Business English Today-1
Business English Today-1
Business English Today-1
TEXTBOOK
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CONTENTS
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CHAPTER I
CULTURAL DIVERSITY IN BUSINESS
Read the following text:
Some people say that first impression count. limited or joint-stock companies, which means
Other think that someone’s character can be that the shareholders who wish to invest in the
judged after a lot of contact in business company can buy and sell parts of the company
contexts and socially. This is why deciding on a on the stock exchange. Many are
supplier or distributor takes varying lengths of multinationals with subsidiaries and assets in
time in different cultures. In the United States different countries and they generally engage
of America and in many Western countries, a in mergers with other companies and
person who does not maintain a good eye acquisitions in order to expand. But just how
contact is regarded as being slightly suspicious. universal are these management solutions?
Americans unconsciously associate people who Are these so-called truths about effective
avoid eye contact as unfriendly, insecure, management truths that can be applied
untrustworthy, inattentive and impersonal. On anywhere and under any circumstance? Even
the other hand, in Japan, children are taught in with experienced international companies
schools to direct their gaze at the region of many well-intended management strategies
their teacher’s Adam’s apple or tie knot. As turned out badly. Because of the unspoken
adults, Japanese lower their eye when speaking rules about the sequence and timing of reward
to a superior, in order to show respect. Let’s and promotions on the African continent, the
have a look at the new breed of international pay-for-performance has been a failure in
managers, educated according to the most many instances. In Southern Europe, similarly,
modern management philosophies. They all management-by-objectives schemes have
know what SBU, TQM, JIT, CFT and MBO mean. generally failed within subsidiaries of many
(SBU = strategic business unit, TQM = total multinationals. And the mistake has been of the
quantity management, JIT = just-in-time, CFT = managers who have not wanted to conform to
customer first team, MBO = management by the abstract nature of preconceived policy
objectives. A new trend for companies is to set guidelines. Even the basic notion of human
up e-marketplaces on the Internet where they resource management, as it does from a
work together on procurement of materials typically Anglo-Saxon doctrine, is difficult to
and parts. These large corporations can be translate to other cultures. The difficulty comes
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from the fact that this doctrine borrows from of origin, the culture they are working and the
economics the idea that human beings are culture of the organisation that employs the. In
physical and monetary resources, assuming every culture in the world people experience
almost unlimited capacities for individual phenomena like authority, creativity,
development. On the other hand, in countries bureaucracy, verification, good fellowship and
where these beliefs don’t exist, this concept is accountability in different ways. The fact that
hard to be grasped and unpopular once it is we use the same words to describe them tends
understood. Thus, international managers have to make us unaware that our cultural biases
a tough task. They must operate on a number and our accustomed conduct may not be
of different premises arising from their culture appropriate or share
FOLLOW UP TASKS
1. Answer the following questions:
1. Which is the problem with universal management solutions?
2. Why can be the pay-for-performance strategy a failure?
3. Why can management-by-objectives schemes be a failure?
4. Which is the problem with human resource management?
5. Can you identify three cultures affecting international managers? Explain them.
2. The verbs below are often used to form collocations that describe relations. Use them to complete
the table: build up, break off, foster, cement, cut off, develop, damage, disrupt, encourage, establish,
endanger, improve, jeopardise, maintain, strengthen, promote, restore, resume, sour, undermine.
POSITIVE MEANING NEGATIVE MEANING
3. In the following sentences, there are two given variants. Choose the correct one:
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1. The trade delegations have been trying to endanger/to foster, the relations between the two
countries.
2. The company is trying to build up/to cut off a sales network, in order to gain a bigger market share on
the European market.
3. Experts say that an unimaginative advertising campaign can easily resume/jeopardise the success of a
new product.
4. Because of a strike at our factory, the production has been resumed/disrupted for several weeks.
5. The relations with our suppliers have been continuously souring/improving thanks to a new
communication system.
6. The image of the company has been fostered/undermined by poor after-sales service.
7. The reputation of a company can be seriously disrupted/damaged by sales staff who are impolite.
8. They told us they were planning to promote/establish branch offices in China.
9. Our sales force has been greatly strengthened/maintained by merging with a US company.
10. The negotiations regarding a joint venture have been broke off/cut off because we could not agree on
several points.
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1. Complete the sentences below with a verb and a particle, to make phrasal verbs. The meaning of
each verb is explained in the brackets at the end of each sentence. Note that you will need to use
some of the verbs and particles more than once and in some cases, you will need to change their form
(past tense).
Verbs: to break, to back, to build, to burn, to call, to carry, to cancel, to cut, to fail, to fall, to find, to
give, to get, to gear, to hand, to hold, to phase, to opt, to put, to run, to stand, to take, to turn.
Particles: across, against, ahead, back, behind, down, in, into, off, on, out, over, up, with.
1. If she decides to take early retirement, she’ll probably ……….. ……….. her responsibilities to her deputy.
(to pass work responsibilities to someone else)
2. We expect negotiations to ……….. ………. Into the night. (to continue)
3. The new system of pension contributions will be ………. ………. over the next two months. (to introduce
/ bring something in gradually)
4. The workers refused to ………. ………. any of their rights. (to hand something to someone, or to lose
something, often as the result of pressure from someone)
5. We don't know if they will agree to our terms, and we won't ………. ……….. until next week. (to discover
a fact or piece of information)
6. There isn't enough work, so we have to ………….. some of you ………. for the day. (to reduce employee's
hours of work because of shortage of work)
7. He ……….. …………… the job he was offered. (to refuse something, such as an offer of help)
8. The manager tried to …………. ………… to the workforce the reasons why some people were being made
redundant. (to make someone understand something)
9. The unions are ………. ……… the proposed redundancies. (to struggle to try to overcome something)
10. Your suggestions sound good. Let's ………. ………. them for a while. (informal: to decide to carry out an
idea or project)
2. Match the questions in the first table with the most appropriate answers in the next table. The
answers contain a definition or an explanation of the phrasal verbs in bold on the left.
1. Would you advise against moving the head office to Edinburgh?
2. Did you manage to turn the company round?
3. Do you think the staff will walk out when they hear the news?
4. Did you manage to get through to the complaints department?
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5. Shall we put back the meeting until everyone can come?
6. Were the management willing to improve on their previous offer?
7. Would the staff be prepared to hold out for a 10% pay rise?
8. Will we be able to hold him to the contract?
9. Can we clock off yet?
10. Have you taken over the company?
11. Are they hoping to build up a profitable business?
12. Did you sort out the accounts problem with the auditor?
13. Have our reps called in to give us their sales figures.
14. Can we pay you half now, and make up the difference next month?
15. Can we get along all right with only half the staff we had before?
16. Do you think the company will close down its branch in Banbury?
17. Are you worried that our partners will go back on their agreement?
18. Did you get my notice? I handed it in on Tuesday.
19. Can you follow up our proposal as soon as possible?
20. Do you think it's time that AZ Products were phased out as a supplier of
spare parts?
A. Yes, they thought they might be able to do a bit better as long as we were prepared to
work harder.
B. Possibly. We'll stop using them gradually while we start using other sources.
C. Well, we haven't actually bought it yet, but we've made an offer to buy most of the shares.
D. No, we didn’t receive anything in writing.
E. Possibly. It won't be the first time they've not done something that they've promised.
F. Yes, I don't think we should do that for the time being.
G. Well, another £60 a week is an improvement, I suppose, but they won't want to wait too
long.
H. Yes, I've had three phone calls already this afternoon.
I. Fine. Credit us with the outstanding balance on your next statement.
J. Well, there has already been some gradual expansion, but it's going to take time.
K. Of course. We'll be examining it in detail at the next meeting.
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L. Well, I certainly think it's a good idea to move it to a later date.
M. Yes, it was making a loss, but now it's a very profitable organisation.
N. I hope so. We've been promised that the terms we've set out will be honoured.
O. I don't know, but if they do, that's the third one they'll have shut this year.
P. We should manage, although everyone will have to work a bit harder.
Q. Yes, it's time to leave. Let's go home.
R. Probably, but we really don't want everyone to stop working and leave in protest.
S. Yes. Everything has been put in order at last.
T. No, they weren't answering the phone.
3. Two managers are talking about building relationships with agents. Put the conversation in the
correct order.
a. Well, I hope you get a result. I must be going. I’ve got to draw up an agency agreement myself, I’ve
put it off far too long already.
b. What exactly was the problem?
c. Yes. Our results were terrible. We tried to build up market share but it just didn’t happen. We just
managed to hold on to what we had.
d. unfortunately, our agent let us down. We thought we could count on him to boost sales but he had
no commitment, no motivation.
e. He should be. He’s got a very good track record. We’d set up a meeting on Friday, but he had to call
it off – something came up.
f. How is it going in Italy, Gina? We didn’t do too well there last year.
g. Well, I suppose you terminated his contract then.
h. Good. Let’s hope he’ll be better than the last one.
i. All the best. Speak to you soon.
j. Yes, there was no way we could renew it. We sounded out a few possible replacements and found
someone else. We get on really well.
4. Underline all the multi-word verbs in the previous exercise. Then, match each one to a verb phrase
with a similar meaning below.
1. have a friendly relationship 6. find out intentions / opinions
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2. depend on / rely on 7. disappoint
3. make bigger / stronger 8. arrange
4. keep / maintain 9. compile / write down
5. delay / postpone 10. cancel
5. Rephrase the following sentences using the phrasal verbs in the previous exercise:
1. The manager announced that we couldn’t hold the meeting the next day.
2. The new sales marketing manager is very popular with his team.
3. He asked me to fix a meeting with them for next week.
4. We decided to keep the same market share as we had the previous year.
5. We have just established a first-class distribution network in the U.S.A.
6. The managers asked all the employees to meet their deadlines.
7. My colleague asked me to have the presentation the next day as we were too busy then.
8. Could you please prepare a contact for next week?
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ADDITIONAL READING
AIG KNOWS EVERYONE IN ASIA
by Shawn Donnan et al, FINANCIAL TIMES
AIG, American International Group, has grown Shanghai in 1919 by Cornelius Vander Starr, a
from a small Shanghai-based underwriting 27-year-old American entrepreneur.
agency into the world’s largest insurer by That historical accident, and Mr.Starr’s
market value. It has a capitalisation of $167bn, quest to expand to the rest of Asia in the
and is firmly embedded in Asian’s corporate ensuring 10 years, are still benefiting the
culture. Indeed, with roots dating back more company. Over the past nine decades, AIG built
than half a century, and the constant focus on on those foundations through endlessly
the region by Maurice Greenberg, its Chairman, pursuing close relationships with Asia’s
AIG has an unrivalled scale of operations and a governments, regulators and powerful
wealth of political and business connections. businessmen.
For other US and European insurers, the Edmund Tse, who runs the Asian
company is both a benchmark and a powerful operations and life insurance worldwide, says
competitor. ‘They know anyone who is anyone AIG’s policy is to build relationships with as
in Asia.’ However, in order to continue to many influential people as possible. ‘If you
prosper, AIG will have to succeed in China – want to do business, you have to be friends
probably the insurance market with the biggest with senior leaders’, he says. ‘You need to be
untapped potential in the world. friends with the head of the state, the minister
After 17 years of lobbying by Mr. of finance, the minister of trade, the {central}
Greenberg, AIG was the first foreign insurer to bank governor and the insurance regulator’.
be allowed into China, in 2002. It now operates AIG believes its three decades spent
in eight cities but admits making only ‘a small during courting China will be rewarded with
profit’ in the country. Today, turning its unrestricted access to its vast insurance
pioneering presence into a commercial success market. ‘The Chinese, always remember good
is AIG’s biggest challenge. friends’, says Mr.Tse. But if its ‘friendship’ with
In China as with the rest of Asia, AIG’s China is not enough to tap the country’s
main advantage over its competitors is its long- potential, AIG may lose its main growth engine.
standing presence. The group was founded in And without a strong Asia, AIG would be a
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much weaker company. But if its friendship granted a licence. Mr. Greenberg knows quite
with China is not enough to tap the country’s a few people. His style has always been to
potential, AIG would be a much weaker discuss big issues- corporate, political and
company. economic – with everyone he meets. One
AIG may be a company of 80,000 analyst refers to AIG as a ‘sovereign corporate
employees and 350,000 affiliated agents in 130 nation’ as Mr. Greenberg insists on
countries but much of its success is down to representing the company in high-level
individual relationships. Many of those discussions. ‘If you are dealing with the premier
friendships have been forged by Maurice or the president of a country, he is not thrilled
Greenberg, the company’s chairman and chief to have a deputy come and see him. Even if a
executive. Mr. Greenberg says that playing the country is not one of the leading nations in the
long game has given AIG an edge, particularly world, that country is important. It’s important
in terms of investing in emerging markets. He to him and it’s important to us.’
courted the Chinese for 17 years before being
FOLLOW UP TASKS
1. Answer the following questions:
a. Who are the following people mentioned in the article: Maurice Greenberg, Cornelius Vander Starr,
Edmund Tse?
b. According to the article, what are the main factors responsible for AIG’s success in Asia?
c. What objectives does AIG have in China?
d. Why is Asia important for AIG?
e. What does Mr.Geenberg see as his role in the company?
2. Find in the article phrases formed of adjectives and noun which mean the following:
a. unlimited entry;
b. representatives connected to a company;
c. developing sales areas;
d. unused possibilities;
e. continuing in the same place for a great length of time;
f. most important countries;
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g. important talks.
3. Which of the following words apply to good communicators in business and which apply to bad
communicators: rambling, focussed, persuasive, fluent, extrovert, eloquent, inhibited, coherent,
hesitant, articulate, reserved, succinct, sensitive, responsive.
Then match them to the following definitions:
a. able to express ideas well; e. clear and easy to understand;
b. talking in a confused way; f. good at influencing people;
c. reluctant to speak; g. outgoing;
d. concise; h. reacting in a positive way.
4. Complete the following text with words formed from the words given:
When the International Energy Agency last week cautioned that high oil process
could be here to stay and called for greater energy efficiency and the …… PROMOTE
of alternative energy source, its warning had a decidedly 1970s feel. The IEA
believes this new rise in oil prices does not merely reflect ….. trading activity SPECULATE
and concerns about ……. In the Middle East but rather the fundamental balance STABLE
of supply and demand. Rising global demand for oil has been driven by strong
economic …… in the US and China, while limited capacity in ….. GROWTH/PRODUCE
and refining leaves the oil market vulnerable to shock and price surges.
But, in contrast to the experience of the 1970s, the impact of $50 a barrel oil on
global growth and inflation has been fairly limited. The rise in the oil price last
year did damp growth but the …… remains fairly healthy. EXPAND
While headline inflation rose last year, core inflationary pressures and, crucially
Inflation …. remain contained. Financial markets do not seem concerned that EXPECT
energy prices will spark higher inflation. Adjusted for inflation, the oil price stands
at only half the level of its 1970s peak. Past efforts at increasing energy efficiency
also make …… economies less vulnerable to an oil price surge. But another INDUSTRY
difference is the greater anti-inflation ………….. of the world’s leading central banks.
The experience of the last year has led to greater confidence that the 1970s provide
a poor guide to ……. events this year. LIKE
In the U.S., last year’s concerns about the ….. of economic expansion have faded. STRONG
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Weaker …… expansions in continental Europe and Japan, meanwhile, leave them CYCLE
more vulnerable to the effect on growth of higher oil prices. But few economists
see the impact of oil prices as the most important factor in explaining weak PERFORM
in these economies, which have struggled to promote domestic, demand-led growth.
5. Complete the second sentence in each pair so that it has approximately the same meaning as the
first sentence. Use between two and five words, including the word given.
1. Could you briefly summarize the main points of the meeting for us? (brief)
Could you give ……………………………. of the main points of the meeting for us?
2. As far as I know, the meeting has been postponed. (best)
To ……………….., the seminar has been postponed.
3. I have arranged for our guest to be met at the airport. (made)
I have …………………. our guests to be met at the airport.
4. Sue is very experienced in giving PowerPoint presentations. (considerable)
Sue …………………………….. of giving PowerPoint presentations.
5. The presenter failed to emphasize the benefits of the reforms. (place)
The presenter failed to …………………………. the benefits of the reforms.
6. They plan to launch the new product next month. (scheduled)
The launch ………………………………….. next month.
7. Do you think you could guide me a bit on how to structure my presentation? (some)
Do you think you could ……………….. on how to structure my speech?
8. These reforms will significantly reduce government spending. (significant)
These reforms will make …………………………. government spending.
9. We bought these laser jet printers to replace out old ones. (as)
We bought thses laser jet printers ……………………………. our old ones.
10. Mrs. Wilkins heads the Human Resource Department. (of)
Mrs. Wilkins is ………………………….. the Human Resource Department.
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CHAPTER II
MANAGING ACROSS CULTURES
Read the following text, then answer the questions:
‘
Today, whether we work in Berlin or Dubai, required only one set of corporate objectives,
Brasilia or Beijing, New York or New Delhi, we goals, policies, practices, products and services.
are all part of a global network (real or virtual, This is often made impossible by the local
physical or electronic) where success requires differences – cultural habits, beliefs and
navigating through wildly different cultural principles. The conflict between ‘globalisation’
realities. Unless we know how to decode other and ‘localisation’ has led to the invention of a
cultures and avoid easy-to-fall-into cultural new word ‘glocalization’. Companies that want
traps, we are easy prey to misunderstanding, to be successful in foreign markets have to be
needless conflict, and ultimate failure.’ aware of the local cultural characteristics that
Erin Meyer, The Culture Map: Breaking affect the way business is done.
Through the Invisible Boundaries of Global Richard Lewis has classified different
Business cultures according to three ‘poles’ representing
Technology and globalisation have different types of behaviour. In Britain, the USA
made global expansion far more accessible for and Germany, businesspeople are generally
business around the world over the past organized and rational, acting logically rather
decade. In a constantly evolving world, the act than emotionally, planning in advance and
of going global must be accompanied by the doing one thing at a time. This is called the
ability to conduct business in a manner that is ‘linear-active’ culture. Respecting the rules,
efficient, but also sensitive and respectful to regulation and contracts represent the key idea
the unique differences that are weaved into of this culture.
the fabric of intercultural communication. ‘Multi-active cultures’ that exist in
Multinational companies can either Southern Europe, Latin America and Africa
attempt to use similar management methods attach more importance to feelings, emotions,
in all foreign subsidiaries, or adapt their intuition and relationships. People are more
methods to the local culture in each country or flexible, they are good at changing plans, they
continent. Managing a global multinational are happy to improvise and they like to do
company would obviously be much simpler if it many things at the same time. Their belief lies
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in social and company hierarchy, respecting In conclusion, prior entering a new
each person’s status. A Dutch theorist, Fons country, actually a foreign market, it is essential
Trompenaars, calls them ‘particularists’ – to explore the human resource policies and to
persons who believe in personal relationships adapt them so that they are beneficial to the
and friendships over rules and regulations. In foreign employees and subsidiaries. Employees
discussing people’s relationships with their are affected by the cultural values of the
boss and their colleagues, Trompenaars society they live in and it defines their
distinguishes one more category, that of the expectations. Human resource teams must be
‘universalists’. They believe that rules are mindful of these cultural differences in order to
extremely important, thinking that the recruit successfully, retain, support, and
‘particularists’ are corrupt. Universalists say communicate with foreign employees. We
that particularists cannot be trusted as they will witness a growing globalised economy, where
always help their friends. On the other hand, more and more businesses continue try to
the particularists say that the universalists adapt to the new requirements, so cultural
cannot be trusted as they would not even help sensitivity is needed more than ever.
a friend. Successful companies are those with an ability
The third category of people are those to practice business across cultures by
ones who are in ‘reactive cultures’ in Asia. They considering and respecting the unique
prefer to listen to and establish the other’s differences that make up the various societies
position and then react to it. They try to avoid and groups that inhabit our world.
confrontation; they rarely interrupt their
interlocutor and they often avoid eye contact.
USEFUL LANGUAGE
to fall into = to go down quickly, to be caught into (a trap);
to evolve = to emit, to derive (transitive verb); to undergo a change (intransitive verb);
weaved into = to interlace into cloth, to produce by elaborately combining elements;
to attempt = to make an effort to do, to accomplish;
obvious = easily discovered, seen or understood;
to avoid = to keep away from, to prevent the occurrence or effectiveness of;
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prior = earlier in time or order;
to be mindful of = to be conscious or aware of something;
to retain = to keep in possession or use;
to witness = to testify to, to furnish proof of;
to inhabit = to occupy as a place of settled residence to habitat, to live in.
FOLLOW UP TASKS
1. Answer the following questions:
a. How would you define ‘glocalisation’?
b. What is the basic idea of the particularists?
c. What is the basic idea of the universalists?
d. What do you understand by ‘reactive culture’?
e. What do you understand by ‘multi-active culture’?
2. Match the following words with the definitions below: compromise, collectivist, confrontation,
connections, eye contact, glocalization, improvise, interrupt, intuition, logic, lose face, status.
a. Looking directly at the people you are talking or listening to;
b. To cut into someone else’s turn to speak;
c. To be humiliated or disrespected in public;
d. Believing that the group is more important than the individual;
e. Respect, prestige or importance given to someone;
f. To do something, when necessary, without having already planned it;
g. People of influence or importance with whom you are associated;
h. Understanding or knowing without consciously using reason;
i. Reducing demand or changing opinions in order to agree;
j. A face-to-face argument;
k. Thought based on reason and judgement rather than feelings and emotions;
l. An invented word combining worldwide and regional concerns.
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3. Use the words given in capitals to form a word that fits in the space
Students learning English as a second language are sometimes given a word by their teacher and asked
to give an …………………. (1) EXPLAIN as to what that word means; in other words, to provide a
……………………. (2) DEFINE. The …………………………. (3) ASSUME is that if you know a word, you can define
it. ……………………….. (4) LOGIC, that might make sense, but in reality it is not always ………………………..
(5) REASON to assume that. There are words and phrases that even native speakers use in
conversation without much …………………….. (6) THINK which can lead to ……………………… (7) CONFUSE
when you ask a native speaker to define them. Take the ………………… (8) CONCEIVE of ‘zeitgeist’, for
example, which has entered English from German. It’s ……………………………. (9) DOUBT much easier to
use than it is to define. With a word like ‘zeitgeist’, it may be more ………………………. (10) SENSE to test
the student’s understanding in ways other than asking them to define it.
4.The prefix il-, as in illogical is often used to make a positive word negative. Which of the words in
bold in the following sentences are negative forms of positive words?
a. It’s totally illiberal law that’s just going to restrict our freedoms further.
b. The lights illuminated the building beautifully at night.
c. The magician didn’t really cut his assistant in two – it was only an illusion.
d. Several senior politicians Have resigned over the illegality of the war.
e. She had an illustrious career as a local politician.
f. There is a beautiful illustration on the next page.
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6. The prefix counter, as in counterproductive, is sometimes used with nouns, adjective and verbs
to suggest the idea of ‘opposite’. Write each of these words with counter- in the correct gap.
Countermeasures, counteroffensive, counterpart, counterbalance, counterintelligence,
counteract, counterattack, counterculture.
1. The government will have to take some ………………………….. to stop the inflation increasing.
2. The reports by independent journalists will hopefully …………….. the government’s
inaccurate propaganda.
3. The army’s planning to mount a …………….. later today.
4. As a spy during the war, I was often involved in ……………………., where we tried to stop the
enemy from discovering our secrets.
5. If he accuses me of lying, I’m going to ……………………. By saying I know he lied about the
sales figures last month.
6. We have to ……………….. this rise in crime by toughening up the sentencing laws.
7. You will have to speak to my …………….. in the New York office.
8. I’m not interested in mainstream art; I’m far more concerned with art produced in the
……………
7. Complete the second sentence so that it means the same thing like the initial one. Do not
change the word given. You may use between three and eight words including the word given.
a. I do like this job, but I sometimes wonder if I’ve chosen the right career. AGAIN
I do like this job, but ……………….. I wonder if I’ve chosen the right career.
b. We were just about to leave for the airport when we heard all the flights had been cancelled.
POINT
We were ……………….. for the airport when we heard all the flights had been cancelled.
c. I’ll just finish this e-mail and then I’ll be with you. SECOND
It ………………… finish this e-mail and then I’ll be with you.
d. She would hand in her resignation immediately if she could find a better job. HAT
She would hand in her resignation …………….. if she could find a better job.
e. The manager was determined to stop all gossiping at the company. END
The manager was determined to ……………….. to all gossiping at the company.
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CHAPTER III
INTERNATIONAL MARKETING
‘One of the strengths of marketing is the way it constantly adapts and responds to changing
conditions’
Read the following text:
The world’s youth prefer Coke to tea, trainers 1,378. They also own 437 and franchise 1,180
to sandals – wrote one marketing specialist outlets in the rest of the world. It first expanded
recently. This implies that tastes everywhere from its home market to Japan in 1996 and is
are becoming similar and homogenous. But the now present in more than 30 countries. There
watchword should still be Think global, act has already been introduced the living-room-
local. Acting local means having local market in-a-coffee-house format in Mexico, Germany,
knowledge: there are still wide variations in Spain, Austria, Puerto Rico, Greece, Oman,
taste, customs, behaviour, and expectations Indonesia and Southern China. Starbucks
between customers in different markets, even ‘corners’ or mini-outlets, are found in airline
markets that from the outside look very similar, offices, sports stadiums, airports, hotels and
such as in Europe or Latin America. It means, bookshops. Copy-cat coffee-bar chains have
for example, recognising attachments to local emerged, only to be swallowed by Starbucks or
brands, how business is done in each place and forced to merge with competitors. Fortune and
so on. fame, however, have not come without their
Of course, there are issues that a company with critics. Some analysts say the company was
a global presence has to address. But even forced to globalise because it had saturated its
companies that seem as if they have been home market. Others say the Japanese
global for ever has to start from a home base. experience has not been a happy one. Security
For example, it took McDonald’s 20 years to concerns forced the company to retreat from
become a truly global organisation. Similarly, Israel, and the anti-globalisation movement
anyone who knows the Starbucks story can now has Starbucks stores on its hit list.
already visualise potential outlets in the most In aspiring societies such as Mexico and Chile,
fashionable neighbourhoods of the capital American companies are generally well
cities. From a single store in Seattle’s Pike Place regarded and any novelty from abroad is
Market in 1971, Starbucks today owns 3,907 guaranteed to arouse curiosity. Both the Lima
stores in North America and licences a further and Santiago Starbucks have been packed since
19
opening their doors, and the company has - Direct investments: the company buys a local
rolled out 15 stores in Mexico City since form, or sets up its own manufacturing
launching its first – cleverly located beside the subsidiaries.
US embassy. Roman Perez Miranda, head of It is obvious that these different
Latin America for Interbrand, agrees. ‘Mexico is arrangements require different levels of
the closest Latin America gets to the US, both commitment, investment and risk. Kotler talks
geographically and culturally’, she says. ‘It was about the internalisation process, where firms
an obvious starting-point for Starbucks in the move (hopefully) through these stages:
region’. - No regular export activities;
But the question is how to enter - Export via independent
overseas markets in the first place? Philip representatives/agents;
Kotler enumerates the various methods. - Establishment of overseas sales subsidiaries;
- Indirect exports: exporters use an - Establishment of production facilities abroad.
intermediary, such as an export agent, to deal This process will help them to progress
with buyers in the overseas market; towards global thinking and local action as they
- Direct exports: companies handle their own expand internationally. At different stages,
exports, for example by setting up overseas companies will have different levels of
sales offices; understanding of the markets where they are
- Joint ventures: two companies, for example an trying to develop. Each step in the process
overseas firm and a local one, may work requires different levels and types of support.
together to develop a particular market;
FOLLOW UP TASKS
1. Answer the following questions:
a. Where and when did Starbucks begin?
b. How many stores does it own in North America and the rest of the world?
c. Which overseas market did Starbucks enter first?
d. Which four problems has Starbucks had?
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2. Complete these statements with the following expressions: buying habits, political stability,
economic situation, government bureaucracy, monetary regulations, income distribution.
a. Because of tight …………. company profits could not be taken out of the country.
b. Red tape and other examples of ………………….. hinder a company’s entry into the market.
c. The ……………………. is improving leading to a rise in employment.
d. The purchasing behaviour of consumers can be described as their ………………..
e. The country is attractive to exporters because it has enjoyed ………………. for the last 50 years.
f. …………………… is a term used by economists to describe how wealth is shared in a country.
4.Match the following basic marketing terms to the definitions: distribution channel, market
segmentation, product features, market opportunities, market skimming, sales representative, market
penetration, price elasticity, wholesaler, product differentiation.
1. The strategy of setting a low price to try to sell a large volume and increase market share;
2. The extent to which supply and demand (the quantity produced or bought) of a product responds to
changes in price;
3. The attributes or characteristics of a product, such as size, shape, quality, price, reliability, etc;
4. Someone who contacts existing and potential customers, and tries to persuade them to buy goods
and services;
5. Setting a high price for a new product to make maximum revenue before competing products appear
on the market;
6. Possibilities of filling unsatisfied needs in sectors in which a company can profitably produce goods or
services;
21
7. Making a product appear to be different from similar products offered by other sellers, by product
differences, advertising, packaging, etc;
8. Dividing a market into distinct groups of buyers who have different requirements or buying habits;
9. An intermediary that stocks manufacturers’ goods or merchandize and sells it to retailers and
professional buyers;
10. All the companies or individuals involved in moving goods and services from producers to consumers.
5. Complete the following definition of marketing by inserting the verbs given: persuade, design,
modify, develop, influence, identify
Marketers have to (1)………………….. or anticipate a consumer need; (2) ………………. A product or service
that meets that need better than any competing products or services; (3) …………………….. target
customers to try the product or service; and, in the long term, (4) …………………………… it to satisfy
changes in consumer needs and market conditions. Marketers can (5) ……………………….. particular
features, attractive packaging, and effective advertising that will (6) …………………………. Consumers’
wants. Marketing thus begins long before that product or service is put on the market; it combines
market research, new product development, distribution, advertising, promotion, product
improvement, and so on.
6.Three words in each group make compound nouns with the word in bold. Find them:
1. price promotion / rise / product / range
2. sales figures / conditions / forecast / targets
3. brand awareness / loyalty / image / contract
4. advertising campaign / exchange / agency / slogan
5. product market / range / features / manager
6. market survey / research / sector / check
7. marketing strategy / leader / campaign / budget
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e.g. a manufacturing subsidiary, a network operator, a phone conversation
2. Noun + noun compounds can often be transformed into structure where the second noun becomes
the subject.
e.g. company executives = executives that work for the company
FOLLOW UP TASKS
1. The words in the following noun phrases are in the wrong order. Write the phrases in their correct
form and then make sentences with them.
a. highly marketing report confidential
b. extremely rate exchange volatile
23
c. rapidly sheet balance improving
d. overseas expanding operations
e. highly research market ambitious programme
f. department new public relations
g. impressive figures sales really
2. Read the definitions in column A and form compound nouns adding words from column B and
column C:
A B C
1.an administrative assistant working for a person a. personal a. room
2. goods and services tax b. value-added b. seas
3. the activity of keeping good relations between an c. public c. card
organization and the public
4.the most important office of an organization d. head d. assistant
5.a room where the people who control a company meet e. board e. supplies
6.a large building for storing things before they are sold f. ware f. loan
7.A person in charge of a meeting organization g. chair g. storm
8.a person who owns shares in the company h. share h. line
9.a person whose job is selling things in a shop or directly i. sales i. house
to customers
10.the materials such as paper and pens that are needed j. office j. port
in offices
11.a company or shop that makes travel arrangements k. travel k. tax
for people
12.a journey taken for business purposes l. business l. holder
13.a small plastic card that can be used as a method of m. credit m. site
payment
14.the department that deals with finding and managing n. human n. worker
employees
15.the group of people who work in a company o. work o. relations
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16.a time or day by which something must be done p. dead p. class
17.information about reactions to a product r. feed r. force
18.a person who you work with q. co- q. trip
19.in, from, or to other countries / relating to a foreign s. over s. office
country
20.an official document that allows you to travel to t. pass t. resources
foreign countries
21.the best and most expensive ona plane or in a train u. first u. back
22.to suggest a lot of ideas for a future activity very v. brain v. agency
quickly
23.a page of information on the Internet w. web w. top
24.money that is borrowed from a bank y. bank y. man
25.a computer that is small enough to be carried around z. lap z. person
easily
3. How many of these verbs also exist unchanged as noun? what are the nouns related to the other
verbs?
1. appeal 6. consume 11. gain 16. situate 21. need
2. battle 7. Cost 12. Increase 17. mature 22. risk
3. brand 8. cycle 13.prefer 18. research 23. target
4. centre 9. develop 14. share 19. switch
5. compete 10. forecast 15.manage 20. forecast
4. Do the following words generally form partnerships with the word market or marketing?
1. …………………………activities 6. ……………………….. expenditure
2. …………………………share 7. ……………………….. environment
3. …………………………potential 8. …………………………effort
4. …………………………opportunities 9. ………………………… demand
5. ……………………….. mix 10. ………………………. programme
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5. Complete the following text on market research, using the following words: statistics, significant,
respondents, opinions, launch, inventory, gather, data, concept, promotions, habits, annual,
packaging, guesswork, analyse.
Oh no, we’d never developed and (1) ………………… a product solely on the basis of (2) ………………………..
That’s much too risky. You can’t just trust the intuition of senior managers or product managers, you
have to do market research. That’s how they call it in Britain. In the States they say marketing research.
We collect and (3) ……………………. Information about the size of a potential market, about consumers’
tastes and (4) …………………………., their reactions to particular product features, packaging features, and
so on.
Lots of people think that market research just means going out and asking consumers for their
(5)……………………………… of products. That is not true. Actually, talking to customers is relatively minor
market research tool, because it’s very expensive. In fact, personal interviewing is the very last thing
we’d do. We usually find that our own accoutns department, which keeps records of sales, orders, (6)
………………………... size, and so on, is a far more important source of information. Our sales
representatives are another good source.
There are a lot of printed sources of secondary (7) …………………… we can use, including daily, weekly
and monthly business newspapers, magazines and trade journals, our competitors’ (8) ……………….
Reports, official government (9) ……………………, and reports published by private market research
companies. We only engage in field work, and (10) …………………. Primary data from customers,
middlemen, and so on, if both internal research (analysis of data already available in the accounts and
sales departments) and secondary data (available in printed sources) are inadequate.
If we do go out and do field work it’s usually a survey, which you can use to collect information about
product and (11) ………………. Features, and to measure the effectiveness of advertising copy,
advertising media, sale (12) ………………….., distribution channels, and so on. An effective and relatively
inexpensive method of survey research is the focus group interview, where we invite several members
of the target market (and pay them a small amount of money) to meet and discuss a product (13)
…………… The interview is led by a trained market researcher who tries to find out the potential
customers’ opinions and feelings about the product. Focus groups are informative, but they’re usually
too small for us to be sure that the chosen sample of consumers is statistically valid. Questionnaire
research, involving many more (14) ……………., is more likely to be statistically (15) ………………………., as
long as we make sure we select the appropriate sampling unit – whether it’s a random sample of the
26
population, or a sample of a selected category of people – and the sample size is sufficiently large.
When we’ve established a sample, we do the interviews, normally by phone call or mail, sometimes
by personal interviewing.
CASE STUDY
In small groups, choose one of the following businesses and think about how you would go about
launching it in your town:
- A taxi company
- A home-deliver pizza service
- A gym and fitness center
- A language school
- A juice bar
Ideas:
1. The concept of the product: what exactly would the business offer?
2. The location: what would be the ideal location?
3. The name of the business and its logo. What kind of design would you use?
4. Pricing: would you try to compete on price, by being cheaper than competitors or would you try to be
better or different and charge a higher price?
Once you have some ideas about the product in general, decide how you could do some market
research to see whether potential customers would be interested. Which of the following market
research methods would you use?
- Questionnaire research: asking questions by phone or personal interview
- Focus group interviews: getting several potential target customers to meet and discuss the product
concept
- Secondary data: studying different statistics, business newspaper, amgazines, reports published by
private market research agencies, etc
WRITING
Write a short report (150-200 words) either outlining your product concept and plans for the business,
or explaining what research you undertook and what the results were.
27
ADDITIONAL READING
WIKINOMICS AND THE FUTURE OF COMPANIES
Experts are forecasting that in the future companies will use the Internet and the ‘wikinomics’ principle
(from wiki, the Hawaiian word for ‘quick’ and economics). This means collaborating with people
outside the traditional corporate structure, letting people around the world cooperate to improve an
operation or solve a problem, and paying them for their ideas. This is an extension of the trend of
outsourcing: transferring some of the company’s internal functions or operations or jobs to outside
suppliers, rather than performing them ‘in-house’. In other words, companies will no longer need to
get all their knowledge from their own full-time employees. Here are two examples from Don Tapscott
and Anthony D.Williams’ book Wikinomics: How Mass Collaboration Changes Everything: Red Lake, a
Canadian gold mine, wasn’t finding enough gold and was in danger of closing down. Then, its chief
executive heard a talk about Linus Torvalds, the inventor of Linus, the open-source computer operating
system. He decided to put the company’s secret geological data on the Internet, and offered a prize
money to experts outside the company who could suggest where undiscovered gold might lie. People
around the world recommended 110 targets, and 80%of them turned out to contain gold. The
company’s value has risen from $100m to $9bn.
If Procter & Gamble is looking for a anew molecule to clean red wine off a shirt, it can use its own
scientists. But there are 1.5 million other scientists around the world. The company can offer a payment
for a successful solution, and see if a scientist somewhere comes up with one.
CHAPTER IV
A SUCCESSFUL BUSINESS
SPEAKING ACTIVITY
1.What makes people successful? Choose the five most important words in the list below and add
more words:
dedication money looks nepotism discipline luck, imagination ruthlessness
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2. Talk about a person you know who is successful. Why are they successful? Use the following words:
charismatic, communicative, bossy, coherent, diplomatic, extrovert, intuitive, inspiring, rational,
reliable, sensitive, helpful, tolerant, supportive.
3.Complete the statements using the following words: leader, shares, customer, innovation, brand,
people, profit, subsidiaries, workforce, headquarters.
A successful business… a. is often the market ………………..
b. has a motivated ………….
c. is always making money and increasing its …………
d. has a loyal ……………. base.
e. has a world-famous ………….. and an instantly recognised logo.
f. is always making money and increasing its …………..
g. issues …………….. which are worth millions on the stock exchange.
h. has its ……………… in a prestigious location.
i. has branches and ………………. All over the world.
j. treats its employees well and is …………….. orientated.
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talk about a product ‘whose time has come’ world to follow. The conclusion of these
meaning that the technology to meet a experts and academics is that self-
particular need may exist for a long time before improvement, entrepreneurial flair, access to
the product on which it is based takes off. At capital, vibrant institutions and a good
the beginning, cost may be a factor, but as time education system represent the most
passes, a critical mass of users develops and important factors for success. The countries
costs come down, and no-one can understand mentioned above possess these to very varying
how they could have lived without that certain degrees. In conclusion, it is difficult to pin down
product. So, another key factor lies in the the exact formula for success at a particular
products. time. Companies have a particular culture that
When it comes to companies, success factors is the result of their history, short or long. If
include energy, vision, innovation, and managers and their consultants change them
efficiency. But many of the companies that radically, for example by downsizing them, they
were thought to possess these attributes may be ripping out the very thing that makes
twenty years ago or three years ago are not them tick. Companies and cultures that were
those we would think of as having these successful under earlier conditions are very
qualities today. Management trends are big hard to change in a genuine way, even if they
factors that influence the way companies are want to adapt to the new management trends.
run today. Management books, gurus, There will always be a number of refuseniks,
influencers have a lot to answer for and once unless convinced otherwise by a charismatic
something becomes a mantra, everybody leader. Refuseniks are the managers and
starts doing it. Still, objective measures of the employees who refuse to change just because
relative efficiency of each type of company are they can’t understand how the things that
hard to find. made the company in the past are no longer
Germany, Sweden and Japan are economically valuable, and they could face failure. In start-
successful companies which became models ups, one reason for developing new products is
that everyone wanted to imitate. In the 1970s, that they can develop a culture and a recipe for
experts and academics went to these countries success from a scratch. The key to success lies
to look for the magic ingredients. In the 1980s in the ability to adapt. The U.S.A. proved to be
and 1990s, they went to the emerging a world leader in adapting old organisation to
economies of the Asian tigers. After that the US new technological conditions. Think of all the
economy was held as a model for the whole industries that have had amazing turnarounds
30
from earlier difficulties. On the other hand, competition we do not have a market. So,
innovation is equally important. Without innovation represents another key element in
innovation we have no competition; without achieving and maintaining success in economy.
USEFUL LANGUAGE
- personality make-ups = the qualities or temperament that constitute a personality; disposition;
- to meet a particular need = to provide what is needed;
- critical mass = the minimum size or number of resources required to start or maintain a venture;
- flair = a special or instinctive aptitude or ability for doing something well;
- refusenik = a person who refuses to follow orders or obey the law, especially as a protest;
- turnaround = an abrupt or unexpected change, especially one that results in a more favourable
situation;
- start-up = to begin a new company, organization, or activity.
FOLLOW UP TASKS
1. Match the following words and definitions:
1. Subordinate A. when someone is raised to a higher or more important position
2. Strategy B. the section of economy under government control
3. Public sector C. something you plan to do or achieve
4. Promotion D. a situation of danger or difficulty
5. Objective (N) E. a person who provides expert advice to a company
6. Innovation F. a person with a less important position in an organisation
7. Crisis G. a new idea or method
8. Consultant H. a plan for achieving success
2. Complete the following sentences with these words: supervise, innovations, setting, communicate,
resources, board of directors, manageable, achieved.
1. The top managers are responsible for the ………………….. that will allow a company to adapt to a
changing world.
2. Managers have to check whether the objectives and targets are being ……………………..
3. There is no point in …………………. Objectives if you don’t ………………… them to your staff.
31
4. Managers have to decode how best to allocate the human, physical and capital …………………… available
to them.
5. Managers have to make sure that the jobs and tasks given to their subordinates are ………………..
6. Managers have to …………………………….. their subordinates and to measure and try to improve
their…………………………..
7. A top manager whose performance is unsatisfactory can be dismissed by the company’s ………………..
3. Match up the following verbs to form common collocations:
To allocate Subordinates
Communicate Information
Develop Jobs
Make Objectives
Measure People
Motivate Performance
Perform Resources
Set Strategies
Supervise Decisions
GRAMMAR REVIEW
PRESENT AND PAST TENSES
Complete the rules with the words present simple, present continuous, present perfect simple, present
perfect continuous or past simple.
1. We use the ………………………………………… to describe habitual actions, situations and actions which
are generally true. e.g. They sell their products on many markets.
2. We use the ……………………………………… to describe an action that is happening in the moment of
speaking. e.g. They are negotiating the terms of the contract right now.
32
3. We use the ………………………………… to describe an action or event in the past whose results are seen
in the present. E.g. The company has done very well recently.
4. We use the ……………………….. to describe an action that started in the past and it is still going on for
a known period of time. E.g. She has been working at the project for two months.
5. We use the ……………………………………… to describe completed actions or events which took place at
a particular time in the past. e.g. We met the CEO of the competitive company yesterday.
FOLLOW UP TASKS
1.Fill in the gaps with the correct form of the verb given in brackets:
a. Profits ………………. (increase) in the company since 2017, which is a great achievement. We hope that
it will continue.
b. I ……………. already (read) the book twice and I also ……………….. (see) the movie.
c. Their company ……………. (face) a lot of financial problems for a long time.
d. The CEO ………………. (announce) several changes.
e. My car ……………….. (break) down when I ……………….. (drive) home from work. I ……………….. (fix) it if I
……………….. (know) what was wrong. But I didn’t so ……………….. (have) to take it to the garage.
f. When he ……………….. (found) Microsoft, Bill Gates was only 20 years old. He ……………….. (already write)
his first computer programme six years earlier.
g. An accident ……………….. (happen) near my house last night. A car ……………….. (hit) a young man. He
……………….. (ride) his bike when someone in front of him suddenly ……………….. (open) a car door. Many
people ……………….. (see) the accident. The police ……………….. (interrogate) them last night.
h. Mrs Smith said that one day she ……………….. (retire) from teaching. She said that she ………………..
(spend) her new free time learning about computers.
i. Where you ……………….. (hide) the money?
j. At last ,my favourite team ………………..(win) against its most important rival.
2.Each of the words and phrases in bold is incorrect. Rewrite them correctly.
1. How many articles has he wrote for that journal?
2. I’m never been to China. What is it like?
3. Have your heard? Their company is launching a new product on the market.
4. You’re lucky you caught me – I’ve just came through the front door.
33
5. Why you haven’t tell Mary yet that you’re thinking of dropping out of the course?
6. They have just announce the merger of the two companies.
7. I’m afraid they haven’t understand the instructions.
8. We had been waiting for two hours now.
ADDITIONAL READING
Read the following text:
34
Jobs, who lived in Mountain View in Santa success only added to with the release of
Clara, California. After completing his school in Finding Nemo. Pixar made Jobs a billionaire. His
California, Jobs went north to Reed College in triumph there also reminded people of his
Portland, Oregon, but dropped out after one ability to predict the technological future.
term. Back in California, he became a regular at Apple asked him to return. He came back in
the Homebrew Computer Club, along with 1997 and within a year the ailing company was
another young man, five years his senior, with once more making handsome profits. His latest
his own visions of the future: Steve Wozniak. venture may turn out to be the most influential.
In 1976, when Jobs was 21, he and Wozniak Since the emergence if High-speed Internet the
started their own computer business, the Apple music industry complained that it was being
Company, in Jobs’ family garage. With a mission brought to its knees by the pirates of
to produce affordable personal computers the downloading. The dream of hundreds of
pair went to market with the Apple I shortly companies had been a way to harness the
afterwards. A local company ordered 25 of the desire for music on the Internet and turn it into
prototypes and the pair went on their way. The profit. Jobs believed that iTunes was the
almost instant success of Apple I and its sister answer. But then, Jobs did not believe in
Apple II launched them. By the age of 25, Jobs underselling his companies. ‘This will go down
was worth $165m. in history as the turning point for the music
Apple was the first landmark in Jobs’ career but industry’, he told Fortune magazine at the
by 1985 he was on his way out after John launch of iTunes in the US.
Sculley, who had joined the company from Journalists who have followed Jobs career have
Pepsi-Cola, decided it was time to drop the also seen another side of his personality when
pilot. Four years later Jobs returned with he walked out of the interviews, irritated at the
another computer company, NextStep, which line of questioning and refusing intrusions into
never achieved the success of Apple but his personal life. He wasn’t known for his
reminded people that he was far from finished. patience. ‘We can’t have a heroic figure
What was later hailed as Jobs’ second coming without a fatal flaw’, was the assessment of
started with his involvement in Pixar, the David Plotnikoff, writing a profile in the local
animation company he bought from the Star paper. ‘Jobs … exudes arrogance of a certain
Wars director, George Lucas, and renamed. blast furnace intensity that people find hard to
The hit movie Toy Story instantly established it overlook … With Jobs, it was never enough to
as one of the key players in Hollywood, a say ‘We’re right on this and they’re wrong.’ No,
35
it was always ‘We’re right on this and they’re as it were, for finding other geniuses and
idiots.’ But Plotnikoff added: ‘There is simply no promoting their brilliance.
way the Mac could have been born without
that supreme confidence.’ If there has been a From The Guardian
theme to Jobs’ success it has been his genius,
Useful language
- astonishing success = surprising success, amazing success;
- visionary = a person who is characterized by vision or foresight;
- to drop out = to exclude somebody/something;
- to go to market = to launch on the market
- landmark = a prominent identifying feature of a landscape;
- to exude = to release gradually; to make apparent by mood or behaviour;
- blast furnace = a large structure in which iron is heated under pressure so that it melts;
- to drop the pilot = to dismiss someone who is trusted or relied on;
- to hail = (vb) to salute, to greet; (noun) precipitation in the form of spherical pellets of ice;
- key players = very important persons;
- ailing company = a company which is becoming weaker;
- handsome profits = a large, generous amount of money;
- to bring to one’s knees = to completely defeat or overwhelm someone;
- to harness = to bring under control;
- to undersell = to present an idea with little or insufficient enthusiasm;
- turning point = a decisive moment; the point at which a very significant change occurs.
FOLLOW UP TASKS
1. Answer the following questions:
a. What was Steve Job’s first success?
b. Why were the following dates important? i. 1976; ii. 1985, iii. 1997
c. What made him a millionaire? What made him a billionaire?
d. Why did he leave Apple?
e. How long did it take to turn Apple around?
36
f. Why did he come back?
g. Why do you think Steve Jobs was successful?
2. The following words are formed with a prefix. Match the common prefixes from the box with the
correct meaning below: underselling, renamed, co-founder, out-vote, ex-president, misinterpret,
ultra-sophisticated, overproduce.
- again - extremely
- too little - badly
- with - better/more than
- opposite - too much.
- former
3.Put the words in the correct column: polite, fortunate, respectful, considerate, satisfied,
appropriate, friendly, efficient, honest, formal, practical, dependent, understood, interpret, patient.
Im- Dis- Mis- In- Un-
4. Complete the sentences with one word only, according to the context.
1. Generally business people consider very …………………. To have breakfast meetings because you can
do a ‘2in1’. You can have breakfast and have a business meeting at the same time.
2. They were ………………………. With the meeting: everybody was on time and it even finished on time.
3. Jennifer is very…………………………..; she likes having a good relationship with her colleagues.
4. I have never met anyone so ………………………. He is always mixing things up and never gets anything
right.
5. If she continues to act in such an ……………………. Way, I’m sure she will be fired soon.
37
5. Choose the correct alternative, according to the context:
1. Von Karajan will ____________________ the orchestra at the concert. (DIRECT/CONDUCT)
2. Did Alexander Fleming ____________________ penicillin? (INVENT/DISCOVER)
3. The cuts in spending will have a serious ____________________ on the educational system.
(EFFECT/AFFECT)
4. Staying indoors was a ____________________ thing to do in this kind of weather. (SENSIBLE/SENSITIVE)
5. You should always be ____________________ to children. (SYMPATHETIC/KIND)
6. He made ____________________ faces and made the children laugh. FUN/FUNNY).
7. I am very tired; I’ll just go and ____________________ down for a few minutes. (LIE/LAY)
8. She has been in ____________________ plain for over three days.(CONTINUAL/CONTINUOUS)
9. He asked me if I would ____________________ him some money until Monday. .(LEND/BORROW)
10. The ____________________ wants to see you in his office. (PRINCIPLE/PRINCIPAL)
11. We must try to protect ____________________ and the environment(NATURE/COUNTRYSIDE)
CHAPTER V
MOTIVATION IN A COMPANY
SPEAKING ACTIVITY
1. One of the most important responsibilities of a manager is to motivate the people who report to
him/her. But how? What kind of things motivate you?
This is a list of motivators. Which of these would be important for you in your choice of a job? Classify
them in order of importance. What other motivators would you add to the list?
38
- Good remuneration (salary, commissions, bonuses, perks);
- Job security;
- Good working relations with your line manager and colleagues;
- Good working conditions;
- A challenging job;
- Responsibility;
- Contact with people;
- Opportunities to travel;
- Long holidays;
- A strong belief in what the organization does;
- Promotion possibilities.
39
threatened with losing their job. The same where they do not exist. Workers who have
theory assumes that most people are incapable them take them for granted, As Herzberg says,
of taking responsibility and need to be looked ‘A reward once given becomes a right’. He
after. This has traditionally been applied by claims that things like challenge at work,
managers, regarding factory workers in large- recognition and responsibility, promotion, etc
scale manufacturing. are considered to be ‘motivators’. People will
On the other hand, Theory Y is based on the not perform well unless people are motivated
fact that most people have a psychological and want to do a good job. However, there will
need to work and if they have the required always be boring, repetitive and mechanical
conditions such as job security and financial jobs for the unskilled workers. And the idea of
rewards, they will be creative, ambitious and motivating these workers is extremely
self-motivated by the satisfaction of doing a challenging to managers. One solution is to give
good job. Peter Drucker considers that this them responsibilities, not as individuals but as
theory is probably more applicable to skilled part of a team. For example, in a supermarket,
professionals – managers, scientists, engineers, the manager can form a team by combining
specialist – than people in unskilled jobs. office staff, the workers who fill the shelves and
These two theories are based on Abraham the people who work on the checkout tills. This
Maslow’s famous ‘hierarchy of needs’, as team has to decide on what product line to
Theory X relates to the lowest order needs at stock and how to display the merchandise.
the bottom of the pyramid while Theory Y Another idea regarding motivation at work is
relates to the highest order of needs, such as connected to the importance of a company’s
esteem, achievement, status, and shared values, called corporate culture. Such
responsibility. Studies widely consider that values, being the best airline, hotel chain or the
McGregor’s theory is the foundation for the most reliable products, with which staff can
modern people-centred view of management. identify, are more likely to motivate workers
Frederick Herzberg, another well-known than financial targets, which ultimately concern
theorist of the psychology of work, considers just a few people. The downsize of this idea is
that good conditions at work are not sufficient that not all competing companies can claim to
to motivate people. These are merely be the best in a certain field.
‘satisfiers’ or more importantly ‘dissatisfiers’
40
FOLLOW UP TASKS
1.Answer the following questions:
a. Which theory claims that employees have to be closely controlled?
b. Why do employees have to be closely controlled?
c. Which theory claims that employers should give workers responsibility?
d. How should employees be given responsibilities at work?
2.Classify the following factors according to their importance and Give reasons for your first choice
and last choice.
- Responsibility;
- Good working conditions;
- Good administration and good labour relations;
- Contact with people;
- A challenging, interesting, and creative job;
- Opportunities to travel;
- Holidays;
- An adequate wage or salary.
4. Complete the first part of each word in bold with the second part in the box.
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-an -ance -ance -ans -ary -ated -ation -ay -ble -ck -count -ction -dancy -den -dex -diture -ears -
ect -ement -ensurate -eration -et -ge -ger -hting -imum -kage -ked -lement -lf -mance -me -me -
nus -ock -ome -osit -oss -roll -se -shake -sion -slip -te -time -tions -tive -ub -ve
1. Some companies offer their employees st ……………. op ………………. , which means that the employees
can buy stocks at a price lower than the normal price.
2. Some companies have incen……….. pl…………….. , where they offer their employees extra rewards and
benefits for good attendance, increased productivity, etc.
3. The amount of money an employee receives each hour, day, week, etc, is known as an hourly / daily /
weekly ra…………………………...
4. If an employee loses his / her job because the company doesn't need or can't afford to keep him/her,
they might receive redun…………… p…………… .
5. Some companies offer their employees a dis…………. on the product and services they sell, which means
that the employee can buy them for less than the usual price.
6. If an employee takes a job in another town or city which is a long way from his / her original home and
place of work, he/she might be offered a reloc…………. allow……………….
7. Extra money paid to employees who work in jobs where there is a risk of personal injury is called
dan……………….. money.
8. Gr……………. is an adjective used to describe an employee's earnings before tax, national insurance,
etc, have been removed.
9. N………… is an adjective used to describe an employee's earnings after tax, national insurance, etc,
have been removed.
10. When the money that an employee receives rises automatically by the percentage increase in the cost
of living, we say that it is in……………….. -lin…………….. .
11. When the money that an employee earns is based on age, experience, qualifications, position in the
company, etc, we say that it is comm……………… .
12. Wages are normally paid in arr…………….. , which means that they are paid at the end of the working
period (for example, at the end of the week or month that the employee has worked).
13. When an employer pays an employee his/her wages directly into his/her bank account, we say that it
is paid by dir…………… dep………….. .
14. Some wages and salaries are perfor…………. rel………….. . This means that the money that an employee
receives will be based on how well he/she carries out their duties.
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15. When an employee leaves his/her job after a long period with the company, he/she might be offered
a large amount of money known as a gol…………… hand……………….
16. A wa……….. is money that is normally paid to an employee on a weekly basis, and a sal…….. is money
that is usually paid to an employee monthly on a regular basis.
17. Remun………… is the formal word for money that an employee receives for doing his/her job.
18. When we work for more than the normal working time, we say that we work (and therefore earn)
over………… .
19. An automatic and regular increase in pay is called an incr……...
20. If we remove money from somebody's wages (for example, because they are late), we say that we
do……… their wages.
21. Money that is removed from our earnings to pay for tax, national insurance, etc, is called a dedu…………
5. Change the neutral verbs and expression in bold in sentences to more ‘formal words using the verbs
and phrases in the box. Each sentence requires only one word or expression.
address adjourn adjust administer admonish analyse annul
appeal to appoint assess at assign audit avert await
award
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15. We need to examine in detail the market potential of these new products.
6.Each of the following sentences has a mistake in vocabulary. Find it and correct it.
1. Getting angry with your boss is productive because it’ll just make a bad situation worse.
2. You have to be prepared for every event in this line of work.
3. The headquarters of the company looks a bit future from the outside but it’s quite traditional inside.
4. A business suit is timely – it never goes out of fashion.
5. The possibilities for expansion are unending if their project proves to be successful.
6. There were over 150 appliers for the position.
7. Their company is one of our main competitions.
8. After a period of self-employment, it is difficult to become just another employer in the company.
9. The My wildest expecting was exceeded by the salary they offered me.
10. The rate of employee started to decline last spring.
PHRASAL VERBS
- Crop up = appear or happen suddenly or unexpectedly;
- Dive in = start doing something in a very enthusiastic way;
- End up = be in a particular place or state after doing something;
- Kick off = begin with;
- Knock off = stop working;
- Knuckle down = start working hard, especially when you should have done this earlier;
- Lay off = end someone’s employment, especially temporarily;
- Lie ahead = if something lies ahead it is going to happen to you in the future;
- Make up = work at different time from usual because you haven’t worked enough at the normal times;
7.Make sentences with the phrasal verbs above.
8.Write a phrasal verb from the exercise above in the correct form in each gap:
1. As soon as the food was brought out, everyone ……………… and helped themselves.
2. You should turn off the TV now as it’s time to ……………. And get on with your homework.
3. Her nephew can ………………….. a whole day playing computer gamer with his friends.
4. They ……………………… having to scrap the whole advertising campaign and start again.
5. If their business does well, they’ll hopefully be able to ……………………. a part-time assistant in the
spring.
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6. Let’s ………………… this course by introducing ourselves.
7. No student really knows what …………………… for them career-wise in the future.
8. She usually ………………….. work at about five so she’s home by six thirty most afternoons.
9.Complete the sentences with one of the following words: consultant, executive, marketing,
multinational, effective, efficient, leave, redundant, headhunted, sacked, fire, strike.
1. My niece used to work at this firm, but she was ………………… by another major multinational
company.
2. We couldn’t believe they …………….. Josh just for taking a few paperclips at home with him.
3. How long is the union planning to ……………. for?
4. They wouldn’t ………….. someone just for stealing a bit of stationery, would they?
5. His son is on ………………….. from the armyh at the moment.
6. Due to the loss of sales, they had to make several employees ……………
7. They consider that robots are often much more …………………. than people.
8. They consider that the advertising campaign was ……………….. in that it increased sales by over 40%.
9. His wife is a freelancer business …………………..; companies hire her to solve particular problems they
are facing.
10. Her dad’s senior …………………… in that multinational company.
11. How much budget was there for the ……………….. campaign?
12. I don’t know if she would like to work for a large …………………… corporation.
45
CHAPTER VI
JOB SATISFACTION IN A MULTINATIONAL COMPANY
SPEAKING ACTIVITY
1.Which of the following do you think would motivate people to work harder in a multinational
company. Choose your top three and motivate your answer.
Praise good colleagues promotion opportunities hard-working boss bonus
Commission a better working environment threat of redundancy bigger salary
Bonus more responsibility working for a successful company.
46
a trusted counsellor and mentor in the company to give them guidance and if they understand about
all the benefits and compensation and if they feel that they are getting adequately rewarded for the
work they do. So, you can see it is a very comprehensive survey and you get a lot of data back from
that. We take it seriously and we look at the action steps that we must take in order to this a wonderful
place to work.
I: In your experience, have job priorities among employees changed much over the last ten years?
H.T.: Yes, they have certainly changed in the last ten years. We’ve seen a huge move in terms of how
people want to get their work done. Some people want to work on a reduced schedule. This idea is
something new. Some other ones want to work from home as opposed to having the commuting time
coming to the office. Other people want to work exceptionally hard but they still have energy left at
the end of the day and end of the week in order to give something back to the communities that they
live and work in, in order to have a social life outside work whilst still making a significant contribution
to their business. One of the areas here that’s important is flexible work arrangements. As an employer
you can really help generate a positive working environment and one where individuals are very
satisfied by offering a range of different options. So, for example, looking at part-time work, not just
for mums coming back from maternity leave, but for junior managers, but also for senior managers
potentially working four hours a week. One of our boards in finance work four hours a week spending
the fifth day with his children. As we look at parents’ ability to manage child care, what happens if your
child is sick so that you can have an emergency cover for your children, so you can focus on your work
knowing that your child is being well taken care of. We also look at what happens if someone has to
travel on an emergency basis and perhaps, they’re looking after and older relative at home, or you
have young children, or even pets that they need to take care of and how do we help them with that
provision. In terms of job priorities, another are that people are very interested in is understanding
the environmental impact of where they’re working. Thus, some people will choose their workplace
based on the ethical standards and the principles and values of their employing company. There is a
lot of emphasis on sustainability, meaning from a manufacturing point of view, if they are using raw
materials from renewable sources, or in an office environment if there is significant recycling of waste
materials happening. We’ve recently introduced a car share scheme, so that we’re not having as much
emissions and as much traffic for the local area.
47
2. What other factors might persuade people to work for Procter&Gamble, apart from flexible working
conditions?
3. Why did Procter&Gamble introduce a car share scheme?
5. Complete the sentences with words and phrases from the above exercise:
1. Managers consider that a good way to monitor and develop staff and loyalty is by using ……………….
Interviews.
2. When she left the company, she received a very generous ………………….
3. In traditional high staff turnover industries, offering ………….. rather than a salary increase can be a
way of retaining employees.
4. Surprisingly, several job satisfaction studies show that ………………….. is not the most motivating
factor.
5. Large businesses and organizations are affected by the fact that they need to deal with …………………
which is a very time-consuming and demotivating problem.
6. The majority of people like to have control over their work and therefore they put …………… near the
top of their list of motivating factors.
7. If it is not spotted early, overwork can lead to …………….
PHRASAL VERBS
In the text above you have some examples of phrasal verbs. Let’s learn some more.
- Back up = make a copy of information on your computer; give support to someone by telling the others
that you agree with them;
- Change around = move things so they are in different positions or places;
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- Change into = stop being in one state, condition or form;
- Change out of = take off the clothes and put on different ones;
- Do away with = get rid of;
- Do up = repair, paint and improve a building;
- Switch on/off = start/stop a machine;
- Fade away = disappear slowly;
- Key in = put information into a computer or other electronic device;
- Make into = change someone or something so that they become something else;
- Mix up = put things together without any order;
- Take apart = separate an object into pieces;
- Test out = try using something such as a machine or product;
- Turn into = change and develop into something different;
- Use up = use all the supply of something;
- Wear out = use something a lot so that it no longer works.
Make sentences with them.
6. Complete the following sentences, using a phrasal verb from the following: cut off, die down, drop
in, eat out, fall for, fill in, find out, get along with, get away with, give up, hand over, hang around,
hang up, let down, look up to, make up. There are more phrasal verbs than you need to use.
1. The teacher made it clear to us that we won’t ……………….. cheating at the test.
2. It’s important to have a good relationship with your boss and ………………….. your colleagues at work.
3. We were asked to ……………………… an application form before we were interviewed.
4. She is a great a reliable friend who never …………….. me.
5. Many small companies have been ……………………. from the outside world as a result of bad
management.
6. I don’t want to cook today so let’s ………………. for a change.
7. They were visiting the town , so they just ………………………. to say hello.
8. The police ……….. the suspect …………………. to the FBI and they brought him to a federal prison.
9. You should wait until the noise ……………………………… before you start your presentation.
10. When the child saw there was no way out, he ……………………………… and admitted that he had lied.
11. He finally ……………………. Who sent him the message.
49
GRAMMAR REVIEW
PAST TENSES
Complete the rules with the words past simple, past continuous, past perfect simple, past perfect
continuous.
1. We use the ………………………………………… to describe completed actions in the past, situations and
actions which are generally true about the past.
e.g. They sold their products on many markets last winter.
2. We use the ……………………………………… to describe background events in progress in the past.
e.g. They were negotiating the terms of the contract while we were visiting the company.
3. We use the ………………………………… to describe an action or event in the past that happened before
another action in the past.
e.g. Their company had done very well before they merged with the other company.
4. We use the ……………………….. to describe actions and situations continuing for a known period of
time, up to another moment in the past.
e.g. She had been working at the project for two months when she finally handed it in.
5. We use the ……………………………………… to describe past habits, particularly for the distant past.
e.g. Our ancestors would rely on the power of slaves rather than machines.
6. We use the ……………………………………… to describe past habit and states, particularly for the distant
past.
e.g. It used to seem strange to communicate over long distances.
FOLLOW UP TASKS
1.Fill in the blanks with the correct form of the verbs:
1. Rosie should know all the details about the meeting because I (to tell) her everything yesterday.
2. A month ago I (to get) a letter from him but I haven’t replied.
3. She told us she was resigning because the pressure at work (to become) too much for her.
4. We don’t know who’s responsible for this because we (not to work) here long.
5. My brother (to get) a new job a week ago so he (to move) away.
6. Ann (to wait) for me when I (to arrive).
7. They (to negotiate) for more than an hour already when we (to arrive).
8. They (to build) the headquarters a few years ago and ever since they (to work) there.
50
9. Mrs. Smith said that one day she (to retire) from teaching. She said that she (to spend) hew new
free time learning about computers.
10. I (to see) a film a week ago, but I (not enjoy) it very much because I already (to read) the book. If I
(not read) the book I probably (to enjoy) the film more.
2. Complete the second sentence so that it has a similar meaning to the first one. Use the word given
at the end of the sentence. Do not change the form of the word. You must use between three and
eight words.
1. She started working at eleven and she was still working at six in the evening, when you called. BEEN
‘When you called, ………………………………………………………………………………………… seven hours’.
2. As a child I disliked violin lessons but now I’m starting to enjoy them. USED TO
I ……………………………………………………. violin lessons, but now I’m starting to.
4. It’s about three years now since she starts to learn Italian. LEARNING
She ………………………………………………………………………….. three years.
5. When we were children, we often went to the seaside with our grandparents. WOULD Our
grandparents …………………………………………………….. to the seaside as children.
6. None of the phones were left when we got to the shop. TIME
………………………………………………………….., all the phones had been sold.
7. Until they fire me as manager here, I’ll run the company my way. LONG
…………………………………………………….. the boss, I’ll run the company my way.
8. The day at the seaside was fun even though it was cold. FACT
……………………………………. too cold, the day at the beach was fun.
9. It’s not possible you saw Jane last night as she was with us. HAVE
You ………………………………………………. last night, she was with us.
10. Perhaps she heard the story from the manager. HAVE
The manager ………………………………………………… story.
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3. They had to walk home after the party because Mary ………………………………. her car keys.
a. had been losing b. had lost c. was losing d. had been losing
4. Don’t throw the paper away because I ……………. It yet.
a. Hadn’t read b. haven’t read c. didn’t read d. haven’t been reading
5.His book ………………………….. over a million copies already this year.
a. had sold b. have sold c. had been selling d. has sold
6. She was tired because she ……………………………………… on the project seven hours.
a. has been working b. was working c. is working e. had been working
7. …………….. Jan …………………… for the competitive company before he came to us last June?
a. Has worked b. Was working c. did work e. had worked
8. We ………………….. for you for two hours. Where you ……………?
a. were waiting/were b. Have been witing/have been c. are/are d. waited /were
4. Write a word from the box in each gap. You can use each word more than once.
Already before ever just recently since so still until yet
ADDITIONAL READING
PERKS THAT WORK by Robert Burke
52
they have to be custom-fit to the company and
Keeping people happy is an increasingly the business sector. Don’t add new perks just
tough trick. With unemployment at record because they seem like hot trends, he says.
lows, ‘companies are trying just about ‘Too often there’s a desperation sometimes to
anything’ to retain employees, says Jay Doherty just try anything, and it’s very expensive.’
of the New York based human resources MicroStrategy, which reported lower earning
consulting firm William M. Mercer Inc. Not only earlier this year, has been rethinking its cruises,
are employees being pampered, they’re for example.
getting more money, better benefits and help Yet companies still face labour crunches
with personal problems such as child care and that can really hurt. How do you keep workers?
financial planning. Bosses once shunned such Start by making them feel they’re part of a
intervention. Retention ‘is no longer a human special place with a unique culture. ‘We want
resource issue’, Doherty says. to hire people that are totally aligned with our
values’, says Tim Huval, general manager for
South Dakota-based Gateway’s 2,200-
Because technology companies face the employee call centre and manufacturing facility
tightest labour markets, they have been the in Hampton. ‘Honesty, efficiency,
most aggressive in devising ways keep workers. aggressiveness, respect, teamwork, caring,
Herndon’s -based Net 2000 Communications, common sense and fun. Those are values that
for example, puts top performers behind the we live by.’ Richmond-based Xperts also lives
wheel of luxury cars like a BMW 323i or Z3. by the value system. Founder and CEO William
MicroStreategy, a Vienna-based data miner, Tyler pushes pairing quality of life with a sense
goes a step further and has hosted all of its of social responsibility.
employees on Caribbean cruises. Workers can designate which non-
Such perks are great for the employee, profit group Xperts contributes to, for example.
but do they make sense for the company? A strong culture makes it hard for people to
Maybe. Doherty says all companies – including leave. Tyler says, they don’t have an urge to
technology firms – ‘have to be careful they leave because they’ve found a home. They’re
don’t create a business model that’s not happy. Notice this corporate culture stuff
profitable’. Don’t throw money at workers who doesn’t say much about shareholders or profit.
want to leave because pay raises don’t always It’s a decidedly employee-centric approach. ‘If
work. Perks and benefits can be effective, but you ask any of them, they’re going to say, ‘Pay
53
me more money’. But that’s not the truth.’ employees leave into a single category.
Tyler says. ‘What people are looking for is, ‘A Employees take time off when they need it and
place that’s looking out for me.’ don’t have to call it a sick say or vacation.
What that means is helping employees ‘Work-life issues are huge,’ Bailey says. ‘You
cope with problems they face outside the make them feel as though they’re not
office. ‘That is where companies can build interested in looking elsewhere because
employee loyalty’, says Barbara Bailey of they’re happy with their life.’
William M.Mercer’s Richmond office. One
popular tool is revamping leave policies to From Virginia Business Online
create ‘flexible leave banks’ that put all
USEFUL LANGUAGE
- To pamper = indulge with every attention, comfort, and kindness; to spoil;
- To shun = to persistently avoid, ignore or reject;
- custom-fit = personalized with regard to shape and size;
- crunch = Informal – a crucial point, situation, typically one at which decision with important
consequences must be made; formal – making a loud but muffled grinding sound;
- to align = place and arrange in a straight line; give support to a person, organization or cause;
- to devise = plan or invent a complex procedure, system or mechanism, by careful thought;
- host = a person who receives or entertains other people or guests;
- perks = benefits usually given by a company to employees, such as a phone, a car, a laptop;
- to designate = to appoint somebody to a specified office or post
- to urge = try persistently to persuade someone to do something;
- to look out for = to take care of someone and make sure that they are treated well.
FOLLOW UP TASKS
1.Complete the text with the following words: achieve, actualize, avoid, earn, exist, expect, maximize,
perform, pursue, require, reward, set.
One of the most important elements of any manager's job is to motivate his or her subordinates to do
their jobs well and to be productive. Two very well-known theories of motivation among managers are
those of Abraham Maslow and Frederick Herzberg.
54
In Motivation and Personality (1954), Maslow identified what he considered to be a hierarchy of basic
human needs and classified them under five headings. First come physiological needs such as food,
water, air and sleep. If these needs are not satisfied, people will not ……….. (1) other needs. The second
category is security needs: clothing, shelter, the necessity to be free from danger and physical pain,
and - most relevant to management - to be free from the threat of losing one's job. Where these first
two categories of needs are satisfied, people feel social needs: to belong to a group, to be liked and
loved and accepted by others. Next come esteem needs: people do not only want to be accepted, they
want to have self-respect and to be esteemed by others. Maslow believes that people all ……… (2)
power and status, respect and self-confidence. The fifth and highest category concerns self-
actualization needs: the desire to develop as a person, to ……………. (3) one's potential, and to …………
(4) the goals one has ……………… (5) for oneself. According to Maslow, employees will only be motivated
if they are able to realize their goals (concerning creativity, responsibility or whatever) through their
work. As a need is satisfied, it becomes less important. For example, the more money one has, the less
motivating it is to …………… (6) more - although of course this doesn't stop people wanting it! In fact,
pay becomes a social or psychological matter rather than an economic one. When needs are satisfied,
their capacity to …………….. (7) and to act as an incentive diminishes. In Work and the Nature of Man
(1966), Frederick Herzberg argued that things like good salaries and fringe benefits, job security,
status, good company administration and labour relations, cannot motivate workers. They are merely
'satisfiers' or, more importantly, 'dissatisfiers' where they do not …………….. (8) 'Motivators', on the
contrary, include things such as having a challenging or interesting job, recognition, responsibility,
promotion, and so on. Clearly, not everybody in manufacturing industry or routine service industry
jobs can …………. (9) . challenging and interesting work or promotion to the highest positions of
responsibility. For this reason, many people have disputed Maslow's theory. For example, self-
realization and self-actualizing needs are probably far more prominent among university graduates
and at higher levels of a company than at lower levels, where social and security needs, and even a
desire to …………… (10) responsibility, might be dominant. Not everybody can ………… (11) himself or
herself at work. Yet even workers who cannot be, or do not want to be, involved in planning, decision-
making, controlling and organizing, can be given a variety of tasks, rather than be expected to …………….
(12) the same boring, repetitive, mechanical task eight hours a day or more.
55
b. Do the workers need to be accepted and respected by their colleagues and superiors?
c. Do you think that people are no longer motivated by money after a while?
d. According to Maslow, does a good working environment motivate employees?
e. According to Herzberg, is providing good working environment unnecessary?
CHAPTER VII
E-COMMERCE
Read the following text, then answer the questions:
Six months in e-commerce is like six Amazon is prehistoric by Internet
years in any other business. At least, that’s the standards. Using its vast accumulated
way it seemed 15 years ago. Since then, the e- expertise, it has gone beyond books to sell CDs,
commerce landscape has changed a lot. In videos, and other things as well, and its site acts
order to underline this idea, let’s have a look at as a ‘host’ for other suppliers, too. It benefits
three e-commerce operations that illustrate from a very good reputation for service,
the fluidity of the situation. especially in delivery: the massive investments
56
in warehouse automation and dispatch seem to remember them, perhaps as an object lesson in
have paid off. things that can go wrong and as a victim of one
Lastminute.com was founded on the of the first shakeouts in the industry?
original and attractive idea of catering for Some of the key things regarding e-
people who’d like to do something at the last commerce are the following:
minute, even if you can buy tickets for flights, 1. Physical delivery of goods. Parcel
etc several weeks ahead. Its founders are delivery companies (old-economy
famous and feted, at least in the UK, and there organisations par excellence) have
has been some clever PR to build the hype. benefitted enormously from companies
However, when its sold shares to outside like Amazon, where goods have to be
investors for the first time, the timing was bad. physically delivered to homes.
There was increasing scepticism about the real 2. The future of services. The real growth
value of companies like Lastminute.com: the in consumer e-commerce is considered
multi-billion valuation implied in the share to be in services like travel and financial
issue bore no relation to the money it actually products where the value of each
made. Its income (commissions from selling transaction is quite high and goods do
tickets, etc) in 1999 was less than $1 millions: not have to be physically delivered.
peanuts. People wo bought its shares 3. The frustration of using e-commerce
presumably hoped to get in early on a company sites. Researchers have found out that
that might one day be very profitable, even if 30% of the purchases on the Internet
no profits are forecast for several years to are not completed, having hordes of
come. virtual shopping carts abandoned in the
Boo.com was one of the first major virtual aisles of the sites – this being an
casualties of e-commerce. It sold sports goods. e-tailer’s nightmare. This has a negative
Development of its site took much longer than effect on the company’s brand image.
planned, because its founders wanted The report even found out that some
everything to be perfect. The launch was late, people who had bad experiences on the
and meanwhile the company had used up all its company’s website avoided its bricks
capital. and mortar stores.
But what about these companies now? 4. Business – to – business e-commerce. A
How are they doing? Are they among the major recent report found that the biggest
players in e-commerce now? Do people impact of the Internet is in business-to-
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business applications, where suppliers 10,000. Its shares of the e-commerce
can competitively bid for orders. In the market is three time bigger than that of its
car industry, for example, competing nearest rival. Companies that want to set
companies have set up networks where up online services need to get the
they can get suppliers to do this. They technology and orders right, but they also
can place and process orders, they can have to provide fun and entertainment,
make payments with a massive cost making shopping online a nice experience
reduction through the elimination of for the customer. The have to attract
processing on paper. customers by offering something
In conclusion, online selling requires heavy interesting and something different at the
investment and choices need to be made same time.
whether to run the operations themselves The key in keeping the pace with the
or whether to outsource them. The dynamic changes in the business
decision needs to be made whether to use environment is agility. The disruption
the same sourcing model from the same brought about by the pandemic are causing
factories and whether to have different deep transformations, and today e-
distribution centres. Tesco’s online grocery commerce has emerged as an
business is considered to be the biggest in indispensable retail channel, fulfilling the
the world and it has helped another concept of ‘agility’. It is considered to be a
supermarket chain to set up an Internet critical engine for business growth and is
operation. Rakuten is the biggest e- expected to grow in importance for the
commerce site in Japan. The number of its years to come.
shops has increased from 13 to over
USEFUL LANGUAGE
Shakeouts = an upheaval in or radical reorganisation of a business, market or organisation,
typically involving streamlining and redundancies;
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bricks and mortar = denotes a business that operates conventionally rather than over the
Internet;
FOLLOW UP TASKS
1. Give the correct term to the following definitions:
a. how many times a web page is viewed;
b. physical delivery of goods to Internet customers;
c. selling on the Internet;
d. where you put the items before you purchase them;
e. traditional shops.
2. Match the following sentences to the given headings: promise, invitation/request, speculating
about the future, bargaining, reflecting on the past, advice/warning/threat.
a. If you reduced your price by 7%, we would increase our order substantially.
b. We’ll be able to expand if they come up with the finance.
c. We’ll deliver in 24 hours if you order online.
d. If I were you, I would redesign the company’s website.
e. They would have gone bust if they had taken his advice.
f. If we go online our overheads will fall.
g. I wouldn’t do that if I were you.
h. If we’d had a better website, we’d have attracted more customers.
i. If you order by the end of the month, we can give you a discount.
j. If you want to apply, you must call the Human Resources.
k. Your money back if not 100% satisfied.
3. Add the correct prefix de-, mis-, out-, over-, re-, or under- to the verbs given in brackets to
complete the following sentences:
a. We had …………… (estimate) our competitors. They seem to be gaining market share day by
day.
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b. The city centre was far too expensive, so the company …………. (locate) last summer.
c. The five non-executive directors had …………………. (vote) the four executive directors to adjourn
the AGM.
d. We withdrew the grinder because it has a design fault, but we think we can ……………. (launch)
it before the festive season.
e. The organisation had been ……………… (manage) for years, so no wonder it was close to
bankruptcy.
f. The minister criticised the health authorities because they had ………….. (spend) , but she didn’t
try to understand they difficulties they were facing.
g. The have ……………….. (regulate) the petrochemical industry in the hope of making it more
competitive.
h. The conference facilities were far from adequate. In addition, we were grossly …………..
(charge).
4. Read the text and fill in the gaps with the best sentences to complete it.
a. It also means defining precisely what you want and what your conditions are, as well as
deciding in advance what kind of concessions you are willing to make;
b. Let us now turn briefly three serious dangers which often lurk behind negotiations;
c. Obviously, it is easier to reach an agreement if both parties take away something from the deal;
d. In addition, we need to remember that not all business negotiations end in a deal;
e. Secondly, resist the temptation to make a concession whenever your prospect grants you one;
f. The next one is the unwillingness to admit that your prospect’s arguments may be right, and
yours wrong;
g. There are three key issues to bear in mind when making concessions;
h. This phase can be made easier if you do your homework beforehand.
In business negotiations, good people skills, mutual respect and trust are absolutely essential. One
of the aims of the first meeting is therefore for the two parties to develop trust and sound each other
out. ………………… (1) Doing your homework means finding out as much as you can about the company
you are dealing with, about its needs and expectations, and about its negotiating style. ……………….. (2)
If you are clear about those points, and generally feel well-prepared, you will be able to handle the
bargaining stage much more effectively.
In this second phase, what you should be aiming for is a win-win situation. …………………… (3)
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Getting to a win-win situation clearly requires a number of special skills, such as making concessions.
…………….. (4) Firstly, it may not be a good idea to start with your biggest one, as your prospect may
then think you are desperate to strike a deal. On the other hand, starting small and making gradually
bigger concessions is not recommended either, as this may arouse unrealistic expectations. ……………..
(5) And thirdly, make sure your prospect is fully aware of the value of every concession you make.
……………… (6) The first pitfall to avoid is to allow the negotiation to drag on indefinitely. Agree on a
schedule at the outset and keep to it. …………… (7) Finally, never bow to pressure and never exert
undue pressure on your prospect either. Ultimatums, for instance, have no place in effective business
negotiations.
GRAMMAR REVIEW
FUTURE TENSES
There are different ways of expressing the future in English.
WILL = predictions, future facts
e.g. It looks as if Jake will lose his job.
BE GOING TO = predictions based on present evidence; intentions.
e.g. Look at that wall. It lloks as if it’s going to fall down.
PRESENT SIMPE = fixed future events, such as timetables, schedules.
e.g. The plane takes off at 7 p.m.
FUTURE PERFECT SIMPLE = completed situations before a certain time.
e.g. It looks as if Jane will have lost her job by the end of the month.
FUTURE PERFECT CONTINUOUS = continuing situations up to a certain time (emphasizes
duration).
e.g. This time next month, I’ll have been working at the company for exactly 25 years.
FUTURE CONTINUOUS = situations in progress at a certain time in the future.
e.g. This time next week I’ll be travelling round Scotland on business.
FUTURE IN THE PAST = future actions with a past reference.
e.g. I thought the factory would open in October.
FOLLOW UP TASKS
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1. If the sentence is correct, put a tick. If it’s incorrect, put the verb in the correct tense.
a. He thinks we will have sold out of these products by the end of the month.
b. Their company will have been becoming the market leader by the end of the year.
c. In September, Jack will have been working for this company for exactly 25 years.
d. At the end of the year, they will have taking the same route to work every morning for 10 years.
e. He will have driven for hours without having a break when we get there, so, he will need a rest
before he goes out.
f. A Managing Director will have appointed by the end of the month.
g. She won’t have finished the reports by then, but she should at least have started.
h. When they meet tomorrow, will he already have a chance to look at the sales figures?
i. It sounds like the invitations to the conference will not have been delivering by next Friday.
j. Why will they have been waited for hours? I thought you’d told them we were going to leave
latter.
2. Complete the second sentence so that it has a similar meaning to the first sentence.
a. You are a trainee for three months and then you become a junior employee.
You become a junior employee once …………………………………………………………….
b. Joshua will aske the questions and she will take notes.
She will take notes while ……………………………………………
c. The bell will ring and then you can all go home.
You can all go home when ………………………………
d. Miss Jacobs will be interviewing the candidates and Mr.Dawkins will be recording the
interviews.
Miss Jacobs will be interviewing the candidates while ………………………………………………………
e. The publishing company will offer her a contract and then she will know if they are going
to publish her book.
She will know if the book is going to be published when ………………………………………………….
3. Fill in the correct future form of the verbs in brackets:
a. She is going to finish the report by 3 p.m. and then she …………. (hand in) to the manager.
b. Do you happen to know when the conference ……………… (begin)?
c. He told me he ……………….. (pay back) all the amount when he …………….. (get) a job.
d. We’re not going out now. We’re going to wait until Sam …………………… (arrive).
e. As soon as he ………………….. (come) back, I’ll tell him to call you.
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f. When Josh phoned, he sounded like the …………….. (have) a shock.
g. I’m afraid I ……………………(have) time to finish all this work today.
h. The last bus ……………… (leave) at midnight.
i. ……………. (move) to the next item on the agenda now?
j. The CEO …………………… (answer) all of your questions in due course.
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