| Communication Before you read ‘Think about the biggest company in your country. What i its reputation? Reading Read the article fram the Financial Times by Paul Argenti and do the exercises that follow. EL Time for communication to move towards centre stage Paul Argenti “The last few years have seen the big- integration, collaboration and pa- companies that ignore evolving zest collapse in confidence in nershipamong corporate leadership, __social values. JPMorgan Chase has Dusiness in almost acentury~tothe human capital, finance, sales and done a fabulous job reflecting its point where probably the least legal teams. corporate responsibility initiatives ‘5 trusted spokespeople on the planet as Another change in communica- «5 on its website and in advertising, today are corporate executives. tion by leading companies is the eStratogy must drive communi- When intense mistrust prevails, rethinking of key themes. This was ation As Jon Iwata, IBM's senior whatever a company docs says the main finding of research by the _vice-president for marketing and something about it,everything com- Tuck School of Business at Dar- communications, puts it: “Lincoln 1 municates, and communication « mouth, conducted with Doremus, 2 7 said, “Character is the tree; reputa- affects everything. business-to-business communica- tion isthe shadow.’ I’m afraid too ‘This is changing the definition of —_tions agency. It found that the many people in PR, marketing and communication. Communication best-in-class companies have been advertising spend more time manip- day is more ofatwo-way dialogue guided by six themes: lulating the shadow than tending to 1s and tis hasbeen sided by theriseof 4 a Focus om value and values 75 the treo.” social media like Facebook and Stakeholders demand value for ‘d Shifting from the problem to ‘Twitter and the explosion of infor. money when buying goods and ser- the solution. Stakeholders are most mation-shating online. Today's vices, but they also expect t0 see a receptive to realistic and optimistic best-in-class companies, such as strong set of corporate values in the plans, and are often ready to pay 2» Dellinthe US and Philips in Europe, so companies with Which they do busi- «less attention to problems of the donot justengage in dialogue. They ness. Walmart, Hyundai and BMW past year. use the atest echnology as asource have used this theme in their adver e Not communicating is a com- of ideas, opinions and competitive tising and communications. ‘munication in itself You either tell intelligence, for product develop- 'b Evolve. sense of responsibil- your tory or have it tld for you. as ment, employee engagement and 45 ity Corporate responsibilty today is ssf Re-evaluate positioning, The media monitoring, not just about philanthropy or being crisis has led to disruption in how ‘In addition to rethinking the defi--_green, It is about companies being companies are thought of by con- nition of communication, the best responsible across all business prac-_stituencies, which provides a ‘companies are rethinking its strue- tices. NGOs, consumers employees tremendous opportunity to reposi- wo ture, There is a greater need for and investors are ready to punish so tion, rebrand and redevelop. 114 © Pearson Education Limited 2011 pworocoPiasLe RH OnnanannanannnnranmrannarntrnrnrannmanranmraaaAerneaAanwewwwrvvervnwvnevwowvewvvvevvvevvvvvvvwvvvuvuvuds 1. Find words from the article (lines 1-44), and related words, to complete the table. Verb Noun collaborate collapse define engage explode find prevalence research 2 True or false? (lines 1-44). 4) Thereis great mistrust of companies at the moment. 1b) When there i mistrust, everything that companies dois misunderstood. 9. Corporate communication is seen as increasingly two-way, 4) The best companies have just continued to use their traditional public relations departments in order to communicate. ©) Inthelr new approach to communication, companies have been paying attention to five things in particular 3. Find expressions (lines 45-65) that refer to the following: 4) a subject that can be used indifferent forms of communication (5 letters)) 1) what people expect when they buy a company’s products (5 letters) what they expect to see as guiding a company’s behaviour (6 letters) ) employees, shareholders, suppliers and, above all in this context, customers (12 letters) ©) giving money to charity (12 letters) f)_ having good environmental polices (5 letters, 5 letters) {things that society as a whole thinks are important (6 letters, 6 letters) fh) actions that have not been taken before (11 letters) Phorocopiag.s © Pearson Education Limited 2011 TEXT BANK =» UNIT 4 Imagine company board meetings where directors say these things (1-6). Which point a-f (lines 45-90) is each director most closely referring to? 1. ‘We have to have a press conference and be open about our quality problems ~if we don’t talk about it and journalists get on to the story, we're in big trouble!” 2 ‘Our customers are getting real value for money when they buy our products, and they also have the reassurance of knowing they are dealing with «a socially responsible organisation!” 3. ‘We mustn't let this crisis go to waste! It gives us the chance to reposition ourselves as the most environmentally aware energy company in the world, 4 ‘Corporate social responsibility isn’t something we can just leave to the CSR people — it involves all ofus!” 5. ‘Let's not keep talking about our past problems. Instead, let's look forward to the exciting new possibilities that exist for the future!” 6 “There's too much emphasis here on public relations and slick advertising. we behave responsibly, our corporate image will take care ofits? 5. Choose the best summary for the whole article. 2) Corporate communication is a speciality that is, best left to the PR department and advertising agencies. ») Everything a company does communicates something about it, and executives are becoming Increasingly aware ofthis, ©) Whatever company does, people will always misinterpret its actions, and companies just have to try to limit the damage. Over to you 1 “Lincoln said, ‘Characters the tre; reputation is the shadow. I'm afraid too many people in PR, marketing and advertising spend more time manipulating the shadow than tending tothe tree.” How frit possible to ‘manipulate the tuth about an organisation's character? Over to you 2 Think about your organisation or one you would tke to work for. In what ways can each department show that it is responsible? How can this be communicated? 1151 | Communication untr Before you read ‘ Do you tweet? Why? / Why not? Reading Read the article from the Financial Times by Jonathan Moules and do the exercises that follow. To tweet or not to tweet is a business question Jonathan Moules Is there a commercial use for social protested to Glasses Direct but had finding personnel, improving staff networking sites such as Twitterand used the phrase “glassesdirect” in _ productivity and finding new eus- Facebook? This is an important his tweet, which Carruthers tracked tomers. Vena Ramphal claims she question for many company owners, down through a search. “I found that would never have created her busi- who have found themselves devot” 35 tweet, saw he was a director of pho «8 ness venture, Divining Femininity, ing precious resources to keeping tography, so probably needed some without Twitter ~ because it was online followers updated through __specs.andtried to figureout what we through chatting on the network that Twitter tweets, while wondering if could do,” Carruthers says. Within a she hooked up with her co-founders, there isabotiom-line benefit to their couple of hours, Glasses Direct had Her success is all the more sur- 10 businesses 40 made a basic pair of replacement % prising since, as a relationship avid Carruthers, userexperience frames and had them in the Twitter- coach, she had avoided social net- manager at Glasses Direct, the _er’shands te following day. Working sites, believing that they online spectacles retailer, claims that But while such heroic tales of were inferior to face-to-face com- using Twitter is one of the most customer service can only help with _ munication. “I have been very 1s enjoyable elements of his working 4s Glasses Direct’ profile online, Car- 75 pleasantly surprised,” she says. Her dlay as it puts him in direct contact ruthers admits that Twitter is nota new business will run weekend with customers, “Luse it as an financially important area for the workshops for women to explore ‘engaging way of talking to custom- business. Alan Stevens, whoadvises different aspects of femininity. The ers,” he says, “We're extremely company owners on social media founders marked the launch with a 1» proud of our customer service here, 50 use through his business, Media tweet, and were surprised to have tnd this is another way of making Coach, says: “I have alot of exam- more than 300 people view their sure customers are happy,” ples of people who are using Twitter posting inthe first few hours. Twitter is an excellent way to incredibly well and thousands more provide immediate feedback to cus- that are using italy.” 2s tomers, according to Carruthers. He Even the founders of Twitter are cites a recent example where he famous for failing to come up with a fame aeross someone using Twitter Way to monetise their ingenious and ‘to.complain about not being able to addictive network. However, many get his glasses fixed before an companies use the technology 10 2» impoetant business trip. He had not «i solve business challenges, such as THETA negcemnentmeaneen FSET © Pearson Education Limited 2011 PHOTOCOPIABLE1 Match words from each column to make expressions from lines 1-22. 1. social line benefit 2 boitom- spectacles manager 3 user networking retailer 4 online experience sites 2 Now match the expressions above to the people and things mentioned in the article that relate to them. 2) an Increase in profit for businesses in general b) David Carruthers Glasses Direct d) Facebook or Twitter 3. Use appropriate forms of expressions from es 1-42 to complete these statements. 1 2) you spend lot of time and maney on something, that you could use for something else, you toit, b) something allows you to communicate with, people, it soem YOU. with them, 0) something is an interesting method for doing something, itis an of doing it. ) you are very happy with your achievements, you BFE seers sv rnees OF TEM. @) you reply straightaway to someone in relation ‘to what they have told you, you them with : you find something after a lot of looking, YOU server 8) you find an answer about the correct thing to do ina particular situation, you out todo, 4 True or false? (lines 43-68) Twitter. 2) ‘isthe direct cause of greatly increased profits atGlasses Direct. ») is used wisely by many people, but not all. ©) has made a at of money forts founders «) is used to solve four particular business challenges. ©) was used by Vena Ramphal to find partners for her naw business. 1) allowed her to found her business but she could have done it in other ways 2s well. TEXT BANK ++ UNIT 5 Find an expression (lines 68-82) that: a) ‘efers to making contact with people and doing things together: to someone. (3 words) 1) refers to something that is not just surprising, but especially so because of a particular reason, (4 words) Is used to describe something that is less good. than something else, (1 word) 4) is used to describe communication between people who are in the same room, rather than ‘ver the Internet. (3 words) @) ‘refers to a training course with active participants. (1 word) 4) refers to an occasion when something is seen or available to buy for the fist time. (1 word) @) means a message sent on Twitter. (1 word) Over to you 1 In what ways could Twitter be of use in your line of business, or a business that you are interested in? Over to you 2 \Will scat networking eventually replace face-to-face socialising completely? Why? / Why not?DINW LXaL Before you read hich do you think are the top ten brands in the world at the moment, in terms oftheir value? Make a list. Reading ead this article from the Financial Times by John Gappar and do the exercises ‘hat follow. EE LEVEL OF DIFFICULTY 9 @@ Big names prove worth in crisis John Gapper For companies whose financial value depends heavily on the health of their brands. the severity and abrupiness of the recession was a 5 challenge. The abruptness with which many consumers stopped spendin: large companies reduced capital investment, caused a shock te the system, Many compa- jes experienced not only the Financial erisis, but also a crisis of contidence. Marketers and advertising ag ccies preach the gospel that the ‘companies that emerse best out of recessions are those that maintain their marketing budget and protect bands when the going gets tough In practice, few companies were eer tain enough of the Future to comply. Yet som a the Doomsday scenarios about the value of brands in the post- recession world have not come to pass. Emerging trom the recession. % luxury goods companies and many other consumer brand companies are enjoying a eebound, value of any brand ~the premium commanded by prod ucts and services with strong reputations and identities ~ has not ‘been eliminated by the erisis. Even those companies that did not invest heavily in their brands inthe worst times are regaining some confi- denee. “Brands outperform in good times and when there is a recession they do go down, but they come out the other side with a sustainable ” says Joanna Seddon, chief executive of MBO, the organi sation that compiles the ranking The nature of brands continues to evolve. Technology rather than marketing is nov the defining char= acteristic of seven of the top 10 brands, with Coca-Cola, MeDon ald’s and Marlboro making. up the bother three. Google remains the world’s most valable brand, but ‘edging up close behind it are two ‘other technology companies, [BM and Apple. Both of these outran Microsol, whose brand value was stable during the year. The resu ence in Apple uider Steve Jobs, through the iPod. the Phone and now the iPad, continues unabated and, on present trends. it could be pressing Google for first place within year oF two, Thats tribute fo.a company that inspires devotion Tt may also be 4 refleetion of the ‘value of inspirational leadership. and the way in which consumers identify some of the world’s most valuable brands, such as Oracle and Starbucks, with founders who >» embody their qualities. Larry Ellison of Oracle and Howard Schultz of Starbucks are noc only the founders but keepers ofthe flame, The social media boom led by contpanies such 18 as Facebook and Twitter as well as the rise in smartphones led by AApple— has had a broader impact on the top 100. It has boosted mobile operators such as Verizon and "ATT, despite the complaints of iPhone users about AT&T's 3G ation limited 20LL pworocopiaate1 Complete this table with words and grammatically related words from lines 112, oun [adjective = abruat onfident healthy nance I severe | valuable 2. Now match the adjectives above to their meanings. 2) ingood condi 5) very dificult ©) worth aot of money 4) ‘eling good about the future ) very sudden 1 relating to money 3. Use forms of expressions from lines 13-27 to correct these statements. a) Ifyou say that something is true and that people should actin accordance withit, you preach the bible about it. ) sf conditions become difficult ina particular situation, the journey gets hard. ©) Aseries of very bad events that might happen is a fateful narrative, 4) A formal way of saying that something has happened is to say that it has come past. ©) fa company does well after a period of doing badly it undergoes a bounce. 4 True or false? (lines 13-42) ®) The value of brands was completely destroyed during and after the recession. ») Companies that did nat invest in their brands have been totally eliminated, ©) The value of brands goes down during recessions. ) Companies with valuable brands do better than those without in the long eun, TEXT BANK =» UNIT2 5 Which of the brand(s) mentioned in lines. 43-82 a) ‘relate to technology-based companies or their products? ») relate to non-technology companies? ©) is top in the rankings? @) is technology-based, and below three other technology companies? ©) are names of products related ta a technology company? have grown partly because ofthe success of other brands? 6 Find expressions that refer to (lines 43-82)... 4) the thing that people think about most in relation toa brand. (8 letters, 14 letters) b) aperiod of success following a period of decline. (10 letters) ©) makes you admire a person, brand, etc. (letters) 4) a feeling of complete admiration, respect, ete. letters) ©) company founders who are still building their companies. (7 letters, letters, 3 letters, 5 letters) ) companies such as Facebook and Twitter. Gletters, 5 =) Over to you 1 Look again atthe list of brands that you made before you read the article. Compare it with the answers to question 5. Were there any surprises for you? Ifso, deseribe them, Over to you 2 Which ofthe above brands wil still be important 10 years from now, and which will have declined? Give your reasons.unt 2 | International marketing Before you read What are the top soft dink brands in your country? Which ae international and which local? Reading Read this article from the Financial Times by Jonathan Birchall and do the exercises that follow. Coca-Cola targets more $1bn China brands Jonathan Birchall Coca-Cola already owns two of Pulpy Milky, entering a | billion- China over the next three years. China's three best-selling sparkling case market where competitors ‘Muhtar Kent, chief executive, tirinks but by 2020 it wants to have include Wahaha, Danone’s former ss noted that at a meeting with Wang our more Sn brands in what has 32 joint venture partner. Coke and Qishan, China's vice-premier for 5 become its third-largest market by Sprite already each sell more than economic affsirs, Coca-Cola had revenue, The ambitious target Sibn annually and Coca-Cola is been praised for being the only US fellects Coca-Cola's confidence that forecasting that its Yuan Ye tea brand company to have a pavilion at last its long-term plans to more than ti- and its Ice Dew bottled water—both «© year’s Shanghai World's Expo. Mr ple sales in China are secure both 5 launched last year ~ will also be ‘Kent says he regards the potential vo from domestic rivals and from $ibn China brands by 2020, in spite obstacles to Coca-Cola’s China potential political pitfalls. of facing strong competition from ambitions coming from broader Coca-Cola's revenues have grown Taiwan's Tingyi, which has about “political pressures as China's growth byacompound annual rate of 19 per half the total ready-to-drink tea could sill fll short of expectations. cent over the past five years and it +0 market. He does not see this, including the 1 elaims to be widening its lead over In terms of political challenges, _ threat of potential nationalist reac- its rivals. Itsaysithas double Pepsi-. the world’s largest soft drinks tion to Coca-Cola’s US brand CCola’stotal sales in China,supporied company sufferedablow thisMarch identity. “Everyone's walking inparticularby its stronger presence whenChina's ministry of commeree 7 around with Nikes, and drinking in till drinks, water and juices. The _« blocked its planned $2.4bn takeover Coke and wearing Oakleys. I think » company has also continued to of China's largest juice company, there's a difference between that and fexpand its range of non-carbonated —-Huiywan. Since the setback, Coca-_the view of the US ~ people don't drinks where itcompetes with both Cola has continued the kind of worry ataconsumerlevel,at a brand local and international brands, high-level commitment to China 15 level,” says Doug Jackson, head of ‘thas launched Glaceau enhanced 50 demonstrated by its sponsorship of Cke"s China business unit. 25 water, a3 Well as its frst dairy and the Beijing Olympics, recently juice drink, Minute Maid Super announcing plans to invest $2bn in 120 © Pearson Education Limited 2011 pHorocoPiABLEwwe wr wre wervevrvurvvvvvv vv wevvVvHeUvEKBEKBTUvBeHoOKwoKHeUEs 1 Look through the whole article and find all the brands and company names mentioned. 2. Now look at your answers to question 1 and find: a) twoUS soft drinks companies. b) a french company (the article does not specifically say that itis French). 9. a Chinese company with which the company above had a joint venture. & a Chinese juice company. ©) aTaiwanese company. ) two brands of water. @) a brand of tea, 1) a brand of flavoured milk drink. 1) two non-drink brands, used here in their plural forms. 3. Look at lines 1-23 and say if these statements are true or false. 8) Coca-Cola owns the three best-selling sparking drinks in China. b) Coca-Cola makes more than a billion dollars in sales in China from each of these brands. ) China is Coca-Cola’ biggest overseas market. 4) Coca-Cola's aim is to sell more than four times as much in China as it does now. ©) Coca-Cola’ sales in China have grown by nearly afifth each year for the past five years. f)PepsiCola's sales in China are more than half of Coca-Cola's. 8) Coca-Cola until now has only sold Coke in China. 4 Match the verbs 1-7 with the things that they go with a-g in lines 24-53. 1 enter a) ablow 2 launch b) a takeover 3 suffer 0 acommitment 4 block ¢) brands 5 continue @) plans 6 demonstrate £) acommitment 7 announce 8) amarket PHorocopiaste © Pearson Education Limited 2011 TEXT BANK >> UNIT2 5. Now match the verbs 1-7 in Exercise 4 with their meanings i-vii, as they are used in the article. D startselting ii) give information about Hi) prevent 1y) negatively experience ¥) show YW) go into wil. cary on 6 Choose the best alternative summary for the final paragraph. Coca-Cola's chief executive thinks that. a) Coca-Cola will definitely suffer if there is nationalist resistance tothe company's future ‘expansion in China 1) the design of Coca-Cola’ stand atthe Shanghai World Expo was highly appreciated by the Chinese, 9. people thinkin terms of brand rather than nationalities, and Coca-Cola wil not unduly suffer from nationalist resistance to foreign companies. Over to you 1 How many ofthe brands mentioned inthe article do you know? How strong are they in your country? What do you thnk of them? Over to you 2 Has there been resistance to particular foreign brands ‘in your country because of their national origi Give some background and explain how this resistance came about. 1913 Building relationships (emo) eat Before you read Would you be Reading Read this article from the Financial Times by Rhymer Righy and do the exercises that follow. 122 The careerist: Pro bono work Rhymer Righy Pro bono work is usually thought of as the preserve of lawyers, but ‘organisations as varied as advertising agencies and professional services firms also donate their staff's time to ‘200d causes ~ either for free or for reduced fees. Although employees should do pro bona work for selfless reasons, your gond deeds can also be sewarced in terms of your career. How does pro bono work add to iy experience? If you are relatively junior, it ean be a very good way to step up. “People who do pro bono work inthe Accenture Development Part- nerships typically take on more senior roles than they would in corporate roles.” says Royee Bell, senior executive at the consultancy firm, “You getto see aft of nuts and bolts and it’s very good to get o side the normal cosy corporate world. You'd think that someone ‘who sets up an IT system in Chad would have a broader view than a ing to do pro bono work that, to work without being paid? Why? / Why not? person who has only worked in Clifford Chance, the law firm, says Fortune 200 companies.” ‘that her inspiration for starting the ‘Newham Asian Women’s Project What about opportunities for ss probono scheme came from reading building relationships? about forced marriages: “It gotta the Pro bono work often brings together point where I couldnt just rurn the people from different paris of page. T wanted to do something ‘organisations who might not other- about i.” She says itis also one way wise meet. Phil Georgiadis, « of bridging the divide between chairman of Walker Media, the Canary Wharf and the less privi- London agency, says it can cut _leged areas that surround it, through hierarchies, foo. “I'm about Pro bono work ean be rewarding to do some work for the Great _in other ways, too. Mr Georgiadis ‘Ormond Street Hospital for Children «5 says you can be freer to be more ‘and 1'llenlist a couple of graduates creative with work done for chari- {to work with me ~ that'll be the _ies:“"You often bave the opportunity account team. So suddenly you have todosome really interesting market- a graduate who is reporting directly ing and you have more freedom than {othe chairman, which is very rare,’ 70 you might have with, say, a breakfast he explains, “cereal.” MrBell adds that Accenture Development Partnership projects What about Job satisfaction? tend to be smaller and shorter than Using your professional skills inthe their corporate counterparts: "It’s service of good causes often adds a 75 much easier to see overall results kind of ethical dimension to your and understand the positive effect of ccareer and can be very motivating. what you are doing.” Maya Mehta, a senior associate at PORAARARARRANRARNAANAANANRARAANRAAHRARARD, © Pearson Education Limited 2011 pHorocoPiABLE~-- er ere ee eer weve VEVUBMEUEwrUuUvvoWwe 1 Look through the whole article and match these people with the organisations that they work for and the pro bono projects that ‘they mention. 1 Royce Bell a) Cliford ') the Great Chance Ormond street Hospital for Children 2 Phil Georgiadis b) Accenture i) the Newham Development Asian Women's Partnerships Project, 3 MayaMehta Walker iid) an IT system Media in chad Choose the correct alternatives (lines 1-10). 1. ‘Pro bone’, meaning for good’, comes from which language? a) Greek b) French ¢) Latin 2. Working for reduced fees or no fee at alli. a) limited tothe legal profession. ) only common inlaw and advertising. 9 Found in a range of professional services. 3 Normally, if you donate your time, you 2) charge frit ) don't charge fort charge twice as much as for other work. 4 This article uses ‘donate’ to mean... a) always charging nothing at all ») charging nothing or sometimes charging areduced fee, 6) occasionally charging the full rate. 5 The opposite of ‘seiess'is. a) selfish. b) selfhelp. c) self-service 6 Which of these words is least similar in meaning 10 ‘deeds’? a) doings b) acts ¢) thoughts 7. The reward for doing pro bono work comes in the form of a) better career prospects. b) more jab satisfaction. Qa better salary for your current job. TEXT BANK + UNITS 3. Where are these aspects of doing pro bono work mentioned in the article (lines 11-45)? Which are not mentioned? You may have the chance of. a) seeing very practical aspects of projects. b) working with the chairman, even if you are a recent graduate recruit, 9) getting 2 more rounded way of looking at things than you would in a large company. 4) improving healthcare in the developing world. @) doing work with more responsibility. §)_working on projects in the developing world. 8) understanding how hierarchies work. 4 Match the verbs with the expressions that they go with (lines 46-77). 1 use 2) the divide 2 bridge b) anethical dimension 3 add ©) professional skis 4 start ) more freedom 5 have ©) the project 6 have ) the positive effect 7 see ®) the opportunity 8 understand by) the overall results 5 Now match the opinions (a-e) to the people ‘who might have expressed them (1-4). (One of these people relate to two of the opinions.) (lines 46-77). 1 Rhymer Rigby 8) “couldn't just ignore this social problem." ) ‘You really have a chance to work independently. 9 You get id see the results of your own work more easily’ @) ‘itgives you the ‘opportunity to know that you're doing good.” ©) ‘Itallows us the chance to have contact with some of our neighbours.” 2 Royce Bell 3. Phil Georgiadis 4 Maya Mehta Over to you 1 Think about your organisation or one you would like to work for. What pro bono projects would it be advantageous forthe organisation to carry out? Over to you 2 Identify an area In which you personally might like to do pro bono work. Discuss the main points of your campaign. 123,3 | Building re unit lationships Delica ies a Ly Before you read What advice would you give toa business visitor on building relationships in your country? Reading Read this article fram the Financial Times by isabel Gorst and do the exercises that follow. BE Hot and cold Isabel Gorst ‘When Russia frst opened up t for- ‘eign investors in the 1990s, some puzzled international business peo- ple would take psychologists into 5 egotiations to help fathom what sas going on. Two decades later. the Russian business world seems out- wardly accessible. Russian ‘companies have built flashy corpo- to rate headquarters and have teams of English-speaking managers with western MBAs, But deep down, Russian business culture ~ a mix of the authoritarian and the free~ ts wheeling — remains alien to foreigners. For their part, many Russian business people still egand outsiders with suspicion and prefer to work — and play — within close- sn knit circles. “The western practice of compart mentalising work and personal life has not caught on in Russia, where business aries on round the clock. as Russian laws are unclear and dan- gerously open to interpretation, 30 ‘business people prefer to strike deals ‘on a comradely handshake rather ei alll 124 reception awaits Moscow’s visitors than rely on written contract, vw Ivan Korsak, the trade commis sioner at the Belgian embassy in Moscow, says: “Fifty per cent of doing business in Russia is about selling a product, and the ss restis about building relationships. “The fist thing is to convince Rus- sians you have a value-added product and that you are a person they can trust Price is secondary 10 all that.” he says Responsibility for decision-mak- ing rests atthe highest level in most Russian organisations. Doing a deat in Russia is about building trust with ‘one of two people at the top, says Daniel Wolfe, a Moscow-based. entrepreneue, “It's better to spend ‘ime figuring out how to get an audi tence with them than on devising flow charts and power-point presen- tations to sell your product. Russian business people prefer face-to-face meetings, reflecting fan ingrained suspicion that ss welecommunications are tapped Nonetheless, fixing high-level éte- LeveLor a-téte can be frustrating. All too often, advance requests for appoint- ments will be brushed aside with “Let's call each other when you arrive”. “It's always a muddle right up tothe Last moment, but inthe end. everything always works out.” says ‘one expatriate hanker in Moscow. s Russians address each other by first ames and patronymics, leaving surnames aside, Nicknames add ‘another layer of complexity provid~ ing fertile ground for gaffes. The +0 Vladimir met in a boardroom can tur into Volodya by lunch or Vova ina late night bar. Russians know their language is difficult and are Forgiving of foreigners’ mistakes. vs Exteral appearances matter a lt. If you have to choose, a big ear is more impressive than 2 faney office suite. Business attire is a formal suit and tie. Clean shoes ~ the more ‘expensive the better ~ are an abso~ lute must, Chunky timepieces are part of the business kit, ‘© Pearson Education Limited 2011 PHOTOCOPIABLEHUVUVUUYUHBVUHOVUHUVUYUUUUUUUUUUUvUvUndvvoUUd eee 1 Imagine that each paragraph has a heading. Put the headings in the correct order. a) The use of names b) The importance of appearances ©) Arranging meetings @) Building trust ©) The ((naccessibility of Russia f) Personal and professional ife g) Talking to the right person 2. Find words (lines 1-20) that mean: 2) understand, (6 eters) ) seemingly (9 eters) 6) open, (10 letters) 4) attractive but notin good taste, (6 etter) ©) managed by a powerful person whose decisions sire not questioned. (13 letters) 8) very sliferent and hard to understand, ( eters) 2) uncertainty about the honesty fathers’ motives. (9 letters) ‘h) describing a group, etc. where people know each other very well and others init difcuit to enter (5 letters, 4 letters) 3. True or false? (lines 21-64), t ) you compartmentalise two things, you keep them together. ') something catches on, alot of people start doit. ©) allawis open to interpretation, it may have several meanings. ) you strike a deal, you make one. ©) price is secondary it's the most important thing. ) a request is brushed aside, it is ignored, 8) a plan works out, itis not realised, 4 Match the two parts of these expressions. (lines 52-82). 1 ingrained appearances 2 high-level banker 3 advance office suite 4 expatriate requests 5. extemal suspicion 6 fancy timepieces 7 chunky tetea-tate worocoptaate © Pearson Education Limited 2011, TEXT BANK >» UNIT3 5 Now match the expressions above to these examples of them (a-g). 2) a one-to-one meeting with the head of Gazprom b) a Hugo Boss suit and leather shoes altogether ‘worth $1500 ©) the idea, impossible to get rid of, that phone conversations are tapped @) three very attractive connecting offices in an expensive business park ©) Rolex watches one centimetre thick 1 a French executive working for SocGen bank in Moscow 8) asking to see the head of Gazprom three weeks before your visit Over to you 1 Look at the headings in question 1 above. Put your advice to a business visitor to your country under these headings. (You can repeat some of the advice you gave in Before you read! above if you wish.) Over to you 2 “t's not what you knowl’ who you knows tis true of your country and others that you know? If so, in what ways? Ifnot, why not? OINVE 1X31unr 4 | Success Cool SPAT ECO at Before you read Whos the most sucessful businesswoman in your country? Hw did she become succesful? Reading Read ths article from the Financial Times by Lucy Kellaway and do the exercises tht follow. FT LeveL oF A guide to being a successful female boss FY tscyKetaway BE Sepa rrecnisaiesl | ue eae victoria | useage Zen sWnomenhateccatnes "Goce Ecce Apples hs Son aur be | tnt vod'nic mie coer in cceticlcnahDaeret et 7 Rene ue exbiag- efor 20 2 stresofthelsuceess Thenumber the past thee yours of 529. per ope her busine whe sae f+ chewomm opicosiniation, _scOncmiguiparhuec ute, Cig tues wile mos Be Sp comscatiiarice a becmrorrms mac: Cee aa eae ete fi dene Rested of Kate henttaceicwomehinetes nat arena You mist folly yourpeson-The waitin na cheat oe sane fe wih i Stewtacaine ictepeascet faraumcayb Ceckeewans ay colnet sane eat ih [>| uterganeamcetieteyeorst — tecyeteclaereaweiss senitgnar man be baie, For Stal plins oftarek ui makigeoaeetmnomere, Seb Duet and fee alk oer Bi Sgro ain Deke geece eee eae i There wat only coe dscrdantmenteager Mice teaae |” prem cme mili ; note. This was sounded by Dong Last week I went to see The Sep- in the meantime they have a choice. Se sticknceiene erate as, ano eT AppimryaChbcsemanifcane «© liewAmcicat Wepre codes ain ug, feat sl Clircctiisninasite "oeanntatue erases « Meme satis elon x iu Sawant Sonneeae aa eee i woman inthe world“ never miss,” _trilliantly inthe most highly evolved are wrong. no one Wil notice utomniTomauciuts ouentonenmean na Zifcaamgecscet ica Me Euinged eet omene reminc gies Siefiaelaocceae pecanaea sane! Wasi Dont ietsos | folerayos aa maps St PEvuUuUUvUUUUUUUUUeUEUVvvUUueveUuUUveuUuUue ea 1. In lines 1-23, find reasons given by top women executives for their success. f a) work b) have follow 4) believe in ) tyto 1) believe in D tytobe h) never ) never ) amalways 2 Now match each reason above to the executive who gave it and the company that she works for. (In some cases, no particular person or company is mentioned.) 3. Which three of the above reasons are ‘discordant’? Why? 4 Which alternative could be used to replace the expression in italics without changing the meaning? 1. Yet Sister Dong, as she is sometimes known, has achieved results. a) fabricated b) objectiied produced 2. GRE has achieved shareholder returns in the past three years of 529.5 per cent 4) return on sales) retum on equity return on assets 3. im china, a) hatred b) indifference ©) liking 4. autocracy is considerable .. a) authoritarian management ) democratic management ©) Scandinavian-style management 5. ..and hasn't evolved to include such soppy practices as mentoring or 360-degree feedback. a) emotional) strong «) soapy 6 ..the Sister-Dong-never-wrong approach can work quite brilliantly in the mast highty evolved ‘and most competitive of industries: fashion. 4) backward b) developed ©) complicated the fondness for. TEXT BANK >» UNIT 5. Use correct forms of expressions from the lines 46-67 to complete these statements: ) Someone not that attractive or likeable is b) People wio work under someone else's authority are thelr ©) Ifyou stay ina job when you might be expected not to, you there ) Someone rejected by an organisation is ®) Someone destroyed by an organisation is by it 1) Ifyou achieve something difficult, you 8) IF you manage people by making them feel afraid, you h) Fyou talk about something constantly, you it, ‘If people don't pay attention to something, they don’t it, 6 Which statement sums up the article best? Western ideas about management success... a) are all wrong. ) may be right, or they may be wrong, but some women succeed in totally different ways, ©) may be right, but we dan't really know. INV 1X3. Over to you 1 Go through the answers a-jto question 1 above What do you think of each ofthe secrets of success? Give yourreasons, Over to you 2 “in China, . the fondness for autocracy is considerable.’ Is this tre in your country’s companies? Why? / Why not?™ | Success ee ss G RATEGIC CHANGE Before you read What advice would you ge for sucessully making changes in a) your profesional ite, b) your persona life? Reading Read this article from the Financial Times by Stefan Stern and do the exercises that follow. 128 » Master the mix of continuity and change Stefan Stern What makes winning businesses different from the also-rans? Having better products and services helps. Good leadership is essential. But the strongest companies manage some thing else that is rare. They cope with erises and big strategic change without drifting off course. How rare is this? Gerry Johnson, a professor at Lancaster University Management School, and two colleagues from the Rorterdam School of Management, George Yip, the dean, and researcher ‘Manuel Hensmans, have been study ing companies that, over a 20-year period, achieved almost uninter- rupted success while dealing with big changes. They have interviewed senior executives (past and present) From some of these companies t0 find out what went on, how deci- sions were made and what the prevailing atmosphere was like, ‘The big danger, even for success- fal businesses, is strategic drift, Prof Johnson says. Companies start out the late 1960s and early 1970s, a ‘on the right track but they canallto0 new generation of managers (includ- easily lose their way. When things ss ing future boss Ian MacLaurin) become critical, existing leadership began transforming the business iskicked out, new leaders come in, under the nose of the founder Jack ‘and theeyele stars again.Butnot,in Cohen. the case of a few exceptional bus- ‘This leads wo the third characteris- nesses, Tesco, Cadbury and the co ticofa winning business, which the medical products group Smith & academics call “contestation” or [Nephew all dealt with big changes “respectful difference that grows out while avoiding disaster. ‘of contlict". Tis is vital. Dynamic, How?A.combination of fourchar- _ growing businesses beneiit from the acteristics, or traditions as the 6: creative tension of civilised dis- researchers call them, seems to be agreement. The Smith & Nephew crucial, The frst is continuity. This culture was shaped by argument, involves “the reinvention of the Prof Johnson suggests. witness 0 company’s distinctive business Tesco board mectings in the mid- ‘model” 10 fit in with prevailing mar- 7 1980s told him that they were ket conditions. argumentative and confrontational ‘The second is anticipation. This is “butlike a family arguing rather than ‘where it starts to get tricky.To build a group of enemies” in anticipation, “alternative leaders” "The final characteristic is mobil have to be allowed to start work on 7 ity, meaning a flexible recruitment the future shape and direction of the policy that tries to put the best per- ‘company but without undermining son in the jab, which prevents the the current leedership, AtTesco ingrowth ofa time-serving culture (© Pearson Education Limited 2011 PHOTOCOPIABLE naAaeAaAaAnaAAAnHnaenAaAAnsIAR fn maaaoennananannnnananaa aCECT FT SSCS SSCS HOOT VUVEWUVUUVUUU 1 Look through the whole article and find: 4) a professor of management in the UK. b) two management researchers from the Netherlands. 9) aUK business school. 4) a business school in the Netherlands. ©) three successful companies. two executives at one of these companies. 9) anunnamed person who went to board meetings at one of these companies. 2. Find the following in the first two lines 1-24: 2) atwo.word expression, originally from horse racing, to refer to those who do not win 2 race b) verb that could be replaced by ‘manage to deal’ the plural of ‘crisis? 4) anadjective that can also describe important long-term decisions in a company @) anadijective to refer to something that is not common or frequent 1) a two-word expression used in the context of ‘organisations that do well over long periods 8) a two-word expression referring to the main feelings, culture, etc. in an organisation 3. Write questions relating to these answers from lines 25-45. a - neem 2 Strategic drift, They start out on the right track but they lose their way. 1) essiiatistseassinnteaareeitn 2 Existing managers are kicked out, new leaders come and the cycle starts agai No, there are 2 fow exceptional businesses like ‘Tesco, Cadbury and Smith & Nephew that al dealt vith big changes while avoiding disaster. ee sarnioneciatast ‘combination of four characteristics or traditions. ° 2 Continuity. » ? The reinvention of the company's distinctive business model PHorocopiasts © Pearson Education Limited 2011 TEXT BANK > UNITS 4 Now find nouns in the answers to the questions above that mean: a) different things working together. ) qualities, ©) finding something new to replace something that was also once new. 4). moving to places you don't want to go to €) avery serious falure f) the way a business operates in order to make money (two-word expression), 8) a good direction in which to go (two-word expression. ‘h) the ways things have long been done in a particular culture, organisation et 5 Continuity is the first success factor mentioned. What are the other three? 6 What examples are given of the above three ‘success factors? 7 What are the possible disadvantages relating to the first two of the above that Tesco avoided? Over to you 1 Is contestation encouraged in your school or organisation? Why? / Why not? Over to you 2 Think ofa company that has been successful fora long time. How has it avoided drifting off course? 1295 Job satisfaction AJOB SATISFACTION SURVE Before you read How easy isi for young people to get jobs in your country? Reading Read ths article from the Financial Times by Brian Groom and do the exercises that follow Ea levalor oirreuury 686 Unhappiness at work rises to record level = Brian Groom, Business and Employment Editor a Ea Job satisfaction has dropped to a 25 youngsters eligible straight away, She said unhappiness among g record low ~ with a particularly BTathe telecoms group, announced =» young people may be partly : Sharp fll among young people as 3,000 work placements in partner- explained by the fact they had grown 2 the resus ofracesion tke thelr ship with smaller companies,"The up ih an ero plenty and had not | tollcacconding wo aleading business CIPD's survey, conducted by You- seen anything like this.~"The lack of | i soup. A study of 2.000 workers by 30 Gov, found job satisfaction levels opportunities to learn new skills or | | the Chartered Institute of Personnel had fallen from anet +8 lat sum ss make their fst steps up the career | and Development suggests that, mer t0 435. The job satisfaction ladder is also likely to be grinding | ven if official igores mark an end scores the difference between those them down. The stagnant labour wo tothe recession, employees ae still saying they are satisfied and those market means people are not moving paying a high price job insecurity» who say they are not. In addition, on and up as they would lik, leay~ 1 fd ses. Fewerthan one in 10 ssid theiestan- «ing many young people stranded in Evidence of unhappiness among dard of living had improved in the entry-level jobs.” soung worker is disclosed afterthe past six months Most workers surveyed said it ss fauneh ofthe governmen’s guaran- "Job satisfaction among people would bediffcutto find snotherob ize of a Job, training oF Work 4 aged 18 0-24 fel from +44 to just if made redundant, while a fifth i experience place for every unem- +5. Happiness at work was higher « thought it likely they would Jose ployed person aged 18 024 forsix among older age groups, with those ther job, Publi sector workers were fronths."Wedonotwanttohavetie aged 85-68 most satisfied. Claire more likely to report that their 2» lost generation ofthe 1980s," said MeCartney, a CIPD adviser, said: organisation had made, or planned to the prime minister «s “Even though the cconomy is no make, redundancies than inthe pre= “The government says that up to longer flat on its back, the “real 7 vious quarter, 470,000 opportunities will be exe- economy" as experienced inthe day- ated over 15 months, with 100,000 to-day lives of workers is crippled.” ST TST TT 130 © Pearson Education Limited 2011 pworacoPiaateoe vuus v wo ee evo ®e 1 Look through the whole article and find: 2) an organisation for professionals working in human resources, ') telecoms company. 9. an opinion poll organisation. d) someone who works for the organisation in a) above, 2. Find nouns in lines 1-21 that refer to: 4) feelings of happiness and achievement. b) feelings of stress, unhappiness, etc. caused by something 9) damage that something can do. ) numbers. ©) & period when econamic activity goes down, not feeling safe. 8) not feeling cheerful 3 Complete the table with words from lines 13-48, and grammatically related words. verb oun | disclosure train [ launch experience ‘announcement fall i L improvement | 4 Match these numbers from lines 1-48 to what they refer to. 1 2000 a) the change in the job satisfaction ‘score’ among all workers, b) the number of jab ‘opportunites for young people to be created by the government immediately ) the number of people in the CIPD survey ¢) the age group where workers are happiest 5 48 t0435 — @) the number of people who said their standard of living had improved in the last six months 2 470,000a 3. 100,000 4 3,000 6 less than f) the number ofjob opportunities onein10 for young people to be created by the government over the next 15 months, 7 +4405 g) the number of work placements tobe created by BT 8 55-64 1) the change in the jab satisfaction ‘score’ among. 18- to 24-yearolds TEXT BANK »> UNITS 5 Look at lines 39-61 in order to find the correct expressions to replace those in italics below, using the same number of words. a) fsomething is ina bad state, itis down on the behind. ) fsomething is functioning very badly, itis creeping, ©) Apetiod when everyone has all the things they want isan area of plenitude. ‘d) Your fist job is your first landing on the job staircase. fad experiences make you more and more depressed, they ground you downwards. Ifyou can’t leave a place where you don’t want tobe, you are abandoned there. £8) Jobs that people have when they join an ‘organisation are described as entrance:stage 6 Read lines 49-70 to decide if these statements are true or false, 4a) Young people have never known anything like the present economic situation, b) The employment market is grawing now. ©) Most people could easily find another job if they wanted to. 4) 20 per cent thought that they might lose their Jobs. ©) Those working in the public sector thought it ‘more likely that they would lose their jobs in the ‘next three months than Inthe previous three. >INVS LxaL Over to you 1 Imagine a similar survey in your own county, What do You think the findings would be about job satisfaction ‘nd security in relation toa) the 18 to 24 age group, and b) the 55 to 64 age group? i Over to you 2 In what ways are work placements for young people useful to a) employers and b) the young people themselves?"5 Job satisfaction Before you read Would it be possible to do your job, or one you would like to have, in four days. aweek? Why? / Why not? Reading Read ths article from the Financial Times by Alison Maitland and do the exercises that follow. 132 A different way of working Alison Maitland ‘Lee Summersgill was intially con- ‘cerned when be heard that his ‘employer, KPMG, the professional services firm, wanted staff to volun ter for a fourday week to help ‘minimise job cuts inthe recession, ‘The news coincided with the birth of his daughter in January last year, and he was worried about a reduction in hours and pay. Then he considered the benefits ofa change t his work ing week so that he could share the childcare with his partner, a health visitor. Now he puts away his Black- Berry every Thursday night and spends Friday with his two young children “T've been doing it for a year and it's worked really well,” says Mr ‘Summersgill, who advises cients on housing projects. “You have to be really disciplined and try to fit ‘everything into four days. [think it makes you more loyal. Would any ‘other firm have the same level of Alexibilty and understanding? In the ‘market I°m in, 1 don't think that ‘would be there.” Mr Summersgill’s experience illustrates two growing so trends: fathers wanting greater flex ‘bility to accommodate family life, and employers using flexibility to keep employees motivated, improve productivity and avoid large-scale 2s job cuts, Business leaders around the world have remained concerned about retaining good people, even in the depths of recession. A global survey 44 by Hay Group. a consultancy, con- cluded: “While employees fear losing their jobs, organisations fear the loss of top talent and critical skills.” Amid signs of economic 4s recovery, but With cost constraints continuing, employers are looking at alternatives to financial incentives Oifering employees greater control lover working time and location is 50 one such option, © Pearson Education Limited 2011 pworocopiasLe KPMG, forexample, is examining new approaches, after the success of its “Fiexible Futures" programme in signing up employees for taking a year off or working reduced weeks Roughly 85 per cent of the 10,000 UK staff volunteered a the start of Jast year. Approximately 800 people moved temporarily (o four-day ‘weeks. The firm saved S4m as ear, Gr the equivalent of 100 full-time jos, says Michelle Quest, UK head of people. When the programme was relaunched for this year, 71 per cent ‘olunteere. “One of the softer ben efits is moving the whole idea of flexible working up the agenda for everybody,” says Ms Quest. The firm is ow considering more setive promotion of job sharing, because this type of arrangement provides all-week cover fr liens. SBRaeaoaaaoaondananoaoauoenannenanaeananeennenoaennnanaoaareaanaarlaaewwvvvvvvvvvvvvvvvvveveuvUuUuUuUuUuUuUUuUKTUSD TEXT BANK >> UNITS: 1. Which alternative could be used to replace 3. Match the two parts of these expressions the expression in italics from lines 1-17 so from lines 36-73. as to keep the same meaning? 1 top silts 1. Lee Summersgil was intially concerned .. 2 cttical constraints a) interested b) worried reassured 3 economic incentives 2. ..when he heard that his employer... wanted 4 cost talent staff to volunteer fora fourday week... Be nactial survey a) offertoagreeto b) refuse 6 eat anes ede 7 active promotion 3. to help minimise job cus inthe recession. tama same 2) increase the number of 9 ob ae ) reduce the psychological effect of 9 reduce as much as possible the number of 4 Which of the expressions above is each of 4 The news coincided withthe birth of his daughter these things an example of? In January last year, ) Growth this year is 4 per cent~last year it was a) came at the same time as) came after minus 1 percent. came before ) Without people like these, the company would go 5... Then he considered the benefits ofa change out of business, {ohis working week. ©) The best and the brightest people in the a) aspects b) advantages ¢) downsides organisation. 6 So that he could share the childcare with his 4) Being able to respond to clients requests parte, a health visitor, Monday to Friday. 4) schooling b) childminding ©) healthcare ©) Areport based on interviews in Five continents. 1) Acompany regularly reminding employees about 2. Answer these questions with one word a particular programme. nouns, or nouns related to verbs, from lines 8) Not having the budget to do something, 18-35. 1) Antonia does this job on Mondays, Wednesdays Have Lee Summersgills new working arrangements. and Fridays, and Hans does it on Tuesdays and 4) increased his feelings of wanting to do his best Thursdays. for his employer? |) She can take a year off and shell get fll salary =Yes, they've increased his and : and benefits. ') made him work in a more organised way, keep to deadlines and so on? 5. Read lines 36-73 again to decide if these =Yes, they've increased his sense of statements are true or false. abou} work a) Inthe recession, the only people who are worried ©. shown that KPMG is willing to allow people to about jobs are employees. ‘work in different ways? 1b) There are ways of keeping good employees that = Yes, they've shown that they believe in job : LEE aoeROREL don't involve giving them more money. ©) KPMG is looking at this area forthe first time. @) Last year, fewer than half ofits UK employees took up the offer of working less. ©) KPMG only saved £400,000 by doing this. @) been criticised by KPMG? =No, they have shown a high level of ....e.iM relation to his personal situation. @) shown that KPMG understands the needs of families and is willing to help them? f) Fewer people were interested in the programme Yes, they've showin a high degree of ue this year than last f) and those of other KPMG employees shown that their output is les than before? Over to you 1 No, their actually increases. Lee Summersgill’s expe ice illustrates the trend of fathers wanting greater flexibility to accommodate family life. 1s this trend in your country? Why? / Why not? Over to you 2 Whats the atituce of your organisation, or one you would like to work for, to job flexibility? PHorocoPIABLE © Pearson Education Limited 2011, 133“" 6 | Risk REPUTATIONAL RISK a Before you read Celebrity endorsement is when famous people appear in advertisements to promote particular products. Name as many as you can think of. Reading Read ths article from the Financial Times by Paul Davies and do the exercises tat follow. FT \ cor When star power hits the rough Paul J Davies As Tiger Woods ees offat The Mas- study by Christopher Knittel and ss insurance market, held « conference {ess tournament,the humbled athlete Victor Stango, economists at the on bow to manage reputational risk isnot the only one counting the cost 20 University of California, Davis, the and what cover — if any ~ might be (of his fall from grace, The $4-year- collective lossin stock market value available. s old golfer's reputation as a of ll the companies that Mr Woods, ‘Companies are increasingly Clean-living and dedicated sports- endorsed was worth $Sba-S12bn, «recognising that reputation is an ‘man and husband was undone when (Of course,companies do notneed important and valuable asset that is his infdelitios were spilled across 25 a celebrity relationship to experi- vulnerable and volatile, according to {elevision, newspapers and Internet ence reputational damage. Toyota Anthony Fitzsimmons, chairman of wo sites after mysterious car accident estimates thatits global recall of cars __-Reputability,a consultancy focused athishome. had a direct cost of about $2bn 6s om reputation and crisis strategy, risk Mr Woods’ success on the course —-_(€1,Sbn, £1 3bn). That figure does and management. had enabled him to line up lucrative «© not take into account potential lost “Reputation can be an organisa- sponsorship deals off of it, with futuro sales, or Toyota’s own stock _tion’s most valuable intangible asset, \s brands including Accenture, Nike, price declino, which has knocked _ though it appears in few balance Gillette, Electronic Ars, Some esti Y1,673bn_(S17.8bn, €13.3bn, 7 sheets except as goodwill in acquisi- mates suggest thatthe arrangements £117on) off its market value even tions," he says." People are generally ‘ade him the world's fist sports star 45 after a strong rebound in the past aware of their brand values, but tomake $1bn in career earings. ‘month, many have not worked out what 20 But as his life became embroiled Tin the wake of the Tiger Woods matters most when things are going in scandal, those companies also scandal, DeWitt Stern, the insurance _ 15 wrong. Few have made a systematic took direct financial hits, fom hay- broker, aw an opportunity to publi- analysis of what might damage their ing to commission and produce new 5 cise a'product it had launched to reputation, Jet alone worked out how advertising tothe costs oftheir own cover reputational risk, including to keep their reputation strong 2s public relations campaigns explain- how to deal with celebrity endorsers _through difficult ime ing their actions in dropping the becoming engulfed in scandal. More golfer and legal fees. Accarding toa recently, Lloyd's of London, the 134 ‘© Pearson Education Limited 2011 PHOTOCOPIABLEevvvvvvvvvvvvvvvvuvuUuvUuUvUuvUuUuKeUuHvUveTTs 1. Look through the whole article. Which sport does the expression ‘hit the rough’ in the headline come from? Why Is it used? 2. Find expressions in lines 1-19 to complete these statements. someone. suffers from losing their good reputation, they have a b) behaves very well in their marriage, their job, etc. they are described as ©) does not smoke, drink alcohol, etc. they are described as, . @) has. reputation that is destroyed, itis ©) signs deals that make them a lot of money, these deals are f) makes a total of $1 are thelr ion from their job, these 3 Match these things from lines 20-46 with what they cost. (The cost of four of the things is not mentioned.) 1. the minimum estimated a) $12 billion value of all the shares in allthe companies whose products Tiger Woods endorsed 2 the maximum estimated b) about value of all the shares in 1,700 all the companies whose billion yen products Tiger Woods endorsed 3 thelegalfeesofcompanies ——_«)- $2 billion dealing with the damage done by Woods’ actions 4 the cost of producing new ) $s billion advertising following the ‘damage done by Woods? actions 5. the cost of Toyota's recall of cats so far 6 the possible future costs of Toyota's recall 7 the fallin the total value of Toyota's shares initially 8 the allin the total value of Toyota's shares at the time of writing PuorocopiABLe © Pearson Education Limited 2011 TEXTBANK +> UNIT6 4 Complete the table with words from lines, 20-58, and grammatically related words. noun verb commission ‘campaign endorsement, endorser damage recall rebound publicity cover 5 Intines 59-79, fin 2) anadverb meaning ‘more and more’ b) an adjective describing reputation as an asset in elation tothe ease with which it can be damaged. ©) an adjective describing reputation as an asset in relation to possible changes in its value. 4, atwo-word expression to talk about plans to deal with disastrous situations. ©) atwo-word expression to talk about a business's property, but one that cannot be physically touched )_ the value of this asset when the business ' sold. 8) a two-word expression used to talk about what people associate with particular product names. fh) atwo-word expression referring toa methodical examination of something. Over to you 1 ‘You head a consultancy specialising in reputation and crisis management. &car manufacturer comes to you for advice on what todo to recover its reputation following a recall of 100,000 ofits cars because of steering problem, (Luckily no accidents were caused by this, but there were some ‘near misses") What would you advise the car company to doin relation to its communications and advertising following the recall? Over to you 2 You are head ofan oll company that has caused great environmental damage following an explosion on one of your ol rigs, What would you do to restore to try to your company's reputation? 135IMATE CHANGE Before you read Is the weather getting more extreme than it was 20 or 30 years ago in your part f the world? Reading Read this article from the Financial Times by Sarah Murray and do the exercises that follow. 136 Expensive picture of extreme climate Sarah Murray Images of the aftermath of the vio- Jent wind storms and tornadoes that swept across several US states this spring serve as a reminder of the damage caused by extreme weather events, Changing patterns are prompting many businesses to shore up their operations and facilities. However, many have yet to address longer term climate-related risks. “Companies are looking at what should they do over the next few years to their infrastructure to increase the resilience oftheir opera- tions,” says Antonia Gawel, deputy lirector of energy and climate atthe ‘World Business Council for Susta able Development: “But that ‘happening more than the longer term planning.” Part ofthe reason lies inthe ditfi- culty of predicting weather patterns and the effects those might have far nto the future. “The thing about the sea level rising is that you don’t really notice it," says Paul Dickin- son, chief executive of the Carbon Disclosure Project, which asks busi- nesses 10 monitor their carbon emissions and publish the results for their shareholders. “But what does happen is that it causes an tial increase in storm surge,” he say “And if there's a significant storm, you might find the sea inundating Turther inland than it would other- wise have done.” ‘This should prompt companies not only to establish procedures for staff during hurricanes orto ft their facilities with more durable roots and windows. It might also mean redesigning global supply chains or changing. industrial processes. Growing water scarcity is one rea son to implement this type of planning. For companies that are highly dependent on water, this © Pearson Education Li ‘might mean relocating facilities or rethinking the location of new investments ‘Whether tis tackling water short- ages or shoring a business up against disruptions from severe storms, Ms ‘Gawel emphasises the need to inte- grate climate adaptation into broader corporate risk management strate- gies that also cover areas such as terrorism, labour action or environ- ‘mental legislation, “When you're taking an invest- ‘ment decision or looking to build infrastructure, it needs to be part of the whole due diligence and risk ‘management package.” she says. “And it needs to bear sufficient ‘weight within that decision-making process because, fit is just a stand alone assessment, it might not have as strong an impact as it would if it were integrated into a true strategy process." 1d 2011 PHoTOCOPIABLE SE a a a a a gaat a ieee] aa aevvvvvvvvvvvvvvvvvuvuvUuUvUvUuUuUuUuUuUuUOEeUUEE 1 Look through lines 11-37 to find: ) two organisations that are not companies. ) the names of two people working for them. ©) their job titles. 2 Read lines 1-20 and find: 4) two sentences about businesses and thelr reaction to the short-term effects of climate change, ') two sentences about businesses and their reaction to the long-term effects of climate change. 3 Choose the correct alternative to replace the expression in italics so as to keep the same meaning. (lines 21-51) 41 Part ofthe reason lies in the difficulty of predicting weather patterns a) analysing b) identifying ©) forecasting 2. “The thing about the sea level rising is that you don’ really notice it,” a) see b) watch ¢) look for 3. “But what does happen is that it causes an exponential increase in storm surge,” he says. a) small b) medium ¢) huge ‘4 *...you might find the sea inundating further Inland than it would otherwise have done.” @) flowing b) flooding «) running 5. This should prompt companies not only to establish procedures for staff during hurricanes... 2) prevent b) cause ¢) start 6 Growing water scarcity. 2) plenty) levels o) shortage 7 .-is one reason to implement this type ofplanning. @) apply b) reply ©) imply 4 Match the two parts of these expressions from lines 38-72, 1 supply diligence 2. industria shortages 3. water chains 4 climate les 5 environmental adaptation 6 due process PHorocopias.e © Pearson Education Limited 2011 TEXT BANK ** UNIT 6 5 Now match the expressions to their meanings. a) laws to prevent pollution ») actions by a business to ensure that itis doing the right thing ©) allthe businesses, etc. involved in providing an organisation with materials and parts 4) all the steps involved in producing something €) periods when there Is not enough water making changes so as to deal with long-term changes in the weather 6 Give the infinitive forms of verbs in lines 52- 72 that mean the same as the expressions in italics. 2) to deal with a problem ») to bring attention to an issue to make something stronger (phrasal verb) 4) to be relevant to a particular subject @) to include something in something else f) to make a decision 8) tocarry a particular load Over to you 1 Give some risk assessment advice in relation to climate to. company setting up operations in your country (areas to avid, and why, et.) Over to you 2 Thing ofan organisation that you are interested in. ‘Make alist of all the potential risks to its operations. 137Management styles MEN MANAGERS Before you read Do women have a more collaborative approach as managers than men? Give your reasons. Reading Read this article from the Financial Times by Michael Skapinker and do the exercises that follow. 138 Nature and nurture in the executive suite Michael Skapinker Women are calmer than men, They are more collaborative and they dis- like self-promotion. It is all in their genes. Progressive thought once held that men and women were cessontally the same and that it was social conditioning that made men aggressive and women co-operative ‘Some writers still argue this way. In an article in the Harvard Business Review, Alice Eagly and Linda Carli say the reason women managers generally adopt a softer style is unlikely to be genetic. They do it because people react badly to aggressive women and a collabora- tive approach is how female ‘managers assert their authority. ‘A new book, Why Women Mean Business, is bolder: biology matters, it says. The authors, Avivah Witten- berg-Cox and Alison Maitland, approvingly cite recent research showing men’s and women's brains differ. This inevitably affects the way they manage. “Why would differences in communication styles, biological rhythms, and brain func tioning (to mention only a few) ‘stop just shor of leadership styles?” they ask: ‘fcompanies want to succeed they ‘will have to come around to wom- cn’s way of doing things the authors argue. Faced with falling popula- tions, companies in Europe will ‘need more women in senior manage- ‘ment, In the new knowledge-based coonomy, they say, companies need collaborative managers who ean persuade people to work in teams. There is no need for women t0 change their essential natures Why Women Mean Business is an innovative and stimulating book ‘But the resort to biology raises prob- lems. First scans have indeed shown differences between male and female brain functioning. Newbora girls Took at human faces for longer than they look at mechanical mobiles, while boys do the opposite ‘© Pearson Education Limited 2011. puarocor But the science is far from settled. ‘We still do not know the procise mix ture of nature and nurture that makes ‘men and women what they ar. ‘Second, if you argue that women’s empathetic nature makes them par- ticularly suited to helping run collaborative enterprises, a corollary ‘would have to be that they are less well equipped for other tasks. Third, the problem with character- ising huge groups is that it takes no account of the large variations within them. Women, on average, may be more empathetic than men, Dut we all know collaborative male ‘managers and sharp-elbowed female ones, justas we know boys who can- not tur plastic sticks into tractors and girls who do not listen quietly while others speak. Nature is impor- tant, but humans are endlessly complicated, ROAHDRRAHRAAARRARAAHRARRARRARHRARAAKHRAAAAA!evvvvvvv9 FS VVeVvUVVUvUHvUVvHVvHUHvOEH Ue UoUvHeeueus 1. Read lines 1-31 and put these expressions from there, and some related expressions, under one of the two headings a) ‘Nature’ or ») ‘Nurture’ 1 It’s the way youre brought up. 2 ‘Wallin the genes.” 3 ‘It’s socal conditioning. 4 ‘Wesunlikey to be genetic.’ 5 “That's the way you're born’ 6 ‘Itall depends on your environment when youre sowing up." 7 ‘Blology matters.” 2 Now match each of the writers mentioned in lines 1-31 to a) the ‘nature’ argument and b) the ‘nurture’ argument. 1 Avivah Wittenberg-Cox 2 Linda Carl 3 Alice Eagly 4 Alison Maitiand 3 Read lines 32-56 to decide if these ‘statements about the expressions in italic are true or false. if 4) you come round ton idea, you agree with itthe firs time you heat. 5) people ae collaborative, they believe in working together. ©) you change your essential nature, you behave in ways that you have to lear. 4) books stimulating iis boring ) there is resort to a particular idea in your reasoning, you use that idea to support it 1) anargumentis settled, 4 Which is the most important point in lines 32-43? Choose the best summary. 2) Women need to learn how to be collaborative in order to succeed as managers inthe future. b) There are decreasing numbers of women who can become managers because of Europes future population decreases. ©) Itisin womerts nature tobe collaborative and this will ideally suit them to be managers of the types of companies we wil increasingly have in the future PHoracoPiaste © Pearson Education Limited 2011 TEXT BANK *> UNIT7 5 Find words and grammatically related words in lines 44-75 to complete the table. noun adjective precision stimulation ‘empathetic collaboration equipment varied male ‘complication 6 Now match these definitions to the adjectives above. Used to descrite . a) people who understand others and what they are feeling, b) men and boys. something that is exact. something containing alot of diferences. ©) people who are good at working together. 1). people who have particular skills, 8) something interesting. 1) things that are complex Over to you 1 Is nature or nurture more important in the way people develop? Explain your reasoning. Over to you 2 {s collaborative working valued in your organisation, fr one you would like to work for? Why? / Why not? 139mes Management styles THE FUTURE OF MANAGEMENT Before you read Whats your definition of good management? Reading Read 140 Managers need a makeover Julian Birkinshaw ‘What isthe way forward for manag ers during a period of economic recovery? Leadership is a process of social inluence: itis concerned with the styles and behaviours of indi- viduals that cause others to follow them. Management isthe act of get- ting people together to accomplish esired goals. In other words, we all need to be leaders and managers. How does ths Line of thinking help you’ For starters, iis interesting ote that almost all the well-known books on management were written from the perspective of the manager, not the employee. Here is a simple exercise. Ask some colleagues you work with about the last time they felt fully motivated and engaged at work ‘What were the characteristics ofthat piece of work? Chances are, they will say some of the following: it ‘was a challenging project, one where they had to stretch themselves; they \were given a lot of autonomy: they Fy had an opportunity to work collab- coratively with others; and they felt the work was important to the organisation. I am willing to bet there will be no mention of money; instead they will focus on the recog” nition and kudos they received from doing a project well Why is it so hard to do what we ‘know to be right? It urns out that being-a good manager is somewhat unnatural. We can do all the above things if we work on them. But itis easy to lapse back into old habits, and as soon as things get busy or difficult at work we quickly revert to type - which usually means with- holding information, telling our employees what to do, and barking at them when they get it wrong. A small minority of people are “natu- rals” at good management. The vast majority of us have to work very hard to do the jab well ‘The job ofthe senior leaders in an organisation is to put in place an article from the Financial Times by Julian Birkinshaw and do the exercises that follow. overall "management model” that encourages individuals to work ‘more effectively in their manage ‘ment activities. Many companies are experimenting with innovative man- agement models along these lines, and when such innovations work, they can be areal source of eompeti- tive advantage. A well-managed company is one that gets the most ‘out ofits people. An engaged work- force, in urn, is one that seeks out ‘opportunities to add value in ere- ative and unforeseen ways, which then breeds responsiveness, innova- tion and resilience. However, one thing is certain: reinventing the practice of manage- iment is not going to provide your ‘company with any short-term bene- fits, But that isthe whole point. The road to recovery starts now, and its therefore a perfect time to put in place the basic changes that will accelerate over time, © Pearson Education Limited 2011 pworocoPiaBLe anrprrnnrnanpnnanaNernannmannAannakraneAaaneeaneaank.wuuuvde wewvvvwvvevvvv we vvvuKH vv vee aaa 1. Look at the headline. What types of change is ‘makeover’ normally most associated with? 2. Find the following expressions in lines 1-16. 2) appeciod when business is improving (2 words) ») the way that people change becauise of what they see in others (2 words) ©) what people typically doin particular situations (@ word) 4) seaching particular objectives (1 word) €) particular way of reasoning (3 words) f). the way you look at something (1 word) 3. Which alternative could not be used to replace the expression in italics from lines 17-34 50 as to keep a similar meaning? 1. ‘Ask some colleagues you work with about the last time they felt fully motivated and engaged at work. (ine 19) a) completely b) partly ¢) totally 2 ‘.citwas.a challenging project, one where they trad to stretch themselves.” (ine 25) a) work nearer the limits of what they were capable ») try harder than they normally did employ new people to help them 3 ‘they were given a lot of autonomy .” (ine 26) a) independence b) freedom c) advice 4 ‘.-they had an opportunity to work collaboratively with others.” (line 27) 4) together ») towards the same goal as © In parallel with 5 ‘instead, they wl focus on the recognition. fine 32) 8) concentrate on b) tatkabout ©) emphasise 6‘ and kudos they received from doing a project wel’ (ine 33) 4) increase in salary. b) increase n respect © increase in status PHoTocoPIABLE © Pearson Education Limited 2011 TEXTBANK +» UNIT7 4 Read lines 35-50 to decide iftthese statements are true or false. ) Being a good manager is a normal thing to be able to do, ') I's possible to apply all the advice given all the time. Managers can go back to their previous behaviour when under pressure. ) Two examples of typical behaviour of managers under pressure are given. ©) There are a small number of people who are good managers without advice or taining. Others can be good managers with just a lite effort. 5. Replace the words in italic with nouns from lines 51-77. (One of the answers occurs twice.) a) They have a big role to play in improving ‘managers’ skils in thelr organisations. 'b) Senior managers are introducing them in ‘organisations to give managers an idea of what to follow to improve thelr management skils. 9) This can really be improved in elation to other firms if managers’ skils get better. 4) This helps to make people perform as well as they can. €@) This means that people are always looking for ways to contribute in new, productive ways that haven't been predicted. 4) This means that managers react more to problems and are more able to deal with them. 2) You won't get these, but you will get longer lerm ones. Over to you 1 Think of management from the polnt of view of employees. What are the three biggest improvements that managers could make tothe way that they manage? Over to you 2 ‘A small minority of people are “naturals” at good management. The vast majority of us have to work very hard to do the job well.” Do you agree? Why? / Why not? 144“8 | Team building SPORTS CHING AND CORPORATE TEAM BUILDING Before you read ow easy isto transfer ideas for team building fom sport to business? Explain your reasoning, Reading Read this article from the Financial Times by Paul Betts and do the exercises that follow. Capello’s masterclass for on-the-ball Finmeccanica Paul Betts ‘When Fabio Capello flew to South 2 Unlike in other countries, such as had suffered badly from state inter Africa as the England football man- Brazil, he had to work hard to instil ference that lacked any clear ager to attend the 2010 World Cup a hunger among some top English industrial vision forthe group. More finals, be stopped briefly in Rome on players o pull on an England shirt. often than not senior politicians savy 5 his way to give the Italian defence Morale was pretty awful when he Finmeceanica primarily as a conve, and engineering group Finmecca-» took over. Not surprisingly he Was _nientplace to park hriends in top jobs : e S 6 @ ¢ ¢ S S S < c e = = = nica a masterclass on leadership. the star at Finmeccanica's conven- ss to the detriment ofits commercial Having previously managed one of tion attended by some 3,000 success. ' AS Roma, Mr Capello was inevita- And probably his biggest fan in the gin chose as hig stating point for bly the centre ofatention, “So why 3s audience was none other than his Finmeccanica's renaissance, Within are you doing this corporate coach- counterpart at Finmeccanica, Piet two years he had acquired fall con. ing? Tasked atone stage."Isuppose Francesco Guarguaglini, Afterall, trol’ of AgustaWestland, the because Ihave widespread intemna- the Italian group’s veteran boss is _helicopter-maker where previously 's tional experience having Jed teams also fanatical supporter f Juventus, GKN had been his partner Then he suchas Juventus and Real Mairidas 4 where Mr Capello once worked quickly moved on to buy out BAE well as Roma and now England and his magic. 6 Systems from a joint venture in [know a thing or two about manag- Finmeceanica under MrGuargua- defence systems. Alll of @ sudden ing players, creating ateam spirit,in __glini has prospered in recent years Finmeceanica was the UK's second ‘ short leading,” he said. Mr Capello thanks to clear leadership and a largest defence contractor by sales, clearly knows a thing oF two about 4 sense of purpose that previously was employing more than 10,000 Britons, bringing discipline, direction and sorely lacking. Over the years Up to inspiration to the highest levels of Mr Guarguaglini's sppointment, the his business, partly state-owned Finmeceanica 2 © Pearson Eduratinn limited 2011 munenennianseeevwvvvvvvuvvvvvvvVvUuvUuvHvHvUHvHvHeUvUvvvoeeUese 1 Look through the whole article and find: a) two leaders~one in sport and one in business. ) the naimes of the organisations led by each leader above, ©. the names of five football taams. 4) the name of a helicopter manufacturer owned by ‘one of the organisations in b) above. 2 Complete these statements with appropriate forms of expressions from lines 1-24. i, 4) people notice you more than others, you are ) you train managers, you give them you have done something a lot, you have oft. 4) you get team members to work together better, you ‘among, them. ©) you have a lot of knowledge about something, yyou know a it 1) you cause an organisation to acquire particular qualities, you these qualities to it. 3. Find nouns in lines 42-56 referring to a) a team’s feeling of enthusiasm caused by someone or something outside it. b) team members obeying the rules. 9) ateam’s sense of where itis going. 4) ateam’s need to be successful and win. @) the good or bad feelings that team members have ata particular time 4 Find nouns in lines 25-41 illustrated by the examples (a-f). a) the most famous person ina film b) someone who admires e) above 9) the head of one company in relation to the head of another ‘d) someone who has worked for the same company for 35 years ©) the head of a company £) someone who goes regularly to a team's football matches puotocoPiasie © Pearson Education Limited 2011 TEXT BANK +> UNITS 5 Match the adverbs (1-8) from lines 25-69 with expressions that could replace them without changing the meaning (ah): 1 surprisingly a) almost certainly 2 probably ») fest 3. previously © badly 4 sorely @ partly 5 badly ©) earlier 6 partly £) sorely 7 prima ®) unexpectedly 8 cuickiy 4) mainiy 6 Find the answers to these questions 42-69. 2) Which two qualities have alloned both Capello and Guarguaglin to succeed? ) Give the main cause and the resulting reasons for Finmeccanica’s poor performance before Guarguaglini took over. ©) Where did Guarguagtin start to change his company's fortunes? ) How is this change referred to? ©) Which two companies did Finmeccanica take ver? Are they both named? Did Finmeccanica have holdings in them before? @) Is Finmeccanica the second biggest defence company in the UK in terms of the number of, employees? Over to you 1 ‘What are the main differences between sports coaching and corporate team building? Over to you 2 Look again at the answers to question 3 above. Describe the state of these things in relation to an organisation you know, for example a company or a sports team. 143| unit 8 “Team building TEAMS OF FIVE AND TEAMS OF ONE HUNDRED BS Before you read ‘Think of a business team or one you would like to work in. What would be the Ideal ‘number of people init? Why? Reading Read this article from the Financial Times by Jonathan Moules and do the exercises that follow. Success and satisfaction Jonathan Moules ‘The problem with expanding a busi- “What worked for me when we were experience that you can have dealing nessis that itonly becomes harderto _a team of five, six, seven or eight,1 with a law firm. We don’t believe engage your staf. “It is the culture was finding too much when we got _thatif we expand, we would be able that will keep people working for 1020 people.” to give that level of service.” 5 you,” says Brian Chemett, founder 39 When Mr Hooper asked his staff ss Unlike many law firms, George of the Academy for Chief Execu- what they wanted, he realised he Davies discourages its employees tives, a leadership coaching club. needed to delegate responsibility. from working long hours. Those that “The difference between small and Westlakes now has a board of five are parents are encouraged to spend big business is that itis easier to directors, promoted from within More time with their families, Such | 10 retain chat culture in a small organi- 25 Hooper's team. “It is all about let- «policies lead to a better office attno- sation than ina large one.” ting go.” he says. “Everybody now sphere and. greater employee ‘Andy Hooper quit his salaried job has visibility of what we are doing commitment, secotding to Ms Pear. with alarge corporation in 2004 10 and why we are doing it, We are. son, who notes many of the set up Westlakes Engineering, an using everybody's ideas.” ‘employees have been with George 1s architecture and engineering consul- 9 Some companies consciously «6 Davies for more than a decade, fancy on the west coast of Cumbria. restrain the growth of their work- ‘Acompany need notlose the vital- At first, he found growth easy, foreetomaintain the culture of their ity of a small enterprise as it grows, largely because he could foster a organisation. With almost 100 staff, says David MacLeod, who co-wrote culture where everyone wanted tobe George Davies, aManchester-based the governments report last year on + & part of the company’s success. By 4s legal frm, is neither small norespe- 7 employee engagement. He claims the time the company employed 20 cially large, but that is the way it businesses reach a “break point” people, however, MrHooper noticed wants tostay.Lisa Pearson, business when the head cout passes 20 and that leading the team lad become _ development manager, says: “Our an owner’s personality alone can no much harder work, “I und myself _priority is to make sure everybody longer be the sole driving farce. 2 imereasingly stretches hhe recalls.» who deals with this firm has the best RPRARARARAAARRANAANHRAANAANAARARAARKRHRAARAR AAA 144 © Pearson Education Limited 2011 puararnsiameVUHLUUVYUHUUUEUEEUE eovvvvvuvvuvevduUevuuUUUYU 1 Look through the whole article to find these people and organisations, and what they do. @) Brian Chernett 1) Andy Hooper ©) George Davies @) Lisa Pearson ©) David MacLeod 2. Look at how the expressions in italic are used in lines 1-29 and choose the correct alternative meaning. 41. ‘The problem with expanding a business is that It only becomes harder to engage your staff (ine 3) a) recruit 8) motivate and inspire 2. “its the culture that will keep people working for yous.” (ine 3) a) arts, music, painting, literature, et. 3) the way people think and do things 3. ‘the Acedemy for Chief Executives, a leadership ‘coaching club.” (tne 7) 4) training b) schooling 4 “The difference between small and big business is that itis easier to retain that culture ina smell organisation than ina large one.” (line 10) ) keep b) remember 5 ‘nh could foster a culture where everyone wanted to be a part ofthe company’s success... {ine 18) a) adopt b) encourage {6 “Ifound myself increasingly stretched," {line 25) 4) challenged and stimulated) made longer 3 Correct, where necessary, the structures of these expressions used in lines 30-54, 1. todelegate down responsibility ine 32) 2. to promote someone from within a particular department to the board of directors (ine 33) 3 torestrain the growth of the workforce of an ‘organisation (line 41) 4 to maintain up the culture of an organisation Aine 42) 5 todeal with an organisation (line 50) 6 toexpand up (line $3) PuorocoPiAsLe © Pearson Education Limited 2011, TEXTBANK +> UNITS 4, Now match the verbs in the expressions above to their meanings. a) timit b) keep the same 6) talkto and work with 4) give someone a more important job 6) got bigger 1) sivesomeone more power 5. Read lines 55-74 and decide if these statements are true or false. 4) George Davies encourages its employees to work longer hours than from 9 to 5 b) The firm likes all its employees to spend mare time with their families. ©. Family-friendly policies make employees more committed to the organisation, 4) Most of George Davies's employees have been ‘there more than 10 years. €) It’s not inevitable for small companies to lose their dynamism as they grow. ) However bigthe firm, the owner's personality will be the anly real factor in motivating people. Over to you 1 Why isthe ole ofthe organisation's boss different in big and small teams? Over to you 2 George Davies discourages its employees from working long hours and those that are parents are encouraged to spend more time with their families. Is this a possible way of working forall organisations? Why? / Why not? 145T UNIT 9 Raising finance 1 Before you read if you had an dea fora business start-up, where would you g for ance? Reading WILLING AND LESS WILLING LENDERS Read this article from the Financial Times by Brian Groom and Jonathan Guthrie and do the exercises that follow. oe Small businesses and the banks ‘The frosty relationship between business and banks over credit is at last showing tentative signs of a thaw. Business leaders warn, how- 5 ever, that bankruptcies could rise sharply inthe next 12 months unless sufficient finance is available, espe- cially for smaller companies, while banks say companies must over- 40 come their reluctance to borrow. ‘The EEF manufacturers’ organisa tion reports on Monday an easing of credit conditions forthe first time in more than a year. In a survey of 410 ls manufacturers, 33 per cent said the cast of finance had inereased in the past wo months ~ down from 47 per feet inthe third quarter. Just one in five reported a decline in availab 20 of new borrowing, down from one inthe. Annika Bosanguet has been strug~ ling to raise finance to fulfil orders worth more than £200,000. The founder of upmarket packaging ‘company Wrapology, which has cli- 406 by Brian Groom and Jonathan Guthrie ents such as Harrods and Armani, first approached HSBC fora letterof credit this summer but she was tumed down. The bank also declined to support a loan via the govern ments Enterprise Finance Guarantee scheme. “HSBC said thatthe scheme was thrust on them the day thatthe gov= ernment announced it to the press and that they had no system for pro: ‘essing applications,” Ms Bosanguet says. The bank also tried to halve ‘Wrapology’s overdraft to £50,000, she says, The former anthropologist, who runs Wrapology with her brother Tom, did not fare any better with Barclays, which refused her request fora Teter of credit and said itcould not extend any finance under the EFG because the scheme was “for refinancing, not working capital” ‘Ms Bosanguet, who is a board member of Enterprise Insight, a government-sponsored body that promotes entrepreneurship, says: “Tt is vory depressing because we are not looking for unfunded borrowing = we have confirmed orders.” The company needs to pay for packaging orders made overseas before it can collect payments from its own cus- tomers, which include John Lewis, the department tore, and Monsoon, the fashion retailer. HSBC says it has kept Wrapolo- gy’s overdraft st £100,000 and denies threatening to reduce it, even though she has gone well over her overdraft imit”. Barclays says it ‘ims t lend “appropriately” and that itwould be “irresponsible” to put up sums that clients might find hard 10 repay. Ms Bosanguet set up Wrapol- ogy in 2001. Last year it had a turnover of £1.4m and according to the entrepreneur will make a profit this year. She says: “There is no point the government fretting over ‘economic policy if it cannot get ‘money int the system.” © Pearson Education Limited 2011 PHOTOCOPIABLE a a a a a a ee ee ee ee ee, ee, ee ee, ee, ee, ee: er: er: er: ee; ee: er:eye ve eve veUusEEUUTUUUUUUUYUUUEUUHeHeeeeee 1 Look through the whole article to find the names of: a) anemployers' organisation, b) awoman entrepreneur, her firm, ¢) four of her clients, 6) a government organisation to back loans to entrepreneurs, f) abank. ) the entrepreneur's brother. 1) a government-backed organisation to encourage entrepreneurship, 2 Read lines 1-21 and decide ifthese statements are true or false. a) The relationship between business and banks 's compared to weather conditions. b) These conditions seem to be improving. Q) The number of bankruptcies will fallin the next year, according to business leaders. 4) Banks say that companies are unwilling to ask for loans, ) More companies than before say that the cost of finance has gone up. Fewer companies than before say that i's possible to borrow. 3. Complete these statements with appropriate forms of verbs and phrasal verbs from lines (22-48. Ih a) you todo something, you find it difficult, b) you an order, you prepare and deliverit. 9 you ‘an organisation, you make contact with I @) arequest is + itis refused ©) arequest is itis refused, 4) ataskis given to you against your will tis ‘on you. 8) an organisation an application, it deals with it. Fy you well, badly, etc. ina particular situation, this is what happens to you in that situation. j) bank makes loans to firms, it finance to them. Puorocopiaste © Pearson Education Limited 2011 TEXTBANK ** UNITS 4 Look again at lines 22-48 to find finance- related expressions that mean: a) an agreement by a bank to give credit. (3 words) 8) an arrangement by a government to pay back loans when the borrower canna, contained in the name of an organisation, (3 words) when you take more money out of your bank account than you put in. (1 word) when you get loans to replace earlier loans. (1. word) e) the money needed to operate a business, for ‘example to pay suppliers before you are paid by customers. (2 words) 5 Match what the people (a-e) might say (1-5), based on lines 49-77. a) HSBC b) Annika 9) Monsoon spokesperson Bosanquet_ spokesperson @) Barclays e) UK spokesperson government spokesperson 1 ‘tim sad that we can't get finance. I's only because lenders don’t really understand ur situation. 2 ‘it would be crazy to lend to businesses that can't repay’ 3. ‘We're doing everything we can to get banks to lend to businesses, whatever some entrepreneurs say’ 4 ‘We haven't reduced Ms Bosanquet’s overdraft, whatever she says.” 5 ‘We've ordered goods from Wrapology, but we haven't patd for them yet. Over to you 1 ‘What is the relationship between small businesses and banks in your country? Over to you2 Imagine you own a small business which is in need of finance. What are the advantages and disadvantages ofa raising money from banks, and b) asking family ‘members to contribute? Compare and contrast the ‘wo approaches. 147| wile Raising finance CROWDFUNDING Before you read Would you invest in a young company ra Reading Read this article from the Financial Times by Emma jacobs and do the exercises that follow. » Jumping into a funding model for the online age Emma Jacobs Earlier this year; Trampoline Sys tems, a London-based technology company founded in 2003, realised if they were going to further expand the business they would need some ‘more money. So they sounded out a few venture capitalists. But, says Charles Armstrong, one of the com pany’s founders, “it soon became clear that it would be tough to raise ‘nance this way". So Trampoline bi ‘upon another route: “crowdfunding” ising small stakes from a large group of investors, particularly through online communities and social networks The crowdfunding concept derives from “crowdsourcing”, whereby organisations ask the public, usually via the Internet, to do {obs typically done by their employ: ces. For example, The Guardian newspaper's website recently asked readers to trawl through 700,000 expense claims by British Members ‘of Parliament to find acts of wrong doing. Crowdsourcing and crowdfunding could, in theory, ‘occur without the Interhet, says Jet Hove, the man who coined the term crowdsourcing” and wrote a book ‘nthe subject, but “it certainly helps tw accelerate the process”. ‘Trampoline was encouraged by the crowdfunding successes of the Tikes of SellaBand,a site which con- reets music fans with unsigned artists looking to record albums. ‘Musicians post their profiles and 4 songs, and ask the site's users to buy shares, at 2 minimum of $10. As soon as an artist sells 5,000 shares, they can record the albam and the proceeds are then split between the artist, SellaBand and the atist'ssup- porters, of “believers”, as the site calls them, ‘Trampoline’s effort is unusual, however, because the company is so already established ~ it employs 15 ‘and raised £2m in seed capital from ‘venture capitalists when it launched. But, says Mr Armstrong, with tradi- tional venture capital funds battening down the hatches in the ‘current dewnturn, it seemed like the best option Deloitte's Global Trends in Ven- ture Capital report notes: “The @ seconé round of raising finance 1g finance on the Internet? Why? / Why not? where a business is still finding its legs ... carries more risk given higher burn rates and the current uncertainty around future financ~ ings. So, we're seeing reduced investment levels as firms either invest smaller sums in very early~ stage companies or invest traditional sums in fewer and much later stage ‘companies. The middle ground has been largely vacated.” “Trampoline hopes crowdfunding will avoid these obstacles and create new opportunities. “A typical ven- tore capital funding would be half dozen investors. I suspect there'll be about 60 or 70 investors,” says Mr Armstrong. “The benefits of such a large investor network is that it will bring in new contacts and experi ence and will build a stronger support system.” The investment stakes for Trampoline are much higher than SellaBand. It is asking investors to put in a minimum of £10,000 and they hope to raise £m in total, They have not put a time limit on when they hope to achieve their target. RRARARARARANRARAHRARAARARARRARARARAARRAKR A BA alawww ewe vuevruvvuvvvvvve vv vvuvvvvevuUvuUuUvUeU ew eee 1 Choose the correct alternative to replace the expression italics from lines 1~33 so as to keep the closest meaning. 1 they sounded outa few venture capitalists.” Aline 6) 4) listened to b) approached «) heard *.. it soon became clear that it would be tough to raise finance this way”..." (line 10) a) easy) straightforward ©) difficult «...S0 Trampoline hit upon another rout “crowdfunding™..’ (ine 11) ) discovered b) ignored ¢) founded raising small stakes from a large group of restors, (line 13) a) investments.) interest ¢) bonds ‘particularly through online communities and social networks,’ (line 16) a) e-commerce sites b) emall programmes 6) sites like Facebook “1 The crowdfunding concept derives from “crowdsourcing”, .” (ine 18) a) goes 6) originates ¢) leaves ‘The Guardian newspaper's website recently ‘asked readers to trawl through 700,000 expense claims." (ine 24) @) examine indetailb) fish through 0 quickly read ‘it certainly helps to accelerate the pracess”.” Cine 33) @) slowdown 6) simplify) speed up Use expressions from lines 34-57 to answer these questions. 1 Wes Trampoline disappointed by the crowdfunding efforts of others? (ine 34) =No, itwas: by them Does SellaBand work with musicians who have not made commercial recordings? (line 37) Yes, it works with ‘i Does Sellaand ask banks ta invest in musiclans nits site? (ine 44) =No, it asks the site's users to buy shares, and they divide the between them, the site ‘and the musicians. Is Trampoline a start-up? (line 50) =No, it’s already How much did raise when itwas founded? (tne 51) Halse serene nto OF £2 milion, ‘Are venture capital funds investing alot at the moment? (line 55) =No, they'e .. : Was the economy booming in 20092 (line $6) No, we were ina PHorocopiasLE © Pearson Education Limited 2011 TEXTBANK ++ UNITS 3. Among the answers to Exercise 2, find an expression that .. 4) contains word that can also reer to painters ) could also relate to ships. ©. contains a vord that comes from farming. 4) isalso possible as the third person singular ofa verb. e) contains a word that means ‘bravery’. f)_ means the same as ‘recession’. 4) means the same asin existence 4 Combine words from the box below to make ‘expressions from lines 58-71 that refer to the following: 4) the second occasion an which companies look for finance, a it typically happens (3 words) ) used to describe the situation when companies use the money they have raised quickly (3 words) © people not knowing at the moment what's going to happen in the future (3 words) ¢) later occasions when firms will look for investment (2 words) ©) the amounts of money typically put into businesses (2 words) ‘firms that were founded longer ago than recent start-ups (3 words) ®) firms that ae neither very new nor mature in thelr development (2 words) burn classic_—uncertainty companies second current financings —_later-stage rates higher. round ground middle investment future levels 5. What is the main point in lines 72-89? Choose the best alternative. 4) Trampoline hopes to go into the music business by copying SellaBand's model and getting a larger investor network. b) By using crowsfunding, Trampoline hopes to get more investors than Is usual, forming a stronger base forthe company’s development. Time isnot important for Trampoline and itis willing to wait several years before getting the necessary investment to grov. Over to you 1 Go back tothe answer you gave In “Before you read’. Have you changed your mind ater reading the article? ‘Why? / Why not? Over to you 2 What types of business would be particularly sulted to crowdfunding? Give your reasons. 149“10 | Customer service 1 OUTLET V! LAGES Before you read petal outlet villages, outf-iwn shopping centres selling branded goods ata discount, tre becoming important around the word. Which outlet villages do you know? Reading Read this article from the Financial Times by Hannah Kuchler and do the exercises that follow. Bargain-hunting tourists find an outlet Hannah Kuchler Foreign tourists are fast becoming Selfridges or Harrods.” says Scott 5 is about £1,000 but it s not unusual the primary customers for many of | Malkin, chairman of Value Retail for them to spend more than Britain's outict villages. Some cen- +0 “We'll get information that a £10,000, Outlet village companies ‘res are even sending teams to Saudi princess is coming with 50 believe tourists are not embarrassed 5 emerging markets to lure wealthy other women so we'll eeate special _ 10 buy discounted goods because of tourists to plan wips that snub Lon- accommodation for them and bring « the importance of genuine brands Gon's Bond Street and opt for their in Arabie-speaking staf,” says Mr when counterfeited products are rife discounted designer brands instead. 2% Malkin, Tax-refunded sales, which _athome. ‘The number of Chinese consumers are one way of tracking sales from Mr Malkin thinks Bicester beats 1m visiting Bicester Village in Oxford. - outside the EU, increased 27 per _ Bond Street not only because ofits Shite has almost doubled inthe past cent in the West End of London last «> prices but because it offers greater ‘Year, with tourists from China now _year,butrose 88 percentatBicester. anonymity and thie opportunity to ‘making up more than a quarter ofall «0 McArthur Glen runs seven outlets ‘Oxford or Warwick as part of shoppers atthe village. inthe UK and has seen international day out. To accommodate the new va atue Retail, which rans Bicester customers rise by 50 percent in the _ visitors, retailers have started stock and eight other outlet villages past year, albeit from a lower base» ing smeller sizes and some are throughout Europe, has ateam of 30 than at Bicester. “Our reams on the employing sales staff who speak people who market the centres to 45 ground.noticed shift in the number foreign languages, Value Retail runs Foreign consumers. They visit the of tour buses, the Chinese became courses to teach store staff what 0 countries to give presentations to visible,” says Heinrik Madsen, man-_Asian customers expect. “The level tourist companies and use social aging director for McArthur Glen in 15 of customer service has to be very media to engage with shoppers _ northern Europe, precise because there's the language Unectly, Bicester even has its own 50 Even though they are choosing to barrier, the customers take a lot of blog written in Chinese where uses buy brands at a discount, foreign time and want to see alot of prod- 2s competitions toentice Chinese blog-_cistomers are not counting their ucts.” says Jane Soper, store fers 10 write for it. “Bicester is pennies: the average spend per visit 40 manager for Jimmy Choo. Setter known today in China than of am international visitor to Bicester = cS S Se = es S S ¢ S é ¢ ¢ «veseuvuuvuvgeggugeaege vues vuvuvvuvvvvdey 1 Look through the whole article and find: 4) a London shopping street b) an outlet village not in London two London department stores 4) two companies that own outlets ©) their chaltman and managing director respectively 1) aretalter 8) a store manager 2. Look through the whole article and match these figures to the things that they refer to. 1 30 4) the increase in international visitors to McArthur Glen stores last year 2 50 ») the increase in taxrefunded sales at Bicester last year ©) the number of women that a Saudi princess may bring shopping with her 4) the amount that visitors to Bicester spend on average @) what a visitor to Bicester might spend £) the increase in tax-refunded sales in the West End of London last year 7 over £10,000.) the number of people employed by Value Retail to market itin Asia 3 27 percent 4 BBper cent 5 50 per cent 6 £1,000 3 Choose the correct alternative to replace the expressions in italics from lines 1-14, 50 as to keep the same meaning. 1. Foreign tourists are fast becoming the primary customers for many of Britain’s outlet villages. a) first b) main ©) youngest 2 Some centres are even sending teams to ‘emerging markets to lure wealthy tourists a) attract) trick ©) magnetise 3.10 plan trips that snub London's Bond Street. 8) goto) ignore ¢) takein 1nd opt for thelr discounted designer brands instead. a) exclude b) add ©) choose 5 The number of Chinese consumers visiting Bicester Village in Oxfordshire has almost doubled in the past year, . a) gone up by nearly 100 per cent ) gone up by nearly 200 per cent © gone up nearly twice 6 .-.with tourists from China now making up more than a quarter of all shoppers at the village. ting b) consistent ¢) constituting TEXTBANK »> UNIT10 4 Find the infinitive forms of verbs in lines 15-29 that could be replaced by these verbs, with no change in meaning. a) manage b) sell 0 goto d) employ (occurs twice) ©) communicate 5 Look through lines 15-39 and 63-80. Which of these things are not mentioned as part of village outlets’ customer service? a) employing staf that speck foreign languages 8) employing Arabic-speaking staff ©) employing Chinese-speaking staff giving language training to existing stat ©) getting Arab visitors to write a blog in Arabic £) getting overseas visitors to use social media to talk about thelr experiences 2) training staffin what Asin customers expect 1) keeping smaller sizes in stock 1) Keeping larger sizes in stock 6 Use appropriate forms of the expressions in brackets from lines 40-62 to answer these questions. a) Is the rise in the number of overseas visitors to ‘McArthur Glen's outlets directly comparable to the rise in numbers visiting Bicester? (ower base) ») Isit the managers at head office who have noticed the increase in numbers with their own eyes? (on the ground) Has the number of tour buses with Chinese visitors stayed the same? (shift) 4) Are overseas visitors watching how much they spend overall? (count their pennies) ©) Are visitors happy to buy discounted goads? (embarrassed) f) Are there area lot of counterfeit goods in the Countries they come from? (rife) Over to you 1 What could the retail outlets that you use do to improve their customer service? Over to you 2 Value Retail runs courses to teach store staff what Asian ‘customers expect. Imagine that you are running. a course for a retailer that has alot of visitors from your country. What would the course cover? 151,a 10 Customer service SOCIAL MEDIA Before you read Ist possible to havea personal relationship witha brand? Why? / Why not? Reading Read this article from the Financial Times by Tim Bradshaw and do the exercises that follow. Do you want to be friends with a brand? ‘Tim Bradshaw ‘When first faced with the prospect of 2 tisers use social media alongside had failed to grab its brand name on ‘marketing on social networks, many these traditional channels foracom- 50 Twitter. and its main presence on the people ask a reasonable question; bination of brand-building, direct site~named“Ittle_break" ote into how many people want tobe friends sales, customer service and PR. The _@ wider marketing campaiga — was ‘swith a brand? The answer - surpris- worst simply ignore them,untilthey _stll showing special offers rather ingly, pethaps—is: millions do,on a 20 realise the complaints and accusa-_ than information on the disrupted daily basis. More than 10m people tions that unhappy customers are 8 service for some hours after the ‘each day become a “fan” of a brand telling other would-be consumers, problems began on Facebook. The world’s largest “Social media have given con- In the fast-paced, “real-time” vo social network with well inexcess _surmers a voice orespond, as wellas__environment of Twitter, just a few fof 400m members globally — plays ss hundreds of channels through which hours is long enough for such crt host to more than [tm branded fan do so," says Debbie Klein, joint © cism to spread widely, be chewed pages on Facebook. BrandZTop 100 chief executive of Engine, a UK- over by its users and, if it reaches a brands such as Coca-Cola and Star- based agency group. “These certain volume, be 1s bucks, along with other smaller websites have fundamentally trans- amplified further by the mainstream. brands such as Adidas that haveeach «0 formed marketing froma monologue _media, Kevin Smith, film director, “befriended” millions of people. toa dialogue. Brands cannot hide.” 65 caused a similar Twitter storm when Social media have matured rap- Burostar, for instance, recently he complained to more than Im fol= idly im recent years. Sites such a faced criticism for ignoring Twitter __lowers that Southwest Airlines threw a» YouTube, Facebook and Twitter messages ~ which, unlike most him off fight for being overweight. offer scale and reach to rival Google 4s Facebook posts, are usually made _Southwest later made two public ~ sill the most dominant single site public for anyone to read ~ from 7 apologies on its blog. for online advertising - ancl many angry customers trapped on trains television channels. The best adver- between Paris and London. Eurostar 459 © Pearson Education Limited 2011 PHOTOCOPIABLEwwvuvvuvvvVvvvVvv Vv vee eevee eee eee eee eae ae eee 1 Read lines 1-17 to find this information. The number of. a) people who become “riends’ of a brand each day ‘on Facebook. b) people overall who are members of Facebook, 9. brand-related fan pages there are on Facebook. 9) friends that brands such as Coca-Cola and Starbucks typically have. 2. Complete these statements with correct forms of expressions from lines 1-17. @) ifyouare: of something, you may do it in the future, and you may or may not be happy about this. b) Something that is normal and not strange is ©) awriter thinks that readers may not believe something, the writer can use the adverb ) Someone who likes and admires a film star, a brand, etc. is 2 @) Instead of using ‘more than’, you can say ) Am adver’ meaning ‘all around the world's. 8) Asocial website that contains particular pages to these pages. fh) Ifyou make fiends with someone, you. them, 3. Complete the table with words and ‘grammatically related words from lines 18-41. verb noun maturity reach rival i ‘combine complaint | accusations respond PuOTOCOPIABLE © Pearson Education Limited 2011 TEXT BANK »> UNIT 10 4, Now match the nouns i meanings. 4) ctcisms that may or may not be justified b) using a numberof things together the numberof people that you can communicate with 4) whena market starts to grow more slow, there ate fewer competitors, ee. @) you make a.......Wwhen you are not happy about something 1. when you apply particular methods, ideas, etc. 8) competition 1) when two people tak to each other D ananswer 1D) acompetitor Exercise 3 to their 5 Read lines 42-70 and decide if these statements are true or false. Twitter. 2) and its potential have been cleverty exploited by Eurostar. ) only showed advertising for short breaks from Eurostar even hours after the trains were delayed, allows criticism to spread very quickly. )_ messages are always picked up by the mainstream media. @) hada problem when Southwest Airlines threw an overweight customer off a flight. has apologised about this. 6 What is the key point made by the article? @) Every brand should have a presence on Twitter. ) Brand marketing has become a dialogue, and companies have to be aware ofthis, ©) Twitteris a good way of handling complaints about customer service. Over to you 1 Look atthe customer complaints in paragraphs 5 and 6 again. What should Eurostar and Southwest Airlines have done respectively ) in relation to Twitter and b) more generally? Over to you 2 Would you become a ‘rien ofa brand on Facebook? Iso, which one(s), and why? If not, why not? 153or 44 15a CRISIS PR Before you read In your country do public relations firms speci or private work, or do they undertake both? Readi Crisis management Read this article from the Financial Times by Matthew Garrahan and do the exercises that follow. The spin doctor of restructuring Matthew Garrahan Mike Sitrick has a book with hun reds of media contacts and is the spin doctor's spin doctor, helping clients cope with extreme media serutiny and advising them how to tell their side of the story. He says, however, PR is about much more than stories in newspapers. “We ask the client: who do you want to com- municate with? Is it customers, ‘employees, suppliers?” His talents are summed up in the title of his book Spin: How to Turn the Power ofthe Press to your Advantage. But although most of his firm's work is for businesses in trouble, he i proba bly best known for his celebrity work. ‘Clients are often controversial ~ such as Chris Brown, the singer who was arrested after assaulting his pop star girlfriend Rihanna, or Michael Vick, the football player who briefly became one of America’s most reviled men forhis involvement in dog-fighting ring. “We represent people trying to get their lives back In order,” says Mr Sitrick. “Ihave to believe that even if they have done something wrong, they are tying to tum their life around ~ or that allega- tions against them are false.” The celebrity work generates headlines but it is his corporate cli- cents that generate most of the firm’s revenues ~ more than 90 per cent, according to Mr Sitrick. The com- pany does not disclose its profits but inthe past 12 months revenues were about $25m (€18.2m, £16.5m), he says. His corporate work ranges from shaping the PR strategy for Exxon when it was being puminelled by negative headlines in the after- ‘math of the Exxon Valdez ol spill, to advising the late Roy Disney and Stanley Gold when he orchestrated their eampaign to remove Michsel Eisner as chairman of Walt Disney in 2003. The campaign led to 43 percent ‘of Disney shareholders withholding their support from him. Mr Eisner later sepped down voluntarily. ‘Mr Sitrick acted for Patricia Dunn, the former Hewlett-Packard chair- © Pearson Education Limited 2011 pHotocor » ‘man, who resigned in controversial circumstances after a boardroom spying scandal and put her up for a grilling on CBS's hard-hitting °60 Minutes" television programme. “People said we were crazy,” he says, "Some clients say to us: we'll talk, bat only to a softball reporter. Buc that’s wrong ~ you have to goin front of tough but fair reporters and make your ease.” A California judge later dismissed all charges against her. ‘Allis business comes by referral “We don’t even have a brochure" ‘and he tends to employ only for- mer journalists: his staff have, between them, won seven Pulitzer Prizes. “Talways fel it was easier to teach a journalist what PR was than teach a PR person what news was.” apanroennnnannanananrninwrnrnaAvARnhAaAnAnAAnhAnhARARANnRBnARaAaR,ee ee ee ee) evvuvvvvvVvVv Vv VKH VEU YU 1 Read lines 1-17 and decide if these statements are true or false. Mike Sitrick a) has a‘book’that is referred to inline 1 and this is the same as the one referred to inline 13. ) isa spin doctor. isnot admired by others working in PR. 4) helps his cients to deal with the media, ©) tells clients to concentrate on communicating with customers, £)isbest known for his work with famous people. ears most of his money from working with companies. 2. Use appropriate forms of expressions from lines 18-31 to complete these statements. someone 2) does something that not everyone likes, they are ) is taken by the police toa police station, they are Is hated and despised, they are .. 4) tries to behave better in the long term, they try to ‘get their lives ‘and turn thelr expressions) ©) has made against them, these are statements that may be true or false. 3. Answer these questions using the words given and correct forms of expressions from lines 32-52 of the article. 2) Does Mike Sitrick’s corporate work generate most of is sales? Yes, even ifitdoesn’t generate as many ) Does his corporate work cover a wide area? =YS, it... from work related to the Exxon Valder disaster to work with Disney. 9) Did he work for Exxon a long time after the disaster? No, he worked for them in its 0) Did he organise the campaign to remove Michael Eisner at Disney? Yes, he was the one who te @) Dida large number of shareholders stop supporting Eisner? =Yes, 43 per cent ) Was Elsner fired? =No, he PuorocoPiaste © Pearson Education Limited 2011, TEXTBANK *> UNIT32 4. Use the expressions in the box to replace those in italic in the extract so as to keep the same meaning. Journalist who asks easy questions dropped mad_leftherjob difficult interview critical Mr Sitrick acted for Patricia Dunn, the former Hewlett Packard chairman, who resigneda) in controversial circumstances after a boardroom spying scandal and put her up for a grilling b) on CBS's hard-hitting &) 60 ‘Minutes television programme. “People sald we were crazy, 6)" he says. “Some clients say to us, “We'll talk, but only to a softball reporter e).” But that’s wrong you have to go infront of tough but fair Teporters and make your case.” A California judge later dismissed f) all charges against her. 5 Correct the structures of the expressions in italics as they are used in lines 53-74 and 5. (There is one word too many in each structure.) ) act up for aclient ) put someone on up fora particular event ©) 80 onin font of an interviewer @) dismiss charges opposed against someone ©) employ on someone ina job win up a prize 8) teach in someone what something is Over to you 1 Ifyou were aPR professional, would you at for. 8) anoil company responsible for causing huge environmental damage? b) acelebrity with a ‘wild’ private life? Why? / Why not? Over to you 2 Think ofa recent corporate or celebrity scandal. Descrie the situation and the way it was dealt with professionally in terms of PR. 155“" 11) Crisis management ASSESSING RISK ee Before you read ‘What was the latest ‘scare story’ in the news (e.g. a public health concern)? ‘Was the scare justified or not? Reading Read this article from the Financial Times by John Kay and do the exercises that follow. How our leaders get to grips with a scare story John Kay Do you remember swine flu? Or the 25 promoters themselves. Scientists _bodies,corporate collapses,scandal- millennium bug? The dangers of have learnt that exaggerated claims 50 ous exposures ~it soon fades. salmonella in eggs or of cheese are a route to a media profile and When public and commercial made from unpasteurised milk? research funding. There is litle _ interests operate in the same ditec- 5 These care stories played foratime downside in predicting disaster: fit _ tion, the outcome is clear, but not and were then forgotten, but cost 9 does not materialise they can claim when they conflict. That is why large amounts of money and caused have been instrumental instaving 35 swine flu produced an exaggerated anxiety and loss to many individu- __itoff. Scares that thrive, such as the response but no action was taken to als. Some scares catch on: others do millennium bug and'swine fu,have restrain the credit boom. Public to not, Itis nonsense to claim that the commercial interests that benefit anger at bankers is now so great that dangers of the eredit expansion of 3s from their propagation. Naysayersin_ it threatens to overwhelm even their 2003-07 could not have been fore- the credit boom, by contrast, were « legendary lobbying capabilites Seen; those who did foresee ignored in the rush to share the ‘We want our experts to talk cer- problems could not attract public richesavailable to those who denied __tainties,not assess probabilities. The 1s attention or political support for _or disregarded the dangers. ‘explanation “we thought an event their views. Those warning of the 4 The regulator, or politician, con-_-might oceur but underestimated its danger of easy availability of nuclear fronted with warnings of danger « likelihood or severity” is never technology and of poor control of faces twin pressures of commercial acceptable: but that outcome does, the former Soviet Union's nuclear interest and public opinion. Indus- and should, happen often to people 2» weapons have experienced some- tries are a permanent lobbying who make decisions in complex thing simila. 4s presence. Public concern, by con: environments. The political and ‘Successful promotion of a scare rast,is fickle: itmay be strong when 1 regulatory incentives are either 10 requires that some interest group aroused, but unless supplied with a downplay risks or exaggerate them benefits. Sometimesthis isthe scare- string of newsworthy events dead ~ or todo each at different times. 156 © Pearson Education Limited 2011 PMOTOCOPLABLE BanhRanannnnnanannhnananhaAnANnANnRaAHARARAARARHRAAR.PISO SCG SST ST GFT SG Ee CTS TVevuvuvusuveegueess 1 Match the two parts of the expressions from lines 1-21. 1 swine stories 2 millennium technology 3 scare bug 4 credit fu 5 public ‘expansion 6 political attention 7 nuclear support 2. Now match the expressions to their meanings. a) dangerous events or possible dangerous events that may or may not be as serious as they sound ») adisease possible problem with computers at the end of 1989 ‘when politicians say that a problem Is important, spend money to solve, etc. ©) away of producing energy when banks increase the amount that they lend 8) when people believe that something is important @ 3 Read lines 22-39 and decide if these statements are true or false. €} The words promotion and promoters are used in theirnormal senses here. (nes 22 and 25) b) Exaggerated claims are objective and justified, ine26 ©) Ifyou have media profile, you ae well known through newspapers, television, etc (ine 27) 4) A downside is an advantage. (ine 29) ©) Ifyou stave something of, you help to prevent it happening. (ine 31) f) ifsomething thrives, it disappears quickly. (ine 3) #) The commercial interests that might have benefitted from two ofthe scare stories mentioned were IT companies and pharmaceutical companies. (ine 34) 1) You can tatk about the propagation ofan idea, a tumour, et. (ine 35) |) Naysayers are people who disapprove of something (ine 35) 1D. fyou disregard something, you pay attention toi. ine 38) Le © Pearson Education Limited 2011, ‘TEXTBANK »> UNI 4 Find expressions in lines 40-60 that refer to: 4) someone who ensures that companies ina particular industry obey laws. 4) companies and their profit-making activities. ©) what the publi thinks 4) influencing politicians and the laws that they pass. ©) when companies go bankrupt. {things that are reported in newspapers and on Tyete. 8) when people find out about and are shocked by ilegal activities. 1) the famous power of banks to Influence politicians. 5 Put these questions into the order in which they are answered in lines 40-60. 2) Which two examples show this? b) Which ofthese two examples is now causing people tobe very angry? ©) Which ofthese influences is stronger? 9) What two influences do regulators and politicians face when there sa possibly dangerous situation todeal with? ©) What happens when they are aifferent? £) What happens when the two influences go the same way? 8) What determines the strength of public concern about possible dangers? 6 Whatis the main point in lines 61-72? Choose the best alternative. Experts . a) can never know what is going to happen and deserve all the blame they get when they fail to prepare for disastrous events. ) can say after a disastrous event that they did not think it would happen, or would be so serious, ‘even if this does nat seem to be an acceptable thing to say Q. cannot be blamed when they fall to predict serious events, because regulators and politicians are either exaggerating or minimising the dangers all the time. Over to you 1 Think ofa recent scare story. How did the government in your country deal with it? Was this an overreaction? Explain your reasoning. Over to you 2 ‘We want our experts to talk certainties, not assess probabilities.’ After reading the last paragraph ofthe article, what do you think about this? Is the public ready to think in terms of probabilities? Why? / Why not? ra 157unit 12| Mergers and acquisitions 158 EXPANDING ABROAD . Before you read What isthe attitude in your country to takeovers of companies from abroad? Reading Read this article from the Financial Times by Robin Harding, Kathrin Hille and Song Jung-a and do the exercises that follow. Japan’s Rakuten poised for overseas expansion Robin Harding in Tokyo, Kathrin Hille in Beijing and Song Jung-a in Seoul In its 13 years of existence, Japan's ‘Rakuten has expanded from online hopping ito everything from credit ‘cards und stockbroking to golf reset= 5 vations and even a professional baseball team. So when president Hiroshi Mikitani says that he plans to expand into 27 foreign markets ~ 10 of them by the end of this year 1 — he deserves to be taken seriously. akuten’s overseas push is part of a growing trend by Asian Internet ‘companies to expand abroad as their domestic growth starts to slow 1s down, But in spite of the ambitions ‘of Asia's young Internet billionaires, calteral barriers and entrenched local competition may prove impos- sible o overcome. There have been ‘a series of deals so far this year. In addition to Rakuten’s tie-up with search engine Baidu to launch a ‘Chinese version of its shopping site, South Korea's largest search engine os NHN has boughtthe Japanese Inter access portal Livedoor. and China's “Tencent has invested $300m in Digital Sky Technologies of Russia, Kenlaro Hyakuno, the head of so Rakuten’s international business, 3 says his company stayed domestic fon purpose while building up the eco-system of merchants that use its ‘e-commerce site. Now it is ready to expand abroad and, Mr Hyakuno says, “Japan is grossing old, with less children, and if you want to keep growing 28 a corporation then ‘you need opportunity.” South Korea, whose Internet com- panies began (0 venture abroad in the early 2000s, provides some evi- dence. Its portals and search engines hhave struggled to make inroads into ‘ther countries, but its online game ‘makers have become serious con- tenders in overseas markets such a ‘China, Japan and the US Daum, the country’s largest portal, took over Lycos of the US in 2004 but had struggled to turn around the loss-making US business as it could not compete effectively with bigger rivals such as Google and Yahoo. “They face high entry barriers to offer portal and search services in foreign countries because such ser- vices are already dominated by big local players,” says Wayne Lee, analyst at South Korea's Woori Investment & Securities. "Language and culture are very important for Internet access portals and search services, compared with online 4 games. And itis not easy for foreign players to do well in offering such services based on local languages.” For Rakuten, as it contemplates its international blitz, the answer is to 79 look for markets Where infrastruc- ture such as broadband, credit cards ‘and delivery logistics are improving ‘but the market is not yet saturated with established players. “We evalu- 1 ated about 50 countries, we grouped them, and then we worked out the best approach,” says Mr Hyakuno. So far that has included launches in ‘Taiwan and China and an acquisition 10 in Thailand. India - a huge potential, market may be next on the lst. (© Pearson Education Limited 2011 PaorocoPrABLe RRARRAAAAAARARAARARARANRAHRARARRARBAAR