B2

B
2

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CEFR ENGLISH SERVICES

Levels Levels

A1 (Breakthrough) A1 Elementary A 60 hours

ELEMENTARY A1 Elementary B 60 hours

180 hours
A1 Elementary C 60 hours

A2 (Waystage) A2 Pre Intermediate A 60 hours

PRE INTERMEDIATE A2 Pre Intermediate B 60 hours

180 hours
A2 Pre Intermediate C 60 hours

B1 (Threshold)
B1 Intermediate A 60 hours

INTERMEDIATE B1 Intermediate B 60 hours

180 hours
B1 Intermediate C 60 hours

B2 Upper Intermediate A 60 hours

B2 (Vantage)
UPPER INTERMEDIATE B2 Upper Intermediate B 60 hours
180 hours
B2 Upper
B2 Upper Intermediate C 60
60 hours
hours

C1 Avanced A 60 hours
C1 (Effective operational Proficiency)
ADVANCED C1 Avanced B 60 hours
180 hours
C1 Avanced C 60 hours

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Module C
Unit 7 Problems Across Departments
PART A:
Problems Across Departments – Case Study
PART B:
Conflict Resolution - Video
PART C:
Don´t Argue – Reading / Listening
Grammar: Past Modals
PART D:
ED / ING Interested Vs Interesting
PART E:
Work Vs Job - RECAP

Unit 8 Setting Achievable Goals

PART A:
Setting Achievable Goals – Case Study
PART B:
Become a Goal Achiever Instead of a Goal Setter – Video
PART C:
Grammar: Passive (all forms)
PART D:
Legally blonde – Reported Speech – Movie Segment
Grammar Reporting Verbs
PART E:
Expressing your opinion - Writing

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Module C
Unit 9 Creative Strategy and Advertising
PART A:
Creative Strategy – Case Study
PART B:
Advertising Listening / Reading
Interviews
Grammar: Clause of contrast and purpose
PART C:
Where in the world?
Grammar: Uncountable nouns
PART D:
Media – Vocabulary
PART E:
Do Vs Make - Recap

Unit 10 Strategic Planning

PART A:
Strategic Planning – Case Study
PART B:
Samsung's Future Strategy in Emerging Markets – Video
Grammar: Qualifiers all, every, both etc.
Samsung Has A Totally Different Strategy From Apple, And It's Working
Great – Reading
PART C:
The Power of Words
Grammar Articles
PART D:
For and Against – Writing

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UNIT 7
PART A PROBLEMS ACROSS DEPARTMENTS

This activity will give your students the opportunity to:

know what different departments do and how they are connected
discuss conflicts and come up with ways to resolve them
make specific suggestions to eliminate conflict
A - Lead-in
Work in groups. Talk about departments that you know in companies. Make a list of them and
discuss which of them work together and which specific tasks or responsibilities overlap or
influence each other. If you work in a company, talk about your own department and which of
the other departments you have contact with. You can draw a mind map of this with your
department in the centre and lines connecting it to other departments and then connect these to
others you know of. Be prepared to present this to the class.

B-

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C - Conflicts
Work in a small group. Discuss where conflicts between departments could arise. Think about
the primary tasks of each department and look at the departments which may have
disagreements with each other. Consider aspects such as financial and human resources in the
company as well as the general economic or business environment. Report your findings to the
class.

D - Specific problems
Do a to role play of the problem below. Decide how many people should be involved (you
should have more than one person from each department) and who is taking which role.

Work within your department group to prepare your arguments and discuss which compromises
you are willing to make and which points you will not concede.

Act out the role play in front of the group keeping in mind that you all work for the same
company. The others take notes and give you feedback when you are finished. As a class you
can continue to discuss the situation and what could be done to resolve the conflict.

Problem
Human resources is having problems with the production department regarding a training
programme as workers in the production department are being asked to train workers from a
plant overseas. There have been rumours of plants closing and the workers are concerned that
their jobs may be outsourced or off-shored and that the people they have been asked to train
will be taking over their jobs. Many workers are nervous about being made redundant or forced
to relocate. HR, however, feels strongly that all plants need to follow the same working
procedures no matter where they are located and that is the reason that they would like these
workers trained in the main plant. They have been trying to convince the foremen that training
foreign workers will have no effect on jobs at home but have not managed to get their message
across. These workers are arriving in the next month and plans have to be made for their
training before they come.

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E - It's time for the IT crowd to sit at the top table

Read the article from Management Today

http://www.managementtoday.co.uk/news/1137832

IT professionals are facing the possibility of boardroom authority for the first time, says Sid
Barnes.

Business technology is continuing to advance at a relentless pace. From the average

employee’s desktop PC, through to data centres and the Cloud, there are very few businesses,
which are not reliant on technology to function. Equally, there are very few business leaders
who don’t look to their IT department to guide them through the latest technical developments.
For this reason, senior IT professionals and CIOs now have a golden opportunity to make their
voices heard at board-level in businesses across the UK. Forward-looking management should
value their contribution. With the advance of smartphones and tablets, board members are
embracing technology like never before. From enhancing business information to countering the
risk of systems failure and cyber attacks, businesses have much to gain from involving high-
level IT insight in commercial decisions.

IT professionals are now in a good position to join the ranks of business leaders. The core skill
set of an IT professional includes adaptability, technical awareness, and an inherently organised
nature, which can all be counted amongst the best attributes of successful business leaders.
However, with 90% of the wider IT industry describing communication skills as vital or important
for new IT hires, it is clear to see where there is still room for improvement. If these nascent
interpersonal skills can be combined with enhanced commercial skills and the ability to work
with other sectors of the business, there is no reason why doors should not start opening at the
highest level.

Despite the existence of this wide-ranging technical skill set and emerging communications
skills, IT has traditionally struggled with its image. Our own research has shown that only 28%
of HR directors believe the IT function is an ‘integral part of the decision making process’.
Based on this evidence, the new generation of IT professional must be willing to step outside
their comfort zone and embrace these new opportunities to ensure outdated stereotypes are
laid to rest. Mark Zuckerberg, for example, is multi-billion dollar evidence of the potential
benefits and success an IT-minded individual can bring to an organisation. ?To this end, the
workplace is rapidly becoming a techie paradise, but IT professionals must be willing to advise
the business on why IT is now so important, and committed to equipping themselves with the
skills to take full advantage of this brave new world.

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E - It's time for the IT crowd to sit at the top table

Q1. What are the issues brought up in the article?

Q2. Do you think there are other departments in companies that also need to be looked at
as vital to the company? Discuss this in a group and present your ideas.

Q3. What do the following terms mean?

1) Brought up (to bring up)

2) CIOs
3) willing to step outside their comfort zone
4) Techie

Vocab:
Nascent = just coming into existence and beginning to display signs of future potential.
Relentless = Steady and persistent
to join the ranks of = to become part of

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PART B Mediating Employee Conflict | Conflict Resolution

https://www.youtube.com/watch?v=oqFoy8ehzuc

Q1.What % of a manager's time goes to mediating employee conflict.

Q2. What creates conflict in the workplace?

Q3. What is the root of most employee conflict?

Q4. In your own words, what are the six steps mentions to resolving conflict
1st

2nd

3rd

4th

5th

6th

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PART C

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PART C GRAMMAR BANK

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PART D Difference between "ED" or "ING“

Interested Vs Interesting

https://www.youtube.com/watch?v=0vRxFkBK8q0

Watch the video and then with your partner make up sentences with the
following words. Do this orally.

1. Tired
2. Annoying
3. Tiring
4. Bored
5. Interesting
6. Facinating
7. Facinated
8. Annoyed
9. Confusing
10. Disgusted
11. Confused
12. Terrified
13. Terrifying
14. Disgusting
15. Interested

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PART E Job Vs Work - RECAP

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UNIT 8
PART A SETTING ACHIEVABLE GOALS

This activity will give you the opportunity to:

 work through a goal-setting model with a partner

 write questions which fit the categories of the model
 discover a method of setting achievable goals

A - Lead-in

Work in pairs and discuss this sentence:

‘If you don’t know where you want to go, it is very difficult to get there.’
Do you agree or disagree with this statement? How would this apply to setting goals?
Work in pairs. Tell your partner about a goal which you have set for yourself or which you have
at work. Discuss the questions below and how they relate to this goal and make some notes.
You don’t need to go into very detailed discussions here, just note down some ideas.

 What exactly is the goal?

 When do you personally need to reach this goal? Is it within your own capabilities? Do you
have all the resources you need? If not, what do you still need to find?
 What will happen if you don’t reach the goal on time?
 What can you do yourself to ensure that you can do this?

B - The well-formed outcome

Richard Bandler and John Grinder developed a goal-setting model in the early days of NLP
(Neuro-Linguistic Programming) and called this technique a ‘well-formed outcome’. They
described several steps and criteria to guide people though the process. Over time, the model
has been adapted and is now used in a large variety of settings, one of the most common being
in business situations. Look at the steps in the table on the next page and discuss them with
your partner before you begin to work through the model. The titles name the steps and the
questions are examples to ask yourself when starting the exercise.

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Work in pairs. Choose one of the work-related goals (or study goals) you and your partner
discussed in the Lead-in exercise. Look at the categories and the example questions. Try to
come up with one or two more questions in each category? The more specific the questions are,
the better.

C - Working on the model

 Work in pairs. Student A should ask Student B to state his/her goal and check that they use
positive language to express it.
 Student A asks Student B the questions in the model and notes down his/her answers.
 If Student B cannot answer one of the questions you should go back and reformulate the
goal.
 When you have finished change roles and Student B asks Student A the questions.

D - Organisation goals

Work in a group of three – five people and find out which organisation-wide goals people in
the group have at the moment. Choose one of them and discuss the steps of

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E - Organisation goals

Work in a group of three – five people and find out which organisation-wide goals people in
the group have at the moment. Choose one of them and discuss the steps of the model. Write
these up in note form and present the goal and the steps to the class. Open it up to a general
discussion of setting goals.

F - Discussion questions

Work in small groups and discuss these questions.

 Were you successful in getting through the model with your partner? If not, what was the
reason? If so, did your original goal change in any way?
 Which of the questions did you find most challenging to answer?
 Is this a model which you could apply to both your own and your company’s goals?
 Do you see this helping you in the future to manage change?

G - Follow-up

Look for the term ‘well-formed outcome’ on the Internet. There are a number of sites which
describe the model. Choose one that you find useful and add some of the questions to your
chart. Try the model using the new questions and see if this makes any difference for you.
Keep the chart at hand next time you are working on a specific goal and go through the
criteria. You can report back to the class if possible.

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PART B Become a Goal Achiever Instead of a Goal Setter

Watch this video, about John Assaraf, two times and
then answer the following questions

Vocab:
trait = characteristic
set goals = make goals

https://www.youtube.com/watch?v=8f5AUkNiacY

1. The people who achieve their goals are not any smarter than the people who don't achieve
their goals. The only difference is that the ones who can complete goals, have two distinctive
straits.
What are they?

a).

b).

2. In your own words re-tell John Assaraf´s success story. Give as much detail as possible.

3. How did he get his brain to focus on his goals?

4. What is the key element of goal achieving?

5. What is the number one success trait of highly successful people?

6. What is your definition of success?

7. Tell your partner about a goal that you set in the past. Did you achieve it? If not, why?

8. Tell your partner about a current goal that you have set.

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PART C Passive Forms

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PART C GRAMMAR BANK

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PART D Legally blonde – Reported Speech – Movie Segment

Watch the video segment and circle the best verb for each sentence, according to
the information presented in the segment. Then decide which form (gerund /
infinitive / obj + gerunds or infinitive) of the words in parentheses is best.

Use the Grammar bank on p22 to help you.

1) The attorney refused/ wanted/ planned _____________ (accept) being replaced on the case
by a Law student.

2) The defendant decided/ imagined/ claimed __________ (fire) her attorney on trial day.

3) Elle hates/loves/ avoids ___________ (wear) extravagant clothes .

4) The judge finally refused/ denied/ resolved ___________ (proceed) with the trial.

5) Elle's friends couldn't help / pretended / finished__________ (talk) about the court room in
front of everyone.

6) The judge told/ asked/ begged ___________ (the ladies - take) a seat.

7) The witness explained/ urged / swore ______________ (tell ) the truth.

8) The witness claimed / showed / intended _________ (be) in the shower during the murder.

9) The witness denied / insisted/ warned __________ (hear) the gunshot.

10) The judge forbid/ prohibited/ let ______________ (Elle - make ) her final point.

11) The witness admitted / proved/ avoided ___________ (kill) her father by mistake.

12) Finally, the judge prohibited / allowed / pretended_________ (the witness - go) free.

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PART D

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PART E

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UNIT 9
PART A CREATIVITY STRATEGY

This activity will give you the opportunity to:

 define creativity
 think about creativity involves
 discuss the importance of creativity

A - Lead-in
Work in small groups and answer these questions.

 How would you define the word ‘creativity’? What does it mean to you?
 Can people learn to be creative or is this a talent that people are born with?
 What problems can arise when employing creativity in companies? Can you give any
examples?
 How important is creativity to a company? Can companies survive without it? Is it
necessary in order to maintain a competitive edge? Why or why not?

Sources:
Walt Disney: The Dreamer, The Realist and The Critic, Robert B. Dilts, Dynamic Learning
Publications 1990
http://lateralaction.com/articles/walt-disney

B - Reading
Read the article below.
It is widely accepted that Walt Disney’s connection of vision and business acumen was
one of the driving forces behind the success of his brand. Being able to connect
innovation and creativity with implementation of ideas is certainly a talent to be envied in
today’s competitive market environment.

So how did Disney do this? What elements of his creativity process can be passed on?
Robert Dilts, one of the founders of NLP (Neuro-Linguistic Programming) analysed
Disney’s strategies and created a model which can be used for creativity training. Dilts
claims that what made Disney’s genius unique was his ability to look at situations from
different perspectives. A comment made by one of Disney’s animators led Dilts to
investigate the three positions mentioned.

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The first of these is the dreamer. When Disney was in this state, anything was possible. He
used visualisation to come up with fantasies, ideas and innovation using techniques such
as free association and brainstorming without limits. However, dreaming up ideas is not
enough to make them happen. So Disney then moved into what is now classified as the
‘realist’ position. Here Disney began to take his ideas and consider what exactly he would
need to make them reality. In this stage resources (money, people, locations) were
considered. The last stage was what Dilts called the ‘critic’. Here Disney took a step back
and looked at the project for its hidden pitfalls. He looked at what problems could arise and
attempted to deal with them. Only when all three of these positions could agree on an idea,
did he move forward.
Robert Dilts has created the ‘Disney strategy’ based on these ideas. This can be used for
individuals or teams and is often employed to come up with innovative ideas that can be
put into practice. As the basic technique is fairly simple, it has been adopted by companies
around the globe hoping to emulate Disney’s success.

C - Comprehension check
Are the following statements True or False?
Companies today can learn from Disney and how he made his brand successful
Disney was unique in his ability to see situations from different viewpoints.
Dilts started investigating creativity in the organisation after interviewing Disney.
The dreamer position sees anything as possible.
Disney’s brainstorming sessions were very controlled.
In the realist position Disney thought about the resources he needed to make dreams a
reality.
Disney’s strength was that he moved forward without analysing the possible problems.
The Disney Strategy is only really useful if you have a big team of people.
The Disney strategy has been used by companies in different countries.

D - Discussion questions
What do you think about this article?
Have you heard about this technique before? If so, where?
Do you think it would work in your company or university? Why or why not?
E-

Can you think of any other adjectives that can be used to describe these three types?

From which of the three positions would you hear these sentences?

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A I just feel that there is a major element missing.

B Just think, we could create the most interesting marketing campaign ever if we use this
idea!
C What is this going to cost?
D I haven’t looked into the practicalities of this yet, but have had an absolutely brilliant idea!
E What’s wrong with this picture?
F We need to work out a budget and timeline before we can even consider it.

Work in pairs and come up with one or two more sentences for each of these positions.

F - Putting it into practice

Work in small groups. Do you feel that you often take one of these positions when working in
groups? If so, which one? In order to work most creatively in a team, each of the positions
need to be represented. For this exercise each of you will need to try out each of the roles.

Brainstorm a product, process or service you feel would be marketable, either in your own
company or in the global market. Once the group has decided on the product, process or
service, begin to work through the strategy with the group taking on each role.
Dreamer Think about these questions:
What are we trying to do? What is exciting or inspiring about it? If we could create anything we
liked, what would we create?

Realist Think about these questions:

What resources do we have and which ones would we need to implement these ideas?
What’s the time plan and will it work? When can we get started and what’s the first step?

Critic Think about these questions:

What does the whole picture look like? Is there anything missing? What might go wrong? How
will this be perceived by customers or clients? What can we do to make this better?
Once you have worked through all three positions, you now need to modify the original plan.
Work out what needs to be done and what needs to be changed. Come up with a final plan.

G - Mini-presentation
Present your plan to the group. Be prepared to answer
questions about the process. You may want to explain
how the dreamer’s original idea was modified to fit
the realist and the critic. Tell the group about your
experience in taking on the different roles.

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PART B Advertising

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PART B GRAMMAR BANK

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COLLOQUIAL ENGLISH TALKING ABOUT

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3
PART C Where in the world?

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PART C

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PART D THE MEDIA

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PART E Do Vs Make - RECAP

PART D

With your partner, invent a sentence with the following words/phrases in it. Do this orally

1. Business
2. Research
3. A complaint
4. Exercises
5. A BBQ
6. An effort
7. a favour
8. Business
9. A trip
10.A speech
11.homework

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B

UNIT 10
PART A STRATEGIC PLANNING

This activity will give your students the opportunity to:

think about and define strategic planning

be able to find terms based on their definitions
be able to understand an article on strategic planning

A - Lead-in
Work in pairs and create your own definition of strategic planning. Try to make it as specific
as possible. Compare your definition with another pair and adapt them both if you feel it is
necessary. When you have finished, read out your definitions and try to create one definition
which the whole class agrees on.
Look at the list below. Which of the factors mentioned is not a part of strategic planning?

Looking at the current business situation

Defining goals and objectives
Looking in detail at how each department is performing
Looking at what might stop you from achieving your objectives

B - Vocabulary
Work in pairs. Read the following definitions and choose the correct word from the box.

1- (to) initiate or bring about: __________

2- the field of accountants or the education needed to become one: __________

3- a system of rules, ideas or beliefs that is used to plan or decide something: __________

4- (to) refuse: __________

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B

5- the ability to understand an event or situation only after it has happened: __________

6- (here) a new technology which changes the way things are done: __________

7- a new idea, design, product, etc.: __________

8- describes a fact or idea that is unpleasant or shocking and therefore difficult to accept:
__________

9- (to) change something in a basic way so that it works differently: __________

10- (to) become smaller: __________

11- (to) completely remove something that is not wanted or needed: __________

12- in a way that is suitable or right for the situation: __________

C - Reading
Read the article below. Find the vocabulary defined above and check your answers.

Strategy is only for experts: Alastair Dryburgh

By Alastair Dryburgh Monday, 30 April 2012

‘Strategy’ continues to be a popular theme for authors, academics and consultants – but have
any got it right?

The Strategic Planning Society is holding a conference aimed at establishing strategy as a

profession along the lines of law, medicine, accountancy and the like. The fact is, however,
from the point of view of a practising manager, there hasn’t been much new or of great value
said or written about the subject for years. The key to effective strategy isn't more or better
ideas, concepts or frameworks, but developing the ability to use what you already have.

Consider Kodak, which went bankrupt in January. It is no great surprise that its film business
was destroyed by the growth of digital photography. What is surprising is that Kodak, which
invented the digital camera, declined to develop it for fear of damaging its chemical film
business. You don’t need the benefit of hindsight to see this was a bad decision. Digital
photography was the classic disruptive innovation. Kodak didn’t need better strategic thinking.
It needed better ways of seeing the obvious but unpalatable, and doing the simple but
uncomfortable.

Most strategy is like this – that is to say, simpler than the consultants and academics would
have you believe. You are not reinventing the company, redefining the industry or creating the
next Facebook. You are looking at what's going on in your markets to identify what customers
(mostly your existing customers) are likely to be asking for in the future. You are looking inside
the company to see where you are making money and where you are not. Often, you end up
with something quite like what you already have, with some parts expanded, others shrunk or
eliminated and a few things added. If the changes are radical, as with Kodak, what’s needed is
usually pretty clear, if not always attractive.

Recognise that you probably have all the strategic knowledge you need. The value is not in
concepts or techniques, but in the ability to see clearly and act accordingly.

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B

D - Discussion questions
Work in small groups and discuss these questions.

What is your opinion about the article? Do you agree with the point of view of the author?
What specifically do you think Kodak could have done about the new digital technology in
the field? Which ideas do you have?
What would you say is most important in order to recognise changes that companies need
to make? How can these changes be implemented?

E - Coming up with a strategy

Work in small groups. Choose one of the companies and situations on the next page or
think of one of your own. Work out where you would like your company to be in one or two
years and then come up with the steps that you would need to take to reach this goal. Write
out the steps on a timeline and present them to the others in the class.

Company 1
Your company produces PCs and laptops at reasonable prices. However, your sales have
dropped recently because of the increase in people buying tablet computers. Should you
concentrate on your current products or also start producing tablets? What factors should
you consider before deciding your plan for the next 2 years?

Company 2
Your company is one of the biggest energy suppliers in your country. You have very good
profits. However, most of your energy production uses fossil fuels. Should you be worried
about the image of your company? Should you start investing in renewable energy over the
next two years?

Company 3
You run a travel agency that specifically caters for young adults who want to go on
adventure holidays. You are worried that your market is getting smaller and has less
disposable income than when you started. Will you look for different customers / extend your
types of holidays / look into social media marketing in order to improve your profits?

Company 4
You own a number of local newspapers and some magazines. Subscriptions have been
decreasing steadily over the last few years. You are trying to come up with new ideas.
Should you invest in web designers and begin a campaign to sell digital subscriptions? Is it
necessary to develop apps for smart phones? How would you set up the digital
subscriptions (including or not including an app)?

F - Follow-up
Check the internet for the story of Eastman-Kodak as well as for companies which have
changed and kept up with new innovations such as Apple or Samsung. Make a comparison
of them and be prepared to speak about them in class.

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Samsung's Future Strategy in

PART B
Emerging Markets
Published on 5 Apr 2013
April 5 (Bloomberg) -- Bloomberg Businessweek's Sam Grobart
discusses Samsung's earnings and smartphone sales with Emily
Chang on Bloomberg Television's "Bloomberg West." (Source: https://www.youtube.com/watch?
Bloomberg) v=aGxfpnpd5Cg

Watch the video twice and answer the following questions.

1. What does ´profit is driven by smart phones´ mean?

2. Where does Samsung (Cell Phone Division) make most of it´s money?

3. What does ´flood the market´ mean?

4. Comapar Samsung and Apple regarding profit and market share.

5. How do Apple and Samsung differ in their cell phone strategies?

6. ´How many Apple and Samsung Experience Shops are there in the US? What are the consequences of this
have for their competitors?

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PART B Grammar Qualifiers all, every, both etc.

With your partner circle the right word of phrase.

1. Both / Both of Apple and Samsung released new tablets this year
2. Either / Neither Apple nor Samsung made a statment after the trial.
3. Until 2006, all /every ipod nanos had an internal memory of 2GB.
4. All of / All business want to make money.
5. I bought all / everything.

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PART B GRAMMAR BANK

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B

PART B Samsung Has A Totally Different Strategy From

Apple, And It's Working Great
http://www.businessinsider.com/samsung-corporate-strategy-2013-
3#ixzz3hIH5p6t7

Just a few years ago Samsung was struggling to catch up in the smartphone market.
Now it makes more of them than anybody else and has Apple on the back foot, in addition to being the
world's largest technology company by revenue.

The heavily hyped launch of its flagship Galaxy S4 smartphone is the latest step as it tries to
overtake Apple, and they've gone all out with a massive screen and impressive new features.
Here are some of the core pillars of Samsung's strategy.

The ultimate fast follower

Samsung is better than anybody else at learning from its competitors. "A market reader is sort of the
classic fast follower," explains Barry Jaruzelski, senior partner at Booz&Co and the co-author of the Global
Innovation 1000. "It doesn't mean they ignore their customers, but they're very attuned to what
competitors are doing and what other people are bringing to market first and observing what seems to
be gaining traction, then very rapidly coming up with their own version of that innovation."
Samsung's aggression has gotten it into trouble in the past, losing a high profile case to Apple for
imitating its design. But the reputation hit and the fine were a small price to pay.

The company pivots and produces quickly, coming out with a variety of devices. It sees what the market
responds to, pushes successes, and kills failures. And now, rather than just providing a cheaper and
lesser iPhone, it's differentiated itself with larger screens, different features, successful marketing, and
delivering what consumers want.

The Note is a perfect example. The company found through market research that Asian-language
speakers in particular wanted a device that they could hand-write on, because drawing characters is
easier with a pen. The result was a combination phone/tablet ("phablet") that's been an unexpected hit.
The company combines market research and unparalleled execution with, despite its reputation, a lot of
innovation of its own. Samsung was second only to IBM in the number of U.S. patents filed last year,
and filed 150 patents related to the new technology in the Galaxy S4.

When you've got cash, use it aggressively, or risk falling behind

Apple has a huge cash pile, but Samsung seems to be more willing and able to put their money to use.
Samsung's research spend is 5.7 percent of its revenue, compared to 2.4 percent for Apple.
Samsung is a diverse business with chips, displays, and other technology. This pays dividends, allowing it
to compete on price and increasingly, offer features Apple hasn't gotten to. Although, many would argue
that Apple chooses not to include certain features Samsung offers.

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When Samsung wants to get behind something, it can do so with considerable weight.
That's certainly been the case for its flagship Galaxy phones. Samsung's advertising push has been
absolutely massive. In the U.S., where the iPhone is still pretty dominant, last year the company
increased its advertising budget five-fold, to $401 million from $78 million. That's $68 million ahead
of Apple, and more than $200 million ahead of its nearest competitor in the Android market. And
that's only a fraction of its ad budget.

This push has paid off too, with Samsung scoring many points at Apple's expense.

Supply chain and distribution

Samsung is so much more than a smartphone-maker. It is a conglomerate, a manufacturer, and the
world's largest chip-maker. It makes many of the components that go into its smartphones giving it
a cost advantage and allowing it to be much more flexible in terms of what it produces and when.

Apple, on the other hand, though it has a diverse, well-managed, and futuristic supply chain, relies
on external partners, which can lead to delays and difficulties.
And though Apple is trying to move away from Samsung chips, the company's smartphone
competitors still have to buy them. In a way, they help finance its cost advantage.
As Christopher Mims at Quartz points out, the company also has a huge advantage in distribution.
The company's new Galaxy S4 will be available on 36 percent more carriers and in 55 percent more
countries than the iPhone 5.
Samsung's in more places than Apple with a brand new phone, as well as lower end options for the
developing world.

The management lesson: You have to commit

Samsung is very much a Korean company, and has been, at times, accused of being overly
hierarchical and dominated by its founding family. That also provides some advantages. You can
fault some things the company does, but not its ambition or commitment.
When Samsung decides to get into a business, it goes hard. Within the past decade, it went from
just beginning to invest in making batteries for digital devices and flash memory to being a global
leader.
Former P&G CEO A.G. Lafley argues that companies fail because they're hesitant to make decisions
and hesitant to commit because they fear failure and want simply to play rather than win.
Samsung wants to be the dominant player in the smartphone market, it has a strategy to do so, and
it's using every tool it has as it attempts to succeed at it.

The future
The key test of whether Samsung can move from a close-and-gaining second to becoming truly
dominant is whether it can deliver products that are truly game-changing. To really start pulling
customers away from iPhones in droves, it needs to differentiate itself beyond marketing and a
bigger screen.
It's aggressively investing in Silicon Valley with several big campuses to help it start to lead in
software as it already does with hardware.

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Read the article and answer the following questions Vocab:

Hyped = promoted
If you don´t understand a word just look it up on an Flagship product = most
online dictionary on your smartphone. popular/important product
gaining traction = popular
Q1. Using the context of the article try to guess what the pays dividends = to cause a good result
following phrases mean? five-fold = 500%
in droves = in large numbers
a) struggling to catch up
b) on the back foot
c) coming out with
d) get behind something

Q2. What does the author mean when they say that Samsung is ultimate fast follower?

Q3. Compare Apple and Samsung with regard to R&D and Advertising Budgets.

Q4. With respect to Supply Chain Management what advantages does Samsung have over
Apple?

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PART C The Power of Words

PART C

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PART C

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PART D

FOR AND AGAINST

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