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CHAPTER 1

WHAT IS BUSINESS?

A business is an organization. It produces goods and service to make a profit.


Businesses may be divided into goods producing and service producing terms.
The American business system is known as private enterprise because the
factors of production and the businesses are owned by individuals. This system is
based on right to private proporties.
There are four factors of production which include machinery, building, tools
and means of transportation to produce goods and services in the private enter-
prise system. The factors of production are obtained from the individuals owning
of the businesses in exchange for income.
The human element is the core of business. Business needs people as owners,
managers, and consumers. People need business for the production of goods and
services and the creation of job opportunities.
The person responsible for operating the business is called a manager. The
manager may be the owner or a professional employed by the owner. A
professional manager attempts to achieve the objective of the business.
Employees supply the skills and abilities to provide a product or service. They
expect to receive a wage or salary for the use of their skills and abilities.
The target of business is consumer. A consumer is a person or business who
purchase a good or service for personal or organizational use. The consumer, in an
economic system, wants better goods and services. A business enterprise attempts
to satisfy such needs and desires or wants.
The most common motive for setting up a business is the profit motive. It is
the desire to make a profit as a reward for taking risks of running a business.
Profit or surplus income is total sales minus the costs of production. It is a
measurement of one’s success. A profit is not always gained. Sometimes the
business suffers losses.

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Task 1
Give your answer to the following question about the passage briefly and in
complete sentences.
1. What is the products of a business?
2. What do you call the business owned by individuals?
3. What are the four factors of production?
4. Why human elements is called the core of business?
5. What do the business owner expect?
6. What is a manager?
7. What do employees do to provide a product or service?
8. What is the business target?
9. What is consumers want?
10. What do consumers do to get their needed?

B. WRITING
Task 1
The following extract is from A.E.L.’s finansial adviser’s Report on Sona
electronics, a company A.E.L. has been Considering taking over. Choose the
correct word from the list below to fill in the blanks.

Liabilities Chairman Employees Outstanding Ordinary


Public Assets Costs Competitors Shares
Dismiss Take-over Board Investment Turnover
administrative Management

Sona is a small 1________________ company run by a 2____________of seven,


which consists of a 3_____________, managing Director and five other members.
Its tool 4____________ including present stock are value 4 5 million, and it
about 100 5__________ including 6_____________ staff and those working in
the factory.

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At present 7_________________ shares stand on the market at 273 having
fallen 340 over the post year. Its 8___________ declined by 19 percent over the
last finnacial period and it has 9___________totalling $ 2 million in
10_____________debts.
The company’s decline is due to bad 11______________ and lack of
12___________ in the capital equipment, so that its production 13_____________
are high compare d to those of its 14__________________.
However, I feel we should proceed with the proposed
15_______________ while the 16_________________stand at their present low
level, as we could integrate Sona’s production with our own organization which
now buys the units Sona produces on the market. This would mean at least a 40
percent reduction in price for us, and rather than needing to
17______________any of Sona’s employees, with organization, we could expand
the plant.

Task 2
Match each of the word in the left with that in the right list to produce
meaningful phrases

1. Organizational a. Authority 1.
2. Formal b. hierarchy 2.
3. Classifying c.types 3.
4. Relationship d. objectives 4.
5. Authority e. network 5.
6. Staff f. environment 6.
7. Personal g. activities 7.
8. Social h. organization 8.
9. Work i. sructure 9.
10. Organization j. relationship 10.

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LANGUAGE FOCUS
A. Meeting people
How do you do? I’m Sisca. I’m from Java
How are you? This is my friend. Her name is Ina
Hi / hello She is from Jakarta.
Nice to meet you
Welcome to......
Thanks

B. Pronoun

Subject Object Possessive Possessive Reflexives


Adjective Pronoun Pronoun

I Me My- Mine Myself


You You Your- Yours Yourself /
Yourselves
We Us Our- Ours Ourselves
They Them Their- Theirs Themselves
He Him His- His Himself
She Her Her- Hers Herself
It It - Its Itself

Singular anyone, anybody, anything, everyone, everybody,


Pronoun everything, someone, somebody, something, one,
nobody, no one, nothing, each, either, neither, many
a.........

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Plural Pronoun both, few, many, others, several

Here are two rules for making introductions:

A lower ranking employee


is introduced to a higher
ranking employee.

Higher
Status
A younger person is
Introduced to an older
person.

Task 1
Work with 2 classmates. One of you is speaker A, the other two are speaker
B and speaker C. Speaker A introduces speaker B to speaker C. Use your
real name.
POSITIONS DEPARTMENTS
Manager of Sales International Sales Department
Assistant Manager Personnel Department
Administrative Assistant Shipping Department

A : , I’d like you to meet , this is


Name B Name C Name C
______________

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Name B
B : How do you do, ?
Name C
C : How do you do, ? It’s nice to meet you
Name B
A : is the of
Name B Position department
B : What do you do?
C : I’m the
Position
B : I’m sorry. What do you do ?
C : I’m the
Position

Task 2
Fill in the blank with suitable pronoun
1. Where are you?...........................am in canteen
2. Reinata is Billy’s sister . ........................age is 16
3. Mario has a great holiday. .... enjoy..................
4. Cindy has a cat. She feed ..............twice a day
5. It is not Shanti’s mistake. You can’t blame................

Task 3
Make six sentences from these phrases. Use my, your, his, her, our, their
Company has five factories is this what’s
Phone number job? Home in West Java
Office is in Paris address is Jl. Maghony 24, Palembang

1. ......................................................? He is an engineer
2. She works in France. ....................................................
3. I live in the town centre. ................................................

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4. They live in France on the coast. ...................................
5. .......................................... No, it’s Jack’s
6. ..........................................We make products for the home.

Task 4
Put the appropriate pronouns on the blank space

1. Tony designed the system without any help. He does it by_______


2. It’s not my books. You can’t through ________away
3. Wanti is my boss. _________ is kind to ________ staff. My boos and I have
worked together for years. _________ often do a great job.
4. I understand that your company has an office in this city. Our company has one
three too. ______is in the south of the city. Your company is near here, isn”t
_____?
5. Marryana called in. _______ left two packages for Bobby. Can you take_____
to Bobby in _____house?
6. Fernanda makes life difficult for _______. _______ always complains on
________ works
7. Mr Bento! Mrs Bento phoned ______an hour ago. ______asked me to
ask_________ to phone _______back as soon as _________can.
8. JJD company make plastic joints. _____have supllied our company, Thomson
Ltd, for years. They have always provided _______with good service.
9. We complained about our orders. _______were very poor quality. We
telephoned your sales. We told ________about the problem and
_______said_______ would be resolved easily.
10.The office supplier phoned a moment ago._________said the goods were
damaged in transit and that responsibility is not_________. In any case, the
goods are useless. We must not pay for________

C. SPEAKING
Task 1

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Read this dialogue and choose the best answer:
Leslie : 1) Hello?/Hi?/Yes?
Cameron : Hi, is this Leslie?
Leslie : Yes. 2) Who are you/And you/Who’s this?
Cameron : It’s Cameron here. Is Maria 3) inside/in/where?
Leslie : No, she just 4) came/stepped/gone out for a moment. Can I
take a message?
Cameron : Yes, thanks. 5) Could you/Would you mind/Can you be ask
her to meet me at the Capitol 4 movie theatre at 7 pm
tonight?
Leslie : Sure. Just let me write that down. Oh, Cameron. Could you
6) hold off/holding/hold for a second? I have to take
another call.
Cameron : No problem.
Leslie : Hi. Sorry about that. Now could you please 7) say
again/repeat/review that information? I didn’t have a pen
handy.
Cameron : Sure. It’s the Capitol 4 theatre at 7 o’clock.
Leslie : Okay, I’ve got it. Is there anything else?
Cameron : No, that’s great.
Leslie : Okay. Uh-oh, there’s my other line again. I’d better
8) call/run/hang on.
Cameron : Okay, thanks again. Bye for now.
Leslie : 9) Bye bye/Bye too/See you again.

Task 2
DOING A ROLE-PLAY :Make a dialog with your friend, by talking about
your identity

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CHAPTER 2
THE FOUNDATION OF BUSINESS

A. READING COMPREHENSION
Read the text carefully
Economics is the study of how a society hooses to use scarce resourcs to
produce goods and sevices and to distribute them to people for consumption. A
nation’s resources consist of natural, capital, and labour resources.
Natural resources are provided by nature in limited amouts; they include
crude oil, natural gas, mineral, timbe, and water. Natural resources must be
processed to become a product or to be used to produce other goods and sevices.
For example, trees must be processed into lumber before they can be used to build
homes, shopping malls, and hospitas.
Capital resources are goods produced for the purpose of making other
types of goods and sevices. Some capital resource area calles current assets. They
have a shors lifr and are used up in the production process. These resources
include fuel, raw materials, paper, and money. Long-lived capital resources,
which can be used repeatedly in the production process, are called fixed capital.
Examples include factory building, machinery, and means of transportation.
Labour resources represent the human talent. To have value in the human
talent and labour force, individuals must be trained to perform either skilled or
semiskilled work. For example, the job of a manager requires extensive training,
whereas only minimal training is needed to operate a sevices station’s gas pump.

Goods and services


The resources are used to produce goods and services that will satisfy people’s
need and wants. Goods are tangible items made by businesses, such as shoes and

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cars. Services are intangible items, thing that can’t be held, touched, or seen,
provided by organization for their customers. For example, medical care and hair
cutting. Needs are goods and services people must have simply to exist, such as
food, clothing, and shelter. Wants, on the other hand, are things they would like to
have but do not absolutely need for survival, for example, video recorder,
cassettes and luxury vacation. Goods and sevices are produced and designed to
satisfy wants of consumers.

Resource Allocation
The process of choosing how resources will be used to meet people’s need and
wants is called allocation. All countries face the economic problem of limited
resources and unlimited, we must make choices about how to use these scarce
resaources. We have a basic for choosing the way of using and allocating the
resource to satisfy our wants and needs.
The allocation involves the distribution of goods and services to consumer.
Allocation also involves an exchange (e.g. money, goods, time, service) between a
business and a consumer. The business earn a profit and the consumer is satisfied
with the good or service. The exchange provides mutual benefit.

Task 1
Answer to the following question in complete sentences.
1. What is economics?
2. What do a nation resources consist of?
3. What do natural resources include?
4. What do people do to natural resources in preparing them for use?
5. What are capital resources?
6. What are current assets?
7. What are fixed assets?

B.WRITING

Task 1

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Fill in the gab with suitable word

automatic call dial dialing tone directory engaged exchange


operator receiver subscriber’s number trunk code Yellow
Pages
You need to make a telephone 1)________ . Then make sure you have your
correspondent’s number close at hand. Telephone numbers consist of a 2)
____________ and a 3) _____________. If you don’t know your contact’s
number, look it up in the telephone 4) _________ of the 5) ____________. The
latter contains the telephone numbers of businesses and traders in your area. The
next thing you do is lift the 6)____________ and 7) _________ or press the
number. You will then hear a 8)______________. If the number is 9)
_____________ you will hear an engaged tone. Bad luck, you will have to ring
back later. In a company, the first person who answers the phone will often be the
10)____________. He - but still more often: she - will put you through to the
person you require. The operator operates the telephone 11) ___________.In an
increasing number of businesses however manual exchanges are replaced by
direct lines or 12) _____________ exchanges.

LANGUAGE FOCUS
A. The personality of person
Aggressive moody talkative amusing
Polite thoughtful calm reliable
Wise cheerful reserved friendly
Sociable lively sophisticated stand alone

B. Question forms:
1. W and H questions are question that require an explanation.
2. Yes – No question are question that only require a” yes” or “no answer.
3. Statement questions
1.

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Why/Where/When/ do/does/did//will/shall/can/must subject Verb 1
Who/Whom/How has/have/had subject Verb 3

Why/Where/When/Who/ is/am/are/was/were subject adjective/adverb/noun


Whom/How

Which/Whose/How noun do/does/did/will/shall/can/must subject verb1


many/How much has/have/had subject verb 3

Which/Whose/How noun Is/am/are/was/were Subject


many/How much

2.

Is/Am/Are/Was/Were subject adjective/adverb/noun/verb-ing


Do/Does/did/Will/Shall/Must/May/Can subject verb 1
Has/Have/Had subject verb 3

3.

Statement question with rising Jim, you approved this order?


intonation

A statement + question tag It was Jim, wasn’t it?


You didn’t approve this order, did
you?

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Task 1
Study the pattern then make some question based on the formula above

Task2
the information he/she gives you. Write down the question you’d ask this
Imagine that you’re talking to someone who talk rather unclearly, and that
you can’t catcth some of person to find out the missing (~~~~) information

1. ‘I work for ~~~~.’ Who do you work for?


2. ‘I study at ~~~~.’ Where.....
3. ‘I’ve been doing this task here for ~~~~ hours.’ How.........
4. ‘We kept our sales files in the ~~~~ room.’ Which.......
5. ‘They never contact you because ~~~~.’ Why..........
6. ‘I started working for the firm in 19 ~~~~.’ When........
7. ‘I’d like a ~~~~ room for two nights, please.’ What kind of....
8. ‘I’ heard about this product from Mr ~~~~.’ Who.......
9. ‘The complete package costs only $ ~~~~.’ How much.....
10. ‘They printed ~~~~ thousand copies of the report.’ How many......
11.‘They asked me to ~~~~ as soon as possible.’ What............
12. ‘Mrs ~~~~ told me I should get in touch with you.’ Who.............

Task 3
Complete each sentences with a suitable question tag.

1. Her name is Abella, ...............................................................?


2. They will know before the end of the month, ..................?
3. Our company won’t send the catalogues by surface mail,............?
4. We provide the information you need,...................................................?
5. Our boss wasn’t in the office two days ago,..........................?
6. These machines operated automatically,.....................................?
7. She knew a great deal about economics,..................................?
8. We’ve studied this subject for some time,................................?

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9. The chair manages the meeting smoothly ............................................?
10. The data must be confirmed by sending them directly,................?
11. He hasn’t heard that the firm has been taken over, ..................?
12. Everything should take on the table,..............................?
13. Don’t go anywhere,..................................................?

D. SPEAKING
Make some questions based on the pattern given then give to your friend to
answer them

CHAPTER 3
MANAGER AND ORGANIZATION

A. READING COMPREHENSION
Read the text carefully
An effective manager is an effective leader. He creates positive work
environment. In the environment the organization and its employees have the
opportunity and challenge to achieve a high performance. Managers should be
leaders. They take the intiative and become active participants in the activities
performed by their employees and other operation. Successful managers create a
situation that encourages high performance and removes the cause of failure.
These managers ensure that employees understand their jobs and have their jobs
and have the resources necessary jobs and motivate the employees with
appropriate incentives.
An organization is a managed system designed and operated to achieve
specific set of objectives. This system procces human, financial, and informational
resource into outputs. These outputs are goods and services. External environment
demands both outputs.

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Managers perform several major functions. These functions include planning,
organizing and staffing leading and controlling. Planning is analyzing a situation,
determining the goals to be achieved both in present and in the future, and
deciding in advance the action which is needed to realize these goals.
Organizing and staffing include the efforts of the managers to assemble the
resources needed to complete the job and coordinate employees and tasks to get a
maximum success. Controlling involves monitoring the progress of the
organization and, if necessary, it is corrective action.
To execute management functions successfully, managers need these specific
skills: technical skills, interpersonal and communication skills, conceptual and
desicion-making skills.
A technical skills is the ability to perform a specialized tasks. This task
involves a certain method or process. Interpersonal and communications skills
influence the manager’s ability to interact and work well with poeple. Conceptual
and decision making skills involve the manager’s ability to recognize complex
and dynamic issues, to examine the factors that influence these problem, and to
make decision regarding them.
These functions and skills are applied differently depending on the manager’s
status in the organization. Strategic managers are the senior executives who are
responsible for the organization’s overall management. Tactical managers take the
general goals and plans developed by strategic managers and translate them into
more specific objective. They supervise the operation of the organization.

Task 1
Give your complete answer to the following questions
1. Why a positive work environment must be created?
2. What do managers do to achieve the targets of their company?
3. What is an organization?
4. What are the output of an organization?
5. What must managers carry out to achieve the organization’s objectives?
6. What is planning?

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7. What is organizing?
8. How can managers execute managemet functions successfully?
9. What are the differences of strategic managers and tactical
managers?
10. what are the same function of strategic manager and tactical
manager?

B. WRITING
Task 1
Complete this sentences use the word below
Task Complexity Staff
Specialists Relationships Authority

1. Businesses grow in both size and..............


2. Everyone in an organization has............... to completed
3. The president of company usually has.....................over the vice president.
4. We study the.............. between each position and positions above and bellow it
5. People who are not in line position are usually ............ in a particular field that
doesn’t necessary deal with the company product.
6. A................. department usually does not give orders to other departments.

LANGUAGE FOCUS

THANKING AND ACKNOWLEDGING THANKS


Thank you. That’s very kind of you (formal)
My pleasure (slighty formal)
Thank you very much (neutral)
You’re quite welcome (neutral)
Thanks (informal)
Think nothing of it (informal)

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Don’t mention it (informal)

a. Apologising
Apologizing Responding

Sorry I’m late. That’s OK. No problem.


I’m really/very sorry. + Don’t worry about it.
I’m terribly/so sorry. No, really. It’s fine.
I feel bad/terrible about this.

(+ reason)
I’m afraid I missed the bus. _ I don’t believe you
Sorry, but I didn’t hear my Don’t let it happen
alarm clock. again.
I lost my keys.

When speaking:
 To emphasise how sorry you are, use an adverb + so + sorry. I’m
terribly/so sorry.
 To show how it makes you feel, use feel + adjective: I feel terrible
about the mess!
 Reply with No, really. It’s fine when someone apologises again:
A: I’m so sorry.
B: Don’t worry about it.
A: But I feel
Terrible ... B: No, really. It’s fine.

1. The use of cardinal and ordinal numbers:


Floor 1 is the same as First floor = 1st floor

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2 Second = 2nd
3 Third = 3rd
Room 4 Fourth room = 4th room
5 Fifth = 5th
6 Sixth = 6th
Rank 11 Eleventh rank = 11th rank
12 Twelfth = 12th
20 Twentieth = 20th
Level 21 Twenty first level = 21st level
22 Twenty second = 22nd
25 Twenty fifth = 25th

The use of cardinal and ordinal number in sentences:


Who won the price? Robby won the first prize
In which room do you stay? I stay in room 287 on the 2nd floor

Task 1
Rewrite the following sentences using ordinal number
Example: It is book 1 ~~~~ It is the first book
1. Where is classroom 4? _______________________________
2. We are going to past building 5._____________________________
3. They are on level 7. ______________________________________
4. She is listening to song number 2. ___________________________
5. Tomorrow is day 13 for us. _________________________________

Task 2
Imagine the building around you and try to describe it

C.SPEAKING
With your partner, act out the role below, use the expression above

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Student A Student B
Your employee wants some time off. Student A is your supervisor. Ask for
Ask student B about: time off and answer student A’s
question
 Vacation time
 Dates
 approval

CHAPTER 4
WHAT IS AN ORGANISATION?

A. READING COMPREHENSION
Read this text carefully
An organization is a group of two or more people that exists and operate to
achieve clearly objectives. A business is an organization created to provide a
product that consists of goods and services to customers for profit. To reach the
objectives it is necessary to establish a framework is known as a formal
organizational structure.
The formal organization is developed thought a series of organizing steps.
These steps consist of considering the objective and plans, determining activities
necessary to achieve project, classifying and grouping activities, and designing a
hierarchy of relationships. The result of this process is a formal organizational
structure.
Once the organization is developed, there are organizational concepts to be
applied by managers to assist the organization concept to be applied by managers
to assist the organization in achieving its objectives. These concepts include:

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Authority : it is the right to give orders. There are three types of authority : line,
staff and functional authority.
Delegation: is the passing of formal authority to another person. Delegation
involves assigning tasks, delegating authority, exacting resposibility, and holding
a person accountable.Span of control : it is the number of subordinates a manager
supervises.
There are four types of formal organizational structures developed by
managers. They are line organization, line-and-staff organization, functional
organisation, and matrix organization. Each has its advantages. Stage of
development. Whitin the formal organization is the informal organization.
The informal organization is a network of personal and social relationships
that arises spontaneously as people associate with each other in the work
environment. Managers need to recognize and work with the informal
organization as its assists the managers in meeting organization objectives.

Task 1
Give your complete answer to the following questions.
1. What is an organization?
2. What is business?
3. What are the objectives of a business?
4. How is an organization to reach its objectives?
5. What do you call the operating framework?
6. What do the organizing steps consist of?
7. How many types of formal organization structures developed in managers?
8. How many types of formal organization structure developed by managers?
What are they?
9. What is the informal organization?
10.Why do managers need to recognize and work with the informal organization?

B. WRITING
Task 1

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Make a sentence based on this word
a. organization :_____________________________________
b. associate :_____________________________________
c. manage :_____________________________________
d. establish :_____________________________________
e. profit :_____________________________________

Task 2
Fill the gaps so that the second sentence in each pair has similar meaning to
the first.

loss quarter increased profit improved costs

1. We earned a lot of money. We made a big....................................


2. Here are figures for the last three months. Here are figures for the
last..............................
3. We spent less money. We cut........................................
4. Sales grew by 10%. Sales..............................by 10%
5. We lost money last year. We made a ..........................last year
6. Our business got better. Our business...................................

Task 3
Match the pairs of sentences with similar meanings from the right
1. A lot of companies sell the same a. You can get a small discount
Product as us. b. We have lots of goods in our
2. Lots of people want to buy this. warehouse
3. You can buy this product a bit c. We have a lots of competitors

General English 1 / Business Management Page 21


cheaper. d. We compete with them
4. We have a large stock of products. e. There’s a big demand for it
5. We provide the same service as them

LANGUAGE FOCUS

1. CALCULATION
Plus, minus, times/multiple, devided by, equal

2. Countable and Uncountable Noun


Countable Uncountable
Singular plural
all the all/all (of) the all/all (of) the
most (of the) most (of the)
many ( of the) much (of the)
a lot of (the) a lot of (the) a lot of (the)
lots of (the) lots of (the)
several (of the) several (of the)
a few (of the) a little (of the)
few (of the) little (of the)
no no no

Task 1
Read this dialog then answer the question
Vicky : Reitha, do you have something to do for today?
Reitha : No, I’m free now
Vicky : Can you go shopping with me, please?
Reitha : Sure, Where are we going to shopping?
Vicky : We are going to Gramedia Book store, I would like to buy two
economic books, an English dictionary, and I also want to buy some

General English 1 / Business Management Page 22


stationeries, like: 3 pens, a pencils and a corrected pen.
Reitha : Alright, let’s go
AT GRAMEDIA
Vicky : Come on Reitha, I have got them all
Reitha : How much are they altogether?
Vicky : This economic book are Rp. 105,000.00 and 95,000.00 and we have 20%
discount of it, this dictionary is Rp. 98,000.00, one pen is Rp. 18,000.00,
one pencil is Rp. 2,500.00 and this corrected pen is Rp. 15,000.00
Reitha : They are hundreds right?
Vicky : Yes, I just have Rp.3950,000.00. It is enough.
Reitha : Yeach, you still have the change, don’t you?
Vicky : I hope so, How about the cost of our transportation?
Reitha : Oh yes, I think we just need seven thousand five hundred rupiahs for
each, and you still keep the change.
Vicky : Sure.

1. How many people are there in the dialogue?


2. Who want to buy dictionary?
3. How much is an economic book?
4. How much money should be paid for pens?
5. How many pencils does Vicky need?
6. How much money should be paid for books?
7. How much money should be paid for stationeries?
8. How much money do they spend for their transportation?
9. Does Vicky still have change?
10. How much money will Vicky have left?

Task 2
1. I have ................. big lugage to bring all my clothes so I must left them
2. There are................suitcases to save my document
3. Are there .................window seats?

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4. She doesn’t have................free time
5.Is there........................demand for this product?
6. Last evening, I wrote................letters to my collegue
7. There is.........................information about the flights on the screen
8. I drink ..................coffee to finish my jobs
9. I don’t like to stay home so I go out.............
10 There was...............food in the refrigerator. It was nearly empty

C. SPEAKING
Look at this clue below and write what they say with complete sentences

A Greet ...........? Here. .........? Rp. 99,000


..........? + Yes

Help? Else? (3 X 7,500)

B Reply Three. Rp. 121,500


greeting.
37 size
black folder Here

Shoes .........? ?

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CHAPTER 5
TYPES OF BUSINESS ORGANIZATION

A. READING COMPREHENSION
When you start a business, you have many decisions to make. The first is
the form of organisation best suited to the needs of your business.
Most business start as sole proprietorships. Many of them become partner-
ships of corporations as they expand. You are probably familiar with sole
proprietorships, businesses that are established, owned, operated, and often
financed by a single person.
Sole proprietorships have several advantages that make them popular. They
are ease and low cost of setting up, all profit go to the owner, control of the
business can be performed directly, and free from government regulation.
Another major form of business organization is the partnership. It is an
association of two or more persons to carry on as co-owners of a business for
profit.Some advantages of partnership come quickly to mind. When you have a
partner, you are not tied to the business as you would be in a sole proprietorship.

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Someone else helps manage and operate the firm and brings extra skills. Setting
up a partnership take a more formal agreement than starting a sole proprietorship,
but partnerships are still quite easy to form.
Ease of information, availability of capital, diversity of skills and expertise,
flexibility, and relative freedom from government control are the advantages of all
types of partnership.
Corporation are not the most popular form of business organization in terms
of number of firms. But they account for the largest share of both sales and
income. A corporation is a legal entity with an existence and life separate from its
owners. A corporation can own property, enter into contracts. Sue and be sued,
and engage in business operations under the terms of its charter.
There are four types of corporate ownership. The common stock of a
privately owned form is not available to the general public. A closely owned firm
belongs to a small group of investors.The common stock of a publicly owned firm
belongs to a broad group of unrelated individual and institutional investors.
Several specialized types of business organization play a role in our
economy are co-operative, joint ventures, and limited liability companies. A co-
operative is a legal entity with several corporate features, such as limited liability,
an unlimited life span, an elected board of directors, and an administrative staff.
Unlike a corporation, a co-operative does not keep profits.
Instead, it distributes all profits to its members in proportion to their contribution,
since the co-operative keeps no profit, it pays no taxes.

A joint venture is an entity formed by two or more companies to undertake


a special project. There are many reasons for joint ventures. The project may be
too large for one party to handle on its own. Another reason for joint ventures is
that a company can gain access to new markets, products, or technology by
working with a firm whose expertise complements its own.
A new type of business entity is the limited limited liability company
(LLC). This company provides liability protection but is taxed like a partnership.

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The combination of limited liability and favourable tax treatment makes the LLC
attractive for many types of small businesses.

Task 1
Give your complete answer to the following questions
1. What do people do when they start a business?
2. What is a sole proprietorship?
3. What are the advantages of sole proprietorships that make them
popular?
4. What are differences of sole proprietorships from partnership?
5. What are the advantages of partnership?
6. What are the four types of corporate ownership?
7. What are the differences of co-operative from a corporation?
8. What type of business is suitable for handling a special project?
9. What are the reasons of establishing a joint venture?
10. What do people do with the LLC ?

LANGUAGE FOCUS
1. ADVERB OF FREQUENCY
We can classify expressions of indefinite frequency on a scale from ‘always’ to
‘never’, where ‘always’ = 100 per cent and ‘never’ = 0 per cent. These numbers
are only a general indication, not exact values.
100% always
95% nearly always/almost always
90% usually/normally/generally/regularly
75% often/frequently
50% sometimes
40% occasionally
25% rarely/seldom
10% hardly ever/scarcely ever

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0% never

If we want to be more precise, we can use one of the following types of


expressions:
a. Once/twice/three times a day/week/month/year
b. Every hour/day/week/month/year
c. Hourly/daily/weekly/monthly/quarterly/annually/yearly

Note
Hourly, daily, weekly, monthly, quartely, yearly are both adjectives and
adverbs; annualy is only an adverb (adjective = annual).
We review the figures monthly. (adverb)
We have a monthly review of the figures. (adjective)

2.
WORD PART
or- a person or thing that does a certain action
Sally operates a computer.
Sally is a computer operator.
- ist a person who is trained or skilled in an area
Paula can type very well
Paula is a good typist

NEGATIVE PREFIX
A. There are many different ways of forming negative words by adding
frefix

un- fair unfair


dis- like dislike
in- visible invisible
non- smoker non-smoker

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Some adjectives beginning with I ..., p ... or r ... form negatives like this:
il- legal illegal
im- possible impossible
ir- regular irregular

A B. anti- and counter- usually mean ‘against’:


anti-clockwise (GB) / counter-clockwise (US)
anti-freeze anti-American
semi- means ‘partly’ or ‘half’:
a semi-skilled worker semi-skimmed milk

Task 1
Two sales representatives meet in a hotel. They have very different ways of
doing business. Comple the conversation using frequency expressions from
the box so that Kerry always has quite the opposite way of doing things.

Seldom hardly ever nearly always never normally always sometimes

Lee : I always fly here.


Kerry : Do you? I 1.....................fly. I 2...................come by car.
Lee : By car? How awfull! What about this place? I rarely stay in this hotel.
Do you of ten come here?
Kerry : I 3..................stay here, though 4.............I stay at the place opposite
Lee : I see. What about your customers, is this a good place for you to
meet them? Do you do much business here? I think it’s terrible.
I 5................sell anything
Kerry : Really? No, I think it’s great. I 6...............sell quite a lot here. I’ve
several good customers here
Lee : Fancy a drink?
Kerry : Thanks, I’ll have an orange juice
Lee : Orange? I 7.......................drink orange. I prefer apple juice

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Task 2
Look at the information about Olivia and Ranty. Make six sentences about
them. Use all the words in the box.

early late in the morning at midday in the afternoon


in the evening

Get up Have Start Have Finish Have


breakfast work lunch work dinner

Olivia 06.00 06.15 07.30 12.00 17.30 19.00

Ranty 05.00 07.00 09.00 13.30 16.15 20.15

Task 3
Complete these columns by foming the negatives of each of the
words in this list.

accurate √ agree √ capable certain √ connect


convenient desirable employed experienced foreseen
formal fortunately honest known payment
profit-making readable satisfied stop sufficient
used valid

Un- Dis- In- Non-


uncertain disagree inaccurate

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Task 4
Fill the gaps in these sentences, using words from the exercises
above. The first is done for you as an example.
1. The claims made in this advertisement are dishonest.
2. Please make sure you book me on a ............................. flight.
3. I’m afraid the deposit you sent us was ..........................
4. Discrimination on the grounds of race, religion or sex is ........................
5. Please inform the manager if you are in any way ..............................
6. Tourism and financial services are ........................... exports.
7. Turn the handle ............................ to open the door.
8. Your visa expired last week and is now ..........................
9. ..........................., your reservation didn’t reach us in time.
10. Due to ......................... circumstances, the flight has been cancelled.
Task 5
Write down these words that mean
1. Against unions ................................................................................
2. not entirely official .........................................................................
3. Half a circle .....................................................................................
4. not completely permanent .................................................................
5. Against the government ................................................................
6. partly automatic .............................................................................
7. Not completely professional ..........................................................

Task 6
Write new words. Use the new word parts that you learned.
1. ______________ a person who acts in a movie.
2. ______________ a person who conducts an orchestra or musical
group.

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3. ______________ a person who skilled in the science of the earth
4. ______________ a person who skilled in biology
5. ______________ a person who skilled in art

Task 7
Match the pairs to make jobs and workplaces.
a. reception- el f. engin- ice
b. account- house g. ware- eer
c. sh- ist h. off- ant
d. technic- op i. manag- ian
e. fact- er j. hot- ory

Workplaces Jobs

D. SPEAKING
Make a dialog with your friend, imagine you are doing a business. Talk about
what business it is, How’s business running: (well/badly), made a profit/loss,
improve/ get worse

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UNIT 6
WHAT IS PRODUCTION?

A. READING COMPREHENSION
Read this text carefully
Many people confuse the terms of production, operations, and
manufacturing. Production is a business activity that uses people and machinery to
convert materials and parts into saleable products. This process might involve the
work, ideas, and plans of the design engineers. Two types two types of companies
engage in this activity. The first is a processing company. It is a firm that converts
natural resources into raw materials. The second type is a manufacturing
company. It is a firm that converts raw materials into customer and industrial

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goods. Production is not limited to the manufacture of goods; it applies to both the
service and the manufacting sectors of the economy.
Manufacturing refers onl to the physical process of producing goods;
service are not manufactured. It is the actual processes of making products out of
materials and parts.
Operations are the functions needed to carry out a strategic plan, to keep
the company producing. Production and operation manger are responsible for
producing the goods that business needs to sell. There are many kinds of products
– goods and services- wanted by people in the marketplace.
Every business’s production goals focus on producing – and producing the
best, the fastest, and at the least cost. Thus the production and operations manager
must produce with effectiveness and efficiency while maintining quality control.
A production and operations manager’s job is to see that the operations
necessary to achieve the company’s production goals are carried out. To do this,
these managers oversee a number of company operations.
Production and operations manager have product planning responsibilities,
such as preparing finance and marketing. They also oversee the hiring, training,
and development of personnel for departments involved in the company –
especially marketing, warehousing, and shipping – is important as well.

Productivity studies
The rate at which goods and services are created is called productivity. In
a healthy economy, productivity must be high and also steadily increasing. One
common measure of productivity, labour productivity, is expressed in money of
output per hour worked. Another important factor important in output is
technology and how it is being used by employess. Labour and technology
combined generate the outputs that are priced and sold to consumers.
Mangers must estimate each worker’s productivity during a work period to
employ enough workers to produce a certain quantity of units on schedule.
Productivity estimates also ate used in drawing up a budget for labour costs based

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on each employee’s output. Motion and time studies are needed whenever must
know how many units a worker can produce in a certain situation.
A motion study is a study that identifies the number and kind of
movements required to perform a given operation. The purpose is not to make
employees work harder,but to help them work more efficient and less tiring than
those used before.
A time study is a study that determines the amount of time an average
worker takes to perform a given operation. This study allows managements to
determine the average time it takes to complete a particular job.

Task 1
Give your complete answer to the following question
1. What is production?
2. What are the two types of companies engage in the production
activites?
3. What is the difference of a processing company from a manufacturing
company?
4. What do you call the business activities that refers to the physical
process of producing goods ?
5. What do you call the function needed to carry out a strategic plan to
keep the company producing?
6. What are the job of a production and operation manager?
7. What is productivity ?
8. What must managers do to employ enough workers t produce a certain
quantity of units on schedule?
9. What is a motion study ?
10. What s a time study ?
LANGUAGE FOCUS
A. Active Intruction
Positive Instruction
 Remove ‘dead files’ to keep the paperwork under control,

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 Record all files that have been temporarily taken out in a ‘charge out’ or
‘absent’ book. Note when the file was taken out and who took it, and put a
note or maker indicating the files is missing.
 If papers are no longer wanted, destroy them in a ‘shredder’, a machine
which cuts unwanted papers into thin strips. If the company does not have
a shredder, then tear the file or papers yourself.
 Keep filing cabinets locked and other system secured.
 Make sure that whatever filing system you use will be ‘consistent’- a
regular system that never changes – so everyone will know exactly how it
works.
Negative Instruction
 Don’t file anything unless it has been passed for filing which usually
means it has a stamp – FILE- on it.
 Never leave a file open on a desk, or just lying around. Files often have
confidential (secret) information in them

B. Passive Instruction
 Let the door be opened
 Let him be punished

Task 1
Use the right word in the box to fill in the blank

Ww window put sit me sentence find please turn go speak

1. Write a....................on a piece of your paper.


2. Open the.......................we need some fresh air.
3. .................................the bag on the table.
4. .................................to the corner, please.
5.........................chapter 3 task 1 in your book.
6. Listen to........,please. Keep quite.

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7. ...................give me a marker.
8. Don’t...............in our class.
9. .........................down on that chair, Tom
10. .................................off the radio. I’d like to watch TV.

Task 2
Look at this ficture then make an instruction based on it
A B

C D

C. SPEAKING
Find out a process production of a product then tell it to the class

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UNIT 7
PRODUCT AND PRICE

A. READING COMPREHENSION
Read this text carefully
A product is a good, service, or idea imcluding all the tangibles and
intangibles provided in an exchange between a buyer and a seller. People buy a
product for the benefits and satisfaction it gives. A product can be a good (like a
car) or a service (like your checking account at the bank). Sometimes a product is
a blend of the both. Dinner at a restaurant, for example, consists not only for
tangible items—food and beverages—but also preparation, service, and the appeal
of dining in that special setting.

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Product used by individuals for personal and family consumption are
consumer products. Inexpensive goods and service that consumer often buy,
without much thought or effort, are convenience products. Milk, bread,
magazine, soft driks are example.
An item that buyers will expend time and effort to find and purchase is
shopping product. This category includes goods such as TV set, VCRs, major
appliances, and furniture, and service such as dental care, legal advice, and tax
preparation.
Goods and service that have specific attributes desired by a particular
group of consumers are known as speciality products. Speciality products can be
expensive and uniqe, such as Mercedes sports car.
Products used by organizations in producing goods or services are known
as industrial products.
A group of related goods or services marketed by a firm is called product
line. A firm’s product can be shallow, with only one or two products, or deep,
including many products. the collection of items and services a firm offers for sale
is known as product mix. Markets refer to product mixes as narrow or wide,
depending on how many product lines are carried.
PRICING
The price of a product is one of its most important aspects for both sellers
and buyers. Price is the value that buyers exchange for a product in the marketing
transaction. Money usually is the value exchanged for a product that satisfies a
consumers and greatly affects purchase decisions.
A firm cannot determine a product’s price without considering several
factors that affect price. Mangers must take into account the use of price and non-
price competition, supply and demand, and consumer perception of price. Firms
competing based on price competition. It is policy of using price to differentiate
product in the marketplace. Generally they set prices equal to or lower than
competitor’s prices.
A policy of emphasizing aspects other than price, such as, quality, service,
or promotion, to sell products is known as non-price competition. This is

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strategy is useful in building brand loyalty. A name, sign, symbol, or design, a
company uses to distinguish its product from others is called a brand. Firms
usually want exclusive use of their brands and take steps to prevent others from
using them. A brand registered with the Patent and Trademark office is called a
trademark. A trademark, legallu protected, can be used only by its owner.

Task 1
Give your complete answer to the following questions
1. What is a product?
2. Why do people buy a product?
3. What do products consist of?
4. What is a consumer product?
5. What are convenience products?
6. What is a shopping products include?
7. What do shopping products include?
8. What is product line?
9. What are speciality products?
10. What is product mix ?
11. What is price?
12. What is price competition?
13. What is non-price competition ?
14. What is a brand?
15. What is trademark?

LANGUAGE FOCUS

A. CONJUCTION
1. For, During, Before, After, Until
A. For is used with noun phrases which denote a quantity of time
such as an hour, two hours, eight weeks, a long time.
For answer the question ‘how long?’

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B. During is used with noun phrases which refer to period of time,
such as the afternoon, the course, the summer.
During answer the question ‘when?’
C. Before, After, Until can be followed by an embedded sentence
The phone rang before / after / until five o’clock.
D. Before and After may be followed by verb –ing expression
Shinta studied before / after eating
E. Don’t use until with expressions of place or distance.
Until the drugstore (incorrect)

2. Time and Expression


Seven o’clock, a quarter to eight, a halp past ten, twenty five past four,
morning, afternoon, evening, night

B. DEGREE COMPARISION
Comparison of objects:
a. To compare two objects:
Our prices are lower than theirs.
b. To compare more than two objects:
Our prices are the lowest. (of all the prices)
c. To compare an object and a definite standard:
Our quality is already high, but we must make it still higher.
d. To show that one comparison depends on another. We can
use the + comparative adjective:
The faster we can improve quality, the more profitable we will become.
(i.e. if we can improve quality, we will become more profitable)
2. Modification of comparison. We can use an adverb before a
comparative adjective to indicate the degree of comparison.

Task 1
Complete the sentneces. Use before / during / after + the best ending

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1. Everybody was nervouse.................
2. I usually have lunch at 1:30, and............................I go back to work
3. The movie was very boring. We left............................
4. Anny went to evening classes to learn Spanish. She learned a lot.........
5. My aunt and uncle live in Japan....................................
6. Somebody broken a window................................Did you hear anything?
7. A : Are you going home.........................................?
B : No we’re going to a restaurant
8. Always look both ways.................................................

Task 2
Make some sentences include of for, during, until, before, after

Task 3
Read the two description of Ben and Liz. Make sentences which explain of them
Example : Ben is older than Liz

BEN LIZ
I’m 22 years old I’m 20 years old
I’m not very good swimmer I’m very good swimmer
I’m 1 meter 68 tall I’m 1 meter 62 tall
I start work at 8 o’clock I start work at 8.30
I work very hard I don’t work very hard
I’m very intelligent I’m not very intelligent
I’m good driver I’m not good driver
I don’t go to movies very much I go to the movies a lot

Task 4
Make five sentences. Use phrases from each box

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Twenty years ago convenient way to travel from London to
planes travel way to Paris is by train
Business class is Way to by bus
Today the fastest to travel for long than business
distances is
The TVG is the were the most economy class
The most more expensive cities in France
The least comfortable quickest way to travel expensive way to
way between travel

1. Business class is more expensive than economy class


2. .......................................................................................
3. .......................................................................................
4. .......................................................................................
5. .......................................................................................
6. .......................................................................................

C. SPEAKING
With your partner, act out the role below
Student A Student B
You are a salesperson. Tell Student Call student A about a new product.
B the price of a product, include: Ask about the pricing. Make up a
 Basic price piece of furniture you woud like
 Price including tax
 Any extra fees

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CHAPTER 8
WHAT IS MARKETING

A. Reading Comprehension
Read the text carefully
The American Marketing Association defines marketing as the process of
planning and executing the conception, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that satisfy individual and
organisational objectives.
Marketing activities are required for many different kinds of products.
Product is not only tangible goods---those that can be held or touched---, but also
can be intangible service --- those that cannot be held or touched --- such as health
care service.
Ultimately the purpose of marketing activities is to bring about exchanges.
Exchange is the process by which parties provide something of value to one
another to satisfy the needs of each. Through activities that enables exchanges, to
take place, marketing adds value to products. this value is known as utility, the
ability of a product to satisfy a consumer need, there are four types of utility :
form, time, place, and possession.
Marketing directly creates three types of utility. By making products
available when consumers want and need them, marketing creates time utility.
Publishing company print and distribute morning newspaper early so readers can
read them at breakfast or while commuting to work.
Making products available where consumers need or want to obtain them
creates place utility when the ownership of a product is transferred from seller to
buyer. To obtain newspapers, customers pay the publishing company for home
delivery, or pay clerks in stores.
Marketing is important to organizations and consumers alike. It touches the
lives of all members of society. Through the cost of what we purchase, each of us
supports the costs of marketing. Most people would agree that marketing costs are
worth it because the many and varied marketing activities enable us to satisfy our

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water, shelter, and clothing. A want is something desired but not necessary for
basic survival. Without marketing, many needs and wants would go unsatisfied.
The efforts of marketing are directed at a market. It is a group of potential
customers with the authority and ability to purchase a particular product or service
that satisfies their collective demand. There are two major markets: consumer and
industrial. The consumer markets is composed of individuals who buy products
for their personal use. The industrial market consists of businesses that buy
products to use in making other products.
The large industrial and consumer markets need to be divided into smaller
markets. This process of the dividing markets into subgroups with similar
characteristics is called market segmentation.
A management philosophy stating that an organization should strive to
satisfy the needs of consumers through a co-ordinated set of activities to achieve
its objectives is known as marketing concept. The marketing concept calls for all
department to be committed to satisfying consumers. To put the marketing
concept into action, a firm must decide on the appropriate marketing activies to
satisfy customer needs and achieve its goals.

Task 1
Answer the following question
1. What is the definition of marketing?
2. What is the purpose of marketing activities?
3. What is an exchange?
4. What is utility ?
5. What are the four types of utility ?
6. What utility is created by making products available when consumers
want and need them?
7. What utility is created by making products available where
consumers need to obtain them?
8. What utility is created when the ownership of product is transferred
from seller to buyer?

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9. Why marketing is important to organization and consumers alike?
10. What is the difference of needs from wants ?
11. What is a market ?
12. What are the two major market ?
13. What is market segmentation ?
14. What is marketing concept ?

B. WRITING
Task 1
Replace each word or phrase underlined with a word or phrase from the
list which has the opposite meaning:
cash generous profit save well off purchase
worthless expensive poverty take out

1. I was surprised by how mean Charles was.


2. Janet says that she is very hard up at the moment.
3. Last year their business made a huge loss.
4. I’d like to pay in Rp. 100,000,000.00 please.
5. That part of Spain always seems very cheap to me.
6. Most people in the city live in great prosperity.
7. The manager insisted that I paid by cheque.
8. Some people manage to spend most of their money.
9. Jean was able to make only one sale, during the morning.
10. The old painting I found in the loft turned out to be valuable.

Task 2
Find the correct meaning of this words from the text
1. it is required for many different kinds of product
...........................................
2. The ability of a product to satisfy a consumer need
...........................................

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3. something required for human survival
...........................................
4. something desired but not necessary for basic human
...........................................
5. a group of potential customers that can buy a particular product
...........................................
6. individual who buy products for their personal use
...........................................
7. buisnesses that purchase product for producing other product
..........................................
8. dividing markets into smaller ones
...........................................
9. satifying the needs of consumers through a co-ordinated set of
activities
...........................................

LANGUAGE FOCUS
A.
1. Very is a degree adverb; it intensifies the meaning of an adjective or adverb:
This machine can provide a very fast response.
We can respond to orders very quickly.

2. The advervs too and enough have related meanings. Too means “more than
enough” Or “more than acceptable”:
Our present office is too big. (i.e. it is not acceptable)

Enough means that something is acceptable:


Our present office is big enough. (i.e. it is acceptable)

Complete too and enough in following sentence:

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The present office is too small.
The present officeis not big enough.

Too small means ‘too small for us to work in’: not big enough means ‘not big
enough for us to work in’: therefore too and enough function by reference to a
level, a person and an activity:
Level person activity
This office is too small for us to work in

Often we do not mention the person and the activity because they are abvious
From the context:
Your prices are too high. (for us to buy)

3. The determiner enough also refers to a level:


we have enough offers.
As with the adverb enough, often we do not mention the person and the
activity:
We have enough offers. (to make a decision)

B. REQUESTING
Requests usually use yes-no questions of “will”,”can”,”would”,and “do”. Look
at the example below.
Can you open the door for me? Sure
Could you ask.....to......for me? Certainly
Could you...............,please? I won’t be able to... because..
Do you think you could......? I sorry but.........
Would you mind........-ing....? I’m afraid that’s not possible, because......
I’d like you to......please. I’d like to but.....

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Task 1
Fill in the blank with very, too or enough
1. This shirt isn’t big........for me, I need bigger size.
2. These shoes are............big for my little sister
3. I have..............money to buy a new car
4. You will meet a...............nice family in your journey
5. There were not................chairs for everybody to sit down
6. She speaks..........fast for me to understand her
7. i don’t like the weather. There’s ...............much rain.
8. Can you turn up the television please? It is’not loud...........to hear
9. My sister is ................good cooker.
10. This is ....................high building

Task 2
Imagine you are on the telephone, discussing computing and word processing
problems with you creatife software user service centre. You have heard that
there is something called fragmentation. Use the frompt below to request
either information or action. Your question should be appropriate for the
given answer

1. Ask what this it.


Q:
A: it happens when files are broken into fragments – small parts – for storage on
your hand disk.
2. Ask if it affects the files you write.
Q:
A: No, but it makes some actions slower – such as retrieving or saving files.
3. Ask what the solution is.
Q:

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A: You can compact the hard disk. To do this you need a special program, called
Compact.
4. Ask if Compact is already supplied with your Creatif software.
Q:
A: No, you have to buy it separately.
5. Ask him to send you this Compact program.
Q:
A: I suggest you contact your computer store.
6. Ask if Compact is difficult to run.
Q:
A: No, it’s very easy, but you must not run it from Creatif. You must run it.
7. Ask if you can call again if you have any problems with it.
Q:
A: Of course not. Please do

C.SPEAKING
Make a list of seven products (goods and services) that are produced or
provided in your city or region, then report it to your class

1. a local brand of drink


2. a grocery product (breakfast cereal, health food, etc)
3. an industrial product (machines, consumer goods, vehicles, etc)
4. a place of entertainment (theatre, cinema, etc)
5. a public service (telephones, mail, transport, etc)
6. an educational service (maybe the course you’re doing now?)
7. another well-known local prduct

General English for Business 1 / Business Management Page 50


CHAPTER 9
PROMOTIONAL STRATEGY

A. Reading Comprehension
Read the text carefully
Promotion is marketing activity that stimulates demand for a firm’s
products. Marketers promote everything from needle to aircraft. Once the product
has been created, promotion is often used to competition.
Promotional strategy is the plan for informing, persuading, or reminding
the target market about a product. The goal is to stimulate action. In a profit-
oriented firm, the desired action is for the consumer to buy the promoted item.
The combination of advertising, personal selling, sales promotion, and
publicity used to promote a product is called the promotional mix.
Advertising is any nonpersonal message paid for by an identifiable
sponsor for the purpose of promoting products. Companies use two types of
advertising: product advertising and institutional advertising. Product advertising,
is advertising intended to promote demand for a product or service such as
Pepsodent toothpaste. Institutional advertising is advertising done to enhance a
company’s public image rather than to sell a product.
The second element of the promotional mix is personal selling. It is a
face-to face attempt to persude prospective customers to buy a given product.
Personal selling provides the company with the opportunity (1) to give customers
individuals attention, (2) to adapt a message to the customer, (3) to focus on a
specific target market, (4) to receive immediate feedback, and (5) to provide the
opportunity to close the sale.
The third element of the promotional mix is sales promotion. It is the
marketing activities, other than personal selling and advertising that stimulate

General English for Business 1 / Business Management Page 51


consumers purchasing and dealer effectiveness. Sales promotion supports the
other three elements in the marketing mix.
The fourth element of the promotional mix is publicity. It is nonpaid,
nonpersonal communication to promote the products, services, or image of the
company. It is an important element of the promotional mix that can be
overlooked because of its nature.
The four element of the promotional mix need to be blended to
communicate effectively to a target market. Each type of promotion serves a
different function and therefore should support the other elements. There are two
potential promotional strategy: push strategy and pull strategy.
A push strategy is a strategy directed at the members of the marketing
channels rather than the consumer. A pull strategy is a strategy aimed at the
consumer. To accomplish this strategy marketers rely on the advertising, sales
promotion, and publicity elements of the promotional mix.

Task 1
Give yout complete answer to the following questions

1. What is promotion?
2. What is promotional strategy?
3. What is promotional mix?
4. Name the promotional mix elements?
5. What is advertising?
6. What are the two types of advertising used by companies?
7. What is product advertising?
8. What is institutional advertising?
9. What is personal selling?
10. What is sales promotion?
11. What is publicity?
12. Name the elements of promotional strategy!
13. What is push strategy?

General English for Business 1 / Business Management Page 52


14. What is pull strategy?

LANGUAGE FOCUS
Preposition of place
In, on, at, under, below, next to, between, among, in front of, in the back of,
behind, above, over, inside, outside, against, through, around, up, down,
across, into, out to, right side, left side, straight, top, middle, bottom, along,
intersection, near, there, here, far, forward, before, after, from, to

B. WRITING
Task 1
Look at the picture then write the position of that place (number 1 – 12)

D. WRITING
Task 1
Fill in the gab with the word in the box

Increased costs loss sales profit margin


decreased improve quater

Sally: managing director of car hire company


Our business is doing really well. The company’s sales .................by 20%
last..................

Karla: manager of a furniture factory in Dortmund Germany


Our............... ........................... is very low at the moment. The main problem is

General English for Business 1 / Business Management Page 53


Task 2
Replace each word or phrase underlined with a word or phrase from the
list which has the opposite meaning:
cash generous profit save well off purchase
worthless expensive poverty take out

1. I was surprised by how mean Charles was.


2. Janet says that she is very hard up at the moment.
3. Last year their business made a huge loss.
4. I’d like to pay in Rp. 100,000,000.00 please.
5. That part of Spain always seems very cheap to me.
6. Most people in the city live in great prosperity.
7. The manager insisted that I paid by cheque.
8. Some people manage to spend most of their money.
9. Jean was able to make only one sale, during the morning.
10. The old painting I found in the loft turned out to be valuable.

C. SPEAKING
Task 1
What are the differences of these methods?
brochures catalogue leaflets packaging direct mail showrooms
point of sale displays stands at trade fairs and exhibition word of mouth

General English for Business 1 / Business Management Page 54


Task 2
Find out an ad then show the ad you have cut from magazine or newpapers.
Present it to you class, covering these point:

 Target customers
 The USP of the product: its features and benefits
 How the ad works in terms of the four stages of ‘AIDA’
 How the style would have to be changed for other markets

Promoting a product involved developing a ‘Unique Selling Proposition’


(USP): The Features and Benefit which made it unlike any of the competing
products.
There are four stages in promoting a product:
1. attract the ATTENTION of potential customers
2. arouse INTEREST in the product
3. create a DESIRE for its benefit
4. encourage customers to take prompt ACTION

English 1 / Management Business / Darmaliana Page 55

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