^ ' Includes audio CD of 12 interviews

^ with senior business people

• •

B usiness English 1amdbook

Advanced a a
E m m erso n

The whole of business5 in one book

 Business
Paul Emnierson English

Handbook
Advanced
The whole of business in one book

&
MACMILLAN
M a cm illa n Ed u catio n
B e tw e e n Tow ns Road, O xfo rd 0 X 4 3PP
A division o f M a cm illan P ublishers Lim ited
C o m p a n ie s and re presen tatives th ro u g h o u t the w o rld

ISBN 9 7 8 - 1 - 4 0 5 0 - 8 6 0 3 - 5

Text © Paul Em m e rso n 2 0 0 7

Design and illustratio n © M a cm illan Pub lish ers Lim ited 2 0 0 7

First p ub lished 2 0 0 7

A ll rig hts reserved ; no part o f this p u b licatio n m ay be re p ro d u ced , stored in a re trieval system , tran sm itte d m
any fo rm , or by a n y m ea n s, ele ctro n ic, m e ch a n ica l, p h o to co p yin g , record ing , or o th e rw is e , w ith o u t the p rior
w ritte n p erm ission of the pub lishers.

D esig ned by C a ro ly n G ib so n
Illustrated by G lyn G o o d w in and P eter H arper
C o ve r d esign by D esig ners C o llective

A u th o r's a c k n o w le d g e m e n ts
First and fo re m o st, a very big th an k yo u to Karen Spiller fo r co m b in in g roles o f free lan ce p roject m anager,
c o n te n t ed ito r and co p y edito r, and p roviding inp ut and cre a tivity at every tu rn .

T h a n k s are also d ue to A n n a C o w p e r, K a re r W h ile and Balvir K ou ra a t M a cm illa n , to C lare S h a w , to

C a ro ly n G ib so n fo r he r w o rk on th e g rap h ic d esign, and to M a rn a W a rn e r for tran scrib in g all the original
n terview s on w h ic h the a u d io scripts are b ased . A n d o f co u rse th e b oo k w o u ld no t be th e sam e w ith o u t
the w o n d e rfu l d ra w in g s o f G lyn G o o d w in . Find him on the w e b at w w w .g ly n g o o d w in .c o .u k

The a u th o r w o u ld like to th a n k c o llea g u e s a t th e In tern a tio n a l H o use E xe cu tive C e n tre (Lo n d o n ) fo r chan n ellin g
in te rv ie w e e s his w a y . A n esp ecial th an ks to Fiona Jo hnsto n in this reg ard . The usual g ra titu d e is d u e to my
D ire cto r o f Stu d ie s, M a u rice Cassidy, fo r fa cilita tin g m y w ritin g and te a ch in g and th e b a la n ce b e tw e e n th e tw o .

T h a n k s also to all m y stu d e n ts w h o acte d as g uinea-p igs fo r e arly versions of th ese un its. A special m en tio n is
due to th e stu d e n ts from C a m p u s 02 in G ra z, A u stria .

Finally, I w o u ld like to th a n k Roger H arrison fo r th e ‘ im e and troub le he to ok to prep are th e in te rv ie w , and for
his very va lu a b le co m m e n ts on the co n te n ts o f the related unit.

T he p ub lishers w o u ld like to th an k till th e p eople w h o gave up th e ir tim e to be in te rvie w e d fo r th e listening

m ate rial: A la in C a ffi, A n d ra s Feher, A n k e Hofer, D ave H e yw o o d , Elena P o d lip alina, F ern a n d o G il, Fran cisco Kuiz,
F rancois B ito u ze t, Jon G re e n h ill, K ate Irving, L a u ra Parrini, Livio R usso, Lorenzo B e cc a ttin i, M aria F ern and a
C u n h a , M a ria n W ig g , M iche le O livieri, Robert R ozanski and Roger H arriso n . T h a n k s also to B ro n w yn Sta ck ,
Dr T ho m as Lavelle, A n n e tte N olan, EN na Ivanova A n g e lo va , Dr Ilona M a th e , D a n u ta K o rta , Lauri Tolkki,
Sab ine Sc h u m a n n , K eith H anna and Ingrid A b e le for th eir va lu a b le input.

W h ils t every e ffo rt has been m ade to locate the o w n e rs o f c o p yrig h t m aterial in this b o o k, th ere m ay have oeen
som e cases w h e n th e pub lishers have been u n ab le to co n ta c t th e o w n e rs. W e sh o u ld be g ra te fu l to h e ar irom
a n yo n e w h o recog nises c o p yrig h t m aterial and w h o Is u n a c k n o w le d g e d . W e shall be p leased to m a ke the
n ecessary a m e n d m e n ts in fu tu re e dition s o f th e book.

Printed in Thailand

2011 2010 2009 2008

10 9 8 7 6 5 4 3 2
Contents

To th e stu d en t 4

To the tea ch er 5

B U S IN E S S T O P IC S

1 In du stries and com panies 6

2 G lo b alizatio n and econom ic policy 10

3 C o rpo rate strateg y and structure 14
4 M anaging people 18

5 O p eratio n s m an agem en t 22

6 Production 26

7 M arketing strate g y and product d evelo p m en t 30

8 D istribu tio n and prom otion 34

9 A ccounting and fin an cial statem en ts 38

10 Finan cial m arkets 44

11 Hum an resources 48

12 Inform ation and co m m unication techn o lo gy 52

E F F E C T IV E C O M M U N IC A TIO N

13 Trends, grap hs and fig u res 56

14 Presen tatio n s - structure and key p h rases 60

15 P resen tatio n s - being lively and p e rsu asive 64

16 D iscu ssion s 68
17 Social En g lish and cultural aw a ren ess 72

18 Style - clarity and em phasis 76

19 Style - p o liten ess and so ften in g 80

20 D eveloping an argum ent - linking w o rd s 1 84

21 D eveloping an argu m en t - linking w ords 2 88

22 D evelo ping an argu m en t - linking w ords 3 92

23 W riting p aragrap hs 96

24 CV (resum e) / Job in te rvie w 100

L IS T E N IN G P R A C T IC E
In terview s w ith b u sin ess people: exercises 104

1 Interview with a venture capitalist 6 Interview with a communications consultant

2 Interview with a CEO 7 Interview with an auditor

3 Interview with a project manager 8 Interview with a portfolio manager

4 Inten/iew with a design engineer 9 Inten/iew with an HR director

5 Inten/iew with a marketing director 10 Interview with an IT consultant

Listen in g scripts

A n sw e r key 121

3
To the student
Who is this book for?
T h is bo o k is for learn ers o f E n g lish at u p p e r in term ed iate
o r a d v an ced lev el (C E F lev els B 2 and C l ) w h o w ant to
co n so lid ate an d e x te n d th eir k n o w le d g e o f b u sin ess
English. It can be used e ith e r b y u n iv ersity stu d en ts
stu d y in g on a b u sin e ss-re la ted cou rse, o r by p eo p le alread y
w o rk in g and fo llo w in g a c a re e r in b u sin ess.
The bo o k is self-sfu d y. T h a t m ean s that y ou can use it on
y o u r ow n, w ith o u t a teacher. You can also use it in class,
and at the end o f each u n it there are sh o rt sp e a k in g or
w ritin g activ ities fo r classro o m use.
Why was this book w ritten?
C o n v e n tio n al co u rse b o o k s cov er so m e areas of b u sin e ss,
n ot all. They h av e texts and a rticle s that m ay be o ut o f d ate,
or tli a I in clu d e a lot o f lan g u ag e th a t is not relevan t. The
B u sin ess E nglish H a n d b o o k is d ifferen t:
i It aim s to co v er all the m a in to p ic areas an d all the m ain
c o m m u n ica tio n sk ills in one book.
It aim s to be h ig h ly fo cu sed , w ith lan g u ag e bc'ing ch osen
for m ax im u m u se fu ln e ss an d ju st the rig h t d eg re e of
ch allen g e for h ig h -lev el learn ers.
W h ere there is a d ifferen ce b etw een B ritish and
A m e rica n E n g lish , the w ord o r term m o st freq u en tly
used in in te rn a tio n a l b u sin e ss c o n te x ts h a s b een used,
fh e altern ative w ord or term is g iv en in b rack ets.
It p ro v id es in te re stin g and m o tiv a tin g listen in g
activ ities, lin ked to the units.
If you w o rk th ro u g h this b o o k from b e g in n in g to en d , y o u
will h av e cov ered the w h ole o f b u sin ess. You w ill h av e
stu d ied all the m o st im p o rta n t v o ca b u la ry and all th e m o st
im p o rtan t sp e a k in g and w ritin g te ch n iq u e s n e e d ed for
w o rk o r study.
How is the book organized?
O n e u n it co n sists o f fo u r p ages:
Tw o page« o f in p u t: a text o n the le ft and a m ind m ap on
the right. T h e re is a clo se re la tio n sh ip b e tw e e n the two.
Two p ag es o f p ractice e xercises. T h e se are m o stly based
on the lan g u ag e in the in p u t p ag es, b u t occasio n ally
there is som e n ew la n g u a g e th at is clo se iy related .
In the b o o k th ere are tw e n ty -fo u r un its. T h e se are d iv id ed
into tv.’i ■sectio n s o f tw elv e u n its each :
T h e first h a lf o f the b o o k co v ers the m ajo r b u sin ess
topics. L ook at the co n te n ts page. You w ill see th at the
book begins w ith tw o u n its th at giv e an o v erv ie w o f the
b u sin ess w o rld . F o llo w in g th is, there are tw o u n its on
m a n a g e m e n t l h e n th ere are u n its co v e rin g all the m a in
fu n ctio n al areas o f b u sin ess: p ro d u ctio n and o p eratio n s,
sales and m ark etin g , fin an ce, h u m a n reso u rces and
in fo rm atio n tech nology.
The seco n d h a lf o f the b o o k co v e rs b u sin e ss
c o m m u n ica tio n skills. T h is p art of the b o o k b e g in s w ith
a u n it o n the la n g u a g e o f trend s. It th en has u n its on
p rese n tatio n s, d iscu ssio n s and so cial E n glish . F o llo w in g
this there are tw o u n its th at d eal w ith the q u e stio n o f
style in sp e a k in g and w ritin g - first clarity and
d irectn ess, th e n p o lite n e ss and in d irectn ess. T h e n there
are three u n its all w ith the title 'D e v e lo p in g an
a rg u m en t' - the lan g u ag e in th ese u n its is relev an t for
d iscu ssio n s, p re se n ta tio n s and rep o rt w ritin g. T h e them e
o f w ritin g is e x p lo red in m ore d etail in the next unit,
called 'W ritin g p a ra g ra p h s'. T h is w ill be u sefu l for bo th
u n iv e rsity stu d en ts (a ca d e m ic w ritin g ) and b u sin e ss
p eo p le (rep o rt w ritin g ). F in a lly a unit on 'C V and job
in te rv ie w ' w ill h e lp those p eo p le lo o k in g for a jo b - now
o r in the futu re.
Audio CD and listening exercises
T h e re is an au d io C D attach ed to this b o o k . It co n tain s ten
liste n in g activ ities. L isten at h o m e, in y o u r car, o r in class.
Try the exercises (p ag es 1 0 4 -1 0 8 ). Final!'.- listen ag ain and
read the script.
Website references
You w ill n o tice w e b site referen ces at the b o tto m o f the page
in u n its 1—12. These h av e b een in clu d e d so that you can
fo llow up the to p ic o n y o u r ow n, acco rd in g to y o u r
in terests. T h e sites con tain a lot o f m aterial th at w ill g iv e
yo u good read in g p ractice and also h elp y o u w ith p ap ers
and p ro jects if yo u are a stu d en t. W e h a v e in clu d ed the
h o m e p ag e only, w ith a few b rie f h in ts to h elp you n av ig ate
to the relev an t p ag es. You m ay h a v e to d ic k aro u n d the site
a little b e fo re y ou find w h at yo u w ant.
How should I use this book?
You can stu d y an y u n it in any o rd e r (w ith the e x c e p tio n of
u n its 2 0 -2 2 ).
T h e a u th o r re co m m e n d s th at y o u lo o k a l the in p u t, try the
e xercises, and then fin ally lo o k b a ck a t th e in p u t again .
T h is w ill h elp y o u to m e m o riz e it an d w ill g iv e yo u the
gre ate st ch an ce o f u sin g the lan g u ag e activ e ly so o n e r rather
than later.
To the teacher
What is Business English Handbook?
T h in k o f it as a su p e r-c h a rg e d w o rk b o o k . D u rin g a co u rse it
w ill s u p p le m e n t a n y c la ssro o m m ate rial th at y o u alread y
use. A t the en d o f a co u rse it w ill p ro v id e fo llo w -u p and
review . It a llo w s y o u r s tu d e n ts to co n so lid a te w h a t they
h av e a lre a d y learn e d , a s w ell as fillin g in the g ap s fo r
things th at y o u d id n 't h av e tim e for.
Can I use Business English Handbook as
my main coursebook?
You ca n use it as y o u r m a in c o u rs e b o o k in so m e situ atio n s,
n a m e ly th o se w h e re y o u w a n t in te n siv e lexical in p u t and
p ractice fo llo w e d b y e x te n d e d s p e a k in g an d w ritin g
activ ities. M an y stu d e n ts w ill ap p re c ia te the fo cu s and
re le v a n ce o f the la n g u a g e , and fin d th is m o tiv a tin g . O th e rs
w ill w a n t a m o re co n v e n tio n a l m ain co u rse b oo k .
How can I make the input communicative?
T h e re are sev e ral w ay s to turn the d o u b le p ag e sp read o f
in p u t in to c o m m u n ica tiv e activ ities:
A S tu d en ts b ra in sto rm m in d m ap s an d th en co m p are
w ith the b o o k
P u t the cen tral title o f the m in d m ap o n the b o ard , and
then d raw the in n e r lin es w ith th eir h e ad in g s. A sk
stu d en ts to w o rk in p a irs to co p y w h a t is on the board ,
and then to e x te n d e ach b ra n c h w ith th eir o w n ideas.
E licit an idea or tw o fo r e a ch b ra n ch to g et started .
W h en the stu d e n ts fin ish , reg ro u p th em in to n ew pairs.
T h e y e x p la in th e ir m ap s to th eir n ew p artn ers.
Take w h o le -cla ss fe e d b a c k , b u ild in g up an e xten d ed
m in d m ap o n the b o ard , u sin g the b e st id eas.
Finally, the stu d e n ts lo o k at the v e rsio n in the b oo k. Let
them stu d y it fo r a few m in u tes, and th en co m p are w ith
the v e rsio n o n the b o ard .
F o r stu d en ts in w ork , a g o o d fo llo w -u p fo r h o m e w o rk
w o u ld be to m ak e a p e rso n a liz e d m in d m ap (w ith the
sam e cen tral title) b a se d o n th eir o w n jo b s. In the n ex t
class they e x p la in th eir m in d m ap s - e ith e r in p airs o r as
a p re se n ta tio n to the w h o le class. U n iv e rsity stu d en ts
w h o are n o t in w o rk can d o a s im ila r a ctiv ity b ased on
w h a t th ey h av e stu d ie d o n the re st o f th eir cou rse.
B S tu d e n ts p re d ict top ic id eas an d th en co m p a re w ith the
te x t on th e le ft-h a n d p ag e
W rite up o n the b o a rd the su b -h e a d in g s o r so m e key topic
w ord s fro m the text o n the le ft-h a n d p ag e. T h e n ask the
stu d en ts to w o rk in p airs to p re d ict w h a t id e a s the text w ill
m en tio n . T ake w h o le class feed b ack , w ritin g id eas o n the
bo ard . F in a lly the stu d e n ts read the text in the b o o k to
co m p are and co n tra st.
C T e a ch er-facilitated d isc u s s io n as p re p a ra tio n fo r
lo o k in g at th e text o r m in d m ap
B egin by sim p ly w ritin g the u n it h ead in g on the board . T h en
you , the teacher, lead a w h o le-class d iscu ssio n as a w arm er.
Stu d en ts keep their b o o k s clo sed b u t y o u hav e it o p en in
front o f y o u as a reference. You carefu lly strik e a b alan ce
betw een a) g u id in g the d iscu ssio n so that so m e o f the ideas
in the b o o k w ill be fam iliar to the stu d en ts w h e n they op en it
and b ) allo w in g the d iscu ssio n to fo llo w the interests o f the
stud en ts, e v en if the id eas are n o t m en tio n ed in the book.
A fter the d iscu ssio n the stu d en ts o p e n their b o o k s and read
the text and look at the m ind m ap. T h is w ill be an easier and
m ore in terestin g task fo llo w in g y o u r w arm er.
D S tu d en ts p re p a re h a lf o f the in p u t fo r h o m e w o rk , th en
p eer teach in class
D iv id e the c la ss into A / B p a irs at the e n d o f a lesso n , w ith
A b e in g g iv en the le ft-h a n d p ag e text and B the m ind m ap.
T h e ir h o m e w o rk task is to read th e ir o w n p ag e carefully,
ch e ck in g an y u n k n o w n w o rd s in a d ictio n ary, and th in k in g
a b o u t the g en eral id e a s in the u n it (re la tin g it to th e ir o w n
jo b s o r aca d e m ic stu d ie s, d o in g so m e In te rn e t re se arch , etc).
B ack in class, p u t stu d e n ts in to the A / B p airs. T h e y b eg in
by silen tly re a d in g the h a lf o f the in p u t th at th e y d id n o t
prep are. T h e n th ey take tu rn s to e x p la in w h a t they
p rep ared fo r h o m ew o rk . A n y final d iscu ssio n can be kep t
w ith in the sam e p air o r o p e n e d o u t to the w h o le class.
How can I work with the exercises and
speaking / writing tasks?
H a v in g stu d ie d the in p u t p ag es, ask the stu d e n ts to d o the
exercises. U su a lly stu d e n ts d o n o t h a v e to lo o k b a ck in
o rd er to co m p le te them .
A t the end o f e ach u n it there are sp e a k in g or w ritin g
activities. Let the d iscu ssio n s ru n. T ake no tes o n errors, lacks,
p ro n u n ciatio n - w h atev er w ill help the stu d en ts to exp ress
th em selv es m ore clearly. T h e n allo w p len ty o f tim e at the
en d o f the lesso n to deal w ith these p oints in a feed b ack slot.
U se feed b ack to extend lan g u ag e (co llo catio n s, related
w ord s, o p p o sites) as w ell as ju st correct it.
H e lp the p ro cess o f la n g u a g e a c q u isitio n by e n c o u ra g in g
stu d en ts to re-read the in p u t sile n tly in class: ju s t b efo re
sp e a k in g / w ritin g , after a w eek , a fte r a m o n th .
What are the listening activities?
O n the au d io C D there are ten liste n in g activ ities featu rin g
b u sin ess p eo p le b ein g in terv iew ed ab o u t th eir w ork . T h ey
are d esig n ed to b e u sed ind ep en d en tly . T h e )' finish w ith
fu rth er o p p o rtu n itie s for sp e ak in g p ractice, b a sed on
w h atev er the stu d en ts foun d in te re stin g in the script.
 Industries and companies

G oing to w o rk fo r a large co m p a n y is like g ettin g o n a train. A re y o u g o in g sixty m iles an

h o u r or is th e train g o in g sixty m iles an h o u r a n d y o u ’re ju s t sitting still?
J Paul G etty (1892-1976), A m erican in d u strialist

Industry groups A p u b lic lim ited c o m p a n y (U S: a co rp o ratio n ). H ere the

co m p a n y is o w n e d b y sh a re h o ld e rs (U S: sto ck h o ld ers),
A n atio n al eco n o m y can be d escrib ed in term s o f its m ain
w h o m ig h t be:
secto rs and in d u stries. (See the m ind m ap o p p o site .) T h is
- large fin an cial in stitu tio n s (eg p e n sio n fu n d s o r
m in d m ap is a sim p lifie d v ersio n o f the 'G lo b a l In d u stry
in v e stm e n t b an k s).
C lassificatio n S ta n d a rd ', d ev e lo p e d by M o rg a n S ta n ley and
- o th er co m p an ies.
S tand ard and P o o r 's an d u sed in p u b lica tio n s lik e B u sin ess
- m em b e rs o f the p u b lic (and fo r this re aso n the
W eek.
co m p a n y is called a 'p u b lic ' co m p an y ).
A n o th er w ay to c lassify an e co n o m y is:
T h e sh a re h o ld e rs receiv e a sh are of the p ro fits e v ery year
P rim ary in d u stries, w h ich in clu d e ag ricu ltu re, fo restry
(paid as d iv id e n d s), an d w ill also get a cap ital g a in or
and m ining.
loss w h e n th ey sell th eir sh ares (b e ca u se the price can go
S e co n d a ry in d u stries, w h ic h in clu d e c o n stru ctio n and
up o r d o w n on the sto ck m ark e t). 1 hose are large
m an u factu rin g . M a n u fa ctu rin g itself is often d iv id ed
co m p an ie s, and are ru n by m a n a g e rs u n d e r the
into cap ital g o o d s (eg e q u ip m en t and m a ch in e ry used to
su p e rv isio n o f a B oard . In o fficial d o cu m e n ts, the
p ro d u ce o th er g oo d s), d u rab le go o d s (eg cars, w a sh in g
c o m p a n y n am e is fo llo w ed b y P L C (U K ) or Inc o r C o rp
m ach in es) and n o n -d u ra b le g o o d s (eg food, cloth mg).
(U S).
Serv ice in d u stries, w h ich in clu d e b an k in g ,
A fran ch ise. T h is typ e o f c o m p a n y in clu d e s M cD o n a ld 's
e n tertain m en t, to u rism .
and the B o d y S h o p . H ere the b u sin e ss o w n e r allow s
A n e co n o m y can also be d iv id e d into:
o th er p eo p le (fran ch isee s) to set up in b u sin ess u sin g the
T h e p riv ate sector, w h ich in clu d e s large corp oration s*
co m p a n y 's b ra n d n am e, p ro d u cts an d rep u tatio n . The
S M E s (= sm all an d m e d iu m -siz ed e n te rp rise s) and
fran ch isee h as v ary in g d eg rees o f con trol o v er how
in d iv id u a ls w o rk in g on a s e lf-e m p lo y e d b asis.
p ro d u cts are m a rk e te d and sold .
9 T h e p u b lic sector, w h ere th ere are sch o o ls an d h o sp itals
as w ell as S O E s (= sta te -o w n ed e n te rp rise s) such as Business expansion
railw ay s and the p o st office.
T h e re are v a rio u s w a y s th at a co m p a n y can grow :

Types of business In te rn a l g ro w th : stay p riv ate. T h e co m p an y in creases its

sales, n u m b e r of e m p lo y e e s, etc, b u t stay s as a p riv ate
W ithin each in d u stry there can be a v ariety o f typ es ot
com p an y , p e rh ap s ru n b y the o rig in al fo u n d e rs o f the
b u sin e ss o rg an izatio n , each w ith their o w n leg al stru ctu re.
b u sin e ss (o ften fam ily m em b ers).
A b u sin ess can be:
In tern al g ro w th : IP O . T h e c o m p a n y m o v e s from b ein g a
A sole trad er (U S: sole p ro p rie to rsh ip ). H ere the b u sin ess
sm all, fa m ily -o w n e d firm to b e in g a larg e co rp o ration
is ow n ed by o n e p erso n , w h o is 's e lf-e m p lo y e d '. T h at
w ith a s to c k -m a rk e t listin g . T h e p ro cess o f issu in g shares
in d iv id u al h a s u n lim ite d liab ility - they are p erso n ally
fo r the first tim e is called an IP O (initial p u b lic offerin g).
resp o n sib le fo r any d ebts. A self-e m p lo y e d p ro fessio n al
■ In te rn a l g ro w th : 'tra d e sa le ' to a m u ch larg er co m p an y
will refer to th em selv es as a 'fre e la n c e r '.
in the sam e sector. In th is case the o rig in al sm all
A p artn ersh ip . H ere tw o o r m ore p eo p le ru n the
co m p a n y is ab so rb ed an d its n am e o ften d isap p ears.
b u sin e ss together. L a w y e rs, a rch ite cts and au d itin g firm s
M a n y start-u p s in the IT and b io te c h n o lo g y areas sell
are ty p ical p artn ersh ip s.
th em selv es in this way. (M icro so ft, In te l and G o o g le all
A lim ite d liab ility com p any. H ere th ere is a legal
grew b y b u y in g start-u p s.)
d istin ctio n b e tw e e n the c o m p a n y and the o w n ers, so the
M e rg e r. Tw o e sta b lish ed co m p an ie s jo in to fo rm one (eg
co m p an y is re sp o n sib le fo r any d eb ts, n o t the o w n ers.
M e rced e s an d C h ry sler).
T h e o w n ers th erefo re h av e 'lim ite d lia b ility '. T h is typ e o f
A cq u isitio n (= tak e o v e r). O n e e sta b lish ed co m p a n y bu y s
com p an y is o ften q u ite sm all, and in clu d es m an y fam ily-
another. T h e first step in an acq u isitio n is o ften to take a
run b u sin esses. T h e co m p a n y is referred to as a 'p riv a te '
co n tro llin g stak e in the o th e r com p an y - b u y in g a large
co m p an y b e ca u se sh ares c a n n o t b e sold to m e m b e rs of
n u m b e r o f sh ares b u t w ith o u t c o m p le te o w n e rsh ip . The
the p u b lic. In o fficial d o cu m e n ts, the c o m p a n y n am e is
acq u ired c o m p a n y o ften k e e p s its o rig in al trad in g nam e,
fo llo w e d b y Ltd (U K ) m e an in g 'lim ite d ', o r Lie (U S)
b e co m in g a su b sid ia ry of the la rg e r 'p a re n t co m p an y '.
m ean in g 'lim ited liab ility co m p a n y '.

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 INDUSTRIES AND COMPANIES

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 9 Industries and companies:
1.1 Fill in the m issing letters.
1 Goods that are carried by ship, train or aircraft are called
'fr t'.
2 A product used in the home is a ' h o . Id product'.
3 Pieces of electrical equipment used in people's homes are
'app____________ s'.
4 The words 'clothing' and 'drinks' are conversational. In a
business context you often see the words 'app
'bev__________ s'.
5 Rooms, equipment or services that are provided for a
particular purpose are 'fac ________s'.
6 Another term for 'property' is 'r e_________ '.
7 The business of buying and selling shares is called
'b r ________age'.
8 Public services used by everyone are 'u _ . . ____
1.2 The w ords appliance, device, eq u ip m en t and
m achinery are similar. Com plete the collocations by
choosing the best one.
1 kitchen / office / standard
2 heavy / agricultural / construction . _
3 a handheld / labour-saving / safety
4 a household / domestic / e le ctrical______________________
1.3 Underline the correct w ords.
1 Goods that are needed and used all the time are in the
consum er discretionary / consum er staples sector.
2 Goods that are not basic to people's lives are in the
consum er discretionary / consum er staples sector.
1 .4 First match the com pany nam es in the box to the
descriptions below . Then w rite the industry group from
the mind map (see first exam ple).
Cisco Citigroup ExxonMobil GE (General Electric)
Intel Pfizer Proctor & Gamble Wal-Mart
PwC (PriceWaterhouseCoopers) UPS (United Parcels Service)
1 The world's largest oil producer and distributor.
t <xonMobil / Oil and gas
2 Provides auditing, tax and consulting services to other
b u sinesses. / order.
3 An international company, its services include current
accounts (AmE checking accounts), insurance, stock
brokerage, investment banking and consumer finance.
_ _ /.
4 Designs and manufactures microprocessors and specialized
ntegrated circuits. / .
5 The world's #1 maker of household and personal products;
more than twenty of its brands are billion-dollar sellers
(including Ariel, Fairy, Gillette, Pampers and Pantene).
/ ______________
8
Exercises
6 One of America's largest and most diverse corporations,
its products cover power generation, jet engines,
financial services, medical imaging, etc. The name of its
industry group reflects the wide range of activities.
/ _____________________
7 A global health care company, famous for making Viagra;
its competitors include Glaxosmithkline and Novartis.
/ __________________
I' and
8 The largest private employer in the US; $9 out of every
$100 that Americans spend on shopping is spent in their
stores. / __________________
9 A worldwide delivery company; it also offers customs
handling, international trade management and supply
chain d e s ig n .______________________/ .
10 Manufactures hardware such as switches and routers that
s'.
allow the Internet to function and computers to talk to
each o th e r .______________________/ _
1.5 Complete the definitions using the words in the box.
household appliances business solutions
consumer durables fabrication finished goods
food and beverages non-durable goods raw materials.
1 M anufacturing is the transformation of
________________________________ into
Some industries, like
semiconductors and steel, use the term
in place of 'm anufacturing'.
2 are manufactured goods that
are not destroyed by use, such as automobiles,
or furniture.
3 _____________________________generally last for only a short
time. Common examples are __________________
apparel, office stationery and gasoline.
Sometimes a manufacturing company positions itself as a
service company. Microsoft, IBM and SAP are good
examples. They offer not just products, but
1.6 Com plete each explanation w ith a pair of w ords
from the box. The w ord s m ay not be in the correct
acquisition / merger debt / liability enterprise / venture
firm / partnership freelancer / self-employed
senior management team / Board
1 The . is elected by the
shareholders and is responsible to them. It can hire and fire
the CEO, but t h e _________________________________ (including
the CEO) run the company on a day-to-day basis.

2 A is a new business activity,
and it collocates with the word 'capital' to mean money
available to expand a successful start-up. An
_________________________________ is either a company, or any
large important project. Used w ithout the article it
collocates w ith 'free' and 'private' to give a synonym for
'capitalism'.
3 A _ is simply money that
somebody owes. A . _ refers to
an am ount of money that a company owes, but it can also
mean the legal responsibility for paying for something.
4 Many people work for themselves, with the legal status of
sole trader. If they are a plumber or a shop-keeper, they are
likely to refer to themselves a s
If they are a professional w ho works for several companies
(eg a journalist or independent consultant), they are likely
to refer to themselves as a
5 The w o r d ________________________________ can just be a
synonym for 'com pany'. But it is more often used for a
small company providing a professional service, such as a
of accountants, lawyers or
architects.
6 A ■ J is when tw o companies join
to form one. The suggestion is that the process is
welcomed by both sides. An .
when one company buys another. The process could be
unwelcome by the smaller company, w ho might feel that
they are being taken over.
The text b elo w explains the process of becoming a
public company. Fill in each gap w ith a w ord from the
box.
appoint constraints guarantee held
issue reinvested run underwriting
' hen a privately-owned com pany reaches a certain
size, it may decide to ‘go public’ and
shares on the stock market.
This process is called an Initial Public Offering (IPO ), or a
flotation, or a ‘listing’ on the exchange.
The process is com plicated, and months of planning
are involved. The business is probably being
2 by just a few key people who
were the founding m embers. Before the IPO, they have to
Discussion topics
1 In five years' time, the industry group I'd most like to work
in is because
One day I w an t to be a freelancer working for myself -
it'll be much more rewarding than being the CEO of a
large corporation.
A g re e D isagree
INDUSTRIES AND COMPANIES
assem ble an independent board, and one of the first tasks
of the board is to 3________________________________ auditors
who will check the accounts for accuracy.
The firm also needs specialist advice about the best
time to sell, the initial offer price of the shares, and who to
sell them to. This is all handled by an investment bank,
also appointed by the board. The investment bank takes
some risk as they 4 that all the
shares will be purchased - referred to in legal terms as
5_________________________________ the issue.
The flotation will bring a huge amount of new capital into
the business. Most of this is 6 _
. and used for expansion, but some will go to the people
with privately-7 shares who
started the original company. Nearly alw ays these people
. then continue as part of the management team, although
they may find it difficult to adjust to the red tape,
shareholder pressure, and other
8______ „ of a listed company.
Com plete the reasons for a m erger or acquisition
by m atching the beginnings of sentences 1-8 w ith the
best ending a)-h).
1 To expand the business quickly, particularly
2 To expand more cheaply than by internal growth, although
if □
3 To meet the needs of customers w ho are demanding
additional products and services
4 To gain economies of scale, ie have lower costs and
5 To gain control of .
6 To gain market power: the larger, merged company will
make the w hole market less competitive
7 To gain entry into a foreign market, or avoid □
8 To become and be □
a) a key supplier of raw materials or components.
b) and therefore prices and margins will increase.
c) seen as a global company.
d) if there is cash available on the balance sheet.
e) increased efficiency through larger size.
f) legal restrictions imposed on foreign-owned companies in
that market.
g) that the company can't supply.
h) the market thinks a company is a takeover target, its share
price will go up and it will become more expensive to buy.
3 If I w as an entrepreneur with a lot of money, I'd create a
start-up company making / supplying / offering ...
4 Most mergers fail to produce the expected benefits (fact).
Why?
 Globalization and economic policy
It's a recess/or. when your neighbour loses his jo b it's a depression w h en you lose you r own,
Harry S. Truman (1884-1972), thirty-third president of the United States
Forces driving globalization
T h e m ain d riv ers o f g lo b a liz a tio n are:
C o st factors. C o m p a n ie s are lo o k in g for ch eap er lab o u r
and m a n u fa ctu rin g costs to e n a b le them to stay
co m p etitiv e, so th ey o u tso u rce to o th e r co u n tries, i h e
co u n try re ce iv in g the in w ard in v e stm e n t b e n e fits from
the cre atio n o f jo b s, skills d ev e lo p m e n t and tech n o lo g y
transfer. Its lo w costs giv e it a m ajo r co m p etitiv e
ad van tage.
M a rk et factors. A s d o m e stic m ark e ts b e co m e satu rated ,
so e m e rg in g m a rk e ts o ffer n ew o p p o rtu n itie s. T h e B R IC s
(B razil, R u ssia, India, C h in a ) cou ld d o m in ate w orld
trad e in the 21st century, as the U S d id in the 20th and
the U K in the 19th. In any case, c o m p a n ie s n e e d to
e sta b lish a glo bal p re se n ce b e ca u se cu sto m e rs are also
glob al. It is d an g e ro u s to stan d asid e as co m p e tito rs
m erg e an d m ak e allian ces.
Technology factors. I'he In tern et m ak es com p ariso n of
su p p ly chain costs easy for m an u factu rers, and
co m p arison o f final price easy for the end -u ser. M o bile
com m u n ication s allow em p loyees to keep in touch all
ov er the w orld. S o ftw are tools on com p an y intran ets
allow m an agers to access in fo rm ation anyw here, anytim e.
G lo b al b u sin e ss cycle. T h e 'b u sin e s s cy cle' - sh o w n
b elo w - u sed to h a p p en se p a ra te ly in d iffe re n t n ation al
eco n o m ies. W ith the in teg rated g lo b al econ om y, it is now
in tern atio n al.
- reco v ery (= u p sw in g )
- grow th (= e x p a n sio n / b o o m )
- recessio n (= c o n tra ctio n / d o w n tu rn )
- d e p re ssio n ( - slu m p )
In ev ery turn o f the cy cle, the p ace o f g lo b a liz a tio n is likely
to in crease - p a rticu la rly d u rin g the 're c o v e ry ' and 'g ro w th '
phases.
R em em b er th at n o t all recessio n s lead to a d ep ression -
there m ig h t ju st be a m ild slo w d o w n in the e co n o m y (seen
as a red u ctio n in G D P - g ro ss d o m e stic p ro d u ct).
Company strategy in the face of
globalization
If a co m p an y w a n ts to trad e o u tsid e its ow n n atio n al
b o rd ers, it h as three b a s ic stra te g ies, d ep en d in g on th e lev el
o f in v o lv e m e n t in the foreign m arket. T h e se three are not
m u tu ally ex clu siv e , and o n e can o ften lead to anoth er:
Im p o rt / Lxport. T h is is the lo w est risk b u t also g iv es
the lo w e st p rofit p o ten tial. R elated o p tio n s in clu d e
fran ch isin g and foreign licen sin g.
O u tso u rcin g . If co m p a n ie s w an t a d ee p e r level of
www. wto.o rg www o ecd.o rg
in v o lv e m e n t, w ith a lo n g -te rm co n tra c tu a l ag reem en t,
■they can o u tso u rce (= su b c o n tra c t) som e o r all o f their
m an u factu rin g . In creasin gly , s erv ice jo b s are also b ein g
o u tso u rced .
F o reign d irect in v e stm e n t (I DT). T h is is the h ig h e st risk
b u t g iv es the m o st con tro l and sh o w s the m o st
c o m m itm e n t to the glo bal m ark et. H ere co m p a n ie s buy
p ro p erty and b u sin e sse s in the fo reig n n atio n . FD I
in clu d e s acq u isitio n s to create o v erse a s d iv isio n s
(= su b sid iarie s), jo in t v en tu res and s tra te g ic allian ces. A
jo in t v e n tu re is w h ere tw o o r m o re c o m p a n ie s sh are the
costs and p ro fits in a p a rticu la r m ark et, b u t k eep their
sep a ra te id en tities.
Political strategy in the face of
globalization
P o liticia n s can m ak e tw o b a sic resp o n ses:
B ein g in fav o u r o f m a rk e t fo rc e s and d ere g u latio n . In
this case, p o liticia n s w ill try to m ak e th eir lab o u r
m a rk e ts m o re flex ib le , for e x a m p le by m ak in g it e a sie r to
h ire and fire p eo p le. I h ey w ill lo w er taxes to e n co u rag e
p riv ate in v e stm e n t an d p riv ate sp e n d in g . T h e y w ill cut
red tap e (-- b u re a u cra cy ) to m ak e it e a sie r to start a new
b u sin e ss. T h ey w ill e n c o u ra g e free trad e.
B ein g in fav o u r o f su b sid ies and p ro tectio n ism . In this
case, p o liticia n s w ill try to p ro tect the jo b secu rity and
social b e n e fits o f p eo p le w h o alread y hav e a jo b . T h ey
w ill su p p o rt h ig h taxes in o rd er to p ay fo r social
p ro g ram s and o th e r g o v e rn m e n t sp e n d in g . T h e y w ill try
to p ro te c t n atio n al b u sin e sse s and jo b s w ith m easu res
su ch as tariffs (= taxes) and q u o tas (= lim its) on im ports.
Measuring and analysing global trade
W h e n a n a ly sin g trad e, im p o rtan t co n ce p ts are:
B alan ce o f trad e. T h is is d ie d iffe re n ce b e tw e e n a
n a tio n 's im p o rts and exp o rts. If a co u n try e x p o rts m ore
to its trad in g p a rtn ers th a n it im p o rts, th en it h as a 'tra d e
s u rp lu s'. O th e rw ise it h as a 'tra d e d e fic it.
B a la n ce o f p ay m en ts. T h is is a m u ch w id e r m easu re - it
in clu d e s im p o rts and e x p o rts of g o o d s as ab ov e, b u t also
in clu d e s serv ic es and in v e stm e n ts.
: E x ch a n g e rates. C u rre n cie s (d ollars, eu ros, yen, etc)
flu ctu a te a g a in st e a ch o th e r a cco rd in g to su p p ly and
d em an d . If the v alu e o f a cu rren cy falls, exp o rts increase
(b ecau se th ey b e co m e c h e a p e r fo r o v erse a s cu sto m ers)
and fo reig n in v e stm e n t is stim u la ted (b e ca u se d o m estic
asse ts are c h e a p e r for fo reig n ers). O n the o th e r hand,
im p o rte d g o o d s b e co m e m o re exp en siv e, and con su m ers
feel this as a d rop in th e ir liv in g stan d ard s.
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 GLOBALIZATION AND ECONOM IC POLICY

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 Globalization and economic policy: Exercises

2.1 Fill in the m issing letters. M atch the com pany responses to globalization to
1 It is dangerous for a company to stand aside while their descriptions 1-7 below .
competitors rn e (= join together), form j t foreign subsidiary import / export joint venture
ven es, or create overseas divisions. franchising outsourcing strategic alliance licensing
2 A 'sub .y' (= company owned by another
company) is not the same as a 'sub y (= money paid 1 A company gives the right to m anufacture its product to a
by a government to support a business). foreign company for a fee (= royalty). This has been done
successfully by Coca-Cola and Disneyworld, although in
3 A less formal synonym for 'bureaucracy' is 7 __t_____ ’ .
other cases the local producer may choose to use a
4 A technical word for taxes on imported goods is
different brand name.
'ta s', A word for limits on the quantity of goods
2 Similar to 1, but the term is usually used for small
that can be imported is 'q u s'.
businesses in the retail and service sector like McDonalds
5 'The euro against the dollar' (€ /$) is currently 1.28. 'The
and The Body Shop. Head Office has tighter control of the
dollar against the yen' ($ /¥) is currently 115. These are
local business operation than in 1, and the name and
examples of 'ex^ _ _ge r s'.
brand image are always retained.
6 If a currency falls in value, domestic a ts are cheaper
for foreigners to buy.
3 A company (usually small or medium-sized) trades directly
2.2 Find w ords w ith a sim ilar m eaning and then put with another separate company in the foreign market.
them in order to sh o w the business cycle. Sometimes an intermediary (eg a local agent) matches
buyers and sellers and provides services like dealing with
boom contraction depression downturn
customs and documentation. Retailers often use this
expansion grc-wtir recession recovery
strategy for supplies of clothing, furniture, toys, etc.
slowdown slump upswing

X 1 reco v ery / _ 4 A partnership in which two or more companies (often

X 2 g ro w th / _________________/ _________________ from different countries) join to undertake a major project
4, ^ recession / _________________/ or start a business activity. Volkswagen and General
Motors entered the Chinese market through this route.
/ ____________
X 4 _______________ / .
5 A long-term partnership similar to 4, but it may be
M ake collocations using one item from each box. between two companies of very different sizes, such as a
Then use the collocations to com plete th e sentences. large manufacturer and one of its suppliers. The
relationship is not as close as 4, so there is usually no
competitive contractual deeper
sharing of costs, risks, management or profits. Motorola
inword mobile trade trading
and Oracle have both used this approach (with suppliers
and customers respectively),________________________________
advantage agreement communications investment
involvement partners surplus 6 An international company uses a low-cost manufacturer in
another country, and then sells the products under its own
1 National governments encourage brand name in other markets. Also called 'contract
_ because it brings benefits such as the m anufacturing'. This has been done by many firms in the
creation of jobs, skills development and technology transfer. IT area (for software development as well as hardware)
2 Low labour and manufacturing costs are a major and in the automobile in d u stry._______________________________
______________________in the globalmarket 7 A parent company directly owns a company in another
3 Import / export is low-risk, but has alow profit potential. If country. Business operations are under the control of local
a company wants a ____________________in the management, although Head Office is responsible for
global market they will look at outsourcing. global strategy. Examples include Nestle, Toyota and
4 Outsourcing involves a lo n g -te rm ______________ Siemens. Some people think that the term 'multinational
with a low-cost provider of goods or services. corporation' (MNC) should only be used for this type of
5 _ make it easy for managers o rg an izatio n .____________________
to stay in touch with colleagues and Head Office.
6 If a country exports more to its , .
than it imports, it has a _
(= positive balance of trade).

2.5 There are a variety of policy responses to changes
in the econom ic clim ate. Read the texts and then
an sw er th e questions below .
iscal policy refers to the government’s efforts to keep the
economy stable by increasing or decreasing taxes and
government spending.
High tax rates slow the economy b ecause they take
money out of the private sector and put it into the hands of
government. They also discourage small businesses by
decreasing profit margins and making effort less rewarding.
But high taxes also mean that more money is available to
spend on education health, defense, highways and social
programs. In practice, most governments spend more than
they collect in taxes, creating a national debt. Reducing this
deficit is politically unpopular as it involves cutting public
benefits.
Monetary policy refers to the role that central banks have
In controlling the money supply. If there is more money in
circulation, demand in the economy increases, but so does
inflation. Central banks (‘the Fe d ’ in the US; ‘the E C B ’ in the
EU) can act in three main 'ways:
Raising and lowering interest rates
The central bank controls the ’base rate’ (Am E discount
rate) - how much commercial banks have to pay to borrow
money from them. This rate is passed on (with some
additional percentage as profit) to any customer who needs
a loan. At this point it is referred to as the interest rate. When
the economy is booming, the central bank raises rates. This
makes borrowing more expensive. So businesses borrow
less, and the economy slows as com panies spend less on
labour, plant, equipment, etc. The opposite is true when the
central bank lowers rates: businesses borrow more and the
economy takes off.
R eserve requirem ents
The central bank tells commercial banks what percentage of
their customer accounts must be physically kept in the bank
as cash. When reserve requirements are raised, banks have
iess money available to make loans and the economy cools.
Open-market operations
The central bank buys and sells bonds. To cool the
econom y (d ecrease the money supply) they sell bonds to
the public. The money received in payment is no longer in
circulation for the purchase of goods and services. To
stimulate the economy (increase the money supply) they
buy back bonds from the public, and the money they pay
enters circulation.
With these three tools central banks can operate either an
‘expansionary’ or a ‘restrictive’ monetary policy.
GLOBALIZATION AND ECONOMIC POLICY
According to the texts, are these statem en ts true (T) or
false (F).
1 Fiscal policy consists of taxation and spending decisions,
and is under the control of governments. Monetary policy
consists of interest rate and other money supply decisions,
and is under the control of central banks. T / F
2 Government spending resulting from high taxes gives a
stimulus to small businesses. T / F
3 High taxes can give new opportunities for certain businesses
(eg in the defense or medical supplies sectors). T / F
4 Raising interest rates is a w ay of stimulating the economy.
T /F
Underline the correct w ord s.
5 Having an 'expansionary monetary policy' is the same
thing as increasing / decreasing the amount of money in
circulation, which will provide a stim ulus to / cool the
economy, which over the long term runs the risk of
creating Inflation / deflation.
Now underline all the m easures th at can be taken -
according to the text - if fighting inflation (ie slow ing
the econom y) is th e only consideration o f policy.
6 increasing / decreasing taxation
7 increasing / decreasing interest rates
8 increasing / decreasing the reserve requirements of banks
9 increasing / decreasing the sale of bonds by the central
Discussion topics
1 Globalization is great! Everyone benefits. I don't see
workers in poor countries complaining - they prefer to
w ork for international companies.
A g re e D isag re e
2 Look out! Your job is at risk from outsourcing. Retrain
now as a hairdresser, cleaner, chef or taxi driver to avoid
future unemployment.
A g re e D isag re e
3 No-one can control the economy.
A g re e D isag ree
4 How strong is the economy in your country? Is it going
to grow or decline over the next few years?
 Corporate strategy and structure
if o n e d o e s n o t kn o w to w hich p o r t o n e is sailing„ no w ind is favourable.
Seneca (ca 4 B C-A D 65), Rom an philosopher, statesm an and dram atist
Strategy and planning
S trateg y and p la n n in g b egin s w ith an aly sis, an d a w ell-
k n o w n tool to do this is a S W O T a n a ly sis (loo k in g at the
internal S tren g th s and W eak n esses o f the com pany, and the
e xtern al O p p o rtu n itie s and T hreats). P la n n in g itse lf can be
ca te g criz e d in to tw o m a in typ es d ep en d in g on tire tim e-
scale and p u rp o se o f the p lan n in g .
S trate g ic p lan n in g is c o n ce rn e d w ith the lo n g e r term and
'th e b ig p ictu re '. It is the p ro cess o f d efin in g the
co m p a n y 's m issio n , d ete rm in in g the o v erall g o als o f the
o rg an izatio n an d allo catin g reso u rces to reach those
goals. It is d o n e by top an d m id d le m an ag ers.
O p e ra tio n a l p lan n in g is co n ce rn e d w ith tra n sla tin g the
g en eral, lo n g -te rm g o als into m o re sp e cific, con crete
o b jectiv es. It in v o lv e s m o n ito rin g the d a y -to -d a y w ork of
d ep artm en ts, it is d o n e by m id d le an d su p erv iso ry
m an agers.
Company structure
H av in g d ecid ed on its strategy, a b u sin e ss n e e d s to
o rg an ize itse lf in to a stru ctu re that b e st su its iLs o b jectiv es.
T his can b e d o n e in s ev e ra l w ays.
O rg an izatio n by fu n ctio n . T h e co m p a n y is d iv id ed into
d ep artm e n ts su ch as p ro d u ctio n , fin an ce, m ark etin g ,
h u m an reso u rces.
. O rg a n iz a tio n by p ro d u ct. T h e com p an y brin g s to g e th e r
staff w ho are in v o lv ed in the sam e pro d u ct line.
O rg a n iz a tio n by c u sto m e r type. T h e co m p an y is
o rg an ized arou nd d iffe re n t secto rs o f the m ark et. L arge
cu sto m e rs are called 'k e y acco u n ts'.
O rg an izatio n by g e o g ra p h ica l area. T h e c o m p a n y is
o rg an ized a cco rd in g to regions.
A large m u ltin a tio n a l m a y use sev eral o f the abov e: for
exam p le a fu n ctio n al d iv isio n in itia lly (at an in te rn atio n al
level), then a n atio n al stru ctu re for e ach country, and
w ith in this som e lev el o f d iv isio n acco rd in g to cu stom er
ty pes.
T he b u sin e ss m u st also d ecid e on the b e st w ay to o rg a n iz e
its m an ag e m e n t h ie rarch y (= ch ain o f com m an d ). T h e
co m p an y is run by top ( - sen io r) m a n a g e rs w ith jo b titles
su ch as: C h ie f E x e cu tiv e O ffic e r (C E O ), C h ie f O p e ra tin g
O fficer (C O O ), an d a series o f V ice-P re sid e n ts or D irectors
o f d ifferen t d ep artm en ts. Top m a n a g e m e n t set a d irectio n
for the o rg a n iz a tio n and aim to in sp ire e m p lo y e e s w ith
their v isio n fo r the co m p a n y 's fu tu re. T h is v isio n is o ften
w ritten d o w n in a m issio n statem en t.
http://knowledge.wharton.upenn.edu (> Strategic Management)
T h e n e x t level is m id d le m an ag e m e n t, w h e re m an agers are
in ch arg e o f (A m E h ead u p ) a d ep a rtm e n t, d iv isio n , bran ch,
etc. M id d le m a n a g e rs d ev elo p d etaile d p la n s and
p ro ce d u re s b a se d on the firm 's o v erall strategy.
F in a lly there is su p e rv iso ry (A m F first-lin e) m an agem en t,
and ty p ical jo b titles are: S u p erv iso r, T eam Leader, S e ctio n
C h ief. S u p e rv iso ry m a n a g e rs are re sp o n sib le fo r a ssig n in g
n o n -m a n a g eria l e m p lo y e e s to sp e cific jo b s an d e v a lu a tin g
th e ir p e rfo rm an ce . T h e y h av e to im p le m e n t p lan s
d ev elo p ed h ig h e r up the hierarchy.
In som e co m p an ie s - or fo r sp e cific p ro jects - there can be a
m atrix stru ctu re w ith c ro ss-fu n ctio n a l team s. H ere
e m p lo y e e s from d iffe re n t parts o f the1o rg an izatio n w ork
to g e th e r an d b u re a u c ra cy is red u ced .
A b o v e e v ery th in g there is the B oard , ch aired by a
C h a irm a n o r P resid en t, w h ich gets in v olv ed in 'b ig p ictu re'
strate g ic p la n n in g and m eets p e rh ap s o n ce a m o n th . The
C E O w ill b e on the B oard , b u t m o st B oard m em b e rs are not
in v o lv ed in ru n n in g the co m p a n y - they are e lected by and
re sp o n sib le to the sh a re h o ld e rs. T h e ir m a in in te re st is
s h a re h o ld e r valu e: g e ttin g a g o o d retu rn o n in v e stm e n t in
term s o f b o th d iv id e n d p a y m e n ts and a risin g sh are price.
Centralization vs Decentralization
A k e y issu e fo r the co m p a n y is to d ecid e on the d eg ree of
cen tra liz a tio n . S h o u ld a u th o rity b e k e p t at H ead O ffice
(cen tralizatio n )? If so, th is w ould m ean :
( A stro n g co rp o ra te im age.
D e c isio n s m ad e b y e x p e rie n ce d m a n a g e rs w ho see the
w h o le p ictu re, n o t ju st one p art o f the b u sin ess.
S ta n d a rd iz e d p ro ce d u re s w h ich co u ld lead to e co n o m ies
o f scale (lo w er costs) and sim p le r d istrib u tio n channels.
B ut d e c e n tra iiz a tio n also h a s ad v an tag es:
L o w er-le v e l m a n a g e rs are m o re fa m ilia r w ith local
co n d itio n s and can th erefo re g iv e a stro n g e r cu stom e r
focu s.
T h e d ele g a tio n o f d ecisio n -m a k in g is lik ely to lead to a
h ig h e r level o f m o rale at the g rassro o ts.
T h e re are o th e r clo se ly -re la te d q u e stio n s. S h o u ld the
stru ctu re b e 'v e rtic a l', w ith m an y lay ers o f m an ag e m e n t, or
'fla t', w ith few er lay ers? A n d h o w m an y su b o rd in a te s
sh o u ld e a ch m a n a g e r su p e rv ise ?
www. 100Qventures.com(> Strategies)
 CORPORATE STRATEGY AND STRUCTURE

^ W O T A r A ly S iS :
M o r it o r ir ^ a m3 AdAptiruj plArS CcoMpArir<j
M A T k a t p o S it io r
ActuAl dAtA w ith forecAStS, A ctir^ or feedbACk
froM customers Ard suppliers, A ctir^ or A r A ly S in j t h e p ro d u c t
reports prepAred by f ir s t - l ir e MArAvars') p o r t f o lio , ir c lu d ir ^ S tA ^ e
i r th e lif e cycle
C o r t r o llir ^ b u d gets
o f m a i r pr'oducts
(MpleMertinj plArS,
procedures Ard projects A r A ly S ir ^ f ig u r e s
f o r p r o f it c a r t r e s
PrSurirA th A t objectives Are C t b A t Add v A lu e -)
.^ M A R T (Specific, weASurAble, Ard cost c a rtre s
Agreed, reA liStic Ard CthA t Spard budgets')
-tiMa S p ecific-)
Id a rtify ira cuStoMer reads,
e t h r o u g h M Arkat rasa Arch

I d a r t if y l r.<j WAyS 'to lower

costs Ard reduce wASta
b a ta rM irir/j StA fftr^
reads

'g>i^ p ic t u r e ' i t f u c ; -for

B so A n d A Ad S t M o r

EvAluAtir^ c u r r a r t MArkets-.
davalopm art, CorSolidAtior,
o r withdrAW AK

P r io r it it ir A SAleS growth Ard

M A rket ShAre, o r eA rrir^ S
grow th Ard p r o f it A b ilit y ?
^ a t t ir ^ ovarAll SAlas E>uSireSS davalopm art: lookir^ A t
Ard raverua ^oaIs possible tA k ao vcr tA r^ a tS ,
^ e t t ir ^ budgets Ard MAkir^ M arkers, AlliArcas", a r t a r ir ^ raw
lor^-tarpu forecAStS o f costs MAr k a t s CfroM ze r o ? buyira
Io Ca I coMpAry ? j o i r t v e r t u r e s S
iMprovir^ d is t rib u t io r chArralS
Pro d u ct d iv e rsifiC A tio r,
Id a rtify ir^ rew MArkatS o r focus o r core buSiraSS?

I d a r t if y ir d o p p o rtu ritia S M A rk e tir^ s t r A t e ^ y :

f o r raw p ro d u cts worldwide o r M ultidom aSttc?

P ric irij policy: Id a rtify irA MAJor CoSt SAvirAS:

vAlua-for-M oray products vS hi^h lookir^ fo r ir t e r r A l a ffic ia rc ia s,
^jUAlity / praMiuM price products s a t t ir jj up p ro d u ctio r ir low-coSt
c o u rtria s CoutSourcir^-)
& uildir^ brArd loyAlty
IrcraASir^ shAraholdar vAlua:
IrvaStir^ ir techrolo^y, plA rt Ard e^uip nart
shAra price Ard dividerds
Irta ^ rA tir^ o r -lir a Ard o f f -lir e procedures
(e .j fo r SAlas Ard fo r customer service-) ImA^a, ra p u tA tio r Ard
SociAl raSp orSib ility

www.tutor2u.net (> Revision Notes/Strategy) www.quickmba.com (> Strategy) www.netmba.com (> The Strategic Planning Process)
 Corporate strategy and structure: Exercises

Fill in the m issing letters. 3.4 Pairs of w ords in bold have been sw itched - one
1 Inside a company, large customers are often referred to as from each colum n. Put them back in their correct places.
'k a s'. 1 market channel 7 _ c o re grow th
2 COO stands for 'C f 0_ . jg 0 _ r'. 2 cost value 8 distribution research;
3 A matrix structure brings together people from different 3 earnings business 9 mission needs
parts of the organization to work as c - 4 management loyalty 10 market portfolio
f________________I t s. 5 customer statem ent 11 shareholder centre
4 The delegation of decision-making is likely to lead to a 6 product share 12 brand hierarchy
higher level of morale at 'the gra oots' (= the ordinary
people in an organization rather than its leaders). W hich of the collocations in exercise 3.4 refer to:
5 Each manager supervises a number of sub s. 1 using a questionnaire to carry out a survey
6 In relation to an existing market, the 'big picture' strategy market research

can be one of dev nt (growth), 2 the main activity of a company that generates most of its
conso . ion (making the existing situation stronger), profits
or wi wal (leaving the market completely). 3 financial benefits (= increase in share price and dividends)
for the owners of the company
3.2 Com plete each phrase 1-10 w ith an ending a)—j).
4 the whole range of products that a company sells
1 Operational planning translates general goals
2 It is usual to divide an organization □
5 when customers are faithful to a particular product
3 Some companies are organized according
4 The Board gets involved
6 a business unit that spends money but does not generate
5 Senior managers set [
revenue
6 Middle managers develop detailed plans based □
7 a continuing increase in profits
7 First-line managers implement plans
8 First-line managers are also responsible 8 w hat is shown in an organigram (= organization chart)
9 A cross-functional team brings
10 Subordinates work 9 senior management's vision for the company

a direction for the company,

10 how a product gets from the manufacturer to the end-
developed higher up the hierarchy,
user ..
for assigning employees to specific jobs,
in major strategy issues, 3.6 Match the verbs in the box w ith th eir definitions
into functional departments, below . Be careful - som e are very similar.
into more concrete objectives,
on the overall strategy, adapt assign check control coordinate
to geographical regions. determine ensure evaluate implement monitor
together staff from different parts of the company,
1 make sure that everything is correct or the w ay you
under the supervision of a first-line manager. check
expect it _

3.3 The mixed-up letters m ake w ord s th at describe 2 organize people so that they w ork together effectively
departm ents or functional areas inside a company. Put
the letters in the right order. 3 give someone a job to do

1 haumn rruoeecss 9 pdroctoiun 4 carry out; make a plan start to work

2 cmoesutr scrieevs
3 qtuialy crotnol
4 rsaceerh and dvnolpmeeet
5 pbiluc rnotilaes
6 pejcrot mmeegnnaat
7 aiiisdttrnmaon
8 bnlliig
10 Igael 5 have the power to make decisions; make something
operate in the w ay that you w ant
11 siihnppg
6 make certain that something happens
12 facnine
7 change something to fit a new situation
13 metakrnig
8 watch or measure something carefully for a period of
14 atnccous
time to see how it changes .
15 pasuirchng (= buying, BrE)
9 (formal) think about or test something before deciding its
16 pcroenremut (= buying,
value, suitability or effectiveness___________________
AmE)
10 (formal) control w hat something will be; officially decide
something; find o u t ___________________
 CORPORATE STRATEGY AND STRUCTURE

3.7 Use th e w ords in the box to com plete the SW OT 3 .8 Look back at the com pleted SW O T an alysis in
analysis below . exercise 3.7 and find a w ord th at m eans:

alliance barriers climate debt depth one-stop 1 a situation in which you do not have enough of something
outdated overhead range shortage start-up
state-of-the-art tailor-made transfer workflow 2 depending too much on something
3 'sales staff' (the answer is a short form of a longer word)

S tren gth s (stro n g points, in te rn a l) 4 a building used for a particular purpose (especially for
■ a Large m arket share m an ufacturing ) _
a w ell-sim ctu red d istrib u tio n n etw ork 5 when everyone w ho w ants the product already has it
m o tiv ated and w ell-train ed staff
(= c u ttin g ed ge) products
(= custom ized / personalized) 3.9 Tick (✓) the one statem en t th at is true.
products 1 Targets and goals tend to be more general. O bjectives and
all services provided in o n e p lace: a aims tend to be more specific, with aims being the most
sh op ’ concrete and measurable. □
a w ell-k n o w n , h ig h -v alu e brand 2 A im s and goals tend to be more general. O bjectives and
W eaknesses (w eak p o in ts, in te rn a l) targets tend to be more specific, with targets being the
a lack o f new products most concrete and measurable
a lack o f m an agerial h (= am ou nt
: M anagers should m ake sure th at business
o f know ledge and e x p e rie n c e )
objectives are SMART. Can you rem em ber w h a t these
(= old fash io n ed ) pro d u ction
letters stand fo r? Don't look back at the mind map until
m ethods
you have tried to think!
h igh levels of 6 (= m oney owed to
banks and o th e r cred ito rs) Sp___________c, Mea le, Ag d,
■ slow _ (= progress o f work d o n e) Rea ic, and Ti -specific
due to in flex ib le procedures
> an o v er-re lia n ce cat a lim ited 8 __________ of
products
high d irect costs (= p ro d u ctio n costs) and high
in d irect costs (9 ____________ eg u tility bills)

O p p o rtu n ities (futu re c h a n c e s in th e m arket)

new foreign m arkets
an im proving e co n o m ic
10

ou tso u rcin g
a key supplier w ho m igh t w ant to m ake a strategic
11

new prod uct ideas: e ith e r from m arket research or

from sales reps talk in g d irectly to custom ers Discussion topics
1 Bosses just take the credit for the work of lower-level
T h r e a ts (fu tu re dangers in th e m ark et)
employees. W ho needs them?
■ g reater c o m p e titio n
A g re e ! D isag ree
low -cost p ro d u ctio n in S o u th e a st A sia
te ch n o lo g y 12 to S o u th e a st A sia 2 The continual emphasis on shareholder value in
(so th a t lo w -co st c o u n trie s start using h ig h -te c h American-style companies produces high levels of stress
equ ip m en t) amongst employees and an inability to think about the
' ligh 1’ costs o f a new facility longer term.
p o litica l risk: reg u latio n , taxes, trade A g re e D isagree
19 (eg quotas and tariffs) 3 Think of tw o companies operating in the same market
th e m arket ap p roach in g satu ratio n (eg Coke and Pepsi, Yahoo and Google, Audi and
. possible 15 o f co m p o n e n ts or raw BMW, Gucci and Armani). Compare their strategies.
m aterials
4 Make a quick SWOT analysis for a company / country /
reduced p ricin g pow er due to m erger o f two
city / educational institution that you know. Present it to
im p o rtan t custom ers
some colleagues and ask for questions.

17
 Managing people
If I had to sum up In a w o rd w h a t m akes a g o o d manager, I'd say decisiveness. You can use th e
fanciest com p uters to g a th e r the nutnbeis, b u t in th e e n d yo u have to set a tim etable a n d act
Lee lacocca (1924-), A m erican in du strialist
Motivation
T h e ability to m o tiv ate o th ers and im p ro v e m o rale is a 's o ft
sk ill' - d ifficu lt to acqu ire and a lm o st im p o ssib le to
m easu re. F ou r key th in k ers c o n trib u te d to this field in the
1950s and 60s, and th eir w o rk is still the b a sis for
co n tem p o rary ap p roach es:
1 M aslo w d ev elo p ed his 'h ie ra rch y o f n ee d s',
se lf-a c tu a liz a tio n n eed s
ego (self-e ste e m ) n eed s
: social need s
secu rity n eed s
p h y sio lo g ica l n eed s
W e m ov e to the n e x t stag e u p o n ly w h e n the lo w er n eed
is m et. A n d as soo n as any n e e d is m et, then it is no
lo n ger a m otiv ator. T h e b o tto m tw o are u su ally n o t an
issu e in b u sin e ss (u n less y o u are h u n g ry or in d an ger).
A fter that, o u r n e x t n eed is to feel acce p te d and p a rt of a
group (social n eed ). If th at h ap p en s, th en n ex t w e have
ego needs: re co g n itio n and ack n o w le d g e m e n t from
o thers, as w ell as a sen se o f statu s o r im p o rtan ce. Finally,
if that n eed is m et, w e w a n t se lf-fu lfilm e n t ('self-
a ctu a liz a tio n ' in M a slo w 's term s): to ach iev e , to d ev elo p
to o u r fu llest p o ten tial.
H erzberg exp ressed sim ila r id eas. H e ag reed that the
m ost im p o rtan t m o tiv a to rs at w o rk w ere sen se of
a ch iev em en t, earn ed re co g n itio n and in te re st in the job
itself. B u t then there w as a n o th e r set o f jo b facto rs
('h y g ie n e ' o r 'm a in te n a n c e ' facto rs) th a t do n o t m o tiv ate
em p lo y ees, b u t c a n cau se d issa tisfa ctio n if they are
m issin g . T h e se in clu d e salary, jo b security, w o rk in g
c on d itio n s and go o d relatio n s w ith co -w ork ers.
M cG re g o r o b serv ed that m an ag ers g e n era lly fall into
tw o categ o ries: T h e o ry X and T h e o ry Y. T h e o ry X
m an ag ers b e lie v e th at m o st p e o p le d islik e w o rk and
m u st be co n tro lle d and d irected to ach iev e the
o rg a n iz a tio n 's goals. T h e o ry Y m a n a g e rs b e lie v e that
m o st p eo p le lik e w o rk and a ctiv ely see k resp onsibility.
T h ey b elie v e in e m p o w e rm e n t (= g iv in g e m p lo y e e s the
au th o rity to m ak e d ecisio n s w ith o u t trad itio n al
m an ag erial ap p ro v al) and e n a b lin g (= g iv in g th em the
tools).
D ru ck er b e lie v e d in 'm a n a g e m e n t by o b je ctiv e s' (M BO ).
M B O calls o n m an ag ers to w o rk w ith e m p lo y e e s to
fo rm u late clear, a m b itio u s b u t ach iev a b le go als. T h ere
has to be m o n ito rin g and m e a su re m e n t to en su re
o b jectiv es are b e in g m et, and w o rk ers w h o ach iev e their
o b jectiv es can be rew ard ed w ith p ay rises, b o n u ses, etc.
www.accel-team.comwww.businessbaHs.comwww.mindtools.com (> Communication Skills)
Communication
C o m m u n ic a tio n is tw o -w ay : to p -d o w n and b o tto m -u p . It
can also be extern al: the PR (p u b lic re latio n s) fu n ctio n
h an d les this.
In sid e an o rg an izatio n , in fo rm al c o m m u n ica tio n h ap p en s
all the tim e: e v ery o n e e n jo y s d iscu ssin g 'o ffice p o litics' at
the w a te r co o ler and p ick in g up in fo rm a tio n 'o n the
g ra p e v in e ' (= p assed from o n e p e rso n to a n o th e r in
co n v ersatio n ). F o rm al co m m u n ica tio n is th ro u g h the
m ed iu m o f m eetin g s, p re se n ta tio n s, rep o rts, etc, and these
are cov ered in the seco n d h a lf o f this b o o k . B u t tw o oth er
key c o m m u n ica tio n sk ills are n o t p o ssib le to p ractise in a
b ook:
'A ctiv e liste n in g '. T h is m e an s listen in g w ith full
atten tio n , n o t in te rru p tin g e x ce p t to ask for clarificatio n ,
and g iv in g c o n sid e ra tio n to the o th er p e rs o n 's p o in t o f
view.
'A ss e rtiv e n e s s '. T h is m e an s sta tin g y o u r n ee d s and
o p in io n s co n fid e n tly and clearly, w ith o u t on the one
han d b e in g in d ire ct o r 'su ffe rin g in sile n c e ', or on the
o th er b e in g a g g re ssiv e and ru de.
Teamwork
A team (or 'ta s k fo rc e ' or 'w o rk in g p a rty ') n e e d s a v ariety of
p e rso n a lity ty p es to p e rfo rm w ell:
'H e a d ' p e o p le w h o are g oo d at th in k in g and p ro b le m ­
solv in g.
d 'H a n d s ' p e o p le w h o are g oo d at d o in g and acting.
'H e a r t p eo p le w h o are g o o d at n e tw o rk in g and
reso lv in g con flicts.
O n ce a team h as b e e n se t u p , it u su ally g o es th rou gh the
five stag e s o f d ev e lo p m e n t id en tified b y B ru ce T uckm an:
F o rm in g . P eo p le g et to k n o w e a ch other.
S to rm in g . T h is refers b o th to 'b ra in s to rm in g ' as id eas get
su g g e ste d fo r the first tim e, and also to co n flicts that
arise as team m e m b e rs clarify th eir roles and
exp e ctatio n s.
N o rm in g . M e m b e rs sort o u t a w ay o f w o rk in g to g eth er
and b e g in to 'o w n ' and sh are the team o b jectiv es.
P erfo rm in g . M e m b e rs focu s on so lv in g p ro b le m s and
d o in g tasks. P ro g ress can be se e n as they p a ss v ario u s
m ile sto n e s (= ev en ts th at m a rk an im p o rta n t stag e in a
p ro cess).
A d jo u rn in g . T h e jo b is fin ish ed , and there is often a
p u b lic re co g n itio n and cele b ratio n o f ach iev em en ts.
 M ANAGING PEOPLE

I. Accept th e r e is a probleM, defiAe

&WA,li-tie* o-f la d d e r*
th e SituA tio A AAd id e x tify objectives Le.Ade.r5 A re d if f e r e A t -to MAAA^ers
2. Collect iA-forMAtioA AAd ideAS L e a d e n see th e bi^ p ic t u r e : -they
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-to MAk.e rAdiCAl chAA^es
3 . AAAlySe iA-foriwAtioA
AAd d evelop A lte r A A tiv e s L e a d e n A re creA -tive AAd
iAAovA"tive, lookuA^ -for Aew
4 ■ MAk.e a decisioA o a
SolutioA S -to old probleMS
th e b est A lte rA A tive
L e a .d e .ri a r e AloAe A t
C. CoMMiAAicAte th e decisioA
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AAd be^ia iMpleweAtAtioA
V colleA^wes AAd teAMS
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L e A d e r ^ h ip * -ty la *

A u to c r A tiC : iA S tru ctio A S

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4 A<y

L E s t A b lis h cleA r stA A d A rd S

2. M o A ito r per-forMAAce
MANAQINQ 3 . CoM pAre r e s u lt s a ^a i A St
e stA b lish e d StA A dA rd S AAd
PEOPLE coMMWAicAte r e s u lt s / deviA tioA S
t o employees iAvolved

4- TAk.e c o r r e c tiv e ActioA i f AecesSAry

C . P ro v id e p o s itiv e feedbACk. AAd

re w A rd people -for work, well doAe

Work. te A MS
ProbleM~SolviA^ teAM S
C r o s s —fuA ctioA A l teAM S
P r o je c t teAM S T h e o r i e .*
M a s low
H e rib e r ^
Me Q re q o r
L ru c k e r

TaAM role.*
'H e A d N people
'H A A d s' people CAlAry AAd proMotioA
'H e A r t ' people CCee U A it IP)
E x t e rA A l CPublic R e lA tio A S ')
a s well a s iA terA A l

IA-forMAl AS well AS fo rm A l
Top-dowA AS well as bo tto M -u p 3ob de*i^A
L t a ^ e s o-f teA M developM eAt
A s s e r tiv e A e s s E MpowerMeA t AAd eAAb 11a ^
fo rM i r\^ | S to rm i a^ , ro rm i a^ ,
J o b eA richM eA t
perforMiA^, AdjourxiA^ A c t iv e liSteAiA^

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 f Managing people: Exercises

4.1 Fill in the m issing letters:

The first three factors above contribute to the
1 The level of confidence and positive feelings that people
m eaningfulness of the job. The fourth gives a feeling of
have, especially people w ho work together, is their level of
responsibility. The fifth contributes to a feeling of
'mo _ _ e' (slightly different to 'motivation', which is
achievement and recognition.
linked to doing things).
Job e n ric h m e n t tries to m a x im iz e the above five factors
2 When we have the recognition and respect of others, it
Within the c o n s tra in ts of th e o rg a n iz a tio n . It a ls o in c lu d e s
adds greatly to our 'self-es _m' (= feeling that we are
two s p e c if ic s tra te g ie s :
valued and important).
job enlargement -- combining a series of tasks into one
3 When we have been successful, it is good to have the
challenging and interesting assignment
'ackn nt' (= public recognition and thanks)
job rotation - moving employees from one job to another.
of others.
4 Developing to our fullest potential was called 'self-
actualization' by Maslow. A more common term is 'self­ Find a w ord in the text w hich m eans:
ful m ent1. 1 making something better and more enjoyable
5 Being successful after a lot of effort gives us a 'sense of 2 result __
ach___________ nt'. 3 power to make independent decisions
6 Giving people more control over their work is called 4 quality of being serious, useful and important
'emp __________nt'. 5 making something bigger
7 Giving someone the tools and skills to do something is 6 piece of w ork that you must do as part of your job or
called 'en____ ing' them. course of study ____________
8 Successful managers are neither passive nor aggressive.
Instead, they are 'ass__ _ve'. 4 .4 Read about a decision-m aking process at Xerox.

9 Business leaders need to have vision and

I
' c o m m _ . nt' (= enthusiasm, determination and a n the 1990s Xerox w as in trouble. : Anne Mulcahy, a
strong belief in w hat they are doing). company insider, realized how serious the situation w as -
customers were leaving, morale was low, and the company
4.2 Decide w h eth er the phrases b elo w best describe product line was too unfocused. 3She becam e C EO in 2000
m anagers (M) or leaders (L). and immediately began a listening tour, seeking insights
1 welcome change Q 5 good at motivating from employees, custom ers and industry experts on where
2 welcome stability Qj 6 good at supervising [3 the company had gone wrong. 4What strategic options were
3 look at the details □ 7 four make a team open to Xerox? 5lt could focus on laser or ink-jet, high-end
4 look at the big picture □ 8 four is three too many or low-end, single-function or rnulti-function. r And which
areas of the business were going to be cut? R&D was
4.3 Read the text then an sw e r the questions below.
traditionally strong at Xerox but used up a lot of internal
resources. 8Mulcahy and her team worked out a plan. 9First,
he work of Maslow and Herzberg has been developed
they would focus on cash generation, second they would
into the theory of 'job enrichment'. This theory states that
cut costs wherever possible (R&D w as saved from this), and
there are five characteristics affecting an individual's
finally they would focus exclusively on areas where Xerox
motivation and performance:
had a competitive advantage. :0Mulcahy took time to
Skill variety. The extent to which a job demands
explain this plan to front-line employees. "In addition, she
different skills.
made sure that everyone explained it to customers as well,
Task identity. The degree to which a job has a visible
and made many customer visits herself.
outcome.
Task significance. The degree to which a job has an
Now w rite the sentence num bers th at match the stages
impact on the work of others.
below .
Autonomy. The degree of freedom and choice that
a) Accept there is a problem; define the situation. ]
people have in scheduling work and determining
procedures. b) Collect information and ideas.

Feedback. The amount of direct and d e ar information c) Analyse information and develop alternatives. to
that is received about performance. d) Make a decision on the best alternative. to
e) Communicate the decision and begin implementation.
C t o Q
20
 4 MANAGING PEOPLE

4 .5 Study the collocations related to decision m aking. 7 - thinks carefully and accurately about
Check an y unknow n w o rd s in a dictionary. things; listens patiently, may lack energy to inspire others
3 - has expert knowledge in key areas;
achieve, define, establish, fail in, fall short of,
an objective may be uninterested in all other areas
fulfil, identify, meet, reach, set
'Hands' people
address, cause, clear up, create, deal with,
a problem 4 - takes basic ideas and makes them
give rise to, handle, overcome, resolve, solve, tackle
w ork in practice; methodical and organized; can be slow
accept, agree to / with, come up with, make, offer,
a suggestion 5 . . - gets involved quickly with lots of
put forward, reject, rule out, take up, turn down
energy; more interested in the final result than the process;
arrive at, come to, defer, make, overrule, overturn,
a decision may be impatient
postpone, put off, reach, reverse, take
6 . - likes completing things on time, on
collective, critical, crucial, difficult, hard, important,
decision budget, and to specification; can w orry too much
joint, key, major, tough, unanimous
'Heart' people
anticipated, desirable, eventual, expected,
outcome 7 - central person w ho makes sure
favourable, final, likely, satisfactory, successful
everyone works well together; helps everyone focus; can
N ow divide the w o rd s in each box into three groups, be seen as too controlling
based on their m eaning. 8 . - caring, a good listener, and works hard
to resolve problems, may have difficulty making decisions
achieve, meet, define, identify, fail in, fall .. 9 - enthusiastic, sees the big picture and
.... , an objective
reach, fulfil establish, se t short o f good at explaining it to people outside the group; can be
too optimistic and lose initial energy
a problem
Change each adjective describing people into its
opposite.
a suggestion
1 accurate ___ accurate / . precise
2 careful care_______
a decision 3 conservative inn, ve / r a .........al
4 decisive decisive / h e s ___ _____
5 efficient ___ efficient / w a eful
decision
6 enthusiastic enthusiastic / b_ _ed
7 flexible flexible / r id
outcome 8 hands-on I________ez-f____ e
JZ

9 lazy
£

C
CTi
I

I
t
I

Match the team roles in the box to the descriptions 10 patient patient
below. This exercise is based on the ideas of Belbin and 11 polite . _polite / r
M argerison-M cCann. 12 reliable reliable

Coordinator Innovator Evaluator Finisher 4 .8 Com plete each sentence using either s e n s ib le or
Implementer Promoter Shaper Specialist Team worker s e n s itiv e . These adjectives are often confused.

'Head' people 1 He reacts to things in an emotional w ay and is easily

1 _________ - solves difficult problems with creative offended, he's v e r y _
ideas; not afraid to challenge norms; may ignore details 2 He's reasonable, practical and mature, he's very

Discussion topics
1 All this M aslow and Herzberg stuff is garbage. There's 3 The best communicator inside an organization
only one thing that motivates people: money. that I have ever known is (name).
A g re e D isag ree He / She is such a good comm unicator because ...
2 All this stuff about team w ork is garbage. If you w ant 4 Looking at the nine team roles in exercise 4.6, I think I am
to do a job properly, do it yourself. a ... (role) because ...
A g re e D isag re e Someone w ho I really enjoy working with is called
(name). He / She is a
(role) because ...

21
 Operations management

The first rule o f any tech n o lo g y u sed in a business is th a t a u to m a tio n a p p lied to an efficien t
o p era tion will m agnify the efficiency. The se c o n d is that a u to m a tio n a p p lied to an in efficien t
opera tion will m agnify th e inefficiency.
Bill Gates (1955-), co-founder of Microsoft Corporation

What is 'operations'? H o w can w e red u ce the tim e -to -m a rk e t (=■ tim e taken
from co n ce p t b rie f to the lau n ch ) or the ro ll-o u t
O p eratio n s h as b e e n d efin ed as 'th e use o f reso u rces that
(= p h ased in tro d u ctio n ) o f the n ew p ro d u ct?
are d ev o ted to the p ro d u ctio n and d eliv ery o f p ro d u cts and
serv ices'. In fact it is the 'c o re b u s in e ss ' o f the com pany,
Managing the supply chain
w ith o th er fu n ctio n s like m ark e tin g , fin an ce and h u m an
A m a n u fa ctu re r m ig h t h av e a c o m p o n e n t m ak er a s a first-
reso u rces sim p ly a ctin g in su p p o rt. It in clu d e s p ro d u ct
tier su p p lier, b u t also the co m p o n e n t m a k e r's s u p p lie r (eg a
d ev elo p m en t, m an ag in g the su p p ly chain, p ro d u ctio n
raw m ate rials co m p an y ) as a se c o n d -tie r su pplier. Together,
p lan n in g and con tro l, b illin g and sh ip p in g , and all those
they fo rm the 'u p stre a m ' or 's u p p ly sid e' e n d o f the
d ay -to -d ay activ itie s cov ered b y the term 'a d m in istra tio n '.
n etw o rk . Equally, they m ig h t h av e a d istrib u to r as a first-
T h e o p eratio n s fu n ctio n has five b a sic p e rfo rm an ce
tier cu stom er, b u t also the d is trib u to r's c u sto m e r (eg a
o b jectiv es. T h e y m ean d iffe re n t th in g s for the org an izatio n
re tailer) as a seco n d -tie r cu stom er. T ogether, they form the
and the cu stom er:
'd o w n s tre a m ' or 'd e m a n d sid e ' end o f the n etw o rk .
f o r the organization For the customer
S u p p ly ch ain m a n a g e m e n t in clu d es:
Q u ality e rro r-free p ro cess p ro d u cts that
P ro cu re m e n t (= so u rc in g + p u rch asin g ) from first-tier
are o n -sp ec
su p p lie rs (A m E v en d ors).
C ost h ig h le v e l o f c o m p e titiv e p rice M aterials m a n a g e m e n t in sid e the p lan t. T h is in clu d e s
p ro d u ctiv ity in v e n to ry (= sto ck ) m a n a g e m e n t and p ro d u ction
D ep en d ab ility o p e ra tio n a l reliab le d eliv ery p la n n in g and con trol.
s ta b ility (q u an tity and tim e) L o g istics (= d istrib u tio n ) to first-tie r cu sto m ers.

Flexib ility a b ility to resp o n d v o lu m e an d d eliv ery
to ch an g e a d ju stm e n ts; w ide
and freq u en tly
u p d ated p ro d u ct
ran ge
S peed fast th ro u g h p u t sh o rt 'le a d -tim e '
T h e re are sev e ral im p o rta n t stra te g ic issu es:
. Sh o u ld the co m p a n y d irectly o w n any p a rts o f the
su p p ly ch ain ? If it d oes, then this is v ertical in tegratio n .
Sh o u ld the c o m p a n y op t for sin g le o r m u lti-so u rcin g ?
H av in g ju st one s u p p lie r w ill m e a n good
c o m m u n ica tio n w ith a d ep en d a b le partn er, and also

'o n -sp e c ' = h a v in g the requ ired sp e cifica tio n s
'lea d -tim e' = tim e from p la cin g the o rd er to re ce iv in g d eliv ery
Developing new products
In itial id eas for a n ew p ro d u ct m a y co m e from m ark e tin g
or o p eratio n s. T h ese id eas are turned in to a 'c o n c e p t b rie f'
- this is a clear state m e n t d escrib in g the form , fu n ctio n ,
p u rp o se and b e n e fits of the p ro d u ct. Im m e d ia te op eratio n al
issu es arise:
• Feasibility. C an w e actu ally do (or m ak e) this? D o w e
hav e the sk ills/ ca p a city / re so u rce s?
V ulnerability. B ein g p essim istic, w h at cou ld go w ro n g?
W h at is the d o w n sid e risk?
W hat m aterials, parts and c o m p o n e n ts w ill b e n eed ed ?
Is it p ossible to red uce p ro d u ctio n costs b y re d u cin g
d esign com p le x ity ? In particu lar, are there o p p o rtu n itie s
for:
a) sta n d a rd iz a tio n (restricted v ariety )?
b) c o m m o n a lity (= u sin g the sam e co m p o n e n ts)?
c) m o d u la riz a tio n (= u sin g su b -co m p o n e n ts that can be
p u t to g eth er in d ifferen t co m b in atio n s)?
e co n o m ies o f scale (= co st sav in g s from b u y in g in large
q u an tities). B u t d isa d v a n ta g e s in clu d e risk s asso ciated
w ith a failu re o f supply, and g iv in g the su p p lie r the
ch an ce to p u t u p w ard p ressu re on p rices.
H ow m u ch o f the p ro cess can m ig rate to the w eb , eg
fin d in g the b e st p rice, d eliv ery tim e and sp ecificatio n s
th ro u g h e-p ro cu re m e n t?
T h ese d ays m an y o rg a n iz a tio n s, e g film co m p a n ie s h av e a
'v irtu a l o p e ra tio n '. T h e o rg a n iz a tio n bu y s in the ran g e of
fu n ctio n s it n eed s fo r a p a rtic u la r p roject, b u t at the end of
the p ro je ct this n e tw o rk d isap p e ars. T h is g iv es flex ib ility
and sp e ed , b u t the com p an y is left w ith v e ry few core
c o m p e te n cie s (= key areas o f tech n ical e x p e rtise ) w h e re it
retain s a co m p e titiv e ad v an tag e.

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 OPERATIONS M ANAGEM ENT

A /U te ri^ lS (iro ce ssiru j

D om estic p ro d u c tio r o r outSourcir<^ ?
■ tc.chM jlo^ y
LAbolAT cos-ts, AVAilAbili-ty A rd S k ills ?
Use o-f coMputers -to bui Id
a virtu A l p ro to typ e Af\d Q r A r t S A rd s u b s id ie s ?
t e s t i-t
I r f r A S t r u c t u r e : roAd A rd rA il I ir k s ?
Use o f co m p uters -to c o r t r o l
F V o x itu ity -to s u p p lie rs ?
-the M Achire -tools t h A t
s ta p e pieces C o rv e rie rce -for c u s to M e rs ?

Ird u striA l robo-ts E r v ir o r w e r t A l C o rS id e rA "tio rS ?

-to ASSeiwble pAr-tS
A d d i-tio rA l issu e s -for s e rv ic e S e c to r:
R F Ib T a ^S CrAdio freq u ercy ru w b e r o-f b r A rch e s; re lA tio rS b ip
id e r t if iC A t io O o r b e tw e e r o r lir e p re se rce A rd
irdividuAl iteMS pbySicAl b u s ire s s p re rtise s

C b t f t o M e r p ro ce^ iirv^
• te .c ta o lo ^ y . £ t tu p s ia d e s i^ K

Web-bASed o rd e ri r^ A rd 1. I r it i A l ideA A rd c o rc e p t b r ie f
A fte r-S A te S
2. ^ creerir^ -. is i t a apod id eA ?
H o te l r e s e r v A t io r SySteM S, would i t s e ll?
A ir lir e c h e c k -ir is i t S u itA b le f o r o u r coM pA ry?
SySteM S, e t c
3 . FV e liM irA T y de si^ r
EPCK
4■ F e A S ib ility s tu d ie s , e v A lu A tio r
f e le c t r o r ic p o irt- o f- S A le T
A rd lM proveiw ert
tecbro lo^ y t k iA t b a rd ie s
p A yM e rt A rd u p d u te s s to c k F . F k o t o t y p ir^ A rd f ir A l deSi^ r
re c o rd s i r r e t A il o u t le t s 6 . R o ll-o u t

OPERATIONS
MANAGEMENT 0 -tta.r o^£.rAtioAAl
is s u e s

1. Reduce p ro d u ctio r co sts Ard

tiM e-to -iw A rk et by reducir^
deSi^r coMplexity

2. b e t e r w ir e Ary chAr^eS t liA t

will be reeded t o th e fA cto ry
lAyout, iwAchirery, plArrir<^
Ard co rtro l procedures
Whole supply r e t w o r k irclu d e s
CcApAcity, ir v e r t o r y , cjUAlity')
f i r s t - A rd S e c o rd - t ie r su ppliers
A rd cuS to M e rs 3 . brAw Up a 'bill o f M AteriAls
O r ia ir A l E q u ip iw e rt M A r u fA c t u r e r G is t ^ivir^ M AteriAls Ard pArtS
C O E M b Supplies p A rtS A rd co M p o re rts reeded 7
t l i A t A re used by o t h e r coM pAries

Pro cureM ert C- Sourcir^ + purchASir^d

froM f i r s t - t i e r suppliers
PACkA^ir^ iSSueS:
L o g istics C d istrib u tio rd t o
f i r s t - t i e r custoM ers does t h e p ro d u c t reed
SpeciAl pACkA^ir^ ?
M A t e r iA ls M ArA^ eM ert
irS id e th e p lA r t Cost iw pliCA tiorS?

Use o f e-p rocu reM ert who MAkeS t h e pACkA^ir^

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 Operations management: Exercises

5.1 Fill in the missing letters. b) 'We should be ready to launch in the spring: first in France
1 The time spent between the customer placing an order and then in Germany, Switzerland and Austria.'
and receiving delivery is the ' I -time'. c) 'We use chip-and-PIN cash registers in our stores, and
2 An initial idea for a new product has to be turned into a inventory information is automatically updated.'
'con _ _ t b f' that describes its form , function, d) 'Yes, in theory it could be a successful product, but in

purpose and benefits. practice we don't have the capacity or the resources.'
e) 'How much money could w e lose if things don't go
3 The chance of something happening or being successful is
according to plan?'
its 'fea__ _ ility'.
f) 'We manufacture a wide range of cars, but a lot of the
4 The chance of damage or harm to something is its
engine parts are the same - it makes maintenance mu< h
'vul ility'.
easier.'
5 An organization's immediate suppliers are its 'first-t r' g) 'We've got to build a working model and test it properly
suppliers. Together with these suppliers' own suppliers, before w e can go into production.'
they form the 'ups m' end of the supply network. h) 'The brainstorming session was useful, but a lot of these
6 'Pr ment' = 'so jn g ' (finding suppliers) + ideas just w on't w ork in practice.'
'purchasing' (buying). i) 'If we place a large order we'll get a much better price.'
7 A close synonym of 'supplier', more common in American j) 'They make sub-assemblies for PCs in high volume, and
usage, is 'v or'. then put them together according to the customer's own
8 The key areas of technical expertise that a company has spec.'
are its 'c_ e c o m p _ _____ cies'. k) 'There's a smart memory chip embedded into every item.
We know exactly where it is in the store, as well as where
5.2 Complete the phrases by matching an item from and when it was made.'
the first column with an item from the second. I) 'It's a successful formula. Wherever you go in the world,
1 technical throughput w e sell the same burgers prepared in the same way.'
2 a high level -free process
3 fast ■expertise 5.5 Com plete the text using these verbs: builds,
4 a frequently integration com pile, drilling, h o o k e d up, specifies, tested, welding.
5 downside of scale

C
6 vertical of productivity omputers are now used throughout manufacturing
7 economies risk to design and develop individual parts. Trie designer
8 an error updated product range various criteria such as size, shape,
materials, etc and the software 2 a
5.3 Match the tw o parts of each phrase. virtual prototype. This is then 3 _ using
1 draw up on prices given parameters. Before moving to production the
2 reduce to the web software can also T (= make) a list of
3 migrate an operation a feasibility study materials and quantities needed. O nce the design
4 put upward pressure advantage specifications are complete, the computer is
5 have a competitive into a concept brief
(= connected) directly to the machine
6 roll out design complexity
tools that make the part from an initial piece of metal
7 carry out a bill of materials
plastic or wood. Machine tool actions include cutting,
8 turn an initial idea a new product
shaping, turning, 6 (= making holes in)
5.4 Match topics 1-12 w ith the conversation extracts and ' (= joining togeii it r).
a)-l) below.
1 EPOS technology □ 7 prototyping □ 5.6 Match th ese w ord s to th eir definitions below :
2 commonality □ 8 RFID tags □ criteria, param eters, specifications.
3 feasibility □ 9 roll-out □ 1 limits that affect how something can be done
4 economies of scale □ 10 screening □
5 logistics □ 11 standardization □ 2 detailed plans about how something is to be made, or
6 modularization □ 12 vulnerability □ exact measurements .
a) 'Which shipping company will we use? And when can we 3 standards that are used for making a decision about
get the containers to the port?' something

24

5.7 The fo llo w in g w o rd s collocate w ith 'criteria':
d efine, m eet, specify, establish, fulfil, satisfy, set.
Divide the w o rd s into tw o groups, based on the
m eaning.
a) define = _______________________ = _____
b) _ g»e«______= ______________ = _______________
O nly one of these tw o groups collocates w ith
'param eters'. W hich o n e?
5.8 Read th e te xt abo u t e-procurem ent then an sw er
the questions below .
E
-procurement m eans sourcing and purchasing online.
Different sup pliers’ offerings are often brought together
into a single catalog (B rE catalogue), the customer decides
who to buy from, and then the whole transaction process is
automated. The software is sophisticated: it allows both
sid es to negotiate solutions for certain foreseeable
scenarios (eg penalties for late delivery).
But the process is not straightforward. First, for a modern
manufacturing operation it is rarely a question of a series of
one-time purchases from a small number of suppliers all
offering a similar product. The supply-chain relationships
are much more com plex than that.
Second, it’s not just about price. The procurement
process also needs to evaluate product availability, supplier
resp o n sive n e ss, se rv ice levels, delivery history, and
customer-satisfaction ratings. These do not show up on the
system so easily and reliably.
Finally, e-procurement has to work for the supplier too.
They receive a detailed RFQ (Request for Quotation), but
how do they respond in a flexible w ay? For example:
Can they adjust details of the RFQ and make counter­
offers?
Can they make a rush-order surcharge?
Can they offer different products that the customer may
not be aware of?
And to build a long-term relationship, can they know the
forecast requirements of this potential custom er?
The main criticism of e-procurement is related to this last
point: that it focuses too much on short-term individual
purchases and driving down costs. It works against the
development of a long-term relationship with a supplier.
Treating your supplier as a partner might bring far greater
returns in the long run.
5 OPERATIONS M ANAGEM ENT
Find a w ord from the text th at m atches th e definitions.
The a n sw ers are in th e order th ey app ear in the text.
1 complicated and advanced in design
2 predictable / anticipated
3 punishments for breaking a rule or contract
4 easy to understand or use
5 be easy to see or notice (phrasal verb)
6 the price someone will charge you for a piece of work
7 additional amount of money you must pay
8 predicted / anticipated
9 making an am ount fall to a lower level in an aggressive
w ay (phrasal verb)
10 period of time ('term' can also be used in this expression)
5 .‘ Project m anagem ent is a distinct area w ithin
operations m anagem ent. Com plete the sentences below
w ith the w ords in the box:
constraints Gantt chart milestones scope
setbacks small print stakeholders track
1 Difficulties that stop the progress of a project are called
2 All the people with an interest in the success of a project
are collectively called the .
3 A visual illustration of the different phases and activities in
a project (composed of many horizontal bars) is called a
4 Before you sign a contract, it's very important to read the
5 The events that mark the key stages in a project are called
6 The factors that limit your actions (such as time and cost)
are c a lle d _____________________
7 The _ of a project is the range o f things
that it deals w ith.
8 If a project is 'on- ', it is going according
to plan; if you 'keep of something', you
pay attention to it so that you know w hat is happening.
Discussion topics
1 In a customer-focused business, product development
should be the responsibility of marketing, not operations.
A g re e D isag re e
2 A long-term relationship w ith just one supplier is better
than having many suppliers.
I A g re e D isag ree
3 The most interesting use of technology in business
operations that I have heard of (or know) is ...
4 Companies are becoming like 'virtual operations' - they
seem to be there, but in fact only a few key people on
permanent contracts keep everything running. More and
more jobs are done by outside people on a short-term
basis for individual projects.
A g re e I D isag ree
 I j J * ' Production

A business that m akes n o th in g b u t m o n e y is a p o o r business.

Henry Ford (1863-1947), founder of The Ford Motor Company

Managing the production process T h e tech n iq u es u sed for lean o p e ratio n s are o ften called
'ju st-in -tim e ' (JIT) tech n iq u es. T h e se in clu d e:
M a n u fa ctu rin g takes p lace in a p la n t (= facto ry / facility ).
T h e p ro cess can be 'c a p ita l-in te n s iv e ' (= req u irin g a lot of M a k in g e v ery e ffo rt to e lim in a te w aste.
fin an ce) or 'la b o u r-in te n s iv e ' ( re q u irin g m an p o w e r). If D e v e lo p in g w o rk in g p ra ctice s w h ich su p p o rt
the o p eratio n is e fficien t at tra n sfo rm in g in p u ts (= 'c o n tin u o u s im p ro v e m e n t' (o ften called bv its Jap an e se
m aterials, lab o u r and in fo rm a tio n ) in to fin ish e d goo d s, n am e 'k a iz e n ').
then there is a high level o f prod u ctivity. In v o lv in g all staff in q u a lity in itiativ es.
Im p ro v in g the flow o f w o rk -in -p ro g re ss arou nd the
K ey stag es in the m a n u fa ctu rin g p ro cess are:
plant by rea rra n g in g la y o u t and u sin g m a ch in es th at are
P lan ning. T h is in v o lv es try in g to b rin g to g eth er cu sto m e r
sm all, sim p le , ro b u st and flexible.
d em an d w ith o p e ratio n al issu es of v olu m e, tim in g, and
R e d u cin g set-u p and ch a n g e -o v e r tim es.
the p u rch ase o f m aterials. A 'b ill o f m a te rials' is
In co rp o ratin g m an u fa c tu rin g c o n sid era tio n s into Ihe
p rod uced , this is com p ared w ith the existin g inventory,
d esig n p ro ce ss (red u cin g p ro d u c tio n costs by red u cin g
and any necessary p u rch ases are m ade.
d esig n com p lexity ).
S e q u e n cin g A s u p e rv iso r d ecid es w h ich w o rk statio n (=
W h y u se JIT tech n iq u e s? B eca u se m aterials, w o rk -in -
m a ch in e an d / o r e m p lo y e e ) w ill carry o u t w h ich tasks in
p ro g ress and fin ish e d g o o d s th at are n o t b e in g u sed
w h ich order.
re p rese n t a w aste o f tim e, sp ace and m oney.
S ch ed u lin g . T h e s u p e rv iso r d ecid e s w h en p a rticu la r
tasks sh o u ld start a n d finish.
Quality management
D isp atch in g . T h e su p e rv iso r a u th o riz e s tasks to b eg in
W h a t is q u ality ? Is it a m a n u fa c tu rin g p ro ce ss free of errors
(gi\ ing d etailed in stru ctio n s).
and w aste? O r is it h a v in g the b e st sp e cificatio n s,
. L o ad in g . M a te ria ls o r parts are in tro d u ced to an
re g a rd le ss o f p rice? Is it p e rh ap s a p ro d u ct th at is 'fit for
o p e ra tio n so th at it can b e g in . (A ro b o t lo ad s an
p u rp o se ', h a v in g o n ly featu res th at the u ser a ctu ally need s?
assem b ly lin e w ith a n ew co m p o n e n t, an o p e ra to r loads
Is v a lu e -fo r-m o n e y an im p u 'ca n t factor?
a m ach in e w ith raw m aterials.)
M o n ito rin g . T h is in v o lv e s ch e ck in g p ro g ress, e lim in a tin g M o st p eop le w ould agree that q u ality inclu d es: functionality,
b o ttlen eck s, and id e n tify in g and so lv in g p ro b lem s. ap p earan ce, reliability, durability, ease o f recovery from
p ro blem s, and con tact w ith com p an y staff. B ut is there
K ey issues are:
an y th in g else, and how is q u ality to be m easured ?
C on trol o f cap acity - there m ig h t be a n eed to ram p up
M an y y ears ago, 'q u a lity con tro l' m ean t tak in g sam p les o f a
(~ in crease) p ro d u ction .
p ro d u ct and d o in g tests to see if it m et tech n ical stand ard s.
C on trol o f inventory.
T h e n 'q u a lity a ssu ran ce' w id en ed its sco p e to in clu d e som e
Lean operations and JIT n o n -o p eratio n al fu n ctio n s su ch as cu sto m e r service.
N ow ad ay s, 'to tal q u ality m an ag e m e n t' (T Q M ) cov ers the
O u tsid e o f a b u sin e ss con text, 'le a n ' m e an s 'th in in a
w h o le org an izatio n , from m o re trad itio n al areas like p ro cess
h ealth y w a y '/ 'n o fat'. In a b u sin e ss con text, it refers to an
control and p ro d u ct testin g to d e te rm in in g cu sto m e r n eed s
ap p roach w h ich tries to m eet d em an d in sta n ta n e o u sly w ith
and d ea lin g w ith com p lain ts. It in clu d es all the id eas o f lean
p e rfe ct qu ality and no w aste. T h e m o st im p o rtan t id e a of
o p eratio n s and JIT. A nd a w h ole in d u stry has d ev elop ed to
lean o p eratio n s is th a t o f m in im iz in g in v e n to r}' k ep t o n the
p ro v id e in tern atio n al stan d ard s fo r m e asu rin g quality;
p rem ises - both sto ck and w o rk -in -p ro g re ss (W IP ). So
am o n g st the b e st k n o w n are the ISO 9000 fam ily and 'S ix
parts, co m p o n en ts, raw m aterials and o th er su p p lie s are
S ig m a'. (This term is a statistical m easu re m ean in g few er
d eliv ered to the factory ju s t as th ey are n eed ed . A nd o n ce
than 3.4 d efects p er m illio n item s p ro d u ced .)
d eliv ered , the th ro u g h p u t (= rate at w h ic h w o rk go es
th ro u g h the sy stem ) is fast.
N ote that w ith lean o p e ra tio n s the cap acity u tiliz a tio n (=
ratio o f actual o u tp u t to p o ten tial o u tp u t) is o ften low. T h is
is a d ifferen ce w ith trad itio n al ap p ro ach es. N o te also that
the need to carry in v en to ry d o e s n 't d isa p p e a r - it ju st shifts
to su p p liers.

w w w .quallty.co .ukw w w .qualitydigest.co m w w w .isixsigm a.co m w w w .bized.ac.uk (Search 'quality')


Leen M A n u f A cturinjj And 3 IT
'ICAnbAn' - uSinj^ A 'puli' SySteM where
production responds quickly t o reA l,
observed deMAnd. ThiS C o n tra sts w ith A
'push' SySteM where production is based
on foreCAStS o f demAnd Cwhich MAy n ot
be accut At e 1
Flexible MAnufActurinj^: deSi^nin^ Machines
t o do Multiple tA SkSj repro^f'AMMin^
Machine to o ls wbile tb e y A re running
MaSS custom ization: tailoring products
to Meet tbe needs o f a larae number
\ o f individuAl custoMers
d u a lit y CAn be Seen froM A
M A n u f a c tu r i ruj o r a cuStoMer
po in t of view
Fterfect <juality cowes A t
A p rice: is i t j u s t i f i e d ?
A u A lity StAndATdS: internA l
tecbniCAl StAndArdS, 1^ 0 9 0 0 0
fAMily, ^ ix ii^M A
Checks on a u a lit y : wbAt t o cbeck
f o r ? which Stag es in tbe
production p ro ce ss? freq u e n cy ?
every product o r j u s t a SAMple?
Use o f benchmarking (■ cowpAriSon
w itb b e st p m ctice in tb e in d u stry ">
AS A tool f o r iMprovewent i \
www.vocne.com (> Solutions > Learning Center)
PRODUCTION
Contin u ou s proc&if: work, in
progress w ith o u t stopping
Ma s s proceSS: hiah volume, low va.ne.ty
E>Atch process: groups o-f products o f
f l i t s a m type. Move through th e process
3ob production: low voltuue,
o p p o rtu n ities f o r cuStom iZAtion
Fk o je ct ( a s in 'p roject MAnAdeMent''):
highly custom ized p rod u cts, lon^ tiweSCAle
Fo recastin g deMAnd flu ctu A tio n S:
SeASonAlity, e tc
PRObucnON
M axim izing CApACity u tiliz a t io n
Cs MAkin^ tb e b e st use o f tb e
CApACity you bAve~>
M onitoring equipment:
se t-u p And change-over
tim e / ca uses o f breAkdownS /
Speed losses / q u a lity losses
A d ju stin g CApACity:
O v e rtiM e / usin^ p A rt-tim e S tA ff;
Subcontracting pArtS o f tbe
operation', chan^in^ deMAnd
through price', developing products
w itb a d if f e r e n t SeASonAl deMAnd
A d v A f c tA ^ e s o f
S t o r i n g M A t e r iA l s
&uy th e b e st when i t is available
Respond quickly And flexibly
t o changes in deMAnd
JnSure A^AinSt unexpected problems
Buy in bulk t o reduce co sts S
t> iS A c lv A n t A 4 £ S o -f
f FlerpetuAl inventory SySteM: \ s to r in g M A t e r iA l s
/ Softw A re knows wbAt WAS Sold
(and when And where V, when T ies up working CApitAl
| inventory fe lls t o a predefined H a s t o be s to r e d ,
V e -o rd e r level' th e re is a insured And bend led
\ t r i ^ e r t o o rd e r More Stock C A n d e t e r io r A t e
o r be damaged
www.tutor2u.net (> Revision Notes/Production & Ops) 27
 Production: Exercises
6.1 Fill in the missing letters.
1 A specific problem that causes delays to a whole process,
is called a 'bo eck'.
2 The amount of work that can be dealt w ith in a particular
time period is the 'thr put'.
3 Actual output divided by potential output is 'cap y production is lost
u ion' (eg room occupancy rates in a hotel).
4 A product that serves its intended function, w ithout any
extra features, is described as 'f_ _-for-pu _ _ e'.
5 If a product has good quality in relationship to its price,
then it is 'good v -for-m
6 The characteristic of 'always working well' is 'rability'.
7 The characteristic of 'lasting a long time' is 'd
8 A fault in the w ay something is made is a 'd
6.2 Match the different stages in the production
process w ith their descriptions 1-6 below.
planning scheduling loading
sequencing □ I dispatching J monitoring
1 introducing materials to an operation so it can begin
2 authorizing a task to begin
3 bringing together customer demand with operational
issues of volume, timing, materials, etc
4 checking progress and solving problems
5 deciding when tasks should start and finish
6 deciding which workstation will carry out which task in
which order
6. : Read about the relationship betw een WIP (work-in-
progress) and different types of production process.
As you read, im agine an exam ple fo r each one.
1 In a continuous process there is a network of complex,
capital-intensive machinery through which WIP flows
w ithout interruption. One example would be ...
2 In a mass process, there is an assembly line where WIP
moves along the line past workstations carrying out fixed
operations. One example would be ...
3 In a batch process, machinery and equipment are located
in 'cells' around the plant, and WIP moves in groups to
different cells; in each cell a variety of specialized
operations can be carried out. One example would be ...
4 In jo b production, there is a fixed position layout where
the WIP does not move; instead operations are scheduled
in sequence on it. One example would be ...
5 In a large-scale project, the WIP is often off-site, or at the
customer's own premises. One example would be ...
Now com plete each paragraph w ith the most
appropriate exam ple: construction o f a building, an
autom obile plant, aircraft m anufacture, clothing
m anufacture, stee l making.
6.4 The w ord 'time' appears in a lot of expressions
used in production and operations. W rite each w ord
next to its definition: ch a n g eo ver time, cycle time,
dow ntim e, lead time.
1 when equipment (or the whole line) stops working and
2 time between one job / batch finishing and the next one
beginning (includes time taken to prepare machinery for
the new process)
3 time required from receiving a customer order to final
delivery; it includes order processing, pre-pack time, in­
transit tim e, receiving and inspection
4 time taken for a given job / batch to pass through all the
ility'.
operations n e e d e d _________________________
t'.
Continue as before w ith these w ord s: lag time,
o vertim e, set-u p time, tim e-to-m arket.
5 extra hours that someone works, beyond their contractual
obligation (and often paid at a higher rate)
6 time taken to prepare machinery and equipment for a new
job / batch . _. ___
7 time required from the initial concept for a new product to
when it first goes on sale
8 any period of delay between one event and another (eg
between giving an instruction and the operation
beginning)
6.5 Com plete this text about 'kaizen' using the w ords
in the box.
competitors culture cycle improvement
marketplace metrics process resistance
K
aizen is a term used in lean manufacturing to mean
continuous 1 .It describes a
corporate 5 where everyone
works proactively (= taking action before a problem
develops) to improve the manufacturing
. This is essential in today’s
changing 4_____________________ - someone is going to
come up with a better, faster or cheaper way. and it will
either be you or y o u r5,____________________________ .
How can you know if continuous improvement is
happening? You establish a system of monitoring key
6_ (= variables that can be
m easured). For example, average
times, or the time it takes to successfully complete a
changeover. And employees must be involved, otherwise
there will be a lot o f 8
 6 PRODUCTION

6.6 Stu dy the collocations below . Check an y unknow n

w ords in a dictionary.
first-rate, high, low, inferior, outstanding, top,
uneven, poor, variable
assess, demand, evaluate, keep up, insist on,
maintain, measure, preserve, test
begin, boost, cut back (on), go into, increase,
ramp up, reduce, scale down, speed up, start up
be in charge of, keep track of, monitor,
rationalize, simplify, streamline, supervise
excess, full, limited, maximum, reduced, peak,
spare, total
carry, dispose of, get rid of, have, hold, keep,
reduce, reorder, replace
Now divide the w o rd s in each box into three groups,
based on th eir m eaning.
first-rate, low. poor, uneven,
outstanding
Companies are audited to make sure that they deserve the
ISO award, and this provides both a discipline for
manufacturers and an assurance for customers. Another set
quality
of standards, the ISO 14000 series, covers environmental
standards.
quality
The ISO approach has been adopted worldwide, but it
has its critics. People say that it encourages a recipe-based
production
approach, sometimes called 'management by manual',
rather than a more custom ized approach. Also, the whole
the process
process of keeping records and carrying out internal audits
is expensive and time-consuming.
capacity
An alternative approach that is becoming very popular
inventory among large com panies is 'Six Sigm a’. This is a term from
(= stock) mathematics, but in a manufacturing context it means
having a target of only 3.4 defects per million items. Like
ISO, it now has a whole series of tools and techniques and
is very expensive to implement. It recom m ends that
organizations have a specially trained taskforce of internal
quality consultants, dedicated full-time to improving processes.
These people are ranked as B lack Belt, Green Belt, etc.
A third approach to measuring perform ance against a
quality standard is ‘benchm arking’. This is not like ISO and Six
Sigma because the standard is not pre-defined; instead the
standard is simply the best practice of your competitors (or
production
your own past results). The organization then tries to match
(or even exceed) this best practice.
the process

Cover the text. M ake phrases by m atching th e columns.

capacity 1 cover a wide worldwide
2 determine customer range of activities

inventory 3 deal to implement

4 be adopted needs
5 keep practice of your competitors
6. . Read th e text abo u t q u ality standards. 6 carry out internal against a standard
7 be expensive with complaints

T
he International Organization for Standardization is a
8 be dedicated records
worldwide federation of national standards bodies. They
9 measure performance to improving processes
promote the 'ISO 9000’ series of standards, and these cover
10 match the best audits
a wide range of activities: determining customer needs,
dealing with complaints, product testing, storage, etc.

Discussion topics
1 You are a teenager and you offer to wash your parents' car.
This activity is similar to the manufacturing process
described on page 26 (planning / sequencing / scheduling /
dispatching / loading / monitoring) because ... However it
is different because ...
2 The most high-quality, low-cost, customer-focused and
environmentally-friendly production process I know is ...
You run a small convenience store in a residential area.
Discuss problems and solutions in relation to control of
capacity and control of inventory. (See mind map.)
Lean operations, JIT, quality management, etc are now so
widespread that very fe w products have faults.
I A g re e D isag ree
 Marketing strategy and product development

Business has on ly two functions - m arketing a n d innovation.

Peter D rucker (1909-2005), A u strian au th o r of m anag em en t-related literatu re

Marketing strategy A n o th e r im p o rta n t so u rce o f second ary d ata is sim p ly to

lo ok at co n su m e r b u y in g p attern s in m ore d ev elop ed
A m ark etin g stra te g y in clu d e s the fo llow in g :
m a rk e ts w h ere the p ro d u ct is alread y av ailab le.
A n aly sis o f the w id e r b u s in e ss e n v iro n m e n t. M ore
D ata co llected fo r the first tim e (= p rim ary d ata) is m ore
sp ecifically : the p o litical / legal, eco n o m ic,
d ifficu lt and e x p e n siv e to o btain , b u t w ilt give an sw ers to
social / cu ltu ral, and te ch n o lo g ical facto rs o p e ra tin g in
the e xact q u e stio n s th at m a rk e te rs are in te re ste d in. It
the e x te rn a l w orld . (T h e a cro n y m 'P E S T ' is so m etim es
used here.) in clu d e s b o th q u a n tita tiv e in fo rm a tio n (eg carry in g out a
su rv e y on a re p rese n ta tiv e sa m p le o f p eo p le u sing a
Id e n tificatio n and an aly sis o f targ et m a rk e ts for n ew
q u e stio n n a ire ) and q u a lita tiv e in fo rm a tio n (th ro u g h focus
prod ucts.
grou p s, face-to -face in te rv ie w s, etc). A n o th e r im p ortan t
S ales goals in term s o f v o lu m e and rev en u e.
sou rce o f p rim a ry d ata is lo o k in g at the activ ity of
T h e m ark e tin g b u d g et.
co m p e tito rs (= b e n ch m a rk in g ), and this m ay inclu d e
E lem en ts o f the m ark etin g m ix, and their tim in g.
lo ok in g at th eir p ro d u ct ran ge o r th eir m ark e tin g strategy.
T h e term 'm a rk e tin g m ix' is a n o th e r n am e for the w ell-
A n ew area o f re se arch is eth n o g ra p h y : stu d y in g p e o p le 's
kn ow n fo u r 'P 's : p ro d u ct, price, p lace (ie d istrib u tio n
b e h a v io u r in natu ral en v iro n m e n ts.
ch an n el) and p ro m o tio n . In this b o o k , p ro d u ct and price
O f all the te ch n iq u e s abo v e, focu s g ro u p s in p articu lar can
are cov ered in the m in d m ap o p p o site, and d istrib u tio n and
g iv e v ery v alu ab le in fo rm atio n . A sm all g rou t-' of
p ro m o tio n in the n e x t u n it. S o m e w riters w ou ld ad d a fifth
c o n su m e rs sit in a room and d iscu ss a v ariety o f p re­
'P ': packag in g. T h e im p o rta n ce o f p a ck a g in g is often
d efin ed topics. T h e y m ig h t be asked how they feel ab o u t a
u n d e re stim ate d : it attracts the b u y e r's atten tio n , it e x p la in s
p a rticu la r b ran d , w h ich o f v ario u s p o ssib le n ew ad v ertisin g
the b en efits o f the p ro d u ct in sid e, it d escrib es the co n ten ts,
c am p aig n s th ey prefer, w h at id eas they h av e for im p ro v in g
and o f cou rse it also p ro tects the p ro d u ct d u rin g h an d lin g
an e x istin g p rod u ct, etc. T h e in te rv ie w is u su ally recorded
and c o n trib u te s to co n v en ie n ce and ease -o f-u se . A nd these
for later an aly sis.
d ays en v iro n m e n tally -frie n cily p a ck a g in g can giv e a
p rod uct a co m p e titiv e ad v an tag e . T h e re is ev en a six th 'P ':
Market segmentation
p eo p le. T h is refers to the k n o w led g e, sk ills and p e rso n ality
W h o is the targ et m ark e t fo r a p ro d u ct? A n im m ed iate
of the p re-sales and afte r-sa le s sta ff w h o com e into c o n ta ct
d istin ctio n is w h e th e r it is an in d u strial prod u ct (B2B:
w ith the custom er.
b u sin e ss-to -b u sin e ss), o r a c o n su m e r p ro d u ct (B2C:
M a rk ete rs o ften u se the term 'to tal p ro d u ct o ffe r' to
b u sin e ss-to -co n su m e r) aim ed at e n d -u se rs. A third categ o ry
reinforce the d iv e rsity o f e lem e n ts that m ak e up a
m ig h t be p ro d u cts fo r u se in h o sp ita ls, sch o o ls, pu blic
'p ro d u ct'. T h e se in clu d e v a lu e -fo r-m o n e y (= re latio n sh ip
tran sp o rt, etc (B 2G : b u sin e ss-to -g o v e rn m e n t). V arious
b e tw e e n q u ality and p rice), bran d n a m e and im ag e,
categ o ries o f in d u strial p ro d u cts are sh o w n in the m ind
p ackag in g, con v en ie n ce o f sales ch an n el, store
m ap.
su rrou n d in g s, serv ice, sp eed o f d elivery, the g u aran te e , etc.
In re latio n to c o n su m e r p ro d u cts, the 'm a ss m arket' is
Market research b e co m in g an o ld -fa sh io n e d co n cep t. P ro d u cts are
in cre a sin g ly targ eted at sp e cific m a rk e t seg m en ts. T h ere are
H ow do marketers- id en tify the n e e d fo r n ew p ro d u cts?
fo u r b a sic m e th o d s fo r seg m e n tin g a m arket:
H ow d o they d e c id e h o w to im p ro v e e x istin g p ro d u cts?
O ne very im p o rta n t w ay is by c o lle ctin g d ata u sin g m arket P ro d u ct-relate d : com fo rt, safety, luxury, g o o d valu e-for-
research. O th e r w ay s arc listed u n d er 'o rig in o f new m oney, co n v en ie n ce , d urability, etc.
p ro d u ct id eas' in tire m in d m ap o p p o site. D em o g rap h ic: age, gender, ed u catio n , fam ily life cycle,
in com e, o ccu p atio n , etc.
T h e easie st d ata to colle ct is in fo rm a tio n th at is alread y
P sy ch o g rap h ic: attitu d es, lifesty le, o p in io n s, v alu es, self-
av ailab le (= seco n d a ry d ata). T h is m ay be internal com p an y
im ag e, etc.
data such as the c o m p a n y 's sales fig u res b ro k en d o w n
G e o g ra p h ica l: reg ion, p o st cod e, etc.
acco rd in g to d ifferen t categ o ries (cu sto m ers, p ro d u ct lines,
territo ries, etc). A ltern ativ ely , it m ay b e e x te rn a l d ata fo u n d L o o k b ack at 'p ro d u ct-related ' seg m en tatio n abov e and
in p u blish ed so u rce s su c h as rep o rts from g o v e rn m e n t notice from the exam p les h o w m arketers are interested in
agen cies, trad e a sso c ia tio n s an d p ro fessio n al re se arch firm s. ben efits (from the cu s to m e r's p oint o f view ) rather than
featu res (from a purely p ro d u ct d esign p oin t o f view ).

www.businesslink.gov.uk (> Sales and marketing) vwvvv.toolkit.cch.com (>Marketing Your Product)

 MARKETING STRATEGY AND PRODUCT DEVELOPM ENT

r e s e a rc h
C o s t-b a s e d p r ic i a ^ : Add A SpeciPic P re - s a le s aad a P t e r - s a le S
p e rce ata^ e ( - M arkup") -to -the S ta P P liste a ta ^ -to CUStoM ers
base c o s t -to ^ive -the s e lti a ^ p rice
C u S to M e rs m akia^j d ir e c t s u ^ e s tio a #
B re a k e v e a AA alySiS: de-ter m ia ia ^
C o M p e tito r a c t i v it y (lACludlAtj a t t e M p t S
-the MiaiMUM s a le s vo Iu m c thA-t
-to re ve rse . e a ^ ia e e r' p ro d u c ts - Piadia^
co vers a II -the co st#
o u t how th e y w e re Made AAd th e a
copyia^ -the. process')

T h e R-i-b departMeat

P x t e r A a l chaaaes iA -the M a r k e t

Pro d u ct li ae: ^rowp oP relA ted

products t h A t Are phySiCAlly
S i m ! la r o r iAteAded Pbr th e

SAMe M a r k e t

PRODUCT P ro d u ct mix (p ro d u ct raa^e^:

a sso rtM e a t oP product liAes

AND AAd iAdividuAl oPPeria.ijs

P r o d u c t I iPe cy cle: iA tr o d u c tio A ;

PRICE g r o w t h ; M a t u r i t y ; d ecliA e

B rA A d : A A A M e, SyM bol o r d e s i^ A
(o r SoM e C O M b l A A t io A ^
t h A t id e A tiP ie s a p ro d u ct

TradeMArk: a A A M e or SyMbol t h A t
cAAAot be used by A A o th e r producer

B ra a d loyAlty pASSeS through

P r o P it a b ilit y : th e A o rM A l b u S iA e S S A iM oP three stages:
A c h ie v i a ^ a re tu rA oa iA v e s t M e A t by
1. BrAAd AWAreAess
M A x iM iz ia ^ re v e A U e AAd m i a i m i z i a ^ c o s ts
( - brA A d r e c o ^ a i t i o A -)
M A rk e t sh a re : lacreasi aij your perceata^e oP 2. BrA A d prePereA ce
th e M a rk e t by selli a^ a t a low price, eveA 3 . BrAAd iASiSteAce
ip i t MeaA# t h a t p ro P its a re also low

M a tc h : a^ t h e M a r k e t le a d e rs : sett:a<^ price
accordia^ t o w h a t is S t a a d a rd iA th e
M a r k e t , AAd th e A coMpetia^ by CMphaSizia^
lA S ta lla tio A S : M ajo r c a p it a l ite M S ,
o t h e r b e A e P its such a s desi^ a, s e rv ic e , coAveAieAce
heavy e^ uipM eat, e t c
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a a iMA^e oP q u a lit y aad e x c lu s iv ity
haad to o ls, photocopiers, e tc
Id e atiP y ia^ th e c o r r e c t p rice p o ia t : iA a C oM p o aeat p a r t s : e^ b a t t e r ie s
p ric e -s e A S itiv e M a r k e t , iA cre a S : a ^ th e purchased b y a a a u to M A k e r
p rice beyoAd a c e r t a iA p o iA t w ill dAMA^e sale s
R a w M a t e r ia ls : ParM aad a a t u r a l
S o c ia l o b je c tiv e s : ^overAM eats c a a s u b sid iz e p ro d u c ts, e<j w h e a t, s t e e l, le a t h e r
price# So t h a t low-iACoMe ^roup# c a a
aPPord a b asic p ro d u c t (t y p ic a l exAMples Su p p lies: expease iteM # t h a t do a o t
a r e u t i l i t i e s aad ParM p ro d u cts') becoMe p a r t oP t h e P ia a l p ro d u c t,
e^ ropy paper

www.businessballs.com (> business plans and marketing strategy - how to write) www.marketingteacher.com
 Marketing strategy and product development: Exercises

7.1 Fill in the missing letters. 7.3 Com plete the text w ith the w ords in the box.
1 Data collected by market research can be 'qu jtative' advertising budgets consumei tastes differentiate products
(= factual and numerical), or 'qu itative' (= opinions and early adopters making a loss reaches sa turation
attitudes that are difficult to measure). similar offerings withdrawn from the market
2 Another word for the final consumer of a product is the
'e . _-u ___ r'. The classic product life cycle is Introduction, Growth, Maturity
and Decline. In the Introduction stage the product Is
3 The relationship between quality and price is referred to as
promoted to create awareness. It has low saies and will still
'v -for-rn This phrase often has the word
be 1____________ . If the product has tew competitors,
g o o d in front, to mean 'cheap' ('cheap' can have a
a skimming price strategy can be used (a high price for
negative connotation).
_ . which is then gradually lowered), In the
4 Marketers tend to emphasize 'be its' (= advantages for
Growth phase sales are rising rapidly and profits are high.
the customer) rather than 'fea. es' (from a product
However, competitors are attracted to the market with
design point of view).
3_ . . . The market is characterized by
5 A name or symbol that has legal protection is called a alliances, joint ventures and takeovers. 4
'registered tr __________ k'. are large and focus on building the brand.
6 Two key concepts in pricing a re 'm -up' (= the % In the Maturity phase sales growth slows and then stabilizes.
added to the cost to give the selling price) and Producers attempt to 5_ and brands are
' br even volume' (= the sales volume at which the key to this. Price w ars and competition occur as the market
product starts to make a profit). . In the Decline phase there is a
downturn in the market. The product is starting to look old-
7.2 Complete the text with the words in the box.
fashioned or ! have changed. There is
brand awareness brand names brand loyalty intense price-cutting and many products are
market leader market share product lines s
product mix profitability
7 .4 M ake phrases and then com plete the text below.
1 carrying out sample of people

P roctor & Gam ble is a very well-known company in

the household and personal goods sector. It has 2? 2 gaps in the a survey

different1 including baby care, 3 consumer of competitors

cosm etics, household cleaners, laundry, oral care, etc. 4 published needs
The combination of all these makes up P&G's 5 a representative market
2 (= product range). P&G has 6 statistically sources
many well-known 3 . such as 7 the activity reliable
Ariel, Pampers, Pantene, but notice that the brand is not
the sam e as the company name (although in other arket research is the process by which a company
companies it is). P&G spends a very latge marketing IV collects information about 1

budget maintaining the 4______________ -_________________ of its and preferences. The information helps to identify market

customers - it wants them to be satisfied and committed to trends and s p o t2

furthe ■purchases. But even larger sum s are needed when The easiest data to collect is that from existing

it launches a new product - 5________________________ .______ such as government reports.

(= brand recognition)has to be built up from zero Other valuable information can be obtained by studying

What about P&G’s pricing policy? Well, they are a consumer behaviour in more developed markets, or
____ so they don't have to set looking at 4 (benchmarking).

artificially low prices to gain sales volume and Primary data, collected for the first time, is more difficult
. Instead, they can focus on to obtain. F ir s t ,s __________________________ . has to be
_____________________ - maximizing revenue and carefully chosen it has to be large enough to be

minimizing costs. 6________________ , and also checked for factors

such as age. sex. occupation. Common research methods
inciude 7 using a
questionnaire, or face-to-face interviews with existing
customers.
 7 MARKETING STRATEGY AND PRODUCT DEVELOPMENT

7.5 Match the w ord s in th e box to their definitions 7.7 Study the collocations below . Check an y unknow n
below . Be careful - th ey are very similar. w o rd s in a dictionary.

benefit characteristic feature requirement
specification USP (unique selling point)
1 something a customer asks for, or needs
2 something that makes a product special or different from
others
3 (usually plural) exact technical details, or a detailed
instruction about how something should be made
4 advantage that a customer gets if they buy the product
5 important, special or interesting part of a product
6 typical quality that makes a product recognizable
sales campaign, drive, figures, force, personnel,
promotion, staff, team, volume
disappointing, export, foreign, global, international,
sales
overseas, poor, weak, worldwide
bring out, discontinue, improve, introduce, launch,
a product
modify, take ... off the market, upgrade, withdraw
attractive, exorbitant, fair, high, inflated, reasonable,
price
retail, selling
agree on / to, arrive at, bring down, cut, establish,
increase, lower, push up, put up, raise, reduce, a price
set, work out
booming, depressed, expanding, flat, growing,
market
healthy, niche, sluggish, specialist, strong, weak
be forced out of, break into, corner, dominate,
the market
enter, monopolize, take over, withdraw from

Now do the sam e for th ese w ord s. Now divide the w ord s in each box into three groups,
based on their m eaning.
budget estimate quotation
campaign, figures, force,
7 an approximate price that someone will charge you sales drive, volume personnel,
promotion staff, team
8 a fixed price that someone will charge you, often showing
different items in detail _______________ sates
9 a plan of how to spend money, or the money itself
a product

7 .6 M arketers use a PEST analysis to look at the

business environm ent. Typical item s are listed a)-l). Put price
them into the correct category below .
a) age structure of population
a price
b) changes in the fixed and variable costs of business
c) new production methods
d) national government policy market
e) changing tastes and fashions
f) level of consumer spending
g) developments in IT that open new markets the market
h) the economy, inflation, unemployment
i) EU / W TO regulations
j) lifestyle changes (eg more people living alone)
k) pressure from environmental or fair trade lobbies 1 I buy many products that I don't need. This shows that I
I) breakthrough products arising from R&D am being manipulated by large, evil corporations.
A g re e D isagree
1 Political / legal factors: j j I Q
2 Economic factors: 2 In relation to consumer products, the 'mass market' is
3 Social / cultural factors: □ □ □ becoming an old-fashioned concept.
4 Technological factors: i j A g re e D isag ree
3 Think of one well-known product you would buy just for
the brand name, one you would buy just for the price,
and one you would buy just for the packaging. Then, for
each one, discuss the company's marketing strategy.

4 Brainstorm a PEST analysis for these markets: consumer

electronics, automobiles, wind turbines.

33
 Distribution and promotion
Half the m o n ey I sp e n d o n advertising is w a sted ; th e tro u b le is I d o n 't k n o w w h ich half.
John Wanamaker (1838-1922), American businessman
Distribution
D istrib u tio n is the final link in a c o m p a n y 's su p p ly chain,
and im o lves g ettin g the rig h t p ro d u cts to the cu sto m e r at
the righ t tim e. It in clu d e s the p h y sical h a n d lin g o f g o o d s,
w areh o u sin g , ch o ice o f d istrib u tio n ch an n el (eg w holesaler,
retailer, d irect to co n su m e r), ch o ice o f retail o u tlet, and
ord er fu lfilm en t ( d o in g so m e th in g th at is p ro m ised ).
The m ind m ap o p p o site lists the m ain o p tio n s foi retailing .
T h e m ain trend has b e e n to m o v e aw ay from sm all fam ily -
ow ned stores (A m E m om and p op sto res) to large sh o p p in g
cen tres (A m E m alls). A v ariatio n , c o m m o n in the US, is a
large o u t-o f-to w n m ail w h ere g ian t 'b ig b o x ' stores
su rrou n d a cen tral car p ark (A m E p ark in g lot). Future
trend s m ay in clu d e o ffe rin g m o re e n te rta in m e n t to attract
cu stom ers, and d ev e lo p in g p riv ate la b el (in -h o u se ) b ran d s
as ch e ap e r co m p e titio n to n a m e -b ra n d go o d s.
The promotional mix
T h e term 'p ro m o tio n ' is v e ry broad . I o o k at the m ind m ap
to see d ifferen t e lem e n ts o f th e p ro m o tio n a l m ix. T h e first-
item in the b u b b le, sa le s p ro m o tio n s, is cov ered in m ore
d etail on an o th er b ran ch o f the rnap. T h e o th e r item s are
cov ered in m o re d etail b elo w .
P erso n al sellin g (= sales): this is the d irect face-to -face
co m m u n icatio n b etw een sa le sp e rso n and cu stom er. The
sales process h a s v ario u s stages:.
P ro sp ectin g : id e n tify in g a p o ten tial cu sto m e r ( - a
p rosp ect) w h o h as the ab ility and a u th o rity to buy.
2 A p p ro ach : c o n ta ctin g the p ro sp e ct and p rep arin g for
the sales interview .
P resen tation : d escrib in g the featu res o f the p rod u ct,
h ig h lig h tin g the a d v an tag e s o v er c o m p e tin g p ro d u cts,
and giv in g e x a m p le s o f satisfied cu sto m ers.
D em o n stratio n : if p o ssib le, the c u sto m e r is g iv e n a
ch an ce to see the p ro d u ct in use.
A n sw erin g o b je ctio n s: c u sto m e rs sh o u ld be g iv en a
ch an ce to e x p re ss th e ir d o u b ts, as they are u n lik e ly to
b u y u n less-th ese are d ea lt w ith. A t this stage the
sa le sp e rso n stre sse s b e n e fits ra th e r th an featu res.
C losing: the salesp erso n asks the prosp ect to buy. If the
cu stom er still has d oubts then op tions inclu de offering
an alternative product, offering a special incentive, or
restating the prod uct ben efits.
F o llo w -u p : p ro cessin g the o rd er q u ick ly and
efficien tly, and reassu rin g the c u sto m e r ab o u t their
p u rch ase d ecisio n d u rin g fu rth e r co n v ersatio n .
L o n g-term relatio n sh ip : go in g on to e sta b lish reg u lar
co n ta ct w ith the cu stom er.
■
i F u rth e r in fo im a tio n www.consumerpsychologist.comwww.davedolak.com/promix.htm
Adv e rtisin g : the use o f d ifferen t m e d ia Such as telev isio n
co m m e rcia ls, a d v e rtise m e n ts in n e w s p a p e rs and
m a g a z in e s, d irect m ail, o u td o o r (b illb o ard s, p o sters o n
b u s-sto p s), fly e rs g iv e n to p e o p le on die street, Internet.
P u b lic relatio n s: m a n a g in g 'p u b lic ity ' (in fo rm a tio n that
m ak e s p e o p le n o tice a co m p a n y ). T h e PR fu n ctio n in a
c o m p a n y n e e d s to e sta b lish g o o d re la tio n s w ith the
n ew s m edia in o rd er to con tro l tiiis in fo rm a tio n , and PR
p e o p le issu e press re le a se s an d h o ld p ress con feren ces.
E v en ts: m e m o ra b le o cc a sio n s (in-sLore, o n the street, in
an u n u su al lo cation ).
S p o n so rsh ip o f sp o rts te am s, m u sic grou p s,
th eatre / op era / b a lle t etc.
E n d o rse m en ts by ce le b ritie s (eg 'th e face o f L 'O real', rap
a rtists w e a rin g a c lo th in g bran d ).
Trad e p ro m o tio n s to re tailers, e g fin an cial ini e n tiv e s to
sto c k a n ew p ro d u ct o r to g iv e m ore sp a ce / v isib ility to
e x istin g p ro d u cts (eg s h e lf h e ig h t an d aisle position).
O th er: p ro d u ct p la ce m e n t in film s, w o rd -o f-m o u th (=
p e rso n al re co m m e n d a tio n s), viral m a rk e tin g (o n lin e
th ro u g h social n e tw o rk in g w eb sites and frien d s e m ailin g
v id eo clip s). T h e term 'g u e rrilla m a rk e tin g ' cov ers all
u n co n v e n tio n a l te ch n iq u e s - from v iral m a rk e tin g to the
d istrib u tio n o f free p ro d u cts o n the b each .
Building customer relationships
Today, a m a jo r p art o f p ro m o tio n is d e v e lo p in g lon g-term
re latio n sh ip s w ith c u sto m e rs so th at th ey m ak e rep eat
p u rch ase s and are o p e n to c ro ss-se llin g o f related p ro d u cts.
Tools for d ev e lo p in g cu sto m e r re la tio n sh ip s in clu d e:
B u ild in g a b ra n d id en tity th at the cu sto m e r w ill relate to
(eg th ro u g h sp o n so rsh ip and e n d o rse m e n ts).
Frequency7 p ro g ram s (eg fre q u e n t-fly e r p ro g ra m s on
airlin es).
F o rm in g c o m m u n itie s o f b u y e rs (eg c o n su m e r d ra t
ro o m s o n the In tern et, o r m e e tin g s o f o w n e rs o f H arley
D a v id so n m o to rb ik e s).
A ffin ity m a rk e tin g (= a ttra ctin g cu sto m e rs on the basis
o f th e ir o th er in te re sts, for e x a m p le lin k in g a credit card
to a fav o u rite ch arity ).
• In d iv id u alize d a d v e rtisin g b ased o n p re v io u s p u rch ases
(eg A m a z o n 's b o o k su g g e stio n s).
■■■ C o -m a rk e tin g w ith a n o th e r c o m p a n y (eg g iv in g aw ay a
toy at M cD o n a ld s th at lin k s to a new D isn ey film ).
U sin g C R M so ftw a re to give the c u sto m e r a m ore
p erso n al e x p e rie n ce w hen th ey co n tact the com pany.
www.marfcetingteaehercon
 8 DISTRIBUTION AND PROMOTION

U te rrA l Direct distributicr: -Froiw the

producer or service: provider
;j T o a e e e r A t e erth u S iA S M A M O^S-t sa le sp e o p le
StrAiijht -to -the coASuMer or
a Ad other cuStoMer-coAtAct StApf
busiA ess user

Use o P Arc iAper»«ediAry

M i d d leMAO: OAe or Mo r e oP
* E»2E» j»rodiAct^ <jervt / broker, distributor,
wholeSAler, ratAiler
T rA d e shows C- trAde pAirs / exhibitioASb
PbrtPolioS oP products Por SAlespeople
beAls Ccij price reductioA S)

CAtAlo^ues / brochures____________

WAr e b o u S ir^ , iA v e x to ry c o r t r o l
AAd M A teriA lS herd l? A4

CuStoM er service C- order PulPilMerct,

WArrAAty A Ad repAir issues’)
f C o A S iA ju e r p r o d u c t s
L o g i s t ic s : t h e w o rk oP plAAAiAij AAd
^peciAl oPPer: / O ^ o P f o r^ a A t2-ia^ t h e M oveM eAt o P M A teriA
Por a liMited tiMe ^oods a Ad people

&OAUS: buy OAe, T rA A S p o rtA tio A C th e t e r M shippiA

<aet OAe Pree i s A SyAOAyM A r d d o e S A o t O A l y

CoUpOAS t o c u t o u t re+ er t o ships’)

O p A MA^AtlAe

F re e SAMples
U - S t o r e diSplAyS
CAtAlorjues / brochures I
N o A -s to re r e 't A i l i * ^
Q am c S a Ad co A te stS
b ir e c t-r e s 'p o A S e re tA iliA ^ : hoMe ft
FVoMotioAAl iteMS d e liv e r y o P a p o & i o r d e r e d th r o u g h y
with a a iMpriAted lo^o CA tAlo^ueS, e t c
^peciAl eveA ts
U t e r r e t re tA iliA ^ : oAliAe selliA^
t h r o u g h v ir tu A l s t o r e P r o r t S

DirTRI&UTlON Auto M A t i c MerchAAdisia ^ :

SAleS th r o u g h vaicdi a^ MAchiAeS

AND PROMOTION D i r e c t selliA ^: SAlespeople

do d o o r - t o - d o o r
/

^Ales proMotioAS
PersoicAl selliA^
-S to re re ts u li
A d v ertisirv i
Ftnblic relA tioA S CPR") ^ p e ciA lty s t o r e Ca.-j b o o k s t o r e , Plow er shopb

E v e rts CoAveAieAce s t o r e CbASic ^ o o d s,

^poASorship S to re opeA UAtil lA te , higher prices')
ErdorSaM eA tS b i S c o u r t s t o r e C very low
TrA de proM otioAS t o re tA ile rS p r ic e s , e^ A ld i, W A lM A rt)

O t h e r : p ro d u ct plAceMeAt, ^ U p e rM A rk e t / H y p e rM A rk e t
word -oP-MOUth,
D e p A rtM C A t S to re C e -j H A rro d s") - A iM e d
v i t a I M A rk e tir j , e t c
A t mo re u p M A rk e t CA m E u p s c u le ) c u S to M e rs

(>Quick links/Marketing Mix > place or promotion) www.cim.co.uk/mediastore/10_minute_guides/10_rnin_Promotional_Mix.pdf

 Distribution and promotion: Exercises

8.1 Fill in the missing letters. 8 .3 M ake collocations by m atching a w ord from each
1 Making sure that the customer gets the right goods at the column.
right time is called 'order fu _ . _m ent'. 1 brand channel
2 A place where goods are sold to consumers is called a 2 convenience mail
'retail ou t'. 3 direct relations
3 A potential customer is a 'pro__ ,_ect'. 4 distribution release
4 A large outdoor sign used for advertising is called a 5 in-store placement
'bi_ __o ard '. 6 press identity
5 It is important to develop long-term relationships with 7 product display
customers so that they m ake'rep t pur ses', and are
8 public store
open to 'c _ _ss-selling' of other related products.
6 A synonym for 'intermediary' is 'the mi man'. 8 .4 Match each stage in the sales process w ith its
7 A retailer has a shop (AmE store), while a wholesaler has a explanation 1-7 below.
'w ouse'.
Answering objections Approach Closing
8 The process of selling products connected with a popular Demonstration Follow-up Presentation Prospecting
film, person or event is called 'met ising'. In
American English this word is also used for 'selling goods' identifying a potential customer
in general. ■contacting the prospect and
preparing for the sales interview
8.2 Com plete each explanation w ith a pair of w ords 3 - describing the features of the
from the box. The w ords m ay not be in the right order. product
agent / broker brochure / catalogue 4 - giving the customer a chance
client / customer commercial / spot to see the product in use
promotion / advertising sponsorship / endorsement 5 - asking the prospect to buy

1 To refer to a buyer, the word is more
common where there is a standard product, and in shops
and restaurants. The w o r d ______________________is more
common in the service sector and where there is a degree
of personalization.
2 A list of everything that a company sells is calleda
. If it has lots of colour pictures and
looks like a small magazine it is more likely to be called a
. . The former may have prices as well,
the l atter would not.
3 A general word that means 'the process of attracting
people's attention to a product' is _ _ _ _ ______________ .
One specific example of this is , which
refers to text and images and sound in media such as
television, newspapers, billboards and the Internet.
4 An advertisement on television, radio or film is called a
. An informal word with the same
meaning is
5 is when a celebrity uses a certain
product as a w ay of promoting i t . _______________________ is
the activity of giving financial support to a sports or
cultural event.
6 Both words mean 'a person w ho does business on behalf
of another company'. The word is used
where there is a long-term relationship, whereas the word
______________________ is more common for individual
transactions (eg stocks).
6 ______________________- dealing with any doubts that
the customer has
7 ______________________- processing the order quickly
and maintaining long-term contact
8.5 The sequence 1-7 in exercise 8.4 is probably not
the best. Change the order of tw o item s so that the
prospect is more likely to buy.
8.6 Match these advertising m edia to the advantages
(+) and disad vantag es (-) below : direct mail, Internet,
m agazines, n ew sp a p ers, outdoor, radio, television.
1 __________________________
(+) good coverage of local markets; ads can be placed
quickly; ads can be cut out and saved
(-) ads compete with other text; ads get thrown away
(short life span)
(+) can target very specific audiences in specialist
publications; long life of ad (usually several weeks); ads
can be cut out and saved
(-) ads must often be placed months in advance; cost Is
relatively high

36

3 - _
(+) uses sight, sound and motion; reaches a wide
audience; high attention with no competition from other
material
(-) very high cost
4 ________________________________
(+) low cost; can target specific audiences; very flexible;
good for local marketing
(-) may have low attention because it is a background
medium; audience may not remember ad (only one
physical sense involved and nothing to keep)
5 ________________________________.
(+) high visibility and repeat exposure; relatively low cost;
strong local focus
(-) limited message; difficult to get attention of audience
for any one specific ad
6 _
(+) if linked to a customer database can be targeted at
very specific markets; very flexible; ad can be saved
(-) high cost; consumers may reject ad as 'junk'
7 __________ _ _ _
(+) connects a company with its customers at the precise
moment they are looking for a product; global coverage at
a relatively inexpensive price; interactive
(-) many 'eyeballs' but few 'click-throughs'; click fraud
(clicks on your advert arranged by dishonest companies or
competitors, not made by potential customers)
8.7 Find a w ord from the previous exercise w hich
m eans:
1 how widely information is distributed .
2 put somewhere, especially in a careful or deliberate way
3 try to influence a particular group of people
4 something that is not wanted or not healthy (collocates
with 'mail' and 'food')
5 Internet term referring to those occasions when someone
looks at so m e th in g ______________________
1 'Sales' sometimes has a bad reputation (selling used cars).
But this is wrong. In fact it is creative, challenging and fun
J A g re e D isagree
2 Advertising is not so important. A good product with the
right price and the right distribution will sell itself.
A g re e D isag ree
8 DISTRIBUTION AND PROMOTION
8 .8 Com plete the text w ith the phrases in the box.
inbound to g a fe outbound logistics materials handling
retail outlets warehouses customer returns end user
ex-works fob (free on board) cif (cost, insurance, freight)
T
he process of planning and controlling the physical
flow of materials in the supply chain is called logistics.
There are four stages. First, ' inbound logistic
is concerned with bringing raw materials, packaging,
etc from suppliers to producers. Second,
2_ is the movement of goods within
a warehouse, from the warehouse to the factory floor, and
from the factory floor to the various workstations. Third,
3 m anages the flow of finished
products through intermediaries to the final consumer.
Finally, reverse logistics involves bringing goods back to
the prem ises of the original manufacturer b ecause of
defects or o th e r4
The whole process is a shared responsibility between
marketing and operations, but clearly marketing is more
concerned with those areas that impact directly on
wholesalers, retailers and the 5
A key issue in logistics is choosing the right m eans of
transport. Options include rail, road (using trucks with
trailers), ships and air. Combinations of these are common.
Another key area of logistics is the storage function.
Marketers must have goods available in
____________all over the country, ready to
restock 7 or be delivered to
customers when ordered.
If import and export are involved, then there is an
important issue: who pays for which parts of the
transportation? Contracts have to specify this clearly, and
use Incoterms (international commercial terms) to do so.
There are many Incoterms, but the most common are:
8 _____________________ - the buyer picks up the
goods at the seller’s prem ises and arranges all the
transport and insurance.
9 . .. - the seller delivers the goods
onto a ship at a named port; from here all responsibility
(including the sea journey) passes to the buyer,
10 - the seller has
responsibility to a named port of destination, and so
pays for the cost and risk of the se a journey as well.
3 Everyone knows that celebrities in their private lives don't
actually use the products they advertise. You must be a
fool if you are persuaded by endorsements.
: A g re e f D isagree
4 Contemporary trends in advertising, communication and
promotion include ...
37
A Accounting and financial statements
Rem ind p e o p le that p ro fit is th e d ifferen ce b e tw e e n rev en u e a n d expense. This m akes yo u
look smart.
Scott Adams (1957-), creator of the Dilbert comic strip
Preparation of the accounts
The a cco u n tin g process, sta rts w ith inp u ts, and these are
things su ch as sales d o cu m e n ts (eg in v o ices), p u rch asin g
d o cu m en ts (eg receip ts), p ay roll record s, b a n k records,
travel and e n te rta in m e n t record s. T h e d ata in th ese inp u ts
is then p ro cessed by sp ecialized softw are:
E n tries are reco rd ed ch ro n o lo g ically into 'jo u rn a ls'.
In fo rm a tio n from the jo u rn a ls is p o sted ( - tran sferred )
into 'le d g e rs', w here it a ccu m u la te s in sp e cific categ o ries
(eg cash acco u n t, sales acco u n t, o r acco u n t fo r one
p articu lar cu stom er)
A 'tria l b a la n ce' is prepared at the en d o f each
acco u n tin g p erio d : this is a su m m a ry o f the led g er
in fo rm a tio n to ch e ck w h e th e r the fig u res are accu rate. It
is u sed d irectly to p rep are the m ain fin an cial state m e n ts
(in co m e statem en t, b alan ce s h e e t and cash flow
statem ent).
T h e fin an cial s ta te m e n ts o f large c o m p a n ie s h av e to bo
ch eck ed by an extern al firm o f au d ito rs, w h o 'sig n o ff o n
the acco u n ts' (= o fficially d eclare the acco u n ts are correct).
T h ey are pu blicly av ailab le, and ap p ear in the co m p a n y 's
ann ual report. U se rs of fin an cial s ta te m e n ts in clu d e:
sh areh o ld ers, p o te n tia l sh areh o ld ers, cred ito rs (len d ers, eg
ban k s), cu stom ers, su p p lie rs, jo u rn a lists, fin an cial an aly sts,
g o v ern m en t ag en cies, etc.
Profit and Loss Account
T h e p rofit and loss acco u n t (= in co m e statem en t, o r ju st 'th e
P & L ') su m m arizes b u sin e ss activ ity o v er a perio d o f tim e. It
b eg in s w ith total sales (= rev en u e) g e n era ted d u rin g a
m on th, q u arter or year. S u b se q u e n t lin es th en d ed u ct (-
su b tract) all o f the c o sts related to p ro d u cin g that revenue.
A t this p oint lo o k at the e x a m p le on page 40, and then
return to this text.
Balance Sheet
The b alan ce sh eet re p o rts the c o m p a n y 's fin an cial co n d itio n
on a sp ecific d ate. T h e b a s ic e q u a tio n that h as to b alan ce is:
A ssets L iab ilities + S h a re h o ld e rs' equity.
A n 'a s se t' is an y th in g o f v alu e ow ned by a b u sin ess.
A 'lia b ility ' is any a m o u n t o w e d to a creditor.
S h a re h o ld ers' e q u ity (= o w n e rs' e q u ity ) is w h at rem ain s
from the assets after all cre d ito rs h av e th eo retically been
paid, ft is m ad e up o f tw o elem e n ts: sh are cap ital
(rep resen tin g the orig in al in v e stm e n t in the b u sin ess
3S F u r t h e r in f o r m a t io n www.moneyextra.com/dictionarywww.cperformance.com/glossary.htmwww.tutor2u.net f> Revision Notes/Account
w h en sh ares w ere first issu ed ) p lu s any re tain e d profit
( reserv es) th at h as a ccu m u la te d o v er tim e.
A t th is point lo o k at the e x a m p le on p ag e 41, and then
retu rn to this text.
N ote the o rd er in w h ich item s are listed:
■ A ssets are listed ac co rd in g to h o w easily they can be
tu rned into cash, w ith 'c u rre n t a sse ts' b ein g m o re liqu id
th an 'fix e d assets'.
L iab ilitie s are listed a cco rd in g to h o w q u ick ly cred ito rs
h av e to b e p aid , w ith 'c u rre n t lia b ilitie s' (= b a n k d ebt,
m on ey o w e d to s u p p lie rs, u n p a id sa la rie s and bills)
b e in g p aid b e fo re 'lo n g -te rm liab ilitie s'.
Figu res fo r 'c u rre n t asse ts' and 'c u rre n t lia b ilitie s' are
p a rticu la rly im p o rtan t to a b u sin ess. The a m o u n t by w hich
the fo rm er e x ce e d s the latter is ca lle d 'w o rk in g cap ital'.
T h is g iv es a q u ick m easu re o f w h e th e r there is e n o u g h cash
freely av ailab le to k eep the b u sin e ss ru n n in g .
Cash flow statem ent
C o m p a n ie s n eed a sep a ra te record o f cash receip ts and cash
p ay m en ts. W hy is this? Firstly for the reason g iv e n abo v e -
it sh o w s the real cash that is av a ila b le to keep the b u sin ess
ru n n in g d ay to d ay (p ro fits are o n ly o n p a p e r until the
m o n ey a ctu ally com es in). Second ly, th ere are m an y
so p h istica te d te ch n iq u e s that a cco u n ta n ts can u s e to
m an ip u late profit, w h ereas cash is real m oney. It's cash that
p ay s the bills, n o t profits.
T h ere are m an y reaso n s w h y co m p a n ie s ca n h av e a
p ro b lem w ith cash flow , e v e n if the b u sin ess is d o in g w ell.
A m o n g st them are:
U n e x p e cte d late p ay m e n ts, and n o n -p a y m e n ts (bad
d eb ts).
U n fo reseen costs: a larger than e x p e cte d tax bill, a strik e,
etc.
A n u n e x p e cted d rop in d em an d .
In v estin g to o m u ch in fixed assets.
S o lu tio n s m ig h t in clu d e:
C red it con tro l: ch a sin g o v erd u e acco u n ts.
S to ck con tro l: k e e p in g low levels o f slo ck , m in im izin g
w o rk -in -p ro g re ss, d e liv e rin g to c u sto m e rs m o re quickly.
E x p e n d itu re con trol: d elay in g sp e n d in g o n cap ital
eq u ip m en t.
A sales p ro m o tio n to g e n era te cash quickly.
U sin g an o u tsid e co m p a n y to reco v e r a d e b t (called
'fa c to rin g ').
 ACCOUNTING AND FINANCIAL STATEMENTS

C F O C C h ie f FinAnciAl O ffic e r " )

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is on Che. & o A rd. 3 S en io r
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VAriAnCe A nAlySiS: COmpArinij plAnned

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SAme in d u s t r y W decisions S

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h ttp://w 3.arep ort.C Q m w w w .se c.g o v/in ve sto r/p u b s/b eg fin stm tg u id e.h tm w w vv.q u ick m b a.co m /a cco u n tin g 39
Accounting and financial statements
S tu d y the sim p lified fin an cial state m e n ts fo r an im a g in a ry retail store. A ll fig u res are in 6 0 0 0 s . T h e
co n v en tio n in a cco u n tin g is that a n e g ativ e figu re is sh o w n by a b racket. To u n d e rsta n d the figures,
w ork from the right:
the rig h t-h an d co lu m n sh o w s to tals for each m ajo r categ o ry
• the cen tral co lu m n sh o w s in fo rm a tio n that is u sed in p ro d u cin g the fig u res to the righ t
the le ft-h an d co lu m n sh o w s d etails o f the ca lcu la tio n s in the cen tral colu m n .

V ocabulary in fin an cial s ta te m e n ts is su rp risin g ly n o n -stan d ard , w ith m an y c o m p a n ie s u sin g a m ixtu re

o f U S and E u ro p e an term s. S ee th e rig h t-h an d co lu m n fo r altern ativ es, m o re d etail, etc.

Profit and Loss A ccount (Incom e Statem ent) For the Year Ended D ecem ber 31, 20XX

Revenues ‘Revenue’ (= income / turnover / sales / the top

G ross sales 640 line)
Le ss: Sales returns 6
‘Cost of goods sold' (= direct costs) includes
L e ss: Sale s discounts 4
manufacturing costs, salaries of manual (= blue-
(10) collar) workers etc.
Net sale s 630
C o s t o f g o o d s s o ld ‘Operating expenses’ (= Indirect costs /
overhead) include salaries of sales and office staff,
Purchases 290
marketing costs, utility bills etc.
Salaries of manual workers 30
Transport costs 30 ’Non-operating income1 includes profits from
Cost of goods sold (350) investments in other companies.
G ross profit 280 “EBITD A’ stands for Earnings Before Interest, Tax,
O pera tin g e x p e n s e s Depreciation and Amortization.
Selling expenses ‘Earnings' (= profit / the bottom line)
Salaries for sale s staff 82
Advertising 18 ‘Depreciation’ and ‘Amortization’ are very similar,
Total selling exp enses 100 and are often used in the same way. However,
General expenses 'depreciation' can refer to the loss in value of a
Salaries for administrative staff 52 tangible asset (eg a vehicle), and 'amortization' to
Insurance 6 the loss in value of an intangible asset (eg the
Rent 18 purchase of a licence or trademark). 1Iris loss over
Light, heat and power 10 time is treated as a cost and written off (=
Office supplies 2 subtracted from the profit) over several years.
M iscellaneous 2
‘Interest’ refers to money paid to the bank for
Total general e xp en ses 90
loans (or received from the bank for cash
Total operating e xp enses (190) balances).
Operating profit 90
Non-operating income 5 'Dividends’ is money paid to shareholders.
EBITD A 95
‘Retained profit’ is transferred to the Ba ance
Depreciation (10)
Sheet, where it joins the amounts from previous
EB IT 85
years.
Interest paid on bank loans (6)
Net income before taxes 79
L e ss: Income tax (19)
Net income (or loss) after taxes 60
Dividends (13)
Retained profit €47

40
 9 ACCOUNTING AND FINANCIAL STATEMENTS

Balance Sheet, D ecem ber 31, 20XX

A SSETS ‘Accounts receivable’ is the amount owed to the

C urrent a s s e ts business by customers (= creditors).
C ash at bank 15 ’Inventory’ is the value of raw materials & stock.
A ccounts receivable 200 ‘Current a sse ts’ may also include ‘marketable securities'
Inventory 180 (= shares intended for disposal within one year).
Total current asse ts 395
‘Fixtures’ are part of a building that cannot be moved,
Fixed a s s e ts such as lights.
Building and improvements 300
‘Fixed a sse ts’ may also include long-term financial
Le ss: accum ulated depreciation (90) investments.
210
‘Intangible a sse ts’ include patents, trademarks &
Equipment and vehicles 120
‘goodwill’ (reputation, contacts and expertise of
Le ss: accum ulated depreciation (80)
companies that have been bought).
40
Furniture and fixtures 20
Le ss: accum ulated depreciation (8)
12
Total fixed asse ts 262

Intangible a s s e ts
Total intangible asse ts 20
Total asse ts 677

L IA B ILIT IES AND EQ U ITY ‘Bank debt’ (= loan capital) also includes any overdraft (=
temporary negative balance).
Current liabilities
Bank debt 20 ‘Accounts payable’ is the money owed to suppliers.
A ccounts payable 30 ‘Accrued’ items are those where an expense has been
A ccrued taxes 22 incurred, but the money is not yet paid. ‘Accrued salaries’
A ccrued salaries 45 typically includes future bonuses.
Total current liabilities 117 Another item, ‘provisions’, can appear under current
Long-term liabilities liabilities. These are amounts set aside for anticipated
one-time payments that are not part of regular operations
Mortgage 100
- perhaps a lawsuit, or a compensation package for
Bonds payable (due Mar 2018) 20
employees being laid off.
Total long-term liabilities 120
Total liabilities 237 A ‘mortgage’ is a long-term bank loan to buy a property.
With bonds, the ‘principal’ (= amount raised by issuing
S h a re h o ld ers' equity
the bonds) is repayable to the bond holders at ‘maturity’.
Share capital (3 00,000 shares @ €1) 300
Retained profit 140 ‘Share capital’ ( = common stock, AmE) is amount raised
Total o w ners’ equity 440 at initial flotation on the stock market.
Total liabilities & equity 677 ‘Retained profit’ (= Reserves / Retained earnings). The
figure showing here is more than the €47,000 transferred
from the income statement because it is an amount
accumulated over several years.

41
 Accounting and financial statements: Exercises

9.1 Fill in the m issing letters. 9.3 Put these w ords into three groups, so that all the
1 On a balance sheet, 'assets' are w hat you ow and w ords in a group have a sim ilar m eaning: costs,
liabilities' are w hat you ow . earnings, exp en ditu re, exp en ses, incom e, profit,
revenu e, sales, spending, turnover.
2 The loss in value of a tangible asset over time is called
'd n'. This loss is 'w en o ' in the
9 .4 Put the w ords into the correct column.
accounts over several years. The loss in value of an
intangible asset is railed 'am . n'. accounts payable cost o f goods sold ledger
3 The term 'debtor' is now often replaced with 'accounts shareholders' equity EBITDA trio! balance invoices
rec 1° Similarly, 'creditor' is often replaced with operating expenses current assets
'accounts p . le'.
4 The total value of raw materials + work-in-progress + Preparation of Profit and loss Balance sheet
unsold stock is called 'in _ _ . y'. accounts account
5 Expenses that have been incurred but are not yet paid are
called 'acc_ d expenses'.
6 The extent to which a firm relies on debt financing rather
■than &quity financing is called its 'lev age'

9.2 Underline the correct w ord s from those in italics.

| 'ho terms 'direct costs' and variable costs' are close

I synonyms. They both refer to things like raw materials
costs unci the w ages of manual (= blue collar) workers. But:
■ to emphasize costs which increase in proportion to any
rise in output, say 'direct c o sts / variable c o sts
to emphasize costs which can be icentifieu with one
particular product, say 'direct c o sts / variable co sts
Similarly, (he terms Mixed costs', 'indirect co sts' arid
operating co sts’ are close synonyms. They all refer to
thing, like advertising, rent and the salaries of office stall
But:
9 .5 Put the solutions for m anaging cash flo w 1-6 into
the correct category below .
1 just-in-time manufacturing
2 making payments to suppliers in instalments (= part
payments)
3 leasing fixed assets rather than buying them
4 offering a discount for early settlement (= complete
payment) of a bill
5 improving sales forecasting so that the warehouse holds
less inventory
6 cancelling the office Christmas party

• to em phasize costs which stay the sam e at all levels of Credit control:
output in the short term, say 3fixed c o sts / operating Stock control:
co sts Expenditure control:
• to em phasize costs which result from the whole business
9 .6 Put the sources of n ew funds 1-6 into the correct
(rent, utilities, etc), not any particular products, say
category below.
‘'indirect c o sts / operating costs. A synonym here is
1 Issuing new shares
'overhead1 (UrE overheads),
2 Issuing new bonds (note that only large companies Jo this)
to em phasize co sts resulting from me day-to-day
3 Trade credit (asking suppliers if you can pay them later)
activities of the business (products and processes), say
4 Reinvested earnings
5fixed c o sts / operating costs.
5 Sale ot assets (eg a building, or a part of a company
There arc many other types of ‘costs' referred to in finance 6 Ban), loan or bank overdraft (= temporary negative
and accounting Two of the most important are: balance)
°capital expenditure / capitalism expenditure the costs Debt financing (money raised has to be paid back to outside
ol buying or upgrading physical assets like buildings creditors):
and m achinery, often referred to in business as capex' Equity financing (money raised comes direct'y or indirectly
• 7mark-up c o sts / marginal c o sts - the co sts of increasing from the owners of the business, w ho hope to have it paid
output by one more unit. back in the form of more profits):

42
 9 ACCOUNTING AND FINANCIAL STATEMENTS

9.7 Match topics 1-5 w ith th e conversation extracts N ow divide the w o rd s in each box into three groups,
a)-e) below . based on their m eaning.
1 cost centers
budgeted. escalating, unexpected,
2 profit centers
estimated. increasing, unforeseen costs
3 variance analysis
likely rising
4 standard versus marginal costing □
5 valuing assets costs
a) 'How are w e going to show the depreciation of our new
machinery in the accounts? W e could w rite it off in a
profits
straight line over six years, but w e're losing most of the
vaiue in the early years. I think w e should do it on a
percentage basis, say 2 5 % every year, so that the book figure
value is more realistic.'
b) 'We allocated a budget of €2 0 0 ,0 0 0 for R&D last quarter,
but there seems to be an overspend of € 2 5,0 00. I need to the figures
find out what's going on.'
c) 'I'd like to see earnings broken down according to our
major product lines.' 9 .9 Match th e definitions 1-4 w ith the exam ples of
d) 'All our marketing activities are shown under one budget financial ratios a)-f) below .
heading. In the future I'd like to see separate figures for 1 Liquidity ratios: these measure ability to turn assets into
the different areas of marketing so that w e can have more cash to pay short-term debts.
control of spending.' 2 Profitability ratios: these measure ability to generate
e) 'Should w e accept this order? The profit margins are low. profits. □ □ □
But, on the other hand, the machines will be running 3 Leverage (Debt) ratios: these measure the degree to which
anyway, there isn't much extra labour required, and other- a company relies on borrowed funds. □
variable costs are low. So it's probably worth it.'
4 Activity ratios: these measure the effectiveness of the use
of resources from an operational point of view.
9.8 Study the collocations below . Check a n y unknow n
w ords in a dictionary. a) D ebt to o w n ers' equity = Total liabilities / Total owners'
equity
budgeted, escalating, estimated, increasing,
costs b) Net p rofit margin = Net income before taxes / Met sales
•key, rising, unexpected, unforeseen
c) Working capital = Current assets / Current liabilities
bring down, calculate, cut, figure out, lower,
costs d) Return on equity = Net income after tax / Total owners'
meet, pay, reduce, work out
equity
bring in, earn, generate, jeopardize, make,
profits e) Inventory turnover = Cost of goods sold / Average
plough back, put at risk, reinvest
inventory (mid point between inventory at beginning and
accurate, approximate, ballpark, deceptive,
figure ending of accounting period)
dubious, exact, misleading, precise, rough, round
f) Earnings p e r share = Net income after taxes / Number of
announce, check, cook, doctor, examine, falsity,
shares issued
go over, go through, issue, manipulate, massage, the figures
publish, release, study

1 To some people, finance is a dry and technical area of
business. In fact, it's fascinating.
J A gree U Disagree
2 When an auditor looks at an income statem ent they will
be particularly interested in ... because ...
3 When an auditor looks at a balance sheet they will be
particularly interested in ... because ...
4 Here's w hat I know about a famous financial scandal that
w as in the news ...

43
 J Financial markets

O u r favourite ho ldin g p e rio d is forever.

W arren Ed w ard B uffett (1930-), A m erican stock investor, bu sin essm an and p h ilanthrop ist

Securities g o v e rn m e n t b o n d s in clu d e the G e rm a n bun d. T h e s e are all

T h e term 's e c u ritie s ' refers to stocks, b o n d s and m o n ey
m ark e t in stru m en ts. T h e se are e x p lain e d in tu rn below .
In d iv id u al in v e sto rs and fin a n cia l in stitu tio n s can b u y
stocks (= eq u ities) o f c o m p a n ie s listed o n a sto ck exch an g e .
T h e term 's h a re s ' in clu d e s b o th sto ck s and p riv a te ly held
stak es in sm all firm s th at are n ot p u b licly trad ed . A 'b a s k e t'
o f stock s can be p ick ed by a fu n d m a n a g e r and p u t
to g eth er into a m u tu al fund (U K : u n it tru st). F u n d s m ay
in v est in p a rticu la r cou n trie s, o r d iffe re n t secto rs o f the
m arket, or m ay 'fra c k ' (= e x a c tly fo llo w ) a p a rticu la r index.
Each fund w ill h av e an in v e stm e n t o b jectiv e, n o rm ally
eith er re g u lar in co m e (fro m sh are d iv id e n d s), o r lo n g -term
cap ital g ro w th (fro m an in crease in th e sh are p rice), o r a
b alan ce b e tw e e n the tw o.
S to ck s are b o u g h t and sold on a sto ck e x ch a n g e (= b o u rse).
S o m etim es this is a p h y sical lo catio n , like the N ew Vork
S to ck E xch an g e o n W all Street. O th e r lim e s there is no
location: the N A S D A Q is an e le ctro n ic exch an g e . A sm all
selected gro u p o f sto ck s can b e b ro u g h t to g e th e r to m ak e
an ind ex. F o r ex a m p le, the D o w Jo n e s p u b lish in g
o rg an izatio n c o m p ile s 'th e D o w ' (an in d ex o f 30 large
com p an ies), and S tan d ard and P o o r 's - a cre d it ratin g s
ag en cy - c o m p ile s d o z en s o f d iffe re n t in d ices based o n
co m p an y size o r m ark e t sector.
W hy d o stock s g o up and d o w n in p rice? W h e n is a stock
w o rth b u y in g ? Fin an cial a n a ly sts do research on this, u sin g
Ihree maim tools:
• A n aly sis o f in d iv id u a l co m p a n ie s: th e ir m ark e t p o sition
and p erform an ce.
■e A n aly sis o f the n atio n al and glob al econom y.
T ech nical an aly sis: u sin g ch arts an d in te rn a l m ark e t
statistics (eg v o lu m e and m o m e n tu m ) to id e n tify futu re
trend s and tu rn in g points.
The b on d m ark et is ab o u t ten tim es b ig g er than th e sto ck
m arket. If a g o v e rn m e n t o r large co m p a n y w an ts to b o rro w
a large su m o f m oney, it issu e s a b o n d and re ce iv e s the
m o n ey as a lo an from the in stitu tio n o r in d iv id u al w h o
b u y s it (= the b o n d h o ld e r). T h e o rig in a l a m o u n t (= the
p rin cip al) is then p aid b a c k o v er a fixed p erio d o f tim e (=
the m a tu rity / th e term o f the loan). A nd o f co u rse the
b o n d h o ld e r also re ce iv e s in te re st (= the cou p o n ). J lie bond
m ark et is en tirely electro n ic and d o es n o t h a v e an y p h y sical
exchang es.
U S g o v e rn m e n t b o n d s in clu d e the 30 y e a r T -bond (=
treasury bon d ) and the 10 y e a r T -note, w h ile E u ro p ean
co n sid ered to be lo w -risk . C o rp o ra te b o n d s h a v e tw o
g rad es, d ep en d in g o n the risk, ie the cred it ratin g o f the
com pany. S a fe r co rp o ra te b o n d s are called 'in v e stm e n t
g ra d e ', w h ile h ig h -risk b o n d s (th e co m p a n y m ig h t go
b a n k ru p t o r d efa u lt on its re p a y m e n ts) are called 'h ig h -
yield b o n d s' o r 'ju n k b o n d s'.
B o n d s can be trad ed o n the o p e n m a rk e t - they d o n 't have
to be held by the o rig in al b u y e r un til m atu rity. In
particu lar, th e ir p rice g o e s up and d o w n o v er the term of
the lo an a cco rd in g to:
In flation (the in te re st rep aid on a b on d is fix e d o v er its
term , so risin g in fla tio n w ill red u ce the b o n d 's final
v alu e).
C u rren cy m o v e m e n ts (b o n d s are issu ed and th en repaid
in o n e p a rtic u la r cu rren cy - th eir v alu e ch an g es as that
cu rren cy flu ctu ates).
A third ty p e o f m ark et, u sed b y in v esto rs w ith sp a re cash
av ailab le for a sh o rt tim e p erio d only (u n d e r a year), is
called the m o n e y m ark et. In v esto rs can b u y T -b ills fro m the
U S g o v e rn m e n t, 'c e rtific a te s o f d ep o sit' fro m a bank, or
'c o m m e rcia l p a p e r' from a com pany. T h e s e are ail s h o rt­
term lo a n s th at p ay interest.
Other markets
T h e foreign e x ch a n g e (= fo re x / cu rre n cy ) m a rk e t is b ig g er
than all the s ecu ritie s m ark e ts com b in e d (aro u n d $2 trillio n
a d ay). H ere, d ealers b u y and sell cu rren cy p airs su ch as
E U R / U S D (= e u ro a g a in st the d o llar). P la y e rs inclu d e:
C o m m e rcia l b an k s (re p re se n tin g b o th th e m se lv e s and
clie n t com p an ies).
C en tral b a n k s (re p re se n tin g g o v e rn m e n ts try in g to
m ain tain stab ility o f their o w n cu rren cy ).
P en sio n fu n d s, etc.
T h e re is a h u g e a m o u n t o f sp e cu la tio n in this m arket. If a
c u rren cy flu ctu ate s in valu e, there are all so rts o f
im p lica tio n s for: b u y in g o r sellin g foreign e q u ities and
b o n d s; in te rn a tio n a l trad e; in fla tio n (b ecau se o f p ay m e n ts
fo r im p o rted g o o d s), etc. A lo t o f d ea lin g is d o n e to protect
ag a in st (= h ed g e ) su ch risk s.
Finally, there are the co m m o d ity m a rk e ts. H ere, d ealers
trad e the fu tu re p rice o f su ch th in g s as:
E n erg y : cru d e oil, n atu ral gas, etc.
M e tals: gold , silver, cop per, steel, etc.
S o ft co m m o d itie s: coffee, sugar, g ra in s (eg corn, w heat,
soy b e an s), liv e sto ck (eg cattle, hog s), etc.

44 F u r t h e r in f o r m a t io n www.investopedia.com (> Dictionary and Tutorials) http://moneyterms.co.uk www.finpipe.com/equity

 10 FINANCIAL M ARKETS

Tyt>e.£ o-f ifkve^'tor

FVivA-ta (Avai-tori
FiAAACiAl iAi-bi-blA-bioAi:
I AVail>AaA-h bAAlti,
\ paAilOA -flAAdi, MlA-tUAl -f^Adi,
iAiwrAAca coM^AAiai, aAdowMeA-ti

FiA*d£ ■fcfiA't h old VAriow^,

CA.re.fiAlly £e.le.ctad £-fcocK*

"Tyfiai oF FtAAdi:
coWA-try -fiAAc), o r ia c t o r FiAAd,
o r -fwAc) bAiad oa coMpAAy i n a C a^ . a
^ApAAaia ^MAllar CoMpAAiei FlAAd
a<^wi-ty o r boAd C a ^ . a UK. corporA-ta boAd -fiAAdd,
i^ a c iA liii. F la A d i C a .< j. b io - t a c liA o lo ^ y ,

AA"twra I ra io u rc a i,
raAl ai-tA-ta, trAClear, a-he')

www.investorguide.com/university.cgivvww.investorwords.com (> By Subject) www.morningstar.com (> Learn/Stocks Curriculum)

 Financial markets: Exercises

10.1 W rite these w ord s in the spaces below : bonds, 10.5 Match the nam es o f the different stock indices to
equities, m on ey m arket instrum ents, securities, shares, th eir descriptions.
stocks. Note th at three w ords are near synonym s.
CAC DmX Dow FTSE Nasdaq S&P
The general term 1 _ refers to
_ (or or 1 index of 500 large US companies
2 index of 4,000 US companies, many of them in the
technology area, and some quite small _________
3 index of 30 large, well-established US companies, chosen
10.2 Fill in the m issing letters.
by the editors of the Wall Street Journal
1 Instead of investing in the shares of just one company, you
4 index of 30 large German companies
can invest in a m I fund which holds a basket of
5 index of 40 large French companies
stocks.
6 index of 100 large UK companies
2 Regular income'catr'be provided by the cji. ds of
shares that you own. 10.6 Rank these financial instrum ents according to
3 The issuer of a bond pays back the original amount (= the their probable risk: from 1 (low risk, low return, low
pr .. _ al) to the bondholder over a iixed period of volatility) to 4 (high risk, high potential return, high
time (= the t rn of the loan). volatility).
4 The most traded bond in the world is the 30-year US a) an investment-grade corporate bond
government T-bond. The letter T stands for b) a UK government bond
hr yh
c) a fund investing in small biotech companies
10.3 M ake collocations using an item from each box. d) shares in an individual company listed on the Daw (eg
Then use the collocations to com plete the sentences General Electric)
below.
10.7 Choose w hich of these investm ent objectives is
capita/ fixed junk rink tracker m ost suitable for the investors described below :
incom e, g ro w th , incom e + grow th .
bond fu n d growth management rate 1 a highly-paid young professional, w ithout a family, who
1 A fund that exactly follows the movement of an index is w ants lo save long-term for a pension
called a _ tracker ___ 2 a newly retired person w ho wants to supplement their
7 A fund can provide regular income or pension .
3 someone in their fifties who has just received money from
3 A bond is a financial instrument where a borrower raises an inheritance - they w ant to save for their pension, but
capilal and then repays the loan at a also w ant help paying for their children's university fees
of interest over a fixed term.
4 A high-risk corporate bond can be called a 10 .8 Match these financial institutions w ith their
descriptions below : en d o w m en t, insurance company,
5 'Hedging' is a term associated w i t h ______________ in vestm en t bank, m utual fund, p en sio n fund.
It means having a second position in a
1 used by large companies to issue bonds, buy and sell
market, so that if the market moves against your first
currencies, manage their portfol o of shares in other
position your losses are minimized,
companies, and advise on any potential merger or
acquisition
10.4 Divide each se t of w ord s in italics into tw o ,
according to th eir m eaning. 2 used to save money during your worki ig ife and then
have an income during retirement
1 a ben nning / bear / bull / depressed / falling / risirig /
strong / weak market 3 used by private investors to hold a basket of stocks

2 to acquire / buy / have / hold / ow n / purchase shares

4 used to protect yourself against risks (money is paid out if
something bad happens)
5 used to generate an income for non-commercial purposes,
in particular to run a university or provide tor charity (the
'Bill and Melinda Gates Foundation' has one!

46
 10 FINANCIAL MARKETS

10.9 Financial an alysts use the term s in the box w hen 1 0 .1 2 Investors and traders m ake m uch use of
trying to value a com pany and its share price. Match 'technical analysis'. W rite th ese term s next to their
each term to its definition below . definitions: breadth, leadership, liquidity, m om entum ,
resistance, support, trading channel, volum e.
barriers to entry capital requirements ease o f substitution
1 a price level which has stopped an advance on previous
market penetration price elasticity
occasions
1 how sensitive a company's sales are to changes in the price 2 a price level which has stopped a decline on previous
of its products ____ occasions .
2 how much money is needed to run this type of business 3 the total number of shares traded in a m arket on a
particular day
3 w hether other companies could offer a similar product 4 the number of individual stocks participating in the
movement of an index
4 how much market share a company has, and w hether it 5 the strength of a trend, as measured by speed and length
has strong products in different segments of the market of time
6 tw o parallel lines drawn on a chart that contain all price
5 difficulties that other companies would face if they tried to movements over a time period
compete _ 7 the kind of companies that are moving the market:
technology companies or utility companies? large cap or
10.1 0 The term s in the box are indicators of a
small cap7
company's perform ance and are listed in financial
publications. M atch each one to its definition below . 8 w hether there is new money available to invest in the
market
earnings growth p/e ratio dividend yield
market capitalization return on equity 10 .1 3 Com plete this text abo u t th e foreign exchange
m arket using the w ord s in th e box.
1 share price multiplied by total number of issued shares
buyer seller Bank Reserve exports imports rises raises
2 earnings per share, compounded over several years
II international transactions in goods and services
3 how much profit is generated in relation to the money have to be paid for and the usually
shareholders have invested pays in the currency of the 2 . So, thete will
4 current share price com pared to its earnings per share be a high demand for a country’s currency if:
a) ihere is a trade surplus (ie the country 1
5 the annual dividends per share divided by the share price more than it 4 ) - b ecause foreigners
need the currency to make their payments

10.11 W hich term s from th e box in exercise 10.10 are b) foreigners are buying a lot of that country’s equities and
probably being referred to in th ese com m ents: bonds - they need the currency to make their
purchases.
1 'the company is the biggest in its industry'
Increased demand for the currency for either reason will
2 'compared to its competitors, the shares are cheap'
make it rise in value.
3 'it's a real growth stock - revenues are up year on year'
But over the short term the main factor affecting the
4 'it's not a growth stock, but you'll get a steady income
forex market is interest-rate differentials. As the central
from the shares'
bank of a country s rates, the dem and for
5 'it's a profitable company'
its currency . Why? Simply because
currency traders are looking for somewhere to park their
cash. II the US Federal 7 is paying 4% and
the European Central 7 2%, then cash will
D iscussion to pics
earn more interest held in the US as dollars.
1 Financial advice is garbage. If anyone knew how to beat
the market they'd be sitting on a beach drinking pina
coladas - not trying to sell stocks to other people. 3 Over the next one year / five years (choose one) the dollar
A gree Disagree is going to rise / fall (choose one) against the euro / yen /
2 Why invest in the stock m arket7 W hat goes up must come other (choose one) because ...

down. Spend the money today and enjoy it while you can. 4 If I could invest in just one individual stock (or one national
A gree O Disagree stock market) it would be ... because ...

47
 Hum an resources

By w o rk in g fa ith fu lly e ig h t h ours a d a y y o u m ay eve n tu a lly g et to be boss a n d w ork tw elve

h ours a day.
Robert Lee Frost (1874 -1963), A m erican poet

Human resource management (HRM) Recruitment and selection

Up to a few d eca d e s ago, the term 'h u m a n reso u rce s' did S tep s in the p rocess fo r h irin g e m p lo y e e s are:
not exist. R e cru itm e n t, c o m p e n sa tio n and train in g w as
Id e n tify jo b req u ire m e n ts, p e rh a p s by d raw in g up a 'jo b
d on e by in d iv id u al d ep a rtm e n ts, an d there w ou ld b e a
d e s c rip tio n ' and th e n a 'p e rs o n s p e cific a tio n '.
sm all 'p e rso n n el d ep a rtm e n t' th at w as re sp o n sib le for
C h o o se the sou rces o f can d id ate s: p ro m o tion from
clerical jo b s su ch as k e e p in g staff reco rd s and p ro cessin g
w ith in , re fe rrals fro m e x istin g e m p lo y e e s, classified ad s
the pay roll. T h is s itu a tio n has ch an g ed d ram atically , m ain ly
(A m E w a n t ad s), o n lin e recru itm e n t, recru itm en t
b e c a m e jo b s n o w a d a y s in v o lv e h ig h e r lev els o f k n o w le d g e
a g en cies, e x e c u tiv e search ( : h e a d h u n tin g ), jo b fairs,
and skill, and q u alified la b o u r is in s h o rt supply.
w alk -in s, etc.
Increasingly, the m o d e rn co m p a n y sees its h u m an cap ital -
its e m p lo y ees - as o n e of its m o st im p o rtan t assets, and 3 R ev iew a p p lica tio n s and C V s (A m E resu m es). This

m ost large c o m p a n ie s to d ay h a v e an H R strategy. B u t it is in itial s cre e n in g p ro cess is called 'lo n g listin g '.

still o fte n tru e th at H R M is se e n as h a v in g lo w er statu s In terv iew a n u m b e r of ca n d id a te s o n the lon glist.

titan o th er areas o f m an ag em en t. 5 C o n d u ct e m p lo y m e n t tests and ch e ck referen ces.

6 D ecid e o n a 's h o rtlis t' o f stro n g ca n d id a te s and hold

Determining staffing needs
fo llo w -u p in terv iew s.
The key area o f H R is staffin g (= m a n p o w e r p lan n in g ).
1 S e le c t a ca n d id a te and n e g o tia te the p ackag e:
T h ere are m an y issu es to c o n sid er w h e n try in g to find
c o m p e n sa tio n and b e n e fits, jo b p e rfo rm a n ce
qu alified can d id ates:
e x p e cta tio n s, etc.
T h e ch o ice b e tw e e n in te rn a l re cru itm e n t (less exp e n siv e
The selection process can be com p lex and m istakes expen sive
re cru itm e n t p ro cess, b o o sts m o rale ) and extern al
(for higher level m an agers there m ay be a w hole relocation
re cru itm e n t (b rin g s n ew ideas and sk ills, w id er
package to negotiate). The com pany n eed s the best person,
selection ).
both in term s of skills and o f fitting in w ith the com pany
L eg al issu es su ch as e q u a l o p p o rtu n itie s (no
culture. So to avoid m ak in g a m istake HR m akes use of:
d iscrim in a tio n on the g ro u n d s o f gen der, race, age,
disability, etc). 'j A sse ssm e n t cen tres w h ere g ro u p s o f p e o p le d o role
F in d in g the rig h t b a la n c e b e tw e e n p e rm a n e n t, fu ll-tim e p lay s, tak e p sy ch o lo g ica l tests etc. T h is is c o m m o n for
em p lo y e e s (w h o p ro v id e c o n tin u ity o f k n o w le d g e and y o u n g e r ca n d id a te s w ith o u t a tra ck record.
co m p an y cu ltu re, as w ell as stab ility for fam ilies in the C h eck s o n a c a n d id a te 's b ack g ro u n d .
lo cal co m m u n ity ) and o th er e m p lo y e e s h ired on a m ore ' T rial (= p ro b a tio n a ry ) p e rio d s b e fo re a p erm an en t
flex ib le basis. co n tra c t is o ffered.

A m o n g st the flex ib le sta ffin g o p tio n s are:

. l ’a rl-tim e sta ff o n p e rm a n e n t con tracts. T h is o p tio n can
in clu d e 'jo b sh a rin g ' - o fte n o f in te re st to a p aren t w ith a
y o u n g child .
• S taff on te m p o rary co n tracts, p erh ap s leased from an
o u tsid e ag e n cy (eg secretaries, hotel and caterin g staff,
stu d en ts w o rk in g th ro u g h co lleg e, etc). T h e se p eo p le
'te m p ' and are 'te m p s ' (v erb and nou n).
P ro fessio n al freelan cers (so m e tim e s called 'c o n s u lta n ts')
b ro u g h t in for m d iv id u al p ro jects. O fte n th ese jo b s
rep lace on es th at w ere p rev io u sly d o n e 'in -h o u se ' by
p erm an en t staff.
Compensation and benefits
Your basic com pensation is your 'salary ' (w hite-collar staff) or
'w ag e' (blue-collar staff, and used for paym ent on an hourly
or piecew ork basis). A dd itional financial incen tiv es include:
P erfo rm a n ce -re la ted bo n u ses.
C o m m issio n (for staff in the sa le s area).
• P ro fit sh arin g .
• S to ck o p tio n s (= the ch an ce to b u y c o m p a n y sh ares in
the fu tu re at a fixed p rice).
• P ay rise s for a d d itio n a l sk ills and q u alificatio n s.
E m p lo y ees can also receiv e a w h o le ran ge o f o th er b en efits
(= frin g e b e n e fits/ p e rk s) su ch as: sick -le av e and h o lid ay
pay, retirem en t (= p en sion ) plans, h ealth in su ran ce, child
care and eld er care, training , co m p an y car, lap to p , m o bile
d ev ice, su b sid ized can teen , the ch an ce to trav el, etc.

-lb F u r t h e r in f o r m a t io n wvvw.opm.gov/lmr/glossary www.managementhelp.org (> Human Resources Mgmnt etc)

 11 HUMAN RESOURCES

Determining stAffinrj needs

Conduct Io ca I ne<^otiAtionS
with trAde unions Selection process involving
Ensure t h A t Agreements Are interpreted Advertising, CV s, interviewing, etc
And implemented correctly Monitoring the rAt e o-f StAff
DeAl with individwAl ^rievAnceS, diSciplinAry turnover, And conducting 'exit
issues, Absenteeism, etc interviews' to see why people leAve

M o n i t o r 'heAlth And SAfety' iSSueS

M o n ito r ArrAndementS for joint

conSultAtion - AreAS where
workers pArticipAte in deciSion-mAkin^

HUMAN
RE.SOURCE.S
CompenSAtion And benefits:
bASic SaIaty or wA^e, perhApS
rising by increments over time;
AdditionAl fin A n ciA l incentives;
fringe b e n e fits

M o tiv A t io n th ro u g h jo b
S A tiS fA C tio n - See u n it 4

In it iA l o r ie n t A t io n
f o r new employees

A im S
T o id e n t if y t A le n t And help t o Ali^n
ind ividuA l ijoAlS w it h CompAny rjoAlS
0 * - - t h e .- jo b -tr<kiM»^ T o <^et direct suggestions for
Apprenticeship pro^rAmS improving w o r k procedures

CoAchin^ And mentoring T o p ro vid e An in p u t in t o decisio ns

A b o u t p ro m o tio n , e tc
U nd erstu d y / A SSiStA nt p o sitio n s
Cworkin^ closely w ith t h e boss
And perhApS doin^ Some o f t h e i r
jo b s - aISo CAlled ' shedowin^
3 o b rotAtion
A±A^es in per-fbouAnce. A pprAiSA l
I. E s tA b lis h p e rfo rm A n ce StAndArds

2. EvAluAte performAnce Coften AnnuAlly")

Q £ f - - t t a .- jo b -trA inin ^ 3 . Discuss results w it h eAch em ployee, ^ivimj

c o rre c t iv e feedbACk And ASkin^ for Suggestio ns
Cl ASS r o o m instruction
C omputer-bASed trA in in ^ C- e-leArnin^"> 4■ Use th e r e s u lt s t o mAke decisions A bo u t
p ro m o tio n s, CompenSAtion, A d d itio n A l t rA in in d ,
M A n A ^ e m e n t trAinin<^ through longer,
jo b t r A n s f e r s , e tc
Sponsored courses Such a s MB>As

vvvirw.hr-guide.com vwwv.hrmguide.co.uk (> HR Topics) www.accei-team.comwww.businessballs.com (> performance appraisals)

 Human resources: Exercises

11.1 Fill in the missing letters. 4 The w o r d refers to all the people who
1 A list of all employees and how much each one earns is work in an organization; the word can
called the 'p_ _ II'. have exactly the same meaning, but it can also refer just to
2 'Equal opportunities' means making sure that everyone has non-managerial workers.
the same chance to get a job or get promoted One of the 5 If you receive a fixed percentage of every sale you make,
most common forms of 'disc ation' (= treating a you get a ;ifyou (or your team or your
certain type of person unfairly) is on the grounds of company) performs well, then at the end of the year you
'dis„ . ty' (= a physical problem that makes someone might get a _____________
unable to use a part of their body properly). 6 Your . . is the period of your life after you
3 Freelancers are often brought in to do jobs that were stop working (eg after 65); y o u r _______________________ is the
previously done 'i_-h ' (by employees of the money you receive during this time (from the government,
company). your company, or a private plan).

4 The activity of discretely approaching employees of one

1 1 .4 Match the w o rd s in the box to their definitions
company and asking them if they w ant to w ork for
below . Clue: if the w ord appears in a definition, it
another is called 'h jn g '.
w on 't be the answ er.
5 A small group of job candidates w ho have gone through
to the final interview stage is called th e 's . I. -ability aptitude background competence
experience knowledge qualification skill
6 Somebody's work history, and in particular their successes
and failures, is called their 'tr_ _k r. d'. 1 something you are capable of doing; also the quality of
7 The formal process by which an employee's performance is doing something well ability_______
measured and discussed by a supervisor is called the 2 (formal) the ability to do something w ell; also (formal) the
'a al process'. legal power that a body has to deal w ith something

11.2 Put the HR activities 1-6 into the most

3 an ability to do something well, especially because you
appropriate category below.
have practiced it .
1 apprenticeship programs
4 knowledge and skill you get from being in different
2 dealing with disciplinary issues
situations; also something that happens to you
3 identifying talent and rewarding performance
4 health and safety
5 an exam you have passed, especially at school or
5 coaching and mentoring programs
university; often appears in the plural as a heading on a
6 getting suggestions for improving procedures
CV
Appraisal process: j_ J j 6 the type of education, experience and family that you
Training and development: M I have; also information about the past that helps you
Worker-management relations: □ □ understand the p re se n t______________________
7 the facts, skills and understanding you have gained
11.3 Complete each explanation w ith a pair o f w ords
through learning or e xp e rie n c e ______________________
from the box. The w o rd s m ay not be in the right order.
8 a natural ability to do something well or to learn it quickly
bonus / commission candidate t applicant coaching / mentoring
employees / staff retirement / pension wage / salary
1 1 .5 Divide the w ords in italics into one of the three
1 A is paid monthly, but a
groups below .
_ is paid hourly, or by piecework.
2 A/An. is one of the people being be appointed be dismissed bo employed be fired
be headhunted be hired be Iski-Gff be let go
actively considered for a job, whereas a / an
be made redundant (BrE) be recruited be sacked be taken on
has sent a completed form and CV but
is not necessarily being considered. Group A: get a job
3 . is where an employee is 'paired' with a be employed ________________________________________ ______
more experienced employee w ho supervises and guides
them (and it can take place over a long time period);
■Vs .: B: lose a job - you do something wrong
_____________________ is a more limited term, and is where be dismissed_____________________________________
someone is trained under active supervision to use a piece
Group C: lose a job - for economic reasons
of equipment or carry out a particular process.
b e laid o ff______________________________ _______
50
 1 HUMAN RESOURCES

11.6 W rite one of th ese w o rd s in each space: ability, 1 1 .7 Com plete the text abo u t w o rk er-m an ag e m e n t
experience, k n o w led g e, qualification, skills. relations w ith the w o rd s in the box.

a formal arbitration boycotts collective bargaining

a recognized court injunction individual grievance layoffs
have in something
a specialist legally binding length o f service mediation
a professional official dispute picketing strikes
considerable
first-hand he process by which management and unions form
have
hands-on of / in
gain an agreement is called ’ ___________
practical something
get Typical issues for discussion are w ages, benefits and
valuable
wide working conditions. HR and the union may also sometimes
discuss an 2 , where someone
a detailed
an encyclopedic thinks they have been treated unfairly. And of course
first-hand negotiations will be necessary if the company is in financial
have of something
inside difficulties and has to make 3____
a thorough Workers who lose their jobs get a 'severance p ackag e’
a working (B rE redundancy package), usually based on their
communication 4 in the company.
have interpersonal In any dispute, the em ployees’ side will initially be
develop marketable
led by a union rep (= representative) - a worker who
transferable
represents the interests of their colleagues on a daily
a great
basis. Then, if the conflict escalates and becom es an
have a remarkable to do
, there might be involvement
show an outstanding
something of a full-time union official. The union side has various
a proven
tactics it can use, including 6
Continue. W rite one of these w o rd s in each space: (people stop working), 7
aptitude, background, com p eten ce, experience, (persuading others not to work by standing at the factory
kn ow led g e. gates) and 8 (getting
6 These matters fall outside (or come within) the consum ers to stop buying the company's products).
of this committee. The management side will usually be led by someone
7 This candidate has a strong in inside the HR department. Management tactics include
marketing. hiring replacement workers, and in extreme circum stances
8 She has a lack of (or a wealth o f ) _______________________ in obtaining a 9 which directs
marketing. workers to do (or not do) particular activities.
9 I did some research to fill in the gaps in my The procedure for resolving conflict goes through various
stages. First, managers and workers will hold direct talks
10 He's got a real for maths (AmE math) to try to resolve the problem. If these talks fail, then
and accounting. It's in his genes! there may be involvement of a third party who can make
suggestions and try to find a compromise. This is called
’10 Finally, if talks break down,
the whole process goes to 11_____________ .__________________
This is where a judge (or perhaps a government-
D iscussion topics appointed official) m akes a decision which is

1 People think that HR requires low-status 'soft' skills. But it's 12 on both sides.
HR managers who appraise, negotiate compensation, fire
people and deal with the unions. That's not 'soft'.
Agree Disagree 3 Performance-related pay is a horrible invention that
creates enormous stress and insecurity in the workplace.
2 Shortlisting and interviewing should be the responsibility of
HR. Other people (from the functional department A gree Disagree
involved) should only have a minimal input. This ensures 4 Most training programmes are a waste of time. You just
fairness and equal opportunities. put the handouts in a file and forget about them.
Agree Disagree A gree Disagree
 Information and communication technology
Web users ultim ately w a n t to g e t at data quickly a n d easily. They d o n 't care as m uch a b o u t
attractive sites a n d p re tty design
Sir Tim B erners-Lee (1955-) British in ven to r of th e W orld W ide W eb
Management issues
T h e b asic issu es in in fo rm a tio n tech n o lo g y (IT)
m a n a g e m e n t are:
a) in creasin g the stability of the system to red uce d o w n -tim e
b) en su rin g th at in fo rm a tio n is secu re and b a c k e d -u p (use
o f e n cry p tio n , fire w a lls to k e e p o u t h ack ers, v iru ses,
sp y w are, etc)
B eyond that, the fo llo w in g m ay be im p o rtan t issu es at
d ifferen t tim es:
Tension b e tw e e n the IT d ep a rtm e n t and o th er b u sin ess
units, blow are b u sin e ss req u ire m e n ts tran slated in to an
1 T solu tio n ? H o w is the efficien cy o f IT sp e n d in g
m easu red ? D o the b u sin ess p eo p le u n d e rsta n d the
tech n o log y ?
S h o u ld the so ftw are b e a co m m e rcial o ff-th e -sh e lf
(C O T S) p ack ag e or a tailo r-m ad e so lu tio n ? If the latter,
then w h at d eg ree o f cu sto m iz a tio n is n e e d ed ?
Hov. w e ll d o es the n ew IT in te g rate w ith the o ld (=
legacy) sy stem s?
H o w goo d is the d o cu m e n ta tio n ? Is tra in in g n e ce ssary ?
W h at level o f in te g ra tio n is a p p ro p riate ? S h o u ld the
o rg an izatio n use ju s t o n e stan d ard o f so ftw are (eg
S A P /O racle) an d / o r h ard w are (eg IB M / H P )?
Trends
P re d ictin g the futu re of in fo rm a tio n and c o m m u n ica tio n
tech n o log y (IC T ) is n o to rio u sly d ifficu lt, b u t sev eral trend s
ap p ear to be h a p p en in g :
C o m p u tin g p o w e r is m o v in g aw ay fro m the lo cal PC to
th e n e tw o rk (d eliv ered w h ere and w h e n it is n eed ed ).
_ S o ftw are is also m o v in g to the n e tw o rk : c o m p a n ie s are
leasin g it o n lin e for a m o n th ly fee in stead o f b u y in g it.
W ireless c o n n e ctiv ity is b e co m in g p o ssib le b etw een
m o re and m ore d ev ices.
B an d w id th is in creasin g .
P rocessin g p o w e r and sto ra g e cap acity k eep in creasin g ,
w h ile p rices k eep g o in g d ow n.
O p e n -so u rce p latfo rm s (d esig n ed and im p ro v ed by
u sers, o w n ed b y n o -o n e) are b e co m in g m o re co m m o n .
P ro fitab ility is b e co m in g an issu e for v e n d o rs as IT
b e co m e s w id e sp re a d and stan d ard ize d .
In te g ra tin g and m a n a g in g IT sy stem s is b e co m in g m o re
im p o rtan t tha n sel 11n g n ew p ro d u cts.
B a ck -o ffice fu n ctio n s (eg p ay ro ll) and so ftw are
d e v e lo p m e n t are b e in g o u tso u rce d to lo w -co st co u n tries.
w w w .w e b o p e d ia .co m w w w .in fo w o rld .co m w w w .cio .co m w w w .itm w e b .co m w w w .D rin t.co m
T here is the d ev elo p m en t of an 'In te rn e t o f tiling s' -
p erv asiv e com p u tin g - w here ev eryd ay objects have
em bed ded p rocessing p o w er w ith a con n ectio n to the Net.
:■ T h e re is a co n v erg e n ce b e tw e e n trad itio n ally sep a ra te
m ed ia.
E-business
A b u sin e ss w ith no o n lin e p resen ce is a 'b ric k s -a n d -m o rta r'
o rg a n iz a tio n . A t the o p p o site e x tre m e , a few 'v irtu a l'
b u sin e sse s e x ist o n ly o n lin e. B u t m o st b u sin e sse s are
'c lic k s -a n d -m o rta r' - they h av e so m e part o f th e ir b u sin e ss
o n th e w eb, b u t also p h y sical p rem ises.
T h e p h rase 'e -c o m m e rc e ' refers to the p art o f e-b u sin ess
re late d to b u y in g and sellin g . R e taile rs set up an electro n ic
sto refro n t (B rE sh o p fro n t) and sh o p p e rs p lace item s they
w an t to buy in an e le c tro n ic cart (B rE trolley ). W h en the
sh o p p e r is ready, th ey go to the ' c h e c k o u t w h e re their
p a y m e n t is p ro cessed .
Tor cu sto m e rs, key issu e s inclu d e:
■■ F rau d (th e sa fety o f o n lin e p a y m e n t sy stem s).
M e rch a n d ise d eliv ery and retu rn s.
: T h e d ifficu lty o f sp e a k in g d irectly to a c u sto m e r serv ices
re p rese n ta tiv e ra th e r th a n g e ttin g an au to m ated
resp o n se.
F o r co m p an ie s, k e y issu es in clu d e:
T h e p ro te ctio n o f in te lle ctu a l p ro p erty (p iracy).
: W ebsite costs and m ain te n an ce .
M e a su rin g the e ffe ctiv en e ss o f the w e b site (click -th ro u g h
rates for ad s, traffic cou n ts, c o n v ersio n rates to sh o w
p e rce n ta g e o f v isito rs w h o m ak e a p u rch ase).
In term s o f th e te ch n o lo g y in v o lv ed , e -co m m e rce is a good
e x a m p le o f the ro le o f d ed ica te d (reserv ed for a sp ecific
u se) servers:
A d a ta b a se serv e r sto res cu sto m e r d ata and p ro d u ct
in fo rm a tio n in tables.
A n a p p lica tio n serv e r is re sp o n sib le for ca lcu la tio n s and
p ro g ram logic; it re trie v es d ata from the d a ta b a se serv er
and feed s it to th e w eb server.
A w eb serv e r is re sp o n sib le fo r the in te rface and
g rap h ics; it p resen ts the w eb p ag e to the user.
A b ro w ser o n the u s e r 's co m p u te r a llo w s the cu stom e r
to in te ract w ith the c o m p a n y 's w eb server.
 12 INFORMATION AND COMMUNICATION TECHNOLOGY

I. R a w operutioAAl d A tA is k e p t iA
TrAASActioA processiA^: coAStAAt wpdutiAij
d A tu b A S eS , S aIcS iufo, iAV£Atory
o-f m iSSioA-criticAl dAtA Swcb AS orders,
iA-fo, custoMer ir+'o
iAVoiceS, pAymAAtS, pAyrollS, iAVeAtory, etc
2.All "tbe. d u t Abuses Ard docuMeAtS
M urkatiA d: C R M (customer
froM Across tbe or^A AirutioA Are
relutioASnip MAAAijCMeAt’)
collected together iA a 'dAtA wArebowse
FV'odwctioA / OperAtioAS: M R P (m uter iul
ra^uirem eAts p i a a Ai a ^ " ) , C lM (computer 3. U-foriwAtioA from tbe dAtA
wurehouse is retrieved bv 'm aa A^eMe At
iAteiji'Ated MAAufucturi A<p
iA-forMAtioA System' CM ILb softw ure
FiAAACe: f i AAACi aI p lA A A IA ^ AAd bwdi^etiA^ wsia^ 'dutAmi a ia ^ M IL Softw ure
Supports deciSioA mukiAd, id eu tifies
H w m a a resources-. puyroll
pAtter'rS a Ad tre u d s, etc
a Ad employees' re .c o rd f
F R P (au te rp rise resource plAAAiAdT.
MAAA^es All stupes iA tbe Supply chuiA

LAM (locul AreA AAtworkb Allows

siA^le-user workstutioAS to sbAre
dAtA, e.t] iASide A COMpAAy buildiAij

WAN (wide AreA A etw o rO : A

^eo^rApbicAlly dispersed LAM
Ir t r A A e t Cc o m p A A y A e tw o rk b

P x t rA re t CpArt o f lA trA A et witb

imforaaahon lim ited Access fo r c a r t u i A people
outside tbe compAAy")
TFCHNOLOqy \\a o ° C o llA b o r A t io A
tb A t A llo w
t o o ls
users
C - ijr o u p w A r e ' )
A t d if f e r e A t
w o r k S t A t io A S to w o rk o a tb e
SAw e p r o je c t ( S c ra e A s b A n < v j,
w e b c o A f e r e a c iAi j , e t c ')

Telework i a ^ Cemptoyee c a a work A t

boMe, froM a customer s premises,
TechA D lcw jy from A botel, from tbe beAcb-)
Wireless LAM provides service
w ith iA a bo tSp o t
C ,P L (^lobul poSitioAiA^ SyStem^
t o d e te rm iA e lo C A tio A o f device

B lu e to o th t o eAAble sh o rt-ru A ^ a
.coAAectio betweeA w ireless devices FlectroAic exchAAde': a mArketpUce
fo r a specific i A d u S t r y
L u p p ly c b A iA m A A A ^ em ep t

P x trA A e t to work more

closely witb suppliers a Ad pArtAers

A f^ liC A tio i^ S

PlersoAAl services CcoAteAt lAclwdia^ Aews Ard

eAtertAiAm eAt is A^^re^Ated iA a Mobile portAO
OuliAe MArketiA^
M-commerce ( ’ mobile-commerce"): s b o p p i A^j AAd
V ir t u A l S to re w it b o a Iia £ t r U A S u c t io A
pAymeAts from your pboAe, persoA-to-persoA
pAymeAtS, Adver tiSia<^ bASed o a your l o C A t i o A processiAij AAd electroAic fuuds tru u sfe r
O a I iAe customer service
IAtrAbwSiAeSS (Support fo r mobile workers, jo b
diSpAtcb, Access to iA trA A et fo r SAles S t u f f M a j o r ureAS iuclude fiaaa ciaI services,
to ^et customer / product i a F o , etc") reservAtioAS fo r tru v a l AAd holiduyS,
SAle o f reAl a s tu te , etc

www.forbes.com/businesstechwww.techweb.com/encyclopediahttp://whatis.techtarget.com www.tutor2u.net (> Revision Notes/ict)

 Information and communication technology: Exercises

12.1 Fill in the missing letters. 3 needs

1 Old IT systems (hardware or software) which are still in use 4 find something that is stored in order to use it again
are called 'I_____ cy systems'.
2 The written instructions for using IT software / hardware 5 make possible; often used as a past participle (an Internet-
are called 'doc______________ ion'. .ed device is one that can use the Internet)
3 A piece of equipment intended for a particular purpose is 6 ask someone to pay an amount of money for a service
called a 'de______ e'. The word usually suggests something
portable and electronic. 7 taking information from a network and putting it onto
4 The rate at which data can pass through a communication your own computer (or other device)
channel is called its 'ba th'. 8 put together
5 A type of hardware and / or software on which application 9 a website that gives access to a wide range of services
programs run is called a 'pi rm'. such as news and information, email, online shopping,
6 If a chip or wireless device is incorporated physically into links to other s ite s _____________
an object it is described as being 'em . _ dded'.
1 2 .4 Com plete the text w ith the w ords in the box.
7 A software application used to locate and display web
pages is called a 'b r _ _ e r '. encryption firewall Intranet LAN
8 In knowledge management, a key function is the 'data servers stand-alone PC WAN workstations
wa ouse' - the place where all the company's data is
collected together.
t used to be common to see a sitting
12.2 Com plete the sentences using the pairs of w ords on a desk. No more. Now, individual
in the box. inside a company are connected via a 3
(= data communication system inside a building) to the
accessibility / intranet aggregate / portal enable / devices
com pany’s 4 (= high-capacity
ensure / secure measure / efficiency retrieve / trends
stability / downtime translate / solution computers that store data and manage all the network
resources). Large, multi-site organizations (eg a national
1 Perhaps the most important task for an IT manager is to health service) will require a 5 (=
increase the . of the system to reduce computer network that covers a large geographical area).
How is all the internal company information a cce sse d
2 IT managers also have t o ___________________that information by users? Easily, via an 6 This is an
is and backed-up. internal network that acts just like a website, but is
3 It can be difficult to business requirements acce ssib le only with a password and is protected by a
into an IT . Further levels of security are provided
4 It can also be difficult to the by 8 (= transforming data into a code to
of IT spending. protect its confidentiality) and, for large organizations,
5 Managers across the company use 'datamining' to housing the servers inside a bunker to provide physical
data from the data warehouse, and turn
security in case of fire, etc.
it into useful information by identifying patterns and

12.5 M ake collocations by m atching a w ord from each

6 An extranet provides outsiders with various levels of
column.
to the company's own
1 off-the-shelf capacity
7 Bluetooth is a w ay to short-range
2 wireless connectivity
connection between wireless
3 processing functions
8 Mobile phone companies charge for downloading content
4 storage package
which t h e y ___________________ on their o w n ____________________
5 back-office page
12.3 Look at the com pleted sentences in exercise 12.2 6 intellectual power
and find a w ord that m eans: 7 click-through property
8 web rate
1 make certain that something happens
2 copied (in case the original is lost)

>1
 12 INFORMATION AND COMMUNICATION TECHNOLOGY

1 2 . 6 Use the w o rd s in the box to m ake pairs of

ER P has its origins in manufacturing, where it is used to
collocations w ith a sim ilar m eaning.
manage all the stages in the com pany’s internal supply
application customized defective -desi§e- chain. So, using sales data the software can forecast
d c v e b p-environment faulty the latest demand, order materials, schedule production, project
old fashioned out-of-date package platform financial results, etc.
provide run supplier supply tailor-made
But to this basic package it is possible to add many
up-to-date use vendor
further modules. For exam ple, to include the upstream end
Verb + noun collocation of the supply chain (= suppliers of components and raw
1 to d esig n / d e v e lo p software materials) the company can add a procurement module.
2 to /. _ . software And to include the downstream end of the chain (=
3 to . /. software custom ers) there is a customer relations management
Noun + noun collocation module (CRM ).
4 software ap p lica tio n / CRM - which other vendors sell as a stand-alone
5 s o ftw a re _________________________ / package - includes:

6 software / for sales staff: contact management, quote management,

customer preferences and buying habits, etc.
A djective + noun collocation
7 o ld -fa sh io n e d / __________________________ software for customer services staff: order fulfilment, complaints,
returns, etc.
8 / software
9 / . software By keeping all the information on individual custom ers in

10____________________________ / _________________________ _ software
12 U nderline the correct (or best) w ords.
1 W e have IBM machines running / running on SAP.
2 We have SAP running / running on IBM machines.
3 All your so ftw a re / so ftw a res can run on our servers.
4 Sometimes w e have to write a / som e special software.
5 W e need a more powerful and effective system. It needs
to be updated / upgraded.
6 We need the latest version of the system. It needs to be
updated / upgraded.
1 The database updates / upgrades automatically when new
information is entered.
12.8 Read the text about ERP then an sw er the
auestions below .
mall com panies tend to use separate off-the-shelf
software p ack ag e s to do sp e cific tasks, such as
preparing accounts. But larger com panies need a solution
that provides software on a modular b asis - with the
possibility of customization - and then integrates all the
parts. This solution is called ER P (enterprise resource
planning), and the main vendors are SAP and Oracle.
one place, a company aims (i) to make cost savings
through efficiency and (ii) to present a unified face to the
customer, regardless of the communication channel that
they use.
Another common E R P application is a management
information system (M IS). This is a decision-making tool that
allows m anagers to extract useful knowledge (specific
details, key indicators, trends) and present it as graphs,
reports, alerts, forecasts, etc.
Find a w ord from the text th at m eans:
1 available in a standard form , not designed for a particular
customer
2 personalization
3 predict (word #1)
4 predict (word #2)
5 the combined activities of sourcing (= finding w hat you
w ant) + purchasing (= buying it)
6 able to be used on its own (ie w ithout buying other
components)
7 the price that a supplier says they will charge
8 delivering goods in the w ay that is promised and expected
9 on-screen warnings

D iscussion to p ics |
1 Business people don't understand IT, and IT people don't 3 In five years' time, the biggest change in our lives from ICT
understand business. will be ...
Agree Disagree
4 Teleworking is the w ay to go. W ho needs an office when
2 E-commerce is a wonderful thing ... until you w ant to everyone is networked?
speak to anyone about anything. Agree Disagree
 Trends, graphs and figures

Trends In any text d esc rib in g tren d s th e re w ill he v erbs and

Read the text and then study the bullet points below . n o u n s o f m o v e m e n t. E x a m p le s in th is text are fall, bottom
out, be fla t, increase, etc.
11400
11300 • T h e m in d m ap o p p o site lists v erbs o f m o v em en t. N o te
11200 th at w o rd s d e sc rib in g the sam e ty p e o f m o v e m e n t are
1110(1 o fte n u se d in d iffe re n t co n texts. F o r e x a m p le, sh are
11000
10900 p rices 'ra lly ' w h e reas p ro fits o r e co n o m ie s 'g ro w '. U se a
101500 go o d d ic tio n a ry to c h e ck o n p o in ts o f u s a g e su ch as this.
10700 N o te the u se o f v e rb tenses in the text: reached, w ere
10800
10500 risin g, h a d clim bed, has risen , etc. T h e re is a su m m ary of
10400 v erb fo rm s and u ses in the m ind m a p o p p o site.
10300 A text d e sc rib in g tren d s w ill in clu d e m an y e x am p les o f
10200

10100
lin k in g w ord s. (See un its 2 0 -2 2 .) E x a m p le s h e re are even
10000 though, due to, as a resu lt o f a n d as (m e a n in g 'b e c a u se ').

Transitive and intransitive verbs

W h e n u sing v erbs o f m o v e m e n t it is im p o rta n t to kn ow
T he c h a rt sh o w s th e US s to c k m arket (D°w Jo n e s
w h e th e r they are:
in d ex ) for la st y e a r and th e first q u a r te r of th is year.
As can be seen from the ch a rt, la st y e a r s ta rte d on a • T ran sitiv e - n e e d in g an o b je ct - sh o w n in the d ictio n ary
p o sitiv e n o te. T h e m arket ro se until la te F e b ru a ry w hen w ith a 'T '.
it a lm o st reach e d th e 11,000 level. B ut in te re st ra te s In tra n sitiv e - used w ith o u t a n o b je ct - sh o w n in the
w ere rising, and in v e sto rs d ecid e d to tak e p ro fits. d ictio n ary w ith an T .
T here was a sharp fall d uring th e m o n th of M arch and So the fo llo w in g v e rb s are transit! v e and n eed an o b je ct (the
th e Dow bottom ed out at just o v er 10,000. At th at point bu dget):
in v e s to rs s ta r te d b u y in g ag ain - s tro n g e c o n o m ic W e cu t I low ered / raised / redu ced the bu dget.
nu m bers and .global liqu id ity (c e n tra l ban k s printing
B u t th ese e x a m p le s are w ro n g (n o o b ject):
m on ey ) o ffered s u p p o rt to t h e m ark et. O v er th e su m m er
T he bu d g et cu t / low ered /- raised h'etlu ced-
th e Dow was flat, trad in g in a range from 10,300 to
The fo llo w in g v e rb s are in tra n sitiv e an d are used w ith o u t
10,700. T h e m arket w as u n ab le to b reak out of th is
an o b je c t
range, even though c o m p a n y p ro fits w ere increasing.
C osts w ent dow n I f e l l / declin ed / rose.
W hat w as th e re a so n ? It w as alm o st e n tire ly due to th e
p rice of oil, w hich had clim bed d ram atically from $42 a But th ese e x am p les are w ro n g (th ere is an o bject):
b arrel at th e s ta r t of th e y e a r to $ 6 8 in A ugust. T h is p rice We w ent d-ow n f f e l l / -declin ed / rose costs.
rise was caused by th e h u rrica n e s e a s o n in th e Gulf of M an y v e rb s like in crease and d ecrease can be u se d bo th w ith
M exico and increasing tension in th e M iddle E ast. and w ith o u t objects.
In m id -O c to b e r th e m a r k e ts s ta r te d to rally
strongly, and w ent from 10,200 to 10,900 o v e r ju st four Adjectives and adverbs of movement
w eeks. T h is sudden jum p w as as a result of co m m e n ts In the text, so m e n o u n s are q u a lifie d w ith a d je ctiv e s (sharp,
m ad e b y a m e m b e r o f th e F e d e ra l R e s e r v e , w ho su d d en ) and so m e v e rb s w ith a d v e rb s (dram atically,
in d icated th a t in te re st ra te s would s o o n s to p rising. sign ifican tly).
T h is is p o sitiv e fo r b u s in e ss as th e c o s t o f borrow in g
A d je ctiv e s u sed to d escrib e m o v e m e n t in clu d e: slow , slight,
a lso s to p s going up, From N ov em ber to Ja n u a ry the
grad u al, steady, quick, rapid, sig n ifican t, sharp, su bstan tial,
m arket rem ained m ore o r less unchanged, failing to
dram atic.
b reak thro u gh th e F e b ru a ry highs.
O ver th e la st few m o n th s th e m ark et has advanced A d v e rb s a re fo rm ed b y a d d in g -ly to the ad je ctiv e , and
a g ain . The e c o n o m ic b a c k d ro p re m a in s h e a lth y : so m e tim e s one o r tw o o th e r letters ch a n g e a s w ell.
c o m p a n y profits a re go od , c o n su m e r sp en d in g is up,
and in te re st ra te s a re c lo s e to reach in g a peak. T h e
o nly d ark clo u d is th e p ric e of oil, w hich has risen b ack
to th e $70 level and look s c e rta in to go up further. T h e
next h u rrica n e s e a s o n is ap p ro a c h in g and p ro d u ctio n
w orldw ide c a n n o t b e significantly expanded.
 TRENDS, GRAPHS AND FIGURES

Upw Ard: qo up, (AcreASe, r is e , rA iS e , p u t up C,rAph, c h A r t , b a r c t a r t ,

C* rA iS e -), cliM b, pick, up, ^row, expAivd, double, pie chA rt, tA b le , diAijrA M
show a a upwArd t r e x d
T itle , r o w / c o lu M A ( w it h he./\dir>.^6'),
R A p id upw A rd: ju m p , r o c k e t , S o A r, tA k e o f f boriz.oAta.1 Axis CUbeted w ith MOAths-)
vertical a x is CshowiAd t h e v a Iu cs -for
DowAMArd: tjo down, d ecreA Se, f a l l, drop,
Slip bACk, re d u ce , lo w e r, b riA ij dowA (~ lo w e r-),
C u rv e , Solid liAe, d o tted liAe, d A shed liAe,
c u t , s h riA k , hAlve, show a doWAWArd tre A d
se-jMeet, shAded A r e A , slope CSteep o r sh A llo w -)
R-Apid doWAWArd: pluM M et, CollApSe, crA sh, S lu M p
A s ca a be See a fro»« th e c h A rt,
Hiqhs A Ad lowS: peAk, reAch a peAk; ^ The ^rAph / M y A e x t slid e shows ...,
b o tto M out, h it A low \ Lo o k i a ^ a o w A t th e -figures -for
V o lA t ilit y : flu c t U A t e , be v o U t ile the th ird q u A rte r we c a a see ...

i t A b i l i t y : S tA y t h e SAm C, be f ) A t ,
be C re lA tiv e ly -) uxchAA^ed; level o f f / o u t

Qood a Ad bAd: iM prove C- ^ et b e t t e r -),

stre A ^ th e A , re c o v e r, bouece bACk;
d e t e r io r A t e C- q e t w o rs e -) , weAkeA

^ lAdle poiA tS: be Above / below, StAAd A t

, J» tA te S : be Up / dowA

TRENM, q r a ph ^
—^ AND
Action p r o q r t if
ia

PV-eseAt: SAles A re r i S ia ^
nquREs
Stro A ^ ly A t th e MOMeAt

P A S t ; SAles w e re r i S ia ^
More S tro A ^ ly lA S t yCA r

J A ^ reAt deAl More th A A , wAy o v e r \

<IoMewhAt M ore th A A , well over

3 u s t o ver, S lig h tly More thAA

FroM th e preSeAt t o th e pASt:
SAles hAve r is e a by th is yeA r
FroM th e pASt t o e A rlie r ia th e pASt:
SAles hAd ris e A t o a hi^h le vel, b u t iA 2 0 0 6
l t h e M A rk e t beqAA t o chAM e
A ro U A d , A b o u t, ro u g h ly, SoMewhere
\
i a th e re^ioA o f , A pproxiM A tely
AlM oSt, A e A rly , A o t q u ite , j u s t s h o r t o f
FAr less thAA, Aowhere AeAr,
i Aothi aa like AS Much AS ,

Lo o k .ib A C k . A X A A A C tlO A i a p ro ^ re sf

A ctio A iA progress up t o a poiAt iA th e pASt:

SAles hAd beeA r is i a^ StroAdly, b u t theA Aew ^ee UAits 20-22
coM petitors extered the M Arket
A ctioA iA progress up t o th e preSeAt:
SAles hAve beeA r iS i a^ I a a II our Major MArkets

57
© Trends, graphs and figures: Exercises

13.1 Match each phrase on the left w ith its closest 4 We can 'raise / lower' prices or 'put up / bring down'
synonym (sam e m eaning) on the right. prices. However, the first two exam ples / last two examples
1 drop by 50% a) deteriorate are slightly more formal, and can refer to a change in the
2 rise by 100% b) recover level or standard of something as well as prices.
3 get better c) double
13.5 Put a tick ( / ) if the sentence is possible. Put a
4 get worse d) raise
cross (/) if it is not. The a n sw ers depend on w hether
5 bounce back e) expand
the verb is transitive, intransitive or both.
6 grow f) lower
7 put up g) halve 1 We cut costs by 5 % . □
8 bring down h) improve 2 We fell costs by 5 % . □
3 Profits cut by 5 % . □
13.2 Match each verb on the left w ith its closest
4 Profits fell by 5 % . □
antonym (opposite m eaning) on the right.
5 We raised prices by 2 % . □
1 rise a) plummet
6 We rose prices by 2 % . □
2 raise b) be flat
7 Inflation raised by 2 % . □
3 take off c) bottom out
4 expand d) fall 8 Inflation rose by 2 % . □
5 fluctuate e) lower 9 W e increased sales by 4 % . □
6 peak f) shrink 10 Sales increased by 4 % . □
11 We w ent up market share by 3 % . □
13.3 Com plete each sentence w ith a phrasal verb from
12 Market share w ent up by 3 % . □
the box.
1 3 .6 The -ing form of m any verbs can be used as an
bounce back bottom out bring down level off
pick up put up slip back take off adjective, eg an increasing d em a nd fo r oil. Make
adjectives from the verbs in the box using the
1 If your prices are too high, you have to inform ation in brackets.
them
expand grow rise shrink- soar
2 If your prices are too low, you have to
t h e m __________________ 1 shrinking budget (decreasing in size)
3 If sales reach their lowest level, t h e y ___ 2 an _ business (increasing in size)
4 If sales recover after a period of downward movement, 3 a . problem (increasing over a long
t h e y ______________________ period)
5 If sales go up a little after being flat for some time, they 4 inflation (increasing)
5 costs (reaching a very high level)
6 If sales go up a lot after being flat for some time, they
1 3 .7 Fill in the m issing letters in these adverbs using
the inform ation in brackets.
7 If profits were going up - or down - and then become
stable, t h e y ______________________ Sales increased ...

8 If profits go down a little after a period of growth, they 1 ra b M. ly (quickly)

2 gr. Jly (slowly and by small amounts)
3 St ily (in a constant, regular way)
13.4 Underline the correct w ords in italics.
4 sli _1 y (a little)
1 The verbs 'rise' and 'grow' are similar. However, rise / g ro w 5 mar Ily (fractionally)
is more common for longer periods of time, and where
6 siq ly (in a large and noticeable way)
there is a total increase in size (eg describing the
7 sh J y (suddenly and by a large amount)
economy).
8 dr .Ily (suddenly and surprisingly)
2 The phrasal verb 'grow up' refers to the change from
being a child to being an adult. It can also t cannot be Note that 'dram atically' can refer to both good and bad
used to refer to things like profits, the economy. changes (unlike in m any Latin languages).
3 The phrasal verb 'fall down' refers to movement towards
the ground. It can also / cannot be used to refer to things
like sales, profits.

58
 13 TRENDS, GRAPHS AND FIGURES

13.8 Put a tick ( / ) if the sentence m akes sense. Put a 13 .1 2 It is very com m on to use approxim ate figures -
cross (X) if it does not. particularly in speech. Match each approxim ate figure

1 Profits have risen steadily over recent years. a)-p) to an exact figure 1-6 below .

2 Sales plummeted marginally in July. | a) just over 150 i) far less than 150
b) around 150 j) way, w ay over 150
3 The price of oil soared gradually last year.
c) just short of 150 k) nowhere near 150
4 Share prices dropped back slightly last w eek. .
d) roughly 1 50 I) slightly more than 150
5 Unemployment numbers levelled out sharply.
e) not quite 150 m) som ewhat more than 150
13.9 W rite the nouns for these verbs. Som etim es the f) almost 1 50 n) 1 50 give or take a little
form is the sam e. g) some 150 o) somewhere in the region of 150
h) 150 or so p) nothing like as much as 150
1 cut 6 improve
1 deteriorate 7 increase 1 90 □ □ □
3 fall 8 recover 2 146 □ □ □
4 grow 9 reduce . . 3 154 H] □
5 halve 10 rise .
4 190 □
5 240 □
13.1 0 Rew rite th e 'verb + adverb' sentences as 6 140 to 160 □ □ a
'adjective + noun' sentences.
13.13 Fill in the gaps w ith a preposition w h ere
1 Sales fell slightly. necessary (in one case there is no preposition). Choose
There w as a __________ slight fa//_________ _ m sa|es
from: at, b e tw e e n , d o w n , from , in, into, of, on, to, with.
2 Profits rose steadily. 1 Last year sales rose . _______ € 7 m _________ € 7 .5m. So
We saw a ___________________________ in profits, that's an in cre a se €0.5m .
3 The economy improved gradually. 2 Last year there w as an increase sales
There w as a in the economy.
4 W e need to reduce costs sharply. 3 Our market share now s ta n d s ____________ 2 8 % .
We need to see a in costs. 4 One _______ _ _ five (= one out of every five) of our
products never makes a profit.
3 11 Underline the correct w ords.
5 Two million euros w ere spent on television
1 I'd like you to look at the blue segment on this next bar advertising.
chart / pie chart.
6 Unemployment figures have been relatively stable for
2 I'd like to draw your attention to the heading / title at the
some time, fluctuating ________ 4 .3 % and 4 .6 % .
top of each column of this table.
7 There hasn't been much movement _ _ _ the
3 I'm sorry, the heading / title of this next slide is off the
unemployment figures for some time.
screen, but at least you can see the graph.
8 Sales rose _______ .lin e _____ __ predictions.
4 The horizontal axis is m arked with / labeled with the
9 From January 1st to now, sales have gone up by €0.5m .
months of the year.
So that's a y e a r- ___________-date increase of 8 % .
5 Sales growth has been very rapid - as you can see from
10 Over the last twelve months, sales have gone up by
the steep / shallow slope of this graph.
€0.5m . So that's a year- . -year increase of 8 % .
11 In this pie chart, sales are broken by region.
12 In this pie chart, the w hole country is d iv id e d ___________
five regions.
Speakin g / W riting practice
Prepare tw o graphs. They could be about your company Speaking practice 2. Regroup and w ork with a new
(sales, profits, costs, etc) or your country (inflation, partner - you are going to repeat the exercise and explain
unemployment, house prices, etc). You could take graphs the graphs again. This time speak slowly and focus on
from an article on the Internet or in print, in English or in accuracy rather than fluency. Take a moment to review
your own language. Remember to label the tw o axes. pages 56-57 before you begin.
Speaking practice 1. Tell a partner about the graphs. Your Writing practice. W rite a short report based on the two
partner should ask for more information (eg 'I'm sorry, can graphs.
you explain that again?' 'W hat were the reasons for that?').

59
 Presentations - structure and key phrases
Presentation styles
R ead the tw o a ltern a tiv e o p e n in g s for the sam e
p resen tatio n and then stu d y the p o in ts below .
O p en in g 1
(hood m orn ing, ladies and gen tlem en , and thank you
very m uch fo r inviting m e here to sp eak to y o u . Let m e
in trod u ce m y self - m y n am e is C arlos Pinto and [ am the
sales d ire cto r of D ow n tow n P rop erties. M y objective
today is to in trod u ce o u r co m p an y an d sh o w you h ow w e
can help you find the right office for y o u r business. I h av e
d ivid ed m y p resentation into three p arts. F irst I'll tell y o u
a little ab ou t the h isto ry of o u r com p an y, then ['11 show
you som e slid es of office sp ace that w e cu rren tly h av e
available, and finally I'll deal w ith the question of cost.
M y p resentation will take arou n d tw en ty m in u tes, and if
v o u h ave any question s I'll be p leased to an sw er them at
the end. Okay. L et's start bv looking at w h o w e are and
how the company has d evelop ed o v e r the last tw en ty
j ears sh o w s fir s t slide, w hich is a tim elin e o f the h isto ry o f the
company).
O p en in g 2
1 bet y o u 're sick o f looking for office space right? An
you fee lin g like this? (show s slide w ith a cartoon oj a stressed
bitsine sm an in n sm all room ) W ho feels lik e that? (everyon e
lau ghs) W o u ld n 't yo u prefer to feel lik e this? (show s slid e
uhth a cartoon o f a relaxed ex ecu tiv e in a large, m odern o ffs e)
N ow , y o u all k n o w the im p o rta n c e o f lo ca tio n fo r
business su ccess. Well, w e c a n h elp you . W e're ca lle d
D ow n tow n Properties, and w e 'v e b e e n offering rental
solutions in this city for m o re than tw e n ty years. I'd like
to find ou t som eth in g from each o f yo u in tu rn: w h a t is
tire single m ost im p o rtan t reason w h y you w a n t to m o v e
from y o u r c u rre n t offices?
• O p e n in g I is m ore fo rm al, stru ctu red and E u ro p e an -
style. T h ere are m an y typ ical 'k e y p h rase s' for
p resen tatio n s. In fact, the w h o le e x tra c t is based on
stan d ard p h ra se s fo r in tro d u cin g the speaker,
in tro d u cin g th e to p ic, d escrib in g the stru ctu re of the
p resen tatio n , tellin g the a u d ie n ce w h e n th ey can ask
q u estio n s, m o v in g to the first p o in t, etc.
The ad v an tag es o f a p re se n ta tio n in this style are: it is
safe fo r a n o n -n a tiv e sp e ak e r; it re lie s less on p e rso n a lity ;
it g u a ra n te e s th at all im p o rta n t p o in ts w ill b e co v ered ; it
m ak e s the stru ctu re cle ar at the b e g in n in g ; the au d ie n ce
kn ow s' w h e n to ask q u estio n s.
The d isa d v a n ta g e s are: it m ig h t b e b o rin g ; it m ig h t focu s
o n irre le v a n t in fo rm atio n .
* O p e n in g 2 is m o re in form al, sp o n ta n e o u s an d A m erican -
styie. T h e re are n o 'k e y p h rases'.
T h e ad v a n ta g e s o f a p re se n ta tio n in this style are: it is
liv ely; it in v o lv e s the au d ie n ce ; the sp e ak e r can respond
im m e d ia tely to the n e e d s / in te re sts o f the au d ien ce.
' The d isa d v a n ta g e s are: it is risk v fo r a n o n -n a tiv e
sp e ak e r; it relies o n an e x tro v e rt p e rso n a lity ; the sp e ak e r
m ig h t lo se d irectio n or m iss im p o rta n t points.
M o st p eo p le w ill u se a p re se n ta tio n sty le th at is so m e w h e re
b e tw e e n th ese tw o e x tre m e s, and it d ep en d s on m any
th in g s su ch as the s p e a k e r's c o n fid e n ce and p erson ality , the
topic, and the e x p e c ta tio n s o f the a u d ien ce.
1 he m ind m ap o p p o site g iv es h e lp w ith key p h ra se s for
th ose o cc a sio n s w h e n y o u ch o o se to u se them . U nits 15, 18
and 2 0 -2 2 are also v e ry relev an t to the lan g u ag e of
p resen tatio n s.
Presentation structure
A p o ssib le stru ctu re for a p re se n ta tio n is g iv e n below . Use
it as a p la n n in g ch e ck list - yo u d o n 't h av e to fo llo w e v ery
step , b u t at least c o n sid er all the points. T h e first letters
m a k e an e a sy -to -re m e m b e r acro n y m : B o m b e r B.
B an g! - so m e th in g th at y o u say or d o a t Lhe b e g in n in g that
gets the atte n tio n o f the a u d ien ce: a v isu al aid , a story, a
jo k e , a su rp risin g fact, a referen ce to 'h e re and n o w ' (the
a u d ien ce, the p lace, etc).
O p en in g - th a n k in g the o rg a n iz ers for in v itin g y o u , a few
w o rd s ab o u t y o u rself, te llin g th e a u d ie n ce th e to p ic and
stru ctu re o f y o u r p re se n tatio n , m a k in g it d e a r w h e th e r
q u e stio n s sh o u ld be k e p t to the end or not.
M essag e - the m a in p o in ts of y o u r p re se n ta tio n . D ecid e on
ju s t three key p o in ts at the p la n n in g stag e and w rite them
d o w n as three s h o rt sen te n ce s. T h is w ill fo cu s y o u r m in d ,
and m o re than this w ill b e h ard to r the au d ie n ce to
rem em ber. P erh ap s u se th ese th re e sen te n ce s as the fin al
slid e in y o u r p resen tatio n .
B rid g e - m ak e it c le a r to the a u d ie n ce h o w y o u r m essag e
c o n n e cts to th eir n ee d s / in terests.
E xam ples - use p ractical, e a sy -to -u n d e rsta n d e x a m p les to
m ak e y o u r p o in ts clear.
R ecap - sh o rt fo r 're c a p itu la tio n ', a su m m a ry o f y o u r m ain
points.
B an g! - a lin k b a c k to y o u r first B ang! to g iv e a sen se of
closu re.
 PRESENTATIONS - STRUCTURE AND K EY PHRASES

_ lA -tro d w c k io A
Q o o o ^IAC^ lOIV i 0^ O'f m Av I wfilcoMfi. yow 'to ...
f T W t V a very ^ood <^uestioA. For those oF you who doAt kAow Me
I'm ^ la x ) you ASked th A t.
AlreAdy, My AAMe iS ...

C lA ri-ficA "tio A A aaded E>eFore I be^iA, I'd like t o thAAk C^ue">

For i a vi t i a^ Me to SpeAk to you.
Let m c check th A t I uAderstAAd. A re
you A S k iA ^ ...? P w r ^ e AAd ^-trwctwra
Could you be a lit t le More SpeciFic? I'm here todAy to tA lk to you About...
bi-fficw l-t ^wa£-tioA I've divided My tA lk iA to three p A rtS .
Well, i t ' s a very coMjJe* is s u e . WhAt M y tA lk will tA k e AroUAd F o rty m iA u te s.
A re y o u r o w a views ?
F i r s t , I'll look A t ___, theA I'll show you ...
Would AAyoAe like t o CDMMAAt oa th A t? AAd F iA A lly I'll SAy A lit t le About ...
C & e A t r ix ') , CAA y o u h e lp MC to A A S w e r' th A t?
PteASe Feel F re e t o lA t e r r u p t Me
Vow Ia c K i A-forMA't Io a dwriA^ th e tA lk iF you hAve AAy ^ueStioAS
I d o r 't hAve th A t iA p o T M A t io A / I II be hAppy t o AASwer your jS
w it h M e, but I Caa -f iA d o u t. f ^uestioAS A t the eAd.
IF you leAve Me y o u r c o A t A c t d e t A ils I j n\(
A t th e e r d , I'll s e A d i t t o you. II I I
CoA-trol th a tiM ir^ II l\i
O kAy, I thiAk we hAve tiM e / / I
-for o a c lASt ^uestioA f I L
R r * t {>oiA-t
/ O k A y , le t's S tA rt w ith \
the F ir s t p o i A t which is ... '
£ R-ldht, th A t's All I WAAt to SAy
S’ About .... AAy tjuestioAS So F A r?

Ne.w poiA-t^
MoviAr] oa aow t o My A e x t p O I A t ...

PRE-SEMTAT10N.S L e t ' s turA aow to ...

Ra-farri*^ -forward
I II ao iAto thiS iA More detA il ia A momCa t .

^UM M Ar i i i
/ I'll coMe bACk to th is lA te r.

Ra-farri*^ back
.£0 , j u s t beFore I FiA ish, le t Me J Ia the F ir s t pA rt oF My tA lk I MeAtioAed ...
suM M Arize th e m aia p o iA ts a ^a Ia , ...
f Qoin.^ bACk For a MOMeAt to whAt I SAid e A rlie r...
.Lo, to Sum up, I hAve tAlked About three
MAiA AreAS. F ir s t ..., secoAd ... AAd th ird , b i^ re^ ia ^
&eFore <joia ^ oa, I'd ju s t like to SAy a lit t le About ...
C c A c lu d iA /j
IF I caa ju s t digress C* Side-trACk') For a MoweAt, ...
R i< jh t , le t 's s to p th e re . ThA A k you
■£o, ^ettiA^ bACk to My o t i ^ ia a I poiAt, you caa see th A t ...j
ve ry M uch For your A t t e A t io A .

Visual aid *
I a V i L i a ^ < ^ u a *tio a *
I A s you caa see FroM th is Aext Slide, ...
v AAd aow, iF you hAve A A y ^ u e s t io A S , HAve a look A t the diAjjrAM oa the leFt ...
I'll be pleASed to AASw er th e M .
HAAdliAJ iAtarrwp-fcioA#
V T hA t s aa iA terestiA ^ <^uestioA. I'll
cone bACk to th A t A t the eAd
x ^as, thAAk you, I WAS j u s t Comia^ to th A t. J

61
 J Presentations - structure and key phrases: Exercises
14.1 Put the w ord s into the correct order to m ake
phrases used in a presentation.
a) Could please your attention, I have?
_____________ Could I have your attention, please?
b) I'm here at InfoCom new product responsible for
development.
c) For w ho don't know me those of you already, my name is
Nancy Holmes.
d) It's always a pleasure of experienced professionals an
audience to speak to like yourselves. I know a long way
that of you many have travelled to be here.
e) On the company behalf of, to this presentation may I you
welcome.
f) The aim of our new product line is to give some you
information about my talk.
g) Please during the talk feel free me to interrupt if you any
have questions.
h) Okay, I'd like to slide by at this first looking begin. Can see
at the back the people okay?
i) My forty minutes take presentation will around.
j) I've divided into my talk three parts main. First, I'll give you
the different models an overview in of the range. Then I'll
to describe move on each the key benefits of model. And
finally I'll say about prices a little.
62
14.2 Match the phrases from exercise 14.1 to their uses
below.
1 Getting attention _, 6 Purpose
2 Name 1 7 Structure
3 Position 8 Timing
4 Greeting 9 Questions
5 Audience / Place 10 First point
14.3 Speaking practice. Exercise 14.1 gives some
phrases for opening a presentation and exercise 14.2
gives the correct order. M ake your o w n script:
• Write the phrases again, in order. Writing will help you to
memorize the language.
• Use your own name, organization, etc.
• Substitute any other words or phrases to personalize the
introduction for you.
W hen you finish, read it aloud several tim es. As you
speak, think about w h ere and h o w often to pause, and
also w hich syllables have a strong beat.
14.4 Match the more form al phrases in exercise 14.1
w ith the more inform al phrases below.
1 Okay, let's get started. [7]
2 I'm Nancy Holmes.
3 And I'm in charge of product development.
4 Thanks for coming. .
5 It's nice to see so many familiar faces, and I hope you all
found somewhere to park!
6 I'm here today to tell you about our new product line.
7 I'm going to cover three areas: first, the different models
in the range, then key benefits, and finally price.
8 I'll speak for about forty minutes.
9 If you have a question, please feel free to interrupt. □
10 Okay, let's take a look at this first slide. 7 ]
14.5 Speaking practice. Read aloud the version in
exercise 14.4. It is already in the correct order. Again,
use your ow n name.
14.6 Speaking practice. You are going to use the
structure in exercise 14.2 to practise a more
spontaneous opening. Follow th e instructions.
1 Cover all the exercises on this page except exercise 14.2.
2 Give the opening to a presentation:
Use the headings in 14.2 as a guide while you speak.
(Don't worry if you change the sequence a little.)
• Invent any details that you w ant - it is not a memory
exercise.
• Practise several times in a low voice, and then speak
with a strong, clear 'presentation' voice.
 14 PRESENTATIONS - STRUCTURE AND K EY PHRASES

14.7 Each pair of w ord s can be used in one sentence. 1 Okay / start / looking / overview / product line
W rite them in the correct spaces. 2 I'll / back / this later.
3 Right / all / w ant / say / overview. / questions / far?
as / see com e / later digress / little
finish / summarize getting / to going / m om ent 4 So, / moving / like / talk / key benefits / each model.
let / attention moving / talk pleased / answer 5 Going back / moment / w hat / earlier.
right / far start / looking- turn / question 6 If / just digress / moment, / like / say a little /
starr looking background / decision.
1 Okay, let's by at
7 So, / getting back / original point, / can see / is /
an overview of our new product line.
big improvement / old model.
I'll ___ back to this -
8 Finally, / like / turn / question / price.
__ . , that's all I w ant to say about the
9 As / see / the table / this next /, prices / very competitive.
overview. Any questions s o ________ ?
10 So, / just / finish / let / summarize / main / again.
4 So, on, I'd like to
about the key benefits of each model. 11 Right, / stop there. / Thank / much / your attention.

______________________ back for a . to 12 And now, / if / questions, I'll / pleased / them.

w hat I said earlier. • When you finish, compare with the original phrases.
If I can j u s t _______ for a moment, I'd like to
say a ______________ about the background to this 14.9 Match the beginning w ith the end of each phrase.
decision. They are used for dealing w ith questions.
S o ,_________________ back my 1 I'm g la d ------- complex issue.
original point, you can see that this really is a big 2 Leave me your one last question.
improvement on the old model. 3 Could you be ■you asked that.
Finally, I'd like t o _______________________ to the 4 W ell, it's a very contact details and I'l
of price, send it to you.
you can from the 5 W e have time for a little more specific?
table in this next slide, our prices are still very
6 Let me check own views?
competitive.
7 W hat are your the top of my head.
10 So, just before I , let me
8 I don't know that off that I understand.
_______________________ the main points again.
11 Right, 's stop there. Thank you very 1 4 .1 0 M atch the phrases from exercise 14.9 with
much for your uses below.
12 And now, if you have any questions, I'll be a) Reply to a good question m
______________________ t o ________________________ them. b) Clarification needed □ □
14.8 M em ory gam e. Follow these instructions: c) Reply to a difficult question □ □
Take one minute to try to memorize all the phrases in exercise d) You lack information □ □
14,7. Repeat them in your head, or aloud in a low voice. e) Control the timing □
• Cover the whole of 14.7.
Take a piece of paper. Write down the phrases using the hints
1-12 at the top of the next column. (If you are in class, work
with a partner.)

Give a short presentation. Follow these instructions:
1 Decide on a topic. Here are three suggestions:
• You are the Director of Tourism for a city or region in
your country. Give a presentation about w hy people
should come to visit.
• Choose an object that you have with you, or that is in
the room. Give a sales presentation about w hy it is the
best of its kind and w hy everyone should have one.
Choose a topic that is similar to real-life presentations
that you make.
2 Plan your presentation. M ake a fe w very short notes on
the main points. However, do not w rite a full script. You
w ant to look at the audience, not at a piece of paper.
3 Look back briefly at the mind map and the exercises to
review some phrases.
4 Give your presentation. Remember to ask for questions at
the end.
(If you are working in class, your teacher will set a time limit.
If you are working alone, use a colleague / friend / domestic
animal as your audience.)

63
 Presentations - being lively and persuasive

The ancient Greeks A k e y e le m e n t in 'p e rs u a s io n ' is e ffe ctiv e u se o f y o u r voice.

The a n cien t G reek s w ere fa m o u s fo r their love o f arg u in g A b o v e all, this m e a n s u sin g p a u se s fo r e m p h a sis and

and d eb atin g in p u b lic p lace s - p e o p le lik e P la to and d ra m a tic im p act. Try read in g alo u d the a b o v e p re se n tatio n

A ristotle g av e th e b e st p re se n tatio n s o f their day. T h ey again . D o it sev e ral tim es in d iffe re n t w ay s. E x p e rim e n t

th ou gh t that the b e st form of a rg u m en t w as reason, b u t they w ith p au ses, v o lu m e ch an g es, and in to n atio n . E xag g erate

recognized th at b ecau se o f h u m a n w eak n ess tw o fu rth er fo r fun; create a sen se o f d ram a.

tech niqu es w ou ld alw ay s b e used : ap p eal to a p e rso n 's

Other issues in presentations
good ch aracter and ap p eal to the em o tio n s. T h e se three
tech n iqu es to g eth er they called 'rh e to ric ', and n o w a d a y s we In a p re se n ta tio n it is e sse n tia l to tra n sm it self-c o n fid e n c e

use the exp ressio n 'rh e to rica l la n g u a g e ' to refer to lan g u ag e and b u ild tru st. To ach iev e th is, key issu es are:

th at is d elib erately in te n d e d to p e rsu a d e and in flu en ce. ■ G o o d e y e co n tact, L o o k in g d irectly a t the a u d ie n ce is

v ital - it is a lw a y s a m is ta k e to re a d from n o te s, o r hav e
You w ill see a s u m m a ry o f the m o st co m m o n rh eto rical
y o u r b a c k to the au d ien ce.
tech n iq u es in the m ind m a p o p p o site. S o m e w o u ld be
" 'B e in g y o u rs e lf'. This m e a n s u sin g y o u r stre n g th s and
reco g n izab le to the a n c ien t G reek s, o th e rs are m ore
n o t try in g to be s o m e th in g that y o u are n o t. If you are
a sso ciated w ith the la n g u a g e o f a d v e rtisin g o r p u b lic
n o rm ally funny, th e n u se h u m o u r, o th e rw ise d o n 't. You
relatio n s. A ll are u se fu l in b u s in e ss p re se n ta tio n s - they
w a n t y o u r n a tu ra l p ersonality , and y o u r n atu ral in terest
add a bit o f c o lo u r to w h a t w o u ld o th e rw ise be a ra th e r d ry
an d e n th u sia sm fo r the su b ject, to c o m e acro ss to the
and b o rin g talk. B u t u s e th em w ith erne: they cart sou n d
a u d ie n ce . T h is w o n 't h a p p e n if y o u are th in k in g all the
false and m a n ip u la tiv e if u se d too o ften or to o obv iou sly.
tim e a b o u t p re s e n ta tio n trick s an d tech n iq u es.
A persuasive presentation? If y o u b e g in to feel n e rv o u s at an y tim e, the b e st ad v ice is:
B elow is a sh o rt p re s e n ta tio n th at u se s m an y o f the stop , b reath e, sm ile, a n d lo o k aro u n d tire ro o m . O n e slow ,
tech n iq u es o p p o site. H o w m an y o f th em ca n y o u sp ot? d eep b re a th w ill g iv e y o u a se n se o f calm and h elp to lo w er
C h e ck a fte rw a rd s w ith the A n sw e r Key, th en read it aloud , y o u r v o ice and red u ce its sp eed . S m ilin g and lo o k in g
e m p h asizin g the rh eto rical tech n iq u es. aro u n d the ro o m w ill giv e y o u and the a u d ie n ce so m e
h u m a n con tact.
This year m a il!, o u r fiftieth anniversary as a lire insurance A n o th e r u sefu l tech n iq u e - g o o d at an y tim e, n ot ju st w hen
compare- A nd over thost fifty yeai w e’ve seei a l to f y o u are n e rv o u s - is to throw the p re se n ta tio n b a c k to the
seen an ger and joy. We’ve seen bad times and g o o d tim es. Social au d ie n ce . A sk th e m a q u e stio n , o r a s k th e m if drey h av e
ch ange lias been d ram atic. But over that tim e one thing h as been a n y q u e stio n s to a s k you .
constant: o u r co m m itm en t to innovation, quality and value.
Finally, p la n n in g is e v ery th in g . F ail to prep are a n d prep are to
T h at why w e're still h e re , and growing. We understand our
fa il. T h is m ean s:
cu stom ers. We know w hat o u r cu sto m ers w a n t T h y .
• B e c le a r ab o u t the 3 - 5 p o in ts y o u w an t th e a u d ie n ce to
financial security - for now. and for the generations who follow
In these changing tim es, they want a solid future.
g o aw ay w ith.
K n o w y o u r a u d ie n ce (e sp ecia lly th e ir lev el o f
W hat about you? Perhaps you want to build funds to pay hit
b a ck g ro u n d k n o w le d g e ).
your ch ild ren ’s college ed ucation ? We have a plan that s right for
■a P re p are y o u r n o te s (key w o rd s - p erh ap s on n u m b ered
you. Perhaps you want lo provide for y o u r ch ild ren in the event o f
cards).
you having an a ccid en t - o r worse? We have a plan that's right for
T h in k o f w ay s to p resen t the in fo rm a tio n v isu a lly (but
you. Perhaps you w ant to turn your reg u lar savings into a
guar.m tt -d retirem en t in co m e for your golden years? Wi have a
k eep slid es c le a r a n d sim p le).
• G e t to the ro o m e a rly to p ra c tise w ith th e te ch n o lo g y
plan thai's right for you.
an d ch e ck th e seatin g .
Ml th it is for families. But families a re n ’t the only ones to
benefit b o m out products. We also provide business owners with
f ttici.il incentives to offer their employees. With o ur products,
you can give your staff pension plans, health plans, and life
insurant e. T h ose are tin things that really cou nt in a com pensation
pat kage, those are die things that make a worker feel valued. And
we all know: a happy worker is a productive worker.
I e n t oitrage individuals families and business owners to take
time tiwl.tv to i :• tie financial p. ■ o f m ind tom orrow . T hank
you.
 PRESENTATIONS - BEING LIVELY AND PERSUASIVE

E W r t i o e A l lAi^WA^e. You d o h 't exp ect aa A A Sw er

ImA^iaA t h u t your CAr breAkS dowA C a a we reAlly ^et lAVolved ia th is project

oi\ a loAely c o u e try roAd. I t V the. wlneu our re so u rc e s A re So Itw ited ?
middle o-f th e M ah t. O u r CAr recovery
service w ith CJP^ t r u c k ir^ mCaaS Vow ^ iv a t k a A A Sw er y o u r s e lf
th A t we'll be th e re w ithiA Ah hour. Whu t's the so lu tio h ? You caa see
i t ria h t here oa th is Aext Slide.
M e tA p k o r
This proposul is poiAtleSS. It 's like
reurruA^iA^ deckchAif'S o a the TitAAtc. I
Id io M
b o x 't w o rry , t h e r e is li^ht J
A t th e eud o f th e tuAAel. /

A r v e c d o - te &EINQ LIVELY
I t rewihdS Me o f th e tiM e I ... J rs
ANb PER^UA^IVE

&e<^iAAiA^ o f word:
W io ft w u re fo r leisure AAd leurAi a<^ \
stre sse d SyllAble iA Middle o f word:
f Ai\d we caII our shop: PlAAet Or^AAic.
E h d o f word:
We Aeed A e ^ o tiu tio A ,
Aot coAfrohtAtioA,

W o rd *
We deliver oa tiMe, every tiw e.
U *a w o rd * / s t r u c t u r e * This device is powered by a tiA y b A tte ry .
I a g r o u p s o-f - t k r e e It 's A b A tte ry th A t lASts 4 G F
louder thAA the oAe ia our previous Model.
It 's ecoAOMiCAl, re ltu b le , Y e t th is SAMe b u tte ry weighs
AAd eASy-to-cleAA. ieSS thAA A pAper clip.
I ASk you; 'Is th is rAASOAAble? ^ oW A d + stru ctu re
Is th is aood buSiA£SS prA ctice ?
P>eAt the re s t - choose the best.
Is this w h et our custoMers e x p e c t?
You'll feel huppy AAd heulthy,
M A ka tk ra a k e y p o iA t * relAxed AAd refreshed.

This presextAtioA will cover three W o rd * + stru c tu re

MAiA issu es. F i r s t , ... -^ecoAd,
ilAViA^ tiMe is <jood> Sa v i Aij MOAey tS b e tte r
... AAd F ia a IIv
Wherever y o u Are, wheAever
you Aeed us, we'll be th ere.

,£ t o p - A A d - * t A r t r e p a t it io A

WhAt's the probleM? The probleM is ...

E>0 you W AAt hiljh S A fe ty A t lo w COSt ? TuSt tu k e a MOMCAt to look A t our
C f lo b A l reuch - Id ca I S o lu t io A S re su lts. R esu lts th u t huve MAde us
a leudiA^ plAyer Ia the F ia a a c ia I
services ih d u stry.
 Presentations - being lively and persuasive: Exercises
15.1 Com plete the rhetorical questions w ith the pairs
of w ords in the box.
How + do When + expect Why + keep on
Where + go How much + is What + waiting
1 The opportunities are there. We've got the staff.
are w e for?
2 Our production costs are going up and w e're losing
market share. There's one question on everyone's mind.
do w e ___________________from
3 We went from a small office in Bratislava ten years ago to
be market leader in Central Europe today.
_____________________- did w e _______________________ it?
4 We've invested €5 million in new plant and machinery. I
know w hat you're th in k in g ._______________________ can we
to see a profit?
5 Product development times w ent w ay over schedule and
w e were late to market. A g a in .______________________do we
making the same mistake?
6 We spend a lot of money on TV advertising at all hours of
the day and night. . of that
wasted?
15.2 Replace one key w ord in each sentence w ith a
close synonym from the box. Your aim is to produce
repetition of sounds for dram atic impact.
boom effective glorious major ■
progress- variety
1 We're 100% focused on technological innovation - we
progress
believe in the power of improvement.
2 You don't w ant just any knowledge management system -
you w ant a system that is efficient and helpful.
3 Choose us as your local partner, and watch your business
grow!
4 As well as value, w e also offer choice.
5 Congratulations to all members of the sales team - results
this year haven't just been good, they've been wonderful.
6 Invest in Rubovia - w e have easy access to important
markets.
15.3 Replace one w o rd each tim e w ith a w ord th at has
already been used. Your aim is to produce repetition of
w ords for dram atic impact.
1 You have a lot of information on your databases. But can
information
you mine that knowledge to get what's really useful?
2 Our new range of shoes features tiny diamonds set into
the leather. It's the most exclusive line that w e have ever
produced.
3 What's the reason that w e keep going over-budget? The
explanation clearly is that w e lack good financial control.
4 The issue of energy conservation is becoming increasingly
important - it's the topic that's at the top of the agenda in
the construction sector.
5 W e have a global presence, w ith offices in every major
centre from Berlin to Beijing. But being international
doesn't always help - sometimes you need a local strategy
as well.
here?
15.4 Underline five contrasts in this presentation
extract. (Remember, one contrast w ill have tw o w ords.)
The first one has been done for you.
ur exclusive new watch makes its own electrical power
by the movements of your hand. Wear it for one day to
get energy for at least two w eeks. It is made of titanium - a
light material, yet strong and kind to your skin. The styling is
superb, combining classical elegance with modern design.
As you know, our w atches are not cheap. But people who
wear our w atches are not looking for a cheap product. They
are looking for something special. They want a quality
timepiece - to celebrate their s u c c e ss today, and pass on
to their children tomorrow.
1 5 .5 Com plete each sentence w ith the three most
appropriate w ord s or phrases from the box.
clean commitment customer needs
distribution channels drive future maintain
highly profitable well-run running costs
time-to-market vision
1 Take a look at our new machine. It's easy to
, easy to
________________________________ , and has very low
2 It gives me great pleasure to introduce to you our new
CEO. She's a wom an w i t h _______________________________
. and
3 Why should you invest in this company? Because it's
and has a great long-term ________________________________ .
4 Sales are flat. W hat can w e do? W e need more accurate
identification o f _______________________________ ,more
efficient and faster
 15 PRESENTATIONS - BEING LIVELY AND PERSUASIV

7 dominate (or even monopolize) the market

M e ta p h o rs a n d Id io m s
8 falsify the accounts Q
H ere is an e x a m p le o f a m e ta p h o r:
9 get more value for the money you spend □
It's like rearra n g in g d eck ch a irs on the T itanic.
(= It's ju st m a k in g sm all ch a n g e s th a t w ill d o n o th in g to 10 have written confirmation, not just a verbal agreement □
stop the b ig d isa ste r th a t's co m in g .) 11 look after things (while someone is away) □

H ere is an e x a m p le o f an id io m : 12 make a large, sudden profit

T here is light a t the en d o f the tun nel. 13 sell very well □
(= F in a lly th ere is a so lu tio n in s ig h t a fte r a lo n g p erio d 14 spend a lot of money w ithout any control
o f d ifficu ltie s.) 15 start a project and make it successful □
A m e ta p h o r is w h e re you d esc rib e o n e tilin g in term s
1 5 .8 Com plete each exam ple by w riting the letter of a
o f an o th er. A n id io m is a fix e d e x p re ssio n w h o se
phrase from exercise 15.6 in the gap.
m e a n in g is d iffe re n t to the m e a n in g o f the in d iv id u a l
w o rd s. In p ra ctice , th ey a re o fte n v e ry sim ilar. 1 Our main competitor has just gone bankrupt! If w e offer
M e ta p h o rs an d id io m s ad d c o lo u r to a p re se n ta tio n a job to their marketing director and get access to their
o r d iscu ssio n . B u t u se th em w ith care: o th e r n on- client list, we'll . i.
n ativ e sp e a k e rs m a y find th e m d ifficu lt to 2 W e're losing money fast. If w e go on like this, w e'll
u n d e rsta n d . A lso , y o u h a v e to g et e v ery sin g le w ord by the end of the year.
righ t, o th e rw ise th e y so u n d rid icu lo u s. 3 I have an apology to make. I w ent out for a drink with
some colleagues after w ork yesterday and I .I
told them you were applying for a new job.
IS .6 Com plete each phrase w ith the correct w ord/s in
the right-hand colum n. 4 I'll be aw ay for a few days, but Isabel will
5 It's an interesting project, but I don't think it willever
a) make a ^ ground
- it's too expensive.
b) corner the fire
c) get off the '■■■. market 6 On balance I think it's the right thing to do. But it's a big
d) cook the killing risk, and w e're going to from the shareholders
e) come under books for taking it.
f) keep an eye of the action 7 City Hall has plans to build a huge out-of-town industrial
g) get a piece like w ater park. There's going to be a lot of contracts for the
h) put my on things construction w ork, and w e need to make sure we .
i) spend money the red 8 Profits were up 2 8 % last year. And don't worry - we
j) be in foot in it didn't ask our accountants to !
k) sell like black and white 9 It's the World Cup next year. If we put the national flag
I) be a real high- your buck (AmE) on our t-shirts they'll
m)see it in hotcakes 10 We have to set a tight budget - with corporate
n) get more bang for in a small pond hospitality it's very easy to
o) be a big fish flyer
11 Thank you for that kind introduction, but I'm not really as
famous as you say! My area of research is very
15 7 Match the phrases in exercise 15.6 w ith the
specialized and it's quite easy to
m eanings below .
12 All three candidates have good CVs. I think w e should
1 accidentally say or do something embarrassing or that
choose the one with real leadership potential, the one
annoys someone
who's going to
2 be important, but only in a small field of activity □
13 This is a very innovative product in a very specialized
3 be criticized □
field. I think we can
4 be destined to go to the top of a profession
14 They were making a lot of promises at the meeting, but
5 become involved (in something exciting and profitable) we need to _______ before we can go ahead.
6 be over budget; have a negative bank balance 15 Value-for-money is important to many people. We need
to give a clear message: shop with us and you'll

• Write the script for a short presentation that you might Now write down the key points (max 20 words in total) on
give as part of your job or university course. At the a piece of paper. Practise again using just these key points
planning stage, refer to units 14 and 15. to guide you - not the full script.
Practise speaking the presentation, using the script. Practise again. Be lively and persuasive.

67
 Discussions
Managing a discussion
R ead this d ialo g u e in a real estate ag e n cy and then stu d y the p oints below .
Can you help me? I'd be interested to know something about
property prices in this area.
Yes, of course. But first, could you tell me a little more about your
present situation?
I’ve been living in rented accommodation for several years. Now I’m
wondering whether it’s a good time to buy somewhere for myself.
Okay. What sort of price were you thinking of?
Oh, you know, nothing too expensive.
Could you be a little more specific? We have some small one-
Id bedroom apartments that start at around € 120,000. Was that the
kind of thing you had in mind?
Possibly. But I'm not ready to think about individual properties just yet.
I wanted to know more about the market in general. There are a lot of
stories in the newspapers about house prices, and they worry me.
15 B: Okay. If I understand you correctly, your worries are probably
these: you don’t want to buy at the top of the market and see your
house fail in value, but equally you don’t want to miss the chance if
prices are going to continue to rise.
A: Yes, exactly.
2d B: This is of course a concern for all our clients, but you know it's very
difficult to time the housing market. Newspaper stories can make
forecasts, but no-one reaily knows.
A; I see what you're saying, but you must have some idea. I read
one article that said that house prices are going to crash.
25 B: I don’t think that’s true. Prices have stabilized recently, but they're
not going to crash.
A: Really? Do you think so ? My friend bought an apartment near
here last year for €165,000, and now other apartments in the same
block are going for less than €150,000.
3d B: Well, of course, it all depends. There are many factors that can
cause these short-term changes. But there is another way of
looking at this. If prices have dropped temporarily, then now is a
good time to buy.
But going back to what you said earlier, have prices stabilized,
35 or are they actually tailing? I disagree with you about now being a
good time to buy if they are still falling.
In certain areas they are stiii failing. But I think we’re losing sight
of the main point. You’re living in rented accommodation, and the
rent you pay could be going to repay a mortgage. And you would
4(1 have your own home.
A: That makes sense. But it’s a difficult issue.
B: You’re absolutely right. But while you’re here, why don’t I give
you an idea of what's available in your price range?
A: Okay.
4s B: Right. I’d like to start by writing down one or two personal details,
and then we can move on to looking at some of the properties we
have on the market
• L o o k at the w o rd s in b o ld ab o v e. U n d erlin e:
- five p h rase s ask in g fo r m o re in fo rm atio n .
- o n e p h ra se sh o w in g the sp e a k e r is g o in g to
ch e ck u sin g th eir o w n w ord s.
- th ree p h rase s for full ag reem en t.
- one p h rase u sin g Yes, bu t ... fo r h a lf agreem en t.
- one p h rase u sin g tw o o p e n q u e stio n s to sh ow
p o lite d isag reem en t.
- tw o p h ra se s fo r sim p le d isag reem en t.
H o w m an y o f th ese can y ou fin d in the m in d m ap
o p p o site ?
< A t lin es 7 and 10 yo u w ill see the p h rases: W hat
so rt o f price w ere y o u th in kin g of? and W as that the
k in d o f thin g y o u h a d in m ind?
T h e se q u e stio n s are in te re stin g for tw o reasons:
- first, they use 'v a g u e ' lan gu age: so rt of, k in d of.
- seco n d , th ey u se p a st ten ses (w ere / w as / had),
e v en th o u g h the tim e referen ce is present.
T h e p a st fo rm s cre ate an in d irect, d ista n t feeling .
T h e y c o m b in e w ith the v ag u e lan g u ag e so th at the
clie n t feels that he / sh e is u n d e r n o p ressu re.
* L o o k b a ck at lin es 3 0 -4 2 . T h e re is a b attle for
con tro l o f the topic:
- at lin e 31 B tries to ch an g e the focu s: ... there is
a n oth er w a y o f loo kin g at this.
- b u t at lin e 3 4 A resists: ... g o in g back to w h at you
said earlier, ...
- at lin e 3 7 B d eals b rie fly w ith th is resistan ce: In
certain areas ... b u t th e n tries to b lo ck fu rth er
d iscu ssio n w ith: I thin k w e're losin g sight o f the
m ain poin t.
- at lin e 42 B m a n a g e s the co n v e rsa tio n so that
th ey m o v e on fro m the o p e n in g to b e g in a sales
c o n v ersa tio n ab o u t sp e cific p ro p erties. F o r B,
this is the m a in topic.
N o w lo o k at the 'T o p ic m a n a g e m e n t' b ra n ch o f the
m in d m ap.
Other language for discussions
In d iscu ssio n s y o u are lik ely to u se a lo t o f lin kin g
w o rd s an d p h rases. (See u n its 2 0 -2 2 .)
 DISCUSSIONS

-the. M tfj*. -to pic

Full A^re.eMC.A-t
R.i<jht, le t 's <^et dowA -to buSiAeSS.
T h A t MAkeS seASe. W hy d o A ' t I ^ iv e y o u a a id eA o -f . . . ?
y o u 're Absolutely r i a h t. I 'd like, t o S tA rt b y ... C - ia ^")
Y e s , I w o u ld A ^ r e e w i t h th A t.
AAovir^ FroM poiA-t -to poi^-t
Ha IF A^ree.M£A-t
£jd th A t 's decided, theA. ^IiaII we wove o r ?
I see w hAt y o u 'r e S A y iA ^ , b u t ... O kA y, le t 's o a t o th e A e xt poiAt.

A ^ re e w it h you up t o a p o iA t, b u t
C kA r^ i^ -tlie. FoCIA*
Fbli-te. d i^ re .e .M C .A -t
T h ere iS A A o t h e r wAy o -f lookiA ^ A t th is .
Well, o f c o u r s e , i t A ll d e p e A d s . R erh A p S we s h o u ld A lSo c o A S id e r ...
I'm A o t s u r e I A ^ r e e w i t h t h A t .
I've d o t M ix e d f e e l i A ^ S A b o u t t h A t R .e.-tw rM r^
R e A lly ? Do yo u th iA k So? Q o iiv^ bACk t o w h A t I / y o u SA id e A r l i e r . ..
Do a 't you th iA k th A t ...? L e t we bACk up. C A m F -).

^ iru p le d i £ rc.c.M e.A t k - te rrw p - tiA ^

C o u ld I ju s t i i n t e r r u p t -f o r a n o n e A t ?
I d o A 't th iA k th A t'S t r u e .
I d iS A ijr e e w it h you About ... &loCk.iA^
T h A t's Aot how I see it . /
I th iA k w e're loSiAd s i a h t o-f t h e m a i a p o iA t
^ o r r y , i f I CAa j u s t fiA iS h , I WAS SAylAd t h A t

&Uyi*v^ "tiMC.
I t ' s a d i f f i c u l t issue.
I'll hAve t o t h i A k A b o u t it.
C o u ld I <^et bACk t o y o u oa t h A t ?
W hv d o A 't w e co M e bACk t o th A t lA te r

For More irrforiuA-tioA

J be iA te re ste d to kAow SoMethiAd About ...
I 'd
Could you te ll Me a l i t t l e More About . . . ?
Could you be a l i t t l e More sp e cific?
WhAt CexACtly") do you m CAa by . .. ?
WhAt S o rt o f price were you t h i A k i Ad o f ?
Was th A t th e kiAd o f thiA^ you hud ia mi Ad ?

Aifc-ia/j For repe-titioA

C o u ld y o u q o o v e r th A t A^Aia , pleASe?
Cta.Ck.iA/j by your ow a word*
£ o , i f I UAderstAAd you c o rre c tly , ...
-S»o b A S iC A ll y w hAt yo u 're S A y iA d is ...

Checking -the. o-ther persoAV u*\ders-tAAdi*^

Does th A t AASwer your <^uestioA?
Does th A t MAke seA Se?

D U C U ^ ^ lO N ^ RespoAdiA^
Y e s, e xA ctly .
Y es, t h A t 's ri^ h t.
N o t exACtly.
Well, le t Me p ut i t AAother wAy.
No, th A t 's Aot whAt I MeAAt. /
No, whAt I' m try iA ij to SAy IS ... y

69
 Discussions: Exercises

16.1 W ithout looking back at the mind map, think of 1 6 .4 Find a phrasal verb (eg take o f f o r look forw a rd
just one w ord to fill each gap. to) in exercise 16.3 that m eans:
a) There is another _ of at this. 1 start doing something seriously get d ow n to
b) Right, let's get down t o ______________ 2 stop doing one thing and begin doing another
c) back to w hat you said earlier.
d) I think w e're lo sin g ______________ of the m a in ______________ 3 return to a subject
e) Could I _ ___interrupt for a _ ? 4 speak to someone at a later time
f) Could you be a little m o r e ______________? 5 repeat something in order to understand it
g) W hat exactly do you mean more expensive'
h) Sorry, if I can finish, I was saying that ..
16.5 Match the beginning w ith the end of each phrase.
i) Could I __________ back to you that?
a) You're absolutely —— a point, but ...
j) Was that the . of thing you had in
b) Yes, I'm in favour \ I see it.
k) Does that make c) That might be worth right.
I) Well, let me it another way. d) I agree with you up to agree to that.
e) I can see one or two so?
16.2 Match each phrase in exercise 16.1 w ith one of
f) I'm sorry, I can't of that.
the uses 1-12.
g) Really? Do you think problems with that.
1 You w ant to change the focus. . h) That's not how trying.
2 You w ant to block the other person's change of focus
and return to the main issue. 1 6 .6 W rite each phrase letter from exercise 16.5 in the
grid below.
3 You w ant to interrupt. □
4 You w ant to block an interruption and continue. Q w ith som eone about som ething

5 You w ant to begin the discussion. Agreement 1 a 5 .

6 You w ant to return to an earlier point. □ Half agreement 2 6 .

7 You w ant to buy time after a question. Polite disagreement 3 7 .

8 You w ant more detailed information because the other Disagreement 4 _

person is being vague and general.
16.7 Com plete each m ini-dialogue using the phrases in
9 You w ant to clarify one particular word or concept. □
the box.
10 You w ant to clarify w hat you just said by saying it again
more simply and clearly. Can I get back to you on that? Yes, exactly.
I think we're losing sight o f the main point.
11 You w ant to clarify w hat the other person wants, using
Shall we move on? Let me put it another way.
vague language to avoid putting them under pressure.
12 You want to check the information you gave was clear. 1 A: Yes, I think that would work very well.
B: So that's decided, then.
16.3 Cover exercise 16.1 w ith a piece of paper. Then fill
2 A: Are w e going to have a hot buffet at the product
in the gaps using the prepositions in the box.
launch or just finger food?
about at back back down in of of B: Some major
of of on on over to to to to Issues are still unresolved - like the advertising
campaign.
Right, let's get business,
3 A: The price is okay, but w hat about shipping times? Can
Okay, let's move the next point, you deliver by the end of April?
3 There is another way looking this. B: I don't know right now.
4 Going . w hat you said earlier. 4 A: So are you saying you w ant me to transfer to the
5 I think w e're losing sight . the main point Madrid office?
Could I get you that? B: _ it would be a great
7 Could you tell me a little more . it? opportunity for you.
8 W hat sort price were you thinking 5 A: So are you saying I have to transfer to the Madrid office?
9 W hat exactly did you have _ mind? B: W e ll.___________________________________- You don't
have to, but it would be a great opportunity for you.
10 Could you go that again please?

711
 16 DISCUSSIONS

16.8 The w o rd s offer, su g g estio n and p ro p o sa l are 16.11 Put a tick ( / ) if the sentence is gram m atically
often m isused. Match each w ith an explanation: correct. Put a cross (/) if it is not.
1 _ - a n idea or plan, perhaps quite 1 I suggested a different idea. Q
tentative and vague 2 I suggested him a different idea.
2 _ - an idea or plan, more formal and 3 I suggested a different idea to him. □
definite, and usually one that a group has to consider 4 I suggested using another approach. □
3 __ - a statem ent saying you will give 5 I suggested to use another approach.
something to someone (used mainly in negotiations) 6 I suggested w e should look at alternatives. □

1 6 .9 Match each item on th e left w ith one on the right 7 I suggested it w e should look at alternatives. □
that has a sim ilar m eaning. (Note: p ro p o se and reco m m en d have the sam e
1 put forward - take up (a suggestion) patterns)
2 accept think of (a suggestion)
16.12 O ne item in each group does not collocate w ith
3 reject make (a suggestion)
the verb. Cross it out.
4 come up with dismiss (a suggestion)
1 hold a meeting / all the cards / an opinion /
5 take part in tackle (an issue) a proposal / sb responsible for sth
6 come to bring up (an issue)
2 take part in a discussion / an effort to do sth /
7 raise be involved in (a discussion)
a decision / up a suggestion / another approach
8 deal with open it up for (discussion)
3 reach an agreement / a compromise / a dead-end /
9 reconsider reach (a decision)
a decision / a demand
10 throw it open for reassess (a decision)
4 raise awareness of the issue / a difficult challenge /
11 a sensible feasible (suggestion) the matter later / an important objection /
12 a sensitive reasonable (suggestion) an interesting question
13 a realistic ridiculous (suggestion)
5 meet a challenge / a deadline / an issue / a need /
14 a minor difficult (issue)
an objective
15 an absurd side (issue)

a constructive in-depth (discussion) S peakin g / W riting practice

16
17 a hard fruitful (discussion) i Work in small groups. Have a discussion on one of the
18 a detailed initial (discussion) topics below.
19 an easy tough (decision) - Com puter games and children
20 an exploratory straightforward (decision) - Fast food
- Genetic engineering
1 6 .1 0 Cover exercise 16.9 w ith a piece of paper. Then
- Clean energy
fill in the m issing letters.
- Working from home
1 She was the only person to c u_ w .a - The future of Russia (or China)
fea le suggestion. - Euthanasia
2 I think w e should ta _ _ u _ his suggestion - it sounds - Transport issues in my city
very rea Je to me. - My favourite leisure technology
3 He p fo d a ri__________ ous suggestion about - UFOs
going to the CFO and asking for a bigger budget. - Destruction of the environment
4 I need to b . g u _ a rather s e n e issue. - Immigration
5 It's a difficult issue, but we'll have to t _ _ le it one day. - Global warming
- Emotional intelligence
6 I've been inv ved i_ the expl ry discussions,
- The uses of location-based (satellite) technology
and now w e're ready to call a formal meeting.
- Save the tiger! Save the panda! W hy? We manage
7 I thought the conference w as going to be a waste of
OK w ithout the dinosaur.
time, but in fact I t. k p. i._ some very
fr j discussions. Or Any current general / business news item

8 You've all read my summary, so now I think w e can When you finish, write the script for a part of the
o it u f a more in-d_ _ _h discussion. discussion that w as interesting. Feel free to add other
9 W e finally r ed a decision, but it w as a t gh one points - it is a language exercise, not a memory
to make. exercise.
10 It should be a relatively str _____ _rd decision.
©
Social English
Social English and cultural awareness

fo rm ality in n am es (u sin g M r X, D octor X, P rofessor X

T h e m ind m ap o p p o site sh o w s som e p h rase s for typ ical w h e n sp e a k in g d irectly to so m e o n e ) vs In fo rm a lity in

social situ atio n s, and the ex e rcise s o n p ag es 7 4 -7 5 refer to
these. T h e rem ain d er o f this p ag e g iv es air in tro d u ctio n to
the clo se ly -re late d to p ic o f 'c ro ss-c u ltu ra l a w a re n ess'.
Diversity and tolerance
n am es (m o v in g q u ick ly to first n am es, e v e n for y o u r
b o ss)
e x p re ssiv e b o d y la n g u ag e (p eo p le w av e their arm s,
m o v e ch airs arou n d freely in m eetin g s, look e ach o th er
in the ey e) vs re strain ed b o d y la n g u a g e (sm all, su b tle

H ere is a q u estion : Do you thin k that A m erican s are m ore facial e x p re ssio n s carry larg e m e a n in g s, p h y sical con tact

o u tgoin g an d in form al w hile B rits are m ore p riv ate a n d reserved? in p u b lic o r lo n g eye c o n ta ct is u n co m fo rta b le )
larg e p e rso n a l sp ace (p eo p le stan d at a d istan ce w hen
We feel in stin ctiv e ly that there is so m e tru th in this.
H ow ever, h a v in g m ad e a g e n era liz a tio n , o u r n e x t reaction talk in g ) vs close p e rso n a l s p a ce (p eo p le stan d n ear to
e ach o th er)
is u su ally : B ut w ait, that's a stereotype, an d an y w a y it depen ds
« self-d e te rm in a tio n (w e m ak e free ch o ices and con trol
on so m an y other things: age, eth n ic grou p, region al differen ces,
o u r liv es) vs fa ta listic (o u r lives are d ete rm in e d by god
not to m en tion the in d iv id u al person . E v ery o n e w ill hav e their
o r d estin y o r the g o v e rn m e n t)
o w n view s. T h e p o in t is sim p ly this: to re co g n ize th at the
p e rso n a l fu lfilm e n t (in d iv id u a l in itia tiv e and
w ay w e th in k and b e h a v e is n o t the o n ly way. W h en
a c h iev e m e n t are v a lu e d ) vs g rou p fu lfilm e n t (group
d ealin g w ith p e o p le from o th er cu ltu res, and esp ecially
h a rm o n y is v alu ed - W h o n e e d s in itia tiv e w h e n d uties
w hen a ctu ally d o in g b u sin e ss in an o th e r country, w e need
are fixed b y trad itio n , le a d e rs o r team n e ed s?)
to o b se rv e and listen an d sh o w resp ect. T h at d o e s n 't m ean
’■ m erit (resp ect is g iv e n to th o se w h o h av e earn ed it) vs
w e h av e to a b an d o n o u r n o rm al w ay o f d o in g th in g s - w e
s ta n d in g (re sp e ct is g iv e n to th o se w ith th e righ t
are also en titled to resp ect and to leran ce from o th ers, and
ag e /social class / ran k)
w e can n o t ju s t ch an g e o u r p erso n alitie s. B u t if w'e w an t to
relatio n sh ip (if w e c a n get a lo n g w e ll, w e can d o a good
h av e su ccessfu l frie n d sh ip s and b u sin e ss re latio n sh ip s in
jo b ) vs task (if w e can do a good jo b together, w e m igh t
an in tern atio n al con text, th e n w e h av e to u n d e rsta n d and
get clo se r as p eo p le)
acce p t the d ifferen ces.
• w e lco m in g risk ('g o fo r it!') v s a v o id in g risk ('b e tte r
National differences safe than so rry ')
< in n o v ativ e (n ew is e x c itin g and a lw ay s b est) vs
W riters in the field o f cro ss-cu ltu ral aw aren ess lo o k for
trad itio n al ( 'if it is n 't b ro k en , w h y fix it?')
o p p o sin g b e h a v io u rs (or v alu es) and th e n p lace d ifferen t
o p en d isa g re e m e n t (c o m p e titio n b e tw e e n id eas is
cu ltu res at d ifferen t p o in ts alo n g the scale. H ere is a
n e ce ssary to m ak e the b e st d ecisio n ) vs su b tle
sim p lified v e rsio n o f so m e w e ll-k n o w n cu ltu ral d ifferen ces;
d isa g re e m e n t (n o -o n e m u st lo se 'fa c e ' by b e in g p ro v ed
m an y are closely re lated . H o tic e h o w the d e scrip tio n s are
w ro n g in p u b lic, and co n se n su s m u st b e b u ilt slow ly, so
all neu tral. T h ere are n o p o sitiv e o r n e g a tiv e co n n o tatio n s.
d isa g ree m e n t is s ig n a lle d u sin g co d e su ch as R eally? or
# o u tg o in g / in fo rm al (sh are feelin g s easily w ith a w id e
I'm n ot su re abou t that.)
circle o f a cq u a in ta n ce s) vs p riv a te / reserv ed (share
m u lti-ta s k in g (p eo p le h a n d le sev e ral th in g s at the sam e
feelin g s w ith care, and o n ly w ith clo se frien d s and
tim e) vs lin e a r ta s k in g (p eo p le d o on e th in g properly,
fam ily)
an d then m o v e on)
live to w o rk (statu s com es th ro u g h p ro fe ssio n a l
lu n ch is a sn ack (b u sin e ss an d food d o n o t m ix ) vs
a ch iev em en t) v s w o rk to live (liv in g a full, ro u n d ed ,
lu n ch is a p le a su re (and the re sta u ra n t is a p lace to
stress-free life is m o re im p o rtan t th a n ju st h av in g
c o n so lid a te a b u sin e ss re latio n sh ip )
m on ey )
- p rid e in y o u r co u n try (m ore than ju st fo o tb a ll) vs
ord er (the ru les are the ru le s - so ciety su ffers if you
fo re ig n is b e st ('th e g rass is a lw ay s g re en e r on the other
break th em ) vs flexib ility (so m e tim e s w e can ignore
sid e o f the fe n c e ')
ru les - the con text, y o u r c o n scien ce and frien d s are m ore
D iscu ss th ese p o in ts, u sin g y ou r o w n n atio n al cu ltu re and
im p o rtan t)
o th ers as exam p les. You can refer to the scale below . '1 '
h ierarch ical (w e need clear d irectio n fro m ab o v e to do
m ean s the cu ltu re is an ex tre m e e x a m p le o f the
our jo b s p ro p e rly ) v s d e m o cra tic (p o w er should be
b e h a v io u r/ v a lu e m en tio n ed first. '1 0 ' m ean s it is an
d istrib u ted - e v e ry o n e 's o p in io n is im p o rtan t)
e xtrem e e x a m p le o f the o n e m e n tio n e d seco nd .
loose lim e (d ead lin es are g u id elin es) vs s trict tim e
(delav is failu re) 1 8 9 10

FVepAriAd -to
Is th A t the tiMe ? I ouaht t o MAte a
Move. s O h , So Soor. ? You d o r 't hAve
to riASh o f f ju S t ye t do yo u ?
Qoirva
Welt, I'd b e t t e r be o f f now.
Well, I re e lly M ust be <joiNfj now.
I t 's been reAtly Nice M eetir^ you.
’ ThAAk.iAij
ThANfc you So Much -for
AppreciAte it .
It w as re A tty k trd
Qoodbye.
HAve a SA-fe t r ip !
'hello' t o CISAbeO -for Me.
to CMichAel).
Pre.pA.riN^ -for di-f-ficwlt pewS
HAve you ijo t a MOMeNt?
I hAve AN Apology to MAte.
T h e re 's sowethiiuj I'v e beeN
MeANI N^ t o te ll you.
A ction
J u s t beAr w ith Me
I'll See whAt I
b o r 't w o rry. I'll
I'll do My b e st t o
E>i< re q u e s ts
I was w ordenr^ i f you could ...
Is th e r e ANy chANce you could ...
Would you MiNd . . . ? > No, r o t A t All.
Apologies AAd Replies
I do Apologue, I didN 't MeAN t o ...
I 'm So S o r r y , I d i d N 't
T h A t s c^uite a II ri^ h t.
b o r 't w o rry, i t hAppeNS All th e tiM e.
17 SOCIAL ENGLISH AND CULTURAL AW ARENESS
p lAtroductioAS
ForMAl: Allow Me t o
iNtroduce CKI aus N eub er^ er).
iN-forMAl: C K I aws '), th is is
C S te fA M A ). C S t e f A r iA ), CKI a u s ) .
V isitors
Hello, i t ' s f R u t h TAylor"), iSN 't i t ?
I t ' s very Nice t o M eet you, C R u t h ).
/ t>o hAve A SCAt.
r/ bid you fiNd us Q < ?
I reA lly
f How was th e -flight?
Is th is your f i r s t tiM e in Colo^re 7
/
o f you to .. RitUAl
How Are yo u ? s FiNe, thAN ts, ANd you?
v F ire .
Nice / PleASed t o Meet you. *
Nice / PleASed t o M eet you, to o .
R ca I SjWeStioA
H ow 's i t AQIN4?
H ow 's I i f e ?
£W o w i^ l(Vte
ReActiA^ -to ^ood pewS
You Must be d e lig h te d !
.SOCIAL En QLISH Wow, t liA t 's f A rt A S tiC
RcAC-tiA^ t o bAd A£WS
How Awful!
WhAt a M^htMAre!
W h A t A p it y !
Fbor you!
ReActip^ w ith swrprise
Y o u 'r e jo k iM j! C U iO
f o r a MOMert. Y o u 'r e kiddir<j! f i l s ' )
can do. T h A t 's strA N ^e !
deAl w ith i t . R e A lly ?
S o rt i t o u t.
A ctiv e liste.AiA^
MhM.
Uh'huh.
R i^ h t
R e A lly!
Add a -follow-Up sjuestiop
S o w hAt hAppered r e x t ?
r e A tiie th A t ... Why was t h A t , t h e r ?
How COm£ ?
C- Why / How d id t h A t hAppeN?)
W hAt f o r ? (= W h y ? )
73
 Social English: Exercises

17.1 Underline the w ords that a native speaker w ould 17.3 Put the lines of this dialogue into the correct
probably say in the introductions and greetings below. order 1-9. You are introducing Leon to Teodora at a
1 Diana, here / this is Steve. conference coffee break.
2 Nice to meet you. Nice to meet you, also / too. a) You: Do you two know each other?
3 Pleasure / Pleased to meet you. I b) You: Let me introduce you, then. Leon, this is
4 Hi, (Kristina), how are you going / doing ? Teodora. Teodora, Leon,
5 How's it going / d oin g ? c) You: Leon is at UBS - w e used to work together in
Zurich.
6 How's life / the life?
7 May I present / introduce myself? [~| d) Teodora: No, w e've never met.

8 You m ust / should be Chris Wood, is that right? e) Teodora: Yes, you too.

9 How are you? Fine / Well, thanks, and you? Q f) Teodora: Ah, so you're at UBS. That's interesting.
I work in the area of security for online banking,
10 Hi, (Peter), g o o d / I'm happy to see you again.
g) Teodora: Of course, I'd be happy to explain.
11 Thank you so much for coming. I really appreciate /
Perhaps we could have lunch together?
appreciate it.
□ h) Leon: Hi, Teodora. Nice to meet you.
12 Can I have / take your coat?
I i) Leon: Really? That's a very important field for us.
13 Did you find us / here okay?
I'd like to find out more about w hat you do.
14 Water? With gas or w ithout gas? / Still or sparkling?
Notice in this dialogue h o w the person doing the
17.2 Tick ( / ) the responses that are both possible and
introductions (You) gives som e personal inform ation in
appropriate in a business context. Cross (X) the ones
line c) to help the conversation to continue.
that are not. More than one may be correct.
1 Allow me to introduce Petra Reinhart. 1 7 .4 M ake phrases by m atching w ord s from the first
a) Pleased to meet you. □ column w ith w ord s from the second.
b) How are you? Q ] 1 W ow, that's —\ kidding, right? ('joking' in BrE)
c) How do you do? 2 You're change.
2 Hi! How's it going? 3 How be delighted!
a) Nice to meet you. Q 4 Poor fantastic!
b) Fine, fine. And you? □ 5 You must news! Congratulations!
c) Actually, I'm having one or two personal problems at 6 Yes, of done!
the moment. 7 W hat a you.
3 Did you arrive last night? 8 That makes a aw ful. I'm so sorry.
a) Yes, of course. □ 9 Well course. Sure.
b) Yes, that's right. □ 10 That's great nightmare!
c) Yes, certainly. |__
17.5 Look at ho w B sh o w s interest in this dialogue:
4 Could you bring me a glass of w ater?
a) Yes, of course. I [ A: M ary w en t into hospital again.
b) Yes, that's right. □ B: Did sh e? Poor her. Which hospital?
c) Yes, certainly. □ B replies in three stages. First with an 'echo question', then
5 Would you mind opening the w indow ? with a personal response, and finally with a follow-up
a) Yes, of course question to keep the conversation going.
b) Yes, I mind.
Respond to each piece of new s below in the sam e w ay.
c) No, not at all.
First use a phrase from Box A below , then Box B, and
6 Do you mind if I open the window ?
finally Box C.
a) Please do.
1 I'm going to France next w eek for a holiday.
b) I do. O
c) I'd rather you didn't, actually. Q
2 Hey, guess w hat. I got that job I wanted.
7 Wonderful food!
a) Yes, I think so. Q
b) Yes, certainly. □ 3 Apparently, hundreds of people were made homeless
c) Yes, fantastic. when the Danube flooded.

74
 17 SOCIAL ENGLISH AND CULTURAL AW ARENESS

4 My car is being repaired - again. It's going to be three D ia lo g u e 2

days before I get it back. Em il: Oh no! Flow stupid of me!
R o b e rta : W hat's up?
5 Dave arrived an hour late this morning. E m il: I 5_____________________________________ (h ave /
apology / make). I've put cream in the soup. I
com pletely fo rgo t you were allergic to dairy
Box A
products. I'm really sorry, I
Are you? Did he? Did you? Is it? Were they? 6____________________________________(do it /
purpose),
Box B
R o b e rta : D on't worry, that's quite alright. It
Three days - what a nightmare! 7 (happens /
Lucky you, I wish I was going! How awful for them. time).
That's not like him. Congratulations - you must be delighted!
1 7 .7 C o m p le te th e e x p la n a t io n s b y w r it in g S o rry o r
Box C
Excu se me.
What are your responsibilities going to be? 1__ ___________________is used: i) before you inconvenience sb
What did the boss say? Can I give you a lift anywhere?
ii) to ask sb to repeat sth (in A m E)
Which areas were affected? Whereabouts?
2 ____________________is used: i) after you inconvenience sb;
ii) to ask sb to repeat sth (in BrE)
1 7 .6 Com plete th e tw o dialog ues by using the w ords
in brackets to m ake w h o le phrases. 17.8 C o m p le te th e s e th re e c o n v e r s a tio n e x t ra c t s in a
Dialogue 1 re s ta u ra n t.
Naomi: Frank, 1 have you got a moment? A lic e : Is that the tim e? I o u g h t to 1m a m .
(have / got / m oment?) P a v e l: Oh, 2s_ s _ . .? You d on't have to 3r h o_ just
Frank: J u s t 2_______ _____________ __________________ (b e a r/m e ) yet, do you? 4H_ a som e more coffee?
w hile I close down this program on my PC. Okay, (10 m inutes la t e r ...)
what's the problem? A lic e : Well, I really 5m„ be g now. My flight
Naomi: 13 (wondering / leaves at 8 :3 0 in the m orning. It's been 6r
if / help me). I tried to import a file into Excel and n m________ _ you. A n d 7th you
now the w hole spreadsheet just looks like a big s_ for sh o w in g me round Prague.
mess. I 8r_ . _ a_________________ it.
Frank: I'm not an expert, but I'll P a v e l: D on't 9me ____ . it. It w as 10m_ p _________ .
4
(do / best /
(5 m inutes later, outside the re sta u ra n t...)
sort / out).
P a v e l: Have a l1s tr I A nd 12s. 'h ' to Isabel
f _ me.
A lic e : I will do. A n d 13b of I for the presentation
next week. Bye!
P a v e l: Bye! 14K in t_ !

Exercises 17.2, 3, 5, 6 and 8 can be read aloud with a c) Now you are in the bar.
partner. Practise them, taking the other role when you First, each of you tell a short story about som ething
finish. Think about intonation: sound friendly and interesting / funny that happened to you recently.
interested. The others show interest.
W ork in pairs. Then continue the conversation by talking for a short
a) You meet a colleague during the coffee break at an time about som e of the fo llow ing topics:
international conference. You have not seen each other - interests / sports / hom e
for four years. - current affairs and the econom y
* Greet each other and make small talk. - business travel
b) Find another pair. One person in each pair knows the - cultural differences
other (decide who). d) Now it is the end of the evening.
Make introductions. Prepare to g o and then leave the bar together.
Make more small talk. • Say goodbye.
& Arrange for all of you to meet in the bar this
evening.

75
 Style - clarity and emphasis
Clarity and simplicity
In co n te x ts lik e p re se n ta tio n s or m e e tin g s there is a
ten d en cy for a d v an ced le a rn e rs o f E n g lish to sw itch to a
style w h ich is too co m p licate d and too form al. You m ig h t
h ear so m e th in g like this in a p resen tatio n :
C on su m er tastes and fash io n s are always in a process o f
ch an g e in the glo bal m ark etp lace, and fo r this reaso n in
the n e a r fu tu re I th in k it will b e necessary fo r us to look at
the possibility o f m ak in g som e m o d ification s to the design
o f o u r ran ge o f prod u cts - in the m a n n e r w hich I have
in d icated in this n e x t slide, w hich shows som e o f my initial
ideas on the su b ject.
T h e e x tra ct ab o v e w o u ld be b e tte r lik e this:
C o n su m er tastes are always ch an g in g . B ecau se o f this, I
th in k we’ll have to m ake a few ch an g es to the design o f our
products. Have a lo ok at this n e x t slid e, w hich shows som e
o f my ideas.
Here are som e other exam p les o f how to sim p lify language:
You have the p o ssibility to ... * 4 You can ...
T here is a chan ce that it w ill ... 4 It m i g h t ...
It w ill be n ecessary f o r us to ... - W e n eed to ...
the price o f com m od ities 4 co m m o d ity prices
a docu m en t that sh ow s you have in su ran ce f o r sports that you
practise in the w in ter ^ a w in ter sports in su ran ce docu m en t
T here is a strong trend to clarity and sim p licity in business
com m u nication. Sim p ler con stru ctio n s and sho rter sen tences
are easier to un derstand and hav e m ore im pact. Busin ess
people value d irectness, and com p lex langu age can sound
ind irect or w orse (perhaps you are trying to hid e som ething).
H ow ever, co m p lex fo rm al la n g u a g e is n o t n e ce ssa rily
'w ro n g '. In so m e co n texts (eg legal d o cu m e n ts, form al
rep orts) it m ay a ctu ally b e v alu ed and e x p ected . You
alw ay s h av e to b e a r in m ind the co m p a n y cu ltu re, the
e xp ectatio n s o f the a u d ien ce, etc.
Clarity in emails and letters
R ead the d ifferen t v e rsio n s o f the sam e em ail and then
Study the p o in ts below .
V ersion 1
I To- I o p p o rtu n ities fo r us in th at p art o f the world. It's such a
Send Subject:
I have seen your advertisement for office sp ace in the Daily
a
Journal. I could be interested in renting one or two small rooms.
I would like to know what the rooms are like, the annual cost, the
transport links in the area, and any other information that would be
relevant such as parking spaces for visitors.
If the information is right for my needs, I would like to inspect the
property,
I look forward to hearing from you soon.
V ersion 2
S I 1 To... | | □
Send Subject: 1
Will you please answer the following questions about :ne office
space advertised in the Daily Journal. I am a graphic designer
and want to rent some space for myself and a colleague.
1 How much window area is there in each room? We will need
rooms with good light.
2 What is the annual rental charge?
3 Are cleaning, maintenance and utilities included?
4 How far is the building from the nearest metro station? Which
buses stop nearby?
5 Is there any off-street parking for visitors?
If your answers meet our needs, we would like to tour and
inspect the offices. Please let me know how to arrange this.
I am meeting my colleague to discuss this matter tomorrow
afternoon and would appreciate a reply by then.
V ersion 1 b e g in s slow ly. T h e w riter g e ts to the p o in t in
the seco n d p a ra g ra p h b u t there are no clear, d irect
q u estio n s. T h e re q u ests for in fo rm a tio n are listed
to g eth er in o n e sen te n ce and do n o t stan d out. th e close
is friend ly, b u t in this c o n te x t a stan d ard p h rase is
p e rh ap s a little o ld -fa sh io n e d .
• V ersio n 2 b e g in s d irectly by sta tin g th e p u rp o se o f the
e m ail (to ask fo r in fo rm atio n ). T h e e x p la n a tio n is b rie f
b u t a little m o re c o m p le te th a n V ersion 1. T h e qu estio n s,
w ith an e x p la n a tio n in clu d e d w h ere need ed , are
n u m b e re d . E ach starts a n ew lin e. T h is m ak e s a n sw e rin g
easy. T h e clo se g iv es a sen se of u rg e n cy w ith o u t b e in g
ru de.
Emphasis
T h e re are m a n y in d iv id u a l w o rd s th at can be u sed b efo re
ad je ctiv e s, ad v erb s, n o u n s and v erb s to in te n s ify the
m ean in g . Try re a d in g alo u d the fo llo w in g p resen tatio n
e x tra c t tw o w ay s: first w ith o u t an d th e n w ith the w o rd s in
bo ld . B o th w ay s m ak e sen se , b u t the w o rd s in bo ld giv e
em p h asis.
O u r business is g o in g extrem ely well, bm it cou ld be
go in g even better. T h e whole C h in ese m ark et is o p e n in g
up , an d I ’m ab so lu tely su re th a t th e re a re many
hu ge m arket. W e really c a n ’t p re te n d th a t we are a global
com pany unless we significantly raise o u r p ro file in Sou th
E ast Asia.
B e carefu l: if you use too m u ch o f this k in d o f la n g u a g e it
so u n d s lik e you are e x a g g e ra tin g and b e in g in sin cere.
 STY LE - CLARITY AND EMPHASIS

C o M f.liC A .-ta d / -fo rM A .1 I a a ^ u a ^ c >

A bove a II, ia p A r t ic w lA r
M A iA ly , M o s t ly , p r iA C ip A lly , p r e d o M iA A A tly
*iMf>le. / c o A v a r^ A -tio i^ A l lA A ^ U A ^ e
p A r t iC W lA T ly , e s p e c iA lly
I t will b e A ecesSA ry -fo r u s -to ... V W e will Aeed t o
S p e C if iC A l l y
O u r expectAtioAS Are tinA t ... -> We expect...
da Aa o ffiC iA l bASiS > o ffic iA lly

Vow hAve th e p o s s ib tlity t o d e te rm in e

yowr own p re fe re A c e s . "> Vow c a a cinooSe.
v e r if y > check

CLARITy AND re^ w ireM em tS v ACedS

ift-forwi > t e ll
ii\ S p ite o f t h e f A c t t h A t V eveA though /
E M P H A ^ I^ j

^ h o rt, siMple seAteAces ca II

A ttem tio A t o t h e ir coAteAt
V^boJ
Loa^, coMplicAted seAteAces
v& xd V * l* e . tA k e t iM e to U A d e rstA A d .

a o d Cia$ o* * (

S u ffo ft
^ a f A P A - t i^ p o i*-t£
Ia w ritiA ^ , use AUMberiA^
o r bwllet poiAt#.

Ia Speech, SAy f i r s t o f A ll, ..

S e c o m d ly , -.., t h ir d , ... AAd f iA A ll

F W i- t io A
The be^i AAi a^ a Ad eAd CArry
More eMphAjSis: th is Applies
t o a pArA/jrAph o f t e x t , a a
eMAil, o r a whole preseA tA tioA

very, extreM ely Ce^ extreM ely Successful)

fA r, c o A S id e r A b ly , M w ch,
Si<jAifiCAAtly, evex Ce^ Much cheAper)
f u lly , t o t A lly , COM pletely, A b s o lu te ly
CeA I m f u lly Aw A re t h A t
C h o ice o-f lAA^UA^e d e ^ r d *
th e whole, th e e A tire Ce^j th e whole process')
o a coA-tax-t A rd Audience
A C t u A lly Cejj I t A c t w A lly reduces our co sts by £'X.'>
R e p o rt o r eM Ail?
CAbsolutely*) a o ... A t aII Ce^ T h e re 's Absolutely ForMAl o r iAforMAl p reseA tA tio A ?
a o hope A t aII o f ...*)
I Level o f Eh^lish o f th e
r e A lly CeA We r e A lly c a a t ...') reA d ers / lis t e A e r s ?
Such a ... Ce^ It 's Such a coMplex issu e .)
So Ce^ The issue is So coMptex.)

//
 Style - clarity and emphasis: Exercises
18.1 Rew rite each sentence 1-6 using th e w ords in
brackets below. The num ber in bold sh o w s the
maximum w ords for the n ew sentence.
1 It will be necessary for us to request additional assistance,
(need, ask for, more help - 8)
We will need to ask for more help.________________________
2 You have the possibility to determine your own
preferences in relation to the colour, (can, choose - 6)
You______________________________________________________
3 These days the labour unions have a declining influence on
governmental operations, (less, government - 9)
These days the unions____________________________________
4 My boss terminated Claudia's employment as a
consequence of her ineffective performance,
(fired, because of, poor - 9)
My boss_______________________________________
5 Our expectations are that the price of commodities will go
up in value, (expect, to rise - 6)
We
6 In view of the fact that their requirements are so specific, I
suggest that w e verify all the details with exceptional care,
(because, needs, let's check, very carefully - 13)
18.2 Continue as in exercise 18.1. There are som e
bigger changes to m ake, but the m eaning of the tw o
versions is alw ays the sam e.
1 I have an idea in mind for how w e can utilize better credit
control to make improvements to the situation regarding
our cash flow, (know, use, improve - 14)
2 The new regulations state that we have an obligation to
stop using the PCs of the company for emails of a personal
nature, (rules, say, must not, personal emails - 14)
3 During the time we were talking she asked a great number
of questions with regard to the recent modifications in our
range of products, (while, lot, about, changes, product
range - 18)
78
4 Your line manager will make an appropriate decision about
your bonus, in spite of the fact that the HR department
has the responsibility for this on an official basis.
(decide, even though, officially responsible - 15)
18.3 Read this extract from a report,
A lth o u g h w e h u v e n o t d e fin ite ly d e te rm in e d th e caur.cs
for th e d e c lin e in sales v o lu m e for M a rc h w e k n o t; th at
d u rin g th is p erio d c o n s tr u c tio n w ork o n th e stre e t lim ited
th e n u m b er o f cu sto m e rs w h o e n te re d th e sto re an d also th a t
b eca u se o f s ta ff ch a n g e s in th e a d v ertisin g d e p a rtm e n t
p ro m o tio n effo rts w ere red u ced .
It w ould be clearer if it w a s broken dow n into shorter
sentences. Put in all the capital letters, com m as and full
stops in the version below.
we h a v e n o t d e fin ite ly d e te rm in e d th e cau ses ft >r th e d< lin e
in sales fo r M a rc h w e k n o w h o w e v e r th a t d u rin g th is period
c o n s tr u c tio n w ork o n th e stre e t lim ite d th e n u m b er o f
cu sto m e rs w h o e n te re d th e sto re in a d d itio n w e kn ow th at
p ro m o tio n effo rts w ere red u ced as a resu lt o f staff c h a n g e s in
th e a d v ertisin g d e p a rtm e n t
1 8 .4 A custom er w rite s an email asking fo r more time
to pay an invoice. Here is a form al, old-fashioned reply.
" H i r r ^ :n i i
Send | S u b j e c t : ____________
In reply to your email of April 4, we are p leased to inform you
that perm ission is hereby granted to delay paym ent of your
invoice ref D970 until May 15.
However, we are sure that you will understand our
consid erable concern in this matter. Should yo , have any
further difficulties in the paym ent of an outstanding amount
kindly ad vise us at an early date.
Take a separate piece of paper. W rite a sim pler version
by putting the phrases b elo w into the correct order. Put
in capital letters and full stops, but no extra w ords are
needed.
reg ard in g in voice D 97 0 / y o u r em ail / un til M a y 15 /
thank y o u for / to pay / w e w ill g ive y o u /
co n ta ct us im m ediately / th e ou tsta n d in g am o u n t /
any fu rth er p ro b le m s / if y o u ha ve / p lea se
 18 STYLE - CLARITY AND EMPHASIS

18.5 Com pare versio ns 1, 2 and 3 of a paragraph from 18.6 Add the w ords in brackets at an appropriate place
a business report. Before you read statem ents a) and b) to give em phasis.
below , think carefully about the differences betw een really such
the versio ns (clarity? sim plicity? form ality?). 1 We A. can't afford to ignore A a good opportunity.
Version 1 (really, such)
2 I'm certain that w e're in a better position now.
B u sin ess activity started to get b etter in Q1 and we (absolutely, far)
exp ect the im p rov em en t to con tin ue. O ur forecasts show 3 It's cheaper to use an outside firm for the graphic design
that in Q 2 sales for the w hole com pany will go up - work.
perhaps to ab o u t € 1.2m . T h is is an increase o f 8% from (actually, much, all)
the sam e tim e last year. 4 There is no truth in w hat they are saying - their story is
lies.
Version 2 (absolutely, at all, whole, complete)
5 It's a risky project - I recommend that w e take care,
T h e up turn in business activity that began in dit first (highly, strongly, the greatest)
quarter should con tin ue. In fact, it m ight even 6 It's difficult to know w hether the advertising campaign is
accelerate. Sales fo recasts show that total sales from all going to work.
business units should rise to around € 1.2m in Q 2 .T h is (just so, actually)
is an 8% year-on -year increase - m u ch higher than the 7 I support the Board - they are doing an important job.
corresp on d ing figure for Q l . (fully, entire, extremely)
8 I hope we see a rise in sales at Christm as - more than
last year.
Version 3
(really, significant, even)

T h e upturn in business activity that began in the first

9 We can't decide quickly - the issue is too important,
quarter o f the year ( Q l ) is expected to continue, and
(really, so, far)
indeed m ight even accelerate. Sales forecasts indicate that 10 I agree - upgrading our computer network will take us
the total revenue from all business units com bined should over budget.
clim b to a figure o f approxim ately € 1.2m in Q 2 , (completely, entire, way)
representing an 8% annualized increase, w hich is
Practise speaking the sentences to give m axim um
significantly higher than the corresp onding figure fo r Q l.
em phasis and impact.

W hich statem ent b elo w do you agree w ith : a or b? W riting practice ________________________
There is no 'right' an sw er!
• Collect some documents that you or your colleagues
a) Version 1 is okay. Everything is simple, clear and easy to have written: business reports, academic w riting, work-
understand. Version 2 is the best - a little more related emails, etc. Study them. How could they be
complexity and formality is right for a business report. clearer and simpler?
Version 3 is too complicated. Non-native speakers might
» Choose one of the documents (written by you or
find it difficult to follow, and it lacks impact because it
someone else). Rewrite it, starting from scratch.
takes time to understand.
b) Version 1 is too conversational and fragmented for a
report (although it would be okay in an email summary). It
creates a bad image. Version 2 is better. But version 3 is
the best - it shows the high standards of formal writing
that international companies expect. If some non-native
speakers find it difficult, that is their problem - they should
improve their English.

79
 Style - politeness and softening
Politeness in speech
R ead [his d ialo g u e at a re ce p tio n d esk.
A: Good morning, how can I help you?
B: Oh, good morning. I w a s w ondering if I could have a
quick word with your Finance Director?
A: Do you have an appointment?
B: Actually, I don't.
A' I see. That's not going to be easy. Mr. Rodriguez is a
very busy man.
B: Of course, I understand that. I just w anted to speak to
him for a couple of minutes, that's all.
A: Could you tell me what it is about?
B: Yes. There seem s to be a mistake on an invoice you
sent to my company. I thought it might help if I spoke
to someone in person about it. I w ould be really
grateful.
A: May I see the invoice?
B: Yes, here it is.
A: W hy don't you phone Mr. Rodriguez about this? As
far as I know he is in a meeting until 10:30, and you
would have to wait.
B: Yes, I could call him. But if there w as a chance to
speak to him at 10:30, I'd prefer that.
T h e w ord s in b o ld h elp to m ak e the la n g u a g e m o re polite
and d ip lo m atic. T h e re are tw o o p p o sin g a rg u m en ts on th is
su bject:
1 S o -calle d 'p o lite ' la n g u a g e ju st so u n d s false to m e. W h y
d o n 't p eo p le ju s t sp e a k clearly and d irectly ? If y ou are
in d ire ct th en p eo p le w o n 't k n o w w h a t you m ean .
2 P eo p le v alu e p o lite n e ss, and it is w o rth a d d in g a few
extra w ord s to im p ro v e y o u r self-im ag e. It a llo w s the
oth er p erso n to 's a v e fa c e ' - it g iv es th em an e a sie r w ay
to say 'n o ' o r to su g g e st an altern ativ e.
E ach sp e ak e r o f E n g lish h as to d ecid e fo r th em selv es w h en ,
and h o w m u ch , p o lite la n g u a g e to use. T h e m in d m ap
o p p o site g iv es y o u a ra n g e o f tech n iq u es to ch o o se from .
H ere are som e typ ical situ a tio n s w h ere th ey m ig h t be
useful:
• You need to ask fo r a b ig favour.
• You d o n o t k n o w the o th e r p erso n v ery w ell.
• T h ere is a fo rm al c o n te x t lik e a larg e m eetin g .
• You w an t to sh o w re sp e ct to so m e o n e (b ecau se o f th e ii
statu s, age, etc).
• T h e o th er p e rso n is from a cu ltu re w h ere fo rm a lity and
p o liten ess are v alu ed and exp ected .
80
Softening a bad-news email or letter
R ead the tw o d iffe re n t v e rsio n s o f the sam e e m ail - w h ich
o n e d o y o u prefer, and w h y ?
V ersion 1
S 1 To... | f
Send Subject:
We regret to inform you that the software pack you require is no!
in stock.
We are selling more of this item that we expected, and our
suppliers are unable to meet the demand. We are honing to
receive more of these packs in the near future, and will contact
you as soon as they arrive.
We apologize again for the inconvenience this has caused.
▼
V ersion 2
~ M ~ \ 1— - = □
Send [ Subect: , j
Thank you for ordering the new software pack - we are sure
that it will make a big difference to the productivity ol your
business.
Many other com panies have seen the advantage of using this
software, and we have had a very high number of orders.
New stock is expected within the next few days, and you can
be sure that we will ship it to you a s soon as it arrives.
If we can be of further help, please contact us quoting the
reference above, _
N o w read o n e p o in t o f v ie w below . T h in k ab o u t it, e v e n if
y ou d o n 't agree w ith it.
• V ersion 1 sta te s the b ad n ew s at the b e g in n in g and
in clu d e s the n e g a tiv e w o rd s regret and not in stock. T h is
im m e d ia te ly creates a b ad fe e lin g in the m ind o f the
reader. T h e e x p la n a tio n th at fo llo w s is clear, b u t in clu d e s
the n e g a tiv e w o rd u n able. T h e re is a p rom ise to sen d the
g o o d s, b u t it is v a g u e an d u n lik e ly to reassu re the
custom er. T h e clo sin g w o rd s leav e the read er w ith a
re m in d e r o f the b ad n ew s, an d n o su g g e stio n for how to
take fo llo w -u p action.
:■ T h e g e n era l p ro b lem w ith v e rsio n 1 is th at it states the
facts w ith o u t se e in g th in g s fro m the r e a d e r's v iew p oin t.
V ersion 2 b e g in s w ith a p o sitiv e first sen te n ce and
rein fo rces the id ea th at the p u rch a se d ecisio n w as a go o d
o ne. T h e e x p la n a tio n o f w h y s h ip p in g is d elay ed u ses no
n e g a tiv e w o rd s. T h e m e ssag e co n tin u e s to be p o sitiv e
a n d reassu rin g . T h e clo sin g w o rd s o ffer the read er a w ay
to take fo llo w -u p action.
• T h e sty le o f v e rsio n 2 is g e n era lly m o re m o d ern . It is
m o re in fo rm al, m o re friend ly, and is w ritlen from the
re a d e r's v iew p o in t.
 STYLE - POLITENESS AND SOFTENING

Indirect sjueS-bioAS
I Aeed "to L aow ... > Could you t e ll m£ ...? lA'troduciA^ a p o lit e
re-fuSAl o r bAd a£wS
Ne^A-bive cjueS-tioA
I V» S o r r y b u t ...
CbecoMeS a Su^eS-bioAT
I'm A-frAid ... C & r E -)
I t w ould be b e t t e r t o .. . U A -fb rtu A A te ly, ...
v W o u td A 't i t be b e t t e r t o . . . ? A ctu A llyi ...
Pre.fe.Kt > P a s F CAA v C o uld,
H o w M l*ch do yo u W A A t t o SpCxd ?
w ill v would / M i^ ht
■
> How m uc K did you w A A t t o SpeAd ?
We could t r y t o ...
iliMple V C.OA-tiAUOUS
We would hAve t o ...
I hope you CAA . .. ■» I'm hoplA/^ you CAA ... T h A t Miijht be d if fic u lt .
pAS"b + C.OA"biAUOUS fe&*A
C^iveS "two levels o f diS-tAACiA^T T h ere seeMS t o b e / lt seeMS
t h A t t h e r e is A M iS u rd e rS tA A d i a.
I woAder i f I c a a ... * I w as woAderiA<j i f I could ...
I hope you w ill ... > I W AS hopiA^ you would ...
A S m a II / A S lig h t + AOUA
UsiA^ -bhe pASSive -to T h e re MAy be a S lig h t delAy
de-perSoAAlize aa issue
A b i t / S lig h t ly + A d je c tiv e
You pToM iSed us ... •> We w ere p ro M ise d ...
T h e p rice is S lig h tly higher
F irs t coAdi-tioAAl v ^ecoAd coAditioAAl thA A lA S t y 6 A r
IT t h e r e 's a chAAce t o . . . , I'll be v e r y ^ r A te fu l. ju ^ t
■> I f t h e r e w as a chAAce t o . . . , I'd be v e r y ^ r A t e f u l
C ould I j u s t lA t e r r u p t
f o r a MOMeAt ?

Ne^ A-t i ve-SoUAd i a^

A d je c t iv e "> Aot + o p p o s ite

T h A t 's w roA a. s W ith re s p e c t,

t h A t 's A o t <^uite c o r r e c t .

Y o u r p ro d u c ts A re expeASive.
■
> Y o u r p ro d u c ts A r e A 't cheAp.

Y o u SAid ... >

I U A d e rsto o d ...
I U A derstoo d t h A t t h e
P O L IT E N E S S and dlSCOUAt WAS 4%’ -

MaVcIa^ i t perSoAAl ■SOFTENlN Q Use o-f vA^ue 1aaaua^£

rA ther -thAA <^eAerAl
Did you reA d My £ m A i I ? s Did
I t h iA k ... you hAve a chAAce t o reAd
I Suppose ... My eMAi I ?
I reckoA ... CiAfoTMAO
Ia My v ie w / o p iA lO A , . . . C fo rM A O T h ere A re tw o th ird s I Aeed t o
discuss w ith y o u . ■ > T h e re Are
lA-PorMAtioA MAy Ao-b be -brue a c o u p le o f thiAAS I A e e d to
d iscuss w ith y o u .
AppAreAtly ... \
I t seeMS th A t ...
A s T a r a s I kAow ...
To th e b e st o f My kAowled^e ...

R.eFoPMulA-biAd SoMcbhiA^ -boo

StroA^ o r -too de-fi Ai-be
\ O r T A th er, ...
I m c a a ...
T h A t's t o SAy,
A t leASt

81
 Style - politeness and softening: Exercises
19.1 Make the sentences b elo w more polite or 'soft*.
Use the w ords in brackets.
1 We have a problem, (seems / slight)
It seems we have a slight problem.___________________
2 Can I interrupt? (could / just / for a moment)
3 There'll be a delay, (m ig h t/ju st / small)
4 You said you can deliver by the end of March,
(understood / could)
5 Our competitors are expensive. (I'm afraid / not very)
6 It would be better to ship to Rotterdam,
(wouldn't / Rotterdam?)
7 There are three things I w ant to discuss,
(one or two / wanted)
8 I assume that the paperwork is okay, (am)
9 We're unhappy with the quality of this repair.
(I'm sorry / not very)
10 We expected a more flexible response,
(hoping for / slightly)
11 Please show me round your factory.
(I / grateful for the chance / have a look round)
12 Please show me your designs for next season,
(was wondering / 1 could / a quick look at)
13 You don't understand how important this is
(With respect / don't seem)
14 You must give us more time.
(We / appreciate it / if / could / a little more)
15 I can speak to my boss about it, but I don't promise
anything, (suppose / could / but / not promising)
16 Their business is going very badly,
(apparently / not / well)
17 There are some technical problems to sort out.
(far / 1 know / just a couple of)
82
19.2 The first sentence b elo w is too definite - or just
w rong. So the speaker reform ulates it in the second
sentence. M ake a phrase using the letters in italics.
1 He doesn't seem very experienced, a e l m n
he hasn't been in the co m pany very long
2 The project is not going to finish on time. a A e l s t t
_ , I don't think it will.
3 I'm meeting her on Tuesday. a e O h r r r t
. , Wednesday.
4 I'm not working for them again. a a o h ' s s T t t y
. , not unless they pay me more.
19.3 Read the dialogue below .
A: I think you have the old price list. The prices quoted there
are not current.
B: But your sales consultant gave this list to me just last
m onth1.
A: We've had some big increases in our costs recently. Raw
materials are becoming a lot more expensive. We had to
raise all our prices by 4 % from the beginning of this
m onth2.
B: I see. Is there any w ay to avoid the increase?
A: Well, you could switch to another product with a lower
performance3. If you do that, you'll save money4.
B: No, I don't w ant to do that. W hat about if w e increased
our order?
A : I see w hat you're saying. But that's going to be difficult5.
You already have a very generous quantity discount.
B: But is it possible?
A: How many more units are you thinking of6?
B: Perhaps another 500 units a month.
A: I'm sorry, but an increase of that size will not be enough
to give you a bigger discount7.
The small num bers come at the end of a sentence that
is going to be changed. M ake a script by w ritin g a n ew
version on a separate piece of paper:
1: change an active to a passive, leaving out who does the
action
2: add the word unfortunately
3: add the word slightly
4: change a first conditional (If + present) to a second
conditionals (If + past)
5: change a negative-sounding adjective to n ot + the
opposite
6: change a present continuous to a past continuous
7: change will to would
Practise reading aloud the n ew version. If possible,
w ork w ith another person and change roles at the end.
 19 STYLE - POLITENESS AND SOFTENING

1 9 .4 Read this em ail. It is saying 'no' to a request for a 1 9 .5 First read the email below . It is a refusal to a
refund for an u n w an ted product. request to speak at a conference.

L i> y I .
Send Subject: Send Subject:

I am writing in relation 10 your request for a refund for the shoes I am sorry but I am unable to a c c e p t your invitation to sp e ak
that you ordered from our website. Thank you for returning the at the annual co n fe re n c e of the National A sso ciatio n of Sm all
shoes, which we received th<s morning. B u s in e s se s (N A S B ). I am going to be very busy during that
period and cannot clear the time in my sch e d u le.
Unfortunately, we are unable to send you a refund. We examined
the shoes and found that they had been used outside. This In any c a s e , thank you for your invitation and I w ish you
1means that we cannor resef: the item to other customers. We will every s u c c e s s in the organization of your co nference.
return Itie snoes to you, and you should receive them within ten
working days.
The email below is a more positive and friendly
We trust that you will understand our position and we regret any altern ative. Put the sentences into the correct order,
inconvenience caused.
and into paragraphs.
Paragraph 1: c
The email b elo w is a more positive and friendly
Paragraph 2: ~c ’
alternative. First m ake phrases by m atching an item
Paragraph 3 □ □ □
from the left colum n w ith one from the right. Then use
a) Unfortunately, my time is already fully committed over that
the phrases to com plete the em ail.
period, and so I must suggest that you get someone else.
consider the sale —- condi ti ons
b) Thank you for your email inviting me to speak at the
in the stated
annual conference of the National Association of Small
suitable for ' '" f i n a l
Businesses (NASB).
terms and days
c) As you know, presenting a paper to an audience of such
with the relevant circumstances
experienced professionals requires a good deal of thought
this is clearly to do
and planning.
w e are willing resale
within ten working section highlighted d) Anyway, thank you again for the invitation, and if I can
help you further in your efforts to get a speaker, please get
To... back to me.
Send Subject:
e) It is a great honour to be asked to speak at this event, as
You have a righ! to expect the best possible service from the w ork of NASB in promoting small businesses is well
ShoesTU, and _ .. as much known.
as we reasonably can to make things right. f) I'm sure the conference will be a great success.
With returned items, we generally give refunds. Of course, g) Martha is an outstanding speaker and an expert on
I all returned items must be in new condition and financing issues for small businesses.
. . You will notice h) May I recommend Martha Ballard, a colleague of mine?
that-3________________________________ . in the i) Good luck with everything!
•4
1section of our online
order form I attach a copy of this form 1 9 .6 Look back at the second (more friendly) em ail in
exercise 19.5. Tick (S ) the statem ents b elo w th at are
We examined the shoes you returned to us and found that they true about this email.
had been used outside ° _____________________________________ 1 the writer shows he / she values the request
we must therefore 7______________________________________________ _ 2 the writer gives a reason for refusing the request □
We are returning the shoes to you, and you should receive them
3 the writer uses no negative words □
4 the writer makes a helpful suggestion
We look forward to serving you.
5 the writer ends formally as a sign of respect

Brainstorm tw o typical situations where one person has to f Practise reading the script w ith a colleague / friend.
be polite to someone else. You can have a mixture of ■ If you are working in a group, practise reading other
business and non-business situations. people's scripts.
Write the script for each conversation.

83
 Developing an argument - linking words 1
Linking words
R ead the text and then stu d y the b u lle t p oin ts below .
ow do m u ltin a tio n a l c o m p a n ie s o p e r a te in lo d a y ’s
H g lo b a l econ om y?
Although i n f r a s tr u c t u r e
V ie tn a m
is poor
g iv e s us a
and th e r e is a
c lu e .
s h o rta g e of skilled w o rk e rs, In tel h a s o p e n e d a p lan t in
Ho Chi M inh City. T h e re a s o n is c le a r: w ag e le v e ls a re
low In fact, th e y a re a b o u t a th ird of th o s e in C hina.
Intel c o n tin u e s to p ro d u c e c h ip s at its fa b ric a tio n
p la n ts in Irelan d and th e US, but t h e s e c h ip s a re then
e x p o rte d to V ie tn am for th e la b o u r-in te n s iv e w ork of
I" te s t an d a s se m b ly . F ro m V ie tn am , th e y a re re -e x p o rte d
to o th e r c o u n tr ie s in S o u th e a s t A sia. As regards th e
d o m e s tic m a rk e t in V ie tn am itse lf, c u rr e n t s a le s a re
low - m o s t p e o p le c a n o n ly afford a c h e a p d e s k to p PC
u sin g u n b ran d ed co m p o n e n ts. However, w ith a
p o p u latio n of o v e r 8 0 m illio n and in fo rm a tio n -h u n g ry
y o u th s filling the In te rn e t c a fe s , th e re is a lot of
p o te n tia l.
In addition, In te l g a in s b y th e fa c t th a t its
o u ts o u rc in g o p e ra tio n s a re m o re d iv e rsifie d . If th e re
2ll a re a n y p ro b le m s a t its o th e r p la n ts in S h an g h ai,
M a lay sia o r th e P h ilip p in e s , it c a n sim p ly sw itc h
p r o d u c tio n . T h ere is a ls o a c e r t a in d eg ree
c o m p e titio n b e tw e e n th e d iffe re n t fa c ilitie s , and as a
result th e re is d ow nw ard p r e s s u re on w ag es a t th e m
all. Even so, it w ould b e a m is ta k e to a s s u m e th a t th e s e
w o rk e rs s e e th e m s e lv e s a s e x p lo ite d . In most cases,
w o rk e rs in d ev e lo p in g c o u n tr ie s w an t to w ork for
m u ltin a tio n a ls, and th e p ay and c o n d itio n s a re b e tte r
th an at lo ca l c o m p a n ie s.
L o o k b a c k at the sen ten ce b e g in n in g A lth o u g h (lin e 3).
T h ere are actu ally three sep a ra te clau ses:
In frastru ctu re is p o or (in V ietnam ).
There is a sh o rta g e o f sk illed w orkers.
Intel has open ed a p lan t in H o C hi M in h City.
• T h e w riter h as u sed the lin k in g w o rd s an d and a lthou gh
to jo in th ese clau ses to g e th e r and p ro d u ce a m ore
co m p lex sen ten ce. W ith the lin k in g w o rd s, the text is
easier to read. T h e re latio n sh ip b e tw e e n the id eas is
clearer.
• A lso, w ith th e lin k in g w o rd s th e sty le ch an g es. It
b eco m es m ore fo rm al, ty p ical o f a p re se n tatio n , a
m ee tin g o r a rep ort. In an e v ery d ay co n v ersa tio n o r an
e m ail it w o u ld b e n o rm al to use m u ch sh o rte r clau ses.
84
L o o k at the w ord s alth o u g h (line 3), bu t (lin e 8) and h ow ev er
(lin e 14) in the text. A re they the sam e? T h in k a b o u t any
d iffe re n ce s in m e a n in g and use b efo re yo u read the next
three b u lle t points.
• A lth o u g h m a k e s a co n tra st w ith in one sen ten ce. It
in tro d u ce s in fo rm a tio n th at is less im p o rtan t, or
su rp risin g . It can co m e at the b e g in n in g o r in the m id dle:
Intel has op en ed a p lan t in H o C hi M in h City, a lth o u g h
in frastru ctu re is p o o r an d there is a sh o rta g e o f sk illed
w orkers.
• B u t m ak e s a sim p le co n tra st w ith in one sen te n ce and
co m e s in th e m id d le . T h e re is a tren d to r w rite rs to use
bu t at the b e g in n in g o f a sen te n ce to c o n tra st w ith the
p rev io u s sen ten ce, b u t so m e p eo p le th in k th is is not
g oo d style.
• H ow ev er co m es at the b e g in n in g o f a sen te n ce and is
fo llo w ed by a co m m a. It m a k e s a c o n tra st w ith the
p re v io u s sen ten ce, o r e v en the p re v io u s p arag rap h .
O th e r lin k in g w o rd s and p h ra se s in the text are w ritten in
bold . S tu d y th em now.
• S e v e ral lin k in g w o rd s in the te x t sta rt a sen te n ce and are
fo llo w ed im m e d ia tely by a com m a. H o w m an y like this
can yo u find ?
• L o o k at the p h rase as a resu lt o n lin e 23. T h e w riter cou ld
also h av e used it at the start o f a sen te n ce fo llo w ed b y a
of
com m a:
T here is also a certain d eg ree o f com p etition betw een the
differen t fa cilities . A s a r e s u lt, there is d o w n w ard p ressu re on
w ages at them all.
B u t the w rite r d ecid ed th at in this p a rtic u la r case it w as
b e tte r to p u t an d as a resu lt in the m id d le o f a lo n g er
sen ten ce. P erh ap s it seem ed less frag m en ted .
In g e n eral, lin k in g w o rd s sh o w a c le a r co n n e ctio n b e tw e e n
clau ses, se n te n ce s and p arag rap h s. T h e y sh o w the stru ctu re
an d lo g ic o f an arg u m en t. U sin g th em e ffe ctiv ely is a
p o w erfu l co m m u n ica tio n tool.
Types of linking words
T h e m in d m ap o p p o site sh o w s h o w bu t, a lth ou g h and
h o w ev er re p rese n t th re e c a teg o ries o f lin k in g w o rd s. In
a d v an ced g ra m m a r b o o k s they are g iv e n sep a ra te n am es
('c o o rd in a tin g co n ju n ctio n s', 's u b o rd in a tin g co n ju n ctio n s'
and 'd is c o u rs e m a rk e rs'). To av oid these c o m p lica te d term s
m an y b o o k s ju s t u se 'lin k in g w o rd s and p h ra se s' for
ev ery th in g .
N o te: a 'c la u s e ' is a g ra m m a tic a l u n it th at h as a su b je ct and
a v erb (and o ften an o b je ct as w e ll) and fo rm s a sim p le
sen te n ce on its ow n.
 DEVELOPING AN ARGUM ENT - LINKING WORDS

A d d iA ^ A A o - t t a r poiA-t
A lso
A s well as th A t
AAd, but AAd yet
Ia A d d i t i o A
(b u t expresses e^uAl,
besides coAtrAStiA^ ideAS; ye t expresses
Fu rth e rm o re C slie h tly fo rm a I ~>
SoMethiA^ More surprisiA ^’)
M o reo ve r CforM Al
So
E*uphA £i2-iA ^ A C o r-trA £± .
However
Evee So
Ia S p ite o-f th is
( S lig h t ly forM Al")
N e v e rth e le s s
( S lig h t ly forMAl")

& a Ia a c i a ^ wi'fch AA e^ U A l,
co A -trA ^ 'tii^ idfeA
Ia coAtrASt
Oa the o th e r hAAd

Q i v i A ^ A re.£wt-t

T h e re fo re
A s a re su lt
F o r t h is reASDA
&ecAuse o f th is
CoASecjueAtly CforMAl")

C |iv ir ^ A CAW^e.
&ecAuse o f
A s a re su lt o f
Owl A<j t o
Due t o d e v e lo p in g an a rg u m e n t I
L i^ - t ii^ poiA-t£
F i r s t / F ir s t ly
F i r s t o f All
T o be^iA W ith
- S e C o A d ly

TheA
N ext
FiAAlly
T a IK I a ^ ije. A a r A lly

Ia eeAerAl
O a the whole
& ro A dly SpeAkiA^
IA Most / MAAy c a s e s
T o a ijre A t ex te x t

Qi v i A ^ e x A M p le s
w hereA S ( S l i g h t l y fo rm A D ,
F o r ex Ample while ( s l i g h t l y fo rM A O
F o r ixStAAce
such AS d e s p ite , iA S p ite o f

E x p re ^ *iA < j r e A li- t y if , eveA i f , whether, o a C o x d itio A th A t, UAless

IA fACt A ft e r, before, as sooa a s , while, u A til

A s a M A tter o f fA ct becAuSe, SiAce, as
ActUAlly
to, So a s to , iA o rd e r to ,
I a re A lity
T o tell the t r u t h
i a o rd er th A t, So CthAt")
 D Developing an argument - linking words 1: Exercises
20.1 Match one item in each column according to 2 0 .4 W rite w ord s and phrases w ith a sim ilar m eaning.
m eaning. 1 because: as / s . _ _e
inform al form al form al 2 because of: d_ _ t / as a r of / ow
1 and — however as 3 in order to: to / s_ a to
2 but furthermore ~.s consequently 4 in order that: so / so that
3 so since \ nevertheless 5 although: though / e though /
4 because therefore moreover in s________o _ the f _ _ that
6 despite: in spite of
20.2 For each w ord or phrase in bold, underline the
7 whereas: wh
one w ord or phrase in brackets below that is most
sim ilar in meaning.
W hen you finish, substitute these w ords into the
1 Because it has above-average sales and earnings growth, sentences in exercise 20.2 and read them aloud. This
Glaxo is a favourite on Wall Street. w ill help you to rem em ber the variety that is available.
(Since / Due to / Therefore)
2 Because of its above-average sales and earnings growth, 2 0 .5 Com plete the conversation extract below w ith the
Glaxo is a favourite on Wall Street. w ord s in the box. Look carefully at the logic of the
(Since / Due to / Therefore) argum ent.

3 Apple needs to constantly update its product line, in also because o f hut so
order to stay ahead of other consumer electronics
companies like Sony and Samsung. Yes, people say there's been a lot of damage to US industries
(so that / so as to / ow ing to) because of China. 1 , if you look at the
4 Apple needs to constantly update its product line, in figures carefully, the situation isn't so bad. Jobs have been lost
order that it can stay ahead of other consumer electronics in manufacturing, that's true, but new jobs have been created
companies like Sony and Samsung. in the service sector. 2 . , the US trade figures
(so that / so as to / ow ing to) w ith East Asia aren't that bad. W hen you look at the whole
region, the deficit has stayed more or less the same for several
5 Although the core rate of inflation rose only 0 .2 % in
years. Surprised? I'll tell you the reason - it's
January, analysts are concerned about higher energy costs.
globalization. Yes, China has been
(In spite of the fact that / In spite of / So that)
growing, but a lot of that growth is because it assembles
6 Despite the low rise in the core rate of inflation in
goods that were previously made in other Asian countries.
January, analysts are concerned about higher energy costs.
4. , at the end of the day, the US ii importing
(In spite o f the fact that / In spite o f / So that)
the same am ount of stuff from Asia, but now it's all made in
7 Nokia is strong in Europe, w h ereas Motorola is strong in China.
the US.
(as / though / while) 2 0 .6 Com pare the version of the sam e text below . It is
8 Nokia is strong in Europe, although Motorola is giving it more form al, and typical of a w ritten report. Complete
very strong competition. it w ith the w ords in the box.
(as / though / while)
consequently due to furthermore however
20.3 Underline the correct words in italics to make
grammar rules. The answ ers to exercise 20.2 will help you. It is widely thought that there has been substantial damage
1 Because / Because o f is followed by a clause (subject + to specific US industries as a result of competition with
verb), while because / because o f is followed by a noun or China. : , if you look at the new service
noun phrase (no verb). jobs created as a result of trade with China, the actual net
2 In order to / In order that is followed by subject + verb, loss in American jobs is marginal. 2 _ , the
while in order to / in order that is followed immediately by US trade imbalance is not as bad as many commentators
the Infinitive form of a verb. claim. In fact, when we consider the East Asia region as a
3 Although / Despite is followed by a clause, while although whole, the deficit has remained basically the same around
/ despite is followed by a noun or noun phrase. 30% - for several years. What is the reason for this relatively
4 Whereas / Although introduces something surprising, while stable trade deficit? It is 3 increased
whereas / although just compares two facts of equal economic integration within the Asian market. Chinas
importance and emphasizes the difference between them.

86

2 0 .9 Com plete this te xt by w ritin g the best w ord or
exports have risen dramatically, but that’s largely because
phrase from those in the box. Look carefully at the logic
Japanese, Korean, Taiwanese and Singaporean companies
of the argum ent.
have been moving their own production to the Chinese
mainland. 4 ___ _ _ _ _ _ , the US is importing a
similar amount of goods from Asia as before, but the trade
has a different pattern. Much of the business is done with
pre-existing non-Chinese trading partners who have simply
relocated their operations to China.
20.7 Com plete each exam ple w ith the best pair of
linking phrases from the box. Look carefully at the logic
of the argum ent.
As a matter o f fact / For instance Broadly spcoking / Therefore
In fact / To a great extent On the whole / However
1 Broadly speaking _ _ sales and marketing are not
coordinated very w e l l .__________Therefore , we
should reorganize the department.
2 open source software like
Linux is making a big impact in the world of IT.
, it is unlikely to threaten
W indows' dominance in the mass market.
3 ________________________ , she has quite a lot of
experience in the sales area.
she worked as a rep in France for two years, going to all
the trade fairs and speaking directly with customers.
4 _____________________________ , quality is not just a technical
and production issue. _ it is also
a design issue: products have to appeal to a customer's
aesthetic sense.
2 0 .8 Look at the box in exercise 20.7 and find:
1 two phrases that mean the same as 'Actually':
2 two phrases that mean the same as 'In general':
Choose o ne of these texts: H o w do multinational
com panies operate in today's global econom y? (page 84)
or In com ing decades, a key challenge for countries in the
euro zone is going to b e its aging population, (page 87).
20 DEVELOPING AN ARGUM ENT - LINKING WORDS 1
as as a result -etoe-te- even if finally
in fact in spite o f on the other hand
n coming decades, a key challenge for countries in the
I euro zone is going to be its aging population. 1 ■
low fertility rates and a lower mortality rate amongst older
people, the share of the working-age population will fall from
around 67% now to just 56% in 2050. This will create
problems for the tax system s of the countries concerned.
, some people think this is the
greatest long-term challenge that Europe faces. The reason
is as follows: governments will have to raise taxes on the
working population to fund pension system s, otherwise
elderly people will vote them out of office. This rise in taxes
can only come from company profits and em ployees’
s a la rie s .3 , companies will have
less money to invest in their businesses and the purchasing
power of consumers will fall. This will create a vicious cycle
4 _________ it m eans lower economic growth
and therefore, in turn, less profits and taxes.
What options do governments have?
b more women and long-term
unemployed people take jobs, it will not be enough to solve
the problem. It seem s that there are three answers. First of
all, workers will have to retire later. Next, private pension
schem es will have to become far more widespread. And
, economies will surely depend
much more on immigration to sustain economic growth. It is
true that increased immigration has caused social problems
in many countries. But, 7
immigrants have been prepared to do work that natives
won’t do, working for long hours and low pay. And
immigrants are young, and young people are what Europe
increasingly needs. S o ,8 the
problems, their numbers are likely to grow.
Read the text again several times, then w rite the first
sentence at the top of a separate piece of paper.
Write another text beginning with the same first sentence.
Use your ow n ideas. Feel free to refer to the mind map as
you write.
87
 Developing an argument - linking words 2
Developing an argument
R ead the d ialo g u e and then stu d y the b u lle t p o in ts below .
A: Have you seen this article about 'peak oil'? It seems
that most of the oil in the ground has already been
discovered, and production in the Middle East is slowly
declining. It's quite worrying if you stop to think about
5 1( '*•
B: Obviously you're a pessimist. What about the ability of
markets to come up with a solution? Look, for one
thing, as the price of oil goes up, all sorts of other
energy sources will become economically viable. And
for another, I'm sure that technology will help us - it
always has in the past.
A: But it's different this time. To begin with, China and
India are growing so fast - just imagine the oil
consumption if they all had cars like in the west. And
then there’s global warming - we can't just go on
releasing greenhouse gases like we do now. We must
do something about it, otherw ise it'll be a disaster.
B: As far as China and India are concerned, there's
plenty of new technology to replace oil: wind, solar,
tides, bio-fuels, natural gas, Canadian oil sands, fuel cell
technology, not to mention nuclear. When the cost of
energy rises enough, they'll all get developed. And it's
true that there may be a problem with global
warming, but what can we do as individuals? The
temperature of the world has been changing since time
began - think of the ice ages.
A: To be honest, I don't think you're aware of how
serious things are. Of course there's always been
climate change, but even so all scientists agree that
this time it's because of human activity, and the
situation is getting worse. Unless we do something,
w e just w on't be able to have the same lifestyle that
we do now. And there are lots of things that individuals
can do. Firstly, we can all reduce our energy
consumption by driving smaller cars and flying less, and
secondly there are ways to conserve energy in the
home - better insulation, that kind of thing.
B: Ironically, you are the one who flies all over the world
on -=xotic holidays. But as regards energy conservation,
yes I do agree with you. In general we should try to
consume less energy, although I still think it's higher
prices that will make people do that, not their green
conscience.
A: By the way, on the subject of 'green conscience',
have you heard that there's a new vegetarian restaurant
near the university? Apparently it's quite good.
8X
In the d ialo g u e there are lin k in g p h ra se s that allo w the
sp e a k e r to m ak e a p erso n al com m en t. E x a m p le s are: it
seem s that, obviou sly, to be hon est, iron ically and apparently.
Fin d these w ord s in the text and ch e ck their use in the
m ind m ap.
T h e re are also lin k in g p h ra se s in the d ia lo g u e th at allow
the sp e a k e r to m ak e tw o related p o in ts. O n e ex am p le is:
f o r on e thing ... a n d f o r an other. C an you find tw o m ore
e xam p les?
• A n o th e r im p o rta n t tech n iq u e for d ev e lo p in g an
a rg u m en t is to first co n ce d e a p o in t (y es and then
d ism iss it ( ... bu t n ot in this case). O n e e x a m p le in the
d ialo g u e is: it's true that ... bu t .... C an you find one
m ore?
A related tech n iq u e is to first g e n eralize , and then
q u alify (lim it) y ou r g e n era liz a tio n . T h e re is o n e exam p le
- can y o u fin d it?
T h ere are also tw o e x a m p les o f stru ctu re s th at a
g ra m m a r b o o k w o u ld call 'c o n d itio n a ls', in o th e r w o rd s
sa y in g w h at w ill h a p p en in ce rta in circu m stan ce s. C an
you fin d them ?
In relatio n to form ality, all the la n g u a g e listed in the
m ind m ap u n d e r 'M a k in g a p e rso n a l co m m e n t' is
in fo rm a l (co n v e rsa tio n an d e m a ils) and e v ery th in g else
is slig h tly m o re fo rm al (carefu l sp e ech , m eetin g s,
p rese n tatio n s, rep orts, etc).
Contradictory points
A n y sp e a k e r or w riter w ho is d ev e lo p in g an a rg u m en t has
to sh o w th at they h a v e co n sid ere d sev eral p o in is o f view,
in clu d in g those th at go a g a in st th eir o w n arg u m en t. In real
life th in g s are n o t b la ck and w h ite and th ere are e xcep tio n s
to any g en eral ru le. B y d ealin g w ith th ese con trad icto ry
p o in ts y o u d em o n stra te m o re co m p lex th ou gh t, and the
listen er is m ore likely to be im p re sse d and p e rsu ad e d . In a
b u sin e ss rep o rt or u n iv e rsity p ap er this style is e xp ected .
In the d ialo g u e abo v e you saw som e e x a m p les o f this kind
o f lan g u ag e: the p h rases fo r 'C o n ce d in g a p o in t b u t then
d ism issin g it' and 'G e n e ra liz in g and then q u a lify in g '. T h ere
is an ad d itio n al b ra n ch o f the m in d m ap th at lists eig h t
co m m o n lexical stru ctu re s fo r d iscu ssin g co n trad icto ry
points. T h ey are all fixed ex p re ssio n s: use them e x actly as
th ey are here.
 21 DEVELOPING AN ARGUM ENT - LINKING WORDS 2

O a the oae hand Vow heard £oMethia*ij, but a re a c t £ure

but oa the other !-t seeiMS th a t, Appareatly
i^ o M e t h ia ^ \ f -tru e , but £ u r p r i£ ia ^

Actually, la fa c t, .^traa^ely eaowjh,

E>elieve i t o r aot
^oMethia^ M obvious or already known
Uader aorMal circuMStaaceS . C le arly, Obviously
but l a the cu rre at Situ atio a
Cfood / E>ad -fortune
Fortunately, Luckily, U n fortunately, Cadly

^Ayia<j what you really think

To be honest, Frankly
.Saying SoMethia^ con-fidential
\ 6>etween you aad Me,
\ Please doa t repeat th is but ...
O th er phra^e^
. Hopefully, A w a tia ^ ly,
'J Iroaically, Understandably,
1 Predictably, PreSUMably

) M a k in g t w o r e la t e d p o in t #
F ir s tly ... aad Secoadly ...
To bedin with ... aad thea ...
VJ For oae thifvj ...
/I aad fo r aaother ...
la the f ir s t place ...
aad thea oa top o f th a t ...
C o n c e d in g a p o ia t , b u t
b E V E L O P lN Q A N A R Q U M F N T 2 t h e a d i£ M i£ £ ia <3 i t
It 's tru e t h a t ... but ...
O f course ... but evea So ...
C e rta ia ly ... however ...
AdM ittedly ... but nevertheless ... CfonuaO
g e n e r a liz in g a a d t h e a ^ u a li-fy in ^
la general ... although ...
O a the whole ... but ...
la Most cases ... however ...
A n n o u n cin g a ch an g e o-f
S u b je c t ia a d v a a c e
A s regards ...
Regardia^ ...
A s f a r as ... is coaceraed
la relation to Csli^htly foriual')
With refereace to ... CfoTMaO

C h a a ^ ia ^ t h e t o p ic
., it 'll probably Meaa th a t
We Must ..., otherwise ... &y the way,
Ualess ..., i t will... Incidentally, Csli^htly foratal')
Talking about ... /
O a the Subject o f ... S

89
© Developing an argument - linking words 2: Exercises
21.1 Study a)-e), noticing the phrases in italics.
a) For one thing it's too expensive, and for another the
design is quite old-fashioned.
b) /As far as the press conference is concerned, w e need to
reassure everyone that the situation is under control.
c) Yes, all our jobs are going to be at risk if the merger goes
through. Incidentally, did you manage to get any tickets
for the game on Saturday?
d) In general her decisions about marketing strategy are very
good, although on this occasion I think she has overlooked
the importance of the Internet.
e) O f course Silvia has a lot of experience in this field, but
even so I think the project is too big for just one person.
Now match each phrase in italics above to the one
below w ith the closest m eaning. W rite the sentence
letter in the box.
1 By the way, ... □
2 As regards ... □
3 Admittedly ... , but nevertheless ... □ Spain represents only 2% of
4 On the whole ... , but ... □ global GDP,
5 In the first place ... , and then ontop of that ... □ some multinationals that are major players on the global
Say sentences a)-e) aloud w ith both alternatives.
21.2 Fill in each gap w ith a w ord from the box. Several
answ ers may be possible, but one solution uses all the
w ords in an appropriate w ay.
Actually Amazingly Presumably Clearly
Frankly Ironically Predictably Unfortunately
1 A: Can you help us with this email? It's written in Spanish.
B: A ctually, |'m Brazilian, so I speak
Portuguese not Spanish. But I'm sure I can help you.
2 The trend in IT is for software and data to migrate from
the individual PC to the network.
this is quite like the situation with mainframe computers in
the seventies and eighties.
3 . , w e can get the information quite
easily from Google. But I haven't actually looked for it yet.
4 _____________________________, the original 19th-century London
Bridge is now in the Arizona Desert! It was sold in 1962 to
an American oil millionaire, dismantled, and then
reassembled brick by brick. It is now a major tourist
attraction.
5 Hello? Is that Melanie Bryant? Yes, it's about your order.
w e're having some problems
processing your payment. Can you check at your end to
make sure it's been authorized?
90
6 A: They say they can deliver the materials by the end of
the month.
B: . , I don't care. We've already
had one bad experience with them and I think we
should look for another supplier.
7 , if they w ant a tailor-made
version, they'll have to give us detailed specifications. I'm
sure they know that.
8 Cadbury Schweppes announced a cut in its expected
earnings on M o n d a y._____________________________, the whole
food and beverages sector saw lower share prices
following the announcement.
2 1 .3 Com plete the text w ith the structures in italics.
Note that they all need tw o gaps.
As far as ... is concerned ... Firstly ... Secondly .
Unless ... it w ill... In most cases ... b u t ...
It is true th a t.. how ever...
it has oroduced
stage. What are the reasons for this su c c e ss?
2 ___________ ____________ , they have focused on what they
do best: large-scale operations. Exam ples include
Telefonica (telecommunications networks), Repsol and
Iberdrola (energy) and Ferrovia! (infrastructure).
, they have made significant
moves into Latin Am erica, taking advantage of the
common language and culture. Banks like Banco
Santander and BBVA have been very active in these
markets. 3_____________________________ these su c c e ss stories
have been large, publicly listed companies,
some family-owned firms have
also done well. Exam ples include Freixenet, the leading
exporter of sparkling wines to the US, and Inditex, the
owner of the Zara clothing brand.
the future
___________ , competition is going to get
tougher. By concentrating on Latin Am erica, Spanish
com panies have already picked the tow-hanging fruit’.
There are some major challenges ahead, especially in
terms of top management. 5 _ these
com panies develop more senior executives with
international experience, be
difficult to expand into the rest of the world.

21.4 R eview som e conditional structures. Fill in the
gaps w ith these w ord s: in case, otherw ise, p ro vid e d
that, unless, w hether.
1 w e have managers with
international experience, w e w on't be able to compete in
the global marketplace.
2 w e have managers with
international experience, w e will be able to compete in the
global marketplace.
3 We need managers with international experience,
_ . w e w on't be able to compete
in the global marketplace.
4 Our ability to compete in the global marketplace depends
on or not w e have managers
with international experience.
5 We need to start recruiting some senior managers who
speak Spanish, . _ one day we
w ant to enter the Latin Am erican market.
21.5 A n sw e r th ese tw o questions, choosing from the
w ords and phrases in italics in exercise 21.4:
1 Which one means the same as all of these: on condition
that / as long as / if and only if?
2 Which one is used in almost the same w ay as if, but (i) it is
more common when there is a choice between two
possibilities, (ii) it is more common when the word or is
also used and (iii) it is used before an infinitive (so NOT I
can't decide i f to g o to the con feren ce)?
21.6 Look at the sentence in the box, and in particular
the form of the w o rd s in italics.
If w e recruit som e Spanish-speaking m anagers, w e will be able
to operate in Latin A m erica.
N ow fo llo w th ese instructions:
1 Make the sentence in the box less certain - it is just a
hypothetical idea in the mind of the speaker.
If w e ________________________________ som e Spanish-speaking
managers, w e able to open an
office in M exico.
2 Make the sentence in the box about the past. The speaker
is expressing regret because they didn't recruit any
Spanish-speaking managers.
If we _ . som e Spanish-speaking
managers, w e _ able to open an
office in M exico.
Choose a topic for a short report. If you are a student,
choose an academic topic related to your course. If you are
working, choose a typical report from real life. In either
case, think of something where the issues and arguments
are quite complex.
21 DEVELOPING AN ARGUM ENT - LINKING WORDS 2
3 Make the sentence about the past again. This time the
speaker is expressing relief - they did recruit Spanish­
speaking managers and because of this they w ere able to
open the office.
If w e ________________________________ any Spanish-speaking
managers, w e ________________________________ . able to open an
office in M exico.
Remember that all modal verbs are possible in
conditionals. For example, may / m ight could be used in
1 above to make the result less certain than would.
2 1 .7 Choose a phrase from the box to com plete each
sentence below . Several an sw ers are possible each
tim e, but one solution uses all the w o rd s in an
appropriate w ay.
-On the orrehand ... but on the-other...
A t firs t... but in the end ...
A t the time ... but in retrospect...
On p a p e r... but in reality...
On the surface ... but deep down ...
Under normal circumstances ... but in the current situation
In the short term ... but in the long term ...
On the one hand the quality is good,
but on the other the price is quite high,
she w as quiet and shy,
she knew w hat she wanted and
w as determined to get it.
_ . Hong Kong Disneyland looks
like it should be a great success,
it will be a challenge to adapt the Disney form ula to such
a different culture.
______________________________I found my M BA course very
difficult, _______________________________ I got used to the
workload and started to really enjoy it.
w e need to establish our
presence in the m arket and increase the visibility of the
brand, .. „ .. profitability will of
course be the number one objective.
I would agree with you,
_____________________ .. I just don't think w e can afford
to take any risks. Let's put your suggestion on hold and
discuss it again in six months.
. it w as difficult to leave my job
at 28 and invest time and money in an MBA,
______________________________ . it was the best career move I
ever made.
Note: in the end (#4 above) means 'finally' or 'eventually',
while a t the en d refers to the last part of something.
Write the report. Feel free to refer to the mind map.
9)
 Developing an argument - linking words 3
Developing an argument
R ead the text and then stu d y the b u lle t p o in ts below .
e v e r b efo re has b u s in e s s e th ic s b e e n s u c h a h o t
N to p ic . A s u c c e s s io n of s c a n d a ls
c o r p o r a tio n s like E n ron , W orld C om and T y c o c a u s e d
at m a jo r
th e US C o n g re ss to p a s s th e S a rb a n e s -O x le y A ct in
20011 - a m a jo r p ie c e o f an ti-frau d le g isla tio n . Some
people argu e that a c o m b in a tio n of an ti-frau d and
e q u a l o p p o rtu n itie s law s is en o u g h to e n s u re e th ic a l
p r a c tic e s , and up to a point, th e y m ay b e rig h t. After
all. A m erican b u s in e s s d o e s s e e m c le a n e r and faire r
10 th e s e d ay s. B u t o n th e o th e r h an d , th e s e law s o n ly
c o m e in to p lay a fte r a c r is is h a s o c c u r r e d , and a re
p red om in an tly c o n c e r n e d w ith a r e a s like fin a n cia l
re p o r tin g , c o n t r a c t s a n d d is c r im in a tio n . W hat
com p an ies really n eed is a s e t of s ta n d a r d s and c o d e s
th a t d e s c r ib e w h at is e th ic a l an d u n e th ic a l in th e w ider
sen se of s o c ie ty an d th e e n v iro n m e n t, and th a t
p re v e n t p ro b le m s from h a p p en in g . M o reo v er, th e s e
s ta n d a r d s and c o d e s h a v e to b e co n sid erab ly m ore
e ffe ctiv e th an in th e p a s t. F o r e x a m p le, high -lev el
20' m a n a g e rs n e e d to tak e p e rs o n a l re s p o n s ib ility for
d e t e c tin g an d p r e v e n tin g m is c o n d u c t . L ikew ise,
w h is tle b lo w e rs low er d ow n in th e o rg a n iz a tio n w ho
re p o rt m is c o n d u c t m u st b e p ro te c te d .
From a financial point o f view, h av in g a s tro n g
e th ic a l p o lic y c a n b e g o o d fo r b u s in e s s . C o n su m e rs
d islik e c o m p a n ie s th a t e x p lo it c h e a p la b o u r in p o o r
c o u n trie s o r h arm th e e n v iro n m e n t, an d ‘c o r p o r a te
s o c ia l r e s p o n s ib ility ’ h a s b e c o m e a key p a rt of b ran d
im age. Of c o u r s e a c o m p a n y ’s s o c ia l au d it is still
30 relatively less im p o rta n t than its fin a n c ia l au d it. B u t it
is in a sen se a v ic to r y fo r e th ic a l c a m p a ig n e rs w hen,
fo r ex a m p le, th e an n u al re p o rt of a c o m p a n y n e e d s to
list its c o n trib u tio n s to s o c ie ty in o rd e r to k e e p th e
s h a re h o ld e r s happ y.
T aking all th is in to c o n s id e ra tio n , I am
con vin ced th a t e th ic a l c o n s id e r a tio n s will h a v e a
grow ing im p o rta n c e in th e c o m p a n y of th e fu tu re. It is
tru e th a t g o v e rn m e n t le g is la tio n a lre a d y e x is ts in
m an y a re a s , b u t c e r ta in c o r e v a lu e s like integrity,
■ h o n e s ty , fa ir play, c o m m itm e n t to d iv e r s ity and
in v o lv e m e n t in th e c o m m u n ity n eed e x tr a s u p p o rt.
T h e y a re to o g e n era l to b e credited o r d efe n d e d by
law s, yet s tro n g le a d e rs h ip in th e s e a re a s c a n s e t an
ex am p le to e m p lo y e e s all th ro u g h th e o rg a n iz a tio n .
• L o o k at the w o rd s in b o ld ab o v e, and the m ind m ap.
Find:
- three stru ctu re s in the text listed in the m in d m ap
u n d e r O pin ions.
- three stru ctu re s listed u n d e r F ocu sin g.
-
-
one w ord listed u n d e r E m phasizin g.
one p h rase listed u n d e r C on clu din g.
N otice the lin k in g p h rase after all on lin e 8. It m ean s 'w e
m u stn 't fo rg et th at'. It d o es N O T m e an 'fin a lly '/ 'a t
la s t'/ 'in the e n d '.
• N o tice the lin k in g w ord y et on lin e 43. It is the sam e as
'b u t d esp ite th is'. T h e re is m o re sen se o f su rp rise than
s im p ly 'b u t'.
T h e re are fiv e o th er lin k in g stru ctu re s th at are n o t in
bo ld b e ca u se th ey h a v e alre ad y b e e n m en tio n ed in
p re v io u s un its. Find :
- one fo r m a k in g a con trast.
- one fo r a d d in g a n o th e r p oint.
- one fo r g iv in g an exam p le.
- one fo r say in g so m e th in g alre ad y kn ow n.
- one fo r co n ce d in g a p oint, b u t then d ism issin g it.
• S tu d y the O pin ion s s ectio n o f the m ind m ap . N otice h o w
y ou can v ary y ou r la n g u a g e (in stead o f a lw ay s w ritin g I
thin k o r In m y opin ion ).
Focusing structures
A t lin e 13 y o u can see the p h ra se W hat com p an ies really need
is .... L o o k u n d e r F ocu sin g in the m in d m ap to find m ore
e x a m p les o f this stru ctu re.
A t lin e 1 y o u can see a p h ra se b e g in n in g w ith a n eg ativ e
freq u en cy ad v e rb : N ev er before h a s b u s i n e s s e t h i c s b e e n ....
W h en y ou fo cu s on n ev er by p u ttin g it at the b e g in n in g you
in v e rt the n o rm a l su b je c t/ a u x ilia ry w o rd o rd er (B u s in e s s
e t h i c s h a s n ever before been ...) . S e e th e m in d m ap for oth er
p h rase s th at can be u sed in this way.
Adverb + comparative adjective
L o ok at lin e 18 con sid erab ly m ore effectiv e an d lin e 30
relatively less im portan t. W h y ad d the w o rd s 'c o n sid e ra b ly '
and 're la tiv e ly ' w h e n the sen te n ce is o k ay w ith o u i them ?
T h e an sw e r is th at it m ak es the co m p arison m ore m easured
- it so u n d s lik e y o u h av e c o n sid ere d the c o m p a riso n m ore
carefully. A d v e rb s u sed in th is w ay are:
- f a r / m u ch / co n sid erab ly / sig n ifican tly / su bstan tially
(m ore effectiv e).
- relatively / so m ew h a t (m ore effectiv e).
- slig h tly / m arg in ally (m o re effectiv e).

Above All, Ia pA rticulA r
P A rticu lA rly, EspeciAlly
MAiAly, M ostly, PriACipAlly, FWdoMiAAAtly
.^pecifiCAlly
C o M j»A .ri£oA
Ia COMpAriSoA w ith, CoMpAred to
^ iM iU r i- t y
^iM ilArly, Likewise, Ia the SAMe wAy
E x c e ^ - tio A
A p A rt -froM, Except fo r
E x p lA ifd N ^
ia other* words, to put it AAother wAy,
th A t IS, ie
To put i t SiMply
&ASlCAlly CiAEorMAl"), T o Siam Up,
IA sh o rt, IA SUMMAfy
C o A c lu d ii^
A ll i a a !! CiAEorMAl'),
A ll thiA^s coASidered CiAforMAl-),
O a b A lA A C e , Ia
V T a Ic i Ad All th is lAto coASiderAtioA
D EVELO PS AN
ARGUMENT 3
FAr / M u c h / CoASiderAbly / ^idA ificAA tly /
^ ubstA A tiA lly (M o re e f f e c t iv e ')
RelA tively / ^oM ewhAt CMore e ffe c tiv e " )
^ li^ h tly /M A r^ tA A lly (M o re e ffe c t iv e " )
DEVELOPING AN ARGUM ENT - LINKING WORDS 3
F fe rS o A A l o p iA io A
IA M y O p I A i o A / V ie w
I r e A lly b e lie v e th A t
I AM C O A V iA C e d th A t
Less c e r tA iA :
To M y w A y o f thiAkir^ ...
It SeeMS to Me th A t ...
L i Mi te d kAowled^e:
A s T u * AS I k.Aow ...
To th e best o f My kAowledde
cJ-UAli+iad o p iM o e
ioM C people Ar^ue th A t ...
People oEteA c I a i m th A t . . .
People teAd t o believe th A t ...
T h is Cwill") MAy CAuse ...
(AH') The M Ajority oE MAAAders ...
p A r-tiA lly -true. sfrvte.Me.A~fc
Up to a potAt, Ia a seASe,
Ia a w A y, To SoMe decree / e xteA t,
Co a c Iw S i d a , To a liMited d e cre e / e x t e A t
WhAt coMpAAies reAlly Aeed is
WhAt we wAAt EroM you is .
WhAt I will do E ir s t is ...
The th i a^ th A t iMpreSSed
Me MOSt was ...
The OAe thiAd th A t
w orries Me is ...
N e ^ A -tiv e -fre^ u e A C y
N ever befo re hAS ...
UAder a o circuMStAAces c a a we
O a a o a c c o u a E Must we ...
O a
At
ad
ao t iM e
C o A d it io A
hAve I ...
w il l w e ...
O a Iv
O a N
oa
iA
rA re
SoM e re sp e cts
o c c a S io a s hAve
do I ..
we
Field o f ralavAAce
FroM a techA iCA l/EiaaacIaI /
coMMerciAl / A d M iA is trA tiv e /
ethicAl poiAt o f view
TechAicAlly SpeAkiAd
. FiAAACiAlly SpeAklA^
/
93
 Developing an argument - linking words 3: Exercises
22.1 Put these phrases in order, from 1 (m ost careful
and m easured) to 4 (m ost certain).
a) I believe that ...
b) I firmly believe that ... Q
c) It would seem to me that ...
d) It seems to me that ... ;
Now do the sam e for this group of phrases, again from
1 (most careful and m easured) to 4 (m ost certain).
e) I tend to think that ... □
f) I feel it is possible that ... □
g) I am convinced that ... Q
h) I would argue that ...
22.2 In form al w riting you often qualify a general
opinion so that it sounds m ore m easured. Tick (✓) the
phrase from each pair th at is more typical of form al
w riting.
1a Everybody knows that ...
1 b Many people believe that ...
2a Companies tend to ...
2b Companies always ...
3a All managers ...
3b The majority of managers ... □
4a Not everybody believes that ...
4b Nooody believes that . .
5a People always say that ...
5b Some people argue that ... □
6a This may cause problems because ... □
6b This will cause problems because ...
22.3 Fill in the m issing letters.
1 ___ apoint, this is true.
2 _ _ a sense, this is true.
3 _ _ a certain e t, this is true.
4 _ _ a limited d _ee, this is true.
5 _ _ the b of my knowledge, this is true.
6 _ _ fa r Ik _, this is true.
22.4 Rew rite the sentences using W h a t... is ... to focus
on the topic. The first exam ple has been done for you.
1 Companies need a set of standards.
What companies need is a set o f standards
2 I'm talking about a completely new approach.
3 We w ant good quality at competitive prices.
4 I would like to have a chance to speak to him.
(Be careful w ith the next three exam ples - a form of do
is also needed.)
5 I will first give you the history of the project.
What I will do first is give you the history o f the project
6 We mustn't go over budget.
7 We should employ more local staff.
2 2 .5 Rew rite th e sentences starting w ith the
underlined w ords.
1 Business ethics has never before been such a hot topic.
Never before has business ethics been such a h ot topic.
2 W e can under no circumstances accept this deal.
3 This information should on no account be shown to the
press.
(Be careful w ith th e next tw o exam ples - a form of do
is also needed)
4 I agree with you only in some respects.
5 W e do business w ithout a bank guarantee only on rare
occasions.
2 2 .6 The phrases in italics are all in the w rong
sentences. Put them back into their correct places.
1 From a com m ercial poin t o f view, it is now possible to
prevent the body's organs from deteriorating. It requires
very large doses of controversial dietary supplements such
as human growth hormone, DHEA, antioxidant vitamins,
glucosamine, Omega-3 and more.
2 From a technical poin t o f view, anti-aging drugs are going
to be big business as the 'baby boomer' generation passes
through retirement.
3 From a legal poin t o f view, having anti-aging drugs cheap
and freely available is going to be very popular - retired
people make up a high proportion of the voting
population.
4 From a political poin t o f view, anti-aging drugs raise
important questions. For example, should patients first get
a DNA test to make sure that they will benefit? And who
_______________
tells them if this test shows they have a high probability of
dying within the next few years?
5 From an ethical point o f view, anti-aging drugs need
careful regulation so that they do not expose their
manufacturers to lawsuits by making false claims.
 22 DEVELOPING AN ARGUM ENT - LINKING WORDS 3

2 2 .7 Match an inform al phrase from Group A w ith a 22.11 Com plete the text using the linking w o rd s from
more form al phrase from Group B. the left-hand colum n in exercise 22.10. Think carefully
Group A about the logic of the argum ent.
1 it's a bit more expensive ~
the issue of blocking a c c e s s
2 it's more expensive - but not much more
3 it's far more expensive [H to certain Internet sites by governments, the topic of
'intellectual copyright’ is probably the key ethical issue for
Group B
the Internet age. Intellectual copyright refers to the
a) it is considerably more expensive
ownership of a creative work. If you pay for and download
b) it is som ewhat more expensive
c) it is slightly more expensive an mp3 music file for personal use, that is legal, but what
about if you then place it on your hard disk for peer-to-
22.8 Study the position of particularly and in particular peer sharing? In the first case , the m usicians get paid, in
in relation to a noun phrase: the second they don’t . 2 . , an
Business ethics is a ho t issue, particularly fair trade. author doesn't get paid if you photocopy their book, and a
Fair trade in particular has becom e a h o t issue in business software writer doesn’t get paid if you distribute a pirate
ethics. copy of their program. What about the movie industry?
W hich one of the above could also be used at the 3 the m usic and publishing
beginning of a w h o le sen tence? industries mentioned above, they have been considerably
, fair trade has become a hot issue. more successful in protecting their intellectual property.
However, as Internet download sp eed s increase, file
2 2 9 Look at th ese tw o sentences: sharing of movies may also becom e a possibility.
The softw are is designed particularly fo r classroom use. 4 , it looks like all the
The so ftw a re is designed m ainly for classroom use. creative industries are at risk from digital technology. Does
1 Which tw o of the formal adverbs in the box below mean this matter? The answer is yes. If m usicians, authors,
the same as particularly? actors, film m akers, software writers and others don’t
2 Which tw o of the formal adverbs in the box below mean receive an income, they won’t continue to work to produce
the same as mainly? high-quality products. In theory, it is easy to see that this
situation is wrong, but in practice it is difficult to persuade
especially principally predominantly specifically
yourself to pay for something that you can get for free.
5_ ___________ , it is probably better to have
2 2 .1 0 Fill in the gaps using these prepositions: for,
some sort of regulation so that everyone pays, otherwise
from , in, in, into, on, to, w ith. Then m atch a structure
from the left colum n w ith one from the right. the creative industries will enter a slow decline.

1 apart . to put it briefly

2 comparison except 2 2 .1 2 Match these initials to th eir m eanings: eg, ie.

3 short likewise 1 for e xa m p le _____ 2 in other words __________

4 balance c o m p are d .
You can also w rite these w ith full stops: e.g. and i.e.
5 similarly taking everything
consideration Now com plete each sentence w ith eg or ie.
3 Scandinavian countries ( . _ Norway, Sweden,
Denmark, Iceland and Finland) tend to be early adopters of
mobile communication technology.
4 Scandinavian countries ( Norway and Sweden) tend
to be early adopters of mobile communication technology.

Re-read the texts Never before has business ethics been
such a ho t topic (page 92) and A part from the issue o f
blocking access to certain Internet sites by governm ents,
the topic o f 'intellectual copyrigh t’ is probably the key
ethical issue fo r the Internet age (page 95). This will
remind you about some issues in business ethics.
Do some Internet research. Type the words 'corporate
social responsibility' into a search engine.
Now write a short report with the title 'Corporate social
responsibility'.
When you finish (if you are w orking in a group), read
each others' reports. Have a discussion.

95
 Writing paragraphs
Topic sentences and unity
H ere .ire som e facts a b o u t tren d s in the c o n su m e r go o d s
m arket:
High-end products: growth in m arket share
Mid -ange products: decline in market share
Low-end products: growth in m arket share
Stud y the sh o rt texts b e lo w ; they are a ltern a tiv e w ay s of
p resen tin g the facts abov e.
V ersion A
’ C on su m ers at the high en d are 'tra d in g up ', paying a
prem iu m p rice fo r highly b ran d ed , luxury prod ucts.
i Aml at the low en d they are ‘ trad in g dow n’, sp en d in g as
little as possible on basic, fu n ctio n a l prod u cts !T1iis is
h ap p en in g all over the world - leaving the m id dle in
d eclin e. ’B etw een the two poles lies a vast ran ge o f
ordinary, b o rin g prod u cts that are rapidly losing m arket
share.
Version B
’All over the world, c o n su m e r m arkets are dividing into a
high en d and a low en d - leaving the m iddle in d eclin e .
h\t the high e n d , co n su m ers are ‘trad in g u p ', paying a
p rem iu m p rice fo r highly b ran d ed , luxury produces
’’A m : at the low en d , they are ‘trad in g d ow n', sp en d iitg as
little as possible on b asic, fu n ctio n al prod ucts. 'B etw een
the two poles lies a vast ran ge o f ordinary, b o rin g
prod ucts that a ic rapidly losin g m arket share.
V ersion A is not so e asy to follow . W hy ?
- S e n te n ce 1 p resen ts an id ea, b u t w e h av e n o t b een
prep ared m e n tally w ith an y c o n te x t and so the
p a ra g ra p h b e g in s too sud denly.
- 2 fo llo w s w ell, g iv in g a co n tra stin g idea.
- 3 is stran g e: in stead o f c o n tin u in g the a rg u m en t, it
in tro d u ces a n ew id ea ('th e m id d le ') h alf-w ay thro u gh
the p aragraph .
- 4 is stran g e after 3 (w h ich m ad e no referen ce to tw o
poles).
V ersion B is b etter. W h y ?
- S en ten ce 1 in tro d u ce s the m ain idea o f the p a ra g ra p h in
a sh ort, sim p le way. F u rth e r sen te n ce s d ev elo p this m ain
idea rath er than ad d in g n ew ideas.
- T h ere is a lo gical m o v e m e n t in the p arag rap h : th e sub-
topics in 2, 3 and 4 ('th e h ig h e n d ', 'th e lo w e n d ', 'th e
m id d le ') ap p ear in the sam e o rd er as they are m en tio n ed
in the first sen ten ce.
T h e in tro d u cto ry sen te n ce in V ersion B is called a 'to p ic
se n te n ce '. It p ro v id es a c o n te x t and su m m a riz e s w h at will
fo llo w in the p arag rap h .
A ll the sen te n ce s in a p arag rap h sh o u ld relate to one m ain
idea. T h is is called 'u n ity '. U n re la te d id eas in the sam e
p a ra g ra p h p ro d u ce co n fu sio n o r com p lexity. A typ ical error
m ig h t b e d iscu ssin g ad v a n ta g e s and d isa d v a n ta g e s in a
sin g le p arag rap h , o r e v e n d iscu ssin g m ore than on e
ad v a n ta g e in the sam e p arag rap h .
Movement / Logic
V ersion B h as m o v em en t: the id eas flow d e a r ly and
logically. In this case, it is b e ca u se the to p ic sen te n ce sets up
the p a ra g ra p h stru ctu re v ery clearly. A n o th e r typ ical w av
to giv e m o v e m e n t to a p a ra g ra p h is b y u sing lin k in g
w o rd s. T h e le ft-h an d b ra n ch of the m ind m ap o p p o site
rev iew s th is la n g u a g e area, w h ich is cov ered in m o re d etail
and p ractised in u n its 2 0 -2 2 .
Substitution and repetition of key words
R ead this p a ra g ra p h taken from the sam e text.
’ C o n su m er beh av iou r at the b o tto m e n d o f th e price
ran ge is ch a n g in g as well. ‘ In the past, low-end produt is
w ere associated exclusively with low -incom e grou p s and
p o o r quality. But nowadays p eo p le o f all social classes
feel satisfaction w hen they find a b arg ain , ’it a ll<>ws thorn
to fe e l th at they a re in c o n tro l o l th e ir fin a n c e s.
’In terestingly, as a result o f th e m o n e ) saved, they
typically th e n fe e l a b le to afford a few high -en d luxuries.
T h e id ea 'th e b o tto m end o f lire p rice ra n g e ' (sen ten ce 1)
is a key one, and w ill be referred to again in the
p a rag rap h . U sin g s im ila r w o rd s cou ld be m o n o to n o u s,
and so th e w riter su b stitu te s the p h rase low -en d produ cts
in the n ex t sen te n ce . E qually, in com e g rou p s (sen ten ce 2)
is su b stitu te d later b y social classes, and a bargain
(sen ten ce 3) b y m on ey saved.
B u t re p e titio n c a n o fte n w o rk w ell. It can tie the
p a ra g ra p h together, give e m p h a sis, and b e sty listically
effectiv e. N o te how the w o rd s low -en d in sen te n ce 2 are
e ch o ed b y the w o rd s h ig h -en d in s e n te n ce 5. T h is
p ro d u ce s a sen se of closu re.
N ote the topic sen te n ce at the b e g in n in g that
s u m m a riz e s the w h o le p arag rap h .
N o te the m o v e m e n t: as w ell lin k in g to a p rev io u s
p a ra g ra p h (n o t g iv e n here); tim e seq u e n cin g (in the past
' bu t n o w a d ay s); in terestin g ly to m ak e a perso n al
co m m en t.

Cf ive. e x A M p le s
f There Are Several reaSoAS
fo r th is, such AS ...
For ioStAAce
I a p articular
C,ive. th e . r e s t f o a
The reasoA fo r this is ...
This is the re su lt o f...
C j|ive t h e r e s u lt
Therefore
This would MeaA th a t ...
A s a resu lt ...
This will lead to ...
Q iv e M o r e t h a a
e x A M p le , r e A ^ o A
or r e s u lt
F irstly , ^ecoAd, FiAAlly
Furtherw ore, Ia additioA
E x p lA ia
Iaother words,
Dy ... I M f i A A ...
A/Uke. a c o a t r a s t
However,
O a the o ther hood
C ,iv e e v id e A C e
Th.s areuMeAt is
supported by ...
Research sua^ests t h a t ...\
Q iv e t h e co A S e ^ u e A ce s
FVovided th a t / If ...,
thex . . .
U aIc SS
E M p h o ^ iie
It should be Aoted t h a t ...
I would like to stre s s th a t .
^ how y o u U A d e rstA A d
t h e o t h e r f id e t o
t h e A r^ U M e A t
Although, bespite
R .e je c t a a id e A
I do Aot believe t h a t ...
The maia disadvA Ata^e
(d raw b ack -) is ...
M Ake a p & rf o a a I
CO M M eA t
Obviously, U terestiA ^ly,
Clearly, ^urpriSiA^ly
WRITING PARAGRAPHS
T o p ic £ e r - te .* c e .
O n e MAiA ide.HK p er p a ra g ra p h , w ith a
-topic teACe A-h -hilt be:j i aa i a^
T h e -topic seA teA ce lA tro d u ce s AAd
SUMMAri2.eS the pArA^TApll.
T ilt -topic SCAteACe caa oCCASioAAlly CDMt A-t t i l t
eAd o-f -tilt pArA^TAph AS A COACluSiOA (iA which
case "the f i r s t , w o rd s w ill be SoMethiA^ lik e
Therefore o r The result o f All th is is t h a t ...')
Vou MAy A o t A ted a to p ic S tA ttA c e i f th e
p a ra g ra p h hAS a S tro a ^ logical coAAectioA w ith
th e p revio u s p a ra g ra p h . E>ut iA t h is C A S e
use a liAfciA^ phrASe A t t h e be^iAAiA^ t o M ake
k -the Iodic cleAr, ea Ia AdditioA, However.
oae
PATA^rAph lee^th
4 - 6 seate A ces is a reaSoA able le r .j t h .
I
I f th e paragraph is to o s h o r t, i t
I
MAy mCaa t h a t th e maIa idea is
Aot su fficie A tly developed.
I f th e paragraph iS too Ioaj^, there
MAy be excessive de-tail which
hides the MAiA idea.
CoASider takiA ^ ou t the d e tail
a Ad p u tti a^ i t iA a separate
paragraph (o r a footAote').
A v e ry s h o r t p a ra g ra p h - eveA j u s t oAe
\ seatexce - caa be e ffe c tiv e iA situ a tio A S
Such a s ia tro d u c tio A S , SuM M arieS AAd
coAClusioAS. I t caa <jive iMpACt A Ad
hi^hli^ht t h e id e a .
AAove.Me.at "N .
'M oveM eAt' Mea as ta k iA ^ th e
re a d e r froM oae seateAce t o
th e A ext i a c le a r, logical steps
Achievix^ MoveMeAt:
WRITlNq I, Use th e f i r s t seAteAce t o MeAtioA
su b -to p ics, which a r e theA picked up iA
se^ueAce by f u r t h e r seAteAces
PARAQRAPH^ 2. Use tiM e Se^ueAce, c o A tra s t,
lis t o f r e la te d poiAts
( F i r s t , Second, FiAAlly-), e tc.
3. Use liAkiA^ words: see opposite
brAAch (aad UAits 20-22").
E m ip h A fif
J .s ta rtiA .- j w ith t h e SAMe f a c t s you c a a eM phasize
d if f e r e A t p o iA ts a Ad p re se A t d if f e r e A t ar^ UM eAtS.
You do t h is w ith li a I c i a ^ j w o rd s a Ad t h e p a ra g ra p h s t r u c t u r e
( T e e e x e r c is e 23.3 o a p a ^ e 93 for a a e x A M p l e . -)
 W ji
M Writing paragraphs: Exercises
23.1 Read the paragraph and then an sw er the
questions.
'A good example of trading up’ from the middle market is
Olay made by Proctor and Gam ble. On the 1980s, Olay had
just one form and sold at an everyday price in a standard
bottle. 3But today it occupies a whole section of the store
and sells at a premium price. !P&G have developed the
brand in two w ays. ^Firstly, by product diversification (face
or body, cleansing or moisturizing, vitamins, sun protection,
anti-ageing, etc). 6The act of deciding which item in the
range is right lor you takes you one step closer to a decision
to purchase. 'Secondly, by using a huge advertising budget
to associate the brand with positive feelings. “When a
woman is applying the product, she feels she is going to be
beautiful today.
W rite th e sentence num ber/s w hich show :
a) the topic sentence for the whole paragraph: m
b) another sentence, like a topic sentence, that introduces
the second part of the paragraph: j c) Sales increases last year were much more impressive in the
c) movement by using a time contrast: an
d) movement by listing points: □ □
e) using a follow-up sentence to develop the idea in the
previous sentence:
Finally, read the tw o opinions b elo w and decide w hich
one you agree w ith . There is no 'correct' a n sw e r - the
aim is just to think in detail about paragraphing.
Opinion 1 At eight sentences, this paragraph is too long. It is
difficult to follow the argument. It would be better to start a
new paragraph at sentence 4 - after all, this is like a second
topic sentence.
Opinion 2 The length is not a problem as the paragraph
shows 'unity' - all the sentences relate closely to the main
topic introduced in the first sentence. Making a new
paragraph at sentence 4 would be a mistake - it would break
up the movement and logic of the argument.
23.2 Read the paragraph. The topic sentence (a
question) is missing.
? At first sight, this would seem
impossible, Hligh-end shoppers and low-end shoppers are
rarely seen in the sam e store, and the strategy certainly is
risky and difficult. But a small number of retailers are making
it work, and exam ples are Costco in the US and Aldi in
Europe. These are 'treasure hunt' stores. The money you
save on the majority of your purchases you can spend on a
luxury treat - like a nice bottle of wine or a special cake.
98
Now tick ( / ) tw o good topic sentence from 1-3 below.
O ne fo llo w s the principle of 'substitution to avoid
m onotony' and one o f 'repetition for stylistic impact'.
1 Is it possible to combine all segments of the market under
one roof?
2 Is it possible to be a success in the mid-market?
3 Is it possible to sell to high-end shoppers and low-end
shoppers in the same store?
23 .3 Here are som e figures for sales increases last year:
France 4.5% Hungary 8%
Germany 4% Poland 7.5%
UK 3%
These basic facts can be described in different ways. Look at
topic sentences a)-c). They set up the movement in the
paragraph in different ways.
a) Sales were strong across all key European markets last year.
b) Sales increases last year were significantly lower in
established markets than in the new markets of Central
Europe.
new markets of Central Europe than in established markets.
N ow w rite one of the letters a -c in each box below . The
text after the arrow sh o w s h o w the paragraph
continues.
1 Poland and Hungary both had significant increases,
with 7 .5 % and 8 % respectively. However, in the rest of
Europe the figures w ere disappointing, at 4 .5 % in France,
4 % in Germany and just 3 % in the UK.
2 □ Hungary and Poland had the highest increase, with
8 % and 7 .5 % respectively. But other markets also showed
positive growth. France had gains of 4 .5 % , Germany of
4 % , and the UK of 3 % .
3 | ■The poorest performance was seen in the UK, with
growth of only 3 % . Germany and France were also weak,
with increases of just 4 % and 4 .5 % . However, in Poland
and Hungary gains were far more impressive, with
increases of 7 .5 % and 8 % respectively.
W hen you have checked your an sw ers, note:
There is a difference of emphasis in all three paragraphs
(different countries, positive vs negative, etc).
The idea 'lower' in topic sentence b is a key one. It is
referred to again later in the paragraph with the words
p oo rest and weak. This is an example of 'substitution to
avoid monotony'.

2 3 .4 Here are som e facts:
Soybean prices w ill stay high.
C hina and India im port a lot of soybeans.
The cultivation of soybeans needs hot sum m ers and a lot of
water.
Soybean farm ing in Brazil is destroying the rainforest.
W rite in the boxes th e sentence num bers th at form a
paragraph to describe th e facts above.
m -> □ hot summers and the availability of water, and not many
1 Soybean prices are likely to stay high for years to come.
There are several reasons for this.
2 Then, on the supply side, it will be difficult to increase
worldwide production much beyond current levels. Why is
this?
3 On the demand side, both China and India buy large
quantities of soybeans on world markets, and this is
certain to continue in the future.
4 In addition, there is pressure on land use in Brazil, the
biggest producer, because of the potential impact on the
rainforest if more land is converted to soybean farming.
5 First, the cultivation of soybeans requires a combination of
hot summers and the availability of water, and not many
countries can provide this.
W hen you have checked your an sw ers, note:
• There is movement in the paragraph - the contrast
between the dem and side and the supply side.
m There is also some secondary movement - the listing of
two supply side factors.
• The word cultivation is substituted later with the word
farming. This is an example of 'substitution to avoid
m onotony’ .
W riting practice
• Review exercise 23.3, including the notes in bullet points
at the end. Then cover the second part of the exercise
with a piece of paper so that only sentences a)-c) are
showing. Write three separate paragraphs, beginning with
a)-c).
• Uncover the original at the end and compare. But it is not
a memory exercise - your version may be quite different,
and perhaps better!
• Again, uncover the original at the end and compare.
23 WRITING PA tAC IAPHS
Repeat the exercise: w rite the sentence num bers
to form a paragraph. The paragraph refers to the sam e
facts as in exercise 23.4.
m q
1 Over recent years China and India have been buying large
quantities of soybeans on world markets, and this is
certain to continue in the future. Demand will stay high.
2 The result of all these demand and supply pressures is that
soybean prices are likely to stay high for years to come.
3 First, the cultivation of soybeans requires a combination of
countries can provide this.
4 Second, there is pressure on land use in Brazil, the biggest
producer, because of the potential impact on the rainforest
if more land is converted to soybean farming.
5 At the same time there are supply side problems: it will be
difficult to increase worldwide production of soybeans
much beyond current levels. W hy is this7
W hen you have checked yo u r an sw ers, note:
The topic sentence in this paragraph comes at the end as a
conclusion, not at the beginning as an introduction.
Finally, note that all the exam ples in this unit have been
w ritten text. But the 'facts' in the boxes in exercises
23.3 and 23.4 could be Pow erPoint slides, and in this
case the text w o u ld be a spoken presentation.
Review exercise 23 .4, including the notes in bullet points
at the end. Then cover 2-5 with a piece of paper, so that
only the box of facts and sentence 1 are showing. Write a
paragraph beginning with sentence 1.
Again, uncover the original at the end and compare.
Review exercise 23.5. Cover 2-5 with a piece of paper so
that only sentence 1 is showing. Write a paragraph
beginning with sentence 1.
 CV (resume) / Job interview

B elow y o u w ill see an A m e rica n -sty le resu m e /'rezju:mei/ (o ften w ritten w ith accents:
resu m e). Its key fe atu re s are: one sid e o f A 4 o n ly fo cu s on ac h ie v e m e n ts (w h at y o u h av e
actu ally d o n e) as w ell as sk ills and resp o n sib ilitie s, n o 'p e rs o n a l' in fo rm atio n . E u ro p e an -
style C V s are longer, and can in clu d e o th e r th in g s such as person al in terests,
c o u rse s/ co n fe re n ces atte n d ed . A fter lo o k in g at the resu m e, refer to the m in d m ap .

PER SO N A L D ETA ILS

Name: Paulo Cannara

Address: Via Carlo Scarpa 51, 20425, Milano, Italy
Home telephone number: ++39 12345678
Mobile telephone number: ++39 9876543210
Email: paufe.cannara@yahoo.com
Nationality: Italian
Summary: I have a degree in Economics from Bocconi University, Milan and am looking for a position
in the Corporate Finance department of an international company. Since graduating I have been working
in a small company in Milan offering financial advice to private clients. I am now looking for new
chai.enges to develop my career in the financial area.

P R O FES S IO N A L E X P E R IE N C E

June 20XX - now. Assistant Portfolio Manager, Studio Bartolini, Milan

Since finishing my studies at university I have been working in a smal. Milan stockbroker firm. I assist the
Poriiolio Manager :n a wide range of tasks, including doing research into different financial instruments
to reduce the risk of customers' positions. My responsibilities also include handling telephone calls from
clients and writing monthly reports.
Key achievements:
- As a result o' the financial instruments I recommended, our clients’ portfolios grew by an average
of 8% last year, despite the fall in equity markets.
- I helped to develop a new E-trading platform at Studio Bartolini. This was given a customer
satisfaction rating of 'Excellent' or ‘Very good’ by 84% of clients.

EDUCATION

Nov 20XX - May 20XX. Postgraduate Diploma for Financial Operators, Bocconi University, Milan
This course covered fundamental analysis, technical analysis and pricing techniques for equity, bond
and derivatives markets.
Sep 20XX - June 20XX. Degree in Economics and Business Administration,
Bocconi University, Milan
I graduated with a final mark of 78%. My specializations were in Corporate Finance and Financial
Markets. My final dissertation was on IPOs in the Italian market.
Key achievements:
- I was a member of the university basketball team. We won the Italian University League in 20XX.

S K IL L S

Languages: fluent in English and good level in French

IT: good knowledge of all components of Microsoft Office.

REFEREN CES
Available on request

100

R e .£ f> o ^ ib i1 i'ti£ *
O f the. M Atr p rio ritie s i r th is role, which ores Are well
understood Ard MeASurAble, And which ones A re ro t ?
A/U.rk.£-fc a rv i ro rM ar-t
I' m Aw Are t h A t i t ' s a v e ry fA St-M ovir< j M A rk e t. How is
t h is A ffe c tin g th e p r io r it ie s A rd deMArdS o f t h e j o b ?
J o b de.ve.lopMe.A-k
Ir coMpArisor w ith row, w hAt Mdyor chAr^eS
i r th is ro le a r e you looking f o r ? F o r exAM ple,
i r terM S o f cuStoMer r e lA tio r S ? o r^ A riiA tio rA l
develo p w ert? M A rket developMent?
k -k e re A l
1 M
I WhAt a re the key relAtiorshipS irSide the /
I coMpAry i r th is ro le ? HAve these AlwAyS /
\ w o rked well i r t h e p A S t? I f r o t , w h A t 1
\ hAve b e e r th e is s u e s ? f ■
CV/RE.SUME
ANb JOE.
llsfTERVIEW
P re p A re by ASki r a a f r ie r d t o ASk you
typ icA l c ju e s tio rS . I r p A rt ic u lA r , p rA c tis e
tA lk ir^ A b o u t y o u r s tro n g p o ir t s usir^
c o r c r e t e exAMpleS fro M y o u r c u r r e r t jo b
Keep y o u r A rS w e rs s h o r t , SiMple A rd
r e le v A r t . If th e ir t e r v ie w e r w A rts
M ore ir f o r M A t io r , le t theM ASk f o r i t .
E>e e r th u s iA S tic A rd p o s itiv e A t All ttM es
M ever c o r t r A d ic t , Ar^ue o r i r t e r r u p t .
N e v e r c r i t ic i s e p re vio u s eM ployers.
T r e n t th e irte rv ie w e r w ith resp ect, but
d o r t be A frn id t o ocCASiorAlly tA k e th e
ir it in t iv e during th e c o rv e rsn tio r.
CV (RESUM E) / JOB INTERVIEW
C o rS id e r p u ttin g A ore-pArA^ rA ph
^UM M Ary' A t th e to p.
NorMAlly, put P ro fessio rA l Experience' before
E d u cA tio r . If you hAve very lit t l e eMployMert
h isto ry , t h e r E d u cA tio r' CAr Com C f i r s t .
^ t A r t w it h t h e Most r e c e r t
jo b / c o u r s e Cre v e rs e chrorolo^ icAl o r d e r 1)
J Fo r rAM es o f u r iv e r s itie s , co urses, e t c , use a
/
Mix o f th e ori^irAl words Ard English words.
/
Provide a tr A r S lA t io r i r brACkets i f recesSAry.
W her r e f e r r in g t o M ArkS A rd ^ rn d es, t r n r S U t e
i r t o % . The re A d e r M i^ht r o t u r d e r s t A r d
th e M A rkir^ SySteM i r y o u r c o u r t r y .
Use sh o rt serterces A rd bullet p o irts.
LeA ve a lo t o f w h ite SpAce.
E>e b rie f A rd d ire ct. Avoid jA r a o r .
Use A ctio r verbs t o describe your
resp o rS ib ilitieS : See l is t o r pA^e 102.
Use re A l re su lts t o describe y o u r AchieveMertS.
I ircreA sed SAles by X % \ I MAde s a v in s of € V .«
U r iv e r s ity ^ rnduntes CAr CorSider AttAchir^
A Sep A rA te r e p o r t A b o u t o ffic iA l w o rk
e x p e rie rc e d u rin g t h e co u rs e .
U r i v e r s it y ^ rn d u A te S w it h o u t Much
eM ployM ert h is t o r y CAr s t i l l t h i r k
o f 'e x p e r ie rc e s ' w ith 'A c h ie v e M e rtS '.
Fo r exAMple ...
* c to £ V € M e * t*
... v o lu r t A r y w o rk , co M M ittee MeMbership
o f S o c ie tie s A rd clubs, o r^ A risin ^ e v e r t s ,
te n c h ir^ A rd helping people, c r e n t ir d
t h ir d s fe^ A r t , w r it in g , p h o to ^ rA p h y),
S p o rts A rd f i t r e s s , t r A v e l, co M p u ters,
becoMir^ e x p e r t i r A ry S k ill, e t c .
Focusir^ o r skills A rd responsibilities,
A rd fo r ^ e t t ir ^ A ch ieveM ertS
Including ir r e le v A r t ir fo r M A t io r
(jo ir^ o v e r the liM it
f resuMe - I pA^e; C V - 2 pA^es")
E>riijhtly coloured pAper, too M Ary f o r t styles
Spelling A rd <^ram m at M is tA k e s . C h eck v e ry
C A re fu lly, A rd i f possible show t o a r A t iv e
SpeA ker b e fo re sending o f f .
Ill
 CV (resume) / Job interview: Exercises
24. Study the list of personal qualities below . You can
use som e of these ideas in your CV, or in an interview.
active and dynamic approach - gets things done
comfortable with demanding sales targets
creative problem-sotver
critical thinker - strong analytical skills
detailed and precise; conscientious and thorough
determined and decisive
effective project coordinator
emotionally mature and confident - a calming influence
entrepreneurial and proactive
excellent interpersonal skills - good communicator
financially smart - good knowledge of accounting systems
and principles
focused on quality and optimizing performance
good researcher - creative and methodical
good team-player - adaptable and flexible
high level of technical competence in ...
high standards of honesty and personal integrity
innovates and makes things happen
methodical approach to planning and organizing
positive attitude - seeks and finds solutions to challenges
proactive - anticipates and takes initiative
reliable and dependable in meeting objectives
results-oriented - alt decisions are determined by how it
affects the bottom line
self-aware - always seeking to learn and grow
self-motivated and self-reliant
strong drive - energetic and positive outlook which often
inspires others
task-oriented - good at identifying problems, finding
solutions and implementing them
uses initiative to develop effective solutions to problems
well-organized; good planner; good time-manager
Which of th ese qualities w ould you use to describe:
a) a real person w h o has recently been your boss?
b) a real friend or colleague w h o you adm ire?
c) yourself?
Can you add an y other personal qualities?
24.. Study the list of action verbs below. You can use
som e of these ideas in your CV. or in an interview .
analyse (sales data)
carry out (processes and procedures)
complete (projects on time and on budget)
control (quality)
coordinate (complex projects)
deal with (customers, both internal and external)
deal with (suppliers, partners and associates)
design and develop (new procedures)
determine (direction, policy and strategy)
develop and coach (other people)
increase (sales, website hits)
initiate (changes in w ork practices)
investigate (reasons for customer dissatisfaction)
listen to, understand and help (colleagues)
make decisions (and implement them)
monitor, record and report (sales data, test results)
negotiate (deals)
operate (equipment and tools reliably and safely)
plan (budgets)
research and explore (new markets)
solve (problems and challenges)
supervise and direct (staff working under you)
work effectively (in a team)
work under pressure (and meet demanding deadlines)
write (reports)
W hich of th ese activities have you done:
a) in your previous jo b ?
b) in your current jo b ?
You can include part-time w ork.
24.3 Prepare a CV / Resum e.
Use the ideas in this unit to help you prepare a
one-page resume or two-page CV.
Show it to a colleague / friend and ask them how it could
be improved.
 24 CV (RESUM E) / JOB INTERVIEW

24.4 First read th ese typical in tervie w questions.
1 Tell me a little about yourself.
2 W hy do you w ant to leave your current job?
3 W hat attracted you to this company?
4 W hat qualities or experience do you think you would
bring to this job?
24.5 Prepare the roleplay.
1 Think of a job that you might apply for in the future and
w rite it below. If you cannot think of anything, then
imagine that you are applying for the position of your
current boss (even if you only do part-time w ork).
(position)

5 W hat would you find most difficult about this position? (company)
2 Fill in the gaps in the box below with your own
How would you handle that challenge?
information. You will be asked these questions.
6 As you look back on your life and career so far, w hat
achievement has given you the most satisfaction?
Education
7 How would other people in your present company
I see that you have a degree in
describe you as a colleague?
(subject) from (name of institution).
8 W hat are your strong points?
Which part of the course did you enjoy most? W hy did
9 And w hat are your w eak points?
you like that subject?
10 How do you deal with criticism and direction?
Did you do a project in your final year? Can you tell me
11 In career terms, where do you w an t to be in five years about that?
time?
Current job
12 So, finally, w hy should w e hire you rather than one of the
other candidates? (Use a part-time job if necessary, and use a recent job if
you are a student or unemployed.)
Now choose one o f th e questions above to match w ith I see that you w ork as a (position) in
each reply below . W rite th e question num ber in the (company).
box.
Can you tell me a little about the company? W hat
a) 'It doesn't allow me to grow professionally and I exactly do you do there?
w ant more challenges.' (also practical things like distance • W hat personal and professional skills have you
from home, job security.) developed?
b) Don't talk too much: it's a warm-up question. • W hat w as your most important achievement?
Cover your origins, education, w ork history and recent • How have you kept up-to-date with new developments
career experience. in your field?
c) □ - * 'Maybe I am a little too perfectionist.' / 'Perhaps I • W hy do you w ant to leave?
worry too much about deadlines.'
d) □ - » 'I welcom e it and listen carefully, particularly if it 3 Review the questions in the box above and the twelve
allows the team to operate more effectively and produce questions in exercise 24.4. Plan how you personally will
better results. It is necessary in order to learn and develop.' answer these questions. Your replies should be natural and
comfortable for you, and may be very different to other
Speaking practice people's replies.
In exercise 24.5 and 24.6 you are going to prepare and
then practise a job interview. This is useful for everyone - 24.6 Roleplay
even if you are not thinking about applying for a new job G ive this book to a colleague / friend and ask them to
right now. in terview you. The in tervie w e r should fo llo w this
sequence:
'Tell me a little about yourself.'
• The questions in the box above.
• Questions 3-12 from exercise 24 4.

103
Interview s
1 In terview w ith a venture cap italist 2 In terview w ith a CEO
E x e r c is e s E x e r c is e s
You are going to listen to an interview with Karl, a venture Read statements 1-4. What is your opinion? Write 'Agree'
capitalist. How do you think he answers the questions below? or 'Disagree' in the column headed 'My opinion’.
1 What kind of start-up is a venture capital firm looking for? My opinion Lara’s opinion
2 What role does a venture capitalist have in the management of a 1 Having a 'Suggestions ____________ __________
start-up? Box' at work is a good idea.
3 Suddenly a start-up is bought by a larger company. How do 2 Email has made communication
people react? Are they happy? at work much easier.
3 Positive feedback should be g i v e n ____________ ___
2 * Now listen to the interview and compare your ideas
publicly as well as privately.
with the real answers.
4 Workers in the public sector are la z y .____________ ______
3 Are these statements true (T) or false (F)? Try to
2 # Now listen to an interview with Lara about managing
remember what Karl said, then listen again to check.
people. What does she think about the same statements?
1 Venture capitalists are usually interested in long-term investment. Write 'Agree' or 'Disagree' in the final column above.
T/ F
2 When a VC sells a start-up to a larger company, it is called a 3 Read the questions below. Try to remember what Lara
'trade sale'. T / F said, then listen again to check.
3 Venture capitalists are typically interested in firms in the IT and 1 What are the three channels of communication according to
biotech sectors. T / F Lara?
4 In the pharmaceutical sector most start-ups want to become 2 What name does Lara give to the kind of skills that are important
stand-alone companies. T / F for teamwork?
5 It's easier to take a technology start-up to an IPO in Europe than 3 Apart from giving positive feedback, what other thing does Lara
in America. T / F think is important for motivation?
4 What change does Lara want to make in the public sector?
4 Read the listening script (page 109) and make notes on
what Karl says about the following topics (maximum ten 5 What kind of person has vision and sees the big picture?
words each). When you finish, discuss the general issues 6 What role does Lara compare to an Admiral?
with some colleagues. Read the listening script (page 110) and make notes on
• the kind of start-up company that a VC is looking for what Lara says about the following topics (maximum ten
• why large companies are interested in buying successful start-ups words each). When you finish, discuss the general issues with
• why it's difficult in Europe to do a technology IPO some colleagues.
top-down communication
G lo s s a r y
bottom-up communication
break-through innovation important discovery / new product what a CEO should do in meetings
culture shock negative feelings of surprise when people move the relationship between employees and their leader (the CEO)
to a different environment
exit strategy way to end involvement in something G lo s s a r y
founders people who establish a start-up
acknowledgement recognition
growth potential opportunity or ability to get bigger
annual review summary of company's results irom previous year
IPO (Initial Public Offering) process of issuing shares for the
cc send a copy of an email to a third party
first time (when a privately-owned company becomes listed on
cover for sb to do someone else's work on a temporary basis
the stock market)
drive ambition and determination
milestones important events in a company's development
face-to-face in person
road map plan for moving from the present situation towards
humble with low social status
one or more kpy objectives
incentive something that makes you work harder
serial entrepreneurs founders of several start-ups
mingle mix informally
stake amount of investment
shop floor area in a factory where products are made
stand-alone independent, not part of something else
start-up new company, often with higher risk and higher
potential return on investment
venture capitalist (VC) outside investor who provides money
for financing start-ups. VC can also mean venture capital.

m
 INTERVIEWS

3 In terv ie w w ith a p ro ject m anag er 4 In tervie w w ith a d esig n en g in eer

Exercises Exercises
1 Read the stages in a typical construction process below. 1 Read the stages in the engineering process below. Put them
Put them in the right order 1-7. in the right order 1-7.
a) Project managers make a retention until they have checked the a) The assembly company checks and assembles the parts.
suppliers' work. □ b) The customer supplies a specification.
b) Put out a tender to suppliers. □ c) The design engineer tests a virtual, CAD-generated piece. □
c) Select the suppliers. d) The manufacturer machines the parts.
d) Discuss with the client the number of buildings and the layout. [TJ e) The assembly company tests the prototype. □
e) Suppliers hand over the work to the project managers. □ f) The design engineer does initial concept sketcheson paper. □
f) Suppliers start work. g) The design engineer constructs a virtual piece inCAD.
g) Receive proposals from suppliers.
Now listen to an interview with Alex, a design
2 f a Now listen to an interview with Anton, a project engineer, and check your answers.
manager in the construction industry, and check your answers.
3 f a Alex explains some technical terms. Read each
3 fa What aspects of engineering does Anton mention? Try definition 1-7 and try to remember the term, then listen again
to complete the table, then listen again to check. to check.
1 The piece has to fit into a specified space - we call that the
MECHANICAL ENGINEERING ELECTRICAL ENGINEERING
'w.___________e ______ __________ '.
Climate services Electrical supply 2 The design is'I '. That means repetitive and
heating transformers to reduce the cyclical.
ventilation high 5vo . e coming 3 'D________ _ f m________________ 'meansthat
a c _______ g into the factory the piece can be made easily and cost-effectively.
Utility services Lighting
4 'Q _ _______ - d _ ' is when you end up with a piece
water supply level of light
that's much too expensive in every respect - materials,
drainage the mix of bar__________ ial light
manufacturing costs, design time.
refuse 2h ing and daylight
5 'Co Nu Co
Mechanical transportation the position of the windows
(CNC) means that the machine tool is driven by a computer
lifts Telecommunications
program as it is making the components.
3esc _________ s 'c Jin g
6 'T_ ' means the amount of permitted variation.
Safety
sprinkler system SA ICS 4 Read the listening script (page 112) and make notes on
4f -r t materials noise levels what Alex says about the following topics (maximum ten
words each). When you finish, discuss the general issues with
4 Read the listening script (page 111) and make notes on some colleagues.
what Anton says about the following topics (maximum ten O CAD
words each). When you finish, discuss the general issues with
« design and quality vs cost
some colleagues.
• building and testing a prototype
the tendering process
contractors unable to work and claiming compensation Glossary
making a retention batch a group of things that are made together or arrive
together
G lo s s a r y
CAD computer-assisted design
com pensation money to cover a loss caused by sb else constraint limitation
crane large machine used to lift heavy things mil short form of millimetre
drainage pipes that take away water and waste liquids nut small piece of metal with a hole in the middle used to fasten
g ree n fie ld site rural land not previously built on things together
knock-on e ffe c t indirect result sc re w thin pointed piece of metal that you turn to fasten things
layout the way in which objects are arranged together
local a u th o rity governing body of a city, town or district (UK) seal something that stops air or liquid entering or leaving
p en a lty clause part of contract that imposes punishment if sketch drawing that is made quickly and without many details
certain conditions aren't satisfied slo t long, narrow opening in a surface
re fu se waste, rubbish tra d e -o ff acceptable balance between two different things
reten tion money owed but not paid until work is approved w eldin g joining two pieces of metal by heating them and
fen d er formal process by which suppliers bid for a contract pressing them together

105
INTERVIEWS

5 Interview w ith a m arketing director 6 In terview w ith a com m unications

E x e r c is e s co nsultant
1 Imagine you are the marketing director of a company that Exercises
sells domestic appliances, eg fridges, ovens. Think about the
1 Match the communication tools (1-8) with the definitions
following questions and make a few brief notes.
(a)-h)).
1 W ho are your tw o main types of custom er? 1 lobbying a) producing printed material
2 How can you use existing custom ers to do m arket research? 2 Internet advertising b) organized occasion involving many
3 How can you get a list of potential new custom ers7 people
3 outdoor c) when a specific brand is used in a
2 ^ Now listen to an interview with Louis, a marketing
movie or TV show
director of a company that sells domestic appliances. What
4 viral marketing d) associating a brand with a famous
does he say about questions 1-3?
person
3 * Are these statements true (T) or false (F)? Try to 5 event e) trying to influence important people
remember what Louis said, then listen again to check. 6 publishing r) using social networks to increase
1 An ericans are more interested in design than functionality. T / F
brand awareness
7 product placement g) using billboards, posters on bus-
2 His com pany is going to stop providing appliances for holiday
stops etc
flats because the profit is zero. T / F
8 endorsement h) banner ads, pop-ups, pay-per-click
3 A facelift happens ritore often than a restyling. T / F
4 In Europe your social status is judged by your kitchen. T / F 2 tfl) Now listen to an nterview with Angelika, a
5 If yitu fill in a questionnaire, people will use your nam e and
communications specialist. Which six of the eight tools in
address to send you junk mail, w h e th er you like it or not. T / F
exercise 1 does she mention?

4 Read the listening script (page 113) and make notes on
what Louis says about the following topics (maximum ten
words each). When you finish, discuss the general issues with
some colleagues.
w hy com panies need a w id e product range
quality in relation to price
the effectiveness of advertising in increasing brand awareness
G lo s s a r y
a p p lia n c e piece of electrical equipm ent that you have in your
home
b u ilt- in harming part of som ething and cannot be separated
d ru m circular container in a w ashing mat time
fa c e lift superficial changes that m ake som ething look new er or
better
fitted made to At a particular space in a building
fr e e - s t a n d in g n o t fixed to a w all or other support
ju n k m a il advertising ilia ' is sent to you, but you did not ask for
op t In deride to be part of som ething; (direct m arketing) yive
permission to lie sent mail or email
stale old and no longer fresh
status social position
straightforward clear and easy to understand
3 Listen again. What does Angelika say about the
following topics? Complete her sentences.
1 Events 'We've got a big events department, because more and
more companies want to create . ________________________
with their end-users.'
2 Endorsements 'One way to build a brand is to associate it with
famous people that consumers be!.eve in and trust. You pay ‘or
an endorsement and you buy .
of that celebrity - it transfers to your product.'
3 Communication 'You need inspiration more than market
research. You need to understand how to speak to the
__________ _. side of people's brain.'
4 Read the listening script (page 114) and make notes on
what Angelika says about the following topics (maximum ten
words each). When you finish, discuss the general issues with
some colleagues.
the benefits of events
how communication channels have changed
market research
Glossary
attention span period of time a person is able to concentrate
brand recognition how well the public knows-your
company / products
end-users last customers in the supply chain
fragments fro n when something breaks into sn slier pieces
In-Store displays stands used in shops to promote a product
outcomes results
peanuts colloquial term meaning 'very cheap1
four operator company which combines components to create
a holiday, eg a flight plus car hire plus hotel
trade customers people in a supply chain who buy from a
supplier and then sell to another customer or the end-user
video clip short video extract

7 In terv ie w w ith an aud itor
E x e rcise s
1 What is the role of an auditor? Match 1 -6 with a)-f) to
make a list of auditors' responsibilities.
1 State that financial statements give
2 Audit the way
3 Look closely at big fluctuations
4 Check that the company values .
5 Make sure that internal accounting processes
6 Check that the amount for provisions
a) on the income statement.
b) comply with government regulations.
c) is reasonable
d) a true picture of the accounts of the business.
e) the figures are collected.
f) its inventory properly.
2 * * Now listen to an interview with Claudia, an auditor.
Which one of the above does she not mention?
3 Read the questions below. Try to remember w hat
Claudia said, then listen again to check.
1 Who do auditors now have to interview?
2 Why might a high price from a supplier be suspicious?
3 What is 'stock taking'?
4 Why do auditors send out letters to customers to ask them how
much money they owe the company?
5 Why might a company want to put some of its profit into
'provisions'?
4 Read the listening script (page 116) and make notes on
what Claudia says about the following topics (maximum ten
words each). When you finish, discuss the general issues with
some colleagues.
the main change to auditors' responsibilities since the Enron
scandal
how to pay less tax (two ways)
her proposals for controlling the 'big four'
G lo ssa ry
a lleged stated but unproven
auditor sb who makes an independent assessment of a
company's financial condition
comply (with) obey a rule or law
depreciation loss in value of a tangible asset
discrepancy variation
kickback bribe or illegal commission (informal)
offset balance two opposite effects
outgoing soon to leave a position of authority
provisions money set aside for a specific reason
receivables money owed to the business by customers
sourcing finding supplies such as components and raw materials
INTERVIEWS
8 In terview w ith a p o rtfo lio m anager
E x e rc ise s
1 Investment banks use different types of analysis to decide
which companies and sectors to invest in. Put th e key factors
in the correct column.
key price points macro trends a company's balance sheet
a company's product pipeline the economy
support and resistance levels
Bottom-up analysis Top-down analysis Technical analysis
2 # Now listen to an interview with Jo, a portfolio
manager in an investment bank, and check your answers.
3 Are these statements true (T) or false (F)? Try to
remember what Jo said, then listen again to check.
1 Jo's investment bank manages all the capital in the clients'
pension funds. T / F
2 Jo only manages investments in Japanese companies. T / F
3 Jo, as portfolio manager, has a broader view of the market than
the analysts. T / F
4 If a company issues a profit warning, you should sell all your
shares very fast. T / F
5 Issuing new shares dilutes the value of the existing shares and so
always makes the share price go down. T / F
4 Read the listening script (page 117) and make notes on
what Jo says about the following topics (maximum ten words
each). When you finish, discuss the general issues with some
colleagues.
the liaison between client and portfolio manager
what gives Jo's investment bank a competitive edge
headaches for a portfolio manager
G lo ssa ry
asset management a service offering advice on investments
bonds long-term debt sold to investors by companies
commodities products such as oil, coffee or metals
diluted made less strong by the addition of something else
d iv e rsify (risk) reduce risk by spreading it over different types of
investment
drivers key factors that cause a situation to change
emerging (markets) markets in a transitional phase between
'developing' and 'developed'
eq u itie s stocks / shares (which represent ownership of a
company)
investment bank bank that helps companies by arranging new
share issues and providing advice
m etrics parameters / criteria used for measuring
P/e ratio used to measure how cheap share prices are
portfolio collection of investments
price-to-book ratio ratio used to compare a stock's market
value to its book value
p rod u ct pip elin e products in preparation, but not yet launched
107
INTERVIEWS

9 In terview w ith an HR director 10 In terview w ith an IT co nsultant

E x e r c is e s
1 Line managers and HR managers both play a role in the
recruitment and appraisal processes. Write 'LM' or 'HR' next to
the responsibilities.
Recruitment
1 Prepare a job description
2 Make sure legal and ethical requirements are met
3 Look at the general personal qualities of the individual
4 Look at the functional skills of the individual_________
Appraisal
5 Develop the appraisal tools
6 Make sure that the process is identifying future leaders
7 Rate functional performance
8 Monitor that appraisals are carried out .
2 # Now listen to an interview with Jurgen, an HR director,
and check your answers.
3 Listen again. What does Jurgen say about the following
topics? Complete his sentences.
1 Internal candidates '... opportunities for promotion are an
important inside the company and
it's important to _ within the organization.'
2 The interview 'In the HR interview we are looking for a positive
personality, a flexible attitude, good team-working skills, and
other qualities like _______________ and the ability to
3 P eiio rm a n ce-rela ted pa y 'HR is here to help the business
__________________ .___________ . Bonuses are acceptable if they're
seei : o be _ using a document management system
4 M otivation 'A part from the tangible
w h a t I w o uld call m otivators.'
4 Read the listening script (page 118) and make notes on
what Jurgen says about the following topics (maximum ten
words each). When you finish, discuss the general issues with
some colleagues.
assessing personal qualities in an interview
perform ance-related pay
the appraisal process
G lo s s a r y
a p p r a is a l form ally assessing an em ployee's job perform ance
d e m o r a liz in g m aking you feel less confident and hopeful
fa s t - tr a c k in g accelerating the progress of a person's career
f i t in integrate successfully
j o b r o ta tio n m ovem ent through a variety of roles in the
organization
m a tr ix o r g a n iz a t io n w h e re people w o rk in a variety o f cross-
functional team s rather than under one line m anager
m in d s e t attitude and w ay of thinking
r o u n d s sim ilar stages
tra c k r e c o r d things you have done in your career
u n d e r p e r f o r m in g less successful than expected
Exercises
1 What do these acronyms stand for? How much do you
know about them? Make notes.
1 ERP
2 CRM
3 VPN
2 Now listen to an interview with Jana, an IT consultant,
and check your answers.
3 Listen again. What does Jana say about the following
topics? Complete her sentences.
1 IT consultancy 'We offer IT solutions - software, hardware,
system ___________________ , maintenance a n a ____________________ ,
consulting - everything.'
2 The paperless office 'A document - like an email or a letter or a
legal contract or a report - is purely i n ___________________ form
and with document management you c a n ___________________ and
store it.'
3 Industny trends '... everything is moving to the network - all
kinds of data and all kinds of software. At the end of the day all
____________________ are the same - just a screen, a
_ of input like a keyboard, and a connection to
the network.'
4 Read the listening script (page 119) and make notes on
what Jana says about the following topics (maximum ten
words each). When you finish, discuss the general issues with
some colleagues.
the benefits and risks of CRM
there are the difference between information and knowledge
'The Matrix'
Glossary
a p p lic a tio n s s o f t w a r e com puter program m es designed for a
specific task, eg w ord processing, accounting
c o ld c a ll a telephone call to a potential custom er that they w ere
not expecting
d o w n s id e disadvantage
e n c r y p t io n protecting inform ation by putting it into a special
code that only som e people can read
f l a g g e d u p highlighted
IP (address) the IP (Internet Protocol) address is the address of
every m achine connected to the Internet - it takes the form of
num bers separated by dots
lo g m ake a record of som ething
o p e r a t in g s y s t e m program m e th at controls all th e com ponents
of a com puter system
p r in t - o u t s printed inform ation from a com puter
s t a n d - a lo n e (p a c k a g e ) package that w o rks w ell on its own
te m p la te pre-defined model
tr a c k fo llo w the progress of som ething

108
Listening Scripts
1 In tervie w w ith a ven tu re cap italist
KARL I'd like to explain a little about venture capital, and why I
think the lack of a strong VC sector in Europe is holding back
our economy, at least as far as the technology sector is
concerned.
IN TER V IEW ER Very interesting. But before you begin, can you just
explain how venture capital works - how it's different to other form s
o f financing like bank loans.
KARL Let's think about the objectives of VC. The aim is to take
a stake in a small start-up company, and then to sell this stake
at a profit in the future, perhaps three or four years down the
line. We need a clear exit strategy. We have absolutely no
interest in keeping our stake for the long-term.
IN TER V IEW ER So how exactly do you sell your stake? When does it
happen?
KARL T here are two options, either at IPO w hen the company
goes public, in which case we will sell to institutional and other
investors who buy the shares, or in a trade sale, w hen a large
company in the sam e sector buys the start-up, and the start-up
just becomes a part of the other company. Its name disappears.
IN TER V IEW ER Is venture capital interested in all start-ups?
KARL Definitely not. Perhaps 95% of new ly founded com panies
serve a small local market and will either stay small or grow
slowly to becom e m edium -sized com panies. As venture
capitalists we're not interested in that kind of company. These
com panies will turn to banks for their financing.
IN TER V IEW ER So what kind o f start-up is a venture capital firm
looking for?
KARL We re looking for com panies with enorm ous growth
potential - with a break-through innovation that will allow
them to becom e major players in some specific sector in the
global economy. Typically, these small firms will have their
origins in som e sort of collaboration between university and
the industrial world, and they are usually found in the IT and
biotech sectors. This type of firm will have little or no income
stream - they are developing a product or a process and it's not
on the m arket yet. Or maybe they have just a few pilot
customers who are w orking with them to develop the product.
So they need a source of financing, and that's where venture
capital comes in. We're prepared to take a very big risk and
fund the com pany
IN TER V IEW ER And in exchange fo r this risk?
K A R L In exchange for the risk we take a large stake in the
com pany - perhaps 80% of the shares - and in the future we
hope to sell these at a large profit. As I said earlier, we need to
have an exit strategy.
IN TER V IEW ER OK, so w hen you get involved you take something
like 80% o f the shares, leaving 20'% fo r the founders o f the company.
KARL That's right. To motivate a team of bright guys you need
to leave them with som ething like 20% of the company. But
they are usually very happy with that. Remem ber that there is
no money com ing into the com pany - nothing to pay the bills,
nothing to buy equipm ent. W ithout VC they have no company.
IN TER V IEW ER OK. So venture capital gets involved at an early
stage. What role does a venture capitalist have in the management o f
a start-up?
KARL We d on't get involved in the day-to-day running of the
company. As I said, that's not our business. But w e're a
m ajority on the Board, and we w ant to m onitor the grow th of
the company. Initially the most im portant thing is to get ihe
hum an resources right - to m ake sure that the key people In
the com pany are the very best. Then the next thing is to define
the road map for the company, with the im portant m ilestones -
perhaps first a w orking prototype, then the first custom ers,
things like that. In fact the venture capital will be released in
two or three rounds of financing, as different key milestones
are reached.
IN TER V IEW ER Then after some years the company grows and you
get to the point where you want to sell your stake, either as a trade
sale or an IPO.
KARL That's right. A trade sale is by far the most com mon. It's
easier to look for a trade sale. Large, international com panies
are very interested in buying successful start-ups who have
already done all the hard w ork in developing a new product.
It's like outsourcing their own R&D, with no risk. They are
buying a technology which would have taken them several
years and a lot of m oney to develop them selves. In addition,
they are also buying all those early custom ers.
IN TER V IEW ER That makes a lot o f sense.
KARL It's a trend that is unstoppable. Large com panies will buy
in more and more innovation. T hat's how Intel and M icrosoft
grew, but it's also true for biotech. Right now a lot of
pharm aceutical firms are looking for drugs in phase two of
developm ent ju st because their own internal fine of n e w
products is not enough to fulfil their future needs. In the
pharm aceutical sector all start-ups are looking to be bought,
because it makes absolutely no sense to becom e a stand-alone
company.
IN TER V IEW ER So the situation is this. You have a small team o f
smart people working in a start-up. They all know each other and it's
a very exciting environment. The focu s is all on R&D. Then suddenly
they are bought by a larger company and fin d themselves dealing
with bureaucracy, sitting in long m eetings and with reports to write.
H ow do they react? Are they happy?
KARL Well, of course they are very happy. Rem em ber that they
will have sold som e of their shares as well, and they'll get a lot
of money for that. It's their reward for all the years of hard
work. They'll buy a new house and generally take their living
standard to a new level. But, to be honest, in the case of a trade
sale 1 can say that most of the original founders of the company
will leave within a few years. You're right - it's a big culture
shock. They gel used to being their own boss and w orking in a
company where every m inute is dedicated to what is really
important. They have a lot of difficulty in adapting to a large
corporate environment.
IN TER V IEW ER W hat happens to them?
K A R L They often start another new company.
IN TER V IEW ER So they're serial entrepreneurs?
K A R L Yes, that's exactly w hat they are.
IN TER V IEW ER So, just to be clear, very fe w sm all companies with a
high growth potential will go on to be a success in their own right,
through an IPO and a stock market listing. Instead, they'll all be
bought, and disappear as stand-alone companies. At least in the
technology area.
KARL Yes, that's the point 1 was m aking at the beginning. With
a service com pany it m ight be different. If it has a business
model that is easy to understand, if it has a good revenue
109
LISTENING SCRIPTS

s tr e a m a n d th e c o m p a n y is a lr e a d y p ro fita b le , th e n It w ill b e LA RA A s I sa id a t th e b e g in n in g , th is is re a lly th e s a m e as

a b le to h a v e a s u c c e s s fu l I P O a n d g o p u b lic . T h e y w ill fin d
in v e s to r s to b u y th e s h a re s . B u t in th e te c h n o lo g y s e c to i
in v e s to r s a re n o t r e a d y to ta k e a risk . T h e y s e e a b r e a k -th r o u g h
in n o v a tio n a n d a b u n c h o f R & D -o r ie n te d m a n a g e r s , a n d th a t's
n o t e n o u g h - th e y th in k th e o n ly w a y fo r w a rd is a tr a d e sa le.
I t's v e ry d iffic u lt in E u r o p e to d o a te c h n o lo g y IP O . In th e U S
it's d if fe r e n t - th e fin a n c ia l m a r k e ts a rc q u ite h a p p y to ta k e th e
ris k , a n d m a m - s ta r t-u p s g o on to b e c o m e w o r ld c h a m p io n s .
T h a t 's th e re a s o n w h y th e y h a v e so m a n y s u c c e s s fu l c o m p a n ie s
in th e te c h n o lo g y a re a .
2 In terview w ith a CEO
te a m w o rk . T h is is v e r y im p o r ta n t in a n o rg a n iz a tio n . I f
s o m e o n e is a b s e n t fro m w o r k b e c a u s e o f h o lid a y s , o r illn e s s ,
th e n s o m e o n e e lse h a s to c o v e r fo r th e m . A n d n o w a d a y s m o re
a n d m o re w o r k is o r g a n iz e d a c c o r d in g to in d iv id tia l p r o je c ts -
p e o p le c o m e to g e th e r as a te a m to r <me th in g , w o r k o n it, an d
th e n th e p ro je c t e n d s. T h e n e x t d a y th e y a re in a new te a m fo r a
n e w p ro je c t. S o in t e r p e r s o n a l s k ills a re really im p o r ta n t in th e
w o r k p la c e - e v e n fo r te c h n ic a l g u y s. If y o u w a n t tu w o r k a lo n e ,
th a t's fin e , b u t th e n y o u n e e d to b e a n e n tr e p r e n e u r o r a
fr e e la n c e p ro fe s s io n a l, n o t p a r t o f a n o r g a n iz a tio n .
IN TER V IEW ER Is there an ythin g else abou t com m u n ication that you
w an t to say?
LARA Y es, th e re is. It's a b o u t e m a il. I h a te e m a il. It ta k e s m u c h

IN TERV IEW ER So, Lara, you 've had a very in terestin g career. Now
m o r e tim e to re so lv e th e s m a lle s t p r o b le m . In th e p a s t p e o p le
u s e d to so rt thing,s o u t q u ic k ly b y g e ttin g to g e th e r a n d ta lk in g .
you 're the. C E O o f a m ediu m -sized utility com pany, bu t before that
N o w y o u h a v e to c c e v e r y b o d y a b o u t y o u r is s u e s a n d read
you w ere in volved in local g overn m en t, an d in fact von w ere the
th e ir re p lie s, a n d th e n y o u h a v e to r e a d a ll th e ecs th a t y o u
m ayor o f your tow n! W hat have you learn ed abou t m an agin g p eo p le ?
r e c e iv e a b o u t th e ir is s u e s . I t's crazy . M a n y p e o p le s p e n d tw o
le t's begin zoiih com m u n ication .
h o u rs a d a y ju s t a n s w e r in g e m a ils . A n d p e o p le n o w h a v e to b e
LA RA T h e re a re re a lly th re e d iffe re n t c h a n n e ls o f
m u c h m o re c a re fu l b e c a u s e th e r e is a p e r m a n e n t re c o r d . It's
c o m m u n ic a tio n . T h e re is to p -d o w n , th e r e is b o tto m - u p , an d
v e ry b a d fo r c o m m u n ic a tio n .
th e n th e r e is a lso h o r iz o n ta l c o m m u n ic a tio n b e tw e e n p e o p le a t
th e s a m e le v e l - th a t's m o r e o r le s s th e s a m e a s te a m w o r k .
IN TER V IEW ER OK. N ow let's chan ge the topic c om p letely am i talk
abou t m otivation.
IN TERV IEW ER Let's begin w ith com m u n ication fro m the tup to the
bottom .
LARA 1h a v e tw o th in g s to say a b o u t m o t h a tio n . Ihe fir s t is th e
im p o r ta n c e o f p o s itiv e fe e d b a c k . It h a s to b e g iv e n c o n s ta n tly :
LA RA O K , w e ll th in g s lik e r e p o r ts a n d m e e tin g s a re o b v io u s .
fa c e -to -fa c e , th r o u g h re p o rts , a n d o f c o u r s e th ro u g h th e re s u lts
B u t w e d o s o m e th in g e lse E v e ry q u a r te r w e p r o d u c e an in -
in th e fig u re s . B u t ju s t h a v in g th e re s u lts is n o t e n o u g h - th e re
h o u s e m a g a z in e , w r itte n b y o u r c o m m u n ic a tio n s o ffic e r, a n d
h a s to b e p u b lic a c k n o w le d g e m e n t a n d th a n k s so th a t p e o p le
e v e r y o n e w h o w o r k s in th e c o m p a n y re c e iv e s it. It d e s c r ib e s
fe el v a lu e d . T h e s e c o n d th in g is a b o u t th e im p o r ta n c e o f
th e m o s t im p o r ta n t d e v e lo p m e n ts in th e c o m p a n y , it h a s
lis te n in g . O n e o f th e m o s t m o tiv a tin g th in g s fo r an e m p lo y e e is
in te r v ie w s a n d so o n . I t's e x p e n s iv e to p r o d u c e - 8 0 p a g e s , fu ll
to h a v e a b o s s th a t lis te n s . I lo v e to s p e a k in m e e t in g s an d
c o lo u r - b u t w e a ls o s e n d it to im p o r ta n t c u s to m e r s , th e C E O s
s h o w h o w im p o r ta n t I a m , b u t th a t's a b ig m is ta k e . I am
o f o th e r lo c a l c o m p a n ie s , lo c a l p o litic ia n s a n d so o n . T h e s ta ff
im p o r ta n t an d I w ill ta k e th e d e c is io n s . B u t i h a v e to ta k e in to
o f th e c o m p a n y g e l it th r o u g h th e m a il a t th e ir h o m e s .
a c c o u n t o th e r p e o p le 's o p in io n s , o th e r w is e they7 w o n 't s u p p o r t
IN TERV IEW ER OK. W hat abou t the other w ay - com m u n ication
m e . b o in m a n y m e e tin g s 1 ju s t e x p la in th e b a c k g r o u n d to th e
fro m the bottom to the too?
s itu a tio n in tw o m in u te s a n d th e n le a v e tim e fu r o th e r p e o p le
LA RA Y o u h a v e to e n c o u r a g e a n a tm o s p h e r e w h e r e p e o p le feel
to s p e a k .
a b le to s p e a k freely, Y o u d o n 't w a n t lo w -le v e l e m p lo y e e s; to
IN TER V IEW ER You have w orked both in the pu blic sector in local
th in k 'th e b o s s is th e b o s s , a n d I 'm g o in g to k e e p m y m o u th
g ov ern m en t - an d in the private sector. P ublic sector em ployers
s h u t'. Y ou ha\ e to b u ild a n a tm o s p h e r e o f tru st. W h e n ! b e c a m e
som etim es have a bad repu tation - p eople say they are less m otivated
C E O J o y o u k n o w w h a t 1 d id ? I m a d e s u r e th a t I g o t o u t o f m y
b ecau se they have their jo b s for life an d have no in cen tives to p a form
o ffic e a n d s p e n t a t le a s t a n h o u r a d a y ju s t w a lk in g a r o u n d the
w ell D o you thin k that's true?
fa c to ry a n d ta lk in g to p e o p le o n th e s h o p flo o r. I saw h o w
LARA Y o u h a v e to c h a n g e th e s y s te m in th e p u b lic s e c to r s o th at
p e o p le w o r k e d , a s k e d q u e s tio n s , a s k e d h o w vve c o u ld im p ro v e
p e o p le a re p a id m o r e in r e la tio n to re s u lts a n d p e r fo r m a n c e .
th in g s. 1 th in k T o m P e te r s c a lle d it 'm a n a g e m e n t b y w a n d e r in g
I t's n o t e a s y a n d it ta k e s a lo n g tim e . B u t r e m e m b e r s o m e th in g
a r o u n d '. I t's a b it lik e h a v in g a 'S u g g e s tio n s B o x ', b u t fa c e -to -
e ls e v e ry im p o r ta n t - n o t e v e r y o n e h a s d r iv e a n d e n e r g y an d
fa ce.
w a n ts to g e t to th e topi. S o m e p e o p le a re h a p p y to sta y n e a r th e
IN TER V IEW ER A S u ggestion s Box is an on ym ou s! T his isn't!
b o tto m , o r in th e m id d le . P e rh a p s th e y h a v e o th e r p rio r i!.iis
LA RA B u t y o u k n o w p e o p le d o n 't r e a lly u se a S u g g e s tio n s B o x,
lik e th e ir fa m ilie s o r th e ir o u ts id e in te r e s ts . S o m e p e o p le ju st
e v e n if it is a n o n y m o u s . Y o u h a v e to h a v e h u m a n c o n ta c t to
w a n t to d o th e ir jo b a n d g o h o m e a n d fo r g e t a b o u t w o r k . T h at
fin d o u t w h .it p e o p le th in k . W h a t o th e r e x a m p le s c a n I g iv e
d o e s n 't a lw a y s m e a n th e y a re lazy. I th in k th a t very, v erv tew
y o u '1 Y es, a t th e e n d o f th e y e a r w e h a v e a b ig m e e tin g w ith p e o p le a re d e lib e r a te ly la z y - e v e r y o n e c a n b e m o tiv a te d
e v e r y o n e in th e c o m p a n y w h ic h is lik e a n a n n u a l re v iew . W e so m e h o w .
p re s e n t th e p ro g r e s s o f th e c o m p a n y o v e r th e y ea r, b u t p e o p le
IN TER V IEW ER T hanks. The fin a l topic I'd like to talk abou t is
c a n iJ so a s k u s q u e s tio n s . T h e n a few d a y s la te r w e h a v e an
leadership. In a w ay it's the other side o f the coin, ('onm utnicntion
e v e n t w ith fo o d a n d d r in k , a n d a g a in th e m a n a g e r s m in g le
an d m otivation are all abou t listen in g an d em pow erm en t, w hereas
w ith th e o th e r s ta ff a n d it c r e a te s a g o o d a tm o s p h e r e .
leadership is abou t stren gth at the top. I f you are a lead er then I, by
IN TER V IEW ER Let's go on to the third type o f com m u n ication you defin ition , am a hu m ble follower.
m en tion ed - horizon tal com m u n ication .
LA RA N o , n o , y o u c a n 't se e it th a t w ay . T h e le a d e r h a s \ isio n .

a n d se e s th e b ig p ic tu r e . E m p lo y e e s lik e to s e e th a t a n d r e s p e c t
it - it g iv e s th e m a s e n s e o f se c u r ity , lik e h a v in g a p a r e n t fig u re .
T h e s a ilo r s o n th e s h ip n e e d to fe e l th a t th e c a p ta in o f th e s h ip
k n o w s w h e r e h e o r s h e is g o in g . N o -o n e w a n ts to sa il a ro u n d
in c irc le s . B u t th a t is n o t a c o n t r a d ic tio n w ith m o tiv a t io n - it's
p a rt o f th e u m e p ro c e s s . I t 's m o tiv a t in g fo r e m p lo y e e s to k n o w
th a t th e b o s s is p r e p a r e d to ta k e im p o r ta n t d e c is io n s , a n d b e
r e s p o n s ib le fo r th e m .
IN TER V IEW ER There's on e thing that I've n ever u n derstood. W hat
is the relation sh ip betw een the C hairm an o f the B oard - or the
P residen t as so m e p eop le say - an d the C E O ? You c a n ’t have two
captain s o f the ship.
LA R A She C E O - n o t th e C h a ir m a n o f th e B o a r d - is th e c a p ta in
o f th e sh ip . T h e ro le o f th e B o a r d is d if fe r e n t - it's to m o n ito r
a n d c h a lle n g e th e a c tio n s o f th e s e n io r m a n a g e m e n t. T h e C E O
is th e r e o n th e B o a r d to r e p r e s e n t th e m a n a g e m e n t te a m an d
e x p la in th e ir a c tio n s . S o th e B o a r d ju s t c h e c k s th a t e v e r y th in g is
g o in g w e ll fo r th e s h a r e p r ic e a n d th e d iv id e n d s , a n d it d o e s n 't
ta k e m a n y in itia tiv e s . B u t th a t's m o s t o f th e tim e , n o t all th e
tim e . F o r v e ry b ig th in g s , lik e m e r g e r s , a c q u is itio n s , s tr a te g ic
a llia n c e s , e n te r in g n e w m a r k e ts a n d so o n - fo r th o s e th in g s th e
in itia tiv e c a n c o m e fr o m th e B o a r d . In th o s e c a s e s th e
C h a ir m a n o f th e B o a r d is th e to p p e r s o n . I f I u s e y o u r a n a lo g y
o f th e n av y , th e C E O is lik e th e c a p ta in b u t th e C h a ir m a n is lik e
the A d m ir a l. T h e A d m ir a l liv e s o n la n d a n d ju s t v is its th e s h ip
o c c a s io n a lly to m a k e s u r e th in g s a re g o in g O K . T h e A d m ir a l
le ts th e c a p ta in g e t o n a n d d o h is jo b . B u t w h e n th e A d m ir a l
g iv e s a n o rd e r, e v e n th e c a p ta in ju m p s . T h e A d m ir a l c a n se n d
th e c a p ta in to w ar, a n d th e c a p ta in 's jo b d e p e n d s o n th e
A d m ir a l.
3 In terview w ith a project m anag er
IN TER V IEW ER A n ton , you w ork in the con stru ction in du stry as a
project m anager. I'd like to g et an idea o f som e o f the issues that you
deal with.
ANTON Y es. F ir s t le t m e g iv e y o u s o m e c o n te x t. W e b u ild
fa c to r ie s , w a r e h o u s e s a n d o ffic e b u ild in g s , b u t n o t r e s id e n tia l
b u ild in g s .
IN TER V IEW ER A n d you take p art in the w h ole process - fro m a
g reen field site to the fin is h e d bu ildin gs.
AN TON Y es. W e c a n d o a ll th e p r o c e s s o r ju s t o n e p a rt.
S o m e tim e s w e h a v e to re b u ild a n o ld fa c to ry , o r b u ild a n e w
w a r e h o u s e n e x t to a n e x is t in g fa c to ry . B u t g e n e r a lly w e b u ild in
a n a re a th a t h a s b e e n d e s ig n a te d fo r u r b a n iz a t io n - so th e re is
ju s t th e la n d , n o b u ild in g s , b u t th e lo c a l a u th o r ity h a s a lre a d y
p u t in a ll th e s e r v ic e s . T h e r e is a w a te r su p p ly , a n e le c tr ic ity
•supply a n d d r a in s a lr e a d y in th e g r o u n d .
IN TER V IEW ER O K, w h at is the first step?
AN TON F ir s t y o u d is c u s s w ith y o u r c lie n t th e n u m b e r o f
b u ild in g s a n d th e la y o u t o f th e fa c to r y . You lo o k a t all th e
in itia l p r e p a r a tio n th a t w ill b e n e c e s s a ry . S o , s ta r tin g w ith th e
m o v e m e n t o f e a r th a n d th e la y in g o f th e fo u n d a tio n s , a n d th e n
lo o k in g a t th e d if fe r e n t ty p e s o f e n g in e e r in g th a t w ill b e
in v o lv e d - th e m e c h a n ic a l a n d th e e le c tr ic a l e n g in e e r in g . W e
c a ll a ll th is th e 'm a s te r p la n '.
IN T E R V IEW E R W hat ex a ctly do y ou m ean by 'm echanical'
en g in eerin g an d 'electrical' en gin eerin g?
A N TON L e t's ta k e m e c h a n ic a l e n g in e e r in g firs t. Y ou h a v e th e
LISTENING SCRIPTS
b a s ic s tr u c tu r e th a t s its o n th e f o u n d a tio n s . Y o u n e e d to lo o k a t
th e lo a d o n th e s tr u c tu r e - fo r e x a m p le o n e b e a m m a y h a v e a
c ra n e a tta c h e d to it th a t w ill c a r r y m a c h in e ry , a n d th a t b e a m
h a s to b e v e ry s tro n g . T h e n y o u h a v e th e e n c lo s u r e - th a t
m e a n s th e r o o f a n d w a lls a n d d o o r s . W e h a v e to c o n s id e r w a te r
e x c lu s io n , th e p o s itio n o f w in d o w s fo r n a tu r a l d a y lig h t, n o is e ,
a c c e s s d o o r s , s e c u r ity a n d so o n . T h e n w e h a v e c lim a te
s e r v ic e s . T h a t m e a n s h e a tin g , v e n t ila t io n a n d a ir c o n d itio n in g .
T h e n e x t th in g is u tility s e r v ic e s . T h a t in c lu d e s th e w a te r
su p p ly , d r a in a g e , r e fu s e h a n d lin g - in c lu d in g h a n d lin g a n y
p o llu t a n t s th a t m ig h t b e p r o d u c e d - a n d a ls o m e c h a n ic a l
tr a n s p o r ta tio n in s id e th e fa c to ry , so th in g s lik e lifts an d
e s c a la to r s . O h y e s, a n o th e r v e ry im p o r ta n t th in g is sa fe ty , an d
in p a r tic u la r fire sa fe ty . W e n e e d a s p r in k le r s y s te m , fire -
r e s is ta n t m a te r ia ls , w e m ig h t e v e n h a v e to c o m p a r tm e n ta liz e
s e c tio n s o f th e b u ild in g if th e r e is a h ig h risk . A ll th a t a ffe c ts
th e in s u r a n c e c o sts.
IN TER V IEW ER W ow - that's qu ite a list.
AN TO N Y es, a n d th a t's ju s t th e m e c h a n ic a l e n g in e e r in g . I still
h a v e n 't m e n tio n e d th e e le c tr ic a l e n g in e e r in g !
IN TER V IEW ER O K, g o on.
ANTON T h e e le c tr ic a l s id e o f th in g s in c lu d e s firs t th e b a s ic
s u p p ly to th e facto ry . S o w e n e e d tr a n s fo r m e r s to r e d u c e th e
h ig h v o lta g e fr o m th e g r id to th e lo w v o lta g e in s id e th e fa c to ry ,
a n d a lso a n e le c tr ic a l d is t r ib u t io n s y s te m in s id e th e b u ild in g .
T h e n w e h a v e lig h tin g - h e r e w e lo o k a t th e le v e l o f lig h t, th e
m ix o f a r tific ia l a n d d a y lig h t, th e p o s itio n o f th e w in d o w s an d
so o n . A n d th e n w e h a v e a ll th e te le c o m m u n ic a tio n s in s id e th e
b u ild in g - th e c a b lin g th a t w e a re g o in g to n e e d fo r th a t.
IN TER V IEW ER H ave y ou m issed an y th in g out?
ANTON L e t m e se e . O h y e s , a c o u s t ic s . T h a t m e a n s th e
p r o p e r tie s o f th e c e ilin g , w a lls a n d flo o r th a t a b s o r b o r re fle c t
n o is e . N o is e le v e ls in s id e th e fa c to r y h a v e to b e k e p t w ith in
h e a lth a n d s a f e ly lim its .
IN TER V IEW ER W ell, I've driven past m an y fa c to rie s in m y life but
I've n ever really stopped to think abou t the w ork that g oes into
bu ildin g them.
ANTON I t's a v e r y c o m p le x o p e r a tio n . A ll th e th in g s I 'v e
m e n tio n e d s o fa r a re d e fin e d b y u s w o r k in g to g e th e r w ith th e
c lie n t a t th e b e g in n in g o f th e p ro je c t. W e h a v e a te a m o f p e o p le
w o r k in g w ith th e c lie n t o n e a c h o f th o s e a r e a s - th e y a r e lik e
s u b - p r o je c ts th a t g o to g e th e r to m a k e th e m a s te r p la n .
IN TER V IEW ER So w hat h appen s n e x t ?
ANTON L o r e a c h o f th e s u b - p r o je c ts - w e c a ll th e m 'p a c k a g e s ' -
w e g o to th e m a r k e t a n d a s k d if fe r e n t s u p p lie r s to g iv e u s a
p ric e . W e p u t o u t a te n d e r. W e te ll th e m th e s p e c ific a tio n s th a t
w e n e e d , a n d th e y b id .
IN TER V IEW ER Can I stop y ou f o r on e m om en t. You're say in g that
each o f the areas that you listed ea rlier has a sep arate ten der that will
lead to a sep arate con tractor?
ANTON Y es. E x actly . A n d w e a re th e p r o je c t m a n a g e r . W e
d e fin e th e p r o je c t a t th e b e g in n in g a n d th e n m a n a g e it all th e
w a y th ro u g h .
IN TER V IEW ER A n d is it a com pletely open, p u b lic tender?
ANTON F ir s t o f all w e m a k e a s h o r tlis t o f s u p p lie r s , b e c a u s e not
a ll c o n tr a c to r s c a n d o a ll p r o je c ts . T h e r e 's u s u a lly a r o u n d s ix o r
s e v e n c o m p a n ie s o n th e list. M o s t o f th e m w ill p u t in a
p r o p o s a l o n c e t h e y 'v e s e e n th e d e ta ils o f th e p r o je c t a n d h a d a
c h a n c e to a s k us q u e s tio n s . W e n e e d a t le a s t th re e p r o p o s a ls
1
LISTENING SCRIPTS
before we can confirm that the prices are reasonable, if not, we
look for more suppliers. After that we select just two, and we
start negotiating with just one of these. If this fails, we
negotiate with the second one. W hen the negotiations are over,
they start work.
IN TERV IEW ER It sounds very competitive.
A NTO N It is. In the construction sector things are very
competitive.
IN TERV IEW ER There must be a lot o f planning invok'd/in terms o f
who h contractor starts work when. Some packages need others to be
fin ished before they can begin, some can work in parallel.
A NTO N You've got it. We do most packages in parallel, and we
have to coordinate all the different contractors very carefully. If
we get it wrong, they can claim money from you.
IN TERVIEW ER What do you mean?
A N TO N If one job is kite, it has a knock-on effect. Another
contractor is halfway through their work and they can't
continue. They have their machinery on-site, which they have
hired, and they have their people, who are expecting to work.
But the, can't get on and finish their job because another
package is behind schedule. So if it's not their fault, they
charge you. Sometim es it's just a sim ple question of two teams
being unable to physically work in the same space - one of
them has to ’-ton.
IN TERVIEW ER So in the small print o f the contract there's a penalty
clause that allows a supplier to claim compensation from you for their
lost lime.
ANTON Yes, when it's not their fault, that's right. We have to
pay that. But of course we first go to the other supplier that
caused the problem and try to charge them fur being late We
negotiate with both com panies about how much to pay and
whose fault it is.
IN TERVIEW ER You don't make many frien ds as a project manager.
A N TO N It's very tough, because at the same time we want to
keep them happy so that they do a good job.
IN TERVIEW ER Is there anything else you negotiate about?
ANTON Yes, right at the end, at the point when they hand over
to us we call that the 'reception'. At the reception we make a
retention until we have checked all their work. They want to be
paid the full amount as soon as they finish, but we have to
check that all the w ork 1“ OK ir. cast; we want them to redo
something. So we retain som e money as a way to control the
situation, and they don't like that.
IN TERV IEW ER OK, thanks. I fou n d that very interesting.
4 In terview w ith a design eng ineer
IN TERV IEW ER Could you start off by telling me what you do in
your job?
ALEX I'm a design engineer, working currently in the rail
industry.
IN TER V IEW ER Can you give me an example o f the kind o f work
you're doing at the moment?
ALEX At the- moment I'm working on a mechanism for
providing power to a train when it's in the m aintenance depot.
It's a special piece that is fitted to the train that allows an
auxiliary power supply to be attached. The piece has to fit into
a specified space - we call that the 'work envelope'. Apart from
being the right size, the piece will also have slots and holes,
moving parts that have to work together, and so on. I do all the
design for that in a CAD package.
IN TER V IEW ER OK, and this process is presumably the same fo r
other industries such as the automobile industi y and the consumer
goods industry.
ALEX It's basically the same, but our engineering process is
batch production - we might be producing hundreds of pieces,
whereas in the car industry, say, it's mass production - they
might be producing tens of thousands of pieces. But of course
every piece of every physical object in the world was designed
and manufactured by som eone somewhere.
IN TERV IEW ER Right. So the whole thing starts with you and a
CAD package on your computer.
ALEX The whole thing starts w ith me receiving a specification
from the custom er regarding the requirements for the
particular project. I do an initial design and then there is a
degree of refining within the given param eters of dimension,
functionality, cost and so on.
IN TERV IEW ER OK, so how docs CAD work?
ALEX I usually begin with some initial concept sketches on
paper - just outline drawings. Then I construct a virtual piece
in CAD. I begin with a major part first of all, so for this
particular exam ple, that would be the rnounling panel - all the
other parts are attached to this panel, which itself is attached to
the train. I create this first part and then start to think about
how the other parts of the mechanism are going to fit and work
together. In this particular case there are about fifty or sixty
different bits, including all the screws and nuts and so on.
IN TERVIEW !. R And you're making modifications all the way.
ALEX Yes, the design is iterative. That means repetitive and
cyclical. It means you keep guing, making slight adjustments,
until you reach the result you want,
IN TER V IEW ER There's an important point here. As a design
engineer, are you ju st looking fo r the most elegant and functional
design, or are other factors like cost o f materials also important?
ALEX Good question. Let me first give you an exam ple where
design was the only factor, and cost not important. Steve Jobs
famously told the designers at Apple that with the iPod he
wanted no visible screws. That was a design constraint that
forced tremendous innovation. But the consum er goods sector
and the B2B sector are two very different sectors. In consumer
goods, design is there to appeal to the end-user. It's about
fashion. W hereas in my sector, or any B2B sector, w e're looking
very much at design for manufacture, DEM, and design for
assembly, DFA. These are two well-known m ethodologies for
design.
 LISTENING SCRIPTS

IN TERV IEW ER Can you explain them? IN TE R V IEW E R And you may have to go back to the manufacturer to
ALEX Design for m anufacture means that the piece can be made ask them to make small adjustments.
easily and cost-effectively. Design for assem bly is very similar, ALEX Yes. Then finally we have a w orking assembly^ and the
but it refers to how to put all the individual pieces together. next stage is to test it. The custom er will norm ally give their
M aking sure that assem bly time is minimized, and that the requirem ents for testing and this can be quite com prehensive.
people who fit the pieces can only do it in a certain way and It can include testing against fire, or to check the seals against
w on't make any mistakes. Both ideas reinforce the fact that entry of water, or to check the effects o f vibration, and so on.
design is not just about quality and functionality, but also IN TE R V IEW E R And would this prototype b efitted to a real train?
about cost and ease of manufacture. ALEX Yes. That's the idea. And when the custom er has seen one
IN TER V IEW ER So there is a trade-off between quality and costs. w orking item, and they're happy with it, then we can accept
ALEX Very much so. There's no point designing som ething with delivery of further parts and go into full production.
the best possible quality that can last for fifty years when the
piece itself will only have a working life of ten years. That's
called 'over-designing', and it's one of the biggest mistakes that 5 In terview w ith a m arketin g d irector
you can make. You end up with a piece that's much too
IN TE R V IEW E R So, can you tell me what field o f marketing you work
expensive in every respect - materials, m anufacturing costs,
in?
design time, everything. No, your design must be fit-for-
purpose, not the best possible quality. LO U IS Yes, my com pany m anufactures and sells dom estic
appliances - white goods. That means fridges and freezers,
IN TE R V IEW E R OK, so you're doing all this design work at your
ovens and hobs, dishwashers, w ashing m achines and so on. I
desk using the computer. What kinds o f testing are you able to do
have worked in the same com pany for fifteen years, starting as
while it's still in a virtual form ?
a salesm an and then working my way up to m arketing director
ALEX You can sim ulate m ovem ent - for exam ple when one part
for the whole company. Now we are part of a very large
turns, will it clash with another part? But testing at the CAD
international group.
stage is fairly limited. We have to wait for the physical
IN TERV IEW ER OK, can you tell me som ething about your product
prototype to do the majority of the tests.
range?
IN TERV IEW ER OK, so let's move on to the next stage o f the process,
LO U IS An interesting point I'd like to make straight away is
manufacturing. Do you do that in-house or do you outsource?
that there are some im portant differences here between the US
ALEX We outsource. We have a supplier network. Different
and Europe. Americans tend to like functionality and are less
manufacturers are specialized in different things. So for
status-conscious, whereas Europeans want sophistication and
example you m ight use one com pany for the w elding and
design. And then there's also a difference in habits. Americans
sheet metal work, another for the non-m etallic materials, and
move house often and take everything with them, so they like
so on.
free-standing units. W hereas Europeans move house less often
IN TERV IEW ER And do they work o ff drawings or using your CAD
and w ant built-in units, fitted units. A w ell-designed fitted
file?
kitchen is an expression of their personality'.
AEEX With som e processes they have to work off drawings
IN TER V IEW ER OK, but sticking to Europe fo r now, tell me about
because they are done m anually - for exam ple welding. But
your product range and your distribution channels. For example, I
many parts are machined, and in this case we provide the
imagine that, as well as selling directly to the end-user, you also have
supplier with the CAD file containing the designs. They
B2B distribution channels to the construction sector?
transfer this to a CN C m achine that machines the parts
L O U IS That's right. For the end-user we have both free-standing
automatically. CNC stands for Com puter N um erical Control,
and built-in lines. For the construction sector - where
and it means that the machine tool is driven by a computer
everything is built-in - we have cheaper lines for holiday flats
program as it is m aking the com ponents.
and more expensive lines for residential developments.
IN TE R V IEW E R OK, tell me about what happens next.
IN TER V IEW ER Is there a big difference in the profit margins
ALEX Everything comes back to us, and we do the assembly on
between the various lines?
our own premises. We are a design and assembly company. So,
L O U IS Enormous. In fact for the kitchens in holiday flats our
the parts com e in batches. The very first batch is the most
profit is zero. N othing at all. But we need those items to
important - we do an inspection on a couple of items to make
provide builders with a full range - so that they come to us for
sure that they are within the tolerances specified.
everything. Because the units they install in their residential
IN TERV IEW ER The ' tolerances'?
developm ents are very profitable for us.
ALEX The tolerance means the am ount of perm itted variation. A
IN TE R V IEW E R How many different models do you have in total?
part can be half a mil off, but not one mil off. It's a plus or
LO U IS It's crazy. Across all our different p r o d u c t categories and
minus figure.
all our different brands we have about 1,400 models.
IN TERV IEW ER OK, so you have your fir st batch o f parts, and
IN TE R V IEW E R Why do you have so many?
y o u ’ve checked them. The next stage is to build a physical protohipe.
LO U IS Because we have to. First, if we cut our product line, it
ALEX Yes. You build your first unit. You work off the drawings
would look bad in the market. People m ight think 'They only
- just like m aking an Ikea wardrobe. And as you go you find
have twenty dishwashers whereas the com petitor has twenty-
that things are not as straightforward as you hoped. Some
four so it must be a worse company, or a sm aller company, or
mechanisms w on't fit together or work together as well as they
som ething.' And second, in the construction sector they build a
did in your virtual CAD world.

113
LISTENING SCRIPTS
variety of houses and apartm ents at different price levels and
thin want different qualities of kitchen to reflect that.
IN TERV IEW ER And how often do you replace old models with new
on e?
LOUIS T h a f s a good question. Take washing m achines as an
example. Every two years we do a facelift - ju st minor cosmetic
changes. Then every three or four years we do a restyling - the
line and volume of the product changes, and perhaps the
position of the handle or som ething. And finally every six or
seven years we actually have a new generation of products
with different technology and so on. So at what stage do you
say it's a new product? It's an interesting question.
IN TERVIEW ER Are the new generations o f product marketing-led. or
engineering-led1
L O U IS In the case, of washing machines, marketing-led.
Consumers told us that they wanted a drum big enough for
eight kilos of clothes, not five, and we asked engineering to
find a way to do that. They had to redesign and reposition the
internal components, the motor and so on. It w asn't them who
told us they could do it.
IN TERVIEW ER OK. A moment ago you were talking about different
price levels and different qualities o f kitchen. In what sense does
quality vary ai lording to price?
LOUIS It doesn't vary in terms of build quality. The build
quality has to be excellent for all our products. This is very,
very strict. No, the difference is in the number of features, the
performance and the design. And in terms of pricing, it's
design that adds the most value. A top-of-the-range brand will
have its own personality that we have spent a lot of advertising
dollars creating. W hen the custom er buys the brand, they buy
the image and the lifestyle that goes with it,
IN TERVIEW ER So image adds more value than features.
LO U IS Absolutely.
IN TERVIEW ER OK, but it's strange to think about ‘brand
personality' with something very practical and functional like a
domestic appliance.
LOUIS As I mentioned earlier, in Europe a kitchen is a status
symbol. W hen someone new comes to your house, to visit you,
there is a ritual of show ing them round the different rooms.
And our research shows that the kitchen is the m ain area
where the hom eowner is judged. The brands you have there
give other people an idea of which level of society you move in
- what you can afford.
IN TERVIEW ER Now I see!
LOUIS M aybe you didn't understand because you are a man.
With kitchens, women make the purchasing decision, and they
know about these things.
IN TERV IEW ER OK, let's change the subject completely now. Can
you tell me a little about your market research.
L O U IS Yes. We realized early on that the people who come into
closest contact with our end-users are actually the service
engineers who repair the products. So we give them some
training m how to ask questions while they are chatting to
people in their homes - after the repair is finished. I suppose
you could say it's like a customer satisfaction survey, but
qualitative not quantitative. People often come up with good
ideas for improvements.
IN TER V IEW ER So that 's an interesting way to use existing
customers. What are your main way- to get new customers?
LO U IS Advertising is of course very' important. We use an
outside agency for that, and we monitoi the success of their
campaigns. It's not at all straightforward. For example,
immediately follow ing a campaign we oiten find that the brand
awareness of our com petitors has increased by as much as our
own. One time we found that only 15% of end-users associated
our slogan with our brand.
IN TE R V IEW E R What does the agency say about that?
LO UIS They are very skilled at not taking the blame. Usually
the solution involves spending even more money! But anyway,
we change our advertising agency every few years - after a
time their ideas get stale.
IN TE R V IEW E R W hat other marketing tools do you use?
LO U IS Direct m arketing is very im portant for us. I'll give you
an example of one thing that we do. Inside m any magazines
you get a questionnaire with boxes to tick about different
aspects of your lifestyle. If you fill it in and return it, you might
win a prize. Anyway, we can ask to have one of the questions
about kitchens, and in particular to tick a box i f ) ou are
thinking about having a new fitted kitchen in the next twelve
months. Then we buy all those nam es and addresses, and we
contact the people directly and send them o u r brochure.
IN TER V IEW ER So you increase the amount o f jun k mail in
circulation.
L O U IS No, it's not junk - it's targeted and useful. By law the
consum er has to actively opt in - they have to tick a box saying
they are interested in receiving third-party promotions.
IN TER V IEW ER OK, thanks.
6 In tervie w w ith a co m m unicatio ns
co nsultant
IN T E R V IEW E R So, Angelika, you work fo r a communication
company.
A N G ELIK A That's right.
IN TER V IEW ER And why do you use the word ‘com m unication’,
rather than 'advertising'.
A N G EL IK A 'C om m unication' refers to a whole range of
different tools that we use, and advertising is ju st one of those,
along with PR, the Internet, events, publishing, etc.
IN TER V IEW ER I think most people are clear about what advertising
is, but what about public relations - PR? What exactly is PR?
A N G ELIK A Well, w e've got two kinds of PR. W e've got
relationships with the press, and w e've also got relationships
with people who perhaps I can describe as 'opinion formers' -
leaders of public opinion.
IN TER V IEW ER Do you mean lobbying?
A N G E L IK A Yes, 'lobbying' in its broadest sense.
IN T E R V IE W E R OK, the second thing you mentioned was the
Internet.
A N G ELIK A Yes, we advise clients on their use of Internet
websites, so that they have maxim um impai t, and we also use
a whole range of tools like banner ads and so on. A more
unusual thing that we do is 'buzz com m unication' - that's
when you create a video clip on a w ebsite and then hope that
 people send the clip, or the link, to their friends and that they
send it on to their friends and it spreads.
IN TE R V IEW E R Is that called 'viral marketing'?
A N G ELIK A Yes. Viral marketing.
IN TERV IEW ER OK, what about events?
A N G ELIK A W e've got a big events department, because more
and more com panies want to create personal links with their
end-users. O f course advertising is important, but with events
you reach the people who use your products in a very direct
way. And you offer them som ething very important: a good
moment in their lives that they will remember. So it could be a
party, a conference, a private visit to a museum, or som ething
in the street.
IN TERV IEW ER And the last thing you m entioned was publishing.
A N G ELIK A Yes, w e've got a big publishing department. We
produce leaflets and brochures, in-store displays, the annual
report, and som etim es even magazines to give away free to
consumers.
IN TERVIEW ER Right. Can you put it all together and give me an
exam ple o f how a comm unication company works with a specific
client?
A N G ELIK A OK, I' m going to talk about one client in particular
- a tour operator that I worked with a few years ago. Their
products w ere holidays, travel in Europe. The first thing you
have to understand is who their custom ers were. Obviously,
the end-user was the person who w ent on the holiday. But
there was also a trade customer, the travel agent, who was the
interm ediary
IN TERV IEW ER So you had two different communication channels to
think about?
A N G ELIK A Exactly. For the trade custom ers we decided to
invest a lot of m oney in one specific event. In fact it was a
weekend ski holiday.
IN TER V IEW ER Let me get this right. This weekend was fo r people
who worked at travel agencies, not fo r members o f the public.
A N G ELIK A That's right. Only for staff who work in the
agencies. We wrote to them all and invited them to enter a
com petition. The prize was a weekend in the mountains for a
hundred people. This is how it worked. On the first evening
we would do som e short presentations about our new
products, talk them through our new brochure, things like that.
During the rest of the weekend we would m ix with people and
talk to them. That way you start a personal relationship with
the agents. It's much easier to contact them again in the future.
You also get a lot of useful m arket inform ation just by talking
to people inform ally over the weekend. It's a good investment
because it's not very expensive - if you compare it with an
advertising cam paign in a m ajor new spaper aim ed at end-
users, it w as peanuts.
IN T E R V IEW E R OK. That's a nice exam ple o f using an event. Now
what about promotion to the end-users - the people who actually go
ou the holidays.
A N G ELIK A Yes. Here w e're talking about brand recognition.
And we decided that the host way to get this was by attending
fairs at exhibition centres. We worked with our client to make
the m axim um im pact on the stand. We created the display area
around the stand, and we had to think carefully about how to
differentiate our products visually from all the others. Then
there's the printed materia! to design and prepare. We also
trained the people w orking on the stand how to interact with
the visitors. You talk to a lot of visitors over seven days and it's
easy to forget to ask them for their contact details, holiday
preferences and so on. You need this inform ation for your
custom er database - it's one of the most im portant outcom es of
the fair.
IN TERV IEW ER If they just walk away, it's a missed opportunity.
A N G EL IK A Yes.
IN TER V IEW ER OK, thanks a lot. I want to ask you something
different now. In the field o f comm unication there's a lot o f small
agencies, and the client companies seem to switch agencies a lot. Can
you tell me som ething about hoiv that ivorks?
A N G ELIK A Of course. For a large com pany it would be normal
to have several agencies w orking for them - perhaps different
ones for different brands. A big com pany will never, never give
all its com m unications and advertising w ork to ju st one agency.
IN TERV IEW ER Because one agency would have too much power?
A N G ELIK A Yes, too much power. They want com petition
between them. And they also want different ideas. W hat is very
striking now is the fragm entation of m edia channels and the
fragm entation of the market. In the past you knew where the
consum ers were. W hen you ran an advertisem ent at 8 o'clock
in the evening, you knew that 40% of the country were looking
at your ads. Now it's more and more d ifficu lt First because of
all the com m unication channels - the Internet, satellite TV,
specialized m agazines - and second because people's attention
span is much less - they only stay on a w ebsite or watch TV for
a short time, then they lose interest. We have to use a lot of
channels and a lot of tools. N ow it's a mix, a real mix.
IN TERV IEW ER OK. There's som ething you haven't spoken about
yet. Do you use endorsements and sponsorship deals?
A N G ELIK A Som etim es, although I've never done that
personally. But it is useful. Why? Because products are so
sim ilar these days and branding is everything. One way to
build a brand is to associate it with famous people that
consumers believe in and trust. You pay for an endorsem ent
and you buy the credibility and fame of that celebrity - it
transfers to your product. The process is very easy to
understand - you can buy anything, even people. You ju st have
to pay enough money. But you have to be very careful. For
example if your com pany sponsors a sports team, the team
must win, because if they lose, then your brand is also a loser.
IN TER V IEW ER I ’d like to fin ish with a completely different question.
What advice would you give to som eone at university who was
thinking about a career in comm unications?
A N G ELIK A I would say that com m unication is not to do with
market research and collecting data.
IN T E R V IEW E R What do you m ean?
A N G EL IK A Research will ju st tell you that the consum er wants
the product they already know but at a cheaper price and with
a different colour. It's meaningless. W hen com panies contact a
com m unication agency they want creativity - they want
original cam paigns to make their brand m ore powerful. You
need inspiration more than m arket research. You need to
understand how to speak to the em otional and intuitive side of
people's brain.
115
7 In terview w ith an aud itor
IN TERVIEW ER Can you begin by telling me a little bit about the
company you work for?
CLA U D IA I work for an auditing com pany in Austria - we're a
middle-sized company, not one of the big international names
like KPMG or PriceW aterhouseCoopers. The com panies we
audit are not listed on the Austrian stock exchange.
IN TERVIEW ER OK. So how would you describe the main
responsibilities o f an auditor?
CLAUDIA Actually, an auditor's job is getting m ore and more
complex. After each scandal which involves som e fraud or
other - like Enron - there are new regulations. In the old days
we just exam ined the financial statem ents and we had to state
officially that the)- gave a fair and true picture of the accounts
o f the business. Now we have to do more than that. We have to
check the com pany's internal control mechanisms, and we have
to make an official statem ent that no fraud is taking place. So
now we don't just look at the figures, but at the internal
processes as well - we have to audit the way the figures are
collected. In fact we used to do this before as well, you can't
avoid it, but now there is a legal duty to make a statem ent
about this.
IN TERV IEW ER Can you give me an exam ple o f the kinds o f things
that you do now that you didn't do before?
CLAUDIA Now we have to interview the executives of the
company. We have to ask detailed questions about any areas
where they themselves think we should investigate further. So
the senior management has som e responsibility to warn us ii
there are any strange things going on. If there are, and they
haven't told us, then they get into big trouble. It puts more of
the responsibility on them. Another exam ple would be the
com pany's sourcing policy - who they buy from. We have to
examine that very closely now. For example w e look for any
case where one particular supplier has provided a large
amount of raw materials for a suspiciously high price. It might
be the case that they are being favoured in exchange for an
under-the-table kickback. The whole question of cash
management is im portant to look at here: who w rote the
invoice, who accounts for the cash in, and are these people the
same or different. We're always looking to make sure that there
are checks in the system - more Lhan just one pair o f eyes
seeing and authorizing all the documents.
IN TERVIEW ER OK, so now you don't just check the consistency o f
the figures, you check what lies behind the figures.
CLAUDIA Yes, but everything is related. Every sum of money
has an entry in the financial statem ents som ewhere, and a
discrepancy in cash will eventually show up as a discrepancy
in the income statement. A good exam ple is how you divide
sales incom e betw een two years: if you make a sale and deliver
the goods in one financial year, but only receive the money in
the next financial year, then how do you account for that in the
books? You might have a top-line sales figure in the income
statem ent for one year that doesn't correspond to the cash flow.
IN TERVIEW ER OK, your examples so fa r have been quite specific.
\What are the really big issues on the income statement?
CLA UDIA Well, the first thing is just to make a com parison
with the previous years. If there is a big fluctuation, then
obviously we look closer and ask why. But I suppose the
biggest thing on the income statem ent is definitely tax.
116
IN TERV IEW ER A nd what is the one most useful piece o f advice that
you can give to a company on how they can reduce their tax?
CLA U D IA The most useful advice is often to change the
Structure of the com pany so that you change iLs legal entity.
You set up a holding com pany so that you offset your profits
from one subsidiary with the losses from another. There is a
consolidated financial statem ent for the w hole group. You pay
less tax. We get a lot of work by advising our clients on how to
do this.
IN TER V IEW ER Isn't that a potential conflict o f interest? Can an
auditing company both check that the taxes are correct and also
advise on how to reduce taxes?
C LA U D IA Yes, why not? There's no conflict o f interest, We are
in the best position to give tax advice because we are the ones
who really know the accounts.
IN T E R V IEW E R OK, so fa r w e've been talking about the income
statement. Let’s turn to the balance sheet. What kind of internal
processes do you check?
CLA U D IA One big thing for the balance sheet is how to value
inventory. When the time comes to do this at the end of the
year - it's called 'stock taking' - we have to see how the
com pany values its unsold stock, its work-in-progress, its raw
materials. We have to check that they do it properly and have
counted every single part, and that they do it at the right time.
The question of valuing unsold stock is complex: is it valued at
cost price or at sale price? If it is old stock that is not worth as
much, then have they made a proper depreciation?
IN TE R V IEW E R Anything else on the asset side?
CLA U D IA Receivables. Receivables get a lot of focus during an
audit because if the trade receivables are not accounted for
properly, then the sales are also not correct. In fact we check by
sending out letters to the custom ers to ask them independently
how much money they owe the company.
IN TER V IEW ER And on the liabilities side, what's a typical issue that
the auditor would focu s on?
CLAUDLA A typical issue is their provisions for risks. There
may be an item for provisions for a particular risk —m aybe a
lawsuit - but in fact the cost is already partially paid and
accounted for. A big thing with provisions is that it's a w ay to
m inim ize tax. Im agine that you have a big profit one year —
you push some of that into provisions and you reduce the
profit for that year and you pay less tax. And then imagine that
next year you make a loss. No problem - surprise, surprise,
you didn't need the provisions after all and the money comes
back into the accounts and it looks like the loss isn't so bad.
IN TERV IEW ER Is that legal?
C LA U D IA No. You have to check that the am ount for provisions
is reasonable.
IN TERV IEW ER OK, thanks. I'd like to finish with a big picture
question. In the auditing world people talk about 'the big fou r -
that's Deloitte, Ernst b Young, KPMG and PwC. It used to be 'the
big five', but o f course Andersen collapsed in 2002 along with Enron.
CLA U D IA That's right.
IN TE R V IEW E R Four is not much choice fo r such an important area,
and there always seems to be some scandal or other happening. The
Am erican arm o f Ernst was banned in 2004 fo r reckless and negligent
conduct; in 2005 KPMG in the States was involved in a case o f
alleged tax fraud, although it never zvent to court; and in 2006 the
Japanese fin an cial regulator suspended PWC's audit licence fo r tivo
 months, The suspicion is that the regulators are going easy on these
companies in case there's another collapse, and then there would be
even less choice.
C L A U D IA You're right, and because I w ork for a medium-sized
com pany I am very critical of all that. I would like to see more
use of second-tier com panies like us in auditing the big four.
But another solution is com pulsory rotation - clients should be
required by law to appoint a new firm every few years. That
would stop ihe relationship from getting too close, and the
incom ing firm would have an incentive to look at the work of
its outgoing predecessor.
8 In te rv ie w w ith a p o rtfo lio m anag er
IN T E R V IE W E R You work as a portfolio m anager in an investment
bank based in London. Can you begin by briefly describing your job?
JO OK. Investm ent banks advise com panies on financing, and
on m ergers and acquisitions. They help to tackle the legal
issues surrounding those things - so they are like financial
consultants for com panies. 1 personally work for the asset
m anagem ent arm of the bank - that means looking after a
client's money. Our clients are mostly pension funds.
IN T E R V IE W E R Just explain what a ‘pension fund' is.
JO Our clients are US corporates with a global business. Any
large com pany - or any US state authority or public authority
for that m atter - has a pension fund for its em ployees. It needs
to pay out large sum s of m oney over many years. We manage a
part of the capital in the fund. We offer them the ability to earn
high investm ent returns and to diversify their risk.
IN T E R V IE W E R You m anage ju st a part o f the capital in their fund?
JO Yes. There are several asset m anagers involved. A US pension
fund will obviously include a lot of US investments, and these
are managed by one or more investm ent banks based over
there. But the fund will also hold equity positions in markets
all over the world. It diversifies their risk. And usually we are
the sole overseas provider - w e offer a high level of expertise in
m anaging these non-US equities. In my own job, I manage just
the investm ents in Japanese companies.
IN T E R V IE W E R And what about non-equity holdings such as bonds?
JO The manager of their bond funds will be com pletely different
again.
IN T E R V IE W E R OK. So the client, the pension fun d, gives you a pot
o f m oney to invest. Do you have to g et back to them with your ideas -
how much liaison is there betiveen you and them ?
JO The norm al relationship is that we'II draw up w hat we call
an investm ent m andate. That puts down on paper some legal
restrictions on w here we can invest. There will also be
guidelines like the percentage of the fund that can be in
emerging m arkets, or in sm aller com panies. Som etim es there
will also be an ethical com ponent in the mandate - types of
com panies that we cannot invest in. And then we report back
to the client on a regular basis - m onthly or quarterly - both in
w ritten reports and in face-to-face meetings.
IN T E R V IE W E R Right. So your job is to look at all o f the stocks listed
on the Japanese stock market, and then pick the ones that you 're going
to buy. How do you do that?
JO We do a mixture of top-dow n and bottom -up analysis. In my
particular bank die house style is to be more bottom-up.
IN T E R V IE W E R Can you explain 'top-down' and ‘bottom-up'?
JO Sure. Top-down m eans looking at the economy. Looking at
m acro them es that will support the business going forward. So
for instance if we believe in strong personal consum ption
trends over the next three or four years, then we will obviously
be drawn towards the retail sector, or if we think Japanese auto
purchasing is going to be weak, we are unlikely to take big
positions in som e of the auto stocks.
IN T E R V IE W E R And bottom -up analysis?
JO Bottom -up means looking at the m icro dynam ics within a
company. It's very com pany specific. We spend a lot of time
talking to com pany managers, looking at their balance sheet,
looking at their product pipeline, and really getting to know
our com panies very w ell. If you want me to be more technical,
I can say that we look for com panies with a very high return
on equity, or return on invested capital, and we focus very
heavily on the ability to sustain those returns going forward.
P/e is also very heavily used, as well as things like price-to-
book ratio. Basically these are all metrics that w e use to find
stocks where the valuation is appealing.
IN T E R V IE W E R OK. But other asset m anagement companies are
doing exactly the sam e thing fo r their clients; they're looking at
exactly the same, information. H ow do you get an edge on your
competitors?
JO Good question. W hat w e're all trying to do is look at
inefficiencies in the m arket. W e're trying to find som e
inform ation som ew here that is not being discounted in the
share price. The only way to do that is by the quality of your
analysis, and that boils down to the quality of the analysts -
the people you have doing the work. We have a global network
of analysts and w e're very good at picking up trends before
they reach others in the market. Let me give you an example.
W hat's happening to sales of PCs in the U S is crucially
im portant for a lot of Japanese technology-related stocks, and
so our US analysts talk to our Japanese analysts and we get a
very clear picture of w hat's likely to happen. It's the
com bination of excellent analysts w orking in a global team that
gives us a very powerful com petitive advantage.
IN T E R V IE W E R OK - and what about you ? Are you one o f the
analysts?
JO No, I'm a portfolio manager. The analysts work for me. They
are the experts at the com pany le%rel and the sector level. I
listen to all the analysts and then decide on how to make up
the overall portfolio for the whole Japanese market. Also, I am
a little more aware of som e of the m acro factors, and I can
decide between sectors. I take a broader view of Lhe market.
But the interaction between us is very close and very informal
- it's very much an ongoing debate,
IN T E R V IE W E R W here do you stand on the argum ent between
fundam ental and technical analysis? I know that technical people look
at charts, look at support and resistance levels, look at momentum
and volume, and all o f those things can be done without knowing
anything at all about the com pany or the market. It's a very different
approach.
JO Generally we don't use technical analysis here. We think it
has very little to offer, at least for equities. But you have to be
careful - for exam ple in Japan local investors do look at key
price points for stocks, and so autom atically it does have some
relevance. You find that technicals are used a lot more in areas
like com m odities and currencies where people move in and out
117
 of the market very quickly. And also with currencies there's
very few drivers of the price m ovem ent - very few
fundam entals to analyse like we do with stocks —and so it's
helpful to use the charts.
IN T E R V IE W E R Great. I'd like to fin ish with a very different
question.
JO OK.
JN T E R V IE W E R What is a typical crisis in your job? What's your
worst nightmare when you walk in at nine o'clock in the morning?
JO There are two big things that can go wrong. O ne is that you
walk in and you find that a com pany that you have invested in
has a profit warning. So basically it's not going to make as
much money as you or the market think. O bviously the first
reaction is a big drop in the share price. H ow do you cope with
that? Well, you have to adjust to the new reality very quickly.
Normally the biggest question is: is it a structural problem w ith
the company, or is it a temporary decline in. earnings? If you
think it's a structural deterioration, then you need to sell your
holding, and to decide when - maybe very fast. If it's
temporary, then normally you'll be looking at a good price to
add to your position - in effect looking to challenge the market
which you think has an incorrect assessm ent of events. Another
problem would be if you came in and you heard that a
company was issuing a lot more shares. That m eans that the
equity is diluted - with the shares you hold, you own less ol
tire com pany than you did yesterday. That is generally
destructive of share prices. B ut you have to look at why they
are issuing more shares - what they’ll be using the money for.
For instance, if they were to use that money to buy a
com petitor and you thought it was a very good deal, then it
could be very supportive o f the share price.
IN T E R V IE W E R OK, thanks.
9 In terview w ith an HR director
IN T E R V IE W E R Jurgen, you've worked in human resources for more
than TO years, including as part o f the senior management team. I'd
like to go through som e key HR issues with you. W e ll begin with
recruitment. Can you talk me through a typical recruitment process?
JU R G E N Yes. It's a shared responsibility between the line
manager who has the vacancy and the HR department. The
four steps in the process are: first of all, to define the
requirements o f the job and prepare a job description, and
usually it's the line m anager w ho'll do that because they know
the job better than anyone in HR does. But HR has a role in
making sure that all the legal and ethical requirem ents are met,
so as not to discriminate - even unintentionally - on grounds
of race, gender, religion and increasingly age. The second step
is to attract the candidates. You can go inside or outside the
company, or both. The third step is to select the candidates. You
compile a longlist w hen you've got the applications in, and
then a shortlist. First consideration is normally given to
internal candidates, because opportunities for promotion are an
important motivating factor inside the company and it's
important to grow talent within the organization. You'd soon
lose your best people if they can't progress and develop their
careers within their ow n organization. But som etim es you're
looking for new skills that your organization needs, or perhaps
new mindsets, or it might be a new location where your
JIB
company h asn't previously operated and it m akes more
business sense to hire locally.
IN T E R V IE W E R And then you do the interviews.
JU R G E N That's right, that's the final step. In manv companies
the interviews will be in two rounds. First som eone from FIR
will do an interview where they'll look at the general personal
qualities of the individual, and then the line manager will do a
separate interview where they look at the functional skills. In
the FTR interview we are looking for a positive personality, a
flexible attitude, good team-working skills, and other qualities
like honesty and the ability to handle pressure. We want to
know whether this person can fit in around here in terms of
com pany culture, and whether they can grow with the
business. We want to employ and promote som ebody w ho can
be doing bigger jobs in five years' time.
IN T E R V IE W E R H ow do you assess these personal qua!ilies? You
can't quantify them.
JU R G E N Well it's an art, not a science, you're right, but the
answ er is that you look at the track record. Let's go through
some questions one m ight ask to get that kind of information
out. 'W hat have been the most notable achievem ents in your
career?' 'W hat sort of problems have you successfully solved
recently?' 'W hat have you learnt from your present jo b ?’
IN T E R V IE W E R O f course w e’re assuming here that the person has a
track record. What about an interview with som eone straight out o f
university?
JU R G E N Well I suppose that basically we're looking for energy,
determination and drive, and an interest in learning new
things. There are many ways to see that, even it the candidate
doesn't have a career history to refer to. For example, sport,
travel, involvement in voluntary associations —all those kinds
of things. Then interest in current affairs and w hat's going on
in the world, interest in other cultures. Language skills is
another obvious point. And it's usually a good sign if they take
the initiative in the interview and ask us questions It shows
they've got self-confidence, they are interested, they want to
find out more.
IN T E R V IE W E R OK. Can toe talk a little about pay and
compensation? In the modern business world perform ance-related pay
is a well-established idea. But it has its critics.
JU R G E N HR is not a charity department. We're not here to be
nice to people. HR is here to help the business meet its
objectives. Bonuses are acceptable if they're seen to be fair.
Som e sales people, for exam ple, will have as much as SO, 60 or
70 per cent of their earnings based on what they sell. Other
people will have a percentage of their pay based on their
annual appraisal, or the general success of the business over
the year. The system is designed to create a high performance
culture. You reward good perform ance and you do not give
money to people who are not delivering. People don't
com plain - in fact they com plain about the opposite, when a
colleague is demotivated and underperform ing and yet they
receive the same salary.
IN T E R V IE W E R You mentioned appraisal just now, and o f course
appraisal is important for many things apart from salary -
promotion, identifying training needs, and so on. What are the key
issues in the appraisal process?
JU R G E N Appraisals, or perform ance reviews as they're often
called, are absolutely fundamental to good m anagement
 practice. They are usually annual, and involve looking at
criteria that are agreed betw een the line manager and the
em ployee beforehand. The aim is to take an overall view of the
progress that the individual has made, and then use that to
plan that person's job for the follow ing year. But the process of
appraisal is becom ing more com plex - people work in a global
environm ent in different countries and work in a matrix
organization with different m anagers. We have to collect data
from a num ber of sources in order to discuss with the
employee how things have been this year, w hat's gone well,
what hasn't gone well, where do you think you need to
improve, w hat skills or training you might need for the future
and so on. That joint discussion will then result in some kind of
perform ance rating, and this w ill often be directly linked to pay
increases or opportunities for prom otion.
IN TERV IEW ER W hat is the division o f responsibility between HR
and the line m anager in the appraisal process?
JU R G E N The line manager knows how to rate functional
performance. We don't do that. O ur role is to develop the
appraisal tools and train the m anagers in how to use them, to
make sure that a w ide range of skills are being assessed, to
make sure that the process is identifying and fast-tracking
future leaders, and quite sim ply ju st to monitor that it7s being
done. But I w ant to em phasize that the employees are fully
involved and they them selves are often the best people to
judge their own job perform ance.
IN TERV IEW ER Right. Finally I'd like to turn to the question o f
motivation. We talked earlier about salary and about opportunities fo r
promotion, but we know that these are not the only way to motivate
people.
JU RG EN Absolutely. A part from the tangible rewards there are
what I would call intrinsic motivators. The first is autonomy.
This is the am ount of control that you have over your work.
The responsibility that you have. The second is variety - a lot
of evidence suggests that different types of work, even job
rotation, can help im prove motivation. The third is the extent
to w hich the job uses your abilities. An individual will enjoy
doing a job that requires them to use abilities that they have
and that they value. The fourth aspect, I think, is consistent
meaningful feedback. People w ant to know how they are doing
- they want to be advised from time to time about their own
perform ance and they w ant also to be involved in evaluating
their own perform ance. The fifth thing I think is the belief that
the task is significant. Nothing is more dem oralizing than to
feel that your com pany doesn't really care about the project
you're working on. And notice that all these five things are
exactly the kind of things that can be discussed in an appraisal
interview.
IN TERV IEW ER Right. That's a very complete answer. Thank you
ven/ much.
10 In terv ie w w ith an IT co nsultant
IN T E R V IEW E R You work fo r an IT consultancy. Is that right?
JA N A That's right. We offer IT solutions - software, hardware,
system integration, m aintenance and support, consulting -
everything. We don't represent any one hardware or software
com pany - we can recommend to our clients whatever solution
is best for them. So we talk to our clients, we analyse their
needs, and we suggest how their IT budget can be spent most
effectively. It's a business approach - we see IT very much as a
way for a com pany to add value. We don't see it as toys for the
boys - w e're business people, not techies.
IN TE R V IEW E R OK. So what kind o f solutions are we talking about?
JA N A I'll tell you about applications softw are because it's the
most interesting. But I do w ant to em phasize that applications
software cannot be seen in isolation - it sits on top of system s
software like the operating system , and also the hardware.
IN TE R V IEW E R Is that called the platform?
JA N A Yes, and it's im portant to know w hich applications can
run on your platform. OK, let's begin with ERP, because ERP is
the umbrella. ERP stands for Enterprise Resource Planning. It
integrates and autom ates the business practices of the
organization. It's modular. It can include m odules for the
supply chain, manufacturing, operations, sales, distribution,
finance, e-com merce, everything. It has functionality right
across the organization.
IN T E R V IEW E R Can you give me an exam ple o f one specific module?
JA N A A good exam ple is CRM, Custom er Relationship
M anagem ent. In the past, inform ation about one individual
custom er could have been anywhere on the system - financial
information in one database, sales inform ation in another
database, and maybe custom er support interactions not
recorded anywhere - som eone on a helpdesk just dealt with a
phone call and then forgot about it. With CRM you can bring
all that together and have a single view of your customer. It
means that w hoever comes into contact with them - pre-sales,
post-sales, accounts, w hoever - they all see the sam e
information, and they all log the results o f their interaction for
others to see. You can also analyse inform ation from all the
custom ers together, and that helps you to see trends in buying
behaviour, make forecasts and so on. From the custom er's
point of view they get a more unified and intimate experience -
it feels like they are dealing with the sam e company, regardless
of the point of contact.
IN TE R V IEW E R Is there any downside fo r the customer? I'm
thinking about privacy issues, or aggressive direct m arketing from a
sales person who knows everything about you.
JA N A You have to be careful. It's true that it's very easy to see
som eone's buying habits. You can easily see a history of what a
custom er has bought, and when, and also w hy - because sales
staff will have made notes about the sales conversation and
entered them on the system . And you're right, the next step
from that is to anticipate what the custom er m ight want to buy
and make a cold call to them about a new product or
something. But custom ers don't like that, and if you overdo it,
they resist and you lose their trust.
IN TE R V IEW E R You said that ERP was modular, and you've given
us an exam ple o f one module. Can you buy just one m odule and
nothing else?
JA N A You can, but it w ouldn't make sense. If you were a small
com pany and you just wanted CRM, you would buy a stand­
alone CRM package. ERP is for large organizations - we use
the big vendors like SAP and we recom m end a w hole series of
their modules across the different business departments.
IN T E R V IEW E R Can you give me one more exam ple o f an ERP
module, besides customer relationship management?
JA N A Yes, a good exam ple that shows the im portance of
119
 integration across the organization is document management.
In the early days of com puting people talked about the
paperless office, but in fact the amount ot paper increased
because of all the print-outs and photocopies. Now we really
can have a paperless office. A document - like an email or a
letter or a legal contract or a report - is purely in electronic
form and with document managem ent you can track and store
it. For example, vou can specify exactly who should sec it, and
what they should do with it, and where it should go next. Take
a sales contract: the sales person creates the contract based on
an existing template, then it is sent to a financial person for
checking, maybe a legal person also has to see it, and the sales
director will also want to see it. Each person might want to
modify it, in which case the changes have to be flagged up and
the document sent back to everyone else for checking again.
Finally all the key decision-makers have to sign it electronically
to say that it's OK. It's a complex process, and document
management software makes it all very easy.
IN TERV IEW ER OK, so a big company has all these different
modules. But not everyone in the company needs the same
information. There's a huge amount o f information on the system -
but that's not the same as useful knowledge.
JANA You're right. And so we have another kind of software,
called a portal, that can access every application but that is set
up individually for different people so that they only see the
information that is useful for them. There's also som ething new
called 'm eaning-based com puting' that includes advanced
search of a com pany's databases, knowledge management and
so on. It allows managers to analyse unstructured information.
IN TERVIEW ER Right. That's very interesting. To finish, I'd like to
ask you about the future. What do you think are going to be the
trends in your industry over the coming years?
120
JA N A The big trend is the way that everything is moving to the
network - all kinds of data and all kinds of software At the
end of the day all devices are the same - just a screen, a means
of input like a keyboard, and a connection to the network. It
doesn't matter whether we're talking about a PC, a mobile
phone, a fixed-line phone, a gam es console, a television, a
security camera in your hom e, or som ething built in to your
fridge door in the kitchen. You don't need much com puting
power in the device its e lf - ju s t a connection to the network.
Any data or software that you need is right there on the
network ready to access and use. It make's working' from home
easy, or w orking from a hotel room, or working off-site with a
client. All you need is a device and, for security, a VPN - a
Virtual Private Network.
IN TE R V IEW E R A VPN?
JA N A W hen you connect to a private company network using
the public telecomm unications infrastructure it's called a
virtual private network. The VPN gives vou security with a
firewall, encryption and so on.
IN TERV IEW ER It's clear that things like laptops and mnbih phones
can talk to the network and to each other. But what about other
e veryday household objects - like your fridge?
JA N A You need wireless connectivity and an IP address, i hat's
all. With an IP address you have a unique identification on the
network.
IN TERVIEW ER It sounds like that film ‘The Matrix'. In the fu tu re
every object will be on the network and we will be able to experience
everything from everywhere. W hoever controls the network controls
reality.
JA N A It's going to come sooner than you think.
A n sw e r Key
1 In d u strie s a n d co m p a n ie s Exercise 3.3
1 human resources 9 production
Exercise 1.1 10 legal
2 customer services
1 freight 2 household 3 appliances 4 apparel / beverages 11 shipping
3 quality control
5 facilities 6 real estate 7 brokerage 8 utilities 12 finance
4 research and development
Exercise 1.2 5 public relations 13 marketing
1 equipment 2 machinery 3 device 4 appliance 6 project management 14 accounts
7 administration 15 purchasing
Exercise 1.3 billing 16 procurement
8
1 consumer staples 2 consumer discretionary
Exercise 3.4
Exercise 1.4 market research / cost centre / earnings growth / management hierarchy
1 ExxonMobil / Oil and gas / customer needs / product portfolio / core business / distribution channel
2 PwC / Auditing / mission statement / market share / shareholder value / brand loyalty
3 Citigroup / Diversified financial services
4 Intel / Semiconductors and semiconductor equipment Exercise 3.5
5 Proctor & Gamble / Household and personal products 1 market research 6 cost centre
6 GE / Industrial conglomerates 2 core business 7 earnings growth
7 Pfizer / Pharmaceuticals, biotechnology and life sciences 3 shareholder value 8 management hierarchy
8 Wal-Mart / Food and drug retailing 4 product portfolio 9 mission statement
9 UPS / Air Freight and logistics 5 brand loyalty 10 distribution channel
10 Cisco / Communications equipment Exercise 3.6
Exercise 1.5 1 check 2 coordinate 3 assign 4 implement 5 control
1 raw materials / finished goods 1 fabrication 6 ensure 7 adapt 8 monitor 9 evaluate 10 determine
2 Consumer durables / household appliances
Exercise 3.7
3 Non-durable goods / food and beverages
1 state-of-the-art 2 tailor-made 3 one-stop 4 depth
4 business solutions
5 outdated 6 debt 7 w orkflow 8 range
Exercise 1.6 9 overhead (BrE overheads) 10 climate 11 alliance
1 Board / senior management team 2 venture / enterprise 12 transfer 13 start-up 14 barriers 15 shortage
3 debt / liability 4 self-employed / freelancer
Exercise 3.8
5 firm / partnership 6 m erger/acquisition
1 lack (or shortage) 2 over-reliance 3 reps (representatives)
Exercise 1.7 4 facility 5 saturation
1 issue 2 run 3 appoint 4 guarantee 5 underwriting
Exercise 3.9
6 reinvested 7 held 8 constraints
2
Exercise 1.8
Exercise 3.10
1 d 2 h 3 g 4 e 5a 6b 7 f 8c
Specific, Measurable, Agreed, Realistic, and Time-specific

2 G lo b a liz a tio n a n d e c o n o m ic p o licy

4 Managing p e o p le
Exercise 2.1
Exercise 4.1
1 m erg e/jo in t ventures 2 subsidiary / subsidy 3 redtape
1 morale 2 esteem 3 acknowledgem ent 4 self-fulfilment
4 tariffs / quotas 5 exchange rates 6 assets
5 achievement 6 em powerm ent 7 enabling 8 assertive
Exercise 2.2 9 commitment
1 recovery / upswing 2 growth / boom / expansion
Exercise 4.2
3 recession / contraction / downturn / slowdown
4 depression / slump 1 L 2 M 3 M 4 L 5L 6M 7M 8L

Exercise 2.3 Exercise 4.3

1 enrichment 2 outcome 3 autonomy 4 meaningfulness
1 inward investment 2 competitive advantage
5 enlargement 6 assignment
3 deeper involvement 4 contractual agreement
5 mobile communications 6 trading partners / trade surplus Exercise 4.4
Exercise 2.4 a) 2 b) 3 c) 4-7 d) 8 -9 e) 10-11
1 licensing 2 franchising 3 import / export 4 joint venture Exercise 4.5
5 strategic alliance 6 outsourcing 7 foreign subsidiary achieve, meet, fulfil, reach an objective / define, establish, identify, set an
Exercise 2.5 objective / fail in, fall short of an objective
1 T 2 F 3 T 4F address, deal with, handle, tackle a problem / cause, create, give rise to a
5 increasing / provide a stimulus to / inflation problem / clear up, overcome, resolve, solve a problem
6 Increasing 7 increasing 8 increasing 9 increasing accept, agree to, agree with, take up a suggestion / come up with,
make, offer, put forward a suggestion / reject, rule out, turn down a
3 C o rp o ra te s tr a t e g y an d stru c tu re suggestion
arrive at, come to, make, reach, take a decision / defer, postpone, put off
Exercise 3.1
a decision / overrule, overturn, reverse a decision
1 key accounts 2 Chief Operating Officer
collective, joint, unanimous decision / critical, crucial, important, key
3 cross-functional teams 4 grassroots 5 subordinates
major decision / difficult, hard, tough decision
6 development / consolidation / withdrawal
anticipated, expected, likely outcome / desirable, favourable, satisfactory,
Exercise 3.2 successful outcome / eventual, final, outcome
1 f 2 e 3 h 4d 5a 6 g 7b 8c 9 10 j

121
Exercise 4.6 Exercise 6.5
1 Innovator 2 Evaluator 3 Specialist 4 Implementer 1 improvement 2 culture 3 process 4 marketplace
5 Shaper 6 Finisher 7 Coordinator 8 Team worker 5 competitors 6 metrics 7 cycle 8 resistance
9 Promoter
Exercise 6.6
Exercise 4.7 first-rate, high, top, outstanding q u ality/lo w , poor, inferior quality/
1 inaccurate / imprecise 2 careless 3 innovative / radical uneven, variable quality
4 indecisive / hesitant 5 inefficient / wasteful assess, evaluate, measure, test quality / demand, insist on quality / keep
6 unenthusiastic / bored 7 inflexible / rigid 8 laissez-faire up, maintain, preserve quality
9 hard-working 10 impatient 11 impolite / rude 12 unreliable begin, go into, start up production / boost, increase, ramp up, speed up
Exercise 4.8 production / cut back (on), reduce, scale down production
1 sensitive 2 sensible be in charge of, supervise the process / keep track of, monitor the
process / rationalize, simplify, streamline the process

5 O p e ra tio n s m a n a g e m e n t excess, spare capacity / full, maximum, peak, total capacity / limited,
reduced capacity
Exercise 5.1
carry, have, hold, keep inventory / dispose of, get rid of, reduce
1 lead 2 concept brief 3 feasibility 4 vulnerability
inventory / reorder, replace inventory
5 first-tier / upstream 6 Procurement / sourcing 7 vendor
8 core competencies Exercise 6.7
1 cover a wide range of activities 2 determine customer needs
Exercise 5.2
3 deal with complaints 4 be adopted worldwide 5 keep records
1 technical expertise 2 a high level of productivity
6 carry out internal audits 7 be expensive to implement
3 fast throughput 4 a frequently updated product range
8 be dedicated to improving processes
5 downside risk 6 vertical integration 7 economies of scale 9 measure performance against a standard
8 an error-free process
10 match the best practice of your competitors
Exercise 5.3
1 draw up a bill of materials 2 reduce design complexity 7 M a r k e tin g s t r a t e g y a n d P r o d u c t d e v e lo p m e n t
3 migrate an operation to the web 4 put upward pressure on prices Exercise 7.1
5 have a competitive advantage 6 roll out a new product
1 quantitative / qualitative 2 end-user 3 value-for-money
7 carry out a feasibility study 4 benefits/features 5 trademark 6 mark-up / breakeven
8 turn an initial idea into a concept brief
Exercise 7.2
Exercise 5.4
1 product lines 2 product mix 3 brand names
1c 2 f 3d 4 i 5a 6 j 7 g 8k 9b 4 brand loyalty 5 brand awareness 6 market leader
10 h 111 12 e 7 market share 8 profitability
Exercise 5.5 Exercise 7.3
1 specifies 2 builds 3 tested 4 compile 5 hooked up 1 making a loss 2 early adopters 3 similar offerings
6 drilling 7 welding 4 advertising budgets 5 differentiate products
Exercise 5.6 6 reaches saturation 7 consumer tastes

1 parameters 2 specifications 3 criteria 8 withdrawn from the market

Exercise 5.7 Exercise 7.4

la define = specify = establish = set 1b meet = fulfil = satisfy 2 a 1 consumer needs 2 gaps in the market 3 published sources
4 the activity of competitors 5 a representative sample of people
Exercise 5.8 6 statistically reliable 7 carrying out a survey
1 sophisticated 2 foreseeable 3 penalties 4 straightforward
5 show up 6 quotation 7 surcharge 8 forecast
Exercise 7.5
9 driving down 10 run 1 requirement 2 USP 3 specification 4 benefit 5 feature
6 characteristic 7 estimate 8 quotation 9 budget
Exercise 5.9
1 setbacks 2 stakeholders 3 Gantt chart 4 small print
Exercise 7.6
5 milestones 6 constraints 7 scope 8 track 1 d, i, k 2 b, f, h 3 a, e, j 4 c, g, I

Exercise 7.7
6 Production sales campaign, drive, promotion / sales figures, volume / sales force,
Exercise 6.1 personnel, staff, team
1 bottleneck 2 throughput 3 capacity utilization disappointing, poor, weak sales / export, foreign, overseas sales / global,
4 flt-for-purpose 5 value-for-money 6 reliability international, worldwide sales
7 durability 8 defect bring out, introduce, launch a product/ discontinue, take ... off the
market, withdraw a product / improve, modify, upgrade a product
Exercise 6.2
attractive, fair, reasonable price / exorbitant, high, inflated price / retail,
planning 3, sequencing 6, scheduling 5, dispatching 2, loading 1,
selling price
monitoring 4
agree on, agree to, arrive at, establish, set, work out a price / bring
Exercise 6.3 down, cut, lower, reduce a price / increase, push up, put up, raise a price
1 steel making 2 an automobile plant 3 clothing manufacture booming, expanding, growing, healthy, strong market / depressed, flat,
4 aircraft manufacture 5 construction of a building sluggish, weak market / niche, specialist market
Exercise 6.4 be forced out of, withdraw from the market / break into, enter the
1 downtime 2 changeover time 3 lead time 4 cycle time market / corner, dominate, monopolize, take over the market
5 overtime 6 set-up time 7 time-to-market 8 lag time

122
8 Distribution and Promotion 10 Financial markets
Exercise 8.1 Exercise 10.1
1 fulfi ment 2 outlet 3 prospect 4 billboard 1 securities 2 equities / shares / stocks 3 bonds
5 repeat purchases / cross-selling 6 middleman 7 warehouse 4 money market instruments
S merchandising Exercise 10.2
Exercise 8.2 1 mutual 2 dividends 3 principal / term 4 treasury
1 custo m er/client 2 catalogue / brochure Exercise 10.3
3 promotion / advertising 4 commercial / spot 1 tracker fund 2 capital growth 3 fixed rate 4 junk bond
5 endorsement / sponsorship 6 agent / broker
5 risk management
Exercise 8.3 Exercise 10.4
1 brand identity 2 convenience store 3 direct mail
1 first group: booming / bull / rising / strong
4 distribution channel 5 in-store display 6 press release
second group: bear / depressed / falling / weak
7 product placement 8 public relations
2 first group: acquire / buy / purchase
Exercise 8.4 second group: have / hold / own
1 Prospecting 2 Approach 3 Presentation 4 Demonstration
Exercise 10.5
5 Closing 6 Answering objections 7 Follow-up
1 S&P 2 Nasdaq 3 Dow 4 DAX 5 CAC 6 FTSE
Exercise 8.5
Exercise 10.6
change 5 and 6 so that 'Answering objections' comes before 'Closing'
a) 2 b) 1 c) 4 d) 3
Exercise 8.6
Exercise 10.7
I newspapers 2 magazines 3 television 4 radio
1 growth 2 income 3 income + growth
5 outdoor 6 direct mail 7 internet

Exercise 8.7 Exercise 10.8

1 investment bank 2 pension fund 3 mutual fund
1 coverage 2 placed 3 target 4 junk 5 eyeballs
4 insurance company 5 endowm ent
Exercise 8.8
Exercise 10.9
1 inbound logistics 2 materials handling 3 outbound logistics
4 customer returns 5 end user6 warehouses 7 retail outlets 1 price elasticity 2 capital requirements 3 ease ofsubstitution
8 ex-works 9 fob 10 cif 4 market penetration 5 barriers to entny

Exercise 10.10
9 Accounting and financial statements 1 market capitalization 2 earnings growth 3return on equity
Exercise 9.1 4 p/e ratio 5 dividend yield
i own / owe 2 depreciation / written off / amortization Exercise 10.11
3 receivable / payable 4 inventory 5 accrued 6 leverage 1 market capitalization 2 p/e ratio3 earnings growth
Exercise 9.2 4 dividend yield 5 return on equity
1 variable costs 2 direct costs 3 fixed costs 4 indirect costs Exercise 10,12
5 operating costs 6 capital expenditure 7 marginal costs 1 resistance 2 support 3 volume 4 breadth
Exercise 9.3 5 momentum 6 trading channel 7 leadership 8 liquidity
1st group: costs, expenditure, expenses, spending Exercise 10.13
2nd group1earnings, profit 1 buyer 2 seller 3 exports 4 imports 5 raises 6 rises
3rd group: income, revenue, sales, turnover 7 Reserve 8 Bank
Exercise 9.4
Preparation o f accounts: ledger, trial balance, invoices 11 Human resources
Profit and Loss Account; cost of goods sold, EBITDA, operating expenses Exercise 11.1
Balance Sheet: accounts payable, shareholders' equity, current assets 1 payroll 2 discrimination / disability 3 in-house
Exercise 9.5 4 headhunting 5 shortlist 6 track record 7 appraisal

Credit control: 2, 4 Stock control: 1, 5 Expenditure control: 3, 6 Exercise 11.2

Exercise 9.6 Appraisal process: 3, 6
Debt financing: 2, 3, 6 Equity financing: 1, 4, 5 Training and development: 1, 5
Worker-management relations: 2, 4
Exercise 9.7
Id 2c 3b 4e 5a Exercise 11.3
1 sa lary /w ag e 2 candidate / applicant 3 mentoring / coaching
Exercise 9.8
4 employees / staff 5 commission / bonus
bring down, cut, lower, reduce costs / calculate, figure out, work out
6 retirement / pension
costs / meet, pay costs
br:ng in, earn, generate, make profits / jeopardize, put at risk profits/ Exercise 11.4
plough back, reinvest profits 1 ability 2 competence 3 skill 4 experience
accurate, exact, precise figure / approximate, ballpark, rough, round 5 qualification 6 background 7 knowledge 8 aptitude
figure / deceptive, dubious, misleading figure Exercise 11.5
announce, issue, publish, release the figures / check, examine, go over, Group A: be employed / be appointed / be headhunted / be hired / be
go through, si.udy the figures / cook, doctor, falsify, manipulate, massage recruited / be taken on
the figures Group B: be dismissed / be fired / be sacked
Exercise 9.9 Group C: be laid off / be let go / be made redundant
1c 2 b, d, f 3a 4e
123
Exercise 11.6 Ex e rcise 13.8
1 qualification 2 experience 3 knowledge 4 skills 1 ✓ 2 / 3 / 4 / 5 /
5 ability 6 competence 7 background 8 experience
Ex e rcise 13.9
9 knowledge 10 aptitude
1 cut 2 deterioration 3 fall 4 growth 5 half
Ex ercise 11.7
6 improvement 7 increase 8 recovery 9 reduction
1 collective bargaining 2 individual grievance 3 layoff-. 10 rise
4 length of service 5 official dispute 6 strikes 7 picketing
E x e rcise 13.10
8 boycotts 9 courtinjunction 10 mediation 11 arbitration
12 legally binding l slight fall 2 steady rise 3 gradual improvement
4 sharp reduction

12 In fo rm a tio n a n d co m m u n ic a tio n te c h n o lo g y E x e rcise 13.11

Ex ercise 12.1 1 pie chart 2 heading 3 title 4 labeled with 5 steep

I legacy 2 documentation 3 device 4 bandwidth Ex e rcise 13.12
5 platform 6 embedded 7 browser 8 warehouse 1 i, k, p 2 c, e, f 3 a, I 4 m 5 j 6 b, d, g, h, n, o
Ex ercise 12.2 Ex e rcise 13.13
1 stability / downtime 2 ensure / secure 3 translate / solution I from / to / of 2 in / of 3 at 4 in
4 measure / efficiency 5 retrieve / trends 5 no preposition 6 between 7 in 8 in / w ith
6 accessibility / intranet 7 enable / devices 8 aggregate / portal 9 to (YTD is a common abbreviation in graphs and charts)
Ex ercise 12.3 10 on (YOY is a common abbreviation in graphs and charts)
I I down 12 into
1 ensure 2 bacfed-up 3 requirements 4 retrieve
5 enable 6 charge 7downloading 8 aggregate 9 portal
14 P re se n ta tio n s - stru ctu re an d k ey p h ra se s
E x ercise 12.4
E x e rcise 14.1
1 stand-alone PC 2 workstations 3 LAN 4 servers
a Could I have your attention, please?
5 WAN 6 intranet 7 firewall 8 encryption
b I'm responsible for new product development here at InfoCon-, (or
E x e rcise 12.5 Here at InfoCom I'm responsible for new product development.)
1 off-the-shelf package 2 wireless connectivity c For those of you who don't know me already, my name is Nancy
3 processing power 4 storage capacity 5 back-office Holmes.
functions
6 intellectual property 7click-through rate d It's always a pleasure to speak to an audience of experienced
8 web page (often written as one word: webpage) professionals like yourselves. I know that many of you have travelled a
long way to be here,
E x ercise 12.6
e On behalf of the company, may I welcome you to this presentation,
1 design / develop 2 provide / supply 3 run / use
f The aim of my talk is to give you some informatieti about our new
4 application / package 5 environment / platform
product line.
6 supplier / vendor 7 old-fashioned / out-of-date
g Please feel free to interrupt me if you have any questions durinu the
8 customized / tailor-made 9 defective / faulty
talk, (or Please feel free to interrupt me during the talk if you have
10 the latest / up-to-date
any questions.)
E x ercise 12.7 h Okay, I'd like to begin by looking at this first slide. C a r the people at
1 running 2 running on 3 software 4 some 5 upgraded the back see okay?
6 updated 7 updates i My presentation will take around forty minutes,
j I've divided my talk into three main parts. First, i'll give you an
Ex ercise 12.8
overview of the different models in the range. Then I'll-move on to
1 off-the-shelf 2 customization 3 forecast 4 project describe the key benefits of each model. And finally I'll say a little
5 procurement 6 stand-alone 7 quote 8 fulfilment about prices.
9 alerts
E x e rcise 14.2
ia 2c 3b 4 e 5 d 6 f 7 j 8 i 9g 10 h
13 Trends, g ra p h s an d fig u re s
E x e rcise 13.1 Ex e rcise 14.4

1 g 2c 3 h 4a 5b 6e 7 d 8f 1a 2c 3b 4 e 5 d 6 f 7 j 8 i 9g 10 h

E x e rcise 13.2 Ex e rcise 14.7

Id 2e 3a 4 f 5b 6c 1 start / looking 2 come / later3 Right / far 4 moving / talk

5 Going / moment 6digress / little 7 getting / to
Ex ercise 13.3 8 turn / question 9 As / see 10 finish / summarize
1 bring /d o w n 2 p u t/ u p 3 bottom out 4 bounce back 11 let / attention 12 pleased /answer
5 pick up 6 take off 7 level off 8 slip back
Ex ercise 14.8
Ex ercise 13.4
Answers given in 14.7
1 grow 2 cannot 3 cannot 4 first two examples
Ex ercise 14.9
Ex ercise 13.5 1 I'm glad you asked that.
1 / 2 X 3 X 4 / 5 / 6X IX 8 / 2 Leave me your contact details and I'll send it to you.
9 / 1 0 / 11 X 12 ✓ 3 Could you be alittle more specific?
Ex ercise 13.6 4 Well, it's a very complex issue.
5 We have time for one last question.
1 shrinking 2expanding 3 growing 4 rising 5 soaring
6 Let me check that I understand.
Ex ercise 13.7 7 What are your own views?
1 rapidly 2 gradually 3 steadily 4 slightly 5 marginally 8 I don't know that off the top of my head.
6 significantly 7 sharply 8 dramatically
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 ANSWER K EY

Exercise 14.10 Exercise 16.4

a 1 b 3 ,6 c 4 ,7 d 2 ,8 e5 1 get down to 2 move on to 3 go back to 4 get back to
5 go over

15 P r e s e n t a t io n s - b e in g liv e ly a n d p e r s u a s iv e Exercise 16.5

'A persuasive presentation' (page 64). How many techniques can you a) You're absolutely right.
spot? b) Yes, I'm in favour of that.
A n sw e rs: fiftieth -fifty (repetition o f w o rd s); life-life (repetition of w ord s), c) That might be worth trying.
w e 'v e seen / w e 'v e seen (repetition o f w o rd s + stru ctu re); anger / joy d) I agree with you up to a point, but ...
(con trast); bad / good (con trast); ch ang e / co n stan t (con trast); innovation, e) I can see one or two problems with that.
q uality and value (rule o f three), cu sto m ers / cu stom ers (repetition of f) I'm sorry, I can't agree to that.
w o rd s); w a n t / w a n t (stop-and-start repetition); for now , and fo r the g) Really? Do you think so?
g enerations w h o fo llo w (con trast); ch ang in g / solid (con trast); they w a n t h) That's not how I see it.
/ they w a n t (repetition of w o rd s + stru ctu re), W h a t ab out you?
Exercise 16.6
(rhetorical question); Perhaps you w a n t (repetition of w ord s + structure /
1a 2d 3 g 4 h 5b 6c 7 e 8 f
rule of three); W e have a plan that's right for you (repetition of w ord s +
structure / rule of three); an accident - or w o rse ? (em otional language), Exercise 16.7
golden years (em otional lang uag e); fam ilies / fam ilies (stop-and-start 1 Shall w e move on? 2 I think w e're losing sight of the main point.
repetition); pension plans, health plans and life in surance (rule of three), 3 Can I get back to you on that? 4 Yes, exactly.
those are th e things (repetition o f w o rd s + stru ctu re); happy w o rk e r / 5 Let me put it another way.
productive w o rk e r (rep etition o f w ord s + stru ctu re); individuals, fam ilies
and business o w n e rs (rule o f three); take tim e today (repetition of
Exercise 16.8
sounds); to .. . tod ay to ... to m o rro w (repetition of structure / contrast). 1 suggestion 2 proposal 3 offer

Exercise 1S.1 Exercise 16.9

1 W h a t/ w a it in g 2 W h e re / go 3 H o w /d o I put forward / make 2 accept / take up 3 reject / dismiss
4 W hen / expect 5 W h y / keep on 6 H ow m uch / is 4 come up with / think of 5 take part in / be involved in
6 come to / reach 7 raise / bring up 8 deal with / tackie
Exercise 15.2 9 reconsider / reassess 10 throw it open for / open it up for
1 im provem ent / progress 2 helpful / effective 3 g ro w / boom
I I a sensible / reasonable 12 a sensitive / difficult
4 ch oice / variety 5 w o n d e rfu l / glorious 6 im p ortant / m ajor 13 a realistic / feasible 14 a m in o r/sid e
Exercise 15.3 15 an absurd / ridiculous 16 a constructive / fruitful
1 know ledg e / inform ation 2 line / range 3 explanation / reason 17 a h ard /to u g h 18 a detailed / in-depth
4 to p ic / is s u e 5 in ternational / global 19 an easy / straightforward 20 an exploratory / initial

Exercise 15.4 Exercise 16.10

1 one / t w o 2 lig h t/ s tro n g 3 classical / m odern 1 come up with / feasible 2 take up / reasonable
4 not cheap / ch eap (o r cheap / special) 5 today / tom orrow 3 put forward / ridiculous 4 bring up / sensitive 5 tackle
6 involved in / exploratory 7 took part in / fruitful
Exercise 15.5 8 open it up for / in-depth 9 reached / tough
1 clean / m aintain / running costs 2 co m m itm ent / drive / vision 10 straightforward
3 highly profitable / w e ll-ru n / future
Exercise 16.11
4 custom er needs / distribution ch ann els / tim e-to-m arket
1 / 2 X 3 / 4 / 5X 6 / IX
Exercise 15.6
Exercise 16 12
a) m ake a killing b) corner th e m arke t c) get off the ground
d) cook th e books e) com e und er fire f) keep an eye on things 1 a proposal 2 an effort to do sth 3 a demand
g) get a piece o f th e action h) put my foot in it 4 a difficult challenge 5 an issue
i) spend m oney like w a te r j) be in the red k) sell like hotcakes
I) be a real hig h-flyer m) see it in black and w h ite 17 S o c ia l E n g lis h a n d c u lt u r a l a w a r e n e s s
n) get m ore bang for you r buck o) be a big fish in a sm all pond Exercise 17.1
Exercise 15.7 1 this 2 too 3 Pleased 4 doing 5 going 6 life
1 h 2 o 3 e 4 1 5 g 6 j 7 b 8 d 9 n 7 introduce 8 must 9Fine 10 good 11 appreciate it
10 m 11 f 12 a 13 k 14 i 15 c 12 take 13 us 14 Still or sparkling?

Exercise 15.8 Exercise 17.2

1a 2 j 3 h 4 f 5 c 6 e 8 d 9 k 1 a /
1 9
10 i 11o 12 1 13 b 14 m 15 n b / (only used for people we know)
c / (formal and a little old-fashioned, but appropriate after the formal
opening)
16 D is c u s s io n s
2 a X (only used for first meetings)
Exercise 16.1 b/
a w a y / looking b business c G oing (or C o m in g or Getting) c / (it is true that the opening phrase is a real question, but it is
d sight / point (or issue) e ju st / m om en t f sp ecific g by inappropriate to mention personal problems in a business context)
h ju st i g e t/o n j kind {or sort) / mind k sense I put 3 a / (used to respond to a request, not a factual question)
Exercise 16.2 b/
c X (see a)
1a 2d 3 e 4 h 5b 6 c 7 8 f 9 g
4 a / b/ c/
10 I 11 j 12 k
5 a / (questions with 'mind' mean 'is it a problem for you?', so a 'yes'
Exercise 16.3 answer means it is a problem)
1 dow n / to 2 on / to 3 of / at 4 back / to 5 of b / (see a)
6 back/to/on 7 ab o ut 8 of /of 9 in 10 over c/

125
6 a / b X ('I do mind’ means 'it is a problem for me') c / Exercise 18.6
7 a X (too dry and unenthusiastic)
1 We really can't afford to ignore such a good opportunity.
b X (used to respond to a request)
2 I'm absolutely certain that we're in a far better position now.
c/
3 Actually, it's (It's actually) much cheaper to use an outside firm for all
Exercise 17.3 the graphic design work.
1a 2d 3b 4 h 5e 6c 7 f 8 9g 4 There is absolutely no truth at all in w hat they are saying - their
whole story is complete lies.
Exercise 17.4 5 It's a highly risky project - I strongly recommend that w e take the
1 W ow, that's fantastic. 2 You're kidding, right7 greatest care.
3 How awful. I'm so sorry. 4 Poor you. 6 It's just so difficult to know whether the advertising campaign is
5 You must be delighted! 6 Yes, of course. Sure. actually going to work.
7 W hat a nightmare! 8 That makes a change. 9 Well done1 7 I fully support the entire Board - they are doing an extremely
10 That's great news! Congratulations! important job.
Exercise 17.5 8 I really hope we see a significant rise in sales at Christmas - even
more than last year.
1 Are you? Lucky you, I wish I was going! Whereabouts?
9 W e really can't decide so quickly - the issue is far too important.
2 Did you? Congratulations you must be delighted! W hat are your
10 I completely agree - upgrading our entire computer network wil
responsibilities going to be?
take us way over budget.
3 Were they? How awful for them. Which areas were affected?
4 Is it? Three days - what a nightmare! Can I give you a lift anywhere?
5 Did he? That's not like him. W hat did the boss say? 19 S ty le - p o lite n e ss a n d so fte n in g
Exercise 19.1
Exercise 17,6
1 It seems we have a slight problem.
1 Have you got a moment? 2 bear with me
2 Could I just interrupt for a moment? (or Could I interrupt just for a
3 was wondering if you could help me 4 do my best to sort it out
moment.)
5 have an apology to make 6 didn't do it on purpose
3 There might be just a small delay.
7 happens all the time
4 I understood that you could deliver by the end of March.
Exercise 17.7 5 I'm afraid our competitors are not very cheap
1 Excuse me 2 Sorry 6 W ouldn't it be better to ship to Rotterdam?
7 There are one or two things I wanted to discuss.
Exercise 17.8
8 I am assuming that the paperwork is okay.
1 make a move 2 so soon 3 rush off 4 How about 9 I'm sorry but we're not very happy with the quality of this repair.
5 must be going 6 realty nice meeting 7 thank you so much 10 We were hoping for a slightly more flexible response.
8 really appreciate it 9 Don't mention it 10 my pleasure 11 I would be grateful for the chance to have a look round your factory.
11 safe trip 12 say hello to Isabel for me 13 best of luck 12 I w as wondering if I could have (take) a quick look at your designs
14 Keep in touch for next season.
13 With respect, you don't seem to understand how important this is.
18 Style - clarity and emphasis 14 We would appreciate it if you could give us a little more time
Exercise 18.1 15 I suppose I could speak to my boss about it, but I'm not promising
1 We will need to ask for more help. anything.
2 You can choose your own colour. 16 Apparently, their business is not going very well.
3 These days the unions have less influence on government. 17 As far as I know there are (or there’s) just a couple of technical
4 My boss fired Claudia because of her poor performance. problems to sort out.
5 We expect commodity prices to rise. Exercise 19.2
6 Because their needs are so specific, let's check the details very 1 I mean 2 At least 3 Or rather 4 That's to say
carefully.
Exercise 19.3
Exercise 18.2 1: I was given this list just last month.
1 I know how w e can use better credit control to improve our cash 2: Unfortunately, w e had to raise all our prices by 4 % from the
flow. beginning of this month.
2 The new rules say w e must not use the company PCs for personal 3: Well, you could switch to another product with a slightly lower
emails. performance.
3 While w e were talking she asked a lot of questions about the recent 4: If you did that, you'd save money.
changes in our product range. 5: But that's not going to be easy.
4 Your line manager will decide your bonus, even though the HR 6: How many more units were you thinking o f7
department is officially responsible. 7: I'm sorry, but an increase of that size would not be enough to give
Exercise 18.3 you a bigger discount.
W e have not definitely determined the causes for the decline in sales for Exercise 19.4
March. We know, however, that during this period construction work on 1 w e are willing to do 2 suitable for resale
the street limited the number of customers who entered the store. In 3 this is dearly stated 4 terms and conditions
addition, w e know that promotion efforts were reduced as a result of 5 with the relevant section highlighted 6 in the circumstances
staff changes in the advertising department. 7 consider the sale final 8 within ten working days
Exercise 18.4 Exercise 19.5
Thank you for your email regarding invoice D970. W e will give you until Paragraph 1: b, e
May 15 to pay the outstanding amount.
Paragraph 2: c, a, h, g
If you have any further problems please contact us immediately.
Paragraph 3: d, f, i
(or Please contact us immediately if you have any further problems.)

126
 ANSW ER KEY

Exercise 19.6 | 22 Developing an argument - linking words 3

1 / Exercise 22.1
2 / a3 b 4 c 1 d 2 e2 f 1 g 4 h 3
3 no ('unfortunately' is a negative word, but is polite in this context)
4 / Exercise 22.2
5 no (and a formal ending as a sign of respect is an old-fashioned idea) 1b 2a 3b 4a 5b 6a

Exercise 22.3
20 Developing an argument - linking words 1 1 Up to 2 In 3 To /e xte n t 4 To / degree 5 To / best
Exercise 20.1 6 As / as / know
1 and / furthermore / moreover 2 but / however / nevertheless Exercise 22.4
3 so / therefore / consequently 4 because / since / as
1 W hat companies need is a set of standards.
Exercise 20.2 2 W hat I'm talking about is a completely new approach.
1 Since 2 Due to 3so as to 4 so that 3 W hat w e want is good quality at competitive prices.
5 In spite of the fact that 6 In spite of 7 while 8 though 4 W hat I would like (is) to have (is) a chance to speak to him.
5 W hat I will do first is give you the history of the project.
Exercise 20.3
6 W hat we mustn't do is go over budget.
1 Because, because of 2 In order that, in order to 7 W hat w e should do is employ more local staff.
3 Although, despite4 Although, whereas
Exercise 22.5
Exercise 20.4
1 Never before has business ethics been such a hot topic.
1 as / since 2 due to / as a result of / owing to 3 to / so as to
2 Under no circumstances can w e accept this deal.
4 so / so that 5 though / even though / in spite of the fact that
3 On no account should this information be shown to the press.
6 in spite of 7 while
4 Only in some respects do I agree with you.
Exercise 20.5 5 Only on rare occasions do we dobusiness without a bank guarantee.
1 But 2 Also 3 because of 4 So Exercise 22.6
Exercise 20.6 1 a technical point of view 2 a commercial point of view
1 However 2 Furthermore 3 due to 4 Consequently 3 a political point of view 4 an ethical point of view
5 a legal point of view
Exercise 20.7
1 Broadly speaking / Therefore 2 On the whole / However Exercise 22.7
3 As a matter of fact / For instance 4 In fact / To a great extent 1c 2 b 3 a

Exercise 20.8 Exercise 22.8

1 As a matter of fact / In fact 2 Broadly speaking / On the whole In particular

Exercise 20.9 Exercise 22.9

1 Due to 2 In fact 3 As aresult 4 as 5 Even if 1 especially / specifically 2 principally / predominantly
6 finally 7 on the other hand 8 in spite of Exercise 22.10
1 apart from = except for
21 Developing an argument - linking words 2 2 in comparison with = compared to
Exercise 21.1 3 in short = to put it briefly
1c 2b 3e 4 d 5a 4 on balance = taking everything into consideration
5 similarly = likewise
Exercise 21.2
1 Actually 2 Ironically 3 Presumably 4 Amazingly
Exercise 22.11
5 Unfortunately 6 Frankly 7 Clearly 8 Predictably 1 Apart from 2 Similarly 3 In comparison with 4 In short
5 On balance
Exercise 21.3
1 It is true that / however 2 Firstly / Secondly
Exercise 22.12
3 In most cases / but 4 As far as the future is concerned 1 eg 2 ie 3 ie 4 eg
5 Unless / it will

Exercise 21.4
23 Writing paragraphs
1 Unless 2 Provided that 3 otherwise 4 whether Exercise 23.1
5 in case a i b 4 c 2, 3 d 5 ,7 e 6, 8

Exercise 21.5 Exercise 23.2

1 provided that 2 whether 1 / (substitution to avoid monotony) 2 no
3 / (repetition for stylistic impact)
Exercise 21.6
1 recruited / would be 2 had recruited / would have been Exercise 23.3
3 hadn't recruited / w ouldn't have been 1c 2 a 3 b

Exercise 21.7 Exercise 23.4

1 On the one hand ... but on the other ... 1 3 2 5 4
2 On the surface ... but deep down ... Exercise 23.5
3 On paper ... but in reality ...
1 4 5 4 3 - 1 4 4 2
4 At first ... but in the end ...
5 In the :.:iorT term ... but in the long term ...
6 Under normal circumstances ... but in the current situation ...
24 CV (resume) / Job interview
7 At the time ... but in retrospect ... Exercise 24.4
a 2 b 1 c 9 d 10
127
 A n sw er Key: Listening practice
1 In terview w ith a ven ture ca p italist 7 Intervie w w ith an aud ito r
Exercise 2 Exercise 1
1 Companies with enormous growth potential (with a break-through 1 d 2e 3a 4 f 5b 6c
innovation), with their origins in some sort of collaboration between Exercise 2
university and the industrial world; in the IT and biotech sectors; with
Make sure that internal accounting processes comply with government
little or no income stream
regulations.
2 Monitor the growth of the company; get the human resources right;
define the road map Exercise 3
3 Yes, they are very happy. (They'll get a lot of money from selling their 1 The executives of the company
shares.) They'll buy a new house and generally take their living 2 The company might favour the supplier in exchange for an under-the-
standard to a new level Most of the original founders of the table kickback.
company will leave within a few years (big culture shock). 3 Valuing inventory
4 To check the trade receivables
Exercise 3
5 To minimize tax
IF 2 T 3 T 4 F 5 F
8 In tervie w w ith a p o rtfo lio m an ager
2 Interview w ith a CEO
Exercise 1
Exercise 1
Bottom-up analysis: a company's balance sheet, a company's product
Lara's opinion: 1 No (people don't really use it) 2 No (takes much
pipeline
more time to resolve the smallest problem) 3 Yes (so that people feel
Top-down analysis: macro trends, the economy
valued) 4 No (people who just want to do their job and go home and
Technical analysis: key price points, support and resistance levels
forget about work are not necessarily lazy)
Exercise 3
Exercise 3
1 F 2 T 3 T 4 F 5 F
I top-down, bottom-up, horizontal 2 interpersonal 3 listening
4 pay people more in relation to results and performance 9 Intervie w w ith an HR d irector
5 the leader 6 Chairman
Exercise 1
3 Intervie w w ith a project m an ager 1 LM 2 HR 3 HR 4 LM 5 HR 6 HR 7 LM 8 HR

Exercise 1 Exercise 3
a 7 b 2 c 4 d 1 e6 f 5 g 3 1 motivating factor / grow talent 2 honesty / handle pressure
3 meet its objectives / fair 4 rewards / intrinsic
- Exercise 3
1 air conditioning 2 handling 3 escalators 4 fire-resistant 1 0 In tervie w w ith an IT co nsu ltan t
5 voltage 6 artificial 7 cabling 8 acoustics
Exercise 2
4 Interview w ith a design en g in eer 1 ERP 'Enterprise Resource Planning': an application that integrates and
automates the business practices of the organization
Exercise 1
2 CRM 'Customer Relationship Management': a module of ERP that
a6 b 1 c 4 d 5 e7 f 2 g 3
allows you to bring together information such as financial
Exercise 3 information, sales information, customer support interactions to give
1 window envelope 2 iterative 3 Design for manufacturing you a single view of your customer
4 Over-designed 5 Computer Numerical Control 6 Tolerance 3 VPN 'Virtual Private Network': a secure connection to a private
company network using the public telecommunications infrastructure
5 Interview w ith a m arketin g d irector
Exercise 3
Exercise 1 1 integration / support 2 electronic / track 3 devices / means
1 End-u ;er and construction sector
2 Train the service engineer in how to ask the end-user questions after
they re repaired their appliance
3 Include a question about kitchens in questionnaires in magazines
Exercise 3
1 F 2 F 3 T 4 T 5 F

6 Interview w ith a co m m un icatio n s co n su ltan t

Exercise 1
1 e 2 h 3 g 4 f 5b 6a 7c 8 d
Exercise 2
She mentions: lobbying, Internet advertising, viral marketing, event,
publishing, endorsement
a) lobbying b) viral marketing c) endorsement
Exercise 3
1 personal links 2 the credibility and fame
3 emotional and intuitive

128
Business English handbook
Business English H andbook is a com prehensive self-study and
reference book of business language for learners of English at an
upper-intermediate or advanced level. It provides intensive
vocabulary input and practice followed by optional writing and
speaking activities.

Business English Handbook:

• is highly focused - the language has been carefully selected

for m axim um usefulness.

• offers just the right degree of challenge for high-level learners.

• provides both British and Am erican terms, indicating which

is most frequently used in an international business context.

• uses mind m aps to make new vocabulary accessible and

mem orable.

• features interesting and m otivating listening activities based

on authentic interview s with leading business people on a
free Audio CD.

• includes answ er key, full listening scripts and web references

for further research.

9781405086059