---

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 UNIT ffi

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-IrGl

I FOCUS
1. 'What do you hope to find when you travel? Do you like the comfort
of familiar surroundings, or do you enjoy experiencing new things?

2. Are there other stores besides Starbucks@ that you can now find all
over the world? Why do people like to go to these stores?

3. Multinational chain stores have caused controversy because some

people believe that these stores promote the "globalization of
culture" (the sameness or the Americanization of culture) all over
the world. What do you think about this issue?

t MYrr:¡l:lirlab

@
I
I READING ONE H(

-
",j* ü+!:ii-i i-.i:\ :"'
Read the advice to future business owners. Try to understand from the context the meanings
of the boldfaced words. Then look for their synonyms in the box and write the correct forms
on the lines following each piece of advice.

NOUNS ADJECTIVE VERBS

L^
generosity uninteresting U€ ^,.^^^^^f,.t
óUUU€OOIUI

permission contribute to the progress or growth of

problem go beyond, exceed
salary imagine, see in the future
special attention keep
mention
pressure those in power for support

Advice on Starting a Business

1. It's not easy to succeed in business. According to the U.S. Department of Commerce,
out of every 10 small businesses that opened last year, only seven pros¡tered. Only two
will remain after five years.
were successful
2. How can you get ahead of the competition? First, you need to develop a business plan
and clearly envisage how you will make money, what your expenses will be, and what
will make your business unique or superior.

3. After you develop a strong, thought-out plan, it's time to deal with finances. Best
advice: Promote your business by using your own savings or asking for a loan from the
bank.

4. It's better to scrape together your last cent than to borrow from family or friends, even
if they give you license to do so. (Even if you are able to pay them back, it won t be for
years, and this can create conflict.)

128 UNIT 5
 5. If possible, take a partner. Many people find that a partner helps them retain tbeir
enthusiasm in difficult times and reminds them of what is important. No one can do
everything.

6. Location, location, location! Choose your community carefully and, once you are a

there, steer clear of any issuethatdivides the people of the community.

rings
)rms
7. Dont undercharge, but be flexible about pricing; You need to receive appropriate
compensation for your work in order to make your business pay.

8. Do workers expect health insurance, paid holidays, other beneflts? A certain amount of
rof
beneyolence in an employer helps to maintain staffloyalty and efficiency.

9. Dont fail to ask for business benefits! Lobby for tax credits and zoning privileges with
the local government.
(
10. Be sure to maintain a positive image of your company. Mindless, insipid advertising
can make clients turn awaY.
:tiarae,
)iir- rtvo
11. Hire an accountant to help with contracts and taxes. The ernphasis should be on
keeping clear records and saving important papers.

,'...*
ird uhat 12. Remember that running a business takeslong hours, a willingness to learn, and lots
of luck. Business studies cite many more business flops than successes in current
conditions.

3:st
i:: ironr the 13. However, the rewards of success-being your own boss, surpassirgyour own
expectations, feeling a sense of accomplishment-are more than worth the risks

'-¿nds. er-en
\'\-ri1t be for
rtrr*rrrrrrrrr¡rñrrrrr!rr cOTO My§nglishLab rOR rvlOne VOCABULARY PRACTICE.

Size Matúers in Business 129

 PREVIEW
You are going to read an article about how an entrepreneurr created a successful business.
Read the question and discuss your answer with a Partner.
I

Is a CEO with a humanitarian vision more or less likely to succeed in business than a CEO
without such a vision?

Keep your discussion in mind as you read this article from lhe Economist.

I entrepreneur: someone who starts a company, arranges business deals, and takes risks in order to mak¿
a profit

HOWARD SCHULTZ'S FORMULA FOR STARBUCKS@

The Econamist

STARBUCKS@ knows it cannot ignore ("Bean Stock") and comprehensive health

its critics. Anti- global ization protesters have insurance. For Mr. Schultz, raised in a
occasionally trashedl its coffee shops. Posh2 Brooklyn housing
neighborhoods in San Francisco and London project,3 this health
have resisted the opening of new branches, insurance-which
and the company is a favorite target of now costs the
Internet critics. Mr. Schultz is watchful, but company mofe
relaxed: "We have to be extremely mindful than coffee-is a
of the public's view of things. . . . Thus far, moral obligation.
we've done a pretty good job." At the age of seven,
he came home to
i' The reason, argues Mr. Schultz, is that
the company has retained a "passion" find his father, a

for coffee and a "sense of humanity." truck driveL in a

Starbucks@ buys expensive beans and pays
the owners-whether they are in Guatemala
or Ethiopi average of 23o/o above
the market price. A similar benevolence
applies to company employees. Where other
corporations try to eliminate the burden
of employee benefits, Starbucks@ gives all
employees working at least 20 hours a
week a package that includes stock options
plaster cast, having
slipped and broken an ankle. No insurance,
no compensation, and then no job.
li Hence, what amounts to a personal
crusade. Most of America's corporate chiefs
steer clear of the sensitive topic of health
care reform. Not Mr. Schultz. He makes
speeches, lobbies politicians, and has even
hosted a commercial-free hour of television,

1
trashed: completely destroyed
2
posh: elegant, expensive (e.g., rich people live in "posh'neighborhoods)
3
housing project: an apartment development subsidized by the government for low income families

130 uNrT 5
 arguirtgfor the reform of a system that
he thinks is both socially unjust and a
burden on corporate America. Meanwhile,
the company pays its workers' premiums,a
even as each year they rise by double-digit
percentages. The goal has always been "to
build the sort of company that my fathet
was never able to work for." By this he
means a company that "remains small even
::¡ke as itgets big," treating its workers as
individuals. Starbucks@ is not alone in its
emphasis on "social responsibility," but the
other firms Mr. Schultz cites off the top of
so his head-Timberland, Patagonia, Whole
I Foods-are much smaller than Starbucks@,
which has 100,000 emPloYees and 35
million customers.
=¡1th
Li 4 today's Americans are no longer condemned
Indeed, size has been an issue from
the beginning. Starbucks@, named after the
first mate in F{erman Melville's A/Ioby Dick,5
was created in 7977 in Seattle's Pike Place
market by three hippyish6 coffee enthusiasts.
Mr. Schultz, whose first "decent cup of
coffee" was in 7979, ioined the company
in 7982 and then left it in 1985 after the
founding trio, preferring to stay small, took
fright at his vision of the future. Inspired by
a visit to Milan in 1983, he had envisaged a
:1-a1lce, chain of coffee bars where customers would
chat over their espressos and capuccinos'
Mr. Schultz set up a company he called "I1
=l'sOnal
: :hlefs Giornale," which grew to a modest three
health coffee bars. Sornehow scraping together
:rakes
rS even
='.-ision,
premiums: money amounts paid to maintain insurance policies
Moby Dick:one of the most famous American novels, written by Herman Melville (1819-1891)
hippyish: representative ofthe "hippy" generation ofthe 1960s; inclined to be unconventional
blanch at: suddenly become "pale" because you are shocked
§3.8 million dollars, he bought Starbucks@
from its founders in 1987.
l) Reality long ago surpassed the dream.
Since Starbucks@ went public itt 7992'
-fhe
its stock has soared by some 6,400%.
company is now in 37 dlffetent countries. l
China, which has over 200 stores, will
be the biggest market after America, and l
Russia, Brazil, and lndia arc all in line to
be colonized over the next three years. The
long-term goal is to double the number of
American outlets to 15,000-not least by
opening coffee shops along highways-and
to have an equal number abroad.
I No doubt the coffee snobs will blanch
at7 the prospect. Yet they miss three points'
The first is that, thanks to Starbucks@,
to drink the insipid, over-percolated brew
that their parents endured' The second,
less recognized, is that because Starbucks@
has created a mass taste for good coffee,
small, family-owned coffee houses have also
prospered.
The most important point, however, is
that Mr. Schultz's Starbucks@ cultivates a
relationship with its ctlstomers. Its stores
sellcarefully selected (no hiphop, but plenty
of world music and iazz) CD-compilations.
Later this year, the store will promote a new
fllm and take a share of the profits. There
are plans to promote books. Customers can
even pay with their Starbucks@ "Duetto"
Visa card.
(continwed on next Page)
Size Matters in Business 131
 says' "I think we
scare that
a failure). Mr' Schultz to
i. Apart from sorne health - ;#';; ü"""tu frorn our customers.
with nicotine' there i' if'ut each Starbucks@
would bracket coffee do more." The key "a third Place"'
*hY Starbucks@
is no obvlous 'uu'o"ambitious ;;;;; snout¿ remain
its plans fuifilling thl same
I
however
should fail' the occ¿sional
;;;;.*"rne and work' houses that so
and howev"' ml"o"teived "Joe" flopped ;;i;";; ,,""se Italian coffee
proiect 1u ^ug;iÁ
ca[ed inspired lnim 23 Years
ago'
toO
after three i"tr"t'-l"A 'tr1W'ug11:
Pepsi' was also
drink, developeá with

ffies[q E#ffi&s
ffi§loot<againatthePreviewonPagel30.Howdidyourideashelpyouunderstandthe
article{

ffiAn,*"reachofthequestionsinoneortwosentences.Shareyouranswerswitha
Schurtz influence
his
and experiences of
cEo Howard
To* did the famrly bacsround
company's Policies?

practice?
puts "social responsibility" into
that Howard Schultz
2. What are two ways

132 UNIT 5
 3. How does size influence Starbucks@ success?

to

rme
tso

4. What is the'toffee culture" of Starbucks@?

I

:he

-. j .;'i ii 1.
lnce

All the statements below are false. Correct them in the space provided. Then compare your
answers with a partner's.

1. Howard Schultz was the founder of Starbucks@.

Howard Schulú. ioined the comganv in 1982, 11 vears after itwas founded.

2. Since he joined the compan¡ Schultz has been its unquestioned leader.

iice ?
3. Most corporate leaders speak out on the topic of health care reform.

4. All workers in Starbucks@ stores get health insurance from the company'

5. Giving employees health benefits does not cost Schultz very much.

(continued on next page)

Size Matters in Business 133

 6. Starbucks@ pays $23 more than the market price for coffee beans

I
7. tlne biggest market for Starbucks@ is China.

8. There are now 15,000 Starbucks@ outlets in the United States.

9. The name Starbucks@ comes from the name of one of the founders of the company.

10. Starbucks@ is the only U.S. corporation that emphasizes social responsibiliry

1:,i :....i ji,. ''1 I l'.:

;,. i' f i. i-: f r: :,..' I l:
INTERPRETING THE AUTHOR'S INTENTION
When authors put information within dashes, they usually have two possible reasons;
. to provide additional information as support
. to express an opinion related to the focus ofthe sentence.
Look at the examples and read the explanations.
1. Starbucks@ gives a benefits package-including health insurance-even to part-time
employees.
Author's intention: a. to provide additional information OR b. to praise Starbucks@ for
giving this package
The answer is a. The author is simply providing more information about the package.

2, "lhelong-term goal is to double the number of American outlets to 15,000-not least

by opening coffee shops along highways-and to have an equal number abroad"
Qtaragraph 5).
Author's intention: a. to provide additional information OR b. to show that Starbucks@ is
very determined to expand
The answer is b. It is very unusual to have first-class coffee shops on highways, but opening stores
there is an important part of Starbuck's effort to expand.

134 UNIT 5
- Read these sentences from the article. Decide what the author's intention is in using dashes.
Circle o or b. Compare your answers with a partner's.
1. "For Mr. Schultz, raised in a Brooklyn housing project, this health insurance-which
now costs the company more than coffee-is a moral obligationi' (paragraph 2)

Author's intention:

a. to provide additional facts for the reader

b. to show how expensive, yet necessary, this moral obligation is

2. "starbucks@ buys expensive beans and pays the owners-whether they are in Guatemala
or Ethiopia-an average of 23o/o above the market pricei' (paragraph 2)
lil\
Author's Intention:

a. to provide the names of two countries that export coffee beans

b. to show that Starbucks@ doesn t take advantage of poorer countries by paying less for
coffee beans

3. "starbucks@ is not alone in its emphasis on'social responsibility, but the other firms
Mr. Schultz cites offthe top of his head-Timberland, Patagonia, Whole Foods-are
much smaller than Starbucks@, which has 100,000 employees and 35 million customersl'
(paragraph j)
Author's Intention:

a. to provide examples of other firms that emphasize "social responsibility"

b. to give publicity to these companies that also demonstrate "social responsibility"

-tuÍIe
¡ xFRffi§S #Plhfi*r'§s
bucks@ for Jiscuss the questions in a smallgroup. Share your group's conclusions with the rest of the
: ass.

l. Do you agree that businesses have a responsibil§ to their employees? Would you like
to work for a company like Starbucks@? How important would its social policies be in
not least influencing your decision? What other factors would influence your decision?
-1 '

2. Do you think employees have a responsibility to the company they work for? If so,

itarbucks@ is explain what kind of responsibility.

3. Starbucks@ 'diversifies" by selling products other than coffee, such as CDs and books.
pening stores Do you agree that diversification is a good business practice? Why or why not? Can such
a practice have its limitations?

rürr§rü¡Erxrsr Go IO MyEnglishlab fo G,IYEYoUR OPTNIONABoUTANoTHER QUEST¡oN.

Size Matters in Business 135

 READING TWO

READ
the reading and think about the questions'
ff loot< at the boldfaced words and phrases in
meanings of?
1. Which words or phrases do you know the

2. Canyou use any of the words or phrases

in a sentence?

notice the boldfaced vocabulary'

El
E
Read the article from the New York Times. As you read,
Try to guess the meanings of the words
through the context'
-

as shoPPers deseft local merchants for

the big-box store'
Wal-Mart is under attack for paying too
little,
Local newsPaPers lost some of their best
adveftisers'
providing benefits that are too small, and even exPloiting said Alex
"That maY not influence news coverage,"
illegal immigrants' Laws have been wriüen
with
Wal-Mart in mind and more are being
proPosed. The Jones, director of the Shorenstein Center on
"but I
company maY not appreciate the honor, but
its Place in Politics, and Public PolicY at Harvard,
government for
the political debate reflects its revolutionarY effect
on the 1lou will see manY
editorials blasting the

American econom1l Put simPlY, the big winners

as the taking on Wal -Maft." The comPanY 's ability to negotiate
from suPPliers, some
good deals
economy changes have often of which would Probably go out of
been scarY to manY, PadicularlY
business if Wal-Mart walked
to those with a stake in the old away , has also created anxietY
economic order being torn and resentment, both among the
asunder. "Twice as many suppliers and among merchants
Americans shoP In Wal-Mart who comPlain that Wal-Mart gets
over the course of a ¡lear as beüer deals.
in the last Presidential ¡
voted It
has infuriated unions bY
election, " said H. Lee Scott, Jr.
* opposing the organization of its
the companY's chief executive. employees-even to the point of
Wal-Mart's success reflects its voted for a
ability to charge less for a wide varietY of
goods. That closing a Canadian store whose workers
not related to
the economy union. (The company said the closure was
arguably has reduced inflation and made have been forced to
managing that ln some locations , unions
more efficient. It has introduced innovations in at other stores
agree to reductions in wages and benefits
inventory and shiPPing goods. to comPete with the
to others. because they must lower costs
But Wal-Mart's success has brought Pain
The company has been blamed for destroying
downtown giant.l

ffiarketemployeeSbelongtounionsthatnegotiatecollectivelywithemployersforhigherwages
cut wages in order to compete'
oftón have t0
and better working ,ond1t1ñ, wal-Mart's competitors

136 UNIT 5
- Wal-Maft@ has been
4 0pponents say some Wal-Marto employees are paid
wages s0 low that they can still qualify for government
Medicaid2 health insurance and call that a government
subsidy for a company that is forcing down pay for
workers at other comPanies.
)ns 5 But the fact that Wal-Mart@ has more shoppers than
any politician has voters shows that many of those
workers-and many people higher on the income
scale-find its prices irresistible. That group no doubt
includes some of the company's crittcs.
on the defensive in some
legislative chambers. Maryland adopted legislation intended
to force the company to spend more on health insurance,
but that was struck down by a federal judge. Chicago
passed legislation to force the company to raise its wages.
Wal-Mañ@ is one of the most successful companies
in the world, but last week it repofted a decline in
quarterly profits for the first time in a decade, pañly
because of problems with its international business and
partly because competitors are getting better.

ularY.
poor
2 Medicaidt a government program, paid for by taxpayers, that provides health care to the

':;
ili ;1. :",.i l; l!. : i ; i* ': i.,1

comPare your
-:mplete the sentences based on your understanding of the reading. Then
' :,vers with a partner's.

1. Wal-Mart@ has been criticizedfot

r store.
:ftisers.
lrC Alex
e Press, 2. Wal-Mart@ has been able to achieve marketing success because-
n t think
ment for
:egotiate
rrS, Some 3. Local newspapers do not support Wal-Mart@ because
go out of
: i;alked
d anxiety
rnrong the
4. According to Wal-Mart's@ opponents,
rerchants
-i;laft gets

Lrnions bY
ation of its 5. Wal-Mart@ may have to reconsider some of its policies because
he Point of
roted for a
o'. related to
rcq forced to r* r H I r I ErE r E rr.- rrr¡II r Go To My*nglishlab FoR MoRE vocABULARY PRAcTlcE.
: ¡ther stores
cte with the

- lier wages

Size Matters in Business 137

 is criticized
r,,.,
.1 Reread Reading Two. Underline sentences that give reasons why Wal-Mart@
and why Wal-Mart@ is successful'

NoTE-TAKING:CoMPARINGTHEPoSITIVEANDTHENEGATIVE
in the reading' It also helps you to review
Taking notes allows you to identify the important ideas
material for future studY.
focus, such as preparing for a
Note-taking is especially helpful when you have a particular
a companys reputation or for an essay about a
debate about the positive and negative aspects of
company,s success urrá *nu, the lompany has done
to achieve it. This kind of note-taking strategy
essay'
i, effective in the preparation of an advantages and disadvantages
"rp".álty
Look at the example and read the information'
Wal-Mart's@ Success) would you put
In what category (Criticism of Wal-Mart@ or Evidence of
these notes?
/ no health insurance for workers / wages too low
very large customer base
Answer:

CRITICISM OFWAL-MART@ EVIDENCE OF WAL-MART'S@ SUCCESS

- no health insurance for workers - verY large customer base

- wages too low

Worf with a partner. Put the notes from the reading in the ProPer categories in the
ff
chart on the next Page

. hires illegals
. workers so poor they need government
aid through Medicaid -taxpayers
o laws can't force them to PaY better subsidize Wal-Mafto
wages
¡ revolutionized the economy
¡ anti-union policY
o gets unfair deals from suPPliers
. offers low Prices everyone wants
. newspapers lose advertising
¡ competition with Wal-tVlarto pushing
down wages in other comPanies
. innovations in inventory management
and shiPPing
o other retailers forced out

134 uNlT 5
 CRITICISM OFWAL-MART@ EVIDENCE OF WAL-MART'S6 SUCCESS

\,\tages are too low very large customer base

:d
no health insurance for workers

e\{

fPÚV i

I ¡ :E=Effi:ffirffirffirffitslsl§rffir§rñrtlmtülü¡¡r GO TO My§nglishlab fOn MORE SKILL PRACTICE'

put

CONNECT THE READINGS

':' l: *l:"!{a¡1iuul:

worl<with a partner. Review Reading one (Rl) and Two (R2) and complete the chart
Reading
,¡¿ith notes, giving relevant facts fopll th" categories. Use separate PaPer if you need more
sDace'
srABBUcKga (R1) *AL-MART. (R2)
che
COMPANY INNOVATIONS AND 35 millton customers; has increased
DEMAND FORTHE PRODUCT interest in taste of good coffee

nment

exploits illegal immigrants; destroys

CRITICISM OF THE COMPANY
downtown areas; local stores
lose business and have to close;
local newspapers lose advertisers;
em ployee organizations angrY

¡ement RESPONSETOTHE great benefit Packages for

COMMUNITYAND employees; reaches out to interest
EMPLOYEES of customers bY selling co
compilations, Promoting new film
and greatbooks, and offering
Duetto Visa credit card

one of the rnost successful

FINANCIAL SUCCESSAND
companies in the world
SIZE

Size Matters in Business 139

 STEP 2: Synthesize

Work with a partner. You are a financial investment counselor. Your client is interested in
investing in eiiher Starbucks@ or Wal-Mart@ and has asked you for advice. Decide which
.orp"n] would be a better investment. Using the notes you have collected in Step l,
.o*pl"t" a report explaining your decision. Use a seParate piece of PaPer. You can start your
I report this way:

Dear Client,

you have expressed an interest in investing in one of two companies: either Starbucks@ or

Wal-Mart@. Please find below a report explaining why we feel would be a

better addition to your investment portfolio.

There are several reasons why we feel that would be the better choice.

Although is also an interesting company, we did not recommend it for the

following reasons.

We hope that this analysis will be helpful to you in making your decision. Please feel free to

consult with us at any time. When you have made your decision, we will be glad to help with

your investment needs.

Sincerely,

Chandler and Smith

lnvestment Counselors

trffiñffiaffisffiuffi!#Emswlffisffi¡Htsrffir§.*rürst*tx¡ GO fO MyEnglishlab fO CHECKWHAT you IEARNEE

14(J^ uNtT 5
in
1

r your
VOCABULARY
REV!E\^/
Fill in the blanks with words from the box.
:itea
blasted infu riated lobbied prospering su bsidies
envisaged license promote reta i n take on

--, ,...."
Corporate Responsibility: The Fall of Enron
," the
How many business students still believe that "morality has nothing to do with business"?

The story of Enron's fall from the seventh largest U.S. corporation to the largest corporate

bankruptcy in U.S. history should makefuture MBAs more mindful of their responsibilities to
', :h
the interests of the community.
1"

Enron, aTexas energycorporation, overstated its profits, hid its burden of debt, and became

the symbol of a corporate culture of greed and corruption that ñ the public.
t.
Cne method Enron used was to make it seem that the company *ur O,
j.
rroving their losses to fake companies that did not appear on the Enron accounts. The company
U LEARNED.
,,r'as determined to _ its reputation on Wall Street (and a high price for its
4.
.tock) at any cost.

One of Enron's worst schemes aggressively usi ng "mark-to-market"

echniques. lf the company made u a"ut tf,utspromised to earn $10 million in ten years, the

-recutives felt that gave them to mark the money as profit already made.
6.
-hese often imaginary profits were used ut to top executives in the form of
,
-Lrge bonuses.

(continued on next page)

Size Matters in Business 14'l

 to the state of
Most shocking was the fact that Enron traders dared 8.
to drive up the price of energy' costing
california. They created the California enerSy crisis
\Ir
Many people blame the California crisis on the
I
California more than $6 billion in overcharges.
the strict regulations that used to control ener8\
fact that the government in Washington took away
lawmakers for that deregulation
companies. Enron vigorouslY
I
selling off their stock as fast as they could
ln the company,s last year, Enron,s executives were

clear of the collapse' cEo leff skilling

to make sure that their personal finances would steer
workers
same time encouraging employees and
made $200 million selling his stock, while at the

jobs, their pensions' and their savings' When an

not to sell. Twenty thousand workers lost their

the press the comPant

employee, Sherrin Watkins, alerted the government' --------l ü.---
and the courts sent leff Skilling to prison'

HHpi&8.#ffi
used' Then read the sentences below"
Go back to the readings to see how the exPressions.are
and discuss their meanings with a Partner'
using those express¡o; and related
""prurrion,,
steer
1. steer clear (R1, paragraph 3) / steering committee /
a. Our company should STEER CLEAR of all wrongdoing'
b.TheSTEERINGCoMMITTEEofourfirmhasdecidedtohirefourmoreofficeem-
ployees.
in the wrong direction with thos¿
c. If we are not careful, he will STEER this company
dangerous Policies'
top-down / top-drawer
2. offthe top of his head (R1, paragraph 3) ttop an offer /
a. The company director was able to tell us their
profit statistics right oFF THE TOP
OF HIS HEAD.

b. We can TOP THAT OFFERby $500 a share'

workers had no say in policy

c. This was a TOP-D6ryN company, where ordinary
sions.
provides specialized
d. The law firm deals only with TOP-DRAWER clients and
for their iifestYle

142 UNIT 5
- 3. scrape together (R1, paragraph 4) I scrape / scrape the bottom ofthe barrel / scrape
the surface
a. We 1l have to SCRAPE TOGETHER every last dime we own to make the debt pay-
ments.

b. This employee is a troublemaker and gets into too many SCRAPES with other em-
ployees.

c. Youre SCRAPING THE BOTTOM OF THE BARREL when you bring up such a
ridiculous argument.
d. Your report barely SCRAPED THE SURFACE of the many issues involved in this
sale.

4. swipe / swipe your card I take a swipe at (RZ, title)

a. Dont SWIPE anything from the supermarket because you'll get in trouble for steal- {

ing.

b. Please SWIPE YOUR LD. CARD as you enter the building. I

c. The author TAKES A SWIPE AT Wal-Mart@ for some of its employrnent practices.

5. strike down (R2, paragraph 6) t strikeout on one'§ own / on strike

a. The judge decided to STRIKE DOWN the city law against globalization protestors
below.
because it went against the Constitutiort's guarantee of free speech.
Ll!r

b. I didnt want to work for someone else any more, so I decided to STRIKE OUT ON
MY OWN.
c. When union workers are not satisfied with their working conditions, they can go out
-.¿ en'L- ON STRIKE.

-'- rht¡Se

'er

iE TOP

rt¡lic) deci-

red advice

Size Matters in Business 143

 Examine the underlined words in the sentences and discuss the questions with a partner,
. Wal-Mart@ has the ability to charge less for a wide variety of goods.
. Wal-Mart@ is committed to introducing innovations in inventory management.

l. What form is underlined in the first sentence?

2. What form is underlined in the second sentence?
3. Why are these forms used?

COMMON USES OF INFINITIVES AND GERUNDS

The lnfinitive
.he infinitive (to + verb; to play, to watch) is commonly used:
l. When it answers the questions "Why?" or "For what purpose?"
. Schultz bought Starbucks@ to get Americans used to good coffee.
2. In certain verb + infinitive + object patterns
. Employees sometimes try to force Wal-Mart@ to accept a union.
3. After many adjectives
. A socially responsible company is more willing to spend money for employees' health
i
benefits.
4. After certain expressions
Many expressions are followed by the infinitive when "ro do what?" is the answer that the
infinitive gives the reader or the listener. In the sentence "He had the opportunity to work
in another countryi'the infinitive to work tells us "what" he had "the opportunity to do."
Here is a list of expressions that follow this pattern:

t,J be ready have a tendency

be required have the time
have the ability / have an inability have the will
have the courage it is difficult
have the opportunity it is easy
have the option it is economical
have the right it is practical
€TICE

(continued on next page)

Size Matters in Business 145

 The Gerund
used:
The gerund (a verb form ending in -ingtsedas a noun; p taying, watching) is commonly

l.Aftersuchverbsasavoid,consider,enjoy,favorinclude'involte'spend
to receive less criticism
. wal-Mart@ should considerchanging its salary scale if it wants
about its Policies'
.Starbucks@nowspendsalotoftimepromotingmusic.
2. Afterall prepositions (for example' about' from' in' to' with)
. The CEO was concern ed about making a profit'
3. After certain exPressions
Manyexpressionsarefollowedbythegerundbecausetheyendwithprepositions(for
ed about going)' "be interested lz¡
example, "have a commitmen t to goin'gi"'beconcern if
after all prepositions is simple to apply
goin§').The rule regarding the use "i!"t""at
"a
you remember thaúhe práposition is part
of" the expression. Thus, in the sentence'
the geruná ¡going) is used because the
fo is
..He
was .o*-iii"a to §oiigback to scháoll'
part ofthe exPression'
is a list:
expressions end in prepositions' here
Because it is difñcult to remember which
choose between / among
be accustomed to
deal with
be committed to / have a commitment to
have (no) difficultY (in)"
be concerned about
have (no) experience (in)"
be dedicated to
have (no) luck (in)"
be devoted to
have (no) ,ror5¡s (in)*
be interested in
insist on
be involved in
of look forward to
be responsible for / have the responsibility
object to
plan on

*Even when these expressions are used without the preposition, they are
followed by the gerund'

146 UNIT 5
 I Read the letter addressed to a management trainee in a large company. Underline the
gerunds and the infinitives first. Then list the verbs or expressions on page 148 that take
the infinitive and those that take the gerund.

Ctt.t xnr,Etrl, ADAMS, aND \Mrc¡{Twotrtrrr,

Accotr¡{TrNG

if Dear Ms. Rachel Smith,

:.. is You have been working with our company for two years. During
that time, you have provided excellent service to the firm. We are
interested in maximizing the potential of our most promising new
recruits. lt is my pleasure to inform you that you have been chosen to
receive one of our management trainee scholarships. We would like
you to consider applying to an MBA program dedicated to preparing
accounting and financial officers.

We are committed to offering you a full tuition grant for the MBA
program of your choice. Because you already have experience
working in the business world, we are sure that you will make
the most of this opportunity to improve your understanding of the
financial field. Please consider applying to schools that offer evening
and weekend classes in our area. Prior to entering any program, you
will need the approval of our Board of Directors, which reserves the
¡ld right to advise you on these questions.

We hope you will accept our offer, and we look forwárd to hearing
from you soon.

Sincerely,
Jonathan Weiss
Management Trainee Program

Size Matters in Business 147

 :=ad the letter addressed to a management trainee in a large
company. Underline the
.='unds and the infinitives first. Then list the verbs or expressions on page 148 that take
--.-::- : infinitive and those that take the gerund.
. !-..'-.:
..,lts§§t€i§i*§tc.§§§F§t?1r,i*?§t§1§{t?§€§§§ryril§§P:?ff!,:rer§i§t§"?§&ia§}*1*§§e¡¡rjt}{§9§§x§}¡¡r§§t§§e*rr.i§}r§§§i:.rr

Crre.xnrlrcFi, ADAMS, AND \Mrcxrwotrtrlr,

ACCor-TNTING
rt1\ -,
. -. - I
:> t(u
-'t lnn ,. j
- -.r I - Dear Ms. Rachel Smith,

i,e the io is
You have been working with our company for two years. During
that time, you have provided excellent service to the firm. We are
is a list:
interested in maximizing the potential of our most promising new
recruits. It is my pleasure to inform you that you have been chosen to
receive one of our management trainee scholarships. We would like
you to consider applying to an MBA program dedicated to preparing
accounting and financial officers.

We are committed to offering you a full tuition grant for the MBA
program of your choice. Because you already have experience
working in the business world, we are sure that you will make
the most of this opportunity to improve your understanding of the
financial field. Please consider applying to schools that offer evening
and weekend classes in our area. Prior to entering any program, you
will need the approval of our Board of Directors, which reserves the
erund. right to advise you on these questions.

We hope you will accept our offer, and we look forward to hearing
from you soon.

Sincerely,
Jonathan Weiss
Management Trai nee Program

r::l::t¡§taa,1tt *ü}ei§t§:::iaia:aL]l1i1.§i::i:.:llitix}1:§:;n{a:aa,:i.¡i:1r:.ril!l{.}3ir§tx.r§r.r.*

Size Matters in Business 147

 @ Corplete the essay with either the gerund or the infinitive of the verb in parentheses.

I ru¡no»ucrony F,qnacnaen

The Advantages and Disadvantages of Private Business Schools

Students thinking of business careers are required

1. (pursue)
four to five years of work experience in the business world before
2. (hovel
they begin an M.B.A. program. When they are ready to school, it is
3.{return)
important for them thorough research on each school that interests them
A.ldal
Because M.B.A. candidates in the United States can choose between
5. (studyi
seven at some excellent public and private institutions, part of the decision-making process involves
Jse a
whether to enroll in a private or public institution. M.B.A. candidates who
6. (deeide)
plan at large multinational corporations should make every effort to attend
7, lwark\
a top private school. Despite the high tuition costs of private business schools, they provide more

competitive learning environments and more job placement opportunities in the private sector.

ODY

The disadvantages of private institutions are easy Although private

8. {identify)
schools meet the needs of students who hope for large multinational
9. (workl
-orporations, what they offer comes at a great cost. The price of a two-year program at a top

,'i'ivate business school can cost more than $100,000, while an M.B.A. program in a public school

- rsts less than half that amount. There is no doubt that the very high costs of private business

:hools discourage many M.B.A. candidates from Being faced with such
10. (opply)
arge debt is seen as a definite disadvantage despite the advantages of a competitive private

, ¡ool.

Competition attracts the best students, who compete at the most

I L (enroll)
rensive private business schools. Some of the top private schools can review as many as 8,000

r-' ications in a given year, but no more than 15 percent of the applicants are usually admitted.

(continued on next Page)

Size Matúers in Business 149

 student profile is the diversity of the student
Connected to this more competitive feature of the
ll
energy to a diverse
II population. Private institutions devote a lot of time and 12. {s*iecii
of the United States and the world' This
representation of students from all geographic areas

private school students have the opportunity

international "flavor" is also reflected in the fact that

1 3. {particiPet*}
inagreatnumberofstudyabroadandinternshipprogramswith il
environment with the brightest students'
multinational corporations. Studying in a competitive
provides private business students with
both male and female, from many diverse backgrounds,

valuable insights and international experience'

by the multinational corporations who
These diverse insights and experiences are appreciated

favoratthetopprivateschools.lnagivenyear,hundredsofrecruitersCome
,l4.
{r-ecruit}
to private school campuses students' Not only do private school students
-= {.-,-rr,.,-*,
often receive higher paying job offers:The
have superb .iob placement opportunities, but they

can go as high as $150'000

average starting salary for private school students

Concruslotrl

provides students with definite

studying for an M.B.A. degree at a top private school
a private institution because of
advantages. Students who decide not ---lá r''-1-til
they may be able to earn back the
the cost alone may be making a serious mistake because
job at the same time' After a few years of
initial investment quickly and have a higher-paying

-------:=-,---,:=foralargemultinationalcorporation'theirloanswillbepaidback'andthe
i,/ lwotKl
advantages of their choice of a private business school
will become clear'

ron rr¡oRe GRAMMAR PRACTTCEAND TO CHECKWHAT vOU tEÁil

r*rÉrsrñr§rrrarrr¡r GO TO MyEnglishlab

150 UNIT 5
 INAL WR.ITING TASK
In this unit, you read articles discussing two well-known businesses, Starbucks@ and
Wal-Mart@.
You will write an essay in resl,onse to this question: What are the advantages and
disadvantages of large chain stores and multinational corporations? Use the vocabulary and
grammar from the unit.*

., :
3"itr
§t ffi
-t'# -t&.r
re*
"8"'
Ei : ffi r"ai rr $É¡; r'*t É rr g

1 Work in groups. Write down notes in the chart that point to the advantages and
disadvantages of chain stores and large multinational companies. Use examples from the
two readings as well as your own ideas.
Advantages Disadvantages

l. can offer many jobs (100,000 in 1. get trashed by anti-globalization

Starbucks@) activists

2. can help change the culture (support 2. often pay employees too little;benefits
for national health care like too small
Starbucks@) 3.
3. 4.
4. 5.
5. 6.
6. 7.
7. 8.
8.

I pl Examine your lists to identify common categories to which your thoughts belong. Group
I the various ideas under their respective categories. Try to find at least four categories.

I r. Lttaking the economy more efftcient

1

i\.::
J.

4.

Alternative Writing Topics, see page 157. These topics can be used in place of the writing topic for
unit or as homework. Íhe alternative topics relate to the theme of the unit, but may not target the
e grammar or rhetorical structures taught in the unit.

Size Matters in Business 151

 Wffi#T§: Am ffissay S§tovr"ñng dhdwarut;ages and ffiis*dvarntages

ffi§ Reread the essay on pages 149-l50 and discuss the questions with a partner.
l. What is the writer's purpose in this essay?

2. Underline the thesis statement. According to the thesis statement, will the writer's focus
in the essay be on the advantages or on the disadvantages?
3. Which body paragraph(s) deals with the advantages, and which body paragraph(s) deals
with the disadvantages?
4. In the body paragraphs, what kind of support does the writer provide?
5. How does the writer show the logical connection between one topic and another?
6. Is the message in the concluding paragraph expected or unexpected? Why?

ffi Reaa the information in the box and then complete the exercises.

PURPOSE OF ESSAYS SHOWING ADVANTAGES AND DISADVANTAGES

Essays about advantages and disadvantages are similar to comparison and contrast essays, but
there are some special points to remember.
. The aim of this kind of essay is to persuade, not simply to inform. You should /,o, merely list
the positive and negative aspects of the subject in a neutral way. You should take a stand.
. Your thesis statement should therefore take a clear position: Do the advantages outweigh the
disadvantages, or are the disadvantages more important than the advantages?
. If the thesis statement states that the advantages are more important, then the body of the
essay will devote relatively more space to the advantages. Conversely, if the thesis is focused
on the disadvantages, that aspect will take up relatively more space in the essay than the
advantages.
. The essay must provide enough support for the thesis so that the main points will be clearly
justified and explained. As in all essays, the use of good transitions between the points under
discussion ensures this clarity.

Thesis Statement
As you learned in Unit 2, the thesis statement communicates the main idea of the essay. It reflects
the writer's focus and point of view, attitude, or opinion, and it also forecasts which aspects of the
subject the writer will discuss to support the thesis in the body of the essay.

152 uNtT 5
 §t Examine the thesis statement from the essay on pages 149- I 50. Answer the questions.

Despite the high tuition costs of private business schools, they provide more competitive
learning environments and more job placement opportunities in the private sector.
1. Is this an adequate thesis statement for an advántages and disadvantages essay? Why or
). ü: why not?

2. tlne thesis tells the reader that the body paragraphs of the essay will deal with certain
subjects. What are they?

a.

b.

c.

ln your notebook, write an outline for an essay showing the advantages and
ri disadvantages of large chain stores and large multinational corporations. Follow the steps:
. Use the guidelines for point-by-point outline organization on page 118 (Unit 4).
iist
. Write your thesis statement.
) the Using what you have learned about writing advantages and disadvantages essays, write
an essay about the advantages and disadvantages of large chain stores and multinational
corporations. Refer to the work you did in Prepare to Write and Write, pages I 5 l- I 53,
L:C Ll
I to write your first draft.

REYISE: Using Transitiona! Sentences

:ar1v fransitional sentences show the logical connection between topics under discussion.
rnder Iransitions may be needed within a paragraph ("internal transitions") or between paragraphs.
,',-hen a transitional sentence connects the ideas of one body paragraph to the ideas of another
:..rdy paragraph, the transitional sentence can be placed at the beginning of a paragraph (as
i topic sentence) or at the end ofa paragraph (as a concluding sentence). Transitions are
'e t'lects :specially important in essays showing advantages and disadvantages because the reader must
, of the :e able to notice the shift between positive and negative factors.

II C" backto the essay on pages 149-150. First underlíne the transitional sentences
connecting the body paragraphs in the text. Then underline the internal transitional
sentence in body paragraph 2.

Size Matters in Business 153

 are missing'
B"ing self-Employ"i:f in.'p"tiant transitiónal sentences
ffitt,l","twoParagrlPhsc:Tej,"l:l"firstdraftofanessayon..TheAdvantagesand y'
Disadvantag", o-f and mark th em
Work with a partner. Áeview
tf,etisilf tf'Lit"' on the n",.t pug""acceptable" sentence rn
than one
(acceptable) .r'i'ül;;;ptable) r;l"." ."" ue more of yáur choices for each
ptut" tr'" i"tters
each set of choices. Then
discus, y;;;
""r*"t'' paragraphs in the essay.
transitional ,"n*" on the lines provided in these

Beingself-employedpermitsacertainfreedomthatsupportsthedevelopmentofafreespirit.

Becausethereisnooneinauthoritytellingtheself-employedpersonwhattodo,heorsheen|oys
lf a mistake
is more wiring to take risks'
of independence. with incrependence, the individual
a rot
will be learned from the experience'
made, it is not the end of the world; something valuable
is

Thispassionforexperimentationleadstocreativeundertakings.(1)--.lfheorshedoesnot
will be no opportunity to place
an
the business evolves' there
as
allow room or time for creativity
has agreed
the self-employed person
stamp on the product that is being marketed' Since
original

toaSsUmesoleresponsibilityforhisorherfate,creativityisanessentialingredientforfuture

SUCCESS'

(2)-.Becausetheself-employedpersonisatthesametimebothemployerandemployee,

thereisnosafetynetto,,catch,,himorherifheorshefalls,andthefinancia|andpsychological
must be
That is why the individual
that may be experienced can be a true test of nerves'
stress
mental health care
enough to seek aclvice from financial consultants and
assertive and yet humble

professionalsinordertobeabletodealwiththesepotentialproblems.(3)---'Coodcharacter
willingness
ethics, positive self-image,
inclividuar can be seen in his or her strong personarity,
in an

tobendandappreciatethevalueofotherpeople,sideas,alongwiththedeterminationtowork

hardandachieveSUCCess.onlysomeonewithmanysuchqualitiescaneffectivelyrespondtothe

challenges that come with

being self-employed'

154 UNlr 5
 l. Choices for Internal Transition of Paragraph 1

rnd
a, Linked, therefore, to the self-employed person's independence is the
individu-
ing.
r' al's great potential for creativity'
ence in -
success in busi-
for each _ b. Can anyone doubt that creativity is the next step on the path to
ness dealings?

.l-. i i-
jt. _ c. Whether or not these creative urges come to fruition, they are an essential
ingredient in success.
L'nioYS
2. Choices for Topic Sentence ofParagraph 2
r'-rlstake
of
a. Another undeniable problem facing an entrepreneur in the creation
a
_
:nCe' startup company is the financial burden'
e. nOt
_ b. But creativity is not enough; a future businessperson must be strong in many
l-r .ice an other waYs'
not
- -.oreed _ c. Despite the benefits that accompany independence and creativity, we must
psy-
forget that a self-employed person must cope with a great financial and
-,
re chological burden.

3. Choices for Internal Transition of Paragraph2

tr.rPloYee, a.In this sense, going into business for yourself is a true test of character'

-,r\ogical -_ b. Undoubtedly, the ability to respond to these stresses requires many positive
character traits.
-- lst be
_ c. Even though independence is a great benefit, being in business is very stressful'
realth care
the draft of your essay. Does it have trans¡tional sentences to guide the
reader
Lool< at
:,c character
from one "topic" to another? lf not, revise your essay accordingly.
e rvillingness
,i.,r :ii, j,!, i;i: +r lri E+ * # iH É6 i6r ffi, &. & G# Fü Vy*.*g,li*,Lab r** *n*ng s,{f{.L pft,4trá{5.
)' to work
T: Writing the Final Draft
..oond to the
to MyEnglishLab and write the final draft of your edit it for grammatical
essay. Carefully
sure you use
rnechanical errors, such as spelling, capitalization, and Punctuation' Make
re of the grammar and vocabulary from the unit. Use the checklist on
the next Page to
: you wriá your final draft. Then submit your essay to your teacher.

Size Matters in Business 155

 FINAL DRAFT CHECKLIST

EDoesyouressayhaveaneffectiveintroduction,threeormorebodyparagraphs,
and a strong conclusion?

fllsitobviousfromthethesisStatementwhethertheadvantagesoutweighthe
the advantages?
disadvantages outweigh
disadvantages or the

cDoesthethesisstatementforecastthespecifictopicsthataretobecoveredin
the bodY
ofthe essaY?
ParagraPhs
!il
,i flDotheparagraphshavetransitionalsentencesthateffectivelyshowthereader
between topics?
the logical tá""ttion
1

used correctly?
E Are the gerunds and infinitives
the
and expressions in
essay?
fl Have you used new vocabulary

UNIT PROJECT
: *il
pe o p, e's atti, u d¡¡
1o; il: :I'#ii :,' :l :i?.il:{};
l'l:-lt")i':::::*"re *::i iilliffi T;,, opinions'
:,.
"'' Follow ^
own circumstances information auo't'people's
'l
hetP You find and
com¡
;;#;;;i."."n
stePs:
"':' J
these about
people at your school
to use in interviewing several want the students you
$T-ffip $: create a questionnaire FJ il;;;;:;, |o.u might
wt.l"t tr."/iñinr. or business. questions:
ü"t""tia"t the following
interview
and ambitious?
have to be aggressive
1. Do people in business
problem in business?
2. Is corruption a common
to the community?
businesses be socia§ responsible
3. Should

questionnatre'
Workingroups.Firstdiscusswhll.youthinkofbusiness.r|enw.rl1eatleastfiveYes/No
tik" to have in your
opinion qu"ttion''i;;ñ;"ut¿ about business'
Internetto see what people think
do research on the
NoTE: you may instead question
count No respons:t ::':*h
S.TEp ?: When you
conduct your survey' te- f:^it
tutty responses' and
f.lt";;;;;id to write ü;t;;nt'
andtakenotesonth".omm"ntstheinterviewees(thestuden*..yo,interview)
vJt
make. you can use
the
record comments

156 uNlT 5