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UNIT 1: COMPANY STRUCTURE
I. READING COMPREHENSION TASKS 1. The only adequate summary is the second. The first stress the disadvantages of hierarchies much more strongly than the text, and disregards the criticisms of matrix management and decentralization. The third is simply misleading: matrix management and teams are designed to facilitate communication among functional departments rather than autonomous divisions. 2. Discussion 1, 4 and 11 would logically satisfy production managers, although 11 should also satisfy other departments. 1, 3, 6, 7, and 9 would logically be the demands of marketing managers. 5, 8, 10, and 12 would logically keep finance managers happy II. EXERCISES Exercise 1 1. f 2. e 3. h 4. d 5. a 6. g 7. b 8. c 9. i 10. j
Exercise 2 1. human resources 4. research and development 7. administration 10. legal 13. marketing 16. procurement Exercise 3 2. customer service 5. public relations 8. billing 11. shipping 14. accounts 3. quality control 6. project management 9. production 12. finance 15. purchasing
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Market research/ cost centre/ earnings growth/ management hierarchy/ customer needs/ product portfolio/ core business/ distribution channel/ mission statement/ market share/ shareholder value/ brand loyalty Exercise 4 1. market research 2. core business 3. shareholder value 4. product portfolio 5. brand loyalty Exercise 5 1. check 6. ensure Exercise 6 The second statement is true III.ESSAY What are the advantages and disadvantages of the matrix company structure? The matrix organizational structure is atypical because it brings together employees and managers from different departments to work toward accomplishing a goal. The matrix structure is a combination of the functional and divisional structures. The former divides departments within a company by the functions performed, while the latter divides them by products, customers or geographical location. Small business owners should understand the benefits and limitations of the matrix structure before implementing it in their businesses. One of the advantages of implementing the matrix organizational structure in a business is that it can lead to an efficient exchange of information. Departments work closely together and communicate with each other frequently to solve issues. Efficient lines of communication enhance productivity and allow for quick decision-making. For example, in a matrix structure, 2. coordinate 7. adapt 3. assign 8. monitor 4. implement 9. evaluate 5. control 10. determine 6. cost centre 7. earnings growth 8. management hierarchy 9. mission statement 10. distribution channel
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individuals from the marketing, finance and product departments may confer with one another to formulate strategies. The specialized information exchange allows managers to respond quickly to the needs of customers and the organization. Furthermore, the matrix structure encourages a democratic leadership style. This style incorporates the input of team members before managers make decisions. The ability to contribute valuable information before decisions are made leads to employee satisfaction and increased motivation. In a matrix structure, each employee brings his expertise to the table. Managers are involved in the day-to-day operations, which allow them to make decisions through the viewpoint of employees. On the other hand, a disadvantage of the matrix structure is that it can result in internal complexity. Some employees may become confused as to who their direct supervisor is. For example, an employee may receive different directions concerning the same thing from supervisors in different departments. The dual authority and communication problems may cause division among employees and managers. Miscommunication and ineffective managing can result in employee dissatisfaction and low morale. Prolonged issues may cause an organization to experience high employee turnover. Another disadvantage of the matrix organizational structure is that it is expensive to maintain. A company's overhead cost typically increases because of the need for double management. The extra salaries an organization must pay can put a strain on its resources. The sharing of employees may cause unhealthy competition between managers within a company. The expertise that employees bring to the table makes them valuable, which causes managers to seek their assistance. The competition for scare resources may cause hostility within the workplace and hinder production. To sum up, each company structure reveals its own pros and cons and the matrix ones makes no exception. The important thing is that businessmen should thoroughly understand these advantages and also disadvantages for efficient utilization in reality.
money or something else given in recognition of good work : pay for performance 7. the use of reason rather than emotions or beliefs : rationality 2. additional money given for better work or increased productivity: bonus 8. The Italian salesman did not want to earn more (i. or earn as much as his boss. The Singaporean and Indonesian managers did not approve of a system that might cause salesmen to encourage customers to buy products they didn’t need. having a higher rank because he is older: policy of promotion by seniority 5. Japanese companies have a policy of promotion by seniority. understanding or knowing without consciously using reason: intuition 3. prestige or important given to someone: status 4. and distrust particularlists because they break rules to help their friends. to have hurt feelings because someone is derespectful : offended 6. beliefs and principles in each country or market. ‘Glocalization’ means operating all over the world while taking account of local cultural habits. respect. 2.esteem : humiliation .e. 2. Answer the questions 1. 3. Vocabulary 1. show himself to be a better salesman) than his colleagues. and distrust universalists because they won’t even help a friend. 4.4Nguyễn Quỳnh Trang . feeling of shame and loss of dignity or self. while particularlists believe that personal relationships should take precedence. so a 50-year-old manager should automatically be granted much more status and respect than a 30-year-old one. READING COMPREHENSION TASKS 1.1001011033 UNIT 2: MANAGEMENT AND CULTURAL DIVERSITY 1. Universalists believe that rules are extremely important.
to 11. I have two Swiss people staying at my house. 8. 2. 3. of 12. for . we were obviously unfair to those we omitted while we were probably generous to some we selected. to 8. at 3. he decided to have a serious talk with them. 7. for 6. the origins of which are obscure. of. In trying to pick nationalities for each post. for 5.5Nguyễn Quỳnh Trang . of. Since we have just bought the Parkland guide.1001011033 9. we can now find out what Europeans think of each other. Besides having faults. such as an excellent sense of humor. the British have qualities. in. with/about/by . for which they are famous throughout the world. 4. for. While working for a multinational company in Holland. Although some Europeans consider the Italians to be dishonest. I learned to admire the Dutch for their good nature and tolerance. or excessively serious. in 7. 5. 6. Furious with his employees for turning up late each morning. of 2. to 9. I found them completely trustworthy when I recently visited Italy. In generalizing about nationalities we often show prejudices. about 4. according to acceptance moral standards: ethic II. against/ towards 10. EXERCISES Exercise 1 1. to give up a job or a position: resign 10. Exercise 2 1. neither of whom I consider to be moneyminded.
The second problem easily noticed in a culture diversity workplace is communication.6Nguyễn Quỳnh Trang . Everybody can see that when you are working with people from different countries. When communicating in a culturally diverse environment. Hence. the diverse ways people in a company approach decisional problems could result in severe troubles threatening the function of an organization. People from different countries tend to work in various different ways. . the sense of personal space is very different and standing close or touching when speaking is the norm. For some cultures. cultural diversities seem to reveal certain advantages. it is also considered to bring about no fewer challenges for multinational company management. a good manager is supposed to know how to create the integration among his or her staff by respecting their value systems and their approaches as well as consider all the ways of thinking provided for an appropriate final decision. However. Eye contact can also convey a great deal. The first one I would mention here is individual decision-making and problem solving. In fact. even when all the staff are speaking a one certain language. idioms… Nonverbal behaviors also form an important part of communication. work experiences and culture-based value systems. be aware of these differences and do not jump to conclusions if someone reacts in an unexpected way. and for some cultures. However. This is regarded partly due to their different educational backgrounds. language style or the use of slang. pronunciation. Such great differences could be a strength for a multinational company because of a variety of valuable resource inputs to quality decision-making. In this essay. while the others may prefer participative approach to solve a decisional problem. troubles are still arising. Some may believe in rational decision-making. too much eye contact is considered rude or aggressive.1001011033 III. collecting all possible information and resource inputs. they are subject to a lot of unpredictable misunderstandings within a workplace when everybody shows great resistance to change and only want to work in their own way. However. Facial expressions such as smiling or furrowing the eyebrows may be used differently depending on the culture. only based on their own experience and feeling. both the language and nonverbal behaviors as well. I would like to emphasize three disadvantages that attract great concern from people working in a culturally diverse environment. while others feel like taking a decision with a quick-fix approach. Some of the members may like to take decisions on their own. it is necessary to pick up a common language for mutual understanding. It is because of the difference in vocabulary. ESSAY What are disadvantages of working in a culturally diverse environment? As you all know.
. you can easily overcome and gain the best efficiency in your job. working in a culturally diverse environment presents lots of challenges that deserve your consideration. with certain understanding on these difficulties.7Nguyễn Quỳnh Trang .1001011033 In a nutshell. However.
to launch a product: i 3. market opportunities: g 4. product concept: b 9. sale representative: g . 2. product feature: c 10.1001011033 UNIT 3: MARKETING I. READING COMPREHENSION TASKS 1. market research: h 5. distribution: a 2. market segmentation: d Exercise 2 Products Optional features After-sale service Packaging Sizes Brand name Price Credit terms Going-rate List price Prestige pricing Cash discount Place Inventory Point of sale Transportation Vending machine Warehousing Promotion Advertising Poster Publicity Public relations Mailings 6. EXERCISES Exercise 1 1. the way it is promoted and its price. They both neglect the continued importance of selling. The 1st summary wrongly states that marketers have to change a product.C II. packaging: j 7. In fact they may change one or more of these elements as neccesary. and the existence of competitors. its distribution. The 3rd summary is the most accurate and complete The 2nd summary fails to mention market research and both 1st and 2nd contain errors. points of sale: e 8.8Nguyễn Quỳnh Trang .
for public transport between rush hours.9Nguyễn Quỳnh Trang . reaches saturation Counter marketing: m Maintenace marketing: n Developmental marketing: o Demarketing: p . early adopters 3. maintenance arketing: eg in the face of competition or changing tastes 7. for some roads and bridges during rush hours 8. developmental marketing: eg. stimulational marketing: which often happens with new products and services 3. making a loss 2. synchromarketing: eg. or hiring disable people 2. demarketing: eg.efficient car 4. differentiate products 6. or for skill resorts in the summer 6. advertising budgets 5. remarketing: eg. or extremist political parties Exercise 4 Synchromarketing: i Stimulational marketing: j Remarketing: k Conversional marketing: l Exercise 5 1. or aging film stars. inner city areas. similar offerings 4. handguns. conversional marketing: eg for dental work . counter marketing: eg: cigarettes.1001011033 Characteristics Quality Guarantee Style Line-filling Production costs Quantity discounts Market skimming Market penetration Distribution channel Retailing Wholesaling Franchising Sponsorship Personal selling Media plan Commercials Exercise 3 1. drugs. for churches. 5. a non-polluting anf fuel.
When a company reaches the high expectations of the public. As your reputation grows. which are created or supported by marketing efforts.10Nguyễn Quỳnh Trang . Without competition. well known companies would continue to sell while lesser known companies or new companies would stand little chance of . Marketing builds brand name recognition or product recall with a company. Using marketing to promote your product. sales may crash and companies may have to close. you have to use marketing strategies to create product or service awareness. effective communication--externally and externally--and quality products or services. The success of a company often rests on a solid reputation. withdrawn from the market III. Most aspects of your business depend on successful marketing. Marketing efforts get the word out on pricing of products and services. Marketing also fosters an environment in the marketplace for healthy completion. the business expands and sales increase.ESSAY The importance of marketing The heart of your business success lies in its marketing. Without marketing. As opposed to companies that have a monopoly on products and services that can charge almost any price. marketing helps keep pricing competitive for a business to try to win over consumers before its competition does. Without marketing. consumer tastes 8.1001011033 7. your business may offer the best products or services in your industry. service and company provides your business with a chance of being discovered by prospective customers. which not only reaches the intended consumers. its reputation stands on firmer ground. Unless your business is known in the community and have communication with your customers readily available. the product or service it provides must be known to potential buyers. but also reaches other companies competing for the consumers’ business. The reputation of your company is built through active participation in community programs. your potential customers may never be aware of your business offerings and your business may not be given the opportunity to progress and succeed. but none of your potential customers would know about it. Without marketing. My writing will figure out the question: Why is marketing so important? For a business to succeed.
the company might just be wasting on expenses and time on a failed marketing approach.1001011033 ever becoming successful. if it is not conducted and researched well. and develops company reputation.11Nguyễn Quỳnh Trang . Marketing plays a very essential role in the success of a company. Although marketing is important. Marketing facilitates the healthy competition that allows small businesses and new businesses to be successful enter and grow in the marketplace. It educates people on the latest market trends. helps boost a company’s sales and profit. But marketers must be creative and wise enough to promote their products with the proper marketing tactics. .
Pricing is often strongly influenced by psychological factors. The 1st is incomplete. The 3rd sentence of the third para is totally false. a product’s price should equal its marginal cost and the V company’s breakeven point. companies have to think of potential as well as V existing competitors. Complete the following word partnerships from the text: 1. 2. 9. Production capacity 3. a company nearly always increases its V price. 7. When demand exceeds supply. A company faced with rising costs has to increase its prices. There are three basic factors potentially involved in all pricing decisions True V False 2. You are unlikely to sell high quality products at a low price. A company can only change a price if it is “inelastic”. In theory.1001011033 UNIT 4: PRICING I. V V V 8. Prices generally take into account both direct and indirect costs. 6. When pricing a product. V 10. . Breakeven Point 2. V 4. Distribution costs. Understanding details Statements 1. 3. 3. A company can respond to competitors’ price cuts by changing different V elements of the marketing mix. READING COMPREHENSION TASKS 1.12Nguyễn Quỳnh Trang . Understanding main points Second summary: most accurate and complete. and the 2nd and 3rd sentences are misleading. 5.
13 . 11 .13Nguyễn Quỳnh Trang . 15. ………Price elasticity …………………. …………… cost price …………………. 8. Market share 7. 10 . 3. price index 24. price sensitivity price war price …………… ………………… strike price wholesale ………price list/ list price ……………… …………… ………… price maintenance . 19.. 23. 5.. …………… Price fixing ………………… …………… Price freeze ……………… …………… going price ……………….. Variable Costs. Exercise 2 …price control ……………………. 6.. …………… price reduction ………….. Profit/ Sales targets 5.. 2. EXERCISES Exercise 1 1. Market positioning 6... ………Price discrimination ……………. 17. Prime Cost 9... 18. 20. …………… ………… …………… market price price mechanism minimum price ………… …………… price range …………… …………… recommended price ……….. …………… ………………. 25. …………… historical price ………….. 14. 22. Cost Accountant 10. 7.. 26..1001011033 4.. 9.. …exercise price ……………………. …………… …………… …………… ………………. 12 . 4. Odd Pricing 8. ……Price cut/ Cut-price ……… 16. II. 21. …………… …………………… …………… ………. …………… retail price ………………… …………… price rise …………………… …………… selling price ……………....
loss-leader pricing = B 5. market skimming = H 3. current –revenue pricing = A 4. The price at which a producer makes no profit? Cost price 7. shares 10. volume What are the disadvantages of an everyday low pricing strategy? . market penetration pricing = G 2. substitute 3. ESSAY 8. going-rate pricing = C 7. A price at which retailers buy goods? Wholesale price 4. The relationship between a product’s price and the quantity bought? Price elasticity 8. A price-limit imposed by government? Price control + Price freeze 9.1001011033 1. market 9. segment III. demand. target 5. perceived-value pricing = E Exercise 3 1. The government’s measure of inflation? Price index 6.market 7. components 4.deferential pricing ( or price discrimination) = F 8. A price recorded in a company’s accounts? Historical price 5. A basic price before discounts and special offers are made? List price 2.overheads 2. The price of options? Exercise/ Strike price Exercise 4 1. Aggressive competition between rival? Price war 3. plant 11. sensitivity 6. mark-up or cost-plus pricing = D 6.14Nguyễn Quỳnh Trang .competitive 13. market leaders 14. Arrangements between competitors not to lower prices? Price fixing/ maintenance 10. monopolist 12.
according to Karl Heil. Because your company strives to provide the lowest prices at all times. in the years prior to the prevalent use of the Internet in e-commerce. it may cause customers to question whether or not you actually have the lowest price. according to website NetMBA. To sum up. Having the lowest price can be advantageous to your marketing effort. The Internet now offers consumers the ability to check your pricing against hundreds or thousands of online retailers. Firstly. Some consumers might assume that counterfeit or reconditioned products are the means by which you maintain your low prices.15Nguyễn Quỳnh Trang . you may be forced to sell product at a loss to remain competitive. In some cases. you may not have sufficient profit margin to offer occasional promotional discounts. .1001011033 Product pricing is an important element of a marketing strategy. The concept of “everyday low pricing” means that your company consistently tries to be the provider with the lowest price in the marketplace for a good or service. being the everyday low-price leader meant being the price leader in your geographic region. Pricing discounts are marketing vehicles that can be used to improve sales. it is noted that businessmen should clearly understand the pros and cons of this pricing method in order to gain more and more success. Always being the lowest-priced supplier sometimes creates the perception that your product quality is lower than that of the competition. Finally. the strategy of everyday low pricing sometimes seems to be counterproductive. When you have conditioned customers to expect everyday low prices from your company. based on surveys of competitors’ pricing. offering price discounts can seem contradictory. Consequently. competition-based pricing is a model that relies on the pricing habits of your competition. writing on the Reference for Business website. but the strategy also has several disadvantages. the promise of everyday low pricing can work against you when it comes to discounts and pricing specials. your profit margin or product demand. Your company stands to lose credibility among consumers if your everyday low prices are not comparable to pricing found on the Internet Secondly. It does not take into account product cost.
EXERCISES Exercise 1 1. Stockholm. local bias: unfair treatment 6. Geneva. 2.T 6. Stockholm 7. home-team advantage: benifit from being local or on home ground 5. confidentialityand reliability of the arbitrators and their decisions.spinner: something that makes profit for everyone 3.T 4. 3.F 2. speed things up: accerlerate 9. litigation takes place in court. interfere: meddle or get involved with 10.T 8. Paris. commodities and construction. There may be bias or unfair advantages in home country of business partner. have recourse to the courts: make use of legal system 4. READING COMPREHENSION TASKS 1. Accoutants and engineers 10. Arbitration takes place in private. selected by both parties 4. the chairman. 5.T 7. Hong Kong and Singapore. No 2. dispute resolution: settling disagreement 2. Arbitrators. cost effectiveness. Shipping. take steps: institute action . Speed. a money.16Nguyễn Quỳnh Trang .T 3. New York. london.T 5. Understanding details 1. financial crisis: serious money problems 7.1001011033 UNIT5: ARBITRATION I. Activities and rules 8. Understanding main points 1. 9. overturn decisions: reverse something already decided 11.F II. delaying tactics: ways of making things take a long time 8. 6. one chosen by each each party and the third.
the bank agree that the borrower should pay 12% on the loan. there is always an answer if you try hard to find it : every difficulty has a resolution 9. so the lender made a fair profit! 5. in the civil case.we disagee on the interpretation 8. 6. strongly protest about condition at work.17Nguyễn Quỳnh Trang . the beer can be produced under license but the licensee must fufill all the requirements imposed by the licensor. 4. which is public and costly. 8. some clothes comanies sell their products on a franchise basis: each country has a main frienchiser. this was due to the delaying tactics employed by one of the companies involved. he was a distinguished lawyer who was an expert arbitratorB 2. the question is how are we going to settle this dilemma? 5. with numerous people working as franchisees. I believe you are wrong on that point. The letter read: ‘ we. when the goods arrived in poor condition. a letter was sent to the manager complaining about working condditions. the plaintiff brought an action against the defendent 3. you cannot assume he will agree to those terms : you must check with him first. 2. the price was negotiated between the buyer and the seller of the house. a dispute arose over whose fault this was. and who should bear the cost 6. Exercise 3 1. 7. 4. manufacturers sell their goods to wholesalers and in turn. everyone promises to obey the treaty. in a private sale.1001011033 12.all major countries are signatories to it. but to arbitrate and agreement 7. the best way is not to go to court.’ . the process took far longer than the parties had expected arbitration 3. retailers buy from them. All the member wrote their names. undersigned. come into force: become oerational Exercise 2 1. the ralationship between a lawyer and client is bound by confidentiality. 9.
Fifth. the cost of bringing them to trial or going out-of-state to take their depositions may be prohibitive for trial. there are very limited opportunities for either side to appeal. ESSAY As a businessman what would you choose: arbitration or litigation for dispute resolution? Why? Arbitration is a procedure for the resolution of disputes on a private basis through the appointment of an arbitrator. an independent. so that documents can be submitted in lieu of having a witness come to trial and testify. Partly that is because the fee paid the arbitrator is a lot less than the expense of paying expert witnesses to come and testify at trial. ajudication 2. If they all agree to work together. Fourth. many projects require the cooperation of various partners. as a date for the arbitration can usually be obtained a lot faster than a court date. arbitration is essentially a private procedure.maker/ expert 7. hearing II. Partly this is due to the fact that the rules of evidence are often more relaxed than in a trial. so that if the parties desire privacy then the dispute and the resolution can be kept confidential. arbitration seems to be proving their popularity all over the world. the parties to the dispute usually agree on the arbitrator. First. Recently. so the arbitration will be 6. arbitration 4. arbitrator 3. Exercise 4 1. Therefore. duration . arbitration is usually a lot less expensive.18Nguyễn Quỳnh Trang . unlike a trial. expensive 8. but in arbitration you can usually use just their records and reports. I would like to choose arbitration due to its numerous advantages. so the arbitrator will be someone that both sides have confidence will be impartial and fair.decision. For instance. Third. as a businessman. neutral third person who hears and considers the merits of the dispute and then renders the final decision. if a claimant has several doctors who are out-of-state. a trial date is normally about twelve months from the date the lawsuit is filed. they become parties to the agreement. if arbitration is binding. Second. In Virginia. the dispute will normally be resolved much sooner.1001011033 10. There are also lower costs in preparing for the arbitration than there are in for preparing for a trial. dispute 5.
.19Nguyễn Quỳnh Trang . arbitration has proved to be the wise choice for businessmen for the resolution of economic disputes. In a nutshell. That gives finality to the arbitration award that is not often present with a trial decision.1001011033 the end of the dispute.
9. 10. 8.nations 2.climate 9. 12. Exercise 1 1.debt 8.commodities 3. weather condition.factor of production 8.20Nguyễn Quỳnh Trang .economies of scale 11. 5. countries. 2.tariffs 12. restrictions on the quantity of import. dumping 4. 6.scale production. savings in unit costs arising from large. EXERCISES . 3. difference between total earings from all exports and total expenditure on all imports. autarky 3. direct exchange of goods without the use of money: barter or counter-trade 6.division of labour 10. raw meterials and goods. taxes charged on imports. 4. the fovouring of domestic industries.protectionism 7. taxes 7. surplus deficit dumping protectionism tariffs quotas merchandise trade (US) invisible imports and exports barter or counter-trade balance of trade balance of payment autarky II. 11. specialization of work into different jobs. inputs.balance of payments. barrier 2. 5. VOCABULARY 1. difference between total earings from visible exports and total expenditure on visible imports: balance of trade 4.liberalize visible trade (GB) or 7.quotas Exercise 2 1. merchadise 6.1001011033 UNIT 6: INTERNATIONAL TRADE I.
international trade has brought great benefits to an economy involved. NG 3. First. resulting in lower average costs and increased productivity.1001011033 5. T 2.T 5. ultimately leading to increased production.21Nguyễn Quỳnh Trang . the similar cost involved in transporting a product from abroad or from a local suppliers: H 4. the weakening relationship between the value goods and the cost of their delivery: D Decide if these statements are true (T) of false (F) or not given (NG) 1. International trade among different countries is not a new a concept and its rise is essential for the growth of globalization. international trade enables countries to specialize in the production of those commodities in which they have a comparative advantage. a suggestion for improving trade in the future: G 2. trade 2. Brazilian coffee and a bottle of South African wine. 4. With specialization countries are able to take advantage of efficiencies generated from economies of scale and increased output. you are experiencing the effects of international trade. comparative advantage Exercise 3 1. fares Exercise 4 1. the effects of the introduction electronic delivery: F 3.ESSAY How does international trade benefit an economy If you walk into a supermarket and are able to buy South American bananas. Apparently. container ships 4.F . NG III. International trade increases the size of a firm’s market. software 3.
wasteful duplication of resources is prevented. it becomes possible to increase income and the standard of living of its people. This will help countries bring down their unemployment rates. To sum up. it ensures more production to meet the demand of the people of different countries.If a country does not takes up imports and exports then its resources remain unexplorted. More employment could be generated as the market for the countries’ goods widens through trade. international trade helps in the optimum use of natural resources and avoid wastages of resources. Thus it helps to eliminate the wastage of resources. international trading has become very important for every country of the world .1001011033 Second. Each country should take advantage of it to become more wealthy and developed.be it big or small. It helps save the environment from harmful gases being leaked into the atmosphere and also provides countries with a better marketing power. When countries produce through comparative advantage. It also increase the standard of living by increasing more employment opportunities. . Efficient allocation and better utilization of resources since countries tend to produce goods in which they have a comparative advantage. By increased production. International trade helps generate more employment through the establishment of newer industries to cater to the demands of various countries. And third.22Nguyễn Quỳnh Trang . developing nation or developed nation.
charge b. investment banks 6. takeover h.stock broking j. universial banks 4. Find the words or expressions in the text a. overdraft 14. accounts 5. liquidity 19. solvency o.1001011033 UNIT7: BANKING I. current account 9. deposit 2. deregulation l. supranational banks Exercise 2 1. exchange currencies d. withdraw 10. commercial bank 3. loan 13. pay interest f. depositors 17. merchant banks 5. standing order 12. underwrite 2. offer advice g. collateral II. optimize 18. READING COMPREHENSION TASKS 1. EXERCISES Exercise 1 1.merger i. cheque 11. do business c. transfer 8. wages 6. maturity f. liquidity e. salary 7. conglomerates e. customers’ 3. portfolio management k. debt 15. lend 4. spread 16. interest d. liabilities 20. raise fund m.blue chip n. make profits g. Matching a. foreign exchange c. deposit b. central bank 2. return . building society 7.23Nguyễn Quỳnh Trang .
Over a long period of developing.A 5.E 8. what draws most of my attention about banks’ role is a place for money storage.among/ of 7. people no longer have to look for a specially secret and safe for storing their unused money.in 6.B 4.C 1. Numerous banks functioning in the country are ideal solutions for people who are wondering how to store and invest their savings.H 5.K 4.I 3.E Exercise 4 1. many people seem to earn more than they need for normal spending.A 2.F 11. against .A 6. there has emerged a demand for saving and also for investing. In the advent of the banking system. Firstly.B 9. our human society has witnessed a number of striking innovations and the banking system has proved to be one of man’s great achievements. In the essay. J 2.24Nguyễn Quỳnh Trang .1001011033 Exercise 3 1.G 3. within 4. 5. sometimes known as gold treasures as in some legendary stories. In fact. I would like to focus on some typical advantages that banks have specially facilitated our business life. human nowadays are capable of making more and more money. Thanks to various inventions.D 7. Consequently. from/ to 2.C 7.D 8. to/to III. ESSAY How banks facilitate the work of modern society Banks have these days functioned as an internal part of our modern life.F 6.G 10. by/for 3.
. Clearly. In some cases. our banks are presently making our life much more comfortable and easier. There is no doubt that the advent of the international banking system has helped a lot in the over.1001011033 Being thoroughly organized and tightly secured. In a nutshell. it is undeniable about a variety of benefits that banks have brought to our modern society. commercial banks not only can be a storage but also help people make more profit on their unused money through many banking activities. So imagine without the modern and well-operating banking system you have to go for thousands of miles in order to pay the money for any goods you want. In a world of globalization as ours. Secondly. the cost of transportation may even outweigh the actual price of the products. the existence of banks can save a lot of unnecessary costs for international business. Undoubtedly. all you have to do is making a call for ordering and then paying through your account in the commercial bank. even serving as a money storage or a tool of payment. international trade seems to be a definition of great popularity over every corner of the society. For a product of thousands miles away. government should take more consideration into the improvement of our national banking system for the purpose of long run developing.border business. Consequently.25Nguyễn Quỳnh Trang . banks can be considered to be a beneficial tool of payment.the.
advance payment: f 4.T 8. f 4. Information search 1. Open account: 1.c. T 3. open account: f. bill of exchange:g 5. F Bills for collection: Advance payment: 6. documentary cllection:j 4.T 7. advance payment 2. d.j 3. bills for collection: b. T 2.d. invoice: b 2. document of title: e 7. Key terms 1. READING 1 1. F 5.T 9.1001011033 UNIT 8: FINANCING FOREIGN TRADE I. documentary credit 4. T Documentary credit: 4.F 3. open account 2.F 10. bill of lading: a 6. Understand details Mark these statements T or F according to the information in the text.26Nguyễn Quỳnh Trang . bills for collection 3. clean collection:f 3. documentary credit: a.c 2. issuing bank: c . Understand main points: Payment menthod: 1. Find the part of the text that gives the correct information.
undertaking 2. Exported goods can be rejected by an importer on the basis of poor quality. Word search 1. comfirming bank: d 5. and it is important to treat international trade with an extra measure of care and proper risk management. The risks in international trade differ from those in domestic trade. READING 2 1. 4 – 1 – 3 – 2 2.1001011033 8. intermediary 4. 7 – 10 – 9 – 8 – 6 . My writing will point out some major types of risks faced when trading internationally. dispatch 3.5 III. forward 4. remit II. dishonour 6. forward 2. collecting bank: h 9. maturity 6. It is always recommended to properly check the . consignment 3. accept/ release 5. letter of credit: i The risks of trading internationally Any business transaction involves a degree of risk. The first one I want to mention here is poor quality risk.27Nguyễn Quỳnh Trang .Complete the sentence 1. ESSAY 10.
With the movement of goods from one continent to another. and possibly of the goods not arriving at all. Having sufficient cash to allow offering credit terms in export sales is a substantial part of the firm's business circle.1001011033 goods prior to export.28Nguyễn Quỳnh Trang . It is common for many importers to conduct a test order. .both overseas and domestic . doing business in a foreign country entails major business risks. the maximum amount of credit which should not be exceeded. An inspection is normally done at the request of the importer. and quality inspection can all be conducted simultaneously. Another risk is transportation risk. There is the risk of theft. and most importantly how to finance the offered credit period. goods can face many hazards. shipping.in the trading accounts. but also to be prepared to anticipate the cost of such a failure. It is suggested that an independent party inspect your shipment prior to its delivery if you are working on a first-time import transaction. Be aware that buyers and importers sometimes raise quality issues to pressure exporters into negotiating lower prices. The key is to assess these risks properly in order to eliminate the failure factor in the firm's global operations. And the last one is credit risk. To assess this type of risk. and all parties involved experience greater comfort as the larger orders proceed. the firm needs to take into consideration the amount of credit outstanding . damage. Beyond doubt. The documentation. the impact of a customer's financial pitfall of the firm. or even within the same continent. Subsequent orders shipped with the same standards are difficult to reduce. Such an inspection protects both the importer and the exporter. and the costs for the inspection are borne by the importer or may be negotiated to be included in the contract price. this has advantages for both parties. Credit risk is associated with the customers' solvency but also the firm's business cycle.
invoices • Profit and Loss Account: cost of goods sold.1001011033 UNIT 9: ACCOUNTING AND FINANCIAL STATEMENT I. 6. shareholders’ equity. EBITDA. 4. current assets Exercise 4: 1. operating expenses • Balance Sheet: accounts payable.29Nguyễn Quỳnh Trang . Own/owe Depreciation/written off/amortization Receivable/payable Inventory Accrued Leverage Exercise 2: • variable costs • direct costs • fixed costs • indirect costs • operating costs • capital expenditure • marginal costs Exercise 3: • Preparation of Accounts: ledger. 2. F . 5. trial balance. EXERCISE Exercise 1: 1. 3. T 2.
After you know just what such a statement consists of.Having a solid business plan and a good balance sheet statement to work from is even more important with a brand new startup business. and it is the face of the new business to the world. including the profit and loss. those without a business background may need some help to get started.30Nguyễn Quỳnh Trang . the Balance Sheet Statement Is the Face Of Your Business To The World.1001011033 3. T 5.That is why the balance sheet statement is such an important document. Firstly. A good balance sheet statement will help potential lenders to determine the creditworthiness of a new client. Secondly. T 10. it will be much easier to create your own going forward. it is often much more difficult to determine just how successful. F What is the balance sheet statement and how important is it? The balance sheet statement is one of the most important of all financial documents. F 6. and it is important for every business owner or would be business owner to understand just what goes into this important document. the importance of the balance sheet statement will become even greater. balance sheet statement would be the one that potential lenders and investors want to view so as to have a general perspective about how the company is operating. F II. the seasonality of earnings. and help potential partners to make the decision on whether or not to invest. F 9. T 8.While the established business will most likely already have a credit rating of its own. an income statement or a balance sheet statement before may need to seek the help of a business mentor or other experienced business person . The balance sheet statement will help potential lenders and potential investors to look at the business as it goes forward. T 4. and other factors that are unique to the business. As the business moves forward later on. the brand new startup business will be. However.The statement will help to detail the history of the business. creating a balance sheet statement is not always as easy as it sounds of course. or how credit worthy. ESSAY 7.Those who have never created a business plan. While those who already have business experience may have little trouble coming up with such a statement.
EXERCISES Exercise 1 The first two paragraphs of the article. B 4. Market share 3. READING COMPREHENSION TASKS 1. Conglomerate 10. “It found that 83% of mergers failed…” means that only 17% of mergers are successful. Diversify 2. Synergy 8. A 5. Understanding main points 1. Optimum 7. The two key reasons for their failure are management too optimistic about prospects for the enlarged group and too confident they can overcome cultural barriers. . According to the Consultancy KPMG’s research about mergers: a. C 2. Corporate raiders and private equity companies 9. c.stripping II. Economies of scale 4. Asset. Advising fees 5. Customers 6. D 2. Understanding details 1. E 3.31Nguyễn Quỳnh Trang .1001011033 UNIT 10: MERGERS AND ACQUISITIONS I. More than half of mergers actually destroyed value of company. b.
d.1001011033 In the rest of the article. The writer is so surprised at the money spent on merger because of evidence so strongly against mergers succeeding. Mergers fail because of • Who believes? The way the two companies are John Kelly – UK head of KPMG’s Merger and combined? Acquisition Integration John Thorp – head of finance and accounting at European Business School in London • Differences in culture? • Unrealistic expectation about the Jame Montier – Investment Strategist future success of the new company? e.32Nguyễn Quỳnh Trang . Companies merger essentially: Who believes? • From fear of competition? John Kelly – UK head of KPMG’s Merger and Acquisition Integration • To ensure their survival in a global John Thorp – head of finance and accounting at market place? European Business School in London Answer the questions: f. .
The direct consequences of the culture clash were many of the US executives quit their jobs. Exercise 2 1.33Nguyễn Quỳnh Trang .1001011033 g. Take a word from box A and combine it with a word from box B to form collocations. Because the BP Amoco merger is between companies with similar businesses that can produce ongoing cost efficiencies rather than one-off saving. h. . develop the scale and get access to an increased number of markets these days. numerous of a takeover bid. Find examples of words and expressions which are related to marriage. 2. Reasons for merger: + Business need to survive. + Cost efficiency + share price + job cuts + stock market + investment strategy + financial target + share options + takeover bid Exercise 3 1. The belief that Daimler Benz would sell more Mercedes in the UK motivated it to merge with Chrysler. Tie-up/ Nuptials/ Mutual protection/ altar/ Breathing space Why do you think the writer uses this metaphor? Because he wants to emphasize the close relationship between two company which are merged. a steady decline in the share price. overconfident financial target were not met job cutting. i. The individual personalities are less justifiable than other reasons in mergers. j.
the key principle behind merger is to create a shareholder value over and above that of the sum of the two individual company’s shareholder value. why do companies merge: Firstly. _ Diversification: A company acquires another company in an entirely different sphere. In detail.34Nguyễn Quỳnh Trang . Problems with mergers: + The cultural barriers makes the communication becomes less effective.1001011033 + Companies are worried that if they do not get together for mutual protection. Two companies together are more valuable than two separate companies. If the risks are so great. + Over-optimism by management was a major reason why merged companies failed to perform well. a steady decline in the share price. 3. goodwill and share value + Unmanageable and inefficient structures (such as large conglomerates): The merged company may too large to manage + Drainage of Human Capital + Differences in opinion or management style may cause partners to fail to see eye-to-eye + Culture: Differences in corporate culture from one organization to the next also can pose problems for businesses looking to combine efforts and resources. + A less justifiable reason is management egos and the endless desire of advisers to earn fees. they would either be taken over or lose customers to powerful rivals. Type of mergers: _ Horizontal: Two companies making the same product combined. Exercise 4 What problems can occur with mergers: + Damage of company’s image. _ Vertical: A company either acquires or merges with another company in an immediatelyrelated stage of production and distribution. each type of merger can bring different advantages for companies: • Horizontal Mergers: . 2. The clash led to many of the executives quitting after cashing in millions of share options. job cutting and numerous of a takeover bid.
Merger and acquisitions can either be tax free or taxable event depending on the situation of the merger. Moreover. Secondly. with a huge hold on the international market and dramatic earnings.35Nguyễn Quỳnh Trang . there are a lot of cases for successful merger companies.1001011033 + Reduce competition: By merging. Exxon Mobil occupied all ten spots in the “Top Ten Corporate Quarterly Earnings” (earning more than $11 billion in one quarter) and it remains one of the world’s largest publicly held companies. one natural competitor was eliminated in the process + Increase market share + Acquire additional plant and equipment + Achieve synergy and economies of scale: Merger are able to reduces total costs for the newly formed corporation by implementing a combined effort such as using one set of marketing efforts to the same target market • Vertical Mergers: + Guarantee the supply and cost of raw material and components + To be closer to the customers. Exxon Mobil remains the strongest leader in the oil market. For example: in 1999. besides some failed merged companies. In 2008. Exercise 5 Here are some linking words and expressions that can be used to describe cause and effect: So to bring about to lead to to result in to cause to mean CAUSE EFFECT . • Diversification Mergers: + Move into a sector which promises greater growth or profits. it reunited its 19th century former selves. when Exxon and Mobil signed a $81 billion agreement to merge and form Exxon Mobil. firms may derive tax advantages from a merger. Not only did Exxon Mobil become the largest company in the world. and dealing directly with the retail trade. by cutting out the wholesaler for example. in some cases.
000. .000 people. However. shareholders of both companies and the European Union approved the proposed merger. meaning that the purchase was finalized. that cause Gillette shareholders got an 18% premium on the closing share prices of 27 January 2005.36Nguyễn Quỳnh Trang . as a result of P&G’s agreement to sell its line of battery-operated toothbrushes. P&G became the world’s biggest household goods maker. The US Federal Trade Commission (FTC) approved the acquisition on 10 April 2005.1001011033 as a result of because to result from to arise from to be due to to be caused by EFFECT CAUSE Answer: On 28 January 2005. as long as the companies divest some overlapping product lines to result in restoring competition in the market.1% drop for P&G. which caused 6. Procter and Gamble announced that it was going to buy Gillette for $57 billion that led to a nearly 13% rise for Gillette on Wall Street. P&G exchanged its common stock for Gillette stock on 1 October 2005. In July 2005. it also resulted in a 27% increase in sales and a 29% in net earnings for P&G. 4% of the combined workforce of 140. P&G predicted cost savings of between $14 billion and $16 billion from economies of scale and restructuring of the two companies so the combined companies’ sales would be over $60 billion a year. to lose their jobs because of overlaps in management and business support functions. while there was a 2. The Gillette Company ceased to exist and its stocks were no longer traded.
not many merger and acquisition deals prove to be successful. can be attributed to the motivation for businesses to combine forces and resources so as to ensure sustainability. It all comes from the ignorance. Business organizations have to deal with its competitors. it has to deal with external factors that affect how it conducts business. and who communicates that energy to everyone. If senior managers do not walk the talk. While the parties to a merger or acquisition cannot exchange commercially sensitive information prior to being under common ownership. However. Good preparation means the integration can kick off on day one. perhaps the measure of why shareholders and directors of companies are still pursuing mergers and acquisitions despite a global trend of a significant failure rate. business organizations have to strategize not only to survive but to thrive in the competitive business environment. all credibility is lost and the merger’s mission is reduced to meaningless In short. what it will feel like. failures also result from no common vision. Notwithstanding the many failures. and what will be different compared to how things are today. someone whom everyone can trust to bring the ship to its destination. there is enough crucially important and legally permissible preparation work to keep an integration team busy for several months before day one. someone who projects energy. ESSAY Why most M&A deals end up badly Today’s business environment is extremely competitive.1001011033 II. how the organization will operate. clarity. Besides. Most chief executives don’t know this and they waste the time that could be put to good use while they await clearance from the regulatory authorities. In the light of these conditions. One of these strategies is mergers and acquisitions. At the same time. there is no point of the convergence on the horizon and the organizations will never blend. In the absence of a clear statement of what the merged company will stand for. Weak leadership is also a reason. Integrating two organisations is like sailing through a storm: you need a strong captain. enthusiasm. My writing will point out three major reasons for this issue. if their behaviours and ways of working do not match the vision and values the company aspires to. the economic downturn has perhaps .37Nguyễn Quỳnh Trang . Speed matters.
38Nguyễn Quỳnh Trang . .1001011033 highlighted the need to diversify resources into foreign and emerging markets. thereby potentially enabling higher levels of growth.
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