© aS ener Business Leader Briefings VIDEO RESOURCE BOOK BUSINESS ENGLISH Rosi jillett FINANCIAL TIMES World business newspaper.Pearson Education Limited Edinburgh Gate, Harlow, Essex CM20 2E, England ‘And Associated Companies throughout the World. vwwwelongmarrelt.com Pearson Education Limited 2000 Al rights reserved, No part ofthis publication may be reproduced, stored ina retrieval system, or transmitted in any form or by ary means electronic, mechanical, photocopying, recording, or otherwise, without prior ‘witten permission of the Publisher. The Publisher grants permission for the photocopying of those pages marked according tothe following conditions Individual purchasers may make copies for their own use or fr use by classes they teach. Schoo purchasers may make copies for use by thelr staff and students, but this permission does not extend to additional schools or branches. Under no Circumstances may any par of this book be photocopied for resale. First Published 2000 Set in Meta Plus Designed by Jennifer Coles ISBN 0582 435315 RECIBIDO CENTRO DE iDioMas 25 OC 2205 EAFIT MAS nan nein! < %2 = iS e ra o 3 « e z a o CEREAL EADER) Jana EVALUACION Introduction PRONISIDA SU HECTOR VACELA piviion ELT /SCHOOL pexerentr ta) 2586657 MELLIN Business Leader Briefings can be used alongside the Market Leader course, or as freestanding material fr students of good intermediate level. Business Leader Briefings isa collection of authentic interviews with top-ranking ‘managers and CEOs, many from global companies. The interviews were originally filmed for the Financial Times Television ‘Strategies’ programmes. This challenging and thought- provoking video aims tp focus on, and stimulate students’ response to, key business issues. Each programme is introduced by news presenter Ros Childs who highlights and explains the key concepts then expressed in the interviews that follow. The language learner is given further support bath on the video with on-screen questions and key points, and inthe Video Resource Book. The video is divided into six programmes: Globalisation, Leadership, Managing people, Building brands, Corporate responsiblity and Innovation. Video Resource Book Each unit is divided into sections: Before you watch quote from the video and questions to encourage students to start thinking about the topic under discussion. Background information is given about each ofthe fifteen organisations in the video. Video vocabulary variety of exercises prepare students forthe vocabulary they will hear and seein the programme. While this section is designed to aid comprehension, students may also want to learn these business words and expressions for productive use, Video on The units deal with the programme in segments. Students will need to watch each segment several times to answer the questions. With a particularly able group, you may lke to show the programme through once for an overview, before returning to work on it segment by segment. ‘At the end of each segment a final question encourages students’ own responses to the ideas expressed by the interviewees. Tatking points This allows students to review and discuss ideas in the programme. Business forum This opens out the discussion with topfe-related questions. Word for word ‘An optional gap-fil activity for intensive listening, focussing mainly on vocabulary already presented. Students could do this exercise before the Talking paints section. Avideo script and answer key are supplied. You may like to give students the video script at the end of their work on each programme. SUSINESS LEADERBRIERNGS sGlobaeston 3 \ t EE; Globalisation CER RC 6 The world is globalising and the telecommunications industry is becoming more and more global, and so we feel that we are well-positioned in that market place. Brown | 4. Read the title and the quote above. 4. What do you understand by globalisation? 2. Do you think globalisation is the way forward just for telecommunications companies (or for companies in general? 2. Read about the companies and interviewees in this programme. Cable & Wireless he world's ost ised 08 ‘ABB (ASEA staelt srcy Baro 08 of ‘Sillensones ates, He '5 Ts a ereftne oa on a paver. cise wetsh ABB ceteras Or iy and oubeennG a a bates tis clue ele PO a Ne sgn on ch Et ea trochem justrial products en¢ tod petrocienicemogs eeu 176,000 Mane cna ermal ep or gob a en nd 0 8 bene Dick Broa was with Gt & Wins om 100-1068 and eid to true Dusinas tofu tito oe of te wr oeing ‘eommnistone computa Cie & Wwe a aor oa camer of seeped commen raf Inerooydta, Yin and vie, with operons in 60 snntcns 84 60,000 employees word The coma combines ial experin wth al vase sea %s many customers ane tanseeee ann players. oe Video vocabulary Match these expressions from the video to the definitions. 5 a) competitive edge 7) globalisation 3b) contradiction © @) grow organically ©) currency markets ® h) multinational accounts éd) to be customer-driven 1) working practice » €) expanded trade Definitions 1 the way in which things are done in the workplace 2. the tendency for the world economy to act as one unit, led by large international companies doing business all over the world business ina variety of countries to consider your buyer first and shape business around your buyer’s needs I an advantage that makes one company better than another increased business foreign exchange markets a difference between two ideas that means they cannot both be true 9 to increase in size by natural growth not by e.g. mergers or alliances 2 BUSINESSLESDER BRIEFINGS 1Glbaisaon reason tdverton ated 2000 EET tAEREIEET Pescon easton ie LEADER CK on © ©) Before you watch each segment read the questions. Then watch the video and answer the questions. Segment: EEE 1. How has the business world changed over the last twenty years? 2 What examples does Dick Brown give of globalisation? 3, How does Dick Brown view Cable & Wireless’ place in the global market? (© Why s the telecommunications industry so important ina global market? Segment 2 4 What did Perey Bamevik do when he became head of ABB? Why? 2 What does global glue’ mean for ABB? What effect does it have on employees? 3 What wo types ofleader does Percy Barnevik mention? 44 What ae the three contradictions he talks about? 5 When the three contradictions work well together, what does this give a company? @ What are the advantages of being a large company? What are the advantages of being small Segments CEEEOR 1 Does Dick Brown think that all companies will become global companies? 2 What are Cable & Wireless’ goals? 3. How does a company go global? Which three ways does Dick Brown mention? ‘© Which route to ‘globalness’ probably takes the longest? Segment 1 Why is it important to have local people in a global organisation? 2 What does Percy Barnevik say is the easy thing? 3 For Percy Barnevik, what Is the key to successful globalisation? @ Percy Barnevik talks about ‘national, cultural barriers’. Do you agree that differences cultures can make it difficult for different parts of an international company to work together? Talking points ODE IDIOMAS 8 ‘© How do companies go global? © What are the benefits of globalisation to companies? (© How do you make globalisation work? [ Business forum | forum Discuss these questions. 1 What role have the following played in globalisation? a) the removal of trade barriers b) electronic systems of communication e.g. the Internet 2. Which types of company do you think are most/least suited to globalisation? 3 Doyou think that global companies have too much power? GUSINESS LEADER BRIEFINGS 1 Globalisation 3 SESE SSI SPER SRR IERs tata: a LEADER BUSINESS LEADER BRIEFINGS 1 Globalisation kine Loa ©} Watch the following clips and complete the interviews. Dick Brown: The world + and the telecommunications industry is becoming more and more (glo. global, and so we feel we're (we're) well-positioned in that market place. You see currency markets are more globally tied, economies are?__ + more so nowadays with (with) expanded trade, more and more multinational accounts are doing business in many, many more countries. We're a company at Cable & Wireless now 3 . __to carry the traffic and to provide the services to more and more companies that now need to get to five countries or twelve countries or twenty countries, we're often there. 2 Percy Barnevik: We have now for ten years after our big merger (er) created a » “where people are tied together, where they dont internally compete, but support each other, and you have ? = with global responsibility and your local managers working with their profit centres, and ifyou have the right, soto say, agenda for these people and the right structure, you can use a scale of economy and your advantages of bigness but being small. We used to say you have three 3 + decentralised and still centrally controlled, big and small, global and 4 and, of course, to try to make these contradictions work together effectively then | think you have a big organisational 5 3 Dick Brown: Well, as you go global and (and) a handful or more of companies are going to really push out, in my view, to be truly*_ sand some of them, maybe all of them, will also work to be local. They'll be local in chosen markets and global in their ability to camry their? from continent A to continent B. We want to be one of the companies that's both global and local. 3 ____ are one way to be global, it’s not the only way tobe global; you can 4 ___ your way to globalness’, ou can organically gr0W your way to ‘globalness", you can have alliances which help you get (glo: global quicker, so you take your pick 4 Perey Barnevik: You have to start from the top with local people who understand 1 . and so on, and (et) think in this global world where the Eastis coming up now, (e) that’s a® _ 5 Percy Barnevik: You see, the easy thing is to have the * but then to make the systems work, to make people really work together, to 2 each other - Americans, Europeans, Asians, to get over these 3 __.e) _and create a common glue, ABB, and then make them © Pearcn Eduction Lined s000 ETEETSETTTSLeadership i | Before you watch | TROL CL @7he job of a leader... is (to) give employees dignity and voice, allow them to reach their fall potential 9 Jack Welch 4. Look at the quote above. 4. Do you agree with what Jack Welch says? 2 What do you think are the main responsibilities of leader in today's business world? 2. Read about the business leaders in this programme. Mike Bloomberg is founder and CRO (Chiet ‘Exooutive Officer) of the onganisation which bears ‘is name. He does not have his own office, pact of 2is philosophy to remove all obstaates to the iow. of cocmuniestion in his company. Bloomberg provides information services to over 140,000 customers in more than 91 countries, covering financial data and all areas of news. The compe ‘has over 3,000 employees around the word an gant OF (Genel Hie) s one ofthe sere tesa oes, c t ‘Stapaytotis suous. She oom iia rasonasing te COMPANY, ae eee ualyteducng a worker. Hon 2 around 800,000 poop i. ove can oasis exanat®, Soa tovraft engines to Moai servos renging ‘Sandra Dawson Professor Daweon is Director of the Judge Institute of Management Studies, Cambridge University's Dusiness school. Also Master of Sidney Sussex COolleg, she 1s the first woman to be head of a Cambridge college founded for men, She is a nor executive director of Fleming Caverhouse Investment Trust and a member of the UK Senior Salaries Review Body. Her research Interests Include onganisational structure and change, technology transfer and knowledge sharing, and ‘hoaith management and policy. Video vocabulary Look atthe expressions in bold from the video and their definitions. a) command and control superstructure: an organisation where upper management make all the decisions and pass down orders to the levels below them b) meritocracy: where the people who contribute most get the greatest rewards ©) hierarchy: organisation where staff are arranged in levels d) to break down the vertical walls: to remove structures and practices that di company into separate parts ) to flatten the organisation: to take away levels of management in a company f) to remove barriers and impediments: to take away obstacles ide upa Say which expressions describe: 4 management structures 2 tasks of aleader (RXTE revocation ited sno SUSNESSLEADERBRERNGS atedesip 5 enLEADER Ka on : © © Before you watch each segment read the questions. Then watch the video and answer the questions. Segments FEDER 1 Whyisa hierarchy not the best structure for today’s businesses? Lr ——“———CCsC—C—C—C organisations? Segment 2 1 Which tasks does Sandra Dawson think leader should perform? a) talk about the company’s values (1 b) behave according to the company's values [] ©) give a sense of direction C] 4d) control the work of the people below them L] «) be aware of what is happening outside the company [2 £) know what customers want C3 «) work with specialists and develop ideas 3 © Which ofthese tasks do you thinks the most difficult? Segment 3 EE 1. ForJack Welch what is the role ofthe business leader? 2. Inwhat sort of organisation i it hard for employees to reach their full potential? 3. For Mike Bloomberg what are his responsibilities as CEO? 4 What things do not exist at Bloomberg to encourage people to talk to each other? © What are the advantages of removing barriers in an organisation? ‘Segment 4 + Why is it important to fatten the organisation, to break down the vertical walls? 2. Whats happening al the time, according to Jack Welch? © Why re speed and an ‘appetite to learn’ so important in today's business world? Talking points oo © What kind of management structure will tomorrow's compar ‘© How does this change the role of the business leader? i (© What are the benefits of these changes? Business forum | Discuss these questions. 1. What is your impression of Jack Welch and Mike Bloomberg as leaders? Would you want to work for them? 2. GEis a company that is made up of many businesses. What are the advantages of breaking down the vertical barriers across the businesses? need? 6 BUSINESS LEADER BRIETINGS 2 LeadershipMARKET [E04 kx aC | E_ Watch the following clips and complete the interviews. Sandra Dawson: | don't think there is one best way of managing anything. You have to think very carefully about what's the nature of the task and how can that best be achieved »_____are just toots to enable you to do your business better. The reason why there's a lot of change is because = not in the main the best way for organising businesses that require alot of and alot of discretion throughout the organisation. In other words, for businesses where you know there is no 4 __of truth and right and the right solution at the top. 2 Jack Welch: The job of a leader, whether it be at CNBC or any other place, is (to) give employees dignity and voice, allow them to (fu) reach their full * q they can't do that in a? _ superstructure. They can do that when you get all that trappings of management off their back. 3 Mike Bloomberg: As a CEO, myjobisto*______-—__ its not to come Up with allthe ideas, no one person's that*__and there's no reason to think. that lam any smarter than anybody else. (E1) but my job is to make sure ideas get up to the top, my (et) objective is, my responsibilty is to make surei’sa____ that those that put in the time and do better get compensated better than everybody else. £ ‘And so try to remove things that would impede the 4 of information. 4 ERTETEN E Mike Bloomberg: ... anything | can do to get different parts of the company to talk to each E other. We don’thave*__inour company, (e)?___are another fone of those things that would keep people from talking, and I don’t want those things. 5 Jack Welch: The Business Manager is the leader of each of these businesses. So what we tried to do was * _ , break down the vertical wall, so that an organisation can lear, (er) and an organisation can be quick. F you believe in? + and you believe in learning, you've got to get al the 3 to those things out of the system. This is a game where you 4____allthe time, you're always learning, you're always looking, we don't have all the answers by any means, but we have the most (we have the most) insatiable 5 «It's in our culture, itis today the biggest change in our company: finding what others are doing, teaching it, adapting it and then driving it PEEEETIELEE ©Pesron scucaton ned 2000 BUSINESS LEADER BRIEFINGS Leadership 7CEE EAE) Managing people - Cnr) you watch GAt the end of the day, you have to have an understanding for other people's way of és behaving. Percy Barnevik 4 Read thetitle and the quote above. ‘As a manager, why is it so important to have an understanding for other people's way of behaving? 2. Read about the companies and interviewees in this programme. Br ‘pr cBritish Telecom) has a Paephone business to « global communicate ‘Gietang. Te has a presence in Busope, NOwD Smorioe, Latin America and te AS!® or sjoyee attitude surveys 10 Br canis ovt omagee roe bask os 5 Tredbac toms peoe = en easy ey ae nnage, MEDAEES st bow thet p eviow tas manageies in Toppan was Macaig DCO” of Penn ications from 1905-1807, He Rece e alr Dace APES (g008 to tal Professor Dawson is Dinector of the dusge Insite of uanagereny Shen, Oa a, ata ‘University’s business school. “ee Seveion AB is Swedes angen not et Indra ok company and one of the biggest investors in ng $ndustiy, wth owaorahp in Swed sompenies fh ae Bisson, Sab, Heroic ana tbe 1 has 880,000 employees ine companies ante aera fun y the aerbeg so Former Ghaaman o hiemdiona eninge up ABB, Prey Barevitb now Chaseae re Iver ab, Video vocabulary Look at the expressions in bold from the video and their definitions. a) best practice: a good example of how a task or activity should be done ») censure: when you express strong disapproval or citcism ©) to coach: to train, teach e ) empathy: ability to imagine yourself in the position of another person | 4 8 0 give someone confidence to do something by giving your approval a f) make mistakes: do things incorrectly ) ownership of decisions: when you feel responsible for your decisions 1) disciplinary action: action taken when an employee breaks company rules i) valuable asset: something belonging to the company that has value to contribute: to give, to help ‘Work in pars and put the expressions above under the headings. Discuss why the words have a negative or positive meaning for you. Positive Negative Lo 8 BUSINESS LEADER BRIEFINGS 3 Managing people attJ MARKET [EEO Ka Cr © © Before you watch each segment read the questions. Then watch the video and answer the questions. Segment 1 1 What type of management style does Stafford Taylor describe? 2 What does he think managers should allow ther staf to do? © What do you think are the benefits of letting people take responsibility for their own decisions and problem-solving? Segment? EEE 1 What fut stuaton does Percy Barnevik describe that tls you what a company is really like? 2. Which of these does he specifically say have to be considered? | a) how to handle or treat people (] b) how much money to give them ©) how long they have been with the company C] | €) how to help them get a new job C1 & | €) how to try to transfer them to another job within the company C1 {) how to retrain or re-educate them to get a job with another company C) What sort of managers are needed? According to Stafford Taylor what is avery important role of management? What should not happen to people when they make mistakes? What are the two dificult situations mentioned here that really put a manager's skill tothe test? Segments FREE 1. What three motivating factors does Sandra Dawson mention? 2 How do companies benefit from giving their employees more responsibility? ‘© What motivates you or would motivate you most in a job? Talking points © © cue ‘© How do you manage people to get the best from them? ‘© What responsibilities does management have towards its employees? © How should management deal with dificult issues like reducing the workforce? Qaim eT) Discuss these questions. ‘ ‘What responsibilities do employees have towards management? 2 Do you agree with Stafford Taylor’s approach to people making mistakes? 3 Do you have to be a good people manager to be a good manager? 4 Do you think giving people responsiblity makes it easier or more dificult to manage é them? GEEIEETITY o reron auction ues 000_ BUSINESS LEADER BRIEANGS 5 Managing peonle 9LEADER Cito Cmca ©D_ Watch the following clips and complete the interviews. a Stafford Taylor: | think you need to look at the kind of different * . (ef) and we have in this country, certainly in the UK, in many, many businesses stil a kind of ? style of management and what ! mean by that is that sort of the senior management have through some ultimate wisdom with which they happen to be gifted, decide exactty what's going to happen throughout the company and they set a series of 3 how the company’s going to move forward. And that these commands then get moved, thrown down the organisation and people are then asked to do precisely what they are told to do. As far as is possible, and as far as is practical, you know, we should leaveittoours__———__—ito, youknow,totakeS of (of) decisions, ownership of problems, and resolve those problems, and, in the main, they do. | mean certainly in my own organisation | reckon 98, 99% of the people are very 6 individuals that witl get on and do the job in the proper way. Fa 21.17-21.52 Stafford Taylor: The key role of management is to * their people, and by that | mean it’s (it’s) to make sure that we # » that we learn from mistakes, that when those mistakes are made that people shouldn't be sort of disciplined, (1) everybody should be entitled to try out new ideas and > ‘and we shouldn't er (we shouldn't) be sort of immediate sort of (erm) isciplinary action taken or 4 - (Ef) we should say, ‘Look we've learned from that experience now let us make sure that we make sure that everybody else doesn't make the same mistake and et’s coach across the organisation’ El 22.00-22.19 ] Percy Barnevik: At the end of the day you have to have an * ___for ‘other people's way of behaving, their culture. You have to spend time together fo really discuss problems. You have to share the same values (er) you have to reward people who really? to the group benefit, not just to their own benefit. i 22.56-23:39 | Sandra Dawson: So how are people going to be motivated? They're motivated by 1 but they're above all motivated by the possibility for? and for development. So making sure that you've ‘got the motivational package rightis the second thing, And then the third thing is the = __ « Ifyou think about a carpenter, you can have a wonderfully, skilled carpenter, he can be highly motivated, but if he doesn't have very good 4 then he wor't do a very good job. So what sort of tools are needed in terms of, in terms of manufacturing systems, in terms of management ‘accounting systems? And if you can get the capacity, the motivation and the tools right then you cans. people very very well in an empowered organisation, © Peotson Evcation Linked 2000 SETS BUSINESS LEADER BRIEFINGS 3 Maneging peleLEADER Building brands | Before you watch | SOREL G The brand is just a badge. I's aname.9 Dick Brown 4 Read thettitle and the quote above. ‘What do you think of when you see or hear these brands? Virgin Disney Cable & Wireless The Body Shop Dell 2 Read about the companies and interviewees in this programme. Virgin Group ita. : oa nae sone of Bats besos Ta ne cen wear Tae AE an on ganness ens oe nent or a agusarey oe (06, ES Co et etalon Pugs), Anancs 6 si rb, fergie oa, TB HO. Vi et ned ee” HY OE companies woven brane Tse are epee Se Seeaon, wh Sl 8 OF by its founder Rie ® Pantuenoes the Virgin Group DUstBesses. He has been called ‘the most influential thinker om strategy in the western world. He created the idea of core oo mpetence and describes this in fea bes this in the Cable & Wireless Video vocabulary Match the words in bold tothe definitions below. ‘We've been a company that in the past has a) understated its size and capabilities.” “We give a consistently high quality of b) care to customers..." “There isa set ofc) values attached to it: quality and value for money, d) innovation, fun, ©) challenge, competitiveness.” “They were all charging exactly the same f) commission, they were all making very big profits and they weren’t really g) growing the market very quickly.” “They have been h) leveraging a competence around their understanding of young people, 3 next generation.” “How do you take i) “stodgy” businesses and make them “unstodgy”?” Definitions 1 tomake something seem less 6 make it bigger important than it is 7 newidess 2 money paid to someone based on sales. something difficult that you are 3. tomaximise, exploit determined to achieve 4 help, advice, service 9 uninteresting, dull / interesting 5 ideas about what something stands for (EDU © eatsonccvatottes 2000 BUSINESS LEADER BRIEFINGS 4 Building brands 11,MARKET [ELUDS3] Kx Cy @ Gd Before you watch each segment read the questions, Then watch the video and answer the questions. Segment 1 4. What changes have taken place in Cable & Wireless? 2 How many companies are changing thelr name to Cable & Wireless? 3. What does Dick Brown mean when he says the brandis ust a badge? 4 Which of these does he mention as being more important for a company than its brand name? a) its behaviour O @) service levels b)its revenues C1 its profit 6) its character and personality (J f) quality of care 0 © Do you agree that the brand is ust a badge? Segment 2 1 What ismost important to Virgin in the way it views itselfas a company? the brand Clb) the individual businesses (2 9 the product C) 2 Which of hese does Will Whiteharn mention as part of Virgin's set of values? 2) quality and value for money fun O ®) innovation C1 6) challenge ¢) tradition ) competitiveness @) luxury O 1) a different way of doing things (2 3, What business area did Virgin enter and do things differently? 4 What did Virgin do that was very different from all the other companies in this area? © When you think of Virgin, do you think of the values Will Whitehorn mentions? 1 Which of Virgin's core competencies does Gary Hamel talk about? 2 What are the three tests of a core competence? 3. Which of the following areas does he say Disney is Involved in? a) theme parks @) ship cruise tines CI b) movies ) adult education C1 ©) retaiting C1 ‘health centres 0 4 What unites al these different businesses? (© What other areas could Virgin's and Disney's core competencies be transferred to? Talking points 0° =z © What isa brand? © What are the benefits of a strong brand? (© What isa core competence? BUSINESS LEADERRIERINGS « Bulg brands © Pearson Education Lites 2000 SERIESLEADER ESCO) Discuss these questions, 1. How many brand names can you think of in 30 seconds? What do you associate with each brand name? 2 Can you remember what the logos for Cable & Wireless look lke? What about the logos for other companies you have heard about in this video? What are your own favourite company logos? Why are logos important in bulding brands? 3 Think of a company you know. What ae its core competencies? What other business areas could they be transferred to? or: EILEEN 0 esrson escation tinted 2000 BUSINESSLEADER BRIEFINGS 4 uldingbrands 13,LEADER Cia for word | 2 Watch the following clips and complete the interviews. | FA 27.43-28.43 Brown: We've been a company that in the past has * its size and capabilities because Cable & Wireless has had an? that matched the local brand name in many of our markets, not the Cable & Wireless >. ____, 50 (0 e1) we were the most global telecommunications company in the world and the best kept secret. Now thirty-seven different names that comprise the family of companies of Cable & Wireless are all changing their names to Cable & Wireless, so we're popping up on the screen. The brand is just a4 It's a name. How you behave, what is your character and 5 + that’s what's behind the brand, and so service levels, expectations forall our seventy plus thousand employees around the world, we're doing more and more ofthis as we give a consistently high —— __ for customers no matter whether you're in Singapore or Vanuatu of Latvia or Jamaica. 5) Will Whitehorn: Virgin doesn't think about the business as an individual business, it doesn’t think about a* -Fyou'e Mars, you have a Mars bar. Virgin is very different to that. We're a company that has developed a brand that has grown historically into realy something that people believe in a? — attached to it. They think of quality and value for money. They think of innovation, fun, 3___, competitiveness. They think about Virgin doing things differently in other words. What | think we can often bring isa slightly more detached view of the business and abit of 3 Gary Hamel: How has Virgin managed to go from record stores into the airline business into colas into insurance products? | would argue Virgin has been leveraging a *____really around their understanding of young people, next generation, how you take ** * businesses and make them ‘unstodgy’. That's a competence at Virgin. dentifying what your core competencies are is an essentially creative task. There are three 3__ ‘of whether you're talking. about a core competence or not, The first test is, does it create + __1 sit something that is very Important in the customer experience? The | second testis, is it something that’s difficult to 5 _ 2 sit something that competitors would have a hard time duplicating? The third test is, is it something that could provide agatewaytonew® 2.Can we imagine ways of exploiting this in other markets? Ift meets those three tests, it's probably a7 14 BUSINESSLEADER BRIEFINGS 4 Bung brands ‘oereonEdvesCOMIC LEADER) Corporate responsibility Carn STEEL @Over the last few decades in particular, business has come to realise that its success in the future olso depends on maintaining a healthy environment. Vernon Jennings 4 Read the title and the quote above. Why must business act responsibly towards the envionment? 2. Read about the organisations. in this programme, Sustainability Is a strategie management consultancy. It works with bigname companies (e4, BT, BE, Electrolux, 101, Shel), government and on-governmental organisations, Sustainability ‘helps them to find solutions which are socially and environmentally responsible as well as profitable. me Body shop | ero oe oy Sop sated if 0 on rey oe Bngiand Sn 1076, snc tn Dae sa we nt The ody Shop Snernations] cone nate rls ota fr teal SEPT. Deck or orang ingens eaing Re portanities with communities in need of RelP. Video vocabulary Underline the words which explain the words in bold. Companies need to take full account of thelr a) sharehalders' interests, as the owners ofthe company, but they must also respect the wider interests of their b) stakeholders, that is their customers, their employees and the community. Business uses c) natural capital ~ timber, plants, minerals for example ~ and d) man-made ‘capital in the form of stocks, shares and cash. Environmental activities such as waste management and recycling create jobs, they are ©) job-generating. Companies cannot afford to use up the earth's resources that can't be replaced, they can’t £) squander the environment’s g) non-renewable resources. Government b) regulation forces companies to take responsibilty fr environmental damage. fa company breaks the rules, action wil be taken agaist it. 1) A’good corporate citizen’ is a company that behaves responsibly. ts difficult to account for the time spent by a manager thinking about environmental obligations. You can't really ) puta price on that. The Body Shop took avery strong K) stance against animal testing in cosmetics. They made their position very clear to everyone. (EMIT 0 reson edveston inte 2000 BUSINESS LEADER BRIEAINGS 5 Corporate responsibilty 15,LEADER Ce on @ CD before you watch each segment read the questions. Then watch the video and BUSINESS LEADER BRIEFINGS § Corporate respensibity answer the questions. Segments 4 Whyare companies paying more and more attention to their environmental responsibilities? 2. Why is itimportant for business to maintain a healthy environment? 3 Business and the environment work on different timescales. What are they? © Do you agree that the nature of business is short-term? Segment 2 EGETETET) 1 How does Prince Sadruddin Aga Khan describe the environmental sector? 2. Which ofthese opportunities does he mention? a) recycting O Olesstoxicfuel —@) innovation C1 by cleaner engines (1d) savingenergy C) fuel efficiency CI 3. What will happen to companies that ignore their environmental responsibilities? 4 Which industry does he mention that is taking note of the environment? ‘© Canyou think of another industry that is environmentally aware? Segments EEEOEOXA 1 Who pays forthe costs of caring for the environment? 2 What example of interalised costs does Vernon Jennings give? ‘© What should happen to companies that ‘chuck out their wastes at zero cost’? Segment 4 4. How do companies account for the costs of being ‘good corporate citizens’? 2 Whatare the effects of being a ‘good corporate citizen’ Inthe long-term? © Isitina company's interest to be a‘good corporate citizen’? Segments (EEA 1 How does The Body Shop show it isa ‘good corporate citizen’? 2. Inwhat area hasit taken a strong public stance? ‘© Is The Body Shop right not to take a public stance on medical testing on animals? Talking points oo ‘© How will the relationship between business and the environment develop? ‘© What benefits result from ‘good corporate citizenship?” ‘© Who pays for corporate responsibilty towards the environment? Calc ess forum Discuss these questions. 1. Is enough action taken against companies that damage the environment? 2. ABody Shop campaign led to a ban on testing cosmetic products and ingredients on animals in the UK. Is it usual for pressure from within an industry to influence government policy? © Fearon Eduction Lined 2000ROI reset sucaton tinted 2000 {porno nrioionss um Se Citi rar ED Watch the following clips and complete the interviews. 2 Vernon Jennings: Over the last few decades in particular, business has come to realise that Its success in the future also depends on maintaining a healthy * It's using natural capital as well as man-made ? , Ifyou like, finances, natural capital: raw materials, (erm) plants and animals. So (W's... business is increasingly seeing that it has to look after that side of things as well. One of the problems, of course, is the (e)3__+__nature of (of) business and (er) when we're ‘onment, we're talking of something that's very #_ = Prince Sadruddin Aga Khan: The (e1) environmental field produces enormous 1 for growth, whether it's for recycling, cleaner engines, (erm) saving energy, uel efficiency etcetera etcetera, and therefore it'sa®__ —_____ sector. &) there's an enormous amount of money that's be made now out of recycling, 3 and whatnot. So basically | don’t think that the the two (the two) are contradictory, (ein fact they work together. Ecology and economy hhave the same root and | think this is something which today's economists are very much aware of. You cannot continue to (et) basically (er) 4 the environment, non renewable sources and hope that you're going to achieve growth. What will happen to the firms that do this, is that they will very quickly become 5 ‘and this is why in many industrial sectors including the automobile industry (en) .. the environment is taking on an extremely important dimension. 3 David Wheeler: At The Body Shop it’s very very difficult, because how do you (er) s __every hour that’s spent by a manager (ef) thinking about their environmental obligations and their part ofthe operation, it’s very very difficult. (Ef) what you can do, of course, is? certain tangible things like (er) how much the corporation gives to charity, (ef) you can measure how many hours are volunteered in the local community. You can measure certain things and capture those and publish them, so that's an important thing to do. (1) but if you look at the evidence what (what) is clea, is that companies which dobehaveas3*_ +, that are stakeholder.inclusiv, i. they do look after the interests of their customers, their employees as well as their 4 actually in the long- term, they perform better. (1) a number of studies have been done in the US in recent years Which show that-companies which don’t just put short-term 5 = first actually add more long-term shareholder value. BUSINESS LEADERBRIEFINGS 5 Corporate responsiilty 17 meee gepreenatermeeCOETLEA DER] Innovation | Before you watch | POC L 6... how do you change your business when information. is now availabe to you very readily in massive emounts end you have the ability to compress and understand that data. Jeff Sampler 4. Read the title and the quote above. How has information technology and the Internet changed the business world? 2 Read about the companies and interviewees inthis programme. | Jeff Sampler Jett Sampler 1s Associate Professor of Information Management at the London Business School He also has research and teaching experience froin the University at Pittsburgh, He was formerly @ Programmer and software planner for I3t 7 - smnis US company was founded by Llchas! Dell Toes wit 61,000. Hi innovative idea mAs 2 9 reeporers dived to the customer, cuting Out the serigman. He is now Chairman and CHO (Ohi rowutive Officer) of this fast-growing direct es uel alow Del os a pan re ose Taha nos of comps et a cana wes we ATO: ria nes apt net Amazon.com Hecantats founded Atazon cm in 1005 angauatteved in the US, i ells a range of 5 onlin, 6g, books, CDs, videos Debs, TDanmerclal seller of computer systems. Video vocabulary Match these expressions from the video tothe definitions. a) ameansto an end ) massive 8) choice 1) one-click shopping ©) compress ) online @) convenience D. resource ©) data ¥) selection f) direct system Definitions 1 avariety of things to choose from (two words with this meaning) 2 away ofgetting a result 3. huge, enormous 4 information 5 making things easier, meeting users’ requirements 6 selling directly to the customer 7 something such 2s skill, people, information that a company can use to its advantage 8 tomake smaller 9 when you shop on the Internet and click once on your mouse to buy 20. directly connected to a central computer or database USINESS LEADER ARIEFINGS & Ionovtion Pearson EduetioKa Cy © © Before you watch each segment read the questions. Then watch the video and answer the questions. Segments (EEYETET) 1. Why do companies have to innovate? 2 What area of innovation does Ros Childs mention? 3. What two developments have created new business opportunities and new ways of doing business? 4 What example does Jeff Sampler give of everyday technology that meets our needs? 5 Which ofthe following does he say about information? 4) itis a very powerful resource CO] b) itis available very readily 1 itis available in massive amounts d) business has the ability to compress it and to understand it C) Oo 6) there is too much of ‘© Do you think that information is a powerful resource? Segment2 USCRTETS 1 What innovation has brought benefits to business? 2. Because of this innovation which of these can Dell offer its customers? a) customer choice and convenience CI D)anexpanding range of services C] 0 direct selling to customers C) @) deluxe models CI €) customer intimacy C2 A lower costs 0 3. Which future markets does Michael Dell mention? 4 Which existing markets does he mention? © Would you prefer to buy a personal computer via the Internet or from a shop? Seamen's 47.35-48.28 There are many advantages to buying books online rather than going to a bookstore. Which of these does Jeff Bezos specifically mention? 2) not having to drive and park C) b) massive selection of titles CI ©) shopping made easy C1 @) prices are lower ©) saving time 2 How many titles does Amazon.com have? © What advantages does buying at a ‘physical-world’ bookstore have over buying online? ERE restsoneeveston uted 200 BUSINESS LEADER BRIEFINGS 6 novation ’LEADER 1 2 BUSINESS LEADER BRIEFINGS 6 novation Pears Segment 4 1 What percentage of Del's online sales are in countries outside the US? 2. What percentage of sales are online in 2) Canada? ®) Japan? 3 What does Michael Del predict for the future of sales online? ‘© Do you think Michael Dells happy with the way the business is developing? Seqments (ETE 1. How much of Amazon.com's business is online? 2 By knowing what their customers enjoy, what will Amazon.com be able to do? ‘© How can online stores know what their customers enjoy? Segment 6 1 Tobe successful in today's fast-changing business world what must companies do? © Do you think there are any types of company that could survive without using the Internet? Talking points oa ‘© How do businesses use information and technology to innovate? ; ‘© How does the internet change the relationship between the company and the formation be used as a resource? am Stu Discuss these questions. 4 Do you think business is suffering from too much information? 2 Dell and Amazon.com have grown extremely rapidly and become very successful. Why do you think this is? 3, What future innovations do you think there may be in business in the next a) five years? by ten years?[TIEN © reson eesti ied 2000 BUSINESS LEADERBRIEFINGS Ginmovation 24 IERTNLEAOER) CK Cea} ©} Watch the following clips and complete the interviews. he interesting thing is how do you change your business when information is, that is now available to you very readily, in 2 amounts, and you have the ability to?__and understand that data. How do you change your business when you have that amount of resource to start to organise around? ‘Michael Dell: We've taken the * all across the world, (e) we're going to open up in China and in Brazil, we've had great success in Europe and Japan and most ofthe key markets in Asia, We're also expanding our? + including asset management, leasing, and using the 3 asa way of building intimacy j with our customers and also 4 of doing ‘ business for both ourselves and the customer. : 3 i Jeff Bezos: In addition to the * of not having to drive and park and z 50 on, some of the advantages of Amazon.com = things like 2 we have more than three million different titles at Amazon.com which is more than ten times the selection you'd find in even the largest physical world stores. We have (ef) 5 3 shopping’ which makes the shopping experience incredibly easy. Our prices are # , even after you include shipping charges, you save money relative to physical-world stores, 4 Michael Dell: About * % of our (of our) sales onthe Internet ae ouside the US, And wee seelng the Same acceleration In Intermet demandin?__ = nCanada, and Japan infact, in Japan over > of our sales to consumers are online. n Canada we're seeing about ‘ af our sales to consumers onine so we'e seeing itbe more of a global effect, not just a US phenomenon. We did have some (some) days in the peak ofthe sling season atthe end of ast year where we sold over _ "_dolarsa day, s0 we think nthe next couple of years over alfof our business wil go online 5 Jef Bezos: The future, overall i, I believe, going tobe In large part about discovery, making it easier for people to find the things that they're trying to buy*__.Thisis actually very very similrto, you know, the times gone by of a small-town merchant who ‘would know his customers intimately. We have the opportunity as a (@s a er a a) online store to1notonly know our products on sort ofa? basis, but to know our customers in a deep way, on a? basiVideo script 1 GLOBALISATION Dick Brown The word is globaising and the telecommunications industry is becoming more and more sobal Percy Barnevik: We have now for ten years ater our big, merger (er) created a global glue where people are tied together where they don't internally compete, but support each other, Ros Childs: Globalisation has been one of the most lmportant factors to affect business over the last twesty years, But what is globalisation? How ist diferent fom What exlsted before? Companies used to export to other parts ofthe world fram a base in their home country. Many ofthe connections between exporting and importing ‘ourtries had historical basis, Today, tobe competitive, companies are (ooking for bigger markets and want to ‘export to every country. They want ta mave int te global market. To do this many companies have set up local bases In diferent countries. In this programme we hear from two chief executives how thei companies deat with goin global. Pecey Barnevik, one ‘ofthe world's most admired business leader, when he was CChaiman ofthe Intemational engineering group ABB and Dick Brown of telecommuniations provider Cable & Wireless. Cable & Wireless already operates in many counties and Is wel placed to take advantage of the increasingly global ‘market fr telecommunicatons asked Dick Brown, ‘What is globalisation?" For him it involves the economies of countries being connected to each ‘other and companies doing business in many more counties and therefore having multinational accounts Dick Brown: The wotd is globalising and the telecommunications industry s becoming more and more (Glo) global, and so we feel weve (we're) wellpositoned in that market place. You see cutrency markets are more slobally tied, economies are globaly connected, more so nowadays with (with) expanded trade, more and more multinational accounts are doing business In many, many more countries, Wee a company at Cable & Wireless now, well positioned to carry the traffic and to provide the services to more and more companies that now need to get to ive countries ar swolve counties or twenty counties, ete often there Ros Childs: When Percy Barevik became head ofthe international engineering group ABB his task was to make slabaisation work He decided to dhide the business into ‘over a thousand smaller companies. In this way he believed ‘the company could be both global and local. In answering the question “How do you make globalisation work?’ Percy Bamevik describes the elobal glue" that keeps the many itferent people in ABB together. He then looks atthe need tomanagetthe three contradictions of the company: itis decentralised but centrally controlled it is big and small at the same time and itis bath global and local. 22 BUSINESS LEADER BRIEFINGS Video spt, Percy Bamevik: We have now for ten years after our big merger (et) created 2 ‘global gue’ where people are tied together, where they don’t internally compete, but support teach other, and you have global leaders with global ‘esponsibility and your local managers working with their profit centes, and ifyou have the right, soto say, agenda for these people and the right structure, you can use a scale of economy ane your advantages of bigness but being mall We used to say you have three contradictions: decentralised and stil centrally controlled, big and small global and local and, of course, to try to make these contradictions work together effectively, then think you have a big organisational competitive edge. Ros Childs: Globalisation can bring advantages to 3 busines, but how does a company go global? Dick Brown ‘mentions three ways companies can achieve 'iobalness'. Firstly, companies can work together in alliances, Secandly, they can acquire or buy other companies, an thirdly they can grow organically by expanding fom their existing base Dick Brown: Wel, as you go global, and (and) a handful or ‘mare af companies are going to realy push aut, in my view, tobe truly global companies, and some of them, maybe al. of them, wil also work tobe local. Thay'ilbe local in chosen markets and global in thelr ability to cary their evstomers’ needs from continent Ato continent 8, We want fo be one of the companies that's both global and local Alliances are one vay to be global, i's not the only way tobe global you can acquite your way toslobslness’, you can organically grow your way to‘slobalness, you can have alliances which help you get (glo) global quicker, so you take your pic. Percy Bamevik: You have to start from the top with local people who understand language, culture and so on, and (ex I think inthis global wori where the East is coming up now, (er thats a winning recipe. Ros Childs: ABB clearly found the winning recipe, Its theory ‘of globalisation has become the company’s working practice. ‘So how do you make theory workin practice? Percy Barevik believes that successul globalisation involves geting people to work together, overcoming national, cutural barriers and making the organisation customer-tven. Percy Bamevik: You see the easy thing i to have the theory, but then to make the systems work, to make people really work together, to trust each other Americans, Europeans, Asians, fo get over these national (er) cultural barters and create a common glue, A88, and then make them customer: crven. if you can achieve that, and create that culture deep Gown then | think you have (er) a important competitive edge, Ros Childs: We've heard fram two companies why they believe globalisation is important for future success. Thelr views are shared by many other businesses throughout the worl. What Dick Brown and Percy Barnevk have shown is ‘that there are different routes to globalisation and that companies have to work hard ta succeed in going global. For those that do, the rewards are considerable. Feseon Eduction Lined 2000 SEEEETIES | t t b R tCENTRO DE IDIOMAS 2 LEADERSHIP a Jack Welch: The job of leader, whether tbe at NBC or any ater place, is give employees dignity and voce, allow them to iu) reach thei fl potential Mike Bloomberg: Asa CEO my obs to remove barriers, it's rot to come up with all the idess, no one persons that smart. Ros Childs: Once upon atime the boss gave orders andthe workers carted them out, Sometimes managers interpreted them along the way. This *op-downt or hierarchical model of business organisation has changed dramatically inthe last decade 0 50 responds oo slowly for today's fast-moving businesses. So what kind of ergonsationa structure is now needed? And how does today’s business leader help 0 shape it? The answers to these question ae povided by Professor Sandra Dawson, directa of the Judge institute of Management Stuces at Cambridge Unversity and the two chief executives we've just seen~ lack Welch, ino 35, Chairman and Chief Executive transformed General Electric into one ofthe word's mast admire companies, and Mike Bloomber, founder of the fest moving business information service, which bears his name Ros Child: Fst, we asked Sandra Dawson what isthe best management structure for businesses? Professor Davson believes that structures are ust tools or instruments to improve the business. She thnks that hierarchy ~ or top- ddoun management isnot the rght structure for businesses wich are tying to encourage employees to use their own ‘ideas, their intatve, in nding solutions. Employees now hhave the power ar discretion to decide wiat they should do She believes thatthe peopl tthe tp dort hae al the answers there i, she sys, no monopoly of truth and right. Sandra Dawson: | don't think theres one best way of ‘managing anything. You have to think very carefully about what's the nature ofthe task and how can that best be achieved. Structure are lust tools to enable you to do your business better. The reason why there's alt of changes because hierarchy i notin the main the best way for organising businesses tet requir alot ofitiative and a lot af discretion throughout te organisation nother words, for businesses where you know there sno monopaly of ruth and right and the ight solution atthe top. Ros Childs: We then asked Sandra Dawson what she thought the role ofthe business leader was in this new structure. She ses leaders as people who clealy show what the company stands fr ~espaying the values. They must Gecide what the company wants to do~ giving a sense of direction. This is especially important in companies where there is distributed leadership, that i, where major Gecisions are taken a al leveis throughout the company. ‘And leaders have to ook ouside the company ats competitors andits customers ~ scaning what's going on. They should make sure the company knows what customers wart, that itis‘ in with its customers. Tey should also be aware ofnew technology and employ specialists to develop new ideas. Sandra Dawson: think displaying the values of an rgaristin, na just by speaking them bu by acting ther, isertcally important. think ging a sense of rection is vital because f you have mor distributed leadership if you have many people with discretion, you still need to have a CEES © Pesan suction ited 2000 (TGGLEADER ‘common focus on what's the long-term direction ofthe ‘organisation. So stressing the values, giving a great sense of irection, and also scanning what’ going on outside because people can become very much focused on the requirements of doing the job today, particularly inthis very competitive world, and therefore knowing what's going on outside, making sure that you'e ted in with customers, looking to the Ftute oF new technology, making sure youve got very good specialists working with you with whom you can take ideas and develop thos, that's what thnk the leaders now need tobe. Ros Childs: We then asked two CEOs the same question "What isthe cle ofthe business leader?” Jack Welch say i's to give employees dignity and voice so that thee ideas are listened ta by management, Leaders should encourage employees to use their abilities to the Fl to reach their full potential Jack Welch: The ob ofa leader, whether it be at CNBC or any ‘other place is give employees dignity and voice, allow them to) reach their full potential, they cant do that ina ‘command and control superstructure, They can do that when you get al that trappings of management off ther back. Ros Childs: Mike Bloomberg describes his objectives as (CEO: one ~ to remove bares to communication, two —to create a meritocracy where people withthe greatest ability have the greatest rewards, and three to encourage the flow of information within and outside the organisation. Mike Bloomberg: As 2 CEO, my jb isto remove barriers, i's not to come up with ll the ideas, no one persons that smart and there's no reason to think that !am any smarter than anybody else. (E) but my job to make sue ideas getup to the top, my (e objective is, my responsibilty isto make sure isa meritocracy, that those that putin the time and do better get compensated better than everybody else, And So | try to remove things that would impede the flow of Information, Nobody in our company has a private office don't have a private office. ‘Why not me” Wel, number one, | want the communications, and number two, i's very easy for me to say ta you, “You don’ get one if 've given up mine. (E2) we don'thave walls, we don't have...) conference rooms have slass walls and there's alot of places on’t have doors on them. (E:) we encourage people to come in at the same oor, the (e) employees’ (e) snack bar 's right when you walk in the door. We ike our customers to mix with our people, we encourage people to run races together, have penis together, anything can do to get different parts of the company to talk to eachother. We don’t have tte in our company, tiles are another one of those things that would keep people fom taking, and don’t want those things. Ros Childs How does an organisation have to change to respond to this new management style? Jack Welch thinks you have to flatten the orgaisaton. This means taking away the various levels that exist In hierarchical management structures ls important, he says, to move batters or impediments that would stop people from leaning new ‘ways of doing things. Companies must also act quickly to inttoduce these changes. Jack Welch: The Business Managers the leader ofeach of ‘these businesses. So what we tried todo was flatten the ‘organisation, break down the vertical wal, so that an BUSINESS LEADER BRIEFINGS ideoscrpt 23 2 e e = amesMARKET DUE organisation can lear, (et) and an organisation can be quick you believe in speed, and you believe in earning, you've got to get al the impediments to those things out of the system. Ths a game where you change allhe tine, you're atways learning, you'e always looking, we don't have allthe answers by any means, but we have the mast (we have the most insatiable appetite to learn. i's in our culture, itis today the biggest change in our company: finding what others are doing, teaching it, adapting it and then diving I Ros Childs: So today’s business leader spends more time lstening to people than giving them orders. Leaders have to look for opportunities to lear fom others to adapt ideas to thelr own organisation and to introduce changes very ‘quickly. 24 BUSINESS LEADER BRIERINGS. Video sc3 MANAGING PEOPLE Percy Barnevik: At the end ofthe day, you have to have an ‘understanding for other people's way of behaving. Stafford Taylor: The key role of management isto coach their people Ros Childs: The success of a company depends onthe ideas, abilities and decision-making of the people who work fort. How do you manage people to get te best out of them? What responsibilities does management have towards its employees? We asked two leading business figures how they manage people. Stafford Tayior was Managing Director of Personal Communications at BT, Britains major telecommunications company. Percy Barevik, former Chairman of international engineering group ABB, is now ‘Chairman of Investor, ABB's holding company. ‘Sandra Dawson, Director ofthe Judge Institute of Management Stodies at Cambridge University provides an academic perspective n ferent organisations there are different management styles, What are some of these sifferent management siyes? Stafford Taylor talks about the traditional command and control management style where orders are passed down through the company, He thinks companies need to hand over responsibilty to their employees and encourage them to make thelr own decisions and act on them. ‘Stafford Taylor: | think you need to look at the kind of different styles of management, (t) and we have in this country, certainly in the UK, in many, many businesses stil kind of command and contro style of management and what | mean by thats that srt ofthe senior management have. ‘through some ultimate wisdom with wiich they happen to be gifted, decide exactly what’ going to happen throughout the company and they set aseles of commands .. how the ‘company's going to move forward, And that these commands then get moved, thrown down the organisation and people are then asked todo precisely what they are told to do. AS faras is possible, and as far sis practical, you know, we should leave it to our employees to, you know, to take ‘ownership of (of) decisions, ownership of problems, and resolve those problems, and, nthe man, they do. mean cortainly in my own organisation | reckon 98, 99% ofthe people are very responsible Individuals that wil get on and help you manufctre an el products and senees He | ‘explains that companies need to change the way they do | business now they can manage ver large amounts of information better because of dats compression. Jeff Sampler thnk ne most important challenge ifr Compariesto rele thatits nt about techroiogy hats scthsis mean). When you thnk that ecology some “oly ge wiz thing. you've ost the batt. mean, you rw, en you go tthe reigeatr and open te door you don't think Won cl food you tink you jest natural know thas what refgerstor des think inereasnaly you have view technology does what does. The teresting things ow do you change your business when infermation is avery pert resource that sow avaiable to you very teal, in assve amounts, and yu have the abit fo Compress and understand that dts Hw do you change Your business wen you have tat amount of resource Sarto organise around? Ros Childs: The terat hascrsny proved itselfas@ imeos of handing age amounts af information What Benefits does iri to business? Michael Det looks tothe | Internet to offer is customers choice and convenience. | can offer them an expanding range of eres such a8 france and constancy a5 wel a5 seling computers det. tals ves Del a ase and mare personal lationship wits customers and has helped to reduce sow costs and the pret the customer Iicnae Del Weve taken the det system al seas the word (were going to open up in hina and in ra we've bad great sucess in Europe ad Japan and most of the key markets in Aa, Wee lo expanding out services, including assat managemert easing, ara using the Internet 35 away of ulingimimacy wth cur eustomes and also [ETITIELITY © ears evcatontirted 2000 LEADER, lowering the cost of doing business for both ourselves and the customer. f Ros Childs: Jef 6e20s too sees cst benefits and the greater & ‘number a selection of titles an online store can offer. This é provides customers with more choice. Buying I also easier because of one-click shopping’ and lower costs to the Jeff Bezos: In aston tothe convenience of nat having to rive and park and son, some ofthe advantages of ‘Amazon.com ~ things tke selection; we have more than thvee milion different tiles at Amazon.com which is more than ten times the selection you'd find in even the largest physical-world stores. We have (e) ‘one-click shopping? Which makes the shopping experience incredibly easy. Our i prices are lower, even after you include shipping charges, you save money relative to physieal-worid stores. z Ros Childs: The Internet enables companies todo business all ove the world. What tends does Dell see in online sales t futside the United States? ¥ Michael Dell: About 17 to 20% of our (oF our) sales onthe Internet are outside the US. And we're seeing the same acceleration in Internet demand in Western Europe, In ‘Canada, and Japan; in fact, In Japan over 0% of our sales to ‘consumers are online n Canada we're seeing about a third of our sales to consumers online so we're seeing it be more ‘of global effect, nat usta US phenomenon. We did have some (Some) days in the peak ofthe selling season at the fend of lst year were we sold over sx milion dollars a day, so we think nthe next couple of years ove haf of our business will go online. Ros Childs: Amazon.com's business is already 100% onlin, 2 Whats the future of online shopping? Jeff Bezos believes its about discovery and making It easier to shop. Online stores an get to know their customers individually on a customer by customer basis. They can suggest things they would ike to buy, match produc to customers, by krowing what they enjoy. ¢ Jeff Bezos: The future, overall isl belleve, going to bein large part about ciscovery, makin it easier for people to find the things that theyre trying to buy ontne. This is actually very very similar fo, you know, te tes gone by of a small town merchant wh would know his customers intimately, ‘We have the opportunity as a (2s aer asa) online store to not only know our products on sot of 2 product by product. basis, but to know our customers ina deep way, on a customer by customer basis. So that then we can match customer and product perfectly. So itis just as you went into an (a) old-time store and the merchant said ‘Hey, you keno {know you love fon trving, there's this new author we ‘know you're going to love’, and he hands you the book. Ros Childs: Using information and technology to innavate and keep ahead ofthe competition is top prot for business today In fac, t may provide the key to survival As Jeff Sampler said: Jeff Sampler: f companies wat onthe sidelines til there's 3 : Clear market signal wth how they should be responding, the § battles over. They have lost and therefore they must start taking risk, learning, adapting today. BUSINESS LEADER BRIEFINGS Video script 29Answer key CSIRRALEADER) 1Globalisation Video vocabulary al 2f gh 4d 5a 6e 7e 8b 98 Video on Segment: 1 Ithas become mare global Companies used to export from a home country, but now have local bases in many countries. 2. Telecommunications industry, curtency markets, economies elobally connected, expanded trade, multinational accounts. 3. They are well-positioned in the slobal market. © Suggested answer: it makes fast worldwide communication possible. ‘Segment 2 1 He divided ABB into over a thousand smaller companies so that the company could be both global and local 2 Itis what keeps the different parts of the company together and means that employees support each other, rather than compete with each other. 3. Global leaders and local managers. 4 Being decentralised but centrally controlled, being big and smal, being slobal and local. 5 Abig organisational competitive edge. © Students! own answers. Segment 3 1 No, just afew~a handful 2 To bea company that is both slobal and local. 3 By forming atances, by acquiting other companies, by growing organically © Growing organically. 20 Segment s 1 Because they understand the language, the culture, etc. of the country. 2 The theory. 3 Making the systems work, getting different nationalities ta work together and trust each other, having 2 ‘global glue, and making the organisation customer-driven © Students’ own answers. Word for word 4 tis globalising 2 globally connected 3 well positioned 2 1 global glue 2 global leaders 3 contradictions ‘4 local 5 competitive edge 31 global companies 2 customers’ needs 3 Alliances: ‘acquire 4 4 language, culture 2 winning recipe 5 3 theory 2teust 3 national, cultural barriers ‘customer-driven 2 Leadership Video vocabulary Management structures: a) ) 0) Tasks ofaleaden do) 1) Video on Segments 1 Itis 00 slow for today’s fast-moving business world, Itis not suited to businesses which need employees to use their Initiative and take decisions themselves. (© Suggested answer: there are still many organisations that are hierarchies. BUSINESS LEADER BRIEFINGS. Answer Key Segment 2 4. Allofthem except o. (© Students’ own answers ‘Segment 3 2. To glve employees dignity and voice, to allow them to reach thelr full potential 2 Ina command and contrat superstructure. 3. Toremove barters, to ensure ideas get tothe top, to make sure the company is a meritocracy. 4 There are no private offices, no walls or only glass walls, many places do nat have doors, no tiles. © Suggested answer: helps communication, Segment 4 1 So that an organisation can learn ‘and be quick 2 Change. (© Suggested answer: becaus things are rapidly changing all the time. Word for word 4x structures 2 hierarchy 3intiative ‘4 monopoly 2 1 potentiat 2 command and control 3 1 remove barriers, 2 smart 3 meritocracy ‘flow 4 vittles 2titles 51 flatten the organisation 2 speed 3 impediments 4 change 5 appetite to learn‘3.Managing people Video vocabulary Suggested answers Positve:a) 9 dd) 9 0D Negative: b) fh) Note: 1), for example, could be seen also as positive iit leads to learning from your mistakes. Video on Segment s 4. Command and control 2 Take ownership for their decisions and solve problems for themselves. © Students’ own answers. Segment 2 Reducing the workforce. ade f “Managers with empathy. Coaching ther people. ‘They should be encouraged to lear from their mistakes. There shouldnt be immediate disciplinary action or censure. (© Reducing the workforce and dealing with people when they have made mistakes. Segments 41 Financial package, the possibilty for advancement and development, context 2 They are quicker, they can add value and sustain the business © Students’ own answers. 3 4 . 4 Building brands Word for word 1 styles of management 2 command and control 3 commands ‘employees 5 ownership 6 responsible 1 coach 2 encourage : 3 make mistakes, ‘censure 5 best practice 2 understanding 2 contribute 1 financial packages 2advancement 3context ‘tools 5 motivate Video vocabulary a1 ba cs d7 e8 f2 £6 ha ig Video on Segments Ithas changed its local brand names to the global brand name of Cable & Wireless. Thicty-seven The brandis a means of identification but this is not the most important hing. ao of Students’ own answers Segment 2 2. All except o) and Financial services. ‘They sold direct tothe customer. Students’ own ansiners, (IEEE AER) Segments 1 sappeat to young people. The way It transforms ‘stodgy’ or uninteresting businesses. 2 Does it create customer value? Is it fiat to imitate? Does it provide gateway or opening to new opportunities? 3. Allescept 4 Disney's core competence of sion-teling and character development (@ Students’ own answers. Word for word 4 a understated identity 3 brand name badge 5 personality 6 quality of care 21 product 2 setof values 3 challenge ‘4 common sense 3 ¥ competence 2 stodgy 3 fundamental tests ‘customer value 5 imitate 6 opportunities 7 core competence ‘Corporate responsibility Video vocabulary 1) their customers, their employees and the community ©) timber, plants, minerals 9) stocks, shares and cash ©) create jobs 1) touse up @) the earth’ resources that can't be replaced 1) rules 1 is company that behaves responsily D toaccount for 1) position BUSINESS LEADER BRIEFINGS Answer Key 32 I Re GUN RE I RR See RR RCA ROR TRVideo on Word for word Segment: 1 1 Governments have introduced regulations, customers expect ‘companies to act esponsibly towards the environment, 2 2 Business depends on the 2 environment 2 capital 3 short-term 4 long-term 1 opportunities 2 job-generating trvonmentforratateapta, | 3 ase 3. Shortt for busines, 4 squander long-term for the environment. 2 7 © Sugsetedansner more ang |? 4 acount ‘more companies are lookingto. | 3 ond ope ens the long-term, ‘4 shareholders seanents Ssheeoieraue 1 As aj enratig sect 2 Allexcept c) and e). ‘6.Innovation 3 Wt Aerial ‘dinosaurs’ and | Video vocabulary 4 The automobile industry. | Peers — © students’ ovm ans — Wéeoon 1 The product Scares 2 The cost of packaging and 1 recovering packaging. © Students’ own answers Segment 4 2 1 Itis difficult for ompanies to account for this, some things can | 5 bbe measured, others cannot. 2 Inthe long-term companies 4 perform better, : © Suggested answer: yes. It i. involves costs, but there are They need to find new ways of doing things to survive because the business environment is, changing so rapidly. The collection and management of information Information technology and the Internet. Atefrigerator All of these except e). Students’ own answers, benefits forthe company and the | Segment 2 environment. : Segments 2 3 By speaking outon issues it 3 believes in. By listening to all 4 stakeholders and positioning . itself in society accordingly. 2 Against animal testing in cosmetics © Students’ own answers, but consider that medical testing on animals does not affect the cosmetics industry 32 BUSINESS LEADERARIETINGS Answerkey The Intemet. Allof these except China, Brazil Europe, Japan, Asia Students’ own answers. Segment 3 All ofthese except More than three milion. Students’ own answers, Segment y 17-20%. 2) About 33% (one third). b) 50%. Over half ofits business willbe done online Yes. Segment s 100%. Mateh customer te product Suggested answer: from data they collect with each customer purchase. Segment 6 Use information and technology to innovate and keep ahead of the competition. Take risks, learn and adapt. Students’ own answers. Word for word 1 powerful resource 2 massive 3 compress 1 direct system 2 services 3 Internet 4 lowering the cost 1 convenience 2 selection 3oneeclck ‘lower ai7toz0 2 Western 350 aa third 5 sb milion online 2 ploduct by product 3 customer by customer rope Centro de Idiomas Universidad Eafit Hi tH) nN 6