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Business English Handbook Advanced - With Keys
Business English Handbook Advanced - With Keys
• •
Handbook
Advanced
The whole of business in one book
&
MACMILLAN
M a cm illa n Ed u catio n
B e tw e e n Tow ns Road, O xfo rd 0 X 4 3PP
A division o f M a cm illan P ublishers Lim ited
C o m p a n ie s and re presen tatives th ro u g h o u t the w o rld
ISBN 9 7 8 - 1 - 4 0 5 0 - 8 6 0 3 - 5
First p ub lished 2 0 0 7
A ll rig hts reserved ; no part o f this p u b licatio n m ay be re p ro d u ced , stored in a re trieval system , tran sm itte d m
any fo rm , or by a n y m ea n s, ele ctro n ic, m e ch a n ica l, p h o to co p yin g , record ing , or o th e rw is e , w ith o u t the p rior
w ritte n p erm ission of the pub lishers.
D esig ned by C a ro ly n G ib so n
Illustrated by G lyn G o o d w in and P eter H arper
C o ve r d esign by D esig ners C o llective
A u th o r's a c k n o w le d g e m e n ts
First and fo re m o st, a very big th an k yo u to Karen Spiller fo r co m b in in g roles o f free lan ce p roject m anager,
c o n te n t ed ito r and co p y edito r, and p roviding inp ut and cre a tivity at every tu rn .
The a u th o r w o u ld like to th a n k c o llea g u e s a t th e In tern a tio n a l H o use E xe cu tive C e n tre (Lo n d o n ) fo r chan n ellin g
in te rv ie w e e s his w a y . A n esp ecial th an ks to Fiona Jo hnsto n in this reg ard . The usual g ra titu d e is d u e to my
D ire cto r o f Stu d ie s, M a u rice Cassidy, fo r fa cilita tin g m y w ritin g and te a ch in g and th e b a la n ce b e tw e e n th e tw o .
T h a n k s also to all m y stu d e n ts w h o acte d as g uinea-p igs fo r e arly versions of th ese un its. A special m en tio n is
due to th e stu d e n ts from C a m p u s 02 in G ra z, A u stria .
Finally, I w o u ld like to th a n k Roger H arrison fo r th e ‘ im e and troub le he to ok to prep are th e in te rv ie w , and for
his very va lu a b le co m m e n ts on the co n te n ts o f the related unit.
W h ils t every e ffo rt has been m ade to locate the o w n e rs o f c o p yrig h t m aterial in this b o o k, th ere m ay have oeen
som e cases w h e n th e pub lishers have been u n ab le to co n ta c t th e o w n e rs. W e sh o u ld be g ra te fu l to h e ar irom
a n yo n e w h o recog nises c o p yrig h t m aterial and w h o Is u n a c k n o w le d g e d . W e shall be p leased to m a ke the
n ecessary a m e n d m e n ts in fu tu re e dition s o f th e book.
Printed in Thailand
To th e stu d en t 4
To the tea ch er 5
B U S IN E S S T O P IC S
5 O p eratio n s m an agem en t 22
6 Production 26
E F F E C T IV E C O M M U N IC A TIO N
23 W riting p aragrap hs 96
L IS T E N IN G P R A C T IC E
In terview s w ith b u sin ess people: exercises 104
Listen in g scripts
A n sw e r key 121
3
To the student
Why was this book w ritten? u n iv e rsity stu d en ts (a ca d e m ic w ritin g ) and b u sin e ss
p eo p le (rep o rt w ritin g ). F in a lly a unit on 'C V and job
C o n v e n tio n al co u rse b o o k s cov er so m e areas of b u sin e ss,
in te rv ie w ' w ill h e lp those p eo p le lo o k in g for a jo b - now
n ot all. They h av e texts and a rticle s that m ay be o ut o f d ate,
o r in the futu re.
or tli a I in clu d e a lot o f lan g u ag e th a t is not relevan t. The
B u sin ess E nglish H a n d b o o k is d ifferen t: Audio CD and listening exercises
i It aim s to co v er all the m a in to p ic areas an d all the m ain T h e re is an au d io C D attach ed to this b o o k . It co n tain s ten
c o m m u n ica tio n sk ills in one book. liste n in g activ ities. L isten at h o m e, in y o u r car, o r in class.
It aim s to be h ig h ly fo cu sed , w ith lan g u ag e bc'ing ch osen Try the exercises (p ag es 1 0 4 -1 0 8 ). Final!'.- listen ag ain and
for m ax im u m u se fu ln e ss an d ju st the rig h t d eg re e of read the script.
ch allen g e for h ig h -lev el learn ers.
W h ere there is a d ifferen ce b etw een B ritish and Website references
A m e rica n E n g lish , the w ord o r term m o st freq u en tly You w ill n o tice w e b site referen ces at the b o tto m o f the page
used in in te rn a tio n a l b u sin e ss c o n te x ts h a s b een used, in u n its 1—12. These h av e b een in clu d e d so that you can
fh e altern ative w ord or term is g iv en in b rack ets. fo llow up the to p ic o n y o u r ow n, acco rd in g to y o u r
It p ro v id es in te re stin g and m o tiv a tin g listen in g in terests. T h e sites con tain a lot o f m aterial th at w ill g iv e
activ ities, lin ked to the units. yo u good read in g p ractice and also h elp y o u w ith p ap ers
If you w o rk th ro u g h this b o o k from b e g in n in g to en d , y o u and p ro jects if yo u are a stu d en t. W e h a v e in clu d ed the
will h av e cov ered the w h ole o f b u sin ess. You w ill h av e h o m e p ag e only, w ith a few b rie f h in ts to h elp you n av ig ate
stu d ied all the m o st im p o rta n t v o ca b u la ry and all th e m o st to the relev an t p ag es. You m ay h a v e to d ic k aro u n d the site
im p o rtan t sp e a k in g and w ritin g te ch n iq u e s n e e d ed for a little b e fo re y ou find w h at yo u w ant.
w o rk o r study.
How should I use this book?
How is the book organized? You can stu d y an y u n it in any o rd e r (w ith the e x c e p tio n of
O n e u n it co n sists o f fo u r p ages: u n its 2 0 -2 2 ).
www.gics.standardandpoors.comwww.businessnameusa.comwww.sba.gov/managing
INDUSTRIES AND COMPANIES
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IT Services (coASulti a <j , d A t A
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procassiA^, etc")
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1.1 Fill in the m issing letters. 6 One of America's largest and most diverse corporations,
1 Goods that are carried by ship, train or aircraft are called its products cover power generation, jet engines,
'fr t'. financial services, medical imaging, etc. The name of its
industry group reflects the wide range of activities.
2 A product used in the home is a ' h o . Id product'.
/ _____________________
3 Pieces of electrical equipment used in people's homes are
7 A global health care company, famous for making Viagra;
'app____________ s'.
its competitors include Glaxosmithkline and Novartis.
4 The words 'clothing' and 'drinks' are conversational. In a
/ __________________
business context you often see the words 'app I' and
8 The largest private employer in the US; $9 out of every
'bev__________ s'.
$100 that Americans spend on shopping is spent in their
5 Rooms, equipment or services that are provided for a
stores. / __________________
particular purpose are 'fac ________s'.
9 A worldwide delivery company; it also offers customs
6 Another term for 'property' is 'r e_________ '.
handling, international trade management and supply
7 The business of buying and selling shares is called
chain d e s ig n .______________________/ .
'b r ________age'.
10 Manufactures hardware such as switches and routers that
8 Public services used by everyone are 'u _ . . ____ s'.
allow the Internet to function and computers to talk to
1.2 The w ords appliance, device, eq u ip m en t and each o th e r .______________________/ _
m achinery are similar. Com plete the collocations by
1.5 Complete the definitions using the words in the box.
choosing the best one.
household appliances business solutions
1 kitchen / office / standard
consumer durables fabrication finished goods
2 heavy / agricultural / construction . _
food and beverages non-durable goods raw materials.
3 a handheld / labour-saving / safety
4 a household / domestic / e le ctrical______________________ 1 M anufacturing is the transformation of
________________________________ into
1.3 Underline the correct w ords. Some industries, like
1 Goods that are needed and used all the time are in the semiconductors and steel, use the term
consum er discretionary / consum er staples sector. in place of 'm anufacturing'.
2 Goods that are not basic to people's lives are in the 2 are manufactured goods that
consum er discretionary / consum er staples sector. are not destroyed by use, such as automobiles,
or furniture.
1 .4 First match the com pany nam es in the box to the
3 _____________________________generally last for only a short
descriptions below . Then w rite the industry group from
time. Common examples are __________________
the mind map (see first exam ple).
apparel, office stationery and gasoline.
Cisco Citigroup ExxonMobil GE (General Electric) Sometimes a manufacturing company positions itself as a
Intel Pfizer Proctor & Gamble Wal-Mart service company. Microsoft, IBM and SAP are good
PwC (PriceWaterhouseCoopers) UPS (United Parcels Service) examples. They offer not just products, but
5 The world's #1 maker of household and personal products; the CEO, but t h e _________________________________ (including
more than twenty of its brands are billion-dollar sellers the CEO) run the company on a day-to-day basis.
(including Ariel, Fairy, Gillette, Pampers and Pantene).
/ ______________
8
INDUSTRIES AND COMPANIES
3 A _ is simply money that also appointed by the board. The investment bank takes
somebody owes. A . _ refers to some risk as they 4 that all the
an am ount of money that a company owes, but it can also shares will be purchased - referred to in legal terms as
mean the legal responsibility for paying for something. 5_________________________________ the issue.
4 Many people work for themselves, with the legal status of The flotation will bring a huge amount of new capital into
sole trader. If they are a plumber or a shop-keeper, they are the business. Most of this is 6 _
likely to refer to themselves a s . and used for expansion, but some will go to the people
If they are a professional w ho works for several companies with privately-7 shares who
(eg a journalist or independent consultant), they are likely started the original company. Nearly alw ays these people
to refer to themselves as a . then continue as part of the management team, although
5 The w o r d ________________________________ can just be a they may find it difficult to adjust to the red tape,
synonym for 'com pany'. But it is more often used for a shareholder pressure, and other
small company providing a professional service, such as a 8______ „ of a listed company.
of accountants, lawyers or
architects.
Com plete the reasons for a m erger or acquisition
6 A ■ J is when tw o companies join by m atching the beginnings of sentences 1-8 w ith the
to form one. The suggestion is that the process is best ending a)-h).
welcomed by both sides. An .
1 To expand the business quickly, particularly
when one company buys another. The process could be
2 To expand more cheaply than by internal growth, although
unwelcome by the smaller company, w ho might feel that
they are being taken over. if □
3 To meet the needs of customers w ho are demanding
The text b elo w explains the process of becoming a additional products and services
public company. Fill in each gap w ith a w ord from the 4 To gain economies of scale, ie have lower costs and
box. 5 To gain control of .
6 To gain market power: the larger, merged company will
appoint constraints guarantee held make the w hole market less competitive
issue reinvested run underwriting
7 To gain entry into a foreign market, or avoid □
8 To become and be □
' hen a privately-owned com pany reaches a certain
a) a key supplier of raw materials or components.
size, it may decide to ‘go public’ and b) and therefore prices and margins will increase.
shares on the stock market. c) seen as a global company.
This process is called an Initial Public Offering (IPO ), or a d) if there is cash available on the balance sheet.
flotation, or a ‘listing’ on the exchange. e) increased efficiency through larger size.
The process is com plicated, and months of planning f) legal restrictions imposed on foreign-owned companies in
are involved. The business is probably being that market.
2 by just a few key people who g) that the company can't supply.
were the founding m embers. Before the IPO, they have to h) the market thinks a company is a takeover target, its share
price will go up and it will become more expensive to buy.
Discussion topics
1 In five years' time, the industry group I'd most like to work 3 If I w as an entrepreneur with a lot of money, I'd create a
in is because start-up company making / supplying / offering ...
One day I w an t to be a freelancer working for myself - 4 Most mergers fail to produce the expected benefits (fact).
it'll be much more rewarding than being the CEO of a Why?
large corporation.
A g re e D isagree
Globalization and economic policy
It's a recess/or. when your neighbour loses his jo b it's a depression w h en you lose you r own,
Harry S. Truman (1884-1972), thirty-third president of the United States
In ev ery turn o f the cy cle, the p ace o f g lo b a liz a tio n is likely Measuring and analysing global trade
to in crease - p a rticu la rly d u rin g the 're c o v e ry ' and 'g ro w th ' W h e n a n a ly sin g trad e, im p o rtan t co n ce p ts are:
phases.
B alan ce o f trad e. T h is is d ie d iffe re n ce b e tw e e n a
R em em b er th at n o t all recessio n s lead to a d ep ression - n a tio n 's im p o rts and exp o rts. If a co u n try e x p o rts m ore
there m ig h t ju st be a m ild slo w d o w n in the e co n o m y (seen to its trad in g p a rtn ers th a n it im p o rts, th en it h as a 'tra d e
as a red u ctio n in G D P - g ro ss d o m e stic p ro d u ct). s u rp lu s'. O th e rw ise it h as a 'tra d e d e fic it.
B a la n ce o f p ay m en ts. T h is is a m u ch w id e r m easu re - it
Company strategy in the face of in clu d e s im p o rts and e x p o rts of g o o d s as ab ov e, b u t also
globalization in clu d e s serv ic es and in v e stm e n ts.
If a co m p an y w a n ts to trad e o u tsid e its ow n n atio n al : E x ch a n g e rates. C u rre n cie s (d ollars, eu ros, yen, etc)
b o rd ers, it h as three b a s ic stra te g ies, d ep en d in g on th e lev el flu ctu a te a g a in st e a ch o th e r a cco rd in g to su p p ly and
o f in v o lv e m e n t in the foreign m arket. T h e se three are not d em an d . If the v alu e o f a cu rren cy falls, exp o rts increase
m u tu ally ex clu siv e , and o n e can o ften lead to anoth er: (b ecau se th ey b e co m e c h e a p e r fo r o v erse a s cu sto m ers)
Im p o rt / Lxport. T h is is the lo w est risk b u t also g iv es and fo reig n in v e stm e n t is stim u la ted (b e ca u se d o m estic
the lo w e st p rofit p o ten tial. R elated o p tio n s in clu d e asse ts are c h e a p e r for fo reig n ers). O n the o th e r hand,
fran ch isin g and foreign licen sin g. im p o rte d g o o d s b e co m e m o re exp en siv e, and con su m ers
O u tso u rcin g . If co m p a n ie s w an t a d ee p e r level of feel this as a d rop in th e ir liv in g stan d ard s.
2.1 Fill in the m issing letters. M atch the com pany responses to globalization to
1 It is dangerous for a company to stand aside while their descriptions 1-7 below .
competitors rn e (= join together), form j t foreign subsidiary import / export joint venture
ven es, or create overseas divisions. franchising outsourcing strategic alliance licensing
2 A 'sub .y' (= company owned by another
company) is not the same as a 'sub y (= money paid 1 A company gives the right to m anufacture its product to a
by a government to support a business). foreign company for a fee (= royalty). This has been done
successfully by Coca-Cola and Disneyworld, although in
3 A less formal synonym for 'bureaucracy' is 7 __t_____ ’ .
other cases the local producer may choose to use a
4 A technical word for taxes on imported goods is
different brand name.
'ta s', A word for limits on the quantity of goods
2 Similar to 1, but the term is usually used for small
that can be imported is 'q u s'.
businesses in the retail and service sector like McDonalds
5 'The euro against the dollar' (€ /$) is currently 1.28. 'The
and The Body Shop. Head Office has tighter control of the
dollar against the yen' ($ /¥) is currently 115. These are
local business operation than in 1, and the name and
examples of 'ex^ _ _ge r s'.
brand image are always retained.
6 If a currency falls in value, domestic a ts are cheaper
for foreigners to buy.
3 A company (usually small or medium-sized) trades directly
2.2 Find w ords w ith a sim ilar m eaning and then put with another separate company in the foreign market.
them in order to sh o w the business cycle. Sometimes an intermediary (eg a local agent) matches
buyers and sellers and provides services like dealing with
boom contraction depression downturn
customs and documentation. Retailers often use this
expansion grc-wtir recession recovery
strategy for supplies of clothing, furniture, toys, etc.
slowdown slump upswing
2.5 There are a variety of policy responses to changes According to the texts, are these statem en ts true (T) or
in the econom ic clim ate. Read the texts and then false (F).
an sw er th e questions below . 1 Fiscal policy consists of taxation and spending decisions,
and is under the control of governments. Monetary policy
iscal policy refers to the government’s efforts to keep the consists of interest rate and other money supply decisions,
economy stable by increasing or decreasing taxes and and is under the control of central banks. T / F
government spending. 2 Government spending resulting from high taxes gives a
High tax rates slow the economy b ecause they take stimulus to small businesses. T / F
money out of the private sector and put it into the hands of 3 High taxes can give new opportunities for certain businesses
government. They also discourage small businesses by (eg in the defense or medical supplies sectors). T / F
decreasing profit margins and making effort less rewarding. 4 Raising interest rates is a w ay of stimulating the economy.
But high taxes also mean that more money is available to T /F
spend on education health, defense, highways and social
programs. In practice, most governments spend more than Underline the correct w ord s.
they collect in taxes, creating a national debt. Reducing this 5 Having an 'expansionary monetary policy' is the same
deficit is politically unpopular as it involves cutting public thing as increasing / decreasing the amount of money in
benefits. circulation, which will provide a stim ulus to / cool the
Monetary policy refers to the role that central banks have economy, which over the long term runs the risk of
creating Inflation / deflation.
In controlling the money supply. If there is more money in
circulation, demand in the economy increases, but so does Now underline all the m easures th at can be taken -
inflation. Central banks (‘the Fe d ’ in the US; ‘the E C B ’ in the according to the text - if fighting inflation (ie slow ing
EU) can act in three main 'ways: the econom y) is th e only consideration o f policy.
^ W O T A r A ly S iS :
M o r it o r ir ^ a m3 AdAptiruj plArS CcoMpArir<j
M A T k a t p o S it io r
ActuAl dAtA w ith forecAStS, A ctir^ or feedbACk
froM customers Ard suppliers, A ctir^ or A r A ly S in j t h e p ro d u c t
reports prepAred by f ir s t - l ir e MArAvars') p o r t f o lio , ir c lu d ir ^ S tA ^ e
i r th e lif e cycle
C o r t r o llir ^ b u d gets
o f m a i r pr'oducts
(MpleMertinj plArS,
procedures Ard projects A r A ly S ir ^ f ig u r e s
f o r p r o f it c a r t r e s
PrSurirA th A t objectives Are C t b A t Add v A lu e -)
.^ M A R T (Specific, weASurAble, Ard cost c a rtre s
Agreed, reA liStic Ard CthA t Spard budgets')
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Id a rtify ira cuStoMer reads,
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B so A n d A Ad S t M o r
EvAluAtir^ c u r r a r t MArkets-.
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www.tutor2u.net (> Revision Notes/Strategy) www.quickmba.com (> Strategy) www.netmba.com (> The Strategic Planning Process)
Corporate strategy and structure: Exercises
Fill in the m issing letters. 3.4 Pairs of w ords in bold have been sw itched - one
1 Inside a company, large customers are often referred to as from each colum n. Put them back in their correct places.
'k a s'. 1 market channel 7 _ c o re grow th
2 COO stands for 'C f 0_ . jg 0 _ r'. 2 cost value 8 distribution research;
3 A matrix structure brings together people from different 3 earnings business 9 mission needs
parts of the organization to work as c - 4 management loyalty 10 market portfolio
f________________I t s. 5 customer statem ent 11 shareholder centre
4 The delegation of decision-making is likely to lead to a 6 product share 12 brand hierarchy
higher level of morale at 'the gra oots' (= the ordinary
people in an organization rather than its leaders). W hich of the collocations in exercise 3.4 refer to:
5 Each manager supervises a number of sub s. 1 using a questionnaire to carry out a survey
6 In relation to an existing market, the 'big picture' strategy market research
can be one of dev nt (growth), 2 the main activity of a company that generates most of its
conso . ion (making the existing situation stronger), profits
or wi wal (leaving the market completely). 3 financial benefits (= increase in share price and dividends)
for the owners of the company
3.2 Com plete each phrase 1-10 w ith an ending a)—j).
4 the whole range of products that a company sells
1 Operational planning translates general goals
2 It is usual to divide an organization □
5 when customers are faithful to a particular product
3 Some companies are organized according
4 The Board gets involved
6 a business unit that spends money but does not generate
5 Senior managers set [
revenue
6 Middle managers develop detailed plans based □
7 a continuing increase in profits
7 First-line managers implement plans
8 First-line managers are also responsible 8 w hat is shown in an organigram (= organization chart)
9 A cross-functional team brings
10 Subordinates work 9 senior management's vision for the company
3.3 The mixed-up letters m ake w ord s th at describe 2 organize people so that they w ork together effectively
departm ents or functional areas inside a company. Put
the letters in the right order. 3 give someone a job to do
2 cmoesutr scrieevs 10 Igael 5 have the power to make decisions; make something
operate in the w ay that you w ant
3 qtuialy crotnol 11 siihnppg
6 make certain that something happens
4 rsaceerh and dvnolpmeeet 12 facnine
7 change something to fit a new situation
5 pbiluc rnotilaes 13 metakrnig
8 watch or measure something carefully for a period of
6 pejcrot mmeegnnaat 14 atnccous
time to see how it changes .
7 aiiisdttrnmaon 15 pasuirchng (= buying, BrE)
9 (formal) think about or test something before deciding its
8 bnlliig 16 pcroenremut (= buying,
value, suitability or effectiveness___________________
AmE)
10 (formal) control w hat something will be; officially decide
something; find o u t ___________________
CORPORATE STRATEGY AND STRUCTURE
3.7 Use th e w ords in the box to com plete the SW OT 3 .8 Look back at the com pleted SW O T an alysis in
analysis below . exercise 3.7 and find a w ord th at m eans:
alliance barriers climate debt depth one-stop 1 a situation in which you do not have enough of something
outdated overhead range shortage start-up
state-of-the-art tailor-made transfer workflow 2 depending too much on something
3 'sales staff' (the answer is a short form of a longer word)
S tren gth s (stro n g points, in te rn a l) 4 a building used for a particular purpose (especially for
■ a Large m arket share m an ufacturing ) _
a w ell-sim ctu red d istrib u tio n n etw ork 5 when everyone w ho w ants the product already has it
m o tiv ated and w ell-train ed staff
(= c u ttin g ed ge) products
(= custom ized / personalized) 3.9 Tick (✓) the one statem en t th at is true.
products 1 Targets and goals tend to be more general. O bjectives and
all services provided in o n e p lace: a aims tend to be more specific, with aims being the most
sh op ’ concrete and measurable. □
a w ell-k n o w n , h ig h -v alu e brand 2 A im s and goals tend to be more general. O bjectives and
W eaknesses (w eak p o in ts, in te rn a l) targets tend to be more specific, with targets being the
a lack o f new products most concrete and measurable
a lack o f m an agerial h (= am ou nt
: M anagers should m ake sure th at business
o f know ledge and e x p e rie n c e )
objectives are SMART. Can you rem em ber w h a t these
(= old fash io n ed ) pro d u ction
letters stand fo r? Don't look back at the mind map until
m ethods
you have tried to think!
h igh levels of 6 (= m oney owed to
banks and o th e r cred ito rs) Sp___________c, Mea le, Ag d,
■ slow _ (= progress o f work d o n e) Rea ic, and Ti -specific
due to in flex ib le procedures
> an o v er-re lia n ce cat a lim ited 8 __________ of
products
high d irect costs (= p ro d u ctio n costs) and high
in d irect costs (9 ____________ eg u tility bills)
ou tso u rcin g
a key supplier w ho m igh t w ant to m ake a strategic
11
17
Managing people
If I had to sum up In a w o rd w h a t m akes a g o o d manager, I'd say decisiveness. You can use th e
fanciest com p uters to g a th e r the nutnbeis, b u t in th e e n d yo u have to set a tim etable a n d act
Lee lacocca (1924-), A m erican in du strialist
Motivation Communication
T h e ability to m o tiv ate o th ers and im p ro v e m o rale is a 's o ft C o m m u n ic a tio n is tw o -w ay : to p -d o w n and b o tto m -u p . It
sk ill' - d ifficu lt to acqu ire and a lm o st im p o ssib le to can also be extern al: the PR (p u b lic re latio n s) fu n ctio n
m easu re. F ou r key th in k ers c o n trib u te d to this field in the h an d les this.
1950s and 60s, and th eir w o rk is still the b a sis for In sid e an o rg an izatio n , in fo rm al c o m m u n ica tio n h ap p en s
co n tem p o rary ap p roach es: all the tim e: e v ery o n e e n jo y s d iscu ssin g 'o ffice p o litics' at
1 M aslo w d ev elo p ed his 'h ie ra rch y o f n ee d s', the w a te r co o ler and p ick in g up in fo rm a tio n 'o n the
se lf-a c tu a liz a tio n n eed s g ra p e v in e ' (= p assed from o n e p e rso n to a n o th e r in
ego (self-e ste e m ) n eed s co n v ersatio n ). F o rm al co m m u n ica tio n is th ro u g h the
: social need s m ed iu m o f m eetin g s, p re se n ta tio n s, rep o rts, etc, and these
secu rity n eed s are cov ered in the seco n d h a lf o f this b o o k . B u t tw o oth er
p h y sio lo g ica l n eed s key c o m m u n ica tio n sk ills are n o t p o ssib le to p ractise in a
W e m ov e to the n e x t stag e u p o n ly w h e n the lo w er n eed b ook:
is m et. A n d as soo n as any n e e d is m et, then it is no 'A ctiv e liste n in g '. T h is m e an s listen in g w ith full
lo n ger a m otiv ator. T h e b o tto m tw o are u su ally n o t an atten tio n , n o t in te rru p tin g e x ce p t to ask for clarificatio n ,
issu e in b u sin e ss (u n less y o u are h u n g ry or in d an ger). and g iv in g c o n sid e ra tio n to the o th er p e rs o n 's p o in t o f
A fter that, o u r n e x t n eed is to feel acce p te d and p a rt of a view.
group (social n eed ). If th at h ap p en s, th en n ex t w e have 'A ss e rtiv e n e s s '. T h is m e an s sta tin g y o u r n ee d s and
ego needs: re co g n itio n and ack n o w le d g e m e n t from o p in io n s co n fid e n tly and clearly, w ith o u t on the one
o thers, as w ell as a sen se o f statu s o r im p o rtan ce. Finally, han d b e in g in d ire ct o r 'su ffe rin g in sile n c e ', or on the
if that n eed is m et, w e w a n t se lf-fu lfilm e n t ('self- o th er b e in g a g g re ssiv e and ru de.
a ctu a liz a tio n ' in M a slo w 's term s): to ach iev e , to d ev elo p
to o u r fu llest p o ten tial. Teamwork
H erzberg exp ressed sim ila r id eas. H e ag reed that the A team (or 'ta s k fo rc e ' or 'w o rk in g p a rty ') n e e d s a v ariety of
m ost im p o rtan t m o tiv a to rs at w o rk w ere sen se of p e rso n a lity ty p es to p e rfo rm w ell:
a ch iev em en t, earn ed re co g n itio n and in te re st in the job 'H e a d ' p e o p le w h o are g oo d at th in k in g and p ro b le m
itself. B u t then there w as a n o th e r set o f jo b facto rs solv in g.
('h y g ie n e ' o r 'm a in te n a n c e ' facto rs) th a t do n o t m o tiv ate d 'H a n d s ' p e o p le w h o are g oo d at d o in g and acting.
em p lo y ees, b u t c a n cau se d issa tisfa ctio n if they are 'H e a r t p eo p le w h o are g o o d at n e tw o rk in g and
m issin g . T h e se in clu d e salary, jo b security, w o rk in g reso lv in g con flicts.
c on d itio n s and go o d relatio n s w ith co -w ork ers. O n ce a team h as b e e n se t u p , it u su ally g o es th rou gh the
M cG re g o r o b serv ed that m an ag ers g e n era lly fall into five stag e s o f d ev e lo p m e n t id en tified b y B ru ce T uckm an:
tw o categ o ries: T h e o ry X and T h e o ry Y. T h e o ry X F o rm in g . P eo p le g et to k n o w e a ch other.
m an ag ers b e lie v e th at m o st p e o p le d islik e w o rk and
S to rm in g . T h is refers b o th to 'b ra in s to rm in g ' as id eas get
m u st be co n tro lle d and d irected to ach iev e the
su g g e ste d fo r the first tim e, and also to co n flicts that
o rg a n iz a tio n 's goals. T h e o ry Y m a n a g e rs b e lie v e that
arise as team m e m b e rs clarify th eir roles and
m o st p eo p le lik e w o rk and a ctiv ely see k resp onsibility.
exp e ctatio n s.
T h ey b elie v e in e m p o w e rm e n t (= g iv in g e m p lo y e e s the
au th o rity to m ak e d ecisio n s w ith o u t trad itio n al N o rm in g . M e m b e rs sort o u t a w ay o f w o rk in g to g eth er
and b e g in to 'o w n ' and sh are the team o b jectiv es.
m an ag erial ap p ro v al) and e n a b lin g (= g iv in g th em the
tools). P erfo rm in g . M e m b e rs focu s on so lv in g p ro b le m s and
L e A d e r ^ h ip * -ty la *
2. M o A ito r per-forMAAce
MANAQINQ 3 . CoM pAre r e s u lt s a ^a i A St
e stA b lish e d StA A dA rd S AAd
PEOPLE coMMWAicAte r e s u lt s / deviA tioA S
t o employees iAvolved
Work. te A MS
ProbleM~SolviA^ teAM S
C r o s s —fuA ctioA A l teAM S
P r o je c t teAM S T h e o r i e .*
M a s low
H e rib e r ^
Me Q re q o r
L ru c k e r
TaAM role.*
'H e A d N people
'H A A d s' people CAlAry AAd proMotioA
'H e A r t ' people CCee U A it IP)
E x t e rA A l CPublic R e lA tio A S ')
a s well a s iA terA A l
IA-forMAl AS well AS fo rm A l
Top-dowA AS well as bo tto M -u p 3ob de*i^A
L t a ^ e s o-f teA M developM eAt
A s s e r tiv e A e s s E MpowerMeA t AAd eAAb 11a ^
fo rM i r\^ | S to rm i a^ , ro rm i a^ ,
J o b eA richM eA t
perforMiA^, AdjourxiA^ A c t iv e liSteAiA^
www.mindtools.com (> Leadership Skills) www.inc.com (> Leadership) www.1000ventures.com (> Organization / People Power)
f Managing people: Exercises
I
' c o m m _ . nt' (= enthusiasm, determination and a n the 1990s Xerox w as in trouble. : Anne Mulcahy, a
strong belief in w hat they are doing). company insider, realized how serious the situation w as -
customers were leaving, morale was low, and the company
4.2 Decide w h eth er the phrases b elo w best describe product line was too unfocused. 3She becam e C EO in 2000
m anagers (M) or leaders (L). and immediately began a listening tour, seeking insights
1 welcome change Q 5 good at motivating from employees, custom ers and industry experts on where
2 welcome stability Qj 6 good at supervising [3 the company had gone wrong. 4What strategic options were
3 look at the details □ 7 four make a team open to Xerox? 5lt could focus on laser or ink-jet, high-end
4 look at the big picture □ 8 four is three too many or low-end, single-function or rnulti-function. r And which
areas of the business were going to be cut? R&D was
4.3 Read the text then an sw e r the questions below.
traditionally strong at Xerox but used up a lot of internal
resources. 8Mulcahy and her team worked out a plan. 9First,
he work of Maslow and Herzberg has been developed
they would focus on cash generation, second they would
into the theory of 'job enrichment'. This theory states that
cut costs wherever possible (R&D w as saved from this), and
there are five characteristics affecting an individual's
finally they would focus exclusively on areas where Xerox
motivation and performance:
had a competitive advantage. :0Mulcahy took time to
Skill variety. The extent to which a job demands
explain this plan to front-line employees. "In addition, she
different skills.
made sure that everyone explained it to customers as well,
Task identity. The degree to which a job has a visible
and made many customer visits herself.
outcome.
Task significance. The degree to which a job has an
Now w rite the sentence num bers th at match the stages
impact on the work of others.
below .
Autonomy. The degree of freedom and choice that
a) Accept there is a problem; define the situation. ]
people have in scheduling work and determining
procedures. b) Collect information and ideas.
Feedback. The amount of direct and d e ar information c) Analyse information and develop alternatives. to
that is received about performance. d) Make a decision on the best alternative. to
e) Communicate the decision and begin implementation.
C t o Q
20
4 MANAGING PEOPLE
4 .5 Study the collocations related to decision m aking. 7 - thinks carefully and accurately about
Check an y unknow n w o rd s in a dictionary. things; listens patiently, may lack energy to inspire others
3 - has expert knowledge in key areas;
achieve, define, establish, fail in, fall short of,
an objective may be uninterested in all other areas
fulfil, identify, meet, reach, set
'Hands' people
address, cause, clear up, create, deal with,
a problem 4 - takes basic ideas and makes them
give rise to, handle, overcome, resolve, solve, tackle
w ork in practice; methodical and organized; can be slow
accept, agree to / with, come up with, make, offer,
a suggestion 5 . . - gets involved quickly with lots of
put forward, reject, rule out, take up, turn down
energy; more interested in the final result than the process;
arrive at, come to, defer, make, overrule, overturn,
a decision may be impatient
postpone, put off, reach, reverse, take
6 . - likes completing things on time, on
collective, critical, crucial, difficult, hard, important,
decision budget, and to specification; can w orry too much
joint, key, major, tough, unanimous
'Heart' people
anticipated, desirable, eventual, expected,
outcome 7 - central person w ho makes sure
favourable, final, likely, satisfactory, successful
everyone works well together; helps everyone focus; can
N ow divide the w o rd s in each box into three groups, be seen as too controlling
based on their m eaning. 8 . - caring, a good listener, and works hard
to resolve problems, may have difficulty making decisions
achieve, meet, define, identify, fail in, fall .. 9 - enthusiastic, sees the big picture and
.... , an objective
reach, fulfil establish, se t short o f good at explaining it to people outside the group; can be
too optimistic and lose initial energy
a problem
Change each adjective describing people into its
opposite.
a suggestion
1 accurate ___ accurate / . precise
2 careful care_______
a decision 3 conservative inn, ve / r a .........al
4 decisive decisive / h e s ___ _____
5 efficient ___ efficient / w a eful
decision
6 enthusiastic enthusiastic / b_ _ed
7 flexible flexible / r id
outcome 8 hands-on I________ez-f____ e
JZ
9 lazy
£
C
CTi
I
I
t
I
Match the team roles in the box to the descriptions 10 patient patient
below. This exercise is based on the ideas of Belbin and 11 polite . _polite / r
M argerison-M cCann. 12 reliable reliable
Coordinator Innovator Evaluator Finisher 4 .8 Com plete each sentence using either s e n s ib le or
Implementer Promoter Shaper Specialist Team worker s e n s itiv e . These adjectives are often confused.
Discussion topics
1 All this M aslow and Herzberg stuff is garbage. There's 3 The best communicator inside an organization
only one thing that motivates people: money. that I have ever known is (name).
A g re e D isag ree He / She is such a good comm unicator because ...
2 All this stuff about team w ork is garbage. If you w ant 4 Looking at the nine team roles in exercise 4.6, I think I am
to do a job properly, do it yourself. a ... (role) because ...
A g re e D isag re e Someone w ho I really enjoy working with is called
(name). He / She is a
(role) because ...
21
Operations management
The first rule o f any tech n o lo g y u sed in a business is th a t a u to m a tio n a p p lied to an efficien t
o p era tion will m agnify the efficiency. The se c o n d is that a u to m a tio n a p p lied to an in efficien t
opera tion will m agnify th e inefficiency.
Bill Gates (1955-), co-founder of Microsoft Corporation
What is 'operations'? H o w can w e red u ce the tim e -to -m a rk e t (=■ tim e taken
from co n ce p t b rie f to the lau n ch ) or the ro ll-o u t
O p eratio n s h as b e e n d efin ed as 'th e use o f reso u rces that
(= p h ased in tro d u ctio n ) o f the n ew p ro d u ct?
are d ev o ted to the p ro d u ctio n and d eliv ery o f p ro d u cts and
serv ices'. In fact it is the 'c o re b u s in e ss ' o f the com pany,
Managing the supply chain
w ith o th er fu n ctio n s like m ark e tin g , fin an ce and h u m an
A m a n u fa ctu re r m ig h t h av e a c o m p o n e n t m ak er a s a first-
reso u rces sim p ly a ctin g in su p p o rt. It in clu d e s p ro d u ct
tier su p p lier, b u t also the co m p o n e n t m a k e r's s u p p lie r (eg a
d ev elo p m en t, m an ag in g the su p p ly chain, p ro d u ctio n
raw m ate rials co m p an y ) as a se c o n d -tie r su pplier. Together,
p lan n in g and con tro l, b illin g and sh ip p in g , and all those
they fo rm the 'u p stre a m ' or 's u p p ly sid e' e n d o f the
d ay -to -d ay activ itie s cov ered b y the term 'a d m in istra tio n '.
n etw o rk . Equally, they m ig h t h av e a d istrib u to r as a first-
T h e o p eratio n s fu n ctio n has five b a sic p e rfo rm an ce
tier cu stom er, b u t also the d is trib u to r's c u sto m e r (eg a
o b jectiv es. T h e y m ean d iffe re n t th in g s for the org an izatio n
re tailer) as a seco n d -tie r cu stom er. T ogether, they form the
and the cu stom er:
'd o w n s tre a m ' or 'd e m a n d sid e ' end o f the n etw o rk .
f o r the organization For the customer
S u p p ly ch ain m a n a g e m e n t in clu d es:
Q u ality e rro r-free p ro cess p ro d u cts that
P ro cu re m e n t (= so u rc in g + p u rch asin g ) from first-tier
are o n -sp ec
su p p lie rs (A m E v en d ors).
C ost h ig h le v e l o f c o m p e titiv e p rice M aterials m a n a g e m e n t in sid e the p lan t. T h is in clu d e s
p ro d u ctiv ity in v e n to ry (= sto ck ) m a n a g e m e n t and p ro d u ction
D ep en d ab ility o p e ra tio n a l reliab le d eliv ery p la n n in g and con trol.
s ta b ility (q u an tity and tim e) L o g istics (= d istrib u tio n ) to first-tie r cu sto m ers.
Flexib ility a b ility to resp o n d v o lu m e an d d eliv ery T h e re are sev e ral im p o rta n t stra te g ic issu es:
to ch an g e a d ju stm e n ts; w ide . Sh o u ld the co m p a n y d irectly o w n any p a rts o f the
and freq u en tly su p p ly ch ain ? If it d oes, then this is v ertical in tegratio n .
u p d ated p ro d u ct Sh o u ld the c o m p a n y op t for sin g le o r m u lti-so u rcin g ?
ran ge H av in g ju st one s u p p lie r w ill m e a n good
S peed fast th ro u g h p u t sh o rt 'le a d -tim e ' c o m m u n ica tio n w ith a d ep en d a b le partn er, and also
'o n -sp e c ' = h a v in g the requ ired sp e cifica tio n s e co n o m ies o f scale (= co st sav in g s from b u y in g in large
'lea d -tim e' = tim e from p la cin g the o rd er to re ce iv in g d eliv ery q u an tities). B u t d isa d v a n ta g e s in clu d e risk s asso ciated
w ith a failu re o f supply, and g iv in g the su p p lie r the
Developing new products ch an ce to p u t u p w ard p ressu re on p rices.
In itial id eas for a n ew p ro d u ct m a y co m e from m ark e tin g H ow m u ch o f the p ro cess can m ig rate to the w eb , eg
or o p eratio n s. T h ese id eas are turned in to a 'c o n c e p t b rie f' fin d in g the b e st p rice, d eliv ery tim e and sp ecificatio n s
- this is a clear state m e n t d escrib in g the form , fu n ctio n , th ro u g h e-p ro cu re m e n t?
p u rp o se and b e n e fits of the p ro d u ct. Im m e d ia te op eratio n al T h ese d ays m an y o rg a n iz a tio n s, e g film co m p a n ie s h av e a
issu es arise: 'v irtu a l o p e ra tio n '. T h e o rg a n iz a tio n bu y s in the ran g e of
• Feasibility. C an w e actu ally do (or m ak e) this? D o w e fu n ctio n s it n eed s fo r a p a rtic u la r p roject, b u t at the end of
hav e the sk ills/ ca p a city / re so u rce s? the p ro je ct this n e tw o rk d isap p e ars. T h is g iv es flex ib ility
V ulnerability. B ein g p essim istic, w h at cou ld go w ro n g? and sp e ed , b u t the com p an y is left w ith v e ry few core
W h at is the d o w n sid e risk? c o m p e te n cie s (= key areas o f tech n ical e x p e rtise ) w h e re it
W hat m aterials, parts and c o m p o n e n ts w ill b e n eed ed ? retain s a co m p e titiv e ad v an tag e.
Is it p ossible to red uce p ro d u ctio n costs b y re d u cin g
d esign com p le x ity ? In particu lar, are there o p p o rtu n itie s
for:
a) sta n d a rd iz a tio n (restricted v ariety )?
b) c o m m o n a lity (= u sin g the sam e co m p o n e n ts)?
c) m o d u la riz a tio n (= u sin g su b -co m p o n e n ts that can be
p u t to g eth er in d ifferen t co m b in atio n s)?
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EPCK
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f e le c t r o r ic p o irt- o f- S A le T
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tecbro lo^ y t k iA t b a rd ie s
p A yM e rt A rd u p d u te s s to c k F . F k o t o t y p ir^ A rd f ir A l deSi^ r
re c o rd s i r r e t A il o u t le t s 6 . R o ll-o u t
OPERATIONS
MANAGEMENT 0 -tta.r o^£.rAtioAAl
is s u e s
5.1 Fill in the missing letters. b) 'We should be ready to launch in the spring: first in France
1 The time spent between the customer placing an order and then in Germany, Switzerland and Austria.'
and receiving delivery is the ' I -time'. c) 'We use chip-and-PIN cash registers in our stores, and
2 An initial idea for a new product has to be turned into a inventory information is automatically updated.'
'con _ _ t b f' that describes its form , function, d) 'Yes, in theory it could be a successful product, but in
purpose and benefits. practice we don't have the capacity or the resources.'
e) 'How much money could w e lose if things don't go
3 The chance of something happening or being successful is
according to plan?'
its 'fea__ _ ility'.
f) 'We manufacture a wide range of cars, but a lot of the
4 The chance of damage or harm to something is its
engine parts are the same - it makes maintenance mu< h
'vul ility'.
easier.'
5 An organization's immediate suppliers are its 'first-t r' g) 'We've got to build a working model and test it properly
suppliers. Together with these suppliers' own suppliers, before w e can go into production.'
they form the 'ups m' end of the supply network. h) 'The brainstorming session was useful, but a lot of these
6 'Pr ment' = 'so jn g ' (finding suppliers) + ideas just w on't w ork in practice.'
'purchasing' (buying). i) 'If we place a large order we'll get a much better price.'
7 A close synonym of 'supplier', more common in American j) 'They make sub-assemblies for PCs in high volume, and
usage, is 'v or'. then put them together according to the customer's own
8 The key areas of technical expertise that a company has spec.'
are its 'c_ e c o m p _ _____ cies'. k) 'There's a smart memory chip embedded into every item.
We know exactly where it is in the store, as well as where
5.2 Complete the phrases by matching an item from and when it was made.'
the first column with an item from the second. I) 'It's a successful formula. Wherever you go in the world,
1 technical throughput w e sell the same burgers prepared in the same way.'
2 a high level -free process
3 fast ■expertise 5.5 Com plete the text using these verbs: builds,
4 a frequently integration com pile, drilling, h o o k e d up, specifies, tested, welding.
5 downside of scale
C
6 vertical of productivity omputers are now used throughout manufacturing
7 economies risk to design and develop individual parts. Trie designer
8 an error updated product range various criteria such as size, shape,
materials, etc and the software 2 a
5.3 Match the tw o parts of each phrase. virtual prototype. This is then 3 _ using
1 draw up on prices given parameters. Before moving to production the
2 reduce to the web software can also T (= make) a list of
3 migrate an operation a feasibility study materials and quantities needed. O nce the design
4 put upward pressure advantage specifications are complete, the computer is
5 have a competitive into a concept brief
(= connected) directly to the machine
6 roll out design complexity
tools that make the part from an initial piece of metal
7 carry out a bill of materials
plastic or wood. Machine tool actions include cutting,
8 turn an initial idea a new product
shaping, turning, 6 (= making holes in)
5.4 Match topics 1-12 w ith the conversation extracts and ' (= joining togeii it r).
a)-l) below.
1 EPOS technology □ 7 prototyping □ 5.6 Match th ese w ord s to th eir definitions below :
2 commonality □ 8 RFID tags □ criteria, param eters, specifications.
3 feasibility □ 9 roll-out □ 1 limits that affect how something can be done
4 economies of scale □ 10 screening □
5 logistics □ 11 standardization □ 2 detailed plans about how something is to be made, or
6 modularization □ 12 vulnerability □ exact measurements .
a) 'Which shipping company will we use? And when can we 3 standards that are used for making a decision about
get the containers to the port?' something
24
5 OPERATIONS M ANAGEM ENT
5.7 The fo llo w in g w o rd s collocate w ith 'criteria': Find a w ord from the text th at m atches th e definitions.
d efine, m eet, specify, establish, fulfil, satisfy, set. The a n sw ers are in th e order th ey app ear in the text.
Divide the w o rd s into tw o groups, based on the 1 complicated and advanced in design
m eaning. 2 predictable / anticipated
a) define = _______________________ = _____ 3 punishments for breaking a rule or contract
b) _ g»e«______= ______________ = _______________ 4 easy to understand or use
O nly one of these tw o groups collocates w ith 5 be easy to see or notice (phrasal verb)
'param eters'. W hich o n e? 6 the price someone will charge you for a piece of work
7 additional amount of money you must pay
5.8 Read th e te xt abo u t e-procurem ent then an sw er 8 predicted / anticipated
the questions below . 9 making an am ount fall to a lower level in an aggressive
w ay (phrasal verb)
E
-procurement m eans sourcing and purchasing online. 10 period of time ('term' can also be used in this expression)
Different sup pliers’ offerings are often brought together
into a single catalog (B rE catalogue), the customer decides 5 .‘ Project m anagem ent is a distinct area w ithin
operations m anagem ent. Com plete the sentences below
who to buy from, and then the whole transaction process is
w ith the w ords in the box:
automated. The software is sophisticated: it allows both
sid es to negotiate solutions for certain foreseeable constraints Gantt chart milestones scope
scenarios (eg penalties for late delivery). setbacks small print stakeholders track
But the process is not straightforward. First, for a modern
1 Difficulties that stop the progress of a project are called
manufacturing operation it is rarely a question of a series of
one-time purchases from a small number of suppliers all
2 All the people with an interest in the success of a project
offering a similar product. The supply-chain relationships
are collectively called the .
are much more com plex than that.
3 A visual illustration of the different phases and activities in
Second, it’s not just about price. The procurement
a project (composed of many horizontal bars) is called a
process also needs to evaluate product availability, supplier
resp o n sive n e ss, se rv ice levels, delivery history, and
4 Before you sign a contract, it's very important to read the
customer-satisfaction ratings. These do not show up on the
system so easily and reliably.
5 The events that mark the key stages in a project are called
Finally, e-procurement has to work for the supplier too.
They receive a detailed RFQ (Request for Quotation), but
6 The factors that limit your actions (such as time and cost)
how do they respond in a flexible w ay? For example:
are c a lle d _____________________
Can they adjust details of the RFQ and make counter
7 The _ of a project is the range o f things
offers? that it deals w ith.
Can they make a rush-order surcharge?
8 If a project is 'on- ', it is going according
Can they offer different products that the customer may to plan; if you 'keep of something', you
not be aware of? pay attention to it so that you know w hat is happening.
And to build a long-term relationship, can they know the
forecast requirements of this potential custom er? Discussion topics
The main criticism of e-procurement is related to this last 1 In a customer-focused business, product development
point: that it focuses too much on short-term individual should be the responsibility of marketing, not operations.
purchases and driving down costs. It works against the A g re e D isag re e
development of a long-term relationship with a supplier. 2 A long-term relationship w ith just one supplier is better
Treating your supplier as a partner might bring far greater than having many suppliers.
returns in the long run. I A g re e D isag ree
Managing the production process T h e tech n iq u es u sed for lean o p e ratio n s are o ften called
'ju st-in -tim e ' (JIT) tech n iq u es. T h e se in clu d e:
M a n u fa ctu rin g takes p lace in a p la n t (= facto ry / facility ).
T h e p ro cess can be 'c a p ita l-in te n s iv e ' (= req u irin g a lot of M a k in g e v ery e ffo rt to e lim in a te w aste.
fin an ce) or 'la b o u r-in te n s iv e ' ( re q u irin g m an p o w e r). If D e v e lo p in g w o rk in g p ra ctice s w h ich su p p o rt
the o p eratio n is e fficien t at tra n sfo rm in g in p u ts (= 'c o n tin u o u s im p ro v e m e n t' (o ften called bv its Jap an e se
m aterials, lab o u r and in fo rm a tio n ) in to fin ish e d goo d s, n am e 'k a iz e n ').
then there is a high level o f prod u ctivity. In v o lv in g all staff in q u a lity in itiativ es.
Im p ro v in g the flow o f w o rk -in -p ro g re ss arou nd the
K ey stag es in the m a n u fa ctu rin g p ro cess are:
plant by rea rra n g in g la y o u t and u sin g m a ch in es th at are
P lan ning. T h is in v o lv es try in g to b rin g to g eth er cu sto m e r
sm all, sim p le , ro b u st and flexible.
d em an d w ith o p e ratio n al issu es of v olu m e, tim in g, and
R e d u cin g set-u p and ch a n g e -o v e r tim es.
the p u rch ase o f m aterials. A 'b ill o f m a te rials' is
In co rp o ratin g m an u fa c tu rin g c o n sid era tio n s into Ihe
p rod uced , this is com p ared w ith the existin g inventory,
d esig n p ro ce ss (red u cin g p ro d u c tio n costs by red u cin g
and any necessary p u rch ases are m ade.
d esig n com p lexity ).
S e q u e n cin g A s u p e rv iso r d ecid es w h ich w o rk statio n (=
W h y u se JIT tech n iq u e s? B eca u se m aterials, w o rk -in -
m a ch in e an d / o r e m p lo y e e ) w ill carry o u t w h ich tasks in
p ro g ress and fin ish e d g o o d s th at are n o t b e in g u sed
w h ich order.
re p rese n t a w aste o f tim e, sp ace and m oney.
S ch ed u lin g . T h e s u p e rv iso r d ecid e s w h en p a rticu la r
tasks sh o u ld start a n d finish.
Quality management
D isp atch in g . T h e su p e rv iso r a u th o riz e s tasks to b eg in
W h a t is q u ality ? Is it a m a n u fa c tu rin g p ro ce ss free of errors
(gi\ ing d etailed in stru ctio n s).
and w aste? O r is it h a v in g the b e st sp e cificatio n s,
. L o ad in g . M a te ria ls o r parts are in tro d u ced to an
re g a rd le ss o f p rice? Is it p e rh ap s a p ro d u ct th at is 'fit for
o p e ra tio n so th at it can b e g in . (A ro b o t lo ad s an
p u rp o se ', h a v in g o n ly featu res th at the u ser a ctu ally need s?
assem b ly lin e w ith a n ew co m p o n e n t, an o p e ra to r loads
Is v a lu e -fo r-m o n e y an im p u 'ca n t factor?
a m ach in e w ith raw m aterials.)
M o n ito rin g . T h is in v o lv e s ch e ck in g p ro g ress, e lim in a tin g M o st p eop le w ould agree that q u ality inclu d es: functionality,
b o ttlen eck s, and id e n tify in g and so lv in g p ro b lem s. ap p earan ce, reliability, durability, ease o f recovery from
p ro blem s, and con tact w ith com p an y staff. B ut is there
K ey issues are:
an y th in g else, and how is q u ality to be m easured ?
C on trol o f cap acity - there m ig h t be a n eed to ram p up
M an y y ears ago, 'q u a lity con tro l' m ean t tak in g sam p les o f a
(~ in crease) p ro d u ction .
p ro d u ct and d o in g tests to see if it m et tech n ical stand ard s.
C on trol o f inventory.
T h e n 'q u a lity a ssu ran ce' w id en ed its sco p e to in clu d e som e
Lean operations and JIT n o n -o p eratio n al fu n ctio n s su ch as cu sto m e r service.
N ow ad ay s, 'to tal q u ality m an ag e m e n t' (T Q M ) cov ers the
O u tsid e o f a b u sin e ss con text, 'le a n ' m e an s 'th in in a
w h o le org an izatio n , from m o re trad itio n al areas like p ro cess
h ealth y w a y '/ 'n o fat'. In a b u sin e ss con text, it refers to an
control and p ro d u ct testin g to d e te rm in in g cu sto m e r n eed s
ap p roach w h ich tries to m eet d em an d in sta n ta n e o u sly w ith
and d ea lin g w ith com p lain ts. It in clu d es all the id eas o f lean
p e rfe ct qu ality and no w aste. T h e m o st im p o rtan t id e a of
o p eratio n s and JIT. A nd a w h ole in d u stry has d ev elop ed to
lean o p eratio n s is th a t o f m in im iz in g in v e n to r}' k ep t o n the
p ro v id e in tern atio n al stan d ard s fo r m e asu rin g quality;
p rem ises - both sto ck and w o rk -in -p ro g re ss (W IP ). So
am o n g st the b e st k n o w n are the ISO 9000 fam ily and 'S ix
parts, co m p o n en ts, raw m aterials and o th er su p p lie s are
S ig m a'. (This term is a statistical m easu re m ean in g few er
d eliv ered to the factory ju s t as th ey are n eed ed . A nd o n ce
than 3.4 d efects p er m illio n item s p ro d u ced .)
d eliv ered , the th ro u g h p u t (= rate at w h ic h w o rk go es
th ro u g h the sy stem ) is fast.
N ote that w ith lean o p e ra tio n s the cap acity u tiliz a tio n (=
ratio o f actual o u tp u t to p o ten tial o u tp u t) is o ften low. T h is
is a d ifferen ce w ith trad itio n al ap p ro ach es. N o te also that
the need to carry in v en to ry d o e s n 't d isa p p e a r - it ju st shifts
to su p p liers.
PRObucnON
M axim izing CApACity u tiliz a t io n
Cs MAkin^ tb e b e st use o f tb e
CApACity you bAve~>
M onitoring equipment:
se t-u p And change-over
tim e / ca uses o f breAkdownS /
Speed losses / q u a lity losses
A d ju stin g CApACity:
O v e rtiM e / usin^ p A rt-tim e S tA ff;
Subcontracting pArtS o f tbe
operation', chan^in^ deMAnd
through price', developing products
w itb a d if f e r e n t SeASonAl deMAnd
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Production: Exercises
6.1 Fill in the missing letters. 6.4 The w ord 'time' appears in a lot of expressions
1 A specific problem that causes delays to a whole process, used in production and operations. W rite each w ord
is called a 'bo eck'. next to its definition: ch a n g eo ver time, cycle time,
2 The amount of work that can be dealt w ith in a particular dow ntim e, lead time.
time period is the 'thr put'. 1 when equipment (or the whole line) stops working and
3 Actual output divided by potential output is 'cap y production is lost
u ion' (eg room occupancy rates in a hotel). 2 time between one job / batch finishing and the next one
4 A product that serves its intended function, w ithout any beginning (includes time taken to prepare machinery for
extra features, is described as 'f_ _-for-pu _ _ e'. the new process)
5 If a product has good quality in relationship to its price, 3 time required from receiving a customer order to final
then it is 'good v -for-m delivery; it includes order processing, pre-pack time, in
transit tim e, receiving and inspection
6 The characteristic of 'always working well' is 'rability'.
4 time taken for a given job / batch to pass through all the
7 The characteristic of 'lasting a long time' is 'd ility'.
operations n e e d e d _________________________
8 A fault in the w ay something is made is a 'd t'.
Continue as before w ith these w ord s: lag time,
6.2 Match the different stages in the production
o vertim e, set-u p time, tim e-to-m arket.
process w ith their descriptions 1-6 below.
5 extra hours that someone works, beyond their contractual
planning scheduling loading
obligation (and often paid at a higher rate)
sequencing □ I dispatching J monitoring
1 introducing materials to an operation so it can begin 6 time taken to prepare machinery and equipment for a new
2 authorizing a task to begin job / batch . _. ___
3 bringing together customer demand with operational 7 time required from the initial concept for a new product to
issues of volume, timing, materials, etc when it first goes on sale
4 checking progress and solving problems 8 any period of delay between one event and another (eg
5 deciding when tasks should start and finish between giving an instruction and the operation
6 deciding which workstation will carry out which task in beginning)
which order
6.5 Com plete this text about 'kaizen' using the w ords
6. : Read about the relationship betw een WIP (work-in- in the box.
progress) and different types of production process.
competitors culture cycle improvement
As you read, im agine an exam ple fo r each one.
marketplace metrics process resistance
1 In a continuous process there is a network of complex,
capital-intensive machinery through which WIP flows
K
aizen is a term used in lean manufacturing to mean
w ithout interruption. One example would be ...
continuous 1 .It describes a
2 In a mass process, there is an assembly line where WIP
corporate 5 where everyone
moves along the line past workstations carrying out fixed
operations. One example would be ... works proactively (= taking action before a problem
3 In a batch process, machinery and equipment are located develops) to improve the manufacturing
in 'cells' around the plant, and WIP moves in groups to . This is essential in today’s
different cells; in each cell a variety of specialized changing 4_____________________ - someone is going to
operations can be carried out. One example would be ... come up with a better, faster or cheaper way. and it will
4 In jo b production, there is a fixed position layout where either be you or y o u r5,____________________________ .
the WIP does not move; instead operations are scheduled How can you know if continuous improvement is
in sequence on it. One example would be ... happening? You establish a system of monitoring key
5 In a large-scale project, the WIP is often off-site, or at the 6_ (= variables that can be
customer's own premises. One example would be ... m easured). For example, average
times, or the time it takes to successfully complete a
Now com plete each paragraph w ith the most changeover. And employees must be involved, otherwise
appropriate exam ple: construction o f a building, an
there will be a lot o f 8
autom obile plant, aircraft m anufacture, clothing
m anufacture, stee l making.
6 PRODUCTION
T
he International Organization for Standardization is a
8 be dedicated records
worldwide federation of national standards bodies. They
9 measure performance to improving processes
promote the 'ISO 9000’ series of standards, and these cover
10 match the best audits
a wide range of activities: determining customer needs,
dealing with complaints, product testing, storage, etc.
Discussion topics
1 You are a teenager and you offer to wash your parents' car. You run a small convenience store in a residential area.
This activity is similar to the manufacturing process Discuss problems and solutions in relation to control of
described on page 26 (planning / sequencing / scheduling / capacity and control of inventory. (See mind map.)
dispatching / loading / monitoring) because ... However it
Lean operations, JIT, quality management, etc are now so
is different because ...
widespread that very fe w products have faults.
2 The most high-quality, low-cost, customer-focused and I A g re e D isag ree
environmentally-friendly production process I know is ...
Marketing strategy and product development
r e s e a rc h
C o s t-b a s e d p r ic i a ^ : Add A SpeciPic P re - s a le s aad a P t e r - s a le S
p e rce ata^ e ( - M arkup") -to -the S ta P P liste a ta ^ -to CUStoM ers
base c o s t -to ^ive -the s e lti a ^ p rice
C u S to M e rs m akia^j d ir e c t s u ^ e s tio a #
B re a k e v e a AA alySiS: de-ter m ia ia ^
C o M p e tito r a c t i v it y (lACludlAtj a t t e M p t S
-the MiaiMUM s a le s vo Iu m c thA-t
-to re ve rse . e a ^ ia e e r' p ro d u c ts - Piadia^
co vers a II -the co st#
o u t how th e y w e re Made AAd th e a
copyia^ -the. process')
T h e R-i-b departMeat
P x t e r A a l chaaaes iA -the M a r k e t
SAMe M a r k e t
PRICE g r o w t h ; M a t u r i t y ; d ecliA e
B rA A d : A A A M e, SyM bol o r d e s i^ A
(o r SoM e C O M b l A A t io A ^
t h A t id e A tiP ie s a p ro d u ct
TradeMArk: a A A M e or SyMbol t h A t
cAAAot be used by A A o th e r producer
M a tc h : a^ t h e M a r k e t le a d e rs : sett:a<^ price
accordia^ t o w h a t is S t a a d a rd iA th e
M a r k e t , AAd th e A coMpetia^ by CMphaSizia^
lA S ta lla tio A S : M ajo r c a p it a l ite M S ,
o t h e r b e A e P its such a s desi^ a, s e rv ic e , coAveAieAce
heavy e^ uipM eat, e t c
P r e s t ig e p ric ia d : S e ttia ^ a hi^h p rice t o M AiA taiA A ccessory e^uipMeat:
a a iMA^e oP q u a lit y aad e x c lu s iv ity
haad to o ls, photocopiers, e tc
Id e atiP y ia^ th e c o r r e c t p rice p o ia t : iA a C oM p o aeat p a r t s : e^ b a t t e r ie s
p ric e -s e A S itiv e M a r k e t , iA cre a S : a ^ th e purchased b y a a a u to M A k e r
p rice beyoAd a c e r t a iA p o iA t w ill dAMA^e sale s
R a w M a t e r ia ls : ParM aad a a t u r a l
S o c ia l o b je c tiv e s : ^overAM eats c a a s u b sid iz e p ro d u c ts, e<j w h e a t, s t e e l, le a t h e r
price# So t h a t low-iACoMe ^roup# c a a
aPPord a b asic p ro d u c t (t y p ic a l exAMples Su p p lies: expease iteM # t h a t do a o t
a r e u t i l i t i e s aad ParM p ro d u cts') becoMe p a r t oP t h e P ia a l p ro d u c t,
e^ ropy paper
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Marketing strategy and product development: Exercises
7.1 Fill in the missing letters. 7.3 Com plete the text w ith the w ords in the box.
1 Data collected by market research can be 'qu jtative' advertising budgets consumei tastes differentiate products
(= factual and numerical), or 'qu itative' (= opinions and early adopters making a loss reaches sa turation
attitudes that are difficult to measure). similar offerings withdrawn from the market
2 Another word for the final consumer of a product is the
'e . _-u ___ r'. The classic product life cycle is Introduction, Growth, Maturity
and Decline. In the Introduction stage the product Is
3 The relationship between quality and price is referred to as
promoted to create awareness. It has low saies and will still
'v -for-rn This phrase often has the word
be 1____________ . If the product has tew competitors,
g o o d in front, to mean 'cheap' ('cheap' can have a
a skimming price strategy can be used (a high price for
negative connotation).
_ . which is then gradually lowered), In the
4 Marketers tend to emphasize 'be its' (= advantages for
Growth phase sales are rising rapidly and profits are high.
the customer) rather than 'fea. es' (from a product
However, competitors are attracted to the market with
design point of view).
3_ . . . The market is characterized by
5 A name or symbol that has legal protection is called a alliances, joint ventures and takeovers. 4
'registered tr __________ k'. are large and focus on building the brand.
6 Two key concepts in pricing a re 'm -up' (= the % In the Maturity phase sales growth slows and then stabilizes.
added to the cost to give the selling price) and Producers attempt to 5_ and brands are
' br even volume' (= the sales volume at which the key to this. Price w ars and competition occur as the market
product starts to make a profit). . In the Decline phase there is a
downturn in the market. The product is starting to look old-
7.2 Complete the text with the words in the box.
fashioned or ! have changed. There is
brand awareness brand names brand loyalty intense price-cutting and many products are
market leader market share product lines s
product mix profitability
7 .4 M ake phrases and then com plete the text below.
1 carrying out sample of people
budget maintaining the 4______________ -_________________ of its and preferences. The information helps to identify market
furthe ■purchases. But even larger sum s are needed when The easiest data to collect is that from existing
What about P&G’s pricing policy? Well, they are a consumer behaviour in more developed markets, or
____ so they don't have to set looking at 4 (benchmarking).
artificially low prices to gain sales volume and Primary data, collected for the first time, is more difficult
. Instead, they can focus on to obtain. F ir s t ,s __________________________ . has to be
_____________________ - maximizing revenue and carefully chosen it has to be large enough to be
7.5 Match the w ord s in th e box to their definitions 7.7 Study the collocations below . Check an y unknow n
below . Be careful - th ey are very similar. w o rd s in a dictionary.
benefit characteristic feature requirement sales campaign, drive, figures, force, personnel,
specification USP (unique selling point) promotion, staff, team, volume
disappointing, export, foreign, global, international,
1 something a customer asks for, or needs sales
overseas, poor, weak, worldwide
bring out, discontinue, improve, introduce, launch,
2 something that makes a product special or different from a product
modify, take ... off the market, upgrade, withdraw
others
3 (usually plural) exact technical details, or a detailed attractive, exorbitant, fair, high, inflated, reasonable,
price
retail, selling
instruction about how something should be made
agree on / to, arrive at, bring down, cut, establish,
increase, lower, push up, put up, raise, reduce, a price
4 advantage that a customer gets if they buy the product
set, work out
booming, depressed, expanding, flat, growing,
5 important, special or interesting part of a product market
healthy, niche, sluggish, specialist, strong, weak
be forced out of, break into, corner, dominate,
6 typical quality that makes a product recognizable the market
enter, monopolize, take over, withdraw from
Now do the sam e for th ese w ord s. Now divide the w ord s in each box into three groups,
based on their m eaning.
budget estimate quotation
campaign, figures, force,
7 an approximate price that someone will charge you sales drive, volume personnel,
promotion staff, team
8 a fixed price that someone will charge you, often showing
different items in detail _______________ sates
9 a plan of how to spend money, or the money itself
a product
33
Distribution and promotion
D istrib u tio n is the final link in a c o m p a n y 's su p p ly chain, co m m e rcia ls, a d v e rtise m e n ts in n e w s p a p e rs and
and im o lves g ettin g the rig h t p ro d u cts to the cu sto m e r at m a g a z in e s, d irect m ail, o u td o o r (b illb o ard s, p o sters o n
the righ t tim e. It in clu d e s the p h y sical h a n d lin g o f g o o d s, b u s-sto p s), fly e rs g iv e n to p e o p le on die street, Internet.
P u b lic relatio n s: m a n a g in g 'p u b lic ity ' (in fo rm a tio n that
w areh o u sin g , ch o ice o f d istrib u tio n ch an n el (eg w holesaler,
retailer, d irect to co n su m e r), ch o ice o f retail o u tlet, and m ak e s p e o p le n o tice a co m p a n y ). T h e PR fu n ctio n in a
c o m p a n y n e e d s to e sta b lish g o o d re la tio n s w ith the
ord er fu lfilm en t ( d o in g so m e th in g th at is p ro m ised ).
n ew s m edia in o rd er to con tro l tiiis in fo rm a tio n , and PR
The m ind m ap o p p o site lists the m ain o p tio n s foi retailing .
p e o p le issu e press re le a se s an d h o ld p ress con feren ces.
T h e m ain trend has b e e n to m o v e aw ay from sm all fam ily -
E v en ts: m e m o ra b le o cc a sio n s (in-sLore, o n the street, in
ow ned stores (A m E m om and p op sto res) to large sh o p p in g
an u n u su al lo cation ).
cen tres (A m E m alls). A v ariatio n , c o m m o n in the US, is a
S p o n so rsh ip o f sp o rts te am s, m u sic grou p s,
large o u t-o f-to w n m ail w h ere g ian t 'b ig b o x ' stores
th eatre / op era / b a lle t etc.
su rrou n d a cen tral car p ark (A m E p ark in g lot). Future
E n d o rse m en ts by ce le b ritie s (eg 'th e face o f L 'O real', rap
trend s m ay in clu d e o ffe rin g m o re e n te rta in m e n t to attract
a rtists w e a rin g a c lo th in g bran d ).
cu stom ers, and d ev e lo p in g p riv ate la b el (in -h o u se ) b ran d s
Trad e p ro m o tio n s to re tailers, e g fin an cial ini e n tiv e s to
as ch e ap e r co m p e titio n to n a m e -b ra n d go o d s.
sto c k a n ew p ro d u ct o r to g iv e m ore sp a ce / v isib ility to
e x istin g p ro d u cts (eg s h e lf h e ig h t an d aisle position).
The promotional mix
O th er: p ro d u ct p la ce m e n t in film s, w o rd -o f-m o u th (=
T h e term 'p ro m o tio n ' is v e ry broad . I o o k at the m ind m ap
p e rso n al re co m m e n d a tio n s), viral m a rk e tin g (o n lin e
to see d ifferen t e lem e n ts o f th e p ro m o tio n a l m ix. T h e first-
th ro u g h social n e tw o rk in g w eb sites and frien d s e m ailin g
item in the b u b b le, sa le s p ro m o tio n s, is cov ered in m ore
v id eo clip s). T h e term 'g u e rrilla m a rk e tin g ' cov ers all
d etail on an o th er b ran ch o f the rnap. T h e o th e r item s are
u n co n v e n tio n a l te ch n iq u e s - from v iral m a rk e tin g to the
cov ered in m o re d etail b elo w .
d istrib u tio n o f free p ro d u cts o n the b each .
P erso n al sellin g (= sales): this is the d irect face-to -face
co m m u n icatio n b etw een sa le sp e rso n and cu stom er. The Building customer relationships
sales process h a s v ario u s stages:. Today, a m a jo r p art o f p ro m o tio n is d e v e lo p in g lon g-term
P ro sp ectin g : id e n tify in g a p o ten tial cu sto m e r ( - a re latio n sh ip s w ith c u sto m e rs so th at th ey m ak e rep eat
p rosp ect) w h o h as the ab ility and a u th o rity to buy. p u rch ase s and are o p e n to c ro ss-se llin g o f related p ro d u cts.
2 A p p ro ach : c o n ta ctin g the p ro sp e ct and p rep arin g for Tools for d ev e lo p in g cu sto m e r re la tio n sh ip s in clu d e:
the sales interview . B u ild in g a b ra n d id en tity th at the cu sto m e r w ill relate to
P resen tation : d escrib in g the featu res o f the p rod u ct, (eg th ro u g h sp o n so rsh ip and e n d o rse m e n ts).
h ig h lig h tin g the a d v an tag e s o v er c o m p e tin g p ro d u cts, Frequency7 p ro g ram s (eg fre q u e n t-fly e r p ro g ra m s on
and giv in g e x a m p le s o f satisfied cu sto m ers. airlin es).
D em o n stratio n : if p o ssib le, the c u sto m e r is g iv e n a F o rm in g c o m m u n itie s o f b u y e rs (eg c o n su m e r d ra t
ch an ce to see the p ro d u ct in use. ro o m s o n the In tern et, o r m e e tin g s o f o w n e rs o f H arley
A n sw erin g o b je ctio n s: c u sto m e rs sh o u ld be g iv en a D a v id so n m o to rb ik e s).
ch an ce to e x p re ss th e ir d o u b ts, as they are u n lik e ly to A ffin ity m a rk e tin g (= a ttra ctin g cu sto m e rs on the basis
b u y u n less-th ese are d ea lt w ith. A t this stage the o f th e ir o th er in te re sts, for e x a m p le lin k in g a credit card
sa le sp e rso n stre sse s b e n e fits ra th e r th an featu res. to a fav o u rite ch arity ).
C losing: the salesp erso n asks the prosp ect to buy. If the • In d iv id u alize d a d v e rtisin g b ased o n p re v io u s p u rch ases
cu stom er still has d oubts then op tions inclu de offering (eg A m a z o n 's b o o k su g g e stio n s).
an alternative product, offering a special incentive, or ■■■ C o -m a rk e tin g w ith a n o th e r c o m p a n y (eg g iv in g aw ay a
restating the prod uct ben efits. toy at M cD o n a ld s th at lin k s to a new D isn ey film ).
F o llo w -u p : p ro cessin g the o rd er q u ick ly and U sin g C R M so ftw a re to give the c u sto m e r a m ore
efficien tly, and reassu rin g the c u sto m e r ab o u t their p erso n al e x p e rie n ce w hen th ey co n tact the com pany.
p u rch ase d ecisio n d u rin g fu rth e r co n v ersatio n .
L o n g-term relatio n sh ip : go in g on to e sta b lish reg u lar
co n ta ct w ith the cu stom er.
■
i F u rth e r in fo im a tio n www.consumerpsychologist.comwww.davedolak.com/promix.htm www.marfcetingteaehercon
8 DISTRIBUTION AND PROMOTION
CAtAlo^ues / brochures____________
WAr e b o u S ir^ , iA v e x to ry c o r t r o l
AAd M A teriA lS herd l? A4
F re e SAMples
U - S t o r e diSplAyS
CAtAlorjues / brochures I
N o A -s to re r e 't A i l i * ^
Q am c S a Ad co A te stS
b ir e c t-r e s 'p o A S e re tA iliA ^ : hoMe ft
FVoMotioAAl iteMS d e liv e r y o P a p o & i o r d e r e d th r o u g h y
with a a iMpriAted lo^o CA tAlo^ueS, e t c
^peciAl eveA ts
U t e r r e t re tA iliA ^ : oAliAe selliA^
t h r o u g h v ir tu A l s t o r e P r o r t S
^Ales proMotioAS
PersoicAl selliA^
-S to re re ts u li
A d v ertisirv i
Ftnblic relA tioA S CPR") ^ p e ciA lty s t o r e Ca.-j b o o k s t o r e , Plow er shopb
O t h e r : p ro d u ct plAceMeAt, ^ U p e rM A rk e t / H y p e rM A rk e t
word -oP-MOUth,
D e p A rtM C A t S to re C e -j H A rro d s") - A iM e d
v i t a I M A rk e tir j , e t c
A t mo re u p M A rk e t CA m E u p s c u le ) c u S to M e rs
8.1 Fill in the missing letters. 8 .3 M ake collocations by m atching a w ord from each
1 Making sure that the customer gets the right goods at the column.
right time is called 'order fu _ . _m ent'. 1 brand channel
2 A place where goods are sold to consumers is called a 2 convenience mail
'retail ou t'. 3 direct relations
3 A potential customer is a 'pro__ ,_ect'. 4 distribution release
4 A large outdoor sign used for advertising is called a 5 in-store placement
'bi_ __o ard '. 6 press identity
5 It is important to develop long-term relationships with 7 product display
customers so that they m ake'rep t pur ses', and are
8 public store
open to 'c _ _ss-selling' of other related products.
6 A synonym for 'intermediary' is 'the mi man'. 8 .4 Match each stage in the sales process w ith its
7 A retailer has a shop (AmE store), while a wholesaler has a explanation 1-7 below.
'w ouse'.
Answering objections Approach Closing
8 The process of selling products connected with a popular Demonstration Follow-up Presentation Prospecting
film, person or event is called 'met ising'. In
American English this word is also used for 'selling goods' identifying a potential customer
in general. ■contacting the prospect and
preparing for the sales interview
8.2 Com plete each explanation w ith a pair of w ords 3 - describing the features of the
from the box. The w ords m ay not be in the right order. product
agent / broker brochure / catalogue 4 - giving the customer a chance
client / customer commercial / spot to see the product in use
promotion / advertising sponsorship / endorsement 5 - asking the prospect to buy
1 To refer to a buyer, the word is more 6 ______________________- dealing with any doubts that
the customer has
common where there is a standard product, and in shops
and restaurants. The w o r d ______________________is more 7 ______________________- processing the order quickly
common in the service sector and where there is a degree and maintaining long-term contact
of personalization.
8.5 The sequence 1-7 in exercise 8.4 is probably not
2 A list of everything that a company sells is calleda
the best. Change the order of tw o item s so that the
. If it has lots of colour pictures and
prospect is more likely to buy.
looks like a small magazine it is more likely to be called a
. . The former may have prices as well, 8.6 Match these advertising m edia to the advantages
the l atter would not. (+) and disad vantag es (-) below : direct mail, Internet,
3 A general word that means 'the process of attracting m agazines, n ew sp a p ers, outdoor, radio, television.
people's attention to a product' is _ _ _ _ ______________ . 1 __________________________
One specific example of this is , which (+) good coverage of local markets; ads can be placed
refers to text and images and sound in media such as quickly; ads can be cut out and saved
television, newspapers, billboards and the Internet. (-) ads compete with other text; ads get thrown away
4 An advertisement on television, radio or film is called a (short life span)
. An informal word with the same
meaning is (+) can target very specific audiences in specialist
5 is when a celebrity uses a certain publications; long life of ad (usually several weeks); ads
product as a w ay of promoting i t . _______________________ is can be cut out and saved
the activity of giving financial support to a sports or (-) ads must often be placed months in advance; cost Is
cultural event. relatively high
6 Both words mean 'a person w ho does business on behalf
of another company'. The word is used
where there is a long-term relationship, whereas the word
______________________ is more common for individual
transactions (eg stocks).
36
8 DISTRIBUTION AND PROMOTION
T
he process of planning and controlling the physical
(+) low cost; can target specific audiences; very flexible;
good for local marketing flow of materials in the supply chain is called logistics.
(-) may have low attention because it is a background There are four stages. First, ' inbound logistic
medium; audience may not remember ad (only one is concerned with bringing raw materials, packaging,
physical sense involved and nothing to keep) etc from suppliers to producers. Second,
5 ________________________________. 2_ is the movement of goods within
(+) high visibility and repeat exposure; relatively low cost; a warehouse, from the warehouse to the factory floor, and
strong local focus from the factory floor to the various workstations. Third,
(-) limited message; difficult to get attention of audience 3 m anages the flow of finished
for any one specific ad products through intermediaries to the final consumer.
6 _ Finally, reverse logistics involves bringing goods back to
(+) if linked to a customer database can be targeted at the prem ises of the original manufacturer b ecause of
very specific markets; very flexible; ad can be saved defects or o th e r4
(-) high cost; consumers may reject ad as 'junk' The whole process is a shared responsibility between
7 __________ _ _ _ marketing and operations, but clearly marketing is more
(+) connects a company with its customers at the precise concerned with those areas that impact directly on
moment they are looking for a product; global coverage at
wholesalers, retailers and the 5
a relatively inexpensive price; interactive
A key issue in logistics is choosing the right m eans of
(-) many 'eyeballs' but few 'click-throughs'; click fraud
transport. Options include rail, road (using trucks with
(clicks on your advert arranged by dishonest companies or
trailers), ships and air. Combinations of these are common.
competitors, not made by potential customers)
Another key area of logistics is the storage function.
8.7 Find a w ord from the previous exercise w hich Marketers must have goods available in
m eans: ____________all over the country, ready to
1 how widely information is distributed . restock 7 or be delivered to
2 put somewhere, especially in a careful or deliberate way customers when ordered.
If import and export are involved, then there is an
3 try to influence a particular group of people important issue: who pays for which parts of the
transportation? Contracts have to specify this clearly, and
4 something that is not wanted or not healthy (collocates use Incoterms (international commercial terms) to do so.
with 'mail' and 'food') There are many Incoterms, but the most common are:
5 Internet term referring to those occasions when someone 8 _____________________ - the buyer picks up the
looks at so m e th in g ______________________ goods at the seller’s prem ises and arranges all the
transport and insurance.
9 . .. - the seller delivers the goods
onto a ship at a named port; from here all responsibility
(including the sea journey) passes to the buyer,
10 - the seller has
responsibility to a named port of destination, and so
pays for the cost and risk of the se a journey as well.
1 'Sales' sometimes has a bad reputation (selling used cars). 3 Everyone knows that celebrities in their private lives don't
But this is wrong. In fact it is creative, challenging and fun actually use the products they advertise. You must be a
J A g re e D isagree fool if you are persuaded by endorsements.
: A g re e f D isagree
2 Advertising is not so important. A good product with the
right price and the right distribution will sell itself. 4 Contemporary trends in advertising, communication and
A g re e D isag ree promotion include ...
37
A Accounting and financial statements
Preparation of the accounts w h en sh ares w ere first issu ed ) p lu s any re tain e d profit
The a cco u n tin g process, sta rts w ith inp u ts, and these are ( reserv es) th at h as a ccu m u la te d o v er tim e.
things su ch as sales d o cu m e n ts (eg in v o ices), p u rch asin g A t th is point lo o k at the e x a m p le on p ag e 41, and then
d o cu m en ts (eg receip ts), p ay roll record s, b a n k records, retu rn to this text.
travel and e n te rta in m e n t record s. T h e d ata in th ese inp u ts N ote the o rd er in w h ich item s are listed:
is then p ro cessed by sp ecialized softw are:
■ A ssets are listed ac co rd in g to h o w easily they can be
E n tries are reco rd ed ch ro n o lo g ically into 'jo u rn a ls'. tu rned into cash, w ith 'c u rre n t a sse ts' b ein g m o re liqu id
In fo rm a tio n from the jo u rn a ls is p o sted ( - tran sferred ) th an 'fix e d assets'.
into 'le d g e rs', w here it a ccu m u la te s in sp e cific categ o ries L iab ilitie s are listed a cco rd in g to h o w q u ick ly cred ito rs
(eg cash acco u n t, sales acco u n t, o r acco u n t fo r one h av e to b e p aid , w ith 'c u rre n t lia b ilitie s' (= b a n k d ebt,
p articu lar cu stom er) m on ey o w e d to s u p p lie rs, u n p a id sa la rie s and bills)
A 'tria l b a la n ce' is prepared at the en d o f each b e in g p aid b e fo re 'lo n g -te rm liab ilitie s'.
acco u n tin g p erio d : this is a su m m a ry o f the led g er
Figu res fo r 'c u rre n t asse ts' and 'c u rre n t lia b ilitie s' are
in fo rm a tio n to ch e ck w h e th e r the fig u res are accu rate. It
p a rticu la rly im p o rtan t to a b u sin ess. The a m o u n t by w hich
is u sed d irectly to p rep are the m ain fin an cial state m e n ts
the fo rm er e x ce e d s the latter is ca lle d 'w o rk in g cap ital'.
(in co m e statem en t, b alan ce s h e e t and cash flow
T h is g iv es a q u ick m easu re o f w h e th e r there is e n o u g h cash
statem ent).
freely av ailab le to k eep the b u sin e ss ru n n in g .
T h e fin an cial s ta te m e n ts o f large c o m p a n ie s h av e to bo
ch eck ed by an extern al firm o f au d ito rs, w h o 'sig n o ff o n Cash flow statem ent
the acco u n ts' (= o fficially d eclare the acco u n ts are correct). C o m p a n ie s n eed a sep a ra te record o f cash receip ts and cash
T h ey are pu blicly av ailab le, and ap p ear in the co m p a n y 's p ay m en ts. W hy is this? Firstly for the reason g iv e n abo v e -
ann ual report. U se rs of fin an cial s ta te m e n ts in clu d e: it sh o w s the real cash that is av a ila b le to keep the b u sin ess
sh areh o ld ers, p o te n tia l sh areh o ld ers, cred ito rs (len d ers, eg ru n n in g d ay to d ay (p ro fits are o n ly o n p a p e r until the
ban k s), cu stom ers, su p p lie rs, jo u rn a lists, fin an cial an aly sts, m o n ey a ctu ally com es in). Second ly, th ere are m an y
g o v ern m en t ag en cies, etc. so p h istica te d te ch n iq u e s that a cco u n ta n ts can u s e to
m an ip u late profit, w h ereas cash is real m oney. It's cash that
Profit and Loss Account p ay s the bills, n o t profits.
T h e p rofit and loss acco u n t (= in co m e statem en t, o r ju st 'th e
T h ere are m an y reaso n s w h y co m p a n ie s ca n h av e a
P & L ') su m m arizes b u sin e ss activ ity o v er a perio d o f tim e. It
p ro b lem w ith cash flow , e v e n if the b u sin ess is d o in g w ell.
b eg in s w ith total sales (= rev en u e) g e n era ted d u rin g a
A m o n g st them are:
m on th, q u arter or year. S u b se q u e n t lin es th en d ed u ct (-
U n e x p e cte d late p ay m e n ts, and n o n -p a y m e n ts (bad
su b tract) all o f the c o sts related to p ro d u cin g that revenue.
d eb ts).
A t this p oint lo o k at the e x a m p le on page 40, and then
U n fo reseen costs: a larger than e x p e cte d tax bill, a strik e,
return to this text.
etc.
A n u n e x p e cted d rop in d em an d .
Balance Sheet
In v estin g to o m u ch in fixed assets.
The b alan ce sh eet re p o rts the c o m p a n y 's fin an cial co n d itio n
S o lu tio n s m ig h t in clu d e:
on a sp ecific d ate. T h e b a s ic e q u a tio n that h as to b alan ce is:
A ssets L iab ilities + S h a re h o ld e rs' equity. C red it con tro l: ch a sin g o v erd u e acco u n ts.
S to ck con tro l: k e e p in g low levels o f slo ck , m in im izin g
A n 'a s se t' is an y th in g o f v alu e ow ned by a b u sin ess.
w o rk -in -p ro g re ss, d e liv e rin g to c u sto m e rs m o re quickly.
A 'lia b ility ' is any a m o u n t o w e d to a creditor.
E x p e n d itu re con trol: d elay in g sp e n d in g o n cap ital
S h a re h o ld ers' e q u ity (= o w n e rs' e q u ity ) is w h at rem ain s
eq u ip m en t.
from the assets after all cre d ito rs h av e th eo retically been
A sales p ro m o tio n to g e n era te cash quickly.
paid, ft is m ad e up o f tw o elem e n ts: sh are cap ital
U sin g an o u tsid e co m p a n y to reco v e r a d e b t (called
(rep resen tin g the orig in al in v e stm e n t in the b u sin ess
'fa c to rin g ').
> 3 - C h ie f AccowA-tirva
O ffic e r
keeping th e CompAnyS books
FV'epArm^ t A x r e t u r n s
Developi rvj s tr A t e ^ ie S t o
m in im ise tA xe S
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ANb FINANCE C CAWSeS o f
C A ^ h -f lo w p r o b le m ^
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CtrAde c r e d it , bAnk loAn")
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t o finAnCe expAnSion plAnS
C r e d it c o n tro l
C to c k C o n tro l
h ttp://w 3.arep ort.C Q m w w w .se c.g o v/in ve sto r/p u b s/b eg fin stm tg u id e.h tm w w vv.q u ick m b a.co m /a cco u n tin g 39
Accounting and financial statements
S tu d y the sim p lified fin an cial state m e n ts fo r an im a g in a ry retail store. A ll fig u res are in 6 0 0 0 s . T h e
co n v en tio n in a cco u n tin g is that a n e g ativ e figu re is sh o w n by a b racket. To u n d e rsta n d the figures,
w ork from the right:
the rig h t-h an d co lu m n sh o w s to tals for each m ajo r categ o ry
• the cen tral co lu m n sh o w s in fo rm a tio n that is u sed in p ro d u cin g the fig u res to the righ t
the le ft-h an d co lu m n sh o w s d etails o f the ca lcu la tio n s in the cen tral colu m n .
Profit and Loss A ccount (Incom e Statem ent) For the Year Ended D ecem ber 31, 20XX
40
9 ACCOUNTING AND FINANCIAL STATEMENTS
Intangible a s s e ts
Total intangible asse ts 20
Total asse ts 677
L IA B ILIT IES AND EQ U ITY ‘Bank debt’ (= loan capital) also includes any overdraft (=
temporary negative balance).
Current liabilities
Bank debt 20 ‘Accounts payable’ is the money owed to suppliers.
A ccounts payable 30 ‘Accrued’ items are those where an expense has been
A ccrued taxes 22 incurred, but the money is not yet paid. ‘Accrued salaries’
A ccrued salaries 45 typically includes future bonuses.
Total current liabilities 117 Another item, ‘provisions’, can appear under current
Long-term liabilities liabilities. These are amounts set aside for anticipated
one-time payments that are not part of regular operations
Mortgage 100
- perhaps a lawsuit, or a compensation package for
Bonds payable (due Mar 2018) 20
employees being laid off.
Total long-term liabilities 120
Total liabilities 237 A ‘mortgage’ is a long-term bank loan to buy a property.
With bonds, the ‘principal’ (= amount raised by issuing
S h a re h o ld ers' equity
the bonds) is repayable to the bond holders at ‘maturity’.
Share capital (3 00,000 shares @ €1) 300
Retained profit 140 ‘Share capital’ ( = common stock, AmE) is amount raised
Total o w ners’ equity 440 at initial flotation on the stock market.
Total liabilities & equity 677 ‘Retained profit’ (= Reserves / Retained earnings). The
figure showing here is more than the €47,000 transferred
from the income statement because it is an amount
accumulated over several years.
41
Accounting and financial statements: Exercises
9.1 Fill in the m issing letters. 9.3 Put these w ords into three groups, so that all the
1 On a balance sheet, 'assets' are w hat you ow and w ords in a group have a sim ilar m eaning: costs,
liabilities' are w hat you ow . earnings, exp en ditu re, exp en ses, incom e, profit,
revenu e, sales, spending, turnover.
2 The loss in value of a tangible asset over time is called
'd n'. This loss is 'w en o ' in the
9 .4 Put the w ords into the correct column.
accounts over several years. The loss in value of an
intangible asset is railed 'am . n'. accounts payable cost o f goods sold ledger
3 The term 'debtor' is now often replaced with 'accounts shareholders' equity EBITDA trio! balance invoices
rec 1° Similarly, 'creditor' is often replaced with operating expenses current assets
'accounts p . le'.
4 The total value of raw materials + work-in-progress + Preparation of Profit and loss Balance sheet
unsold stock is called 'in _ _ . y'. accounts account
5 Expenses that have been incurred but are not yet paid are
called 'acc_ d expenses'.
6 The extent to which a firm relies on debt financing rather
■than &quity financing is called its 'lev age'
• to em phasize costs which stay the sam e at all levels of Credit control:
output in the short term, say 3fixed c o sts / operating Stock control:
co sts Expenditure control:
• to em phasize costs which result from the whole business
9 .6 Put the sources of n ew funds 1-6 into the correct
(rent, utilities, etc), not any particular products, say
category below.
‘'indirect c o sts / operating costs. A synonym here is
1 Issuing new shares
'overhead1 (UrE overheads),
2 Issuing new bonds (note that only large companies Jo this)
to em phasize co sts resulting from me day-to-day
3 Trade credit (asking suppliers if you can pay them later)
activities of the business (products and processes), say
4 Reinvested earnings
5fixed c o sts / operating costs.
5 Sale ot assets (eg a building, or a part of a company
There arc many other types of ‘costs' referred to in finance 6 Ban), loan or bank overdraft (= temporary negative
and accounting Two of the most important are: balance)
°capital expenditure / capitalism expenditure the costs Debt financing (money raised has to be paid back to outside
ol buying or upgrading physical assets like buildings creditors):
and m achinery, often referred to in business as capex' Equity financing (money raised comes direct'y or indirectly
• 7mark-up c o sts / marginal c o sts - the co sts of increasing from the owners of the business, w ho hope to have it paid
output by one more unit. back in the form of more profits):
42
9 ACCOUNTING AND FINANCIAL STATEMENTS
9.7 Match topics 1-5 w ith th e conversation extracts N ow divide the w o rd s in each box into three groups,
a)-e) below . based on their m eaning.
1 cost centers
budgeted. escalating, unexpected,
2 profit centers
estimated. increasing, unforeseen costs
3 variance analysis
likely rising
4 standard versus marginal costing □
5 valuing assets costs
a) 'How are w e going to show the depreciation of our new
machinery in the accounts? W e could w rite it off in a
profits
straight line over six years, but w e're losing most of the
vaiue in the early years. I think w e should do it on a
percentage basis, say 2 5 % every year, so that the book figure
value is more realistic.'
b) 'We allocated a budget of €2 0 0 ,0 0 0 for R&D last quarter,
but there seems to be an overspend of € 2 5,0 00. I need to the figures
find out what's going on.'
c) 'I'd like to see earnings broken down according to our
major product lines.' 9 .9 Match th e definitions 1-4 w ith the exam ples of
d) 'All our marketing activities are shown under one budget financial ratios a)-f) below .
heading. In the future I'd like to see separate figures for 1 Liquidity ratios: these measure ability to turn assets into
the different areas of marketing so that w e can have more cash to pay short-term debts.
control of spending.' 2 Profitability ratios: these measure ability to generate
e) 'Should w e accept this order? The profit margins are low. profits. □ □ □
But, on the other hand, the machines will be running 3 Leverage (Debt) ratios: these measure the degree to which
anyway, there isn't much extra labour required, and other- a company relies on borrowed funds. □
variable costs are low. So it's probably worth it.'
4 Activity ratios: these measure the effectiveness of the use
of resources from an operational point of view.
9.8 Study the collocations below . Check a n y unknow n
w ords in a dictionary. a) D ebt to o w n ers' equity = Total liabilities / Total owners'
equity
budgeted, escalating, estimated, increasing,
costs b) Net p rofit margin = Net income before taxes / Met sales
•key, rising, unexpected, unforeseen
c) Working capital = Current assets / Current liabilities
bring down, calculate, cut, figure out, lower,
costs d) Return on equity = Net income after tax / Total owners'
meet, pay, reduce, work out
equity
bring in, earn, generate, jeopardize, make,
profits e) Inventory turnover = Cost of goods sold / Average
plough back, put at risk, reinvest
inventory (mid point between inventory at beginning and
accurate, approximate, ballpark, deceptive,
figure ending of accounting period)
dubious, exact, misleading, precise, rough, round
f) Earnings p e r share = Net income after taxes / Number of
announce, check, cook, doctor, examine, falsity,
shares issued
go over, go through, issue, manipulate, massage, the figures
publish, release, study
1 To some people, finance is a dry and technical area of 3 When an auditor looks at a balance sheet they will be
business. In fact, it's fascinating. particularly interested in ... because ...
J A gree U Disagree 4 Here's w hat I know about a famous financial scandal that
2 When an auditor looks at an income statem ent they will w as in the news ...
be particularly interested in ... because ...
43
J Financial markets
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i^ a c iA liii. F la A d i C a .< j. b io - t a c liA o lo ^ y ,
AA"twra I ra io u rc a i,
raAl ai-tA-ta, trAClear, a-he')
10.1 W rite these w ord s in the spaces below : bonds, 10.5 Match the nam es o f the different stock indices to
equities, m on ey m arket instrum ents, securities, shares, th eir descriptions.
stocks. Note th at three w ords are near synonym s.
CAC DmX Dow FTSE Nasdaq S&P
The general term 1 _ refers to
_ (or or 1 index of 500 large US companies
2 index of 4,000 US companies, many of them in the
technology area, and some quite small _________
3 index of 30 large, well-established US companies, chosen
10.2 Fill in the m issing letters.
by the editors of the Wall Street Journal
1 Instead of investing in the shares of just one company, you
4 index of 30 large German companies
can invest in a m I fund which holds a basket of
5 index of 40 large French companies
stocks.
6 index of 100 large UK companies
2 Regular income'catr'be provided by the cji. ds of
shares that you own. 10.6 Rank these financial instrum ents according to
3 The issuer of a bond pays back the original amount (= the their probable risk: from 1 (low risk, low return, low
pr .. _ al) to the bondholder over a iixed period of volatility) to 4 (high risk, high potential return, high
time (= the t rn of the loan). volatility).
4 The most traded bond in the world is the 30-year US a) an investment-grade corporate bond
government T-bond. The letter T stands for b) a UK government bond
hr yh
c) a fund investing in small biotech companies
10.3 M ake collocations using an item from each box. d) shares in an individual company listed on the Daw (eg
Then use the collocations to com plete the sentences General Electric)
below.
10.7 Choose w hich of these investm ent objectives is
capita/ fixed junk rink tracker m ost suitable for the investors described below :
incom e, g ro w th , incom e + grow th .
bond fu n d growth management rate 1 a highly-paid young professional, w ithout a family, who
1 A fund that exactly follows the movement of an index is w ants lo save long-term for a pension
called a _ tracker ___ 2 a newly retired person w ho wants to supplement their
7 A fund can provide regular income or pension .
3 someone in their fifties who has just received money from
3 A bond is a financial instrument where a borrower raises an inheritance - they w ant to save for their pension, but
capilal and then repays the loan at a also w ant help paying for their children's university fees
of interest over a fixed term.
4 A high-risk corporate bond can be called a 10 .8 Match these financial institutions w ith their
descriptions below : en d o w m en t, insurance company,
5 'Hedging' is a term associated w i t h ______________ in vestm en t bank, m utual fund, p en sio n fund.
It means having a second position in a
1 used by large companies to issue bonds, buy and sell
market, so that if the market moves against your first
currencies, manage their portfol o of shares in other
position your losses are minimized,
companies, and advise on any potential merger or
acquisition
10.4 Divide each se t of w ord s in italics into tw o ,
according to th eir m eaning. 2 used to save money during your worki ig ife and then
have an income during retirement
1 a ben nning / bear / bull / depressed / falling / risirig /
strong / weak market 3 used by private investors to hold a basket of stocks
46
10 FINANCIAL MARKETS
10.9 Financial an alysts use the term s in the box w hen 1 0 .1 2 Investors and traders m ake m uch use of
trying to value a com pany and its share price. Match 'technical analysis'. W rite th ese term s next to their
each term to its definition below . definitions: breadth, leadership, liquidity, m om entum ,
resistance, support, trading channel, volum e.
barriers to entry capital requirements ease o f substitution
1 a price level which has stopped an advance on previous
market penetration price elasticity
occasions
1 how sensitive a company's sales are to changes in the price 2 a price level which has stopped a decline on previous
of its products ____ occasions .
2 how much money is needed to run this type of business 3 the total number of shares traded in a m arket on a
particular day
3 w hether other companies could offer a similar product 4 the number of individual stocks participating in the
movement of an index
4 how much market share a company has, and w hether it 5 the strength of a trend, as measured by speed and length
has strong products in different segments of the market of time
6 tw o parallel lines drawn on a chart that contain all price
5 difficulties that other companies would face if they tried to movements over a time period
compete _ 7 the kind of companies that are moving the market:
technology companies or utility companies? large cap or
10.1 0 The term s in the box are indicators of a
small cap7
company's perform ance and are listed in financial
publications. M atch each one to its definition below . 8 w hether there is new money available to invest in the
market
earnings growth p/e ratio dividend yield
market capitalization return on equity 10 .1 3 Com plete this text abo u t th e foreign exchange
m arket using the w ord s in th e box.
1 share price multiplied by total number of issued shares
buyer seller Bank Reserve exports imports rises raises
2 earnings per share, compounded over several years
II international transactions in goods and services
3 how much profit is generated in relation to the money have to be paid for and the usually
shareholders have invested pays in the currency of the 2 . So, thete will
4 current share price com pared to its earnings per share be a high demand for a country’s currency if:
a) ihere is a trade surplus (ie the country 1
5 the annual dividends per share divided by the share price more than it 4 ) - b ecause foreigners
need the currency to make their payments
10.11 W hich term s from th e box in exercise 10.10 are b) foreigners are buying a lot of that country’s equities and
probably being referred to in th ese com m ents: bonds - they need the currency to make their
purchases.
1 'the company is the biggest in its industry'
Increased demand for the currency for either reason will
2 'compared to its competitors, the shares are cheap'
make it rise in value.
3 'it's a real growth stock - revenues are up year on year'
But over the short term the main factor affecting the
4 'it's not a growth stock, but you'll get a steady income
forex market is interest-rate differentials. As the central
from the shares'
bank of a country s rates, the dem and for
5 'it's a profitable company'
its currency . Why? Simply because
currency traders are looking for somewhere to park their
cash. II the US Federal 7 is paying 4% and
the European Central 7 2%, then cash will
D iscussion to pics
earn more interest held in the US as dollars.
1 Financial advice is garbage. If anyone knew how to beat
the market they'd be sitting on a beach drinking pina
coladas - not trying to sell stocks to other people. 3 Over the next one year / five years (choose one) the dollar
A gree Disagree is going to rise / fall (choose one) against the euro / yen /
2 Why invest in the stock m arket7 W hat goes up must come other (choose one) because ...
down. Spend the money today and enjoy it while you can. 4 If I could invest in just one individual stock (or one national
A gree O Disagree stock market) it would be ... because ...
47
Hum an resources
m ost large c o m p a n ie s to d ay h a v e an H R strategy. B u t it is in itial s cre e n in g p ro cess is called 'lo n g listin g '.
HUMAN
RE.SOURCE.S
CompenSAtion And benefits:
bASic SaIaty or wA^e, perhApS
rising by increments over time;
AdditionAl fin A n ciA l incentives;
fringe b e n e fits
M o tiv A t io n th ro u g h jo b
S A tiS fA C tio n - See u n it 4
In it iA l o r ie n t A t io n
f o r new employees
A im S
T o id e n t if y t A le n t And help t o Ali^n
ind ividuA l ijoAlS w it h CompAny rjoAlS
0 * - - t h e .- jo b -tr<kiM»^ T o <^et direct suggestions for
Apprenticeship pro^rAmS improving w o r k procedures
11.1 Fill in the missing letters. 4 The w o r d refers to all the people who
1 A list of all employees and how much each one earns is work in an organization; the word can
called the 'p_ _ II'. have exactly the same meaning, but it can also refer just to
2 'Equal opportunities' means making sure that everyone has non-managerial workers.
the same chance to get a job or get promoted One of the 5 If you receive a fixed percentage of every sale you make,
most common forms of 'disc ation' (= treating a you get a ;ifyou (or your team or your
certain type of person unfairly) is on the grounds of company) performs well, then at the end of the year you
'dis„ . ty' (= a physical problem that makes someone might get a _____________
unable to use a part of their body properly). 6 Your . . is the period of your life after you
3 Freelancers are often brought in to do jobs that were stop working (eg after 65); y o u r _______________________ is the
previously done 'i_-h ' (by employees of the money you receive during this time (from the government,
company). your company, or a private plan).
11.6 W rite one of th ese w o rd s in each space: ability, 1 1 .7 Com plete the text abo u t w o rk er-m an ag e m e n t
experience, k n o w led g e, qualification, skills. relations w ith the w o rd s in the box.
1 People think that HR requires low-status 'soft' skills. But it's 12 on both sides.
HR managers who appraise, negotiate compensation, fire
people and deal with the unions. That's not 'soft'.
Agree Disagree 3 Performance-related pay is a horrible invention that
creates enormous stress and insecurity in the workplace.
2 Shortlisting and interviewing should be the responsibility of
HR. Other people (from the functional department A gree Disagree
involved) should only have a minimal input. This ensures 4 Most training programmes are a waste of time. You just
fairness and equal opportunities. put the handouts in a file and forget about them.
Agree Disagree A gree Disagree
Information and communication technology
Web users ultim ately w a n t to g e t at data quickly a n d easily. They d o n 't care as m uch a b o u t
attractive sites a n d p re tty design
Sir Tim B erners-Lee (1955-) British in ven to r of th e W orld W ide W eb
T h e b asic issu es in in fo rm a tio n tech n o lo g y (IT) p erv asiv e com p u tin g - w here ev eryd ay objects have
m a n a g e m e n t are: em bed ded p rocessing p o w er w ith a con n ectio n to the Net.
:■ T h e re is a co n v erg e n ce b e tw e e n trad itio n ally sep a ra te
a) in creasin g the stability of the system to red uce d o w n -tim e
m ed ia.
b) en su rin g th at in fo rm a tio n is secu re and b a c k e d -u p (use
o f e n cry p tio n , fire w a lls to k e e p o u t h ack ers, v iru ses, E-business
sp y w are, etc)
A b u sin e ss w ith no o n lin e p resen ce is a 'b ric k s -a n d -m o rta r'
B eyond that, the fo llo w in g m ay be im p o rtan t issu es at o rg a n iz a tio n . A t the o p p o site e x tre m e , a few 'v irtu a l'
d ifferen t tim es: b u sin e sse s e x ist o n ly o n lin e. B u t m o st b u sin e sse s are
Tension b e tw e e n the IT d ep a rtm e n t and o th er b u sin ess 'c lic k s -a n d -m o rta r' - they h av e so m e part o f th e ir b u sin e ss
units, blow are b u sin e ss req u ire m e n ts tran slated in to an o n th e w eb, b u t also p h y sical p rem ises.
1 T solu tio n ? H o w is the efficien cy o f IT sp e n d in g T h e p h rase 'e -c o m m e rc e ' refers to the p art o f e-b u sin ess
m easu red ? D o the b u sin ess p eo p le u n d e rsta n d the re late d to b u y in g and sellin g . R e taile rs set up an electro n ic
tech n o log y ? sto refro n t (B rE sh o p fro n t) and sh o p p e rs p lace item s they
S h o u ld the so ftw are b e a co m m e rcial o ff-th e -sh e lf w an t to buy in an e le c tro n ic cart (B rE trolley ). W h en the
(C O T S) p ack ag e or a tailo r-m ad e so lu tio n ? If the latter, sh o p p e r is ready, th ey go to the ' c h e c k o u t w h e re their
then w h at d eg ree o f cu sto m iz a tio n is n e e d ed ? p a y m e n t is p ro cessed .
Hov. w e ll d o es the n ew IT in te g rate w ith the o ld (=
Tor cu sto m e rs, key issu e s inclu d e:
legacy) sy stem s?
■■ F rau d (th e sa fety o f o n lin e p a y m e n t sy stem s).
H o w goo d is the d o cu m e n ta tio n ? Is tra in in g n e ce ssary ?
M e rch a n d ise d eliv ery and retu rn s.
W h at level o f in te g ra tio n is a p p ro p riate ? S h o u ld the
: T h e d ifficu lty o f sp e a k in g d irectly to a c u sto m e r serv ices
o rg an izatio n use ju s t o n e stan d ard o f so ftw are (eg
re p rese n ta tiv e ra th e r th a n g e ttin g an au to m ated
S A P /O racle) an d / o r h ard w are (eg IB M / H P )?
resp o n se.
Trends F o r co m p an ie s, k e y issu es in clu d e:
P re d ictin g the futu re of in fo rm a tio n and c o m m u n ica tio n T h e p ro te ctio n o f in te lle ctu a l p ro p erty (p iracy).
tech n o log y (IC T ) is n o to rio u sly d ifficu lt, b u t sev eral trend s : W ebsite costs and m ain te n an ce .
ap p ear to be h a p p en in g : M e a su rin g the e ffe ctiv en e ss o f the w e b site (click -th ro u g h
C o m p u tin g p o w e r is m o v in g aw ay fro m the lo cal PC to rates for ad s, traffic cou n ts, c o n v ersio n rates to sh o w
th e n e tw o rk (d eliv ered w h ere and w h e n it is n eed ed ). p e rce n ta g e o f v isito rs w h o m ak e a p u rch ase).
_ S o ftw are is also m o v in g to the n e tw o rk : c o m p a n ie s are In term s o f th e te ch n o lo g y in v o lv ed , e -co m m e rce is a good
leasin g it o n lin e for a m o n th ly fee in stead o f b u y in g it. e x a m p le o f the ro le o f d ed ica te d (reserv ed for a sp ecific
W ireless c o n n e ctiv ity is b e co m in g p o ssib le b etw een u se) servers:
m o re and m ore d ev ices.
A d a ta b a se serv e r sto res cu sto m e r d ata and p ro d u ct
B an d w id th is in creasin g .
in fo rm a tio n in tables.
P rocessin g p o w e r and sto ra g e cap acity k eep in creasin g ,
A n a p p lica tio n serv e r is re sp o n sib le for ca lcu la tio n s and
w h ile p rices k eep g o in g d ow n.
p ro g ram logic; it re trie v es d ata from the d a ta b a se serv er
O p e n -so u rce p latfo rm s (d esig n ed and im p ro v ed by
and feed s it to th e w eb server.
u sers, o w n ed b y n o -o n e) are b e co m in g m o re co m m o n .
P ro fitab ility is b e co m in g an issu e for v e n d o rs as IT A w eb serv e r is re sp o n sib le fo r the in te rface and
b e co m e s w id e sp re a d and stan d ard ize d . g rap h ics; it p resen ts the w eb p ag e to the user.
In te g ra tin g and m a n a g in g IT sy stem s is b e co m in g m o re A b ro w ser o n the u s e r 's co m p u te r a llo w s the cu stom e r
im p o rtan t tha n sel 11n g n ew p ro d u cts. to in te ract w ith the c o m p a n y 's w eb server.
B a ck -o ffice fu n ctio n s (eg p ay ro ll) and so ftw are
d e v e lo p m e n t are b e in g o u tso u rce d to lo w -co st co u n tries.
w w w .w e b o p e d ia .co m w w w .in fo w o rld .co m w w w .cio .co m w w w .itm w e b .co m w w w .D rin t.co m
12 INFORMATION AND COMMUNICATION TECHNOLOGY
I. R a w operutioAAl d A tA is k e p t iA
TrAASActioA processiA^: coAStAAt wpdutiAij
d A tu b A S eS , S aIcS iufo, iAV£Atory
o-f m iSSioA-criticAl dAtA Swcb AS orders,
iA-fo, custoMer ir+'o
iAVoiceS, pAymAAtS, pAyrollS, iAVeAtory, etc
2.All "tbe. d u t Abuses Ard docuMeAtS
M urkatiA d: C R M (customer
froM Across tbe or^A AirutioA Are
relutioASnip MAAAijCMeAt’)
collected together iA a 'dAtA wArebowse
FV'odwctioA / OperAtioAS: M R P (m uter iul
ra^uirem eAts p i a a Ai a ^ " ) , C lM (computer 3. U-foriwAtioA from tbe dAtA
wurehouse is retrieved bv 'm aa A^eMe At
iAteiji'Ated MAAufucturi A<p
iA-forMAtioA System' CM ILb softw ure
FiAAACe: f i AAACi aI p lA A A IA ^ AAd bwdi^etiA^ wsia^ 'dutAmi a ia ^ M IL Softw ure
Supports deciSioA mukiAd, id eu tifies
H w m a a resources-. puyroll
pAtter'rS a Ad tre u d s, etc
a Ad employees' re .c o rd f
F R P (au te rp rise resource plAAAiAdT.
MAAA^es All stupes iA tbe Supply chuiA
B lu e to o th t o eAAble sh o rt-ru A ^ a
.coAAectio betweeA w ireless devices FlectroAic exchAAde': a mArketpUce
fo r a specific i A d u S t r y
L u p p ly c b A iA m A A A ^ em ep t
A f^ liC A tio i^ S
>1
12 INFORMATION AND COMMUNICATION TECHNOLOGY
10____________________________ / _________________________ _ software one place, a company aims (i) to make cost savings
through efficiency and (ii) to present a unified face to the
12 U nderline the correct (or best) w ords. customer, regardless of the communication channel that
1 W e have IBM machines running / running on SAP. they use.
2 We have SAP running / running on IBM machines. Another common E R P application is a management
3 All your so ftw a re / so ftw a res can run on our servers. information system (M IS). This is a decision-making tool that
4 Sometimes w e have to write a / som e special software. allows m anagers to extract useful knowledge (specific
5 W e need a more powerful and effective system. It needs details, key indicators, trends) and present it as graphs,
to be updated / upgraded. reports, alerts, forecasts, etc.
6 We need the latest version of the system. It needs to be
updated / upgraded. Find a w ord from the text th at m eans:
1 The database updates / upgrades automatically when new 1 available in a standard form , not designed for a particular
information is entered. customer
2 personalization
12.8 Read the text about ERP then an sw er the
3 predict (word #1)
auestions below .
4 predict (word #2)
mall com panies tend to use separate off-the-shelf 5 the combined activities of sourcing (= finding w hat you
software p ack ag e s to do sp e cific tasks, such as w ant) + purchasing (= buying it)
preparing accounts. But larger com panies need a solution 6 able to be used on its own (ie w ithout buying other
that provides software on a modular b asis - with the components)
possibility of customization - and then integrates all the 7 the price that a supplier says they will charge
parts. This solution is called ER P (enterprise resource 8 delivering goods in the w ay that is promised and expected
planning), and the main vendors are SAP and Oracle. 9 on-screen warnings
D iscussion to p ics |
1 Business people don't understand IT, and IT people don't 3 In five years' time, the biggest change in our lives from ICT
understand business. will be ...
Agree Disagree
4 Teleworking is the w ay to go. W ho needs an office when
2 E-commerce is a wonderful thing ... until you w ant to everyone is networked?
speak to anyone about anything. Agree Disagree
Trends, graphs and figures
Read the text and then study the bullet points below . n o u n s o f m o v e m e n t. E x a m p le s in th is text are fall, bottom
out, be fla t, increase, etc.
11400
11300 • T h e m in d m ap o p p o site lists v erbs o f m o v em en t. N o te
11200 th at w o rd s d e sc rib in g the sam e ty p e o f m o v e m e n t are
1110(1 o fte n u se d in d iffe re n t co n texts. F o r e x a m p le, sh are
11000
10900 p rices 'ra lly ' w h e reas p ro fits o r e co n o m ie s 'g ro w '. U se a
101500 go o d d ic tio n a ry to c h e ck o n p o in ts o f u s a g e su ch as this.
10700 N o te the u se o f v e rb tenses in the text: reached, w ere
10800
10500 risin g, h a d clim bed, has risen , etc. T h e re is a su m m ary of
10400 v erb fo rm s and u ses in the m ind m a p o p p o site.
10300 A text d e sc rib in g tren d s w ill in clu d e m an y e x am p les o f
10200
10100
lin k in g w ord s. (See un its 2 0 -2 2 .) E x a m p le s h e re are even
10000 though, due to, as a resu lt o f a n d as (m e a n in g 'b e c a u se ').
i t A b i l i t y : S tA y t h e SAm C, be f ) A t ,
be C re lA tiv e ly -) uxchAA^ed; level o f f / o u t
, J» tA te S : be Up / dowA
TRENM, q r a ph ^
—^ AND
Action p r o q r t if
ia
PV-eseAt: SAles A re r i S ia ^
nquREs
Stro A ^ ly A t th e MOMeAt
P A S t ; SAles w e re r i S ia ^
More S tro A ^ ly lA S t yCA r
Lo o k .ib A C k . A X A A A C tlO A i a p ro ^ re sf
57
© Trends, graphs and figures: Exercises
13.1 Match each phrase on the left w ith its closest 4 We can 'raise / lower' prices or 'put up / bring down'
synonym (sam e m eaning) on the right. prices. However, the first two exam ples / last two examples
1 drop by 50% a) deteriorate are slightly more formal, and can refer to a change in the
2 rise by 100% b) recover level or standard of something as well as prices.
3 get better c) double
13.5 Put a tick ( / ) if the sentence is possible. Put a
4 get worse d) raise
cross (/) if it is not. The a n sw ers depend on w hether
5 bounce back e) expand
the verb is transitive, intransitive or both.
6 grow f) lower
7 put up g) halve 1 We cut costs by 5 % . □
8 bring down h) improve 2 We fell costs by 5 % . □
3 Profits cut by 5 % . □
13.2 Match each verb on the left w ith its closest
4 Profits fell by 5 % . □
antonym (opposite m eaning) on the right.
5 We raised prices by 2 % . □
1 rise a) plummet
6 We rose prices by 2 % . □
2 raise b) be flat
7 Inflation raised by 2 % . □
3 take off c) bottom out
4 expand d) fall 8 Inflation rose by 2 % . □
5 fluctuate e) lower 9 W e increased sales by 4 % . □
6 peak f) shrink 10 Sales increased by 4 % . □
11 We w ent up market share by 3 % . □
13.3 Com plete each sentence w ith a phrasal verb from
12 Market share w ent up by 3 % . □
the box.
1 3 .6 The -ing form of m any verbs can be used as an
bounce back bottom out bring down level off
pick up put up slip back take off adjective, eg an increasing d em a nd fo r oil. Make
adjectives from the verbs in the box using the
1 If your prices are too high, you have to inform ation in brackets.
them
expand grow rise shrink- soar
2 If your prices are too low, you have to
t h e m __________________ 1 shrinking budget (decreasing in size)
3 If sales reach their lowest level, t h e y ___ 2 an _ business (increasing in size)
4 If sales recover after a period of downward movement, 3 a . problem (increasing over a long
t h e y ______________________ period)
5 If sales go up a little after being flat for some time, they 4 inflation (increasing)
5 costs (reaching a very high level)
6 If sales go up a lot after being flat for some time, they
1 3 .7 Fill in the m issing letters in these adverbs using
the inform ation in brackets.
7 If profits were going up - or down - and then become
stable, t h e y ______________________ Sales increased ...
58
13 TRENDS, GRAPHS AND FIGURES
13.8 Put a tick ( / ) if the sentence m akes sense. Put a 13 .1 2 It is very com m on to use approxim ate figures -
cross (X) if it does not. particularly in speech. Match each approxim ate figure
1 Profits have risen steadily over recent years. a)-p) to an exact figure 1-6 below .
2 Sales plummeted marginally in July. | a) just over 150 i) far less than 150
b) around 150 j) way, w ay over 150
3 The price of oil soared gradually last year.
c) just short of 150 k) nowhere near 150
4 Share prices dropped back slightly last w eek. .
d) roughly 1 50 I) slightly more than 150
5 Unemployment numbers levelled out sharply.
e) not quite 150 m) som ewhat more than 150
13.9 W rite the nouns for these verbs. Som etim es the f) almost 1 50 n) 1 50 give or take a little
form is the sam e. g) some 150 o) somewhere in the region of 150
h) 150 or so p) nothing like as much as 150
1 cut 6 improve
1 deteriorate 7 increase 1 90 □ □ □
3 fall 8 recover 2 146 □ □ □
4 grow 9 reduce . . 3 154 H] □
5 halve 10 rise .
4 190 □
5 240 □
13.1 0 Rew rite th e 'verb + adverb' sentences as 6 140 to 160 □ □ a
'adjective + noun' sentences.
13.13 Fill in the gaps w ith a preposition w h ere
1 Sales fell slightly. necessary (in one case there is no preposition). Choose
There w as a __________ slight fa//_________ _ m sa|es
from: at, b e tw e e n , d o w n , from , in, into, of, on, to, with.
2 Profits rose steadily. 1 Last year sales rose . _______ € 7 m _________ € 7 .5m. So
We saw a ___________________________ in profits, that's an in cre a se €0.5m .
3 The economy improved gradually. 2 Last year there w as an increase sales
There w as a in the economy.
4 W e need to reduce costs sharply. 3 Our market share now s ta n d s ____________ 2 8 % .
We need to see a in costs. 4 One _______ _ _ five (= one out of every five) of our
products never makes a profit.
3 11 Underline the correct w ords.
5 Two million euros w ere spent on television
1 I'd like you to look at the blue segment on this next bar advertising.
chart / pie chart.
6 Unemployment figures have been relatively stable for
2 I'd like to draw your attention to the heading / title at the
some time, fluctuating ________ 4 .3 % and 4 .6 % .
top of each column of this table.
7 There hasn't been much movement _ _ _ the
3 I'm sorry, the heading / title of this next slide is off the
unemployment figures for some time.
screen, but at least you can see the graph.
8 Sales rose _______ .lin e _____ __ predictions.
4 The horizontal axis is m arked with / labeled with the
9 From January 1st to now, sales have gone up by €0.5m .
months of the year.
So that's a y e a r- ___________-date increase of 8 % .
5 Sales growth has been very rapid - as you can see from
10 Over the last twelve months, sales have gone up by
the steep / shallow slope of this graph.
€0.5m . So that's a year- . -year increase of 8 % .
11 In this pie chart, sales are broken by region.
12 In this pie chart, the w hole country is d iv id e d ___________
five regions.
Speakin g / W riting practice
Prepare tw o graphs. They could be about your company Speaking practice 2. Regroup and w ork with a new
(sales, profits, costs, etc) or your country (inflation, partner - you are going to repeat the exercise and explain
unemployment, house prices, etc). You could take graphs the graphs again. This time speak slowly and focus on
from an article on the Internet or in print, in English or in accuracy rather than fluency. Take a moment to review
your own language. Remember to label the tw o axes. pages 56-57 before you begin.
Speaking practice 1. Tell a partner about the graphs. Your Writing practice. W rite a short report based on the two
partner should ask for more information (eg 'I'm sorry, can graphs.
you explain that again?' 'W hat were the reasons for that?').
59
Presentations - structure and key phrases
M y p resentation will take arou n d tw en ty m in u tes, and if th ose o cc a sio n s w h e n y o u ch o o se to u se them . U nits 15, 18
and 2 0 -2 2 are also v e ry relev an t to the lan g u ag e of
v o u h ave any question s I'll be p leased to an sw er them at
the end. Okay. L et's start bv looking at w h o w e are and p resen tatio n s.
_ lA -tro d w c k io A
Q o o o ^IAC^ lOIV i 0^ O'f m Av I wfilcoMfi. yow 'to ...
f T W t V a very ^ood <^uestioA. For those oF you who doAt kAow Me
I'm ^ la x ) you ASked th A t.
AlreAdy, My AAMe iS ...
Ne.w poiA-t^
MoviAr] oa aow t o My A e x t p O I A t ...
Ra-farri*^ -forward
I II ao iAto thiS iA More detA il ia A momCa t .
^UM M Ar i i i
/ I'll coMe bACk to th is lA te r.
Ra-farri*^ back
.£0 , j u s t beFore I FiA ish, le t Me J Ia the F ir s t pA rt oF My tA lk I MeAtioAed ...
suM M Arize th e m aia p o iA ts a ^a Ia , ...
f Qoin.^ bACk For a MOMeAt to whAt I SAid e A rlie r...
.Lo, to Sum up, I hAve tAlked About three
MAiA AreAS. F ir s t ..., secoAd ... AAd th ird , b i^ re^ ia ^
&eFore <joia ^ oa, I'd ju s t like to SAy a lit t le About ...
C c A c lu d iA /j
IF I caa ju s t digress C* Side-trACk') For a MoweAt, ...
R i< jh t , le t 's s to p th e re . ThA A k you
■£o, ^ettiA^ bACk to My o t i ^ ia a I poiAt, you caa see th A t ...j
ve ry M uch For your A t t e A t io A .
Visual aid *
I a V i L i a ^ < ^ u a *tio a *
I A s you caa see FroM th is Aext Slide, ...
v AAd aow, iF you hAve A A y ^ u e s t io A S , HAve a look A t the diAjjrAM oa the leFt ...
I'll be pleASed to AASw er th e M .
HAAdliAJ iAtarrwp-fcioA#
V T hA t s aa iA terestiA ^ <^uestioA. I'll
cone bACk to th A t A t the eAd
x ^as, thAAk you, I WAS j u s t Comia^ to th A t. J
61
J Presentations - structure and key phrases: Exercises
14.1 Put the w ord s into the correct order to m ake 14.2 Match the phrases from exercise 14.1 to their uses
phrases used in a presentation. below.
a) Could please your attention, I have? 1 Getting attention _, 6 Purpose
_____________ Could I have your attention, please? 2 Name 1 7 Structure
b) I'm here at InfoCom new product responsible for 3 Position 8 Timing
development. 4 Greeting 9 Questions
5 Audience / Place 10 First point
g) Please during the talk feel free me to interrupt if you any 5 It's nice to see so many familiar faces, and I hope you all
have questions. found somewhere to park!
6 I'm here today to tell you about our new product line.
7 I'm going to cover three areas: first, the different models
in the range, then key benefits, and finally price.
h) Okay, I'd like to slide by at this first looking begin. Can see
at the back the people okay? 8 I'll speak for about forty minutes.
9 If you have a question, please feel free to interrupt. □
10 Okay, let's take a look at this first slide. 7 ]
i) My forty minutes take presentation will around. 14.5 Speaking practice. Read aloud the version in
exercise 14.4. It is already in the correct order. Again,
j) I've divided into my talk three parts main. First, I'll give you use your ow n name.
the different models an overview in of the range. Then I'll
to describe move on each the key benefits of model. And 14.6 Speaking practice. You are going to use the
finally I'll say about prices a little. structure in exercise 14.2 to practise a more
spontaneous opening. Follow th e instructions.
1 Cover all the exercises on this page except exercise 14.2.
2 Give the opening to a presentation:
Use the headings in 14.2 as a guide while you speak.
(Don't worry if you change the sequence a little.)
• Invent any details that you w ant - it is not a memory
exercise.
• Practise several times in a low voice, and then speak
with a strong, clear 'presentation' voice.
62
14 PRESENTATIONS - STRUCTURE AND K EY PHRASES
14.7 Each pair of w ord s can be used in one sentence. 1 Okay / start / looking / overview / product line
W rite them in the correct spaces. 2 I'll / back / this later.
3 Right / all / w ant / say / overview. / questions / far?
as / see com e / later digress / little
finish / summarize getting / to going / m om ent 4 So, / moving / like / talk / key benefits / each model.
let / attention moving / talk pleased / answer 5 Going back / moment / w hat / earlier.
right / far start / looking- turn / question 6 If / just digress / moment, / like / say a little /
starr looking background / decision.
1 Okay, let's by at
7 So, / getting back / original point, / can see / is /
an overview of our new product line.
big improvement / old model.
I'll ___ back to this -
8 Finally, / like / turn / question / price.
__ . , that's all I w ant to say about the
9 As / see / the table / this next /, prices / very competitive.
overview. Any questions s o ________ ?
10 So, / just / finish / let / summarize / main / again.
4 So, on, I'd like to
about the key benefits of each model. 11 Right, / stop there. / Thank / much / your attention.
Give a short presentation. Follow these instructions: 2 Plan your presentation. M ake a fe w very short notes on
1 Decide on a topic. Here are three suggestions: the main points. However, do not w rite a full script. You
• You are the Director of Tourism for a city or region in w ant to look at the audience, not at a piece of paper.
your country. Give a presentation about w hy people 3 Look back briefly at the mind map and the exercises to
should come to visit. review some phrases.
• Choose an object that you have with you, or that is in 4 Give your presentation. Remember to ask for questions at
the room. Give a sales presentation about w hy it is the the end.
best of its kind and w hy everyone should have one. (If you are working in class, your teacher will set a time limit.
Choose a topic that is similar to real-life presentations If you are working alone, use a colleague / friend / domestic
that you make. animal as your audience.)
63
Presentations - being lively and persuasive
and d eb atin g in p u b lic p lace s - p e o p le lik e P la to and d ra m a tic im p act. Try read in g alo u d the a b o v e p re se n tatio n
A ristotle g av e th e b e st p re se n tatio n s o f their day. T h ey again . D o it sev e ral tim es in d iffe re n t w ay s. E x p e rim e n t
th ou gh t that the b e st form of a rg u m en t w as reason, b u t they w ith p au ses, v o lu m e ch an g es, and in to n atio n . E xag g erate
use the exp ressio n 'rh e to rica l la n g u a g e ' to refer to lan g u ag e and b u ild tru st. To ach iev e th is, key issu es are:
A r v e c d o - te &EINQ LIVELY
I t rewihdS Me o f th e tiM e I ... J rs
ANb PER^UA^IVE
&e<^iAAiA^ o f word:
W io ft w u re fo r leisure AAd leurAi a<^ \
stre sse d SyllAble iA Middle o f word:
f Ai\d we caII our shop: PlAAet Or^AAic.
E h d o f word:
We Aeed A e ^ o tiu tio A ,
Aot coAfrohtAtioA,
W o rd *
We deliver oa tiMe, every tiw e.
U *a w o rd * / s t r u c t u r e * This device is powered by a tiA y b A tte ry .
I a g r o u p s o-f - t k r e e It 's A b A tte ry th A t lASts 4 G F
louder thAA the oAe ia our previous Model.
It 's ecoAOMiCAl, re ltu b le , Y e t th is SAMe b u tte ry weighs
AAd eASy-to-cleAA. ieSS thAA A pAper clip.
I ASk you; 'Is th is rAASOAAble? ^ oW A d + stru ctu re
Is th is aood buSiA£SS prA ctice ?
P>eAt the re s t - choose the best.
Is this w h et our custoMers e x p e c t?
You'll feel huppy AAd heulthy,
M A ka tk ra a k e y p o iA t * relAxed AAd refreshed.
,£ t o p - A A d - * t A r t r e p a t it io A
15.1 Com plete the rhetorical questions w ith the pairs 3 What's the reason that w e keep going over-budget? The
of w ords in the box. explanation clearly is that w e lack good financial control.
How + do When + expect Why + keep on 4 The issue of energy conservation is becoming increasingly
Where + go How much + is What + waiting important - it's the topic that's at the top of the agenda in
the construction sector.
1 The opportunities are there. We've got the staff. 5 W e have a global presence, w ith offices in every major
are w e for? centre from Berlin to Beijing. But being international
2 Our production costs are going up and w e're losing doesn't always help - sometimes you need a local strategy
market share. There's one question on everyone's mind. as well.
do w e ___________________from here?
3 We went from a small office in Bratislava ten years ago to 15.4 Underline five contrasts in this presentation
be market leader in Central Europe today. extract. (Remember, one contrast w ill have tw o w ords.)
_____________________- did w e _______________________ it? The first one has been done for you.
15.3 Replace one w o rd each tim e w ith a w ord th at has 3 Why should you invest in this company? Because it's
already been used. Your aim is to produce repetition of
w ords for dram atic impact. and has a great long-term ________________________________ .
4 Sales are flat. W hat can w e do? W e need more accurate
1 You have a lot of information on your databases. But can
information identification o f _______________________________ ,more
you mine that knowledge to get what's really useful? efficient and faster
• Write the script for a short presentation that you might Now write down the key points (max 20 words in total) on
give as part of your job or university course. At the a piece of paper. Practise again using just these key points
planning stage, refer to units 14 and 15. to guide you - not the full script.
Practise speaking the presentation, using the script. Practise again. Be lively and persuasive.
67
Discussions
Managing a discussion
R ead this d ialo g u e in a real estate ag e n cy and then stu d y the p oints below .
• L o o k at the w o rd s in b o ld ab o v e. U n d erlin e:
Can you help me? I'd be interested to know something about
- five p h rase s ask in g fo r m o re in fo rm atio n .
property prices in this area.
- o n e p h ra se sh o w in g the sp e a k e r is g o in g to
Yes, of course. But first, could you tell me a little more about your
ch e ck u sin g th eir o w n w ord s.
present situation?
- th ree p h rase s for full ag reem en t.
I’ve been living in rented accommodation for several years. Now I’m - one p h rase u sin g Yes, bu t ... fo r h a lf agreem en t.
wondering whether it’s a good time to buy somewhere for myself. - one p h rase u sin g tw o o p e n q u e stio n s to sh ow
Okay. What sort of price were you thinking of? p o lite d isag reem en t.
Oh, you know, nothing too expensive. - tw o p h ra se s fo r sim p le d isag reem en t.
Could you be a little more specific? We have some small one- H o w m an y o f th ese can y ou fin d in the m in d m ap
Id bedroom apartments that start at around € 120,000. Was that the o p p o site ?
kind of thing you had in mind?
< A t lin es 7 and 10 yo u w ill see the p h rases: W hat
Possibly. But I'm not ready to think about individual properties just yet.
so rt o f price w ere y o u th in kin g of? and W as that the
I wanted to know more about the market in general. There are a lot of
k in d o f thin g y o u h a d in m ind?
stories in the newspapers about house prices, and they worry me.
T h e se q u e stio n s are in te re stin g for tw o reasons:
15 B: Okay. If I understand you correctly, your worries are probably
- first, they use 'v a g u e ' lan gu age: so rt of, k in d of.
these: you don’t want to buy at the top of the market and see your
- seco n d , th ey u se p a st ten ses (w ere / w as / had),
house fail in value, but equally you don’t want to miss the chance if
e v en th o u g h the tim e referen ce is present.
prices are going to continue to rise.
A: Yes, exactly. T h e p a st fo rm s cre ate an in d irect, d ista n t feeling .
2d B: This is of course a concern for all our clients, but you know it's very T h e y c o m b in e w ith the v ag u e lan g u ag e so th at the
difficult to time the housing market. Newspaper stories can make clie n t feels that he / sh e is u n d e r n o p ressu re.
A: Really? Do you think so ? My friend bought an apartment near said earlier, ...
here last year for €165,000, and now other apartments in the same - at lin e 3 7 B d eals b rie fly w ith th is resistan ce: In
block are going for less than €150,000. certain areas ... b u t th e n tries to b lo ck fu rth er
d iscu ssio n w ith: I thin k w e're losin g sight o f the
3d B: Well, of course, it all depends. There are many factors that can
cause these short-term changes. But there is another way of m ain poin t.
looking at this. If prices have dropped temporarily, then now is a - at lin e 42 B m a n a g e s the co n v e rsa tio n so that
A: That makes sense. But it’s a difficult issue. w o rd s an d p h rases. (See u n its 2 0 -2 2 .)
B: You’re absolutely right. But while you’re here, why don’t I give
you an idea of what's available in your price range?
A: Okay.
4s B: Right. I’d like to start by writing down one or two personal details,
and then we can move on to looking at some of the properties we
have on the market
DISCUSSIONS
A ^ re e w it h you up t o a p o iA t, b u t
C kA r^ i^ -tlie. FoCIA*
Fbli-te. d i^ re .e .M C .A -t
T h ere iS A A o t h e r wAy o -f lookiA ^ A t th is .
Well, o f c o u r s e , i t A ll d e p e A d s . R erh A p S we s h o u ld A lSo c o A S id e r ...
I'm A o t s u r e I A ^ r e e w i t h t h A t .
I've d o t M ix e d f e e l i A ^ S A b o u t t h A t R .e.-tw rM r^
R e A lly ? Do yo u th iA k So? Q o iiv^ bACk t o w h A t I / y o u SA id e A r l i e r . ..
Do a 't you th iA k th A t ...? L e t we bACk up. C A m F -).
&Uyi*v^ "tiMC.
I t ' s a d i f f i c u l t issue.
I'll hAve t o t h i A k A b o u t it.
C o u ld I <^et bACk t o y o u oa t h A t ?
W hv d o A 't w e co M e bACk t o th A t lA te r
D U C U ^ ^ lO N ^ RespoAdiA^
Y e s, e xA ctly .
Y es, t h A t 's ri^ h t.
N o t exACtly.
Well, le t Me p ut i t AAother wAy.
No, th A t 's Aot whAt I MeAAt. /
No, whAt I' m try iA ij to SAy IS ... y
69
Discussions: Exercises
16.1 W ithout looking back at the mind map, think of 1 6 .4 Find a phrasal verb (eg take o f f o r look forw a rd
just one w ord to fill each gap. to) in exercise 16.3 that m eans:
a) There is another _ of at this. 1 start doing something seriously get d ow n to
b) Right, let's get down t o ______________ 2 stop doing one thing and begin doing another
c) back to w hat you said earlier.
d) I think w e're lo sin g ______________ of the m a in ______________ 3 return to a subject
e) Could I _ ___interrupt for a _ ? 4 speak to someone at a later time
f) Could you be a little m o r e ______________? 5 repeat something in order to understand it
g) W hat exactly do you mean more expensive'
h) Sorry, if I can finish, I was saying that ..
16.5 Match the beginning w ith the end of each phrase.
i) Could I __________ back to you that?
a) You're absolutely —— a point, but ...
j) Was that the . of thing you had in
b) Yes, I'm in favour \ I see it.
k) Does that make c) That might be worth right.
I) Well, let me it another way. d) I agree with you up to agree to that.
e) I can see one or two so?
16.2 Match each phrase in exercise 16.1 w ith one of
f) I'm sorry, I can't of that.
the uses 1-12.
g) Really? Do you think problems with that.
1 You w ant to change the focus. . h) That's not how trying.
2 You w ant to block the other person's change of focus
and return to the main issue. 1 6 .6 W rite each phrase letter from exercise 16.5 in the
grid below.
3 You w ant to interrupt. □
4 You w ant to block an interruption and continue. Q w ith som eone about som ething
711
16 DISCUSSIONS
16.8 The w o rd s offer, su g g estio n and p ro p o sa l are 16.11 Put a tick ( / ) if the sentence is gram m atically
often m isused. Match each w ith an explanation: correct. Put a cross (/) if it is not.
1 _ - a n idea or plan, perhaps quite 1 I suggested a different idea. Q
tentative and vague 2 I suggested him a different idea.
2 _ - an idea or plan, more formal and 3 I suggested a different idea to him. □
definite, and usually one that a group has to consider 4 I suggested using another approach. □
3 __ - a statem ent saying you will give 5 I suggested to use another approach.
something to someone (used mainly in negotiations) 6 I suggested w e should look at alternatives. □
1 6 .9 Match each item on th e left w ith one on the right 7 I suggested it w e should look at alternatives. □
that has a sim ilar m eaning. (Note: p ro p o se and reco m m en d have the sam e
1 put forward - take up (a suggestion) patterns)
2 accept think of (a suggestion)
16.12 O ne item in each group does not collocate w ith
3 reject make (a suggestion)
the verb. Cross it out.
4 come up with dismiss (a suggestion)
1 hold a meeting / all the cards / an opinion /
5 take part in tackle (an issue) a proposal / sb responsible for sth
6 come to bring up (an issue)
2 take part in a discussion / an effort to do sth /
7 raise be involved in (a discussion)
a decision / up a suggestion / another approach
8 deal with open it up for (discussion)
3 reach an agreement / a compromise / a dead-end /
9 reconsider reach (a decision)
a decision / a demand
10 throw it open for reassess (a decision)
4 raise awareness of the issue / a difficult challenge /
11 a sensible feasible (suggestion) the matter later / an important objection /
12 a sensitive reasonable (suggestion) an interesting question
13 a realistic ridiculous (suggestion)
5 meet a challenge / a deadline / an issue / a need /
14 a minor difficult (issue)
an objective
15 an absurd side (issue)
8 You've all read my summary, so now I think w e can When you finish, write the script for a part of the
o it u f a more in-d_ _ _h discussion. discussion that w as interesting. Feel free to add other
9 W e finally r ed a decision, but it w as a t gh one points - it is a language exercise, not a memory
to make. exercise.
10 It should be a relatively str _____ _rd decision.
©
Social English
Social English and cultural awareness
social situ atio n s, and the ex e rcise s o n p ag es 7 4 -7 5 refer to n am es (m o v in g q u ick ly to first n am es, e v e n for y o u r
b o ss)
these. T h e rem ain d er o f this p ag e g iv es air in tro d u ctio n to
the clo se ly -re late d to p ic o f 'c ro ss-c u ltu ra l a w a re n ess'. e x p re ssiv e b o d y la n g u ag e (p eo p le w av e their arm s,
m o v e ch airs arou n d freely in m eetin g s, look e ach o th er
Diversity and tolerance in the ey e) vs re strain ed b o d y la n g u a g e (sm all, su b tle
H ere is a q u estion : Do you thin k that A m erican s are m ore facial e x p re ssio n s carry larg e m e a n in g s, p h y sical con tact
o u tgoin g an d in form al w hile B rits are m ore p riv ate a n d reserved? in p u b lic o r lo n g eye c o n ta ct is u n co m fo rta b le )
larg e p e rso n a l sp ace (p eo p le stan d at a d istan ce w hen
We feel in stin ctiv e ly that there is so m e tru th in this.
H ow ever, h a v in g m ad e a g e n era liz a tio n , o u r n e x t reaction talk in g ) vs close p e rso n a l s p a ce (p eo p le stan d n ear to
e ach o th er)
is u su ally : B ut w ait, that's a stereotype, an d an y w a y it depen ds
« self-d e te rm in a tio n (w e m ak e free ch o ices and con trol
on so m an y other things: age, eth n ic grou p, region al differen ces,
o u r liv es) vs fa ta listic (o u r lives are d ete rm in e d by god
not to m en tion the in d iv id u al person . E v ery o n e w ill hav e their
o r d estin y o r the g o v e rn m e n t)
o w n view s. T h e p o in t is sim p ly this: to re co g n ize th at the
p e rso n a l fu lfilm e n t (in d iv id u a l in itia tiv e and
w ay w e th in k and b e h a v e is n o t the o n ly way. W h en
a c h iev e m e n t are v a lu e d ) vs g rou p fu lfilm e n t (group
d ealin g w ith p e o p le from o th er cu ltu res, and esp ecially
h a rm o n y is v alu ed - W h o n e e d s in itia tiv e w h e n d uties
w hen a ctu ally d o in g b u sin e ss in an o th e r country, w e need
are fixed b y trad itio n , le a d e rs o r team n e ed s?)
to o b se rv e and listen an d sh o w resp ect. T h at d o e s n 't m ean
’■ m erit (resp ect is g iv e n to th o se w h o h av e earn ed it) vs
w e h av e to a b an d o n o u r n o rm al w ay o f d o in g th in g s - w e
s ta n d in g (re sp e ct is g iv e n to th o se w ith th e righ t
are also en titled to resp ect and to leran ce from o th ers, and
ag e /social class / ran k)
w e can n o t ju s t ch an g e o u r p erso n alitie s. B u t if w'e w an t to
relatio n sh ip (if w e c a n get a lo n g w e ll, w e can d o a good
h av e su ccessfu l frie n d sh ip s and b u sin e ss re latio n sh ip s in
jo b ) vs task (if w e can do a good jo b together, w e m igh t
an in tern atio n al con text, th e n w e h av e to u n d e rsta n d and
get clo se r as p eo p le)
acce p t the d ifferen ces.
• w e lco m in g risk ('g o fo r it!') v s a v o id in g risk ('b e tte r
National differences safe than so rry ')
< in n o v ativ e (n ew is e x c itin g and a lw ay s b est) vs
W riters in the field o f cro ss-cu ltu ral aw aren ess lo o k for
trad itio n al ( 'if it is n 't b ro k en , w h y fix it?')
o p p o sin g b e h a v io u rs (or v alu es) and th e n p lace d ifferen t
o p en d isa g re e m e n t (c o m p e titio n b e tw e e n id eas is
cu ltu res at d ifferen t p o in ts alo n g the scale. H ere is a
n e ce ssary to m ak e the b e st d ecisio n ) vs su b tle
sim p lified v e rsio n o f so m e w e ll-k n o w n cu ltu ral d ifferen ces;
d isa g re e m e n t (n o -o n e m u st lo se 'fa c e ' by b e in g p ro v ed
m an y are closely re lated . H o tic e h o w the d e scrip tio n s are
w ro n g in p u b lic, and co n se n su s m u st b e b u ilt slow ly, so
all neu tral. T h ere are n o p o sitiv e o r n e g a tiv e co n n o tatio n s.
d isa g ree m e n t is s ig n a lle d u sin g co d e su ch as R eally? or
# o u tg o in g / in fo rm al (sh are feelin g s easily w ith a w id e
I'm n ot su re abou t that.)
circle o f a cq u a in ta n ce s) vs p riv a te / reserv ed (share
m u lti-ta s k in g (p eo p le h a n d le sev e ral th in g s at the sam e
feelin g s w ith care, and o n ly w ith clo se frien d s and
tim e) vs lin e a r ta s k in g (p eo p le d o on e th in g properly,
fam ily)
an d then m o v e on)
live to w o rk (statu s com es th ro u g h p ro fe ssio n a l
lu n ch is a sn ack (b u sin e ss an d food d o n o t m ix ) vs
a ch iev em en t) v s w o rk to live (liv in g a full, ro u n d ed ,
lu n ch is a p le a su re (and the re sta u ra n t is a p lace to
stress-free life is m o re im p o rtan t th a n ju st h av in g
c o n so lid a te a b u sin e ss re latio n sh ip )
m on ey )
- p rid e in y o u r co u n try (m ore than ju st fo o tb a ll) vs
ord er (the ru les are the ru le s - so ciety su ffers if you
fo re ig n is b e st ('th e g rass is a lw ay s g re en e r on the other
break th em ) vs flexib ility (so m e tim e s w e can ignore
sid e o f the fe n c e ')
ru les - the con text, y o u r c o n scien ce and frien d s are m ore
D iscu ss th ese p o in ts, u sin g y ou r o w n n atio n al cu ltu re and
im p o rtan t)
o th ers as exam p les. You can refer to the scale below . '1 '
h ierarch ical (w e need clear d irectio n fro m ab o v e to do
m ean s the cu ltu re is an ex tre m e e x a m p le o f the
our jo b s p ro p e rly ) v s d e m o cra tic (p o w er should be
b e h a v io u r/ v a lu e m en tio n ed first. '1 0 ' m ean s it is an
d istrib u ted - e v e ry o n e 's o p in io n is im p o rtan t)
e xtrem e e x a m p le o f the o n e m e n tio n e d seco nd .
loose lim e (d ead lin es are g u id elin es) vs s trict tim e
(delav is failu re) 1 8 9 10
17 SOCIAL ENGLISH AND CULTURAL AW ARENESS
£W o w i^ l(Vte
73
Social English: Exercises
17.1 Underline the w ords that a native speaker w ould 17.3 Put the lines of this dialogue into the correct
probably say in the introductions and greetings below. order 1-9. You are introducing Leon to Teodora at a
1 Diana, here / this is Steve. conference coffee break.
2 Nice to meet you. Nice to meet you, also / too. a) You: Do you two know each other?
3 Pleasure / Pleased to meet you. I b) You: Let me introduce you, then. Leon, this is
4 Hi, (Kristina), how are you going / doing ? Teodora. Teodora, Leon,
5 How's it going / d oin g ? c) You: Leon is at UBS - w e used to work together in
Zurich.
6 How's life / the life?
7 May I present / introduce myself? [~| d) Teodora: No, w e've never met.
8 You m ust / should be Chris Wood, is that right? e) Teodora: Yes, you too.
9 How are you? Fine / Well, thanks, and you? Q f) Teodora: Ah, so you're at UBS. That's interesting.
I work in the area of security for online banking,
10 Hi, (Peter), g o o d / I'm happy to see you again.
g) Teodora: Of course, I'd be happy to explain.
11 Thank you so much for coming. I really appreciate /
Perhaps we could have lunch together?
appreciate it.
□ h) Leon: Hi, Teodora. Nice to meet you.
12 Can I have / take your coat?
I i) Leon: Really? That's a very important field for us.
13 Did you find us / here okay?
I'd like to find out more about w hat you do.
14 Water? With gas or w ithout gas? / Still or sparkling?
Notice in this dialogue h o w the person doing the
17.2 Tick ( / ) the responses that are both possible and
introductions (You) gives som e personal inform ation in
appropriate in a business context. Cross (X) the ones
line c) to help the conversation to continue.
that are not. More than one may be correct.
1 Allow me to introduce Petra Reinhart. 1 7 .4 M ake phrases by m atching w ord s from the first
a) Pleased to meet you. □ column w ith w ord s from the second.
b) How are you? Q ] 1 W ow, that's —\ kidding, right? ('joking' in BrE)
c) How do you do? 2 You're change.
2 Hi! How's it going? 3 How be delighted!
a) Nice to meet you. Q 4 Poor fantastic!
b) Fine, fine. And you? □ 5 You must news! Congratulations!
c) Actually, I'm having one or two personal problems at 6 Yes, of done!
the moment. 7 W hat a you.
3 Did you arrive last night? 8 That makes a aw ful. I'm so sorry.
a) Yes, of course. □ 9 Well course. Sure.
b) Yes, that's right. □ 10 That's great nightmare!
c) Yes, certainly. |__
17.5 Look at ho w B sh o w s interest in this dialogue:
4 Could you bring me a glass of w ater?
a) Yes, of course. I [ A: M ary w en t into hospital again.
b) Yes, that's right. □ B: Did sh e? Poor her. Which hospital?
c) Yes, certainly. □ B replies in three stages. First with an 'echo question', then
5 Would you mind opening the w indow ? with a personal response, and finally with a follow-up
a) Yes, of course question to keep the conversation going.
b) Yes, I mind.
Respond to each piece of new s below in the sam e w ay.
c) No, not at all.
First use a phrase from Box A below , then Box B, and
6 Do you mind if I open the window ?
finally Box C.
a) Please do.
1 I'm going to France next w eek for a holiday.
b) I do. O
c) I'd rather you didn't, actually. Q
2 Hey, guess w hat. I got that job I wanted.
7 Wonderful food!
a) Yes, I think so. Q
b) Yes, certainly. □ 3 Apparently, hundreds of people were made homeless
c) Yes, fantastic. when the Danube flooded.
74
17 SOCIAL ENGLISH AND CULTURAL AW ARENESS
Exercises 17.2, 3, 5, 6 and 8 can be read aloud with a c) Now you are in the bar.
partner. Practise them, taking the other role when you First, each of you tell a short story about som ething
finish. Think about intonation: sound friendly and interesting / funny that happened to you recently.
interested. The others show interest.
W ork in pairs. Then continue the conversation by talking for a short
a) You meet a colleague during the coffee break at an time about som e of the fo llow ing topics:
international conference. You have not seen each other - interests / sports / hom e
for four years. - current affairs and the econom y
* Greet each other and make small talk. - business travel
b) Find another pair. One person in each pair knows the - cultural differences
other (decide who). d) Now it is the end of the evening.
Make introductions. Prepare to g o and then leave the bar together.
Make more small talk. • Say goodbye.
& Arrange for all of you to meet in the bar this
evening.
75
Style - clarity and emphasis
o f my ideas.
V ersion 1 b e g in s slow ly. T h e w riter g e ts to the p o in t in
Here are som e other exam p les o f how to sim p lify language:
the seco n d p a ra g ra p h b u t there are no clear, d irect
You have the p o ssibility to ... * 4 You can ...
q u estio n s. T h e re q u ests for in fo rm a tio n are listed
T here is a chan ce that it w ill ... 4 It m i g h t ...
to g eth er in o n e sen te n ce and do n o t stan d out. th e close
It w ill be n ecessary f o r us to ... - W e n eed to ...
is friend ly, b u t in this c o n te x t a stan d ard p h rase is
the price o f com m od ities 4 co m m o d ity prices
p e rh ap s a little o ld -fa sh io n e d .
a docu m en t that sh ow s you have in su ran ce f o r sports that you
• V ersio n 2 b e g in s d irectly by sta tin g th e p u rp o se o f the
practise in the w in ter ^ a w in ter sports in su ran ce docu m en t
e m ail (to ask fo r in fo rm atio n ). T h e e x p la n a tio n is b rie f
T here is a strong trend to clarity and sim p licity in business b u t a little m o re c o m p le te th a n V ersion 1. T h e qu estio n s,
com m u nication. Sim p ler con stru ctio n s and sho rter sen tences w ith an e x p la n a tio n in clu d e d w h ere need ed , are
are easier to un derstand and hav e m ore im pact. Busin ess n u m b e re d . E ach starts a n ew lin e. T h is m ak e s a n sw e rin g
people value d irectness, and com p lex langu age can sound easy. T h e clo se g iv es a sen se of u rg e n cy w ith o u t b e in g
ind irect or w orse (perhaps you are trying to hid e som ething). ru de.
H ow ever, co m p lex fo rm al la n g u a g e is n o t n e ce ssa rily
'w ro n g '. In so m e co n texts (eg legal d o cu m e n ts, form al
Emphasis
rep orts) it m ay a ctu ally b e v alu ed and e x p ected . You T h e re are m a n y in d iv id u a l w o rd s th at can be u sed b efo re
alw ay s h av e to b e a r in m ind the co m p a n y cu ltu re, the ad je ctiv e s, ad v erb s, n o u n s and v erb s to in te n s ify the
e xp ectatio n s o f the a u d ien ce, etc. m ean in g . Try re a d in g alo u d the fo llo w in g p resen tatio n
e x tra c t tw o w ay s: first w ith o u t an d th e n w ith the w o rd s in
Clarity in emails and letters bo ld . B o th w ay s m ak e sen se , b u t the w o rd s in bo ld giv e
R ead the d ifferen t v e rsio n s o f the sam e em ail and then em p h asis.
Study the p o in ts below . O u r business is g o in g extrem ely well, bm it cou ld be
V ersion 1 go in g even better. T h e whole C h in ese m ark et is o p e n in g
up , an d I ’m ab so lu tely su re th a t th e re a re many
I To- I o p p o rtu n ities fo r us in th at p art o f the world. It's such a
Send Subject: hu ge m arket. W e really c a n ’t p re te n d th a t we are a global
I have seen your advertisement for office sp ace in the Daily com pany unless we significantly raise o u r p ro file in Sou th
a
Journal. I could be interested in renting one or two small rooms. E ast Asia.
I would like to know what the rooms are like, the annual cost, the B e carefu l: if you use too m u ch o f this k in d o f la n g u a g e it
transport links in the area, and any other information that would be
so u n d s lik e you are e x a g g e ra tin g and b e in g in sin cere.
relevant such as parking spaces for visitors.
If the information is right for my needs, I would like to inspect the
property,
I look forward to hearing from you soon.
STY LE - CLARITY AND EMPHASIS
a o d Cia$ o* * (
S u ffo ft
^ a f A P A - t i^ p o i*-t£
Ia w ritiA ^ , use AUMberiA^
o r bwllet poiAt#.
F W i- t io A
The be^i AAi a^ a Ad eAd CArry
More eMphAjSis: th is Applies
t o a pArA/jrAph o f t e x t , a a
eMAil, o r a whole preseA tA tioA
//
Style - clarity and emphasis: Exercises
18.1 Rew rite each sentence 1-6 using th e w ords in 4 Your line manager will make an appropriate decision about
brackets below. The num ber in bold sh o w s the your bonus, in spite of the fact that the HR department
maximum w ords for the n ew sentence. has the responsibility for this on an official basis.
1 It will be necessary for us to request additional assistance, (decide, even though, officially responsible - 15)
(need, ask for, more help - 8)
We will need to ask for more help.________________________
2 You have the possibility to determine your own
preferences in relation to the colour, (can, choose - 6)
18.3 Read this extract from a report,
You______________________________________________________
3 These days the labour unions have a declining influence on
A lth o u g h w e h u v e n o t d e fin ite ly d e te rm in e d th e caur.cs
governmental operations, (less, government - 9)
for th e d e c lin e in sales v o lu m e for M a rc h w e k n o t; th at
These days the unions____________________________________
d u rin g th is p erio d c o n s tr u c tio n w ork o n th e stre e t lim ited
th e n u m b er o f cu sto m e rs w h o e n te re d th e sto re an d also th a t
4 My boss terminated Claudia's employment as a b eca u se o f s ta ff ch a n g e s in th e a d v ertisin g d e p a rtm e n t
consequence of her ineffective performance, p ro m o tio n effo rts w ere red u ced .
(fired, because of, poor - 9)
My boss_______________________________________
It w ould be clearer if it w a s broken dow n into shorter
sentences. Put in all the capital letters, com m as and full
5 Our expectations are that the price of commodities will go stops in the version below.
up in value, (expect, to rise - 6)
We
we h a v e n o t d e fin ite ly d e te rm in e d th e cau ses ft >r th e d< lin e
6 In view of the fact that their requirements are so specific, I in sales fo r M a rc h w e k n o w h o w e v e r th a t d u rin g th is period
suggest that w e verify all the details with exceptional care, c o n s tr u c tio n w ork o n th e stre e t lim ite d th e n u m b er o f
(because, needs, let's check, very carefully - 13) cu sto m e rs w h o e n te re d th e sto re in a d d itio n w e kn ow th at
p ro m o tio n effo rts w ere red u ced as a resu lt o f staff c h a n g e s in
th e a d v ertisin g d e p a rtm e n t
our cash flow, (know, use, improve - 14) In reply to your email of April 4, we are p leased to inform you
that perm ission is hereby granted to delay paym ent of your
invoice ref D970 until May 15.
However, we are sure that you will understand our
consid erable concern in this matter. Should yo , have any
2 The new regulations state that we have an obligation to further difficulties in the paym ent of an outstanding amount
stop using the PCs of the company for emails of a personal kindly ad vise us at an early date.
nature, (rules, say, must not, personal emails - 14)
78
18 STYLE - CLARITY AND EMPHASIS
18.5 Com pare versio ns 1, 2 and 3 of a paragraph from 18.6 Add the w ords in brackets at an appropriate place
a business report. Before you read statem ents a) and b) to give em phasis.
below , think carefully about the differences betw een really such
the versio ns (clarity? sim plicity? form ality?). 1 We A. can't afford to ignore A a good opportunity.
Version 1 (really, such)
2 I'm certain that w e're in a better position now.
B u sin ess activity started to get b etter in Q1 and we (absolutely, far)
exp ect the im p rov em en t to con tin ue. O ur forecasts show 3 It's cheaper to use an outside firm for the graphic design
that in Q 2 sales for the w hole com pany will go up - work.
perhaps to ab o u t € 1.2m . T h is is an increase o f 8% from (actually, much, all)
the sam e tim e last year. 4 There is no truth in w hat they are saying - their story is
lies.
Version 2 (absolutely, at all, whole, complete)
5 It's a risky project - I recommend that w e take care,
T h e up turn in business activity that began in dit first (highly, strongly, the greatest)
quarter should con tin ue. In fact, it m ight even 6 It's difficult to know w hether the advertising campaign is
accelerate. Sales fo recasts show that total sales from all going to work.
business units should rise to around € 1.2m in Q 2 .T h is (just so, actually)
is an 8% year-on -year increase - m u ch higher than the 7 I support the Board - they are doing an important job.
corresp on d ing figure for Q l . (fully, entire, extremely)
8 I hope we see a rise in sales at Christm as - more than
last year.
Version 3
(really, significant, even)
W hich statem ent b elo w do you agree w ith : a or b? W riting practice ________________________
There is no 'right' an sw er!
• Collect some documents that you or your colleagues
a) Version 1 is okay. Everything is simple, clear and easy to have written: business reports, academic w riting, work-
understand. Version 2 is the best - a little more related emails, etc. Study them. How could they be
complexity and formality is right for a business report. clearer and simpler?
Version 3 is too complicated. Non-native speakers might
» Choose one of the documents (written by you or
find it difficult to follow, and it lacks impact because it
someone else). Rewrite it, starting from scratch.
takes time to understand.
b) Version 1 is too conversational and fragmented for a
report (although it would be okay in an email summary). It
creates a bad image. Version 2 is better. But version 3 is
the best - it shows the high standards of formal writing
that international companies expect. If some non-native
speakers find it difficult, that is their problem - they should
improve their English.
79
Style - politeness and softening
80
STYLE - POLITENESS AND SOFTENING
Indirect sjueS-bioAS
I Aeed "to L aow ... > Could you t e ll m£ ...? lA'troduciA^ a p o lit e
re-fuSAl o r bAd a£wS
Ne^A-bive cjueS-tioA
I V» S o r r y b u t ...
CbecoMeS a Su^eS-bioAT
I'm A-frAid ... C & r E -)
I t w ould be b e t t e r t o .. . U A -fb rtu A A te ly, ...
v W o u td A 't i t be b e t t e r t o . . . ? A ctu A llyi ...
Pre.fe.Kt > P a s F CAA v C o uld,
H o w M l*ch do yo u W A A t t o SpCxd ?
w ill v would / M i^ ht
■
> How m uc K did you w A A t t o SpeAd ?
We could t r y t o ...
iliMple V C.OA-tiAUOUS
We would hAve t o ...
I hope you CAA . .. ■» I'm hoplA/^ you CAA ... T h A t Miijht be d if fic u lt .
pAS"b + C.OA"biAUOUS fe&*A
C^iveS "two levels o f diS-tAACiA^T T h ere seeMS t o b e / lt seeMS
t h A t t h e r e is A M iS u rd e rS tA A d i a.
I woAder i f I c a a ... * I w as woAderiA<j i f I could ...
I hope you w ill ... > I W AS hopiA^ you would ...
A S m a II / A S lig h t + AOUA
UsiA^ -bhe pASSive -to T h e re MAy be a S lig h t delAy
de-perSoAAlize aa issue
A b i t / S lig h t ly + A d je c tiv e
You pToM iSed us ... •> We w ere p ro M ise d ...
T h e p rice is S lig h tly higher
F irs t coAdi-tioAAl v ^ecoAd coAditioAAl thA A lA S t y 6 A r
IT t h e r e 's a chAAce t o . . . , I'll be v e r y ^ r A te fu l. ju ^ t
■> I f t h e r e w as a chAAce t o . . . , I'd be v e r y ^ r A t e f u l
C ould I j u s t lA t e r r u p t
f o r a MOMeAt ?
Y o u r p ro d u c ts A re expeASive.
■
> Y o u r p ro d u c ts A r e A 't cheAp.
81
Style - politeness and softening: Exercises
19.1 Make the sentences b elo w more polite or 'soft*. 19.2 The first sentence b elo w is too definite - or just
Use the w ords in brackets. w rong. So the speaker reform ulates it in the second
1 We have a problem, (seems / slight) sentence. M ake a phrase using the letters in italics.
It seems we have a slight problem.___________________ 1 He doesn't seem very experienced, a e l m n
2 Can I interrupt? (could / just / for a moment) he hasn't been in the co m pany very long
2 The project is not going to finish on time. a A e l s t t
3 There'll be a delay, (m ig h t/ju st / small) _ , I don't think it will.
3 I'm meeting her on Tuesday. a e O h r r r t
. , Wednesday.
4 You said you can deliver by the end of March,
(understood / could) 4 I'm not working for them again. a a o h ' s s T t t y
. , not unless they pay me more.
5 Our competitors are expensive. (I'm afraid / not very) 19.3 Read the dialogue below .
A: I think you have the old price list. The prices quoted there
6 It would be better to ship to Rotterdam, are not current.
(wouldn't / Rotterdam?) B: But your sales consultant gave this list to me just last
m onth1.
7 There are three things I w ant to discuss, A: We've had some big increases in our costs recently. Raw
(one or two / wanted) materials are becoming a lot more expensive. We had to
raise all our prices by 4 % from the beginning of this
8 I assume that the paperwork is okay, (am) m onth2.
B: I see. Is there any w ay to avoid the increase?
A: Well, you could switch to another product with a lower
9 We're unhappy with the quality of this repair.
performance3. If you do that, you'll save money4.
(I'm sorry / not very)
B: No, I don't w ant to do that. W hat about if w e increased
our order?
10 We expected a more flexible response, A : I see w hat you're saying. But that's going to be difficult5.
(hoping for / slightly) You already have a very generous quantity discount.
B: But is it possible?
11 Please show me round your factory. A: How many more units are you thinking of6?
(I / grateful for the chance / have a look round) B: Perhaps another 500 units a month.
A: I'm sorry, but an increase of that size will not be enough
12 Please show me your designs for next season, to give you a bigger discount7.
(was wondering / 1 could / a quick look at)
The small num bers come at the end of a sentence that
is going to be changed. M ake a script by w ritin g a n ew
13 You don't understand how important this is version on a separate piece of paper:
(With respect / don't seem)
1: change an active to a passive, leaving out who does the
action
14 You must give us more time. 2: add the word unfortunately
(We / appreciate it / if / could / a little more)
3: add the word slightly
4: change a first conditional (If + present) to a second
15 I can speak to my boss about it, but I don't promise conditionals (If + past)
anything, (suppose / could / but / not promising)
5: change a negative-sounding adjective to n ot + the
opposite
16 Their business is going very badly, 6: change a present continuous to a past continuous
(apparently / not / well)
7: change will to would
17 There are some technical problems to sort out. Practise reading aloud the n ew version. If possible,
(far / 1 know / just a couple of) w ork w ith another person and change roles at the end.
82
19 STYLE - POLITENESS AND SOFTENING
1 9 .4 Read this em ail. It is saying 'no' to a request for a 1 9 .5 First read the email below . It is a refusal to a
refund for an u n w an ted product. request to speak at a conference.
L i> y I .
Send Subject: Send Subject:
I am writing in relation 10 your request for a refund for the shoes I am sorry but I am unable to a c c e p t your invitation to sp e ak
that you ordered from our website. Thank you for returning the at the annual co n fe re n c e of the National A sso ciatio n of Sm all
shoes, which we received th<s morning. B u s in e s se s (N A S B ). I am going to be very busy during that
period and cannot clear the time in my sch e d u le.
Unfortunately, we are unable to send you a refund. We examined
the shoes and found that they had been used outside. This In any c a s e , thank you for your invitation and I w ish you
1means that we cannor resef: the item to other customers. We will every s u c c e s s in the organization of your co nference.
return Itie snoes to you, and you should receive them within ten
working days.
The email below is a more positive and friendly
We trust that you will understand our position and we regret any altern ative. Put the sentences into the correct order,
inconvenience caused.
and into paragraphs.
Paragraph 1: c
The email b elo w is a more positive and friendly
Paragraph 2: ~c ’
alternative. First m ake phrases by m atching an item
Paragraph 3 □ □ □
from the left colum n w ith one from the right. Then use
a) Unfortunately, my time is already fully committed over that
the phrases to com plete the em ail.
period, and so I must suggest that you get someone else.
consider the sale —- condi ti ons
b) Thank you for your email inviting me to speak at the
in the stated
annual conference of the National Association of Small
suitable for ' '" f i n a l
Businesses (NASB).
terms and days
c) As you know, presenting a paper to an audience of such
with the relevant circumstances
experienced professionals requires a good deal of thought
this is clearly to do
and planning.
w e are willing resale
within ten working section highlighted d) Anyway, thank you again for the invitation, and if I can
help you further in your efforts to get a speaker, please get
To... back to me.
Send Subject:
e) It is a great honour to be asked to speak at this event, as
You have a righ! to expect the best possible service from the w ork of NASB in promoting small businesses is well
ShoesTU, and _ .. as much known.
as we reasonably can to make things right. f) I'm sure the conference will be a great success.
With returned items, we generally give refunds. Of course, g) Martha is an outstanding speaker and an expert on
I all returned items must be in new condition and financing issues for small businesses.
. . You will notice h) May I recommend Martha Ballard, a colleague of mine?
that-3________________________________ . in the i) Good luck with everything!
•4
1section of our online
order form I attach a copy of this form 1 9 .6 Look back at the second (more friendly) em ail in
exercise 19.5. Tick (S ) the statem ents b elo w th at are
We examined the shoes you returned to us and found that they true about this email.
had been used outside ° _____________________________________ 1 the writer shows he / she values the request
we must therefore 7______________________________________________ _ 2 the writer gives a reason for refusing the request □
We are returning the shoes to you, and you should receive them
3 the writer uses no negative words □
4 the writer makes a helpful suggestion
We look forward to serving you.
5 the writer ends formally as a sign of respect
Brainstorm tw o typical situations where one person has to f Practise reading the script w ith a colleague / friend.
be polite to someone else. You can have a mixture of ■ If you are working in a group, practise reading other
business and non-business situations. people's scripts.
Write the script for each conversation.
83
Developing an argument - linking words 1
H g lo b a l econ om y?
Although i n f r a s tr u c t u r e
V ie tn a m
is poor
g iv e s us a
and th e r e is a
c lu e . in tro d u ce s in fo rm a tio n th at is less im p o rtan t, or
su rp risin g . It can co m e at the b e g in n in g o r in the m id dle:
s h o rta g e of skilled w o rk e rs, In tel h a s o p e n e d a p lan t in Intel has op en ed a p lan t in H o C hi M in h City, a lth o u g h
Intel c o n tin u e s to p ro d u c e c h ip s at its fa b ric a tio n • B u t m ak e s a sim p le co n tra st w ith in one sen te n ce and
p la n ts in Irelan d and th e US, but t h e s e c h ip s a re then co m e s in th e m id d le . T h e re is a tren d to r w rite rs to use
e x p o rte d to V ie tn am for th e la b o u r-in te n s iv e w ork of bu t at the b e g in n in g o f a sen te n ce to c o n tra st w ith the
I" te s t an d a s se m b ly . F ro m V ie tn am , th e y a re re -e x p o rte d p rev io u s sen ten ce, b u t so m e p eo p le th in k th is is not
to o th e r c o u n tr ie s in S o u th e a s t A sia. As regards th e g oo d style.
d o m e s tic m a rk e t in V ie tn am itse lf, c u rr e n t s a le s a re • H ow ev er co m es at the b e g in n in g o f a sen te n ce and is
low - m o s t p e o p le c a n o n ly afford a c h e a p d e s k to p PC fo llo w ed by a co m m a. It m a k e s a c o n tra st w ith the
u sin g u n b ran d ed co m p o n e n ts. However, w ith a p re v io u s sen ten ce, o r e v en the p re v io u s p arag rap h .
p o p u latio n of o v e r 8 0 m illio n and in fo rm a tio n -h u n g ry O th e r lin k in g w o rd s and p h ra se s in the text are w ritten in
y o u th s filling the In te rn e t c a fe s , th e re is a lot of bold . S tu d y th em now.
p o te n tia l.
• S e v e ral lin k in g w o rd s in the te x t sta rt a sen te n ce and are
In addition, In te l g a in s b y th e fa c t th a t its
fo llo w ed im m e d ia tely by a com m a. H o w m an y like this
o u ts o u rc in g o p e ra tio n s a re m o re d iv e rsifie d . If th e re
can yo u find ?
2ll a re a n y p ro b le m s a t its o th e r p la n ts in S h an g h ai,
• L o o k at the p h rase as a resu lt o n lin e 23. T h e w riter cou ld
M a lay sia o r th e P h ilip p in e s , it c a n sim p ly sw itc h
also h av e used it at the start o f a sen te n ce fo llo w ed b y a
p r o d u c tio n . T h ere is a ls o a c e r t a in d eg ree of
com m a:
c o m p e titio n b e tw e e n th e d iffe re n t fa c ilitie s , and as a
T here is also a certain d eg ree o f com p etition betw een the
result th e re is d ow nw ard p r e s s u re on w ag es a t th e m
differen t fa cilities . A s a r e s u lt, there is d o w n w ard p ressu re on
all. Even so, it w ould b e a m is ta k e to a s s u m e th a t th e s e
w ages at them all.
w o rk e rs s e e th e m s e lv e s a s e x p lo ite d . In most cases,
w o rk e rs in d ev e lo p in g c o u n tr ie s w an t to w ork for B u t the w rite r d ecid ed th at in this p a rtic u la r case it w as
m u ltin a tio n a ls, and th e p ay and c o n d itio n s a re b e tte r b e tte r to p u t an d as a resu lt in the m id d le o f a lo n g er
th an at lo ca l c o m p a n ie s. sen ten ce. P erh ap s it seem ed less frag m en ted .
In g e n eral, lin k in g w o rd s sh o w a c le a r co n n e ctio n b e tw e e n
clau ses, se n te n ce s and p arag rap h s. T h e y sh o w the stru ctu re
L o o k b a c k at the sen ten ce b e g in n in g A lth o u g h (lin e 3). an d lo g ic o f an arg u m en t. U sin g th em e ffe ctiv ely is a
T h ere are actu ally three sep a ra te clau ses: p o w erfu l co m m u n ica tio n tool.
In frastru ctu re is p o or (in V ietnam ).
There is a sh o rta g e o f sk illed w orkers.
Types of linking words
Intel has open ed a p lan t in H o C hi M in h City. T h e m in d m ap o p p o site sh o w s h o w bu t, a lth ou g h and
h o w ev er re p rese n t th re e c a teg o ries o f lin k in g w o rd s. In
• T h e w riter h as u sed the lin k in g w o rd s an d and a lthou gh
a d v an ced g ra m m a r b o o k s they are g iv e n sep a ra te n am es
to jo in th ese clau ses to g e th e r and p ro d u ce a m ore
('c o o rd in a tin g co n ju n ctio n s', 's u b o rd in a tin g co n ju n ctio n s'
co m p lex sen ten ce. W ith the lin k in g w o rd s, the text is
and 'd is c o u rs e m a rk e rs'). To av oid these c o m p lica te d term s
easier to read. T h e re latio n sh ip b e tw e e n the id eas is
m an y b o o k s ju s t u se 'lin k in g w o rd s and p h ra se s' for
clearer.
ev ery th in g .
• A lso, w ith th e lin k in g w o rd s th e sty le ch an g es. It
N o te: a 'c la u s e ' is a g ra m m a tic a l u n it th at h as a su b je ct and
b eco m es m ore fo rm al, ty p ical o f a p re se n tatio n , a
a v erb (and o ften an o b je ct as w e ll) and fo rm s a sim p le
m ee tin g o r a rep ort. In an e v ery d ay co n v ersa tio n o r an
sen te n ce on its ow n.
e m ail it w o u ld b e n o rm al to use m u ch sh o rte r clau ses.
84
DEVELOPING AN ARGUM ENT - LINKING WORDS
A d d iA ^ A A o - t t a r poiA-t
A lso
A s well as th A t
AAd, but AAd yet
Ia A d d i t i o A
(b u t expresses e^uAl,
besides coAtrAStiA^ ideAS; ye t expresses
Fu rth e rm o re C slie h tly fo rm a I ~>
SoMethiA^ More surprisiA ^’)
M o reo ve r CforM Al
So
E*uphA £i2-iA ^ A C o r-trA £± .
However
Evee So
Ia S p ite o-f th is
( S lig h t ly forM Al")
N e v e rth e le s s
( S lig h t ly forMAl")
& a Ia a c i a ^ wi'fch AA e^ U A l,
co A -trA ^ 'tii^ idfeA
Ia coAtrASt
Oa the o th e r hAAd
Q i v i A ^ A re.£wt-t
T h e re fo re
A s a re su lt
F o r t h is reASDA
&ecAuse o f th is
CoASecjueAtly CforMAl")
C |iv ir ^ A CAW^e.
&ecAuse o f
A s a re su lt o f
Owl A<j t o
Due t o d e v e lo p in g an a rg u m e n t I
L i^ - t ii^ poiA-t£
F i r s t / F ir s t ly
F i r s t o f All
T o be^iA W ith
- S e C o A d ly
TheA
N ext
FiAAlly
T a IK I a ^ ije. A a r A lly
Ia eeAerAl
O a the whole
& ro A dly SpeAkiA^
IA Most / MAAy c a s e s
T o a ijre A t ex te x t
Qi v i A ^ e x A M p le s
w hereA S ( S l i g h t l y fo rm A D ,
F o r ex Ample while ( s l i g h t l y fo rM A O
F o r ixStAAce
such AS d e s p ite , iA S p ite o f
3 Apple needs to constantly update its product line, in also because o f hut so
order to stay ahead of other consumer electronics
companies like Sony and Samsung. Yes, people say there's been a lot of damage to US industries
(so that / so as to / ow ing to) because of China. 1 , if you look at the
4 Apple needs to constantly update its product line, in figures carefully, the situation isn't so bad. Jobs have been lost
order that it can stay ahead of other consumer electronics in manufacturing, that's true, but new jobs have been created
companies like Sony and Samsung. in the service sector. 2 . , the US trade figures
(so that / so as to / ow ing to) w ith East Asia aren't that bad. W hen you look at the whole
region, the deficit has stayed more or less the same for several
5 Although the core rate of inflation rose only 0 .2 % in
years. Surprised? I'll tell you the reason - it's
January, analysts are concerned about higher energy costs.
globalization. Yes, China has been
(In spite of the fact that / In spite of / So that)
growing, but a lot of that growth is because it assembles
6 Despite the low rise in the core rate of inflation in
goods that were previously made in other Asian countries.
January, analysts are concerned about higher energy costs.
4. , at the end of the day, the US ii importing
(In spite o f the fact that / In spite o f / So that)
the same am ount of stuff from Asia, but now it's all made in
7 Nokia is strong in Europe, w h ereas Motorola is strong in China.
the US.
(as / though / while) 2 0 .6 Com pare the version of the sam e text below . It is
8 Nokia is strong in Europe, although Motorola is giving it more form al, and typical of a w ritten report. Complete
very strong competition. it w ith the w ords in the box.
(as / though / while)
consequently due to furthermore however
20.3 Underline the correct words in italics to make
grammar rules. The answ ers to exercise 20.2 will help you. It is widely thought that there has been substantial damage
1 Because / Because o f is followed by a clause (subject + to specific US industries as a result of competition with
verb), while because / because o f is followed by a noun or China. : , if you look at the new service
noun phrase (no verb). jobs created as a result of trade with China, the actual net
2 In order to / In order that is followed by subject + verb, loss in American jobs is marginal. 2 _ , the
while in order to / in order that is followed immediately by US trade imbalance is not as bad as many commentators
the Infinitive form of a verb. claim. In fact, when we consider the East Asia region as a
3 Although / Despite is followed by a clause, while although whole, the deficit has remained basically the same around
/ despite is followed by a noun or noun phrase. 30% - for several years. What is the reason for this relatively
4 Whereas / Although introduces something surprising, while stable trade deficit? It is 3 increased
whereas / although just compares two facts of equal economic integration within the Asian market. Chinas
importance and emphasizes the difference between them.
86
20 DEVELOPING AN ARGUM ENT - LINKING WORDS 1
should reorganize the department. can only come from company profits and em ployees’
s a la rie s .3 , companies will have
2 open source software like
Linux is making a big impact in the world of IT. less money to invest in their businesses and the purchasing
, it is unlikely to threaten power of consumers will fall. This will create a vicious cycle
W indows' dominance in the mass market. 4 _________ it m eans lower economic growth
3 ________________________ , she has quite a lot of and therefore, in turn, less profits and taxes.
experience in the sales area. What options do governments have?
she worked as a rep in France for two years, going to all b more women and long-term
the trade fairs and speaking directly with customers. unemployed people take jobs, it will not be enough to solve
4 _____________________________ , quality is not just a technical the problem. It seem s that there are three answers. First of
and production issue. _ it is also all, workers will have to retire later. Next, private pension
a design issue: products have to appeal to a customer's schem es will have to become far more widespread. And
aesthetic sense. , economies will surely depend
much more on immigration to sustain economic growth. It is
2 0 .8 Look at the box in exercise 20.7 and find:
true that increased immigration has caused social problems
1 two phrases that mean the same as 'Actually':
in many countries. But, 7
immigrants have been prepared to do work that natives
won’t do, working for long hours and low pay. And
2 two phrases that mean the same as 'In general':
immigrants are young, and young people are what Europe
increasingly needs. S o ,8 the
problems, their numbers are likely to grow.
Choose o ne of these texts: H o w do multinational Read the text again several times, then w rite the first
com panies operate in today's global econom y? (page 84) sentence at the top of a separate piece of paper.
or In com ing decades, a key challenge for countries in the Write another text beginning with the same first sentence.
euro zone is going to b e its aging population, (page 87). Use your ow n ideas. Feel free to refer to the mind map as
you write.
87
Developing an argument - linking words 2
Developing an argument In the d ialo g u e there are lin k in g p h ra se s that allo w the
R ead the d ialo g u e and then stu d y the b u lle t p o in ts below . sp e a k e r to m ak e a p erso n al com m en t. E x a m p le s are: it
seem s that, obviou sly, to be hon est, iron ically and apparently.
Fin d these w ord s in the text and ch e ck their use in the
A: Have you seen this article about 'peak oil'? It seems m ind m ap.
that most of the oil in the ground has already been T h e re are also lin k in g p h ra se s in the d ia lo g u e th at allow
discovered, and production in the Middle East is slowly the sp e a k e r to m ak e tw o related p o in ts. O n e ex am p le is:
declining. It's quite worrying if you stop to think about f o r on e thing ... a n d f o r an other. C an you find tw o m ore
5 1( '*• e xam p les?
B: Obviously you're a pessimist. What about the ability of • A n o th e r im p o rta n t tech n iq u e for d ev e lo p in g an
markets to come up with a solution? Look, for one a rg u m en t is to first co n ce d e a p o in t (y es and then
thing, as the price of oil goes up, all sorts of other d ism iss it ( ... bu t n ot in this case). O n e e x a m p le in the
energy sources will become economically viable. And d ialo g u e is: it's true that ... bu t .... C an you find one
for another, I'm sure that technology will help us - it m ore?
always has in the past. A related tech n iq u e is to first g e n eralize , and then
A: But it's different this time. To begin with, China and q u alify (lim it) y ou r g e n era liz a tio n . T h e re is o n e exam p le
India are growing so fast - just imagine the oil - can y o u fin d it?
consumption if they all had cars like in the west. And T h ere are also tw o e x a m p les o f stru ctu re s th at a
then there’s global warming - we can't just go on g ra m m a r b o o k w o u ld call 'c o n d itio n a ls', in o th e r w o rd s
releasing greenhouse gases like we do now. We must sa y in g w h at w ill h a p p en in ce rta in circu m stan ce s. C an
do something about it, otherw ise it'll be a disaster. you fin d them ?
B: As far as China and India are concerned, there's In relatio n to form ality, all the la n g u a g e listed in the
plenty of new technology to replace oil: wind, solar, m ind m ap u n d e r 'M a k in g a p e rso n a l co m m e n t' is
tides, bio-fuels, natural gas, Canadian oil sands, fuel cell in fo rm a l (co n v e rsa tio n an d e m a ils) and e v ery th in g else
technology, not to mention nuclear. When the cost of is slig h tly m o re fo rm al (carefu l sp e ech , m eetin g s,
energy rises enough, they'll all get developed. And it's p rese n tatio n s, rep orts, etc).
true that there may be a problem with global
warming, but what can we do as individuals? The
Contradictory points
temperature of the world has been changing since time A n y sp e a k e r or w riter w ho is d ev e lo p in g an a rg u m en t has
began - think of the ice ages. to sh o w th at they h a v e co n sid ere d sev eral p o in is o f view,
A: To be honest, I don't think you're aware of how in clu d in g those th at go a g a in st th eir o w n arg u m en t. In real
serious things are. Of course there's always been life th in g s are n o t b la ck and w h ite and th ere are e xcep tio n s
climate change, but even so all scientists agree that to any g en eral ru le. B y d ealin g w ith th ese con trad icto ry
this time it's because of human activity, and the p o in ts y o u d em o n stra te m o re co m p lex th ou gh t, and the
situation is getting worse. Unless we do something, listen er is m ore likely to be im p re sse d and p e rsu ad e d . In a
w e just w on't be able to have the same lifestyle that b u sin e ss rep o rt or u n iv e rsity p ap er this style is e xp ected .
we do now. And there are lots of things that individuals In the d ialo g u e abo v e you saw som e e x a m p les o f this kind
can do. Firstly, we can all reduce our energy o f lan g u ag e: the p h rases fo r 'C o n ce d in g a p o in t b u t then
consumption by driving smaller cars and flying less, and d ism issin g it' and 'G e n e ra liz in g and then q u a lify in g '. T h ere
secondly there are ways to conserve energy in the is an ad d itio n al b ra n ch o f the m in d m ap th at lists eig h t
home - better insulation, that kind of thing. co m m o n lexical stru ctu re s fo r d iscu ssin g co n trad icto ry
B: Ironically, you are the one who flies all over the world points. T h ey are all fixed ex p re ssio n s: use them e x actly as
on -=xotic holidays. But as regards energy conservation, th ey are here.
yes I do agree with you. In general we should try to
consume less energy, although I still think it's higher
prices that will make people do that, not their green
conscience.
A: By the way, on the subject of 'green conscience',
have you heard that there's a new vegetarian restaurant
near the university? Apparently it's quite good.
8X
21 DEVELOPING AN ARGUM ENT - LINKING WORDS 2
) M a k in g t w o r e la t e d p o in t #
F ir s tly ... aad Secoadly ...
To bedin with ... aad thea ...
VJ For oae thifvj ...
/I aad fo r aaother ...
la the f ir s t place ...
aad thea oa top o f th a t ...
C o n c e d in g a p o ia t , b u t
b E V E L O P lN Q A N A R Q U M F N T 2 t h e a d i£ M i£ £ ia <3 i t
It 's tru e t h a t ... but ...
O f course ... but evea So ...
C e rta ia ly ... however ...
AdM ittedly ... but nevertheless ... CfonuaO
g e n e r a liz in g a a d t h e a ^ u a li-fy in ^
la general ... although ...
O a the whole ... but ...
la Most cases ... however ...
A n n o u n cin g a ch an g e o-f
S u b je c t ia a d v a a c e
A s regards ...
Regardia^ ...
A s f a r as ... is coaceraed
la relation to Csli^htly foriual')
With refereace to ... CfoTMaO
C h a a ^ ia ^ t h e t o p ic
., it 'll probably Meaa th a t
We Must ..., otherwise ... &y the way,
Ualess ..., i t will... Incidentally, Csli^htly foratal')
Talking about ... /
O a the Subject o f ... S
89
© Developing an argument - linking words 2: Exercises
c) Yes, all our jobs are going to be at risk if the merger goes 7 , if they w ant a tailor-made
through. Incidentally, did you manage to get any tickets version, they'll have to give us detailed specifications. I'm
for the game on Saturday? sure they know that.
d) In general her decisions about marketing strategy are very 8 Cadbury Schweppes announced a cut in its expected
good, although on this occasion I think she has overlooked earnings on M o n d a y._____________________________, the whole
the importance of the Internet. food and beverages sector saw lower share prices
following the announcement.
e) O f course Silvia has a lot of experience in this field, but
even so I think the project is too big for just one person. 2 1 .3 Com plete the text w ith the structures in italics.
Note that they all need tw o gaps.
Now match each phrase in italics above to the one
below w ith the closest m eaning. W rite the sentence As far as ... is concerned ... Firstly ... Secondly .
letter in the box. Unless ... it w ill... In most cases ... b u t ...
It is true th a t.. how ever...
1 By the way, ... □
2 As regards ... □
3 Admittedly ... , but nevertheless ... □ Spain represents only 2% of
4 On the whole ... , but ... □ global GDP, it has oroduced
5 In the first place ... , and then ontop of that ... □ some multinationals that are major players on the global
stage. What are the reasons for this su c c e ss?
Say sentences a)-e) aloud w ith both alternatives. 2 ___________ ____________ , they have focused on what they
do best: large-scale operations. Exam ples include
21.2 Fill in each gap w ith a w ord from the box. Several
Telefonica (telecommunications networks), Repsol and
answ ers may be possible, but one solution uses all the
Iberdrola (energy) and Ferrovia! (infrastructure).
w ords in an appropriate w ay.
, they have made significant
Actually Amazingly Presumably Clearly moves into Latin Am erica, taking advantage of the
Frankly Ironically Predictably Unfortunately common language and culture. Banks like Banco
Santander and BBVA have been very active in these
1 A: Can you help us with this email? It's written in Spanish.
B: A ctually, |'m Brazilian, so I speak markets. 3_____________________________ these su c c e ss stories
Portuguese not Spanish. But I'm sure I can help you. have been large, publicly listed companies,
2 The trend in IT is for software and data to migrate from some family-owned firms have
the individual PC to the network. also done well. Exam ples include Freixenet, the leading
this is quite like the situation with mainframe computers in exporter of sparkling wines to the US, and Inditex, the
the seventies and eighties. owner of the Zara clothing brand.
3 . , w e can get the information quite the future
easily from Google. But I haven't actually looked for it yet. ___________ , competition is going to get
4 _____________________________, the original 19th-century London tougher. By concentrating on Latin Am erica, Spanish
Bridge is now in the Arizona Desert! It was sold in 1962 to com panies have already picked the tow-hanging fruit’.
an American oil millionaire, dismantled, and then There are some major challenges ahead, especially in
reassembled brick by brick. It is now a major tourist terms of top management. 5 _ these
attraction. com panies develop more senior executives with
5 Hello? Is that Melanie Bryant? Yes, it's about your order. international experience, be
w e're having some problems difficult to expand into the rest of the world.
processing your payment. Can you check at your end to
make sure it's been authorized?
90
21 DEVELOPING AN ARGUM ENT - LINKING WORDS 2
21.4 R eview som e conditional structures. Fill in the 3 Make the sentence about the past again. This time the
gaps w ith these w ord s: in case, otherw ise, p ro vid e d speaker is expressing relief - they did recruit Spanish
that, unless, w hether. speaking managers and because of this they w ere able to
1 w e have managers with open the office.
international experience, w e w on't be able to compete in If w e ________________________________ any Spanish-speaking
the global marketplace. managers, w e ________________________________ . able to open an
2 w e have managers with office in M exico.
international experience, w e will be able to compete in the Remember that all modal verbs are possible in
global marketplace. conditionals. For example, may / m ight could be used in
3 We need managers with international experience, 1 above to make the result less certain than would.
_ . w e w on't be able to compete
in the global marketplace. 2 1 .7 Choose a phrase from the box to com plete each
sentence below . Several an sw ers are possible each
4 Our ability to compete in the global marketplace depends
tim e, but one solution uses all the w o rd s in an
on or not w e have managers
appropriate w ay.
with international experience.
5 We need to start recruiting some senior managers who -On the orrehand ... but on the-other...
speak Spanish, . _ one day we A t firs t... but in the end ...
w ant to enter the Latin Am erican market. A t the time ... but in retrospect...
On p a p e r... but in reality...
21.5 A n sw e r th ese tw o questions, choosing from the On the surface ... but deep down ...
w ords and phrases in italics in exercise 21.4: Under normal circumstances ... but in the current situation
In the short term ... but in the long term ...
1 Which one means the same as all of these: on condition
that / as long as / if and only if? On the one hand the quality is good,
2 Which one is used in almost the same w ay as if, but (i) it is but on the other the price is quite high,
more common when there is a choice between two she w as quiet and shy,
possibilities, (ii) it is more common when the word or is she knew w hat she wanted and
also used and (iii) it is used before an infinitive (so NOT I w as determined to get it.
can't decide i f to g o to the con feren ce)?
_ . Hong Kong Disneyland looks
like it should be a great success,
21.6 Look at the sentence in the box, and in particular
it will be a challenge to adapt the Disney form ula to such
the form of the w o rd s in italics.
a different culture.
If w e recruit som e Spanish-speaking m anagers, w e will be able ______________________________I found my M BA course very
to operate in Latin A m erica. difficult, _______________________________ I got used to the
workload and started to really enjoy it.
N ow fo llo w th ese instructions: w e need to establish our
1 Make the sentence in the box less certain - it is just a presence in the m arket and increase the visibility of the
hypothetical idea in the mind of the speaker. brand, .. „ .. profitability will of
If w e ________________________________ som e Spanish-speaking course be the number one objective.
managers, w e able to open an I would agree with you,
office in M exico. _____________________ .. I just don't think w e can afford
2 Make the sentence in the box about the past. The speaker to take any risks. Let's put your suggestion on hold and
is expressing regret because they didn't recruit any discuss it again in six months.
Spanish-speaking managers. . it w as difficult to leave my job
If we _ . som e Spanish-speaking at 28 and invest time and money in an MBA,
managers, w e _ able to open an ______________________________ . it was the best career move I
office in M exico. ever made.
Note: in the end (#4 above) means 'finally' or 'eventually',
while a t the en d refers to the last part of something.
Choose a topic for a short report. If you are a student, Write the report. Feel free to refer to the mind map.
choose an academic topic related to your course. If you are
working, choose a typical report from real life. In either
case, think of something where the issues and arguments
are quite complex.
9)
Developing an argument - linking words 3
N to p ic . A s u c c e s s io n of s c a n d a ls
c o r p o r a tio n s like E n ron , W orld C om and T y c o c a u s e d
at m a jo r -
-
one w ord listed u n d e r E m phasizin g.
one p h rase listed u n d e r C on clu din g.
th e US C o n g re ss to p a s s th e S a rb a n e s -O x le y A ct in N otice the lin k in g p h rase after all on lin e 8. It m ean s 'w e
20011 - a m a jo r p ie c e o f an ti-frau d le g isla tio n . Some m u stn 't fo rg et th at'. It d o es N O T m e an 'fin a lly '/ 'a t
people argu e that a c o m b in a tio n of an ti-frau d and la s t'/ 'in the e n d '.
e q u a l o p p o rtu n itie s law s is en o u g h to e n s u re e th ic a l • N o tice the lin k in g w ord y et on lin e 43. It is the sam e as
p r a c tic e s , and up to a point, th e y m ay b e rig h t. After 'b u t d esp ite th is'. T h e re is m o re sen se o f su rp rise than
all. A m erican b u s in e s s d o e s s e e m c le a n e r and faire r s im p ly 'b u t'.
10 th e s e d ay s. B u t o n th e o th e r h an d , th e s e law s o n ly T h e re are fiv e o th er lin k in g stru ctu re s th at are n o t in
c o m e in to p lay a fte r a c r is is h a s o c c u r r e d , and a re bo ld b e ca u se th ey h a v e alre ad y b e e n m en tio n ed in
p red om in an tly c o n c e r n e d w ith a r e a s like fin a n cia l p re v io u s un its. Find :
re p o r tin g , c o n t r a c t s a n d d is c r im in a tio n . W hat - one fo r m a k in g a con trast.
com p an ies really n eed is a s e t of s ta n d a r d s and c o d e s - one fo r a d d in g a n o th e r p oint.
th a t d e s c r ib e w h at is e th ic a l an d u n e th ic a l in th e w ider - one fo r g iv in g an exam p le.
sen se of s o c ie ty an d th e e n v iro n m e n t, and th a t - one fo r say in g so m e th in g alre ad y kn ow n.
p re v e n t p ro b le m s from h a p p en in g . M o reo v er, th e s e - one fo r co n ce d in g a p oint, b u t then d ism issin g it.
s ta n d a r d s and c o d e s h a v e to b e co n sid erab ly m ore • S tu d y the O pin ion s s ectio n o f the m ind m ap . N otice h o w
e ffe ctiv e th an in th e p a s t. F o r e x a m p le, high -lev el y ou can v ary y ou r la n g u a g e (in stead o f a lw ay s w ritin g I
20' m a n a g e rs n e e d to tak e p e rs o n a l re s p o n s ib ility for thin k o r In m y opin ion ).
d e t e c tin g an d p r e v e n tin g m is c o n d u c t . L ikew ise,
w h is tle b lo w e rs low er d ow n in th e o rg a n iz a tio n w ho Focusing structures
re p o rt m is c o n d u c t m u st b e p ro te c te d . A t lin e 13 y o u can see the p h ra se W hat com p an ies really need
From a financial point o f view, h av in g a s tro n g is .... L o o k u n d e r F ocu sin g in the m in d m ap to find m ore
e th ic a l p o lic y c a n b e g o o d fo r b u s in e s s . C o n su m e rs e x a m p les o f this stru ctu re.
d islik e c o m p a n ie s th a t e x p lo it c h e a p la b o u r in p o o r
A t lin e 1 y o u can see a p h ra se b e g in n in g w ith a n eg ativ e
c o u n trie s o r h arm th e e n v iro n m e n t, an d ‘c o r p o r a te
freq u en cy ad v e rb : N ev er before h a s b u s i n e s s e t h i c s b e e n ....
s o c ia l r e s p o n s ib ility ’ h a s b e c o m e a key p a rt of b ran d
W h en y ou fo cu s on n ev er by p u ttin g it at the b e g in n in g you
im age. Of c o u r s e a c o m p a n y ’s s o c ia l au d it is still
in v e rt the n o rm a l su b je c t/ a u x ilia ry w o rd o rd er (B u s in e s s
30 relatively less im p o rta n t than its fin a n c ia l au d it. B u t it
e t h i c s h a s n ever before been ...) . S e e th e m in d m ap for oth er
is in a sen se a v ic to r y fo r e th ic a l c a m p a ig n e rs w hen,
p h rase s th at can be u sed in this way.
fo r ex a m p le, th e an n u al re p o rt of a c o m p a n y n e e d s to
list its c o n trib u tio n s to s o c ie ty in o rd e r to k e e p th e
Adverb + comparative adjective
s h a re h o ld e r s happ y.
L o ok at lin e 18 con sid erab ly m ore effectiv e an d lin e 30
T aking all th is in to c o n s id e ra tio n , I am
relatively less im portan t. W h y ad d the w o rd s 'c o n sid e ra b ly '
con vin ced th a t e th ic a l c o n s id e r a tio n s will h a v e a
grow ing im p o rta n c e in th e c o m p a n y of th e fu tu re. It is and 're la tiv e ly ' w h e n the sen te n ce is o k ay w ith o u i them ?
N e ^ A -tiv e -fre^ u e A C y
D EVELO PS AN O a
At
ad
ao t iM e
C o A d it io A
hAve I ...
w il l w e ...
ARGUMENT 3 O a Iv
O a N
oa
iA
rA re
SoM e re sp e cts
o c c a S io a s hAve
do I ..
we
Field o f ralavAAce
FroM a techA iCA l/EiaaacIaI /
coMMerciAl / A d M iA is trA tiv e /
ethicAl poiAt o f view
FAr / M u c h / CoASiderAbly / ^idA ificAA tly / TechAicAlly SpeAkiAd
^ ubstA A tiA lly (M o re e f f e c t iv e ') . FiAAACiAlly SpeAklA^
93
Developing an argument - linking words 3: Exercises
22.1 Put these phrases in order, from 1 (m ost careful (Be careful w ith the next three exam ples - a form of do
and m easured) to 4 (m ost certain). is also needed.)
a) I believe that ... 5 I will first give you the history of the project.
b) I firmly believe that ... Q What I will do first is give you the history o f the project
22.3 Fill in the m issing letters. as human growth hormone, DHEA, antioxidant vitamins,
glucosamine, Omega-3 and more.
1 ___ apoint, this is true.
2 From a technical poin t o f view, anti-aging drugs are going
2 _ _ a sense, this is true.
to be big business as the 'baby boomer' generation passes
3 _ _ a certain e t, this is true. through retirement.
4 _ _ a limited d _ee, this is true. 3 From a legal poin t o f view, having anti-aging drugs cheap
5 _ _ the b of my knowledge, this is true. and freely available is going to be very popular - retired
6 _ _ fa r Ik _, this is true. people make up a high proportion of the voting
population.
22.4 Rew rite the sentences using W h a t... is ... to focus
4 From a political poin t o f view, anti-aging drugs raise
on the topic. The first exam ple has been done for you.
important questions. For example, should patients first get
1 Companies need a set of standards. a DNA test to make sure that they will benefit? And who
What companies need is a set o f standards _______________
tells them if this test shows they have a high probability of
2 I'm talking about a completely new approach. dying within the next few years?
5 From an ethical point o f view, anti-aging drugs need
3 We w ant good quality at competitive prices. careful regulation so that they do not expose their
manufacturers to lawsuits by making false claims.
4 I would like to have a chance to speak to him.
22 DEVELOPING AN ARGUM ENT - LINKING WORDS 3
2 2 .7 Match an inform al phrase from Group A w ith a 22.11 Com plete the text using the linking w o rd s from
more form al phrase from Group B. the left-hand colum n in exercise 22.10. Think carefully
Group A about the logic of the argum ent.
1 it's a bit more expensive ~
the issue of blocking a c c e s s
2 it's more expensive - but not much more
3 it's far more expensive [H to certain Internet sites by governments, the topic of
'intellectual copyright’ is probably the key ethical issue for
Group B
the Internet age. Intellectual copyright refers to the
a) it is considerably more expensive
ownership of a creative work. If you pay for and download
b) it is som ewhat more expensive
c) it is slightly more expensive an mp3 music file for personal use, that is legal, but what
about if you then place it on your hard disk for peer-to-
22.8 Study the position of particularly and in particular peer sharing? In the first case , the m usicians get paid, in
in relation to a noun phrase: the second they don’t . 2 . , an
Business ethics is a ho t issue, particularly fair trade. author doesn't get paid if you photocopy their book, and a
Fair trade in particular has becom e a h o t issue in business software writer doesn’t get paid if you distribute a pirate
ethics. copy of their program. What about the movie industry?
W hich one of the above could also be used at the 3 the m usic and publishing
beginning of a w h o le sen tence? industries mentioned above, they have been considerably
, fair trade has become a hot issue. more successful in protecting their intellectual property.
However, as Internet download sp eed s increase, file
2 2 9 Look at th ese tw o sentences: sharing of movies may also becom e a possibility.
The softw are is designed particularly fo r classroom use. 4 , it looks like all the
The so ftw a re is designed m ainly for classroom use. creative industries are at risk from digital technology. Does
1 Which tw o of the formal adverbs in the box below mean this matter? The answer is yes. If m usicians, authors,
the same as particularly? actors, film m akers, software writers and others don’t
2 Which tw o of the formal adverbs in the box below mean receive an income, they won’t continue to work to produce
the same as mainly? high-quality products. In theory, it is easy to see that this
situation is wrong, but in practice it is difficult to persuade
especially principally predominantly specifically
yourself to pay for something that you can get for free.
5_ ___________ , it is probably better to have
2 2 .1 0 Fill in the gaps using these prepositions: for,
some sort of regulation so that everyone pays, otherwise
from , in, in, into, on, to, w ith. Then m atch a structure
from the left colum n w ith one from the right. the creative industries will enter a slow decline.
Re-read the texts Never before has business ethics been Do some Internet research. Type the words 'corporate
such a ho t topic (page 92) and A part from the issue o f social responsibility' into a search engine.
blocking access to certain Internet sites by governm ents, Now write a short report with the title 'Corporate social
the topic o f 'intellectual copyrigh t’ is probably the key responsibility'.
ethical issue fo r the Internet age (page 95). This will When you finish (if you are w orking in a group), read
remind you about some issues in business ethics. each others' reports. Have a discussion.
95
Writing paragraphs
Topic sentences and unity T h e in tro d u cto ry sen te n ce in V ersion B is called a 'to p ic
se n te n ce '. It p ro v id es a c o n te x t and su m m a riz e s w h at will
H ere .ire som e facts a b o u t tren d s in the c o n su m e r go o d s
fo llo w in the p arag rap h .
m arket:
A ll the sen te n ce s in a p arag rap h sh o u ld relate to one m ain
High-end products: growth in m arket share
idea. T h is is called 'u n ity '. U n re la te d id eas in the sam e
Mid -ange products: decline in market share
p a ra g ra p h p ro d u ce co n fu sio n o r com p lexity. A typ ical error
Low-end products: growth in m arket share
m ig h t b e d iscu ssin g ad v a n ta g e s and d isa d v a n ta g e s in a
Stud y the sh o rt texts b e lo w ; they are a ltern a tiv e w ay s of sin g le p arag rap h , o r e v e n d iscu ssin g m ore than on e
p resen tin g the facts abov e. ad v a n ta g e in the sam e p arag rap h .
V ersion A
Movement / Logic
V ersion B h as m o v em en t: the id eas flow d e a r ly and
’ C on su m ers at the high en d are 'tra d in g up ', paying a
logically. In this case, it is b e ca u se the to p ic sen te n ce sets up
prem iu m p rice fo r highly b ran d ed , luxury prod ucts.
the p a ra g ra p h stru ctu re v ery clearly. A n o th e r typ ical w av
i Aml at the low en d they are ‘ trad in g dow n’, sp en d in g as
to giv e m o v e m e n t to a p a ra g ra p h is b y u sing lin k in g
little as possible on basic, fu n ctio n a l prod u cts !T1iis is
w o rd s. T h e le ft-h an d b ra n ch of the m ind m ap o p p o site
h ap p en in g all over the world - leaving the m id dle in
rev iew s th is la n g u a g e area, w h ich is cov ered in m o re d etail
d eclin e. ’B etw een the two poles lies a vast ran ge o f
and p ractised in u n its 2 0 -2 2 .
ordinary, b o rin g prod u cts that are rapidly losing m arket
share.
Substitution and repetition of key words
R ead this p a ra g ra p h taken from the sam e text.
Version B
’ C o n su m er beh av iou r at the b o tto m e n d o f th e price
’All over the world, c o n su m e r m arkets are dividing into a ran ge is ch a n g in g as well. ‘ In the past, low-end produt is
high en d and a low en d - leaving the m iddle in d eclin e . w ere associated exclusively with low -incom e grou p s and
h\t the high e n d , co n su m ers are ‘trad in g u p ', paying a p o o r quality. But nowadays p eo p le o f all social classes
p rem iu m p rice fo r highly b ran d ed , luxury produces feel satisfaction w hen they find a b arg ain , ’it a ll<>ws thorn
’’A m : at the low en d , they are ‘trad in g d ow n', sp en d iitg as to fe e l th at they a re in c o n tro l o l th e ir fin a n c e s.
little as possible on b asic, fu n ctio n al prod ucts. 'B etw een ’In terestingly, as a result o f th e m o n e ) saved, they
the two poles lies a vast ran ge o f ordinary, b o rin g typically th e n fe e l a b le to afford a few high -en d luxuries.
prod ucts that a ic rapidly losin g m arket share.
T o p ic £ e r - te .* c e .
M Ake a p & rf o a a I
CO M M eA t
Obviously, U terestiA ^ly, E m ip h A fif
Clearly, ^urpriSiA^ly J .s ta rtiA .- j w ith t h e SAMe f a c t s you c a a eM phasize
d if f e r e A t p o iA ts a Ad p re se A t d if f e r e A t ar^ UM eAtS.
You do t h is w ith li a I c i a ^ j w o rd s a Ad t h e p a ra g ra p h s t r u c t u r e
( T e e e x e r c is e 23.3 o a p a ^ e 93 for a a e x A M p l e . -)
W ji
M Writing paragraphs: Exercises
23.1 Read the paragraph and then an sw er the Now tick ( / ) tw o good topic sentence from 1-3 below.
questions. O ne fo llo w s the principle of 'substitution to avoid
m onotony' and one o f 'repetition for stylistic impact'.
'A good example of trading up’ from the middle market is
1 Is it possible to combine all segments of the market under
Olay made by Proctor and Gam ble. On the 1980s, Olay had one roof?
just one form and sold at an everyday price in a standard
2 Is it possible to be a success in the mid-market?
bottle. 3But today it occupies a whole section of the store
3 Is it possible to sell to high-end shoppers and low-end
and sells at a premium price. !P&G have developed the
shoppers in the same store?
brand in two w ays. ^Firstly, by product diversification (face
or body, cleansing or moisturizing, vitamins, sun protection, 23 .3 Here are som e figures for sales increases last year:
anti-ageing, etc). 6The act of deciding which item in the France 4.5% Hungary 8%
range is right lor you takes you one step closer to a decision Germany 4% Poland 7.5%
to purchase. 'Secondly, by using a huge advertising budget UK 3%
to associate the brand with positive feelings. “When a
These basic facts can be described in different ways. Look at
woman is applying the product, she feels she is going to be
topic sentences a)-c). They set up the movement in the
beautiful today.
paragraph in different ways.
a) Sales were strong across all key European markets last year.
W rite th e sentence num ber/s w hich show :
b) Sales increases last year were significantly lower in
a) the topic sentence for the whole paragraph: m established markets than in the new markets of Central
b) another sentence, like a topic sentence, that introduces Europe.
the second part of the paragraph: j c) Sales increases last year were much more impressive in the
c) movement by using a time contrast: an new markets of Central Europe than in established markets.
d) movement by listing points: □ □
N ow w rite one of the letters a -c in each box below . The
e) using a follow-up sentence to develop the idea in the
text after the arrow sh o w s h o w the paragraph
previous sentence:
continues.
Finally, read the tw o opinions b elo w and decide w hich 1 Poland and Hungary both had significant increases,
one you agree w ith . There is no 'correct' a n sw e r - the with 7 .5 % and 8 % respectively. However, in the rest of
aim is just to think in detail about paragraphing. Europe the figures w ere disappointing, at 4 .5 % in France,
Opinion 1 At eight sentences, this paragraph is too long. It is 4 % in Germany and just 3 % in the UK.
difficult to follow the argument. It would be better to start a 2 □ Hungary and Poland had the highest increase, with
new paragraph at sentence 4 - after all, this is like a second 8 % and 7 .5 % respectively. But other markets also showed
topic sentence. positive growth. France had gains of 4 .5 % , Germany of
Opinion 2 The length is not a problem as the paragraph 4 % , and the UK of 3 % .
shows 'unity' - all the sentences relate closely to the main 3 | ■The poorest performance was seen in the UK, with
topic introduced in the first sentence. Making a new growth of only 3 % . Germany and France were also weak,
paragraph at sentence 4 would be a mistake - it would break with increases of just 4 % and 4 .5 % . However, in Poland
up the movement and logic of the argument. and Hungary gains were far more impressive, with
increases of 7 .5 % and 8 % respectively.
23.2 Read the paragraph. The topic sentence (a
question) is missing. W hen you have checked your an sw ers, note:
There is a difference of emphasis in all three paragraphs
? At first sight, this would seem (different countries, positive vs negative, etc).
impossible, Hligh-end shoppers and low-end shoppers are The idea 'lower' in topic sentence b is a key one. It is
rarely seen in the sam e store, and the strategy certainly is referred to again later in the paragraph with the words
risky and difficult. But a small number of retailers are making p oo rest and weak. This is an example of 'substitution to
it work, and exam ples are Costco in the US and Aldi in avoid monotony'.
Europe. These are 'treasure hunt' stores. The money you
save on the majority of your purchases you can spend on a
luxury treat - like a nice bottle of wine or a special cake.
98
23 WRITING PA tAC IAPHS
2 3 .4 Here are som e facts: Repeat the exercise: w rite the sentence num bers
to form a paragraph. The paragraph refers to the sam e
Soybean prices w ill stay high. facts as in exercise 23.4.
C hina and India im port a lot of soybeans.
m q
The cultivation of soybeans needs hot sum m ers and a lot of
1 Over recent years China and India have been buying large
water.
quantities of soybeans on world markets, and this is
Soybean farm ing in Brazil is destroying the rainforest.
certain to continue in the future. Demand will stay high.
2 The result of all these demand and supply pressures is that
W rite in the boxes th e sentence num bers th at form a soybean prices are likely to stay high for years to come.
paragraph to describe th e facts above. 3 First, the cultivation of soybeans requires a combination of
m -> □ hot summers and the availability of water, and not many
1 Soybean prices are likely to stay high for years to come. countries can provide this.
There are several reasons for this. 4 Second, there is pressure on land use in Brazil, the biggest
2 Then, on the supply side, it will be difficult to increase producer, because of the potential impact on the rainforest
worldwide production much beyond current levels. Why is if more land is converted to soybean farming.
this? 5 At the same time there are supply side problems: it will be
3 On the demand side, both China and India buy large difficult to increase worldwide production of soybeans
quantities of soybeans on world markets, and this is much beyond current levels. W hy is this7
certain to continue in the future.
W hen you have checked yo u r an sw ers, note:
4 In addition, there is pressure on land use in Brazil, the
biggest producer, because of the potential impact on the The topic sentence in this paragraph comes at the end as a
rainforest if more land is converted to soybean farming. conclusion, not at the beginning as an introduction.
5 First, the cultivation of soybeans requires a combination of Finally, note that all the exam ples in this unit have been
hot summers and the availability of water, and not many w ritten text. But the 'facts' in the boxes in exercises
countries can provide this. 23.3 and 23.4 could be Pow erPoint slides, and in this
case the text w o u ld be a spoken presentation.
W hen you have checked your an sw ers, note:
• There is movement in the paragraph - the contrast
between the dem and side and the supply side.
m There is also some secondary movement - the listing of
two supply side factors.
• The word cultivation is substituted later with the word
farming. This is an example of 'substitution to avoid
m onotony’ .
W riting practice
• Review exercise 23.3, including the notes in bullet points Review exercise 23 .4, including the notes in bullet points
at the end. Then cover the second part of the exercise at the end. Then cover 2-5 with a piece of paper, so that
with a piece of paper so that only sentences a)-c) are only the box of facts and sentence 1 are showing. Write a
showing. Write three separate paragraphs, beginning with paragraph beginning with sentence 1.
a)-c). Again, uncover the original at the end and compare.
• Uncover the original at the end and compare. But it is not Review exercise 23.5. Cover 2-5 with a piece of paper so
a memory exercise - your version may be quite different, that only sentence 1 is showing. Write a paragraph
and perhaps better! beginning with sentence 1.
• Again, uncover the original at the end and compare.
CV (resume) / Job interview
B elow y o u w ill see an A m e rica n -sty le resu m e /'rezju:mei/ (o ften w ritten w ith accents:
resu m e). Its key fe atu re s are: one sid e o f A 4 o n ly fo cu s on ac h ie v e m e n ts (w h at y o u h av e
actu ally d o n e) as w ell as sk ills and resp o n sib ilitie s, n o 'p e rs o n a l' in fo rm atio n . E u ro p e an -
style C V s are longer, and can in clu d e o th e r th in g s such as person al in terests,
c o u rse s/ co n fe re n ces atte n d ed . A fter lo o k in g at the resu m e, refer to the m in d m ap .
P R O FES S IO N A L E X P E R IE N C E
EDUCATION
Nov 20XX - May 20XX. Postgraduate Diploma for Financial Operators, Bocconi University, Milan
This course covered fundamental analysis, technical analysis and pricing techniques for equity, bond
and derivatives markets.
Sep 20XX - June 20XX. Degree in Economics and Business Administration,
Bocconi University, Milan
I graduated with a final mark of 78%. My specializations were in Corporate Finance and Financial
Markets. My final dissertation was on IPOs in the Italian market.
Key achievements:
- I was a member of the university basketball team. We won the Italian University League in 20XX.
S K IL L S
REFEREN CES
Available on request
100
CV (RESUM E) / JOB INTERVIEW
R e .£ f> o ^ ib i1 i'ti£ *
O f the. M Atr p rio ritie s i r th is role, which ores Are well C o rS id e r p u ttin g A ore-pArA^ rA ph
understood Ard MeASurAble, And which ones A re ro t ? ^UM M Ary' A t th e to p.
J o b de.ve.lopMe.A-k ^ t A r t w it h t h e Most r e c e r t
Ir coMpArisor w ith row, w hAt Mdyor chAr^eS jo b / c o u r s e Cre v e rs e chrorolo^ icAl o r d e r 1)
i r th is ro le a r e you looking f o r ? F o r exAM ple, J Fo r rAM es o f u r iv e r s itie s , co urses, e t c , use a
i r terM S o f cuStoMer r e lA tio r S ? o r^ A riiA tio rA l /
Mix o f th e ori^irAl words Ard English words.
develo p w ert? M A rket developMent? /
Provide a tr A r S lA t io r i r brACkets i f recesSAry.
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E>e b rie f A rd d ire ct. Avoid jA r a o r .
Use A ctio r verbs t o describe your
resp o rS ib ilitieS : See l is t o r pA^e 102.
CV/RE.SUME U r i v e r s it y ^ rn d u A te S w it h o u t Much
eM ployM ert h is t o r y CAr s t i l l t h i r k
llsfTERVIEW * c to £ V € M e * t*
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CV (resume) / Job interview: Exercises
24. Study the list of personal qualities below . You can 24.. Study the list of action verbs below. You can use
use som e of these ideas in your CV, or in an interview. som e of these ideas in your CV. or in an interview .
active and dynamic approach - gets things done analyse (sales data)
comfortable with demanding sales targets carry out (processes and procedures)
creative problem-sotver complete (projects on time and on budget)
critical thinker - strong analytical skills
control (quality)
detailed and precise; conscientious and thorough
coordinate (complex projects)
determined and decisive
deal with (customers, both internal and external)
effective project coordinator
emotionally mature and confident - a calming influence deal with (suppliers, partners and associates)
24.4 First read th ese typical in tervie w questions. 24.5 Prepare the roleplay.
1 Tell me a little about yourself. 1 Think of a job that you might apply for in the future and
2 W hy do you w ant to leave your current job? w rite it below. If you cannot think of anything, then
imagine that you are applying for the position of your
3 W hat attracted you to this company?
current boss (even if you only do part-time w ork).
4 W hat qualities or experience do you think you would
bring to this job? (position)
5 W hat would you find most difficult about this position? (company)
2 Fill in the gaps in the box below with your own
How would you handle that challenge?
information. You will be asked these questions.
6 As you look back on your life and career so far, w hat
achievement has given you the most satisfaction?
Education
7 How would other people in your present company
I see that you have a degree in
describe you as a colleague?
(subject) from (name of institution).
8 W hat are your strong points?
Which part of the course did you enjoy most? W hy did
9 And w hat are your w eak points?
you like that subject?
10 How do you deal with criticism and direction?
Did you do a project in your final year? Can you tell me
11 In career terms, where do you w an t to be in five years about that?
time?
Current job
12 So, finally, w hy should w e hire you rather than one of the
other candidates? (Use a part-time job if necessary, and use a recent job if
you are a student or unemployed.)
Now choose one o f th e questions above to match w ith I see that you w ork as a (position) in
each reply below . W rite th e question num ber in the (company).
box.
Can you tell me a little about the company? W hat
a) 'It doesn't allow me to grow professionally and I exactly do you do there?
w ant more challenges.' (also practical things like distance • W hat personal and professional skills have you
from home, job security.) developed?
b) Don't talk too much: it's a warm-up question. • W hat w as your most important achievement?
Cover your origins, education, w ork history and recent • How have you kept up-to-date with new developments
career experience. in your field?
c) □ - * 'Maybe I am a little too perfectionist.' / 'Perhaps I • W hy do you w ant to leave?
worry too much about deadlines.'
d) □ - » 'I welcom e it and listen carefully, particularly if it 3 Review the questions in the box above and the twelve
allows the team to operate more effectively and produce questions in exercise 24.4. Plan how you personally will
better results. It is necessary in order to learn and develop.' answer these questions. Your replies should be natural and
comfortable for you, and may be very different to other
Speaking practice people's replies.
In exercise 24.5 and 24.6 you are going to prepare and
then practise a job interview. This is useful for everyone - 24.6 Roleplay
even if you are not thinking about applying for a new job G ive this book to a colleague / friend and ask them to
right now. in terview you. The in tervie w e r should fo llo w this
sequence:
'Tell me a little about yourself.'
• The questions in the box above.
• Questions 3-12 from exercise 24 4.
103
Interview s
1 In terview w ith a venture cap italist 2 In terview w ith a CEO
E x e r c is e s E x e r c is e s
You are going to listen to an interview with Karl, a venture Read statements 1-4. What is your opinion? Write 'Agree'
capitalist. How do you think he answers the questions below? or 'Disagree' in the column headed 'My opinion’.
1 What kind of start-up is a venture capital firm looking for? My opinion Lara’s opinion
2 What role does a venture capitalist have in the management of a 1 Having a 'Suggestions ____________ __________
start-up? Box' at work is a good idea.
3 Suddenly a start-up is bought by a larger company. How do 2 Email has made communication
people react? Are they happy? at work much easier.
3 Positive feedback should be g i v e n ____________ ___
2 * Now listen to the interview and compare your ideas
publicly as well as privately.
with the real answers.
4 Workers in the public sector are la z y .____________ ______
3 Are these statements true (T) or false (F)? Try to
2 # Now listen to an interview with Lara about managing
remember what Karl said, then listen again to check.
people. What does she think about the same statements?
1 Venture capitalists are usually interested in long-term investment. Write 'Agree' or 'Disagree' in the final column above.
T/ F
2 When a VC sells a start-up to a larger company, it is called a 3 Read the questions below. Try to remember what Lara
'trade sale'. T / F said, then listen again to check.
3 Venture capitalists are typically interested in firms in the IT and 1 What are the three channels of communication according to
biotech sectors. T / F Lara?
4 In the pharmaceutical sector most start-ups want to become 2 What name does Lara give to the kind of skills that are important
stand-alone companies. T / F for teamwork?
5 It's easier to take a technology start-up to an IPO in Europe than 3 Apart from giving positive feedback, what other thing does Lara
in America. T / F think is important for motivation?
4 What change does Lara want to make in the public sector?
4 Read the listening script (page 109) and make notes on
what Karl says about the following topics (maximum ten 5 What kind of person has vision and sees the big picture?
words each). When you finish, discuss the general issues 6 What role does Lara compare to an Admiral?
with some colleagues. Read the listening script (page 110) and make notes on
• the kind of start-up company that a VC is looking for what Lara says about the following topics (maximum ten
• why large companies are interested in buying successful start-ups words each). When you finish, discuss the general issues with
• why it's difficult in Europe to do a technology IPO some colleagues.
top-down communication
G lo s s a r y
bottom-up communication
break-through innovation important discovery / new product what a CEO should do in meetings
culture shock negative feelings of surprise when people move the relationship between employees and their leader (the CEO)
to a different environment
exit strategy way to end involvement in something G lo s s a r y
founders people who establish a start-up
acknowledgement recognition
growth potential opportunity or ability to get bigger
annual review summary of company's results irom previous year
IPO (Initial Public Offering) process of issuing shares for the
cc send a copy of an email to a third party
first time (when a privately-owned company becomes listed on
cover for sb to do someone else's work on a temporary basis
the stock market)
drive ambition and determination
milestones important events in a company's development
face-to-face in person
road map plan for moving from the present situation towards
humble with low social status
one or more kpy objectives
incentive something that makes you work harder
serial entrepreneurs founders of several start-ups
mingle mix informally
stake amount of investment
shop floor area in a factory where products are made
stand-alone independent, not part of something else
start-up new company, often with higher risk and higher
potential return on investment
venture capitalist (VC) outside investor who provides money
for financing start-ups. VC can also mean venture capital.
m
INTERVIEWS
105
INTERVIEWS
4 Read the listening script (page 113) and make notes on 3 Listen again. What does Angelika say about the
what Louis says about the following topics (maximum ten following topics? Complete her sentences.
words each). When you finish, discuss the general issues with 1 Events 'We've got a big events department, because more and
some colleagues. more companies want to create . ________________________
with their end-users.'
w hy com panies need a w id e product range
2 Endorsements 'One way to build a brand is to associate it with
quality in relation to price
famous people that consumers be!.eve in and trust. You pay ‘or
the effectiveness of advertising in increasing brand awareness an endorsement and you buy .
of that celebrity - it transfers to your product.'
G lo s s a r y
3 Communication 'You need inspiration more than market
a p p lia n c e piece of electrical equipm ent that you have in your research. You need to understand how to speak to the
home __________ _. side of people's brain.'
b u ilt- in harming part of som ething and cannot be separated
4 Read the listening script (page 114) and make notes on
d ru m circular container in a w ashing mat time
what Angelika says about the following topics (maximum ten
fa c e lift superficial changes that m ake som ething look new er or
words each). When you finish, discuss the general issues with
better
some colleagues.
fitted made to At a particular space in a building
fr e e - s t a n d in g n o t fixed to a w all or other support the benefits of events
ju n k m a il advertising ilia ' is sent to you, but you did not ask for how communication channels have changed
op t In deride to be part of som ething; (direct m arketing) yive market research
permission to lie sent mail or email
stale old and no longer fresh Glossary
status social position
straightforward clear and easy to understand
attention span period of time a person is able to concentrate
brand recognition how well the public knows-your
company / products
end-users last customers in the supply chain
fragments fro n when something breaks into sn slier pieces
In-Store displays stands used in shops to promote a product
outcomes results
peanuts colloquial term meaning 'very cheap1
four operator company which combines components to create
a holiday, eg a flight plus car hire plus hotel
trade customers people in a supply chain who buy from a
supplier and then sell to another customer or the end-user
video clip short video extract
INTERVIEWS
5 Make sure that internal accounting processes Bottom-up analysis Top-down analysis Technical analysis
6 Check that the amount for provisions
107
INTERVIEWS
108
Listening Scripts
m ajority on the Board, and we w ant to m onitor the grow th of
1 In tervie w w ith a ven tu re cap italist
the company. Initially the most im portant thing is to get ihe
KARL I'd like to explain a little about venture capital, and why I hum an resources right - to m ake sure that the key people In
think the lack of a strong VC sector in Europe is holding back the com pany are the very best. Then the next thing is to define
our economy, at least as far as the technology sector is the road map for the company, with the im portant m ilestones -
concerned. perhaps first a w orking prototype, then the first custom ers,
IN TER V IEW ER Very interesting. But before you begin, can you just things like that. In fact the venture capital will be released in
explain how venture capital works - how it's different to other form s two or three rounds of financing, as different key milestones
o f financing like bank loans. are reached.
KARL Let's think about the objectives of VC. The aim is to take IN TER V IEW ER Then after some years the company grows and you
a stake in a small start-up company, and then to sell this stake get to the point where you want to sell your stake, either as a trade
at a profit in the future, perhaps three or four years down the sale or an IPO.
line. We need a clear exit strategy. We have absolutely no KARL That's right. A trade sale is by far the most com mon. It's
interest in keeping our stake for the long-term. easier to look for a trade sale. Large, international com panies
IN TER V IEW ER So how exactly do you sell your stake? When does it are very interested in buying successful start-ups who have
happen? already done all the hard w ork in developing a new product.
KARL T here are two options, either at IPO w hen the company It's like outsourcing their own R&D, with no risk. They are
goes public, in which case we will sell to institutional and other buying a technology which would have taken them several
investors who buy the shares, or in a trade sale, w hen a large years and a lot of m oney to develop them selves. In addition,
company in the sam e sector buys the start-up, and the start-up they are also buying all those early custom ers.
just becomes a part of the other company. Its name disappears. IN TER V IEW ER That makes a lot o f sense.
IN TER V IEW ER Is venture capital interested in all start-ups? KARL It's a trend that is unstoppable. Large com panies will buy
KARL Definitely not. Perhaps 95% of new ly founded com panies in more and more innovation. T hat's how Intel and M icrosoft
serve a small local market and will either stay small or grow grew, but it's also true for biotech. Right now a lot of
slowly to becom e m edium -sized com panies. As venture pharm aceutical firms are looking for drugs in phase two of
capitalists we're not interested in that kind of company. These developm ent ju st because their own internal fine of n e w
com panies will turn to banks for their financing. products is not enough to fulfil their future needs. In the
pharm aceutical sector all start-ups are looking to be bought,
IN TER V IEW ER So what kind o f start-up is a venture capital firm
because it makes absolutely no sense to becom e a stand-alone
looking for?
company.
KARL We re looking for com panies with enorm ous growth
IN TER V IEW ER So the situation is this. You have a small team o f
potential - with a break-through innovation that will allow
smart people working in a start-up. They all know each other and it's
them to becom e major players in some specific sector in the
a very exciting environment. The focu s is all on R&D. Then suddenly
global economy. Typically, these small firms will have their
they are bought by a larger company and fin d themselves dealing
origins in som e sort of collaboration between university and
with bureaucracy, sitting in long m eetings and with reports to write.
the industrial world, and they are usually found in the IT and
H ow do they react? Are they happy?
biotech sectors. This type of firm will have little or no income
stream - they are developing a product or a process and it's not KARL Well, of course they are very happy. Rem em ber that they
on the m arket yet. Or maybe they have just a few pilot will have sold som e of their shares as well, and they'll get a lot
customers who are w orking with them to develop the product. of money for that. It's their reward for all the years of hard
So they need a source of financing, and that's where venture work. They'll buy a new house and generally take their living
capital comes in. We're prepared to take a very big risk and standard to a new level. But, to be honest, in the case of a trade
fund the com pany sale 1 can say that most of the original founders of the company
will leave within a few years. You're right - it's a big culture
IN TER V IEW ER And in exchange fo r this risk?
shock. They gel used to being their own boss and w orking in a
K A R L In exchange for the risk we take a large stake in the
company where every m inute is dedicated to what is really
com pany - perhaps 80% of the shares - and in the future we
important. They have a lot of difficulty in adapting to a large
hope to sell these at a large profit. As I said earlier, we need to
corporate environment.
have an exit strategy.
IN TER V IEW ER W hat happens to them?
IN TER V IEW ER OK, so w hen you get involved you take something
K A R L They often start another new company.
like 80% o f the shares, leaving 20'% fo r the founders o f the company.
IN TER V IEW ER So they're serial entrepreneurs?
KARL That's right. To motivate a team of bright guys you need
to leave them with som ething like 20% of the company. But K A R L Yes, that's exactly w hat they are.
they are usually very happy with that. Remem ber that there is IN TER V IEW ER So, just to be clear, very fe w sm all companies with a
no money com ing into the com pany - nothing to pay the bills, high growth potential will go on to be a success in their own right,
nothing to buy equipm ent. W ithout VC they have no company. through an IPO and a stock market listing. Instead, they'll all be
IN TER V IEW ER OK. So venture capital gets involved at an early bought, and disappear as stand-alone companies. At least in the
stage. What role does a venture capitalist have in the management o f technology area.
a start-up? KARL Yes, that's the point 1 was m aking at the beginning. With
KARL We d on't get involved in the day-to-day running of the a service com pany it m ight be different. If it has a business
company. As I said, that's not our business. But w e're a model that is easy to understand, if it has a good revenue
109
LISTENING SCRIPTS
IN TERV IEW ER So, Lara, you 've had a very in terestin g career. Now
m o r e tim e to re so lv e th e s m a lle s t p r o b le m . In th e p a s t p e o p le
u s e d to so rt thing,s o u t q u ic k ly b y g e ttin g to g e th e r a n d ta lk in g .
you 're the. C E O o f a m ediu m -sized utility com pany, bu t before that
N o w y o u h a v e to c c e v e r y b o d y a b o u t y o u r is s u e s a n d read
you w ere in volved in local g overn m en t, an d in fact von w ere the
th e ir re p lie s, a n d th e n y o u h a v e to r e a d a ll th e ecs th a t y o u
m ayor o f your tow n! W hat have you learn ed abou t m an agin g p eo p le ?
r e c e iv e a b o u t th e ir is s u e s . I t's crazy . M a n y p e o p le s p e n d tw o
le t's begin zoiih com m u n ication .
h o u rs a d a y ju s t a n s w e r in g e m a ils . A n d p e o p le n o w h a v e to b e
LA RA T h e re a re re a lly th re e d iffe re n t c h a n n e ls o f
m u c h m o re c a re fu l b e c a u s e th e r e is a p e r m a n e n t re c o r d . It's
c o m m u n ic a tio n . T h e re is to p -d o w n , th e r e is b o tto m - u p , an d
v e ry b a d fo r c o m m u n ic a tio n .
th e n th e r e is a lso h o r iz o n ta l c o m m u n ic a tio n b e tw e e n p e o p le a t
th e s a m e le v e l - th a t's m o r e o r le s s th e s a m e a s te a m w o r k .
IN TER V IEW ER OK. N ow let's chan ge the topic c om p letely am i talk
abou t m otivation.
IN TERV IEW ER Let's begin w ith com m u n ication fro m the tup to the
bottom .
LARA 1h a v e tw o th in g s to say a b o u t m o t h a tio n . Ihe fir s t is th e
im p o r ta n c e o f p o s itiv e fe e d b a c k . It h a s to b e g iv e n c o n s ta n tly :
LA RA O K , w e ll th in g s lik e r e p o r ts a n d m e e tin g s a re o b v io u s .
fa c e -to -fa c e , th r o u g h re p o rts , a n d o f c o u r s e th ro u g h th e re s u lts
B u t w e d o s o m e th in g e lse E v e ry q u a r te r w e p r o d u c e an in -
in th e fig u re s . B u t ju s t h a v in g th e re s u lts is n o t e n o u g h - th e re
h o u s e m a g a z in e , w r itte n b y o u r c o m m u n ic a tio n s o ffic e r, a n d
h a s to b e p u b lic a c k n o w le d g e m e n t a n d th a n k s so th a t p e o p le
e v e r y o n e w h o w o r k s in th e c o m p a n y re c e iv e s it. It d e s c r ib e s
fe el v a lu e d . T h e s e c o n d th in g is a b o u t th e im p o r ta n c e o f
th e m o s t im p o r ta n t d e v e lo p m e n ts in th e c o m p a n y , it h a s
lis te n in g . O n e o f th e m o s t m o tiv a tin g th in g s fo r an e m p lo y e e is
in te r v ie w s a n d so o n . I t's e x p e n s iv e to p r o d u c e - 8 0 p a g e s , fu ll
to h a v e a b o s s th a t lis te n s . I lo v e to s p e a k in m e e t in g s an d
c o lo u r - b u t w e a ls o s e n d it to im p o r ta n t c u s to m e r s , th e C E O s
s h o w h o w im p o r ta n t I a m , b u t th a t's a b ig m is ta k e . I am
o f o th e r lo c a l c o m p a n ie s , lo c a l p o litic ia n s a n d so o n . T h e s ta ff
im p o r ta n t an d I w ill ta k e th e d e c is io n s . B u t i h a v e to ta k e in to
o f th e c o m p a n y g e l it th r o u g h th e m a il a t th e ir h o m e s .
a c c o u n t o th e r p e o p le 's o p in io n s , o th e r w is e they7 w o n 't s u p p o r t
IN TERV IEW ER OK. W hat abou t the other w ay - com m u n ication
m e . b o in m a n y m e e tin g s 1 ju s t e x p la in th e b a c k g r o u n d to th e
fro m the bottom to the too?
s itu a tio n in tw o m in u te s a n d th e n le a v e tim e fu r o th e r p e o p le
LA RA Y o u h a v e to e n c o u r a g e a n a tm o s p h e r e w h e r e p e o p le feel
to s p e a k .
a b le to s p e a k freely, Y o u d o n 't w a n t lo w -le v e l e m p lo y e e s; to
IN TER V IEW ER You have w orked both in the pu blic sector in local
th in k 'th e b o s s is th e b o s s , a n d I 'm g o in g to k e e p m y m o u th
g ov ern m en t - an d in the private sector. P ublic sector em ployers
s h u t'. Y ou ha\ e to b u ild a n a tm o s p h e r e o f tru st. W h e n ! b e c a m e
som etim es have a bad repu tation - p eople say they are less m otivated
C E O J o y o u k n o w w h a t 1 d id ? I m a d e s u r e th a t I g o t o u t o f m y
b ecau se they have their jo b s for life an d have no in cen tives to p a form
o ffic e a n d s p e n t a t le a s t a n h o u r a d a y ju s t w a lk in g a r o u n d the
w ell D o you thin k that's true?
fa c to ry a n d ta lk in g to p e o p le o n th e s h o p flo o r. I saw h o w
LARA Y o u h a v e to c h a n g e th e s y s te m in th e p u b lic s e c to r s o th at
p e o p le w o r k e d , a s k e d q u e s tio n s , a s k e d h o w vve c o u ld im p ro v e
p e o p le a re p a id m o r e in r e la tio n to re s u lts a n d p e r fo r m a n c e .
th in g s. 1 th in k T o m P e te r s c a lle d it 'm a n a g e m e n t b y w a n d e r in g
I t's n o t e a s y a n d it ta k e s a lo n g tim e . B u t r e m e m b e r s o m e th in g
a r o u n d '. I t's a b it lik e h a v in g a 'S u g g e s tio n s B o x ', b u t fa c e -to -
e ls e v e ry im p o r ta n t - n o t e v e r y o n e h a s d r iv e a n d e n e r g y an d
fa ce.
w a n ts to g e t to th e topi. S o m e p e o p le a re h a p p y to sta y n e a r th e
IN TER V IEW ER A S u ggestion s Box is an on ym ou s! T his isn't!
b o tto m , o r in th e m id d le . P e rh a p s th e y h a v e o th e r p rio r i!.iis
LA RA B u t y o u k n o w p e o p le d o n 't r e a lly u se a S u g g e s tio n s B o x,
lik e th e ir fa m ilie s o r th e ir o u ts id e in te r e s ts . S o m e p e o p le ju st
e v e n if it is a n o n y m o u s . Y o u h a v e to h a v e h u m a n c o n ta c t to
w a n t to d o th e ir jo b a n d g o h o m e a n d fo r g e t a b o u t w o r k . T h at
fin d o u t w h .it p e o p le th in k . W h a t o th e r e x a m p le s c a n I g iv e
d o e s n 't a lw a y s m e a n th e y a re lazy. I th in k th a t very, v erv tew
y o u '1 Y es, a t th e e n d o f th e y e a r w e h a v e a b ig m e e tin g w ith p e o p le a re d e lib e r a te ly la z y - e v e r y o n e c a n b e m o tiv a te d
e v e r y o n e in th e c o m p a n y w h ic h is lik e a n a n n u a l re v iew . W e so m e h o w .
p re s e n t th e p ro g r e s s o f th e c o m p a n y o v e r th e y ea r, b u t p e o p le
IN TER V IEW ER T hanks. The fin a l topic I'd like to talk abou t is
c a n iJ so a s k u s q u e s tio n s . T h e n a few d a y s la te r w e h a v e an
leadership. In a w ay it's the other side o f the coin, ('onm utnicntion
e v e n t w ith fo o d a n d d r in k , a n d a g a in th e m a n a g e r s m in g le
an d m otivation are all abou t listen in g an d em pow erm en t, w hereas
w ith th e o th e r s ta ff a n d it c r e a te s a g o o d a tm o s p h e r e .
leadership is abou t stren gth at the top. I f you are a lead er then I, by
IN TER V IEW ER Let's go on to the third type o f com m u n ication you defin ition , am a hu m ble follower.
m en tion ed - horizon tal com m u n ication .
LA RA N o , n o , y o u c a n 't se e it th a t w ay . T h e le a d e r h a s \ isio n .
LISTENING SCRIPTS
LA R A She C E O - n o t th e C h a ir m a n o f th e B o a r d - is th e c a p ta in e s c a la to r s . O h y e s, a n o th e r v e ry im p o r ta n t th in g is sa fe ty , an d
e x p la in th e ir a c tio n s . S o th e B o a r d ju s t c h e c k s th a t e v e r y th in g is th e in s u r a n c e c o sts.
1
LISTENING SCRIPTS
before we can confirm that the prices are reasonable, if not, we 4 In terview w ith a design eng ineer
look for more suppliers. After that we select just two, and we
start negotiating with just one of these. If this fails, we IN TERV IEW ER Could you start off by telling me what you do in
negotiate with the second one. W hen the negotiations are over, your job?
they start work. ALEX I'm a design engineer, working currently in the rail
IN TERV IEW ER It sounds very competitive. industry.
A NTO N It is. In the construction sector things are very IN TER V IEW ER Can you give me an example o f the kind o f work
competitive. you're doing at the moment?
IN TERV IEW ER There must be a lot o f planning invok'd/in terms o f ALEX At the- moment I'm working on a mechanism for
who h contractor starts work when. Some packages need others to be providing power to a train when it's in the m aintenance depot.
fin ished before they can begin, some can work in parallel. It's a special piece that is fitted to the train that allows an
A NTO N You've got it. We do most packages in parallel, and we auxiliary power supply to be attached. The piece has to fit into
have to coordinate all the different contractors very carefully. If a specified space - we call that the 'work envelope'. Apart from
we get it wrong, they can claim money from you. being the right size, the piece will also have slots and holes,
moving parts that have to work together, and so on. I do all the
IN TERVIEW ER What do you mean?
design for that in a CAD package.
A N TO N If one job is kite, it has a knock-on effect. Another
IN TER V IEW ER OK, and this process is presumably the same fo r
contractor is halfway through their work and they can't
other industries such as the automobile industi y and the consumer
continue. They have their machinery on-site, which they have
goods industry.
hired, and they have their people, who are expecting to work.
But the, can't get on and finish their job because another ALEX It's basically the same, but our engineering process is
package is behind schedule. So if it's not their fault, they batch production - we might be producing hundreds of pieces,
charge you. Sometim es it's just a sim ple question of two teams whereas in the car industry, say, it's mass production - they
being unable to physically work in the same space - one of might be producing tens of thousands of pieces. But of course
them has to ’-ton. every piece of every physical object in the world was designed
and manufactured by som eone somewhere.
IN TERVIEW ER So in the small print o f the contract there's a penalty
clause that allows a supplier to claim compensation from you for their IN TERV IEW ER Right. So the whole thing starts with you and a
lost lime. CAD package on your computer.
ANTON Yes, when it's not their fault, that's right. We have to ALEX The whole thing starts w ith me receiving a specification
pay that. But of course we first go to the other supplier that from the custom er regarding the requirements for the
caused the problem and try to charge them fur being late We particular project. I do an initial design and then there is a
negotiate with both com panies about how much to pay and degree of refining within the given param eters of dimension,
whose fault it is. functionality, cost and so on.
IN TERVIEW ER You don't make many frien ds as a project manager. IN TERV IEW ER OK, so how docs CAD work?
A N TO N It's very tough, because at the same time we want to ALEX I usually begin with some initial concept sketches on
keep them happy so that they do a good job. paper - just outline drawings. Then I construct a virtual piece
in CAD. I begin with a major part first of all, so for this
IN TERVIEW ER Is there anything else you negotiate about?
particular exam ple, that would be the rnounling panel - all the
ANTON Yes, right at the end, at the point when they hand over
other parts are attached to this panel, which itself is attached to
to us we call that the 'reception'. At the reception we make a
the train. I create this first part and then start to think about
retention until we have checked all their work. They want to be
how the other parts of the mechanism are going to fit and work
paid the full amount as soon as they finish, but we have to
together. In this particular case there are about fifty or sixty
check that all the w ork 1“ OK ir. cast; we want them to redo
different bits, including all the screws and nuts and so on.
something. So we retain som e money as a way to control the
IN TERVIEW !. R And you're making modifications all the way.
situation, and they don't like that.
ALEX Yes, the design is iterative. That means repetitive and
IN TERV IEW ER OK, thanks. I fou n d that very interesting.
cyclical. It means you keep guing, making slight adjustments,
until you reach the result you want,
IN TER V IEW ER There's an important point here. As a design
engineer, are you ju st looking fo r the most elegant and functional
design, or are other factors like cost o f materials also important?
ALEX Good question. Let me first give you an exam ple where
design was the only factor, and cost not important. Steve Jobs
famously told the designers at Apple that with the iPod he
wanted no visible screws. That was a design constraint that
forced tremendous innovation. But the consum er goods sector
and the B2B sector are two very different sectors. In consumer
goods, design is there to appeal to the end-user. It's about
fashion. W hereas in my sector, or any B2B sector, w e're looking
very much at design for manufacture, DEM, and design for
assembly, DFA. These are two well-known m ethodologies for
design.
LISTENING SCRIPTS
IN TERV IEW ER Can you explain them? IN TE R V IEW E R And you may have to go back to the manufacturer to
ALEX Design for m anufacture means that the piece can be made ask them to make small adjustments.
easily and cost-effectively. Design for assem bly is very similar, ALEX Yes. Then finally we have a w orking assembly^ and the
but it refers to how to put all the individual pieces together. next stage is to test it. The custom er will norm ally give their
M aking sure that assem bly time is minimized, and that the requirem ents for testing and this can be quite com prehensive.
people who fit the pieces can only do it in a certain way and It can include testing against fire, or to check the seals against
w on't make any mistakes. Both ideas reinforce the fact that entry of water, or to check the effects o f vibration, and so on.
design is not just about quality and functionality, but also IN TE R V IEW E R And would this prototype b efitted to a real train?
about cost and ease of manufacture. ALEX Yes. That's the idea. And when the custom er has seen one
IN TER V IEW ER So there is a trade-off between quality and costs. w orking item, and they're happy with it, then we can accept
ALEX Very much so. There's no point designing som ething with delivery of further parts and go into full production.
the best possible quality that can last for fifty years when the
piece itself will only have a working life of ten years. That's
called 'over-designing', and it's one of the biggest mistakes that 5 In terview w ith a m arketin g d irector
you can make. You end up with a piece that's much too
IN TE R V IEW E R So, can you tell me what field o f marketing you work
expensive in every respect - materials, m anufacturing costs,
in?
design time, everything. No, your design must be fit-for-
purpose, not the best possible quality. LO U IS Yes, my com pany m anufactures and sells dom estic
appliances - white goods. That means fridges and freezers,
IN TE R V IEW E R OK, so you're doing all this design work at your
ovens and hobs, dishwashers, w ashing m achines and so on. I
desk using the computer. What kinds o f testing are you able to do
have worked in the same com pany for fifteen years, starting as
while it's still in a virtual form ?
a salesm an and then working my way up to m arketing director
ALEX You can sim ulate m ovem ent - for exam ple when one part
for the whole company. Now we are part of a very large
turns, will it clash with another part? But testing at the CAD
international group.
stage is fairly limited. We have to wait for the physical
IN TERV IEW ER OK, can you tell me som ething about your product
prototype to do the majority of the tests.
range?
IN TERV IEW ER OK, so let's move on to the next stage o f the process,
LO U IS An interesting point I'd like to make straight away is
manufacturing. Do you do that in-house or do you outsource?
that there are some im portant differences here between the US
ALEX We outsource. We have a supplier network. Different
and Europe. Americans tend to like functionality and are less
manufacturers are specialized in different things. So for
status-conscious, whereas Europeans want sophistication and
example you m ight use one com pany for the w elding and
design. And then there's also a difference in habits. Americans
sheet metal work, another for the non-m etallic materials, and
move house often and take everything with them, so they like
so on.
free-standing units. W hereas Europeans move house less often
IN TERV IEW ER And do they work o ff drawings or using your CAD
and w ant built-in units, fitted units. A w ell-designed fitted
file?
kitchen is an expression of their personality'.
AEEX With som e processes they have to work off drawings
IN TER V IEW ER OK, but sticking to Europe fo r now, tell me about
because they are done m anually - for exam ple welding. But
your product range and your distribution channels. For example, I
many parts are machined, and in this case we provide the
imagine that, as well as selling directly to the end-user, you also have
supplier with the CAD file containing the designs. They
B2B distribution channels to the construction sector?
transfer this to a CN C m achine that machines the parts
L O U IS That's right. For the end-user we have both free-standing
automatically. CNC stands for Com puter N um erical Control,
and built-in lines. For the construction sector - where
and it means that the machine tool is driven by a computer
everything is built-in - we have cheaper lines for holiday flats
program as it is m aking the com ponents.
and more expensive lines for residential developments.
IN TE R V IEW E R OK, tell me about what happens next.
IN TER V IEW ER Is there a big difference in the profit margins
ALEX Everything comes back to us, and we do the assembly on
between the various lines?
our own premises. We are a design and assembly company. So,
L O U IS Enormous. In fact for the kitchens in holiday flats our
the parts com e in batches. The very first batch is the most
profit is zero. N othing at all. But we need those items to
important - we do an inspection on a couple of items to make
provide builders with a full range - so that they come to us for
sure that they are within the tolerances specified.
everything. Because the units they install in their residential
IN TERV IEW ER The ' tolerances'?
developm ents are very profitable for us.
ALEX The tolerance means the am ount of perm itted variation. A
IN TE R V IEW E R How many different models do you have in total?
part can be half a mil off, but not one mil off. It's a plus or
LO U IS It's crazy. Across all our different p r o d u c t categories and
minus figure.
all our different brands we have about 1,400 models.
IN TERV IEW ER OK, so you have your fir st batch o f parts, and
IN TE R V IEW E R Why do you have so many?
y o u ’ve checked them. The next stage is to build a physical protohipe.
LO U IS Because we have to. First, if we cut our product line, it
ALEX Yes. You build your first unit. You work off the drawings
would look bad in the market. People m ight think 'They only
- just like m aking an Ikea wardrobe. And as you go you find
have twenty dishwashers whereas the com petitor has twenty-
that things are not as straightforward as you hoped. Some
four so it must be a worse company, or a sm aller company, or
mechanisms w on't fit together or work together as well as they
som ething.' And second, in the construction sector they build a
did in your virtual CAD world.
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LISTENING SCRIPTS
variety of houses and apartm ents at different price levels and IN TER V IEW ER So that 's an interesting way to use existing
thin want different qualities of kitchen to reflect that. customers. What are your main way- to get new customers?
IN TERV IEW ER And how often do you replace old models with new LO U IS Advertising is of course very' important. We use an
on e? outside agency for that, and we monitoi the success of their
LOUIS T h a f s a good question. Take washing m achines as an campaigns. It's not at all straightforward. For example,
example. Every two years we do a facelift - ju st minor cosmetic immediately follow ing a campaign we oiten find that the brand
changes. Then every three or four years we do a restyling - the awareness of our com petitors has increased by as much as our
line and volume of the product changes, and perhaps the own. One time we found that only 15% of end-users associated
position of the handle or som ething. And finally every six or our slogan with our brand.
seven years we actually have a new generation of products IN TE R V IEW E R What does the agency say about that?
with different technology and so on. So at what stage do you LO UIS They are very skilled at not taking the blame. Usually
say it's a new product? It's an interesting question. the solution involves spending even more money! But anyway,
IN TERVIEW ER Are the new generations o f product marketing-led. or we change our advertising agency every few years - after a
engineering-led1 time their ideas get stale.
L O U IS In the case, of washing machines, marketing-led. IN TE R V IEW E R W hat other marketing tools do you use?
Consumers told us that they wanted a drum big enough for LO U IS Direct m arketing is very im portant for us. I'll give you
eight kilos of clothes, not five, and we asked engineering to an example of one thing that we do. Inside m any magazines
find a way to do that. They had to redesign and reposition the you get a questionnaire with boxes to tick about different
internal components, the motor and so on. It w asn't them who aspects of your lifestyle. If you fill it in and return it, you might
told us they could do it. win a prize. Anyway, we can ask to have one of the questions
IN TERVIEW ER OK. A moment ago you were talking about different about kitchens, and in particular to tick a box i f ) ou are
price levels and different qualities o f kitchen. In what sense does thinking about having a new fitted kitchen in the next twelve
quality vary ai lording to price? months. Then we buy all those nam es and addresses, and we
LOUIS It doesn't vary in terms of build quality. The build contact the people directly and send them o u r brochure.
quality has to be excellent for all our products. This is very, IN TER V IEW ER So you increase the amount o f jun k mail in
very strict. No, the difference is in the number of features, the circulation.
performance and the design. And in terms of pricing, it's L O U IS No, it's not junk - it's targeted and useful. By law the
design that adds the most value. A top-of-the-range brand will consum er has to actively opt in - they have to tick a box saying
have its own personality that we have spent a lot of advertising they are interested in receiving third-party promotions.
dollars creating. W hen the custom er buys the brand, they buy IN TER V IEW ER OK, thanks.
the image and the lifestyle that goes with it,
IN TERVIEW ER So image adds more value than features.
LO U IS Absolutely. 6 In tervie w w ith a co m m unicatio ns
IN TERVIEW ER OK, but it's strange to think about ‘brand co nsultant
personality' with something very practical and functional like a
domestic appliance. IN T E R V IEW E R So, Angelika, you work fo r a communication
in the street. A N G ELIK A Of course. For a large com pany it would be normal
IN TERV IEW ER And the last thing you m entioned was publishing. to have several agencies w orking for them - perhaps different
ones for different brands. A big com pany will never, never give
A N G ELIK A Yes, w e've got a big publishing department. We
all its com m unications and advertising w ork to ju st one agency.
produce leaflets and brochures, in-store displays, the annual
report, and som etim es even magazines to give away free to IN TERV IEW ER Because one agency would have too much power?
consumers. A N G ELIK A Yes, too much power. They want com petition
IN TERVIEW ER Right. Can you put it all together and give me an between them. And they also want different ideas. W hat is very
exam ple o f how a comm unication company works with a specific striking now is the fragm entation of m edia channels and the
client? fragm entation of the market. In the past you knew where the
A N G ELIK A OK, I' m going to talk about one client in particular consum ers were. W hen you ran an advertisem ent at 8 o'clock
- a tour operator that I worked with a few years ago. Their in the evening, you knew that 40% of the country were looking
products w ere holidays, travel in Europe. The first thing you at your ads. Now it's more and more d ifficu lt First because of
have to understand is who their custom ers were. Obviously, all the com m unication channels - the Internet, satellite TV,
the end-user was the person who w ent on the holiday. But specialized m agazines - and second because people's attention
there was also a trade customer, the travel agent, who was the span is much less - they only stay on a w ebsite or watch TV for
interm ediary a short time, then they lose interest. We have to use a lot of
channels and a lot of tools. N ow it's a mix, a real mix.
IN TERV IEW ER So you had two different communication channels to
think about? IN TERV IEW ER OK. There's som ething you haven't spoken about
A N G ELIK A Exactly. For the trade custom ers we decided to yet. Do you use endorsements and sponsorship deals?
invest a lot of m oney in one specific event. In fact it was a A N G ELIK A Som etim es, although I've never done that
weekend ski holiday. personally. But it is useful. Why? Because products are so
sim ilar these days and branding is everything. One way to
IN TER V IEW ER Let me get this right. This weekend was fo r people
who worked at travel agencies, not fo r members o f the public. build a brand is to associate it with famous people that
consumers believe in and trust. You pay for an endorsem ent
A N G ELIK A That's right. Only for staff who work in the
and you buy the credibility and fame of that celebrity - it
agencies. We wrote to them all and invited them to enter a
transfers to your product. The process is very easy to
com petition. The prize was a weekend in the mountains for a
understand - you can buy anything, even people. You ju st have
hundred people. This is how it worked. On the first evening
to pay enough money. But you have to be very careful. For
we would do som e short presentations about our new
example if your com pany sponsors a sports team, the team
products, talk them through our new brochure, things like that.
must win, because if they lose, then your brand is also a loser.
During the rest of the weekend we would m ix with people and
talk to them. That way you start a personal relationship with IN TER V IEW ER I ’d like to fin ish with a completely different question.
the agents. It's much easier to contact them again in the future. What advice would you give to som eone at university who was
You also get a lot of useful m arket inform ation just by talking thinking about a career in comm unications?
to people inform ally over the weekend. It's a good investment A N G ELIK A I would say that com m unication is not to do with
because it's not very expensive - if you compare it with an market research and collecting data.
advertising cam paign in a m ajor new spaper aim ed at end- IN T E R V IEW E R What do you m ean?
users, it w as peanuts. A N G EL IK A Research will ju st tell you that the consum er wants
IN T E R V IEW E R OK. That's a nice exam ple o f using an event. Now the product they already know but at a cheaper price and with
what about promotion to the end-users - the people who actually go a different colour. It's meaningless. W hen com panies contact a
ou the holidays. com m unication agency they want creativity - they want
A N G ELIK A Yes. Here w e're talking about brand recognition. original cam paigns to make their brand m ore powerful. You
And we decided that the host way to get this was by attending need inspiration more than m arket research. You need to
fairs at exhibition centres. We worked with our client to make understand how to speak to the em otional and intuitive side of
the m axim um im pact on the stand. We created the display area people's brain.
around the stand, and we had to think carefully about how to
differentiate our products visually from all the others. Then
there's the printed materia! to design and prepare. We also
115
7 In terview w ith an aud itor IN TERV IEW ER A nd what is the one most useful piece o f advice that
you can give to a company on how they can reduce their tax?
IN TERVIEW ER Can you begin by telling me a little bit about the
CLA U D IA The most useful advice is often to change the
company you work for?
Structure of the com pany so that you change iLs legal entity.
CLA U D IA I work for an auditing com pany in Austria - we're a You set up a holding com pany so that you offset your profits
middle-sized company, not one of the big international names from one subsidiary with the losses from another. There is a
like KPMG or PriceW aterhouseCoopers. The com panies we consolidated financial statem ent for the w hole group. You pay
audit are not listed on the Austrian stock exchange. less tax. We get a lot of work by advising our clients on how to
IN TERVIEW ER OK. So how would you describe the main do this.
responsibilities o f an auditor? IN TER V IEW ER Isn't that a potential conflict o f interest? Can an
CLAUDIA Actually, an auditor's job is getting m ore and more auditing company both check that the taxes are correct and also
complex. After each scandal which involves som e fraud or advise on how to reduce taxes?
other - like Enron - there are new regulations. In the old days C LA U D IA Yes, why not? There's no conflict o f interest, We are
we just exam ined the financial statem ents and we had to state in the best position to give tax advice because we are the ones
officially that the)- gave a fair and true picture of the accounts who really know the accounts.
o f the business. Now we have to do more than that. We have to IN T E R V IEW E R OK, so fa r w e've been talking about the income
check the com pany's internal control mechanisms, and we have statement. Let’s turn to the balance sheet. What kind of internal
to make an official statem ent that no fraud is taking place. So processes do you check?
now we don't just look at the figures, but at the internal
CLA U D IA One big thing for the balance sheet is how to value
processes as well - we have to audit the way the figures are
inventory. When the time comes to do this at the end of the
collected. In fact we used to do this before as well, you can't
year - it's called 'stock taking' - we have to see how the
avoid it, but now there is a legal duty to make a statem ent
com pany values its unsold stock, its work-in-progress, its raw
about this.
materials. We have to check that they do it properly and have
IN TERV IEW ER Can you give me an exam ple o f the kinds o f things counted every single part, and that they do it at the right time.
that you do now that you didn't do before? The question of valuing unsold stock is complex: is it valued at
CLAUDIA Now we have to interview the executives of the cost price or at sale price? If it is old stock that is not worth as
company. We have to ask detailed questions about any areas much, then have they made a proper depreciation?
where they themselves think we should investigate further. So IN TE R V IEW E R Anything else on the asset side?
the senior management has som e responsibility to warn us ii CLA U D IA Receivables. Receivables get a lot of focus during an
there are any strange things going on. If there are, and they audit because if the trade receivables are not accounted for
haven't told us, then they get into big trouble. It puts more of properly, then the sales are also not correct. In fact we check by
the responsibility on them. Another exam ple would be the sending out letters to the custom ers to ask them independently
com pany's sourcing policy - who they buy from. We have to how much money they owe the company.
examine that very closely now. For example w e look for any
IN TER V IEW ER And on the liabilities side, what's a typical issue that
case where one particular supplier has provided a large
the auditor would focu s on?
amount of raw materials for a suspiciously high price. It might
CLAUDLA A typical issue is their provisions for risks. There
be the case that they are being favoured in exchange for an
may be an item for provisions for a particular risk —m aybe a
under-the-table kickback. The whole question of cash
lawsuit - but in fact the cost is already partially paid and
management is im portant to look at here: who w rote the
accounted for. A big thing with provisions is that it's a w ay to
invoice, who accounts for the cash in, and are these people the
m inim ize tax. Im agine that you have a big profit one year —
same or different. We're always looking to make sure that there
you push some of that into provisions and you reduce the
are checks in the system - more Lhan just one pair o f eyes
profit for that year and you pay less tax. And then imagine that
seeing and authorizing all the documents.
next year you make a loss. No problem - surprise, surprise,
IN TERVIEW ER OK, so now you don't just check the consistency o f
you didn't need the provisions after all and the money comes
the figures, you check what lies behind the figures.
back into the accounts and it looks like the loss isn't so bad.
CLAUDIA Yes, but everything is related. Every sum of money
IN TERV IEW ER Is that legal?
has an entry in the financial statem ents som ewhere, and a
C LA U D IA No. You have to check that the am ount for provisions
discrepancy in cash will eventually show up as a discrepancy
is reasonable.
in the income statement. A good exam ple is how you divide
IN TERV IEW ER OK, thanks. I'd like to finish with a big picture
sales incom e betw een two years: if you make a sale and deliver
question. In the auditing world people talk about 'the big fou r -
the goods in one financial year, but only receive the money in
that's Deloitte, Ernst b Young, KPMG and PwC. It used to be 'the
the next financial year, then how do you account for that in the
big five', but o f course Andersen collapsed in 2002 along with Enron.
books? You might have a top-line sales figure in the income
statem ent for one year that doesn't correspond to the cash flow. CLA U D IA That's right.
IN TERVIEW ER OK, your examples so fa r have been quite specific. IN TE R V IEW E R Four is not much choice fo r such an important area,
\What are the really big issues on the income statement? and there always seems to be some scandal or other happening. The
Am erican arm o f Ernst was banned in 2004 fo r reckless and negligent
CLA UDIA Well, the first thing is just to make a com parison
conduct; in 2005 KPMG in the States was involved in a case o f
with the previous years. If there is a big fluctuation, then
alleged tax fraud, although it never zvent to court; and in 2006 the
obviously we look closer and ask why. But I suppose the
Japanese fin an cial regulator suspended PWC's audit licence fo r tivo
biggest thing on the income statem ent is definitely tax.
116
months, The suspicion is that the regulators are going easy on these IN T E R V IE W E R Can you explain 'top-down' and ‘bottom-up'?
companies in case there's another collapse, and then there would be JO Sure. Top-down m eans looking at the economy. Looking at
even less choice. m acro them es that will support the business going forward. So
C L A U D IA You're right, and because I w ork for a medium-sized for instance if we believe in strong personal consum ption
com pany I am very critical of all that. I would like to see more trends over the next three or four years, then we will obviously
use of second-tier com panies like us in auditing the big four. be drawn towards the retail sector, or if we think Japanese auto
But another solution is com pulsory rotation - clients should be purchasing is going to be weak, we are unlikely to take big
required by law to appoint a new firm every few years. That positions in som e of the auto stocks.
would stop ihe relationship from getting too close, and the IN T E R V IE W E R And bottom -up analysis?
incom ing firm would have an incentive to look at the work of JO Bottom -up means looking at the m icro dynam ics within a
its outgoing predecessor. company. It's very com pany specific. We spend a lot of time
talking to com pany managers, looking at their balance sheet,
looking at their product pipeline, and really getting to know
8 In te rv ie w w ith a p o rtfo lio m anag er our com panies very w ell. If you want me to be more technical,
I can say that we look for com panies with a very high return
IN T E R V IE W E R You work as a portfolio m anager in an investment
on equity, or return on invested capital, and we focus very
bank based in London. Can you begin by briefly describing your job?
heavily on the ability to sustain those returns going forward.
JO OK. Investm ent banks advise com panies on financing, and
P/e is also very heavily used, as well as things like price-to-
on m ergers and acquisitions. They help to tackle the legal
book ratio. Basically these are all metrics that w e use to find
issues surrounding those things - so they are like financial
stocks where the valuation is appealing.
consultants for com panies. 1 personally work for the asset
IN T E R V IE W E R OK. But other asset m anagement companies are
m anagem ent arm of the bank - that means looking after a
doing exactly the sam e thing fo r their clients; they're looking at
client's money. Our clients are mostly pension funds.
exactly the same, information. H ow do you get an edge on your
IN T E R V IE W E R Just explain what a ‘pension fund' is.
competitors?
JO Our clients are US corporates with a global business. Any
JO Good question. W hat w e're all trying to do is look at
large com pany - or any US state authority or public authority
inefficiencies in the m arket. W e're trying to find som e
for that m atter - has a pension fund for its em ployees. It needs
inform ation som ew here that is not being discounted in the
to pay out large sum s of m oney over many years. We manage a
share price. The only way to do that is by the quality of your
part of the capital in the fund. We offer them the ability to earn
analysis, and that boils down to the quality of the analysts -
high investm ent returns and to diversify their risk.
the people you have doing the work. We have a global network
IN T E R V IE W E R You m anage ju st a part o f the capital in their fund?
of analysts and w e're very good at picking up trends before
JO Yes. There are several asset m anagers involved. A US pension
they reach others in the market. Let me give you an example.
fund will obviously include a lot of US investments, and these
W hat's happening to sales of PCs in the U S is crucially
are managed by one or more investm ent banks based over
im portant for a lot of Japanese technology-related stocks, and
there. But the fund will also hold equity positions in markets
so our US analysts talk to our Japanese analysts and we get a
all over the world. It diversifies their risk. And usually we are
very clear picture of w hat's likely to happen. It's the
the sole overseas provider - w e offer a high level of expertise in
com bination of excellent analysts w orking in a global team that
m anaging these non-US equities. In my own job, I manage just
gives us a very powerful com petitive advantage.
the investm ents in Japanese companies.
IN T E R V IE W E R OK - and what about you ? Are you one o f the
IN T E R V IE W E R And what about non-equity holdings such as bonds?
analysts?
JO The manager of their bond funds will be com pletely different
JO No, I'm a portfolio manager. The analysts work for me. They
again.
are the experts at the com pany le%rel and the sector level. I
IN T E R V IE W E R OK. So the client, the pension fun d, gives you a pot listen to all the analysts and then decide on how to make up
o f m oney to invest. Do you have to g et back to them with your ideas - the overall portfolio for the whole Japanese market. Also, I am
how much liaison is there betiveen you and them ? a little more aware of som e of the m acro factors, and I can
JO The norm al relationship is that we'II draw up w hat we call decide between sectors. I take a broader view of Lhe market.
an investm ent m andate. That puts down on paper some legal But the interaction between us is very close and very informal
restrictions on w here we can invest. There will also be - it's very much an ongoing debate,
guidelines like the percentage of the fund that can be in IN T E R V IE W E R W here do you stand on the argum ent between
emerging m arkets, or in sm aller com panies. Som etim es there fundam ental and technical analysis? I know that technical people look
will also be an ethical com ponent in the mandate - types of at charts, look at support and resistance levels, look at momentum
com panies that we cannot invest in. And then we report back and volume, and all o f those things can be done without knowing
to the client on a regular basis - m onthly or quarterly - both in anything at all about the com pany or the market. It's a very different
w ritten reports and in face-to-face meetings. approach.
IN T E R V IE W E R Right. So your job is to look at all o f the stocks listed JO Generally we don't use technical analysis here. We think it
on the Japanese stock market, and then pick the ones that you 're going has very little to offer, at least for equities. But you have to be
to buy. How do you do that? careful - for exam ple in Japan local investors do look at key
JO We do a mixture of top-dow n and bottom -up analysis. In my price points for stocks, and so autom atically it does have some
particular bank die house style is to be more bottom-up. relevance. You find that technicals are used a lot more in areas
like com m odities and currencies where people move in and out
117
of the market very quickly. And also with currencies there's company h asn't previously operated and it m akes more
very few drivers of the price m ovem ent - very few business sense to hire locally.
fundam entals to analyse like we do with stocks —and so it's IN T E R V IE W E R And then you do the interviews.
helpful to use the charts.
JU R G E N That's right, that's the final step. In manv companies
IN T E R V IE W E R Great. I'd like to fin ish with a very different the interviews will be in two rounds. First som eone from FIR
question.
will do an interview where they'll look at the general personal
JO OK. qualities of the individual, and then the line manager will do a
JN T E R V IE W E R What is a typical crisis in your job? What's your separate interview where they look at the functional skills. In
worst nightmare when you walk in at nine o'clock in the morning? the FTR interview we are looking for a positive personality, a
JO There are two big things that can go wrong. O ne is that you flexible attitude, good team-working skills, and other qualities
walk in and you find that a com pany that you have invested in like honesty and the ability to handle pressure. We want to
has a profit warning. So basically it's not going to make as know whether this person can fit in around here in terms of
much money as you or the market think. O bviously the first com pany culture, and whether they can grow with the
reaction is a big drop in the share price. H ow do you cope with business. We want to employ and promote som ebody w ho can
that? Well, you have to adjust to the new reality very quickly. be doing bigger jobs in five years' time.
Normally the biggest question is: is it a structural problem w ith IN T E R V IE W E R H ow do you assess these personal qua!ilies? You
the company, or is it a temporary decline in. earnings? If you can't quantify them.
think it's a structural deterioration, then you need to sell your JU R G E N Well it's an art, not a science, you're right, but the
holding, and to decide when - maybe very fast. If it's answ er is that you look at the track record. Let's go through
temporary, then normally you'll be looking at a good price to some questions one m ight ask to get that kind of information
add to your position - in effect looking to challenge the market out. 'W hat have been the most notable achievem ents in your
which you think has an incorrect assessm ent of events. Another career?' 'W hat sort of problems have you successfully solved
problem would be if you came in and you heard that a recently?' 'W hat have you learnt from your present jo b ?’
company was issuing a lot more shares. That m eans that the IN T E R V IE W E R O f course w e’re assuming here that the person has a
equity is diluted - with the shares you hold, you own less ol track record. What about an interview with som eone straight out o f
tire com pany than you did yesterday. That is generally university?
destructive of share prices. B ut you have to look at why they JU R G E N Well I suppose that basically we're looking for energy,
are issuing more shares - what they’ll be using the money for. determination and drive, and an interest in learning new
For instance, if they were to use that money to buy a things. There are many ways to see that, even it the candidate
com petitor and you thought it was a very good deal, then it doesn't have a career history to refer to. For example, sport,
could be very supportive o f the share price. travel, involvement in voluntary associations —all those kinds
IN T E R V IE W E R OK, thanks. of things. Then interest in current affairs and w hat's going on
in the world, interest in other cultures. Language skills is
another obvious point. And it's usually a good sign if they take
9 In terview w ith an HR director the initiative in the interview and ask us questions It shows
they've got self-confidence, they are interested, they want to
IN T E R V IE W E R Jurgen, you've worked in human resources for more
find out more.
than TO years, including as part o f the senior management team. I'd
IN T E R V IE W E R OK. Can toe talk a little about pay and
like to go through som e key HR issues with you. W e ll begin with
compensation? In the modern business world perform ance-related pay
recruitment. Can you talk me through a typical recruitment process?
is a well-established idea. But it has its critics.
JU R G E N Yes. It's a shared responsibility between the line
JU R G E N HR is not a charity department. We're not here to be
manager who has the vacancy and the HR department. The
nice to people. HR is here to help the business meet its
four steps in the process are: first of all, to define the
objectives. Bonuses are acceptable if they're seen to be fair.
requirements o f the job and prepare a job description, and
Som e sales people, for exam ple, will have as much as SO, 60 or
usually it's the line m anager w ho'll do that because they know
70 per cent of their earnings based on what they sell. Other
the job better than anyone in HR does. But HR has a role in
people will have a percentage of their pay based on their
making sure that all the legal and ethical requirem ents are met,
annual appraisal, or the general success of the business over
so as not to discriminate - even unintentionally - on grounds
the year. The system is designed to create a high performance
of race, gender, religion and increasingly age. The second step
culture. You reward good perform ance and you do not give
is to attract the candidates. You can go inside or outside the
money to people who are not delivering. People don't
company, or both. The third step is to select the candidates. You
com plain - in fact they com plain about the opposite, when a
compile a longlist w hen you've got the applications in, and
colleague is demotivated and underperform ing and yet they
then a shortlist. First consideration is normally given to
receive the same salary.
internal candidates, because opportunities for promotion are an
important motivating factor inside the company and it's IN T E R V IE W E R You mentioned appraisal just now, and o f course
important to grow talent within the organization. You'd soon appraisal is important for many things apart from salary -
lose your best people if they can't progress and develop their promotion, identifying training needs, and so on. What are the key
careers within their ow n organization. But som etim es you're issues in the appraisal process?
looking for new skills that your organization needs, or perhaps JU R G E N Appraisals, or perform ance reviews as they're often
new mindsets, or it might be a new location where your called, are absolutely fundamental to good m anagement
JIB
practice. They are usually annual, and involve looking at needs, and we suggest how their IT budget can be spent most
criteria that are agreed betw een the line manager and the effectively. It's a business approach - we see IT very much as a
em ployee beforehand. The aim is to take an overall view of the way for a com pany to add value. We don't see it as toys for the
progress that the individual has made, and then use that to boys - w e're business people, not techies.
plan that person's job for the follow ing year. But the process of IN TE R V IEW E R OK. So what kind o f solutions are we talking about?
appraisal is becom ing more com plex - people work in a global JA N A I'll tell you about applications softw are because it's the
environm ent in different countries and work in a matrix most interesting. But I do w ant to em phasize that applications
organization with different m anagers. We have to collect data software cannot be seen in isolation - it sits on top of system s
from a num ber of sources in order to discuss with the software like the operating system , and also the hardware.
employee how things have been this year, w hat's gone well, IN TE R V IEW E R Is that called the platform?
what hasn't gone well, where do you think you need to
JA N A Yes, and it's im portant to know w hich applications can
improve, w hat skills or training you might need for the future
run on your platform. OK, let's begin with ERP, because ERP is
and so on. That joint discussion will then result in some kind of
the umbrella. ERP stands for Enterprise Resource Planning. It
perform ance rating, and this w ill often be directly linked to pay
integrates and autom ates the business practices of the
increases or opportunities for prom otion.
organization. It's modular. It can include m odules for the
IN TERV IEW ER W hat is the division o f responsibility between HR supply chain, manufacturing, operations, sales, distribution,
and the line m anager in the appraisal process? finance, e-com merce, everything. It has functionality right
JU R G E N The line manager knows how to rate functional across the organization.
performance. We don't do that. O ur role is to develop the IN T E R V IEW E R Can you give me an exam ple o f one specific module?
appraisal tools and train the m anagers in how to use them, to
JA N A A good exam ple is CRM, Custom er Relationship
make sure that a w ide range of skills are being assessed, to
M anagem ent. In the past, inform ation about one individual
make sure that the process is identifying and fast-tracking
custom er could have been anywhere on the system - financial
future leaders, and quite sim ply ju st to monitor that it7s being
information in one database, sales inform ation in another
done. But I w ant to em phasize that the employees are fully
database, and maybe custom er support interactions not
involved and they them selves are often the best people to
recorded anywhere - som eone on a helpdesk just dealt with a
judge their own job perform ance.
phone call and then forgot about it. With CRM you can bring
IN TERV IEW ER Right. Finally I'd like to turn to the question o f
all that together and have a single view of your customer. It
motivation. We talked earlier about salary and about opportunities fo r
means that w hoever comes into contact with them - pre-sales,
promotion, but we know that these are not the only way to motivate
post-sales, accounts, w hoever - they all see the sam e
people.
information, and they all log the results o f their interaction for
JU RG EN Absolutely. A part from the tangible rewards there are others to see. You can also analyse inform ation from all the
what I would call intrinsic motivators. The first is autonomy. custom ers together, and that helps you to see trends in buying
This is the am ount of control that you have over your work. behaviour, make forecasts and so on. From the custom er's
The responsibility that you have. The second is variety - a lot point of view they get a more unified and intimate experience -
of evidence suggests that different types of work, even job it feels like they are dealing with the sam e company, regardless
rotation, can help im prove motivation. The third is the extent of the point of contact.
to w hich the job uses your abilities. An individual will enjoy
IN TE R V IEW E R Is there any downside fo r the customer? I'm
doing a job that requires them to use abilities that they have
thinking about privacy issues, or aggressive direct m arketing from a
and that they value. The fourth aspect, I think, is consistent
sales person who knows everything about you.
meaningful feedback. People w ant to know how they are doing
JA N A You have to be careful. It's true that it's very easy to see
- they want to be advised from time to time about their own
som eone's buying habits. You can easily see a history of what a
perform ance and they w ant also to be involved in evaluating
custom er has bought, and when, and also w hy - because sales
their own perform ance. The fifth thing I think is the belief that
staff will have made notes about the sales conversation and
the task is significant. Nothing is more dem oralizing than to
entered them on the system . And you're right, the next step
feel that your com pany doesn't really care about the project
from that is to anticipate what the custom er m ight want to buy
you're working on. And notice that all these five things are
and make a cold call to them about a new product or
exactly the kind of things that can be discussed in an appraisal
something. But custom ers don't like that, and if you overdo it,
interview.
they resist and you lose their trust.
IN TERV IEW ER Right. That's a very complete answer. Thank you
IN TE R V IEW E R You said that ERP was modular, and you've given
ven/ much.
us an exam ple o f one module. Can you buy just one m odule and
nothing else?
10 In terv ie w w ith an IT co nsultant JA N A You can, but it w ouldn't make sense. If you were a small
com pany and you just wanted CRM, you would buy a stand
IN T E R V IEW E R You work fo r an IT consultancy. Is that right? alone CRM package. ERP is for large organizations - we use
JA N A That's right. We offer IT solutions - software, hardware, the big vendors like SAP and we recom m end a w hole series of
system integration, m aintenance and support, consulting - their modules across the different business departments.
everything. We don't represent any one hardware or software IN T E R V IEW E R Can you give me one more exam ple o f an ERP
com pany - we can recommend to our clients whatever solution module, besides customer relationship management?
is best for them. So we talk to our clients, we analyse their JA N A Yes, a good exam ple that shows the im portance of
119
integration across the organization is document management. JA N A The big trend is the way that everything is moving to the
In the early days of com puting people talked about the network - all kinds of data and all kinds of software At the
paperless office, but in fact the amount ot paper increased end of the day all devices are the same - just a screen, a means
because of all the print-outs and photocopies. Now we really of input like a keyboard, and a connection to the network. It
can have a paperless office. A document - like an email or a doesn't matter whether we're talking about a PC, a mobile
letter or a legal contract or a report - is purely in electronic phone, a fixed-line phone, a gam es console, a television, a
form and with document managem ent you can track and store security camera in your hom e, or som ething built in to your
it. For example, vou can specify exactly who should sec it, and fridge door in the kitchen. You don't need much com puting
what they should do with it, and where it should go next. Take power in the device its e lf - ju s t a connection to the network.
a sales contract: the sales person creates the contract based on Any data or software that you need is right there on the
an existing template, then it is sent to a financial person for network ready to access and use. It make's working' from home
checking, maybe a legal person also has to see it, and the sales easy, or w orking from a hotel room, or working off-site with a
director will also want to see it. Each person might want to client. All you need is a device and, for security, a VPN - a
modify it, in which case the changes have to be flagged up and Virtual Private Network.
the document sent back to everyone else for checking again. IN TE R V IEW E R A VPN?
Finally all the key decision-makers have to sign it electronically JA N A W hen you connect to a private company network using
to say that it's OK. It's a complex process, and document the public telecomm unications infrastructure it's called a
management software makes it all very easy. virtual private network. The VPN gives vou security with a
IN TERV IEW ER OK, so a big company has all these different firewall, encryption and so on.
modules. But not everyone in the company needs the same IN TERV IEW ER It's clear that things like laptops and mnbih phones
information. There's a huge amount o f information on the system - can talk to the network and to each other. But what about other
but that's not the same as useful knowledge. e veryday household objects - like your fridge?
JANA You're right. And so we have another kind of software, JA N A You need wireless connectivity and an IP address, i hat's
called a portal, that can access every application but that is set all. With an IP address you have a unique identification on the
up individually for different people so that they only see the network.
information that is useful for them. There's also som ething new IN TERVIEW ER It sounds like that film ‘The Matrix'. In the fu tu re
called 'm eaning-based com puting' that includes advanced every object will be on the network and we will be able to experience
search of a com pany's databases, knowledge management and everything from everywhere. W hoever controls the network controls
so on. It allows managers to analyse unstructured information. reality.
IN TERVIEW ER Right. That's very interesting. To finish, I'd like to JA N A It's going to come sooner than you think.
ask you about the future. What do you think are going to be the
trends in your industry over the coming years?
120
A n sw e r Key
1 In d u strie s a n d co m p a n ie s Exercise 3.3
1 human resources 9 production
Exercise 1.1 10 legal
2 customer services
1 freight 2 household 3 appliances 4 apparel / beverages 11 shipping
3 quality control
5 facilities 6 real estate 7 brokerage 8 utilities 12 finance
4 research and development
Exercise 1.2 5 public relations 13 marketing
1 equipment 2 machinery 3 device 4 appliance 6 project management 14 accounts
7 administration 15 purchasing
Exercise 1.3 billing 16 procurement
8
1 consumer staples 2 consumer discretionary
Exercise 3.4
Exercise 1.4 market research / cost centre / earnings growth / management hierarchy
1 ExxonMobil / Oil and gas / customer needs / product portfolio / core business / distribution channel
2 PwC / Auditing / mission statement / market share / shareholder value / brand loyalty
3 Citigroup / Diversified financial services
4 Intel / Semiconductors and semiconductor equipment Exercise 3.5
5 Proctor & Gamble / Household and personal products 1 market research 6 cost centre
6 GE / Industrial conglomerates 2 core business 7 earnings growth
7 Pfizer / Pharmaceuticals, biotechnology and life sciences 3 shareholder value 8 management hierarchy
8 Wal-Mart / Food and drug retailing 4 product portfolio 9 mission statement
9 UPS / Air Freight and logistics 5 brand loyalty 10 distribution channel
10 Cisco / Communications equipment Exercise 3.6
Exercise 1.5 1 check 2 coordinate 3 assign 4 implement 5 control
1 raw materials / finished goods 1 fabrication 6 ensure 7 adapt 8 monitor 9 evaluate 10 determine
2 Consumer durables / household appliances
Exercise 3.7
3 Non-durable goods / food and beverages
1 state-of-the-art 2 tailor-made 3 one-stop 4 depth
4 business solutions
5 outdated 6 debt 7 w orkflow 8 range
Exercise 1.6 9 overhead (BrE overheads) 10 climate 11 alliance
1 Board / senior management team 2 venture / enterprise 12 transfer 13 start-up 14 barriers 15 shortage
3 debt / liability 4 self-employed / freelancer
Exercise 3.8
5 firm / partnership 6 m erger/acquisition
1 lack (or shortage) 2 over-reliance 3 reps (representatives)
Exercise 1.7 4 facility 5 saturation
1 issue 2 run 3 appoint 4 guarantee 5 underwriting
Exercise 3.9
6 reinvested 7 held 8 constraints
2
Exercise 1.8
Exercise 3.10
1 d 2 h 3 g 4 e 5a 6b 7 f 8c
Specific, Measurable, Agreed, Realistic, and Time-specific
121
Exercise 4.6 Exercise 6.5
1 Innovator 2 Evaluator 3 Specialist 4 Implementer 1 improvement 2 culture 3 process 4 marketplace
5 Shaper 6 Finisher 7 Coordinator 8 Team worker 5 competitors 6 metrics 7 cycle 8 resistance
9 Promoter
Exercise 6.6
Exercise 4.7 first-rate, high, top, outstanding q u ality/lo w , poor, inferior quality/
1 inaccurate / imprecise 2 careless 3 innovative / radical uneven, variable quality
4 indecisive / hesitant 5 inefficient / wasteful assess, evaluate, measure, test quality / demand, insist on quality / keep
6 unenthusiastic / bored 7 inflexible / rigid 8 laissez-faire up, maintain, preserve quality
9 hard-working 10 impatient 11 impolite / rude 12 unreliable begin, go into, start up production / boost, increase, ramp up, speed up
Exercise 4.8 production / cut back (on), reduce, scale down production
1 sensitive 2 sensible be in charge of, supervise the process / keep track of, monitor the
process / rationalize, simplify, streamline the process
5 O p e ra tio n s m a n a g e m e n t excess, spare capacity / full, maximum, peak, total capacity / limited,
reduced capacity
Exercise 5.1
carry, have, hold, keep inventory / dispose of, get rid of, reduce
1 lead 2 concept brief 3 feasibility 4 vulnerability
inventory / reorder, replace inventory
5 first-tier / upstream 6 Procurement / sourcing 7 vendor
8 core competencies Exercise 6.7
1 cover a wide range of activities 2 determine customer needs
Exercise 5.2
3 deal with complaints 4 be adopted worldwide 5 keep records
1 technical expertise 2 a high level of productivity
6 carry out internal audits 7 be expensive to implement
3 fast throughput 4 a frequently updated product range
8 be dedicated to improving processes
5 downside risk 6 vertical integration 7 economies of scale 9 measure performance against a standard
8 an error-free process
10 match the best practice of your competitors
Exercise 5.3
1 draw up a bill of materials 2 reduce design complexity 7 M a r k e tin g s t r a t e g y a n d P r o d u c t d e v e lo p m e n t
3 migrate an operation to the web 4 put upward pressure on prices Exercise 7.1
5 have a competitive advantage 6 roll out a new product
1 quantitative / qualitative 2 end-user 3 value-for-money
7 carry out a feasibility study 4 benefits/features 5 trademark 6 mark-up / breakeven
8 turn an initial idea into a concept brief
Exercise 7.2
Exercise 5.4
1 product lines 2 product mix 3 brand names
1c 2 f 3d 4 i 5a 6 j 7 g 8k 9b 4 brand loyalty 5 brand awareness 6 market leader
10 h 111 12 e 7 market share 8 profitability
Exercise 5.5 Exercise 7.3
1 specifies 2 builds 3 tested 4 compile 5 hooked up 1 making a loss 2 early adopters 3 similar offerings
6 drilling 7 welding 4 advertising budgets 5 differentiate products
Exercise 5.6 6 reaches saturation 7 consumer tastes
Exercise 7.7
6 Production sales campaign, drive, promotion / sales figures, volume / sales force,
Exercise 6.1 personnel, staff, team
1 bottleneck 2 throughput 3 capacity utilization disappointing, poor, weak sales / export, foreign, overseas sales / global,
4 flt-for-purpose 5 value-for-money 6 reliability international, worldwide sales
7 durability 8 defect bring out, introduce, launch a product/ discontinue, take ... off the
market, withdraw a product / improve, modify, upgrade a product
Exercise 6.2
attractive, fair, reasonable price / exorbitant, high, inflated price / retail,
planning 3, sequencing 6, scheduling 5, dispatching 2, loading 1,
selling price
monitoring 4
agree on, agree to, arrive at, establish, set, work out a price / bring
Exercise 6.3 down, cut, lower, reduce a price / increase, push up, put up, raise a price
1 steel making 2 an automobile plant 3 clothing manufacture booming, expanding, growing, healthy, strong market / depressed, flat,
4 aircraft manufacture 5 construction of a building sluggish, weak market / niche, specialist market
Exercise 6.4 be forced out of, withdraw from the market / break into, enter the
1 downtime 2 changeover time 3 lead time 4 cycle time market / corner, dominate, monopolize, take over the market
5 overtime 6 set-up time 7 time-to-market 8 lag time
122
8 Distribution and Promotion 10 Financial markets
Exercise 8.1 Exercise 10.1
1 fulfi ment 2 outlet 3 prospect 4 billboard 1 securities 2 equities / shares / stocks 3 bonds
5 repeat purchases / cross-selling 6 middleman 7 warehouse 4 money market instruments
S merchandising Exercise 10.2
Exercise 8.2 1 mutual 2 dividends 3 principal / term 4 treasury
1 custo m er/client 2 catalogue / brochure Exercise 10.3
3 promotion / advertising 4 commercial / spot 1 tracker fund 2 capital growth 3 fixed rate 4 junk bond
5 endorsement / sponsorship 6 agent / broker
5 risk management
Exercise 8.3 Exercise 10.4
1 brand identity 2 convenience store 3 direct mail
1 first group: booming / bull / rising / strong
4 distribution channel 5 in-store display 6 press release
second group: bear / depressed / falling / weak
7 product placement 8 public relations
2 first group: acquire / buy / purchase
Exercise 8.4 second group: have / hold / own
1 Prospecting 2 Approach 3 Presentation 4 Demonstration
Exercise 10.5
5 Closing 6 Answering objections 7 Follow-up
1 S&P 2 Nasdaq 3 Dow 4 DAX 5 CAC 6 FTSE
Exercise 8.5
Exercise 10.6
change 5 and 6 so that 'Answering objections' comes before 'Closing'
a) 2 b) 1 c) 4 d) 3
Exercise 8.6
Exercise 10.7
I newspapers 2 magazines 3 television 4 radio
1 growth 2 income 3 income + growth
5 outdoor 6 direct mail 7 internet
Exercise 10.10
9 Accounting and financial statements 1 market capitalization 2 earnings growth 3return on equity
Exercise 9.1 4 p/e ratio 5 dividend yield
i own / owe 2 depreciation / written off / amortization Exercise 10.11
3 receivable / payable 4 inventory 5 accrued 6 leverage 1 market capitalization 2 p/e ratio3 earnings growth
Exercise 9.2 4 dividend yield 5 return on equity
1 variable costs 2 direct costs 3 fixed costs 4 indirect costs Exercise 10,12
5 operating costs 6 capital expenditure 7 marginal costs 1 resistance 2 support 3 volume 4 breadth
Exercise 9.3 5 momentum 6 trading channel 7 leadership 8 liquidity
1st group: costs, expenditure, expenses, spending Exercise 10.13
2nd group1earnings, profit 1 buyer 2 seller 3 exports 4 imports 5 raises 6 rises
3rd group: income, revenue, sales, turnover 7 Reserve 8 Bank
Exercise 9.4
Preparation o f accounts: ledger, trial balance, invoices 11 Human resources
Profit and Loss Account; cost of goods sold, EBITDA, operating expenses Exercise 11.1
Balance Sheet: accounts payable, shareholders' equity, current assets 1 payroll 2 discrimination / disability 3 in-house
Exercise 9.5 4 headhunting 5 shortlist 6 track record 7 appraisal
1 g 2c 3 h 4a 5b 6e 7 d 8f 1a 2c 3b 4 e 5 d 6 f 7 j 8 i 9g 10 h
125
6 a / b X ('I do mind’ means 'it is a problem for me') c / Exercise 18.6
7 a X (too dry and unenthusiastic)
1 We really can't afford to ignore such a good opportunity.
b X (used to respond to a request)
2 I'm absolutely certain that we're in a far better position now.
c/
3 Actually, it's (It's actually) much cheaper to use an outside firm for all
Exercise 17.3 the graphic design work.
1a 2d 3b 4 h 5e 6c 7 f 8 9g 4 There is absolutely no truth at all in w hat they are saying - their
whole story is complete lies.
Exercise 17.4 5 It's a highly risky project - I strongly recommend that w e take the
1 W ow, that's fantastic. 2 You're kidding, right7 greatest care.
3 How awful. I'm so sorry. 4 Poor you. 6 It's just so difficult to know whether the advertising campaign is
5 You must be delighted! 6 Yes, of course. Sure. actually going to work.
7 W hat a nightmare! 8 That makes a change. 9 Well done1 7 I fully support the entire Board - they are doing an extremely
10 That's great news! Congratulations! important job.
Exercise 17.5 8 I really hope we see a significant rise in sales at Christmas - even
more than last year.
1 Are you? Lucky you, I wish I was going! Whereabouts?
9 W e really can't decide so quickly - the issue is far too important.
2 Did you? Congratulations you must be delighted! W hat are your
10 I completely agree - upgrading our entire computer network wil
responsibilities going to be?
take us way over budget.
3 Were they? How awful for them. Which areas were affected?
4 Is it? Three days - what a nightmare! Can I give you a lift anywhere?
5 Did he? That's not like him. W hat did the boss say? 19 S ty le - p o lite n e ss a n d so fte n in g
Exercise 19.1
Exercise 17,6
1 It seems we have a slight problem.
1 Have you got a moment? 2 bear with me
2 Could I just interrupt for a moment? (or Could I interrupt just for a
3 was wondering if you could help me 4 do my best to sort it out
moment.)
5 have an apology to make 6 didn't do it on purpose
3 There might be just a small delay.
7 happens all the time
4 I understood that you could deliver by the end of March.
Exercise 17.7 5 I'm afraid our competitors are not very cheap
1 Excuse me 2 Sorry 6 W ouldn't it be better to ship to Rotterdam?
7 There are one or two things I wanted to discuss.
Exercise 17.8
8 I am assuming that the paperwork is okay.
1 make a move 2 so soon 3 rush off 4 How about 9 I'm sorry but we're not very happy with the quality of this repair.
5 must be going 6 realty nice meeting 7 thank you so much 10 We were hoping for a slightly more flexible response.
8 really appreciate it 9 Don't mention it 10 my pleasure 11 I would be grateful for the chance to have a look round your factory.
11 safe trip 12 say hello to Isabel for me 13 best of luck 12 I w as wondering if I could have (take) a quick look at your designs
14 Keep in touch for next season.
13 With respect, you don't seem to understand how important this is.
18 Style - clarity and emphasis 14 We would appreciate it if you could give us a little more time
Exercise 18.1 15 I suppose I could speak to my boss about it, but I'm not promising
1 We will need to ask for more help. anything.
2 You can choose your own colour. 16 Apparently, their business is not going very well.
3 These days the unions have less influence on government. 17 As far as I know there are (or there’s) just a couple of technical
4 My boss fired Claudia because of her poor performance. problems to sort out.
5 We expect commodity prices to rise. Exercise 19.2
6 Because their needs are so specific, let's check the details very 1 I mean 2 At least 3 Or rather 4 That's to say
carefully.
Exercise 19.3
Exercise 18.2 1: I was given this list just last month.
1 I know how w e can use better credit control to improve our cash 2: Unfortunately, w e had to raise all our prices by 4 % from the
flow. beginning of this month.
2 The new rules say w e must not use the company PCs for personal 3: Well, you could switch to another product with a slightly lower
emails. performance.
3 While w e were talking she asked a lot of questions about the recent 4: If you did that, you'd save money.
changes in our product range. 5: But that's not going to be easy.
4 Your line manager will decide your bonus, even though the HR 6: How many more units were you thinking o f7
department is officially responsible. 7: I'm sorry, but an increase of that size would not be enough to give
Exercise 18.3 you a bigger discount.
W e have not definitely determined the causes for the decline in sales for Exercise 19.4
March. We know, however, that during this period construction work on 1 w e are willing to do 2 suitable for resale
the street limited the number of customers who entered the store. In 3 this is dearly stated 4 terms and conditions
addition, w e know that promotion efforts were reduced as a result of 5 with the relevant section highlighted 6 in the circumstances
staff changes in the advertising department. 7 consider the sale final 8 within ten working days
Exercise 18.4 Exercise 19.5
Thank you for your email regarding invoice D970. W e will give you until Paragraph 1: b, e
May 15 to pay the outstanding amount.
Paragraph 2: c, a, h, g
If you have any further problems please contact us immediately.
Paragraph 3: d, f, i
(or Please contact us immediately if you have any further problems.)
126
ANSW ER KEY
Exercise 22.3
20 Developing an argument - linking words 1 1 Up to 2 In 3 To /e xte n t 4 To / degree 5 To / best
Exercise 20.1 6 As / as / know
1 and / furthermore / moreover 2 but / however / nevertheless Exercise 22.4
3 so / therefore / consequently 4 because / since / as
1 W hat companies need is a set of standards.
Exercise 20.2 2 W hat I'm talking about is a completely new approach.
1 Since 2 Due to 3so as to 4 so that 3 W hat w e want is good quality at competitive prices.
5 In spite of the fact that 6 In spite of 7 while 8 though 4 W hat I would like (is) to have (is) a chance to speak to him.
5 W hat I will do first is give you the history of the project.
Exercise 20.3
6 W hat we mustn't do is go over budget.
1 Because, because of 2 In order that, in order to 7 W hat w e should do is employ more local staff.
3 Although, despite4 Although, whereas
Exercise 22.5
Exercise 20.4
1 Never before has business ethics been such a hot topic.
1 as / since 2 due to / as a result of / owing to 3 to / so as to
2 Under no circumstances can w e accept this deal.
4 so / so that 5 though / even though / in spite of the fact that
3 On no account should this information be shown to the press.
6 in spite of 7 while
4 Only in some respects do I agree with you.
Exercise 20.5 5 Only on rare occasions do we dobusiness without a bank guarantee.
1 But 2 Also 3 because of 4 So Exercise 22.6
Exercise 20.6 1 a technical point of view 2 a commercial point of view
1 However 2 Furthermore 3 due to 4 Consequently 3 a political point of view 4 an ethical point of view
5 a legal point of view
Exercise 20.7
1 Broadly speaking / Therefore 2 On the whole / However Exercise 22.7
3 As a matter of fact / For instance 4 In fact / To a great extent 1c 2 b 3 a
Exercise 21.4
23 Writing paragraphs
1 Unless 2 Provided that 3 otherwise 4 whether Exercise 23.1
5 in case a i b 4 c 2, 3 d 5 ,7 e 6, 8
Exercise 1 Exercise 3
a 7 b 2 c 4 d 1 e6 f 5 g 3 1 motivating factor / grow talent 2 honesty / handle pressure
3 meet its objectives / fair 4 rewards / intrinsic
- Exercise 3
1 air conditioning 2 handling 3 escalators 4 fire-resistant 1 0 In tervie w w ith an IT co nsu ltan t
5 voltage 6 artificial 7 cabling 8 acoustics
Exercise 2
4 Interview w ith a design en g in eer 1 ERP 'Enterprise Resource Planning': an application that integrates and
automates the business practices of the organization
Exercise 1
2 CRM 'Customer Relationship Management': a module of ERP that
a6 b 1 c 4 d 5 e7 f 2 g 3
allows you to bring together information such as financial
Exercise 3 information, sales information, customer support interactions to give
1 window envelope 2 iterative 3 Design for manufacturing you a single view of your customer
4 Over-designed 5 Computer Numerical Control 6 Tolerance 3 VPN 'Virtual Private Network': a secure connection to a private
company network using the public telecommunications infrastructure
5 Interview w ith a m arketin g d irector
Exercise 3
Exercise 1 1 integration / support 2 electronic / track 3 devices / means
1 End-u ;er and construction sector
2 Train the service engineer in how to ask the end-user questions after
they re repaired their appliance
3 Include a question about kitchens in questionnaires in magazines
Exercise 3
1 F 2 F 3 T 4 T 5 F
128
Business English handbook
Business English H andbook is a com prehensive self-study and
reference book of business language for learners of English at an
upper-intermediate or advanced level. It provides intensive
vocabulary input and practice followed by optional writing and
speaking activities.
9781405086059