MINISTRY OF TRANSPORT

VIETNAM AVIATION ACADEMY

GENERAL FOUNDATION FACULTY

Head of compilation staff: PhD. Nguyễn Kim Loan

Compilation staff: MA. Vũ Thị Minh Khiêm
MBA. Phạm Thị Cúc Phương
MBA. Nguyễn Trần Thanh Thuần

LEARNING MATERIAL
(Internal use)

ENGLISH FOR
AVIATION BUSINESS ADMINISTRATION II

Hồ Chi Minh City, June 2017

Table of Contents
ABBREVIATION............................................................................................................................................ 2
REFERENCES................................................................................................................................................ 3
INTRODUCTION........................................................................................................................................... 4
CONTENT.................................................................................................................................................... 5
MODULE 1: COMMUNICATION................................................................................................................... 6
STARTING UP.......................................................................................................................................... 6
VOCABULARY: Good communicators...................................................................................................... 7
LISTENING: Improving communication................................................................................................... 8
READING: Avoiding miscommunication.................................................................................................. 9
LANGUAGE REVIEW: Idioms................................................................................................................. 12
SKILLS: Dealing with communication breakdown................................................................................. 13
USEFUL LANGUAGE.............................................................................................................................. 14
CASE STUDY: International flight reservations...................................................................................... 15
MODULE 2: FINANCE................................................................................................................................ 17
VOCABULARY: Financial terms.............................................................................................................. 17
USEFUL LANGUAGE: Dealing with figures............................................................................................. 19
SKILLS: Describing trends...................................................................................................................... 20
READING: Liability and insurance......................................................................................................... 21
LISTENING: Raising business capital...................................................................................................... 24
CASE STUDY: Angel investments........................................................................................................... 25
MODULE 3: INTERNATIONAL MARKETING................................................................................................ 28
STARTING UP........................................................................................................................................ 28
VOCABULARY: Collocations................................................................................................................... 28
READING: Critical analysis of emirates airlines marketing.................................................................... 30
LISTENING: Adapting to markets.......................................................................................................... 34
LANGUAGE REVIEW : Noun compounds and noun phrases............................................................... 35
USEFUL LANGUAGE.............................................................................................................................. 37
CASE STUDY: Zumo-creating a global brand......................................................................................... 38
APPENDIX................................................................................................................................................. 41

1
 ABBREVIATION
IATA The International Air Transport Association
ACI The Airports Council International
CANSO The Civil Air Navigation Services Organisation
ICAO The International Civil Aviation Organisation

2
 REFERENCES
1. Cotton, D., Falvey, D., and Kent, S. (2005). Market leader - Intermediate
and Upper Intermediate Business English Course Book (New edition).
Harlow: Pearson/Longman.
2. Emery, H., and Roberts, A. (2012). Aviation English. Macmillan: Macmillan
Publishers Limited.
3. Ellis, S., and Gerighty, T. (2012). English for aviation. Oxford: Oxford
University Press.
4. Cargo English (2010) – International Air Transport Association, Montreal-
Geneva.
5. Air Transport Fundamentals (2010) International Air Transport
Association, Montreal- Geneva.

3
 INTRODUCTION
English for Aviation Business Administration 2 is designed for students who plan to take
a course in the area of aviation business administration in English. The principal aim of
English for Aviation Business Administration 2 is to teach students to cope with inputs
texts, i.e., listening, speaking, reading and writing, in the discipline. However, students
will be expected to produce output texts in listening and speaking throughout the course.
The syllabus focuses on key vocabulary for the discipline and words and phrases
commonly used in academic and technical English. It covers key facts and concepts
from the discipline, thereby, giving students a flying start for when they meet the same
points again in their work. It also focuses on the skill that will enable students to get the
most out of the lectures and written texts. Finally, it presents the skills required to take
part in presentations and seminars.
English for Aviation Business Administration 2 comprises:
 This Students Course Book, including audio scripts, and abbreviations.
 Audio CD
English for Aviation Business Administration 2 has 3 modules, each of which is based
on a different aspect of aviation business administration. Each module is divided into 8
parts: Starting up, Vocabulary, Reading, Language review, Listening, Skills, Useful
language, Case study.

Each module provides 15 hours of classroom activity with the possibility of 45 hours
on the suggested self-study activities. This course, therefore, will be suitable to 45
hours of classroom activity.

It is assumed that prior to using this book, students will already have completed
Basic English 1, 2 or equivalent International English Certification.

4
 CONTENT
Module 1: COMMUNICATION
Starting up
Vocabulary: Good communicators
Listening: Improving communication
Reading: Avoiding miscommunication
Language review: Idioms
Skills: Dealing with communication breakdown
Useful language
Case study: International flight reservations
Module 2: FINANCE
Vocabulary: Financial Terms
Useful language: Dealing with figures - Saying numbers
Skills: Describing trends
Reading: Liability and Insurance
Listening: Raising business capital
Case study: Angel investments
Module 3: INTERNATIONAL MARKETING
Starting up
Vocabulary: Collocations
Reading: Critical analysis of Emirates Airlines Marketing
Listening: Adapting to markets
Language review: Noun compounds and noun phrases
Skills: Brainstorming
Case study: Zumo-creating a global brand
Writing

5
 MODULE 1: COMMUNICATION
OVERVIEW
*Vocabulary
Good communicators
* Listening
Improving communication
* Reading
Avoiding miscommunication
* Language review
Idioms
* Skills
Dealing with
communication breakdown
* Case study
International flight reservations

STARTING UP

A. What makes a good communicator? Choose the three most important factors.

fluency in the language • a sense of humour

an extensive vocabulary • grammatical accuracy

being a good listener • not being afraid of making mistakes

physical appearance • an awareness of body language

B. What other factors are important for communication?

......................................................................................................................................

......................................................................................................................................

C. Discuss these questions

What forms of written and spoken communication can you think of?

For example: e-mails, interviews

Which of the above do you like using? Why?

What problems can people have with them?

How can these problems be solved?

6
VOCABULARY: Good communicators

A. Which words below apply to good communicators? Which apply to

bad communicators?
articulate coherent eloquent fluent focused
hesitant inhibited extrovert persuasive rambling

responsive sensitive succinct reserved

Good communicators Bad communicators

_________________________ _________________________

_________________________ _________________________

_________________________ _________________________

_________________________ _________________________

_________________________ _________________________

B. Which of the words in Exercise A have the following meanings?

1. concise 5. clear and easy to understand

2. reluctant to speak 6. good at influencing people
3. talking in a confused way 7. outgoing
4. able to express ideas well 8. reacting in a positive way

C. Complete this talk by a communication expert with the verbs from the box

listen digre ss interrupt explain

engage clarify confuse ramble

'Good communicators really..listen.. to people and take in what is said. They maintain eye
1
contact and have a relaxed body language, but they seldom ___________ and stop
2
people talking. If they don't understand and want to _____________ something they
wait for a suitable opportunity.

When speaking, effective communicators are good at giving information. They do not
3
____________ their listener. They make their points clearly. They will avoid technical
terms, abbreviations or jargon. If they do need to use unfamiliar terminology they
7
 4
_______________ by giving an easy to understand example. Furthermore, although they
5
may ____________ and leave the main point to give additional information and details
6
where appropriate, they will not ____________ and lose sight of their main message.
7
Really effective communicators who have the ability to ___________ with colleagues,
employees, customers and suppliers are a valuable asset for any business.

D. Track 1 Listen to the talk and check your answers.

E. Think of a good communicator you know. Explain why they are

good atcommunicating.

LISTENING: Improving communication

A. Track 2 Listen to the first part of an interview with Anuj Khanna, Marketing
Manager of Netsize, a marketing agency for mobile media, and answer
the questions.

1. According to Anuj Khanna:

a) Why have communications improved in recent years?
b) How can they improve in the future?
2. What example does he give of banks improving communications with

customers? B. Track 3 Listen to the second part of the interview.

1. What are the consequences of the following communication breakdowns?

a) Problems in air traffic control systems
b) Delays in fixing communication systems
c) Faults in cash machines
2. Which of the following developments in communication does Anuj Khanna expect
to see in the future?
a) More privacy for customers
b) More freedom for companies to communicate with customers
c) More control by customers over the messages they receive
d) More communication between machines

8
 READING: Avoiding miscommunication

A. Work in pairs. Discuss the questions below. Ask each other questions to get
more details.

1. Have you ever worked with someone whose English you didn't understand?
2. What are some of the causes of miscommunication between controllers and
pilots? Note down your ideas.

B. Read the article about a report from a National Aviation Safety Investigation
on tower-pilot communications. Check which of your ideas from activity A are
included.

Holding short of the

A maintenance truck radios
the tower. “Go ahead” says
the controller waiting for
the driver to make his
request. The truck driver,
thinking he has received
his clearance, drives onto
the runway.
A pilot reads back the
runway, the captain
message “He will turn
asks 'may we cross?'
right” as “We will turn
The controller gives the
right”. Because of his
response 'hold short'.
strong accent, nobody
The captain realizes the mistake
understands 'oh sure', until the plane has
gone the wrong way.

9
 A recent report showed that miscommunication is a factor in over 70% of operational
errors. The report examined four areas of miscommunication:
1. Requests from the pilot that the controller repeat the instructions
2. Misunderstandings by the pilot that result in incorrect readbacks
3. Failure of the controller to recognize incorrect readbacks
4. Either the controller or the pilot confusing the call sign
Several factors increased the possibility of communication breakdown. The most
important was the complexity of the instructions. The following instruction, for example,
when analysed, contains eight separate pieces of information, or eight opportunities for
miscommunication:
“3890, GROUND, GIVE WAY TO THE SECOND DORNIER INBOUND, THEN TAXI RUNWAY
32 LEFT, INTERSECTION DEPARTURE AT GULF, VIA OUTER, CHARLIE, GULF."
A lack of fluency in English can cause confusion both because of mispronunciation
and misunderstanding. But too much fluency in English can also be a dangerous thing!
Any idiomatic language or inappropriate plain English can cause misunderstandings.
Also, instructions spoken too quickly can be very difficult to understand.
The report made the following recommendations for further improvements in ATC
communications:
 Keep instructions short
 Listen to what a pilot reads back
 Speak slowly
 When talking to pilots / controllers who don't speak native English, break up the
message into its individual words by using short pauses
 Ask when not sure about a piece of information
 Include the full call sign when giving an instruction or reading back
 Wait for complete aircraft identification following instructions
REMEMBER
Occasionally a pilot may be able to use standard phraseology for a non- routine event,
but he will usually have to use plain English. In this event he has to use non- standard
phraseology but tries to assist the controller by not using any unnecessary English words
and by using several different words with a similar meaning. Some standard phraseology
in R/T communication (exchange) between pilots and air traffic controllers:
10
 Affirm/ affirmative: yes
Acknowledge: received the message
Negative: no (showing resistance or non-co-operation)
Over: My transmission is ended and I expect a response from you
Roger: have received and understood the message
Say again: repeat
Standby: Wait and I will call you
Unable: cannot comply with your request, instruction or clearance
Wilco: understand the message and will comply with it
C. Underline the correct information.
1 In the first incident, the maintenance truck driver misheard/misunderstood the
controller.
2 In the second incident, the captain misheard/ misunderstood the controller.
3 In the third incident, the pilot/the controller/both the pilot and the controller
misunderstood the other person.
4 30% of operational errors involve/ do not involve miscommunication.
5 The main cause of misunderstanding is instructions that are unclear/ very
complicated.
6 The safest way to communicate is using simple English/ natural, fluent English.
D. Work in pairs. Discuss the questions.
1. What additional recommendation would you add to the reports?
2. How could each of the three incidents described at the start of the article be
avoided?
3. Do you know of any incidents where miscommunication has caused a runway
incursion?
E. Try to remember what verbs are used before the following nouns in the article.
Then look back at the text to check.
1. m ____________ a request 5. r _____________ a mistake
2. r _____________ clearance 6. r _____________ an instruction
3. g _____________ a response 7. c _____________ a call sign
4. r _____________ a message 8. g _____________ an instruction
11
F. Complete each sentence with a verb related to communication in the correct
form.
1. When the pilot r _________________ the instruction, I realized that he had
m_________________ me.
2. Controllers should k _________________their instructions short and simple.
3. Hold short of the runway and w _________________ for further instructions.
4. Pilots can m ___________ complex instructions, so it's best to break them up.
5. The truck driver thought the tower had i _____________ clearance to cross the
runway.
6. When r __________________ to an ATC traffic call-out, the pilot should
i____________ his call sign.
7. If a controller m __________________ a word, the pilot may not understand.
8. If a pilot g __________ an incorrect readback, r ___________ the instruction.

LANGUAGE REVIEW: Idioms

A. Complete these idioms with the missing words from the box.
point bush grapevine stick wavelength
wires nutshell picture tail purposes

a) to put it in a _________________
I can’t make
b) to get straight to the ___________________
head or tail of
c) to hear it on the _______________ you!
d) to put you in the _________________
e) to get the wrong end of the _______________
f) to be on the same_______________
g) can't make head or _______________ of it
h) to talk at cross _______________
i) to beat about the _______________ Let me
j) to get our_______________ crossed put you
in the
B. Which of the idioms in Exercise A mean picture
the following?

1. to fail to understand anything

2. to share similar opinions and ideas
12
 3. to summarise briefly
4. to misunderstand
5. to delay talking about something
6. to give the latest information
7. to talk about the most important thing
8. to hear about something passed from one person to another

SKILLS: Dealing with communication breakdown

A. What expressions can you use on the phone in the following situations?

1. you don't hear what someone says

2. the person speaks too fast or too quietly
3. you don't understand a word or expression they use
4. you want to check the spelling of something
5. you want more information about a subject
6. the connection is not good and you can't continue the conversation
7. you want to check the key points

B.Track 4 Listen to the telephone conversation between Bernard and Koichi.

Which of the problems mentioned in Exercise A do the speakers have
when communicating?

C.Track 5 Listen to the two speakers in a similar conversation. Explain why

the second conversation is better. Give as many reasons as you can.

D.Listen to the conversation again and complete these extracts with words
or expressions from the conversation.

1. That's good _________ ________ _________ _________ while I get a pen.

2. Sorry Bernard, I_________ _________ _________. Could you _________
_________ a little, please? I need to take notes.
3. Let me _________ that, 200 posters, pens and pencils and 50 bags. ________ it.
4. Seel ... sorry, could you _________ _________ _________ me, please, Bernard,
I don't think I know the company?

13
 5. 'They've placed an order for 18 of the new lasers...' 'Sorry, _________ _________
_________ 80 lasers?'
6. Sorry, I don't follow you. What ________ “roll-out” _________?
7. But I need details about the company. Sorry, it's _______ _______ ________ .
Could you _________ _________ ________? I can't hear you very well.
8. Sorry, I still can't hear you. I'll _________ _________ _________ ; maybe the
line will be better.

USEFUL LANGUAGE

Asking for repetition

Sorry, could you repeat that? I didn't (quite) catch that.
Could you speak up, please?
Could you say that again, please?

Asking for clarification

Would/Could you spell that, please? Could you give me some more
Can I read that back to you? details, please?
What do you mean by...? Could you let me have more
What does ...mean? information?
Sorry, I'm not with you. Could you explain that in more
Sorry, I don't follow you. detail?
Could you clarify that?

Solving a problem
Sorry, it's a bad line. Can I call you back?

Summarising the call

Let me go over what we've agreed.
Let me just summarise ...

14
 CASE STUDY: International flight reservations

(Mr. James Croft wants to go back to New York after two weeks of holiday in
China. He picks up the phone and makes a reservation through the Air China
Booking Office in Beijing.)

P: Hello. Is this the Air China Booking Office?

A: Yes. Can I help you?
P: I’d like to make a reservation on your flight to New York, leaving Beijing next

A: One moment, please. I’ll checkthat…

We have flights from Beijing to New York every Monday, Wednesday and Friday.
But the route is pretty well-booked these days. There are no seats available for next
Wednesday. What about a Friday flight? We have a few seats left on Flight CA981
on that day, leaving Beijing at 1:00p.m.
P: Well, I think I’ll take the flight.
A: Fine. May I have your name, please?
P: James Croft.
A: I’m sorry, sir. I didn’t catch your family name.
P: Croft. “C” for Charlie; “R” for Roger; “O” for Oliver; “F” for Fox; “T” for Tom.
A: I see. Thank you. Well, Mr. Croft, will you be traveling first class or economy
class?
P: Economy, please.
A: Will this be a single ticket?
P: Yes.
A: Good. Now Mr. Croft, I’ll repeat your reservation. I’ve reserved one economy class
th
seat on Flight CA981 for Aug. 6 , one way to New York, leaving Beijing at
1:00p.m. Please come to pick up your ticket before next Wednesday.
P: I will.
A: By the way, may I have your telephone number, Mr. Croft?
P: Yes, you can reach me at 64385069.
A: Thank you, Mr. Croft. Enjoyyourflight!
P: Thanks. Bye-bye.

15
Work in pair. One of you acts as an agent and makes reservations for your
passengers based on the following schedule.

From To Days of service Flights Depart Arrive Fare

Bangkok Ha Noi 1,2,3,4,5,6,7 VN 830 1220 1410 US$252

Da Nang Ha Noi 1,2,3,4,5,6,7 VN 310 0810 0920 US$ 76
1,2,3,4,5,6,7 VN 312 2205 2315 US$ 76
Da Nang Ho Chi Minh 1,2,3,4,5,6,7 VN 321 0800 0910 US$ 76
1,2,3,4,5,6,7 VN 329 2200 2310 US$ 76
Ha Noi Bangkok 1,2,3,4,5,6,7 VN 757 0630 0830
via Ho Chi Minh VN 851 1130 1300 US$442
Ha Noi Da Nang 1,2,3,4,5,6,7 VN 319 1845 2000 US$ 76
Ha Noi Ho Chi Minh 1,2,3,4,5,6,7 VN 741 0705 0905 US$ 115
1,2,3,4,5,6,7 VN 231 1910 2110 US$ 115
Ho Chi Minh Da Nang 1,2,3,4,5,6,7 VN 320 0600 0710 US$ 76
Ho Chi Minh Ha Noi 1,2,3,4,5,6,7 VN 218 1130 1330 US$ 115
1,2,3,4,5,6,7 VN 220 1400 1600 US$ 115
1,2,3,4,5,6,7 VN 2366 2115 2315 US$ 115
Ho Chi Minh Hue 1,2,3,4,5,6,7 VN 250 0700 0820 US$ 76
Ho Chi Minh Manila 2,4,6 VN 592 1000 1325 US$314
Hue Ho Chi Minh 1,2,3,4,5,6,7 VN 251 0910 1020 US$ 76
1,2,3,4,6,7 VN 255 1910 2020 US$ 76
5 VN 255 2120 2240 US$ 76
Manila Hochiminh 2,4,6 VN 591 0720 0900 US$430
1,3,5 VN 597 1245 1430 US$430

***

16
 MODULE 2: FINANCE
* Vocabulary
Financial Terms
* Listening
Raising business
capital * Reading
Liability and Insurance
* Useful language
Dealing with figures -
Saying numbers;
* Skills
Describing trends
* Case study
Angel Investments

VOCABULARY: Financial terms

A. Match the definitions 1 to 6 with the financial terms a to f

1. money owed by one person or organisation to another a. gross margin
person or organization
2. a period of time when business activity decreases b. recession
because the economy is doing badly
3. difference between the selling price of a product and c. shares
the cost of producing it
4. a place where company shares are bought and sold d. debt
5. money which people or organisation put into a business e. stock market
to make a profit
6. equal parts into which the capital or ownership of a f. investment
company is divided
B. Match the sentence halves

1. Earnings per share are a. a part of the profits of a company paid

to the owner of shares.

2. A forecast is b. a company’s profits divided by the
number of its shares.
17
 3. Bankruptcy is c. a description of what is likely to happen
in the future.
4. A dividend is d. money which businesses receive from
selling goods or services.
5. Pre-tax profits are e. when a person or organisation is unable
to pay their debts.
6. Revenues are f. the money the business makes before
paying to the government.

C. Complete this report with the terms from exercises A and B

1
In our home markets it has been another excellent year. Pre-tax profits are up by 23
2
million, and the ……………………. for the next quarter is equally good. Profits from
3
abroad are down because of a ……………………. in Japan. However, our performance
4
overall has been good, and the ……………………. have increased to 26.4p and the
5
……………………. will be increased to 4.3p per share, which will please our
shareholders.
6
We plan to issue new ……………………. in order to finance expansion in Asia. We
7
also plan to increase our ……………………. in plant and equipment before entering the
Chinese market. We are particularly pleased with our performance in France and
8
Germany where ……………………. have increased. As a result of using a new
9
distributor, our costs fell giving us a ……………………. of 40 percent on our main
10
product line. We will use any extra cash to reduce the level of our ……………………. .
Our performance in Italy should improve significantly following the
11
……………………. of our biggest competitor. However, we should not become too
satisfied with our share price as economic conditions remain uncertain and the
12
……………………. will continue to reflect this. Share prices will not rise in the short
term.

18
 USEFUL LANGUAGE: Dealing with figures

- SAYING NUMBERS
Years

1984 nineteen eighty-four

2006 two thousand and six
2015 twenty fifteen
Currencies

₤3.15 three pounds fifteen

$7.80 seven dollars eighty
€250 two hundred and fifty Euros
¥125 one hundred and twenty-five yen
Decimals

16.5 sixteen point five

17.38% seventeen point three eight percent
0.185 (nought/ zero) point one eight five
Bigger numbers

3,560 three thousand five hundred and sixty (BrE.)

three thousand five hundred sixty (AmE.)
598,347 five hundred and ninety-eight thousand, three hundred and forty-seven
five hundred ninety-eight thousand, three hundred forty-seven (AmE.)
1,300,402 one million three hundred thousand, four hundred and two (BrE.)
one million three hundred thousand, four hundred two (AmE.)
1m one/ a million (1,000,000)
3bn three billion (3,000,000,000)
$7.5bn seven point five billion dollars
€478m four hundred and seventy-eight million Euros (BrE.)
four hundred seventy-eight million Euros (AmE.)

19
 SKILLS: Describing trends
We can describe trends in English in different ways:

1. Verbs of change

Profits soared 18.5%. Profits

are falling steadily. Sales
plummeted in January.

2. Prepositions

Profits rose 11% to $2.7 billion.

Profits have gone up from 3 million to 4 million
Euros. Our business grew by 10% last year.
There’s been a decrease in annual sales of 1 million
Euros. Last year profits stood at 2.5 million pounds.

3. Different verb forms

The figures show a positive trend. (Present simple)

We’re watching the trends carefully. (present
continuous) Last year we made a loss. (past simple)
In recent months our profits have risen dramatically. (present perfect)
If sales drop further, we’ll be in serious financial difficulty. (first conditional)

A. What kind of movement do the verbs below describe?

decline gain Drop increase rocket plummet

double fall Halve level off triple recover

decrease fluctuate improve peak rise jump

B. Which of the above verbs also have noun forms? What are they?

For example:to increase – an increase

...........................................................................................................................................

...........................................................................................................................................

20
C. Complete these sentences about the graphs below with appropriate prepositions.

1. Sales have increased …………………… €5m …………………. €7m.

2. Sales have increased …………………… €2m.
3. There has been an increase …………………… €2m in our sales.
4. Sales now stand …………………… €7 million.
5. Sales reached a peak …………………… €7 million in July.
6. Sales reached a low point …………………… €1 million in April.

D. Write two more sentences about each of the graphs

7
6
7 5
6
4
5 3
4 2 € millions
€ millions 3 1
0
2
1
Jan
Feb Mar
Jun Jul Aug Sep Oct € millions
0 Nov Dec

Last Year This Year

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

READING: Liability and insurance

Who is responsible when your consignment of computers gets damaged during
transportation? Or when your crates of exotic fruit arrive in a deteriorated state? Or when
your spare parts never arrive?
The Warsaw Convention, which was originally written in 1929, laid down principles
to get some uniformity between nations when insurance claims were made. The
Convention defined the limitation of liability of the carrier to 20USD per kg, which was
later on changed into 17 Special Drawing Rights (SDRs) per kilo. An SDR is a unit of
the International Monetary Fund and fluctuates daily along with all international
21
currencies. If shippers want to insure their shipment for a higher amount, they will have
to take out extra insurance as was the case in the following example.

Let’s follow the case of a high value shipment of aircraft parts on 10 December 1992
from Chicago to Hong Kong via Anchorage and Narita. Unfortunately, a clerk failed to
insert Anchorage and Narita as “stopping places” on the air waybill. Then the shipment
got lost.

Fortunately for him, the shipper has obtained cargo insurance which resulted in full
payment of the claim by the Tai Ping Insurance Company. Following the payment, the
Tai Ping Insurance Company sought to recover its loss with a lawsuit against NorthWest
Airlines. Such an action is known as “subrogation” when a cargo insurance company
sues to obtain reimbursement for claim payments. Most of the cargo claims litigation
today is “subrogation” by insurance companies against air forwarders and carriers.

In the lawsuit, NorthWest Airlines immediately offered compensation under the

Warsaw Convention limit of 1,132.00 USD. Tai Ping Insurance Company rejected the
offer, claiming that the NorthWest airlines should not have benefit of its damage
limitation because Anchorage and Narita had been omitted as “stopping places” on the
AWB in violation of Article 8.

NorthWest lost this case. The failure to type airport codes for Anchorage and Narita in
the AWB was simply disastrous for NorthWest. Instead of paying the Warsaw
Convention damage limitation of 1,132.00 USD, NorthWest had to pay out damages for
the amount of 231,000.00 USD plus interest.

To protect carriers and forwarders in such cases, the protocol of Montreal 1999,
which updated, modified and adapted the Warsaw Convention to our electric age,
introduced the following phrase: “The damage limit may not be exceeded whatever the
circumstances which gave rise to the liability”. This means a carrier or an air forwarder
cannot be held responsible for damages caused by inherent vice of defect of cargo,
defective packaging of the cargo, act of war, act of public authority, e.g. customs
inspection that might damage the cargo, neither for inexhaustive completion of the AWB.

22
 Good news for the carriers and forwarders, but be careful: this Montreal Protocol 4 is
only valid in the countries that have signed the agreement and the same goes for the
Warsaw Convention!
A. Match the following words with their meanings, refer to the text when necessary.
deteriorate claim limitation SDR liability reimbursement
currency a loss a lawsuit damages defective compensation

1. Repayment of money ________________________

2. Something that you have lost _________________________

_________________________
3. A case in a court of law which concerns a dispute
between two people or parties rather than the
prosecution of a criminal by the police
_________________________
4. Payment that you claim for a person or organization
that is responsible for something unpleasant that has
happened to you.

5. Legal responsibility _________________________

_________________________
6. A currency composed of the rates of several other
currencies, the unit currency of the IMF
_________________________
7. Become worse in quality, rot
_________________________
8. The money that used in a particular country

9. Money which you officially apply for because you think _________________________
you are entitled to it.
_________________________
10. The greatest amount or extent of something that is
allowed or possible
_________________________
11. Imperfect, not working properly

12. Money to be paid by a person who has damaged

someone’s reputation or property or who has injured _________________________

23
B. Now use the words from the exercise above to fill in the blanks below
1. The forwarding company threatened with a _________________________ if the
st
shipper didn’t pay his debts before the 1 June.
2. The _________________________ or _________________________ was far
short of the capital he had invested in the building.
3. A(n) _____________ is a reserve asset used as a unit of account, as defined by the
IMF and is composed of exchange rates of several ____________________.
4. The driver filed a _________________________ for the collision, for which
the_________________________ amounted to 15,000 USD.
5. Unless the shipper has made a special declaration of value for carriage the
________________ of the carrier’s _________________________ will be 17
SDR per kg for ___________________, damage or delay of the shipment.
6. The plane couldn’t take off because of a________________________ engine.

LISTENING: Raising business capital

A. Track 6 Hugh Campbell is the founder of GP Capital, a London-based finance

firm which raises money for entrepreneurs. Listen to the first part of the interview
and complete the chart.

Type of business Type of investor

Business set up by new entrepreneurs …
Business borrowing up to … …
Business borrowing more than … …

B. Track 7 Listen to the second part of the interview and answer these questions
1. According to Hugh, which three areas do venture capitalists look at when
selecting companies to invest in?
2. What type of market is good to invest in and why?
3. What helps some businesses to win against other companies?
4. What three questions would Hugh ask the management team?

24
C. Track 8 Listen to the third part of the interview. What kind of company do they
describe? Why did he like this type of company?

D. Track 9 Listen to the final part of the interview. Which of these statements are
true? Correct the false ones.

1. Hugh was offered the chance to buy fifty percent of an Internet business.
2. He didn’t invest because he thought the management team was weak.
3. The business did very well for a couple of years.
4. It was sold for twenty times its original value.

CASE STUDY: Angel investments

Background:
Angel Investment (AI) is based in Warsaw, Poland. It is run by a group of rich
people who invest money in companies. It is willing to take risks by buying stakes in
start-up or small companies, but also puts money into larger companies which have good
prospects for growth. AI makes money by selling shares in companies when their share
price is high, then re-investing the money in companies which it expects to do well in the
future. At present, it has €10 million to spend and it has chosen four companies as
potential investments. (See next two pages).

Task:

1. Work in small groups. You are directors of Angel Investments. Read the reports and
note down the key points concerning each company.
2. Listen to the CEO’s comments to investor for the four companies. Note down the key
points concerning each company.
3. Discuss the advantages and disadvantages of investing in each company. Then decide
what proportion of the €10 million you will invest in one or more of the companies –
it is up to you.)
4. Compare your decisions with those of the other groups.

Writing:
Write an e-mail to the CEO providing a list of your recommendations. Give reasons
for your recommendations.

25
26
27
 MODULE 3:
INTERNATIONAL
MARKETING

Vocabulary:
Collocations

Reading:
Critical analysis of
Emirates Airlines
Marketing

Listening:
Adapting to market

Language review:
Noun compounds
and noun phrases

Skills:
Brainstorming

Case study:
Zumo-creating
a global brand

STARTING UP

A. Think of one brand in each of these categories which is marketed internationally

food drink electrical equipment clothing construction

B. Discuss these questions

1. What are the advantages for a company of expanding beyond its domestic
market?
2. What kinds of problems do companies face when they go international?
3. What methods can companies use to enter overseas markets?

VOCABULARY: Collocations

A. Complete these statements with suitable expressions from the box

buying habits economic situation

government bureaucracy income distribution

monetary regulations political stability

28
1. Because of tight .............................. company profits could not be taken out of the
country.
2. Red tape and other examples of ........................... hinder a company's entry into a
market.
3. The country is attractive to exporters because it has enjoyed ............................ for
the last 50 years.
4. The purchasing behaviour of consumers can be described as their .........................
5. The ......................................... is improving leading to a rise in employment.
6. ..........................................is a term used by economists to describe how wealth is
shared in a country.

B. Discuss these questions

1. What are some of the main benefits of political stability?
2. How would you describe the present economic situation of your country compared to
10 years ago?
3. Is it possible to achieve equal income distribution in a country? Explain why or why
not.

C. Look at the words and phrases below. Underline the odd one out

1 a) growing market c) expanding market

b) developing market d) declining market
2 a) questionnaire c) promotion
b) focus group d) survey
3 a) market sector c) market segment
b) market research d) market niche
4 a) international market c) domestic market
b) overseas market d) worldwide market
5 a) launch a product c) bring out a product
b) withdraw a product d) introduce a product
6 a) slogan c) discount
b) free sample d) special offer
7 a) retailer c) wholesaler
distributor 29 manufacturer
b) d)
D. Complete this exercise and then compare answers with a partner

1. Give an example of an expanding market in your country.

2. Give some examples of products or services which are targeted at niche markets.

3. ..................................................................................... Another name for a home

market is a ......................................................................... market.

4. ................................................................................................................ If a product

has a design fault a company may decide to ................................................. it, correct

the fault and relaunch it at a later date.

5. .......................................................................... 'Just do it' is an example of a

6. .......................................................................... What's the difference between a

retailer and a wholesaler?

READING: Critical analysis of emirates airlines marketing

Written by Beatty Peterson on 06-02-2011

The Marketing Concepts in the airline

industry are much correlated with the marketing
strategies that are used in the tourism,
communications and hotels industry all over the
world. Various strategies are used by the Emirates
Airline. The strategies employed by the Emirates
Airline targets to address the four marketing mix
of a business. The aviation services product being
provided by the company has been target to be of affordable cost to various locations of
the world.
1. Customized Customer Services
The Emirates Airline has in the recent past thrived on the basic of focusing their
services to the target market and ensuring that the services are made available where the
customers do exist (place). Toward the end of year 2000, the Emirates Airline had
planned to initiate a very ultra-long-haul service. This service is planned to be located in
30
East Coast and West Coast part of the United States of America (USA). Additional
services are also planned to be located in Australia and in parts of Argentina. Fly
Emirates business strategies employed in the recent past have seen the business
organization overall output increase and the specific traffic flow rate increase to twenty
percent (20%) from the year 1999 to the year 2000. The strategy to provide customer
specific ensures satisfaction of the customer needs and expectations.
The need for more space in the airline industry, for instance, saw the airline begin
operating their new A340-500 flight to John F Kennedy airport which is of international
standard. The Company has also created various partnerships with other airlines in the
USA and in the Delter Airlines (John, 2003, Gitman & Carl, 2005). Various strategies
have been used to enhance the expansion of the Emirates Airline so as to meet the
increasing demand from the customers.
2. Strategies to provide luxury state of the art service
Emirates Foundation has been utilized in ensuring that promotion of the airline
services is done. Sales promotion and sponsorship of community services in various
countries are also used to ensure that the different categories of potential clients are
reached.
3. Business slogans
In order to fully attract more customers to the airline company, various slogan have
been employed by the Emirates Airline. The strategies targets to ensure that various
issues that regard to the business environment have been exploited. Fly Emirates has
been one of the Emirates Airline branding slogan. Dubai has provided company with a
very unique environment for marketing the business operations. Other marketing
strategies that have previously been employed include “The Finest in the Sky”, “Be Good
to yourself by Fly Emirates”, “Fly Emirates- Keep Flying” and “when was the last time
you did something for yourself”. According to the research carried out on the utilization
of business slogans in 2002, it is evident that certain business slogans greatly improve the
performance of the business operations. Customers have the tendency to adhere
themselves to the business slogans that tend to address their needs in the business
organization (Philip, 2006). Business slogans have in the past been used by the Emirates
Airline to counter other slogans that had targeted to portray themselves as the best in the
market. Slogans such as “Be good to yourself” and “when was the last time you did
31
something for yourself” by the Emirates Airline ensure that customers feel treasured and
cared for.
4. Greater investment in Aviation Services
According to the research carried out by Greengard (1999, pp.4-8), the Flex-track
program has been used in the past by Emirates Company in order to plan and fully
optimize various business routes’ efficiency and load factor. Another strategy, according
to various sources, that has been employed by the Emirates and a number of airlines, is
the use of “tailored arrivals” which is used for controlling the uplinks to the aircraft on
route. In order for the company to increase efficiency the airlines’ operation, various
airlines in most countries lower emissions using aircraft such as the Boeing 777-300ER.
This aircraft utilizes a single engine to taxi an aircraft to its engine stopthus increasing
the efficiency of the whole process (Gitman & Carl, 2005; Terence, 2001)
5. Customer tailored Services
Various clients require different types of airline services. As a marketing strategy,
the Emirates Airline ensures that their products are tailored towards ensuring that
customer needs are addressed. This is also related to other related services that the
company offers such as the tailor made holiday services. Business organizations that
require special travel business packages are also offered such services. This strategy
ensures that the Emirates Airline customers are appreciated based on their needs, finance
status, location and the specific products that the customers require.
A. Match the words 1- 13 to their definitions or meanings from a - m

Words Definitions / meanings

1. Industry a ) A commercial enterprise or establishment
2. Marketing strategyb) The aggregate of the demands
of all potential customers(market participants) for a
specific product over a specific period in a specific
market.
3. Target c) A trademark or distinctive name identifying a
product or a manufacturer.
4. Customer need d) The business of transporting paying passengers and
freight by air along regularly scheduled routes,
typically by airplanes but also by helicopter.
32
 5. Customer e) A distinctive or topical phrase used in politics,
requirement advertising, etc.
6. Market demandf) Perceived-value customers seek from the purchase
of a goods or service.
7. Customer g) A process that can allow an organization to
expectations concentrate its limited resources on the greatest
opportunities to increase sales and achieve a
sustainable competitive advantage.
8. Customer satisfaction h) Particular characteristics and specifications of a good
or service as determined by a customer
9. Partnership i) Problems that customers intend to solve with the
purchase of a good or service.
10. Slogan j) A term frequently used in marketing, is a measure
of how products and services supplied by a
company meet or surpass customer expectation.
11. Brand k) A contractual relationship between two or more
persons carrying on a joint business venture with a
view to profit, each incurring liability for losses
and the right to share in the profits.
12. Business l) The organized action of making of goods and
services for sale

13. Airline Industry m) Direct toward; intend to achieve

B. Which of the following verbs can form a word partnership with

a) a product
b) a market
For example: launch a product

1. retreat from 4. break into 7. saturate 10. rollout

2. launch 5. penetrate 8. withdraw 11. license
3. pull out of 6. introduce 9. get a foothold in 12. phase out

33
C. Which of the words in the box below are connected to the four Ps of the
marketing mix?

people product price

processes

D. Use the following chart to make notes on the four Ps of Emirates Airlines

P...............

P...............

P................

P.................

LISTENING: Adapting to markets

A. Track 10 Listen to the first part of the interview with Paul

Smith, a marketing specialist. What questions should you
consider before entering an overseas market?

..................................................................................................
..................................................................................................
B. Track 11 Listen to the second part of the interview. What
▲ Paul Smith problems or challenges does Paul Smith mention?
..................................................................................................

34
C. What problems might a foreign producer of the following products have in

trying to market their goods in your country: a) luxury cars, b) shampoos, c)

breakfast cereals?

LANGUAGE REVIEW : NOUN COMPOUNDS AND NOUN PHRASES

1. A compound noun is two nouns together. Noun compounds are

common in business because they are shorter and more convenient
than noun phrases. For example:
an export licence rather than a licence to export
a consumer protection law rather than a law for the protection
of consumers
2.Longer noun phrases are also common. They may consist of adverbs,
adjectives and compound noun. The following pattern is typical:

Adverb Adjective / Noun / Head noun

-ing participle Gerund
increasingly difficult market conditions
long-term marketing strategy
expanding overseas sales

A. One word in each group does not make a compound noun with the word in bold.
Cross it out.

1. marketingcampaign / budget / leader / strategy

2. market research / survey / check / sector
3. productmarket / range / features / manager
4. advertisingcampaign / exchange / agency / slogan
5. brand awareness / loyalty / image / contract
6. sales figures / conditions / forecast / targets
7. price promotion / rise / product / range

35
B. The words in each of the noun phrases below are in the wrong order. Write
the phrases in their correct form.

1. impressive figures sales really

2. department new public relations
3. highly research market ambitious programme
4. overseas expanding operations
5. rapidly sheet balance improving
6. extremely rate exchange volatile
7. highly marketing report confidential

SKILLS: Brainstorming

A. Brainstorming is a useful way of generating creative ideas in meetings. Decide

which tips below are good advice and which ones you disagree with. Then
compare your answers with a partner.

1. Explain the purpose of the meeting clearly.

2. Ask each person to speak in turn, starting with the most senior.
3. Announce the time limit for the meeting.
4. Avoid criticising or judging ideas during the session.
5. Encourage ideas, however unusual they may be.
6. Don't interrupt when people are offering suggestions.
7. Make sure everyone keeps to the point.
8. Don't spend time on details.

B. Track 12 Listen to the first part of an authentic brainstorming meeting

between three members of the Marketing Department at Business Solutions
Limited. Then answer these questions.

1. What is the purpose of the meeting?

2. What types of promotion are mentioned by
participants?
C.Track 13 Now listen to the rest of the
meeting and answer these questions

36
 1. What other ideas for promoting the website are mentioned by participants?
2. When is the next meeting? What information will the participants get then?

D. Match the comments made by the participants to the headings in the Useful
language box below. (Some comments can be put under more than one heading.)

1. Fire away.
7. That might be one way...
2. Excellent!
8. Would it be worth it sponsoring
3. I think we'd reach a wide audience ... some kind of event?
4. We should definitely do some of that.
9. It would be great to do a
5. Absolutely! presentation.....
6. What about press advertising? 10. What about that?

USEFUL LANGUAGE

Stating objectives Encouraging contributions

The purpose of the meeting Don't hold back.
this morning is to ... Say whatever comes to mind.
What we need to achieve today is... Any other ideas?
Our objective here is to... At this stage we want all your

Making suggestions ideas, however crazy you

think they are.
I think we could ...
I suggest we... Agreeing
One thing we could do is... Yes, that's a good idea because...
Expressing enthusiasm Absolutely because...

That's great! Exactly because...

You're (absolutely) right because
That's the best idea I've heard for
a longtime. ...

That's an excellent suggestion.

37
E. Choose one of the situations below and hold a brainstorming meeting

1. Your company has developed a new sports or music magazine. Brainstorm ideas
for an advertising campaign.
2. Your company will shortly be receiving a visit from some important Chinese
business people who wish to set up a joint venture with your firm. Brainstorm
ideas for suitable gifts for the three Chinese visitors.

CASE STUDY: Zumo-creating a global brand

Key Features Of Zumo

- Contains caffeine, vitamins and glucose.
- Has a secret ingredient, 'herbora', made from roots of rare African plants.
- Scientific studies show that the body absorbs Zumo faster than water or other
soft drinks.
- The unique formula contributes to Zumo's taste and thirst-quenching
properties.

38
Track 14 Listen to this excerpt from a radio programme, Business Today. Ricardo
Gonzales, Zumospa's President, discusses Zumospa's plans to globalise. Make notes on
the company results, future plans and competitive advantage.

Marketing
 Launched in the mid-1980s. Positioned as an energy product for fitness-
conscious people, especially sportsmen and women, between the ages of 20 and
45.
 Distributed mainly through grocery stores, convenience stores and supermarkets.
Also through sports clubs. Additionally, sales are generated through contracts
with professional leagues, such as football, golf and tennis associations.
 Press, TV and radio advertising is backed up by endorsement contracts with
famous European footballers and tennis stars.
 Zumo is offered in four flavours and its price is in the medium range.

Developing a global brand

Zumospa needs to reposition it for the global market. Initial research suggests that
Zumo is perceived as a Spanish drink, and its close identification with Spain may not be
suitable when developing a global brand.
Zumospa would like to launch a global campaign
focusing first on South America, Mexico, the
Southern states of the US and Japan, where they have
regional offices. A decision has been taken to use a
standardised advertising theme in these markets,
although the copy of the advertisements and language
of the TV and radio commercials will be adapted to
local needs.
Before setting up focus groups in these areas
and commissioning market surveys, the
Marketing Department of Zumospa have
organised an informal departmental meeting to

39
brainstorm ideas for their global marketing strategy.
Task
You are members of the Marketing Department of Zumospa. Work in groups and
brainstorm the points listed in the rough notes. One person in the group should take
notes. Then meet as one group and select some of the best suggestions for further study.

Brainstorming Session
1. Does Zumo need a new name? If so, what?

2. Introduce new Zumo varieties for different market segments e.g. Diet
Zumo? Other versions?
3. Redesign Zumo bottle/can? If so, how?
4. Create a new slogan? Suggestions?
5. Ideas for TV or radio advertisement? Also, newspapers and magazines?
6. Price - medium range?
7. How to compete against similar products from Coke, Pepsi, Heinz, etc?
8. New market opportunities for Zumo?
9. Create a special division to market Zumo worldwide?
10. Apply to be official sponsor at next Olympic Games?

Writing
As Marketing Manager for Zumospa, write an e-mail to the directors of the company
informing them of the key ideas which came out of the brainstorming session you
attended. You should indicate which ideas you favour and why.

***

40
 APPENDIX
TRANSCRIPTS
Module 1: Communication

Track 1
Good communicators really listen to people and take in what is said. They maintain
eye contact and have a relaxed body language, but they seldom interrupt and stop
people talking. If they don't understand and want to clarify something they wait for
a suitable opportunity. When speaking, effective communicators are good at giving
information. They do not confuse their listener. They make their points clearly.They
will avoid technical terms, abbreviations or jargon. If they do need to use unfamiliar
terminology they explain by giving an easy to understand example. Furthermore,
although they may digress and leave the main point to give additional information
and details where appropriate, they will not ramble and lose sight of their main
message. Really effective communicators who have the ability to engage with
colleagues, employees, customers and suppliers are a valuable asset for any
business.

Track 2 (I = Interviewer, AK = Anuj Khanna)

I Is communication between companies and their customers better now than in the
past, and if so, are there ways of improving it further?
AK Er… communication between companies is much better, er… now than in the past
especially this great improvement in the last ten years and the reason for that is the
introduction of new communication channels, i.e. the Internet, er… mobile phones,
er... instant messaging er… etc. So, it has definitely improved communication and
become a two-way channel between customers but there are definitely scope of
improving communication in terms of timeliness of the communication and giving
more control to the customers so they control the communication with companies
rather than companies communicating with customers without their permission.
I Can you give some examples of really good communication between companies
and their customers?

41
AK Sure, the best example of communication between companies and customers is
where companies empower their customers to be in control of the information most
needed by them and communicate only targeted issues which are of interest to
customers. A good example of company communicating with customers is for
example a bank keeping them updated by e-mail or SMS, commonly referred to as
text messaging. When er…, a customer's salary has been credited or he's crossed the
overdraft limit. This information is useful to customers and adds value while
making financial decisions. So, I would refer this as a good example of er…
customer communication.

Track 3 (I = Interviewer, AK = Anuj Khanna)

I Can you think of examples where a breakdown in communication seriously affected
a business?
AK Breakdown in communication can bring the world to a halt today. We're living in an
information society whose foundation is based on efficient communication. For
example, recent breakdown in communication er... of our country's A-traffic control
system led to a twenty-hour closure of all airports in the country and a resulting
delay in flights globally. Nowadays, companies and their suppliers are tied up with
agreements where they pay huge fines, by the hour, for delay in fixing
communication systems. This is more prevalent in the banking industry, where, for
example, if a cash machine breaks down, every hour there is a delay in fixing the
cash machine, there is a fine which is paid by the engineering company. And the
reason for that is every hour when there is er..., a delay, the bank loses money. This
requires good communication between the bank and the engineering company, or it
results in loss of money for both parties.
I How do you see business communication developing in the future?
AK Business communication is under pressure to be more accurate, targeted and timely.
There are stricter privacy regulations worldwide, which require explicit permission
from customers if businesses want to communicate with them. We have all faced
the problem of e-mail spam - messages which we never requested from companies
who we have had er…, no relationship with. Businesses in the future will give more
control over two-way communication to the customers.
42
 Nowadays, increasingly, apart from people communicating with each other, we have
machine-to-machine communications. What I mean is where machines are imbedded
with communication devices transferring information er… to er… information
systems and computers worldwide. And this is primarily to improve business
efficiency. For example, we have increasing number of cars, vending machines and
equipment which is fixed with mobile devices which communicate with head offices
of companies and service centers.

Track 4 (KS = Koichi Sato, B = Bernard)

KS Yamashita Electronics, Koichi Sato speaking.
B Hello, Koichi, this is Bernard Klebermann. How are you?
KS Very well, thank you. How can I help?
B We need some more sales literature. We're planning a big advertising campaign for
your new laser printer, the HG902 model. And there's a lot of demand for your other
products too, by the way.

B Can you send some more brochures, 5,000 would be good, plus some updated
price lists, the same amount? Also we need point of sales literature, especially
posters, and ... at least 200 and, oh yes, some of those pens and pencils with the
company logo on, also 50 or so of the bags that we give out at exhibitions.
KS OK, I don't know if I can remember all that... can you ...
B Good. Another thing, you might like to know, we've managed to get a big new
customer, Seelmayer.
KS Seel... I don't think I know the company ...
B We're very excited about it. They're a big restaurant chain. They've placed an order
for 18 of the new lasers, please tell your boss, Mr. Fujiwara, he'll be very pleased,
I'm sure.
KS An order for 80 laser printers. Great! I'll let my boss know. He'll probably want to
write to this company ... er ... Seelmund.
B Yes, please tell him to write to them. That'd be good PR. They're expanding very
fast in Europe and they'll probably order some computers and fax machines from
us as well. They're planning a big roll-out here in the next two years. Tell him that.
43
KS Er… yes, a big er… roll-out, you say, er… interesting. I'll tell him immediately. I'll
need some details about the company, an address and the right person to contact and
...
B Sorry Koichi, I can't hear you, it's an awful line. Anyway, nice talking to you.
Speak to you soon.

Track 5 (K = Koichi Sato, B = Bernard)

KS Yamashita Electronics, Koichi Sato speaking.
B Hello Koichi, this is Bernard Klebermann. How are you?
KS Very well, thank you. How can I help you?
B We need some sales literature. We're planning a big advertising campaign for your
new laser printer, the HG903 model. And there's a lot of demand for your other
products too, by the way.
KS That's good. Hold on a second while I get a pen ... OK? What do you need?
B Could you send some more brochures, 5,000 would be good, plus some updated
pricelists, the same amount? Also we need point of sales literature.
KS Sorry Bernard, I didn't catch that. Could you slow down a little, please? I need to
take notes.
B Oh sorry. Right. I said, we need more brochures.
KS Right, I've got that so far. Could you give me some more details?
B Certainly. Er… 3,000 brochures for Switzerland, 1,000 for France and 500 each for
Spain and Italy. Also, we need point of sales literature especially posters - at least
200 and oh yes some of those pens and pencils with the company logo on, a couple
of hundred, also 50 or so of the bags we give out for exhibitions.
KS Let me check that, 200 posters, pens and pencils and 50 bags. Got it.
B Good. Another thing, you might like to know, we've managed to get a big new
customer, Seelmayer.
KS Seel... sorry, could you spell that for me please, Bernard? I don't think I know the
company.
B Certainly, S-E-E-L-M-A-Y-E-
R. KS Thank you.

44
B We're very excited about it. They're a big restaurant chain. They've placed an order
for 18 of the new lasers; please tell your boss, Mr. Fujiwara...
KS
Sorry, did you say 80 lasers?
B
No, 18, one eight.
KS Right, I'll let my boss know. He'll probably want to write to this company to thank
them.
B Yes, please tell him to write to them, it'd be good PR. They're expanding very fast
in Europe and they'll probably order some computers and fax machines as well.
They're planning a big roll-out here in the next few years. Tell him that.
KS Sorry I don't follow you. What does “roll out” mean?
A roll-out is when a company plans to expand throughout a country; it's um a
B
nationwide expansion if you like.

KS Ah I see. I'll tell my boss, Mr. Fujiwara, immediately. But I need details about the
company ... Sorry, it's a bad line. Could you speak up, please? I can't hear you very
B well.

Yes, the line's awful. What did you say?

KS
Could you e-mail me the details, the address, the right person to contact, etc.?
B Sorry, I still can't hear you. I'll call you back; maybe the line will be better.
Module 2: Finance

Track 6 (I = Interviewer, HC = Hugh Campbell)

I What are the best ways for a new business to raise money?
HC Well, I think there are three key areas to look at if you're an entrepreneur. The first
area is bank debt. The second area is private investors or, in the UK, “business
angels” is their colloquial term. And finally there are venture capitalists.
If you're an entrepreneur starting a business for the first time, then often bank debt is
not an area which you're going to find very successful - mainly because, if you're a
start-up business and you're an inexperienced entrepreneur, the banks won't want to
lend to high- risk businesses. And if you don't have any trading history, then they
will - are unlikely to provide you with bank debt or with an overdraft - that is,
unless you want to provide a personal guarantee to the bank, perhaps putting your
house at risk.
45
 The second area, if you're a start-up business, is private investors or business angels.
These are typically wealthy individuals that over their life have saved up a
considerable amount of money which they want to invest in high-risk, high-return
businesses. So this is...these are individuals that have decided not to invest in the
stock market, which is large, lower-risk investments, but to really take up an
opportunity to make ten times their money by investing in start-up businesses.
And the third area to look at is venture capital. Now venture capital is only
appropriate for entrepreneurs that are looking to raise more than a million pounds. If
it's less than a million pounds then you need to go down the private investor route.
An example of a venture capitalist in the UK is a company called 3i.
So, if you're an established business looking to raise money then the bank debt route
is probably the most appropriate. If it's under a million pounds then it's private
investors, and if it's over a million pounds then it's venture capital.

Track 7 (I = Interviewer, HC = Hugh Campbell)

I And how do venture capitalists select the best companies to invest in?
HC There's no real hard and fast rule here, and it's certainly more of an art than a
science. However, there are three areas that a venture capitalist will look at. A
venture capitalist will look at the market; it will look at the industry; and they will
look at the management team. Now the market is an important area because, as an
investor, I want to invest in a business which is selling product into a fast-growing
market, a large and fast-growing market, because as an investor, if I invest a million
pounds, I want to make five million pounds as my return. So, that means I need to
invest in a market that is growing very quickly. And the market, it's important to
note, is all about the buyers - so who is going to buy my product, at what price are
they going to buy it?
The second area is industry and the industry is all about the sellers. So, it's all about
the competition. So if you're Renault you're competing against Volkswagen, BMW,
and er… Mercedes Benz, for example. So, as an entrepreneur starting a business I
need to make sure that I have a lot of competitive advantage. And in many cases I
deal with technology companies. That means I need to have some intellectual
property or some patents which protect my technological advantage.
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 So, the second area is industry, and the final area, which I think is the most
important, is the area of the management team. And management teams are very
difficult to assess, but venture capitalists look at three areas. They look at the
experience of the management team - i.e. how well do they understand the market
and the industry that they are going into. They look at the ability of the management
team to execute on their business plan. So, if they've said they're going to turn a
business - create a business - with revenues of ten million pounds, as an investor,
how much do I trust that view? And finally, which is a very subjective area, is -
does this individual manager have the personal commitment to deliver on this plan?
Are they willing to work twenty-four hours a day to ensure that my one million
pounds turns into five million pounds?

Track 8 (I = Interviewer, HC = Hugh Campbell)

I Can you give us an example of a really good business proposal?

H Well, the most exciting business that we've worked with recently has been a spin-out
from Oxford University. And, as you can imagine, from Oxford University they have a
lot of intellectual property, so they have a lot of competitive advantage. Secondly, this
business is focused on developing software for the computer games industry. The
computer games industry is a very exciting market - it's been growing very, very
strongly over the last few years, and will continue to do so with the success of people
and games like Lara Croft. Now the management team was a difficult area because,
although the management team were very technically strong, they didn't have a lot of
management experience. But the investor decided to invest a million pounds and the
first thing they did after investing was to hire a commercial
director to run the company alongside the two founders with technical
backgrounds. Track 9 (I = Interviewer, HC = Hugh Campbell)

I And have you ever missed investing in any big business opportunities?
HC I think there is one company in particular that I now kick myself about, and this is a
company in the market of Internet advertising. And I missed out on this mainly
because I didn't understand or I couldn't predict the market opportunity.
As you know the Internet bubble collapsed very publicly in 2000 and 2001. And
this business that I met offered me an opportunity to invest a million pounds at a
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 valuation of five million. But I decided to turn them down, even though the team
was very good, mainly because I couldn't understand how anyone could make any
money advertising on the Internet.
Now over the last two or three years, although the media have written a lot of
negative things about the Internet, you and I and everybody around this table
continues to spend time - more and more time - on the Internet. And so actually this
business' business model started to look very exciting. And last year the business
was sold to a US competitor for one hundred and sixty million pounds. So the
numbers are, are very exciting. I was offered an opportunity to invest and take
twenty percent of the business for five million pounds and it's now been sold, two
years later, for a hundred and sixty million. So I think if I'd have taken up that
opportunity I'd probably be on my yacht down in Monaco right now.

Module 3: International marketing

Track 10 (I = Interviewer, PS = Paul Smith)

I How can a company prepare itself to market its goods or services internationally?
PS Once, having made the decision to market a company’s goods internationally, there
are a series of stages or steps which most marketing companies would approach it.
Firstly, they'd look very carefully at the marketplace itself and whether it really is an
attractive marketplace or not. And by that that means erm, does the market play to
your strengths, erm, does it have a need for something that you have or that you can
have access to creating and delivering. Er and this question about the need is very
important. Is there a real need and that could be a conscious need or an unconscious
need?
The next question they ask after that is, what is the profile of the buyer, that means,
who would buy it? And there may be several different profiles, and surprising to say
that most of the blue chip successful companies in the world today, most of them
don't actually know who their customers are. They've got their names and addresses,
they’ve got their buying details but they actually haven made sense of the profile
that the hold on the database to build segments of customers to help to profile and
then to tailor other propositions for those particular customers. So, the second big
question is who would buy it?
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 The next question would be can they pay for it? Do they have the income level, or
do the companies have access to foreign exchange, erm, can they actually pay for it
is a real question in overseas markets. Another question to ask as you move into an
overseas market is can you beat competition? That means competition that exists
right now or, competition that will be attracted into the marketplace as soon as
competitors observe that you've got a market growing. The next question would be,
do you need a local partner, and in many overseas markets local partners are
absolutely crucial. And, a few other questions to add are, you know, how easy is it
to trade there, you know, are there taxes, are there barriers, are there borders, are
there customs complications? Some countries do have it and this may just make it
too complicated for both, the logistics, the delivery and the execution of the
products and services. And lastly, the specifics of the marketplace are there any
idiosyncrasies within the marketplace? Are there any unusual cultural characteristics
we need to be particularly aware of? Is there a particular type of colour or language,
or gesture that is not acceptable in that marketplace?

Track 11 (I = Interviewer, PS - Paul Smith)

I What typical problems can companies face in international marketing?
PS International marketing has a lot of challenges which domestic marketing obviously
doesn't have. Er… the typical areas or challenges that emerge are in the areas of
language, literacy, colour, gestures, culture, media availability, legal restrictions and
so on. Just to take a few of these, consider language, even the use of numbers within
the same language have completely different meanings. For example, if you take the
word trillion, in France and the USA trillion means one followed by twelve zeros.
Whereas in Britain and Germany trillion means one followed by eighteen zeros.
Now that's a huge difference if you are negotiating a financial contract around
anything to do with trillions. A classic example of the difference in language.

Track 12 (P = Paul, S = Stephanie, C = Courtney)

P OK, thanks for coming along this morning. As I said in my e-mail the purpose of
the meeting this morning is for us to brainstorm ideas, promotional activities that we
are going to carry out to make sure that the launch of the Business Solutions website
49
 is a success from the start. I'm going to open up to you to come up with the ideas
that you’ve formulated over the pass couple of weeks. Anything goes, we've got no
budget at the moment but you know, fire away.
S Oh great, no budget constraints.
C That's great. Television and radio.
S Well, it's starting big.
P Excellent.
C Well, we haven’t got a budget, err, well. I think we could reach a wide audience
something like that, and err, we could focus on some of the big sort of business
financial network television if we want to reach a global market, if that's what we’re
working to do and extending to all areas I think.
S Yeah, that’s been quite successful for some of the banks and stuff.
P That’s right, but definitely focused advertising.
C Focused on specific networks that would reach, that you know ... businessmen are
watching network television.
S Well, I’ve been working more on cheaper solutions than that just in case there are
budget problems. I thought we could do some effective online promotion, which is
actually very cheap, and I think we should aim to do anyway. Direct mailing but
also register the site effectively with search engines so anybody who goes onto the
Internet and is looking for business solutions would come up with our website.
C Yeah, we should definitely do some of that.
P Absolutely, yes.
C What about press advertising, traditional newspapers, business magazines, journals?
P Yes.
S Yes, great, I mean we’ve done that very effectively in the past.
P Yes, we’ve had some very good response rates to for the ads we've placed before.
S Yes, and that could be something we could do, not just once but a kind of campaign
over a period of time.
C Yes, build it up.
P Yep, use a campaign. OK.

Track 13 (P = Paul, S = Stephanie, C = Courtney)

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S And then, going back to cheaper solutions, we could use the contact base we've got,
the market research we've been doing for this new website. We've got some very
good contacts where I think we could send out glossy brochures, maybe a CD
demonstration, CD ROM demonstration of the site to human resource managers,
training managers.
C Yes, that's a good idea.
P Great.
S As we've already got contacts with lots of those and I'm sure we should.
C ...exploit them.
S Yeah, we could build that up.
P Yeah.
C And direct mail them.
P With information packs or ...?
S Yeah, we could do a big either CD ROM walk-through as part of a glossy brochure
pack. That might be one way and err, or information brochure if we didn't have so
much money.
C Yeah, would it be worth it sponsoring some kind of event. I don't know?
S Oh yeah.
C You know, inviting the real movers and shakers of art, you know, are target
customers, the ones we can count.
S It would be great to do a presentation maybe on a boat going up the river or
something. That would get the press in.
P Yes.
C Yes.
P That's a good idea Courtney, excellent. OK, What are the other areas of press
advertising could we do, do you think, I mean, you know, we've done bill board
advertising before but...
S Bill boards, what about that?
C I don't know.
S I hadn't thought of that for this but...
C I don't know what the costs are related to that, I think we would have to look at that.
Underground, airports, maybe some of that.
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P Yep, OK, well, I'm going to wrap the meeting up now. We've come up with some
really good ideas, we've got TV, radio advertising, obviously that's going to be
dependent on the budget we've actually set at the end of the day. Online promotion
which is cheaper but obviously we've got certainly have some degree of online
promotion. Press advertising, business journals, billboards, maybe depending on the
budget again. The contacts with the human resources departments, definitely, I
mean that's an area that we've really got to explore and certainly a sponsorship of a
major event to tie into the launch would be a great idea.
C OK. so when will we meet next?
P I think we're scheduled for three week’s time.
S Yes. that's right.
P By which time we'll have more of an idea of the sort of budget that we're working
with.
S Shall we cost some of these things and see... So that we can....?
C I've got some research I can look at.
S OK. then we'll bring that to the next meeting.
P Great.
S Great.
C OK.
S OK, thanks.

Track 14 (I= Interviewer, G = Gonzales)

I Good morning Mr Gonzales.
G Good morning.
I It's been a very good year for your company, hasn't it?
G Yes, an excellent performance. Our turnover was over 150 million euros, up 15%,
and our gross profit roundabout 18.5 million. Very satisfying. And of course, our
main product, Zumo, has done exceptionally well.
I Yes, it's certainly been a winner in Europe. How about the rest of the world? Any
plans?
G Yes, of course, we would like to build on our success in Europe and market the
brand internationally. Obviously Spanish speaking countries would be good markets
52
 to break into, like Argentina and Mexico, they would provide the base for us to
develop a global brand.
I At present, you market Zumo as a Spanish drink. It's got a strong Spanish image.
Would you need to adapt the product for the global market?
G Well, we haven't decided yet, but obviously it's got to have a wide international
appeal. Also, of course, as Zumo is almost unknown outside Europe, a marketing
campaign would have to raise awareness of the Zumo brand. So it would have to be
a very imaginative campaign with a standardised advertising theme.
I Interesting.
I Tell us a little about the competition. Who are your competitors?
G Oh, Coca-Cola, Pepsi, Heinz, they're all trying to take the market share from us, but
we have a big advantage.
I Yes.
G Zumo's got a secret ingredient, called 'herbora'. It's made from the roots of rare
African plants, and it gives the drink its unique taste.
I Really.
G Herbora's the key to Zumo's popularity and its thirst-quenching ability. But Zumo
has other qualities. People's bodies can absorb Zumo faster than water and other soft
drinks - scientific studies have proved that. And it contains things like caffeine a
small amount - lots of vitamins and glucose.
I Thanks very much, Senhor Gonzales for giving up your time to talk to us today.

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