BRITISH COMPANIES CROSS THE ATLANTIC

Next month, a large group of British business people are going to America on a venture which may
generate export earnings for their company's shareholders in years to come. A long list of sponsors
will support the initiative, which will involve a £3-million media campaign and a fortnight of
events and exhibitions. The ultimate goal is to persuade more Americans that British companies
have something to interest them.
While there have been plenty of trade initiatives in the past the difference this time round is that
considerable thinking and planning have gone into trying to work out just what it is that Americans
look for British products. Instead of exclusively promoting the major corporations this time there is
more emphasis on supporting the smaller, more unusual, niche businesses.
Fresh in the memories of all those concerned is the knowledge that America has been the end of
many a large and apparently successful business. For Carringtons, a retail group much respected by
European customers and investors, America turned out to be a commercial disaster and the belief
that they could even show some of the great American stores a retailing trick or two was hopelessly
over-optimistic.
Polly Brown, another very British brand that rode high for years on good profits and huge city
confidence, also found that conquering America, in commercial and retailing terms was not as easy
as it had imagined. When it positioned itself in the US as a niche, luxury brand, selling shirts that
were priced at $40 in the UK for $125 in the States, the strategy seemed to work .But one its
management decided it should take on the middle market, this success rapidly drained away. It was
a disastrous mistake and the high cost of the failed American expansion plans played a large role in
its declining fortunes in the mid-nineties.
Sarah Scott, managing director of Smythson, the upmarket stationer, has had to think long and hard
about what it takes to succeed in America and she takes it very seriously indeed. “Many British
firms are quite patronising about the US”, she says.” They think that we’re so much more
sophisticated than the Americans. They obviously haven’t noticed Ralph Lauren, an American, an
American who has been much more skilled at tapping into an idealized Englishness than any
English company. Also, many companies don’t bother to study the market properly and think that
because something’s successful in the UK, it’s bound to be successful over there. You have to look
at what you can bring them that they haven’t already got. On the whole, American companies are
brilliant at the mass, middle market and people who’ve tried to take them on at this level have
found it very difficult”.

1
This time round it is just possible that changing tastes are running in Britain’s favour. The
enthusiasm for massive, centralized retail chains has decreased. People want things with some sort
of individuality; they are fed up with the banal, middle-of-the-road taste that America does so well.
They are now looking for the small, the precious, the “real thing”, and this is precisely what many
of the companies participating in the initiative do best.
1. The main reason that the British business people are going to America is to
A encourage American consumers to buy their products.
B analyse how American companies attract media coverage.
C look for financial backing from American investors and banks.
D investigate how British and American companies could from partnerships.
2. In the writer’s opinion, the proposed venture will be different to previous ones because
A fewer British business leaders will be making the trip.
B less well-known companies will be better represented.
C the larger companies have decided they will not be participating.
D it involves research into how British companies market themselves.
3. The writer states that Carringtons was wrong to
A be cautious about trading in America.
B borrow money from its European investors.
C assume it was superior to American rivals.
D ignore the advice of its American managers
4. According to the writer, Polly Brown’s mistake occurred when it
A continued to trade despite making a loss.
B attempted to attract a different type of customer.
C tried to break into too many markets at the same time.
D expected American consumers to pay British prices for goods.
5. Sarah Scott states that British companies hoping to succeed in America should
A focused on a gap in the market.
B be less concerned with their image.
C concentrate on selling products in the mid-price range.
D carry out research into the pricing policies of American companies.
6. The writer suggests that success in America depends upon
A adopting a more American approach to marketing.
B persuading the mid-range consumer to pay for quality.

2
 C copying the strategies of American companies.
D building a reputation as a supplier for unique goods.

ETHICS COUNT
Bored with lining your boss’s pockets? Want to work for a company you feel is doing some good
in the world? Join the club. Research shows that nowadays employers’ ethics are often the deciding
factor when someone opts for particular post. Increasingly, companies in Britain are responding to
this situation by drawing up codes of ethics so that current and prospective staff can see how
seriously they take their moral responsibilities. A typical code will address corporate policy
towards its various stakeholders: employers, shareholders, customers, suppliers and the wider
public. Standards relating to suppliers frequently include a commitment to ensuring that there is no
child labour at any stage of the supply chain, and that wages and working hours are reasonable.
As part of their code, some companies, including chain store Marks & Spencer, have joined the
Ethical Trading Initiative (ETI), ‘a membership body that exits to set standards for labour within
supply chains,’ explains David Steele, its Information Officer. Other employers send inspectors on
regular visits to check the ethical standards and practices of all their suppliers of goods and
services- whether in east London or the Far East.
‘Recently, there have been a lot of documentaries highlighting conditions in factories overseas, as
well as on issues like child labour in this country. As a result, workers are now taking a broader
interest in the companies for which they work,’ claims David Steele, ‘The fact that the Internet has
created a global economy is also significant. We no longer think of a sweatshop in Korea as being
so far away.’
Nevertheless, research also shows that some employers write a code of ethics simply to enhance
their image. Upon closer inspection, there may be little real commitment. ‘That’s why candidates
who care about ethical issues should ask at the interview stage not only the whether there is a code,
but whether they can see it,’ advises Rachel Ormond, an academic researcher in ethics and
employment. ‘It should exist in document form, and in many cases it is now included on the
company website.’
‘You might also want to ask whether your prospective employer encourages staff to get involved in
giving something back the society,’ she adds. Employees sometimes do voluntary work, for
example, either wholly or partly in company time, and usually on projects initiated by the
company. The financial services provider Zurich sends staff on one-month secondments to help

3
with projects in India. Marks & Spencer sets up 100-hour part-time secondments for staff who want
to get involved with local community projects.
However, it is not only in order to present themselves as caring employers that companies are
becoming increasingly concerned about ethical issues. Professor Malcolm McIntosh of Warwick
University Corporate Citizenship Unit explains that in our rapidly changing world, organisations
need to have values. Now, he says, business have to take responsibility for such matters as human
rights, environmental impact and social responsibility. ‘Business does not operate in a vacuum. The
rules of the game are such that we have to be aware of all stakeholders, customers, staff and the
communities in which companies operate. You can’t make money unless you understand people’s
value.’
Question 1: In paragraph 1, why does the writer say some companies are introducing codes of
ethics?
A. To help attract new employers
B. To encourage their staff to behave ethically
C. To prove to suppliers that they treat their staff well
D. To help improve their employees’ working conditions
Question 2: The Ethical Trading Initiative’s objective is to ________.
A. advise companies about ethical issues and check on ethical standards
B. ensure acceptable pay and working conditions for everyone involved in producing goods
C. improve the quality of goods sold by its members
D. make sure suppliers behave ethically
Question 3: David Steele believes people are more aware of ethical issues nowadays ________.
A. because of the efforts of the organisation he works for
B. because of media coverage of these issues
C. because some well-known companies have drawn up codes of ethics
D. because they buy goods from foreign suppliers over the Internet
Question 4: Job candidates should ask to see a company’s code of ethics because ________.
A. some companies haven’t yet written one
B. the company may be pretending to have one
C. it may not be posted on the company’s website
D. the company may not really care about ethical issues
Question 5: Some companies now encourage their employees ________.
A. to do charity work in their spare time

4
B. to go abroad in order to get job experience
C. to help people during their working hours
D. to work for one month in the local community
Question 6: According to Professor McIntosh, paying attention the ethical issues will ________.
A. help companies adapt to a changing world
B. teach companies social responsibility
C. improve companies’ public image
D. help companies stay profitable

TROUBLE WITH TEAMWORK

Mary Own examines the role and efficiency of teams
Recruiters say that candidates who can give examples of work they have done as members of a
successful team are in as strong a position as those who can point to significant individual
achievement. Indeed, too much of the latter may suggest that the person concerned is not a ‘team
player’ - one of the more serious failings in the book of management.
The importance of being a team player is a side effect of the increasing interaction across
departments and functional divides. Instead of pushing reports, paperwork and decisions around the
organisations, ‘teams provide a dynamic meeting place where ideas can be shared and expertise
more carefully targeted at important business issues,’ says Steve Gardner, in his book Key
Management Concepts. He adds, ‘Globalisations has added a further dimension to teamwork.
Multi-nation teams now study policy decisions in the light of their impact of the local market.’
But is teamworking being overdone? ‘Some managers are on as many as seven or eight different
teams’, says Dr Cathy Bandy, a psychologist who recently ran a conference on the subject. ‘They
take up so much time that managers can’t get on with core tasks.’ Forming teams and having
meetings has, she says, become and end in itself, almost regardless of purpose. There is also the
danger of an unhealthy desire to keep the team going after the work has been done. ‘People feel the
need to belong, and team membership can provide a kind of psychological support.’
The idea behind teamworking is that, when the right group of people is brought together, a ‘force’
develops which is greater than the sum of their individual talents. This is often true in sport, where
good players can reach unexpectedly heights as members of an international team. However, few
business situations have as clear a set of objective, or as clear criteria of success or failure, as
winning a match.

5
‘In business, everyone needs to be clear about what the challenge is and whether a team is the right
way of approaching it’, says Steve Gardner. ‘Unfortunately, people focus instead on who the
members of the team should be and what roles they are to play.’ Dr Bandy agrees. ‘There is always
a danger that teams can turn into committees,’ she says. ‘In a lot of situations, one or two
individuals would be much more effective.’
So what makes a successful team? There are some general qualities that have been identified. Steve
Gardner recommends that in every team there should be someone who is good at researching ideas
and another who is good at shooting down impractical ones. There should be those who can resolve
the tensions that naturally occur in a team and others who are focused on getting the job done.
Also, providing a clear and achievable target at the outset is the best way of ensuring that the team
will move on to greater things.
Question 1: What point does the writer make about teamworking at the beginning of the
article?
A) Being a team player is now considered an essential management skill.
B) It is the most successful form of management.
C) It has changed the recruitment procedure in companies.
D) Well-run teams still allow individuals to demonstrate their talents.
Question 2: According to the article, teamwork developed within companies as a response to
_
A) changing work practices.
B) modern office design.
C) a reduction in administrative tasks.
D) the expansion of international business.
Question 3: In the third paragraph, Dr Bandy suggests that _________.
A) some teams are created unnecessarily
B) many employees do not enjoy working in teams
C) some managers are not very effective team leaders
D) few teams are well organised
Question 4: According to the writer, teamwork is more effective in the field of sport because
the players ________.
A) know what they want to achieve
B) are more competitive by nature
C) have more individual talent
D) can be driven by national pride
Question 5: Steve Gardner and Dr Bandy agree that when a business team is created people
do not pay enough attention to ________.
A) alternatives to the team
B) selecting the team members
C) directing the team’s activities

6
 D) the structure of the team
Question 6: What is Steve Gardner’s advice on operating a successful team?
A) Select people who fit naturally into certain roles.
B) Maintain a flexible approach to membership.
C) Allow personalities to develop within the team.
D) Make every effort to avoid conflict between members.