Business English Study

Company Performance: APPLE

Advanced Level:

Unit Objectives

In this unit we are going to look at:

• Functional Vocabulary: Describing Performance using Key

Expressions

• Listening: Case Study: Apple – How iPod changed the fortunes

of the company

• Grammar: Raise, Rise, Arise

• Cultural Awareness Point: Greetings

• Pronunciation Point: /I/ – iPod, Italy, idea, interest

• Reading: Rise and Fall (and Rise Again) of Apple

• Role-Play: The Halo Effect - Executives Meet to Discuss

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KEY EXPRESSIONS: ‘THE HALO EFFECT’

What do you think ‘The Halo Effect’ means?

How can a company ‘cash in on’ this effect to sell
other products?

What is ‘Peer Pressure’?

How effective is it in influencing your decisions?

Read this short text and discuss whether or not you think iPod can help Apple sell
more computers.

Can the iPod boost core product sales?

During the last three months of 2005 Apple sold 14m iPods, compared with 4.5m in the
same period in 2004. In many ways the digital music player defines a product category,
as the Sony Walkman once did ... and with Apple's iTunes Music Store accounting for
80% of legal music downloads, the company now has a super brand, but can Apple
also use this power to sell more of its computers?

LISTENING 1: Exercise 1: You will hear a computer industry consultant talking

about Apple’s super brand, and how it can help the company sell more computers.
As you listen take notes and then answer the questions that follow.

1. What percentage of PC users is predicted to switch to a Mac after

buying an iPod?

2. How can Apple exploit the Halo Effect?

3. Why did millions of people want an iPod for Christmas when other MP3
players have more features and are cheaper?

4. What percentage of sales comes from the stores?

5. What is the success of the Apple stores a vindication of?

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GRAMMAR PRACTICE - VERBS:

RAISE - RISE - ARISE
In the listening you heard examples of the verbs: Raise, Rise, Arise
e.g. …they made long term profits rise where others in the industry made losses
… The “halo effect” remains Apple's most effective means of raising its profile
…opportunities for cross-over sales have arisen
These three verbs are often confused.

Are they regular or irregular, transitive or intransitive?

• A transitive verb is a verb that requires a direct object to complete its meaning:
The Company raised almost £9 billion in the share offering.
• An intransitive verb is a verb that does not require a direct object to complete its
meaning: The tension rose with each delay in production.

EXERCISE 2: Complete the table below with the correct definitions and conjugation
of the verb.

Infinitive Transitive Simple Past Definition (choose

or past participle from the list below)
intransitive
To RAISE Transitive *
*
*
To RISE Intransitive *
*
To ARISE Intransitive *

1. To put up, make higher, cause to increase e.g. that the costs a lot.
2. To reach a higher rank or position e.g. she to be director.
3. To bring up, mention, put forward e.g. Can I a question about rights
4. To generate, obtain, acquire, collect e.g. we 25% of the finance in 3 days
5. To go up, increase, reach a higher level e.g. the price with demand.
6. To come into being, occur, appear e.g. the problem when we tested it.

CULTURAL AWARENESS POINT: BRITISH STYLE GREETINGS

In the UK, when you meet a business contact for the first time, it is normal to
greet them with the phrase “How do you do?”
The response is “How do you do?”
We also shake hands, both men and women, and do not kiss, hug, or bow.

SPEAKING PRACTICE: Please explain how your nationality greets a

business contact, and how you would react if somebody tried to kiss or hug
you.
Do you know any other national forms of greeting?

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Words to Describe Movement and Trends

VOCABULARY MATCHING.
Exercise 3: Put these words into the correct category below

Shrink - boom – soar - shoot up - recover - stabilize - bottom out - rocket -

slump - plummet - bomb - slide - revive - top out – spike - plunge

UP surge
DOWN dip
DOWN and then UP rebound
NO CHANGE plateau
AT THE TOP peak
AT THE BOTTOM hit rock bottom

Role-Play:
With a partner use the vocabulary of MOVEMENT to describe the predicted
sales in these graphs.

PREDICTED MP3 MUSIC SALES TO 2011

450
250
400
350 200
300 Asia 150 CD
250
USA
200 100 MP3
150 Europe
50
100
50 0
0 2007 2008 2009 2010 2011
7

08

09

10

11
0
20

20

20

20

20

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What do you know about the history of Apple?

When was it started? Has it always been profitable?

Exercise 4:
Read the article out loud (a paragraph per student), and practice pronunciation.
As you read fill the gaps with word(s) from the vocabulary of movement and trends
above (more than one option is possible) and out them into the correct tense.

Describing the highs and lows of company

performance
1976: Jobs and Wozniak Found Apple
Apple Computer Company was founded in a residential garage by Steve Jobs and
Stephen Wozniak to meet the perceived in computer use.

1978: Apple Disk II Is Introduced

At $495, the Apple Disk II was half as expensive as competitive floppy drives, and
much more reliable. Sales immediately .

1980: Apple Goes Public

In the largest IPO since Ford went public in 1956, Apple debuted on the stock market
with a valuation of $1.8 billion. More than 40 of Apple’s employees became instant
millionaires thanks to the of their stock options.

1983: Lisa Is Introduced

The Lisa is the world’s first commercial computer with a mouse, but it due
to high cost, slow speed, and incompatibility.

1985: Jobs Resigns From Apple

After losing a boardroom struggle founder Steve Jobs resigned from Apple. The
company .

1992: Microsoft Releases Windows 3.1

After years of playing catch-up with the Apple’s ease of use, Microsoft’s Windows 3.1
is widely seen as good enough. Apple’s 15 percent market share quickly .

The original iMac

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1997: Jobs Returns

Officially brought on as an advisor, Jobs assumed the role of CEO.
25-year-old Londoner Jonathan Ive joined Apple’s Industrial Design Group and was
the creative force behind the iMac, a product that Apple.

1998: iMac is Introduced

The iMac announced to the world that Apple was still a force to be reckoned with,
and while company profile it became the fastest selling Mac model ever.

2001: First iPod is Launched

Nobody realized it at the time, but the iPod with its 5GB hard drive capable of holding
1,000 MP3s transformed not only Apple, but also the entire music industry. Apple
share price .

2003: iTunes Music Store Opens

Building on its iPod success, Apple opened the iTunes Music Store with
over 200,000 tracks available for 99 cents each.

The iPod mini family

2005: Video Arrives in iPod

Hoping to do for video what it did for audio, Apple added the ability to play movies on
new iPods. This feature brought about another in sales.

2007: iPhone launch announced

Apple is set to launch its version of the mobile phone called the iPhone. The world
waits with excitement.

PRONUNCIATION PRACTICE: Letter i

In English the sound the letter i makes comes in two distinct forms (lit - light).
They need to be learnt from practice rather than rules.
Practice saying these words and the sentence that follows with your teacher:

Decide – Mine – Tiny – Crime – Criticize – Drink – Drive – Pint - Pile -

Ice - Idea - iPod - Interested - Italy - Item - Intelligent - Isolated - In

The inspector was only interested in the ideas that the Italian created,
and not the information decided by the Institute for International
Intelligence, in the tiny state of Vatican City.

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Just who is Jonathan Ive?

Few people recognise Jonathan Ive and few could tell
you what he does. But most of us know, admire and
use his work. Ive is 'Mr. Mac'. He is the British
designer who has reinvented the computer and
brought us the iPod.

LISTENING 2. Exercise 5: Listen to the recording of a journalist talking about the

impact that Jonathan Ive has had. Then answer the following questions.

1. Ive grew up in:

a. London b. Exeter c. St Martins d. Chingford

2. He went to art school to design:

a. Toothbrushes b. cars c. computers d. models

3. When Apple offered him a job he was working for:

a. Grinyer b. Tangerine c. Design Council d. Portable computers

4. Why does Ive love the iMac:

a. It’s a jukebox and design tool b. It’s a video editor and photograph
organiser c. It’s new and fashionable d. The possibilities are endless

5. How does he come up with his ideas?

a. By thinking about colours b. By thinking laterally c. By looking at ordinary
things d. By looking through things

Role-Play 2:
The Meeting: Management board discuss whether to concentrate on music
or computers.

Computer Team:
You feel that the real growth market is in computer development and should
stick to what you know. Music is a fad. Prepare a presentation on why
APPLE should stay in computers

Music Team:
You feel that the real growth market is in i-Tunes and that APPLE needs to
develop in this area as it is extremely profitable. Prepare a presentation on
why APPLE should concentrate on music.

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Bold indicates examples of the grammar and business vocabulary introduced in the module

Audio-script 1 – APPLE - advanced

Capital English Pod looks at the Business Strategies that have helped Apple survive
near collapse to become a major league company. How did they do it?

Apple was on the brink of bankruptcy in the 1990’s and only a risky strategy of
investment enabled them to recover.
All the investment Apple makes in developing new technologies, both in terms of
money and human resources, is the single most reason why they are such a
successful company.

The reality is their innovative products, such as the iMac and iPod, are exactly what
saved Apple and pulled them out of the slump that could have easily resulted in
bankruptcy in the 1990’s. Although the costs of developing those products have hurt
Apple's short term profits, they made long term profits rise where others in the
industry made losses.

Even more important is the fact that Apple's R&D investment is money that no other
PC vendor is spending. Dell spends a bit of R&D on figuring out how to use 2 or 3
fewer screws in each machine (something at which Dell is the absolute master), but
the company is not developing new classes of products, or even any new products.

Apple produces new, innovative and cool products, but is this enough to beat the
competition? As their chairman, Steve Jobs, said, it’s not only about finding the
opportunities, you then have to exploit them before others do it for you.

So how can you exploit the iPod? Can iPod sell more computers?
The “halo effect” remains Apple's most effective means of raising its profile and
boosting sales of its computers. Surveys suggest that some 10 to 20% of PC users
who buy an iPod then go on to buy a Mac. In 2005 the iPod helped the company to
increase its share of the personal-computer market from 3% to 4%. This doesn’t
sound much but it is significant in an extremely competitive market. By getting people
to buy an iPod, a new type of device, it is a step towards getting them to switch
loyalties with their computer supplier.

But how do you get them to buy an iPod in the first place?
The most powerful factor working in Apple's favour is peer pressure: what friends and
relatives have to say about products is now the most trusted form of consumer
advice, and to be seen with something different is un-cool. That is why millions of
people said they wanted an iPod for Christmas, and not an MP3 player from another
manufacturer—even though rival players are often cheaper than iPods, and generally
have more features.

Then there are the new, high profile Apple Stores where opportunities for cross-over
sales have arisen and profits have soared. Apple's stores are a huge success and
another vindication of Jobs' marketing genius.

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Audio-script 2 – APPLE - advanced

And who is the person behind the highly successful design strategy of the iPod?

Not many people have heard of Jonathan Ive, but he is one of the most influential
product designers of our generation.

Jonathan Ive has risen to become vice president of industrial design at Apple in a
matter of a few years. He was raised in Chingford, England, the son of a silversmith.
As a child, he was always interested in making things. When he left school he
wanted to design cars and took a course at Central St Martins Art School in London
but found that the other students were, as he puts it, 'too weird.' So he went to
Newcastle to study product design. There he met Clive Grinyer, who is now director
of innovation at the Design Council. He recalls Ive was more focussed than anyone
I'd ever met by what he was trying to achieve. He built 100 models for his final project
when most students did six.'

After graduation Grinyer joined Ive in a small London-based consultancy called

Tangerine and it was there that he got his big break. One day in 1992 Apple hired the
company to come up with ideas for the emerging portable computer market. Ive took
on the project and Apple liked his ideas and when a position arose in their design
team they offered him a job.

But how does Ive come up with the new? And why do computers fascinate him when
most designers prefer cars or clothes? The man himself says that there's no other
product that changes function like the computer. The iMac can be a jukebox, a tool
for editing video, you can design on it, write on it. The possibilities are endless and I
love that.'

Friends say the roots of his success lie in his lateral thinking and Apple’s motto is
‘think differently.’ Ive finds the true appeal of an object, often ignoring the traditional
approach to design. Inspiration comes from almost anywhere. The original pastel-
coloured iMac had its roots in coloured sweets. The iPod is like a cigarette pack in
the shirt pocket for those addicted to music instead of tobacco.
His designs have revived the company to such an extent that in all probability Apple,
whose share price was plummeting, would have been taken over or gone bust
without him.

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LESSON PLAN - APPLE - adv

Key objectives – to practise aural and oral Business English

INTRODUCTION: Start by asking students if they have an iPod, or a Mac. Get them
to say what they think of the brand. Ask them about the Halo Effect. Read short text
and discuss question about selling more computers.
Teacher (T) - Students (SS) 5 mins

LISTENING 1: Next tell students they are going to hear a consultant talking about
APPLE. They need to answer the questions at the end. Play the listening and ask
students the questions. (T) - (SS) 10 mins

GRAMMAR: Elicit the verbs RAISE, RISE, ARISE. E.G. What would you do if
demand for your product was high and prices were low? You would …
Ask students to read through the rules and check they understand them. Then
complete the exercise. Get them to read out loud. (T) – (SS) 5 mins

CULTURAL AWARENESS: read through the style of greetings in the UK and then
go through the speaking practice that follows
(SS) – (SS) 5 mins

VOCABULARY TO DESCRIBE MOVEMENT:

Write down on the whiteboard ‘plummet & soar’ and ask students for the meaning.
Go to the exercise (T) - (SS) 5 mins

ROLE-PLAY 1: Move onto the role-play about graphs and ask students to work
together to describe the figures.
(SS) – (SS) 5 mins

READING: Ask students what they know of the corporate history of APPLE. Go
through reading text instructions and ask students to read out loud and fill in the gaps
with appropriate words for the gaps. (S) – (T) 10 mins

PRONUNCIATION: Student says the words and sentence and correct any mistakes.
(SS) – (SS) 3 mins

Ask students if they have heard of Jonathan Ive? Go on to

LISTENING 2: Tell students they are going to hear a profile on Jonathan Ive,
the designer of the iPod. They need to answer the questions at the end. Play
the listening (SS) – (T) 10 mins

ROLE PLAY 2: Split students into groups and get them to read their role cards and
prepare to discuss the situation. Make sure they practice the grammar and
vocabulary learnt in the lesson and to try and use the case study material in their
argument. (SS) - (SS) 10 mins

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Exercise Answers
Listening 1 Exercise 1
1. 10-20%
2. First get consumers to buy an iPod
3. They are cool
4. 17%
5. Jobs’ marketing genius
Grammar: Exercise 2:
Infinitive Transitive or Simple Past Definition (choose from
intransitive past participle the list below)
To RAISE Transitive raised raised *1
*3
*4
To RISE Intransitive rose arisen *2
*5
To ARISE Intransitive arose arisen *6

(More than one answer possible for these)

1. To put up, make higher, cause to increase e.g. that raised the costs a lot.
2. To reach a higher rank or position e.g. she rose to be director.
3. To bring up, mention, put forward e.g. Can I raise a question about rights?
4. To generate, obtain, acquire, collect e.g. we raised 25% of the finance in 3 days
5. To go up, increase, reach a higher level e.g. the price rose with demand.
6. To come into being, occur, appear e.g. the problem arose when we tested it.
VOCABULARY MATCHING.
Exercise 3:

Up - verbs Surge – boom – soar – shoot up – rocket -

down - verbs Dip – shrink – slump – plummet – bomb – slide - plunge
down and then up - Rebound – recover –- revive
verbs
no change - verbs Plateau - stabilize
at the top - verbs Peak – top out - spike
at the bottom - verbs Hit rock bottom – bottom out -

Reading: Exercise 4: These are a selection of possible answers

1. Boom
2. Shot up
3. Dramatic rise
4. Slumped
5. Reached a low point
6. Slid
7. Rapidly
8. Revived
9. Raising
10. Soared
11. Rocketed
12. Boom
LISTENING 2. Exercise 5:
1. Chingford
2. Cars
3. Tangerine
4. The possibilities are endless
5. By thinking laterally

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