“"1 | Careers ONS LX PERFORMANCE REVIEWS a Before you read Ina performance review or performance appraisal, your boss tells you how wellyou are doing your job, and things that you must improve. Arethese reviews useful? Why? / Whynot? you're a student, what forms of appraisal are therefor your work? Reading Read ths articlefromthe Financial Timesby Lucy Kellawayand answerthequestions. EE Levaorornicuny @@0 It’s time to sack job appraisals ByLacy Kellaway Last week an e-mail went round 15 survived the fashion in which file even though you know from the office asking for suggestions appraisals are called “career a» experience how much attention fon ways (0 improve our chats” I've done appraisals willbe paid tot later: noneatall performance appraisal system. across a table, on a sofa, even At least I've only had to s My suggestion is dead easy and over ameal suffer one sie of the process. dint cheapr get rid of the whole 20 But Ihave ever leamt have never — thank goodness thing andreplace it with nothing anythingabout myself as aresult, shad to appraise anyone else. This stall Thave never set any target that | must be even worse, as you have ‘Over the past 30 years, 1 Iaterhit. Instead I always fee! as to perform the same Operation we have been appraised 30 times if Lamplaying apanicularly bad_—_with each employee in turn, You = as banker, journalist and non- 2s partygamethat isn't funand that havetolet peoplebelievethey are executive director, I've lived doesn't answer the most basic «» doing more or less okay, because through the fashion for long, question: am I doing a good job? 's00 tiring tellthemthat they compicated forms. I've also ‘The resuing form's then piton aren't doing kay tal 118 © Pearson Education Limited 2012 PHorocoPiARLEunr ' = 2 | Companies 7 % ROMs . Before you read ‘What'sthe bestway tokeep a company's employeeshappyand as motivated? Reading s Read thisarticlefrom the Financial Timesb yStefanSternand answer 7 thequestions. FT LEVEL OF DIFFICULTY @ @ @ « a. . es The real value of managing information and people ' ByStefan Stern a 7 SAS has been a pioneer in the 1 tosavemoney.tocutespensssto_hrinessersanda 3Schourwesk: |g bosiess of “analytics”. This" uytobsing inmorereven,and_ these al fomnpartoltheenployee Tot statherin citliyendedupgrovinglast package n, but also processing yearby 2.2 percent. always say “There is a downside. SAS _ 5 itandgetting thevalue from it ts if youtreat people like they make does not pay the highest wages Chief executive Jim Goodhigh, x a difaence tey will make a inissedor Buti ieasuccesdal says. “When the economic diffeence os business ih low staf trove, downturn started | told everyone ‘SAS has just been named by Most employees seem happy there would be no joblosses,that Fortune magazine as the best with the deal, which is designed Jo we might have fower profs but company to work for nthe US. tormake working hfe easier es | my that was fine with me,” he says. 25 The on-site perks and benefits at these software programmers who “I didn't care because 1 prefer SAS headquarters are remark- 9 inturnkeepSAS's clients happy. keeping everybody's jobs. It able. Medical care, childcare, ceverybodyactuallyworkedharder sports. centres, massage, fond = 7 7 7 a 7 = 7 = 4 120 ©Pearson Education Limited 2012 PHOTOCOPIABLE"2 | Companies INVES DXGL ITALIAN COMPANIES Z Before you read What produds do you thinkof when youthinkofItaian companies? ‘answer the que FT iclefromthe Financial Timesby RachelSandeson and Value of being ‘Made in Italy’ By RachelSanderson, .a Renaissance palace overlooking Florence's AmoRiver Ferruccio Ferragamo, owner of luxury shoe brand + Salvatore Ferragamo, is explaining why his. shoes are “Made in Italy”. Mr Ferragamo's father. Salvatore. put handmade shoes on the feet of Marilyn wo Monroe and Sophia” Loren, Lauren Bacall and Judy Garland Bat many people might th hisson with rising ‘1s manoficturing companies putting alan companies oxtof business. ‘A decade ago, many economists, in laly and outside, ‘were convinced that the small 0 and medium-sized businesses that make up a large part of the country's economy were in decline. The lalians could not compete with rival manufacturing countries in’ Asia. ‘Their productivity wastoo low and too costly. But the country's exports are estimated to have grown 12.5, peer cent this year, with Forecasts of 8 per cent For next year's, growth ‘The surge has been caused by the attraction of "Made in Tal goods (0 the middle classes of rapidly growing economies, including Brazil and China And whether it is sending furniture to Russia, textiles to Egypt, rubber LEVELOF DIFFICULTY @ 0 @ rods to Turkey ng equipment 10 markets ae ly important Forltaly'senvepreneurs. The place where a product is ss made 1s. very” important for Chinese consumers” By some estimates, China is now the Works biggest luxury: market ‘This has allowed the so raise prices by 10 per past 2 months. As MrFerrazamo Says. Weeannot makeenoug 0 keep up with thedemsandfsomtbe Chinese. They want their shoes 4 not just made in aly, bur often made i Florence 122 © Pearson EducationLimited 2012 PHoTOCOPIABLE“"3 | Selling OINWS 1X31 Ee See ce Before you read When businesses sell servcesto other ors thesalespeopleneed? ns, what skills do Reading Reactthisartilefromthe Financial Timesb yStefan Stemandanswer the questions. Eat LEVEL OF DIFFICULTY © 8 @ The days of amateur selling are over ByStefunStern Don’t you just fove it when you 20 get a better all-in deal, But the come trough the arrivals gate at ravelagency through itsamateur the airport and you see a driver approach to buyingand selling, is there waiting for you. holding throwing away alargeamount of 1 upaboard with your nameon it? money How much is that service worth 2s That is the story of a real to you? IF it is a business trip travel business as told (© me by ‘and your company is paying, do Michael Moorman, head of ZS ou kno what price ou will be Associates Chicago-based sales so charged? and. marketing consolaney. Mr I didn'thinkso, Theindividual 20 Moorman is eritieal of some of customer doesn't have this theokl-feshioned,amateurselling Sort of information. The wavel techniques that go on i many paris in your company cn, uses, that ae uns 0 as handle it. But what ifthe travel today’s commercial environment. agency that hey are buying from 3s Anew report fram the UK's doesn't koow the pre either? Cranfield School of Management Good news for your company’s has also desorbed some of the purchasing depariment: they can problems. “The average sales person is @ pleasant individual who knows a lot about their products,” the report says, “but is not able to show how their products are different from the competition, or to, solve the customer'sproblems:” This game has changed. “Today sales people have to £0 in and negotiate with professional negotiators,” Mr Moorman says, You have to be able to speak the Innguage of finance.” It is not good enough to be a “bom salesman" any more, It is the smart salesmen and women who will keep their businessesafloatin themonths ahead. 124 © Pearson Education Limited 2012 PHOTOCOPIABLE“3 | Selling foe ca ray Before youread What is the most difficult thing about selling? Reading Readthisartile fromthe FimncialTimesby Mike Southonand answerthe questions ah LEVEL oF DIFFICUTY @ oe What to do at closing time By MikeSouthon “The most difficult sales task is may have {0 get authorisation solutionswill bring asking for money, or. to use the fram someone higher in the ‘Then there is the most technical term, “closing”. Even 20 organisation. perhaps even the dflicult part of the script.a final experienced sales people will do purchasing ‘direcior This is question in the sile of. "So, do + anything to avoid this unpleasant probably someone who is only we have a deal?” This should be partof the job. So.for abusiness intrested in big discounts Itis @ followed by silence, which may ‘wer, an important partof sales good iden toaska possible buyer feel_ uncomfortable, but if the ‘management is to encourage, or 2 how much they are allowed to sales person breaks that silence even threaten, salespeople io get spend. Then you can offer them the deal could easily disappear. OINVa 1xaL »» them toaskfororders productsorservicesthatthey can Ideally, the customer will break Part one of the sales cycle is afford 45 the silence and say yes, a positive the qualification process: the sales It's useful to practise a good outeome for all concemed. But person should listen carefully 30 closing technique in advance of even if the customer says. no, to the customer's necds and find thekey moment Thiswillinclude itis reasonable 10 ask why and A solution that can be delivered positive summary of the sales perhaps work out how to change Gulch The age tear. the process. explaining the benefits» theirmind more likely at is that the buyer forthecustomer thatthe proposed 126 © Pearson Education Limited 2012 PHOTOCOPIABLEunit 7 7 4 | Great ideas bs Uo aun fal Before you read 7 Where do companiesusually gettheirideas from? oa Reading a Readthis article fromthe Financial Timesby Jonathan Birchalland answerthequestons. bai FT LEVEL OF DIFFICULTY @ @ 0 3 Innovation brings growth . 4 By Jonathan Birchall . } Procter & Gamble the work's P&G. "We wantyouto come to Gd bra plastic bags. Ismast | Tagestconsomer goodscompay. us vith yourbye es frst unexpected goverment research isaglobal iusy leaden nes’ Exteril co-oprtfon as partor maybe the Los Alamos oa Consimer prods inovaton _dlnerel a steam of suecessulRaionl'Lab. the US defence | : 5 According to data from IRI, 2s “big idea” products. Last yea ssearch centre Los the market research firm, it IRIs list included Tide Total Alamos initially helped P&G to 3 produced five of the top 10 US Care, a premium version of its produce one of the chemicals fonfood prod lnnches fst Tide’ detergent” This produc Used. babies nappies using | my year. Its goal is to add another wwas number two by sales on data analysis systems developed vo Thn customers to the estimated a IRI's top 10 list of non-Bod for weapans technology. a din “it arealy reaches, Bob” products 1 yas developed with One of the progemme’s erty MeDotald, ts chet execuve, extemal research fem Sweden's sucess stories was is Oy | f Says. that the row! to more Unwersiy of Land and fram vo Regeers anti-ageing creams : ovation should increasin ‘small chemical companies. which wasbuiltaround achemical ; : ss "P&Gstistofparersincludes ss process develied by Sederma, | 7 ever Iara corporations sich asa French compan. “As. smal Mr fuderoupsConsgraandGeneral compan. weladitle chance ot | MeDonald told this year’s annual Mills. and rivals, gelling inthereuntilP&G changed awards even for companies and Clorox PGi develop fs poly siys Kal Liner, [oy s» research centres that work with Yenure ith Clout to produce « whoheaded Sedermaat te tine 128 © Pearson Education Limited 2012 PHOTOCOPIABLE] oh | Great ideas ACCEPTING NEW IDEAS Before you read ‘The expression Notinvented here’ is used bysomeonetosay thatan idea ornewproduct didnotstart in their department orcompany. Why siteiffcult for organisations to acceptideas thatare'Not invented here"? Reading Readthisarticle fromthe Financial Timesby StefanSternandanswer the questions. FT LEVELOFDIFFICUNY @ : Open your mind to the idea of innovation 3 ' By Stefan Stern g ‘R ‘The three most dangerous words been rejected as part of areview retailer, Hetoldastory ofhowhis jn management? “Not invented process, ]0hadgoneontobecome company had inthe past 20 years here”. “As Henry Chesbrough, 20 highly " successful businesses, brought in new ways of doing executive dircior of the Indeed, the combined value of things again and again. s Center for Open Innovation at these 10 new projects was twic Whether it was ending the University of Califomia, thatof Xeroxitself Hecallsthese 40 commissions. for sales staff Berkeley. has pointed out, senior rejections “false negatives”: the starting to sellon the [rternet, oF management teams can fails innovations had looked bad, but renewingthecompany'sapproach to spot important innovations that wasbecausesenior managers 10 customers. or _expandin 1w because the new ways of doing did notrecogrise theirbenefits, abroad: each time, Best Buy’ business do not easily ft in with Prof Chesbrough was one 45 leadeship did not_make the the way they are doing things of the speakers at last week's decisionseasily.Each time, there now. ve Financial Times innovation were smart people at the top who Researching the performance conference in London The _resistedchange,hesaid Necessary 1s of Xerox. the copier and printer conference also heard _ from, are hard to introduce company,ProfChesbrough found Brian Dunn, chiel executive of as in Best Buy's case, the that, out of 35 projects that had Best Buy. the electrical goods business seemstobedoing fine 130 © Pearson EducationLimited2012 PHOTOCOPIABLEINVE LX3L ou 5 | Stress 132 mest Te tate) Vel Ce tt Before youread What doyoudo when youfeel stressed? Reading Read thisarticlefrom the Financial TimesbyRhymerRighy and answer the questions. FT Beating stress ByRhymer Righy Cary Cooper. professor of ‘organisational ‘psychology and health at Lancaster University, says you need to leam 10 +5 differentiate benveen stress and pressure, which canbe thought of as “good “Pressure is totaling and tmakesyou more productive.” he says. “But when the pressure becomes. greater than your ability to cope, then you're in the bad siress ar Jessica Colling, product director at corporate wellbeing LEVEL oF birricutry @ 8.0 ts consultaney —Vielife, says, leaving workon time.” “Leam to recognise your early 1 Crest time t0 organise your ing. signs — for instance. thoughts, plan your tasks and being irritable, suffering from understand. why sulden kack of around you. yo .S many people are _ working long fnours, then create poor judges of themselves, she 5 good reasons to leave work suggests asking a friend or family member 10 help you spot signs of stress. Prof Cooper. "Even if you enjoy as “There have been so many working from eight until eight, Job cots that workloads have the long term it’s not good increased massively.” says Prof foryou.” Cooper. "People fee! guilty about ©PearsonEducationLimited 2012 PHOFOCOPIABLEoH | Stress TRESS IN THE PUBLIC SECTOR Before youread Arejobs in thepublic sector (schools, hospitals, social worketc.) more orless stressful than those elsewhere? Why? / Why not? Reai Readthisarticlefromthe Financial Times byBrianGroomandanswer the questions FT 134 © 1S Stress-related absence rises ByBrian Groom Staff absence levels remain h er in the public sector than n the private sector, with stress levels Tikely to grow as the government's spending cuts take effectaccordingtoareportby the Chartered Institute of ‘Personnel and Development (CIPD). lis stirvey of 573 organisations with 15m employees found that the recession hashadan effecton the ‘wholeeconomy,withathird ofall employers reporting an increase instress-relatedabsence. Morethana third of employers, noted an inereaseinmental health problems such as anxiety and depression-abigriseonlastyear's vey, when one 2» anincrease, Bot oneal focus on employee well-being andhealhpromotion, suggesting that more could he done. 2s Thesurvey found that average absence was tre days hieher in the public sector than in private sector services, at 9.6 days per employee per’ year compared se with 66 days. Stress was the ‘main eavseot high levelsof long- term public setor absence, th three-quarters of. public sector ‘organisationsputtigstressamong 1s the top five causes of absence More than al of public sector LEVEL OF DIFFICULTY @@@ employers, rated_orgenisational changeandrestructuringasoneof theleadingeausesof work-related so stress, compared with fewer than 40 per cent inother sectors Jill Miller of the CIPD said “The survey shows why closing the gap between public and 4s private sector absence as proved 50 difficult for all goverments ‘over the years. Compared to the privatesector. more public sector engloyeesare inchllenging jobs such as social work, policing, teaching and nursing, where they often have to deal with people in emotionally difficult situations.” Aa 444 4a 44 4 4444444 4"6 | Entertaining aa aa Beforeyou read ‘fyou were invited to an evening of cutting up raw meat, would you go? Why? / Why not? Reading Readthisarticle fromthe Financial TimesbySamanthaPearsonand answerthequestions. FT LEVEL OF DiFFicURY @ @0 Bankers turn to corporate butchery BySamanthaPearson Nine men dressed in expensive who owns the shop and four has become paniculzaly popular suits and white coats covered 2 othersin the capital,saysthatone with companies waning 10 with blood gather round a table. of his butchers started offering entertain clients."Youcould take Among the group are bankers, a one-off classes three years ago.» them to an expensive restaurant 's property developer and some of after requests. from custom but they want to do somethin England's richest men. This is Now there are three sessions a dflerent. We've even had some corporate entertainment in the 3s week and half of the places are vegetarians come.” posi-banking crisis era and they taken up by corporatebockings, ‘Later on in the evening, the are Jearning the art of butchery Borat, a Slovenian butcher 3 men are challenged to hold up '8 at an evening class in central who jointly runs the class, starts a.45kg side of beef in the air for London offby teaching the grouphow to 20 seconds as their colleqeves The class at the Ginger Pig w tell rumpfromribeyesteak After and friends count down, cheer butcher's shop in Marylebone fa ilyee-year degree and take pictues with their hhas become a popular way for in Labljana, Borut so BlackBerrys. Theprizeis a ribeye 1s City institutions to entertain their came 10 London to follow the steak to Take home. Equipped clients inthe recession, as many profession that has been in his with saws and knives, they then cul back on expensive panies. ily forgenerations Duringthe go. about trying 10 prepare the Tim Wilson,the Yorkshire farmer six months, he ysatheclass final cut of beef. 36 © Pearson EducationLimited 2012 PHOTOCOPIABLEunr we an 6 | Entertaining See a Before you read ~ Eriberys when someoneoffersmoneyor agifto someone, forexample in order to obtain a contract.Couldsome corporate 3 hospitality forclients beaformofbuibery? Reading a Read thisaticl fromthe FeoncalTimesbyBobShenwoodand answerthequestions. 7 FT LEVEL OF DIFFICUTY @ @@ a . Bribery law threat to business hospitality . ByBoiSherwood 7 Bosineses are reviewing their of people about this. They are entertainment, because there's corporate hospi m very worried and they should clearlyariskthatanoffencecould . they are worried be ‘worred. People are asking be commited.” added of hospitaty could be ilegal whether they should be holding» MrMoral 4 5 ther new UK bebery laws. corporteentertanmentevens.™ Gary Miller, fraud specialist Livyers say they have been Two UK bankssaid ty vere at layers Mishoon de Reya, | my asked by companies who fear 35 lookingathowentertaining would believed many companies were that they may have to cancel be affected by the legislation, unnecessarily worried and - tigger fosiaity events after Some lawyers are advising that +s execs cued only t0 take we the Brtery Act comes intoferce. breaking the law coud depend a “commonsense” apyroach to Many Ci ‘on the type of hospitality. So, hospitality. If they had ahvays 3 luxary etter so for exarpl,ofering hich at toffee hospitality a8 roatne include international flights and Twickenhamrugby matchmaybe then it was unlikely to attract ’ free tickets to sporting events.as fine. but flyingclients to Australia 50 attention, he suggested, but ss anormal part of business tovwatch reket coud be risky. enersining cliens ata sensitive | Stephen Morra, corporate “Until clear guidelines are time sich when contact was parts at Dawsons Solcors. 3 published, people should be very ueforrenewal, wouldberskier | my said: “We have talked to a lot ‘careful about any lavish form of . "1 7 138 ‘© Pearson Education Limited 2012 PHOTOCOPIABLEuni 7 New business INV LX3L 140 OVE Tot Ta Before you read When you use thetnternet, doyousometimes lookfornewwebsites, ‘or doyou always look atthe ones you already know? Describe your Internet ‘behaviour’ Reading ReadthisarticlefromtheFinancialTimesbyTim Bradshawand answer the questions. BE LEVELOFDIFFICULTY @ #0 Web start-ups buy more TV advertising By TimBradshaw More and more, small titernet start-ups are adverising on television. often within. months of their launch, In the late 1990s, 5 many of the Intemet’s biggest brands ~ such as Gocele, Skype and Amazon—werebuil through ‘word-ofmouth, without paying for offline ads. Talay Google is in advertising on TV and bilboards, and investors are encouraging more oftheir start-up companies totakeadvantageof television Index Vestures_ invests 1s Internet star-ups. Saul Klein, partner at Index. says: “Once you have a clear sense of how mich it costs you to get a customer and the total litime value of that customer, you should start experimenting with as_many differest marketing channels as possible.” Recent e-commerce ‘companies appearing on UK TV include Spotify, the digital music service:Lovefilm.theDVD-rental ‘and online-video service; Glasses Direct, which sells spectacles; Wonga. a loan provider. and Just-Eat, which lets people order from joel fost food takeaways Such companies started off by advertising on Google's search ads, which allow an exact analysis of how much each ‘cost and how much the visitor ‘who saw thead went onto spend. But search ads are most useful npeople know what they are looking for ~ so for companies trying to build awareness for a new kind of online service, TV ads can be more useful 4s “Our goalon TVs to educate people that there isan aliemative to the high street.” says Ki Comiils.chiefexecutiveof Glasses Direct. “Anyone can do. an ad ‘0 online, but people trust TV.” Mat marketing chief at Just- ig t0 target ss cleverabout it, you can advertise at the times of day when people ‘makethedecision toeat," hesays. © Pearson Education Limited 2012 PHoToCoPrABLEunit 7 New business As td ta a Beforeyou read Anentrepreneur is someone who starts anew business, or a series of new businesses, Are you / Could you be anentrepreneur? ‘Why? / Whynot? Reading Readthisarticlefromthe FimncialTimes by Lukeohnson andanswet the questions, Fi 12 LEVELOFDIFFICUTY © Rules of the game have been rewritten By Luke Johnson Entieprencurs of the 21st century are different, The world of business has changed a lot since entered it in the 1980s, and the rules of the game have been totally rewritten. An important factor has been the influence of the Internet. Many start-ups are ‘now online companies oF use the Internet in some way.A 26-year- ‘ld such as Mark Zuckerberg ean createa community of 00miltion users with Facebook employing just 1.000 staff. Facebook alsoan exampleof how investors are willing ~ sometimes ~ 10 back projects that have almost no sales revenues, believing that a profitable businessmodel will, » x ‘come later. ast did with Goose. Every." young company now uses social etworking as fone of its marketing tools. An understanding of how touse Facebook. Twine. Foursquare and the rest important for the success of almost any brand targeted at the young, Each new wave of technology is accepted very quickly, Things used to evolve much more gradually in the past Start-ups are far more likely to be founded by graduates than they used to be. Im the past six years in the UK, there hasbeen a 46percent jump inthe numberof graduates describing themselves, as self-employed. {am sure that 4w will continue, partly because comfortable jobsare much harder to get. Of course, many more people attend university now: yet ‘Gen L left Oxford it was seen 4s by many as"*wasting” a degreeto ‘wantto create a business, Women entrepreneurs are ‘much more common than in the past, with almostonein three UK so start-ups in 2009 founded by a ‘woman, Now women are much ‘more confident and ambitious in their eareers.andithere are plenty of role models of successful ss women inthe workplace. ©Pesrson Education Limited 2012 PHOTOCOPIABLE aaadaa 4“8 | Marketing OINVE DGL MARKETING RT! Before you read Whatare the traditional sports in your countrya)to watch and bb)toparticipate in?Are youa fan of thesesports? Reading Read thisarticlefromthe Financial Timesby RogerBlitzand Rose Jacobs andanswerthequestions. FT The search for new sports fans ByRoger Blitzand Rose Jacobs ‘The National Basketball Asso- (NBA) has. brought product 10 London, once nore pitching the game to an 5 overseas. market in an attempt to expand its product beyond its North American homeland, The NBA had insisted that the LA Lakers-Minnesota Timber wolves wo friendly last month would feel justlikea US-based NBA game. “American football isalso inthe fourthyearofitsownexpor drive On Sunday, the San Francisco 1s A¥erstakeon the Denver Broncos at Wembley stadium in London inthe latest annual attempt tosell the National Football League to a new audience, Sports operators 2» facecompettion romothersports for revenues as well as other Jeisure interests and. aust find new macketsifthey wish ogrow: Consumption can’ be measured 2s both by the numbers participating the sportand those watehing it ‘The NFL and NBA are not the only sports trying to find new markets. Bere Ecclestone, vw the Formula One motor racing chief, has dropped some Venues and created new ones in Singnpore. Babrain, Malaysia and, most recently, South Korea LeveLorprricury @@@ 2 Foottall, the most popular of sports, stil has the Indian and Ghinese markets to penetrate sion in these markets is left to bulvual cts To see wat 40 new fanbasesthey can reach. Sports that enter new markets must bite into the leisure time nd income of people already participating in oF watehing the 4s travitional main sports of their Countries. As David Stern of the NBA puts it: “We just want one in 10 people to bounce the ball rather than kick it." However, she concedes “the growth is different market by market.” 144 © PearsonEducationLimited 2012 PHorocoPiAsie“"8 | Marketing INVES LX4L MARKETING MACHINES Before you read ‘Arecoffee-makingandtea-making machines forthe home becoming popular? ReadthisarticlefromtheFinancial imesby| answer the questions. FT jigSimonian and LeveLoF pIFFicuTY @@@ Stirring up the tea market By Haig Simonian Competiion in the ot dinks market reached boiling point on Wednesday, as a former Nestlé executive Taunched a new tea + making system t0 compete with the Swiss food. group's own recently launched product. The move followed legal action, as NNesllé this week won a. court we batle to ban a rival product in its highly profiable Nespresso busine Bric Favre, previously Nespresso's chief ‘executive, sand who is now an independent businessman, launched Tpresso, anew tea-making system which hhe said he wanted 10 make 3s 1Ocapsulepackcosting €3.50. “the Nespresso of tea”. The Over on the coffee front, a » first machines. to be assembled commercial court in. the Swiss in China from European city of St Gallen gave Nestlé components, will go on sile an important’ legal victory in China in April. with other 0 on Monday when it won its ‘Asian markets next year. and case against discount retailer as Europe possibly flowing, Denner. Denner had been selling The new system. to be sold Nespresso-compatible_ coffee in China for RmbS000 ($756). capsules forabout half the Nestlé followed Nestlé slaunchlastyear 4s price. Last June Nesilé showedits of Special T.atca-making system williggness to defend Nespresso. sodesigned 10 do for tea what which it says. ig. protected by Nespresso has done for coffee. _1.700patents. 1 took legal action Machines for Nesil’s Special against the US company Sara T system, launched initially in 0 Lee. when it launched its 1°Or France, cost €12) ($168), witha Espressomachine. 146 © Pearson Education Lirited2012 PHOTOCOPIABLE“9 Planning INVES LXGL ae Before you read Whats the most importantthing to remember wien planninga businesstrip? Reading Readthis articlefromthe Financial TimesbyRhymer Righy and answer the questions. En LeveLor DiFFICUTY @ Planning efficient business trips By RhymerRighy With business travellers expected todomore workin less time, how do you ensure that you use the time youhavein the best way? s Although itis fashionable at the moment to take public he airport andto ly might not be the best solution, “It might be better 0 be v0 driven to the aiport if it means Yyou can use the time to make cals. says Clare Evans, a ime managementeoaeh *I'sthesame with business clas. tf you're a \s Senior manager and it means You canbe productive i's potentially ne and alert you to delays cheaper Calculatewhat your time ‘Arrange meetings with jetlag is worth” inmind,”saysMsEvans."Ifyou're Iisbenterto getto theairport—_onailong-haul flight from London 20 an hour early and spend the time 3s to 1.0s Angeles, then mornings working. Ms Evans says: “Make are going 1o be better for you.” sureyou alwayshave some work nd the “lower quality time ‘with you, With laptops and smart on administrative tasks such as pphones.a decent lounge isn'tthat e-mail. Unless the flight is very 2 different to your office.” Ensure 10 short, you do need to spend some that youareorganised attheother time resting. “I you're away for fend anddon'ttake any more than fur days, you say be better off carry-on luggage if you can help spending the fight relaxingrather it SitessuchasDopplrand Tiplt than working.” so can help you organise your travel 148 © Pearson Education Linited2012 pHorocoPiasLe“"Q | Planning inva LXab BUSINESS IDEAS THAT TAKE OFF Before you read Why do some business ideas ‘take off and become successful but most donot?Make alist ofallthefactors for success/failurethatyou canthinkof. Reading Readthisarticlefrom the Financial Timesby Alina Dizikand answer the questions. FT LEVELOFoIFFicULTY @ When friendship and fashion equal success ByAlin When launching Gilt Groupe.an __Andtheydidjustthat-Thetwo in spite of intense. competition cnlineshoppingsitethatcurrently 29 foundersusedashort presentation from newer sale sites such as | has 3mmembers.the co-founders toconvey theiridea totheventure _-HauteLook or Rue La Lain the did, not write travtional —_capitalststheyhadfoundthrough «0 US,Giltisstillexpanding quickly. 5 business plan. Instead. Alexis thebusinessschoolnetwork They ‘Launched just before the US Maybank, 35. and Alewndra alsotalkedaboutwhat it waslike recession in’ November 2007, Wilks Wilson.33.took whatthey sto be to Female entrepreneurs, the Gill site offers limited-time had lear from HavvardBusiness pitching an idea 10 male” fashion bargains t0 a restricted School. "You could have taken a dominated venture capital firms. os fist of customer members, and ww good month to write a beautiful “Talking about women’s fashion the site's members can invite 40-page business plan, but you to a bunch of guys in Boston new members 10 use the site could have lostacritial month in se was difficult and’ something that —_Gilt’s business, dominated by its getting your product to market.” hadn't been pitched to them very fashion sales, draws “hundreds says MS Maybank, who adds that many times,” says Ms Maybank. so of thousands of people” checking competition was coming quickly. However, after initial its site each day.the group says. “Youdon’treally know if an idea investment, it took only two mostly at or soon after it opens isgoingto takeoff before putting months to build a site that was its selected daily sales at noon itin frontof customers.” ready to test, Three years laier, New Yorktime. 150 © Fearson Education Limited 2012 PHOTOCOPLABLE- UNIT 0 . 10 | Managing people . EMPLOYEES’ OPINIONS OF MANAGERS 7 Before you read _ Whats the most important characteristic ofagoodmanager? Givereasors ' Reading Readthisarticle from the Financial Timesby BrianGroomandanswer 3 the questions, LEVELOF DIFFICULTY @ @ 0 a FT a = Do you like the way you are managed? ByBrianGroom a z : Research among 3.000 a comsaqunce and 38 por com they comulled employes about |g mpioyees bythe Chartered sayingtherehadbecnan upsurge important cisions az Institute of Personnel and in oflice politics. The proportion «Ben Willmott. Development (CIPD) found the >) of people who said their jobs adviser att a 5 proportion of people happy with made them worried or tense had Employers must ensure their job had increased to +46 also increased and nearly six in rangements for informing and 7 per Gen (percomage.siisied —ensaithey vere wor bythe consulting employees over major mins. percenage disatsied). future so hanges suchas redundancy. are | compared with +26 per cents ‘The survey als highlighted” elective ihe wanttoimprove ve inal survey lst year, probs wih Ms! people ist in 7 However, the CIPD's new are managed. Although most ‘They also need to auareriy Employee Outlook felt std Til. bythe developing linemanagets people | ‘Survey suggested problems were manager, they were less 5 management skills, particularly developing that would damage as with how far thei coaching and "performance = ws employeevell-belngymoraieand discussed” their training manegement, if they. want 10 commitment i nol dealt with development give feulback or boost employee content ‘Three-quarters of employees coached them. Employees were and productivity. They must 7 Sai thir organisation ad been pariulaly erliea! OT senor ensure manger ci spa the iced ty therecessionwihS2.. mangers, with less tan @ ft" early waringsigns of sess and fy 2 percentsayngthttereadbeen agree that they usted hem provide support help people Increases in work-related stressas and only @ quarter agreeing that struggling tocope.” 7 7 152 © Pearson Education Limited 2012 PHOTOCOPIABLE“" 10 | Managing people - = EES 7 Before you read 3 What productsis Switzerland famousfor? ~ 154 Reading Read his articlefrom the Financial imesbyVi-teenLeeand Pablo Cardona andanswerthe questions. FT Victorinox By Vih-teen Leeand Pablo Cardona Vietorinox is famous for its core product = the Swiss army knife ‘The company was Founded i 1884 in Toach, a small tow the German-speaking part of Switerland, by Kat! Elsener. He ‘wanted to create jobs that would be long term. This has remained a comerstone of the company culture. Alter the terrorist attacks on the US in Sepiember 2001. new airline safety regulations around theworldstoppedpassengersrom taking knives on board. Therules hadaseriouseffecton Victorinox. because sales of pocket tools ai airports were important sales channels. Victorinox needed to find a way to survive and todeal vith the fact that there were too many employes Vietorinox. decided not to get rid of workers, However. it stopped hiring new workers, cancelled overtime and reduced the workday by 15 minutes Employees were encouraged to take vacation, sometime advance of when it was du Vietorinox keptall theemployees on its own payroll, while lending 80orsotvotliercompaniesforup ‘six mons, Having committed workers who understand and. share the LeveLoroirricuty @@@ company mission is the goal ‘of many businesses, But few achieve this, ‘The secret .» in the way that Vietorinox has always treated its employees. It created some employee-oriented igement_ systems, such as term employment, training il development opportunitis, 1! a policy which aims 10 better integrate young folder workers, invmigrants, nd people with disabilities inio its © workforce, Italso mai salary ratio between the hi paidandaverage-paid workers, © Pearson Education Limited 2012 PHOFOCOPIABLE 2442440444424 402424 AAA AMO KAMAHAHDMDD ROMANSusr P 11 | Conflict 7 Ese 7 Before you read . Givesomeexamplesotfamily-omned companies inyour county. - Reading 7 Read this article from the Financial Timesby Rahul Jacoband answer the questions. 3 7 FT LeveLoroinicutry 80 ’ ; ee . < Family conflicts in Asian companies ByRahul Jacob a = Hong. Kong. the man and founding fil. Asian business offzeofMeKinsy.theconsul « womar the street show more people typically trust an inner firm, is that in the typical fami interest in the lives of the city’s circle, which ‘starts with the ‘tun business. family, ow! 7 tycoons than perhaps anywhere family. Moreover, in developing ‘and business issues are mixed + else in the worl. On Tuesday, 2 counties. the personel contacts ss together "The mote you can Walter Kwok, who, following between founder and family are separate these three, the longer a a dispute with his brothers and more important than they are in your family business will last,” Sister lsthistake mone ofthe the wes Says Mey 7 world's most valuable property ‘The disputes between the ‘Still, change is happening, w companies, Sun Hung Kai. two Indian billionaire brothers, % even in countries like India, 7 Properies said that he tad been Mukesh asd Ani Amtani-of long. dominated by family ‘offered HK$20bn ($2.6bn) to Reliance Industries. over the companies. ‘The founders of . setlethe Jispute,but that itas past few years have been on an nfosys Technologies, the notenough Epi seals In 203, the younger Bangilore-bsed software firm, 1s The family-controlled public 1s brother. Anil, even flew from ss were so determined to create 7 companies of Hong Kong. are” Monbsiie he Himalyasseekng a profesonally-rn company | characteristic of the n model the god Shiva’s help in the hope that they ordered that none of ‘of management, say observers. of resolving his dispute with his the founders’ children would be ‘The "Asin publi company brother Theproban.saysloseph allowed toworkin thebusiness . ‘>is offen an extension ‘of the 4 Nel whoteads the Hong Kong « _ - " i: a - 5 156 ‘©Pearson Education Limited 2012 pHorocoPiasLe“41 | Conflict 1S CONFLICT AGOOD THING Beforeyouread Dayoulikearguments,ordo youtry toavoid them? Giveyourreasons. Reading Readthisarticlefrom the Financial Times by Stefan Sternand answer thequestions. FT LEVELOFDIFFICULTY @ 0 @ The challenge of conflict ByStefanStern Robert McHenry. chief executive 29 eachemployeespends2.1hoursa consultancy Cognosis has found OfOPP.theOxfond-based business week =roughlyonedayamonth- 0 that managers who deal. with psychology consultancy. says dealingwitheon‘lictinsomeway. conlliet_ successfully will get that some organisations may be Most managers find thisdifficult better performance from their i + hidingconflicsthatshouldbeout —tomanage Some.butnotenough, staf. in the open. “Clients sometimes 2s receive training in the kind of How can you benefit. from i tellus thattheir biggest problem communication skills that cant as disagreement?Conlliet should be = is the lack of confict in their help to resolveconfict. managed. Cognosis has. found. organisations.” he says. “They Ts not all bad_news, In open corporate cultures. vm say that senior leaders create a According to another piece of employees fee! able to challenge culture where people prefer (0m new research, conflict might senior managers. Indeed, “keep their head down’ and not offer the chance to improve your so managers will actively ask them offer feedback or ideas: contlict company's performance. Early for their views. “One of the ‘damages performance." results from the research point to characteristics of effectiveleaders ts OPP — recently "surveyed the role of successfully managed i their ability to both challenge 5.000 employees in Europe and xs conflict in the development of others and’ be challenged ‘America (0 find oul about their effective corporate strategy. In 35 themselves in a positive way.” experience of conflict al work their work with international says_ Richard Brown, managing They found that, on average, businesses. the London-based partner al Cognosis. 158 ‘©Pearson Education Limited 2012 PMOTOCOPIABLEUNIT a 12 | Products . WORKING WITH UNIVERSITIES 7 Before you read " Douniversities work with companies inyourcountry todevelop new ~ products? If so, give some examples (perhapsbydoing someresearch onthe internet) fnot, give somereasons why. ~ Reading = Readthisarticle fromthe Financial Times by Andrew Jackand answer thequestions. 7 FT LEVEL OF DIFFICULTY @@@ _ 7 GSK looks to universities for new drugs ByAndrew Jack a GlaxoSmithKline aims to start to remain in their current jobs RoyalFreeandUniversityCollege i orking this "year"with 1 ratlertanbecomeemployees of Medical School in. London, Univerty“sipenturresearchers" _ ablowehnlogy company. «8 designed 10 develop a eatment in long-term partnerships to 25 Patrick Vallance, senior viec- forarareformofheartdisease.Mr s s help develop medicines more president for drug discovery and Vallance said he planned to sign effectively and cheaply. The development at GSK, said: “We 10 suchdeals this year. Under the be | tim ist work scl) vith Want ponnenhige tht allow agement, Prof Pepys company iealng “medical “reseavier: _univertiy reseaerstoworkall © PenrauirTerapeies rcenesg. fo Over adecae allie Way othe. theway ugh itheendo the small uptron fe allowing GSK velureh of 9 new drug. The will” proket geting abig reward ira fo guiman exclusive lence or Ey allow GSK to use its knowledge medicine is launched." The move his. experimental drug when it while providing the university comes asthe UK pharmaceutical is launched. “It's a wonderful a Teseachers Wile invesimen at SFOUpCUL tock Onexpensivebul idea saldPrf Pepys.“Thusnew Wilibe mor than paid beck ia as productive trfowse research pariestip with GSK is very 1s newdrugt succesful am atts 10 change from exciting” While big’ drug companies investment in thei Owntsearch have often licensed ideas from -centrestowards partnerships with "7 unversites and’ then take Tull ousie developers control, GSK wants instead to 4 GSK has recently signed a 3 » conlinue working wil leading conta with Professor’ Mak tredzal searches who preter Pepys: bead of medicine atthe - - — 7 3 " 160 (© PearsonEducation Limited 2012 PHOTOCOPLABLE“"12 | Products RETURNING UNWANTED PRODUCTS Before you read Returns are productsthat aresentbacktothemanufactureror supplierbecause theydon't work or becausecustomershavechanged their minds. How oftendo you return products a) toshops andb) to online retailers? Isit easy to dothis? Reading Read this aticlefromtheFinancialTimesby Sarah Murrayandanswer the questions. EP By Sarah Murray With computers, transport ‘managers can pack a truck so that only the minimum of space is left emply. They can work out exactly how to fill the vehicle with goods ready for market But what about transporting the “uglies” ~ the boxes of different shapes and sizes’ containing v» broken and unwanted products = back tothe manufacturer? Martin Patten, manager of the technology programme for Europe at Cisco Systems, the 's computer equipment supplier, trucks inthe best way for returns becausepeoplemightusedifferent wrapping or put things in bigger Hidden beauty of the ‘uglies’ boxes.” Worse, products usually ‘need tobe collected fromall sorts of different places. As a result, it ‘can cost four times as much to take something back as to send itout increasing he growth inonline retailing. "With online shopping there’s an atitude of “Tl buy it i 1 don't lke it 11 send it says Jonathan Wright, a senior executive in Accenture’s global supply chain consultancy. “With Internet sales, up (© one in five products gets sent back, which ishuge.” Moreover, if that process is inconvenient, shoppers can go LEVELOF DIFFICULTY @ @0 {o other online retailers for their - purchases. “If returning products isnotcustomer-friendly.it'sgoing to hurt the retaler’s business.” SaysScolt Harkins vee president Of product marketingal FedEx, 4s However, an even bigger challenges onthe way. European Union law now’ requires manufacturers and importers of electronic goods to collect and 4 recycle them at the end oft lives. “The transport of goods afterthesaleof the productisnow ‘as important as it is before the sale, and that’s a huge change.” ss says Mr Wright. 162 ‘© Pearson Education Limited 2012 pMoTocoPiaste