Exercises On Business English (Ban Day Hoc) - Book 2

BANKING UNIVERSITY HO CHI MINH CITY
FACULTY OF FOREIGN LANGUAGES

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EXERCISES ON
BUSINESS ENGLISH –
BOOK 2
HO CHI MINH CITY, 05/202
1
CHAPTER 1: E-MARKETING
1. viral marketing (n): quảng cáo truyền miệng 31. web optimization (n): tối ưu hoá trang web (làm cho đẹp
mắt... để thu hút ng dùng)
2. stealth marketing (n): marketing ẩn, lén lút, từ từ 32. web personalization (n): cá nhân hoá trang web
3. website marketing (n): tiếp thị trên website 33. personalized products (n): sản phẩm đc cá nhân hoá
4. social media marketing (n): tiếp thị trên MXH 34. customer’s perception (n): cảm nhận khách hàng
(ko có Youtube)
tiếp thị nhờ cơ sở dữ điều hướng của trang web
5. database marketing (n): liệu (thông qua CSDL 35. navigation (of a website) (n):
(link đến các trang khác)
của 1 cty khác)
6. direct marketing (n):tiếp thị trực tiếp, (đến tận nhà...)
36. cross promotion (n): tiếp thị chéo (tiếp thị nhiều sản phẩm
giá niêm yết cùng 1 lúc, theo bộ, bán kèm vs cái
7. marketing mix (n): 37. quoted price (n): khác)
ấn bản tiếp thị (tờ rơi,
8. marketing collateral (n):băng rôn,...) 38. direct mail (n):
thư trực tiếp (thư đến tận nhà hoặc email
phân khúc thị trường (chiếm đc trực tiếp)
9. market segment (n): 39. broadband connections (n): kết nối băng thông/đg truyền
bnhiu % thị phần trong thị trường
đó)
chiến lược thâm nhập thị trường băng thông
10. market penetration (n):(tiếp cận thị trường mới) 40. distribution channel (n): kênh phân phối
11. market intelligence (n):trí tuệ thị trường/trí tuệ tiếp 41.
thị/tình báo tiếp thị
restraint move(chiến lược
(n): động thái kìm hãm đối phương
để thu thập thông tin thị trường)
12. marketing purpose (n): mục tiêu tiếp thị 42. to go out of business: phá sản
quảng cáo tìm kiếm
13. search advertising (n): (chiến lược để quảng 43. public perception (n): cái nhìn của XH về công ty
cáo, xuất hiện trong
14. aim market (n): top trang tìm kiếm) 44. STEEP analysis
quản lý quan hê
khách hàng 15. Customer Relationship Management (n): 45. breakdown (n): hư hỏng, thất bại, phá giá
16. e-procurement (n): mua hàng điện tử 46. customer product reviews (n): đánh giá của KH sau khi sử
dụng sản phẩm
17. e-retail shop (n): 47. select group (n): nhóm được chọn để thử sản phẩm hoặc để
shop bán lẻ trên mạng
đi nghiên cứu cái j
18. e-tailer (n): 48. graphic image (n): hình ảnh đồ hoạ
19. a high street store (n): cửa hàng ở khu hạng sang 49. usage habit (n): thói quen tiêu dùng
20. brick retailer (n): cửa hàng bán lẻ trực tiếp (có thật ngoài đời)
50. trading platform (n): sàn giao dịch
21. virtual retailer (n): cửa hàng bán lẻ trên mạng 51. to activate (v): kích hoạt
22. dot.com (n): cty chủ yếu hoạt động trên mạng 52. to tap into a huge market: thâm nhập 1 thị trường rộng lớn
mô hình kinh
động 53. dập tắt sự phẫn nộ
23. bricks and clicks operation (n): doanh/hoạt
vừa trực tiếp vừa
to put out public relations fire (n): của công chúng, cộng
đồng mạng
24. search engine (n): công cụ tìm kiếmtrực tuyến 54. to screen out (advertisement): sàng lọc quảng cáo
25. physical store (n): cửa hàng vật lý/trực tiếp 55. to stop customer defections: ngăn chặn việc khách hàng
quay lưng vs cty
26. product features (n): đặc điểm sản phẩm 56. to tap into (v): thâm nhập
mô hình kinh doanh trên mạng B2C
27. business-to-consumer e-commerce (n): 57. to sustain (v): duy trì
Chi phí khách hàng (số tiền bỏ
28. customer cost (n): ra để có 1 khách hàng mới) 58. to transmit (v): phát
thị trường ngách (thị trường mà
29. niche market (n):nhắm tới 1 đối tượng khách hàng 59. credibility (n): độ uy tín, độ tin cậy
nhất định)
30. mystery shoppers (n): 60. to generate revenue: tạo ra doanh thu
ng mua sắm bí ẩn (cty cử nhân viên giả lm khách
hàng để xem nhân viên làm việc thế nào)
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SECTION 1. THEME-BASED LANGUAGE KNOWLEDGE
1.2. KEY TERM DEFINITIONS
A – TYPES OF MARKETING AND ADVERTISING ACTIVITIES
Task 1: Identify types of Marketing and Advertising activities based on the given definitions
(1-8) and the initial letters.
1. A type of marketing which encourages people to buy a S __ __ __ __ __
product or service in a way that people are not aware of this MARKETING
marketing strategy
2. The process of advertising and selling products on the E __ __ __ __ __ __ __ __ __
Internet, on a company website, or by email
3. A company which only has online stores E __ __ __ __ __ __
4. A form of marketing where companies pay to increase the S __ __ __ __ __
visibility of their websites in search engine result pages ADVERTISING
5. A company which has both online and high-street stores B __ __ __ __ __ AND
C __ __ __ __ __ OPERATOR
6. A computer program which helps consumers find S __ __ __ __ __
information about a company on the internet E __ __ __ __ __
7. An advertising strategy which is used when a customer C __ __ __ __
buys one product, and that customer is recommended to buy P __ __ __ __ __ __ __ __
another product that may go with it
8. The process of gathering information about a market, MARKETING
analysing it, and interpreting it R__ __ __ __ __ __ __
9. A method of advertising which encourages web users to V __ __ __ __ MARKETING
pass on a marketing message to others, so that the message
spreads like a virus to many users
10. Printed or electronic information used to help encourage MARKETING
people to buy a product C __ __ __ __ __ __ __ __ __
11. A type of supplier exchange when firms receive order E__ __ __ __ __ __ __ __ __ __ __
from suppliers over the Internet, which is known as business-
to-business e-commerce
12. A form of direct marketing which uses information of D __ __ __ __ __ __ __
customers to generate personalised communication in order to MARKETING
promote a product or service for marketing purpose
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Task 2: Match the following terms (A-J) with their corresponding definitions (1-10).
A. Customer B. Niche C. Mystery D. Customer E. Customer

cost market shoppers satisfaction Relationship Marketing
F. Web G. Market H. Website I. Customer’s J. Market intelligence
optimization penetration marketing perception
1. The knowledge about the people or organizations who buy or will buy a product or service of
a company
2. A group of buyers with special needs, which may be profitable to sell to.
3. Customer’s opinion of a business or a product and how they feel about a brand including
every direct or indirect experience
4. The process that companies can best design their website by making it fast and easy to
navigate so that the website can become easy to find via search engines
5. One of the 4Cs of marketing which discusses how much the customer has to pay for the
product
6. A type of marketing strategy which a company promotes its business web page in order to
bring in more visitors
7. The feelings when the customers get what they hope for and their expectations are met
8. A business process in which client relationships, customer loyalty and brand value are built
through marketing strategies and activities
9. A marketing strategy for setting a low price to sell a large volume of products and increase
the market share
10. The people sent by companies to shops, who pretend to be real consumers to see how the
company’s products are displayed, how sales people behave, etc.
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1.3. VOCABULARY PRACTICE ON E-MARKETING AND ADVERTISING
Task 3: Choose the correct words with suitable verb forms to fill in the blanks.
A. communicate B. promote D. broadcast E. sustain

F. adapt G. integrate H. transmit I. comment
1. Many insurance firms have configured their e-commerce platforms to support online
searching, online claim processing, and online _______, as well as online sales for some
products.
2. The company plans to roll out an online advertising campaign _______ their range of health
foods.
3. The extraordinary expansion of social media has brought about radical shift in the way
companies _______ with their customers.
4. Producing video advertising offers higher response rates, so it will be more successful in
raising and _______ brand awareness.
5. Television advertising is the best way _______ the image of the brand to our target audience.
6. Some marketing theorists believe that the 4Ps model is able _______ to the changing face of
marketing in the digital world.
7. The Board of Directors are aware of the company’s challenge which is to _______ Internet
technologies into the company’s marketing processes.
8. By _______ discount alerts on Twitter, Dell has generated more than $1m in sales.
Task 4: Fill in the blanks with the correct word forms.

1. Web _______ allows companies to present visitors with unique experiences tailored to their
needs and desires. (Person)
2. For cost and efficiency reasons, personal selling is giving the way to telemarketing, call
centers, and _______. (Market)
3. E-commerce _______ are usually developed by large firms whose size enables them to achieve
greater cost savings and efficiency gains. (Apply)
4. ‘Convenience’ also includes key aspects of website design such as _______, layout, and ease of
purchase. (Navigate)
5. Texas Instruments was able to cut its customer waiting time, which improved customer _______
of poor service. (Perceive)
6. We see our brands as _______ of our new range of products – they represent our company in the
marketplace. (extent)
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7. From a customer’s point of view, brand gives us fast recognition but also an _______ of quality
and performance. (Sure)
8. It’s important to develop a deep understanding of consumer _______ for each intended foreign
market. (Behave)
9. Brand value is the _______ worth of your brand, if you have to sell it. (Money)
Task 5: Choose the correct option for each sentence.

1. There are many _______ of online marketing including better brand engagement, more cost
and time effectiveness, real-time results, etc.
A. gains B. achievements C. advantages D. efficiencies
2. Online retailers try to lure customers away from their _______-and-mortar competitors.
A. traditional B. rock C. physical D. brick
3. As opposed to _______, micro-finance is a distinctly low technology business.
A. e-tailer B. e-ballot C. e-commerce D. e-grocer
4. The Internet service provider has introduced flat-race prices in an attempt to _______
customer defections.
A. boost B. increase C. stop D. delete
5. A lot of people are not happy to receive emails about _______ as they just clutter up the inbox.
A. products B. promotions C. prices D. information
6. ______ has radically changed marketing because it means you can have a much closer
relationship with the customer.
A. Conventional marketing B. Traditional marketing C. E-marketing D. Word of mouth
7. The company’s plan involves choosing their target customers and designing a persuasive
_______ to get them to buy their products and services.
A. marketing channel B. marketing research C. marketing concept D. marketing mix
8. The marketing concept of _______ answers the question “How are you telling consumers in
your target group about your product?”
A. operations B. campaigns C. wholesalers D. promotions
9. The retailer generates _______ by selling their advertising space on their website.
A. services B. revenues C. transactions D. profiles
10. The clicks-and-bricks retailer has a(n) _______ store for consumer shopping and also
conducts Web-based retail operations through the Internet.
A. physical B. outlet C. virtual D. critical
11. The _______ retailer enables Internet users to participate in retailing activities previously
restricted to store – based retailers.
A. physical B. outlet C. virtual D. critical
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12. Retailing through the Internet requires more sophistication than setting up a website and
offering _______ for sale.
A. perception B. navigation C. merchandise D. consumption
13. Such advertisement makes a number of _______ for the products which have little basis in reality.
A. claims B. truths C. facts D. profits
14. A _______ has become an essential part of doing business with consumers on the Internet.
A. cyberstore B. website C. viral marketing D. mall
15. For several years, many _______ companies didn’t make any money from their online activities.
A. viral B. database C. cyber D. dotcom
16. The promotion variable can be further broken down into advertising, sales promotion,
personal selling, publicity, direct marketing and _______.
A. e-marketing B. pricing C. discount D. purchasing
17. _______ programs introduce products or companies to social networking services like
Twitter, Facebook, Google+, Youtube, and blogs.
A. Multi-channel B. Social media marketing C. Computerized D. Penetration
18. Most web advertising companies provide extensive data which give a _______ of all Internet
users who have clicked on their adverts.
A. breakdown B. breakout C. procurement D. penetration
19. Social networking sites provide marketers with an opportunity to _______ a huge market of
specific consumer groups.
A. run into B. get into C. take into D. tap into
20. The two main activities that make up _______ are mailings and telemarketing.
A. direct marketing B. one-to-one marketing C. personal selling D. select group
21. Both public and private exchanges are referred to as e-marketplaces, trading hubs, or _______.
A. trading forexes B. trading forums C. trading platforms D. trading houses
22. On the Internet, companies advertise themselves using _______ which appear on the web
pages and links which link one website to another.
A. pixels B. broadbands C. slogans D. banners
23. Using a(n) _______ will help a company reach new customers and get them onto their website.
A. online channel B. e-procurement C. image advertising D. mass advertising
24. It’s relatively cheap to produce an exciting well-constructed _______ campaign to target a
niche audience of web users.
A. viral mouth-to-mouth B. viral video C. viral broadband D. viral marketing
25. Social networking sites are often used by companies to communicate with their customers, to
solve problems or to defuse a brewing _______.
A. recession B. argument C. crisis D. profit
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26. Some companies have used social media such as Twitter to put out public relations _______
before they spread.
A. fires B. extinction C. distinction D. flood
27. Staff of a company should be familiar with social media, which enables them to be attuned to
the needs and _______ of their customers.
A. desires B. expectations C. wants D. requirements
28. Understanding the different motivations and usage _______. for a company’s products is
vital to getting its marketing right in the digital age.
A. passions B. interests C. desires D. habits
29. E-marketing is different from conventional marketing because it uses _______ to create
powerful messages to engage consumers, build brands and drive sales.
A. digital technologies B. social technologies C. broadband pages D. cartoon images
30. Companies can use pop-ups or banners which are _______ used on websites to advertise
products or services.
A. graphic science B. technology images C. graphic images D. photos
31. With over 1 billion websites in existence, it is getting harder for companies to break into the
_______ of the 20,000 most visited sites.
A. select group B. segmented group C. portfolio D. objective
32. On the Internet, advertisers can track consumers by following their trail of activities and _______.
A. schemes B. enhancements C. intermediaries D. purchases
33. In the last ten years, the Internet has helped companies to improve the quality and quantity of
the work they do in carrying out market _______ for their clients.
A. searching B. penetration C. research D. packages
34. Consumers visiting online stores expect to be able to log on easily and complete transactions
at the first _______.
A. meeting B. attempt C. perception D. discussion
35. Today’s more demanding shoppers are looking for higher quality and _______ products from
all e-tailers.
A. good range B. specific quantity C. highest value D. better value
36. The company website will offer their customers _______ that are informative to help them
make informed purchasing decisions.
A. market survey B. quality product C. product reviews D. result pages
37. _______ and pop-up advertisements are more traditional forms of Internet advertising.
A. Banner B. Banner C. Pixel D. Optimization
38. From a _______ point of view, the fact that things are branded allows us to recognize the
brands and the choices that we usually make.
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A. retailer’s B. manufacturer’s C. brand’s D. customer’s
39. Our latest marketing _______ aims to go beyond the basic features and emphasize the real
lifestyle benefits of the product.
A. strike B. campaign C. fight D. struggle
40. One of the biggest assets is the _______ a company has built up through marketing campaigns.
A. customer thought B. customer inspiration C. customer behavior D. customer base
SECTION 2. LANGUAGE USE IN A WIDER CONTEXT
1.4. PASSAGE COMPLETION
PASSAGE 1
Read the passage and choose the correct words to fill in the blanks.
Best Buy, the electronics retailer, has become the first leading US retailer to start sending
special (1)_______ and deals to its customers’ smartphones when they walk into one of its
stores. Best Buy store in San Francisco has deployed a location-based marketing (2)_______
developed by Shopkick.
Customers who (3)_______ the Shopkick application on their phones will automatically
receive “kickbucks” credits just for entering the store that can be traded for benefits including
gift cards, computer gaming credits or music downloads. Best Buy will also use the system to
send participants in its (4)_______ promotional offers that can be customized to reflect their
shopping (5)_______ and interests.
Richard Rommel of Best Buy said that “the convergence of location technology and
rewards to (6)_______.” shopping was at the heart of their business strategy. Price (7)_______
are then automatically deducted from the bill at the store’s checkouts. The Shopkick application
responds to an audio signal transmitted in the store. It is far more accurate than GPS-based
(8)_______ which can be off by a few hundred yards, and which raise potential privacy concerns
because they are automatically activated.
Recent years have seen the emergence of a number of location-based systems with
marketing (9)_______ for social networks. They allow (10)_______ to offer credits or local
promotions to phone users who actively “check in” to locations such as coffee shops Instore
mobile shopping applications are likely to become increasingly important to retailers as they
seek to close deals with shoppers equipped with smartphones that can search and compare prices
at rival stores and online.
I. (Dubicka & O’Keefle, 2011)
1. A. discounts B. offers C. promotions D. sales
2. A. blogging B. commercial C. tool D. system
3. A. activate B. open C. deploy D. apply
4. A. consumer group B. membership fee C. customer service D. loyalty scheme
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5. A. ambitions B. hobbies C. expectations D. likes
6. A. personalize B. characterize C. identify D. idealize
7. A. conductions B. expansions C. reductions D. increases
8. A. changes B. alternatives C. platforms D. options
9. A. applications B. reviews C. tactics D. hardwares
10. A. retailers B. suppliers C. creditors D. marketers
PASSAGE 2
Customer-centric marketing
Most retailers cling to product-focused and promotion-centric models. However, there is
increased consumer resistance to (1)_______ marketing, such as unsolicited email and
(2)_______ mail. In response, some retailers are beginning to pay more attention to the customer
(3)_______ and have adjusted their marketing practices so that they are delivering fewer, more
relevant messages that reflect the multichannel (4)______. They have with the customer, for
example, retail stores website, and catalogs, or;’ brick, click, and flip”. Switching to a customer-
centric marketing approach helps to increase customer (5)_______ and as a result, customers will
buy more from you over a longer period of time. Research by Bain and Harvard Business School
shows that the longer a customer stays with you, the greater the (6)_______ profit generated
from that customer. These increased profits come from a combination of increased purchases,
cost (7)_______ in marketing, and word-of-mouth (8)_______.
The majority of multichannel retailer do not design their marketing programs around
acquiring new customers that have the best potential to become (9) _______ customers and
rewarding existing high-value use loyal customers with special treatment in order to retain them.
Instead, they wrongly focus on market (10)_______ as the key measure of success.
I. (Dubicka & O’Keefle, 2011)
1. A. defensive B. intrusive C. protective D. alternative
2. A. sincere B. junk C. direct D. express
3. A. experience B. dissatisfaction C. expectation D. distraction
4. A. friendship B. cooperation C. partnership D. relationship
5. A. hobby B. demand C. loyalty D. service
6. A. annual B. average C. contemporary D. temporary
7. A. living B. saving C. overhead D. offering
8. A. referrals B. approvals C. defections D. disposals
9. A. temporary B. permanent C. long-term D. lengthy
10. A. part B. key C. share D. place
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PASSAGE 3
Fill in the blanks with appropriate words to complete the passage.
The Marketing Mix has been the golden rule used by marketing managers everywhere to
engage customer attention and (1)_______ this interest to sales. The four Ps of Product, Price,
Place and Promotion date back nearly 50 years. But this approach to marketing does have its
critics, who argue that the true success of sales is completely down to the customer, and what he
or she wants is an important decision factor. The Product, for example, is not just the (2)_______
product or service itself, but a whole host of associated warranties that one attaches to it. These
are society based and driven. Price is usually associated with cost (3)_______, and therefore
‘how low can you go’ is the dilemma. But cheapest is not necessarily best, as the price should
reflect the value for benefits it offers. Something that increases social status or sexual magnetism
can be considered by some worth more than the literal financial value placed on it.
The concept of Place in the Marketing Mix, often referred to as the distribution
(4)_______, usually represents the locations where the product can be purchased, physical or
virtual. However, place should refer also to timing, ensuring that the product is there in the right
place, supplying customers’ needs to their own personal schedule. With e-business this includes
visibility in search (5)_______, visibility in consumer keywords and knowledge of the search
behavior of your (6)_______ market. Promotion is essential and is typically associated with
advertising, but also includes PR, word of mouth and (7)_______ of sale. Others have suggested
that within the knowledge of the benefits of the product and brand awareness comes customer
(8)_______, which is invaluable as part of the business base.
A further concept which some people argue is missing is P for People. The people who
represent a product become that product. While average to good (9)_______ service is little
remarked upon, what image is left when you have to deal with very poor service? Many people
will say nothing if their sales (10)_______ was positive – this is what they expect – but how
many people will you tell if you have a negative encounter? Customer staff, in both appearance
and attitude, have the power to create an image of your company. How important is that?
Priceless.
(Dubicka & O’Keefle, 2011)
1. A. change B. convert C. alter D. broadcast
2. A. real B. authentic C. brewing D. tangible
3. A. competitiveness B. economy C. broadband D. entity
4. A. canal B. channel C. outlet D. relation
5. A. mechanisms B. devices C. engines D. pixels
6. A. intention B. openness C. target D. capital
7. A. place B. point C. end D. position
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8. A. reliability B. devotion C. care D. loyalty
9. A. client B. consumer C. customer D. shopper
10. A. knowledge B. understanding C. experience D. review
PASSAGE 4
The effectiveness of advertising

People still enjoy the ads that are creative and entertaining. But it raises an awkward
question: does it actually sell any more chocolates or cars? Although TV viewers tend to be able
to (1)_______ a particularly good commercial, many cannot remember the product it featured.
And for the most (2)_______, they try to avoid the rising barrage of ads. Getting their attention is
becoming increasingly difficult, because audiences are splintering as people use different kinds
of media, such as cable television and the Internet. The choice of products and services available
is multiplying, but at the same time, consumers have become more skeptical about (3)_______
made for products. In today’s marketplace, consumers have the power (4)_______ and choose as
never before.
This new consumer power is changing the way the world shops. The ability to get
information about whatever you want, whenever you want, has given shoppers (5)_______
strength. In markets with highly transparent prices, they are kings. The (6)_______ for business
are enormous. For instance, the huge increase in choice makes certain brands more (7)_______,
not less. And as old business divisions crumble, a strong brand in one sector can provide the
(8)_______ to enter another. Hence Apple has used its iPod to take away business for portable
music players from Sony; Starbucks is (9)_______ to become a big noise in the music business
by installing CD-burners in its cafes; and Dell is moving from computers into consumer
electronics. “I am constantly amazed at the (10)_______ level and sophistication of the average
consumer,” says Mike George, Dell’s chief marketing officer. If Dell changes prices on its
website, its customers’ buying patterns change literally within a minute.
(Allison & Emmerson, 2013)
1. A. remind B. memorize C. recall D. bypass
2. A. part B. time C. way D. place
3. A. messages B. suggestions C. proposals D. claims
4. A. catch B. pick C. hold D. take
5. A. just B. unique C. unprecedented D. inbound
6. A. meanings B. suggestions C. reviews D. implications
7. A. valuable B. worthwhile C. worthy D. essential
8. A. trust B. credibility C. belief D. penetration
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9. A. targeting B. designing C. aiming D. directing
10. A. belief B. confidence C. assurance D. esteem
1.5. READING COMPREHENSION
PASSAGE 1
Read the passage and do the tasks below.
As almost everyone knows, advertising is in the doldrums. It isn't just the recession.
Advertising started to plummet early in 1989, well before the recession really began to bite.
Advertising's problems are more fundamental, and the decline is worldwide. The unhappy truth
is that advertising has failed to keep up with the pace of economic change. Advertisers like to
think in terms of mass markets and mass media; but as brands and media have proliferated, target
markets have fragmented. Even campaigns for major brands ought to be targeted at minority
audiences, but they rarely are. That is the principal way in which advertising has gone astray.
Let's ignore the 23,000 which spend less than 50,000 a year, and concentrate on the 9,500 brands
that Media Register individually lists and analyses. Mr. and Mrs. Average have bought 400 of
that 9,500, and not all because of their advertising. That's about 4 per cent.
So, you can forget that naive claim usually attributed to Lord Leverhulme: 'Half of my
advertising is wasted but I've no way of knowing which half'. You could say that 96 percent.
When you're watching TV tonight, count how many of the commercials are for brands you buy
or are likely to buy in the future. Advertising has to communicate with large numbers of people
to reach the relevant minority, because the advertiser cannot know, in advance, exactly which
individuals will respond to his blandishments. Media advertising works, despite its much-
publicized expense, because it is a cheap means of mass communication. Nonetheless, all waste
is gruesome. With smart targeting the advertiser can minimize the wastage by increasing the
percentage of readers or viewers who will respond; but he can never know precisely who will
respond. Even the most accurate and finely tuned direct mail-shot never achieves a 100 per cent
response. This is one of the fundamental differences between the use of media and face-to-face
selling. The most cost-effective way to reach them may be the use of mass media, but if
advertising is to get going again its message will need to be more tightly targeted than ever
before.
(Cambridge Certificate in Advanced English 3, 2009)
Choose the correct answer for each question.
1. How can advertisers cut down on waste?
A. By using more face-to-face, direct selling techniques
B. By advertising through the mail rather than on TV
C. By aiming their advertising at particular groups of consumers
D. By using mass media advertising for certain types of products only
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2. Advertising seems to be effective for _______.
A. about half of all products B. many well-known brands
C. very few products D. the most heavily advertised products
3. Advertising through TV and other media is considered worthwhile because_______.
A. a huge number of people see the adverts
B. consumers are influenced far more than they realise
C. it is easy to target a specialized audience
D. people respond immediately to TV advertising
4. One of the advertising industry's problems is that _______.
A. manufacturers are not spending enough on their campaigns
B. there are too many good quality products on the market
C. nowadays consumers have less money to spend
D. marketing is not sufficiently well-directed
5. In order to be successful, advertisers need to _______.
A. research carefully who is most likely to buy the product
B. achieve only a small percentage increase in sales
C. consider which type of advertising will be most effective
D. target the widest possible audience among the adult population
PASSAGE 2
Not long ago, innovation was The Big Idea in marketing circles. Now, however, it's hard
to see the benefits of this rush to innovate. Indeed, if anything, companies seem to be drawing
back from innovation, not charging ahead. But just a few years ago many companies were
combining a commitment to create entirely new product categories through innovative
technologies - working to hugely ambitious growth targets - with a root-and-branch
organizational overhaul designed to free up creativity and speed new product roll-outs.
The result was that as resources were shifted away from core businesses, sales and profits
faltered, share prices slumped and CEOS were ousted. Now the mantra is a more conservative
focus on the top brands, the top retail customers and the top markets. It's being rewarded in many
cases by healthier share prices. This sustained effort to cut long tails of smaller brands and focus
marketing resource on existing leaders seems to be paying off.
So, were we wrong to pinpoint key innovation as key to long-term market success?
Surely not. But we might have underestimated the enormous complexity of this beast. The term
‘innovation’ may be simple enough but it spans a vast landscape, including the type and degree
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of innovation, marketing purpose, management process and market circumstance - not all of
which are well understood.
Take ‘type’ of innovation. Are we talking about new products only? Or new processes,
new channels, underlying technologies, organizational structures and business models? When
should the innovation involve a new brand? Or take 'degree'. Are we aiming for blue-sky
inventions that will transform markets and create new categories? Or marginal tweaks in, say,
formulation or packaging that give us an excuse to advertise something ‘New! Improved!’?
Likewise, is the marketing purpose of the project to steal a march on competitors and drive
incremental growth, or to update an obsolete product line and play catch-up to competitors? As
one business news editorial complained, innovation’ is often just ‘simple proliferation of similar
products'. Then there's process. What is the best way to manage this particular innovation? Is it
to employ creative revolutionaries and set them free, or is disciplined risk management, requiring
the careful testing and sifting of options to pick winners, a better approach? In larger
organizations, has senior management really made time spent in cross-functional teams a
recognized element of successful career paths? What time frames (e.g., payback periods) and
degrees of risk is senior management comfortable with? And does the organization have a
culture that fits the chosen approach? Does it ‘celebrate failure’, for example, or is it actually a
risk-averse blame culture (despite what the CEO says in the annual report)?
Successful innovation requires clearing two hurdles. First, it needs the right project with the
right degree of innovation to fit with the right marketing purpose, the right innovation process,
corporate culture and market circumstance. Second, it needs senior managers that understand the
interplay between these different factors, so that rather than coming together simply by chance,
they are deliberately brought together in different ways to meet different circumstances.
(Gore, 2010)
1. According to the first paragraph, a few years ago companies _______.
A. trusted in technology to improve existing products
B. chose to focus heavily on marketing activities
C. expected that growth would increase steadily
D. believed they needed to produce new goods
2. What problem is indicated in the second paragraph?
A. Insufficient attention to brand identity damages company profits.
B. A lack of product diversity reduces a company's appeal.
C. Business leaders are not attracted to slow-performing companies.
D. Slow reactions to business trends reduce investors' interest.
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3. According to the third paragraph, it would be a mistake to _______.
A. rely on future benefits in business planning
B. deny the benefits of pursuing innovation
C. neglect the importance of strategic issues
D. predict the outcomes of innovations
4. According to the fourth paragraph, companies should ensure that _______.
A. their approach to risk management is fully new
B. the progress of an innovation is as speedy as possible
C. their new products are radically different from competitors’
D. the benefits of participating in teamwork are fully acknowledged
5. Which statement could be best summarized the fifth paragraph?
A. The steps involved in innovation must be tackled in sequence.
B. Market forces should be a company's primary consideration.
C. The types of innovation sought must be appropriate to a company.
D. Elements of chance should be assumed in decision-making.
PASSAGE 3
How will advertiser reach us?
The commercials on screen are far better than they are now. Directors make sure they are
moving, exciting, entertaining and technicians make sure the effects are breathtaking. It's not the
commercials on screen that are the most interesting part, though: the really crucial advertising is
hiding in plain sight on the field. Brand names blaze from each player's shirt. Corporations will
pay big money for the right to digitize logos onto the T-shirts of the fans in the stands. Logos of
sponsors won't be painted on stadium signs or on the field any more. Thanks to technology that
is already emerging, logos of sponsors will be digitally embedded in the image on your screen.
Advertising will change profoundly over the next couple of decades, although there's a good
chance you won't notice the difference, since the most meaningful changes won't be visible to the
casual observer. Advertising in the future will be stealthily and eerily targeted, disturbingly
omnipresent and inescapable. User-tracking software that records your TV and
Internet viewing habits in minute detail- and crosses it with your purchasing history. In
fact, this technology already exists. Refined with data that track what kinds of online ads you
tend to click on - funny, sentimental, fact-laden -every commercial will hit. In the future, people
won't be bothered with advertising messages irrelevant to them. They'll tend to like advertising
better because it's so carefully tailored to their tastes and will begin to feel less like an intrusion.
This works for the advertiser too because fewer dollars will be wasted. While it's a little
dispiriting to think we can be so predictably manipulated, maybe that's a fair price to pay to
avoid the pollution of messages you don't care about. Nevertheless, it seems clear that the
16
advertising outlets that exist today -TV and radio commercials, prints ads, billboards and taxi
tops -will be inadequate for accommodating all the commercial messages that are agitating to get
out. You can glimpse the future now. Product placement in movies is an obvious instance of
where advertising has slipped outside its traditional container into entertainment. The music
channels which are an entertainment medium designed expressly to sell records are another
classic example. Every time an artist mentions a brand in their lyrics, advertising slips into art.
Eventually, every surface that can display a message will be appropriated for advertising. A
backlash is inevitable. Perhaps people will pay a premium to live in advertising-free zones.
People get very nervous when they see the line blurring between advertising and other
forms of content; think advertising is some kind of infection that pollutes the purity of art, ruins
objectivity and distracts from the pleasure of entertainment. Yet this is missing the point. Surely
consumers are smart and perfectly aware when they're being sold something; surely people who
go to company websites are happy to find worthwhile information there and are capable of
distinguishing between a commercial message and an editorial one? The genuinely disturbing
aspect of the ubiquity of advertising is that it has begun to supplant what was formally civic.
Even the parks are gradually being renamed after corporations. A little town in the Pacific
Northwest just renamed itself after a dotcom company in return for a generous donation. I won't
mention the name here, since I figure advertising should be paid for. That's when advertising has
gone too far: when it's become something we are, rather than something we see.
(CAE Testbuilder, 2009)
1. The writer suggests that over the next couple of decades, viewers will probably _______.
A. be unaware of the effect that advertising has on them
B. fail to realize how advertisers are promoting products
C. resent the lack of privacy they have in their own homes
D. feel pressurized to consume more disposable products
2. What does the writer feel about the consumer being 'predictably manipulated'?
A. He condemns it as a form of deception.
B. He believes people will be indignant at the removal of choice.
C. He suggests that this is a cost-effective approach for the consumer.
D. He states that consumers will appreciate the precision of this approach.
3. What does the writer state about the future of advertising outlets?
A Current outlet will no longer be used for promotional purposes.
B. Advertisements will take on a globally similar style and approach.
C. Advertising will overtake the importance of artistic value in music channels.
D. The high level of outlets will result in some people turning against advertising.
17
4. According to the third paragraph, the writer warns that _______.
A. artists have always depended on the financial support of people aiming to make a profit
B. some consumers are not able to discriminate between truth and subjectivity
C. it is not always clear what some commercials are advertising
D. people should be more wary about the invasion of advertising into art
5. In writing this article, the writer's aim is to _______.
A. highlight which consumers will be most vulnerable
B. dispel unnecessary fear about the impact of advertising
C. warn people against becoming part of an advertising culture
D. attack certain companies for being unethical.
PASSAGE 4
How can a company produce good salespeople? Surely if the product is what people
want, it will sell itself? In fact, though, there is a multi-million-dollar industry out there, and
everyone is in competition, all chasing the same targets. Suddenly it is not so easy after all. For
the long-term growth and profitability of a company, building a high-performing team of
salespeople is crucial.
What does the recruitment officer have to consider when interviewing a potential
salesperson? He might ask, for example, how much energy the individual has, and how efficient
they can be. Crucially, how will they deal with rejection that is part and parcel of a salesperson’s
life? Will they persist or will they turn tail and quit? How motivated are they by the hunt for new
customers, and how much attention will they give to the maintenance of the current ones? Are
they likely to share information, or hoard secrets? What is their attitude to risk-taking? And just
how much sheer effort will they put in to be successful?
But it is not just the responsibility of finding the right person. That is an essential, and
cost incurring process in itself, but having found that winning personality, it is crucial that they
stay with the company. If, after the company has recruited, trained and groomed the right person,
they then leave to work for the competition, how much wasted profit does that represent for the
company, which then has to embark on the whole costly process again?
It is therefore important to identify factors that help drive a successful salesperson. The
first and perhaps most obvious is money. Sales effectiveness is measured by money. If you sell,
you get paid. Often, if you don’t sell there is no financial reward at all, as many such jobs are
performance-based. This establishes the competitive nature of the job. However, the competition
is an internal one, where the person is actually in competition with themselves. This is where
targets are essential, as the successful salesperson is constantly trying to improve their previous
records. It is a powerful desire to excel which motivates them to succeed. A successful
18
demonstration of this acts as a positive influence on their morale, and ultimately the sense of
fulfilment they get from the job.
(Cotton, Falvey, & Kent, 2022)
1. The writer suggests that over the next couple of decades, viewers will probably _______.
A. be unaware of the effect that advertising has on them
B. fail to realize how advertisers are promoting products
C. resent the lack of privacy they have in their own homes
D. feel pressurized to consume more disposable products
2. What does the writer feel about the consumer being 'predictably manipulated'?
A. He condemns it as a form of deception.
B. He believes people will be indignant at the removal of choice.
C. He suggests that this is a cost-effective approach for the consumer.
D. He states that consumers will appreciate the precision of this approach.
3. What does the writer state about the future of advertising outlets?
A Current outlet will no longer be used for promotional purposes.
B. Advertisements will take on a globally similar style and approach.
C. Advertising will overtake the importance of artistic value in music channels.
D. The high level of outlets will result in some people turning against advertising.
4. According to the third paragraph, the writer warns that _______.
A. artists have always depended on the financial support of people aiming to make a profit
B. some consumers are not able to discriminate between truth and subjectivity
C. it is not always clear what some commercials are advertising
D. people should be more wary about the invasion of advertising into art
5. In writing this article, the writer's aim is to _______.
A. highlight which consumers will be most vulnerable
B. dispel unnecessary fear about the impact of advertising
C. warn people against becoming part of an advertising culture
D. attack certain companies for being unethical.
19
CHAPTER 2: BRANDING
1. branding (n): xây dựng thương hiệu 30. unbranded product (n):
2. brand attitude (n): thái độ KH vs thương hiệu 31. an appeal (n):
3. brand awareness (n): nhận thức KH vs thương hiệu32. customer loyalty (n):
4. brand consideration (n): sự cân nhắc chọn lựa thương
33. distribution
hiệu channel (n):
5. brand equity (n): tài sản thương hiệu 34. emotional benefit (n):
6. brand essence (n): bản chất, tinh tuý của thương hiệu
35.(cáigross
cốt lõirevenue (n):nhìn, định hướng...)
của TH: tầm
7. brand experience (n): kinh nghiệm/trải nghiệm của KH

36.vềproduct
TH displays (n):
8. brand extension (n): mở rộng thương hiệu 37. specification (n);
9. brand identity (n):hệ thống/bộ nhận diện TH (logo, 38. strategic marketplace (n):
âm nhạc, trang phục khẩu hiệu...)
10. brand image (n): hình ảnh thương hiệu 39. turnover (n):
11. brand leader (n): 40. emerging market (n):
12. brand leverage (n): 41. foreign entities (n):
13. brand loyalty (n): 42. heritage (n):
14. brand management (n): 43. optimal (adj):
15. brand platform (n): 44. persistent (adj)
16. brand preference (n): 45. purchasing intentions (n):
17. brand promise (n): 46. to boost sales (v):
18. brand positioning (n): 47. to convey (v):
19. brand repositioning (n): 48. to damage reputation ≠ enhance the
20. brand strategy (n): reputation:
21. corporate branding (n): 49. to differentiate (v):
22. flagship brand (n): 50. to dilute (v):
23. generic brand (n): 51. to dwindle (v):
24. iconic brand (n): 52. to establish emotional ties with:
25. licensed brand (adj): 53. to go out of business (v):
26. manufacturer’s brand (n): 54. to release a brand (v):
27. premium brand (n): 55. to take ownership of (v):
28. private label brand = own-label brand 56. to yield (comfort/pleasure):
29. lifestyle product (n):
20
Task 1: Match the terms (A-J) with their corresponding definitions (1-10).
A. Brand B. Brand extension C. Brand loyalty D. Own brand E. Branding

positioning
F. Brand G. Brand essence H. Brand image I. Flagship brand J. Brand promise
repositioning
1. The activity of connecting a product with a particular name, symbol, or with particular
features or ideas, in order to make people recognise and want to buy it
2. How consumers see a brand, i.e., the values associated with such brand
3. The legal protection for the brand, its logo, and its brand name
4. A change in the brand’s status to keep up with consumer’s wants and needs
5. A statement made by a company to its customers stating that the company guarantees the
quality and the use of their brand
6. A private label brand that is made exclusively for the retailer that sells it
7. When a company uses an existing brand name for new types of products
8. A brand for which a business is best known and which represents its image most
appropriately
9. The extent to how consistent customers are in buying a company’s brand, how long they
have been buying, and how long they may buy
10. When a company emphasizes its characteristics and benefits in relation to other
21
Task 2: Match the terms of Branding (1-10) in column A with the corresponding definitions
(A-I) in column B.
A B
1. Brand equity A. The best-selling brand in a product category
2. Brand recognition B. A document including brand vision, brand mission, brand
3. Brand leader values, brand personality and brand tone of voice
4. Brand identity C. The value of a brand to its owner which is presumed to be a
5. Corporate branding leading indicator of a business’s future
6. Brand experience D. When consumers automatically associate a product name
7. Brand management with a certain slogan or attribute
8. Brand strategy E. The sum of the words, images and ideas that a consumer
9. Brand leverage associates with a brand
10. Brand awareness F. All the products are attached with the company’s name
11. Brand differentiation G. A long-term plan for the development of a successful brand
12. Brand platform in order to achieve specific goals
13. Manufacturer’s brand H. The exposure and interaction that a consumer has with a
14. Licensed brand brand.
15. Premium brand I. The application of marketing techniques to a brand to
increase the perceived value of a product line
J. When a company uses the power of a brand name or part of
a brand identity (color, similar name, typeface, etc.) to build
or launch another brand
K. A high-quality brand which is usually more expensive than
its competitors
L. The process of pointing out advantages of a product by
highlighting how it is different.
M. The extent to how much customers know the brand
N. A brand that is leased to a manufacturer, who then makes
the product under that name
O. The brand that is used by the company that developed and
produced the product
22
2.2. VOCABULARY PRACTICE ON BRANDING
A. distinguish B. dilute D. exist E. manage

G. boost H. commit I. damage J. launch
1. In the late 90s, Nike faced criticism about poor working conditions in its supplier factories in
Asia which severely _______ its brand.
2. Google has _______ to brand itself as the search engine of choice for the Internet.
3. The best way to develop and sustain brand commitment among consumers is to _______
your brand from others through quality and reliability.
4. We managed to _______ the product on the market within six months of identifying
consumer demand.
5. Many companies may _______ or even completely destroy a brand by overusing its logo on
unsuitable products.
6. A company should be _______ to build its brand and image among its clients.
7. The successful branding and marketing of the new product has already _______ sales and
increased profits.
8. A brand extension which is developed in response to real consumer demand can strengthen
the _______ brand.
Task 4: Fill in the blanks with the correct word forms.

1. _______ is the process of pointing out advantages of a product by highlighting how it is
different. (Different)
2. Consumers usually expect to pay less for products that are _______. (Brand)
3. For many companies, the relationship between brand awareness and sales is so acute that they
follow consumers' purchasing _______ and brand loyalty levels via surveys. (Intend)
4. It is not always easy to set yourself apart from a(n) _______ brand. (Compete)
5. Although they buy the supermarket’s own brand of coffee, their brand _______ is always
Starbucks. (Prefer)
Task 4: Choose the correct answer for each sentence.
1. _______ describes the exposure and interaction that a consumer has with the brand.
A. Brand experience B. Brand memory C. Brand knowledge D. Brand identity
2. _______ is the application of marketing techniques to a brand to increase the perceived value
of a product line.
A. Brand extension B. Brand management C. Brand enhancement D. Brand dilution
3. _______. occurs when consumers consider buying your brand.
23
A. Brand corporation B. Brand consideration C. Brand extension D. Brand behavior
4. _______ refers to a high-quality brand which is usually more expensive than its competitors.
A. Diluted brand B. Flagship brand C. Economy brand D. Premium brand
5. _______ is one that is leased to a manufacturer, who then makes the product under that
name.
A. Targeted brand B. Diluted brand C. Licensed brand D. Own brand
6. The brand that is used by the company that developed and produced the product is called
_______.
A. licensed brand B. manufacturer’s brand C. own-label brand D. local brand
7. _______ is something which is very famous or popular and represents particular opinions,
cultures or a particular time.
A. An item B. A label C. An icon D. A heritage
8. _______ refers to a measurement of the number of people who know the brand.
A. Brand awareness B. Brand license C. Brand value D. Brand leader
9. The brand’s _______ can be attributed to the traditional values and luxury lifestyle that it
presents.
A. dividend B. contribution C. strength D. division
10. The company decided that the objective was to develop positive attitudes and build brand
_______ among the consumers in order to induce them to purchase.
A. awareness B. extension C. promise D. consumption
11. One of the biggest challenges that pharmaceutical brands face is the competition from
_______ products.
A. dishonest B. unreal C. generic D. fake
12. Brands are a mark of quality, and it is the brand name that distinguishes a product from other
similar products and give it a brand _______.
A. position B. authenticity C. identity D. recognition
13. _______ brands have the ability to cross both geographical and cultural boundaries, building
international reputations of quality.
A. Worldwide B. Global C. Internationalized D. Local
14. We can consider a brand as the idea or _______ people have in mind when thinking about
specific products, services and activities of a company.
A. suggestion B. solution C. reference D. image
15. Fun, style, and simplicity are some of Apple’s brand _______.
A. behaviors B. attitudes C. activities D. reactions
16. Such _______ brands as Levi and Harley-Davidson have a timeless and mythical status.
A. own-label B. private C. enhanced D. iconic
24
17. The study of consumer behaviors is a social science discipline that attempts to model and
understand the behavior of humans in the _______.
A. platform B. marketplace C. equity D. markethouse
18. Although our handling of complaints has improved greatly, it continues to be a significant
problem in terms of public _______.
A. decision B. vision C. view D. perception
19. If all consumers were to have a sudden lapse of memory and forget everything related to a
company, the company would go _______.
A. into business B. under business C. out of business D. on business
20. It is estimated that about 85% of all sporting goods are sold under a(n) _______ brand.
A. company’s B. business’s C. own D. manufacturer’s
21. If you consistently meet or exceed customer expectations, you will develop strong _______.
A. brand awareness B. consumer perception C. customer loyalty D. brand extension
22. Our local supermarkets have made a lot of profit on their _______ products.
A. trademark B. own-label brand C. generic brand D. logo
23. From a _______ point of view, obviously the branding process increases profitability quite
substantially.
A. consumer’s B. firm’s C. customer’s D. brand’s
24. Although products are manufactured, brands are sold and constitute important elements that
guide _______.
A. customer profile B. customer point of view C. consumer behavior D. retailer behavior
25. Brands are at the center of being perceived by the customer as better or more relevant and are
a company's most strategic _______.
A. earnings B. benefits C. savings D. assets
26. Consumers are often prepared to pay a high price for a(n) _______ brand which they believe
represents high quality.
A. premium B. economical C. contemporary D. generic
27. Brands allow companies to influence the _______ for a product by manipulating factors
other than price.
A. preference B. consideration C. demand D. wanting
28. When referring to a brand, _______ would be seen as a part of its identity defined by its track
record, longevity, and core values.
A. icon B. heritage C. differentiation D. image
29. If you want to make sure that your brand is seen as being different from your competitor’s
brand, you need to make sure that the positioning strategy you are using is the _______ one for
you.
25
A. own B. promising C. only D. optimal
30. There are consumers who buy _______ products in order to make a statement about who
they are.
A. long-life B. long-term C. lifestyle D. fast-growing
31. The report claims that more than 20 percent of typical “British” brands are owned by foreign
_______.
A. concepts B. entries C. entities D. loyalty
PASSAGE 1
Building a luxury brand is a journey
Indeed, building a luxury brand today amidst other (1)_______ brands in the current
market landscape may seem daunting. However, with a clear plan to identify a niche customer
(2)_______ and emphasize the brand’s symbolic value, there is huge potential for brand
managers in Asia to differentiate and position new, (3)_______ luxury brands in the market.
Some recent examples are Shang Xia, a Chinese luxury fashion brand offering high-quality
products with a contemporary (4)_______ on traditional Chinese aesthetics and crafts. In
addition, another challenge that luxury brand managers need to deeply consider is how to make
digital and technology a key business enabler. The purchase (5)_______ of luxury consumers go
much more beyond just financial extravagance; but instead allows them to pursue a passion or
associate themselves with the brand’s (6)_______ and aspiration. In such a digitalized and
commoditized world, brands need to be able to express the same (7)_______ that can resonate
with luxury consumers. Digital disruption and emotional engagement, although seemingly
opposite, can actually be combined to enable companies to reap the most out of their luxury
branding (8)_______.
Aspirational CEOs and brand managers seeking to create luxury brands should make the
above elements (9)_______ to their corporate strategies. With digital disruption being the
(10)_______ in the industry, it will be exciting to see what new luxury brands will be discovered
in the coming 5 years and how they will find new ways to engage consumers.
(Dubicka & O’Keefle, 2011)
1. A. own B. longstanding C. image D. manufacturer’s
2. A. segment B. target C. aim D. provision
3. A. identity B. cartoon C. iconic D. unbranded
4. A. turn B. note C. dance D. twist
5. A. expectation B. decision C. dissatisfaction D. demand
6. A. image B. loyalty C. appeal D. passion
7. A. reaction B. emotion C. sense D. affection
26
8. A. forces B. attempts C. intentions D. efforts
9. A. core B. basic C. root D. clear
10. A. measure B. mean C. norm D. rule
PASSAGE 2
Branding often seems something in which large companies invest huge amounts of time
and money but which is (1) _______to small companies who have to focus on the day-to-day
task of keeping the revenue coming in. Even if a small company accepts the (2)_______ of
branding, it is still often something which is not given a high priority. The truth is, however, that
branding is not just something which carried out through high profile (3)_______ Rather, it is
about the customer (4)_______ and overall image of the company. In this sense, it is not possible
for a company not to have a brand.
Indeed, it could be argued that branding is easier for small companies. Big names have to
invest heavily in (5)______ in order to create and maintain their relationship with customers.
Smaller brands that are physically closer to them can do this via personal (6)_______. Of course,
a customer who approaches the local brand of a large company will have dealings with the staff
there, but how (7)_______ of the brand will they be? Finding ways to push the brand experience
down to local branches is a continual headache. Just how difficult this is to achieve can be seen
by the array of checks that large companies have to carry out. (8)_______ shoppers, customer
feedback forms, and continual staff training, are all strategies to keep the brand on track from a
distance.
Branding for small companies can take place through inexpensive means, most obviously
by creating a company (9)_______ and using it on all business cards and written
communications. Likewise, these should be a user-friendly website displaying it. Consistent use
of such visuals as these gives an impression of consistency of service. They are not just frills but
convey the message that the customers are (10)_______ with a professional company. On top of
this, there are more intangible aspects of branding such as how phones are answered or how
customers are greeted. All of these reinforce the desired image of the company and influence its
reputation. Indeed, these day-to-day dealings with customers are especially important because
brands are more affected by what customers say than by top-down management.
(Cambridge English. Business Benchmark Progress Tests, 2016)
1. A. irrelevant B. appropriate C. suitable D. generic
2. A. notice B. agreement C. point D. notion
3. A. portfolio B. advertising C. campaign D. discount
4. A. desire B. conception C. experience D. turnover
27
5. A. articles B. media C. plans D. displays
6. A. idea B. characteristic C. contact D. asset
7. A. representative B. symbolic C. versatile D. affordable
8. A. Intangible B. Mystery C. Database D. Diverse
9. A. face B. building C. challenge D. logo
10. A. dealing B. enhancing C. brewing D. acting
PASSAGE 3
Companies spend large amounts of money researching (1)_______ markets and

developing their brand image but once the product has entered the marketplace, the (2)_______
can happen. The company’s advertising may target one type of user, but this might not
(3)_______ the people actually seen with the brand. A recent example of this occurred with
Burberry, the clothing label. It was marketed as a luxury brand but became (4)_______ with
working class Britons. ‘
Clashes of this kind are not easy to (5)_______ Occasionally the company may try to
welcome the unexpected customers by changing the brand’s image. However, this can have far
reaching (6)_______ on everything the company sells. Most companies are not willing to risk
their whole product range like this. Another strategy is to raise the price in order to (7)_______
unwanted users. Or they may even decide to discontinue product lines where there is this clash.
This last solution was (8)_______ by Burberry when they stopped selling their baseball caps.
Globalization is likely to both help and exacerbate the problem. On the one hand, a local
clash might not matter much if you are selling in many different markets. But at the same time,
(9)_______ like these are likely to become more common when a product is marketed across
different societies.
It is probably best for companies to anticipate the problems before it occurs. One way to
do this is to (10)_______ the brand so that different groups are targeted. Armani, for example,
offers both premium and more commercial products under the same brand name. In addition, a
brand needs to manage its retail outlets carefully and check that the point of sale is in harmony
with the product image. Any stockist who does not fit this should probably be dropped.
(Cambridge English. Business Benchmark Progress Tests, 2016)
1. A. purpose B. target C. mark D. destination
2. A. unknown B. underestimated C. unexpected D. undesired
3. A. match B. suit C. connect D. link
4. A. combined B. separated C. diluted D. associated
5. A. deal B. work C. manage D. achieve
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6. A. effects B. affairs C. commitments D. displays
7. A. reject B. discourage C. protect D. refuse
8. A. adapted B. ensured C. assured D. adopted
9. A. relations B. revenues C. mismatches D. connections
10. A. split B. break C. disconnect D. divide
PASSAGE 4
Fashion brands today

With a (1_______ client base and copies rapidly available from clothes chains with quick
production (2)_______, it has become almost impossible to make money out of (3)_______
custom-made garments. The Givenchy and Yves Saint Laurent brands are all making losses, as
are Versace and Valentino. Only Chanel is thought to make money. After (4)______ to make a
profit for years, Ungaro is on the market. On January 25th, Moet Hennessy Louis Vuitton
(LVMH), a luxury-goods firm, sold Christian Lacroix, another (5)_______ brand, to American
duty-free retailers for a "symbolic" price. Prada has parted company with Helmut Lang after
(6)_______ losses. Ten years ago, more than 20 houses held Paris shows. Today only a handful
can afford to carry on.
Europe's rag trade has been in (7)_______ now for more than five years. Luxury-goods
groups (8)_______ on glamorous name keep high fashion alive. Valentino, for example, is
owned by Marzotto, Italy's biggest clothing and textile group; Yves Saint Laurent belongs to
Pinault-Printemps-Redoute, a French rival to LVMH.
Further down the fashion chain things are equally dire. (9)_______ producers cannot
afford sustained losses. Medium-sized and small companies in France, Italy and Spain are
cutting production or moving it abroad. Some have merged or tried to cut costs by lowering the
quality of their products. Dozens have already gone under. Many more are streamlining
operations and fighting for survival.
The main cause of the mass market’s troubles is competition from overseas. Producers
cannot match the low (10)_______ costs. The effect can be devastating, says Didier Grumbach at
the Federation Francaise de la Couture, France’s main fashion association. And it can only get
worse.
(Gore, 2010)
1. A. dwindling B. growing C. increasing D. downturning
2. A. interactions B. strategies C. cycles D. treatments
3. A. unlimited B. open C. inferior D. exclusive
4. A. dropping B. failing C. falling D. losing
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5. A. loss-consuming B. loss-making C. loss-effective D. loss-saving
6. A. unsteady B. temporary C. instant D. persistent
7. A. trouble B. progress C. production D. competition
8. A. dependent B. belonging C. reliant D. relative
9. A. Huge-market B. Large-market C. Mass-market D. Minimize-market
10. A. labour B. overheads C. operating D. administrative
PASSAGE 1
A manufacturer of sports shoes starts selling consumer electronics. A soft drink lends its
name to a range of urban clothing. What’s going on? In simpler times, you knew where you were
with brands. One brand name meant good- quality sports shoes, another a soft drink. No
confusion. Today, however, big companies try to redefine brands as not so much a product, more
a way of life, and stretch them into new areas. In the early years of the consumer society, a brand
name on a box simply identified what was inside. People were looking for products that would
improve their quality of life, and chose brands most likely to achieve that purpose. But as people
in industrialised nations became more affluent and fulfilled their basic needs, brands acquired
other attributes. The functionality of the product was still important, but people also started using
brands to say something about themselves, for example, choosing a brand of cosmetics which
would suggest that they were sophisticated jetsetters.
Now, we have entered a third age of branding, in which so many companies are making
roughly the same product at roughly the same price that functionality rarely succeeds as a point
of differentiation. Instead, companies are trying to make their brands stand out by emphasizing
their emotional aspects, hoping consumers will identify with the set of values the brand
represents.
One disadvantage of a product-based brand is that if the product goes out of fashion, the
brand goes with it. This is a serious concern for manufacturers of breakfast cereals, who are
struggling to counter weak demand for the products that bear their names. So far, their marketing
efforts seem to be having little effect. The advantage for emotional brands is that companies can
transfer their brand strength into other areas, increasing revenues and reducing their exposure to
the lifespan of a single product.
The elasticity of brands seems to be related to their position on a spectrum ranging from
those rooted in solid, tangible assets to those with highly intangible, emotional qualities. At the
one end, you have train companies that tend to associate themselves with infrastructure and their
ability to get you from A to B, and at the other end would be a leisure brand that positions itself
30
on dreams and making people have fun. It is the latter which has the maximum potential for
stretch.
But even emotional brands have a limit to their elasticity. The merchandise has to be
consistent with the brand promise. Just to sell merchandise with your logo on it is a short-term,
mistaken idea. From this viewpoint, the decision to move from sports shoes into consumer
electronics makes sense. Most items in the range, such as the two-way radio for hikers, are
sports-focused, even though the products may be adopted as fashion accessories, and the sports
shoe customers will probably snap them up.
(Cambridge BEC 4 Higher, 2016)
Choose the correct answer for questions 1-5.
1. What led to a change in attitudes to brands?
A. The influence of consumers on each other
B. The personal circumstances of consumers
C. More sophisticated marketing
D. Greater choice of products
2. According to the writer, an attribute of the third age of branding is that _______.
A. competing products may serve their purpose equally well
B. the range of products available is too large for all to survive
C. consumers are becoming confused about the products available
D. price has become a key factor in consumers’ choice of products
3. What can be inferred about Form 12?
A. Competition can have an impact on a product.
B. A brand can lose its popularity despite a strong market for the product.
C. Advertising can affect sales of a product.
D. Changes in the popularity of products can cause difficulties.
4. The writer refers to railways to show that brands like this _______.
A. do not recognize the value of stretching
B. suffer from having an unattractive image
C. are unlikely to lend themselves to stretching
D. are notoriously difficult to advertise
5. The writer argues that the stretch from sports shoes into consumer electronics is likely to be
successful because _______.
A. existing customers have demanded the new products
B. they will be sold in the same outlets
C. the new lines will expand the manufacturer’s market
D. there is a connection in the way that the goods can be used
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PASSAGE 2
Big brands turning to Big Brother
Innovation is the norm in our fast-moving consumer culture. But launching new products
or repositioning faded brands is increasingly the subject of scientific scrutiny. Global brands
want to make sure their products succeed across national boundaries and are turning for help to a
new kind of market testing – ethnographic research.
In less than a decade ethnographic research – detailed observations of the day-to-day
behaviors of a small sample from a target group of consumers to shed light on how they use,
choose or buy products – has established itself alongside consumer surveys and focus groups as a
leading tool of market research.
Siamack Salari is a boss of one firm specializing in this field. Salari’s researchers follow
paid volunteers for days filming their every move with a hand-held camcorder to uncover hidden
truths about the way they lead their lives. Usually towards the end of the first day, the novelty of
being filmed will wear off and unselfconscious behaviors will start to emerge. The best insights
come when people are feeling relaxed and off their guard. Hours and hours of video are analyzed
for key behaviors before being finally edited down to around an hour of film that can be played
back to the subject and shared with the client.
Salari explains, the hard work begins – analyzing and interpreting behaviors. Film has the
advantage over questionnaires because the camera doesn’t lie. People are often unaware of how
they appear when feeding the cat.
Describing his own brand of ethnography as “observational research with common sense
and lateral thinking thrown in”, Salari points out that only this type of qualitative research offers
unexpected insights. While supermarkets mine data from micro-chipped loyalty cards to segment
markets and target special offers, this kind of number-crunching misses the bigger picture of how
products are chosen and how they could be improved.
Salari points out: “Ethnographic research is totally opposed to other forms of research
and its big benefit is that it generates insights.” Sometimes ethnographic research suggests small
changes that can make the difference between a product succeeding in its market or falling flat.
1. What does the writer say about new products in the first paragraph?
A. Detailed research will ensure that new products are successful.
B. New products have to be available worldwide nowadays.
C. Companies are more reluctant to take risks than previously.
D. Consumers will stop buying brands that fail to innovate.
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2. In the second paragraph we learn that the advantage of ethnographic research is that _______.
A. other people can watch participants' behaviours
B. people are unaware that they are being filmed
C. it is easy to gather large amounts of data
D. it can capture previously unknown information
3. What does Solari say is the advantage of using a camera?
A. It allows for more accurate data to be collected.
B. Participants don't need to complete any paperwork.
C. Several people can be filmed at the same time.
D. Data can be collected over a short period.
4. In the fifth paragraph, Solari says the disadvantage of supermarket loyalty cards is that
_______.
A. the data they deliver is predictable
B. they are only useful for certain specific purposes
C. they don't allow for human interpretation of data
D. they need to be improved to deliver more information
5. In the sixth paragraph, how does Solari say ethnographic research can improve products?
A. Although expensive to begin with, it can reduce costs in the long term.
B. It offers objective information on how a product will perform.
C. It selects a small range of participants that are likely to buy the product.
D. It can highlight a key issue before the product is launched.
PASSAGE 3
The beginnings of the Gucci empire go back to Florence, Italy, in 1921, when Guccio
Gucci opened an exclusive leather shop. He understood the importance of building a reputation
for his brand and did so by putting an identifier on his special edition creations. He concentrated
on producing fabulously high-quality products, making them status symbols synonymous with
luxury.
After Gucci died, his sons Aldo and Rodolfo took over the management and led the brand
to iconic status in the 1950s. They succeeded extremely well in promoting the brand to the rich
and famous. Fashionable celebrities such as Grace Kelly and Audrey Hepburn were counted
among the enthusiastic collectors. The Gucci took note of this popularity and expanded
aggressively, opening stores in glamorous locations such as London, Paris and Palm Beach.
However, for all the glamour Gucci represented externally, there were increasing disagreements
within the family. Aldo and Rodolfo each had two sons who began pulling the brand in different
directions in the eighties, and decisions made about product distribution affected the brand's
33
reputation. A strategy to increase distribution expanded the market to thousands of retailers,
detracting from the brand's essence of exclusivity. Eventually, retailers were selected more
judiciously and the brand's reputation returned. However, during this period of disagreement
over distribution the brand went from headlines to sidelines, perceived as an old standard in the
fashion world.
Since then, smart leadership has driven the Gucci brand to more visibility and success
than ever before. The two men responsible for this revival were the creative director Tom Ford
and the president/CEO Domenico De Sole. Tom Ford was responsible for the design of all
product lines from clothing to perfumes and for the group's corporate image, advertising
campaigns and store design from 1994 to 2004. It was his elegant vision that placed this once
staid brand back on the backs of the wealthy. Italian-born attorney Domenico De Sole was the
other half of this dynamic duo. By integrating elaborate advertising and communication
campaigns with a marketing strategy that placed the focus on Gucci's core leather products and
ready-to-wear, De Sole brought the much-needed attention back to the quality of the brand while
streamlining the back-end of the business and expanding the network of directly operated stores.
Strong leadership and an image revamp literally breathed life back into the Gucci brand.
1. How did Gucci's founder establish a reputation for quality?
A. He focuses all his resources on product quality.
B. He concentrated on high-quality goods and stamped an identifier on special edition
creations.
C. He concentrated on promoting the brand to the rich and famous.
D. He planned a strategy to increase product distributions.
2. According the text, Gucci’s target customers included _______.
A. middle class
B. the enthusiastic collectors
C. primarily celebrities, the wealthy
D. all walks of life
3. The company's reputation began to decline when _______.
A. there was disagreement in the family over running the company
B. after Gucci died over running the company
C. as soon as Gucci’s grandsons took over the management of the company.
D. retailers were selected more judiciously
4. Why did the brand's image need renewing?
A. It was losing its reputation for exclusivity.
34
B. If successful, they would prevent Gucci from disagreement.
C. It was time for the company to renew its brand image.
D. It was necessary to increase product distribution.
5. How was an image revamp achieved?
A. Tom Ford planned to design all product lines from clothing to perfumes and corporate
images.
B. The strategy of increasing distribution has expanded the market to thousands of retailers,
reducing the exclusive nature of the brand.
C. new image campaign was conducted through marketing, diligence on quality, choosing
retailers more carefully, creative director and president.
D. The company focuses on advertising and communication campaigns with a marketing
strategy.
PASSAGE 4
I was skeptical when McDonald’s started altering its menus and playing around with
greener options. I thought it was a temporary blip, but they've hardwired it into their system.
There is another problem, however - will they be able to maintain this commitment to more
sustainable foods? And will they be able to maintain their prices? The fundamentals of the food
supply chain are going in an awesome direction - energy, oil, water and food commodity prices
are all rising.
McDonald’s is no longer in denial mode. They are more engaged, but will they be able to
engage with these fundamentals? They will not be alone. All big food companies are facing these
changes. But as a meat purveyor, McDonald’s is going to be very exposed. What seems to have
changed, and what is most noticeable among the customers’ meet, is an absence of
embarrassment or defensiveness about dining under the golden arches. There is an acute
awareness of the health perils of junk food and a healthy cynicism about the corporate food
industry, but it no longer seems to affect McDonald’s sales. Giles Gibbons,
Managing Director of Good Business, the corporate responsibility consultancy created by
Steve Hilton (the man who rebranded the Conservatives), believes that customers are still not
completely convinced by its revamp. McDonald’s comes bottom of Good Business's `concerned
consumer index', which suggests that people remain suspicious of its brand. The business has
regenerated itself, but the brand is lagging behind. It's a very long road. You can't win people's
trust back overnight. You've got to continue to take leadership decisions that people are delighted
and surprised by, and over time that will lead to people feeling more trusting and happier to
associate themselves with you.
35
Why McDonald’s is thriving despite this enduring cynicism is because people have
realized that their concerns about obesity, industrial food production and environmental
degradation cannot be the fault of one brand, argues Gibbons. Or, to put it a different way, if all
global food corporations are as bad as each other, why worry unduly about McDonald’s?
`Companies have responded, but people also understand the issue of obesity better,' says
Gibbons. (It's only Prince Charles who makes crotchety statements about banning McDonald’s
these days.). The debate is more grown-up at the same time as McDonald’s has evolved. The
combination of these two factors means that people are less embarrassed to be associated with it.
1. The author believes that the McDonald’s new concern for the environment is _______.
A. greenwashing B. temporary C. genuine D. noticeable
2. McDonald’s have demonstrated a greater concern for the environment by _______.
A. maintaining their prices
B. committing to more sustainable food sources
C. reducing the amount of meat on their menus
D. showing their understanding about obesity
3. Rises in energy, oil, water and food commodity prices _______.
A. don’t have much effect on the big food companies
B. will affect everyone in the food supply chain
C. will only really affect fast food companies
D. will only affect McDonald’s
4. The consultancy team responsible for the rebranding of McDonald’s in the UK _______.
A. is supported by Prince Charles
B. was responsible for rebranding Good Business
C. was created by the Conservative party
D. was responsible for rebranding the Conservative party
5. McDonald’s is thriving because _______.
A. people no longer care about the causes of obesity and environmental degradation
B. people have understood that obesity and environmental degradation are not the fault of the
fast-food industry
C. people have understood that all fast-food companies share equal responsibility for the
problems associated with the industry
D. people no longer care about McDonald’s as the causes of obesity
36
CHAPTER 3: MICROFINANCE
1. microfinance (n): 31. maturity (n):
2. microcredit (n): 32. money transfer (n):
3. micro-enterprise (n): 33. mortgage (n, v):
4. bank charge (n): 34. non-profit oriented (adj):
5. bartering (n): 35. outgoings (n):
6. collateral (n): 36. overdraft (n) => to overdraw (v):
7. covenant (n): 37. personal banking (n):
8. credit history (n): 38. portfolio (n):
9. credit limit (n): 39. repayment rate (n):
10. (poor) credit rating (n): 40. reserves (n):
11. consumer credit (n): 41. savings account (n):
12. commission (n): 42. security (n):
13. current account 43. self-sufficient (adj):
14. deposit account 44. social security (n):
15. savings account 45. statement (n):
16. direct debit (n): 46. to anticipate (v):
17. standing order (n): 47. to charge interest rate (v):
18. debt funding (n): 48. to disclose (v):
19. booming (adj): 49. to cover the costs:
20. expiry date (n): 50. to deposit (v):
21. emergency loan (n): 51. to eliminate poverty:
22. empowerment (n): 52. to grant a bank loan (v):
23. financial recovery (n): 53. to integrate into (v):
24. floating rate (n): 54. to penalise (v) => penalty (n):
25. guarantor (n): 55. to raise finance (v):
26. insolvent (adj) => insolvency (n): 56. to repossess (v):
27. liabilities (n): 57. to raise finance (v):
28. loan repayment (n): 58. to spread the risk:
29. living expense (n): 59. to shape (policy/ thinking):
30. margin (n): 60. ready cash (n):
37
Task 1: Match the terms of microfinance (A-J) with their corresponding definitions (1-10).
A. Overdraft B. Bank charges C. Expiry date D. Pension plan E. Credit limit

F. Covenant G. Pension fund H. Credit rating I. Collateral J. Bank loan
1. The properties or assets providing security to the lender in case the borrower fails to pay back
the loan
2. All the restrictions that the bank places on their borrowers
3. What customers pay the bank in return for its services
4. An amount of money borrowed from a bank for a certain length of time, usually for a specific
purpose
5. An arrangement to withdraw more money from a bank account than you have placed in it
6. An arrangement for saving money to give you an income when you stop working
7. A financial institution that invests money to provide retirement income for employees
8. The time on which a loan must be repaid, or the length of time until this date
9. The maximum amount that a bank will lend to a customer
10. An evaluation of a borrower’s ability to pay interest and pay back the loan in the future
Task 2: Identify the essential elements in accounting based on the given definitions (1-8) and
the initial letters.
1. The cost of borrowing money, expressed as a percentage I __ __ __ __ __ __ __
of a loan R __ __ __
2. All the money that the company will have to pay to L__ __ __ __ __ __ __ __ __ __
someone else in the future, including debts, taxes, and
interest payments
3. A financial operating plan showing expected income and B__ __ __ __ __
expenditure
4. The money paid to salespeople or agent in the form of C __ __ __ __ __ __ __ __ __
percentage of the income the employee generates
38
5. The money that is paid by the government to people who S __ __ __ __ __
are unemployed or sick S __ __ __ __ __ __ __
6. Amount of money that people have to spend regularly O __ __ __ __ __ __ __ __
7. The money spent on everyday needs such as food, L __ __ __ __ __

clothes, and public transport E __ __ __ __ __ __ (S)
8. The long-term loan lent to the borrower to buy properties M __ __ __ __ __ __ __
9. An instruction to a bank to pay varying sums of money to D __ __ __ __ __

another account on particular dates D __ __ __ __
10.A very small loan to individuals or families in order to M __ __ __ __ C __ __ __ __ __

start a business
3.2. VOCABULARY PRACTICE ON MICROFINANCE

A. protect B. transfer D. charge E. access F. float

G. encounter H. possess I. grant J. disclose K. assess
1. Our local branch managers are encouraged to help local businesses and are authorized
_______ loans and overdraft.
2. With standardized products, all customers are _______ the same interest rate.
3. Banks usually carefully study the financial situation of a company _______ the risk involved
in lending it money.
4. These days many loans are made with _______ or variable interest rates that change
according to the supply and demand for money.
5. With internet banking, it is possible to _______ money online from one account to another.
6. Customers don’t have to worry about security; the bank uses sophisticated encryption
technology _______ their assets.
7. Fines are being introduced to penalize people who do not _______ their earnings from
investments.
8. Microfinance organisations often _______ difficulties when lending larger sums as they have
to conduct due diligence more thoroughly than the major banks.
9. A current bank account pays little or no interest to the holders. It allows the customer to
_____ their money at any time.
10. When the bank takes back the property that has not been completely paid for, it _______ the
house or flat.
39
Task 4: Complete each sentence with correct form of the word in brackets.
1. Banks always need liquidity, so they can’t lend all their money in loans with long _______.
(Mature)
2. The interest rate on a loan depends on how _______ it is for the bank to lend the money.
(Risk)
3. Electronic money provides more _______ than cash because the lock function makes it
difficult to steal. (Secure)
4. The small loans that are given under microfinance schemes often have a very high _______
rate – most the borrowers pay the money back in full. (Pay)
5. It is a big responsibility to act as a _______ for a loan; i.e., you are responsible if the loan is
not paid back. (Guarantee)
6. Microfinance is hoped to help low-income people out of _______. (Poor)
7. The _______ on who was eligible for a mortgage made it impossible for many low-income
families to borrow money. (restrict)
8. Central banks implement the _______ policies of government and fix interest rates for other
banks. (Money)
9. The bank will _______ the customer for cutting short their loan. (Penalty)
10. Many charities are set up to help less _______ members of society get back on their feet.
(Fortune)
1. A _______ refers to a small business which sells goods and/or services to a local area or a
local market.
A. Micro-store B. Micro-enterprise C. Microcredit D. Micro-business
2. _______ is the properties or assets providing security to the lender in case the borrower fails
to pay back the loan.
A. Asset B. Installment C. Collateral D. Record
3. All the restrictions that the bank places on their borrowers are known as _______.
A. barriers B. prohibition C. limitation D. covenant
4. _______ refer to the products of banking, insurance, and investments that are provided by
banks or financial institutions.
A. Investment portfolios B. Financial services C. Financial funds D. Electronic transfers
5. _______ is what customers pay the bank in return for its services.
A. Bank charge B. Earnings C. Revenue D. Interest
40
6. A _______ is an amount of money borrowed from a bank for a certain length of time, usually
for a specific purpose.
A. Credit B. Statement C. Borrowing D. Loan
7. An _______ is an arrangement to withdraw more money from a bank account than you have
placed in it.
A. optimum B. alteration C. overdraft D. installment
8. When you make a private _______, you make an arrangement for saving money to give you
an income when you stop working.
A. pension plan B. money transfer C. statement D. loan size
9. Microfinance is considered a tool for ______ development and is not part of the charitable
network.
A. socio-payable B. socio-environmental C. socio-cultural D. socio-economic
10. There is less risk for a bank with a mortgage than with unsecured loans without _______.
A. mortgage B. collateral C. savings D. interest
11. The majority of customers prefer to do their _______ banking at the bank.
A. single B. free C. current D. personal
12. We offer standardized loans: you can be sure you won’t get less favorable terms and
_______ than our other personal customers.
A. requirements B. covenant C. conditions D. regulations
13. Banks generally know from experience how much cash to keep in their _______ for
customers who want to withdraw it.
A. ratings B. reserves C. accounts D. funds
14. Borrowers can usually get a _______ interest rate if the loan is guaranteed by securities or
other collateral.
A. higher B. long-term C. riskier D. lower
15. The Mondex system offers _______ because the wallet and reader are easy to use.
A. commission B. repayment C. convenience D. anticipation
16. Mondex is used to transfer money between personal cardholders as well as from consumers
to _______.
A. retailers B. depositors C. POS device D. the wallet
17. If you have poor _______, it’s often difficult to get a loan unless you have a personal
guarantor.
A. credit belief B. debit trustworthiness C. credit limit D. credit rating
18. Grameen Bank is different from conventional banks because it does not charge a _______ if
you do not pay the loan back on time.
A. penalty B. guarantor C. collateral D. security
41
19. A _______ helps the customers to increase their income when they get retired.
A. switch plan B. pension plan C. retirement plan D. maturity plan
20. It is increasingly common for companies to look at alternative ways to _______ because
banks are refusing credits.
A. support finance B. collect credit C. raise finance D. earn finance
21. Despite sitting on a large number of orders, companies may still have _______ problems if
they have been unable to produce due to a period of downtime.
A. stimulation B. reserve C. support D. cashflow
22. Microfinance organizations who want to meet the growing demand for credit sometimes find
it difficult because of _______ on the amount they can lend.
A. association B. sustainability C. extension D. limit
23. Age restrictions, identification requirements, and relatively low profitability of small
_______ accounts or loans can make it difficult for providers to meet the needs of young
people.
A. deposit B. reposition C. emergency D. pursuit
24. Microfinance is the provision of financial services to _______ people.
A. self-employed B. low-income C. wealthy D. expiring
25. The original strategy of microfinance was _______ oriented and anticipated eliminating
poverty.
A. unbeneficial B. non-profit C. non-revenue D. unprofitable
26. ______ is a kind of a short-term bank loan offering money for household appliances.
A. Short credit B. Consuming credit C. Consumer credit D. Long credit
27. Default means the borrower become _______ and cannot repay the debt.
A. insolvent B. insolvency C. solvent D. discrete
28. As a rule, microcredit loans are not backed by collateral leaving no means of financial
_______ for the lenders if they are not repaid.
A. achievement B. recovery C. overcome D. gain
29. The goal of microfinance is to ultimately give impoverished people an opportunity to become
_______.
A. self-disciplined B. self-confident C. self-esteem D. self-sufficient
30. In terms of return, as a provider of debt _______, the return for us is merely the interest that
we are paid on the loan.
A. services B. supporting C. funding D. stabilizing
31. Banks would start taking too many _______ if they could always be sure of rescue by the
central bank.
A. difficulties B. dangers C. disadvantages D. risks
42
32. Organizations use the money markets as an _______ to borrowing from banks.
A. alternative B. entrepreneur C. artisan D. emergency
33. A long-term bank loan has a _______ of more than 5 years and it is a(n) secured loan.
A. profile B. portfolio C. maturity D. vending
34. A person is a 'known risk' when he/she has a _____ of previous borrowings, and so will be
categorized as a low risk compared to people with no assets or credit history.
A. historical credit B. credit limit C. credit history D. credit loan
35. The reasons why low- income people lack access to traditional banks mainly because they do
not have the assets served as _____.
A. security B. asset C. liability D. property
36. _______ banking services include current accounts, savings accounts, credit facilities,
insurance and the ability to transfer funds across borders.
A. Luxurious B. Low-income C. Traditional D. High

PASSAGE 1
What is equity finance and is it right for your business?
Raising capital for a start-up or to expand your existing business is always challenging. If
bank (1)_______ are not the answer, or not the whole answer, seeking equity finance can be
another possible option. Unlike lenders, such as banks, equity finance (2)_______ don’t usually
have the legal right either to charge interest or to be repaid by a particular date. They invest
capital in a business on a medium- or long-term (3)_______ in return for a share of the
ownership of the business, and perhaps also some element of control. Return on the investment
comes in the form of (4)_______ payments and will depend on the growth and profitability of
the business. The two main providers of equity finance for private businesses are venture
capitalists (VCs) and business (5)_______ (BAs).
Venture capitalists are likely to be interested in high-growth business which are destined
eventually for sale or flotation on the (6)_______ market. They can supply large sums of equity
finance and may also provide considerable added value in the form of advice on strategy and
management (7)_______. However, securing a deal with a VC is invariably a demanding and
time-consuming process and to compensate for their (8)______, VCs also often drive a very hard
bargain. You might find yourself having to give up a greater share of the company than you
originally expected in order to secure a VC deal. This may ultimately be to your (9)________ in
cash terms: for example, you could end up owning 65% of your company instead of 100%; but if
the VC investment has resulted in significant growth, then your new stake will soon be
43
(10)________ considerably more than the old. On the other hand, VC investors are not generally
interested in micro-managing your company and the help, advice and contacts they will bring as
much as the investment capital itself, could, to a great extent, define your future.
1. A. loans B. options C. frameworks D. commissions
2. A. editors B. investors C. borrowers D. debtors
3. A. floor B. role C. basis D. background
4. A. interest B. credit C. debt D. dividend
5. A. actors B. acquisitions C. acceptances D. angels
6. A. black B. street C. stock D. niche
7. A. board B. expertise C. technology D. consultant
8. A. turnover B. outcome C. revenue D. risk
9. A. condition B. advantage C. role D. specification
10. A. iconic B. persistent C. worth D. emerging
PASSAGE 2
In New York, people are always asking me the same question," Alexandre de Lesseps
says: ‘Why do you want to (1)_______ money to poor people in developing countries?’ Mr. de
Lesseps, an international investment banker, has a ready answer, "The only way to solve the
problems of (2)_______ and terrorism in the world today," he says, " is though investment." As a
co-owner of BlueOrchard Finance, a (3)_______ bank in Geneva, he is one of the leading figures
in the world of microfinance. His firm manages a fund that currently makes about $50 million in
short-term (4)_______ to microcredit lending institutions in more than 20 developing countries
around the world, and BlueOrchard and its investors make a profit in the form of (5)_______
payments on the loans that they make to such institutions. Micro-finance instiutions typically
make loans in (6)_______ of $1,000 or less to poor people in developing countries who are
ignored by commercial banks. As a rule, microcredit loans are not (7)_______ by collateral,
leaving no means of financial recovery for the lender if they are not repaid. But leading
microcredit (8)_______ claim that only five per cent of the loans they make are never repaid.
This compares with five to ten per cent in the consumer finance industry for borrowers with bad
credit (9)_______. Just less than $500 million is committed to microcredit loans worldwide,
according to BlueOrchard's estimates. But Mr. de Lesseps says he believes that today the total
(10)_______ for such loans may be nearly $3 billion.
1. A. lend B. fund C. resolve D. borrow
2. A. homelessness B. prosperity C. covenant D. poverty
3. A. integrative B. corporate C. profitable D. financial
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4. A. collateral B. microfinance C. loan D. mortgage
5. A. wage B. commission C. option D. interest
6. A. proportions B. amounts C. portions D. numbers
7. A. backed B. provided C. offered D. regulated
8. A. incentives B. repayment C. institutions D. cashflows
9. A. assets B. materials C. savings D. histories
10. A. finance B. portion C. budget D. market
PASSAGE 3
The 1990s saw accelerated growth in the number of microfinance institutions created and
an increased emphasis on reaching scale. In Bolivia, BancoSol pioneered the (1)_______ of
microfinance institutions to domestic and international financial markets and to for-profit
investors. Internationally, a microfinance (2)______ began to develop. Attention was given to
developing appropriate regulation and supervision for formal sector microfinance institutions.
Regulated nonbank microfinance (3)_______ were developed in some countries. Rating agencies
for t microfinance institutions began operation. Channels for disseminating information about
best practices in (4)_______ microfinance proliferated. Teaching programs on commercial
microfinance were instituted, drawing participants from around the world. And worldwide
(5)_______ of microfinance practitioners were formed.
By the late 1990s commercial microfinance was no longer limited to a small group of
scattered institutions. It was an industry – a fledgling industry, but a rapidly (6)_______ one. In
this context the development of BRI's microbanking system and of BancoSol are of particular
interest, both because of the scale on which they conduct continuously (7)_______ operations
and because of their leadership roles in the development of the commercial microfinance
industry, sustainable microfinance on a national scale depends on institutional (8)_______,
management, and organization as well as on products, pricing, and knowledge of the market.
These banks were the first self-sufficient microfinance institutions to (9)_______ the
management, organizational structures, information systems, staff training systems, and internal
supervision and control that, along with their commitment full cost recovery and institutional
that, self-sufficiency, (10)_______ them to provide microfinance profitably on a large scale.
Their success has spawned both imitation and competition within their own countries and
adaptation and extension of their methods by institutions in other developing countries.
1. A. entrance B. exit C. access D. recession
2. A. equipment B. affair C. industry D. segmentation
3. A. intermediaries B. shareholders C. servers D. chunks
45
4. A. economical B. essential C. principal D. commercial
5. A. networks B. integrations C. connections D. sites
6. A. enlarging B. growing C. turning D. funding
7. A. endurable B. acceptable C. continual D. profitable
8. A. authorization B. penalty C. governance D. empowerment
9. A. protect B. develop C. prevent D. transfer
10. A. enabled B. disabled C. provided D. extended
PASSAGE 4
Micro finance refers to the provision of (1)_______ financial services such as small
loans, small savings, micro insurance and funds transfer facilities extended to socially and
economically poor and disadvantaged (2)_______ of the society to enable them to increase their
income levels and improve standard of living. The main aim of microfinance is to provide small
loans to poor people particularly living below (3)_______ line, who are not able to raise loan for
productive purposes from other sources and to improve their standard of living by increasing
their (4)_______ and saving covering associated risks.
The poor people need minimum financial services. They need to open saving bank
account in the bank to keep and multiply their small savings by carrying out (5)_______
activities and getting small loans from banks to purchase the assets and increase the level of their
activities. In order to cover the life and activities (6)_______, they require micro-insurance
facilities. They also require funds deposit and transfer facilities at their nearby places. In order to
improve the quality and earning, they need some basic training (7)_______. The provision of
these minimum financial services is covered in microfinance. Thus, Microfinance refers to the
movement in the entire world where in low income households have some (8)_______ to the
basic affordable financial services from banks or financial institutions to finance their productive
economic activities, create assets, (9)_______ income after meeting expenses to save some net
surplus and also to protect their life and activities against various hazards and risks.
According to International Labour Organization, “Microfinance is an economic
development (10)_______ that involves providing financial services through institutions to low
income clients”.
1. A. suitable B. affordable C. purchasable D. beneficial
2. A. divisions B. departments C. segments D. groups
3. A. poverty B. level C. debt D. crisis
4. A. money B. earning C. supply D. finance
5. A. effective B. unregulated C. productive D. successful
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6. A. dangers B. threats C. accidents D. risks
7. A. facilities B. options C. chances D. offers
8. A. method B. access C. repayment D. security
9. A. protect B. finance C. strive D. generate
10. A. discipline B. approach C. maturity D. diligence
PASSAGE 1
Today, with a Noble Prize to its credit, Grameen is one of the largest microfinance
organizations in the world. It started out lending small sums to poor entrepreneurs in Bangladesh
to help them grow from a subsistence living to a livelihood. Grameen's approach, unlike other
micro-financers, uses the group-lending model. Costs are kept down by having borrowers vet
one another, tying together their financial fates and eliminating expensive loan offices entirely.
The ultimate promise of Grameen is to use business lending as a way for people to lift
themselves out of poverty. Recently, Grameen has taken on a different challenge by setting up
operations in the US Money may be tight in the waning recession, but it is still a nation of
100000 bank branches.
Globally, the working microfinance equation consists of borrowing funds cheaply and
keeping loan defaults and overhead expenses sufficiently low. Microlenders, including Grameen,
do this by charging colossal interest rates-as high as 60% or 70% which is necessary to
compensate for the risk and attract bank funding. But loans at rates much above the standard
15% would most likely be attacked as in America. Grameen America believes that in a few years
it will be successful and turn a profit, thanks to 9 million US households untouched by
mainstream banks and 21 million using the likes of payday loans and pawn shops for financing.
But enticing the unbanked won't be easy. After all, profit has long eluded US microfinanciers
and if it is not lucrative, it is not microlending, but charity. When Grameen first went to the US,
in the late 1980s, it tripped up. Under Grameen's tutelage, banks started micro loans to
entrepreneurs with a shocking 30% loss. But Grameen America says that this time results will be
different because Grameen employees themselves will be making the loans, not training an
American bank to do it. More often than not, the borrowers, Grameen finds, in the US already
have jobs or side businesses selling toys, cleaning houses, etc.
The loans from Grameen, by and large, provide a steadier source of funding, but they
don't create businesses out of nothing. More importantly for many entrepreneurs, group members
are tremendous sources of support to one another.
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1. What has adversely affected the success of microfinance institutions in the US?
A. The focus of these institutions is on making a profit at any cost instead of being charitable
to the needy
B. American banks engaged in microlending were the most severely hit during the recession.
C. Widespread perception among bankers that these institutions are better suited to developing
countries.
D. Their failure to attract those outside the formal banking system as customers.
2. Why has Grameen made a second attempt to launch itself in the US?
A. The realization that a large percentage of the American population not reached by
mainstream banks can be tapped.
B. The willingness of US banks to provide the necessary staff and funds to facilitate the
spread of microfinance.
C. The rates of interest on loans in the US are exorbitant making it easier to recover capital.
D. Recognition of the fact that disbursing credit in developing countries doing the recession is
too risky.
3. Which of the following can be inferred from the passage?
A. Microfinance has been successful only in Asian.
B. There is scope for microfinance institutions to be profitable in developed countries.
C. Microfinance makes individual borrowers dependent rather than independent.
D. America has the largest number of banks in the world.
4. According to the author, what has enhanced the likelihood of success for Grameen America at
present?
A. Its success in Bangladesh and other developing counties.
B. Absence of other microfinance institutions for competition.
C. The fact that America is currently in the midst of recession.
D. None of the above.
5. Which of the following can be said about Grameen?
A. Its success in developing countries will ensure its success in developed countries.
B. It ensures that the poor in developing countries enjoy a subsistence standard of living.
C. It has demonstrated that the poor are far more likely to repay loans than the affluent.
D. The loans from Grameen can be used for funding are not necessarily the only mean to
create businesses.
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PASSAGE 2
Hedge funds are private investment funds which are only open to a limited range of
investors, the number of which is determined by its regulators, but is restricted by law to no more
than 100 investors per fund. They are special in that they are exempt from many of the rules and
regulations governing other mutual funds, and this allows them to undertake a wider range of
trading activities and employ more aggressive strategies than are normally permitted. As a
consequence of the restricted number of investors, most hedge funds set an extremely high
minimum investment amount, ranging from $250,000 to as much as $1 million. Investors also
have to pay an annual performance fee to the Investment Manager, as is standard practice for
mutual funds; however, hedge funds also collect a percentage of the profits (usually 20%). The
underlying philosophy of hedge funds which originated on Wall Street in the 1940s as an
investment option for the extremely wealthy, is wealth preservation. They operate on the
principle of absolute return, of making money on an ongoing basis, regardless of market
fluctuations. This is an attractive proposition for investors and hedge fund activity has increased
greatly over the last 15 years.
Short selling was one of the strategies employed by billionaire businessman and hedge
fund manager George Soros which generated an estimated $1.1 billion for his hedge fund, the
‘Quantum Fund’, in 1992, forcing the pound out of the European exchange mechanism in the
process. It is a technique for profiting from the falling price of stock and involves borrowing a
security from a broker and selling it with the understanding that it must later be bought back
(hopefully when the market has dropped and at a lower price) and returned to the broker.
Derivatives are another means employed by fund managers to ‘hedge their bets’ against
market direction. They are essentially contracts that gamble on the future prices of assets by
making a contract for future trading at a specified price, the buyer and seller standing to gain or
lose according to whether the market has dropped below the price agreed or risen above it.
‘Options’ and ‘futures’ are common currency in derivatives trading. A ‘future’, or forward
contract, is formed when both the buyer and the seller are committed and legally obliged to
exchange the asset when the contract matures. An ‘option’, on the other hand, is a contract that
gives its owner the right, but not the obligation, to buy or sell the asset on or before a given date
at the agreed-upon price. Leveraging, that is borrowing money to increase the fund’s trading
capacity, is also common practice for hedge funds. There are obvious associated risks; however,
leveraging can increase the shareholders’ return on their investment and often there are
additional tax advantages associated with borrowing.
49
1. Why does the minimum investment for a hedge fund tend to be high?
A. They are an investment mechanism only for the very wealthy.
B. The amount is determined by the fund’s regulators.
C. This includes the Fund Manager’s fee.
D. The number of investors is restricted.
2. According to paragraph one, what is the principal characteristic that distinguishes hedge funds
from other types of mutual fund?
A. Investors have to pay the Fund Manager an annual performance fee.
B. Hedge funds are less regulated and can engage in a broad range of trading activities.
C. There is a minimum investment amount on trading activities.
D. Hedge funds tend to employ a less aggressive investment strategy.
3. According to paragraph two, what does the principle of ‘absolute return’ entail?
A. Maximizing profit as the market fluctuates
B. Setting the losses off against the profits as the market fluctuates
C. Always making a profit whether the markets move up or down
D. Accepting heavy losses for the sake of even more substantial future gains
4. What does the technique of short selling depend on in order to make a profit?
A. The fund’s borrowed securities have to increase in value before the fund sells them on.
B. The fund’s borrowed securities have to fall in value before the fund buys them back.
C. The fund must only buy securities that have fallen in value.
D. The fund has to sell securities as soon as they rise in value.
5. When hedge funds buy or sell derivatives, what are they gambling on?
A. Only the market that will definitely rise in the future.
B. Only the market that will definitely fall in the future.
C. International exchange rates that will definitely fall.
D. The price of certain commodities or assets in the future.
PASSAGE 3
An understanding of the degree of poverty in a country helps in estimating the size and
needs of the potential market for microfinance services and may also help to clarify or establish
an MFI’s or donor’s objectives. An important consideration when providing microfinance
services is the existence of adequate infrastructure (roads, communications facilities, water and
sewer systems) and of affordable social services such as health, education, and nutrition.
50
“Improving rural roads and electricity, or providing matching grants for village-
determined investments such as watershed management, to increase the earnings capacity of
poor households is often more cost-effective than providing financial services, particularly where
infrastructure is underdeveloped. Similarly, providing or upgrading rural primary education and
health facilities can achieve longer-term benefits for the rural poor, especially for the poorest of
the poor, by increasing the productivity of labor, the main asset of the poor.” (Yaron, Benjamin,
and Piprek 1997, 42)
A lack of roads, electricity, communication facilities, and other infrastructure will affect
the means by which an MFI and the micro enterprises it supports operate and should be taken
into consideration by both donors and practitioners. Identifying the availability of and access to
social services for an MFI’s client base helps to determine whether clients’ needs for services are
being met and whether the objectives of the MFI are suitable (that is, whether the MFI can
provide only financial services while other governmental organizations and NGOs provide other
needed services). For example, the availability of education and health services greatly
influences the capacity of micro entrepreneurs to increase their enterprise activities. Any
provision of financial services to the poor should consider the availability of other non-financial
services and the environment in which the MFI and the clients operate.
Some MFIs form relationships with other service organizations to coordinate the
provision of financial services, non-financial services, or social services, taking advantage of the
comparative strengths of each organization. However, it should be noted that the provision of
social services such as health, education, and family planning should not be directly combined
with the provision of financial services.
1. What is necessary for MFIs to do when estimating the size and needs of the potential market?
A. To comprehend the depth of poverty in the country in which they are operating
B. To conduct research on the degree of a country in which they are operating
C. To clarify the prospective objectives which they are operating
D. To provide an adequate infrastructure (roads, communications facilities, and so on)
2. What is not considered more cost-effective than providing microfinance services?
A. Upgrading rural primary education and health facilities.
B. Providing matching grants for village-determined investments
C. Increasing the earnings capacity of poor households
D. Improving the quality of service for accounts, home mortgages, and other types of loans
51
3. What has a significant impact on microentrepreneurs' ability to expand their business
activities?
A. The availability of education and health services
B. A lack of communication facilities and other infrastructure
C. The availability of and access to financial services
D. The client’s needs for services
4. What is not the purpose of creating relationships between some MFIs and other service
organizations?
A. To consider the availability of other non-financial services and the environment
B. To coordinate the supply of financial services or social services
C. To cut down on the administrative costs.
D. To capitalize on each organization’s comparative strengths
5. According to the final paragraph, what services should not be directly combined with the
provision of financial services?
A. Health, education, and family planning
B. Roads, communications facilities, and sewer systems
C. Electricity and communication facilities
D. Research and development, and legal services.
52
CHAPTER 4: CORPORATE SOCIAL
RESPONSIBILITY (CSR)
1. accountability (n) => be accountable for: 27. gender discrimination (n):
2. activist shareholder (n): 28. packaging waste (n):
3. codes of conduct (n): 29. procurement policy (n):
4. misconduct (n): 30. professional misconduct (n):
5. carbon footprint (n): 31. proponent (n):
6. corporate philanthropy (n): 32. physical environment (n):
7. holistic approach (n): 33. a PR exercise transparent (adj):
8. nepotism (n): 34. side effect (n):
9. responsible purchasing (n): 35. turnover (n):
10. social justice (n): 36. to cap (v):
11. social marketing (n): 37. to discharge the waste (v):
12. social welfare (n): 38. to dispose of (v):
13. social responsibility (n): 39. to emit => emission (n):
14. stakeholder (n): 40. to expose the fraud:
15. carbon footprint (n): 41. to finance (v):
16. charitable efforts (n): 42. to make fraudulent claim:
17. corporate scandal (n): 43. to offset (negative impacts):
18. discrimination (n) => to discriminate: 44. to pay lip service:
19. dog-eat-dog environment (n): 45. to reveal the stance:
20. empowerment (n): 46. range of initiatives (n):
21. ethical conduct (n): 47. whistleblower (n):
22. ethical dilemma (n): 48. work-life balance (n):
23. ethical investment fund (n): 49. wrongdoing (n):
24. ethical stance (n): 50. smokescreen (n):
25. ethical standard (n): 51. integrity and probity (n):
26. gender discrimination (n): 52. the brand citizenship (n):
53
Task 1: Match the terms of CSR (A-J) with their corresponding definitions (1-10).
A. Proponent B. Accountability C. Ethical stance D. Whistleblower E. Social

responsibility
F. Nepotism G. Social justice H. Discrimination I. Stakeholders J. Ethical dilemma
1. The person who informs the public that the company they work for has engaged in illegal
practices
2. The practice of giving jobs to members of your family when you are in a position of power.
3. The people who are considered to be important part of an organization or society because
they have responsibility within it and receive advantages from it
4. The fact of being responsible for one’s actions and ready to explain them if required
5. The behavior of treating some people in a worse way than you treat other people
6. A supporter who argues in favor of something
7. A choice between two actions that might both be morally wrong
8. A stated opinion about the right thing to do in a particular situation.
9. A business framework when companies are concerned about the consequences of their
activities on the community as a whole
10. The idea that people should be treated fairly and equitably
54
Task 2: Identify the essential elements in CSR based on the given definitions (1-8) and the
initial letters.
1. A temporary failure to act or behave in the correct way E __ __ __ __ __ __
L __ __ __
2. Something people do or say as a way of hiding their real S__ __ __ __ __ __ __ __ __ __

feelings, intentions or activities.
3. People who take a more active role in the way that the A __ __ __ __ __ __ __
companies they invest in are run S __ __ __ __ __ __ __ __ __ __
4. The actions conducted by the government to reduce S __ __ __ __ __
poverty, unemployment, etc P __ __ __ __ __ __
5. The act of a corporation or business promoting the C __ __ __ __ __ __ __ __

welfare of others, generally through charitable donations of P __ __ __ __ __ __ __ __ __ __ __
funds or time
6. The use of marketing techniques to convince people to S __ __ __ __ __
change their behaviors for their own good or for the benefit MARKETING
of the society
7. The development and distribution of eco-friendly goods, G __ __ __ __ __
i.e. the products that are not harmful to the environment MARKETING
8. A rule for moral behaviors in a particular area E __ __ __ __ __ __

S __ __ __ __ __ __ __
9. An action conducted by the government to reduce S __ __ __ __ __
poverty, unemployment, etc. P __ __ __ __ __ __
4.2. VOCABULARY PRACTICE ON CSR

A. cap B. offset D. mislead E. adopt

G. discharge H. reveal I. maximize J. take
1. Organisations have benefited by _______ strategic approaches to environment and social

issues.
2. The introduction of stringent rules and heavy fines has led to less waste being _______ into
the sea.
3. Why should these giant corporations, whose primary purpose for existence is to ______
profits for their shareholders, be concerned with becoming good global citizens?
4. Governments can legally limit the amount of carbon a company can emit by _______ it.
55
5. CSR can seem to have ______ ownership of a vast number of issues, from work-life balance
to procurement policies for suppliers and contractors to customer service.
6. Many companies develop community projects to _______ negative impact or ‘give back’ to
the community and local workforce.
7. Companies are often requested _______ their stance on environmental issues.
8. Greenwashing is ______ marketing or promotion that falsely claims that the product, service
or company is environmentally friendly.
1. CSR lays the _______ of companies’ ethics, principles, and values. (Found)
2. Minimizing the company’s _______ impact, particularly around highly visible aspects of its
operations, is a particularly popular tactic. (Environment)
3. If the CEO had not admitted _______ at the last minute, our manager would have come under
suspicion. (wrong)
4. The company has been making every effort to get rid of age and gender _______. (Crime)
5. It faces the most serious charges of professional _______ yet brought against a big
accountancy firm, with claims that it deliberately concealed evidence of fraud. (Conduct)
6. Some people argue that companies have to be careful never to cheat customers, but for purely
business reasons, rather than ______ ones: disappointed customers will not buy any more of your
products in future. (Ethic)
7. Shell views openness and transparency as an essential part of the long-term energy _______
for the global business environment. (Solve)
8. For a company to be socially responsible, it first needs to be _______ to itself and its
shareholders. (Account)
9. The EU’s Electronic Equipment Directive makes manufacturers responsible for the collection
and _______ of electronic products. (Dispose)
10. People are going to want, and be able, to find out about the _______ of a brand, whether it is
doing the right things socially, economically, and environmentally. (Citizen)
1. CSR is about conducting business in a way that meets or goes above the _______ that any
one society has of a business.
A. concepts B. expectations C. explanations D. exceptions
2. Corporate codes of conduct are explicit _______ of a company’s values and standards of
behavior.
A. documents B. minutes C. statements D. sentences
56
3. CSR helps to reduce the environmental _______ of business activities and improves overall
working conditions.
A. drawbacks B. impacts C. effectiveness D. efficiencies
4. The four key ______ to the BBC's CSR policy focus on the impact the organization has on
the community, the physical environment, the marketplace, and the workplace.
A. components B. areas C. fields D. factors
5. Community investment covers a whole range of _______, including running health
programmes, sponsoring schools, employee volunteering schemes, etc.
A. services B. initiatives C. facilities D. measures
6. Corporate giving is more easily dismissed as a _______ than other forms of corporate social
responsibility.
A. PR promotion B. PR commercial C. PR exercise D. PR betrayal
7. We need to examine how much packaging _______ we produce.
A. waste B. output C. destruction D. substance
8. Our new green _______ can be included as part of our re-branding exercise.
A. opportunities B. ambitions C. strikes D. policies
9. CSR is nothing more than a PR (Public Relations) exercise, designed to communicate a
positive image of the company to the ______world.
A. inside B. outside C. indoor D. outdoor
10. He argues that corporate _______ transforms the culture of the firm concerned.
A. duty B. purpose C. philanthropy D. approach
11. Accountability reports are standard practice nowadays but a business can always find ways to
hide _______ activities.
A. unprofessional B. criminal C. ethical D. illegal
12. People who make _______ insurance claim are liable to procurement.
A. fake B. fraudulent C. incorrect D. inappropriate
13. The business of business should not be about money, it should be about _______, i.e., it
should be about public good, not private greed.
A. welfare B. responsibility C. charity D. justice
14. CSR has built-in incentives for hypocrisy because when businesses face a(n) _______
between making money and social responsibility, making money tends to prevail.
A. argument B. contrary C. conflict D. opposition
15. We are committed to the highest ethical _______ and to promoting our medications only for
approved uses.
A. issues B. standards C. discriminations D. dilemmas
57
16. There were questionable ethical _______, including whether he helped a company that hired
his brother as a lobbyist.
A. concerns B. worries C. programs D. issues
17. They tightened the city’s ethics _______ after a string of ethical lapse came to light,
including city managers hiring their relatives.
A. restriction B. law C. policy D. strategy
18. The code of professional conduct requires directors to act with _______ and probity, and to
accept that failure to comply carries the threat of fines.
A. integrity B. dishonesty C. truthfulness D. pursuit
19. We are totally _______ about the methods that we use, so it would be hard for us to hide the
fact if we were not giving the correct numbers in our findings.
A. ethical B. protected C. illegal D. transparent
20. The Social Venture Network applies capital to enterprises that reduce poverty and advance
social _______.
A. justice B. report C. representation D. exercise
21. Different individual self-interests can have a negative effect on corporate profits and hence
reduce overall social _______.
A. development B. wealth C. poverty D. welfare
22. The federal government is facing a harder time obtaining resources to fund social _______.
A. stances B. programs C. incentives D. emissions
23. The federal government is facing a harder time obtaining resources to fund social _______.
A. bear-eat-bear B. bull-eat-bull C. dog-eat-dog D. cat-eat-cat
24. CSR lays the foundations of companies' ethics, principles and _______, helps to reduce the
environmental impact of business activities and improves overall working conditions.
A. cultures B. behaviors C. clues D. values
25. Some CSR professionals argue that the measurement of the _______ relative to the efficient
provision of customer service is the correct definition of the role of CSR.
A. life-work balance B. work-life comparison C. work-life balance D. life-work statement
26. Business should avoid participating in _______ that are not related to their core business
focus or that violate the company’s ethical standards in any way.
A. charitable issues B. charity behaviors C. charitable efforts D. donation issues
27. With the 24/7 media world, more companies are being brought to account for how they do
their business, especially those involved in any _______ scandals.
A. company B. corporate C. group D. corporation
28. Businesses are increasingly aware of the importance of social and environmental issues for
their _______.
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A. fame B. status C. reputation D. realization
29. Individuals and companies are increasingly aware of their carbon _______ and take measures
to reduce it.
A. release B. pollutant C. footprint D. substance
30. The reality of CSR for most organizations is that it is only ________ and consequently
almost meaningless.
A. face-deep B. skin-deep C. finger-deep D. bone-deep
PASSAGE 1
How to be good in all areas
Few companies are clear about how to manage what can be an amorphous collection of
internal initiatives and external relationships on social, environmental and (1)_______ issues.
Probity and responsibility must be embedded in a company's culture, strategy and operations
from the (2)_______ down. But how can this be done? A new guide from Business for Social
Responsibility, a US non-profit research and advisory organization with 1,400 member
companies and affiliates, attempts to answer this by taking the reader (3)_______ through the
process of designing a corporate social responsibility management (4)_______.
Only a handful of companies have a full CSR management system in place, says the
organization, which advises its members on how to make responsible (5)_______ integral to
their strategy and operations. Its corporate members, mainly in the US and Europe, have
combined annual revenues of nearly $2,000bn (£1,300bn) and employ 6m people. They include
ABB, British Airways, Coca-Cola, Ikea, Unilever and Wal-Mart. The scandals in the US have
underlined how "corporate responsibility taskforces" and (6)_______ of conduct are not enough
on their own and can sometimes be a smokescreen. "Creating and building a successful CSR
management system is a complex, long term (7)_______ for any company" says the report. "It
involves a shift in the way a company conducts business and can be likened to implementing
other large –scale change initiatives such as total quality management.”
The guide runs through basics such as who currently has responsibility for CSR in the
company, why a better management (8)_______ might improve things and what hot-button"
issues (child labor, drug pricing) face different sectors. It encourages companies to think hard
about their (9)_______, what their concerns are, how credible and influential they are and
whether they are a potential (10)_______ partner or a liability.
1. A. ethical B. spiritual C. marketing D. national
2. A. rank B. peak C. top D. range
3. A. successive B. one-to-one C. followable D. step-by-step
4. A. policy B. principle C. system D. path
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5. A. obligations B. practices C. processes D. resources
6. A. codes B. pins C. passwords D. approaches
7. A. venture B. assignment C. project D. program
8. A. format B. design C. outline D. structure
9. A. stakeholders B. whistleblowers C. suppliers D. providers
10. A. interval B. long-term C. unsustainable D. accountable
PASSAGE 2
Eco-efficiency was a phrase coined by the Business Council for Sustainable
Development to describe the need for companies to improve their (1)_______ as well as
economic performance. Minimizing the company’s environmental impact, particularly around
highly (2)_______ aspects of its operations or in areas where it makes financial savings, is a
particularly popular tactic amongst companies whose products are inherently (3)_______ to the
environment. For example, an oil company installing (4)_______ panels on the roofs of its petrol
stations and reducing the carbon emissions of its operations whilst remaining committed to a
continual increase in oil and gas production.
(5)_______ to charities is a simple and reputation-enhancing way for a company to put a
numerical value on its CSR ‘commitment’. McDonald’s network of Ronald McDonald Houses to
‘improve the health and (6)_______ of children’, and BP’s sponsorship of the National Portrait
Award are two high-profile examples. Because it’s easy and very PR friendly, corporate giving is
more easily dismissed as a PR (7)_______ than other forms of CSR. In an effort to respond to
this criticism companies are shifting to making larger donations to a smaller number of charity
partners and combining giving with other activities.
(8)_______ marketing, such as Tesco’s highly successful ‘computers for schools’
promotion, is a partnership between a company and a charity, where the charity’s logo is used in
a marketing campaign or (9)_______ promotion. Companies choose charities which will attract
target consumers. The charity gains money and profile, and the company benefits by associating
itself with a good cause as well as increasing product sales.
The Reebok Human Rights Awards, Nestle’s Social Commitment Prize and the Alcan
Prize for Sustainability are high-profile examples of corporate sponsored award schemes.
Through award schemes, companies (10)_______ themselves as experts on an issue and leaders
of CSR simply by making a large donation.
1. A. natural B. ecological C. environmental D. biological
2. A. visual B. intangible C. renewable D. optical
3. A. toxic B. deadly C. destructive D. poisonous
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4. A. energy B. shining C. sunny D. solar
5. A. Offering B. Donating C. Discharging D. Supporting
6. A. well-behaved B. well-made C. well-known D. well-being
7. A. exercise B. misconduct C. theory D. methodology
8. A. Sponsoring-related B. Community-related C. Cause-related D. Corporate-related
9. A. brand B. charity C. stance D. claim
10. A. reveal B. position C. emit D. compel
PASSAGE 3
Creating strong corporate image

Whatever the company does should have an ethical underpinning from top to bottom.
This requires more than simply creating a series of ethical policies and procedures. Your ethics
need to be an (1)_______ part of the company culture: the company will do the right thing
regardless of the result. Key to (2)_______ up this ethical framework is establishing a system of
checks and balances and reporting mechanisms that clearly lay out the (3)_______ of breaking
these rules.
The (4)_______ to effectively establishing an ethical culture, and to every element of
developing a good corporate image, is good communication. This part of image development
(5)_______ not only to a company’s management and lower level employees, but also to
external stakeholders (such as customers, vendors, shareholders, etc.) and the public in general.
Strong consideration should be given to developing a separate strategic communication plan to
(6)_______ out this task. However, in order for communication to be successful, your corporate
image must be clear and consistent with the products and services you have to offer, the benefits
you provide to your target audience and how you (7)_______ them. If your positioning statement
indicates that your products are aimed at retirees, for example, then you must make sure you are
communicating with retirees: your corporate image must (8)_______ on this audience.
It is essential at all costs to maintain your credibility in the market and in the minds of
your customers by (9)_______ that you do what you say you will do. If you are a charitable
organization, for example, then spending thousands of dollars on elaborate conferences and high-
end salaries will end up (10)_______ your image. Similarly, if you are trying to create an image
of environmental concern, you will need to invest in ensuring that your products or services have
impeccable environmental credentials.
1. A. transparent B. integral C. inherent D. innate
2. A. putting B. setting C. making D. taking
3. A. consequences B. actions C. possibilities D. procedures
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4. A. answer B. solution C. key D. result
5. A. reveals B. compels C. disposes D. extends
6. A. make B. put C. carry D. sort
7. A. benefit B. position C. procurement D. methodology
8. A. focus B. target C. direct D. integrate
9. A. conducting B. acting C. demonstrating D. performing
10. A. reinforcing B. emphasizing C. protecting D. discrediting
PASSAGE 4
Due to international (1)_______ on the need to reduce carbon emissions and fossil fuel
(2)_______, businesses have been forced to consider ways to reduce them. The ultimate aim is
for all businesses to operate out of (3)_______ buildings. These days designers have to come up
with different ways of incorporating energy (4)_______ into the fabric of a building, using only
clean energy such as solar or wind power. These green buildings should then be easier and
cheaper to operate and (5)_______.
In the past many companies have been reluctant to engage with the idea of green energy
and buildings because (6)_______ costs have been so high. This has therefore stifled any
enthusiasm for change and, added to that, a lack of incentive for them to do so has meant that the
take-up has been rather slower than (7)_______. However, nowadays the buildings are as
(8)_______. as conventional ones and companies are able to see a good return on their
investment in a relatively short time. These buildings also provide staff with a much better
environment in which to work, thus improving (9)_______ and the ability for companies to
retain staff. In addition, it is proving easier to attract tenants and command high rents in green
buildings than in a traditional building, thus proving that they can be a very good investment.
If a company is not in line for purchasing a new building, then older buildings can be
retrofitted with (10)_______ technologies. However, the misconception that this investment is
not financially viable has meant that once again, the take-up has not been as successful as
governments might have hoped it would be.
1. A. transactions B. arguments C. agreements D. interactions
2. A. purchase B. consumption C. acceptance D. initiative
3. A. clear B. clean C. high D. green
4. A. probity B. efficiency C. citizenship D. influence
5. A. maintain B. retain C. attain D. obtain
6. A. operating B. overhead C. initial D. primary
7. A. counted B. accepted C. entered D. anticipated
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8. A. cost-consuming B. cost-effective C. cost-related D. cost-resulting
9. A. energy B. reliability C. production D. productivity
10. A. resource- maintaining B. resource-related C. resource-saving D. resource-consuming
PASSAGE 1
Sherron Watkins, one of the world's best-known whistleblowers, made global headlines
in 2001 for telling her boss, Ken Lay, that Enron was mired in accounting fraud.
Back in 1996, Watkins was working with Andrew Fastow, the Chief Financial Officer
later convicted of fraud, when she began to witness aggressive accounting. “I was starting to see
Andy Fastow cross the line”, she says, claiming he asked her to lie to one of Enron's partners
about an investment. “It should have been a huge warning flag”, she admits. It merely prompted
her to move to a different part of the empire, Enron International, where she later became a vice-
president. All this time, Harvard graduate Jeffrey Skilling had been growing in influence at
Enron, reinventing what it did for a living to include power trading, selling retail electricity and
even the provision of broadband internet services. In 2001, he became Chief Executive Officer.
By mid-2001, Watkins was working for Fastow again. This time, she stumbled across evidence
of massive accounting fraud. "I thought, I have got to get out of here. I can't work for a company
that is doing this. I'm gonna work up the guts, if I can, to confront Jeffrey Skilling on my last
day”. But soon after, Skilling resigned unexpectedly, for what he said were personal reasons.
So Watkins sent an anonymous memo to the man who'd taken the helm, the founder and
Chairman, Kenneth Lay. Later, she met Lay to convey her fears face to face, Enron began an
inquiry, but it failed to use independent investigators, and her claims were largely dismissed.
Shortly after. Enron, the world's biggest energy trader and once the seventh-biggest company in
America, filed one of the biggest US bankruptcy cases to date. Thousands of workers lost their
jobs and their pensions invested in its shares, and other investors lost billions of dollars. Watkins
never took her concerns outside the company, to the financial regulator or a third party. Why
not? 'When a company cooks the books, it rarely has a chance of surviving, but to do that, it has
to come clean itself, to admit its problems and re-state its financials. I felt here was Enron's
chance to come clean’. Watkins now gives lectures about corporate ethics.
1. According to the passage, who is a whistle-blower?
A. Someone who behaves illegally or immorally in order to get promotion
B. Someone who sells company secrets and commercial information to rival organizations
C. Someone who reveals dishonest or illegal practices at the place where they work.
D. Someone who gives advice to act unethically in their business
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2. What type of wrongdoing did Sherron Watkins expose?
A. She uncovered accounting fraud.
B. She exposed illegal and fraudulent marketing of a drug.
C. She exposed the nepotism of the company.
D. She took the company to court.
3. How did Watkins expose?
A. She supervised the marketing department.
B. Via a memo and a talk to the founder and Chairman
C. She took the company to court.
D. She took the Chairman and the Board of Director to court.
4. What did Enron’s bankrupt cause?
A. Thousands of workers lost their jobs and their pensions invested in its shares.
B. Other investors lost billions of dollars.
C. Both are correct.
D. None of these is correct.
5. What does Watkins give lectures about now?
A. Financial strategic planning B. Corporate ethics
C. Online business. D. Corporate law
PASSAGE 2
Corporate social responsibility and sustainability are ethical choices that companies make
about how they do business. There must be limits to our consumption of natural resources, and
that business activities must take greater account of this impact on society and economies, as
well as the environment in which we live. The corporate sector is in a position of unparalleled
dominance and that the global resources of a rising number of multinational companies dwarf
many of the national economies in which they operate.
Market liberalization and privatization have created new global markets, and extended
the role of the private sector. As a result, businesses are now heavily involved in public policy
issues throughout the world. For these reasons, businesses must be accountable - not just to
shareholders but to consumers, employees and other stakeholders. As corporations continue to
grow in power, their responsibility grows too, increasing the number of ethical considerations
they must face.
These issues present major challenges for the role of marketing. A more holistic,
inclusive approach across the business is required to safeguard the brand’s intangible assets.
Marketers may aim to establish whether they can connect with customers in a way that extends
the marketer’s role beyond merely communicating the offer to prospective buyers.
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In a world where intangible assets and corporate reputation are critical components of
corporate success, it is inevitable that these newer approaches to marketing are becoming
involved with ethics and sustainability issues. There are tangible benefits to be gained in product
development, innovation and competitive advantage when broader sustainability and ethical
considerations are taken into account. But if marketing is about selling more and sustainability is
about consuming fewer resources and producing less pollution, how on earth are marketers
supposed to pursue both goals at the same time?
Perhaps it’s easy to overestimate the depth and scale of the opposition between these
goals - and to underestimate the degree to which marketers can align traditional corporate
objectives with those of ethics and sustainability. Marketing’s core role is to align what the
business produces to what the market wants - the route to increased sales.
It all means that the firm must invest money, people and resources only in the things that
add value for customers. It requires the business not to waste any effort, money or resources
doing things that don’t add value for users. Responsible marketing, in other words, ia actually all
about helping business avoid and eliminate waste, as well as continuing to manage natural or
man-made resources. It is an important role for marketers and one that has not been fully
recognized or appreciated in terms of potential to create innovative solutions.
1. What change does the first paragraph mention?
A. A decrease in the size of certain economies
B. A growth in knowledge of how resources affect economies
C. A decrease in the resources available to companies
D. A growth in the number of choices available to companies
2. According to the second paragraph, businesses are now encountering _______.
A. a wider range of obligations
B. greater public criticism
C. problems they should have foreseen
D. an increase in internal disagreement
3. In the third paragraph, it is suggested that marketers _______.
A. should devise stricter social and financial categories
B. need to attract new categories of customers
C. should have a greater input in the design of products
D. need to expand their areas of activity
4. What development is mentioned in the fourth paragraph?
A. Product design is becoming secondary to ethical considerations.
B. A company's reputation is growing in importance over its brands.
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C. Ethical considerations can lead to effective innovation.
D. Competitiveness is becoming harder to maintain over time.
5. What comment is made in the fifth paragraph?
A. The challenge facing marketing may be impossible in the long term.
B. Marketing activity should move away from traditional goals.
C. Conflicts confronting marketing may be less extreme than expected.
D. Marketing should focus on promoting goods which last longer.
PASSAGE 3
The Social Responsibility of The Corporate Sector
Nowadays, governments and companies need to account for the social consequences of
their actions. As a result, corporate social responsibility (CSR) has become a priority for business
leaders around the world. When a well-run business applies its vast resources and expertise to
social problems that it understands and in which it has a stake, it can have a greater impact than
any other organization. The notion of license to operate derives from the fact that every company
needs tacit or explicit permission from governments, communities, and numerous other
stakeholders to justify CSR initiatives to improve a company's image, strengthen its brand,
enliven morale and even raise the value of its stock.
To advance CSR, we must root it in a broad understanding of the interrelationship
between a corporation and society. Successful corporations need a healthy society. A healthy
society creates expanding demand for business as more human needs are met and aspirations
grow. At the same time, a healthy society needs successful companies. No social program can
rival the business sector when it comes to creating the jobs, wealth, and innovation that improve
standards of living and social conditions over time.
Consider Whole Foods Market, whose value proposition is to sell organic, natural, and
healthy food products to customers who are passionate about food and the environment. The
company's sourcing emphasizes purchases from local farmers. Buyers screen out foods
containing any of nearly 100 common ingredients that the company considers unhealthy or
environmentally damaging. Whole Foods' commitment to natural and environmentally friendly
operating practices extends well beyond sourcing. Stores are constructed using a minimum of
virgin raw materials. Spoiled produce and biodegradable waste are trucked to regional centers for
composting. Whole Foods' vehicles are being converted to run on biofuels. Even the cleaning
products used in its stores are environmentally friendly. And through its philanthropy, the
company has created the Animal Compassion Foundation to develop more natural humane ways
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of raising farm animals. In short, nearly every aspect of the company's value chain reinforces the
social dimensions of its value proposition, distinguishing Whole Foods from its competitors.
1. What has business leaders around the world prioritized first?
A. Microfinance
B. Corporate social responsibility
C. Market research
D. E-marketing
2. Why does every company need a license to operate or tacit or explicit permission from
governments, communities, and numerous other stakeholders?
A. To justify CSR initiatives to improve a company's image
B. To make CSR activities apparent
C. To decrease the external disagreement
D. To decrease the internal disagreement
3. Why do successful corporations need a healthy society?
A. Drives of pressure motivate companies to address CSR.
B. It boosts the need to attract new categories of customers.
C. It is easier to implement CSR activities.
D. It creates expanding demand for business as more human needs are met.
4. What can successful companies do for society that no social program can?
A. Make CSR unique initiatives
B. Upgrade living standards
C. Create the jobs and innovation
D. Cope with social evils
5. How does Whole Foods Market handle with spoiled produce and biodegradable waste?
A. They are poured over the sea.
B. They are trucked to dumping ground.
C. They are trucked to regional centers for composting.
D. They are reproduced and sold with lower price.
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PASSAGE 4
Going global
“The British brand of corporate responsibility is seen as the gold standard”, says Julia
Cleverdon, Chief Executive of Business in the Community, which for 25 years has been
championing the cause in Britain. And it is true that Britain, especially London, has been a hive
of innovation in CSR since the mid-1990s, thanks to a creative cluster of think-tanks, NGOs,
consultancies and incentive bosses. But according to Simon Zadek of Accountability, a think-
tank that has been part of the cluster, this is also a repeat of a familiar British business story:
superb innovation, poor implementation.
By contrast, when American firms get serious about CSR – Wal-Mart on sustainability,
for example – the execution is generally impressive. The Japanese, for their part, see the roots of
CSR in the traditions of Japanese business, such as shobaido (the way of doing business) and
shonindo (the way of the merchant), and Japanese firms pay a lot of attention to the environment
and to relations with local communities. The lead on CSR could even shift from the rich world to
the big emerging markets, each with its own traditions and priorities.
For global companies, this means that a one-size-fits-all approach to corporate
responsibility may not work. What is right for Europe may not be appropriate for India. Such
differences in priorities are bound to grow in importance as the BRIC countries – Brazil, Russia,
India, and China – and other emerging markets gain in economic clout and confidence.
Among the BRICs, Russian companies seem the least interested in the idea of corporate
citizenship, but Brazil has a lively CSR science. Some 1,300 companies are member of Instituto
Ethos, a network of businesses committed to social responsibility. “We are developing a unique
process in Brazil,” says Ethos’s founder, Oded Grajew. Ethos tries to influence public policy and
corporate behavior “to establish a socially responsible market”. A few Brazilian firms – such as
Natura, a cosmetics company, and Aracruz, a pulp and paper producer – are widely known for
their CSR efforts.
India has a long tradition of paternalistic philanthropy. Big family-owned firms such as
Tata are particularly active in providing basic services, such as schools and health care, for local
communities. For the rich, who have prospered as the economy has boomed in recent years,
generous philanthropy is also a way of heading off a backlash against business. A broader culture
of ensuring decent working conditions has been slow to spread.
1. Which statement is CORRECT about British businesses?
A. British businesses tend to have few ideas, but adapt those from other countries.
B. British businesses used have good ideas, but don’t nowadays.
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C. British businesses traditionally have good ideas, but don’t follow through well.
D. British businesses used have good ideas and also adapted from other countries.
2. Which statement is CORRECT about Japanese businesses?
A. Japanese companies have had to adjust their business practices to fit in with CSR.
B. Japanese companies base their CSR on their business customs.
C. Japanese companies tend to dominate local partners.
D. Japanese companies have had to adjust their business customs.
3. What is TRUE about CSR priorities?
A. Differences in CSR priorities are certain to develop around the world.
B. BRIC countries have the same priorities as Europe.
C. The CSR approach tends to be universal.
D. The CSR approach is prioritized for BRIC countries.
4. What is TRUE about Ethos?
A. Ethos is a Russian organization working on social responsibility.
B. Ethos is a Brazilian government department.
C. Ethos tries to influence the government and businesses.
D. Ethos pays more attention to establishing corporate behaviors.
5. What is TRUE about CSR in India?
A. The concept of the rich helping the community is not new to India.
B. Indian business people see CSR as good PR.
C. Tata provides leisure facilities such as cinemas to communities.
D. Tata provides basic services for the rich in the community.
PASSAGE 5
What are business ethics and why should we be concerned with them? In this context
ethics relates to standards of behavior in the workplace and with customers and partners.
Business ethics are often presented in the form of an ethical code of practice dealing with the
treatment of employees, the avoidance of misleading information and the expectation that
regulatory codes are followed to the letter.
Professional ethics covers a vast area of behavior from all fields of business practice.
Financial misbehavior is the most obvious example. Bribery is obviously illegal, but other areas
such as executive compensation, where vast sums of money are paid to corporate bosses, can be
regarded either as pay-offs or rewards. Such payments are widely condemned, but little is being
done to change the law.
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Arguably less headline-grabbing, but perhaps more immediately applicable to the
individual, is the area of ethics surrounding the employer-employee relationship. All sorts of
legislation exist to protect the individual against cases of discrimination in the workplace, such
as sexism, racism and ageism. In larger organizations, unions exist to help fight for the rights of
the workers.
Another area of business ethics involves the handling of information. This could be
within the employer-employee relationship, where an employer or the human resources
department may have certain information about an employee – such as a medical condition –
which cannot be made public. If the employee needs treatment or hospitalization the company
needs to know, but if this could mean their colleagues in some way mistreat them, then it is the
employees’ right to keep that information on a strictly need-to-know basis.
Similarly, sensitive material from the workplace cannot be taken outside the company,
where it might compromise the competitiveness of the organization or weaken its market
position. At the same time, information deliberately released by a company must also be dealt
with ethically. The content of advertisements is covered by legislation protecting the public from
influences such as subliminal messages, the targeting of certain products at children and the use
of appropriate images to sell products. An example of this is the Benetton advertising campaign,
where images such as a bloodied, unwashed newborn baby with umbilical cord still attached, a
priest and nun about to engage in a romantic kiss, and pictures of inmates on Death Row brought
about massive negative publicity.
It is perhaps this example which underlines one of the reasons for having a set of ethics to
follow in business. A sound moral direction not only leads to more effective business practices,
but people are often willing to pay a premium for a ‘feel-good’ product – look at the example of
Fair-Trade products. So not only can a sound ethical policy affect society for the better, but it can
also boost profitability.
1. The ethics of paying money in some form or other are complicated because _______.
A. mismanagement of money is hard to spot
B. financial compensation is legal in all cases
C. it is easy to cover up the payment of large sums of money
D. it is often done under an explanation which is hard to reject
2. According to the text, why are unions necessary?
A. Individuals are not strong enough to deal with large firms.
B. They can fight for workers’ rights in a company.
C. They can make the place of work more attractive.
D. Outsiders can have some form of control over big organizations.
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3. Why might a human resources department not share information within a company?
A. It protects the employees from contamination.
B. Companies can’t divulge information when they feel like it.
C. It offers some protection against mistreatment.
D. It allows individuals a choice.
4. How is the public protected from undue influences in advertising?
A. Certain images are banned in advertising for adults.
B. Children are rarely used in advertising.
C. Advertising must be open to adults and represented correctly.
D. Advertising should use the correct message aimed at the right person.
5. In relation to business, what is meant by the term ethics?
A. The way you talk to people at work
B. The way in which employees conduct their work
C. How a company should behave
D. How individuals are treated at work
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CHAPTER 5: STRATEGIC PLANNING
1. strategic acquisition (n): 27. vision statement (n):
2. strategic integrations (n): 28. portfolio theory (n):
3. strategic partnership (n): 29. rate of return (n):
4. strategic success (n): 30. research brief (n):
5. resource allocation (n): 31. staff turnover (n):
6. a high yielding cash cow (n): 32. start-up capital (n):
7. a real blow to (n): 33. downturn (n):
8. competitive advantage (n): 34. vertical integration (n):
9. competitive edge (n): 35. horizontal integration (n):
10. competitive force (n): 36. potential profitability (n):
11. competitive pressure (n): 37. customer base (n):
12. competitive price (n): 38. skin-deep (adj):
13. competitive threat (n): 39. to adopt/ implement a strategic approach to
14. economic outlook (n): bridge the gap:
15. knock-on effect (n): 40. to communicate (the company’s) aims to
16. monopolies (n): (v):
17. oligopolies (n): 41. to defend the market (v):
18. clear direction (n): 42. to dominate competition (n):
19. contingency plan (n): 43. to exaggerate (v):
20. corporate philanthropy (n): 44. to enhance competitive position (v):
21. fraudulent (adj): 45. to formulate a strategy:
22. hierarchical (adj) => hierarchy (n): 46. to make restraint moves (n):
23. intermediary (n): 47. to oversee (v):
24. licensing agreement (n): 48. to spread risks (v):
25. market follower (n): 49. to sharpen competition (n):
26. mission statement (n): 50. to secure a strategic asset (v):
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Task 1: Match the terms of strategic planning (A-J) with their corresponding
definitions (1-10).
A. Resource B. Strategic C. Competitive D. Competitive E. Supply chain
allocation acquisition edge threat
F. Portfolio G. Competitive H. Fairtrade I. Competitive J. Strategic
theory pressure force partnership
1. The series of people or organizations that are involved in passing products from the
manufacturer to the public
2. A trading partnership based on dialogue, transparency and respect that seeks greater equity in
international trade
3. The way that resources such as finance, people, and assets are used to achieve a particular
objective
4. When two companies work together towards a specific goal
5. When a company buys another for its strategic purposes
6. The force that one competitor can bring to bear in relation to another
7. Something that one competitor may do to weaken another’s position
8. Superior products, performance, etc. that a competitor can offer in relation to others and
which give it a lead over its rivals
9. The list of all suppliers, potential entrants, industry competitors, substitutes and buyers.
10. The idea that when demand for goods or services of one of the companies in the
conglomerates is weak, it would be compensated by stronger demand for those of other
companies in the group
Task 2: Identify the essential elements in strategic planning based on the given definitions (1-
8) and the initial letters.
1. Organizations that are affiliated in some way to the P __ __ __ __ __
government of a country and provide services S __ __ __ __ __
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2. A group of consumers with similar needs or purchasing M __ __ __ __ __
desires S __ __ __ __ __ __
3. A situation where there is only one supplier and no M __ __ __ __ __ __ __

competition.
4. The activity of buying a company’s competitors in their S __ __ __ __ __ __ __ __
industry or companies in other industry in a series of A __ __ __ __ __ __ __ __ __ __
takeovers
5.2. VOCABULARY PRACTICE ON STRATEGIC PLANNING

A. battle B. sharpen D. spread E. formulate

G. communicate H. allocate I. harm J. pioneer
1. The Federal Trade Competition rejected the idea that the combined companies would
_______ competition, noting that the two parties weren’t direct competitors.
2. Consumers should welcome new entrants to the credit market because it widens their choices
and lowers the cost of credit by _______ competition.
3. When one company _______ a successful business, competition inevitably intensifies.
4. Organizations face constant pressures for _______ from both outside the organisation and
from within.
5. A mission statement is meant to _______ an organisation’s aims to customers, employees,
and shareholders.
6. In the process of _______ a strategy, a company will first assess its current situation by
performing an internal and external audit.
7. The company needs to establish specific targets or goals related to putting the strategy into
action, and _______ resources for the strategy’s execution.
8. The good thing about the licensing agreement is that we can _______ the risk.
1. The manager was criticized for being too Eurocentric and failing to pay sufficient attention to
the competitive _______ from Southeast Asia. (Threaten)
2. A company may also own or buy its suppliers and customer companies in a situation or
process of vertical _______. (Integrate)
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3. Yahoo has been shouldered aside by Google, a(n) _______ in online advertising and strategic
planning. (Innovate)
4. A large number of companies have been _______ so far, as they have been making things
invented elsewhere more cheaply. (Follow)
5. Resource allocation is central management activity for strategy _______. (Implement)
6. In formulating a strategy, a company should look at its strengths and _______ in relation to
its competitors. (Weak)
9. There is an increasing demand for chocolate that is produced and sold through Fairtrade
_______, particularly in Europe. (Agree)
10. A corporate strategy is _______ the highest strategic plan of the organization.
(Hierarchy)
1. His lawyers have argued that the transactions were completely above _______ and approved
by the other directors.
A. truth B. board C. fairness D. fact
2. As large chains such as J.C. Penny make _______ moves to stand-alone stores, what should
traditional shopping malls do?
A. defence B. restraint C. strategy D. direction
3. The company set up the new office in Shanghai just two years ago and it’s already our most
successful _______.
A. integration B. corporation C. department D. operation
4. We try to get our _______ across to the customer at every opportunity.
A. philosophy B. technique C. barrier D. consensus
5. The organisation’s _______ statement is a useful starting point for setting realistic objectives.
A. perception B. mission C. assumption D. order
6. The company bought out one of its biggest rivals because it was part of their strategy to
broaden their _______.
A. customer content B. customer basis C. customer base D. buyer base
7. An important part of their strategic planning process is ensuring their _______ are used more
effectively.
A. goals B. assets C. infrastructure D. resources
8. The company is closing one of the plants because they want to concentrate investments on
the most _______ models.
A. cost-consuming B. profitable C. beneficial D. decisive
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9. You can read about the company’s goals and _______ in the company’s mission statement.
A. values B. resources C. beliefs D. turnover
10. Mall stores are under the most competitive _______ that they’ve been under in their 40-year
history, with new discounters and superstores increasingly moving in alongside traditional
malls.
A. encouragement B. prevention C. pressure D. exhaustion
11. BankOne will enhance its competitive _______ and boost its financial growth through the
transactions.
A. placement B. position C. location D. direction
12. If an industry has low entry barriers and is attractive because of its high ______ profitability,
there may be new entrants.
A. potential B. possible C. available D. realistic
13. The company’s acquisition of its rival led to customer defections, due to a _______ in service
quality.
A. decline B. downturn C. satisfaction D. expectation
14. The benefits of strategic planning include ensuring that all members of the organization are
working towards fulfilling _______ and that a company's resources are allocated as
efficiently as possible.
A. private objectives B. common objectives C. common deals D. private deals
15. We work closely with our client to establish the research _______, gathering information
about a product’s history and competitive position, the scale of the project and its likely
timescale and costs.
A. introduction B. brief C. summary D. note
16. Our _______ is to be earth’s most customer-centric company: to build a place where people
can come to find and discover anything they might want to buy.
A. expectation B. hierarchy C. outlook D. vision
17. Observers say Indian companies are ready to accept a lower _______ of return than western
companies in order to secure a strategic asset.
A. scale B. degree C. attribute D. rate
18. Corporate strategic planning is how an organization defines its _______ directions over a
year, three to five years or even longer.
A. present B. future C. past D. current
19. As their strategy is going nowhere, they decided to change their _______.
A. tip B. sector C. itinerary D. tactic
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20. The Chief Executive of Google is adamant that the _______, which allows engineers
freedom to create new products and services, will not change.
A. company dress code B. operation communication C. company culture D. operation habit
21. High-trust organizations benefit from better communications, higher efficiency, greater
employee commitment, and lower staff _______.
A. revenue B. turnover C. unemployment D. dismissal
22. Companies do need a strategy for growth in order to ensure a healthy recovery and gain a
competitive _______ over their rivals.
A. pressure B. price C. threat D. advantage
23. We need a new strategy because the world has changed, markets are unpredictable, and the
_______ is uncertain.
A. economic outlook B. strategic goal C. market leader D. market defence
24. The company needs to exploit their _______ by making the most of their distribution
network and loyalty programme.
A. positions B. details C. strengths D. edges
25. By the end of the strategic planning process, they should have a clear _______ of where they
want the business to go in the future.
A. direction B. injunction C. suggestion D. profitability
26. A company should try to have _______ plans for all the potential risks they can think of.
A. emergency B. accident C. contingency D. crisis
PASSAGE 1
What is corporate planning?
Corporate planning may be described as the careful and systematic taking of strategic
(1)_______. In contrast to a short-term plan like a budget, a corporate plan is concerned with
taking a long-term (2)_______ of future developments and with designing a strategy so that the
organization can achieve its chosen objectives. Many large companies now recognize the
importance of adopting a formal (3)______ to developing a corporate plan. They prepare
'scenarios' or forecasts of future developments in the environment in which they wish to operate,
in order to (4)_______ whether decisions taken in the present will result in success in the future.
In recent years, companies have been developing more (5)_______ techniques with which to
analyze the risks involved in such decisions.
Consider, for example, an oil company deciding if it should invest in a new refinery.
Faced with this decision, involving the (6)______ of millions of pounds on something which
might have a life of 15 years or more, the company must have a sound basis for its decision. In
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this case, it needs to know whether it can be assured of a market for the extra volume of its
(7)_______ products, and it needs to know whether they can be produced profitably. In addition,
it is necessary to study the (8)_______ of crude oil and other supplies needed in the process.
Corporate planning, therefore, involves three main areas: determining the long-term
(9)_______ of an organization, deciding what market potential there may be and (10)_______ a
product policy to satisfy them.
1. A. advantages B. plans C. frameworks D. decisions
2. A. look B. appearance C. opinion D. view
3. A. attraction B. judgment C. approach D. solution
4. A. examine B. develop C. present D. deviate
5. A. modern B. sophisticated C. effective D. illustrate
6. A. outlay B. outfit C. background D. cause
7. A. high-quality B. refined C. defective D. horizontal
8. A. utility B. attainability C. availability D. usability
9. A. objectives B. policies C. resolutions D. prospects
10. A. creating B. enacting C. securing D. formulating
PASSAGE 2
Mobile phones are changing the way we communicate forever. Today’s mobile phone
users are not using their devices just to talk. Now, the mobile phone is a (1)______ for news,
views and entertainment, a window into the world. Alongside the Internet, mobile phones have
become the great communication (2)_______ of modern times and, as such, are threatening to
revolutionize the world of marketing. Industry experts believe that the most successful players in
the (3)_______ marketing era will be those that best connect the power of the Internet with the
flexibility of mobile phone communication. The fact is that mobile phones have a number of
(4)_______ advantages over traditional media in advertising, and other marketing activities,
which, if leveraged, have the potential to make mobile marketing the most (5)_______ tool in the
modern marketers’ arsenal.
The extensive and increasingly data-rich subscriber profiles that mobile operators have at
their disposal are the sort of resource that marketers would be willing to pay good money to
(6)_______. One of these is the broad subscriber base that mobile operators often have at their
disposal. Such a resource is both a valuable (7)______ for the mobile operator and a powerful
and exciting tool in itself. One of the reasons is that phone operators have a much better
understanding of their customers’ (8)_______ patterns than traditional media owners. They can
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even identify the personal hobbies and character traits of subscribers through their use of
content-rich data (9)_______. This kind of resource makes possible the kind of precise customer
segmentation and niche market identification that most marketers can only dream of.
Teamed with this customer (10)______ precision is the ability of mobile phone operators
to use location-based advertising to hit their target audience right at the spot of the first sales
opportunity. On-site advertising can also be combined with information on the customer’s
personal interests and consumption preferences to create a truly precise real-time marketing tool.
1. A. material B. root C. router D. source
2. A. reference B. material C. medium D. basis
3. A. technological B. technical C. digital D. electrical
4. A. unique B. single C. pure D. only
5. A. obeying B. promising C. wording D. trading
6. A. access B. embellish C. exaggerate D. refer
7. A. liability B. loan C. asset D. contingency
8. A. acquisition B. consumption C. integration D. implementation
9. A. assumptions B. consumptions C. conclusions D. services
10. A. profile B. viewpoint C. direction D. provision
PASSAGE 3
Mind the gap: Managing customer expectations

The cause of most customer complaints can be seen as a (1)_______ between what they
were expecting and what they in fact received. Phrases such as “I’m disappointed” or “I did not
expect” abound in official letters of (2)_______. This means that much of a company’s
promotional activity needs to (3)_______ the management of customers’ expectations.
Logically, it can therefore be a good idea to (4)_______ customers from expecting too
much. Certain companies do manage to operate in this way; budget airlines are a clear example.
Their “no frills” label means that customers’ expectations are (5)_______ in return for cheap
fares. However, there are relatively few businesses which can use low prices like this. Most
businesses need to emphasize the (6)_______ of their product to attract customers, which must
lead to (7)_______ expectation.
Mismatch can also exist within a company between the (8)_______ set by management
for dealing with customers and what customers actually receive from staff. In this case, it is often
due to poor training or inappropriate technology. The whole issue has been investigated by
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Parasuraman et.al, who identify a total of four possible gaps between expectations and
(9)_______, and the causes of each one.
Another issue is that customers’ expectations are not only created by the company in
question. People have natural tendency to make (10)_______ and feel aggrieved if others have
obtained more for their money. This means that when new products enter the market, they set a
new benchmark for customer expectations.
1. A. mismatch B. contract C. disagreement D. opposition
2. A. application B. resignation C. complaint D. credit
3. A. incorporate B. perform C. accompany D. involve
4. A. disregard B. discourage C. disconnect D. discharge
5. A. received B. repeated C. reduced D. restructured
6. A. merits B. attributes C. itineraries D. monopolies
7. A. agreed B. raised C. enlarged D. targeted
8. A. features B. requirements C. levels D. standards
9. A. reality B. existence C. truth D. actuality
10. A. profits B. viewpoints C. comparisons D. complaints
PASSAGE 4
Faced with a bewildering choice of coffee brands, today’s (1)_______ would do well to
investigate a little deeper in order to make their choice more informed. The cup of coffee they
are enjoying in any one of a chain of high street coffee (2)_______ has almost certainly been
imported – most of the world’s coffee is grown by a small number of countries, such as Brazil, or
in Africa: Burundi, Kenya and Ethiopia. At each step of the way, despite being a single
(3)_______ commodity, its value has increased dramatically. Involving different (4)_______ of
transport and necessitating transportation across continents and oceans, this product has a
surprisingly complex supply chain. The person responsible for (5)_______ each stage in the
supply chain process is the Logistics Manager, who needs to handle the entire process. This
manager’s job involves overseeing the transportation of the coffee from a major (6)_______
distribution center to a port, from where the commodity is shipped abroad for processing,
packaging and local distribution by one of the large roasting companies. Here the product is
sorted and redirected to the next place in the supply chain. The key point is that the industry is
largely vertically (7)_______; in other words, a small number of powerful operators control each
stage in the supply chain process after the coffee is initially (8)_______ from the grower. And
the most likely to receive the least money in the chain are those at the (9)_______: the growers
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and harvesters. These include in particular those smallholder producers who grow 70% of the
world’s coffee, which they do on tiny farms of less than 25 acres. If the coffee is (10)_______
fair trade, however, minimum standards of personal and environmental welfare apply, meaning
those powerful operators are less welcome. Buyer beware!
1. A. marketer B. consumer C. dealer D. retailer
2. A. consumers B. buyers C. ventures D. creditors
3. A. buyable B. enjoyable C. considerable D. tradable
4. A. codes B. modes C. tactics D. factors
5. A. overseeing B. guarding C. protecting D. adopting
6. A. domestic B. inbound C. regional D. indoor
7. A. transported B. developed C. assisted D. integrated
8. A. purchased B. achieved C. invested D. formulated
9. A. least B. end C. bottom D. best
10. A. classified B. certified C. identified D. modified

PASSAGE 1
Strategy is about developing competitive capabilities and finding a competitive position
within the marketplace. In international markets, the competitive capabilities that the firm has in
one country may not be the same as those it has in another country: equally, the competitive
position a firm adopts in one country may be different from that held in another. For example,
McDonald’s is regarded as a standard fast-food brand in its native USA, but in India and other
emerging markets it is marketed as a premium brand. Interestingly, India is one of the only
countries in the world where McDonald’s doesn't sell hamburgers, Big Macs or any other beef
products. Being a predominantly Hindu country where the cow is sacred, this would offend
cultural sensitivities.
Firms wishing to enter a given overseas market will need to consider the same
environmental factors as they would consider periodically within their home markets, but a key
issue in global marketing is the degree to which the company is prepared to standardize its
products and marketing approach.
Firms might decide on a globalization strategy by which the company's products,
attitudes, brands and promotion are standardized throughout the world, with global segments
being identified, or conversely might decide on a differentiation strategy whereby the company
adapts its thinking (and marketing) to each new market. The companies which are most likely to
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seek a globalization policy are those whose products are not culturally specific, and whose
promotions can be readily understood throughout the world.
Research shows that relatively few companies standardize their advertising. Of 38
multinational companies surveyed, 26 said that they used standard advertising, but only 4 of
these were completely standardized. The others varied from limited standardization (perhaps
only the corporate logo retaining the same) through limited standardization of key elements
(such as packaging), through to standard methodologies and approaches with minor adaptations.
1. What two aspects of a company's strategy can change depending on the country market it is
operating in?
A. Competitive capabilities and globalization strategy
B. Competitive capabilities and competitive position
C. Competitive position and globalization strategy
D. Globalization strategy and global marketing
2. What is unusual about McDonald’s India compared to McDonald’s elsewhere?
A. McDonald’s India is regarded as a standard fast-food brand.
B. It is marketed as a premium brand.
C. They don’t sell any beef products such as hamburgers or Big Macs.
D. India is one of the countries in the world where the cow is sacred.
3. What two types of broad strategy can firms follow across different country markets?
A. Globalization strategy and differentiation strategy
B. Globalization strategy and globalization policy
C. Differentiation strategy and globalization policy
D. Globalization policy and environmental factors
4. Which companies have more chance of success by taking a standardized approach to strategy
across different country markets?
A. Companies whose promotions are easily understood.
B. Companies whose products are not culturally specific.
C. Both are correct.
D. None of these is correct.
5. How common is it for firms to completely standardize their advertising across different
country markets?
A. Not common B. Common
C. Quite common D. Very uncommon
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PASSAGE 2
What is strategic marketing planning?
Strategic marketing planning addresses the company’s long-term goals and objectives
rather than just tactics for marketing products and services. Of course, tactical marketing
planning is just as essential, but it comes at a later stage in the overall process. The strategic
planning stage comes first and involves taking a comprehensive overview of all the company’s
sales and marketing activity. It starts with three questions. Where is the company now? Where
does management want the company to go? What should the company do to improve its
objectives? A good approach to take to the strategic planning process is to separate it from the
distractions of the day-to-day decisions about marketing and sales activities, and to perform an
annual comprehensive review of markets and opportunities, matching this against the overall
direction of the company and its long-term strategic goals.
Strategic marketing planning involves looking at the company from the customer’s point
of view. You need to keep coming back to the particular needs or problems which cause
customers to purchase the company’s goods and services. You can then set this against the
improvements or benefits to the customer’s personal or business life the company’s products can
bring. Can these benefits be enhanced or improved? You need to make a detailed study of those
segments of the market which are attracted to your company’s products and services. In order to
get as much information as possible, this should involve segmenting the market in different
ways: for example, geographically, demographically and psychologically. To build up a
psychological profile of your customers in consumer markets factors such as their overall
lifestyles and attitudes need to be considered. What are the values and motivations that lead
people to decide to purchase your products?
Obviously, it is not enough just to gather information; you need to know how to interpret
it and to understand its possible implications. For example, if you see and understand the trend
for business process outsourcing early enough, you can decide what the consequences for you
might be as a provider of certain types of services and make decisions accordingly. To take
another example, the aging population bubble creates a general increase in demand for a wide
range of products for this age group and profile. It creates market niches for specialized products
that are large enough to make new product development and marketing worthwhile. The same
shifts can also reduce demand for other products. These long-term shifts in markets are
frequently misinterpreted as short-term competitive pressures or fluctuations in the economy.
Without a strategic marketing plan a company could waste resources or miss an opportunity. It’s
difficult to estimate the cost of missing an opportunity at the time it happens; it usually only
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emerges several years later when a competitor opens a new factory or enters a new market and
their revenue starts to accelerate and overtake that of its competitors. In such situations it is easy
to conclude that the annual cost of a strategic marketing plan review is minuscule compared to
the revenue, market share and profitability it can generate.
1. What is the relationship between strategic and tactical marketing planning described in the
first paragraph?
A Tactical marketing planning occurs before the strategic planning process.
B. Tactical planning is less concerned with detail than strategic planning.
C. Strategic planning comes before tactical planning and involves taking a comprehensive
overview.
D. Strategic planning is more important than planning tactics in business.
2. What is the most effective way to undertake a strategic marketing plan?
A. You shouldn’t separate strategic marketing planning from decision-making related to sales.
B. You should undertake your annual view from day-to-day sales and marketing decision-
making.
C. You shouldn’t let the annual review distract you from day-to-day sales and marketing
activity.
D. You should link your annual review to the day-to-day decision-making process.
3. How should companies construct a psychological profile of their customers?
A. By segmenting the market geographically and demographically
B. By considering the particular need or problem of the customers
C. By analysing the particular benefits the company’s products and services
D. By looking at customers’ lifestyles and attitudes, their values and motivations
4. In what ways are long-term shifts in markets frequently misinterpreted?
A. There is so much competitive pressure that people don’t notice them.
B. People believe they are caused by short-term fluctuations in the economy.
C. People always believe that they will create new markets for niche products.
D. People are worried about missing opportunities as they don’t analyze them properly.
5. What does the author suggest might be the secondary effect of the ageing population bubble?
A. To create new markets for niche products for other sectors
B. To increase the demand for niche products globally
C. To reduce demand for certain other types of products
D. To make new product development more worthwhile
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PASSAGE 3
Selecting your business name
The right business name is important. If you choose the wrong one, you might end up
with something that sends all the wrong messages. To be successful, your business name needs
to define your identity and say what's special about what you are offering. Think about the
market you want to sell into, and why your customer will prefer to buy your R product or service
rather than someone else's. A good business name is one that tells customers what to expect.
Illiterate names have caught on everywhere; that is names that involve deliberately
misspelled words. Kwik-Fit, the company that promises to fit car parts speedily, was one of the
first in the UK. The name was the brainchild of Kwik-Fit's chief executive, who, as a schoolboy,
earned extra pocket money cleaning ovens. He advertised himself as Kookers Kleaned! Some
people grumble about these misspellings, arguing, for example, that children will copy them, but
even these purists don't hesitate to buy an ice cream from Phun Phlavours! These misspellings
work because they catch the eye. The trouble is, as more and more are invented, they lose their
impact.
But unusual names are not always the most effective, Names like Tie Rack or Body Shop
which just say what your company is about can work just as well. They are short, and they have
an honest no-nonsense ring to them. Sometimes using a personal name can achieve the same
effect: Laura Ashley projects a gentle and elegant image that makes the customer feel
comfortable about buying that company's products.
If you are providing a service, decide whether your company name should describe your
customer's problem or your unique solution to the problem. For example, a vehicle breakdown
service could call itself Panic Breakdowns, which only serves to emphasize the negative state of
mind of the customer, or Instant Rescue, which sends out a reassuring message that help is at
hand. Which name would you select if you had a burst water pipe: Flood Warning or Peace of
Mind?
Consider too the impact your name will have when people hear it or read it. What effect
does it have when spoken over the telephone? Snappy Happy Snaps may describe your
photographic agency, but it sounds ridiculous over the phone. When your name appears in
Yellow Pages or similar directories, usually amongst a hundred others offering a similar service,
you want yours to be the one that catches the eye. One trick is to ensure that the first letter of
your name appears early in the alphabet. A business in Finland Called itself by the meaningless
name Quello, simply because there is no letter Q in Finnish, so Quello was the only entry in the
directory under that letter!
85
1. According to the writer, a business name is a good one if it _______.
A. identifies your market needs. B. avoids confusion with other companies
C. creates different kinds of image D. persuades people to use your company
2. What is the writer's attitude to the use of illiterate names?
A. They have been used so much that people no longer notice them.
B. They are bad because children will learn wrong spellings.
C. They are good because people find them amusing.
D. They fail to describe the service or product accurately.
3. What does the writer like about simple company names?
A. They accurately describe the product. B. They inspire confidence.
C. They give a personal touch. D. They are easy to remember.
4. Which name, Flood Warning or Peace of Mind, would the writer probably prefer?
A. Flood Warning because it shows the company understands the problem.
B. Peace of Mind because Flood Warning sounds more serious than a burst pipe.
C. Peace of Mind because it is designed to comfort the customer.
D. Flood Warning, because few people know the expression “Peace of Mind”.
5. According to the writer, you can help to make your company name stand out by ________.
A. using an initial letter that gets your name into the front of directories
B. making sure the name of your company has an unusual letter in it.
C. choosing a short name that people can say easily over the phone.
D. putting your advertisement in several different directories
PASSAGE 5
When it comes to global communications and advertising, multinational companies want
to opt for a standardized approach because of the obvious benefits of economies of scale.
However, what they gain by economies of scale, they lose in effectiveness. For a long time,
international advertising strategists believed that emotional or feelings-based appeals would
travel better than thinking based appeals, because of the assumed universality of human values
such as love and happiness. Analysis of advertisements in international media such as
Newsweek, Business Week and CNN shows that this is the approach that has been taken by U.S.
companies in particular. In reality, however, the messages being communicated are less universal
than is commonly assumed, more a reflection of the home country's own value system. As with a
company's identity and its brand strategies, advertising must also communicate values that match
those of the receiver rather than the culture of the producer. Advertising is most effective when it
succeeds in reflecting the culture of the consumer it is trying to reach.
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A communications and advertising strategy that is defined according to each and every
distinct market may make Western marketers nervous, but in the end, it earns money by being
more effective than taking a one-size-fits-all approach. If you want to reach consumers in
different parts of the world, my advice is always the same: Speak to them in a way they
understand, that fits their communication style. The new paradigm is cultural segmentation:
defining markets based on their cultural specifics, and then developing cultural strategies. A
strong corporate identity needs to go hand in hand with cultural sensitivity. Instead of being
`consistent', companies should be pragmatic and adapt to the cultural mindset of consumers. This
is the future of global strategy.
1. Why do multinational companies want to standardize their marketing approach across
different country markets?
A. For economies of scale benefits B. For a loss in effectiveness
C. For certain scale benefits D. For fear of losing
2. Why do international advertising experts use messages based on emotions and feelings?
A. They want to communicate via feeling-based messages.
B. They think that thinking-based practices are better.
C. They think that these messages are universal.
D. They think that consumers will appreciate the messages.
3. According to the author, how universal are feelings and emotions such as love and happiness?
A. This is the approach that has been taken by U.S. companies.
B. They are not very universal
C. They reflect the value system of the home country
D. B and C are correct.
4. How can companies best communicate their message in international markets?
A. Try to be more universal for international acceptance
B. Speak to consumers in each country in a way they understand.
C. Communicate the values to the producers
D. Try to reflect the culture of the producers
5. What marketing strategy does the author propose for international companies?
A. Cultural marketing
B. Cultural consistence
C. Cultural segmentation
D. Cultural analysis
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English Course Book. Cambridge: CUP.
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Exercises On Business English (Ban Day Hoc) - Book 2

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BANKING UNIVERSITY HO CHI MINH CITY

FACULTY OF FOREIGN LANGUAGES

HO CHI MINH CITY, 05/202

A. Customer B. Niche C. Mystery D. Customer E. Customer

A. communicate B. promote D. broadcast E. sustain

Task 4: Fill in the blanks with the correct word forms.

Task 5: Choose the correct option for each sentence.

Fill in the blanks with appropriate words to complete the passage.

The effectiveness of advertising

7. brand experience (n): kinh nghiệm/trải nghiệm của KH

2.1. KEY TERM DEFINITIONS

A. Brand B. Brand extension C. Brand loyalty D. Own brand E. Branding

A. distinguish B. dilute D. exist E. manage

Task 4: Fill in the blanks with the correct word forms.

Fill in the blanks with appropriate words to complete the passage.

Companies spend large amounts of money researching (1)_______ markets and

Fill in the blanks with appropriate words to complete the passage.

Fashion brands today

A. Overdraft B. Bank charges C. Expiry date D. Pension plan E. Credit limit

2. All the restrictions that the bank places on their borrowers

3. What customers pay the bank in return for its services

9. The maximum amount that a bank will lend to a customer

6. Amount of money that people have to spend regularly O __ __ __ __ __ __ __ __

7. The money spent on everyday needs such as food, L __ __ __ __ __

8. The long-term loan lent to the borrower to buy properties M __ __ __ __ __ __ __

9. An instruction to a bank to pay varying sums of money to D __ __ __ __ __

10.A very small loan to individuals or families in order to M __ __ __ __ C __ __ __ __ __

3.2. VOCABULARY PRACTICE ON MICROFINANCE

A. protect B. transfer D. charge E. access F. float

3.3. PASSAGE COMPLETION

Fill in the blanks with appropriate words to complete the passage.

Fill in the blanks with appropriate words to complete the passage.

4.1. KEY TERM DEFINITIONS

A. Proponent B. Accountability C. Ethical stance D. Whistleblower E. Social

6. A supporter who argues in favor of something

7. A choice between two actions that might both be morally wrong

8. A stated opinion about the right thing to do in a particular situation.

2. Something people do or say as a way of hiding their real S__ __ __ __ __ __ __ __ __ __

5. The act of a corporation or business promoting the C __ __ __ __ __ __ __ __

8. A rule for moral behaviors in a particular area E __ __ __ __ __ __

4.2. VOCABULARY PRACTICE ON CSR

A. cap B. offset D. mislead E. adopt

1. Organisations have benefited by _______ strategic approaches to environment and social

Task 5: Choose the correct answer for each sentence.

Fill in the blanks with appropriate words to complete the passage.

Creating strong corporate image

Fill in the blanks with appropriate words to complete the passage.

4. When two companies work together towards a specific goal

5. When a company buys another for its strategic purposes

7. Something that one competitor may do to weaken another’s position

3. A situation where there is only one supplier and no M __ __ __ __ __ __ __

5.2. VOCABULARY PRACTICE ON STRATEGIC PLANNING

A. battle B. sharpen D. spread E. formulate

Fill in the blanks with appropriate words to complete the passage.

Mind the gap: Managing customer expectations

Fill in the blanks with appropriate words to complete the passage.

5.4. READING COMPREHENSION

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6. Amount of money that people have to spend regularly O

7. The money spent on everyday needs such as food, L __

8. The long-term loan lent to the borrower to buy properties M __

9. An instruction to a bank to pay varying sums of money to D __

10.A very small loan to individuals or families in order to M C __

2. Something people do or say as a way of hiding their real S

5. The act of a corporation or business promoting the C

8. A rule for moral behaviors in a particular area E

3. A situation where there is only one supplier and no M __