one in which the distance countries, increasing numbers of people are recognizing the
between producers and consumers importance of supporting the local economy. And within this
will continue to grow. The other path is countercurrent, attempts to link farmers and consumers are of the
being built from the grassroots, and leads towards strong local 60 greatest significance ...
economies in which producer-consumer links are shortened. Helena Norberg-Hodge is the Founder and Director of the International

The path towards globalization is dependent upon continuous Society for Ecology and Culture (ISEC) and co-founder of the /nternational

government investments. It requires the building-up of a large-scale Forum on Globalization (IFG)

industrial infrastructure, including roads, mass communications

facilities, energy installations and schools for specialized education.
1 According to Griswold, how does the consumer benefit from
Among other things, this heavily subsidized infrastructure allows
goods produced on a large scale and transported long distances to free trade?
be sold at artificially low prices — in many cases at lower prices than 2 According to Norberg-Hodge, what harm is done by
goods produced locally... globalization?
w How do the points of view of the two authors differ?
This is a trend that I have witnessed in Europe over the years with
the expansion of the Common Market, and in America, where 4 Which author do you think has the best arguments?
20 “bigger” has long been assumed to be “better”. Trillions of dollars Write a paragraph of 250-350 words explaining why.
have been spent all over the industrialized world creating
superhighways and communications infrastructures that facilitate
long-distance transport. Still more is being spent on highly
Web activity: Researching trade
specialized education that makes possible and promotes industrial policies
25 technologies — from satellite communications to chemical- and
energy intensive agriculture. In the last decade, vast sums of Use the internet to collect information about the current
taxpayers’ money have been spent on research for biotechnology — trade policies of:
with the aim of allowing food to be transported even greater
distances, survive even greater doses of pesticides and ultimately to the European Union | the United States | China | India
30 be produced without the troublesome need for farmers. The ‘unfair
Do these countries implement any protectionist measures?
advantage’ these many subsidies give to large-scale producers and
marketers is making it all but impossible for family farmers to You will find useful information in English on the websites of the
compete with industrial agribusinesses, for the small shopkeeper to World Trade Organization (WTO), the International Monetary Fund
compete with huge supermarkets or for any small producer to
(IMF), the World Bank, the CIA World Factbook, the BBC.
35 compete with corporations that can be located wherever production
costs are lowest.

53
 Products and production

\Afarm._iir
Learning Focus Warm-up 4

* Describing manufacturing
Match each diagram depicting a production method with the correct description of
processes
the process.
¢ Talking about product
specifications Al Storage space for Storage space for
¢ Presenting a product’s features, input material finished parts
functionalities and specifications
This production method is called
i
Order pull production method. The
Self Study intake
upstream downstream finished parts store is linked
process process
e The passive: talking about steps directly to the customer. Only
in production DBA those parts that have been
e What can your product do? Delivery pulled out of the finished parts
Choose the right words for store are assembled or
presenting a product processed. The finished parts
¢ Past perfect or simple past: when =
EJ Input material Interim Finished parts store balances fluctuations in
did it happen? store S tore store customer demand.

Order
intake

1 upstream
process Cc process (
This production method is

process: 4a series of called production in

Upstream
operations performed to shape,
D D Delivery sequence. |t is a lower level
it form of make-to-order
form or improve material to make
ready for assembly production. The final
Bc] Input material Interim processing stage and delivery
process: a series of store store are synchronized so there is no
Downstream
performed to make a need for a finished parts store
operations a _—ih
finished product a
anymore. The final processing
Order
Stage of a particular product

pong"
intake
Starts when the order for this
downstream
process
comes in.
push
This production method is called
; process Le

od. It is a D
production meth Delivery

conventional production system In

which items are manufactured in the Diagrams from The Synchronized Production System by Hitoshi Takeda
largest quantity possible in the time
available. Production is based on
What do you think the advantages and disadvantages of each of these production
expectations and projections. methods could be?

54
 Listening: Production and its management
1 Match the following terms with their correct definitions:

a_ the total number of people who work in a particular

1 lead time
company
2 workforce b an imperfection in an object or a machine
; c_ the production area of a factory
3 inventory ; ; ;
d_ all the goods available in a store at a particular time
4 defect e the period of time between the initiation of any
6 chopiacer r
production h completion
process and the ion of of that
th
process

2 Listen to the radio program /n focus featuring a professor of production operations

management talking about recent developments in production systems. Answer the
questions below while you are listening to the interview:

Why is production important for the economy?

What is lean manufacturing?
How is waste defined?
Why has it been so difficult to implement lean production in Western companies?
What kind of skills do workers need when lean production is practiced?
=
WH
aor Why might American car companies go out of business in the near future?

3 Listen to the interview again and concentrate on answering the questions below:

1 Write down the different types of waste. Which type is most important in the speaker’s opinion
and why?
2 What is the Japanese approach to improving results?
3 What are the challenges in production today?

4 Research the different types of waste.

1 How does waste occur?
2 What are the consequences of ignoring waste for a
company?

Reading: Birth of the cool

1 Match the words in the box with the correct pictures.

assembly line * barcode decal «

conveyer belt * mold * nuts and bolts

on O1
 2 How would you describe a typical factory? Would you agree with the following statement
made by a former factory worker?

“’ve worked in a few factories in my life and have hated it. |was mostly on an assembly line doing the
same repetitive work 8 to 12 hours a day. So after a while | began to lose my grip. Sometimes | had to
work in extremely hot or cold conditions and the constant noise required earplugs. At other times /
had to wear an apron, gloves, boots, hairnet and other gear to protect the product or myself from
chemicals and such. | don’t think human beings should do factory work anymore. They should be
replaced by robots.”

3 Read the description written by a journalist who watched the process of manufacturing
refrigerators. To what extent is the statement of the factory worker from above
confirmed in the text?

Birth of the cool

Yesterday, I saw a refrigerator being start to be made.
born. Actually, I saw thousands of them, An intricate
in all stages of completion. I spent the array of conveyor
day at the Mabe refrigerator factory in belts sorts the
Celaya, about three hours north-west of 4a proto-fridges by
Mexico City. They were kind enough to model, and they
let me in as the company’s line of go into a giant
business is one of the few in which enclosed building within the factory. Its 80 the simpler tasks (more men than
Mexico is successfully competing with purpose is to contain the polyethylene women here); some perform more
10 China on manufacturing. 5 co foam that is injected between the plastic complicated tasks manually. | don’t know
A long steel sheet with some designs and the metal, which hardens quickly which part to be more amazed by: the
on its fringes slides into a machine and gives the refrigerators both rigidity robots that act almost as people, or the
comprising two huge paddles. The and insulation. The now-firm refrigerator 8 ar people who act almost as robots. I’m told
paddles go up and ... two dimensions shells roll out of the building. Here is the they change jobs on the assembly line
become three. The sheet, flat a split- ona beginning of the assembly line. every six months to avoid boredom.
second before, now resembles a smallish After the fridges come off the
metal detector - a U-shaped block. It has From the moment the refrigerator shell assembly line, about one in every 20 is
no function, only a skeleton of form, but of a refrigerator starts its way down the 90 pulled off for testing. Some of them are
the thing looks like a refrigerator. assembly line to the instant it comes off, dropped from a height, within their
Elsewhere in this space, tonnes of sealed and cushioned in a box, four boxes, to test the packaging. Some are
pelletized plastic are being melted down 6 oS hours and twenty minutes pass. This is put on a vibrating, grated floor to re-
and laid into sheets. These sheets are the crucial figure. create the trauma of a truck trip.
then stacked and left to cool for a couple The other notable number: every 26 a Elsewhere there is an array of
of days until they reach room seconds, a refrigerator rolls off the line. refrigerators, lined up side by side,
temperature. But this gives you the wrong idea. It which have automated metal arms
Then they go back in the oven. They 65 sounds so very fast. The line, though, is opening and slamming their doors shut
are heated for 30 seconds then passed slow. The fridges move at maybe a third every three seconds or so. The goal is to
down a conveyor belt. Then a massive of the speed of a slow human walking, 100 test the hinges, and simulate the
metal mold pounds into the sheet. A few about the pace of the proverbial snail. openings and closings that would take
seconds later, the plastic, cooled and The measured creep gives workers place over a ten-year life span.
hardened, comes rolling off and is caught 70 time to put in the compressor and the It’s a sensible test, and, every time at
and set aside by a worker. Up to this motor, to insert the shelves and lights, to home the fridge opens and closes
point the whole process has been mostly attach the door and install the ice-maker, oa smoothly, I’m grateful manufacturers
automated. to screw in each nut and bolt, one have tests like this. The doors are
Next step: the inside of the fridge is systematic step at a time. slammed just hard enough to suggest a
fitted into its metal exterior. Wires are ~ oO Surprisingly, three-quarters of the measure of frustration, and I can’t help
duct+taped to the back and a barcode workers - around 3,000 people - are but wonder if even the robots have
decal applied. The bar code is scanned women: many of the men from the area 110 grown bored.
and, in another part of the factory, the have gone to work in the United States. adapted from Economist.com
door for this particular fridge will now Some operate machines that automate
56
4 Describe the manufacturing process as outlined in the article by completing the flow
chart.

The production process of a refrigerator

A long steel sheet Pelletized plastic The sheets are

The inside is — In an enclosed building Atthe assembly line — One fridge in every 20

5 Choose the right verb in the correct form from each pair in the box to
complete the gaps.
|G Verbs used in production:
attach/screw sort/stack be precise!
apply/fit install /insert Grammar
comprise/contain

1 The apartment 000000... a mini-kitchen facility and an en-suite shower/WC.

2 The home improvement guide shows you how to LI the shelves to the wall.
3 The car mechanic advised me to .............. new cables and a new battery in my van.
4 Containers are stowed DY wn... _. them on top of each other to make full use of the
loading capacity.
SB ete a thin layer of car wax on a regular basis, you can protect your car from UV
rays and dirt.

Discussion: Can business expertise of the

20* century still be applied today?
Read the quote below. This is the philosophy which Henry Ford put into practice in his
own factories. How was this different from European automakers? Can it be applied
today? If so, in which branches and industries?

“There is one rule for the industrialist and

that is: Make the best quality of goods
possible at the lowest cost possible, paying
the highest wages possible.”
Henry Ford (1863-1947)

57
 Business Skills

Presentations: Presenting a product

1 Imagine that you are doing voluntary work somewhere in a remote area in Africa. What
kind of computer would you need? What problems could occur?

ae » 2 Atthe exhibition Educating the world in 2010 in London the capabilities and
: functionalities of the LO laptop were presented to business leaders and educators from
developing countries.

Listen to Marc Lyons’ presentation of the LO laptop and answer the following questions:

Who is the product for?

What does the product provide?
Where would the product generally be used?
— What makes the product unique?
PWN

Pg » & Listen again to find out more details about the product's features, functionalities and
: specifications. Use the mind map below.

|@ Describing a product: features and

specifications

Skills

oan ee . cepa opemapare 8 i

Product
description

sete reeeeseneeneeeeeeneenenn _ Functionality oeSO ee

STE aT SOAS

58
 Business Skilis

Presentations: Describing a product |@ What can your product do?

Choose one of the e-readers and describe it to your partner. Compare the products in Skills
terms of readability, data input feature, storage capacity, size, weight and price. Then
discuss whether you would use an e-reader for reading and if so, which of the two you
would prefer.

> Student
B page 133

E-reader: Kindle

Manufacturer: Amazon.com
<
~
c
Screen: 6" (15cm) diagonal
® i
me)
600 x 800 pixels
- When | wake up, the other side of the bed is Electronic paper display
0) cold. My fingers stretch out, sve
warmth but finding only the rough
of the mattress. She must have had Operating system: Linux
and climbed in with our mother. Of co
did. This is the day of the reaping. Input: Select wheel, next/prev/back button
I prop myself up on one elbow
Memory: 2 GB (storage of ca. 1,500 non-illustrated books)
Networks: AT&T’s international network
raindrop, as lo
was named. M! other was very beautiful once,
Connectivity: Wireless modem, USB 2.0 port,
too. Or so they me :
Sitting at F s ky guarding her, is the
3.5mm stereo headphone jack, built-in speaker
world’s ugliest cat.Mashed-in nose, half of one
ear missing, eyes the of rotting squash. Prim Battery: 3.7 V Lithium polymer
named him Buttercup, insisting that his muddy
Physical size: 165 x 114 x 8.7mm (WxHxD)
Weight: 170g
Price: $89

Writing: Product descriptions

1 Study the specifications and functions of the handheld BrailleNote Apex and the
complementary GPS Trekker Breeze. Then read the product description from the
company’s website on page 60 and identify the product’s USPs.

BrailleNote Features/Specifications
Apex 32 Word Translate between any grade of Braille and text formats Streaming Enjoy listening to internet radio
Processor: including Microsoft Word, then print or emboss any document Audio: programs that use MP3 or
or attach it to an email. Windows Media formats.

Book Reader: Read books from Bookshare, RFB&D, Audible and numerous Keychat: Communicate in real time with
other sources. Read Braille or text formats in your preferred colleagues, friends and family
grade of Braille. Enjoy listening to audio books and take using state-of-the-art instant
advantage of the powerful DAISY navigation features. messaging (IM) services.
Web Browser Surf the Web - do online research, shopping and banking. Dimensions: 143 x 244 x 19mm (WxHxD)
and Email: Send and receive emails, and stay connected via your
preferred network connection.
Voice Memos: Record lectures, class notes and memos, then instantly play Weight: 812¢
them back from anywhere in KeySoft with a single key press.
Media Player: Listen in stereo to MP3, WAV and Windows Media files and a
number of other formats. Create playlists, enjoy internet radio
or music while reading, emailing or surfing the web.

Trekker Features/Specifications
Breeze 2 Single-hand operation with large, distinctive buttons - Built-in human sounding text-to-speech
Direct buttons to functions and intuitive interface - Eight hours of battery life
Quick volume adjustment with volume wheel - Integrated help
Built-in highly sensitive GPS - Shoulder strap and carrying case for secure transportation
Built-in speaker - Size: 125 x 50 x 25mm (WxHxD)
Secondary external speaker - Weight: 198¢

59
 Business Skills

wy \ (Search)
~ Humanware , een
Support |AboutUs | Contact [Subscribe | Shop |

BrailleNote Apex
HumanWare marks the 10th anniversary of the BrailleNote by
launching a new 18-cell version of the ultra-thin, ultra-light
BrailleNote Apex — a powerful notetaker designed for students and
professionals who are blind.
Intelligent ergonomics is paramount in the design of the BrailleNote
Apex line and assures users with high performance, comfort and
agility. At only 2cm (0.78") thick and weighing just 734 grams (1.8
lbs), the BrailleNote Apex 18 is portable and affordable. The popular Apex full-sized Braille keyboard makes
note taking quick and easy, while HumanWare's signature thumb keys make extensive reading effortless.
The acclaimed KeySoft suite of applications, high computing power and multiple storage options define the
BrailleNote Apex 18's productivity. Included are 8 GB of memory and support for high capacity SDHC cards,
four high-speed USB 2.0 ports, built-in WiFi, Ethernet and Bluetooth. Powerful specialized options include
Sendero GPS, the Concise Oxford Dictionary and Thesaurus, Nemeth Math Tutorial and many more tools that
help support student learning and continue to meet professional expectations.

Trekker Breeze
HumanWare introduces the very simple and affordable GPS for people who are visually impaired. As simple as
your TV remote, the Trekker Breeze handheld talking GPS can be controlled by one hand. It verbally
announces names of streets, intersections and landmarks as you walk. No need to stop passersby to know
where you are... simply press a button and Breeze tells you your location on the spot. When you are ina
vehicle, Breeze announces all intersections, allowing you to exit when you want.

2 How does the product description engage the reader while still providing all the
necessary technical details?

3 Write a similar product description of a new navigator based on the list of

specifications and functions below:

Navirama
Functionality: Functions:
high-sensitivity GPS receiver - reception possible in deep canyons or under
heavy cover
easy touch-screen interface
text-to-speech technology
Features: Functions:
built-in 3D base map and U.S. maps, free
updates every two years
user modes: driving, boating, cycling and
walking
Wherigo player (pronounced: where | go) - for creating and playing location-based
multimedia experiences in the real world
(e.g. treasure hunts, historical tours)
navigation with Navirama Connect Photos - using pictures from Google’s Panoramio
cc: Product description photo-sharing community as a guide
3D terrain maps - topographic terrain maps to know when to
t comes with ...
expect hills, mountains, forests and other
t is equipped with ...
natural features
t contains ...
It provides ...
Specifications
t improves ...
Display: =98.5!
t’s (easy) to handle /operate
Resolution: - Resolution: 320 x 240 pixels
t combines ... with ...
Average battery life: - 8 hours
t is designed to ...
Dimensions: - 107 x 85 x 23mm (WxHxD)
t offers ... Weight: - 215¢
t allows ... Price: - $200

60
 Back in 2003 Rio Secco, Texas, was a town that had
seen better days. Once a small city of 100,000, it was
suffering from unemployment and, with people moving
away to find jobs elsewhere, a shrinking population. In
an effort to attract investors, the city council put
together an impressive package of grants and
subsidies which included land, money for worker
training programs and millions of dollars in tax credits
spread over the next twenty years. The package was
effective. Alamo Appliances Inc., a major manufacturer
of electronic goods, set up a plant there and within
the next 15 years became an important employer,
ultimately payrolling 2,000 workers from within a
radius of 50 miles.
Despite foreign competition, Alamo Appliances Inc.
has remained profitable and competitive, thanks

Crossing borders to a number of niche products. Nonetheless, in

anticipation of increasing competition, consultants
have advised the company to shift production over the
Alamo Appliances Inc.'s board of directors, Mexican border, where wages are only a fifth of those
discuss which option or combination of options in the U.S. This would mean considerable savings and
_is realistic. It is not an easy decision to make. guarantee the company’s profitability in the long-term.
Then present your results to the class. On the other hand, closing down the plant in Rio
Secco will provoke an uproar in the city and a
The options are: backlash from the unions.
* Requesting additional incentives from the city ;
government
« Negotiating a pay cut with union officials
ys
¢ Putting the interest of the company foremost
_and shifting the production to Mexico
* Leaving some processes in Texas and shifting
the work-intensive processes to Mexico

61
 Overto you

Product presentation: Preparing a Design teams work with the three basic building blocks of
sustainability: reduce, reuse and recycle. Much has been
flyer for a product accomplished on the recycling front, and even reuse has a newfound
20 footing - witness eBay, Craigslist and certified pre-owned cars. But it
Choose a product you like and research the technical
is time to get serious about reducing. For companies, the problem is
details. Then write a flyer to promote your product. Make that it’s difficult to thrive in an expanding global market by making
sure your flyer contains all the relevant information on fewer products, and it is hard to make products using fewer natural
features, appearance, specifications, functionality, resources. For designers, well, we love making cool stuff. Reducing is
durability, price, etc. 25 also difficult for consumers who have learned that variety is the
spice of life. But the fact is, of the three building blocks, reducing is
Have a look at the lists of adjectives and attributes and the most direct. What green design needs today is not a silver bullet,
integrate some into your text. but the simple notion of small improvements across large volumes.

Downscaling equals downsizing

affordable excellent 30 Call it downscaling, a design approach that focuses on a product’s

all-in-one exciting material and energy use. Downscaling entails small, consistent
improvements across one (or more) of three dimensions: size,
beneficial handy
features and longevity.
brand-new innovative
compact life-changing Taking size first, look around and count the number of things that
convenient practical are just plain big. The SUV is the most prominent example of
oversizing in the U.S., but we also love big everyday items, such as
durable reliable
spacious wheeled luggage - whose overstuffed contents help
easy-to-use time-/life-/ money-saving
increase jet fuel consumption. Our culture remains dominated by the
efficient unique
idea that bigger is better. And these oversized products not only
40 expend more material, they also increase shipping costs and retail
space.

Fortunately, a go small counter-trend has yielded successes, proving

cutting-edge technology potential benefit
great design trumps bigger-is-better thinking. Sales of streamlined
ground-breaking idea practical solution prefab housing are rising, and the revamped Mini line by BMW has
high-tech solution revolutionary idea 45 elevated the compact car. In each case, architects and design teams
key feature sleek design have stressed size optimization as a key criterion of a well-designed
major breakthrough state-of-the-art technology product. While these rightsized products might represent niche
markets today, the trend lines are clear.

Reducing features
Reading: The benefits of
50 The second way to downscale a product is to reduce features. Most
downscaling companies add features as a way to stand out from their competition;
Read the text and answer the questions on page 63. marketing believes new features are the key to sales, and R&D
believes they are the natural outcome of technology. Of course, new
Green design calls for small improvements across large functions can be wonderful, but we have all experienced feature
volumes and for reducing the resources, materials and energy 55 overload, as brands including Sony and Hitachi try to outduel one
used in products another.

Open any magazine and you’re likely to find an article on how to go Apple’s iPods, whose minimal interfaces redefined digital music
green. The Web, meanwhile, is awash in sustainability sites. An players, began to change that game. The recent success of Pure
eco-zeitgeist is forming, and designers and manufacturers are Digital’s Flip Video Ultra camcorder continues this trend. Smart
moving quickly to adapt. But while those of us on the supply side 60 Design led a team that discovered that capturing memories easily
can start to deliver greener products, we can’t control demand. How was what most people really wanted, so we dropped advanced
quickly will consumers adopt our green products? features, in favor of everyday niceties such as one-touch uploading,
single-handed use and pocketability. Curtailing features also
While there has been an impressive shift in consumer
improves the ability to recycle a product, because recycling relies on
consciousness, the truth is that consumer habits change gradually.
65 the ability to efficiently separate a product into its individual
For that matter, it takes time for new, greener materials to become
components,
truly affordable. This means designers and our corporate clients
need to focus less on finding a killer green technology or selling
consumers on green products, and more on the small design
changes that can make a large impact immediately.

62
 Increasing longevity Web research: The ideal business
Longevity is the third frontier for downscaling. In this case the goal
location?
is to reduce the product replacement cycle, or simply stated, to make
70 a product last longer. A great exemplar is Carhartt, whose hard- Use the internet to find out which industrial goods are still
wearing clothing and no-nonsense image made it a standard for produced in your town or region. On the other hand, are
trades people, farmers and outdoor enthusiasts. The understated there companies which have outsourced all or part of their
image has propelled the brand to new levels with young adults
production? Can you find out to which countries?
focused on basic values. Often criticized as nostalgic, durable things
75 conserve raw materials and encourage care and preservation.

Obviously many companies view longevity as an impediment to new Writing: Responding to a

sales. But new strategies can help manufacturers sustain income
without habitual replacement. Higher margins could be sought: company’s outsourcing plan
today we see this primarily in luxury markets, but what if the bar
80 were raised en masse?

Designing sustainability

Just as design movements such as ergonomics and interaction came

into existence through a need to address important and related
factors collectively, downscaling can evolve as an expertise within
85 the design industry, benefiting companies, consumers and the earth.
Today, no design team would think of releasing a product without
checking the ergonomics. Given our environmental situation, should
we continue to release products without attempting to downscale
them?

90 Renewable materials, recycling and improved production methods

are critical to attaining sustainability, but are not enough without
finding ways to reduce what we produce and use. Downscaling
doesn’t need to wait for government regulations or new technology -
we can do it now. And, as designers, we don’t even have to stop
95 making cool stuff - as long as we keep it in check.

adapted from Bloomberg Businessweek

Why should designers and manufacturers concentrate more

Choose one of the following writing tasks:
on small product changes when going green?
To what extent have the three elements of sustainability 1 You are the CEO of Alamo Appliances Inc. Write a confidential
already been accomplished by designers, manufacturers and memo to your board explaining why you have decided to close
consumers alike? down the plant in Rio Secco and move production to Mexico.
What have designers and manufacturers already done to You are the local union official representing the Federation of
reduce product size? Does the author think that this Is American Workers. Write an email to your senator explaining
sufficient? the situation and appealing for help.
According to the article, will manufacturers warm to the idea You are the editor-in-chief of the local paper The Rio Secco Sun.
of increased longevity of a product? What strategies does the Write an article criticizing the plans of Alamo Appliances Inc.
author suggest?
What is the author’s conclusion?

63
 Anelys ss

Marketing |
communications |

Learning Focus me Warm-up

Discussing marketing strategies,
using the professional vocabulary
Giving clear and well-structured How much do you know about marketing?
presentations
Designing visuals Tick the best answer to each of the following questions.

1 Which of the following is not an element SS b [_] first-hand information taken from
of the classic marketing mix? respondents
Creating slides a [] Packaging c [] information taken from professional
Quantifiers: some, a /ot of or b [] Place journals
hardly any marketing?
c [] Price d [_] information taken from the internet
Ses SRNR RNS REIS SS RRR CURTIN
d [_] Product
Video Presen ation Quantitative data is a term used to describe
e [_] Promotion
a (_] data that analyzes opinions of and
Rebecca helps Harold prepare a
2 Which of the following is not a form of attitudes to a product
presentation on the /nternational Ice
marketing communication? b [] data for statistical analysis
Climbing Festival for the potential
a [] Advertising LO
LETS
ELE
LEE
LLL c [_] data that looks at consumer habits
sponsors. However, the night before _
b [_] Packaging d (| data used in questionnaire design
the presentation a freak accident ae
aes
sais
c [_] Personal selling
occurs. Will the presentation be Qualitative data is information about
d [(_] Public relations
able to go ahead at all and if so, will a (| opinions and attitudes on a product
e [] The internet
the sponsors be persuaded to or service
commit to the event? _ 3 What would you say is the best b [_] the quality of the information
SHES
definition of advertising? market researchers have collected
a [_] anotice or message in a public c [_] the features of acompetitor’s
place offering a product or product
service d [_] new product developments
How to interpret your score: b [_] actions taken to increase the
If a company engages in niche marketing, it
demand for a company’s
6-7 answers correct: a [_] concentrates its marketing effort on
products
Congratulations! You are already the mass market
c [] the activity of attracting the
a marketing expert. You probably b [] concentrates its marketing effort on
public’s attention to a product
got top marks on your last particular countries
d [| the commercial functions
marketing exam. c (] concentrates its marketing effort on
involved in bringing products or
4-5 answers correct: You have several segments of a market
services to the consumer
a good foundation but there’s d (| concentrates its marketing effort on
4 When market researchers speak of one particular segment of the
room for improvement!
primary data, they mean market
1-3 answers correct: Maybe a [_] articles from a newspaper
it’s time to take a Marketing 101
course!

PZ “€9 ‘gg ‘dy ‘og ‘az “e| :Aay

64 In what ways would you say you are influenced by marketing strategies?
 Listening: Passing the buck
1 You will hear an excerpt from a meeting at Coo/Fit about the company’s marketing 03
compaign and their sales figures. Listen and answer these questions:

¢ What happened to the company’s sales figures? | G@ Test your marketing

¢ What seems to be the reason for the company’s problems? ee
* What is the outcome of the meeting? Steve: PR and Vocabulary
Advertising
manager

Richard: vice-
Christine: president of
Market Marketing
Research

2 In this meeting Steve, Christine and Richard use a number of marketing terms. Listen to 0
the recording a second time and fill in the missing words in the conversation. ~

We rana
fantastic
Wait a minute, we got
on television coast
the
to coast.
right.

You're paid to know that this

Cool/Fit is the age group doesn’t watch
first brand of jeans to use anymore. In fact,
they reject

We backed this up with

We used and and
until we
were sure we had an unbeatable
- guaranteed fit.

65
 ~ Marketing
7 ~ communications -

Reading: Alternative methods of marketing

4 Which of these marketing methods have you heard of? What do you know about
them?

viral marketing | guerrilla marketing | word-of-mouth | ambush marketing | adv

2 Match each definition of a marketing method with an example.

se

Viral marketing © video game console, Nin

ique that uses the Before the launch of Its new Wii
Viral marketing is a marketing techn in or der to put its TV-- :
by offeri ng a selected target of America Inc. designed a strategy
network effects of the intern et
hand s of non-gamers and broader
pass on an electronic remote-style controller in the ©
audience an incentive to voluntarily p of young men. The company
sts. This creates growing its appeal beyond the usual grou
message to peers with similar intere — who m it calle d alph a
of marketing is often recruited technology-savvy moms
exposure to the message. This kind their friends. These moms
moms ~ to share the console with
referred to as word of mouse . the new electronic product
invited a group of friends to try out
e previous experience with
Many of the mothers had hadlittl
reluc tant to accept the invitation
electronic games and were
became hooked after the party .
Sales boomed.
Ambush marketing
In ambush marketing, companies find
ways of promoting their
Hees at sporting events without payin
g sponsorship fees.
his usually involves giving out freebies
such as clothing, food On Its website, Oreo Cooki f
or beverages and may give the ambus
hing company an
children in whic 4 chocolateIScooused a game designed for
kies fell from
advantage over the official sponsor.

Guerrilla marketin
g
Guerrilla marketing
: eting isj a promotion
Carrying out unconventio al strategy which involves

Advergaming
Advergaming is the us
e of interactive gaming
es
ver emb ed ded advertising messag
technology to deli her than
ng goes muc h furt
to consumers. Advergami e it med Ericsson hired 60 actors to
attract visitors becaust sto p strangers on the
sites which use games to nt, i.e. the street in ten major American citi
gaming enviro nme
includes branding in the itse lf. “Would you mind taking my ls
ral to the gam e !"If l a stra
advertising message Is cent agreement, the actor then handed
e ngerewas in
hi ma brand new
picture phone and told him how
cool the new device was.
The stranger was of course usual
ly im pressed and wanted
to know more about the product.
Word-of-mouth (WOM)
Word-of-mouth promotion is the passing on
of recommendations
by verbal means. It is considered the most
effective of all
advertising strategies because of its credibility.
Research shows
that individuals are more likely to believe WOM
than more
formal promotion methods, as the receive
r of word-of-mouth
promotion tends to think that the communicat
or is speaking
honestly and is not receiving an incentive
for his/her
recommendation.

66
3 Have a look at the following products. Which of the marketing methods from page 66
|@ Quantifiers: some, a /ot of
could be used? Give reasons for your suggestions. or hardly any marketing?

* solar heating systems Grammar

* aunisex perfume from a leading producer of handbags
* anew action movie
* anew energy drink
* anew medicine for malaria
* a state-of-the-art laptop from a leading producer of PCs
* ashower gel for sensitive skin

Role-play: Bringing your marketing

+ Developing ideas
knowledge into play
What do you think about trying out ...?

1 In pairs develop ideas for a new promotion campaign for Coo/Fit jeans using alternative | think the best idea would be to ...
It seems that ...
and conventional marketing methods.
We want to appeal to ...
How interested would our target group
2 Then find a different partner and role-play the following situation:
bein ...?
One of you is the creative director of an advertising company. Try to sell your ideas to
the marketing director of Coo/Fit jeans. The other is the Coo/Fit marketing director. Ask
questions about the ideas suggested to you.

Diversity
a 4 Cp

JSTED TIENE.
fais

—wKSban
45 = bi. >

Ethnic marketing
‘a 1 Which ethnic group is being targeted in each of the ads above? Which needs and values of the particular
¢ group are being addressed?

2 What are the largest ethnic groups in your country, region or community?
Do companies target these groups with particular marketing or promotional campaigns? If so, give examples.

3 If you are a member of an ethnic minority, how do you feel about advertising specifically aimed at your
community?

4 |f you ran a company, how would you try to reach ethnic minorities with your advertising?

67
 Marketing
7 ~ communications
Business Skills

Presentations: Reaching your audience

ecesonig a teorgos
| @ campaign 1 Think of a terrible presentation you have heard. What went wrong?
How should a presentation begin?
Video

A 2 Buzz World is an innovative advertising agency. Its founder, Bob Spencer, has been
invited to give a presentation at Coo/Fit. Listen to the first part of his presentation. Did
he follow all the steps outlined in the mind map below?

Saying when
seisecdele dase “pepeemorererds _ Greeting the you want _povcacancaco cabodeenise=
deccee
: audience questions

Introducing Setting the

yourself timeframe

Stating the Explaining

po0asonsor oro ee eee _ purpose
of your the structure Perera
ere econ”
; presentation of the talk

Explaining its
importance

Timeline

Starting from the above left-hand corner you find steps typically used to begin a
presentation. Listen again and fill in the phrases Bob Spencer uses to structure the
beginning of his presentation.

OF 3 After Bob Spencer from Buzz World outlined what went wrong with the former
advertising campaign, he explains what his agency would do differently this time. Listen
and answer the following questions:

1 What is the purpose of the campaign?

2 What are the four steps Buzz World is going to use to achieve its goal?

3 Do you think this is likely to work?

68
 Business Skills

4 Listen to the final part of Bob Spencer's presentation. What does Buzz World expect to
achieve with the campaign proposal?
|@ Collocations: running an
oa effectiveness advertising campaign

Consider the following factors; << risks Vocabularv

Se costs
SUCCESS

What is the purpose of this final part of the presentation?

Presentations: Preparing slides

1 You will hear part of a lecture Prof Ainsley Barnes is giving on Forms ofAdvertising for KG Signposting: guiding the listener
through a presentation
students in her course Marketing 101. The following nouns occur in her presentation.
2 Use one of them to complete each of the following sentences: Skills

approach ¢ clutter * drawback ¢ hostility * slot

1 Their relationship used to be friendly, but now there is a lot Of oe between the
CEO and the CFO.
2 1V advertising rates are generally quoted per 30-SECONA TIME voce
xoI A cee ee of television advertising is that viewers tend to switch ererhels during a
commercial.
A SOME WCOPISTEMNMK Uiatekecsateo nets es on a desk is a sign of genius.
5 Our own sales methods haven’t worked. We need a Completely NEW oo... :

2 Look at the three slides. Which of them do you think would support the presentation
best? Discuss this with the other students. Then listen to the presentation again.

High costs
Expensive updates
Clutter
Low audience selectivity
Waste

Solution: Madison and Vine approach ”

69
 es Marketing
~ communications
Business Skills

Tips for Designing and Using Writing: Presentation slides

Presentation Slides
Look at the text about online advertising. Prepare a slide and group the important
Do’s
information under four or five bullet points.
* reduce message to key words
* use the Rule of Six (maximum
six lines of six words each)
TV advertising has the huge drawback that this form of communication works in only one direction.
¢ structure your presentations
Even if it succeeds in reaching the target group, it is a passive experience for consumers, who
with phrases such as:
cannot react to messages immediately and may soon forget about them.
e My next slide shows...
Internet advertising, on the other hand, has the benefit of being interactive. When the message
¢ As you can see...
reaches the targeted group of consumers, they are motivated to request additional information and
Don’ts can do this by sending an email. They can even make an immediate online purchase. They do this
¢ use full sentences on the slide voluntarily and are no longer bombarded with advertising against their will. A benefit to advertisers
¢ distract the audience with too many is that these actions are all measurable. The effectiveness of a campaign can easily be evaluated.
special effects If the campaign is performing badly, it can be modified or discontinued. And of course the cost of
¢ read out what is on the slide such advertising is minimal. So in many respects, online tools are an advertiser's dream.

Presentations: lcebreakers

1 Presenters can use different techniques to get their audience’s attention. Look at the
two examples below. Which techniques do the presenters use?

1 First slide at the start of a presentation about the company Microsoft®.

The Microsoft team in 1976. Would you have invested?

2 This is an example of what Bob Spencer, creative director of Buzz World, could have said at the
beginning of his presentation.

“Hello everybody.
Do you know that the average city dweller
in an average rich nation is bombarded by about 3,000
ads and marketing messages every single day? And that young
people, because of their lifestyle, are likely to
encounter up to 5,000 marketing
messages a day?”

2 Can you think of other ways of attracting the audience’s attention?

70
Company Case
The German organic soft drink Okobrause, a tasty
low-sugar soda made of natural ingredients, was
created 20 years ago to save a family business. Back
then it was considered a bohemian drink and was
advertised largely by word-of-mouth. It has since
become a success story on the domestic market with
record sales among health-conscious consumers. Its
range of flavors - including ginger, lychee and
elderflower — and hip bottle design also appeal to
mainstream consumers who like to keep up with
trends. The product Is now sold in conventional
supermarkets as well as in health food stores and

Okobrause recently the company has even begun advertising.

In the last two years the company has been
struggling to keep up with demand in the domestic
In groups of three, work out a strategy for market. However, the new CEO, Ute Schmidt, is
introducing Okobrause to the American consumer. anticipating a time when the home market will have
reached saturation; to continue growth, she thinks the
Consider the following questions: company needs to expand internationally. It is already
What is Okobrause’s USP? present in more than 13 European countries and
What are Okobrause’s target groups Schmidt has now decided to launch Okobrause on the
in Germany? U.S. market. This will not be an easy undertaking
What distribution channels does it use? because the U.S. market is very difficult to break into
What problems might arise in the U.S.? due to the country’s size and diversity. On the other
Should Okobrause use test markets in the hand, Okobrause has strong selling points: quality
U.S.? If so, which ones? combined with organic ingredients in a product which
What kind of advertising would reach so far doesn’t exist on the American market.
Americans?
aS
¢ Which distribution channels should be used?

Present your ideas to the class using

appropriate slides.
 Presentations: Creating slides Well, first of all, we’ll be able to target about 90% of the trendsetters
in the jeans segment.
Go over the audioscript of the Buzz World presentation and Of course you’ll be anxious to know what the risks are. Let me
create slides. assure you there are hardly any risks involved because the costs will
be very low. And most important: if it turns out that the campaign
(( a. Hi, everybody. isn’t as successful as expected, we can call it off and nobody will
- For those of you who don’t know me: my name is Bob Spencer and have ever noticed that it was us who produced those videos in the
I’m the creative director of Buzz World. 60 first place. And, finally, costs will be absolutely minimal.
Buzz World is one of the smaller promotion agencies but we have So, to put it in a nutshell: we are expecting a huge response to this
become very successful in the area of unconventional marketing campaign, with the result that your jeans will live up to their name.
support.
I’m very happy to be here with you to present our proposal for a new Thanks for your time. Now then, fire away with any questions you
CoolFit advertising campaign because | think you have developed a may have.
superb product. In fact, the whole agency is really enthusiastic about
the prospect of working on this campaign.
OK. Let me give you an idea of what I’m going to talk about. Web research: Gkobrause
First [ll sum up what has been done so far at your end and the
results. I’ll also outline the reasons | believe why your advertising
Find out if the American market is ready for a German
campaign may not have been so successful. organic soft drink. You could google U.S. combined with the
Then I’ll come to the main point of this presentation, which is our following terms:
advertising concept.
And finally V’ll point out the advantages of our concept. ¢ size of market for organic food and beverages
This will take about ten minutes. Then there’ll be time for questions. * average spending on food as percentage of total income
And afterwards I’ll explain the concept in detail, which, as you can * expenditure for organic food by region
20 imagine, may take a little longer. ¢ retail market for organic food and beverages
Right. Let’s start. Your jeans are state-of-the-art ... * major importers of organic food

( Se So, here we are - what can Buzz World offer you?

We'd suggest a mixture of viral marketing measures with a little dose Share your findings in class in the next session.
of conventional advertising.
25 We’ve opted for a four-step campaign:
First step: we’ll produce a trio of ultra low-budget video clips; now Reading: The city that said no to
these films won’t show your product and won’t indicate that this is
advertising
advertising. The videos will show three different young men and
women who are enjoying themselves. The key is that the videos will Read the following article and answer the questions below.
30 look very amateurish.
Second: we’ll zap these videos to about 200,000 influential young
adults from a list of web surfers which we’ll provide.
Third: we’ll wait roughly one month for the build-up of the buzz. How
is this done? Very simple: the recipients of the video clips will send
35 them to their friends and they will send them to their friends, etc. So
they get the ball rolling.
Then - and this is the exciting step - after a month or so we’ll do a
TV and radio advertising blitz, a) revealing that the three video
characters were fictional characters and that they were developed as A city stripped of advertising. No posters. No flyers. No ads on
40 part of an online computer game, and b) announcing that the game buses. No ads on trains. No Adshels ~ no 48-sheets — no nothing.
can only be played if the participants get the product identification
It sounds like an Adbusters editorial: an activist’s dream. But in Sao
number from a pair of CoolFit jeans, which means that they have to ve
Paulo, Brazil, the dream has become a reality.
visit a shop. We’ll run the TV commercial and the radio spot only for =
w)
about five days because the rest is done by the consumers through ou In September last year, the city’s populist right-wing mayor, Gilberto
communication in the net, but to speed the process up a little, we’re Kassab, passed the so-called Clean City laws. Fed up with the “visual
thinking of employing so-called buzz agents as well. pollution” caused by the city’s 8,000 billboard sites, many of them
So the idea is that at the end of this campaign everybody in our erected illegally, Kassab proposed a law banning all outdoor
target group will be talking about the clever advertising and advertising. The skyscraper-sized hoardings that lined the city’s
consequently about CoolFit jeans. Thank you. streets would be wiped away at a stroke. And it was not just
ea Let me now highlight the selling points of this concept. In other billboards that attracted his wrath: all forms of outdoor advertising
10 were to be prohibited, including ads on taxis, on buses - even
words: why are we so sure that a campaign using viral marketing will
work this time? shopfronts were to be restricted, their signs limited to 1.5 meters for
every 10 meters of frontage. “It is hard in a city of 11 million people

Hn
 to find enough equipment and personnel to determine what is and had been covered by a big billboard for years so | never even knew
isn’t legal,” reasoned Kassab, “so we have decided to go all the way.” what it looked like.”
Border, the Brazilian Association of Advertisers, was up in arms over
But there are downsides - Piqueira worries that much of the
the move. In a statement released on October 2, the date on which
“vernacular” lettering and signage from small businesses - “an
law PL 379/06 was formally approved by the city council, Border
important part of the city’s history and culture” - will be lost. The
called the new laws “unreal, ineffective and fascist”. It pointed to the
organizers of the Sao Paulo carnival have also expressed concerns
tens of thousands of small businesses that would have to bear the
about the long-term future of their event now that sponsors will not
20 burden of altering their shopfronts under regulations “unknown in
25 be allowed to advertise along the route. The city authorities for their
their virulence in any other city in the world”. A prediction of
part have made it clear that certain public information and cultural
US$133 million in lost advertising revenue for the city surfaced in
works will be exempted from the rules.
the press, while the Sao Paulo outdoor media owners’ association,
Sepex, warned that 20,000 people would lose their jobs. After a period of zero tolerance, Piqueira believes that advertising,
albeit in a far more regulated form, will start to creep back into the
Others predicted that the city would look even worse with the ads
30 city, either as a result of legal challenges, a change in administration,
removed, a bland concrete jungle replacing the chaos of the present.
or compromises between media owners and the city. Already, the
North Korea and communist Eastern Europe were cited as indicative
council has stated that it would like to see the introduction of
of what was to come. There was also much questioning of whether
approved street furniture such as bus stops, which may well carry
there weren't, in fact, far greater eyesores in the city - such as the
ads. As these will no doubt be for the major brands that can afford
30 thousands of homeless people, the poor condition of the roads and
such lucrative positions, a more sterile, bland visual environment
the notorious favelas ... Nevertheless, the council pressed ahead.
may replace the vibrant, if chaotic streets of the past. Flyposters,
“What we are aiming for is a complete change of culture,” its
hand-lettered signs and club flyers will remain banned while
president Roberto Tripoli said.
international ad campaigns for global brands on city-approved poster
In theory, April 1, 2007 was the first day of Sao Paulo’s re-birth as a
sites will return.
35 Clean City.
40 Meanwhile, according to Augusto Moya, creative director of ad
agency DDB Brasil, the ban is forcing agencies to be more inventive.
“As a creative, I think that there is one good thing the ban has
brought: we must now use more traditional outdoor media (like bus
stops and all kinds of urban fittings) in a more creative way,” he
says. “People at all the agencies are thinking about how to develop
outdoor media that do not interfere so much in the physical structure
of the city.”

Moya takes an enlightened view of the law. “As a citizen, I think that
future generations will thank the current city administration for this
Who banned advertising in Sao Paulo? 50 ban,” he says. “There’s still a lot to be done in terms of pollution - air
Why was advertising banned? pollution, river pollution, street pollution and so on. Sao Paulo is still
What were the arguments against the ban? one of the most polluted cities in the world. But | believe this law is
= What would you say was the result of the advertising ban?
PWD the first step towards a better future.”

adapted from Creative Review, www.creativereview.co.uk

“I can’t tell you what it’s like to live in a city without ads yet,”
says Gustavo Piqueira, who runs the studio Rex Design in Sao
Paulo, “because in a lot of places they still haven’t been
1 Had the ban improved Sao Paulo’s appearance a few
removed. In Brazil, every time that some new law comes in,
months later?
everybody waits a little to see if it will really be applied and
2 What effects on local culture do people fear will result
2Part seriously controlled, or if it’s just something to fill the
newspapers for a week or two.” from the ban?
3 What do people expect the future of advertising to be like?
In a lot of places, Piqueira says, this has led to the removal of posters
4 What advantages does Augusto Moya see in the ban?
but not the structures on which they were displayed. “It’s a kind of
10 ‘billboard cemetery’. I guess they’re waiting to see if the law will
really last. If the mayor keeps the law for a year or so, people will Writing: Banning advertising
start to remove them and the city will, finally, start to look better.”
Would a ban on outdoor advertising improve the quality of
Already the law has led to some strange discoveries. Because the
life in your city? Write a short essay of 200-250 words.
siting of billboards was unregulated, many poor people readily
accepted cash to have a poster site in their gardens or even in front
of their homes. With their removal, a new city is emerging: “Last
week, on my way to work, | ‘discovered’ a house,” says Piqueira. “It

19
 : Debts, savings and
yestments
“Banks took on too much risk,”
Learning Focus Warm-up says Chancellor
Discussing debt, credit and
the banks’ interest
Talking about opportunities for
Taiwan sinksintorrecession
SI EDLCEERDTERR P DE IIILLBSL ROL IIE RCN
saving and investing money

Tuition feesi0onn the rise

Understanding a negotiation
process
paeOnIin eS
SPSS LE
Participating in negotiations
Rate of inflation. has. risen
Self Study
tope cord high of 6.1%
¢ Understanding negotiations
¢ Noun/verb collocations:
The Bank of ee makes
shock 1.5% interest rate cut
increase your interest
¢ Righting wrongs: reading closely

How could the developments mentioned in the headlines affect you?

Listening: The debt trap

1 What services can you expect from a bank? Enter your thoughts into the mind map.

Exchanging

Safeguarding

Processing What are

secre reer nearer essere esses sse cy
banks for?

Advising on
2 Form word partnerships by matching a verb on the left with the corresponding noun
(combination) on the right.

be entitled to a current account covey living expenses

charge a penalty fee
control living expenses
cover ee a grant
draw up a budget plan
exceed an overdraft facility
grant one’s overdraft limit
open one’s spending

3 Now use some of the expressions to complete the sentences below. You may need to
change some words.

1 For making or receiving regular payments you need to

2 = If you A you know precisely how much money
you need during a month. This will stop you from
, which your bank has offered you.
3 If you take out more money than there is in your bank account without prior agreement, the
bank will
4 Some universities offer special grants for students. Check out the details to find out if you

4 Listen to the radio program Money and more about the problems Ken, a British university 08 a
student, faced when dealing with his personal finance and put the sentences below in
the right order.

Ken went over his overdraft limit within three months.

Ken opened a current account.
Ken didn’t succeed in finding a job.
Ken used the credit card his bank had provided him for free.
Ken’s parents took out a loan from the bank to cover their son’s living expenses.
Ken had also received a grant to pay for his tuition fees.
Ken had to pay interest of over 28% for going over his overdraft limit.
*"
2&0
0
©&
®= Ken gave his credit card back to the bank.
The bank provided Ken with a large, interest-free overdraft facility.
j Ken failed to get help from his parents.

What advice does the student union give people like Ken who have fallen into the debt
trap?

Discussion: The banks’ interest

Do university students in your country face similar problems? How does the financial
situation of students in the U.K. compare to the situation of students in your country?

Can you imagine why banks use strategies such as those described in the radio
program? In what way does it make a difference if you are a student, a private customer
with a regular income or a business?
 _ investments

Diversity

Household
savings rate =| Savings habits across cultures
The rate is calculated as a 1 What do you think are the reasons behind the differences in savings behavior?
| percentage of the disposable
Experts explain Germany’s high savings rate by pointing to the country’s nightmarish ;
income of private households.
experience with two mega-devaluations of its currency in the 20" century and the desire =¢
It is the simplest indicator
most people have to avoid risks by all means. 2
for illustrating the spending
_ behavior of societies. In your opinion, how much do the following factors contribute to certain forms of savings
habits?
France |e property ownership ¢ the availability of a public safety net
Germany * a positive or negative economic climate e free education
U.K. * a positive attitude towards the future e adeveloped consumer credit system

What other factors could play a role in people’s savings habits?

Do the differences in savings behavior explain why American and British students
Source: www.oecd.org
are less worried about accumulating debts of $/£ 23,000 on average during their
* the figures show the average rate of studies?
the years 2000 to 2008

Reading: Types of investments

Look at the words in the left-hand margin and classify them according to the
correct category.

Costs of asset
Types of assets Investment criteria
management

yiela

2 Now use these expressions to complete the sentences below.

1 This type of timber investment fund is too risky, although it will produce a high yiela.
2 FashionEx has just new shares.
3 Government bonds achieve steady and predictable
4 Shares can be turned into cash easily, therefore they are characterized as
5 Because we'd like to keep you as our customer, we'll the extra charges.
6 | won't invest in shares, |’ll keep my money in my savings account and forgo the extra

An asset refers to anything of value

owned by a company or an 7 The indicator for shares combines the share price, the dividend paid and any
individual. It is often associated gains or losses due to exchange rate fluctuations.
with the expressions above. 8 investment, which is the buying and selling of shares of stock and funds has
76 become part of the American way of life.
3 Read about the following types of investments and decide for which type(s) of
investor(s) the examples would be most suitable. Then choose one type of ‘The conservative investor
Conservative investors want a
investment and write down its strengths and weaknesses. Present your results safe
portfolio that will grow in value but does
in class. Not require constant attention. ‘They try
to
avoid the risk of losing their original
investment. If conservative investors
rship ofacompany. Ordinary shares have
invest
By purchasing shares the investor gets part-owners
| 4 ate in stocks they often choose blue chips
compa nys ee aes
fared ability which means that in case of the Oiie
because these tend to change value more
be bought and so
limited to the value of theirir s shares. Shares can
shareholders isis limi slowly than other types of stock.
1g s
change in 2
stock Se
indexes nation
onay
stock exchange. Investors need to keep a breast of ck
Their income is usually low and/or
to make wise decisio ns. The mo
i ‘onal stock markets in order unstable and their investment time frame
ial Average (DJIA) and the Japanese Nikkei
; Peicnse iideres are the U.S. Dow Jones Industr the European
is between two and five years. Investors
of global organizations are
BIDS) Rh Average. The most important indexes ;
often tend to choose this option when they
an Standa rd e Poor 5 '
500 index. .
TSE 100 and the Americi are approaching retirement or paying offa
meetin g and a stake in the compan ys
He shareholder has voting rights at the annual student loan,
earnings by receivi ivi nd on his or h er shares.
ivi ng a divide Who are they? Average and ordinary
|B on HE ciaeaiee people, such as small business owners as
well as blue and white-collar employees.
Bonds are issued by local and national
governments, financial institutions and large
companies to raise money in order
to finance a variety of activities or projec
are bought by private or institutional invest ts. They
ors who usually receive fixed interest The moderate investor
to take a
payme
ne nts, generall y twice a year, in
return for providing capital to the issuer Moderate investors are prepared
their
onds. The investors get their money back of the
when the bon d reaches its maturity date. risk with a certain percentage of
ase their pote ntia la
They are a form of long-term investment
and particular gover investment to incre
nment bonds like the
er retur ns. They inves t in high er es
American Treasuries (T-Bonds), the
British Gilts and The German Bunds are high
buffer t :
considered to be virtually risk-free. Bonds are traded securities or property, but often
act as brokers. Company bonds offer a highe
by financial institutions which
ility of such high er risk inve stments |y
r yield to compensate for the risk of volat
conservative
bankruptcy. Therefore, making a certain percentage of
have ae
types of investment. They often
bond rating systems by credit agencies like Standard eo Poor %
help investors to determine the company
m they trust . their
investment expert who
S credit risk.

is fairl y secur e and stabl e and their

income
een six and
investment time frame is betw
3 Futures ten years.
or green
Futures or futures contracts are agreements between two parties to sell or buy an asset at Who are they? Novice investors
a predetermined date and price. Assets could be commodities products, such as like the self -emp loye d or
horn investors
industrial or precious metal and oil. In other words, when buying a futures contract, professional employees.
the investor agrees to buy something at a fixed date and price even though the seller has
not produced it yet.
Futures can be used to hedge or to speculate on the price movement ofthe underlying
asset. For example, a coffee producer could sell futures to secure a certain price and
reduce risk. This is called hedging. On the other hand, the speculator will try to profit
from the risk by buying and selling their fucures in anticipation of rising or declining
prices. Other types of futures are financial futures, which are based on financial assets
such as currencies, interest rates and stocks.

Commercial paper (CP)

Commercial paper is an unsecure d short-
term loan issued by a company. Unsecured
means that the loan is not guarantee d by
the company’s assets. As a result, often only top-
or purchases a CP at less than face
rated companies are able to find buyers. The invest ria s the ge es
full amoun t (face
of the CP) and receive
value (the nominal value stated by the issuer
differe nce i. the sat a ioe a Papas a ae
value) at maturity. The ;
est received on the inves 3
i j i
in commercial
ee, ee eee Therefore, smaller investors can only invest
paper indirectly through money market funds. The contrarian investor
Contrarian investors always question the
conventional wisdom of investing. Their
Unit trusts approach is to buy investments which are not
Unit trusts are offered by investment trusts, which pool the funds of small investors. preferred by the majority of investors and vice
Unit trusts are managed by fund managers, who invest the fund’s capital in order to versa. Their philosophy is that stock which is
achieve capital gains and income for the fund’s investors. The commission on unit currently undervalued by the markets will
trusts can vary widely depending on the company and the style of the fund. Each unit rebound sooner or later, So, for example, they
trust has its own strategy, so that investors are able to find a fund which best suits their often hold on to their investments even when
objectives. There are four main varieties of unit trusts: equity funds (stocks), fixed- they continue to fall in value.
income funds (bonds), money-market funds and property funds. Who are they? Professionals such as doctors,
and professional traders.
77
 be se Se ee
Debts, savings and
investments | a ee

Business Skills

Negotiating: Achieving a good deal

1 Think of a negotiation between a team of buyers and a team of sellers. Which of the
following statements do you agree with?
A good negotiator has
to be a good listener.
A good negotiator tries
to avoid conflict.

Both parties have to

Successful negotiators
Successful negotiating ensure that an agreement
study the market and
Each party has to ends in a “win-win” is reached at the end.
the other party’s situation
prepare a variety of outcome. in advance.
options beforehand.

or 2 Deborah Besser founded a start-up just shortly after her graduation and within only four
years she has developed it into a very successful business. Listen to her appointment
with a financial advisor of her principal bank to talk about investment opportunities.

While you are listening mark the following statements true or false:
true false
The investment should guarantee her an income when she is old.
The investment advisor offers her an investment fund which suits her adventurous character.
The fund on offer is an international fund investing mainly in emerging markets.
Deborah will be charged three sets of fees if she buys the fund offered.
Deborah considers a fixed deposit account to be a suitable investment.
=
WN The return on
aOoaPhrP commercial paper is higher than that on a fixed deposit account.

‘ 3 Listen to Deborah’s conversation with the bank manager again and summarize what the
parties have agreed on.

4 Discuss the following questions:

1 Consider Deborah’s situation and decide if she

made the right investment choices.
2 An outsider could get the impression that
haggling over such small percentage points on
the extra charges isn’t worth the effort. Would
|@ Linking offers to conditions you agree?

3 Have a look at the above statements about

Skills successful negotiating again. Which of these
statements, would you say, apply to the
negotiation between Deborah and the bank
advisor?

78
 Business Skills

Negotiating: The key stages | think | could make an exception ...

| think we have a deal.
1 Negotiations can go through four stages: | can’t go below 1.25%

* discussion e What do you have in mind?

* proposals ¢ Let me summarize what we have

agreed on...
° bargaining
¢ | think you should be offering me better
* reaching an agreement
conditions.
On the right you will find phrases used when negotiating. Insert each phrase into the ¢ |’m sorry but that’s not good enough.
mind map. ¢ Alright, but only under the condition
that ...
2 Listen again. Identify the different stages of the negotiation and check that you have ¢ What do you want to invest for?
completed the grid correctly. Compare your results in class. ¢ | could offer you ...
¢ What about ...?

Stage Purpose Phrase

Checking what
the other party
wants

Negotiating

Making Se. ee
suggestions :

Firm

Compromising

Confrontational

Summarizing

Timeline
 Debts, Savings ana
investments
Business Skills

Negotiating: Getting what you need

Successful negotiating is not about pushing through your ideas but about taking both
your and your counterpart’s interests into account. Spend a few moments playing a new
version of The Harvard Orange game, then discuss your results in class.

Situation: There’s only one orange left in your residence hall and no chance of buying another one
anywhere. Both you and your flatmate feel you need the orange and have good reasons for thinking
SO.

wp Student
B page 126

You need the orange to bake a cake for a friend’s graduation party. You can’t do it
with anything other than the orange because the skin of one whole orange is
essential for the success of the recipe. What is more, your friend is expecting your
A famous
Student orange cake.

Role-play: Ne q iate your dream car

Student A has been thinking about buying a car for some time. Now a friend of a friend has offered to
sell his car for $5,000. Student A has decided to talk to the bank about a standard loan to buy the car.
Student B is the bank advisor.
wp Student Apage 126

Study your role card. Work out your objectives and any concessions you could make.
Then role-play the negotiation.

You are the bank advisor. Your bank can grant loans to students who have no or no regular
mo income only under the following conditions:
4s
Cc
o 1 the borrower names a guarantor (a guarantee arrangement)
se)te
2 the borrower owns assets which can serve as a guarantee (a pledging arrangement)
0)
Your objectives:
* to sell a pledging arrangement based on flexible borrowing rates Ec: Bargaining
* to make small concession on fixed borrowing rates only if another
bank product is purchased Coul i
ould you give i
me an idea of your Pa ...7ie
What do you suggest | do?
What you can offer: How important is it for you that ...?
¢ a fixed borrowing rate of 7% If | were in your position | would also ...
* a flexible borrowing rate of 5% Our experts say that ...
* repayment period of three to five years Do you feel you can accept ...?
ii:
The bank experts expect interest rates to rise to 10% for loans and 8% for
savings in the next two years.

80
 i

ae.
Com an e-r=1- GBI Bank is Europe’s leading sustainable bank with its
p y es head office in the U.K. and branches in Sweden,
seg oe Germany and Italy. It is a bank which prides itself on
ee its transparency, and which lends money only to
organizations which create real social, environmental
and cultural value, such as charities, social
businesses, community projects and environmental
initiatives. Unlike other financial organizations which
use negative lending criteria (i.e. they avoid
businesses involved in child labor, etc.), GB/ only
invests In companies which actively pursue social,
environmental and cultural goals.
Nonetheless, the bank offers the full range of
services of a normal commercial bank: savings
accounts for individual customers, current accounts
for social ventures and charities, various forms of
business financing and a whole range of green
investment funds.
GBI is not quoted on any stock exchange. Growth in
its share prices has developed as a result of the
bank’s success. In fact, the bank didn’t suffer during
the financial crisis. On the contrary, the bank’s
balance sheet grew by 25% last year because
businesses and individual savers were looking for an
ethical alternative they knew they could trust. Since
then GB/ has set up strategic alliances with like-
minded banks in other European countries.
Recently the bank was approached by Acosta Real,
one of the larger privately-owned banks in Brazil, and
was Offered a 25% stake in its business in exchange
for GBI Bank’s know-how and credibility.
Three years ago Acosta Rea/ started to turn the
long-established bank into a green bank.
Although praised at the beginning for its initiative in
offering socio-environmentally responsible banking
products, it has more or less failed to establish itself
as an ethical bank on the Brazilian market and has
been losing customers rapidly.
Analysts have identified two major reasons, the
bank had failed in its auditing procedures on the
grounds of misinformation or forged company reports
so often that NGOs started questioning Acosta Real’s
assessment procedures and stopped acknowledging
the bank’s commitment to social responsibility.
Moreover, the micro-credit market didn’t live up to its
promises although the bank had invested a lot of
money to overcome the skepticism felt by small
business owners in Brazil’s shanty towns.
 Web research: Finding the 20 Mortgages

right bank Buying a home under sharia usually involves one of two types of
Home Purchase Plans. Under an ijara or lease option, the bank buys
If you were going to study at a foreign university next the property and the client pays rent to the bank. At the end of the
semester it would be a good idea to open a current account term, the bank hands the ownership of the property over to the
for the time you were there. 25 client. Alternatively, a murabha or partnership approach means the
Decide on a country and a town you would be interested in, bank buys the property with the client who then makes regular
payments to gradually assume ownership. In both cases, the bank
choose two or three banks in this country and find out the
simply adds its costs to the price of the property which the client
conditions for holding a current account.
pays back as part of the whole.
Report back on your research in next week’s class.
30 Both options could prove interesting propositions in an uncertain
economic climate, regardless of your religious inclination, says Peter
Reading: Islamic finance makes a McGahan ofthe independent financial adviser Worldwide Financial
Planning. “These approaches could mean that a home owner may not
move into the mainstream have to worry about the uncertainty of interest rates. You know
ay, ne TOU) MG exactly how much you will need to regularly budget and how much
your property will cost you in the end.” But, he adds, there are
potential pitfalls. “Bear in mind that, particularly with murabha, you
eee are paying a higher price for a property in a falling market. You are
increasing your risk of negative equity, and this could mean you will
40 be unable to move again in the short term.”

Current accounts and savings

An Islamic current account will give you the same benefits as a

standard account when it comes to cheque books, debit cards, access
to ATMs, online banking and regular statements. But no interest is
45 paid on balances or charged on overdrafts, so banks will go after you
on borrowing fees. You will often have to keep a significant amount
in the account to avoid being charged. The minimum input for
savings accounts can be far higher than other products and the
“profit” rate - generated from sale and lease schemes rather than
interest-based borrowing - is rarely market-leading.

Read the following text and find out about the differences Investments

between conventional and Islamic banking. Islamic investment products are booming and even the U.K.
Government is rumored to be considering a sukuk, or sharia-
There has been a substantial Muslim community in the U.K. for at compliant bond. Conventional Western-style bonds offer investors
least 300 years, so U.K. financial companies may have been a little 55 interest payments on the sums invested. Sukuk bonds represent
slow to cater for their monetary needs. But mainstream financial partial ownership of the underlying asset. Because the focus is on
groups are quickly waking up to the fact that there are some 2 real assets, sukuk bonds protect investors from gearing or leverage -
million Muslims in the U.K. whose financial needs must be met, as when the bond provider borrows against it to try to boost returns.
well as many more non-Muslims who agree with the ethics promoted
by Islamic law, or sharia. If you are looking for an easy list of what sharia does and does not
60 mean for your finances, there is no straightforward answer. For most
Sharia governs, among other things, a Muslim’s economic and social
Muslims, the Koran and Sunna, the holy books, are open to
life, dictating how believers should conduct themselves. It forbids interpretation. Although U.K-domiciled financial companies are
10 certain activities and transactions: those involving alcohol and pork- regulated in their business dealings by the Financial Services
related products, but also armaments, gambling, pornography and
Authority, they are guided in their sharia compliance by various
other activities deemed socially detrimental.
scholars. This means that there is no absolute definition of what is
Basically, Islam places no intrinsic value on money, so earning or and what is not considered sharia-compliant personal finance. So it’s
paying interest (riba) is prohibited - ruling out the majority of important to check each providers’ processes before signing up.
traditional mortgages, investments, savings and insurance products.
adapted from The Independent
So financial providers have had to do some creative thinking. The
result, however, has been the launch of a wealth of new interesting
and innovative products - some of which are now starting to capture
the attention of non-Muslims as well.

82
 So
LE
RCO
TRLLL
BELVEDERE

AOE
LSA
LEE
E
HERS

Below you will find a list of features which describe 3 Have another look at the text on page 82 and match the
conventional or Islamic banking. Use the grid to assign the terms on the left with their definitions on the right.
statements to the corresponding type of bank.
a_ sth owned, especially land and
‘ buildings, etc.
¢ do not pay interest on current accounts
* grant investors partial ownership on real assets 1 prohibited b_ illegal, formally forbidden

a sie s ee 3 2 ownership Cc in accordance with rules or standards

* share profits with holders of saving accounts
* pay interest on savings and current accounts 3 property dan official document that lists the
* charge interest on overdrafts, loans and mortgages ae amounts of money paid into or taken
out of a bank account
5 statement
e any property or possession regarded
Conventional banks Islamic banks 6 compliant as having value in meeting debts,
commitments, etc.

f legal possession of sth.

4 Choose a non-Muslim country to research. Would Islamic

banking provide retail banks there with an opportunity to
open up new markets? Argue your case in a short
paragraph.

2 Which bank products and services from Islamic banks

would be particularly interesting for non-Muslims?

83
 Learning Focus Warm-up
¢ Describing the structure of
organizations
¢ Describing one’s position and
role in an organization Evan Williams and Biz
Writing email invitations to a Stone, two of Twitter's Sitting Bull
meeting founders
All of these
Participating in a meeting people are or were leaders.
Chairing a meeting How would you describe the organizations
they lead or led? What do you know about
Anita Roddick their organizational styles? Mahatma Gandhi
Self Study a

¢ Departments of a company
¢ Reported speech: what the boss
said
¢ Opening and closing a meeting
¢ The importance of minutes
General George W. Casey
Video Meeting —

Once again the Exhilarate intern Listening: Spider and starfish organizations
gets thrown in at the deep end and
has to chair a difficult meeting. Can 1 Would you say the following features are characteristic of centralized or decentralized
the team find solutions together? organizations? Tick the appropriate box in the grid.

centralized decentralized both neither

ambiguity
anarchy
CEO
coercive power
command
control
distributed power
flexibility
headquarters
hierarchy
leader
leadership by example
norms
open structure
rules
shared power
84
 2 Listen to an excerpt from a book comparing centralized and decentralized 10
organizations. Compare your answers on page 84 with the information you hear.

While writing their best-selling book, The Starfish and the Spider: the Unstoppable Power of
Leaderless Organizations, Ori Brafman and Rod Beckstrom interviewed the anthropologist
Tom Nevins, a specialist in the history of native American peoples. He explained how the
Spanish invaders had been able to defeat the Aztec empire, destroying the capital of
Tenochtitlan, while never succeeding in subduing another people, the Apaches.

3 Consider the following types of organizations. How much centralization/

decentralization is useful or necessary in each? Discuss this in class.

a university | an NGO | a self-help organization | a car manufacturer | an army

Reading: The structure of organizations

1 Discuss the following questions and write down your answers:

1 What is the purpose of an organization?

2 How do the founders of an organization decide which structure they will use? “i
3 What do you expect companies to look like in 10 or 20 years?

2 Read the text below and answer these questions:

1 What reasons are given for creating an organizational structure?

2 Why would a company change its organizational structure?
3 What prediction does the author make about the structure of organizations in the future?

—————

See eee atons: pasta sesept and Tutire During the twentieth century, the United States witnessed the
Every organization has been established for a purpose and 35 growth of large centralized business organizations. Many of
therefore has, implicitly or explicitly, a mission. How effectively these had heavily bureaucratic structures, with the decision-
the mission will be accomplished depends to a large extent on making process concentrated in the hands of the CEO and the
the way an organization is structured. . This type of company has the advantage of
5 Two crucial factors contribute to the structure of an organization: being able to co-ordinate highly specialized processes. On the
‘environment’ - by which we mean external forces such as 40 other hand, there are several inherent disadvantages. For
markets and government policies — and the complexity of the example, the CEO, because of the size of tie peeks
work to be done. The structure guarantees that there are formal complexity of its operations, mayslose touche Wii ie ey
channels of communication and official ASCOUNEABIIIEY for tasks. business. As a result of the impersonality, feelings of liéhablon
10 It also makes it possibletodelegate decision making. may develop among the workforce. And finally, there is the
eas ; : ae a, 45 difficulty this type of organization has in adjusting to change.
We can distinguish two basic types of differentiation within an ; ae ey
organization: horizontal and vertical. Vertical differentiation Decentralization implies that authority is passed down the levels
divides work according to level of authority, with the higher levels to the employees who perform the work. Because decision
exercising more authority over the units or employees below making is decentralized, the organization has the power to react
15 them. Generally an organization has only one vertical layer, : quickly to changing local conditions and demands. This can
which may be divided up into numerous horizontalffigrs! 50 result in a sense of empowerment among the employees. The
‘ : Sine b k b most extreme form of decentralization are the P2P (peer to peer)
Ce Cea ie ve Bs ee ee : networks on the internet which permit the direct transfer of files.
performed Is split into operational tasks. Depending on the leve pcos 5 ;
Of course, the reality S ee and es ce we al
in the organization, the unit may be a division, a department or
20 an individual. Such units are represented by rectangles in an many Ofganizalions Witte
organization chart or organigram 55 features. One of the earliest large companies to incorporate
Q ee 5 ee “on decentralized elements was Toyota, which @evelved information-
Organizations may be either tall or flat. A tall organization has a gathering and decision-making to the worker teams in its
large number oy panaseiiere oe Relay few peoples manufacturing plants. A more recent example is the online
each horizontal level, while ina flat organization there are few auction house eBay. eBay uses decentralized user ratings but
25 horizontal tiers but each tier contains a relatively large number 60. has introduced the online payment service PayPal to provide the
Giana see accoumtabie Te each superior. necessary controls for secure money transfers.
Tees ieletule ee OTe) SPREE) ae Be It is interesting to speculate on the organizational forms we will
time;asthe business environment changes. For example, » the see emerging as the twenty-first century unfolds, facilitated by
early 1980s, Jack Welch, a former CEO of General Electric, split internet and mobile communications technologies. We can
30 up the highly centralized company into independently acting 65 expect large, previously centralized organizations to introduce
divisions. In the late 1980s, Edgar Woolard of DuPont streamlined — more and more decentralized elements. We are also likely to
decision-making by eliminating the Executive Committee and witness a/proliferationofP2P networks.
requiring that department managers report directly to the CEO.
cease
FSIS
 hee: ae
Company structure

3 Have another look at the text on page 85 and match the terms on the left with their
|@ Comparing and contrasting: ne .
types of organization definitions on the right.
Grammar oa .
mT athe circumstances in which an activity takes place
Oe - b the people in a company who make decisions on how the
2 environment ,
3 tier company is to be run
| ; c_ the feeling of not belonging to a particular group
4 board of directors ; :
i i d asudden increase in the number of something
re Bee e the state of being responsible for something
S ane He f to transfer power from a central authority to a lower level
7 proliferation
g one of several levels

4 Using the categories in the textbook excerpt, describe the organizational structure
represented by each of the diagrams.

oO Oo c ay .

tet nnn
I

d
_ Organization and culture a Egalitarian
In different parts of the world we find
4 different organizational types and different pty!
corporate cultures. i
» In his now famous book Riding the Waves of
3 Culture, the cultural researcher Fons Trompenaars
created four metaphors for corporate cultures, Ina \
“nutshell, he says that corporate cultures and their
F national cultures often fit together. In other words,
y when studying country or regional cultures, we can
learn a great deal about how companies are
organized there and how they might like to work. q Person
Look at the diagram on the right.
Read the brief definitions of each of the main Power-oriented culture
types and answer the questions below.
Fay iffel Tower:
1 What is the connection between cultureand | § provides close, personal, an impersonal, bureaucratic
iE company type? ae face-to-face contacts. The division of labor according to
‘ 2 What type of organizational structure do you > boss is respected for his/her function.
think is traditional in your country? Does this experience and authority.
differ from branch to branch?
3 Which metaphor do you associate with the
following countries: China, U.S, Japan, Italy? Hierarchical

(Trompenaars & Hampden-Turner)

86
 Discussion: Talking about organigrams
1 Have a look at the organization chart and complete the text below with the correct form
of the words from the box.

Australia Asia North America

Latin America Europe
Executive VP Executive VP Executive VP:
: Executive VP Executive VP
Tom Stevenson

Sales and
Research and
Marketing Production Finance
Development
VP: Ted Howard

Marketing
Product Marketing Sales
Communications
Director: Jack Pelosi Director: Hank Farr
Director: Sheiila Stern

Administration

Creative ~* Shows and

Services Events Market Research
Consumer
Sales

Positioning and
Pricing
accountable to
division
report to
responsible for
| used to work for a company which manufactured personal care and food products. It operated on
subordinate
a global scale, WIth a in each of the five continents. The operations in each
unit
division were further split into service mn , which were further divided up into
departments. | worked in the Sales and Marketing department and Jack
PEO WEBS «ces Sououee Market research and had four who
assisted me in my job. | never met Ted Howard, but | know he was the |@ Positions in company hierarchy
executive vice-president Tom Stevenson. Tom, in charge of the North American division, regarded
himself as a charismatic leader, but his employees thought he was arrogant, and Stevenson and Vocabularv
Howard didn’t like each other very much.

2 Think of an organization in which you have been involved or a company for which you
have worked. What was its structure and what role did you play in it? If possible, draw a
diagram representing the structure of the organization.

87
 ~ Company structure

Business Skills

Meetings: Getting ready

1 Think of a meeting of a project group at university. Which of the following statements do
you agree with?
Meetings are an
Most meetings are effective method of
a waste of time. finding solutions.

Meetings
Meetings improve the improve the
Meetings can be
working environment. outcome of a
a good opportunity to
Meetings are project.
get to know people
boring.
better.

2 The following emails are all invitations to a meeting. Write the correct meeting type in
the subject line.

1 annual meeting 3 kick-off meeting

2 team meeting 4 progress meeting

From: [email protected] - From: [email protected]

To: Mira Hafsett; Jane Goodall; Simon Fynn To: Group Prowind
Subject: Subject:

Dear all, Dear all,

After much preliminary discussion about our project, we We are happy to see that the first phase of Project
would like to invite you to our first face-to-face meeting Windpower has been completed. It is now time to meet to
on Wednesday of next week, May 24. We are looking compare Our experience and make plans for the next
forward to getting to know all of you personally and phase. We would like to schedule a meeting for Monday,
setting up a timetable for our work together. You will find September 15 and hope that all of you will be able to
a detailed agenda in the attachment. come.
The meeting will take place at our headquarters in New Please give me a ring at 743-85331 to confirm your
Haven. Our receptionist will direct you to our meeting attendance.
room.
Best regards,
Please don’t hesitate to call me at 682-51437, should you
Pamela Jones
have any questions.

Sincerely,
Mathew Watson From: [email protected] 13
To: [undisclosed-recipients] |
Subject:
From: [email protected]
To: Kathy Hope; John Taylor; Sam Kay Dear Shareholders,
Subject:
This is to remind you that our yearly meeting will be held
on Thursday, September 17 at 10:00 a.m. The venue is
Hi guys,
the Palm Room of the Plaza Hotel in Palomina Beach. We
It’s that time of the month again. Can we get together hope that as many of our shareholders as possible will be
early on Friday afternoon, just long enough so that each able to attend.
of you can update us on any market changes since our A detailed agenda is attached.
last meeting?
Sincerely yours,
Adam Caulfield
Chairman

3 Which of the invitations above includes an agenda? What is the purpose of an agenda
and what information should it contain? When is an agenda not necessary?
88
 Business Skills

Mee tings: Acting as the chair

|@ Opening and closing a meeting
1 A formal meeting involves a chairperson. Which of the following duties should a
chairperson perform?
Skills
welcoming the participants
taking the minutes
apologizing for an absent participant
asking for approval of the minutes of the previous meeting
explaining decisions to the participants
pushing through their own ideas
invol ving each participant
settling conflicts
summarizing the results of the meeting
setti ng the date for the next meeting

2 Sandham & Perry is a British manufacturer of hygiene and

beauty products operating worldwide. Its present CEO,
Margaret Perry, called a meeting of its regional vice-presidents
at the headquarters in London. This is the agenda that was sent
to the participants. Discuss the main features of the agenda.

SANDHAM & PERRY

Strategy Meeting, S&P Headquarters, London

M arch 10

Participants:
argaret Perry, CEO (Chair)
Susan Quest, Persona! Assistant (minutes)
Jo hn Hockney, President of the Board
¢ yde Ellis, Regional VP North America
Fernando Gonzalez, Regional VP Latin America
Anita Gupta, Regional VP South Asia
Yee Fang, Regional VP East Asia
Jo rg Kramer, Regional VP Western Europe
Igor Smirnov, Regional VP Eastern Europe

Item Time slot

1 09.00-9.45 ¢ Welcome
e Statement from the President of the Board

09.45 - 11.00 ¢ Review of last year’s financial results

11.00 - 11.20 Coffee break

11.20 - 13.00 ¢ Summary of consultant’s report

13.00 - 14.00 Break for lunch

14.00 - 15.30 ¢ Restructuring measures

15.30 - 16.00 Break for coffee

16.00 - 17.00 ¢ Redefining of VP roles

17.00- 17.30 ¢ AOB

17.30 ¢ Date and time of next meeting

¢ Adjournment

89
 Company structure

Business Skills

a 3 Listen to the first part of the meeting: which of a chairperson’s duties did the CEO
perform while opening the meeting?

12 @ 4 Listen to the second part of the meeting and answer the questions.

¢ What change is to be made in the company?

¢ What problem arises among the participants?
¢ How does the chair deal with it?

136 , 5 Nowlisten to the last part.

¢ How does the chair end the meeting?
¢ Which of the points in the agenda did you hear covered in the meeting?

Role-play: Committee work at

university
Divide up into groups of six. Decide who will take the minutes. The other five
students will read their role cards. Then, in groups of five, role-play the
tin :
Agenda for rhe meesd situation, while the sixth person takes the minutes.

pate of the Open House > Student

B page 127, Student C page 130, Student
D page 136, Student E page 138
e Da
e Events to be included Situation: The Business Studies department of Winstead Metropolitan University has
a problem: in recent years enrollments have been falling. The dean thinks one reason
e Financing of the Open
for this may be that prospective students are simply not well enough informed about
House
the university department. There are several university-level institutions - including a
e AOB technical university, a school of nursing, an art academy and a school of music - in
the region, some of which have been more successful in marketing their programs. In
view of this, the department has decided to schedule an Open House for secondary
school students who are likely to continue to university after their schooHleaving
exams. The student union has volunteered to organize the event. A committee is now
meeting to discuss details.

Ec: Participating in meetings

, < President of the Student Union
We’re here today to discuss ... ra wan : :
Pe ever n ae mht & Your job is to open and close the meeting and be sure that the committee comes to
e Tirst | erdge Sims F F 5
Sweatt 2 AS a conclusion. You realize that the department attaches a great deal of importance to :
Let’s keep in mind that ... P= ; : : < : :
ee ”) this event, as if enrollments continue to sink, the university will: receive
: :
less funding
Ue os : : beeen
: and everybody will suffer. For this reason, it is important to make the Open House a ;
Can | come in here, please? ‘
‘ ‘ d : :
ie Rcat, iene, ot success. You will also have to deal with any conflicts that arise and make sure that f
WwW - en
, : 2 : each participant has a say. i
| don’t quite see what you’re getting at ... f
Exactly how is that going to work?
'm afraid | missed that. Would you mind Follow-up: :
going over it again? Write an email to the Dean of the Business Studies department at Winstead :
We’re running short of time ... Metropolitan briefly summarizing the outcome of the meeting. Tell him/her '
that you are attaching the minutes.

90
a Compa ny Case m =Rowlings is an American engineering company long
known for its innovative products. In recent years it
has undergone a radical restructuring process and
now operates virtually as a single business unit
consisting of platform teams. There is a strong
teamwork ethic and within the upper layer of
management, i.e. among the vice-presidents, a
matrix structure is used. The company is proud of
its flexibility and speed of response and is known for
its history of continuous product improvement.
Several years ago Rowlings’ CEO was approached by
the CEO of a prestigious German engineering firm,
Ludwig Helligmann. Helligmann wanted to explore the
possibilities of a merger, which Rowlings at that time
was reluctant to enter. In recent years, however, the
American company has realized that it will have
trouble penetrating international markets on its own
and is now interested in the synergies that such a
merger would provide. Helligmann is confident that
A marriage of convenience with Rowlings’ help it would be able to expand its
manufacturing and sales in the U.S.
Work in groups of three. As board members of Helligmann is a traditional German company
the newly formed company, design a plan to organized into 20 autonomous business units, each of
reduce friction between employees of the two which operates with a strict line of authority. It has a
companies inthe first year after the merger. rigid corporate hierarchy, and its corporate culture is
Present your plan to the class marked by extreme formality. In contrast to Rowlings,
it is usual to use titles and last names. On the whole,
* What stereotypes are the employees of each the atmosphere at Helligmann is considerably more
company likely to have about the other? conservative than at the American company.
Each of the companies would have an equal
What actual problems might emerge as a
financial stake in the merger.
result of the different organizational
The two companies are aware of their differences.
structures?
Nonetheless, each realizes that it could profit greatly
What cultural problems would you anticipate? _ from the merger.
Matrix structure: A type of organization
permitting employees on special projects to
report not just to a superior on the vertical
dimension but also to superiors in other
departments, i.e. diagonally.
 Web research: Organizations and _ CEO: Good morning, everybody. Can we get started? It’s nice to see
you all here. | know that you’ve travelled long distances to take part
their staff in this meeting and | hope that your jet lag isn’t too severe. I’ve
asked you to come to our headquarters to discuss our restructuring
Investigate the structure of your university. If necessary,
plans instead of using our usual teleconferencing procedure because,
have a look at your university website or ask an instructor given the importance of the issue, person-to-person interaction is
or member of administration. Share your findings in class. vital. I’m afraid I have to apologize for Anita Gupta. Her plane was
delayed in Mumbai due to the monsoon, but she should be arriving
Do workers have any representation in company decisions
later today.
in your country?
10 As you can see, my personal assistant, Susan Quest will be taking
Use the internet to find out about models of representation the minutes. I think we can expect this first session to take until
of workers in different countries. lunch at 1 p.m. We’ll be breaking for coffee around 11 o’clock.
OK I think you are all familiar with the agenda, as Susan sent it out
several days ago.
The following organizations are useful sources of information:
Unfortunately, we’ll have to skip the first item, as Steven Alden is
European Foundation for the Improvement of Living and Working ill. We’ll start with a brief report from each of the regional
Conditions ¢ International Labor Organization « European Trade Union vice-presidents. Yee Fang, you have the biggest market over there in
Confederation (ETUC) China. Could we give you the floor ...?

= CEO: And now I’d like to come to the central item on the agenda. This
Be prepared to share your findings in class. ' is our plan for global restructuring.
Sorry, could I have your attention please? There will be plenty of time
for your questions and comments later. As you know, since 1985
Meetings: Knowing what to say we've been operating using our regional structure. Each one of you
The Sandham & Perry vice-presidents has been in charge of his or her own division and
strategy meeting was one NmOo reporting directly to me. However, in recent years developments in
new markets have led us to believe that this design is simply not
at which the participants
flexible enough for today’s dynamic business environment. For that
were physically present.
reason the board has decided to implement a radical new design to
A conference call requires
improve the speed of operations. We now want to introduce GBUs -
different behavior from 30 that is to say, general business units - which means we will be
the chairperson and organizing our product supply by product category rather than by
the participants. geography. If you look at the handout, you can see that in the new
Write a short paragraph structure there are seven new ...
explaining how they Igor: Please, I’m sorry, but I don’t see any necessity for the
could differ. restructuring ...

Clyde: Igor, please let Margaret finish ...

Going over the audioscript of the Sandham & Perry meeting,
find the phrases for the following: Fernando: |’m with Igor. | don’t see the point in a new organization
either. The present structure has been working perfectly well.
Calling the meeting to order
Jorg: No, you’re wrong about that. Some divisions are well run and
Saying when the coffee break is
40 others are not.
Saying you'll start with the second point on the agenda
Fernando: Are you implying that some of us are not doing our job?
Saying (...) has permission to speak Yee Fang: I realize this is a delicate question, Margaret, but I don’t
Calling the participants to order... quite see where we’re going to be coming in with the new structure.
Referring to the handout
Igor: Could I suggest that we wait until Anita arrives to discuss this?
Asking the participants to speak one after the other
It’s such an important issue that it shouldn’t be dealt with without her.

Saying how much you’ve accomplished (/diom) CEO: Alright, could | have your attention please? I know all of you
have a valuable contribution to make. Let’s take it by turns. Yee Fang,
| believe you had a question ... and after that we’ll hear from Igor ...
Summing up the discussion
Finishing the meeting _ CEO: Well, I think we've covered quite a lot of territory for today. To
=b
recap briefly, we've had a look at the new organizational design and I
think we’ve all agreed that the new structure will provide us with

92
 much more flexibility, and hopefully, higher profits. We’ve also
2 Choose one of the following quotations and write a
talked about your new roles, and I think that all of you are satisfied
paragraph commenting on the ideas in it. Model your
that there will be an important one for each of you in the structure. paragraph on the one the student wrote.
55 As to the next meeting, I think we should see each other again
around the middle of next year to discuss the progress we’re Now a business, in my way of thinking, is not a machine. It is a
making. Susan will be in touch with you on that. collection of people who are brought together to do work and
Well, it’s been a long day, but I think we’ve accomplished a lot. I’d not to write letters to one another. It is not necessary for any
like to close the official part of our meeting. I know you’re all tired, one department to know what any other department is doing.
60 but we’ve booked a table at a fantastic fish restaurant and I’m lf a man is doing his work, he will not have time to take up any
looking forward to having dinner with you. other work. It is the business of those who plan the entire
It’s five now. I’ve ordered a limousine to pick you up at your hotel at work to see that all of the departments are working properly
seven. And so ... see you this evening! toward the same end. It is not necessary to have meetings to
establish good feeling between individuals or departments ...
Henry Ford, U.S. automobile industrialist (1863-1947)
Writing: Expressing a point of view

Management is nothing more than motivating other people. People are definitely a company’s greatest asset. It doesn’t
Lee lacocca, former chairman of Chrys/er make any difference whether the product is cars or cosmetics.
A company is only as good as the people it keeps.
A student has expressed her opinion of this statement in Mary Kay Ash, Mary Kay /ndustries

pany’s Today, a skilled manager does more than the owner. And
understand a com
ms to bE Fe s. S) Ana
\) The author see fuanci al sta tem ent owners fight each other to get the skilled managers.
only ski
suggesting that the Sinally, Managej rs
mus t be
Mikhail Khodorkovsky, former CEO of the Russian petroleum company Yukos
r nee ds is the SO havnt
that a manage good COmVannicaro
rs,
stake. ormation on,
ability to motivate they can Pass int
cer tai nly anew, colleagues A boat can’t have two captains.
2) While this is wot only to thei
ant qua lit y, wy oo" it tes ut also to
imp ort ana suporaina
Akira Mori, President and Chief Executive of the Mori Trust, Japan
g. 3) For instance, take
is not everythin che pub lic . ©) if we
a F ails to mention that
my lac oce these qualities into
e a —
managers Must hav account, w e can see that cE: Presenting an argument
the pusiness
understanding of lee lacocca’s
if the y ave to make
envivomment also statement is quite The author suggests that/claims that ...
4) He has
sound Aecisions. superficial ana
t hak: The author is correct in saying/stating that ...
overlooked the fac vetlects ouly part
age rs mus t be gooa with ie In saying/stating that ..., the author fails to see ...
man of the reality.
y have to
numbers, AS the While the author views ..., | believe ...
The quotation may contain a grain of truth in the sense that ..., but the
author misses a crucial point ...
Match the number of the sentence with the function it has To my way of thinking ...
n the paragraph. However, in my opinion ...
| believe it is a mistake to think ...
Sentence Function For instance, ...
A case in point is ...
1 your first supporting argument or example
In brief, ...
2 a summary of your position To conclude ...
3. your final supporting argument or example

4 statement of your position

ee further supporting argument or example

6 paraphrasing the author’s position

93
 | 68.8
Accounting

Learning Focus Warm-up

oe Why do many students have trouble with their accounting course at university?
¢ Understanding financial
statements What might be the outcome of mistakes and of the deliberate manipulation in financial
¢ Talking about balance sheets reports, commonly referred to as cooking the books?
¢ Breaking the bad news
diplomatically

Self Study

¢ Who’s who in accounting?

¢ Softening your criticism
¢ Conditional |: speculation,
speculation

Accounting the system of recording

and summarizing business and
financial transactions as well as
interpreting, analyzing, verifying and
reporting the results in the form of
documents, which are submitted to a
company or to the government.
Accountants have been prepared for
Look at the definitions of accounting and bookkeeping. Read the activities below and
their work by completing a university
decide if they are the work of an accountant (A) or a bookkeeper (B):
degree and additional professional
training. 1 collecting and filing purchase invoices from suppliers
Bookkeeping the work of keeping an 2 establishing rules and methods for determining the effects of financial transactions
accurate record of the accounts of a 3 recording sales made to customers
business. Basically, this means 4 preparing and distributing financial statements
keeping track of the money entering 5 entering figures of sales made in computer program
and leaving a company. Bookkeepers
6 obtaining the figures of a business’s inventory at end of year
do not necessarily have professional
employed 7 preparing and submitting tax returns to government
training and are generally
by small and medium-sized firms. 8 reviewing and approving end-of-period entries

94
 Reading: The Enron Story
1 Match each of the drawings with one of the expressions below:

be a bean-counter
blow the whistle
crunch numbers
keep an eye on the bottom line
aPP
WD
— massage the figures

What do you think these expressions mean in the context of accounting?

2 Now use a form of each expression to complete the sentences below:

1 Before we set next year’s budget, we will have to do a lot of

2 The chief accounting officer confessed to having a bit for the
last financial report, but he was still within the law.
3 When Ms Bowers realized that her boss was involved in insider trading, she
on him.
4 Shareholders should ; , if they want to know how a company is
doing.
5 Accountants are often said to be humorless

3 Match each of the terms on the left with its definition on the right.

a aterm for an accountant who has met the requirements of an

1. chief financial neriga institute |G Accounting collocations
officer/CFO
Pet b an independent business or subdivision of a company Vocabularv
udi
' Cc aperson employed to make a close examination of
3. oversight : y
something, e.g. a company’s books
4 entity : oe ;
d_ deliberate deceit in order to obtain money or other benefits

3 ees : e the formal notice that somebody Is leaving a company

6 certified public
accountant/ f the corporate executive responsible for financial planning and
CPA record-keeping

resignation g the task of supervising and regulating an activity

8 fraud h_ something’s worth as recorded in company accounts

95
 max “8
\
eae spgeteieiacl
— Accounting ———

4 Scan the article below and find the relevant information to answer the following questions:

What type of business(es) was Enron involved in? 7 What was the name of the firm responsible for checking
How many people did the company employ? the books?
What was Enron’s net value in the year before the company 8 Who is the hero in the story?
collapsed? 9 What is the U.S. government organization responsible for
What was the name of the chief executive officer? protecting investors against fraudulent and manipulative
a Who was responsible for cooking the books? practices in the securities market called?
What was the trick used to cook the books? 10 What are the (legal) reasons why Enron executives were
sent to jail?

The Enron Story

Students who feel bored by their who had created SPE’s, or special
accounting lectures are probably not purpose entities, i.e. largely fictitious
aware that at the end of 2001 fraudulent 45 companies with evocative names. These
accounting practices led to the almost were declared as independent
overnight collapse of a corporation which partnerships and used in off-balance
had been considered one of America’s sheet transactions to conceal Enron’s
most successful. Enron’s bankruptcy debt. Enron’s true liabilities far exceeded
resulted in unemployment for its 20,000 its vastly overvalued assets. Although
former employees, the loss of $1 billion the company employed the prestigious
10 in pension funds and the disgrace of one accountancy firm Arthur Andersen as
of the country’s most prominent their auditors, these accountants did not this away with misleading technical
accountancy firms. This was a story not report the irregularities, either as a 85 jargon. The next day an article appeared
only about figures but about greed and result of incompetence or collusion with in The Wall Street Journal interpreting the
ambition, courage and corruption, and the Enron management. losses as a sign of imminent collapse. The
even suicide. The crisis began in August 2001, when article also pointed out embarrassing
In 2000 Enron had still been operating the CEO Jeffrey Skilling resigned - conflict-ofinterest issues, since CFO
as an energy broker and energy provider. allegedly for personal reasons. At least Andy Fastow had amassed a fortune of
It was a publicly traded company listed 60 one analyst had already observed that $60 million in his dealings with Enron’s
on the New York Stock Exchange whose the resignation coincided with the various “special partnerships”.
20 shares were considered a blue chip publication of the second-quarter Meanwhile, Enron stock had reached its
investment not only in the U.S. but — financial report, which showed that for lowest level in 14 years and continued to
around the world. At the time the the first half of 2001 Enron’s cash flow 5 fall. And then the American financial
company was also breaking into what 65 was $1.3 billion in the red. Was the oversight agency, the Securities and
appeared to be a fantastically lucrative captain leaving a sinking ship? Exchange Commission (SEC), began an
25 new market — the provision of broadband There had been several employees investigation.
services. Its financial statements for that who had attempted to blow the whistle, Enron had no choice but to restate its
year declared revenues of $101 billion but the whistle-blower who became 100 profits for the previous four years, in
and assets of over $65 billion. Analysts 70 famous was Sherron Watkins, Enron’s effect admitting that it had been inflating
at firms like Merill Lynch were full of vice-president for Corporate its earnings and hiding debt in the
30 praise for Enron’s performance and Development and a trained CPA. The day complicated partnership constructions.
management, never dreaming that one Skilling resigned Watkins wrote a On December 2, Enron, which only three
year on the company would become the concerned letter to Enron’s head, Ken 5 months earlier had claimed to have
biggest scandal in business history. 75 Lay, in which she pointed out the assets worth almost $62 billion, filed for
The fifty-storey glass tower which irregularities and warned him that the bankruptcy protection. Its share price —
served as headquarters in downtown company could implode in a wave of once at a record high of $90 — was now
Houston and the flattering articles in the scandals. Lay did not reply to her worth less than $1.
business press had never reflected message. 110 Lay, Skilling and Fastow were charged
Enron’s true financial condition. For 60 The scandal broke in October 2001, with conspiracy and fraud. All three men
years Enron had been making losses. when Enron’s third-quarter earnings were found guilty of these offences and
40 These had never appeared on its balance report revealed losses amounting to $638 received long prison sentences. Lay died
sheets thanks to the dubious financial million and a loss in equity of over $1 of heart attack in July, 2006. Skilling and
genius of Enron’s CFO, Andy Fastow, billion. The company attempted to explain 115 Fastow are now serving time.

96
5 Discuss the following questions:
1 :
: te oa GOlabse of Enron a disaster for many of its employees?
: et ee oe and Exehalige Commission not intervene earlier in the story?
€ done so that this type of corporate fraud does not occur in the future?

Listening: The world after Enron

1 The radi 10 program The Lowdown is
isi interviewing an authority on accounting about the

4. The fallout from Enron:

:
2 How accountants can cook the books

* inflate sales figures

* inflate figures for expenses

ed the public:
3 Why Arthur Andersen’s behavior shock
veputation
© because it had haa such a good

since Enron:
4 Changes in the accounting profession
B
ble to a new veguiatory body, PCAO
© accountancy Firms now accounta

SOX Sarbanes-Oxley Act

pany Accounting
PCAOB Public Com
Oversight Board

ue ee

° theiv salavies have visen

6 Changes for companies:

of financial vepovts
ly vespousile for accuracy
© CEO and CFO now personal
)
under Sarbanes-Oxley Act (2002

2 Listen again. Do you think the measures introduced after the Enron scandal were 4
enough to discourage accounting fraud?

97
 be ACCOUNIING. 2 oe
ce eg Ls & ie : a
Business Skills

auditor * balance sheet * bank accounts »

bank loans * bookkeeper * cash flow Talking about balance sheets: Using the right
statement * chief accounting officer ¢ chief
financial officer * creditor * debtor
terms
~starantee-transparency ¢ monitor activity °
office equipment * profit and loss account ¢ 4 Have a look at the list of terms associated with accounting. Use the mind map below to
property * provide information * raw materials organize the terms into the different categories.
¢ reduce chance of fraud
Types of financial
statements

Purpose of Fe Soe S OC OBESE RCA SNCOBOCaNESbabc

accounts

Assets

Accounting

Balance sheet
items People at
work

AROOOSOOOOGOe Ge
Liabilities

2 Jim Turner has just taken over his uncle’s plumbing supplies company. As he is
completely new to the business, he has asked the company’s accountant, Vijay
|@ What you own and what you owe: Sengupta, to give him a rundown on the company’s financial condition. Listen to their
balance sheet terminology conversation and enter the missing figures into the balance sheet.
Skills
Wiggin’s Widgets, Inc.
balance sheet ending last quarter
$000
ASSETS
Current Assets
Cash and cash equivalents $15,000
Accounts receivable 52,500
Inventory 37.500
Total Current Assets :
Plant and machinery $30,000
Less depreciation 3
Land 12,000
Intangible assets 3,000
TOTAL ASSETS
3

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES
Accounts payable
$30,000
Taxes payable
>
Long-term bonds issues
22.500
TOTAL LIABILITIES
.

Common stock
S
Retained earnings uh
TOTAL SHAREHOLDERS’ EQUITY 8
LIABILITIES AND SHAREHOLDERS’ EQUITY $132,000
98
 Business Skills

3 Satyam Computer Services Ltd., with a staff of 40,000 employees,

used to be one of India’s leading IT companies. The company’s
chairman resigned after confessing that management had been
falsifying the accounts for years, inflating profits by $1 billion.

Satyam Computer Services Ltd. (SAY), Balance Sheet

All numbers in thousands

Current Assets

Cash And Cash

| Equivalents | 1,117,200 "152,200 |292,800
| Short Term Investments |. | 13,800 403,700

Net Receivables — 699,300 | 435,100 304,400

| Other Current Assets 46,000 "8,100 --17,800 |

|Total Current Assets 1,862,500 609,200 1,018,700
|Long Term Inv 3,900 786,600 3,500
| Property Plant and = eee
| Equipment 236,600 163,100 - 106,600 Other Current
came [oeaeres Sac i See Sa ee a a | Liabilities | 107,200 80,200 | 11,800
| 80,000 | 32,
ee ~ —— esse ec | Total Current Liabilities | 333,100 211,200 | 139,100
|Intangible Assets | 15,600
|LongTermDebt [ 22,200. a | 17,900 *
| Other Liabilities
" Other Assets. 39,100 | 21,800 | 17,700
|Deferred Long Term | | 8,900
| Asset Charges 5,600 3,300 | 500 Minority Interest | 20,900
| Total Assets 2,243,300 1,624,100 | ‘1,181,200 Negative Goodwill
| Total Liabilities

Stockholders’ Equity
Accounts Payable 196,600 | 118,900 | 120,800 _ | Mise Stocks Options
Warrants
Short/Current Long
| Term Debt 29,300 12,100 6,500 Redeemable Preferred
| Stock

| Common Stock 36,100 36,000 17,600

1,069,800 721,100 497,100

Take a look at the company’s balance sheet. What |Capital Surplus 592,400 | 552,400 | 465,100
information would lead you to believe that the | Other Stockholder Equity |z 163,500
SE
- 61,500
——
| 14,600
company was performing well? Is there any indication
that the company would be bankrupt less than a year 1,861,800 1,371,000 994,400
later?
| Net Tangible Assets __$1,766,200 $1,330,900 | $960,200

99
 Accounting

Business Skills

4. Refer back to the balance sheet on page 99 and find the words or expressions meaning
the following:

1 all of the money owed to the business net. veceivables. .

Ls) the part of the profit not paid out as dividends, but kept by the company to benetic or be
used to pay debts ee
w .the net amount of capital received nestainvestors
4 the value of intangible assets such as a strong brand or company Sian Ona pete
sheet, this can refer to the purchase of a brand name or the acquisition of a company with a
good reputation.
the goods or raw materials held in Ribs
aunthe portion of shares that a company does not want to Oe on the mace

7 the deduction of capital expenses over a specific period of time, usually over the asset’s life

8 stock owned in a corporation that has a higher claim on the assets and earnings than common
stock
9 money the company owes but can only repay at some point in the future

10 money that the company owes to its creditors at the present time

Diplomacy: Breaking the bad news

Susan Carter is an auditor employed by the accountancy firm Smith Holmes and
Se Watershed. She is currently auditing the books at GigaCorp.
Cc
© Listen to conversation 1 with GigaCorp’s chairman John Lightfoot and answer the
os)
Onm
,
os questions underneath the photo on the left.
®
>
c
{e)
O Listen to the second conversation. How would you
describe Susan’s conversational style now?

Listen to conversation 2 again and find the language

What is the bad news that Susan has that Susan uses to soften her statements.
for John? * How does John react?
1 John,

we've been reviewing your financial statements for last year and, , there are a

number of figures that

2 Yes. that the figure for

earnings is not supported by the other documents we’ve had access to.

3 But it as
the figures in the financial statements.

4 Well, that it is a deliberate

misrepresentation but

an error.

5 Asan external auditor, |

the company restates the original financial report.

6 But the earnings figure is clearly off by at least $5 million

100
Company Case The fast food franchise Hacienda Heaven (turnover
$1 billion, headquarters in Charlotte, NC) has over
1,000 outlets in the U.S. and more than a hundred
abroad. It maintains close contact with outlet
managers, who are required to keep good paper
records and stay in close contact with accounting
operations at headquarters, which even has an 800
number to field their questions. The company has just
bought a smaller chain and is now considering
reorganizing its accounting operations. Its in-house
operations have been requiring more and more
physical space and employing accounting staff has
become increasingly expensive. Hacienda Heaven
management has been looking into an F&A services
business providing onshore services. Currently it is
considering even more radical, cost-effective
solutions. The most obvious would be to offshore its
back-office processes to India. A first estimate
suggests that the offshore model would cost half of
what Hacienda Heaven would pay a domestic provider.
On the other hand, Hacienda Heaven is not yet
convinced that an offshore company could handle all
the operations. For the franchised restaurants,
accounting consists largely of collecting royalties
and rents. However, the company accounting consists
of more complex operations with receivables,
A back office in India payables, general ledger maintenance, fixed assets
and utilities payments.

Consider the following questions:

¢ What factors could make an offshore

arrangement difficult for the company?
What potential risks are inherent in
offshoring?
What factors should be considered when
choosing a service provider?
What measures could be taken to reduce
potential problems once the new
arrangement is in place?

Then make a recommendation to the class as to

what course of action Hacienda Heaven should
take.
Skills: Paraphrasing Web research: Becoming an
Reread The Enron Story on page 96 and find the phrases in accountant
the article expressing the ideas below:
Which certification in your country most closely
1 As aconsequence of the company’s collapse, all the people corresponds to that of the American CPA? What kind of
who worked for it lost their jobs. training is involved?

Certified Public Accountant (CPA) is the title given to professionals

who, having satisfied requirements with regard to education and
2 Both American and international investors were eager to buy experience, have passed an exam set by the American Institute of Certified
Enron stock. Public Accountants. The educational requirement is an American
bachelor’s degree with a minimum number of hours in accounting and
business administration followed by an additional year of academic study.
The experience requirement varies from state to state.
3 Enron had been hiding liabilities in companies that were not CPAs may work in corporations as chief financial officers or be employed
mentioned in its financial statements. by accounting firms as auditors. They may also be self-employed as tax
consultants.

Use the internet to research the corresponding professions

4 The auditors may have overlooked the fraud or they may have
in the U.K., Canada and Australia. Use a combination of the
been cooperating to cause it.
following terms: accounting, accountant, qualification,
training. The grid below will help you to organize your
information.
5 The chief executive officer said that he had not quit for
reasons having to do with the company. Country Title Education and Areas of
training activity

United Cevtifiea B.A. plus one CFOs in

6 Enron confessed that it had been exaggerating the figures for States Public yeay covpovations,
Accountant experience auditing, tax
its revenue. yvequivement consulting
varying from
state to
state
7 A court decided that the executives had committed the crimes (your
they were accused of. country)

United
Kingdom

Canada

Australia
Web research: Investigating fraud What is the worst thing that can happen to an employer
who takes revenge on an employee for whistle-blowing?
The Enron case has become the classic example of
accounting fraud and Satyam has been called “the Enron of
India”. Use the internet to find information on more recent
cases of accounting scandals. How could they occur? What
were the consequences? 4 Read this second excerpt from the Sarbanes-Oxley Act and
underline the subject of the sentence.

Criminal penalties for altering documents

Whoever knowingly alters, destroys, mutilates, conceals, covers up,

falsifies or makes a false entry in any record, document, or tangible
object with the intent to impede, obstruct or influence the
investigation or proper administration of any matter within the
ia
jurisdiction of any department or agency of the United States or any
I |
i
case filed under title 11, or in relation to or contemplation of any
1
i
such matter or case, shall be fined under this title, imprisoned not
q
a more than 20 years, or both.
Q
q Section 802(a) of the SOX, 18 U.S.C. § 1519
#
hy a

ed
ul
i
ne| Highlight the words in the passage meaning:
|
y.]
a
q e the act of carrying out a function
]
in e to change in a fraudulent way
¢ to remove or damage a part of something
¢ authority or control
e material, capable of being touched

How does the punishment for dishonest accountants or

auditors compare with the punishment for retaliating
against whistle-blowers?
Reading: Legal documents
Below you will find an excerpt from the Sarbanes-Oxley Act.
Underline the subject of the sentence. Then underline the
verb(s).
Writing: Blowing the whistle
The Whistle-blower clause
As Susan Carter, the auditor on page 100, write a
Whoever knowingly, with the intent to retaliate, takes any action confidential letter to your boss Rob Collins at Smith Holmes
harmful to any person, including interference with the lawful and Watershed explaining the problem at GigaCorp.
employment or livelihood of any person, for providing to a law
enforcement officer any truthful information relating to the Cc: Tips for writing diplomatically
commission or possible commission of any federal offence, shall be
fined under this title, imprisoned not more than ten years, or both. Use softening expressions such as
Section 1107 of the SOX 18 U.S.C. § 1513(e)
/ regret to inform you...
/ am very concerned about...
Highlight the words in the passage meaning: Use terms such as
financial irregularities instead of fraud
e the means of earning the money you need to exist
to report improperly instead of to cook the books
e the act of perpetrating a crime
Make use of passive forms, e.g.
¢ anillegal act
The figures have been misrepresented instead of The CFO has
e the division of a legal text or statute
misrepresented the figures
* aperson working for the government whose job it is to ensure
An error has been made instead of X has made an error.
that laws are observed
 Paneer,
~aie a” Br featiar er arSoarie

_ Rapidly developing —
economies

° Talking about
a country’s CEOS ee Hae

ns | Test your knowledge / 5 Which three countries showed the highest

* Using the basic terminology of | of global economies! ; economic growth before the financial crisis
economics
¢ Describing line graphs
aL] USA, Japan @, Germany
1 What does the acronym BRIC stand for?
b [_] USA R. Germany R. Japan R
a (_] The countries of Bulgaria,
Self Study Al € (asUSA 2. Japan §, China R
Romania, Italy and Croatia.
¢ Adjectives/Adverbs describing b [_] Biannual Ratings of Investors’ 6 Which were the three richest countries in
change Creditworthiness. terms of purchasing power parity per capita
¢ Tenses in graph descriptions c [] The countries of Brazil, Russia, in 2008?
* Word partnerships highlighting India and China. a USA R. Japan R Germany R
economic facts and trends . ’ b [_] Qatar $%, Luxembourg §%, Norwa
4 :Se ey 2 What do the BRIC countries have in 4 ce na ne on a8 g ¥ R
o U mmar
% Izing Into
information Troma Komen ia , g 2 , p

oe a [_] They are all rich in natural 7 Which of the following forms are not
resources. : considered foreign direct investment (FDI)?
b (_] They showed double-digit : a (_] Buying shares in an enterprise in
economic growth until the global another country without taking a
How to interpret your score: financial crisis in 2008. ‘ lasting interest in or effective
LP Cc They have the lowest labor costs | management control over it.
6-7 answers correct: Globalization and : e rs we) : .
n the world. . b Purchasing an enterprise ina foreign &
the economy seem to be your pet subject. ‘ a k
; : F ; country or combining two companies
Maybe you are planning a career in a 3 Which country doesn’t belong to the .
by forming a new one (=M&A). K
global company so you can work and live so-called emerging economies? C C rati ‘th ieee .
: = ; R ooperating with an enterprise in :
abroad? An interest in global business a J Russia d Brazil x P 1 P :
K another country by forming a joint x
certainly gives you an advantage over b |_| Mexico e L| Vietnam N
: , : venture. iS
other candidates. c |_} India f || China ee ‘
d Setting up a subsidiary in another
4-5 answers correct: You seem to have 4 How is the economic growth of a country.
paid attention in your lecture /nternational country commonly measured?
Economics. But why not consider reading a As a percentage increase in the
the business section of a national gross domestic product (GDP)
newspaper more often? during one year.
b As the dollar value of a country’s
1-3 answers correct: It’s time to watch
total output in a year, divided by
the business news regularly as well as
its population.
documentaries on countries other than
Cc As a country’s final output and
your own. Remember: what businesses
services In a year valued in dollars
are looking for in university graduates
or euros.
is an interest in what is going on in the
world economy.
eZ *q9 ‘0G ‘ey ‘ag ‘Gz ‘| :Aay How do the rapidly developing markets influence the advanced industrialized economies?

104
 Reading: The BRIC countries
1 Economists agree on four determiners for economic growth: macroeconomic stability,
stable political institutions, an open economy and education. Enter the following factors
in the mind map below.

MACFOCCOMOMIC sit erater cose coume sie scniewslsosounie

stability

Supporting Stable political a Pe eg

factors Conditions for institutions

economic growth

Education economy
eM ee eee eee ee eee tree ners senses sesesserssees

exchange rate adjustment ¢ functioning legal system ° functloning-rerkets-* good vocational

training * high university enrollment rate ¢ longersecondary-serectine © low government deficit *
low inflation * low level of bureaucracy ¢ no trade barriers * open to foreign direct investment
(FDI) * favorable demographics * good infrastructures * protected environment

What other supporting factors can you think of? Add them to the mind map.

2 Match the economic terms on the left with the definitions on the right.

a the act of hindering, delaying, slowing down or stopping a process

floating
b the price of one currency in terms of another, which is determined
exchange rate
entirely by supply and demand
commodity
any raw material or primary product that can be bought and sold,
surplus e.g. steel

bottleneck a specific problem in part of a process that causes delay

underfunding more than what is needed or required

interference the exclusive authority to decide how something is used

illiteracy the state of not being able to read and to write

contraction when the government does not provide enough money for a specific
purpose
ONproperty
co
DN
WO
FP
oO
BO right
the process of becoming smaller

3 What do you know about the economic and political conditions in Brazil, Russia, India
and China?
 Rapidly developing
economies

4 Form groups of four. Each member should read the profile of one of the BRIC countries.
Note the factors that have contributed to its economic growth and think of five questions
you have concerning the other countries. Tell your group what you have read and answer
each other’s questions. Then complete the mind map on page 105 with further points
from the texts.

w fussia page 131, India page 139, China page 137

exchange rate, targeting inflation and azil’s legal system is

generating budget surpluses. This, coupled
with a worldwide high demand for
commodities, entailing high prices, led to a
boost in economic growth, which averaged
4.6% in 2006/07. i te
Lula DaSilva (2002-2010), Brazil has
Trade barriers have come down within the The quality of educatio
the tenth largest economy in the
last few years, resulting in a surge in "improvement: the averagi ngth of
world.
exports, particularly in agriculture. Brazil’s schooling is 6.5 years (2005), and the
This has not always been the case: In the main export partners are the United States, illiteracy rate is 11% (2005), compared with
1980s Brazil suffered from unstable Argentina, China and Germany. 8.4% in China. Although primary and
political conditions and in the early 1990s The level of foreign direct investment (FDI) secondary education are underfunded, the
from hyperinflation of up to 5000%. inflows reached a record high of $34.6 state university system is excellent.
The country possesses large and well- billion in 2007, reflecting not only M&A In some areas, poor infrastructure is a
developed agricultural, mining, deals but also new investments. The U.S. bottleneck to economic growth.
manufacturing and service sectors. During and Germany have been among the main There has also been pollution and
the last decade the macroeconomic sources of FDI to the country. deforestation in the Amazon region.
framework was based on a floating

Brazil: The level of foreign direct investment Russia: Despite the difficult business
inflows reached avecova high of $34.6 billion environment, foreign direct investment (FDI)
in 2007. coomuneen IN Fecent years.

China: Enrollment in universities

Brazil: |ts population is young, but its birth rate
and mortality rate are both
China’s economy ; an average
of 10% a year between 1981 and 2007.

India: Although consumer price inflation fell to.

roughly 4% in the early 2000s, it
China: Consumer price inflation o.oo
over the last years. coon again. FDI inflows usedto be.
extremely low but $24.5 billion
in 2007/08.

|@ The Crystal Ball: speculation 6 How is recent economic growth in the BRIC countries explained in your texts? What
and prediction
other conditions need to be improved in order to guarantee such high rates of economic
Grammar growth for the future?
 Role-play: Investor’s choice
Form groups of five. Four people will represent their respective
BRIC country at a trade fair; one person will represent a British
investor planning to set up business in one of the BRIC countries.
Choose a role card and follow the instructions on it. Then hold a
Q&A session in which the country representatives try to convince
the investor of their country’s advantages for FDI.

> StudentB (Brazil) page 128, StudentC (Russia) page 131, StudentD (India)
page 139, StudentE (China) page 137

British Investor
<x Imagine that your company is planning to set up business in one of the
~
cc
) BRIC countries.
ae)
p=
RS Your business is a successful British coffee house chain with subsidiaries
®)
in Europe, the U.S. and Australia. You don’t franchise your outlets. Asking for information TERERETEAN™
UATE

Your product range consists of upmarket nutritious sandwiches, bagels

and donuts as well as organic soft drinks and fair trade coffee. What are the advantages of investing in ...?
You want to target the upmarket segment of the busy office worker with Can you give me an idea of ...?
“to go”-style lunches. What do you mean by ...?
Question each country representative on: How do you think you can achieve this goal?
e the population of his or her country ; W hat is your policy on ...?
e the size of the economy Could you fill me in on ...?
e the legal system
e the competitive position in the café retail sector

Listening: Tectonic shifts in the global

BoSBomy a tap into (v)
‘ ; A : b indigenous (adj)
1 Replace the underlined expressions with expressions from the box. :
c mindset (n)
1 It is hard for a Westerner to live in China because people there have a different way of d_ obstacle (n)
thinking.
2 India has a large pool of well-educated young people which foreign companies can use to
their advantage.
3 When entering the Indian market, multinationals have to compete with other
multinationals as well as with local companies.
4 Sometimes bureaucracy can be so complex that this represents a barrier to
". _Hewaliey
« . t« i eees.
OS
setting up business
Dus! in the country.y
* Dk Lov the changes | “ the
2 The radio program Business Edition is interviewing the chief
economy }
. global ¢ ‘
economist of a major business journal about rapidly developing
5 ees er Clonal S00 list —. . .
countries. Listen and take notes on the points on the right.

6 meaning and EeO of frugal

3 Write a short summary using your notes.
a engineering
wo new business model and example
o oppovtunities Pov ana strengths of
Western multinationals

107
 a : a si: i . -
Rapidly developing
economies o :

Business Skills

Describing trends: Economic growth |

1 Look at the graphs below. Only two of them show real figures. Listen to an excerpt from
|@ ae
from a graph
Cee a presentation by a university lecturer and mark the two graphs which are described.
Skills

GDP growth of China ce GDP growth of China

Vf RUG ISROX
rthonts © 6\ of oe eg © S\ « | e : UCP00).
MRCMC )2,0%.02.0)
CL CWC RohNe

“GDP growihmndia = EDP growth of India

2a
Graph 2b
Graph

, SV.
SXe okSie tt ne(\ER S ; Reeck ohhSlRok
RUGS

2 Listen to the presentation again and fill in the gaps.

1 China’s GDP growth rate over 14% 1992,

just 3.8% 1990.
2 ‘First growth declined but then, in 1994, it started to fall and
|@ Adjectives /Adverbs describing reached 7.8% in 1998.
Giatiee 3 But then we could see a increase GDP growth to 10% in 2003.
Grammar 4 Needless to say, due to the worldwide economic crisis the growth rate
dramatically.
5 Starting with an impressive rate of 5.6% in 1990, growth over
4% around 1% in thesfelontne year.
6 Unfortunately a period of rather growth set in and lasted till 2002, when
economic growth when hit another 3.8%.
7 Which was reflected by a boost growth almost 5%
8.5% in 2003 and ... 9.7% in 2006.
8 In 2008 India was also hit by the economic crisis, so growth
sharply and could reach 5% 2009.
 Business Skills

3 Work in pairs. Student A describes Brazil’s economic growth to student B and student B
describes Russia’s economic development to student A. Listen to each other and use the
template below to draw the graph. Describing trends

we Student Apage 134, Student

B page 128 GDP growth started at (minus) ...% in ...
There was no growth in
There was negative growth of ...% in ...
GDP increased sharply/rocketed to ...%

ell dramatically/plummeted from

sel) con hs
Grow h fluctuated around ... %.
The g owth rate remained stable at ...%.
GDP grew by ...% in ...

-15

CORD QD IRCCS
See CL KD Oe OD 50
1% A A

Describing trends: Comparing economic

growth
1 Study the graph below. What does it illustrate? What do the two line graphs have in
common and how do they differ from each other? Then divide the developments into
time periods.

GDP growth of the U.S. and Germany ]

|
Se LP
Ww SP
SASS QW? SAD
© A ETS
© GO WS SS OS eS
OO
SO
OO AF A GSP GG? gSSOO
PO OP OT GS GB?SOILD Pg HH

UES. Germany

Source: World dataBank

 Rapidly developing
economies
Business Skills

2 Now read the text and check your answers.

>» . ae YT te
2 + ee: ss -

The graph illustrates the GDP growth of the rate of around 4.3% between the years 1997 we witnessed in the U.S. between 1996 and
U.S. and Germany between 1990 and 2008. is and 1999, 1999, was reflected by an average growth
Two aspects are particularly striking: first, Then there was a sharp decrease of almost rate of only 2% in Germany. | . ;
both countries’ growth rates fluctuated 4% to 0.8% in 2001, but growth improved As in the States, growth shrank
5 considerably and, second, Germany’s, rapidly to 3.6% in 2004. Since then growth significantly from 2000 till 2003, but
growth rates were much lower. _of GDP has been on the decline. Germany experienced no growth and even —
Looking first at GDP growth in the U.S., 20 In contrast to the U.S., Germany’s growth negative growth in this period. or eG
we can see that there was a considerable rates were much smaller, and growth Then the growth rate improved fairly —
drop to just below zero growth in 1991. But — contractions much more pronounced. In 35 quickly, reaching a peak of 3.0% in 2006.
10 the economy recovered quickly and growth 1993 GDP growth plummeted far below zero Because of the worldwide economic
reached 3.3% in 1993. From then it ~ (0.8%) and, although it went up to 2.7% in recession, growth rates in both countries fell
_ fluctuated between 2.7% and 4.0% for the 25 the following year, a decline in growth set in below zero after 2008. et *
following four years, followed by a stable until 1996. The stable growth period, which
: iar Ro need Sed Bet) emer
age "7

3 Go through the text again and highlight all the expressions which indicate changes in a
trend. Then organize the expressions by meaning as shown in the grid below.

Verbs Nouns

upward movement downward movement upward movement downward movement

vecovev Avop

Writing: Comparing economic trends

1 How can you make a graph description easier for the reader to follow?
Tick the correct answers and find examples from the text above.

*int

¢ te * a e'e.lhE
at- oan
by
organizing
itinacle ran

denen sBe g
ha
a nti
e I
2 The graph below illustrates GDP per capita in the BRIC economies. Imagine that you
GDP per capita also called income per
capita, is used to measure a country’s
work for a company which is considering marketing its brand of toys to the BRIC
wealth and is a good indicator of a countries. Discuss the graph using the expressions you have highlighted above and
country’s purchasing power. write a report making recommendations to your company.

GDP per capita of the BRIC countries

mee 3 a7\|
1 |NUSSE

SP) Si cel?3s)
SPS am ACE Re) ot ee) eS. RS SY Os
NUIME MCMC MEME UECUECDECHIE SIE SDH SSIES aSe
Sey or a) Oe
OOO ete es)
yea a eee
OES

110
Company Case Cosmo, an American cosmetics company which had
entered the Chinese market in the late 1980s, started
selling its KBS line of skin care products there in 1999
after the product had become a success with female
customers In 12 other East Asian countries.
KBS Is a premium product which claims to smooth
the skin, reduce wrinkles and whiten the skin - a
popular fashion with women in East Asia. The product
line was manufactured in Japan and imported to
mainland China. It became highly popular there within
months due to heavy advertising, mostly by means of
celebrity endorsement.
In September 2006 the National Quality Inspection
Department (AQSIQ) tested samples of the KBS range
and announced that nine of the KBS skin care
products contained chromium and neodymium. These
substances were banned in cosmetics by Chinese law
but tolerated to a certain degree in other countries if
they occurred naturally in products or through the
manufacturing process. Cosmo denied the allegations
of the inspection department and claimed that the
findings were incorrect.
Although the company offered to give their

A multinational’s customers a refund, they linked the refund procedure

to certain conditions, such as customers having to
approach to the Chinese sign a waiver stating that they recognized the

market products were not harmful. Customers were only

given a refund if they had not used more than two-
thirds of the product.
Discuss the following questions: The story received full media coverage and Cosmo
was heavily criticized for their refund policy as it was
Which mistakes did Cosmo make?
in-part illegal under Chinese consumer protection law.
What would have happened if Cosmo had
At the same time, hundreds of consumers had started
admitted to any wrongdoing?
to ask for refunds, causing riots at some of the
What could Cosmo have done if it had taken
company’s stores.
into consideration the differences between
In the meantime, customers all over East Asia had
selling consumer products in China and
become worried, so the government testing centers in
selling consumer products in developed
Hong Kong and Singapore started testing the
markets?
products but quickly announced that the products
If Cosmo considered a relaunch of their
were Safe.
products on the Chinese market, what steps
Four days after the AQSIQ had pointed out that
could the company take to regain the trust of
nine of the KBS products contained unsafe
the Chinese consumers?
substances Cosmo withdrew them from sale in China,
and AQSIQ temporarily banned the importation of
these nine products. Four days after this, Cosmo
stopped refunding.
 Web research: New economic
developments
1 Research the economic development of one BRIC country
over the last few years and update its country profile in
this unit.

2 Choose a country you are particularly interested in and

research its key economic growth factors. Then write a
country profile similar to the ones in this unit.

Last month, the Executive Sustainability Roundtable, in conjunction

Writing: Assessing investment with the INSEAD Social Innovation Centre, highlighted the role that
businesses can play in addressing the needs of the poor, as well as
opportunities
the potential that lower income markets hold for firms.
Imagine you work for an economics institute. Describe the
When creating innovative, new products for markets at the base of
development of the trends illustrated below and give
the pyramid, Peter White, Director of Global Sustainability at Procter
recommendations regarding investment opportunities in & Gamble, notes that cost alone is not the issue. “It’s not just about
these countries. Use any additional information you have making consumer products cheaper,” he says. “You’ve got to come up
on this subject. with products that actually meet the specific needs at the bottom of
the pyramid. How do you design products that people need? You
China and Russia: FDI inflows net
have to actually go and find out, and so we send researchers to find
out how people live - how they do their washing and their cleaning -
(and) what their problems are.”

He outlined the case of a water purification system called PUR,

20 which P&G developed in collaboration with the U.S. Centre for
Disease Control for commercial markets, targeting low income
consumers. The product had clear social benefits, providing clean
drinking water for households in places where the health risks of
untreated drinking water are high, especially for children. After
25 three years of market tests though, PUR was looking like a
commercial failure. Many other firms would have closed down the
project, but P&G instead moved PUR to its Corporate Sustainability
department, easing the pressure on turning a profit. Since 2003,
P&G has sold the product at cost.

30 A second case was put forward by Christine Heuraux, Director

Energy Access Programme at Electricité de France (EDF). She
explained how EDF, through Rural Electricity and Services
Companies, has helped bring electricity to rural areas of Mali,
Morocco and South Africa, which would have been otherwise “off the
35 grid” “We have brought electricity to 800,000 people (and) our goal
China ome RIISS|Q by 2010 is one million.”
Source: World dataBank
A third case was presented by INSEAD Advanced Management
Programme alumnus, Jayanth Bhuvaraghan of Essilor India and
Reading: Products for those at the Claude Darnault, Director of Corporate Sustainability, with Essilor
International France.
bottom of the pyramid 40

Essilor International, which manufactures and distributes optical

1 Read the following article and answer the questions on
lenses, found that in places such as rural India, the absence of
page 113. adequate eye care facilities has resulted in an almost negligible use
of spectacles. Uncorrected refractive error is one of the major causes
A growing number of global companies are being drawn to the
45 of blindness, which if detected and corrected, would give a fresh
seductive idea that money can be made by developing and marketing
lease of life to individuals. Seeing an opportunity to address this
products for those at the bottom of the pyramid, some four billion
underserved market, Essilor India established a rural marketing
people around the world who eke out a living on about two U.S.
division in 2004 to increase the company’s reach.
5 dollars a day.
 At the forum, participants also highlighted the importance of finding Language work: Word combinations
50 good partners as a key component of bottom of the pyramid iis
strategies. and phrasal verbs
These partners may be from the public or private sector, as in the 1 Match the words on the left with the ones they correspond
case of EDF. “We are never working alone,” Heuraux says. “We are to on the right.
always working with partners, such as Total, Nuon, RWE, Hydro
55 Quebec and ESKOM.” 1 eke a_ the grid
As for Procter & Gamble, it has been working with NGOs which have 2 address b the pressure on
been trying to raise awareness of the need to treat drinking water. 3 hold Cc awareness
“For PUR, we let our NGO partners use their distribution channels; 4 meet d out
NGOs such as Population Services International which have 5) OSE e needs
60 expertise in health issues,” White says. “For commercial products
6 ease f potential for
designed for bottom of the pyramid markets, like Downy One-Rinse,
7 OK g theneeds
we use our own distribution channels.”
8 raise h_ patterns
Access to markets is also crucial. As Jayanth Bhuvaraghan of Essilor 9 consumption i down
India relates, “We learned that in some cases, the service has to be
65 brought to their door steps.”
2 Nowuse the expressions to complete the sentences below.
The company has developed a mobile refraction van which facilitates
eye examination and diagnosis, as well as the manufacture and
You may need to change some words.
delivery of spectacles, with its technicians collaborating with non-
profit partners such as Sankara Netralaya and the Aravind Eye 1 Most of the multinational companies don’t know how to
70 hospital.
en ee rane: of the poor.
Heuraux says that when it comes to rural electrification, EDF finds it
much more impactful to assist in setting up local energy businesses, 2 After the takeover of Denns Corporate, management has
using solar panels or fuel powered generators, as opposed to
(QREXCTOPSXO) WO) cranes
gynoveoe ere all its European plants.
donating them. “You can go the humanitarian route or the market
75 route. In 1994, we started with a humanitarian model, donating 3 The Smith family barely MANAGES CO oo ceccccccccscsscseeeeensenesnen a
generators. It didn’t work. No one could repair the generators, and
[the project] was very small - just a village, a school, a hospital. If living from the father’s work on the farm.
we want to help a few million [people], we have to make it a
4 Comcaid Ltd. runs training courses for company managers to
business, and make it locally sustainable.”
sparcsavaiin WOM cccinameneenn een eli CROSS OULU
so Business plays a couple of important roles in terms of sustainable
solutions, she says. “From the demand side, socially responsible matters.
business can help to inform consumption patterns. From the supply
side, product innovation goes to the heart of social and 5 At the last minute the Irish government stepped in with a loan
environmental sustainability.”
Of SO MIO) TOtecnas.ncseetne localilitmatstny:
adapted from hAttp://knowledge. insead.edu
6 Our market research group aims at finding distinct

hawonOl ING AgersrounrOOrs

2 Write a short essay answering the questions below.
7 The Chinese automobile market ..... eo eitene (URS
1 The bottom of the pyramid (BOP) has become a catch phrase
conan Western producers of small cars.
in global marketing.
What does it mean and why has it become so important for 8 The customer service of most mobile phone companies
businesses? cu, Only the basic +04: ...of their
2 Refer to the three examples in the text to explain why cost
alone is not the issue when developing new products for the customers.
poor. 9 The blizzard destroyed several overhead power lines so that
3 Explain Heuraux’s comment on sustainable solutions (lines
80-85) from the supply side. half of the country was
 eo
—S RAT!TLES
(-

Starting a business

_ Learning Focus Warm-up

Discussing entrepreneurship
e
Understanding the organization
of a business plan and writing
an executive summary
Understanding and identifying
1 What is your attitude towards taking 5 When you set goals for yourself, you usually
the main forms of company
risks? a [_] set small, short-term goals so that
structures
a |_| | don’t like taking risks and try to you will be sure to achieve them.
Using legal terminology to oS
avoid doing so. bl] set large, long-term goals, not
describe company ownership ee
b [_] | sometimes take calculated risks in knowing whether you'll be able to
certain situations. achieve them.
SelfStudy Eg yo Cc Yes, | think you have to take risks to oy tend to ignore them later.
win.
¢ Starting a business: key ba 6 Do you believe that success and failure are
expressions ul 2 Do you tend to trust your gut feelings? a (_] influenced by your personal choices
e Future tenses in a business plan a a Never or rarely. | believe in facts and outside factors?
* Writing an executive summary | and figures. b [_] under your personal control?
b Sometimes. SS c L] mostly a matter of luck?
c |_| Often or almost always.
ie7 Would you be willing to give up much of
hen you fail at something, you usually your sleep, family and leisure time for your
How to interpret your score: get angry at yourself. business?
try again immediately afterwards. Yes, one or two of the above.
14-11: Contrary to popular belief,
L_| give up trying. Yes, all three of the above.
entrepreneurs don’t show a specific
No, none of the above.
set of skills and talents, but there What kind of working situation appeals
are three main points that all most to you?
entrepreneurs share: persistence, a |_| Working by myself.
pursuit of objectives and hard work. b My working situation doesn’t really
So if you scored high on questions Z matter to me.
3, 5 and 7, you might consider [_] Working in groups.
starting your own business one day.

10-0: Usually entrepreneurs are

quite flexible, although you can
LY
always find exceptions. Generally,
i th

one can say that the following points

are common to entrepreneurs:
éAmt
iL|
determination, pursuit of goals and
diligence. So if you scored low on
Work out your score using the key and compare 0 | 0 ¢ Olea Olas Cc 9
questions 3, 5 and 7 you might not
your results with a partner. | C ¢ | c 4 4 q
have developed the necessary
4 0) | 0 | | | e
entrepreneurial spirit yet.
LH O9# SH tH EH ZH I#
81098 INOA 0} Kay
 Listening: Setting up a business
1 You are going to hear a radio program on student entrepreneurship. But what |@ Tell me how it all began
role does entrepreneurship play at your university? Answer the questions below:

1 Is your university known for its entrepreneurial activity? Grammar

2 Does your university market innovative ideas developed on campus?
3 Does your university provide assistance to students who want to set up a business
on their own?
4 Does your faculty offer any courses on entrepreneurship?

Complete the sentences below with the correct form of the words from the box.

devise * register * prototype ¢ refine * overheads

1 Before going into production, a ee of the product

has to be built.
2 The agency’s superb marketing concept still needs to be
ee to meet our specific needs.
3 Before starting your business, you are requested by law to
; your company.
A nighivene. <u. SUCH as rent and wages, can be a
burden in the start-up phase of your business. Lb
5 BizOrg sellsa template WHICH MAKES .oo.cooeosesseoseone co
business plan much easier.

The medieval university town of Cambridge is one of the

world’s famous centers of innovation and business start-ups,
known as the Silicon Fen. Michael Benyon from the radio
show, Business Daily is there to meet young entrepreneurs at
Technology Ventures, a conference which has been set up by 2
the university's student club CUTEC.

Listen to the recording and find out about the following:

CUTEC = Cambridge University
1 What is Rebecca’s business plan and how successful has she Technology and Enterprise Club
been so far?
2 What stage of development is her business idea in?
3 What are her plans for funding her business?
4 What is her attitude towards setting up a business on her own in tough economic times?

Could you picture yourself setting up a business? Discuss the question and compile a list
of arguments in favor of and against setting up your own business. Consider the
following aspects:

risk | funding and costs | working conditions | personal control | responsibilities | skills and
qualities | motivation | self-management

What do you think are the main reasons why a lot of start-ups fail in their first years of
existence?
 Reading: The Corporate Fitness Business
Plan
1 What kind of information is an investor or a bank looking for in a business plan?

2 Read the business plan below and answer the following questions:

1 Which phase is the business in?

2 Which purpose does this business plan fulfill?
a to help the entrepreneurs plan a course of action for the new business
b to help potential investors or bank managers examine the business opportunity or risk
to help the entrepreneurs discover potential problems
to help prospective suppliers in their decision whether to sell their products and
services on credit terms or not

Corporate Fitness Business Plan

Company summary Competitive Comparison Prices for using Corporate Fitness’ services are
Corporate Fitness is not primarily a health club, comparable to those of higher-end fitness centers.
Company Ownership
as are the majority of competitors. This Following initial promotional activity through
Corporate Fitness is a privately held corporation.
organization is in the business of health care cost advertisements in newspapers, magazines, and on
The three founders share ownership.
management. The major function is to work with television and radio, Corporate Fitness will
Dave Jensen - 40%.
client companies to implement wellness significantly reduce its promotional efforts in the
Jane Perkins - 30%.
strategies. An integral part of this service is hope that word-of-mouth will attract potential
Roberta Gomez - 30%.
following up and monitoring the individuals. clients.
Start-up Summary
Sales Forecast
Startup will require approximately $ 300,000 of Market Analysis
Sales are projected to increase quickly from
capital, $ 200,000 of which will be provided by Summary
$ 17,500 to $85,000 during the first year. The
the founders and their families. The remaining
This year the U.S. medical bill was $ 738 million, monthly revenue break-even point is at $26,683
$ 100,000 will come as a loan.
of which businesses paid 30%. Recent studies so that the business should operate profitably
Approximately $ 140,000 will be allocated to
indicate returns on investments in wellness from May onwards. Annual sales are expected to
leasehold improvements and $75,000 to
programs for various companies ranging from rise from $539,075 in the first year to $ 650,750
equipment.
$1.91:1 to $5.78:1. General Electric’s aircraft in the second and $ 825,600 in the third year.
Company Locations and Facilities engines division, for example, saves $1 million
Management Summary
Corporate Fitness headquarters are located in per year through its wellness programs.
Corporate Fitness is headed by three individuals.
downtown Seattle. Upon expansion, offices will Traveler’s Insurance Company reported savings of
The CEO and Director of Sales and Marketing
be moved to a different location. $7.8 million, attributable to its wellness
oversees the activities of the Director of Health
programs, and a return of $3.41 for every dollar
and Wellness Programs and the Director of
Services invested in wellness.
Finance and Administration.
Important demographic changes are taking place
Service Description
in America. The number of skilled workers Management Team
Corporate Fitness provides wellness strategies/
available to fill new jobs is decreasing, which Dave Jensen: CEO and Director of Sales and
programs to businesses in the downtown Seattle
means that employers are facing more severe Marketing. Mr Jensen completed his
area.
competition for labor. Thus, the health and undergraduate degree at the University of North
Corporate Fitness will work with the senior
productivity of each employee becomes crucial to Carolina, and then earned his MBA from the
management of companies to help develop a
a company’s success. University of Texas.
mission statement for its customized wellness
Jane Perkins: Director of Finance and
program. The client company’s employees will Marketing Strategy
Administration. Ms Perkins completed her
undergo a health-risk analysis, following which Corporate Fitness will begin by targeting small- to
undergraduate work at the University of
each employee will be given the opportunity to medium-sized businesses in the downtown Seattle
California, Berkeley, and received her MBA from
meet with a health professional to design a area. The first task is to convince senior
Vanderbilt University.
personalized health program. executives of the benefits and needs of wellness
Roberta Gomez: Director of Health and Wellness
Finally, Corporate Fitness will furnish senior programs. This will be accomplished by
Programs. Ms Gomez received her undergraduate
management with employee progress reports aggressively pursuing interaction and
degree in Exercise and Movement Science from
with which to carry out the incentive program relationships with business professionals who
the University of Oregon.
and generally monitor changes in the behavior of would profit from using this service. Once a
its work force. strong image is established, Corporate Fitness adapted from Attp://www.bplans.com
will use similar strategies to market its services to © Bplans.com
larger corporations in Seattle and other areas of
expansion.
3 Does this business plan cover all the important aspects of a new venture? What is
missing?

4 Why might employers have an interest in keeping their employees fit and healthy?
Match these terms from the business plan with their definitions.

this type of company is owned by the company’s

cost founders, management or a group of private investors;
management it is generally not required to publicize financial
information as its shares are not traded on the open
return on
market
investment
assign a certain amount to sth for a specific purpose
demographic
changes succeed in doing sth

allocate sth the planning and control of costs

(e. g. Capital) to
short official written announcement that an
sth
organization makes about the work that it does and why
privately held it does it
corporation
a performance ratio used to measure the efficiency of
accomplish sth an investment or to compare the efficiency of a number
of different investments
mission
statement a change in the population seen from a statistical point
of view (changes in the distribution of age, gender, etc.)

Discussion: Assessing the economic viability

of a business idea
1 Imagine that you have been approached by Corporate Fitness to provide a loan of
$100,000. Check the business plan carefully, discussing the items on the check
list below.

2 Doa SWOT analysis of the business plan.

3 Decide if you want to grant the business the requested amount. Formulate any
conditions you may have for the money lending. Be prepared to justify your decision
in class.

a Bank for Business

Checklist for start-ups

Marketing strategy
The Company should
* How will they establish credibility? Why
¢ What business are they in? custo mers buy a new produ ct from an unknown

The Product/Service company?

why?
rent from the * What will their pricing strategy be and
* How is their product or service diffe they intend to create?
* What is the image
competition’s?
|
* Who makes up their customer base? Financing
needed by their
Market analysis * What is the total amount of funding
on?
business? Is it needed immediately or later
¢ What is their target market? compa ny reach break even?
market? * How soon will this
* What are the trends in their target
 sine
Starting abu
a

ta

Business Skills

Executive summaries: What are the key

issues?
1 The following text is the executive summary of a business plan. Many consider this to be
the most important part of a business plan because it is what investors usually read
first. This section should always be written last. The summary follows a logical flow
highlighting the key issues of the entire plan.
Read the text and complete the diagram below by adding key words which express the
main business ideas of each paragraph.

The Circle’s marketing strategy will be

Business Plan The Circle based on web advertising, cooperation
4 oO with worldwide hostel booking agencies
Executive summary funds for renovating the property and and word-of-mouth, the latter generated
2 So supplying the necessary equipment and mostly through travel guide books such
Introduction furnishings. as Lonely Planet.
The Circle is a start-up business venture The target audience is the young,
being developed by a two-man, two- Market potential 4a stylish, single, low-budget traveler.
woman entrepreneurship team. The team There are a lot of budget hotels and
leader and director of The Circle is hostels in London but none of them Financial summary
Murrey Cole. 2a offers great value accommodation with Based on The Circle’s detailed financial
The objective of The Circle is to create an upmarket feel at a budget price. projections, if the company receives the
modern accommodation for young (and The Circle’s own market research required £250,000 in funding, it will
young-at-heart), low-budget travelers. shows that due to cheap air fares today’s 5 oO operate profitably in year one.
10 These people need a fun, backpackers travel a lot. They have The following list is a summary of the
environmentally-friendly and to a certain 3o slightly more money available than first year’s projections.
extent upmarket place to stay in London. backpackers a decade or two ago and
Year one sales: £151,000
The Circle will include a small café, a bar they expect more luxury than the
Year one expenses: £51,000
and a garden courtyard. generations before them.
a Net income before tax: £89,000
The project will require an initial Additionally, the amount of low-budget
Return on equity: 77%
investment of £250,000 to begin 3a travel has increased significantly over
operations. This investment will provide the last ten years, seemingly untouched
the initial working capital as well as the by difficult economic periods.

The Circle
ummm

Introduction Market potential Financial Summary

o. Stayvt-up. ousiness.........

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LTE
DENI
DINETTE
LOGIE
TEE
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LEE

LP
BELLE
EE

|G@ Putting together an executive

summary [crus taaaamnramaaeaemmemantcsemmenean SIRESREIS
PS Ee aX SSaaaaecstecencas te eT ORTREAAATT oe eEN pane
ennerrenstrrranemnemnare

Skills
2 Now write a similar executive summary for Corporate Fitness using the key words from
above.
 Business Skills

Using legal terminology: Describing a

company’s legal structure
1 Match the words in the box with their correct definition.

SILA |@ Modals: rules for different forms

71 TS of companies in Britain

1 tax return a aperson or organization which extends credit to others Grammar

b general name of the form used to file taxes
2 HM Revenue 6 pareure 10g
federal or local government
and Customs
c_ legislation regulating the activities of companies
3 creditor d_ legal responsibility for paying for something
A) tability e a department of the British government primarily responsible
for the collection of taxes and the payment of some forms of
5 Companies state support
House f asenior officer in a private company or public organization
6 who is the named representative on legal documents and who
company ; ; : alge:
is responsible for ensuring that the company and its directors
secretary ae
operate within the law
7 corporation tax g an executive agency of the U.K. government which holds a
register of all private and public companies in Great Britain
8 Companies Act
h_ tax charged on the company’s taxable income or profits
La
eS Terminology for forms of business ownership
2 Read the description of company structures in the U.K. and do the
following tasks. American English British English
* Sole proprietorship ¢ Sole trader
Think of different methods each type of company can use to raise capital.
¢ General Partnership ¢ General Partnership
Describe how each type of company is managed.
¢ Corporation ¢ Ltd. (private limited
Outline how each company’s profits are distributed.
(Corp. or Inc.) company)
(Sw
Explain to what extent the company owner(s) or shareholder(s) would lose
¢ PLC (public limited
their personal assets in case of bankruptcy.
company)

Sole trader Partnership

Set-up: You need to register as self-employed. Set-up: Each partner needs to register as self-employed.

Management and raising finance: You make Management and raising finance: Partners themselves
all the decisions on how to manage your usually manage the business, though they can delegate
business. You raise money for the business responsibilities to employees.
from your own assets and/or with loans Partners raise money for the business from their own
from banks or other lenders. assets, and/or with loans.

Records and accounts; You have to make an Records and accounts: The partnership itself and each
annual self-assessment tax return to HM individual partner must make annual self-assessment
Revenue & Customs (HMRC). You must returns to HM Revenue & Customs (HMRC).
also keep records showing your business The partnership must keep records showing business
income and expenses. income and expenses.

Profits: Any profits go to you. Profits: Each partner takes a share of the profits.

Liability: As a sole trader, you are personally Liability: Creditors can claim a partner's personal assets
responsible for any debts run up by your to pay off any debts - even those debts caused by
business. This means your home or other other partners. However, if a partner leaves the
assets may be at risk if your business runs partnership, the remaining partners may be liable for
into trouble. the entire debt of the partnership.

119
 Starting a business —

Business Skills

Limited liability companies

Main types: Private limited companies can Records and accounts: Accounts must be
have one or more members, e.g. filed with Companies House. Public
shareholders. They cannot offer shares to limited companies are strictly regulated
the public. by law to publish their complete and true
Public limited companies (plc) must have financial position.
at least two shareholders and must have
Profits: Profits are usually distributed to
issued shares to the public to a value of at
shareholders in the form of dividends.
least £ 50,000 before they can trade.
This often excludes profits retained in the
Seé-up: It must be registered (incorporated) business as working capital.
at Companies House.
Tax: lf a company has any taxable income or
It must have at least one director (two if
profits, it must pay corporation tax.
it’s a plc) who may also be a shareholder.
Public limited companies must have a Liability: Shareholders are not personally
qualified company secretary. responsible for the company’s debts, but
directors may be asked to give personal
ste Management and raising finance: A director
guarantees of loans to the company.
3 or board of directors make the management
decisions. Finance comes from adapted from www. gov.uk
shareholders, loans and retained profits.
Public limited companies can raise money
by selling shares on the stock market, but
private limited companies cannot.

e 3 Match each listening extract with a type of legal structure above. Then listen again
and note down the advantages and disadvantages of each legal type.

Ken and Bobby,

Skateboarding.com

Adrian Harris,
Dream Cars Europe

Gareth Evans, .
Marketingonline.com “i Helen Stuart,
s Stuart Homes
 After graduating in business studies from the University of
Cape Town, Tom Grant decided he wanted to combine his
interest in contemporary art and design with his passion for
real African coffee. Thus, The African Café, located in the
city center of Cape Town, was born.
The African Café interior with its changing art
exhibitions, fashionable wear and home accessories for
sale doesn’t represent the old, tribal Africa, but the young
and modern urban Africa. Only six months after the
opening, the Austrian advertising executive, Johannes
Heuriger, happened to walk into the café. He was so
impressed that he invited Tom Grant to Austria to meet his
friend, the marketing expert Hugo Basel. Both men offered
him a partnership in order to bring Grant’s business idea to
Europe. As a result, a second The African Café opened in
Vienna and became an immediate success.
Soon the partners were approached by people all over
the world who were interested in opening a version of The
African Café. Grant’s partner Heuriger was very much in
favor of expansion and wanted to franchise the cafés but
Tom didn’t like the franchise model, so in the end the
partnership broke up and Heuriger bought out Basel and
Grant. Grant kept ownership of the cafés in Vienna and
Cape Town. He and Heuriger signed a contract that the
company name Jhe African Café could be used by Heuriger
and his franchisees under the condition that the style of
the café was not changed and that no more than three
cafés were allowed in each state or country.
Two years later, one of Grant’s friends happened to
come upon three outlets of 7he African Café in L.A. and

The pitfalls of franchising told Grant that all of them were managed rather sloppily.
Shortly after that Grant discovered that The African Cafe in
Singapore had caused negative headlines as it had been
You are a team of consultants. Which course of involved in a restaurant food poisoning scandal. Grant tried
action would you recommend to Grant? to contact Heuriger to discuss these problems because he
Present your suggestions in class. was worried about the reputation of the brand name.
However, his phone calls were only answered by the
manager of the franchise and Heuriger never returned
Grant’s calls.
Project: Developing a business Reading: Campus dragons
idea : Read the following article and answer the questions on
page 123.

Campus dragons: The

entrepreneurial spirit is soaring
across universities in the UK
By Andy Sharman

Entrepreneurship is all the rage on British campuses. Forget protest,

hedonism or-apathy, today’s undergraduates are passionate about
setting up their own businesses.

Theirs, it seems, is the generation of the entrepreneur. Whether they

are launching an online takeaway service or a system for advertising
on eco-friendly fast-food packaging, many students are keen to do
their own commercial thing rather than work for a corporate giant.
Others want to develop skills that will make them attractive to
graduate recruiters. Either way, this trend has come at exactly the
Would you like to be part of the overall trend by becoming
right moment, when Britain is entering recession and needs all the
an entrepreneur?
entrepreneurs it can get.
Think of a business idea, either a new product or a service. At Warwick University, the entrepreneurs’ society has more than
200 members. Last month it staged the final of its “Be Your Own
Write a brief outline describing your product/service,
Boss” contest - their answer to the television programme Dragons’
explaining its advantages for prospective customers and
Den. The judges for the competition included representatives from
estimating its market success. some of the major names on the milk round of graduate recruitment.
Present your proposal in front of a team of other students. “There have always been entrepreneurs coming through,” says
Matthew Hale, Head of Environmental Sustainability at Merrill
Lynch, and a Warwick judge. “But there are more people giving it a
Web research: Finding out about 20 go, and there’s more advice out there. And those TV programmes
funding possibilities for start-ups have definitely been a catalyst.”

Other universities are in on the act too. ‘Idea Idol’, the brainchild of
Do some research about funding opportunities for start-
the entrepreneurs society at Oxford University, has attracted a
ups offered by your home town or state. Share your
number of high-profile judges like Theo Paphitis and Deborah
findings with other students. Meaden, business gurus and TV Dragons. The London School of
Economics has a thriving business plan competition, known as ‘Pitch
It'. And last year’s Business Ideas Challenge at Plymouth University
had a hefty prize kitty of £42,000 up for grabs.

Warwick’s competition, previously known as ‘BizCom’, this year

30 attracted investment from Merrill Lynch, which put up the £ 1,000
first prize, and Accenture, the consultants, who provided the £250
second prize. “What was interesting was there was such a large
audience of mostly students, some of whom were quite partisan, so
there was a really good atmosphere in there,” says Hale. “These
competitions make students realize that they can be taken seriously
by outsiders and that what they do in the short term can have a real
long-term relevance. And having a company such as Merrill Lynch
involved - and prize money - makes it seem more real.”

Entrants had to submit a 250-word business plan and the 55 entries

were whittled down to four, after which the finalists had to write up
a business proposal. The final challenge was to pitch to the panel of
judges, and answer their questions, in front of an audience of more
than 100 students.
 Steve Barnes, a director of e-resistable, the online takeaway service Why are many British students currently enthusiastic about
that took home the £1,000 prize at Warwick, says the competition set ting up their own businesses?
has been a vital experience. “Even as a confidence boost and to see Wh at role do British universities play in this trend? Use
where we are with the business it was invaluable,” he says. “It was
Wa rwick University as an example.
the first time we'd pitched to an investor who was going to cast a
Wh y do well-known companies take over the role of investors
serious critical eye over the business, and the judges really didn’t
50 mince their words; they really went for it sometimes.” in these contests for entrepreneurial talent?
What were the requirements for taking part in Warwick
Un iversity’s “Be Your Own Boss Contest” this year?
What were the benefits for this year’s winners?

All four judges gave the e-resistable team the nod and it’s not hard to
see why. Launched in May 2007, the website allows customers to
order takeaways over the internet, and already has 130 restaurants
on its books. The three 20-year-old directors - all BSc management
students from Warwick Business School - chose to forego important
banking internships last summer to build the business.

They say now that, if they double the number of restaurants signed
up to their service, they will be able to pay themselves graduate
salaries and have enough money remaining to run and grow the
60 business. “They put together a strong business plan that was a
thoughtful, to-the-point document - which is something that
investors are looking for,” says Warwick judge Hale. The judges were
also impressed that the company was trading profitably, and the
business model was “scalable” - it has the potential to grow.

65 Warwick Entrepreneurs began in March last year and runs

workshops such as how to protect your business ideas, how to
market your business, and how to be an effective networker, “which
is key either with a graduate recruiter or starting your own
business,” says Kostas Mavroulakis, president of Warwick
70 Entrepreneurs.

Warwick University itself is a hive of business activity, with a

thriving business school, a science park for business start-ups, and a
business park next door. Each finalist said they received some sort of
instruction in starting a business as part of their course. Even the
75 engineering students do a module on starting their own company.
The Independent
 wp Unit 2, page 19

Role-play: How to make good people stay

Get into pairs and read your role cards. Suggest ideas and try to negotiate the best model to
encourage good people to stay with your company. Agree on a package that would have the
desired effect and still be economically feasible.

Situation: A few years ago you and your partner started A//Rounders, a company which manufactures
sports goods for outdoor enthusiasts.
At present A//Rounders \s in a crisis, due to its high staff turnover.
You want to be able to attract talented staff and you know that such people are difficult to keep. It is
clear that there should be some changes made in the company’s HR policies, but you and your partner
advocate different approaches.
Read your role card and suggest your ideas. Feel free to suggest other benefits, as well.

You are a graduate of a prestigious business school, where you did an MBA.
You want to apply what you learned in your lectures on human resource management.
You want to raise salaries, provide full medical benefits, a retirement plan and an annual bonus. Although
A
Student
this kind of benefit package will put a greater strain on the company finances, you are convinced that it
will attract and keep bright young workers in the long run.

Charts: Describing bar and pie charts

1 Describe the bar chart to Student B, who will use your description to complete the template on page 39.
Be sure not to show it to him/her until the chart is complete!
iS
S

CEE
Bar chart Chart 1: Sales performance of Brand A and Brand B, July-December

Brand A is a soft drink that

A
Studenthas been on the market for
decades. Brand B was
launched last July. The graph
shows the development of
sales at one supermarket.

SAAS
 > Unit 4, page 40

Role-play: Choosing the right distribution channel “

t. Read about SuperStrude/ and have a look at your role card below. Student A is the owner of Nice Price: —
iser
SuperStrude/, student B the owner's partner and investor, students C and D are company - up-scale gen eral merchand
groceries
om employees with different agendas. Present your arguments in the role-play, making use of s with wide range of
ence
Oh. the graphs and company profiles on this page. _ known for pleasant ambi
a
and ability to set trends
eat SNS sigeese
TOOL

Situation: SuperStrudel is a European bakery which started operating in the U.S. five years ago. It
specializes in hand-crafted baked goods - breads, cakes and pastries - which have become a hit with Ce
: ; : ; i : - trying to revamp image =
health-conscious consumers who appreciate the use of organically grown ingredients. The company is = general merchandiser with |
also unique in that it is run on a business model emphasizing employee participation, i.e. employees _ large fooddepartment =
are involved in the decision-making process and receive a share of the profits. A year ago the owner :
Matt’s Market:
Us pressed to buy new equipment and quickly found an American partner who was willing to invest ~ food specialty chain with
in the bakery. small stores
SuperStrudel has become so successful that it has caught the attention of major supermarkets. It has - sells gourmet and house
been approached by all six major food retailers in the area, who have expressed interest in distributing brand products
- at reasonable prices
its products. This is a unique opportunity to expand. The owner is now going to meet with his partner
- not all products organi
and employee representatives to decide which retailer would provide the best distribution channel.
Green Goddess Foods:
|= sells large range ofnatural
You are the owner’s partner and investor. You are becoming impatient with the owner’s reluctance to - and organic products 4
_ including body care and
adapt to the realities of the market. This is a unique opportunity to establish SuperStrudel as a :
| some household products
mainstream brand. You think that the time has come to leave behind all this adolescent idealism and i imposes high quality ee
Student
B go for market share and profits. After all, this is the U.S. Standards

Best Bargain 27.0% 15.0%

f
Others 29.1%
King’s 15.0% 10.0%

5.0%

0.0%

-5.0%

Nice Price 14.0% -10.0% =2 2s

= 2
Green Goddess = 2 &
+ 00 iS ae = ee Sse
Foods 1.7%
BS = 8 0 22 B38
Matt’s Market 4.2% BigMart 9.0% Z

Customer rating of shopping experience” Average wage/hr. for sales clerks and cashiers (first year)

$16.00
$ 14.00
$12.00
* On a scale of 20. $ 10.00
Includes factors $8.00
such as satisfaction $ 6.00
with store layout, $4.00
lighting, helpfulness $2.00
of staff. $0.00

125
 Files

wp Unit 8, page 80 |

Negotiating: Getting what you need

Successful negotiating is not about pushing through your ideas but about taking both your
and your counterpart’s interests into account. Spend a few moments playing a new version of
The Harvard Orange game, then discuss your results in class.

Situation: There’s only one orange left in your residence hall and no chance of buying another one
anywhere. Both you and your flatmate feel you need the orange and have good reasons for thinking so.

You need the orange as you’ve got a severe cold coming on and freshly squeezed orange juice is
really the only thing that will help. You have to sit a written exam the next day. You feel entitled to
the whole orange as one orange isn’t much anyway and you need to stay fit.
Student
B

wp Unit 8, page 80 |

‘Role-play: Negotiate your dream car

Student A has been thinking about buying a car for some time. Now a friend of a friend has offered to sell
—= his car for $5,000. Student A has decided to talk to the bank about a standard loan to buy the car.
Student B is the bank advisor.

Study your role card. Work out your objectives and any concessions you could make.
Then role-play the negotiation.

You are a student in your first year of study. Your parents are not pleased about you wanting to buy a car.
They have made it very clear that you would have to finance this luxury yourself.
Therefore, you have recently taken on a small job to cover the running costs of the car but also to save a bit.
A
Student
Your objectives:
¢ to keep your fixed deposit account under almost any circumstances because
you would like to use this money for traveling around the world after graduation
¢ to bargain down the interest rates for a loan as much as possible
c: Bargaining
What you can offer:
* aregular part-time job; income $500 a month Would you consider ...
* a fixed deposit account with your bank, with an investment period of 3 years; What do you mean by ...?
approx. $5,700 will become due in two years How do you think we can achieve this goal?
What you have found out: Ca an you offer any alternatives?
rnatives?
; % d Wh ) ee
* rise in borrowing rate to 10% NOONE nae
: nee ; ; D fee C )
* rise in interest on savings deposit to 8% Dried! TSE ypuetiie Ree tae
 wp Unit 9, page 90

Role-play: Committee work at

university
Get into groups of six. Decide who will take the minutes. Read about
Winstead Metropolitan University and look at your role card below. Then, in
Agenda for the meeting groups of five, role-play the situation, while the sixth person takes the
minutes.
e Date of the Open House
e Events to be included Situation: The Business Studies department of Winstead Metropolitan University has
e Financing of the Open a problem: in recent years enrollments have been falling. The dean thinks one reason
House for this may be that prospective students are simply not well enough informed about
the university department. There are several university-level institutions - including a
e AOB
technical university, a school of nursing, an art academy and a school of music - in
the region, some of which have been more successful in marketing their programs. In
view of this, the department has decided to schedule an Open House for secondary
school students who are likely to continue to university after their school-leaving
exams. The student union has volunteered to organize the event. A committee is now
Ec: Participating in meetings
meeting to discuss details.
| think this was a result of ...
How about if we ...
You feel that in recent years business has acquired too much influence in higher
Let’s keep in mind that ...
education and strongly believe the two should be clearly separated. You think the
It looks as though ...
department should maintain ties to NGOs. You would like to propose that the Open
Can | come in here, please?
B House event include a bake sale, with the proceeds going to an NGO. You even think
Student
The way | see things ...
it would be a good idea if an NGO attended to present its activities.
| don’t quite see what you’re getting at ...
Exactly how is that going to work?
!’m afraid | missed that. Would you mind
Follow-up:
going over it again?
Write an email to the Dean of the Business Studies department at Winstead
Can we have a vote on this?
Metropolitan briefly summarizing the outcome of the meeting. Tell him/her
We’re running short of time ...
that you are attaching the minutes.

127
 wp Unit 11, page 109

= Describing trends
ys
Describing trends: Economic growth c
GDP growth started at (minus) ...% in ...

3 Describe Russia’s economic growth to student A. Then listen There was no growth in ...
to student A telling you about Brazil’s economic development. There was negative growth of ...% in ...

Use the template on page 109 to draw the graph. GDP increased sharply / rocketed to ...% in ...
GDP fell dramatically / plummeted from ...% to ... %.
Growth fluctuated around ... %.
The growth rate remained stable at ... %.
GDP grew by ...% in ...

GDP growth of Russia

B
Student

> Unit 11, page 107

Role-play: Investor’s choice

You are going to represent Brazil at a trade fair. A British investor who is
planning to set up a business in one of the BRIC countries is going to hold a
Q&A session. Try to convince the investor of Brazil’s advantages for foreign
direct investment (FDI).

Presenting arguments
ate Representative of Brazil
There are a number of reasons why The British investor is thinking about setting up a chain of coffee houses in your
investing In ... country. He or she will question you about the following points:
The first (second) reason is ... B
Student : aa Ne ;
* population: ca. 200 million inhabitants, average age: 28,
What’s more ... / In addition to ...
urbanization: 86% of total population
There are several advantages in
* economy: GDP per capita $10,200, unemployment rate 7.9%, inflation rate 5.7%
investing in...
e legal system
One (obvious) advantage is ...
While this might seem to be a If you have any questions, double-check with your country profile on page 106.
disadvantage, in fact .. Your country has always had a strong coffee culture, so there are already a lot of
In general, . local coffee shops and McCafé and Starbucks have also been there for a while.
So, in a nutshell, Try to present this particularly competitive environment in its most positive light.

44 aS

Ol
 ie—

tional Super arket

chain
Is predominantly food
(85%)
senate.
DeaMtnnre
ee

: Role-play: Choosing the right distribution channel

Read about SuperStrudel and have a look at your role card below. Student A is the owner of NicePrice:
SuperStrudel, student B the owner’s partner and investor, students C and D are company _- up-scale general mercha
. ndiser S

employees with different agendas. Present your arguments in the role-play, making use of with wide ran ge of gr eres
: pe pleasan ambience—
the graphs and company profiles on this page.
litytosettre
Situation: SuperStrude/ is a European bakery which started operating in the U.S. five years ago. It _—_sa
specializes in hand-crafted baked goods - breads, cakes and pastries - which have become a hit with
health-conscious consumers who appreciate the use of organically grown ingredients. The company is
also unique in that it is run on a business model emphasizing employee participation, i.e. employees
|
are involved in the decision-making process and receive a share of the profits. A year ago the owner
was pressed to buy new equipment and quickly found an American partner who was willing to invest : food specialty chainwith
a a. —
in the bakery.
SuperStrudel has become so successful that it has caught the attention of major supermarkets. It has = sells gourmet and hous e
been approached by all six major food retailers in the area, who have expressed interest in distributing brand products.
|- at reasonable prices
its products. This is a unique opportunity to expand. The owner is now going to meet with his partner s organic :
=n ot allpro ct 3
and employee representatives to decide which retailer would provide the best distribution channel. JESS rec e cease TER E

|Green Goddess Foods:

| - sells large range of natural |
O You are a SuperStrude/ employee. You have been with the company ever since it was founded and have andorganic products
~
c always admired the owner for sticking to his/her principles. You don’t like Best Bargain, because as far as
)
Oo you’re concerned it exploits its staff. You also know that it puts its suppliers under pressure to deliver their
re
~

Y) goods at the lowest prices. Any other distributor would be preferable.

Market share of grocery retailers Sales growth in the last three years
Best Bargain 27.0%

Others 29.1%
King’s 15.0%

Nice Price 14.0%

Green Goddess
Foods 1.7%

Matt’s Market 4.2% BigMart 9.0% Price

Nice

Customer rating of shopping experience” Average wage/hr. for sales clerks and cashiers (first year)

$16.00
$14.00
$12.00
* On ascale of 20. $10.00
Includes factors $8.00
such as satisfaction § 6.00
with store layout, $4.00
lighting, helpfulness $2.00
of staff. $0.00

Price
Nice
Price
Nice
 Files ; oo

wp Unit 9, page 90 |

Role-play: Committee work at

university
Get into groups of six. Decide who will take the minutes. Read about
Winstead Metropolitan University and look at your role card below. Then, in
Agenda for the meeting groups of five, role-play the situation, while the sixth person takes the
minutes.
Date of the Open House

° Events to be included : Situation: The Business Studies department of Winstead Metropolitan University has
e Financing of the Open a problem: in recent years enrollments have been falling. The dean thinks one reason
House for this may be that prospective students are simply not well enough informed about
e AOB the university department. There are several university-level institutions - including a
technical university, a school of nursing, an art academy and a school of music - in
the region, some of which have been more successful in marketing their programs. In
view of this, the department has decided to schedule an Open House for secondary
school students who are likely to continue to university after their school-leaving
exams. The student union has volunteered to organize the event. A committee is now
cE: Participating in meetings meeting to discuss details.

| think this was a result of ...

How about if we ... You have been an active member of the student union for two years. You think that
Let’s keep in mind that ... the Open House should offer a series of sample lectures that prospective students
It looks as though ... can attend, in order to get an idea of what studying at the university is like. You think
Can | come in here, please? C
Student
that the students could profit from cooperation with local businesses. You would like
The way | see things ... to propose inviting local business leaders.
| don’t quite see what you’re getting at ...
Exactly how is that going to work?
I’m afraid | missed that. Would you mind Follow-up:
going over it again? Write an email to the Dean of the Business Studies department at Winstead
Can we have a vote on this? Metropolitan briefly summarizing the outcome of the meeting. Tell him/her
We’re running short of time ... that you are attaching the minutes.
 Reading: The BRIC countries
4 Note the factors that have contributed to Russia’s growth and think of five
questions you have concerning the other countries. Tell your group what you have
read and answer each other’s questions. Then complete the mind map on page 105
with further points from the texts.

. : = a) / == : = > Unit 11, page 106

Country profile: Russia As a consequence, SHER uke ile pes aeeen Ve 2007. ye; is
become more frequent since 2005, with Russia’s most important trading partner,
After the breakup of the Soviet Union __the aim of reasserting control in key accounting for 50% of all trade.
in 1991, Russia had to struggle with industries. Russia has been suffering from relatively
a run-down manufacturing base, a Russia accounts for almost 11% of world high inflation rates, ranging from more
weak banking system and a poor oil production and one quarter of natural — than 90% in 1999 to a record low of
business climate. In recent times, gas. It is also.a leading producer of coal, slightly over 7% at the end of 2007.
however, the country’s GDP has iron ore, gold and diamonds. The oil and Despite the difficult business
grown significantly, especially gas extraction industries lack efficiency environment, foreign direct investment
through the supply of natural and are a source of significant pollution. (FDI) has picked up in the years to follow, [a
resources, and business Industry is dominated by large industrial totaling around $ 47 billion in 2007. ee
opportunities have increased. Some enterprises. Small and medium-sized Successive governments have tried to
challenges remain, mostly as a enterprises (SMEs) account for only hold government spending down, hence
legacy of the Soviet era, in particular, 10-15% of Russian GDP, compared with neglecting necessary investment in
difficulties in dealing with typically 50% or more in developed infrastructure and in the educational
government bureaucracy and the market economies or other emerging system.
complex legal system. economies like India and China. Russia is also facing a demographic
Due to the strong rouble, record-high crisis: the number of Russians has fallen
Under President Putin a number of
international oil prices and a hike in by 4 million. This is worsened by low life
economic reforms were introduced, but
private consumption, Russia’s real GDP expectancy among men.
he also made sure that the government
grew by an annual average of 5.6% a year
maintained control over the economy.
TANTS

> Unit 11, page 107 |

Role-play: Investor’s choice

You are going to represent Russia at a trade fair. A British investor who is
planning to set up a business in one of the BRIC countries is going to hold a
Q&A session. Try to convince the investor of Russia’s advantages for foreign
direct investment (FDI).

Presenting arguments Representative of Russia

The British investor is thinking about setting up a chain of coffee houses in your
There are a number of reasons why country. He or she will question you about the following points:
investing In ... Student
C
e population: ca. 140 million inhabitants, average age: 38,
The first (second) reason Is ...
urbanization: 73% of total population
What’s more ... / In addition to ...
* economy: GDP per capita $16,100, unemployment rate 6.4%, inflation rate 14.1%
There are several advantages In
e legal system
investing in ...
One (obvious) advantage is ... If you have any questions, double-check with the country profile above.
While this might seem to be a Although your country’s traditional drink is tea, people have now taken to Western-
disadvantage, in fact ... style coffee houses. There are already two strong local chains and of course Starbucks
In general, ... and McCafé, but they are concentrated mainly in Moscow and St. Petersburg. Try to
So, in a nutshell, ... present this particularly competitive environment in its most positive light.

Ww
Files

Role-play: Small talk or deep talk?

Small talk, An American company has organized a reception to welcome a business

big effect partner from another country. One of you is the visitor, the other an
employee of the company receiving the visitor.

Some people dismiss small talk

as being a waste of time. Far Your profile: | You are an American who works for the U.S. subsidiary of a well-
from it. Small talk, as every p=) known, state-of-the-art high-tech company. You have a key role in the
c
diplomat knows, has a crucial ® department responsible for environmental policy.
ae)
function in breaking the ice, 2
a) The situation: One of the company’s best business managers with a background in
establishing rapport and building
environmental engineering has been sent to the States to be part of
long-term relationships. The
a new project team. Your department has organized a welcome party
topics may seem trivial, but their
reception for today and you are about to meet him/her. A busy week
effect is not.
has finally come to an end and you are looking forward to this party.
A favorite topic in Europe and the
U.S. is, of course, the weather. In Your task: As one of the hosts, you want to make your colleague feel
a business situation it is common comfortable and welcome. You will start up the conversation with
to exchange personal some nice, friendly comments. Of course you'll exchange names and
information, comments on the you'll show interest by asking where s/he is from and other general
trip just completed and remarks questions about his/her background. You don’t want to engage in
about the food being shared. By talking shop just yet because you feel more comfortable getting to
engaging in small talk, you show know someone a little bit first, and anyway, your first business
an interest in your business meeting is planned for Monday morning, 9 a.m. You want to keep the
partner and demonstrate respect conversation light to make your colleague feel relaxed.
for their culture. This serves to
make you feel comfortable with
each other and set the stage for
future business relationships. What conclusions can you draw from this role-play about cultural differences?
 w> Unit 3, page 28
Listening: LEARNing to listen
3 Read the following email and role-play a telephone conversation according to the
instructions on your role card. Make sure you follow the LEARN concept.

From: [email protected]
To: Frank.Meier
Subject: Credit card verification

Dear Frank,
We are very happy to tell you that the verification of your Visa card went through without any problem.
Please use our telephone ordering service at 0800-959-8794 from 8 a.m. to 8 p.m. Monday through
Friday EST to place your order.

Sincerely,
StreetWise.com

Please do not respond to this email.

You are Frank Meier. You call back the next day to place your order.
aa)
tee You want to order the following products, but you have forgotten to note down the prices.
c
0)
ne)
/ still believe in Santa Claus, number 118669361
=|
— College Hero, number 128037307
“”)
Mr Messy, number 113577610

Your delivery address in the U.S. has changed. It is now: Birgit Schmidtbauer, 305 Einstein Avenue, 55199
Minneapolis, Minnesota. This is a friend who is going to bring the T-shirts to Germany. She is returning to
Germany next week, so you would like to have the goods sent to her as quickly as possible.

ww Unit 6, page 59

Presentations: Describing a product

Describe the e-reader to your partner. Then compare the two products
in terms of readability, data input feature, storage capacity, size, weight
and price. Then discuss whether you would use an e-reader for reading
and if so, which of the two you would prefer.

E-reader: Sony PRS-T2

Manufacturer: Sony
a Screen: 6" (15.2cm) diagonal
is 600 x 800 pixels
= Electronic paper display
o Input: Touchscreen, graphical user interface, next/prev/
back button
Memory: 2 GB
Connectivity: WiFi,
USB port,
built-in stereo speakers,
3.5mm stereo headphone mini-jack
Battery: Lithium-ion battery
Physical size: 110 x 173 x 9.1 mm (WxHxD)
Weight: 164g
Price: $130
Files

we Unit 4, page 38/39

Charts: Describing bar and pie charts

1 Describe the pie chart to student A, who will use your description to complete the template on page 38.
Be sure not to show it to him/her until the chart is complete!

: Chart 2 Ages
m
aa]
Pie Chart
o 0-12
U Sociologists in the U.S.
Fe
) recently published a
Mi 13-17
study on shoplifting. The [9 18-29
chart below breaks down Mm 30-44
shoplifting according to
age group. MM 45-64

MM 65+

> Unit 11, page 109

Describing trends: Economic growth EE Sescrbing trends

GDP growth started at (minus) ...% in ...
3 Describe Brazil’s economic growth to student B. Then listen to There was no growth in ...
student B telling you about Russia’s economic development. There was negative growth of ...% in ...
Use the template on page 109 to draw the graph. GDP increased sharply / rocketed to ...% in ...
GDP fell dramatically / plummeted from ...% to ... %.
Growth fluctuated around ... %.
The growth rate remained stable at ...%.
GDP grew by ...% in ...

iN
GDP growth of Brazil

Student
A

OPSNL
PT AY AY A?ee GA GA?ee ASAPoe AToo)ttn A OmOMaamne
RETco? AES SPPPP
NTR ee UR Se OnE
SP gS gS?PPgO? eh S eee ce?CS)»
oO? PaaS?
| Source: World dataBank
 wp Unit 4, page 40

Role-play: Choosing the right distribution channel

Read about SuperStrudel and have a look at your role card below. Student A is the owner of Nice Price:
s
SuperStrudel, student B the owner's partner and investor, students C and D are company . up-scale general s
eries
employees with different agendas. Present your arguments in the role-play, making use of with wide range of groc
ence
the graphs and company profiles on this page. _ known for pleasant ambi
and ability to set trends”
Situation: SuperStrude/ is a European bakery which started operating in the U.S. five years ago. It
_BigMart: -
specializes in hand-crafted baked goods - breads, cakes and pastries - which have become a hit with
| - trying to revamp ieee i
health-conscious consumers who appreciate the use of organically grown ingredients. The company is > general merchandiser with
also unique in that it is run on a business model emphasizing employee participation, i.e. employees large food department _
are involved in the decision-making process and receive a share of the profits. A year ago the owner
Matt's Market:
was pressed to buy new equipment and quickly found an American partner who was willing to invest
-food specialty chain with
in the bakery. “gmallstores = si
_- sells gourmet and house i
SuperStrude/ has become so successful that it has caught the attention of major supermarkets. It has
been approached by all six major food retailers in the area, who have expressed interest in distributing brandproducts
-- at reasonable prices . :
its products. This is a unique opportunity to expand. The owner is now going to meet with his partner
- not all products organic
and employee representatives to decide which retailer would provide the best distribution channel.
| Green Goddess Foods:
| - Sells large range of natural :;
Q You are a SuperStrude/ employee. You have worked with SuperStrude/ for the last year. On the whole, you | andorganic products i
~
including body careand
0)
think the atmosphere is good, but the pay could be better. You recently got married and your new i
xo) some household products ;
> brother-in-law manages the local BigMart. He has offered to buy you a new car if you can use your - imposes high quality
p=)
0) influence to help put SuperStrude/ products on his shelves. standards

PaST FT

Market share of grocery retailers Sales growth in the last three years
Best Bargain 27.0% 15.0%
Others 29.1% 9
King’s 15.0% 10.0%

5.0%

0.0% :

-5.0% ;

Nice Price 14.0% -10.0% == = 7m

Green Goddess = a S © LY 3
Foods 1.7% % 2 S & = Oo GQG
oa 4
% # == 58 Lu8
Matt’s Market 4.2% BigMart 9.0% Z

Customer rating of shopping experience” Average wage/hr. for sales clerks and cashiers (first year)

$16.00 '
$14.00
$12.00
* Ona scale of 20. $ 10.00
Includes factors $8.00
such as satisfaction $ 6.00
with store layout, $4.00
lighting, helpfulness $ 2.00
of staff. $0.00 = Da o i= ow 2B
aCoD) oO
m po
00
é
2
& =
© ve
a8 533
a
g
ae 8
Fz,
ol == «&88
|

segnnaneeeennen
 Files

2% Frebrgs Keun

Ror Butinesy

Role-play: Committee work at

university
Get into groups of six. Decide who will take the minutes. The other five

Agenda for the meeting students will read their role card. Then, in groups of five, role-play the
situation, while the sixth person takes the minutes.

e Date of the Open House

e events to be included
Situation: The Business Studies department of Winstead Metropolitan University has
e Financing of the Open a problem: in recent years enrollments have been falling. The dean thinks one reason
House for this may be that prospective students are simply not well enough informed about
e AOB the university department. There are several university-level institutions - including a
technical university, a school of nursing, an art academy and a school of music - in
the region, some of which have been more successful in marketing their programs. In
view of this, the department has decided to schedule an Open House for secondary
cE: Participating in meetings school students who are likely to continue to university after their school-leaving
exams. The student union has volunteered to organize the event. A committee is now
| think this was a result of ... ; , :
meeting to discuss details.
How about if we ...
What do you think about ...?
Let’s keep in mind that ... You are new to the student union. You think that the Open House should show
It looks as though ... students how exciting the social life is at Winstead Metropolitan. You want the
Can | come in here, please? department to put on a big party with a popular band. You happen to have a friend
The way | see things ... D
Student
who has a band and would like to have the department engage him.
| don’t quite see what you’re getting at ...
Exactly how is that going to work?
i spe Follow-up:
I’m afraid | missed that. Would you mind
Write an email to the Dean of the Business Studies department at Winstead
going over it again?
Metropolitan briefly summarizing the outcome of the meeting. Tell him/her
We’re running short of time ...
that you are attaching the minutes.
 Reading: The BRIC countries
' 4 4 Note the factors that have contributed to China’s growth and think of five
™“ questions you have concerning the other countries. Tell your group what you have
read and answer each other’s questions. Then complete the mind map on page 105
with further points from the texts.

. = s > Unit 11, page 106

oe Bes 3 a eae Sie ae é

Since China became a member of the China’s position as the largest emerging-
Country profile: China World Trade Organization (WTO) in 2001, market recipient of foreign direct
China, the third richest country in export growth has soared, averaging 29% investment (FDI).
GDP growth terms, is a large a year between 2002 and 2007. This Consumer price inflation has remained
storehouse of natural and human growth was mainly fuelled by foreign relatively low over the last few years.
resources and like India has an invested enterprises (FIEs), which have Demographically, China is in its go/den Lae
abundance of cheap labor. long dominated the country’s international years, meaning that there is a large
trade. The U.S. is China’s largest single- ‘supply of workers aged 15 to 65.
As agriculture is intensive, desertification
country export market followed by None : Basic-level education, in particular in
is a problem, and water resources need to
Kong, Japan and South Korea. rural areas, i§ aproblem. Enrollment in Fy
be managed carefully. Despite having the
Economic reforms have resulted ina universities: has‘gone up, although old-
world’s largest coal resources, the country
massive contraction of the state-owned — fashioned teaching methods are a matter
depends increasingly on oil imports.
sector. Lately the exchange rateofthe _ _ of concer
_ China’s economy grew by an average of
renminbi has been partially liberalized government spending,
% ayear between 1981 and 2007, with
although the currency remains — tural improvements are
anufacturing sector as the main
undervalued. :
contributor. However, private
Foreign investment inflows rocketed to
consumption has been low, possibly due
$138 billion in 2007, emphasizing - (FIE) is a form of
to the lack of a state welfare safety net. — A foreign invested enterprise
: pate
ay) establ ishment which enables a company to partici
nid in a foreign econom y. The main forms are joint|
= zs Wer ventures and wholly foreign owned enterprises.

w> Unit 11, page 107

Role-play: Investor’s choice

You are going to represent China at a trade fair. A British investor who is
planning to set up a business in one of the BRIC countries is going to hold
a Q&A session. Try to convince the investor of China’s advantages for
i foreign direct investment (FDI).
Presenting arguments
Representative of China
There are a number of reasons why The British investor is thinking about setting up a chain of coffee houses in your
investing in ... country. He or she will question you about the following points:
The first (second) reason is ...
¢ population: ca. 1.338 billion inhabitants, average age: 34.1,
| What’s more ... / In addition to ... urbanization: 43% of total population
| There are several advantages in rate 4%, inflation rate 5.9%
* economy: GDP per capita $6,000, unemploymen
investing in ...
e legal system
One (obvious) advantage is ...
| While this might seem to be a If you have any questions, double-check with your country profile above.
| disadvantage, in fact ... Your country is still a land of tea drinkers but with the entry of Starbucks, drinking
In general, ... coffee has become a status symbol. Try to present this particularly competitive
So, in a nutshell, ... environment in its most positive light.
 Files

wp Unit 9, page 90 |

Role-play: Committee work at

university
Get into groups of six. Decide who will take the minutes. The other five
students will read their role cards. Then, in groups of five, role-play the
Agenda for the meeting situation, while the sixth person takes the minutes.

e Date of the Open House

¢ Events to be included Situation: The Business Studies department of Winstead Metropolitan University has
e Financing of the Open a problem: in recent years enrollments have been falling. The dean thinks one reason
House for this may be that prospective students are simply not well enough informed about
e AOB the university department. There are several university-level institutions - including a
technical university, a school of nursing, an art academy and a school of music - in
the region, some of which have been more successful in marketing their programs. In
view of this, the department has decided to schedule an Open House for secondary
school students who are likely to continue to university after their school-leaving
exams. The student union has volunteered to organize the event. A committee is now
cE: Participating in meetings meeting to discuss details.

| think this was a result of ...

How about if we ...
ae Lu Professor Jones
Let’s keep in mind that ... w ; :
ahaa cuer 4 You are the faculty advisor to the student union. You want to make sure that the Open
0O u ae 5 pcan:
: iS House is a success, as it is important for the department to enroll as many students
Can | come in here, please? cd : . ; :
= HVE a Y) as possible in the next term. You have connections to Hatford, a local bank that is
€ way INS ... ‘ ‘
. ea 3 , eager to sponsor the event. This would mean that you would be able to provide glossy
| don’t quite see what you’re getting at ... : : :
brochures and refreshments from a professional catering service. In return for
Exactly how is that going to work? Ra Rene id inet t tt ; Kelanber
sponsorship the bank would expect the department to nam f :
I’m afraid | missed that. Would you mind P ; P P : PAI IRM LOE
going over It again?
We’re running short of time ...
Sorry, but I’m not able to go along Follow-up:
with that. Write an email to the Dean of the Business Studies department at Winstead
Metropolitan briefly summarizing the outcome of the meeting. Tell him/her
that you are attaching the minutes.
 Reading: The BRIC countries
4. Note the factors that have contributed to India’s growth and think of five questions you
have concerning the other countries. Tell your group what you have read and answer
each other’s questions. Then complete the mind map on page 105 with further points
from the texts.

page 106
eee ¢

On the other hand, the country has a loss-making public sector enterprises.
Country profile: India cutting-edge, globally competitive Consumer price inflation remains a
India is one of the fastest-growing knowledge-driven services sector, which problem: although it fell to roughly 4% in
economies in the world. Although it is the main reason for India’s economic the early 2000s, it has accelerated again.
has a long-established democracy, growth. Foreign direct investment (FDI) inflows
bureaucratic governments, The most important trading partners are used to be extremely low but jumped to
inefficient and ineffective legal the U.S. and China. $24.5 billion in 2007/08.
control systems, and corruption in Since India opened up to trade and India’s spending on infrastructure, which
high places have limited economic foreign investment, real GDP growth has is currently at 5% of GDP, trails far
growth for decades. In addition, the exceeded 8% every year since 2004. But behind that of China (around 10% of
huge and still growing population the strong national performance masks GDP).The country also still lags behind.in
has created social, economic and the fact that the southern and western educational standards: it has 17% of the
environmental problems. states, where the software industry and world’s population, but some 40% of the
the industrial activities are concentrated, world’s illiterates. On the other hand, it
India does not have a lot of natural
enjoy much stronger growth rates than has a large pool of highly educated and
resources, so most of the oil and gas
the rest of the country. vocationally qualified young people, even
used is imported.
India has been struggling to reduce its if they only make up a small fraction of
Sixty percent of the population is
budget deficit, but powerful interest the whole population.
employed in agriculture, but this sector
groups block reforms such as cutting
accounts for less than one-fifth of GDP.
government employment and closing

w> Unit 11, page 107

Role-play: Investor’s choice

You are going to represent India at a trade fair. A British investor who is
planning to set up a business in one of the BRIC countries is going to hold a
Q&A session. Try to convince the investor of India’s advantages for foreign
direct investment (FDI).

Presenting arguments Representative of India

The British investor is thinking about setting up a chain of coffee houses in your
There are a number of reasons why country. He or she will question you about the following points:
investing in ...
Student
D
The first (second) reason Is ... * population: ca. 1.166 billion inhabitants, average age: 25.3,
What’s more ... / In addition to ... urbanization: 29% of total population
There are several advantages in * economy: GDP per capita $2,900, unemployment rate 6.8%, inflation rate 8.3%
investing in ... e legal system

CHES eM sa If you have any questions, double-check with your country profile above.
While this might seem to be a
There is a wide range of coffee houses already in existence serving the young urban
disadvantage, in fact ...
middle class. Try to present this particularly competitive environment in its most
In general, ...
positive light.
So, in a nutshell ...
Files

‘=> Unit 3, page 30 |

se

Role-play. Complaining and apologizing

Role-play a telephone conversation between a frustrated customer of a health
club and a Customer Service agent. The agent should try to observe the
LEARN concept and both parties should come to an agreement in the end.

Customer Service agent

You are the Customer Service manager for Hercules Gym & Health Club.
The gym’s employees are instructed to explain conditions when the contract is signed.
B The conditions are clearly stated in the contract. In the case of membership for one
Student
year, conditions for cancellation are: member must give 30 days notice by registered
mail; membership can be cancelled for health reasons (doctor’s certificate is necessary)
or if member has moved to a place at least 15 miles from gym’s location. You realize that
sometimes prospective members don’t read the contract carefully.
 Audioscripts

CD1 ® | didn’t find my internship in the conventional way. Actually, |sat down and
made a list of the business people | admired most - two of them were
Track 1: Copyright statement actually in the same city as my university and in the fields | was interested
in. Then | used the internet to find details on their companies and their
addresses. Then | wrote customized letters to six of them, stressing my
Unit 1 personal qualities - you know, conscientiousness, enthusiasm,
resourcefulness - and told them how | thought employing me for a summer
Listening: Finding an internship could benefit their company. Then | sent them off with my CV. Four of the
people |’d written to replied and two offered me a job. | finally decided in
x ») Page 7, Exercise 4 @ Moderator > Marc @ Jennifer
favor of an environmental consultancy run by a really energetic woman who
@ Marion Brian © Simon
couldn’t afford to give me a salary, but my parents helped me out and |
@ OK, OK, thank you, if | could have your attention please. As you all know learned so much during the summer that this wasn’t an issue. | can only
we’re here today to discuss the issue of internships, how to find them, how recommend using your own imagination and creativity. It is one way to get
to get them, what pitfalls to avoid and I’m very happy that we have a around the fierce competition that’s out there and really makes a good
number of people here today who are willing to share their experience with impression. But - over to you Brian.
us and who can give us some first-hand advice. Marc, do you think you Hi, thanks for coming today. My name is Brian and I’m an MBA student
could start ... studying International Business. One of the requirements for our degree is
P Yes sure. Hi, yes, I’m Marc and I'd like to tell you about how | found my a summer internship abroad. | didn’t have to look for the internship myself
internship. but was placed by our German partner university at a German
| was sitting at my desk one Friday night last winter during final exams. | pharmaceutical company. However, beforehand | was interviewed by a
was sick of studying and felt a sudden urge to look for an internship for next recruiter who came to our campus. | kind of thought the questions he
summer. I’m majoring in accounting and so | began researching on a number asked were a bit personal, such as “What would you do if the German
of websites in that field without finding anything that really grabbed me. colleagues still hadn’t asked you around to their homes or whatever and
| was about to give up my search when | found the perfect internship. It you started to feel like an outsider?” but he probably asked those things
even paid a small salary and included housing. It was exactly what I’d been because he wanted to know about my level of commitment.
looking for. | was very happy to get the internship because the company has a
Then | noticed with horror that the deadline was at 5 p.m. and it was reputation for high standards and innovative products. Apart from a small
now almost 10:00. The entire application - résumé, recommendations, housing subsidy, | didn’t really get any monetary compensation for my
transcript, everything - should have been sent hours before. The perfect work, but | didn’t mind, as | learned so much. | worked in the Sales
internship was gone. | was crushed. department and performed a statistical analysis of sales force activities.
Then | decided to take a chance. | filled out the application and was My colleagues were great - they were very hard-working and very
going to submit it with a resumé | had on my computer. But that still left helpful when | had problems or questions. The company is famous for its
the recommendation and the transcript. There was no way | could get them “family atmosphere” - | guess you call it - and that’s certainly what |
before Monday. So | improvised. | wrote an email explaining my story and encountered.
clicked the ‘send’ button just before midnight. Overall, it was an excellent experience and | hope to be able to return
On Monday morning | received a friendly email thanking me for my to the company after | graduate next year.
application and saying | could have an extra week to send in the other And on my left I’ve got Simon. What’s your story?
documents. Hi, my name is Simon Hull. I’m a student at the University of Applied
Well, in the end | got the internship and | learned a valuable lesson. Sciences in Dusseldorf. I’m majoring in business with a specialization in
Deadlines may not always be true deadlines. If there is something you marketing.
really want to do, try anyway, because the deadline may be negotiable. So, My parents are food freaks and run an organic supermarket in my
let me pass you over to Jennifer. home town, so | guess you could say that I’m sort of predestined for a
® Yes. Hi, my name is Jennifer. career in food. So when | began looking for an internship | decided to apply
| graduated from Lake County Community College in May with a degree to American Fie/ds. | spent a year at high school in the U.S., so | was
in Office Management and six months of internship experience. already familiar with the States.
My last internship was fantastic, and | got it by pure luck. In November | | wasn’t sure I’d get the job, as you have to go through a tough
was talking to Alison, one of the staff members in the career counseling screening process and there’s lots of competition. | had to submit a
center, about obtaining an internship. She asked me, “Where would you portfolio containing my CV and references and then was invited to
ideally like to work?” | didn’t have to think long about that one. | like to Frankfurt for an interview. | had the feeling that the recruiter wanted to find
shop online for things like books and DVDs and so | knew immediately that out how good my English was. Like ... would | be able to function in an
booksonline.com was my dream. Alison told me that there was a possibility office ... or in a business situation like a native speaker. So she asked me
could intern at Books Online. She knew someone who worked there and things like “What would you do in such and such situation? And “What
was willing to make a call on my behalf. |was absolutely thrilled but didn't would you say if ...?” | thought she would never stop. And then she seemed
want to get my hopes up in case things didn't work out. Luckily, it wasn't really interested in making sure that | was serious about learning
he case. Alison's contact put me in touch with a Books manager who was something - you know, that | wouldn’t just spend the summer partying.
willing to meet with me. One week later |found myself sitting in the Anyway, | was overjoyed when | got an email saying that I’d been
corporate office at booksonline.com meeting with Shirley - my potential accepted for a ten-week paid internship in the Market Research
supervisor. The meeting went very well and | could hardly wait for a department in the headquarters in Minnesota. And that’s it. Does anybody
response. Waiting was the worst. It was getting close to Christmas and have any questions?
there was only a couple of weeks before | returned to school. | needed to
have an internship secured by the second week of class at the latest and |
was getting nervous. The day before Christmas | got an email from Shirley
saying | could start on January 8"!
And that’s all from me really ...

141
 udioscripts
iS

me a job. | finally decided in favor of an environmental consultancy run by a

Listening: Finding an internship really energetic woman who couldn’t afford to give me a salary, but my parents
Page 7, Exercise 5 Marc helped me out and | learned so much during the summer that this wasn’t an
ae)
issue. | can only recommend using your own imagination and creativity. It is
Yes sure. Hi, yes, I’m Mare and I'd like to tell you how | found my internship.
one way to get around the fierce competition that’s out there and really makes
| was sitting at my desk one Friday night last winter during final exams. |
a good impression.
was sick of studying and felt a sudden urge to look for an internship for next
summer. I’m majoring in accounting and so | began researching on a number
of websites in that field without finding anything that really grabbed me. Listening: Finding an internship
| was about to give up my search when | found the perfect internship. It
Sg ») Page 7, Exercise 6 @ Brian » Simon
even paid a small salary and included housing. It was exactly what I'd been ®

looking for. @ Myname is Brian and I’m an MBA student studying International Business.
Then | noticed with horror that the deadline was at 5 p.m. and it was now One of the requirements for our degree is a summer internship abroad. |
almost 10:00. The entire application - resumé, recommendations, transcript, didn’t have to look for the internship myself but was placed by our German
everything - should have been sent hours before. The perfect internship was partner university at a German pharmaceutical company. However,
gone. | was crushed. beforehand | was interviewed by a recruiter who came to our campus. | kind
Then |-decided to take a chance. | filled out the application and was going of thought the questions he asked were a bit personal, such as “What would
to submit it with a resumé | had on my computer. But that still left the you do if the German colleagues still hadn’t asked you around to their homes
recommendation and the transcript. There was no way | could get them before or whatever and you started to feel like an outsider?” but he probably asked
Monday. So | improvised. | wrote an email explaining my story and clicked the those things because he wanted to know about my level of commitment.
‘send’ button just before midnight. | was very happy to get the internship because the company has a
On Monday morning | received a friendly email thanking me for my reputation for high standards and innovative products. Apart from a small
application and saying | could have an extra week to send in the other housing subsidy, | didn’t really get any monetary compensation for my
documents. work, but | didn’t mind, as | learned so much. | worked in the Sales
Well, in the end | got the internship and | learned a valuable lesson. department and performed a statistical analysis of sales force activities.
Deadlines may not always be true deadlines. If there is something you really My colleagues were great - they were very hard-working and very
want to do, try anyway, because the deadline may be negotiable. helpful when | had problems or questions. The company is famous for its
“family atmosphere” - | guess you call it - and that’s certainly what |
encountered.
Listening: Finding an internship
Overall, it was an excellent experience and | hope to be able to return
Page 7, Exercise 5 Jennifer to the company after | graduate next year.
> Hi, my name is Simon Hull. I’m a student at the University of Applied
Hi, my name is Jennifer.
Sciences in Dusseldorf. I’m majoring in business with a specialization in
| graduated from Lake County Community College in May with a degree in
marketing.
Office Management and six months of internship experience.
My parents are food freaks and run an organic supermarket in my
My last internship was fantastic, and | got it by pure luck. In November |
home town, so | guess you could say that I’m sort of predestined for a
was talking to Alison, one of the staff members in the career counseling
career in food. So when | began looking for an internship | decided to apply
center, about obtaining an internship. She asked me, “Where would you ideally
to American Fields. | spent a year at high school in the U.S., so | was
ike to work?” | didn’t have to think long about that one. | like to shop online for
already familiar with the States.
things like books and DVDs and so | knew immediately that booksonline.com
| wasn’t sure l’d get the job, as you have to go through a tough
was my dream. Alison told me that there was a possibility | could intern at
screening process and there’s lots of competition. | had to submit a
Books Online. She knew someone who worked there and was willing to make a
portfolio containing my CV and references and then was invited to
call on my behalf. | was absolutely thrilled but didn't want to get my hopes up
Frankfurt for an interview. | had the feeling that the recruiter wanted to find
in case things didn't work out. Luckily, it wasn't the case. Alison's contact put
out how good my English was. Like ... would | be able to function in an
me in touch with a Books manager who was willing to meet with me. One week
office ... or in a business situation like a native speaker. So she asked me
ater | found myself sitting in the corporate office at booksonline.com meeting
things like “What would you do in such and such situation? And “What
with Shirley - my potential supervisor. The meeting went very well and | could
would you say if ...?” | thought she would never stop. And then she seemed
hardly wait for a response. Waiting was the worst. It was getting close to
really interested in making sure that | was serious about learning
Christmas and there was only a couple of weeks before | returned to school. |
something - you know, that | wouldn’t just spend the summer partying.
needed to have an internship secured by the second week of class at the
Anyway, | was overjoyed when | got an email saying that I’d been
latest and | was getting nervous. The day before Christmas | got an email from
accepted for a 10-week paid internship in the Market Research department
Shirley saying | could start on January 8th!
in the headquarters in Minnesota. And that’s it. Does anybody have any
questions about that?
Listening: Finding an internship
Page 7, Exercise 5 Marion
Unit 2
| didn’t find my internship in the conventional way. Actually, | sat down and
made a list of the business people | admired most - two of them were actually Listening: Talking about
in the same city as my university and in the fields | was interested in. Then |
used the internet to find details on their companies and their addresses. Then |
professional life
wrote customized letters to six of them, stressing my personal qualities - you
know, conscientiousness, enthusiasm, resourcefulness - and told them how | x ») Page 18,
Exercise 3
@ Moderator @ Reporter Charles Roberts, Career Rap
P Joanna Harris, Environ Consultants
thought employing me for a summer could benefit their company. Then | sent
™ Hello! Welcome to our weekly edition of Career Rap, our program for young
them off with my CV. Four of the people I’d written to replied and two offered
people starting out on their careers. This week our reporter Charles
Roberts has been talking to a young woman who’s working in what seems Yes, | would never have dreamt of working in such a field. But in fact the
like an unusual field. Let’s listen to their conversation. environmental consultancy business is a growth market. There is already a
Today I’m talking to Joanna Harris, who received her degree from Winstead huge demand for the kind of services we offer, and that is just going to
Metropolitan four years ago. Joanna, you were just getting used to the idea increase as time goes on.
that you could count on spending years in the same company when OK, Joanna, so what are your plans for the future?
dismissal hit you unexpectedly. Could you tell us about that? Well, the other day a friend of mine suggested that | should set up my own
Well, initially |thought that | was very lucky when | got this wonderful job consultancy, become self-employed. And ... hmm, it’s definitely an
offer from one of the most prestigious consultancies in the U.K., right after interesting idea.
graduation. So are you tempted?
Of course the six-month probationary period was tough, especially I'll certainly consider it.
because | was expected to work on so many different projects. So | was Well, make sure you let us know how you get on and | look forward to
really relieved when they turned my probationary contract into a proper talking to you again this time next year.
one. They even asked me which clients | would like to work with. So | Thank you very much for your time, Joanna. | wish you all the best.
thought I’d really hit the jackpot. Vv lt was a pleasure. Bye.
So it was a job with a lot of perks. Good bye and good luck.
It certainly was. | quickly got used to the regular, generous pay check, and And that’s all for today. We hope you'll tune in at the same time next week!
my life style changed completely. | got used to taking clients out to Good bye.
expensive restaurants and bistros. | also appreciated the fantastic fringe
benefits that the company offered: the private health insurance, retirement
Listening: Talking about
plan and flexible working hours. | had even started looking for a house or
flat to buy. professional life
And then out of the blue you had to clear your desk.
Page 19, Exercise 4 @ Reporter Charles Roberts, Career Rap
Yes, suddenly the company announced that it was laying off around a
P Joanna Harris, Environ Consultants
hundred people due to the general economic downturn. Redundancies
Part 2
were being made on a “last in, first out” basis, so | was out within 13
So would you say that you miss your former job?
months after uni.
Oh no, absolutely not. You see there are other compensations. It’s very
That’s awful. What did you do?
interesting work. Besides, because it’s such a small company, | have to
Well, to cut a long story short, | left London and moved back in with my
wear a lot of different hats. | take care of general office management, the
parents to save money. | started sending off applications but,
bookkeeping and communications - you could also say ‘PR’. | also
unfortunately, this time | wasn’t so lucky. All the big employers | wrote to
coordinate the activities of the people working on a project. This involves
returned my CV, saying that because of the recession they weren’t taking
planning a lot of meetings. | also design presentations for my boss and
on any new staff at the moment.
make arrangements for her business trips. | learn a lot, particularly about
And how long were you unemployed?
things we never talked about or studied at uni. It’s a very friendly, family-
I'd been looking for three months when | got this job offer from a small firm
like atmosphere, and | feel very much at home here.
specializing in environmental consultancy. They thought | had a good general
Could you tell us something about the kind of work the consultancy does?
business background and would be able to adapt quickly to the new field.
Sure. Before a company starts the construction of a big project, they
And because they were basically a start-up themselves, the salary they
contact us to find out what environmental standards they have to fulfill.
offered was pretty modest. We all work a lot, and when we’ve got an
Right. | see.
important deadline, | may even have to put in up to 60 hours a week.
| often have to accompany my boss on visits to construction projects and
That’s a very long working week!
factories for on-site assessment, to make sure that companies are
So would you say that you miss your former job?
complying with government regulations. This can involve a couple of trips a
Oh no, absolutely not. You see there are other compensations. It’s very
month. And sometimes we can have a kind of troubleshooting role, such as
interesting work. Besides, because it’s such a small company, | have to
when a company, often as a result of an accident, causes pollution and has
wear a lot of different hats. | take care of general office management, the
to provide for clean-up. Then we send an expert to the site and make
bookkeeping and communications - you could also say ‘PR’. | also
recommendations for remediation. And sometimes we simply have to deal
coordinate the activities of the people working on a project. This involves
with routine waste management.
planning a lot of meetings. | also design presentations for my boss and
Well, Joanna, this sounds very interesting indeed. And is certainly different
make arrangements for her business trips. | learn a lot, particularly about
from jobs we normally hear about ...
things we never talked about or studied at uni. It’s a very friendly, family-
Yes, | would never have dreamt of working in such a field. But in fact this
like atmosphere, and | feel very much at home here. environmental consultancy business is a growth market. There is already a
Could you tell us something about the kind of work the consultancy does? huge demand for the kind of services we offer, and that is just going to
Sure. Before a company starts the construction of a big project, they increase as time goes on.
contact us to find out what environmental standards they have to fulfill. OK, Joanna, so what are your plans for the future?
Right. 1 see. Well, the other day a friend of mine suggested that | should set up my own
| often have to accompany my boss on visits to construction projects and consultancy, become self-employed. And ... hmm, it's definitely an
factories for on-site assessment, to make sure that companies are interesting idea.
complying with government regulations. This can involve a couple of trips a And so are you tempted?
month. And sometimes we can have a kind of troubleshooting role, such as ll certainly consider it.
when a company, often as a result of an accident, causes pollution and has Well, make sure you let us know how you get on and | look forward to
to provide for clean-up. Then we send an expert to the site and make alking to you again this time next year.
recommendations for remediation. And sometimes we simply have to deal Thank you very much for your time, Joanna. | wish you all the best.
with routine waste management. Vv t was a pleasure.
Well, Joanna, this sounds very interesting indeed and is certainly different Good bye and good luck.
from jobs we usually hear about ...
 ®@ And that’s all for today. We hope you'll tune in at the same time next week! m Yes, we have to verify all credit cards issued by a foreign bank. It’s
Good bye. company policy. I’m afraid you can’t place your order until we’ve done that.
@ But ... how do you do that?
™ We need to call your bank. Could you give us a phone number?
Unit 3 @ Well, yes ... just a second ... Here it is ... It’s the Volksbank Tubingen at
07071-4173846. But there may be a language problem ... |mean I’m not
Listening: LEARNing to listen sure you'll find anybody at the bank who speaks English.
@ Don’t worry, we call foreign banks every day.
Page 28, Exercises 1 and 2 ®@ Call center agent Doris, Street Wise
@ OK.
@ Frank Meier, Customer
™@ Thank you Mr Meier. We should be able to verify your credit card within 24
Good morning. Street Wise. Doris speaking. How can | help you? hours at most. | suggest you call us back tomorrow.
Hi. I’ve just been trying to place an online order on your website but it Great.
won’t work. Is there anything else | can do for you, Mr Meier?
Could you tell me what the problem seems to be? No, thank you.
Everything works fine up to the point when | have to key in my delivery Thank you for calling. Have a great day!
address. Then | get a message saying that the address is invalid. Same to you. Bye.
OK. Is the shipping address outside the U.S.? Goodbye.
Yes, it’s an address in Germany.
Oh. I’m very sorry but we don’t ship abroad.
Telephoning: Evaluating telephone
You must be joking! The T-shirts you sell are so original. It’s a real shame |
can’t order them. performance
| understand that you’re upset.
Page 29, Exercise 1, Conversation 1 @ Customer
Wait, wait ... |have a friend in the U.S. who’s coming back to Germany next
® Jack, P Jeremy, Orion Telecommunications
month. Maybe he could bring the T-shirts with him.
That would be an alternative. If you like, you could place the order with me Recorded message: This is Orion Telecommunications Customer Service
now. department. If you would like information about our products and services,
Great. If |could do that, then. please press 1. For information about billing and accounts, please press
So, | suppose this is your first order with us. two. For phone and device support, please press three. If you wish to reach
WES; IS: our technical hotline, please press four. For all other enquiries, please
In that case | need your name and address. press five.
Sure. My name is Frank Meier. That’s M-e-i-e-r. Vv Phone and Device Support. Jeremy speaking.
OK. And what’s your billing address, Mr Meier? @ Yes, hello, |’m calling about a problem I’ve been having with my Horizon
It’s WeiBdornweg 37, 72076 Tubingen, Germany. cell phone. | bought it about six months ago and then about six weeks ago
Sorry, | didn’t get that. Could you spell that out for me, please? it began acting up on me.
Sure, the street name is WeiBdornweg, W-e-i-s-s-d-o-r-n-w-e-g number 37; P |’ll put you through to our technical support. Just a moment, please.
the city is Tubingen, T-u-e-b-i-n-g-e-n and the zip code is 72076. ® Orion Telecommunications. Customer Service helpdesk. Jack speaking.
Let me read this back to you: Frank Meier, WeiBdornweg 37, Tubingen What can | do for you?
72076. @ Hi, l’m calling because I’m having a problem with my Horizon cell phone.
Yes, that’s correct. It’s fairly new but it’s started acting up on me lately.
And what is your shipping address, Mr Meier? ® What do you mean by “act up on me”?
It's Tom Mueller, 212 Fairbanks Road.,55191 Minneapolis, Minnesota, USA. B Well, sometimes | lose the connection in the middle of a conversation.
Do you have an email address? Anyway, | ...
Yes, it’s [email protected]. ® |'ll put you through to our technical support. Just a second, please.
OK, I’ve got that. Now | need your credit card details. What kind of credit B Argh, how hard can it be to talk to the right person?!
card do you want to use? ® Hello, madam? I’m very sorry but all the lines are busy. Would you like to
I's a Visa Card. hold or should | put you through you to somebody else?
Could you give me the number please? @ Yes, please connect me with somebody who will listen to me!
Is 2572 0032 2566 0066. ® OK, madam. |’ll put you through to our Phone and Device Support. Hang on
And the security code? a sec.
Emm, where do | find that? > Orion Telecommunications. Phone and Device Support. Jeremy speaking.
It’s on the back of the credit card near the signature strip. The last three @ Hi again. I’ve just talked to you about the problems I’m having with my
digits. Horizon cell phone.
Oh, yes. It’s 105. > What kind of problems?
And what is the name of the issuing bank? & | often lose the connection in the middle of a conversation. | sent the
What do you mean by that? phone back to you about a month ago because it was still under warranty.
The bank which gave you the credit card. And then | was told you wouldn’t replace it because the battery was
Ah, yes. It’s the Volksbank Tubingen. rusting.
Volksbank? Could you spell that? > Well, you'll probably find that the phone had come into contact with
\V/-o-I-k-s-b-a-n-k moisture,
Is that a German bank? & No, that would have been impossible because | always carried the phone in
Yes, it is. my briefcase. I’m very upset about this because | think it’s a purely
Oh, in that case I’m afraid we'll have to verify your credit card, Mr Meier. technical problem and the company should either fix it or replace the
Verify my credit card? phone. It cost me $200. Is there anyone | can speak to about this?

144
 'm afraid not, madam. Your phone has a rechargeable Lithium-ion polymer Well, it began at the desk. We had to wait half an hour to be checked in -
battery. The performance of the battery depends on a variety of factors - for after a long flight - because you were taking care of other groups. Then it
example, the network configuration, how strong the signal is, the turned out that there were not enough singles available - after we had
temperature of the surroundings, the settings you’ve chosen, the other explicitly reserved them. Several of our participants had to share rooms.
devices you’ve attached to your ports. It can also depend on your voice, data Well, I’m sorry to hear that.
and other program usage patterns. Apart from that, corrosion is often the We had a similar problem the next morning. We were given a meeting room
natural result of normal exposure to air and there is nothing really we can do. that was far too small for our purposes and there was no alternative on the
But not after 5 months! It appears you are selling cell phones with batteries first day, because all the others were occupied.
which last the exact time the warranty covers. This isn’t fair. Vv That must have been very annoying. | assure you this won’t happen again.
Is there anything else | can do for you, sir? Then there were more complaints from the participants: the water in the
pool was dirty, three of the treadmills in the fitness center were out of
order and finally, when we got our bill, we discovered that we had been
Telephoning: Evaluating telephone overbilled for the number of rooms we had originally booked.
performance Ms Stone, is that right? It sounds as though we owe you an apology for the
inconvenience we caused you. Can | suggest you send me all this in
Page 29, Exercise 1, Conversation 2 @ Kelley, Fifth National Bank
writing? I’ll check the details with the manager at the Desert Springs hotel.
P Andrew, Customer
| should be able to get back to you next week. | think that your company
® Fifth National Bank. Kelley speaking. Can | help you? will be able to expect a voucher for your next stay at a hotel of your choice.
> Hello, l’ve just moved to Dublin and |’m interested in opening an account. Well, thanks very much for dealing with this. I'll send you all the details this
A friend of mine has told me that you offer good conditions for both afternoon via email. ls that OK?
current and savings accounts. | would like some more information on that Please do. My email is on the company website where you found our
please. telephone number. But just in case, it’s [email protected].
Then | suggest you check our website. Beste spelled b-e-s-t-e and Durand Hotels as one word.
Well | would do, but my computer was damaged in the move and I’m unable OK, got you. Thanks very much for your patience, Mr Beste.
to use it. You're welcome and apologies once again.
Well ... can you deposit £5,000? Thanks. Goodbye.
Excuse me? Goodbye.
veve
Can you deposit £5,000?
Why do you want to know that?
If you have £5,000 to deposit, you can open a VIP Account. Unit 4
Why on earth should | open a VIP account?
Well, then you don’t have to pay any fees for cashpoint withdrawals. We Warm-up
also have a special deal on savings accounts of £10,000 or more.
Page 34
Why do you want to know if|have £10,000? Are you checking up on me, eh? 5g »)
Sir, you wanted to have some information on our conditions, remember? A Well, it’s easy to see how we got that name - we look like one. We’re free-
ve Well, don’t you have anybody | can have an intelligent conversation with?
eveveve
vev standing, surrounded by a parking lot for hundreds of cars. And we've got
Somebody who can give me some expert advice? much more floor space than traditional retailers. Because we need so
OK. Would you like me to make an appointment for you with Mr Bernstein? much space, we generally locate in a suburban area. This store here is part
Who is he? of a chain. We happen to be a general merchandiser but there are retailers
He is our Customer Service manager. of this type specializing in one line, like books or toys.
OK then. | hope HE knows what he’s talking about.
Just a second then, I’ll put you through.
eveve We were established in the mid-nineteenth century and were the first
retailer to offer a wide range of products and services. After the war we
opened stores in other urban locations and just recently have opened a
Telephoning: Evaluating telephone store in a shopping mall. We pride ourselves on our quality merchandise

performance and cater to an up-market demographic.

Page 29, Exercise 1, @ Rachel Stone > Larry Beste As the term suggests, at the beginning we didn’t have a retail location. The
Conversation 3 ® Receptionist, Durand Hotels Incorporated
customer chose his merchandise from a catalogue and this was sent to
Durand Hotels Incorporated. him by post. Of course this is very convenient as many people live in rural
areas. Many retailers of this type eventually opened bricks and mortar
Hello, I’m calling from Halifax Software. | wonder if | could speak to
someone in Quality Control. stores. Needless to say, the catalogues today are also online.

Could you tell me what you’re calling about, ma’am?

Now, that’s sort of a cute way to describe it, isn’t it? Basically, it’s another
Yes, our company recently hosted a training event in one of your hotels and
there were a number of problems.
way to say “small family business”. We personally have about ten

’ll see if |can put you through to Mr Beste. He’s in charge of Customer employees but there are lots of stores like ours that are operated just by
Relations. the owner and a family member. We have a loyal clientele and are still
independent, but who knows for how long ...?
Vv Larry Beste, Customer Relations department. What can | do for you?
Hello, my name is Rachel Stone. | work at Halifax Software. We recently
held a two-day seminar at your hotel in Desert Springs. Afterwards there As you can hear we have a prime high-street location. We sell only one line
of merchandise - cosmetics. Of course | don’t own the shop. I’m the
were a number of complaints. | emailed your Customer Service department
but so far there hasn’t been a reply. franchisee, but business is good and | don’t regret investing the money in
this location.
Well, that definitely shouldn’t have happened. Could you tell me exactly
what went wrong?

145
 > Sure enough. The suppliers benefit. The consumer benefits. And the whole
Listening: The lowest prices around country benefits, because we're raising the standard of living by lowering
) Page 36, Exercise 1 ® Radio presenter costs. If you look at the figures, you can see that a family that shops at
® Michael Smith, Journalist > Brad Allan, Best Bargain Best Bargain can save as much as 25% on their grocery bills in a year. Just
think of it. That’s like eating for nothing one week a month.
® And nowit’s time for our daily business program Cash Flow.
Mr Allan, thank you very much for talking to us.
Everybody knows the retail chain Best Bargain. You may love it or hate it,
P You're very welcome.
but almost everybody shops there. And why? Because the prices seem
unbeatable, and many of us can’t understand how they can do it. Well,
Cash Flow has sent its journalist Michael Smith to the Best Bargain Listening: The lowest prices around
headquarters to talk to their vice-president Brad Allan. ® Radio presenter
) Page 36, Exercise 2
Mr Allan, your company has come a long way from a normal supermarket
Q ® Michael Smith, Journalist P Brad Allan, Best Bargain
to the big discounter it is today.
Yes, well, back in the old days, our stores used to have promotions and Part 2
sales. This was called promotional discounting and was very popular at that Mr Allan, let me ask you what the whole country is asking: how can you
time. For example, a store typically went through a pricing cycle for a keep your prices so low?
particular consumer product. Something like a 64 oz. bottle of laundry P Well, it requires enormous financial discipline. We have to keep our costs
detergent had a typical shelf price of let’s say $13.99. Then every few down - costs for warehousing, costs for logistics. We also have to keep our
weeks it would be discounted to $10.99 or $9.99. And that would last for a profit margins low, but every business student knows you make up for this
few days. Customers would rush to the store to stock up on detergent. by volume. And then you may have noticed that we can offer the same
Then the price would be increased to the old level. Now that system had a brands as our competitors but at a lower price. In fact, our prices are
lot of disadvantages for the consumer and for the retailer as well, because unbeatable. If a customer can find the same product at another retailer at
he was constantly stocking for the promotion and changing his displays. a lower price, we’ll match it or lower it.
Well, we’re happy to say we’ve done away with all of that. We have low Just think of a 12 oz. box of brand name cornflakes. In a neighborhood
prices every single day of the year. That means that the shelf price of the grocery store it sells at around $2.29 a box. House-brand cornflakes
bottle of detergent will always be maybe $10.29 - no more, no less. Let me typically cost $1.89 a box. Occasionally you can find a sale where you get
give you another example ... two boxes of cornflakes for $2.49.
Part 2 At Best Bargain a box of cornflakes is always $0.99. That’s more than
Mr Allan, let me ask you what the whole country is asking: how can you 20% cheaper than any other food retailer, even when the cornflakes are
keep your prices so low? on sale.
P Well, it requires enormous financial discipline. We have to keep our costs And how important are your suppliers in keeping your prices down?
down - costs for warehousing, costs for logistics. We also have to keep our P Suppliers are avery important factor. We have very long-term relationships
profit margins low, but every business student knows you make up for this with our suppliers, and these are also important in setting our prices. For
by volume. And then you may have noticed that we can offer the same example, you may find the same microwave here for $49.96 that you find for
brands as our competitors but at a lower price. In fact, our prices are $87.00 in a specialty store. We can sell it at such a low price because we
unbeatable. If a customer can find the same product at another retailer at purchase in huge volume from our suppliers over a period of years. They
a lower price, we’ll match it or lower it. know they can count on orders from us and so they offer us a good price.
Just think of a 12 oz. box of brand name cornflakes. In a neighborhood And with globalization they know that they are competing with suppliers all
grocery store it sells at around $2.29 a box. House-brand cornflakes over the world so they make sure that they offer us a very good price indeed.
typically cost $1.89 a box. Occasionally you can find a sale where you get Mr Allan, it has been said that your pressure on prices has put the squeeze
two boxes of corn flakes for $2.49. on many domestic manufacturers. What would your take on that be?
At Best Bargain a box of cornflakes is always $0.99. That’s more than > Well, you can say that we ‘squeeze’ or you can say that we ‘stimulate’
20% cheaper than any other food retailer, even when the cornflakes are competition.
on sale. We have talked to former suppliers who've said they’ve gone out of
And how important are your suppliers in keeping your prices down? business because they couldn’t afford the low prices you demanded.
P Suppliers are a very important factor. We have very long-term relationships P Well, |don’t have to tell you that that accusation is ridiculous. In fact, we
with our suppliers, and these are also important in setting our prices. For can guarantee orders for many small companies.
example, you may find the same microwave here for $49.96 that you find ® So it sounds as though you’re saying that the whole country is better off as
for $87.00 in a specialty store. We can sell it at such a low price because a result of Best Bargain.
we purchase in huge volume from our suppliers over a period of years. P Sure enough. The suppliers benefit. The consumer benefits. And the whole
They know they can count on orders from us and so they offer us a good country benefits, because we’re raising the standard of living by lowering
price. And with globalization they know that they are competing with costs. If you look at the figures, you can see that a family that shops at
suppliers all over the world so they make sure that they offer us a very Best Bargain can save as much as 25% on their grocery bills in a year. Just
good price indeed. think of it. That’s like eating for nothing one week a month.
Mr Allan, it has been said that your pressure on prices has put the squeeze Mr Allan, thank you very much for talking to us.
on many domestic manufacturers. What would your take on that be? ® You're very welcome.
> Well, you can say that we ‘squeeze’ or you can say that we ‘stimulate’
competition.
We have talked to former suppliers who've said they’ve gone out of
Charts: Understanding bar and pie
business because they couldn’t afford the low prices you demanded. charts
> Well, | don’t have to tell you that that accusation is ridiculous. In fact, we
"Sq ) Page 38, Exercise 2 University lecturer
can guarantee orders for many small companies.
So it sounds as though you're saying that the whole country is better off as As you can see from the pie chart the revenue of the top 100 retailers in the
a result of Best Bargain. U.S. totaled $1.74 trillion in 2007.

146
 Wal-Mart tops the list by far with $379 billion, which is well over a fourth of ’ve been here for almost 20 years now. But my father worked here back in
all revenue combined. the days before we were a container port.
Although the pie chart shows only the ten most successful retailers in the Really. So how would you say that containerization has changed transport?
U.S., one thing is rather striking: most of them belong to the mass Well, obviously, it’s increased the ease of handling. The docks used to be
merchandisers. swarming with longshoremen and about the only people you see now are
But in comparison with Wal-Mart they look relatively small: Costco’s and myself and a couple of crane and carrier operators. And of course the
Target’s revenue amounts to roughly $64 million each and Walgreen’s to about people up there in front of the computers in the control room. And so
$54 million. Supervalue, which ranks tenth, has revenue of $44 million, which freight charges have dropped dramatically.
is less than 12% of Wal-Mart’s revenue. OK. Let’s talk about the boxes over here. How long are they exactly?
Let me point out a negligible, well, for the U.S. retail market negligible, but About 40 feet.
quite an interesting competitor - and that is A/a/, the German retailer. Even Every single one of them?
though it doesn’t appear in our charts it ranks 91 on the list of the top 100. vuaveag
No, there are also 20 foot containers and those cubic ones over there are
When we look at the performance of the U.S. retailers in terms of growth 45 by 45.
the picture changes somewhat dramatically. As we can see here from the bar And what’s likely to be in them?
chart, Wa/-Mart’s growth is considerably smaller than that of its competitors Well, anything you can think of, from toys and soft goods to electronic
Costco and Walgreen, for example. What is quite remarkable is the items ... just about anything you can find in a household.
performance of Whole Foods Market, which caters to health-conscious OK. So tell me what happens exactly when an exporter sends a container
consumers. Its growth rate is more than twice that of Wa/-Mart. to the port.
Excuse me. OK, where was |? Right, let’s have a closer look at the apparel An export box is dropped off by the lorry, then picked up and delivered to
retail market. Although the economy slowed down a bit in 2007, U.S. apparel the stack area by a straddle carrier. After that it’s loaded onto the vessel by
retailers did pretty well. As you can see American Appare/ showed the fifth a crane but in a particular order we call the load sequence. That’s
highest growth rate among the 100 strongest retailers with 35.8%. In fact, the determined by our computer system. The process for discharging a vessel
apparel segment showed higher growth rates than the supermarket segment. is just the reverse.
Now, let’s have a quick look at the aggregated growth rates of the 40 best And where is this particular vessel heading for?
retail performers from 2004 to 2007. None of the supermarkets are in the top This is a Greek ship bound for Hong Kong.
quartile. Only the whole food seller Whole Foods Market outperforms them - And what’s in these particular containers?
with 70.6%. Well, I’m afraid | can’t tell you because frankly | don’t know. Generally even
vavag
And although Wa/-Mart remains the No.1 retailer by revenue, its growth the crew of the ship don’t know.
rates over the last five years amounted to 32.8%, which puts the company in And when the container reaches its destination?
next to last place in the ranking of the top 40 retailers with the largest growth Then it’s loaded onto a truck and taken to what we call bonded storage. It
rate. But if you consider that the food market is almost saturated - and stays there for two weeks until it goes through customs inspection and
Wal-Mart is also a food retailer - a growth rate of 32% is fairly remarkable. OK, then duty will be paid on it.
let’s have a look at the next chart ... | see. So can you tell me approximately what it would cost to ship goods to
Hong Kong in one of these 40 foot boxes?
Well, the basic rate at the moment is about $1,500 - that’s about £1,000,
Unit 5 but that can rise and fall sharply according to supply and demand. And
then there are additional fees for handling and documentation.
Listening: The container revolution And so, if I’m a box, how long is it going to take me to get to Hong Kong?
We call that the route time. You’re going to be on the boat for about five
"oD. Page 47,
Exercises 2 and 3
® Anchor @ Roger Gibson, Correspondent
» Michael Brown
weeks.
| see. Michael we’re out of time so thanks very much for talking to us.
@ Today on Business World, we’re going to talk about a phenomenon which Don’t mention it.
has truly changed the world. Probably nothing has contributed more to
globalization than the revolution in transport which occurred only about
Telephoning: Business to business
fifty years ago. Before 1960 most goods were transported in wooden
crates of various sizes and shapes or on pallets. Loading and unloading (B2B)
these at ports was a time-consuming process and required huge amounts > Customer Service agent, Thetis Shipping
Page 48, Exercise 1
of manpower. Ports also required warehouses for the storage of the goods. ®™ Adam Grimm, Mapet Engineering
As you can imagine, the danger of damage and pilferage was high. Then in
the late 1950s an American entrepreneur named Malcom McLean came Vv Good morning. Thetis Shipping. How can | help you?
along. He had begun as a truck driver, started his own haulage company Good morning. It’s Mapet Engineering. | have a consignment of sensitive
and then had the idea of creating standardized boxes which could be engineering equipment that has to be sent to Houston by the fastest route.
heaved by crane onto a ship. Containerization was born. It’s supposed to be in the States by the sixteenth of March at the latest.
Today about 90% of all goods transported in the world reach their Where are you shipping from, sir?
destination in containers. There are important container ports all over the Our company is in Braintree.
world, including one in our own backyard. Our correspondent Roger Gibson OK. Then your port of origin would be Felixstowe. You say your destination

has been at Westgate talking to a terminal manager. Let’s hear what he has is Houston. Is that Houston, Texas in the U.S.?
to say. That’s right.
Here | am at Westgate. Well, this terminal is amazing - it’s the size of Well, the time of transit from Felixstowe to Houston is 18 days. The Victory is
several football stadiums. Everywhere there are huge cranes and I’m leaving Felixstowe on March 3". That should reach Houston on March 21°.
surrounded by thousands of brightly painted containers. Lots of them are Ah, I’m afraid that’s too late.
stacked on top of each other a bit like a child’s building blocks. I’m just Well we have another vessel - let’s see, that’s the Endeavor - leaving a
standing here talking to Michael Brown, who is in charge of the terminal. week today, on February 21°. If your consignment is on that ship, it’ll reach
Michael, how long have you been working here? Houston on March 9".

147
 ™® That would work. Oh, we’ve never sent sensitive equipment before. It will Well, |was thinking | might try a dosa.
require special handling. Could you give us some recommendations as to They’re very good here, but | have to warn you - the sambhar is very hot.
how it should be packed? The sambhar?
P Well, generally we recommend padding materials like polystyrene, That’s the sauce. Tell me, Mr Finn, are you interested in temples at all?
polyurethane foam or silicone. Well, actually, I’m not really into history. | did want to do some shopping
vaevaev
™ OK. Could you quote me a rate please? while I’m here. My wife wants me to bring back some silk.
P That’s $540 for a 20 foot standard container and $880 for a 40 foot all- zg I'll have Mr Ghosh show you around some good shops. He could take you
purpose container. to the market tomorrow after our meeting. Would you like that?
® Fine. Oh, yes, and one last question. What kind of documentation am | » Yes, |’d love to.
going to need? as Ah ... here comes our food.
P You'll require a Bill of Lading, Certificate of Origin, a packing list, the > Mmm ... this is very tasty.
commercial invoice, and your insurance policy. You can find detailed
information about all of these on our website www. thetis-shipping.com
Small talk: Saying the right thing
®™ Great. And how do | book?
P You do that on our website too ... Once you’ve created an account, you'll Page 49, Exercise 5 ® Sunil Kumarswami, /nfosystems P Colin Finn
oD
also be able to track your shipment.
Mr Finn, it’s been a pleasure having you at /nfosystems. | do hope we’ve
® Fantastic. Thanks very much for the information. I'll have a look at your
been able to provide you with all the information you need.
website and get back to you.
> Yes, you certainly have, Mr Kumarswani. It’s been a very fruitful visit. And
P Happy to be of help.
thank you so much for your hospitality.
© Goodbye.
It was our pleasure. Give my best regards to your wife. And if you have any
more questions ...
Small talk: Saying the right thing
x ») Page 49, Exercise 3 @ Ashok Ghosh, /nfosystems P Colin Finn
Unit 6
P Hello, my name is Colin Finn. | have an appointment with Mr Kumarswami
at 11 o'clock. Listening: Production and its
@ Anyes, Mr Finn. I’m Ashok Ghosh, Assistant Manager of the BPO unit.
management
Very pleased to meet you. Mr Kumarswami is detained at the moment and
has asked me to show you around while you’re waiting. Page 55, Exercises 2 and 3 ® Radio presenter
P Oh, that’s fine. Nice to meet you. > Prof Martin Schmidt
@ Did you have a good flight, Mr Finn?
Hello and welcome to the program. With me in the studio tonight is
D> Well, the service was very good, but | must say, there seems to be less and
Professor Martin Schmidt, visiting professor from Germany, who is
less legroom in economy class these days.
currently teaching at the University of Cape Town. He is going to talk to us
| see. And are you satisfied with the hotel?
about recent developments in production systems.
Oh, it’s fantastic. Quite luxurious.
Professor Schmidt, you are from a country which the world admires for
Great. So please come this way.
its work ethic and its state-of-the-art technology. Products Made in
This is quite a place you have here.
Germany are highly valued and your country is a world export champion.
Yes, we’re very proud of our campus. As you can see, there are lots of
So we are really glad that you could be with us tonight.
amenities for the employees - restaurants, a health club and - as you see
Thank you.
over there - even a golf course. Is this your first visit to India?
Now, as a regular newspaper reader, | have found that the issue of
> Well, actually, | backpacked through India 25 years ago, when | was a
production hardly comes up in the press. Is this because South Africa is so
student. But everything has changed so much since then that | feel I’m in a
far away from the world’s business centers or has the topic simply gone
different country. It is my first trip to Bangalore.
out of fashion?
®@ Yes, Bangalore is really booming at the moment. May | ask where you’re
Definitely not. Production means creating value, adding value to material,
from in Britain, Mr Finn?
which is the source of an individual’s and society’s prosperity. In fact, the
P Actually, I’m originally from Ireland but I’ve been in London for the last few
number of finished products has never before been higher. Maybe
years. And yourself? Are you from Bangalore?
production has moved a bit out of the limelight because of recent exciting
@® Oh, no, not by a long shot. I’m Punjabi, actually, from Bongay.
innovations such as the internet, but we shouldn’t forget that IT, financing,
P Oh, that’s very interesting. And how long have you been at Infosystems?
logistics, marketing and so on only support the act of creating value, which
@ |’ve been here for about five years now - since | did my MBA.
is production.
> Whew... it certainly is warmer than | expected ...
| see. | studied management in the 1980s, when automation was the buzz
@ Let’s step into the cafeteria and have something to drink.
word. What has changed since then?
P That’s a brilliant idea!
Well, for years we believed that machines, robots and information technology
@ | don’t think Mr Kumarswami will be long now. Let me give him a quick ring
would make a factory run on its own. We talked about concepts like
on his cell phone.
computer-integrated manufacturing and the so-called workerless factory. But
these technical systems are very complicated and hard to manage because
Small talk: Saying the right thing they are prone to breakdowns, which cost a lot and reduce productivity.
So, about 15 to 20 years ago we heard about a new idea called /ean
x ») Page 49, Exercise 4 ® Sunil Kumarswami, /nfosystems
manufacturing, which is based on the Toyota Production System. We learnt
P Colin Finn
that it is indeed possible to produce products in a very efficient way, with
> Well, Mr Kumarswami, this is certainly a fantastic restaurant. excellent quality and very short lead times. This is achieved, for example,
© imagine you're familiar with Indian food, Mr Finn, but please do ask if you by avoiding what Joyota calls waste - or muda in Japanese, which means
need help with the menu. getting rid of activities which don’t add value to the product.
Right. Could you explain this in a little more detail? ® That's terrific. Thank you very much, Professor Schmidt. It was a pleasure
Certainly. We distinguish between seven categories of waste: to have you. Goodbye.
overproduction waste, waiting waste, transportation waste, processing > Well, thank you for having me here.
waste, waste of motion, inventory waste and waste from product defects. |
would say avoiding product defects is of the utmost importance, because
deficient product quality endangers the survival of the entire company.
Presentations: Presenting a product
But improving product quality requires improvements in the Page 58, Exercise 2and3 Marc Lyons, Sales representative for LO laptops
9 )
performance of the workforce, of the machinery, of the methods, of
Ladies and gentlemen, here it is, the brand-new edition of the LO laptop.
information and so on. In fact, lean production is a new approach to
Again experts from both academia and industry have done their very best
management, a change in behavior rather than in technology.
to create a state-of-the-art learning tool - a laptop for children in developing
Have there been any difficulties in the implementation of lean production in
countries living in the most remote and deprived environments. Let me start by
Western companies?
outlining its main features.
Sure. At the beginning most of us took the term literally, because /ean
It comes with a liquid-crystal display screen of 7.5 inches and a resolution
means fit and healthy, without excessive fat. So companies got rid of levels
of 1,200 by 900 pixels.
of hierarchy, employing as few people as possible in order to improve
The really clever features are the two display modes. You can switch from a
profits.
normal full-color mode to a high-resolution black and white mode, which is
We didn’t see that lean manufacturing is a different way of thinking.
ideal for reading in bright sunlight.
You see, in the West we are primarily result-driven; so what is important is
As we all know, power is an issue in developing areas, so the LO is
the end result. In Japan, the focus is on the process. They believe if you
equipped with a rechargeable battery. If there is no electricity available, the LO
improve the work processes, improve the machines and the workers, this
can be solar or foot powered. At the same time the laptop’s power
will automatically lead to better results.
consumption is extremely low. For example, its battery will last up to 24 hours
What do you mean by improving the workers?
if the laptop is only used for reading.
Many types of waste cannot be identified by using conventional practices,
So what about its functionalities?
but waste must be identified because it is a source of losses ... it drives up
Of course the computer connects easily to the internet via WiFi but if there
manufacturing costs. You see, a reduction in manufacturing costs of 10%
is no internet available, it is possible to communicate wirelessly in the
means a doubling of the profit margin. And who knows best where the
classroom due to a mesh network, which is an instant, self-configurating
processes can be improved? It’s the worker. He knows this far better than
network. So pupils can communicate in class by doing collaborative games,
any line manager or engineer. Therefore you need to involve the workers,
using drawing programs or word processing. t also contains stereo speakers,
but this requires intensive training so that they can acquire special skills,
an internal microphone and an integrated video camera.
such as problem identification and problem solving, communicating
Additionally, as I’m demonstrating here, the laptop has flexible hinges so it
effectively and working in a team. Also they need to be able to operate
can provide three functions: standard laptop use, e-book reading and gaming.
different machines so that they can be used more flexibly.
Let me now focus on the most crucial point, and that is the laptop’s physical
In general, one can say that factory workers take on much more
specifications, because after all it was designed for children. So it ought not to
responsibility in their jobs than they used to. So, a factory worker of today
be big, heavy, fragile, ugly, dangerous or dull. In other words: appearance and
is a completely different person compared to his or her colleague from the
durability are very important.
1970s. | would say that we are witnessing a revolution taking place on the
As you can see its design is perfect for kids. It is about the size of a
shop floor.
textbook. It weighs just over a kilo, so it’s lighter than a lunchbox. Its colors
How interesting! A final question: training workers means a huge
are so bright that kids will love it, just as they loved its predecessor. The
investment on the part of the company. Doesn't this conflict with the “hire
keyboard is sealed with a rubber-membrane and the touchpad is extra wide to
and fire” approach which is normally taken by American companies in
make drawing and writing possible.
times of a volatile economy?
As usual, robustness is of the highest priority so the LO is dust-proof,
Lean companies like Joyota would not even understand this question.
completely sealed and drop-proof.
Oh!
To put it in a nutshell: it’s a truly unique laptop. It’s cheap, it’s flexible, it’s
In the West the idea is NOT to invest in people so that it is easier to make
power-efficient and durable. In other words: its specifications serve all the
them redundant. A Japanese company would never be able to understand
requirements for the educational purposes of emerging nations.
this way of thinking, because if | invest in people, | have a successful
Thank you very much for listening today.
system which helps me to perform better in the market. Of course, there is
no guarantee that lean companies will not face any problems but they are
more robust when changes in the economy occur. Let’s take the three
Unit 7
biggest American automotive companies - we don’t even know if they'll
still exist in the near future. Take Joyota on the other hand - they have
Listening: Passing the buck
become the world’s largest car manufacturer and | would argue that this
has been achieved through lean thinking. . Page 65, Exercise 1 and 2 ®@ Christine P Richard ™ Steve
... although the U.S. car industry has worked quite hard to adopt the
P OK guys - just look at these sales figures. Can anybody explain what’s
approach of lean manufacturing?
going on here?
Sure, they know what to do. As | told my students this morning, the
® | don’t understand it. We know we got the product right. Coo/Fit is the first
American car manufacturers know exactly what to do, but they haven't
brand of jeans to use mass customization. Fat, thin, big bottom, small
changed because they are not able to change. In today’s world, companies
bottom, no bottom, - you name it - anybody looks great in them. We use
are forced to adapt constantly, because production cycles are becoming
state-of-the art technology and they’re still affordable.
shorter and shorter. Machines and machinery are in a constant state of
Vv And yet they’re a flop. Somebody hasn’t been doing their homework.
development; information flows are increasing, so management is
@ Wait a minute, we got the target group, right didn’t we? We did our market
becoming more complicated. That’s why you need to start thinking
research. We used surveys and focus groups until we were sure we had an
differently, acting differently, improving processes, involving people.
unbeatable feature - guaranteed fit. We had a look at every possible

149
 demographic group and their wants and needs. So we identified teens and fictional characters and that they were developed as part of an online
twentysomethings. And here we are. So maybe the message just wasn’t computer game, and b) announcing that the game can only be played if the
reaching the consumers. participants get the product identification number from a pair of CoolFit jeans,
Vv Right, you’ve just passed the buck. which means that they have to visit a shop. We’ll run the TV commercial and
™ What do you mean, the message wasn’t reaching the consumers? We ran a the radio spot only for about five days because the rest is done by the
fantastic advertising campaign on prime-time television coast to coast. The consumers through communication in the net, but to speed the process up a
commercials cost us an arm and a leg. We backed this up with billboards little, we’re thinking of employing so-called buzz agents as well.
and celebrity endorsements. What more could we have done? So the idea is that at the end of this campaign everybody in our target
> Spare me the details. You’re paid to know that this age group doesn’t group will be talking about the clever advertising and consequently about
watch commercials anymore. In fact, they reject advertising hype. CoolFit jeans. Thank you.
© Of course we know this but all the alternative methods are very risky,
which means there’s no guarantee of success. So if you want 100% reliable
Presentations: Reaching your audience
statistics, forget it. It’s just unrealistic.
> | want results. And no risks. We invested a fortune in developing this _ Page 69, Exercise 4 Bob Spencer, Buzz World
product and putting it on the market. And the competition is cut-throat.
Let me now highlight the selling points of this concept. In other words, why are
© Well, you can’t have your cake and eat it too. | heard about this guy who
we so sure that a campaign using viral marketing will work this time?
organizes ad campaigns by word-of-mouth. He’s one of the biggest players
Well, first of all, we’ll be able to target about 90% of the trendsetters in the
in the promotion business. He could give us a few ideas about alternative
jeans segment.
marketing methods and talk to us about their effectiveness and risks.
Of course you'll be anxious to know what the risks are. Let me assure you
@ |t wouldn’t hurt if someone puts us in the picture.
there are hardly any risks involved because the costs will be very low. And
> Yeah alright. Get him over here ASAP.
most important: if it turns out that the campaign isn’t as successful as
expected, we can call it off and nobody will have ever noticed that it was us
Presentations: Reaching your audience who produced those videos in the first place. And, finally, costs will be
absolutely minimal.
, Page 68, Exercise 2 Bob Spencer, Buzz World
So, to put it in a nutshell: we are expecting a huge response to this
Hi, everybody. campaign, with the result that your jeans will live up to their name.
For those who don’t know me: my name is Bob Spencer and |’m the Thanks for your time. Now then, fire away with any questions you may have.
creative director of Buzz World. Buzz World is one of the smaller promotion
agencies but we have become very successful in the area of unconventional
Presentations: Preparing slides
marketing support.
I’m very happy to be here with you to present our proposal for a new 0 . Page 69, Exercise 2 Professor Ainsley Barnes
Coo/Fit advertising campaign because | think you have developed a superb
I’m now going to turn to TV advertising. Television is a medium that we’ve all
product. In fact, the whole agency is really enthusiastic about the prospect of
grown up with, and we’ve all been exposed to - believe it or not - millions of
working on this campaign.
commercials during our lives. We can all see the advantages of this medium.
OK. Let me give you an idea of what I’m going to talk about.
Even with the advent of the internet, it is still the dominant medium in most
First |’ll sum up what has been done so far at your end and the results. I'll
households and provides good mass-marketing coverage.
also outline the reasons | believe why your advertising campaign may not have
However, television has some evident drawbacks, and that’s what |’d like to
been so successful.
focus on here. We all know that a television commercial can be enormously
Then I’ll come to the main point of this presentation, which is our
time-consuming and expensive to make. Producing a good TV ad requires
advertising concept.
script writers, actors and film editors and is often organized by an advertising
And finally ’ll point out the advantages of our concept.
agency. A 30-second commercial costs an average of $333,000 on prime-time
This will take about ten minutes. Then there’ll be time for questions. And
TV, and then you have to pay for each 30-seconds of advertising time. That
afterwards I'll explain the concept in detail, which, as you can imagine, may
can easily amount to $300,000 or even more, depending upon the popularity
take a little longer. Right. Let’s start. Your jeans are state-of-the-art ...
of the program. Slots in Desperate Housewives, for example, cost as much as
560,000; a 30-second slot on the Super Bowl can cost up to 2.5 million.
Presentations: Reaching your audience And of course even an expensive spot becomes dated sooner or later, and
then it has to be updated, with all the resulting production costs.
», Page 68, Exercise 3 Bob Spencer, Buzz World
And so, even if you find talented ad makers and invest this money, you may
So, here we are - what can Buzz World offer you? discover that your ad is sandwiched in with a clutter of other commercials,
We’d suggest a mixture of viral marketing measures with a little dose of announcements and promotions. All of this advertising is very annoying to
conventional advertising. viewers because it interrupts the programs they want to see and in the long
We’ve opted for a four-step campaign: term it can even create a lot of hostility. In the end, your target group may even
First step, we'll produce a trio of ultra low-budget video clips. Now, these reject the message you were trying to put across.
films won’t show your product and won’t indicate that this is advertising. The You may have invested large sums in order to reach your TV audience, but
videos will show three different young men and women who are enjoying how can you be sure that you have really ‘reached’ all those people? That’s a
themselves. The key is that the videos will look very amateurish. purely theoretical audience. They may be dozing in front of the TV set. They
Second, we'll zap these videos to about 200,000 influential young adults may have left the room to go to the bathroom. They may take advantage of the
from a list of web surfers which we’ll provide. commercial to zip around the channels to find out what else is on. Or they
Third, we'll wait roughly one month for the build-up of the buzz. How is this have recorded the program on a TiVo-style DVR and simply skip the
done? Very simple: the recipients of the video clips will send them to their commercials. That means that you cannot select the consumers you wish to
friends and they will send them to their friends, etc. So they get the ball rolling. communicate with and that of the millions you have invested, a lot of the
Then - and this is the exciting step - after a month or so we’ll do a TV and money may simply be wasted.
radio advertising blitz, a) revealing that the three video characters were
 What’s the answer? Today we need a new approach to television to find one close to campus. And because | don’t have a car and public
advertising. Just bombarding the viewers is no longer enough. We now have to transport was rather limited, | wasn’t able to find a job.
engage their attention and provide content that is interesting, useful and So what did you do?
entertaining. Everybody has heard of Madison Avenue. That’s where the | cut down on my expenses. It wasn’t easy, but | got it all worked out in the
headquarters of all the big ad agencies used to be located. There is another end.
less well-known street, in Hollywood, California, which of course is the capital That’s good. Malcolm, at the student union do you find a lot of students in
of the entertainment industry, called Vine. The new advertising approach is similar situations to Ken?
what marketers call ‘Madison and Vine’, which means that advertising and Yes. Quite a lot of students turn to us when they find that they can’t handle
entertainment are being merged to break through the clutter and reach the their finances.
consumer with new, engaging messages. So what do you recommend them to do in order to get control over their
spending again?
We ask them to draw up a budget plan.
Unit 8 Vv How should you go about that?
You make a list of all your sources of income and set this against a list of
Listening: The debt trap all items that you need to get through a typical week. On the one hand, this
gives you an idea of how much money is available for you to spend; on the
, Page 75, Exercise 4 » Barbara, Radio presenter
other hand you can see exactly which items you could cut down on. It’s
@ Malcom Davies, Student Union
quite a simple concept, but potentially very effective.
B® Ken Neat, Student at Middlesborough University
Yes, this budgeting method helped me a lot to keep a tight control on my
> Welcome to our evening programme Money and more on CH1, your local finances. By the way, you can find examples of a budget plan on the internet.
radio station. Good advice. Unfortunately we’re out of time so we'll have to finish here.
So, there are only a couple of weeks ahead before the new university So Malcolm and Ken, thank you very much for coming in today and giving
year starts. As we all know, tuition fees in the U.K. are on the rise and us your thoughts ...
currently stand at around £3,000 a year, making it very expensive to go to e+ Thanks a lot.
university. And thanks to the credit crunch, student life is getting even > For more on today’s topic, visit our website at www.ch 1.uk/moneyandmore
tougher. and that’s all one word. There you'll find a budget planner to help you save
With me in the studio tonight is Malcolm Davies, head of social policy all those precious pennies! Next on CH1, my colleague Mara ...
at the National Students’ Union and Ken Neat, second year student at
Middlesborough University. Hi guys, great to have both of you here.
Negotiating: Achieving a good deal
@-+n Hello, Barbara.
» Ken, you were just telling me before we went on air that you can vividly |. Page 78, Exercises 2 and 3 P Deborah Besser
remember your first year at uni, when you were trying to get to grips with ® Marlon Wright, Bank advisor
your finances, isn’t that right?
Hello Miss Besser. Marlon Wright. Nice to meet you.
Yeah, the first year was really tough, | must say.
Nice to meet you, Mr Wright.
b Tell us a little bit about it.
Come this way. Please have a seat.
Well, first everything seemed so easy. My parents had arranged a loan with
Thank you.
our bank, which should have covered all my living expenses. | was even
Now, you told me on the phone that you’re planning to invest a sum of
entitled to a government-backed grant to cover the tuition fees. But then,
around £200,000 - is that right?
as | was several hundreds of miles away from my parents’ protection, the
Yes, it is.
@veve
v
banks took me for a ride.
So what are your investment objectives? | mean, what do you want to
What do you mean? What happened?
invest for?
You see, you need to open a current account as a student and that’s when
Vv Well, I'd like to start making provisions for retirement.
the banks get you. Apart from offering you all kinds of free gifts like web
Right. As your business is fairly new, | gather, a more cautious approach to
cams or a student railcard, they also grant you an interest-free overdraft
investment might be best. What do you think?
facility of up to £3,000.
v That sounds good to me.
But read the small print! Because if you exceed your overdraft limit,
What | would recommend is investing in a unit trust, for example in the
they charge you interest at over 28% and penalty fees of up to £25 every
balanced fund Confident Growth. As you can see here, up to 25% are share
time you exceed it.
funds, investing in U.K. companies; up to 25% are international funds,
Gosh that’s quite frightening, isn’t it? | hope that doesn’t happen to too
investing in companies in the U.S., Japan and the emerging markets; and up
many people ... Malcolm, you look like you have a point to make.
to 30% are U.K. government bonds and the rest are money market funds.
Yes, let me add something here. There is actually a real danger that you will
Hm, interesting. What are the conditions?
exceed your overdraft because most of these accounts offer a free credit
Well, there’s an initial charge of 1.5% and a yearly management fee of
card. It is very convenient to use a credit card, so before you realize it you
1.25% on the invested amount. And you need a safe custody account
are in\the red. You have to be very careful.
where your funds, securities, etc. can be held.
Yeah, that happened to me. Within three months | had exceeded my
Do | have to pay for that as well?
overdraft facility. | turned to my parents for help, but they weren't willing to
Erm ... yes, the safe custody charges are £12.95 annually.
help out and just said that | had to look after myself from now on.
These funds incur quite a lot of costs, don’t you think? In the end I'll end up
So | handed my credit card back to the bank in order to stop being
with no return.
tempted. And then | tried to find a job.
Oh, no, | assure you this won’t happen. Our fund managers will make sure
That sounds like a sensible decision, Ken. Did you manage to get a job
of it. Let me show you how the fund has performed. Despite the recent
quickly?
financial crisis this fund shows an average annual growth of 7.48% over the
No, it proved really difficult! Most jobs on campus go to students who are last five years. And compared to other products, this is a quite remarkable
in their second or third year, so as a fresher | had to look elsewhere. But
performance.
because all the job vacancies at uni were taken up so quickly, | wasn’t able
 VA Yes, | can see that but | wouldn’t want to invest more than £150,000 in to lead by example. Nevins calls this an open system, because everyone is
such a fund. entitled to make his or her own decisions. This doesn’t mean that a
That’s reasonable. decentralized system is the same as anarchy. There are rules and norms, but
Well ... so ... what can you offer me for the remaining £50,000? these aren’t enforced by any one person. Rather, the power is distributed
Let me suggest a fixed deposit account. It’s very easy to manage. among all the people and across geographic regions. Basically, there’s no
The interest rates are currently around 3% - too low for my taste, I’d say. Tenochtitlan, and no Montezuma.
No, | agree, but if you want higher returns, you'll have a higher risk and less
eveve But without a Montezuma, how do you lead? Instead of a chief, the
liquidity. Apaches had a Nant’an - a spiritual and cultural leader. The Nant’an led by
> | know, but I’m not interested in commodities or currency futures. example and held no coercive power. Tribe members followed the Nant’ans
© OK, what about commercial paper then? | could offer you Microsoft and because they wanted to, not because they had to. One of the most famous
Unilever for example. They’re low-risk, liquid and offer a high yield. The Nant’ans in history was Geronimo, who defended his people against the
average yield at the moment is 4.2% for a life span of three months. American forces for decades. Geronimo never commanded an army. Rather,
> And are there no hidden fees? he himself started fighting, and everyone around him joined in. The idea was,
© Well, I’m sorry to say that you will have to pay a commission of 0.2% on the “lf Geronimo is taking arms, maybe it’s a good idea. Geronimo’s been right in
face value because we buy the paper from a broker who charges us, too. the past, so it makes sense to fight alongside him.” You wanted to follow
P Look, your bank has been my principal bank since the beginning and so far Geronimo? You followed Geronimo. You didn’t want to follow him? Then you
this arrangement has suited both of us well, so | think you should be didn’t. The power lay with each individual - you were free to do what you
offering me better conditions. wanted. The phrase “you should” doesn’t even exist in the Apache language.
® OK, | see your point. | could reduce the commission for commercial paper Coercion is a foreign concept.
to 0.15%. The Nant’ans were crucial to the well-being of this open system, but
> Alright, but only under the condition that | get the safe custody account for decentralization affects more than just leadership. Because there was no
free and that the fee for managing the unit trust is reduced, too. capital and no central command post, the Apache decisions were made all
® Hom, .... Well... OK ... | think | could make an exception and waive the over the place. A raid on a Spanish settlement, for example, could be
trading account charges. But as far as the management fee is concerned | conceived in one place, organized in another, and carried out in yet another.
can’t go below 1.25%, I’m afraid, because this charge is already You never knew where the Apaches would be coming from. In one sense, there
discounted. was no place where important decisions were made, and in another sense,
I’m sorry but that’s not good enough. decisions were made by everybody everywhere.
Alright ... What do you have in mind, then? On first impression, it may sound like the Apaches were loosey-goosey and
1%? disorganized. In reality, however, they were an advanced and sophisticated
OK - 1.1%, but | can only guarantee you this for three years. society - it’s just that a decentralized organization is a completely different
That’s fine. So | think we have a deal. creature. Nevins explained that the traits of a decentralized society - flexibility,
Yes, it looks like it. OK, let me summarize what we’ve agreed upon ...
vev
eve shared power, ambiguity - made the Apaches immune to attacks that would
have destroyed a centralized society.

Unit 9
Meetings: Acting as the chair
Listening: Spider and starfish , Page 90, Exercise 3 Margaret Perry, CEO Sandham & Perry

organizations Good morning, everybody. Can we get started? It’s nice to see you all here. |

5 » Page 85, Exercise 2

Excerpt from the book The Starfish and the Spider: the Unstoppable
know that you’ve travelled long distances to take part in this meeting and |
hope that your jet lag isn’t too severe. I’ve asked you to come to our
headquarters to discuss our restructuring plans instead of using our usual
Power of Leaderless Organizations teleconferencing procedure because, given the importance of the issue,
Let’s take a quick look at two opposite systems. Centralized and person-to-person interaction is vital. |’m afraid | have to apologize for Anita
decentralized. A centralized organization is easy to understand. Think of any Gupta. Her plane was delayed in Mumbai due to the monsoon, but she should
major company or governmental agency. You have a clear leader who’s in be arriving later today.
charge and there’s a specific place where decisions are made (the boardroom, As you can see, my personal assistant Susan Quest will be taking the
the corporate headquarters, city hall.) Nevins calls this organizational type minutes. | think we can expect this first session to take until lunch at 1 p.m.
coercive because the leaders call the shots: when a CEO fires you, you’re out. We'll be breaking for coffee around 11 o’clock.
When Cortés ordered his army to march, they marched. The Spanish, Aztecs OK. | think you're all familiar with the agenda, as Susan sent it out several
and Incas were all centralized or coercive. Although it sounds like something days ago.
out of a Russian gulag, a coercive system is not necessarily bad. Whether Unfortunately, we'll have to skip the first item, as Steven Alden is ill. We'll
you’re a Spanish general, an Aztec leader or a CEO of a Fortune 500 company, start with a brief report from each of the regional vice-presidents. Yee Fang,
you use command-and-control to keep order in your organization, to make it you have the biggest market over there in China. Could we give you the floor
efficient and to function from day to day. Rules need to be set and enforced, or sal
the system collapses. For instance, when you get on an airplane, you had
better hope it’s a coercive system. You certainly don’t want Johnson from seat
29) to decide that right about now is a good time to land. No, Johnson needs
Meetings: Acting as the chair
to sit quietly and enjoy the movie while the captain - and only the captain - Page 90, Exercise 4 ® Margaret Perry P Clyde Ellis
has the authority to make decisions to ensure that the plane flies properly. P Jorg Kramer @ Fernando Gonzalez
Decentralized systems, on the other hand, are a little trickier to ®@ Igor Smirnov @ Yee Fang
understand. In a decentralized organization, there’s no clear leader, no
® And now I'd like to come to the central item on the agenda. This is our plan
hierarchy and no headquarters. If and when a leader does emerge, that person
for global restructuring.
has little power over others. The best that person can do to influence people is
 Sorry, could | have your attention please? There will be plenty of time stock prices, and that pressure was passed down to accountants and to
for your questions and comments later. As you know, since 1985 we’ve auditors. For a while after Enron, the profession lost the credibility that it
been operating using our regional structure. Each one of you vice- once had.
presidents has been in charge of his or her own division and reporting @ So in what ways can accountants “cook the books”?
directly to me. However, in recent years developments in new markets have @ Well, there are numerous opportunities for fraud. Accountants can record
led us to believe that this design is simply not flexible enough for today’s sales income for products and services that have not been sold, record
dynamic business environment. For that reason the board has decided to expenses that have not been incurred, record gains that will probably not
implement a radical new design to improve the speed of operations. We be realized and - as in the case of Enron - not record losses. They can
now want to introduce GBUs - that is to say, general business units - also fail to record negative matters that should be disclosed or make
which means we will be organizing our product supply by product category misleading disclosures.
rather than by geography. If you look at the handout, you can see that in @ And what was it about Enron that so shocked the public about the
the new structure there are seven new ... accounting profession?
® Please, I’m sorry, but | don’t see any necessity for the restructuring ... & Well, according to public expectations, auditors are supposed to be
P gor, please let Margaret finish ... working in the public interest as the watchdogs that uncover fraud and in
@ |’m with Igor. | don’t see the point in a new organization either. The present fact they’re legally liable for fraud if negligence can be proven. And so you
structure has been working perfectly well. had this venerable old accounting firm, Arthur Andersen, one of the
> No, you’re wrong about that. Some divisions are well run and others are not. so-called big five, which seemed to have missed glaring irregularities in
@ Are you implying that some of us are not doing our job? Enron’s books. Worse yet, there seemed to be a clear conflict of interest,
@ | realize this is a delicate question, Margaret, but | don’t quite see where as Andersen was also serving as a consultant to Enron. The most shocking
we're going to be coming in with the new structure. thing was that when it became clear that the SEC was initiating an
® Could | suggest that we wait until Anita arrives to discuss this? It’s such an investigation against Enron, Andersen employees in offices across the
important issue that it shouldn’t be dealt with without her. country were kept busy night and day shredding over a ton of Enron files.
@ Alright, could | have your attention please? | know all of you have a valuable @ Goodness! The big five accounting firms had always resisted efforts to
contribution to make. Let’s take it by turns. Yee Fang, | believe you had a reform the profession. But after the scandal it became impossible to deny
question ... and after that we'll hear from Igor ... that the profession was in need of regulation. What’s happened since then?
@ First of all, there was the Sarbanes-Oxley Act, which was signed into law in
2002. SOX , as it was called, makes a company’s CEO and CFO personally
Meetings: Acting as the chair
responsible for the accuracy of the financial statements. It also set up a
) Page 90, Exercise 5 Margaret Perry, CEO Sandham & Perry new regulatory board, the PCAOB, with broad powers over CPA firms that
audit public businesses. And this board put an end to the dual role that a
Well, | think we’ve covered quite a lot of territory for today. To recap briefly ...
lot of CPA firms used to have, serving as both consultants and auditors.
we've had a look at the new organizational design and | think we’ve all agreed
@ Can you explain what was wrong with that?
that the new structure will provide us with much more flexibility - and
B Well, it’s pretty hard for an auditor to behave independently and criticize
hopefully, higher profits. We’ve also talked about your new roles, and | think
the company’s accounting methods if at the same time it depends on the
that all of you are satisfied that there will be an important one for each of you
company as a client for its non-auditing services.
in the structure.
@ So what has changed for accountants?
As to the next meeting, | think we should see each other again around the
@ For one thing, the SOX regulations have driven up demand for CPAs, and
middle of next year to discuss the progress we’re making. Susan will be in
their salaries, at least in the U.S., as there’s more work to be done, but
touch with you on that. Well, it’s been a long day, but | think we’ve
that’s resulted in a real burden for smaller public companies. They have to
accomplished a lot. |’d like to close the official part of our meeting. | know
spend lots of money to comply with the reporting standards.
you’re all tired, but we’ve booked a table at a fantastic fish restaurant and I’m
@ |see. Can we say, all in all, that accounting has become cleaner since Enron?
looking forward to having dinner with you.
@ Well, the new regulations do force companies to be more careful about
It’s five now. |’ve ordered a limousine to pick you up at your hotel at seven.
their books, and the conviction and imprisonment of executives like Skilling
And so, see you this evening!
and Fastow tend to discourage managers from pushing things too far. But
these things run in cycles and there will always be personalities who will
see just how far they can go.
Unit 10 @ Dr Purcell, we’ll have to leave it there. Thank you very much for your time ...
@ Thank you.
Listening: The world after Enron
., Page 97, Exercises 1 and 2 » Michael Berner, Radio presenter
} Talking about balance sheets: Using the
@ Greg Walker, Correspondent
@ Janet Purcell, National Academy for Accountancy right terms
® Good morning. This is Michael Berner for The Lowdown. Everybody Page 98, Exercise 2 ® Vijay Sengupta > Jim Turner
remembers the collapse of Enron, especially since it was followed by other
© So, Jim, we’re going to have a look at the company’s most recent balance
equally unbelievable business scandals. But how exactly has it changed the
sheet, as that’s a snapshot of a company’s finances and the best way to
accounting profession? Our correspondent Greg Walker talked to Janet
judge a company’s financial health.
Purcell, head of the National Academy for Accountancy and professor of
P ell, can you try to explain it in simple terms? I’m not very clued in to
accounting at Wilmette University.
all these financial matters.
@ Dr Purcell, tell us what the fallout from the Enron scandal has been. ®@ Oh, it’s a no-brainer. On the one hand, we've got the assets - what the
B® Enron obviously threw the whole accounting profession into a crisis. company’s got - and on the other hand, our liabilities - that is to say, what
Accountancy used to be a respected profession which policed itself. For
we owe.
many decades that seemed to work but in the 1990s companies came
> Gotcha.
under increasing pressure to produce consistently rising earnings and
 Let’s focus on the current year. If you add up our current assets, you get a @ No way. Do you know what this does to a company’s credibility? What'll
total of $105 million. happen to our stock price?
OK. Just a sec - | understand cash and cash equivalents. But what are > But you’ve overstated your earnings by at least $5 million.
accounts receivable? @ Listen, we wouldn’t be the only company that’s a little off in its accounts.
That’s a funny accounting term meaning the money owed us by our And you should remember that we’ve been a client of Smith Holmes and
customers - which we have to write invoices for. Watershed for a long time.
v Right. OK. ‘Inventory isn’t a problem. It’s what we’ve got in our warehouse ... >» And SHW has a very strict code of conduct.
Let’s go on to fixed assets, although you'll notice we haven't listed them as @ And if we refuse to do a restatement?
a separate category. These are plant and machinery and land. When we’re » Then! would express an adverse opinion on your statements.
calculating the fixed assets, we have to deduct the depreciation costs for
plant and machinery, since they lose value over the years. Notice that we
Diplomacy: Breaking the bad news
always use a minus sign in front of that item. Now add plant and machinery
with land less depreciation to current assets and you get a grand total of Page 100, Exercises 2 and 3, @ John Lightfood, Gigacorp
$132 million. Conversation 2 » Susan Carter, Smith Holmes and Watershed
I’m with you.
Hi, Susan. | understand you wanted to talk to me. Do come in.
avUnder ‘liabilities’ we’ve got three items: accounts payable, taxes payable
Thanks. I’m glad you could arrange time to see me.
and a figure for bonds we’ve issued.
Please sit down. Can | offer you a cup of coffee?
Accounts payable must be the opposite of accounts receivable.
No, thanks, I’ve just had a cup.
That’s right. And those three items add up to $60 million.
So, Susan, just what was it you were wanting to talk to me about?
Clear enough.
John, as you know,
veveve we’ve been reviewing your financial statements for the
V Then comes the shareholders’ equity, i.e. what the stockholders have
BVEB
last year and, unfortunately, there are a number of figures that don’t quite
invested in common stock. That’s also $60 million.
add up.
Just a second. Remember | did art history. I’m not very clear on common
Hmmmh. Really?
stock.
ve Yes. I’m sorry to say that the figure for earnings is not supported by the
OK. There are two types of stock - common and preferred. Preferred stock
other documents we’ve had access to.
gives shareholders special rights - for example, they can always collect
That’s impossible. It was a very good year and we all know that.
dividends and if a company goes bankrupt, they are paid off before the
But it's not quite as successful as the figures in the financial statements.
other stockholders.
And so what are you trying to tell me? That we’ve been cooking the books?
The other type is common stock. Shareholders with common stock
veve
Well, there is the possibility that it is a deliberate misrepresentation but we
have voting rights but receive dividends only if the company shows good
can also assume that it was just an error.
growth. We have never issued preferred stock because we’re a relatively
And so what’s the damage?
small company.
As an external auditor, | have no choice but to insist the company restates
Very interesting. And here’s the last question: what does retained
the original financial report.
earnings mean?
No way. You know what this does to a company’s credibility? What’ll
Those are the profits we’ve reinvested in the company - $12 million. That
happen to our stock price?
gives us a total of $72 million. If you add shareholder equity to our figure
> But the earnings figure is clearly off by at least $5 million. I’m very
for liabilities, you get a total of $132 million, or just the same as total
concerned about that.
assets. So total assets equal total liabilities and shareholders' equity, and
Listen, I'll tell you what I'll do. I'll have a talk with the CFO tomorrow
voila, we’ve got a picture book balance sheet.
morning and ask him to check his figures again. I’m sure there’s a simple
No massaging the figures, Vijay?
explanation for this.
No massaging of the figures. I’m an honest accountant!
P Yes, I'd appreciate that, John. You know that Smith Holmes and Watershed
have a very strict code of conduct and something like this could have
Diplomacy: Breaking the bad news embarrassing consequences for all of us.

i », Page 100, Exercise 1,

Conversation 1
@ John Lightfood, Gigacorp
> Susan Carter, Smith Holmes and Watershed
Vv
I'll get back to you tomorrow afternoon, Susan.
Thanks very much, John.

Hi, Susan. | understand you wanted to talk to me. Do come in.

Thanks. I’ve got something important to discuss with you. Unit 11
Please sit down. Can | offer you a cup of coffee?
No, thanks, | don’t drink coffee. Listening: Tectonic shifts in the global
Well, Susan, just what was it you wanted to talk to me about?
John, I’m sad to say that we’ve been reviewing your financial statements for
economy
the last year and, and there are a number of figures that don’t add up. , Page 107, Exercise 2 @ Interviewer @ Erica Brown, Economics
Oh. Really?
ve Yes. The figure for earnings is not supported by the other documents we’ve
veveve
Welcome back. For today’s special report on rapidly developing countries
had access to. we have as our guest Erica Brown, chief economist of the business journal

That’s impossible. It was a very good year. We all know that. Economics. She joins us now on the line from New York. Erica, thanks for
sparing the time to talk to us today.
The figures in the financial statements tell a different story.
Not at all.
And so what are you trying to tell me? That we’ve been cooking the books?
@ Could you tell us what role, in your view, are the BRIC countries playing in
Well, somebody
veve could have been deliberately manipulating the numbers or,
the world-wide economy?
in the best case scenario, it’s a mistake.
Well, I'd rather like to talk about rapidly developing countries in this context
And so what’s the damage?
because the BRIC countries represent only some of them. But when we
You’re going to have to restate your financial report.
take a look at these emerging economies we need to talk about the next
phase of globalization - globality. This means that we now have a radically B |see. Well, much as I'd like to discuss this further, time has beaten us, so
different competitive environment, in which everyone from everywhere unfortunately we’ll have to leave it there. Thank you very much for
competes for everything. answering our questions and finishing off on such a positive note, Ms
OK. Could you clarify what that means exactly? Brown. Goodbye.
Of course. We used to have a situation in which rich-country companies ® Goodbye.
expanded into poor countries, outsourcing their own assembly jobs, their
lower value jobs and basically spreading Western culture around the world.
Well, that is over now. We now have companies from rapidly developing
Describing trends: Economic growth
economies moving into developed markets or other emerging markets and , Page 108, Exercises 1 and 2 University lecturer
becoming challengers to Western multinational corporations all over the
When we talk about the BRIC countries we always place special emphasis on
world.
their impressive growth rates. But are they really that impressive?
| see. And why has this change happened?
Let’s have a closer look at China and India.
Well, what’s going on at the moment is that you see the benefits of global
China’s GDP growth rate rocketed to over 14% in 1992, from just 3.8% in
integration: trade barriers have come down; investments, banks or
1990. But the country couldn’t really maintain this high rate. First growth
accounting firms are available to everybody; talent from everywhere can
declined gradually but then, in 1994, it started to fall dramatically and reached
work anywhere, so if you were an Indian or a Chinese company you could
a low of 7.8% in 1998. As you can see, there was quite a strong growth in the
tap into the best resources in the world.
following year, but growth quickly returned to around 8% in the following two
So what does the world in the era of globality look like?
years. But then we could see a steady increase in GDP growth to 10% in 2003
Well, in recent years we’ve been watching the arrival of lean, ambitious,
which stayed at this level for the following two years and then surged to
resourceful companies from rapidly developing markets. And they have
another peak of 13% in 2007. Needless to say, due to the worldwide economic
entered the arena of global competition at high speed. For example, in just
crisis the growth rate has fallen dramatically and is expected to fall even
two years, from 2006 to 2008, the number of companies from Brazil,
further, although at a more modest rate.
China, India and Russia listed among the FT Global 500 more than
My next slide shows India’s economic performance, which is quite different
quadrupled, from 15 to 62. It is not just the Indian Jata Group, which made
as you can see, especially at the beginning of the 1990s. In general India’s
it into the local newspaper headlines over here in 2008 when they acquired
figures were considerably lower than China’s.
two of the Western flagship car brands Jaguar and Land Rover - there are
Starting with an impressive rate of 5.6% in 1990, growth plummeted by
other players like Lenovo, a Chinese computer maker.
over 4% to around 1% in the following year. However, as you can see here, the
So bearing that in mind, do you think that well-established Western
growth rate recovered and reached the level of 1990 again in the following
companies have to fear for their world leadership position?
year. From then on India enjoyed steady growth rates up to almost 8% in 1996.
Not unduly. However, there are certainly a lot of threats which come with
Unfortunately a period of rather unsteady growth set in and lasted till 2002,
globality so they need to be aware of this.
when economic growth hit another low of 3.8%. This was a turning point,
First of all, Western companies need to be as clever and cost-effective as
though, because India was also able to benefit from the recovery of the
the indigenous companies, making a lot more out of a lot less, which we call
worldwide economy, which was reflected by a boost in growth of almost 5 to
frugal engineering. For example the Indian company /Jata Motors is here on
8.5% in 2003 and to 9.7% in 2006. In 2008 India was also hit by the economic
the forefront with its “people’s car”, the Nano. This car is not just the result
crisis, So growth has declined sharply and could reach 5% in 2009.
of using cheap Indian engineers and it is certainly not about accepting lower
safety standards. In fact, the company used state-of-the-art virtual design
technology and what they came up with is this truly innovative car. It will sell
Unit 12
like hotcakes in other emerging markets because the people there need a
cheap alternative to the motorcycle when travelling with their family. So VW,
Listening: Setting up a business
for example, which sold more cars in China in 2008 than it sold in Germany,
will certainly be put under pressure by the Nano. ., Page 115, Exercise 3 ® Michael Benyon, Interviewer
Right. | see. So ... P Rebecca Bright, SureFire
Can | also add here that another important obstacle is the mindset of
® Someone else who’s taking advantage of Cambridge’s environment for
Western multinationals. If they think they can deliver the same old products
high-tech business is Rebecca Bright. She’s a PhD student whose proposal
to the developing world orjust focus on the well-to-do urban consumers,
for a new software security product won the university’s technology
they will miss out on the mass consumer markets that are emerging. They
entrepreneur prize four years ago. The product makes remote access to
need new business models like Air7e/, the Indian market leader in the
networks more secure but works in a technically simple way. So how is the
mobile telephony market. AirJe/ charges the lowest prices in the world and
development of the business going?
by doing so they could take advantage of the millions of poor consumers
> |’ve set up and registered the company, under the brand name SureFire.
which India has. At the same time they are hugely profitable because they
We’ve got a prototype ready and have done our market research. So we're
have outsourced their operations to big multinationals like /BM.
almost ready to go, but before the launch, we have to finalize the sales and
Right, so is there hope for Western multinationals?
marketing strategy. | expect us to launch in about six months’ time.
Oh sure. There are huge opportunities lying ahead. And the multinationals
® And how have you funded the business so far?
have heard the wake-up call and are now moving swiftly, because their
P Basically, we’ve used our own money so far. We’ve been working on a part-
traditional markets in the West have become saturated. General Electric is
time basis while continuing our everyday work or research. But we’re now
a good example here. Since they launched their green technology strategy
looking for external investment to fund salary costs and other overheads.
they have been collaborating closely with the Chinese government to ® Launching a new business in the middle of a recession sounds risky and
provide the much-needed electricity for the development of the rural areas.
maybe even scary. Why are you doing this rather than taking a safe job
Same strategy with Vietnam’s government: the country is facing huge
with a big company?
problems in water, oil, energy, aviation and rail, and GE has sophisticated
> The truth is, in this business environment, nothing is safe. There are few
products to sell in all areas. well-paid jobs that offer any kind of security, so | think it’s worth pursuing
And just one more thing if |may: Western companies still have a strong
your dream. It’s more fun and I’m learning skills that will be useful
lead in managerial skills, marketing and R&D. If they concentrate on these
anywhere.
strengths they will stay competitive for a long time.

195
 But now we’d like to expand and get into the market of electronic gift
Using legal terminology: Describing a vouchers. For this we need at least £10 million, a sum which none of us can
company’s legal structure raise. So we have just changed the legal structure of our company in order to
make it possible for outside investors to buy shares. Because of this change
Page 120, Exercise 3 Adrian Harris, Dream Cars Europe
we have to meet new obligations. For example we now have to disclose
Hi, my name is Adrian Harris and I’m the director and co-founder of Dream financial information about our company and we have to pay corporation tax.
Cars Europe. We rent out extremely high-spec cars, such as Ferraris,
Lamborghinis, Bentleys and Aston-Martins on short-term and long-term leases.
The company’s grown organically because we've invested all our profits and
now it’s a £4-million business with a fleet of 22 cars and offices in London,
Paris and Madrid.
We decided to keep private liability at zero because we know that the
success of our business depends a lot on the state of the economy. All of us
here have a business degree, so fulfilling the requirements of the Companies
Act is no problem.
Although all of us share the passion of driving around in a wonderful car,
we never know if we might get fed up with the business one day. We're still
under 30, you see. So if one of us leaves the company, we won’t need to
dissolve it.
P Ken, ® Bobby, Skateboarding.com

Vv Hiya, we are Ken and Bobby ...

Hiya
va ... owners of the company Skateboarding.com. We became friends at law
school and started a blog and a simple T-shirt line. Now Skateboarding.com
is a worldwide skateboarder life style and clothing brand with an online
magazine. Our revenue last year was £2 million, wasn’t it?
™ Yeah. Well, we’re not so much into running a business - we’re more
interested in bringing together like-minded people and communicating
ideas ...
\A Yeah
©... so the form of the company we chose is easy to run. We credit much of
our success to our independence, don’t we? And we’re the perfect match,
you and me.
Vv Yeah. My ideas and his skills.
@ Well, | don’t know about that.
P But there is an element of risk - if one of us ever gets into financial trouble
which could affect the company, the other one has to step in with the
private capital. So we hope this will never happen, don’t we?
® Yeah. We don’t...

Helen Stuart, Stuart Homes

Hi, my name is Helen Stuart. I’m the owner of Stuart Homes which sells my
product “Clock-around-the-room” online.
| invented the clock on wheels when | was a student at Sterling but it was
only when some tech bloggers stumbled upon my invention online that |
started considering the option of becoming an entrepreneur. | could have
licensed it out but | couldn’t bring myself to give up control. On the other hand
I’m an engineer and not a business person, so running a business needs to be
very simple for me.
| was lucky enough to have the necessary capital of £80,000 raised by my
family. | don’t think that I’ll go bankrupt, though, because the market for
gadgetry is huge. So I’m not running the risk that creditors will go after my
private property.

Gareth Evans, Marketingonline.com

Hello, my name is Gareth Evans. My twin brother Lee, our business partner
Rhys Morgan and | founded our marketing firm while we were still students
with a £100 investment, which was just enough to pay for the first month’s
web hosting fees. Our business model is simple: we help companies acquire
customers online by building an inexpensive online marketing campaign to
fulfill that demand. Last year we had revenues of £5 million and we expect a
100% growth rate for this year. So we’re doing pretty well.

156
 Alphabetical wordlist
sb = somebody ambiguity 84 ban 73
sth = something ambition 96 toban 72
ambitious 12 bangle 42
A ambush 66 bank statement 32
abreast, to keep ~ of sth 77 toambush 66 bankruptcy 77; bankruptcy protection 96
abundance 137 amenities 497 bar, to raise the ~ 63
academia 587 to amount to sth 387 bar chart 39
to accelerate 739 annoyance 48 bargain 36
to access sth 37 annoying 297 to bargain 79
accessible 34 annual 77; annual meeting
@= 77; annual bean-counter 95
accidental 25 sales 35 tobear 73; tobearinmind 1/077
to acclimatize /3 to anticipate sth 9/ beggar 13
toaccomplish 15 anticipation 6/ behalf, on sb’s ~ 77
accomplishment 25 to be anxious todo sth 72 behavior 73
to account for sth 39 apology 25 belief 53
account: current account 75; fixed deposit apparel B= 38 beneficial 62
account 78; savings account 297 apparent, forno ~ reason 27 benefit 16; fringe benefits /6
accounts, 95; accounts payable 98; accounts appeal 66 to benefit 77
receivable 98 to appealtosb 34 beyond /4
accountability 85 appliance 42 biannual 704
to be accountable tosb 85 applicable, not ~/N.A. 29 big-box retailer 34
accountancy firm 96 applicant 6 Bill of Lading 48
accountant 94; Certified Public Accountant/ application
B= 6 billboard 657
CPA B= 95 to apply for sth 6; toapplytosth 29; to apply (a billing 297; billing address 287
accounting 77,94; accounting company /7 law) 78 bland 73
toaccumulate 76 to appreciate sth 22 blank 24
accumulated amortization 99 approach 8; to blow the whistle 95
accuracy 97 to approach sb 40 blue chip 77
accusation 36/7 appropriate /8 blue-collaremployee 77
to accuse 52 approval of the minutes 89 board (of directors) 5/; boardroom 857;
to achieve sth 7/2 to approve 73 corporate board 92
achievement, 8 apron 56 to boast 41
to acknowledge 87 arms: tobe upinarms over sth 73 bohemian 71
acquisition /00 armament 82 bolt 55
acronym 1/04 array 56 bond 77; governmentbond 76; long-term
act 9/7, tobeinontheact /22 artificial 53 bondsissues 98; toissuebonds 77
toactup 297 assembly 54 bonded storage 4/7
action: class action suit 5/7; course of assembly line 55 bonus 124
action /0/;legalaction 30 to assert 46 bookkeeper 94
toadapt sth /7; to adapt to sth /25 assessment /8/7; assessment bookkeeping 94
adaptable /2 procedure 8/; self-assessment //9 boost /06
adept 35 asset(s) 76; asset management 76; current to boostreturns 82
adjournment 89 assets 98; fixedassets 987; intangible boredom 56
to adjust 6 assets 98; nettangible assets 99 to borrow 82
administration 73; assignment /0 borrower 80; borrowing fee 82
admiration 50 associate 27 borrowing rate 80
toadopt 557; to adopt (a policy) 53 toassume 53 bottleneck /05
Adshel 72 assumption 23 bottom line 95
advanced industrialized economy /04 to assure sb sth 5/ bound for 477
advantage, to take ~ of sth 26 assuring 28 bow 25
advent of 697 ATM 8&2 branch 37
adverse opinion /007 to attach sth 56 brand 35; brandowner 35
to advise 9 to attain 63 branded goods 35
to advocate /9 attendance 88 branding 66
to affect 35 to attract 5/ break: to break sth down /34; to break the
affirmative 17 to be attributable to sth 1/6 news /00
affordable 62 to audit 9/77 breakeven //7, break-even point /76
agency: advertising agency 8; executive auditing procedure 81 breakup 737
agency 1/9; governmental agency 857 auditor 95 bricks and mortar store 347
aggregated 387 authority 73 brief 8
agreement 53 available 9 bright 19
agriculture 53 average 9 broadband services 96
ailing 53 aviation 1077 to broaden 66
toaimatsb 67 to be aware of sth 8 broker 77
airfare 1/8 awareness //3 brownfield site 20
albeit 73° awash 62 buck, to pass the ~ 65
alienation 85 to buckatrend 32
all-around 46 B budget: budget deficit /39; budgetplan 75
all-out price war 35 backlash 6/ to budget 82
allegation 7/7 backward 45 to buffer 77
to allege 43 badge 24 building block 62
allegedly 96 bake sale /27 burden 73
alliance 5/ tobalance 54 bureaucracy /05
to allocate (capital) 1/7 balance: balance of payments business: business dealings, 82;
to alter 73 deficit 45; balance sheet 8/; off-balance Business Economics 9; business
alumnus //2 sheet 96; onbalance 46 income //9; business process
toamass 96 balanced fund 787 outsourcing /BPO 497; Business Studies 9;
amateurish 687 balminess 42 (general) business unit 907
 Alphabetical wordlist.

to buy sb out /2/ commercial: commercial corporate: corporate board 92; corporate
buzz 687; buzzword 557 invoice 487; commercial paper 77 fraud 97
commission 76; commission of an offence /03 corporation 44; Corporation
B= 119;
Cc to commit 6 corporation tax 1/9 er
to call sth off 24 commitment 7/7; 81 corrugated steel 24
caller volume, high ~ 33 commodity 48; 1/05; commodities cost: cost management, //6; labor
campaign /0 products 77 costs /04; running costs 80; cost,at //2
campus 77 Common Market 53 to costanarmandaleg 65/7
to cancelacontract 30 common stock 98 counselor 9
cancellation /40 communicator 66 to counter sth 33
capital: capital expenses /00; capital gain 77; community service 9 counter to sth 32
capital surplus 99; working capital //8 tocommute 24 countercurrent 53
tocapture 62 company: company secretary //9; company coupled with 23
cardboard 35 structure 179; private limited company / Ltd. courage 96
career counseling 7/7 == 119; public limited company / PLC se course of action /0/
cargo 4/7 119; Companies Act //9; Companies courteous 29
carrier 48 House 7/9 cover: to coverup /03; to cover a lot of
to carry outsth /0 to compensate sb for sth 26; to compensate for territory 907
cash: cash and cash equivalents 98; cash sth 52 cover letter
= 7
flow 96 compensation 6 coverage 697
cashier 40 competition 7/7 covering letter == 7
cashpoint 297 competitive environment /07 crane 477
catalyst 122 competitiveness 43 crate 4/7
to catapult 77 competitor /4 credibility 66
to catertosb 347; to cater for the needs (of to compile sth /0 to credit sthto sth /207
sb) 82 tocomplement 59 credit: credit crunch 75/7; credit
cautious 78 completion 55; completion date 27 rating 76; creditrisk 76; oncreditterms //6
celebrity endorsement 657 compliance 82 creditor 98
cemetery 73 compliant 82 creditworthiness /04
certificate 9; certificate of origin 487; doctor’s to comply with 787 tocreep 73
certificate /40 to comprise 57 criminal penalty /03
certified public accountant / CPA == 95 to conceal 96 critic 66
to chair (a meeting) 84 concern 23 to cross a watershed 45
chair(person) 89 concession 80 crucial 46
challenger /077 conclusion 45 to crunch numbers 95
Chancellor (of the Exchequer) /4 concrete 73 crushed //7
characteristics /4 tocondense 75 crying jag 73
charge: extra charge 28; deferred long-term to conduct oneself 82 cubic 477
assetcharges 99; deferred long-term conference call 97 tocurb 50
liability charges 99; freight to confess 8 currency 76; currency futures 76
charge 48; initialcharge 76; in charge confidante /7 current: current account 297; current
of 24; safe custody charge 76 confidence 7/5; confidence boost /23 assets 98
to charge sb (a price) 27; to charge (a credit confidential 63 curriculum vitae
/ CV == 7
card) 30;to charge sb with sth 96 confirmation 32 to curtail 62
chart 38 conflict of interest 977; conflict-of-interest to cushion 56
tochase 37 issue 96 customer: customer base 32; to grow one’s
check, to keep sthin~ 63 conscientious // customer base 32; customerinquiry 32;
check-out 37 conscientiousness 7/7 customer satisfaction 30; customer service
chief accounting officer 95 consciously 33 26; customer survey 9
chief executive officer /CEO 63 consensus 8 customization 657
chief financial officer /CFO 69 consideration, to take sthinto ~ /5 customized 7
child labor 87 considered, to be ~ sth /6 customs 47
chromium 7/7 consignee 48 cut 35; cutanddried 85; cut-price operator
tocitesthassth 73 consignment 48 35; cut-throat competition 657
citizen 73 conspiracy 96 cycle 367
city: city council 6/; city dweller 70; toconsult 15
city hall 857 consultancy /8 D
claim /00 consultant /7 database 9
clash 23 consumer 27; consumer credit 7/6; consumer dated 697
class action suit 5/ protection 5/ deadline 7
to classify 76 to contemplate 52 to deal with sth /0
clause /03 contemplation /03 dealings 96
clientele 347 contract, tocancela~ 30 dean 90
cloth 24 contraction /37 to debit (a bank account) 32
to be cluedinonsth 987 contrarian 77 debit card 82
clutter 69 contrary to sth 46 debt(s) “44; debttrap 74;
code of conduct /00 contrast, by ~ 46 to restructure debt(s) 43
coercion 857 contribution /3 debtor 98
coercive 85/7; coercive power 84 contributor /05 decade 38
to coincide with sth 96 controller 66 decal 55
collapse 96 controversial 66 deceit 95
tocollapse 96 convenience 35; convenience of location 35; deceptive 66
collection of taxes //9 marriage of convenience 90 decision-making /0
collusion 96 convenient 347 todecline 77
Columbus spirit //4 conventional wisdom 77 todecrease /05
come: to come along way 36/7; to come down conveyor belt 55 to deduct 987
106; tocome loose 5/7 conviction 977 deduction /00
command 84 to cook the books 94 todeem 82
deep end, to get thrown in atthe ~ 84 todraft sth 9; todrawsthup 75 toerect 72
to defeat 85 downturn, economic ~ /87 essentials 35
deferred 99; deferred long-term asset charges dragon 122; ~’sden 122 toestablish 347; to establish oneself 35; to
99; deferred long-term liability charges 99 drawback 46 establish rapport 50
deficit: government deficit /05; balance of to drift 25 establishment 34
payments deficit 45 drop 44 estimated 27
deforestation 105 drop-proof 587 ethic(s) 66
degree 6 to drop out of college 79 to evaluate 6
to delegate 85 todub 775 to evolve 63
deliberate 94 dubious 96 toexceed 75
delicate 907 to duct-tape 56 excerpt /4
delivery address 28 dull 587 excessive 557
demand /87 todunk 66 exchange rate 76; exchange rate
democratic check 105 durability 587 adjustment /05; exchange rate
demographic 657 durable 62 fluctuations 7/6; floating exchange rate /05
denomination 76 dust-proof 587 to exclude 8;
todeny 977 duty 47 executive: executive agency //9; executive
to depict 37 summary //8; executive vice-president 87
to deposit (money) 297 E to exempt sth from sth 73
depreciation: less depreciation 98 earnings 77; earnings report 96; retained exhilarated /3
deprived 587 earnings 98 expenditure 69
desert 37 ease of handling 477 expense(s) 75; expense account /8
deserter 24 economic: economic downturn /87; economic experience 9
desertification /05 growth 45; economic slowdown 43 to experience a setback 35
desired 7/9 economy: advanced industrialized expertise 63
detained 497 economy /04; economies of scale 35 expiration date 287
to detect 57 editor-in-chief 63 explicit 85
detergent 36 education 9 to exploit 129
to deteriorate 23 egalitarian 85 exploitation 44
determination 7/4 to eke out aliving 172 to be exposed to sth 697
todetermine 8 elderflower 7/ exposure to 66
determined /2 embarrassing 96 exterior 56
determiner 705 toembrace sth 52 extra charge 28
detrimental 82 toemerge 73 extraction /05
devaluation 76 emergence 44 eyesore 7/3
device 297 emerging economy/market/nation /04
todevise 775 toempathize 28 F

to devolve sthtosb 85 empathy 28 F&A services /0/

diamond 724 toemphasize 40 face value 77
digit 24; double-digit /04 employee turnover 33 to facilitate 53
to digitize 47 empowerment 85 facilities 34
diligence 74 toenable 44 faction 5/
diploma 9 enclosed 56 faculty 9
directive 20 to encounter sth 77 fallout 97
dirt-cheap 43 endemic 1/05 to falsify 99
disappearance 33 end-of-period entry 94 to familiarize oneself with sth //
to discharge 477 toendanger 557 feasible 79
to disclose 977 toendorse 53 feature 58
disclosure 977 energetic 6 to get fed up with sth /207
to discontinue sth 70 energy: energy broker 96; energy provider 96 federal offence /03
discount 76 toenforce 857 federation 63
discounted to 36/7 toengageinsth 50;toengagesb 60; to engage fee 297
to discourage sb from doing sth 977 sbinaconversation 50 fen 175
discretion 8 engaging 697 fictitious 96
disgrace 96 engineering 48 to field questions /0/
todismiss sb 23; to dismiss sth as being toenhance sth /7 field research 42
sth 50 enlightened 73 fierce 77
dismissal /8 to enquire (about sth) 20 figure(s) 24; to massage the figures 95
to display 36 enquiry 2/ to figure sth out 43
disposable income /6 toenrollsb 90 to file 94
to disrupt 52 enrolled 4/ File 13 8
to distinguish 557 enrollment 90 film editor 697
to distribute 40 to entail 62 finalexam 77
distributed power 84 enterprise 104; foreign invested financial: financial future 77; financial
distribution 38; distribution channel 40 enterprise /FIE /05; small and medium- provider 82; financial report 94; Financial
distributor 40 sized enterprises / SME /05 Services Authority 82; financial
diverging 53 enthusiasm /7 statement 93
dividend 76 enthusiastic (about sth) 24 to fine 703
division 85; division of labor 86 to entitle sb to sth 27; to be entitled to (doing) finished parts 54
to do away with sth 367 sth 26 first-hand 64
doctor’s certificate /40 entity 95 fit 657
domestic 23; domestic partner /7 entrepreneur 4/7 fittings 73
domiciled 82 entrepreneurial spirit 1/4 fixed: fixed assets 987; fixed deposit
todonate 7/3 entrepreneurship //5 account 78; fixedinterest payment 77;
to double-check 28 entry /03; end-of-period entry 94 fixed-income fund 77
to downscale 62 environmental 77; environmental officer 20 flabbergasted 23
downside 73 equity 43; equity fund 77; returnon flatmate 80
downstream process 54 equity //8; shareholders’ equity 98 flattering 96
 flaw 5/7 to glare 35 housing: housing project 20; housing
fleet 47 glaring 977 subsidy 77
floating exchange rate /05 to go down well 25 Human Resources 8; human resource
floor space 347 global warming 50 management /24
flourish 53 globality 1077
to fluctuate //0 _ glossy brochure 90 I
fluent /0 goods: branded goods 35; manufactured illiteracy 105
flyposter 73 goods 45; soft goods 477; to stock illiterate 705
foam 487 goods 35 imagination 7
focus group 657 to govern 82 imminent 96
to followup 776 government: government bond /6; government impact 75
food poisoning 127 budgetary constraints /05; government impactful 773
foothold, tohavea~ 43 deficit 105; governmentservices 45; toimpede /03
footing 62 government spending 105, governmental impediment 63
force 85 agency 857 imperfection 55
to force sb out 36 to grab 77 toimplement sth /0
forefront, onthe ~ /077 grabs, tobe upfor~ 122 implementation 557
toforego 76 to graduate from high school 7 implicit 85
foreign: foreign direct investment /FDI 104; graduation 9 toimply 85
foreign invested enterprise /FIE 105 grant 67; 75 importation 777
foreman 23 to grant 75 toimpose 40
foremost, to put sth ~ 6/7 grassroots 53 impressive 22
forerunner 50 grated 56 toimprison /03
toforgeapath /7 greed 96 imprisonment 977
forged 8/ grid 112; offthe grid 772 tobeinontheact 122
former 20 grip: to get to grips with sth 75/7; to lose your incentive 67; incentive program 1/6
founder /7 grip 56 inclination 82
fraction 105 groceries 35 income: business income 1/9; disposable
framework 105 grocery store 36 income 76; fixed-income fund 77;
franchise /07 gross domestic product /GDP 46 net income before tax 178; real
franchisee 8 ground-breaking 62 income 52; source of income 757;
fraud 95; corporate fraud 97 to grow one’s customer base 32 to move up the income ladder 45
fraudulent 96 growth 7/87; growth market 7/87; growth inconvenience 297
freebie 66 rate 38 toincorporate /20
free-trade pact 45 grudgingly 37 incubator 86
freight 47; freight charge 48 guarantee 80; ~ arrangement 80 toincur 977; toincurcosts 78
frequent(ly) 8 guarantor 80 toindicate 687
fresher Shs 757 guided missile 86 to be indicative of sth 73
friction 97 gutfeeling 1/4 indifference 37
fringe 56 indigenous /07
frontage 73 H industrial business management assistant 9
frontier 63 habitual 63 industrialist 57
frugal /077; frugalengineering 1077 tohaggle 78 industry /7
fulfillment 86 tohandin 20; tohandin your notice 23 inequality 45
tofuel 105 hand-lettered 73 inexpensive 1207
to fulfill 787 to handle sth /0 infant mortality 705
fund 77, balancedfund 78; equity handling 47; easeof handling 477 toinflate 96
fund 77, fixed-income fund 77; money- hands-on 72 inflation, rate of ~ 74
marketfund 76; propertyfund 77 harbor basin 20 inflow 105
tofund /05 toharden 56 influx 47
funding 90; 115 hardened 56 toinform 7/3
funds 77, pensionfunds 96; toraisefunds 43 hard-working 77 information flow 557
tofurnish 176 hassle 26; hassle-free 60 ingredient 7/
furnishings 178 haulage company 477 inhabitant 44
futures (contract) 77, currency head of buying 35 inherent 85
futures 76; financial futures 77 headquarters 77 initial charge 76
health care 1/6; initial 1/6
G ~ cost management //6 initiation 55
gadgetry /207 heartland 35 innate /4
gain 35; realgain 52 toheave 477 input material 54
garden courtyard 7/8 tohedge 77 insider trading 95
gear 56 hefty prize kitty 122 insight 23
gearing Spee 82 high: high net worth 77; high-profile 122; toinsiston sth 32
general: general business unit high-spec /207 insomnia 1/3
(GBU) 907; general ledger maintenance /0/; to highlight sth 8 inspiring 12
general merchandiser 347; general hike /05 instance 3/
partnership 17/9 tohinder /05 to instruct sb (todo sth) 30
to generate 7/5; to generate interest 50; hinge 56 insulation 56
to generate rapid sales 35 hive 123 insurance policy 487
generous /3 HM Revenue and Customs //9 toinsure 16
get: to get hold of sb 20; to get to grips with sth hoarding 72 intangible assets 98
75T hold, to get ~ of sb 20 intent /03
gift voucher /207 homemaker 42 interconnected 44
ginger 7/ hooked: to become ~ on sth 66 interest 74; interest-free 75; interest group,
give: to givesbthe nod /23; to give hospitality 49 105, interestrate 74; interestrate cut 74
notice 30; to give preference to sb 6; to give tohost 7 to interfere with sth 73
sb arundown on sth 98 hostility 69 interference 103
hotcakes, to selllike /077 interim store 54

160
 leverage
B= 82 misrepresentation /007
liability 57; 77; liabilities 96 to miss out on sth /077
tobe liable 977 mission statement 176
liberal arts 98 modest 787
to license sth out 1207 to modify 70
tointervene 97 life: life expectancy /05; life insurance 30; life mold 55
intestinal perforation 57 span 78 mom-and-pop store 34
intricate 56 likelihood 13 monetary 77
intrinsic value 82 like-minded 87 money-market
fund 76
invader 85 limelight 557 to monitor 23
invalid 287 limits on trade 46 monitoring 5/
inventive 73 toline 73 mood /3
inventory 55 line manager 557 mortality: mortality rate /05;
investigation 96 liquid 76 infant mortality 705
investment: investment criteria 76; liquidity 76 mortgage 82
investment trust 77; foreign direct literally, to take sth ~ 557 motion 557
investment /FDI /04; return on tolive upto sth 697 tomount 37
investment 7/6 livelihood 703 mug shot 24
toinvite sth 52 living expenses 75 municipal government 47
invoice 987, commercial invoice 487 load sequence 477 to mutilate /03
toinvolve sth 787; to beinvolvedinsth 40 loan 75; totake outaloan 75
ironore 737 longevity 62 N
issue 77; longshoreman 477 narrator 25
toissue 287; toissue (bonds) 77 long-term bonds issues 98 to narrow sth down 8
issuer 77 loosey-goosey 857 national borders 44
item 35 to lose your grip 56 nation-state 53
loss 557; loss-making 105 native 85
J low-skilled wages 52 natural gas 105
to be jaded about sth 33 the lowdown on sth 97 negative goodwill 99
jail 96 lucrative 73 negligence 977
to jeopardize 52 negligible 387
jobinterview 7 M negotiable 7
joint 50 mergers and acquisitions /M&A /04 tonegotiate /9
tojotdown 76 machinery /0 negotiation 78
judge 122 to maintain 26 neodymium ///
jurisdiction 103 major 6 net: high net worth 77; net income before
to majorinsth /2 tax //8; nettangible assets 99;
K make-to-order production 54 net value 95
keep: to keep abreast of sth 77; to keep an eye management
fee 76 newly industrializing economy 46
onsth 95; tokeepsthincheck 63; to keep manpower 4/77 niche: niche market 62; niche marketing 64;
track of sth 94; to keep up with sth 7/ manually 56 niche product 67
key: key component //3; key role 50 to manufacture /9 nightmarish 76
to key sthin 287 manufactured goods 45 nimble 43
keystroke 32 manufacturer 9 Nobel laureate 45
kick-off meeting 88 manufacturing (sector) 4/ no-brainer 987
tokitsb out 24 market research 657; marketresearcher 64 nod, togivesbthe~ /23
knowingly /03 market share 35 nominal value 77
knowledgeable 29 marketing effort 64 non-governmental organization /NGO 8
marriage of convenience 90 notable 56
L to massage the figures 95 notice 95; to give notice 30; to hand in your
labor: division of labor 86; labor maternity leave /7 notice 23; notice, short 20
costs /04; childlabor 87 mature //8 to notify sb 28
lack 7/4 maturity 76; maturity date 77 notion 62
tolag behind sth 705 mayor 72 notorious 73
land 98 meaningful /2 novice 77
lasting interest /04 means 66 nuisance 3/
launch 66 measure, a ~ of sth 56 nut 55
tolaunch 7/07; tolaunchsth 38 tomeasure /04 nutrition 66
law: law enforcement officer 7/03; measurable 70 nutritious 707
law school /207 measured creep 56 nutshell: to putitina~ 697
lawful 703 media coverage ///
lawyer 30 medical bill 776 oO
layer 85 medieval 775 objective /2
lead level 5/ tomelt down 56 obligations 24
leadtime 55 merchandise 347 to observe 9
lean 55; ~ manufacturing 55 merchandiser, general ~ 347 obstacle /07
lease 82; afresh lease of life 1/2 tomerge 697 to obstruct /03
leasehold improvements 7/6 merger 9/ toobtain 77
lecture 38 mesh network 587 tooccur 78
lecturer 38 milk round /22 off; off the grid 7/2; offtherack 8;
ledger, general ~ maintenance /0/ mindset /07 off-balance sheet 96
legal: legal action 30; legal challenge 73; mining 705 offence 96; federal offence /03
legal structure //9 minority interest 99 office management 77
legislation 179 to mint money 43 to offset sth 52
leisure time 7/4 minutes 89; approval of the minutes 89 offshore- /0/
lending criteria 87 minute-taker 90 to offshore /0/
lengthy procedure /05 miscellaneous/Misc 99 offshoring 32
lettering 73 misleading 66 onshore /0/
Alphabetical wordlist |

open house 90 pet (subject) 104; pet peeve 8 professor of production operations
tooperate /0 pharmaceutical 77 management 55
operational language 33 pick-up service 42 to be proficient in (a language) 9
operator 477 topickup 105 proficiency /0
order intake 54 pie chart 38 profit: profit margin 367, retained
organic 7/7 pile 8 profit 720; toturnaprofit 1/2
°
organically grown 40 to pile 35 progress meeting 88
tooptforsth /7 pilfering 47 prohibited 73
outcome 62 to pinpoint sth 60 projection 54
to outduel one another 62 topitchtosb 122 proliferation 85
outlet 34 pitfall 82 promising 8
to be outnumbered 46 to place sb somewhere /3 to promote sth 53
to outperform 387 plant 23; plantand machinery 98 promotion /6
output 23 to plead for sth 5/ promotional discounting 36
outright 37 to pledge 35 to be prone to sth 55/7
outsourcing 32 pledging arrangement 80 pronounced //0
to overbill 297 plumbing supplies 98 to proofread 20
to overcharge sb 26 to plummet /087 to propel /7
toovercome /5 to plunge 1/57 property 76; property development 20;
overdraft 82; overdraft facility 75; point-of-sale/POS 42 property fund 77; property
overdraft limit 75 to pointto 76 ownership 76; property right /05
overhead power line 7/3 to police 977 proposal 687
overheads /75 policy 42 to propose 72
overjoyed 77 politeness 33 prospect (of) 687; prospects 35
to oversee //6 pollution 72 prospective 22
oversight 95 polystyrene 487 prosperity 55/7
to overstate /007 polyurethane 487 protectionism 45
toowe 30; toowesbanapology 297 population density 39 prototype 7/5
owing to 1/05 port 47; port of discharge 48; proverbial 56
ownership: part-ownership 77; port of loading 48; port oforigin 487 provider 27
partial ownership 82 portfolio 77 provision 96; to make provisions 78
posh 35 public: public limited company /PLC
P to pound 56 == 119; public sector 105;
pace 56 poverty 44 publicly traded 96
packaging 64 power: power consumption 587; to publicize 7/7
packing list 487 coercive power 84; distributed power 84 pull production method 54
padding 487 to praise 73 to pullout 35
paddle 56 precious metal 77 to punish 52
paidleave /9 predecessor 587 purchase 35 purchaseinvoice 94
pale /// predestined 77 to purchase 77
pallet 477 predetermined 77 purchasing (department) 9
panel: panel discussion 7; to predict 73 purchasing power 35; parity /04
panel of judges Jury 122 prediction 73 to pursue (a policy) 53
part 27 predominantly 40 pursuit of objectives 7/4
partial ownership 82 prefab housing 62 push production method 54
particularity 92 preferred stock 987 put: to putastrainonsb /9; toputitina
partisan /22 preliminary 88 nutshell 697; toputsbinthe picture 65/7; to
part-ownership 77 premise 53 put sth foremost 6/7; to put the squeeze on
partnership, general ~ 779 to be prepared todo sth 8 sb 367
pass: topassalaw 72; topassthe buck 65 president of the board 89 pyramid, bottom of the ~ 7/2
passionate /9; tobe passionate about sth 122 topresssb 40; topressahead 73
paternity leave /7 prestigious /87 Q
patience 297 pricing strategy 1/7 to quadruple /077
to patronize 42 to pride oneself on sth 347 quarter 96
pay: pay cut 67; pay-by-performance 23 primary: primary data 64; to question sth 73
payment: fixed interest payment 77; primary product 705 questionnaire 29
balance of payments deficit 45 prime 347 quitting time 37
to payrollsb 6/ prior 75 quota 45
peak /087 prison sentence 96 to quote: to quote sb 487; toquote 69; tobe
peaked cap 24 private: private consumption /05; private quoted ona stock exchange 8/
peers 66 limited company/Ltd.
f= 77/9; privately
pelletized plastic 56 held 7/6 R
penalty fee 75 probationary period 78 rack, offthe ~ 8
to penetrate 97 to probe 50 rage, tobeallthe ~ /22
pension funds 96 proceeds /27 raid 857
percapita 52 process, downstream ~ 54 toraise 79; toraisethe bar 63;
percentage 72; percentageincrease /04 to process 9 toraise funds 43; toraise money 77
to perform 70 processing stage 54 range 8
performance /5; performance ratio //7; product supply 907 torank 16
pay-by-performance 23 production: production rate 48; rate ofinflation 74; savingsrate 76
perks 76 (department) 9; production cycle rating 40
permanent contract /8 557; production facility 23; production in raw materials 45
permission 92 sequence 54; make-to-order reach 7/2
to perpetrate acrime /03 production 54; pull production readily 73
persistence //4 method 54; push production method 54 readjustment 23
personalized 37 profession 97 real: real gain 52; realincome 52
personnel (department) 9 professional journal 64 real wage 45; recall 5/7
pesticide 53 toreassert /05
torebound 77 return 76; return onequity //8; returnon sheet 56; 48-sheet 72
to recall (products) 5/ investment //6; toboostreturns 82 shelf 56
receipt 52 torevamp 40 shift 62
receiver 66 toreveal 687; torevealsth 23 to shift 46
rechargeable battery 297 revenue 38; HM Revenue and Customs //9 to ship (goods) 287
toreckon 35 review 89 shipment conditions 28
record 32 toreview 94 shipper 48
to recoup (money) 26 ride, totake sbfora~ 757 shipping 487; shipping address 287
torecover /087 rigidity 56 shop floor 55
recovery /087 riot 1/7 shopfront 73
recruit 24 to rip sb off 43 shoplifting 38
to recruit 66 ripple effect 45 shopping cart 37
recruiter 77 rise 46 short notice 20
recruitment 7 torocket /05 to be short-listed 20
rectangle 85 rouble /05 shot, to havea ~ atsth 35
red, tobeinthe ~ 757 toroute 27 toshred 977
redeemable preferred stock 99 route time 477 to shrink 67
redevelopment 20 royalty 707 toshun 32
redundancy 7/8 rude 27 sick: sick leave /7; tobe sick of sth 77
redundant 557; tomakesbredundant 557 torule sth out 82 to sift through sth 42
reference 7; withreferenceto 20 run-down 7/05 signage 73
torefine 775 running costs 80 significance 53
refractive error 7/2 rural 43 silver bullet 62
refund 26 site /8
refusal 30 S siting (of billboards) 73
regardless of 53 safe bet, It’sa~... 17 skeleton 56
toregister 175 safe custody charge 76 toskim 9
registered mail 30 to safeguard 52 skin care ///
regulated 73; toberegulated 82 sailing date 48 to skip 697
regulation /87 salary 77 to skyrocket 43
regulatory body 97 salaryman 24 to slash (prices) 35
to reject 33 sale and lease scheme 82 sleek 60
torelease 73 sales: annualsales 36; salesclerk 40; slide 69
reliable 72 salescontract 26; salesfigures 65; slip 27
reluctance 40 sales force 77; to generate rapid sales 35 sloppy /2/
reluctant 66 sample 90 slot 69
torelyonsth 47 to sandwich 697 slowdown, economic ~ 43
remediation 7/8 satisfactory 27 small: small and medium-sized enterprises /
remote 58 saturated 387 SME /05; smallarms 20;
removal 73 saturation 7/ the small print 757
toremunerate 23 saver 8/ smallish 56
remuneration 22 savings 52; 1/6; savings account 297; to smooth 7/7
renminbi 705 savings deposit 80; savings rate 76 snail 56
repayment period 80 savvy 66 tosoar /05
repetitive 56 scalable 123 sobering 37
replacement 26 scale 45 social safety net 45
reporting standards 977 scales 42 soda 7/
representative/rep 27 scenario, inthe best case ~ /007 soft goods 477
reputation 77 schedule 6 tosoften 24
request 6; uponrequest 9 to schedule (a meeting) 88 solar panel 773
torequire /3 scholar 82 sole proprietorship
B= 179
requirement 77 toscold 37 sole trader=f 119
research and development /R&D 62 script writer 697 sound 93
residence hall B= 80 to seal 56 sounding board /7
residential area 25 section /03 source of income 75/7
toresign 96 security 76 spacious 62
resignation 95 security guard 24 to spark sthup 62
resourceful /077 seductive //2 special-purpose entity 96
resourcefulness 7/7 selected 66 specialty 34; specialty chain outlet 34;
respective /07 selectivity 69 specialty store 367
respectively 35 self-assessment //9 spectacles //2
respondent 64 self-employed /87 speculator 77
responsibility /9 to selllike hotcakes /077 speech 24
responsiveness 86 selling point 697 speedy /8
torestate 96 sensible 56 spelling error 8
restriction 42 sensitive 487 spending 35; government spending 105
to restructure debt({s) 43 to serve time 96 spice oflife 62
restructuring plans 907 service sector 33 spider 84
resumé B= 6 set: to set the stage for sth 50; tosetup 9 spouse /7
retail market 72 to settle onsth 33 spread 44
retail price 36 settlement 857 tospread 35
retailer 34 severe /5 springboard /7
retailing 35 shakeout 43 squeeze, to put the ~ onsb 367
toretain 35 shanty town 87 to squirrel sth away 43
retained: retained earnings 98; shape form 17 to stack 477
retained profit /20 toshape /5 staff turnover /9
to retaliate /03 share 76 stage 54; stage of completion 56; to set the
retaliation 45 shareholder 77; /20; shareholders’ equity 98 stage for sth 50
 i
aes

ae

tostage 122 take onsth 367 turnover 39; employee turnover 33;
stake 77; tohaveastakeinsth 77 take: to take to sth /07; to take sth staffturnover /9
to stand out from sth 8 literally 557; to take advantage of sth 26; tuxedo B= 17
starfish 84 to take care of sth /0; totake outaloan 75; typo 8
state: state intervention /05; state to take sb foraride 757; to take sth into
support //9; state welfare safety consideration /5 U
net /05; state-owned sector 105 “to talk shop 50 ultimately 53
state-of-the-art 50 tangible object /03 touncover 977
statement 82 to tapinto sb/sth /07 underfunding /05
statute /03 target: target audience 66; target group 657 to undergo sth 1/6
steel sheet 56 to target sb 67 undergraduate 6
steep 52 tariff 45 toundermine 53
steeply 52 tasty 7/ underserved //2
tostepin 773 tax: tax consultant /02; taxcredit 6/; undertaking 77
to stick to sth 35 tax evasion 93; taxes payable 98; undervalued /05
stock(s) 77; common stock 98; stock taxreturn 94; net income before tax //8 undivided attention 29
exchange 77, stockindex 77; preferred taxable 77/9 unduly 1077
stock 987; redeemable preferred taxation 9 unemployment 96; unemployment
stock 99; instock 28 taxpayer 53 benefits 45; unemployment rate 107
to stock 367; to stock (goods) 35; technical jargon 29 tounfold 85
to stock up onsth 367 tectonic shift /07 union 6/; union official 6/
storage 47 template 38 unique 73
storehouse /05 temporary 9 unique selling proposition /USP 9
storey 96 to be tempted todo sth 37 unit trust 77
tostow 57 to tend (todosth) 24 university: university degree 94;
straddle carrier 477 tender 20 university of applied sciences 9
strain, to puta~onsb 79 territory, to cover alot of ~ 907 unregulated 73
to strain 79 text (message) SVMS 27 unsecured 77
strategic weapon 32 textbook 46 to untangle a knot 32
to streamline 75 theft 25 upmarket 347
streamlined 62 to think outside the box /2 uproar 23
strength /2 thoughtful 723 upscale 40
tostress sth 77 threat /4 upstream process 54
strip light 35 to threaten 23 urban 73
to strive for sth 7/7 thrilled 77 urbanization /07
to struggle 42 to thrive 62 urge 77
stroke,ata~ 73 thriving 122 usage pattern 297
structure 73 tier 85 utilities payments /0/
student union 75 ties 90 utility company 30
to stumble upon sth /207 timber 76 utmost 557
stylus 60 time of transit 487 utterly 77
subdivision 95 tinned foods 35 UVrays 57
to subdue sb 85 to tiptoe around sb 43
to submit 77 TiVo 697 Vv
subordinate 87 toll-free 32 to vacillate 46
subscriber 66 tonne 56 value 26; netvalue 95
subsidiary 50 topical /7 variety 8
to subsidize 19 to total 387; tototalsthup 37 vast 53
subsidy 45; subsidies 4/ tour operator 7/3 venerable 977
suburban 34 toxic 5/ venture //5
suicide 98 track, to keep ~ of sth 94 venue 88
superior 85 totrack 487 to verify 287
to supervise 95 tradable product 52 vernacular 73
supplier 9 trade 44; limitsontrade 46 vessel 47
supply anddemand 477 trade barrier /05; traderules 52: viability 777
supply chain 43 totrade 77; publicly traded 96 vibes 24
support 53; state support 7/9 trader 43 vibrant 73
to support /007 trading: trading account 78; trading vice-president 65
to surface 73 partner /05; insidertrading 95 view, in ~ of 8
surge 105 to trail behind sth /05 to violate 52
surgery 5/ training 9 violation 705
surplus /05 trajectory /7 virtually 77
survey 657 transaction 94 virulence 73
to surveysb /7 transcript
B= 6 visually impaired 60
to sustain 63 travel organizer & vivid 757
sustainability 62 treadmill 297 vocational training 105
sustainable 50 treasury stock 99 vocationally qualified 105
sustained 25 to treat sb to sth 27 to voice (concerns, etc.) 23
to swallow 57 tribal 7/27 volatile 557
to swarm with sth 477 trillion 387 volatility 77
sweatshop 45 troublesome 53 voluntary 66
swiftly 7077 totrump 62 voting right 77
swing 77 trust buster 52 voucher 26
+ truthful 703
tuition: tuition fees 74; Ww
tactile 59 tuition reimbursement /7 wage 40; realwage 45
tag 66 to turn a profit 7/2 to waive sth 76
to tailorsthfor sth & turning point /087 waiver ///

164
to wake upto sth 82
wannabe 42
warehouse 47
warehousing 367
to warm to sth 63
warrant 99
warranty 26
waste management /87
water purification 772
watershed 45; tocrossawatershed 45
weakness /4
wealth, a ~ of 82
wealthy 34
well-to-do 1077
whistle, to blow the ~ 95
whistle-blower 96
white collar employee/worker 4/; white-collar
to whiten 777
to whittle down 122
whole food 38
wholesale 43
widely 66
to be willing todo sth 77
window dressing /7
wisdom, conventional ~ 77
to withdraw (a product) 7/77
withdrawal 297
to witness sth 37
word-of-mouth 657
work: work ethic 557; work pace 23;
work placement == 7
workforce 23
working capital 778
working schedule /6
workplace /0
World Bank 53
World Trade Organization 52
wrath 73
wrinkle //7
wrongdoing ///7

nf
yield 76
to yield (successes) 62

Z
zealous 53
 Useful expressions
Cover letters p.12 Replying to an enquiry Showing empathy
| would like to apply for... Thank you for your interest. | assure you we will do our best to sort out ...
| will graduate with a Bachelor/Master ... from the I’m pleased to send you ... I’m sorry to hear that.
University of ... this summer. Please find the requested information attached. ’ll see what | can do for you.
| read about ... on the internet and was impressed | hope you find this satisfactory. Let’s take it from the beginning and see if we can
by (company’s name) profile and your projects work through this together.
in the field of ... Confirming
Endinga conversation
As a student of ..., |have gained a thorough I'd like to confirm ...
Is there anything else | can help you with?
understanding of ... and have already had the Looking forward to seeing/meeting ...
Thank you for calling.
chance to use my ... skills in an internship
with ... Giving good news Complaining politely p.30
My responsibilities there involved ... | am pleased to inform you ... I’m sorry to have to say this, but ...
One of my key strength is to ... You’ll be delighted to hear that ... I’m sorry to bother you, but ...
| would very much appreciate the opportunity to Maybe you forgot to ...
discuss my suitability for ... in greater detail in a Giving bad news | think you might have forgotten to ...
personal interview. I’m afraid that ... There may have been a misunderstanding about ...
We regret to inform you ... Don’t get me wrong, but | think you/we should ...
Describing yourself p.12 Unfortunately, ...
| consider myself to be ... Apologizing and moving negotiations
... would be one of my strengths. along p.30
Apologizing
I’m particularly good at ... That must have been very annoying.
| do apologize for the delay in replying. ++
| am used to working with ... | assure you this won’t happen again.
My sincere apologies ...
I’m very enthusiastic about ... How can we reach a compromise?
| regret ...
| am particularly interested in ... Let me explain our position.
| apologize for any inconvenience caused.
| am eager to learn about ... | hope you can see our point of view.
What do you suggest we do?
Suggesting p.19 Ending
I’m sure we can find a solution to ...
Why don’t we ...? | look forward to hearing from you.
| suggest ... Let me know if you need anything else. Talking about numbers and
What about ... Do not hesitate to get in touch with me if you figures p.40
Would it be possible ...? have any other questions. The graph/chart clearly shows ...
Would you consider ...? Thanks for your help. ... has one-third of the market share.
Are you suggesting that ...? ... the growth rate increased/decreased when...
It seems ... Close ... ranks last with an annual profit of only ...
What is your opinion? Sincerely yours B= There has been a radical price cut.
lf | understand you correctly ...? Sincerely It may be necessary to halve/double our costs
Let’s go back and review the situation. Kind/Best regards considering ...
Regards We increased/decreased our sales by X% last
Discussing p.19 Best wishes year,
From my experience, the best way ...
Annual sales are estimated at €X billion.
There are several options ... Customer service on the phone p.28
That would depend on... Starting a conversation Summarizing p.42
Considering this | would ... Good morning / afternoon / evening. This is To sum up, we've looked at ...
From my point of view ... (name). How can | help you? Basically we have two options. Either we ... or
| (strongly) believe that ... Thank you for calling (company name). This is We ...
Let me make sure | understand what you are (...). What can | do for you? Our sales performed satisfactorily because of ...
saying. Could you tell me, what you're calling about, This was due to ...
| believe we both agree that ... Sir/Madam? | think this was a result of ...
Taking all these points into account, | would ...
Formal Emails p.22 Checking information
Salutations Let me repeat ... Discussing p.57
To whom it may concern ++ Does that mean... n my opinion ...
Dear Sir or Madam If | understand you correctly ... t seems to me that ...
Dear Mr/Mrs/Ms Could you tell me exactly what happened? t might be the case that ...
Dear all *m convinced that ...
Placing someone on hold
Could | put you on hold for a moment while | ’m not sure | understand what you’re saying,
Opening sentence d like to make a point here if | could.
check on this issue?
I’m writing to... clarify ... Much as | would like to agree with you, ...
Would you like to hold for a moment or would you
... Confirm ... | partially agree, but ...
like for me to call you back?
... INform you ... | think you might be wrong there.
... follow up on ... Transferring a call I'm afraid | can’t agree with you there.
... let you know ... Let me put you in touch with (Department/Person).
... request ... (...) should be able to handle that for you.
... Update you ... "ll see if |can put you through to ...

++ very formal
Product presentations p.58 Negotiating p.80 Ending ameeting
It’s a pleasure to welcome you today. Informing and discussing We’ve decided that ...
Let me start by outlining the main features. What do you have in mind? Thank you for your hard work. | think we’ve come
(...) comes with ... The main reason for ... is ... up with a lot of good ideas.
The really clever features are ... | would need ... | look forward to meeting you again soon.
So what about its functionalities? | could offer you ...
Asking for information p.107
Additionally, as I’m demonstrating here ...
Proposing What are the advantages of investing in ...?
As we all know, ...
| suggest ... Can you give me an idea of ...?
At the same time ...
Would it be possible ...? What do you mean by ...?
Finally, I’d like to highlight one key function.
Would you consider ...? How do you think you can achieve this goal?
Product descriptions p.60 How do you feel about ...? What is your policy on ...?
... IS an innovative product that will help ... Could you fill me in on ...?
Disagreeing politely
... IS intuitive and easy to use.
| would prefer ... Presenting arguments p.107
The main features include ...
Could you explain that more fully, please. There are a number of reasons why ...
The product uses the latest ... technology.
I’m afraid | can’t agree to that. The first/second reason is ...
Our cutting-edge technology allows you to ...
How can we deal with this problem? What | want to show you is ...
It’s full compatibility with ... allows you to ...
One (obvious) advantage of... is ...
Its dimensions are ... Suggesting solutions
While this might seem to be a disadvantage, in
In terms of storage capacity/size/weight ... | could imagine ...
Tach.
How can we reach a compromise?
Presentations p.68 I’m certain (your company) will benefit from ...
Do you feel you can accept ...?
Opening Let me assure you we will do our best to ...
What do you think is a fair way to resolve ...
It’s a pleasure to welcome you today.
Describing economic growth p.108
First of all, let me say how nice it is to see you Reaching an agreement
On the increase
here at ... | believe we have made some good progress.
... increased sharply TT)
Let me start by introducing myself. I’m ... from ... (Just) to summarize ...
... rocketed to... TT
I’m here today to present ... | think we all agree here that ...
(Growth) surged to another ... TT
| think we should come to a decision within the
Outlining the focus of the presentation We could see a steady increase in...
next ...
Today |’d like to give you an overview of ... .. grew by ...%.
Let me give you an idea of what I’m going to be Meetings p.90 (Growth rate) recovered and reached a level of ...
talking about ... Starting a meeting ... reached a peak of ...
| would like to start by drawing your attention to ... I’m glad you could all make it today.
On the decrease
... and | hope you can see why we’re so ... has sent his/her apologies.
... decreased sharply VV
enthusiastic about ... Can we get started?
... plummeted to ... Vv
We’re meeting today to talk about ...
Structuring (Growth rate) has fallen dramatically to ... YY
We’ll be discussing ...
I’ve divided my presentation into three (main) ... hit another low ... /L
... Will present an analysis of ...
parts. ... declined gradually to ...
... IS going to give us an overview Of ...
First, we’ll look at ... | think this was a result of ...
Before we begin, let me introduce ...
Then Ill outline ... Status quo
I’ve asked you to come to discuss ...
Finally, I'll give a quick overview of ... The growth rate remained stable at ...
Discussing facts
Highlighting information ... Maintained this (high) rate
... increased/decreased last year.
As | mentioned earlier, ... (Growth) stayed at this level for ...
Here’s a quick overview of the situation.
According to the survey, Our ... (Growth) fluctuated around ...%.
Let’s first look at ...
Let me point out that ... Terminology for forms of business
Let’s now turn to ...
And most important: ... ownership p.119
I'll now move on to...
’d like to focus your attention on ...
This was due to ...
Summarizing
Before | move on, |’d like to recap the main
| think this was a result of ...

Taking part in discussions

Sole proprietorship
General partnership General partnership
points: ... Do you want to start us off? Corporation / Corp. Private limited
So, to put it in a nutshell: ... Would you like to comment on that? or Inc. company/ Ltd.
And finally, ... Sorry to interrupt but | feel that ... Corporation / Corp. Public limited
Let me briefly summarize, ... I'd like to make a point here if | could. or Inc. company / PLC
Thanking and inviting questions We’ll come back to you in a moment.
Thank you all very much for taking the time to ’m not sure | understand what you’re saying.
listen to the presentation. lf |understand you correctly, you think that ...
Thanks for your time. Perhaps we should ...
And now I'll be happy to answer any questions I’m convinced that ...
you may have. | would like to propose that ...
Now then, fire away with any questions you may
have.

167
Credits

Published by
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Copyright © Cornelsen Verlag GmbH, Berlin 2010

The right of Gerlinde Butzphal and Jane Maier-Fairclough to be identified as the authors of
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Production
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Audio: Switchpower Ltd, Oxford, Silver Street Studios, Reading
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Printed and bound in Lebanon by International Press: [email protected]

Career Express Business English B2 Acknowledgements
Illustrations on pages 8, 26, 68 and 94 reproduced with kind Diagrams 1-3 on page 54 taken from Takeda, H. (2006), The
permission of Thomas Maria Malangeri, from Tausendschwarz.de. Synchronized Production System: Going Beyond Just-In-Time
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‘Where work meets play’ text on page 17 reproduced from
the author Hitoshi Takeda. Copyright © Hitoshi Takeda 1990,
MarketWatch Inc., The Wall Street Journal, with kind permission of
2004, 2006.
Dow Jones & Company Inc. Copyright © 2007 MarketWatch, Inc.
“Birth of the cool’ text on page 56 reproduced with kind
Extract from The Blue-Eyed Salaryman on pages 24-25 by Niall
permission of The Economist. Copyright © The Economist
Murtagh, reproduced with kind permission of the publisher, Profile
Newspaper Limited 2008. All rights reserved.
Books. Copyright © Profile Books 2006.
‘HumanWare’ text and image on page 60 reproduced with kind
‘Victory for voices over keystrokes’ text on pages 32-33
permission of HumanWare. Copyright © HumanWare Group
reproduced with kind permission of The New York Times, August
2005-2012.
16, 2007 © 2007 The New York Times. All rights reserved. Used
by permission and protected by the Copyright Laws of the United ‘The benefits of downscaling’ text on pages 62-63, reproduced
States. The printing, copying, redistribution, or retransmission of with kind permission of Bloomberg Businessweek. Copyright ©
this content without express written permission is prohibited. Bloomberg L.P. 2013.
‘The Germans are coming’ text on page 35 reproduced with kind Photograph of the Microsoft team on page 70 reproduced with
permission of The Economist. Copyright © The Economist kind permission of Microsoft. Copyright © Microsoft 2012.
Newspaper Limited 2008.
‘The city that said no to advertising’ text on pages 72-73,
Charts 1-3 on page 38 based on information from www.stores.org. reproduced with kind permission of Creative Review magazine.
Copyright © 2012. Photographs accompanying article,
“Big Retailers Still Struggle in India’ text on pages 42-43
reproduced with kind permission of photographer Tony De Marco.
reproduced with kind permission of Bloomberg Businessweek.
Copyright © Bloomberg L.P. 2013. Image of construction workers at the bottom of page 81
reproduced with kind permission of Picture Alliance. Copyright ©
‘Trouble with Trade’ text on pages 45-46, reproduced with kind
dpa Picture-Alliance GmbH. All rights reserved.
permission of The New York Times, December 28, 2007 © 2007
The New York Times. All rights reserved. Used by permission and ‘Islamic finance makes a move into the mainstream’ text on
protected by the Copyright Laws of the United States. The page 82 by Kate Hughes, reproduced with kind permission of
printing, copying, redistribution, or retransmission of this Content The Independent. Copyright © 2008 The Independent,
without express written permission is prohibited. independent.co.uk.

‘Main Street Should Embrace Globalization’ text on pages 52-53 ‘The Starfish and the Spider’ audio (track 10) from exercise 2 on
from Griswold, D. T. (2009). Mad About Trade: Why Main Street page 85 reproduced with kind permission of Gildan Media LLC.
America Should Embrace Globalization. Cato Institute. Reproduced
Cartoons A-E on page 95 reproduced with kind permission of the
with kind permission of Cato Institute. Copyright © 2009 by Cato
artist Ed McLachlan. Copyright © Ed McLachlan 2005-2012.
Institute. Accompanying photo of Daniel Griswold, reproduced
with kind permission of photographer Matt Barrick. ‘Products for those at the bottom of the pyramid’ text on pages
112-113, this article is republished courtesy of INSEAD Knowledge
‘Globalization versus Community’ text and photograph of Helena
(http: //knowledge.insead.edu). Copyright © INSEAD 2008.
Norberg-Hodge on page 53 reproduced with kind permission of
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Helena Norberg-Hodge is the founder and director of the with kind permission of BPlans.com. Copyright © BPlans.com.
International Society for Ecology and Culture (ISEC). A pioneer of
‘Campus dragons: The entrepreneurial spirit is soaring across
the ‘new economy’ movement, she is the author of Ancient
universities in the UK’ text on pages 122-123, reproduced with
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The University of Warwick (www.warwick.ac.uk).
Career Express Business English B2 Audio CDs

Audio CD 1 Audio CD 2

Copyright 00:44 Production and its management, 0733

Exercise 2
Finding an internship, Exercise 4 08:50
Presenting a product, Exercise 2 03:48
Finding an internship, Exercise 5, 01:57
Marc Passing the buck, Exercise 1 02:41

Finding an internship, Exercise 5, 01:34 Reaching your audience, Exercise 2 01:37

Jennifer Reaching your audience, Exercise 3 02:24
Finding an internship, Exercise 5, 01:21 Reaching your audience, Exercise 4 01:19
Marion
Preparing slides, Exercise 2 03:59
Finding an internship, Exercise 6, 03:28 04:35
The debt trap, Exercise 4
Brian and Simon
Oo
OA
DON
SO
DY
FW Achieving a good deal, Exercise 2 04:05
Talking about professional life, 05:22
Exercise 3
Spider and starfish organizations, 04:47
Exercise 2 :
Talking about professional life, 02:42
Exercise 4 Acting as the chair, Exercise 3 01:27

LEARNing to listen, Exercise 1 05:05 Acting as the chair, Exercise 4 02:16

Evaluating telephone performance, 03:08 Acting as the chair, Exercise 5 01:15

Exercise 1, Conversation 1 The world after Enron, Exercise 1 04:47
Evaluating telephone performance, 01:48 Using the right terms, Exercise 2 03:38
Exercise 1, Conversation 2 Breaking the bad news, Exercise 1, 01:39
Evaluating telephone performance, 03:11 Conversation 1
Exercise 1, Conversation 3 Breaking the bad news, Exercise 2, 01:58
Warm-up 02:36 Conversation 2
The lowest prices around, Exercise 1 Oee2ZZ Tectonic shifts in the global economy, 05:58
The lowest prices around, Exercise 2 03:18 Exercise 2

Understanding bar and pie charts, 03:35 Economic growth, Exercise 1 02:48
Exercise 2 Setting up a business, Exercise 3 01:57
The container revolution, Exercise 2 04:47 Describing a company’s legal 04:07
Business to business (B2B), Exercise 1 02:24 structure, Exercise 3

Saying the right thing, Exercise 3 02:12 Total running time CD 2 64:28
Saying the right thing, Exercise 4 01:13
Saying the right thing, Exercise 5 00:35
Total running time CD 1 61:31

Audio CDs

Recording: Switchpower Ltd., Oxford; Silver Street Studios,

Reading
Sound engineer: Julian Elkan
Producer: Julian Elkan

Voices: Genevieve Adam, Helen Anderson, Jilly Bond,

Tom Clarke-Hill, Antony Gabriel, Alexandra B.
Harris, Sanj Hayre, Jay Sutherland, Marcus
Taylor, Sandi Turner
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 Career Express Business English B2 Online

Register for Self Study at www.garneteducation.com/self-study /career-express

Enrolment key: M9THMf3TGN$
Go to the URL above. Complete the registration form and create an account.

Then select Career Express B2 and enter the enrolment key.

Self Study Online

Your online Self Study helps you get more out of your Business English course - wherever you are, whenever it suits you. It includes:

Workbook: interactive exercises on vocabulary, grammar and reading, which build on the content for each Course Book unit

e Tests: self-assessment exercises for each unit

Videos: four tailor-made episodes with interactive exercises, focusing on relevant business skills

e Listenings: all Course Book audio recordings in MP3 format

Templates: useful documents to help you complete business tasks, such as writing a resumé

172
 Career Express
Business English B2
Career Express Business English B2 is the first part of a two-level multimedia course, for students
on a Business English language course at university level.

It offers a wealth of material and enables you to learn the communication skills you need to be
successful in the globalized world of business.

Reading
The texts focus on the most interesting topics from the world of business. They provide the
springboard for a discussion of contemporary business issues.

Listening
Realistic conversations, presentations and lectures expose you to a variety of native and non-
native speaker accents and help you to develop core listening comprehension skills.

Business Skills

This section introduces you to the skills most needed in business, such as taking part in meetings,
using diplomacy at work, describing charts and presenting products.

Discussion and Role-Play

These features give you the opportunity to pick up on issues raised in the reading and listening
sections, and to practise functional language.

Company Case
These task-based case studies have been inspired by real business scenarios. They require you to
work in teams, find strategic solutions to real-life problems and present them to the class.

Audio CDs
Complete recordings for all the listening activities in the Course Book.

Career Express Self Study Online

This website offers an abundance of additional material:

- Electronic Workbook with interactive practice exercises to consolidate vocabulary, grammar,

reading and skills
- Self-assessment tests for each unit
- Tailor-made videos with interactive exercises
- The complete Course Book listening material as MP3 downloads

See inside for registration details.

Components:
Course Book & Audio CDs ISBN: 978 1 90757 569 3

Teacher’s Book ISBN: 978 1 90757 570 9

Suitable for:
ISBN 978-1-90757-5
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