Unit 1: Management

Part 1: Commercial Terms

No Term Definition

01 Execute plans the process of making a company's strategic plan happen.

and strategies

02 Measure the process of quantifying and assessing the effectiveness and

performance efficiency of an organization or individual in achieving their
objectives or goals.

03 Meet the a goal or expectation that has yet to be achieved.

targets

04 Allocate actions of assigning and scheduling assets that effectively

resources support your team’s goals.

05 Deal with to prevent, mitigate, and terminate crises that may affect
crises a business or a government.

06 Supervise the act of overseeing the work of employees who are at a

subordinates lower level in the organizational hierarchy.

07 Make the process of selecting the best course of action out of

decision many available alternatives.

08 Board of is the governing body of a company, whose members are

Directors elected by shareholders to set strategy, oversee management,
and protect the interests of shareholders and stakeholders.

09 Top the most important executives in an organization, considered

management as a group

10 Middle is the level of management that is below the executive

management management and above the line managers or specialist
managers.

Part 2 : Vocabulary

No Vocabulary Type Meaning Example

01 Consultant n a person who Eventually they found a consultant
provides expert they felt they could do business with.
advice to a
company

02 Innovation n a new idea or Technological innovations have

method allowed for drilling with less
disturbance to the environment.

03 Public sector n the section of the She worked in the public sector for
economy under years before returning to private
government practice in her old law firm.
control

04 Subordinate n a person with a He left the routine checks to one of

less important his subordinates.
position in an
organization

05 Managerial adj relating to a Those who want to move into a

manager or managerial position are offered
management training and mentoring.

06 Objective n something you Her main objective now is simply to

plan to do or stay in power.
achieve

07 Capital resources n man-made assets The company's expansion plans were

that are used to contingent on securing additional
manufacture
goods capital resources.

08 Promotion n when someone is Employees worry that saying 'no' to

raised to a higher the boss decreases their chances of
or more advancement and promotion.
important
position
09 Crisis n a situation of The country is in the midst of an
danger or economic crisis.
difficulty

10 Board of director n the governing Approval by the board of directors is

body of a required to implement the new
company, whose strategy.
members are
elected by
shareholders
 Unit 2: Work and motivation
Part 1: Commercial terms

No Terms Definition

1 hygiene factors a feature of a job that will make a worker

unhappy if it is not provided, for example fair
pay or comfortable working conditions
According to Feredrick Herzberg, these
factors do not in fact motivate workers, they
are merely ‘satisfiers'
2 motivating factors something makes someone happy with their
(motivators) job and their employer. This includes things
such as having a challenging and interesting
job, recognition and responsibility, promotion,
etc

3 Self-actualization the demand for personal growth and

needs fulfillment
(the highest in Abraham Maslow’s ‘hierarchy
of needs)

4 Esteem needs the demand for achievement, status,

recognition, reputation, etc
(the 2nd highest in Abraham Maslow’s
‘hierarchy of needs)

5 Love and the demand for family, friendships,

belonging needs relationships, work groups, etc (the 3rd
highest in Abraham Maslow’s ‘hierarchy of
needs)

6 Safety needs the demand for security, protection, stability,

etc (the 4th highest in Abraham Maslow’s
‘hierarchy of needs)

7 Physiological the demand for air, food, drink, clothing,

needs shelter, sleep, warmth, etc (the lowest in
Abraham Maslow’s ‘hierarchy of needs)

8 business a set of management and analytic processes

performance that ensure activities and outputs meet an
management organization's goals in an effective and
efficient manner.

9 fringe benefits something that you get for working, in

addition to your pay, that is not in the form of
money

10 Corporate complex and hierarchical organizational

bureaucracy structures, rules, and procedures that often
(bộ máy quan liêu) exist within large companies

Part 2: Vocabulary

N Vocab Meaning Examples

o

1 labour the relationships The firm prided itself

relations between employees on its good labour
​/ˈleɪ.bər and employers relations.
rəʊˈteɪ.ʃən/

2 incentive (sự something, especially Executives had a

khích lệ, money, that strong incentive to
động lực) encourages a person destroy papers they
/ɪnˈsen.tɪv/ or organization to do knew would
something incriminate them in
court.

3 job rotation a system of working in Job rotation can help

/jäb which employees work employers by
rōˈtāSH(ə)n/ in a range of jobs in a keeping employees
company so that they from getting bored
have different types of and looking for
work to do and another job
understand the
organization better

4 corporate the beliefs and ideas Because of

culture that a company has differences in
/ˈkôrp(ə)rət and the way in which corporate culture,
ˈkəlCHər/ they affect how it does the merger between
business and how its the two companies
employees behave proved disastrous.

5 wage a particular amount of He gets/earns/is paid

/weɪdʒ/ money that is paid, a good wage,
usually every week or because he works
hour, to an employee, for a fair employer.
 especially one who
does work that needs
physical skills or
strength, rather than a
job needing a college
education

6 salary a fixed amount of His net monthly

/ˈsæl.ər.i/ money agreed every salary is €2,500.
year as pay for an
employee, usually
paid directly into
employee bank
account every month

7 perk an advantage or A company car and

/pɜːk/ something extra, such a mobile phone are
as money or goods, some of the perks
that you are given that come with the
because of your job job.

8 remuneration payment for work that In return for some

(thù lao) has been done or caretaking duties, we
/rɪˌmjuː.nərˈeɪ.ʃ services that have are offering a free
ən/ been provided apartment and a
small remuneration.

9 bureaucracy a system for I had to deal with the

(quan liêu) controlling or university's
/bjʊəˈrɒk.rə.si/ managing a country, bureaucracy when I
company, or was applying for
organization that is financial aid.
operated by a large
number of officials
employed to follow
rules carefully

10 clerical (văn relating to work done a clerical job (= a job

thư, văn in an office performing general
 phòng) office duties).
/ˈkler.ɪ.kəl/

1. The importance of motivation

● Leads to profitable operation

● High level of productivity
● Satisfaction of employees
● Minimizes disputes and strike
● Stability of workforce
● Minimizes supervision cost
● Achievement of organizational goals
● Optimal use of resources

2. Common types of motivators

● Intrinsic motivation: This is when motivation comes from

"internal" factors to meet personal needs. We do things we do
because we enjoy them, not because we have to…
● ​Extrinsic motivation: This is when motivation comes from
"external" factors that are given or controlled by others.

3. Theory X and Y

● Theory X: assumes that people are lazy and will avoid work and
responsibility if they can, so workers have to be closely
supervised and controlled and told what to do. They have to be
both threatened (e.g. with losing their job) and rewarded with
financial incentives.
● Theory Y: assumes that most people have a psychological need
to work, are motivated by the satisfaction of doing a good job,
are ambitious, and want to take responsibility and be creative in
their work.

4. Maslow’s hierarchical needs

McGregor’s two theories are based on Abraham Maslow’s famous

hierarchy of needs. Theory X relates to the basic, ‘lower order’ needs
at the bottom of the hierarchy, such as financial security, while
Theory Y relates to ‘higher order’ needs such as esteem
(achievement, status, and responsibility) and self-actualization
(personal growth and fulfillment) that can be pursued if basic needs
are satisfied.
 Unit 3. Company structure
Part 1: Commercial Terms

No. Terms Definition

1 Wikinomics a description of the way the relationship

between businesses and markets has
changed because of much greater
involvement of customers and users
directly with products or companies.

2 Outsourcing a situation in which a company employs

another organization to do some of its
work, rather than using its own
employees to do it.

3 Chain of command an organizational structure that

 documents how each member of a
company reports to one another.

4 Corporate values refer to the guiding principles that shape

the culture, behavior, and decisions of a
company.

5 Entrepreneurial refers to transforming or providing shape

style to an idea or innovation that can lead to
a successful business or organization.

6 Marketing the business activity that involves finding

out what customers want, using that
information to design products and
services, and selling them effectively

7 Human Resources the department of an organization that

deals with finding new employees,
keeping records about all the
organization's employees, and helping
them with any problems

8 Market segment a group of possible customers who are

similar in their needs, age, education,
etc.:

9 Profit margin the difference between the total cost of

making and selling something and the
price it is sold for

10 Inventory the amount of goods a shop has, or the

value of them

Part 2: Vocabulary

No. Vocab Meaning Examples

1 hierarchy or a system of authority with a series of

chain of different levels, one above management
command the other positions, whose
holders can make
decisions, or give
orders and instructions
2 function a specific activity in a Production, finance,
company marketing…

3 autonomou independent, able to take Autonomous vehicles,

s decisions without autonomous robots,
consulting someone at the autonomous
same level or higher in the warehouse and
chain of command autonomous factory
systems

4 Line the power to give the controller,

authority instructions to people at engineering manager,
the level below in the chain production manager,
of command and sales manager.

5 To delegate to give someone else The company director

responsibility for doing delegates his deputy
something instead of you to present the financial
submission for him at
the court.

6 To report to To be responsible to
someone and to take
instruction from them

7 eliminate to remove or get rid of Many companies have

something been forced to
eliminate jobs.

8 subordinate a person who has a He always confers with

position with less authority his subordinates
and power than somebody before making
else in an organization decisions.

9 superior a person of higher rank, In matrix structure

status or position people have to report
to more than one
superior

10 consult to go to somebody for The marketing

information or advice department cannot
 make the finance
decision without
consulting the finance
department.

CHAIN OF COMMAND

The pyramid-shaped organizational chart we referred to earlier is

known as a hierarchical organizational chart. It’s the most common
type of organizational structure—the chain of command goes from
the top (e.g., the CEO or manager) down (e.g., entry-level and
lower-level employees), and each employee has a supervisor.
Pros
● Better define levels of authority and responsibility
● Shows who each person reports to or who to talk to about
specific projects
● Motivates employees with clear career paths and chances for
promotion
● Gives each employee a specialty
 ● Creates camaraderie between employees within the same
department
Cons
● Can slow down innovation or important changes due to
increased bureaucracy
● Can cause employees to act in the interest of their
department instead of the company as a whole
● Can make lower-level employees feel like they have less
ownership and can’t express their ideas for the company
FUNCTIONAL STRUCTURE

Similar to a hierarchical organizational structure, a functional

organizational structure starts with positions with the highest levels
of responsibility at the top and goes down from there. Primarily,
though, employees are organized according to their specific skills
and their corresponding function in the company. Each separate
department is managed independently.
Pros
● Allows employees to focus on their role
● Encourages specialization
● Help teams and departments feel self-determined
● Is easily scalable in any sized company
Cons
● Can create silos within an organization
● Hampers interdepartmental communication
● Obscures processes and strategies for different markets or
products in a company
FLATTENING HIERARCHIES
A horizontal or flat organizational structure fits companies with few
levels between upper management and staff-level employees. Many
startup businesses use a horizontal org structure before they grow
large enough to build out different departments, but some
organizations maintain this structure since it encourages less
supervision and more involvement from all employees.
Pros
● Gives employees more responsibility
● Fosters more open communication
● Improves coordination and speed of implementing new ideas
Cons
● Can create confusion since employees do not have a clear
supervisor to report to
● Can produce employees with more generalized skills and
knowledge
● Can be difficult to maintain once the company grows beyond
startup status
MATRIX MANAGEMENT

A matrix organizational chart looks like a grid, and it shows

cross-functional teams that form for special projects. For example, an
 engineer may regularly belong to the engineering department (led
by an engineering director) but work on a temporary project (led by a
project manager). The matrix org chart accounts for both of these
roles and reporting relationships.
Pros
● Allows supervisors to easily choose individuals by the needs of
a project
● Gives a more dynamic view of the organization
● Encourages employees to use their skills in various capacities
aside from their original roles
Cons
● Presents a conflict between department managers and
project managers
● Can change more frequently than other organizational chart
types

Unit 4: Managing across cultures

N Advantages/D Terms Definition
o. isadvantages

1 Advantages Improved Engagement: is about connection and

Employee Morale motivation
and Engagement Morale: is about personal attitude,
satisfaction, confidence
⇒ pay attention to employee
connection, motivation and employee’s
attitude at work.

2 Increased Market ⇒ figure out how relevant the company’s

Relevance offer (products/services), campaign or
brand is to the needs and desires of the
company’s potential customers and
improve it.

3 Regulatory ⇒ an organization's adherence to laws,

Compliance regulations, guidelines and
specifications relevant to its business
processes.

4 Better ⇒ improve the way that employees and

 communication management interact to reach
organizational goals.

5 Enhanced ⇒ employees working more efficiently

Productivity and a reduced amount of time spent on
workplace processes, which means
people can complete their
responsibilities and workload without
feeling stressed.

6 Disadvantages Complexity and Complexity: the formation of a large,

Inconsistency interconnected network of technologies,
data, products or services, and people
within an organization
Inconsistency: is when homogeneous
and standardized services can’t be
guaranteed by the company.

7 Potential for ⇒ the increasing chances of people

Discrimination being treated unfairly or unequally.

8 Cost and ⇒ is when the company requires a large

Resource amount of money, investment and
Intensive resources (materials, energy,...) to
produce its goods or services.

9 Loss of Global ⇒ losing dimensions of identity related

Identity to things such as interpersonal and
ideological identities.

10 Slow ⇒ because of the geographical

Decision-Making distances, decision-making is harder and
slower to deliver.

Part 2: Vocabulary

N Word Pronunciation Meaning Examples

o
.

1 Glocalization /ˌɡləʊ.kəl.aɪˈzeɪ.ʃən bản địa hóa Our policy of

/ glocalization means
 that our products are
always adapted to
specific markets.

2 Rational /ˈræʃ.ən.əl/ hợp lý There must be some

rational explanation
for what happened.

3 Universalist /¸ju:ni´və:səlist/ người theo From the 19th

= Individualist /¸indi´vidjuəlist/ century, Universalists
chủ nghĩa
felt a close kinship
cá nhân with Unitarians,
since the two groups
shared many views
and practices.

4 Confrontation /ˌkɒn.frʌnˈteɪ.ʃən/ sự đối đầu I had a confrontation

this morning with my
boss.

5 Compromise /ˈkɒm.prə.maɪz/ sự thỏa hiệp In a compromise

between
management and
unions, a four
percent pay rise was
agreed in return for
an increase in
productivity.

6 Improvise /ˈɪm.prə.vaɪz/ ứng biến I hadn't prepared a

speech so I suddenly
had to improvise.

7 Collectivist /kəˈlek.tɪv.ɪst/ người theo Collectivist cultures

= Particularist /pəˈtɪk.jə.lərist/ chủ nghĩa emphasize the needs
đám đông and goals of the
group as a whole
over the needs and
desires of each
individual.

8 take ˈpres.ɪ.dəns/ đảm nhận Business people

địa vị cao often think that
precedence
fluency and
communication take
 over precedence over
grammar when
speaking.

9 Linear-active /ˈlɪn.i.ər nền văn hóa Linear-active people

cultures chủ động tend to be
đơn phương task-oriented, highly
organized planners
who complete
action-chains by
doing one thing at a
time, with a linear
agenda.

1 Hierarchy /ˈhaɪə.rɑː.ki/ hệ thống Every organization

0 cấp bậc has a hierarchy, and
trying to understand
that, and the
systems and
processes of the
organization, is
important.

1. Richard Lewis's model of types of culture

In his work on cross-cultural communication, Richard Lewis has

categorized different cultures into three distinct types, each
characterized by specific behavioral traits. These cultural types are
represented as "poles" on a spectrum:

1. Linear-Active Cultures (Blue): Examples: Britain, the USA, Germany.

Characteristics: These cultures are organized, and rational, and

prioritize logical thinking over emotions. They plan ahead and prefer
to focus on one task at a time. They tend to adhere to rules,
regulations, and contracts, following what Fons Trompenaars calls
'universalist' principles.

2. Multi-Active Cultures (Red): Examples: Southern Europe, Latin

America, Africa.

Characteristics: People in these cultures value feelings, emotions, and

intuition. They are flexible, capable of handling multiple tasks
simultaneously, and comfortable with changing plans and
improvisation. Social hierarchy and relationships hold significant
importance. They are collectivist and 'particularist,' prioritizing
personal relationships over rules and regulations.

3. Reactive Cultures (Green): Examples: Asian countries such as China,

Korea, and Japan.

Characteristics: Reactive cultures emphasize listening and

understanding the other party's position before responding. They
avoid confrontation, value "saving face," and often refrain from
interrupting others. Maintaining harmony and compromise are
central to their approach.

It's important to note that some cultures may exhibit a combination

of traits from two of these poles, resulting in a more complex cultural
profile. Lewis's model provides a framework for understanding and
navigating cultural differences in international business and
communication. Recognizing these cultural tendencies can help
multinational companies adapt their strategies and interactions to
be more effective in diverse cultural contexts.

2. The conflict between globalization and localization

The conflict between globalization and localization refers to the

tension between the forces of global integration and local autonomy.
Globalization is the process of increasing interconnectedness and
interdependence among countries, economies, and cultures. It
involves the flow of goods, services, capital, information, and ideas
across national borders. Localization, on the other hand, emphasizes
the preservation of local customs, traditions, languages, and
identities.

There are several key points of conflict between globalization and

localization:

1. Economic Impact: Globalization often leads to the expansion of

multinational corporations and the homogenization of
products and services. This can threaten local businesses and
industries, as well as cultural diversity. Localization, on the
other hand, aims to protect local economies and promote local
industries.

2. Cultural Identity: Globalization can lead to the spread of

Western cultural values and norms, which can erode local
 traditions and identities. Localization seeks to preserve and
promote cultural diversity and local customs.

3. Environmental Concerns: Globalization can contribute to

environmental degradation through increased consumption,
resource extraction, and pollution. Localization emphasizes
sustainable practices and the protection of local ecosystems.

4. Political Sovereignty: Globalization can challenge the

sovereignty of nation-states, as international organizations and
agreements may impose regulations and policies that limit
local autonomy. Localization seeks to maintain political
sovereignty and decision-making power at the local level.

5. It is important to note that globalization and localization are not

mutually exclusive. Many argue for a balanced approach that
combines the benefits of global integration with the
preservation of local autonomy and cultural diversity. This can
be achieved through policies that promote fair trade,
sustainable development, and respect for local customs and
identities.

Unit 5: Recruitment
N Term Definition Example
o.

1 Curriculum vitae a brief account of a person’s Applicants

/ CV (Britain) - education, qualifications, and should enclose a
Resume ( previous occupations, typically CV and covering
letter.
America) sent with a job application.

2 Recruitment the process from identifying the recruitment

that the business needs to of nurses
employ someone up to the
point at which applications
have arrived at the business
3 Job description outlines the responsibilities Photocopying
and duties to be carried out isn’t part of my
by someone employed to do a job description
specific job

4 Employment a business that helps people A good

agency to find suitable jobs or employment
companies to find suitable agency will
match your skills
employees
and aspirations to
available
opportunities in
the marketplace.

5 Shortlist a small number of people who She's on the

have been judged the most shortlist for a first
suitable for a job, prize,.. from novel prize
a larger number and from
which one will finally be
chosen

6 Covering letter a letter that you send with Copies of the

documents or a package that questionnaire
gives information about its and covering
contents letter were sent
to teachers
individually.

7 Preliminary like a shortlist

selection

8 Final selection The final

selection might
be made at
random from the
category of
acceptable
applicants.

9 Product line a range of similar products or Our most

services that are sold by the important
same company, with different product line is
features and different prices about soap
10 Job interview a meeting in which an
employer asks the person
applying for a job questions to
see whether they would be
the right person to do that job
PART 2: VOCABULARY
No Vocabulary Meaning
.
1 Headhunter (n) a person who identifies
and approaches suitable
candidates employed
elsewhere to fill business
position
2 Vacancy (n) an unoccupied position
3 Resign (v) voluntarily leave a job or
office
4 Give notice inform/ warn someone of
something
5 Candidate (n) someone who is being
considered for a job
6 Qualification a skill, personal quality, or
type of experience that
makes you suitable for a
Job interview is
one of the most
important parts
of the
recruitment
Example
Send your resume to
headhunters you
would like to contact
you, but make certain
it is professionally
prepared and
presented well.
We will keep your CV
on file in case other
suitable vacancies
arise.
She resigned from the
government last week
To withdraw money
from this type of
savings account, you
must give the bank 30
days’ notice
There are only three
candidates for the job
There have been
questions about his
qualifications to lead
 particular job or position the company

7 Marital status whether someone is Marital status:

married – used especially married/single/divorce
on official forms d

8 Training a planned sequence and She will have training

program combination of activities program before
designed to equip working officially
employees with
knowledge and skills to
become better
professionals

9 Measure The boss measures

performance each employee’s
performance

10 Research You need to research

thoroughly the company
thoroughly before
applying for a job.

1. The different stages of recruitment

 Unit 8: Production
1. The process of industrial production

Unit 9: LOGISTICS

1. Pull and push strategies

- Pull strategy: (JIT production)

 + A company manufactures according to current demand

+ When pieces are removed from stocks, replacements are

automatically ordered from suppliers

+ This is a replenishment strategy: both production and suppliers

are constantly

reacting to the actual consumption of components, rather than

planning ahead.

- Push strategy: (MRP: Manufacturing Resources Planning)

+ Production is based on estimates of future demand, and begins

according to

the planned production lead time (supplies are scheduled to meet

expected demand)

+ Demand forecasts are not always accurate => push strategy

often incorporate safety stocks and safety lead time

2. Just in time (JIT) production (Pull strategy): developed by

Toyota in Japan in 1950s

- The most common JIT system is called Kanban (a Japanese word means:
visual card)

- In the past: Kanban was a manual system. Today, advanced software is

used

⇒ Other names for pull strategy include: lean production, stockless production,
continuous flow manufacture, agile manufacturing.
 Unit 12: MARKETING

1. A product life cycle

- At the introduction stage, sales are low. They rise quickly during the
growth stage, level off at maturity stage, before eventually falling during
the decline stage until the product is withdrawn from the market
- Introduction Stage:
+ Costs are high
+ The sales volume is low and customers have to be persuaded to try
the product
+ The company can choose between high skim pricing to recover
development costs, or low penetration pricing to build market
share rapidly, if there are already competitors.
 + Promotion is aimed at educating potential consumers (innovators
and early adopters) about the product, and building product
awareness.
- Growth Stage:
+ Public awareness about the product increases and sales volume
rises significantly.
+ Costs are reduced due to economies of scale, so profitability
increases.
+ The price can remain unchanged because demand is increasing
but competitors aren't usually yet well established.
+ Promotion is aimed at a much broader audience (the majority of
the product's users).
- Maturity Stage:
+ Sales volume peaks.
+ The product's features may have to be changed so that it differs
from competing brands, which involves new costs.
+ Prices may have to be reduced because competitors are
established in the market, but companies try to defend their
market share while also maximizing profit.
+ Promotion emphasizes product differentiation
- Decline Stage:
+ Sales volume begins to go down.
+ Either costs are too high compared to sales, so the product is
discontinued, or the company continues to offer the product to
loyal customers, while reducing costs to a minimum.
+ The price is either maintained, or greatly reduced to liquidate stock
if the product is discontinued.
+ At this stage, there is virtually no promotion.

2. Role of marketing

- Marketing today is a way of doing business. Marketing has to be

all-pervasive (toàn diện, bao trùm), part of everyone’s job description
- Its job is neither to fool the customer nor to falsify the company’s image.
It is to integrate the customer into the design of the product.

⇒ Marketing is no longer just a department within a company but a

fundamental way of doing business. It is not limited to advertising or
promotions but should be integrated into every aspect of the organization.
Marketing's goal is to incorporate the customer into the product's design and to
achieve market leadership, aiming to own the entire market rather than just a
portion of it.

Terms:

- Sales-Driven Marketing: A marketing approach where the primary

focus is on convincing customers to purchase existing products, often
with little regard for adapting products to customer needs.
- Customer-Driven Marketing: A marketing strategy that involves being
responsive to customer requests and preferences, where products are
adapted or customized to meet specific customer demands.
- Market-Driven Marketing: A contemporary marketing approach in
which companies adapt their products to align with their customers'
strategies, emphasizing collaboration to create a market rather than
merely controlling it.
- "Any Color as Long as It's Black" Marketing: A reference to the old
sales-driven approach, where companies offered limited product
variations and expected customers to conform to the available choices.
- "Tell Us What Color You Want" Marketing: Reflecting the
customer-driven approach, this phrase signifies a willingness to modify
products based on customer feedback and requests.
- Market Leadership: A marketing goal of achieving a dominant position
within a market by owning the majority of market share and setting the
standards for the industry.
- Internal Focus: Refers to a company's tendency to prioritize its internal
activities, such as R&D and product development, at the expense of
customer and market considerations.
- Market-Share Mentality: A mindset that focuses on competing for a
larger share of an existing market, often leading to fierce competition for
incremental gains rather than broader market ownership.
- Whole Pie Ownership: The idea that effective marketing involves
striving to own the entire market, rather than just a portion of it, by
offering products that fulfill a wide range of customer needs.
- Smart Marketing: Refers to marketing strategies that prioritize market
leadership, customer integration, and adaptability, recognizing that
marketing is not limited to advertising but should be an
all-encompassing aspect of a business's operations.

3. Pricing and distribution strategies

Unit 13: ADVERTISING

1. Different kinds of sales promotions

Terms:

- Sales Promotion: Marketing activities and strategies designed to

stimulate short-term sales and increase product trial. Examples include
discounts, free samples, contests, and loyalty programs.
- Target Audience: A specific group of individuals or consumers at which
an advertising campaign is aimed. It is defined based on demographic,
psychographic, and behavioral characteristics.
- Brand Awareness: The extent to which a brand is recognized by
consumers and associated with its products or services. It is a key metric
in evaluating the effectiveness of advertising.
- Call to Action (CTA): A specific instruction or directive in an
advertisement that prompts the viewer or reader to take a particular
action, such as making a purchase, signing up for a newsletter, or visiting
a website.
- ROI (Return on Investment): A measure of the effectiveness and
profitability of advertising campaigns, indicating the financial return
generated in relation to the amount spent on advertising. ROI is often
used to assess the success of marketing efforts.

2. Conditions to make a successful advertising campaign

Unit 23: THE BUSINESS CYCLE

(a cycle of fluctuations in GDP around its long-term natural growth rate)

Causes of the business cycle:

- Internal:
+ The most probable: people’s spending or consumption
decisions (which in turn are based on expectations,
country’s output, investment, unemployment, balance of
payment)

⇒ Explain:

1. If interest rates unexpectedly rise, people find themselves paying more than they
anticipated on their rent/mortgage -> consume less
2. If people are worried about the possibility of losing their jobs -> tend to save money
and consume less -> a fall in demand -> a fall in production and employment
 3. Investment is closely linked to consumption and only takes place when demand is
growing
+ Decisions by businesses

=> Explain:

1. If supply exceeds demand, prices should fall -> encourage people to buy again -> the
economy will reach a trough -> there will be a recovery or an upturn.
- External (causes outside economic activity):
+ Scientific advances, natural disasters, elections or political
shocks, demographic changes
+ Economist Joseph Schumpeter: the business cycle is caused
by major technological inventions (the steam engine,...)
which leads to periods of “creative destruction” (during
which radical innovations destroy established companies)

*An injection of government spending leads to business activity, eventually

raising total demand and GDP.

Terms:

- Keynesian Economics: During the Great Depression, it became evident

that the market system did not automatically lead to full employment in
the short term. John Maynard Keynes argued that government
intervention was necessary to counteract economic fluctuations. In times
of recession, governments should increase spending, decrease taxes, or
expand the money supply to stimulate economic activity.
- Monetarism: They believed that government attempts to manage
demand had negative long-term effects. They argued that money was
neutral and that constant, noninflationary growth in the money supply
was more important than government intervention.
- Role of Government: Monetarists and proponents of free markets argued
that governments could not predict recessions any better than private
companies and that their interventions often exacerbated economic
swings.
- Resurgence of Keynesianism: Keynesianism regained popularity as
governments worldwide injected significant funds into their economies to
combat the crisis.

Unit 24: CORPORATE SOCIAL RESPONSIBILITIES

1. Responsibilities of businesses
Extent: 4 levels of Corporate Social Responsibilities (CSR)

- Environmental Responsibility
+ Organizations should behave in as environmentally friendly a way
as possible. It’s one of the most common forms of CSR. Some
companies use the term “environmental stewardship” to refer to
such initiatives.
+ Reducing harmful practices: Decreasing pollution, greenhouse gas
emissions, the use of single-use plastics, water consumption, and
general waste
+ Regulating energy consumption: Increasing reliance on
renewables, sustainable resources, and recycled or partially
recycled materials
+ Offsetting negative environmental impact: Planting trees, funding
research, and donating to related causes
- Ethical Responsibility: ensuring an organization is operating in a fair and
ethical manner. Organizations that embrace ethical responsibility aim to
practice ethical behavior through fair treatment of all stakeholders,
including leadership, investors, employees, suppliers, and customers.
+ A business might set its own, higher minimum wage if the one
mandated by the state or federal government doesn’t constitute a
“livable wage.” Likewise, a business might require that products,
ingredients, materials, or components be sourced according to
free trade standards.
 + In this regard, many firms have processes to ensure they’re not
purchasing products resulting from slavery or child labor.
- Philanthropic Responsibility: refers to a business’s aim to actively make
the world and society a better place.
+ While many firms donate to charities and nonprofits that align
with their missions, others donate to worthy causes that don’t
directly relate to their business. Others go so far as to create their
own charitable trust or organization to give back and have a
positive impact on society.
- Economic Responsibility: the practice of a firm backing all of its financial
decisions in its commitment to do good. The end goal isn’t just to
maximize profits, but also to make sure the business operations
positively impact the environment, people, and society.

2. Illegal acts (non-ethics business practices)

False advertising: This is the most prevalent unethical practice. Businesses use
many tricks to improve sales, from inconsistent comparison to price-based
deception. They pay influencers for endorsements and fake reviews. Many
companies inflate the claims while marketing, exaggerate the desirable
features, and hide the side effects.

Bending terms in user agreements: Most users don’t go through the pages-long
fine prints in the agreements. Thus, businesses slip into undesirable and
complex conditions, which they can tap later to their advantage. Such acts lead
to mass mistrust when they come to the surface.

Creating unfair competition: Businesses also, occasionally, get into creating

unfair advantages over their competitors. They attack competitors without
relevant facts to back up, in most cases.

Unit 27: INTERNATIONAL TRADE

1. Theory of free trade

The theory of free trade is an economic concept and a fundamental principle in

international economics that advocates for the absence of restrictions or
barriers on the exchange of goods and services between countries. It is based
on the idea that when countries engage in free trade, they can benefit by
specializing in the production of goods and services in which they have a
comparative advantage. Comparative advantage refers to a country's ability to
produce a particular good or service more efficiently or at a lower opportunity
cost than another country.

2. Advantages and disadvantages of free trade.

Advantages of International Trade:

- Economic Growth: International trade can lead to economic growth by

expanding markets and increasing the volume of production and
consumption. It allows countries to tap into larger consumer bases and
benefit from economies of scale.
- Increased Product Variety: Trade provides consumers with a wider range
of products and choices. It allows access to goods that may not be
produced domestically or are produced more efficiently abroad.
- Efficient Resource Allocation: Countries can specialize in producing
goods and services in which they have a comparative advantage,
leading to more efficient resource allocation. This can increase overall
production efficiency and economic welfare.
- Reduced Prices: Competition from international trade can lead to lower
prices for consumers. Imported goods can often be more affordable
than domestically produced ones, benefiting consumers.
- Job Creation: While international trade can lead to job displacement in
some industries, it can also create jobs in export-oriented industries,
transportation, and related sectors. The net effect on employment
depends on various factors.
- Technological Transfer: Trade can facilitate the transfer of technology
and knowledge between countries, leading to innovation and
technological advancement.
- Diversification of Risk: Relying solely on domestic markets can be risky.
International trade allows businesses to diversify their customer base
and reduce dependence on a single market.

Disadvantages of international trade

- Job Displacement: Increased imports can lead to job losses in certain

industries, especially if foreign competitors produce goods more
efficiently. This can create economic dislocation and unemployment.
- Income Inequality: Trade can exacerbate income inequality within a
country, as those in industries that face increased competition may see
their wages decline, while those in export-oriented or high-skilled sectors
benefit.
- Trade Deficits: A persistent trade deficit (importing more than exporting)
can lead to imbalances in a country's current account, potentially
impacting the value of its currency and financial stability.
- Dependency on Global Conditions: International trade exposes countries
to global economic conditions and market fluctuations, making their
economies vulnerable to global crises and economic shocks.
- Environmental Concerns: Trade can lead to environmental concerns if it
encourages the production and transport of goods over long distances,
contributing to carbon emissions and other environmental issues.
- Political and National Security Risks: Overreliance on imports for
essential goods can pose political and national security risks, as
disruptions in the global supply chain may affect a country's ability to
access critical resources.
- Trade Barriers: Trade can be hindered by trade barriers such as tariffs,
quotas, and non-tariff barriers, which can limit access to foreign markets
and increase costs for exporters.