Business Plan PLUS Companion Book [Companion Book] 9788849467871

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Philippa Bowen | Margherita Cumino Rachel Harraway | Attilia Lavagno Laura Danielli | Derek Sellen

BUSINESS PLAN PLUS Companion Book

• Alternanza Scuola-Lavoro • Compiti di realtà • Argomenti interdisciplinari e CLIL • Skills work & Problem solving • Word Clouds • Preparazione al Cambridge First e EUCIP core

CONTENTS

1

Economics and finance

5

The greatest thinkers in Economics

Getting ready for CLIL Economia politica

Adam Smith: the father of Economics

6

Economic systems

VIDEO

Karl Marx

8

The privatisation of the railways in the UK 20

VIDEO

John Maynard Keynes

10

Joseph Shumpeter and creative destruction

12

Milton Friedman and John Kenneth Galbraith

14

Three Nobel laureates: Franco Modigliani, Amartya Sen, Elinor Ostrom

18

Trade and the balance of trade

22

Corporate social responsibility

24

The main sources of statistical and economical information

26

Diritto

16

Privacy and security: cyber-attacks

28

The European Data Protection Directive

30

The EU key competition principles

32

Economia aziendale Strategic human resources management 34 The financial system and its products

36

The job market Getting a job in business administration

2

Marketing and advertising

38

41

Tradition and Innovation

The job market

The evolution of the marketing mix

42

Getting a job in marketing

60

The 4 Cs

44

Keywords in Marketing

62

VIDEO

Branding and packaging

46

VIDEO

Advertising through the ages

48

VIDEO

CASE STUDY

Controversial advertising: United Colors of Benetton

50

Web marketing

52

The difference of m-marketing

56

CASE STUDY

The best mobile campaigns: Starbucks and Target

58

3

Information technology

65

IT and business

VIDEO

VIDEO

MEDIA FILE Netiquette

66

MEDIA FILE To reduce e-mail start at the top

67

MEDIA FILE The rise and rise of online shopping

68

Internet privacy: key language

70

Data protection

72 73

MEDIA FILE Online fraudsters target ski tourists

74

76

MEDIA FILE Confessions of an identity thief 77

4

The job market Getting a job in ITC (Webmaster)

EUCIP core Information security

Business application of social networking technologies

78

MEDIA FILE Why LinkedIn is morphing from a social network into an online newspaper

80

Web design

84

86

Operate Network services: the World Wide Web

88

Keywords in IT

90

Inside tourism

93

An introduction to tourism

VIDEO

82

Build

MEDIA FILE Users of online dating sites fall victims to fraud 75

VIDEO

81

Plan

MEDIA FILE Digital tracking devices coming soon

E-banking

MEDIA FILE The path to happy employment, contact by contact on LinkedIn

Transport

What is tourism?

94

Air travel

114

Careers in tourism

96

Land transport

116

98

Water travel

118

Types of tourism Escorted tours

100

City breaks

102

Accommodation: hotels

104

Other types of accommodation

106

Tourism correspondence Enquires

108

Replies to enquires

109

Booking and confirmation

110

Check in and check out

112

Complaints

113

5

Work-related learning

121

Alternanza scuola-lavoro Introduction: Alternanza scuola-lavoro & work skills

122

Globalisation Airbnb: changing the way people travel

124

Technology Successful Apps

126

Responsible business Subaru: how green can a car manufacturer be?

128

Global issues H&M: can fast fashion be ethical?

130

Business background The palm oil industry

132

The business world Crowdfunding

134

Marketing Travel marketing & social media trends

136

Enquiring Coffee: an Italian tradition

138

Ordering Waitrose: cutting packaging in half

140

Delivering goods Hanjin Shipping

142

The economic environment The EU: better in or out?

144

The financial world HSBC & social responsibility

146

Work skills & problem solving

6

4

Commercial awareness

148

Verbal and written communication

149

Teamwork

150

Analysing and investigating

151

Negotiating

152

Planning and organisation

153

Leadership

154

Motivation

155

Working under pressure

156

Word Clouds

157

1 Globalisation

158

2 Technology

159

3 Responsible business

160

4 Private sector business structure

161

5 Marketing

162

6 The economic environment

163

7 Trade

164

8 The financial world

165

9 The British economy

166

10 The American economy

167

Economics and finance

The greatest thinkers in Economics Adam Smith: the father of Economics Karl Marx John Maynard Keynes Joseph Schumpeter and creative destruction Milton Friedman and John Kenneth Galbraith Three Nobel laureates (Franco Modigliani, Amartya Sen, Elinor Ostrom)

Getting ready for CLIL Economia politica Economic systems The privatisation of the railways in the UK Trade and the balance of trade Corporate social responsibility The main sources of statistical and economical information

Diritto Privacy and security: cyber-attacks The European Data Protection Directive The EU key competition principles

Economia aziendale Strategic human resources management The financial system and its products The job market: getting a job in business administration

First: Reading and Use of English

1

3-02

Adam Smith (1723-1790): the father of Economics If you had met Adam Smith, you might have thought that he was rather strange. He lived with his elderly mother, he talked to himself and he was so absent-minded that once he put bread and butter in the teapot. On another occasion he walked for fifteen miles through the streets in his night-shirt. He wasn’t a handsome man – he had a large nose and bulging eyes and he never married. However, he wrote one of the most influential books of all time – ‘The Wealth of Nations’. It contained ideas which changed the way that people think about economics.

Student’s Book, Section 1, Module 1, p. 72

Smith lived in the eighteenth century. Before Smith’s ideas were adopted, wealth was measured in terms of the amount of gold and silver which a nation possessed. Governments tried to keep as much gold and silver inside the country by limiting imports from other nations. They established a system of taxes and laws which protected their own industries and their own traders. This is known as protectionism. Smith realised that limiting trade in this way was counter-productive. He was a believer in free trade, which is the opposite of protectionism. He wanted to minimise taxes on goods. In The Wealth of Nations, Smith argued that trade without restrictions benefits everyone. It encourages competition which in turn encourages progress and improvement. He introduced the idea of ‘an invisible hand’; he meant that even though individual nations and traders acted out of self-interest, there was a natural tendency to produce prosperity and order. He gave the example that the butcher, the brewer and the baker produce meat, beer and bread for our dinner to make a profit for themselves. But the results are good for everyone. Smith was Scottish and spent most of his life in Edinburgh and Glasgow. However, he also studied at Oxford University and travelled in France and Switzerland. He knew many of the famous writers and philosophers of the period. Now, in the twenty-first century, Smith’s ideas of free trade and competition are still widely accepted by world leaders. All students of economics read The Wealth of Nations. In 2007, the Bank of England put a portrait of Adam Smith on the twenty-pound banknote. He is one of the people who have created the modern world which we live in.

Monument of Adam Smith, Edinburgh.

SUMMARY OF MAIN FACTS Complete this table by writing a word or words in each space in the right-hand column.

6

Name

Adam Smith 0 ...........................................................................................................................................................

Nationality

1 S ........................................................................................................................................................

He lived in the

2 ............................................................................................................................................... century

He wrote

3 The ....................................................................................................................................................

He was against

4 pr........................................................................................................................................................

He was in favour of

5 ...........................................................................................................................................................

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 5 – Multiple choice 1

For questions 1- 6, choose the answer (A, B, C or D) which you think fits best according to the text. 1 Why did Adam Smith never marry?

4 Adam Smith uses the phrase “an invisible hand” to refer to

A

He wasn’t handsome.

B

He was too busy writing and studying.

A

the secret power of the government.

C

He had to care for his mother.

B

D

The text doesn’t tell us.

the hidden way that free trade benefits everyone.

C

the way that producers like the butcher, brewer and baker create wealth.

D

the unseen results of taxation.

2 Smith’s book, The Wealth of Nations A

supported protectionism.

B

changed economic ideas.

C

supported the idea of more taxation.

D

was written after the eighteenth century.

3 Why did Smith believe in free trade? A

Because traders get more gold and silver.

B

Because taxation is bad.

C

Because it is the opposite of protectionism.

D

Because it generally creates more wealth.

5 The Bank of England put Adam Smith on the £20 note probably because A

he is Scottish.

B

he is an economist.

C

his ideas were world-changing.

D

he believed in free trade.

6 The writer of this text A

admires the achievements of Adam Smith.

B

thinks that Adam Smith was very ugly.

C

thinks that Smith’s ideas are oldfashioned.

D

both praises and criticises Smith’s ideas.

Part 3 – Word formation 2

Read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example (0).

development Another important contribution which Smith made to the (0) ...............................

DEVELOP

of the economy was his idea about the (1) ............................... of goods. He realised

PRODUCE

that it would improve (2) ............................... and efficiency if each step in the

PRODUCE

manufacture of an item was carried out by a separate worker or group of workers. Nowadays we are all familiar with the idea of (3) ............................... of labour but Smith was one of the first (4) ............................... to show how a business could become more (5) ............................... if it adopted this method.

DIVIDE ECONOMY PROFIT

Twenty-pound banknotes portraying Adam Smith.

7

Karl Marx (1818-1883) If you visit Highgate Cemetery in London, you can see the graves of many famous people, including writers, actors and artists. Among the graves in this beautiful, calm place, you will find a tombstone with these words on it: ‘WORKERS OF ALL LANDS UNITE’. This is the grave of Karl Marx who, although he was born in Germany, lived and wrote in London from 1849 until his death. Marx, of course, is one of the best-known writers on society and on economics in all history. He lived during the nineteenth century when, after the Industrial Revolution, capitalism was developing. Marx, and his friend and collaborator Engels, saw the poor conditions of the workers in the factories and also saw the luxurious lives of the factory owners. He thought that, throughout history, society had been a conflict between the rich and the poor, between the people with power and the people who were exploited. However, he imagined that capitalism would result in the end of this division. As businesses expanded and society became more and more unfair, the workers would have a revolution and take over ‘the means of production’. There would be a classless society and everyone would share in the profits. In Marx’s and Engels’ view, this was inevitable. Marx published two famous works. One was The Communist Manifesto with Engels in 1848 and the other was Das Kapital in 1867. Both had a huge influence on world affairs. The important figures of the Soviet Union and of the Republic of China, such as Lenin, Trotsky, Stalin and Mao Tse Tung based their policies on Marx’s ideas even though he might not always have agreed with the way they interpreted his theories. Fidel Castro from Cuba and Antonio Gramsci from Italy are among other famous leaders, economists and philosophers who developed the ideas of Marx. Even today there are governments, writers, artists and economists who describe themselves as Marxist. Marx wrote many more political books, articles, even a novel and a play, during his life. He continued to see society as a struggle between the ‘wealthy bourgeoisie’ (= the middle classes, businessmen, capitalists) and the proletariat (= the workers). He did not live to see the great events of the twentieth century, such as the Russian Revolution and the rise of the Soviet Union, which tested some of his ideas in practice. He died in 1883 and was buried in Highgate Cemetery in the city that had become his home.

SUMMARY OF MAIN FACTS Write short answers to these questions. 1 Where was Karl Marx born? .................................................. Where did he die? ................................................................ 2 What did he publish in 1848? ............................................................................................................................................... 3 What did he publish in 1867? ............................................................................................................................................... 4 Who helped him with his work? ............................................................................................................................................ 5 How did define the economic system of his time? _ _ _ _ _ _ _ ism. 6 How did he call the workers? The _ _ _ _ _ _ _ _ iat. 7 What great event was influenced by his ideas? The R _ _ _ _ _ _ R _ _ _ _ _ _ _ _ _.

8

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 5 – Multiple choice 1

For questions 1- 6, choose the answer (A, B, C or D) which you think fits best according to the text. 1 Why, probably, is Marx buried in London? A

Because he knew actors, artists and writers.

4 What development did Marx and Engels expect? A

An increase in fairness.

B

Because it was the city he was born in.

B

A second Industrial Revolution.

C

Because he had lived there for nearly 50 years.

C

A Communist dictatorship.

D

A workers’ revolution.

D

Because London was his home.

2 Marx thought that social conflict existed in his time because of A

the economic differences between the classes.

B

historical reasons.

C

the end of the Industrial Revolution.

D

the political situation.

3 What does the term ‘the means of production’ mean? A

The government.

B

The mines, machines, factories etc.

C

The workers.

D

The employers.

5 Since Marx’s time A

many political leaders have followed his ideas exactly.

B

his ideas have come true.

C

Marxism has been a powerful influence.

D

he has been forgotten.

6 How would you NOT describe Karl Marx: A

a prolific writer.

B

a revolutionary thinker.

C

an influential figure in economics and politics.

D

an accurate political prophet.

Part 6 – Gapped text 2

Read the following extract. Four sentences have been removed. Choose from A-D the one which fits each gap (1-4). Marx and Engels Friedrich Engels collaborated with Marx and had a big influence on his ideas. Engels had travelled from Germany to England. (1) .............. . Although his own father was an industrialist, (2) .............. . When he met Marx, he realised that they shared the same ideas and he supported Marx financially. (3) .............. . Like Marx, Engels saw that the workers were being exploited by the elite – the factory owners, the financiers etc. – and that they accepted this situation in spite of their terrible living and working conditions in nineteenth century English cities such as Manchester. If the proletariat were made conscious of their situation and became active, there would be a revolution. (4) .............. . It had been written by Marx but based on the first drafts of Engels. A

Therefore Marx was able to continue to develop his philosophy.

B

In 1848, the Communist Manifesto was published.

C

He was shocked by the bad conditions of the factory workers.

D

he decided to live according to his communist ideology. 9

John Maynard Keynes (1883-1946) John Maynard Keynes does not match our stereotyped image of an economist as a dull uninteresting man. He had an unconventional love-life, he married a Russian ballerina with a dramatic past, he knew the most important writers and artists of his time, he collected modern art by painters such as Cezanne and Picasso, he influenced political decisions which changed the world. He had a farm as well. What a varied life! Keynes, who was born in Cambridge in 1883, is often considered the most important and influential economist of the twentieth century. He published his best-known book, The General Theory of Employment, Interest and Money, in 1936 after the Great Depression when the world economy crashed. Previously, many economists had believed that in a free market there would always be full employment. They thought that the market was able to regulate itself. But the mass unemployment which occurred in the Depression proved that this was wrong. Recession = time of poor economic performance, usually resulting in high unemployment and lower wages Deficit = debt, owing money, the opposite of a profit

The big question in the 1930s – and it is still a big question today! – was: How do you escape from a recession? Keynes recommended that governments should spend. They should stimulate the economy. He thought they should do this even if they had to borrow large sums of money and create a deficit. He believed that spending by governments would increase demand and reduce unemployment. If the government builds new roads or bridges or airports, for example, this will increase employment and give people more money. When they spend this money, the economy will benefit. Generally, Keynesians (in other words, the economists who follow his ideas) think that governments can use taxation and flexible financial policies to manage the economy. These ideas have become popular again after the recession that began in 2007. President Obama, for example, introduced stimulus packages of government spending. Keynes took part in many big international events. He attended the Versailles Conference after the First World War although he disagreed with the results. He thought that the decision to punish Germany strongly would lead to another later war and he was right. After the Second World War, he attended the Bretton Woods financial conference. He helped to establish the World Bank and the International Monetary Fund (IMF).

SUMMARY OF MAIN FACTS

Place these events in the order in which they happened by writing the letters A-H in the boxes. Begin with the earliest event. One has been done for you. A The Second World War B Obama’s stimulus of the US economy

Not everybody agrees with Keynes’s ideas. Milton Friedman, the most important American economist during the second half of the twentieth century, argued that governments should intervene as little as possible in the economy. However, whenever politicians try to break the ‘boom and bust cycle’ – the way that good economic performance (boom) is followed by bad performance (bust) – they consider the theories of John Maynard Keynes.

C The Versailles Conference D The publication of Keynes’s The General Theory E The Great Depression F Friedman’s disagreement with Keynes’s ideas G The First World War H The Bretton Woods Conference

F 10

Keynes at the Bretton Woods financial conference.

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 5 – Multiple choice 1

For questions 1- 6, choose the answer (A, B, C or D) which you think fits best according to the text. 1 The writer thinks that Keynes had an interesting life because

4 Keynes’s most successful role in international affairs was

A

he was a very important economist.

A

at the Versailles Conference.

B

he married a Russian ballerina.

B

during the Second World War.

C

he did many different things.

C

at the Bretton Woods Conference.

D

he was a stereotype.

D

late in the twentieth century.

2 What was the main influence on the development of Keynes’s theories?

5 Friedman’s main disagreement with Keynes’s ideas was about

A

The First World War.

A

spending by consumers.

B

The Great Depression.

B

spending by governments.

C

The Conference of Versailles.

C

the ‘boom and bust’ cycle.

D

The success of the free market.

D

taxation.

3 Why did Keynes want governments to spend during a recession?

6 Keynes deserves to be remembered for A

developing the General Theory.

A

To stimulate the economy.

B

influencing international financial policy.

B

To create a deficit.

C

C

To build the nation’s infrastructure.

helping to set up the World Bank and the IMF.

D

To get more taxes.

D

all of the above.

Part 1 – Multiple-choice cloze 2

For questions 1- 6, read the text below and decide which answer (A, B, C or D) best fits each gap. There is an example at the beginning (0).

an Friedrich von Hayek (1899-1992) was (0) ............................... Austrian whose (1) ............................... theories (2) ............................... significantly from those of Keynes. Hayek believed (3) ............................... the free market and did not accept that governments (4) ............................... try to manage the economy. One of his most famous books was (5) ............................... The Road to Serfdom which warns of the dangers of (6) ............................... governments too much power over the economy. (7) ............................... , Keynes admired this book and praised it. Hayek worked in Austria, in Great Britain and in the United States; people (8) ............................... his theories, like Friedman’s, as the opposite of Keynes’s. 0 A

an

B

a

C

this

D

these

1 A

economy

B

economical

C

economic

D

economist’s

2 A

differed

B

difference

C

different

D

the same

3 A

on

B

with

C

in

D

about

4 A

should

B

ought

C

had

D

must to

5 A

called as

B

written

C

known as

D

titled

6 A

to give

B

give

C

having given

D

giving

7 A

To surprise

B

As surprise

C

With surprise

D

Surprisingly

8 A

are regard

B

regard

C

has regarded

D

are regarding 11

Joseph Shumpeter (1883-1950) and creative destruction Joseph Shumpeter has been called ‘the most romantic of economists’. This refers to his ideas but it might also apply to his life. He once said that he had three aims in his life: to be the greatest economist in the world, the greatest horseman in Austria and the greatest lover in Vienna. He later said that he had achieved two of these aims, adding that there were too many good riders in Austria! He was born in Austria but in 1932 settled in the USA. His third wife was an American writer on the history of economics, Elizabeth Boody, who helped him with his work.

Midwestern industrialization: Packingtown district of Chicago, 1919.

One of his most influential ideas was known by the term ‘creative destruction’. He meant that capitalism depends on new ideas which lead to the destruction of older ideas. We can see this process in our own times. For example, the growth of online news websites may lead to the end of print newspapers. In the past, the development of diesel and electric trains meant the end of steam trains and the engineering companies which produced them had to adapt or go out of business. Shumpeter himself used the example of how the railroad and the new cities which it encouraged in the Mid-West had led to the decline of agriculture in that part of the USA. When he originally used the phrase in his book Capitalism, Socialism and Democracy, he thought that this process would lead to conflicts in society which would end capitalism. He began a section of the book with these words: ‘Can Capitalism survive? No, I do not think it can’. However, despite his fears that a socialist dictatorship would replace the free market system, he supported the spirit of capitalism. He was one of the first people to identify the importance of entrepreneurs - independent business people who developed their own companies. They could take advantage of creative destruction by pioneering new projects. In the late twentieth and early twenty-first century, the idea of the entrepreneur and of entrepreneurial skills have become very important to the economic policies of western governments. We have also viewed ‘creative destruction’ more positively. Even though it destroys employment in the ‘old’ industries and areas of work, it creates new opportunities. Shumpeter contributed many other ideas to economics. His belief in innovation and in entrepreneurship have inspired later economists and policy-makers.

SUMMARY OF MAIN FACTS Complete the table with brief relevant information.

12

Name

Joseph ....................................................

Settled in

Country: ..........................................................................................................................................................

Ideas

• C_______ D__________

Book

C ................................................. , S ................................................ and D..................................................

Born

Year: ..................... Country: ...................................

• The importance of E _ _ _ _ _ _ _ _ _ _ _ S

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 5 – Multiple choice 1

For questions 1- 6, choose the answer (A, B, C or D) which you think fits best according to the text. 1 Shumpeter’s comment about the number of good riders in Austria implies A

he succeeded as a lover.

B

he succeeded as a horseman.

C

he believed that he had failed as an economist.

D

both A & B.

2 Which of these is an example of “creative destruction”?

4 What are entrepreneurs? A

Companies who create new products.

B

People who want to eliminate older companies.

C

People who create new businesses.

D

Business people who follow Shumpeter’s ideas.

5 A print magazine goes out of business because of competition from a new online magazine. This is an example of

A

A superior product replaces an older product.

A

creative destruction.

B

An inferior product replaces a previous product.

B

innovation.

C

A company goes out of business as a result of war.

C

market forces.

D

all of the above.

D

A research team creates a new product.

3 Shumpeter A

was against capitalism.

B

feared for the future of capitalism.

C

preferred socialism to capitalism.

D

had no opinion for or against capitalism.

6 Nowadays, Shumpeter’s ideas A

have been proved to be fundamentally wrong.

B

are regarded as valuable.

C

are rejected by most economists.

D

encourage people to reject capitalism.

Part 3 – Word formation 2

Read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example (0).

associated Shumpeter is (0) ............................... with the ‘Austrian School of Economics’, a

ASSOCIATE

group of (1) ............................... with similar ideas who were all born in Austria.

ECONOMY

The history of (2) ............................... thought includes many ‘schools’. One

ECONOMY

of these was the ‘Cambridge School’ which was founded by Alfred Marshall. Marshall was a (3) ............................... at Cambridge and, in fact, one of

LECTURE

his (4) ............................... was John Maynard Keynes. His most famous

STUDY

and (5) ............................... book was called ‘The Principles of Economics’ which he published in 1890. At that time, Economics, a (6) ............................... young academic subject, was not given the (7) ............................... which other subjects such as History or Science were given. A (8) ............................... was needed to attract (9) ............................... to this new area of study and Marshall (10) ............................... filled this role in Britain.

INFLUENCE RELATIVE IMPORTANT LEAD ATTEND SUCCEED

13

Milton Friedman (1912-2006) and John Kenneth Galbraith (1908-2006) Friedman and Galbraith are often considered the two most influential economic thinkers of the second half of the twentieth century. Friedman founded the ‘Chicago School’ of Student’s Book, economists, a group of economists while Galbraith was associated with Harvard. Friedman Section 3, advised Republican politicians such as President Reagan while Galbraith advised Democrats Module 4, p. 357 such as President Kennedy. Friedman believed in the free market while Galbraith believed that government had an important role to play. Friedman opposed many Keynesian ideas while Galbraith supported policies based on Keynes’s ideas. Both men wrote many books and created TV documentary series about the economy. They both wanted to make economic ideas understandable for the general public. Friedman, who won a Nobel Prize in 1976, disapproved of government intervention in the economy. He once said: ‘If you put the federal government in charge of the Sahara Desert, in five years there’d be a shortage of sand.’ Friedman believed that market forces will create the best economic outcomes. Galbraith, on the other hand, believed in a strong state. In his best-known book, The Affluent Society, he argued that the market promotes the acquisition of goods through advertising but pays not enough attention to producing good schools or controlling pollution. This is why we need government action. Later in his life, he feared that big corporations had more power than governments. Friedman promoted the theories of ‘monetarism’ which saw the money supply as the main factor in affecting an economy. He thought for example that inflation was produced not by things such as a rise in oil prices or in wages but by changes in the money supply. In his book Capitalism and Freedom he supported ‘laissez-faire’ policies; this term means Student’s Book, allowing the economy to develop without trying to control it. He not only advised Reagan Section 3, Module 3, p. 343 but also Margaret Thatcher, the British Prime Minister, and General Pinochet in Chile. Galbraith had influence on the economic policies of India as well as the USA. The debate between the ideas of Friedman and Galbraith will continue in different forms. Should we aim for low taxation and ‘small government’ or for strong government which shapes the economy through its policies? You can still watch Galbraith’s BBC TV series ‘The Age of Uncertainty’ or Friedman’s ‘Free to Choose’ on Youtube. These were made decades ago but they still raise interesting and relevant ideas, especially today in our own time of economic uncertainty. Ronald Reagan meets his top economic advisers at the Los Angeles Federal Building in November 1980. Milton is the second on the left.

SUMMARY OF MAIN FACTS Look at the fifteen words and phrases and write F when they refer to Friedman and G when they refer to Galbraith.

belief in market forces • F Chicago School • • •

government intervention • laissez-faire policies • •

14

Harvard •

monetarism •

small government •

Democrats •

India and the USA •

‘Free to Choose’ Keynesian policies

Reagan, Thatcher and Pinochet • F Republicans

‘The Age of Uncertainty’ •

The Affluent Society

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 3 – Word formation 1

For questions 1- 4, complete the second sentence so that it has a similar meaning to the first sentence, using the word given. Do not change the word given. You must use between two and five words, including the word given. Here is an example (0). 0 Friedman challenged the ideas of Keynes.

CHALLENGED

were challenged by Friedman. The ideas of Keynes .................................... 1 There were few areas of economics where Friedman and Galbraith agreed.

EACH

Friedman and Galbraith ................................................ in most areas of economics. 2 Friedman clearly admired the economic success of Hong Kong.

ADMIRATION

............................................... the economic success of Hong Kong was clear. 3 Galbraith encouraged government spending on social programmes and infrastructure.

WERE

Governments ................................................ on social programmes and infrastructure by Galbraith. 4 Friedman believed in free market economics and this angered some people.

BELIEF

Some people were angered ................................................ free market economics.

Part 6 – Gapped text 2

You are going to read an article about David Ricardo (1772-1823). Seven sentences have been removed from the article. Choose from the sentences A-H the one which fits each gap (1-7). There is one extra sentence which you do not need to use. David Ricardo was very successful not only in thinking and writing about money but also in making money. He was inspired by the work of Adam Smith to become a professional economist. (1) .............. In terms of economics, he is remembered for his ideas about the causes of inflation. He believed that if the Bank of England issued too much money, prices inevitably rose. (2) .............. In addition, he supported the policy of Free Trade. He realised that if another country can produce certain goods at a lower price, it is better to import those goods rather than produce them at home. (3) .............. It shouldn’t support its own expensive coal-mining industry. Instead, it should focus on business and industries where it is cheaper and more effective than other countries. (4) .............. In other words, countries should specialise in the industries and services where they are best. Not every economist agrees with these ideas. David Ricardo himself came from a rich Jewish-Portuguese family who lived in London. (5) .............. His father was very angry. (6) .............. Ricardo made his own fortune and became extremely wealthy. But it is his economic ideas, such as ‘the law of diminishing marginal returns’, which have gained him a lasting reputation. (7) .............. They are known as the neo-Ricardian School. A This is similar to Milton Friedman’s ‘monetarism’.

E At the same time, he was a stockbroker and loan broker.

B It can export these goods and gain profits.

F For example, it is better for the United Kingdom to import cheap coal from abroad.

C However, when he decided to marry outside his religion, he lost everything. D They point out that if a country relies on imports of food, it might lose all supplies in a crisis.

G His mother never spoke to him again. H There is even a modern group of economists named after him. 15

Three Nobel laureates There has been a Nobel Prize in Economic Sciences only since 1968. However many important economists, including Milton Friedman and Friedrich Hayek, have won the prize. On this page we will look at three of them.

Elinor Ostrom receives the Nobel Prize in Economic Sciences from King Carl XVI Gustaf of Sweden.

Franco Modigliani Franco Modigliani (1918-2003) is an Italian-born economist who won the Nobel Prize in 1985. He left Italy before the Second World War and settled in the USA where he worked for forty years at the Massachusetts Institute of Technology (MIT). He was a very popular teacher and his students included another Nobel Prize winner. He himself developed important theories about the way that people earn, spend and save their money and about the way that the value of companies is decided by the stock market. Amartya Sen Amartya Sen (born 1933) is an Indian-born economist who received the Nobel prize in 1998. He has held posts in Harvard, Oxford and Cambridge and has studied not only Economics but also Philosophy. However, as a child in Bengal he experienced a famine which caused great suffering and many deaths. So it is not surprising that one of his books, Poverty and Famine, deals with this. Sen realised that the famine in Bengal was actually caused by economic success. When people who lived in the cities became richer, the prices of food and other necessities increased. However, in rural areas, the workers did not earn enough to buy food for their families and this resulted in the crisis. Amartya Sen has gone on to argue that for developing countries, it is not enough simply to increase incomes. Societies also need to increase ‘freedoms’, such as the freedom to vote or the freedom of opportunity. Elinor Ostrom Today, many people are worried about the environment and whether we will exhaust the resources which we need. Elinor Ostrom (1933-2012) studied the ways in which human beings use shared resources, such as forests, fisheries, water resources, oil fields, farmland. Her research was carried out in many parts of the world, including Africa, Nepal, Japan and Switzerland. She found that the best solutions to the problem are the ones which local people, the individuals who live in and know the area, provide. According to Ostrom, it is better if governments and big companies do not try to change things with expensive large-scale projects. For her work in this and other areas, Elinor Ostrom became in 2009 the only woman until now to receive the Nobel for Economics. These are just three of the Nobel Prize winners in Economic Sciences since 1968.

SUMMARY OF MAIN FACTS Complete the table. Name

Dates

Nobel prize

From

Franco Modigliani 1998 1933 - 2012 16

USA

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 7 – Multiple matching 1

For questions 1-10, choose from the people (A-C). The people may be chosen more than once. A = MODIGLIANI

B = SEN

C = OSTROM

Which person 1 is unique among Nobel Prize-winners for Economics?

..............

2 looks at the relationship between people and nature?

..............

3 looks at the relationship between people and money?

..............

4 thinks centralised decisions are not very effective?

..............

5 was influenced by his/her experiences at a young age?

..............

6 spent decades of his/her working life in one academic institution?

..............

7 looked at the economic relationship between the city and the countryside?

..............

8 thinks that the ability to make political choices is important?

..............

9 was not only successful himself/herself but also had a successful student?

..............

10 is still alive at the time this text is written?

..............

Part 1 – Multiple-choice cloze 2

For questions 1- 8, read the text below and decide which answer (A, B, C or D) best fits each gap. There is an example at the beginning (0).

created five prizes for Medicine, Chemistry, Physics, In 1895, the Swedish industrialist, Alfred Nobel, (0) ................ Literature and Peace. However, in 1969, a (1) .............. prize for Economic Sciences, was created by the Bank of Sweden. The prizes are not always awarded to a single person. (2) .............. , in 2013, three people shared the Economics prize. Two of the (3) .............. came from the University of Chicago and one from Yale University. They were (4) .............. Eugene Fama, Lars Peter Hansen and Robert Shiller. The prize is not necessarily awarded to an economist. In 2002 , Daniel Kahneman shared the prize (5) .............. Vernon L Smith. But Kahneman is a psychologist, not an economist! However, his work involved (6) .............. ideas and gave insights into decision-making in the world of finance. He is also the author of a (7) .............. book about ‘fast and slow thinking’. Other Nobel prize-winners in economics (8) .............. popular books, including Franco Modigliani, who wrote Adventures of an Economist and Elinor Ostrom, the author of The Governance of the Commons. 0

A

created

B

was created

C

creation

D

creates

1

A

more

B

sixth

C

next

D

other

2

A

As a fact

B

In fact

C

However

D

As a result

3

A

receivers

B

receptionists

C

receptacles

D

recipients

4

A

respectively

B

with respect

C

sequentially

D

formerly

5

A

for

B

to

C

about

D

with

6

A

economists’

B

economical

C

economic

D

economically

7

A

top-selling

B

much-selling

C

best-selling

D

high-sales

8

A

have been writing B

have been written C

were writing

D

have written

17

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ECONOMIA POLITICA

Economic systems There are four basic types of economic systems. Whichever system is adopted, it must provide answers to three fundamental questions: Student’s Book, Section 2, p. 286

• What goods and services will be produced? • How will they be produced? • Whom are the goods and services for? A fourth question also arises: • Who will make the decisions? The government, the people, private companies? The oldest economic system is the TRADITIONAL economy. This system usually exists in relatively small communities. Each generation follows the same system of production and consumption. The members of one family may do the same work generation after generation. Many simple agricultural and hunting societies operate like this. However there are far fewer such systems than in the past. Tradition provides the answers to the three fundamental questions. Some economists favour a FREE MARKET system. In this system the economy is based on supply and demand. Private companies decide what to produce according to what consumers will pay and what they want. In a completely free market society, private companies will operate hospitals, transport, education, prisons etc. The government actions are limited to ensuring as far as possible a stable society. The market provides the answers to the questions.

A COMMAND ECONOMY is completely different; it is a planned economy. The government answers all the questions. Political planners decide what will be produced by factories, which crops are grown, how to provide health and education services etc. The government may even decide the level of wages for workers. This type of system is found in dictatorships or in countries where the government has a strong political ideology. Private companies and individual KEYWORDS consumers have very little influence on the shape and direction of the economy. Match the items in the first column with items in the second column. A MIXED ECONOMY is the most familiar system in

18

1

supply and

a industry

2

free

b intervention

3

goods and

c market

4

health and

d owned

5

government

e rate

6

human

f

7

inflation

g resources

8

mixed

h services

9

natural

i

demand

10

state-

j

economy

11

trade and

k education

12

unemployment

l

resources

figures

the modern world. In this case, private companies and consumers, by making choices, decide what is produced and sold in the shops or what services are provided by hotels, restaurants etc. However the government will support essential services such as health and education. They may also support the unemployed or the homeless. The market answers the questions in some cases and the government in other cases. In this system, there are often political debates about the level of government intervention in the economy. These are the four main types which are found in today’s world. Each has its advantages and disadvantages.

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 7 – Multiple matching 1

For questions 1- 8, choose from the systems (A-D). The systems may be chosen more than once. A = TRADITIONAL

B = FREE MARKET

C = COMMAND ECONOMY

D = MIXED ECONOMY

Which system 1 is based around the experience and skills of previous generations?

..............

2 is likely to make centralised economic decisions?

..............

3 is the most common in today’s world, especially in Europe and the Americas?

..............

4 allows the most freedom to companies and entrepreneurs?

..............

5 is likely to provide freedom to business but security to the citizens?

..............

6 allows the government little economic decision-making?

..............

7 allows market forces to decide the direction of the economy?

..............

8 creates a balance between the economic power of business and government.

..............

Part 3 – Word formation 2

Read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example (0).

disadvantages The economic systems have different advantages and (0) ................................. Ultimately, we have to ask how effective a society is in (1) ...............................

ADVANTAGE PROVIDE

food and clothes and shelter for its members. A traditional system provides (2) ............................... and continuity. The males and females of one generation

SECURE

will carry out the same roles as the previous generations. But the society lacks (3) ............................... and individuals may become frustrated. Also,

FLEXIBLE

there is no chance of (4) ............................... or significant progress. A Command

DEVELOP

Economy still exists in North Korea and Cuba and has existed in the former Soviet Union, China etc. Such systems enabled the rapid (5) ............................... of societies as the government could, for example, focus the (6) ...............................

TRANSFORM NATION

effort on creating new infrastructure rather than goods for (7) ...............................

CONSUME

If the economy is planned (8) ............................... , equal wages for workers and

CENTRE

full (9) ............................... can be achieved. However, command economies

EMPLOY

severely limit the (10) ............................... of individuals and of businesses.

FREE

Russians rush to buy food as Moscow introduced rationing. In the old Soviet Union supermarkets were often deserted and people had to queue up at stalls to buy rationed food.

19

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ECONOMIA POLITICA

The privatisation of the railways in the UK When you travel by rail in the United Kingdom, you will see that in different areas and on different routes, the trains have different liveries – a ‘livery’ is the design of colours and the logo which the trains have. This is because the trains and the routes belong to different private companies. There are twenty-eight operating companies at this time. For example, if you travel from London to Birmingham you will travel by ‘Virgin Trains’ with a red design on the locomotive. If you travel from London to Edinburgh, the train operator will be ‘East Coast’ But it wasn’t always like this. From 1948 to 1994-1997, the railways were state-owned; the whole rail network was run by ‘British Rail’ When the railways were first operated in Britain, they were all run by private companies. Travel by train was very popular for many years. However, by the 1940s, many people preferred to travel by road and profits and investment were declining. So, for this and other political reasons, the government decided to nationalise the railways. In the 1960s, many smaller lines were closed and this made British Rail more profitable. When highspeed trains were introduced from the 1970s onwards, rail travel became attractive again and the number of passengers increased. In the 1990s, the government believed that the railways would become more efficient if there was competition between different Student’s Book, companies; this led to the privatisation of the rail system. Section 2, p. 289 How does the privatised system work? Let’s look at one company as an example, Virgin. The train company has to bid for1 the right to provide train services in a region of the United 1 bid for = Kingdom. This is called a ‘franchise’. Virgin, which operates mainly on the west coast and fare un’offerta in the midlands, has to renew its franchise every seven or eight years. Other private companies may be competitors and also bid. The government looks at the bids and at the record of the train companies and decides who will run the services in that area for the next seven to eight years. Sometimes a new rail operator takes over. But Virgin has been one of the more successful companies. Generally, most people agree that since privatisation rail travel has improved in Great Britain. But ticket prices have gone up and there are some people who want to return to a state-run rail network. What happens in your country? What do you think?

KEYWORDS

1

Use the suffix -ise to change these adjectives to form verbs.

national • popular • maximum • private • rational • colony • minimum • subsidy 0 national

2

nationalise ➔ .........................

denationalise (also: ..............................)

Match the verbs you have made to these definitions. You do not need all the verbs.

1 to make something liked by a large number of people 2 to use logic to improve or change a system/situation etc. 3 to reduce something, e.g. a risk, to the least possible number/rate/level 4 to bring something out of state ownership into the control of a commercial company 5 to occupy land that was previously uninhabited or inhabited by others

20

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 5 – Multiple choice 1

For questions 1- 6, choose the answer (A, B, C or D) which you think fits best according to the text. 1 Virgin Trains has

4 Franchises

A

a distinctive livery.

A

were introduced as part of privatisation.

B

routes on the West and East Coast.

B

last for ever.

C

twenty-eight branches.

C

are given to Virgin Trains.

D

control of all the railway lines.

D

are always awarded to the company that offers most money.

2 The railway system in Great Britain

5 The privatisation of the railways

A

has always been private.

B

has been run by the state until the 1990s.

A

is popular with everyone.

C

is now run by private companies.

B

has resulted in higher fares.

D

has made no profit since the 1960s.

C

will never be reversed.

D

has occurred twice during the history of the railways in Britain.

3 The British governments in 1948 and in the 1990s

6 The writer

A

had similar policies about rail travel.

B

had opposite policies about rail travel.

A

agrees with privatisation

C

privatised the railways but in different ways.

B

wants a return to state-run railways

C

supports Virgin Trains.

both wanted to control the railways.

D

doesn’t give his personal opinion.

D

Part 4 – Key word transformation 2

For questions 1- 6, complete the second sentence so that it has a similar meaning to the first sentence, using the word given. Do not change the word given. You must use between two and five words, including the word given. Here is an example. 0 The government carried out the privatisation of the railways.

BY

were privatised by The railways .................................................................. the government. 1 The award of franchises takes place every seven or eight years.

ARE

Franchises .................................................................. every seven or eight years. 2 Network Rail is the name of an organisation which looks after the track.

CALLED

The track is looked after by .................................................................. Network Rail. 3 After a serious accident, stricter safety precautions were introduced.

LED

A serious accident .................................................................. introduction of stricter safety measures. 4 The British rail network is one of the busiest in Europe.

THAN

Few European rail networks .................................................................. the British one. 5 High petrol prices have made driving less popular than in the past.

USED

As a result of high petrol prices, driving is less popular .................................................................. . 6 Passenger numbers have been increasing.

BEEN

There .................................................................. the numbers of people who travel by train. 21

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ECONOMIA POLITICA

Trade and the balance of trade International trade is conducted between countries, involving importing (buying from abroad) and exporting (selling). Visible imports are the goods which are bought from other countries. Visible exports are the goods which are sold. We use the term invisible exports and invisible imports to refer to services which are imported and exported. Examples include services such as insurance, banking, tourism, education.

Student’s Book, Section 2, p. 290

If UK citizens travel to Italy for a holiday, it will be invisible import for UK and invisible export for Italy, as Italy is earning foreign exchange by selling tourist services.

in billions of pounds Visible exports

300

Visible imports

200

Balance of trade (visibles) Invisible exports Invisible imports Balance (invisibles) Overall exports Overall imports Balance (overall) This country has a positive balance of trade = a trade surplus in goods. But it has a trade deficit in services. Overall, it has a positive balance = a trade surplus of fifty billion pounds.

+100

If an Italian student goes to UK to study, It will be invisible import for Italy and invisible export for UK, as UK is earning foreign exchange by providing educational services.

The term balance of trade refers to the difference between total exports and imports of visible goods. In one year a country might import more than it exports. It would therefore have a trade deficit. If it exports more than it imports, it would have a trade surplus.

There are many possible reasons why a country may have a deficit or a surplus. The exchange rate for a nation’s currency may be high or low, 150 either making imports cheap and attractive to buyers or expensive and less attractive. The country may have a good economy with high wages which -50 means that its citizens will want to spend more; this may lead to an increase 400 of imported goods and services. If a country has good natural resources it 350 may not have to import expensive items such as oil; if it has few natural +50 resources, its bill for imports may increase. Countries with high technological levels and modern factories may export expensive manufactured goods; countries which mainly export agricultural crops such as sugar or coffee or fruit may have to sell at low prices. Countries which have large numbers of foreign tourists may make a large surplus in invisibles. Can you think of other factors? 100

The term free trade refers to the idea that nations should trade with each other without restriction. However, countries may want to protect their own industries by taxing or limiting imports. They may also subsidise their exports to make them cheaper. This policy is known as protectionism. Workers may support protectionist policies if they believe that cheap goods from other countries will threaten their jobs in manufacturing.

KEYWORDS Find words or phrases from the text which match to these definition. The aswers occur in the same order in the text. 1 The goods (not services) which we sell to other countries • 2 The situation where you sell more than you buy from other countries • 3 How much you receive in another currency for an amount of money • 4 Useful things which exist in a nation, such as oil, coal, water • 5 Buying and selling between nations without restrictions • 6 To provide financial or other support, usually from the government • 7 Systematic actions which favour a nation’s own industries and businesses

22

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 4 – Key word transformation 1

For questions, 1- 5 complete the second sentence so that it has a similar meaning to the first sentence, using the word given. Do not change the word given. You must use between two and five words, including the word given. Here is an example (0). 0 This country restricts imports.

RESTRICTIONS

restrictions on This country places ................................................ imports. 1 In the past, Japan exported more than it imported.

USED

Japan ................................................ more than it imported. 2 Recently Japan’s exports have fallen.

FALL

Recently, there ................................................ in Japan’s exports. 3 Although the car industry is successful, the trade deficit continues.

DESPITE

................................................ of the car industry, the trade deficit continues. 4 The economy weakened because we didn’t invest in manufacturing.

IF

The economy wouldn’t have weakened ................................................ in manufacturing. 5 It’s not worth adopting protectionist policies as they hinder world trade.

POINT

................................................ in adopting protectionist policies as they hinder world trade.

Part 3 – Word formation 2

Read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example (0).

beginning Trading between individuals has probably existed from the (0) ............................... of the human race. In earlier periods of (1) ............................... , people might exchange

BEGIN CIVILISE

goods or services which they had for goods and services which they wanted, a process (2) ............................... as barter. For instance, in West Africa, gold was (3) ............................... for salt. Even international trade between people who had

KNOW EXCHANGE

no common language could be conducted in this way, by displaying the goods. (4) ............................... traders bartered goods with goods with the local

EUROPE

(5) ............................... in America, for example. Barter is still used in some societies

INHABIT

and by some groups. However, the use of money to assign value to goods which are traded is the (6) ............................... practice nowadays. Another (7) ............................... aspect of trade is ‘Fair Trade’. This system is a (8) ............................... to the fact that producers in less economically

DOMINATE INTEREST REACT

developed countries may receive unfair prices for their exports. The Fair Trade project tries to correct this imbalance by (9) ...............................

SET

minimum prices for crops such as coffee and chocolate which are usually produced by (10) ............................... poor farmers. Fair Trade products are labelled (11) ............................... in shops and supermarkets so that it is easy for consumers to make an ethical (12) ............................... which supports the producers.

RELATIVE CLEAR CHOOSE 23

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ECONOMIA POLITICA

Corporate social responsibility Do companies have a responsibility to protect the environment and to promote social welfare? How much money should they invest in this? Does it improve their image and make them more popular with consumers if they do so? If their commercial activities are associated with negative effects on the environment or on society, should they take action? These are all questions which are linked to the idea of ‘Corporate Social Responsibility’. Corporate Social Responsibility (CSR) is interpreted differently in different countries and by different companies. Generally, there are national laws about environmental protection and public well-being. But some companies go well beyond these legal responsibilities when they implement CSR policies. They invest money in activities which are not directly profitable but which benefit their employees, the environment or communities.

Student’s Book, Section 1, Module 3, p. 46

Does this benefit the company? When consumers choose where to shop or which products to buy, the reputation of the company for giving something back to society through CSR may influence their decisions. The public are more and more worried about the environment and social issues. Everyone is aware of climate change and most people believe it is man-made. Therefore, if companies try to reduce their ‘carbon footprint’ or develop ‘clean energy’ sources, this will improve their image. Another concern is health, especially the increase in obesity. Companies may try to improve the healthiness of their products or to support health campaigns. A third area is poverty and working conditions in less economically developed countries. Companies may decide to support fair trade projects or to make sure that when their products are manufactured abroad, the workers are well treated. Many companies work hard to impress consumers. TerraCycle Inc., one of the fastest-growing eco-friendly ‘US’ companies in the world runs free collection programs for non-recyclable waste materials, and partners up with multi-national corporations to recycle their waste products into innovative new products such as office and school supplies, fertilizers, fashion accessories, toys and home decor. Thus CSR is an important part of the modern commercial and industrial world. Upcycled products by TerraCycle.

KEYWORDS Use the words given to complete the sentences. You do not need all the words. Use verbs in the correct form.

consumers • contaminating • corporate • corporations • environmental • environmentalists • environmentally legal • legally • over-exploit • protect • protection 1 …....................... often buy from companies which have a strong …....................... policy. 2 The public expect large …....................... to accept their …....................... responsibilities. 3 …....................... aim to put pressure on companies to …....................... nature. 4 Even where they can …....................... take potentially harmful actions, companies should recognise that they have a …....................... duty. They shouldn’t …....................... natural resources or endanger the community by ….............................. water supplies etc.

24

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 4 – Key word transformation 1

For questions 1- 8, complete the second sentence so that it has a similar meaning to the first sentence, using the word given. Do not change the word given. You must use between two and five words, including the word given. Here is an example (0). 0 Some industrial activities harm the environment more than others.

HARMFUL

more harmful to the environment than others. Some industrial activities are ........................................................................... 1 Significantly more people buy fair trade products nowadays.

CONSUMPTION

The ................................................. significantly increased recently. 2 Many companies take pride in the fact that their products are environmentally-friendly.

PROUD

Many companies ................................................. environmentally-friendly products. 3 The release of chemicals into rivers can cause serious problems.

CONTAMINATION

The ................................................. by chemicals can cause serious problems. 4 Companies have a duty to avoid harming the society in which they operate.

NOT

Companies ought ................................................. the society in which they operate. 5 When hypermarkets are sited out of town, the shops in the high-street lose business.

IF

The high-street shops ................................................. there were no out-of-town hypermarkets. 6 Some large food retailers give health advice to their customers as part of CSR.

ABOUT

Some large food retailers advise ................................................. as part of CSR. 7 People often say that large companies don’t care about the community.

ACCUSE

People often ................................................. caring about the community. 8 Some companies have schemes for helping areas of high youth unemployment.

UNEMPLOYED

Some companies have schemes for helping areas where many ................................................. .

Part 3 – Word formation 2

Read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example (0).

ethical . This can Many companies advertise themselves as being (0) ...............

ETHICS

mean many things. For example, some banks will not do (1) ...............................

BUSY

with countries or companies that treat their workers (2) ............................... . The

FAIR SPECIAL

clothes industry has been (3) ............................... involved in the debate about ethics.

ECONOMIC

The clothes which they sell are manufactured in less (4) ............................... developed countries such as Bangladesh. There have been cases where (5) ............................... have to work with no (6) ............................... regulations or are paid very low

WORK SAFE

salaries. Some factories even employ young children who should be in education. Of course, this (7) ............................... people in Europe or the USA to buy clothes (8) ............................... and it also increases the profits of the companies. However, when television (9) ............................... reveal what is happening, many people prefer to buy more expensive clothes from more ethical (10) ............................... .

ABLE CHEAP DOCUMENT SUPPLY

25

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ECONOMIA POLITICA

The main sources of statistical and economic information There are countless sources of data in the world. The most important and most reliable are:

Student’s Book, Section 2, Module 1, p. 72; and p. 290, p.292 Student’s Book, Section 1, Module 1, p. 18

Student’s Book, Section 1, Module 1, p. 18

National governments National governments provide figures for their own economies. Each country has its own body for producing and publishing the data. In the United Kingdom, it is the Office for National Statistics; in the USA, it is the Bureau of Economic Analysis; in Italy it is the Istituto Nazionale di Statistica (ISTAT). The statistics give information about a range of areas, including of course inflation, employment, industry, economic analysis, environmental matters and many more. One of the most important of these figures is the Gross Domestic Product (GDP).

The World Bank The World Bank belongs to the United Nations; it lends money to developing countries with the aim of reducing world poverty. UNESCO, the United Nations Educational, Scientific and Cultural Organisation, is also a UN source of economic data. The International Monetary Fund (IMF) The fund was established after World War II at the Bretton Woods Conference in which Keynes was an important figure. Its main aims are to promote growth and to ensure stability. It produces and publishes a wide range of data, including predictions about the future of the world economy. The Organisation for Economic Cooperation and Development (OECD) This also dates from the period after World War II. It is based in Paris and is another important statistical agency. It has 44 member countries and once a year it publishes an analysis of their economic situation and forecasts of the future probable developments.

KEYWORDS Look at the headings in the table below and write four words from the pool in each line. Add any other words which are relevant. analyse • analyst • article • association • body • committee • data • dissertation • evidence • forecast • interpret • journal • organisation • predict • professor • researcher • source • statistician • statistics • thesis information

.................................... .................................... .................................... ....................................

writing

.................................... .................................... .................................... ....................................

verbs

.................................... .................................... .................................... ....................................

people

.................................... .................................... .................................... ....................................

groups of people

.................................... .................................... .................................... ....................................

Now choose 8 words and use the Internet to look for example sentences which contain them and clearly show their meaning and use. Write one sentence for each word.

26

1

ECONOMICS AND FINANCE

First: Reading and Use of English Part 6 – Gapped text 1

Read the following extract. Four sentences have been removed. Choose from A-D the one which fits each gap (1-4). (1) .............. . Basically, the aim of the census is to obtain a figure for the population of the nation and also to gain other basic information. The first census occurred in 1801 but it wasn’t until 1841 that it began to collect the names and other personal details of citizens as well as numbers. (2) .............. . Everyone is required by law to complete the census form and to give accurate information about themselves and their households. (3) .............. . For example, in the early twentieth century as women did not have the vote, many among them protested by avoiding the census. (4) .............. . In 2001, 390,000 people entered their religion as ‘Jedi Knight’! A

Not everyone answers seriously.

B

A census takes place every ten years in the United Kingdom.

C

Nowadays, the results of each census are published in a report and on the website of the ONS, the Office of National Statistics

D

However, in some years, some people have refused to answer the questions for political or personal reasons.

Part 3 – Word formation 2

Read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example (0).

valuable source of information for governments, The census is a (0) ............................... individuals and businesses. This includes (1) ............................... data. For example, the US census bureau has a map of the states which (2) ............................... the average income of different areas. This is (3) ............................... useful to businesses in making (4) ............................... about which areas to target with advertising for their (5) ............................... . Before they release information,

VALUE ECONOMY SHOW POTENTIAL DECIDE PRODUCE

census authorities have to make sure that the (6) ...............................

PRIVATE

of the (7) ............................... is protected. If it seems likely that certain

CITY

data will lead to the easy (8) ............................... of individuals, this cannot be widely published. A (9) ............................... issue

IDENTIFY CONTROVERSY

relates to the questions about race and religion. Some people fear that these could be misused by the state or lead to (10) ............................... against certain groups.

DISCRIMINATE

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Privacy and security: cyber-attacks Student’s Book, Section 2, Module 6, p. 252

One of the greatest concerns for companies is the risk of cyber-attacks. They fear industrial espionage, in other words that their competitors will steal details of new products or gain access to their plans for expansion. Another fear is that hackers will steal data, such as the personal details of online clients, and sell these to others who may use them for criminal purposes. In other cases, hackers have infected a company’s network and ‘locked’ the data so that it is inaccessible; they then demand to be paid before they will release the data. If the payment is in ‘virtual money’ such as bitcoin, it is difficult to trace the criminals. Thus, spying, theft of data and cyber-ransoms are three of the main threats. In 2014, eBay suffered one of the most serious attacks. The data of its customers, including phone numbers, usernames, passwords and postal addresses, were stolen. Fortunately, it appears that no financial information was lost. Another attack involved French and Belgian customers of Domino’s Pizzas. Their details were stolen, even including their favourite pizza toppings! In the summer, private photos of famous stars, such as Jennifer Lawrence and Kate Upton, were stolen from their phones and exchanged for money before being released on the Internet. Although this was not a direct attack on a company, it affected the reputation of Apple whose phones were involved. Consumers are less likely to trust companies who are associated with these breaches of security.

Another negative effect on companies is the fact that they are less likely to adopt new technologies. It is important in the modern business and financial world to use the latest technology but it also involves increased security risks. The threat of cyber-crime deters companies from experimenting with technological innovation until it is fully proved to be secure. Huge expense is involved in developing new security systems and even then there is the fear that the cyber-criminals may be KEYWORDS one step ahead. Sometimes, however, all that a hacker needs is one employee who has a weak Look at these words and phrases associated with the topic of cyber-attacks. Use appropriate items from password in order to gain access to a whole the list to complete the sentences 1-4. network. There have also been cases where an employee has sold information to hackers which breach security • cyber-criminals • demand a ransom allows them to begin an attack. increasing security infect infecting • • • infection pay a ransom risks risk-free • • • • Not only private companies are threatened. There • security • suffered an attack • threat have also been cyber-attacks on governments, state hospitals, schools, police forces and similar 1 The hackers managed to .............................. and institutions. These may be organised by criminals .............................. the network with a virus. or terrorists. The issue is one which affects all of us, 2 Many companies have .............................. and have had governments, producers and consumers. to .............................. to the cyber-criminals in order to release their data. 3 The .............................. of an attack have led companies to be more ..............................-conscious. 4 Storing data electronically is never .............................. but by .............................. we can minimise the

.............................. . 28

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 3 – Word formation 1

Read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example (0).

situation where What is a denial of service attack? This term refers to a (0) ......................

SITUATE

the attacker tries to close down a network by (1) ............................... it with more traffic

LOAD

than it can handle. A (2) ............................... example of this was a 2007 attack

FAME NATION

not on a company but on the (3) ............................... institutions of a country, Estonia in northern Europe. (4) ............................... , the attack was stopped but

EVENTUAL

for a time several (5) ............................... within Estonia, including Parliament

ORGANISE

and broadcasters, suffered the (6) ............................... of the use of their websites.

LOSE

Some (7) ............................... sophisticated attacks of this kind use huge numbers

HIGH

of (8) ............................... computers which have been

PERSON

(9) ............................... taken over to launch a denial of service. There is increasing

REMOTE TECHNOLOGY

(10) ............................... competition between defenders and attackers to devise (11) ............................... measures to defeat DOS (Disk Operating System) attacks and

SECURE

on the opposite side to come up with ways to penetrate these (12) ............................... .

DEFEND

Part 4 – Key word transformation 2

For questions 1- 5, complete the second sentence so that it has a similar meaning to the first sentence, using the word given. Do not change the word given. You must use between two and five words, including the word given. Here is an example (0). 0 Banks are often the targets of cyber attacks, so they need strong security systems.

CYBER-ATTACKERS

cyber-attackers often target them. Banks need strong security systems because ................................................................... 1 In effect, Estonia had been digitally invaded.

INVASION

In effect, there ................................................. of Estonia. 2 A cyber-attack on a national power supply system would be very serious.

LAUNCHED

If a cyber-attack ................................................. on a national power supply system, it would be very serious. 3 The servers were unable to deal with the number of incoming requests.

TOO

There ................................................. for the servers to deal with. 4 The term ‘cybercop’ is used to refer to the people who deal with such attacks.

KNOWN

The people who deal with such attacks ................................................. . 5 They will create new methods of cyber-attack during the rest of this decade.

HAVE

New methods of cyber-attacks ................................................. by the end of this decade.

US Military Academy cyber cadets at the cyber research centre, in West Point, N.Y. The Academy is grooming a new breed of cyberspace warriors to confront increasing threats to the nation’s military and civilian computer networks.

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The European Data Protection Directive We are constantly giving our data to companies and governments and other individuals. When we fill in details on a form or a website, when we join a social media site such as Facebook, when we apply to join a gym or when we shop online, we are giving out information that is personal and private. Who can see this information? What can it be used for? How long will it be kept? How secure is it? Do we still control it? What happens if it is lost or misused or even sold? The European Data Protection Directive seeks to deal with these issues. Firstly, it establishes three basic principles which apply to processing data. These are transparency, legitimate purpose and proportionality. Transparency means that we must be informed when our data is being processed. We have to give our consent to the use of our data. You have probably experienced pop-ups on websites which ask you to consent to ‘cookies’ being set. Cookies are useful as they enable a website to remember you; they can help you navigate the web more smoothly and they can help companies identify your preferences. But under EU law the website must inform you that your information is being collected and remembered. Before this law, not everybody was aware of cookies. In addition, data can only be used for a specified and legitimate purpose. If you apply for a credit card and give personal financial information, the bank mustn’t use your data for any other purpose or reveal it to anyone else. Especially sensitive data, such as information about age, medical problems, race, sexual preferences, religious beliefs etc. has to be strictly controlled and not passed on. Proportionality means that the data can only be collected and used in a reasonable way. For example, data shouldn’t be kept for longer than necessary. Data which isn’t relevant to the purpose shouldn’t be collected. Overall, the individual’s right to privacy must be maintained. Access to data which is held about you is another basic principle. You have the right to ask your bank or your employer, for example, what data is held and to check that it is accurate. In EU countries themselves, there is a national supervisory body. If your data is inaccurate or misused, you can complain to this institution. Some countries outside the EU have less strict laws. Therefore the EU Directive states that data cannot be sent to other nations if they do not have adequate data protection.

KEYWORDS Write the words from the pool in the appropriate columns in the table below. accuracy • accurate • check • demand access • complain • deny consent • employers • governments • medical • privacy • proportional • religious • secure • security • sensitive • about sexual preferences • social media • transparency • used legitimately • websites The data which is held should be...

Data holders might include...

Key features of data protection are...

Special care is needed for data which is...

Under EU law, individuals can...

.................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... .................................... 30

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 5 – Multiple choice 1

For questions 1-6, choose the answer (A, B, C or D) which you think fits best according to the text. 1 Which of these is not an example of private and personal information? A

Your pet’s name.

B

Your date of birth.

C

The name of your street.

D

None of the above.

2 We use the term ‘transparency’ because it means

4 Which of these is against data protection? A

Collecting information with cookies.

B

Selling personal data without permission.

C

Asking website users to submit information.

D

All of the above.

5 Which of these is ‘proportional’? A

Asking for details of sexual preference on a shopping website.

something which you can’t see.

B

something dangerous because it’s secret and invisible.

Asking for credit card details on a shopping website.

C

Never deleting information about someone after they cancel a membership.

D

Using private data for advertising purposes.

A

clear and visible.

B

the main quality of glass.

C D

3 We are informed about cookies because A

otherwise they collect information without our knowledge.

B

they are dangerous.

C

they are illegal.

D

they can help you use the web.

6 Under the EU Directive, you cannot A

send data to other countries in the EU.

B

send data to other countries outside the EU.

C

hold data secretly about someone.

D

hold data about people employed by you.

Part 3 – Word formation 2

Read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example (0).

protection Some people in society have the opportunity to break data (0) ............................... (1) ............................... for their own purposes. For example, some police

PROTECT REGULATE

officers have used their position to check on data about members of their own families or people in their local (2) ............................... . This is clearly

NEIGHBOUR

not (3) ............................... . Large companies have a duty to have

ACCEPT

up-to-date (4) ............................... so that the personal data which they hold

SECURE

about their customers cannot be accessed by (5) ............................... . However, some (6) ............................... companies have failed to protect data and as a result have been fined large sums of money as a (7) ............................... .

HACK RESPONSIBLE PUNISH

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The EU key competition principles The free market is based on the idea of fair competition. For this reason, all the major economic areas, such as the European Union or the United States, have competition policies to ensure that there is fairness among competitors. There are four main areas where EU competition policy is relevant.

Unfair agreements or cartels A cartel is an agreement between countries or retailers or suppliers to work together which is designed to limit competition by controlling the production and sale of a product. For example, the major supermarket chains and their suppliers may agree to fix the price of milk and cheese. This is not good for consumers or for the farmers but it is good for the companies who process milk and for the supermarkets. EU law, however, bans cartels. They are anti-competitive.

Market dominance Some companies may dominate a market by having a large market share. EU law demands that they behave responsibly and do not use their advantageous position to harm competitors. For example, Microsoft has a dominant position in the computer software market. It has been fined several times by the EU for abusing its dominance. Most recently, in 2013 Microsoft was fined 561 million Euros for unfair competition. Pharmaceutical companies have also been considered to break EU law by having a monopoly of a certain drug. Student’s Book, Section 2, Module 2, p. 106

Mergers and takeovers Mergers occur when two companies become one on an equal basis by agreement; when one company takes control of another, this is a takeover. Both mergers and take-overs affect market dominance since they create more powerful companies with larger marketshare. The power of these new companies may lead to unfair competition. Therefore, the EU must approve mergers. State aid If a national government subsidises an industry or a company, this can also affect competition. The EU decides if state aid is compatible with the anti-competition policies of the EU.

KEYWORDS Look at the words and phrases in bold in the text. Choose one of these to fill each gap in sentences 1-6. You do not need all the items. 1 This government .............................. key industries by aiding them financially. 2 Drug companies were accused of forming a .............................. in order to maintain prices. 3 If a company has a 60% .............................. it may easily .............................. the market. 4 The company preferred a .............................. with Britco than a .............................. ? Devocorp. 5 Member states must ensure that their policies are .............................. EU law. 6 The company was accused of .............................. its market power and using .............................. pratcices.

32

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 7 – Multiple matching 1

For questions 1-10, choose the most relevant one from the areas of possible anticompetitive behaviour (A-D). The areas may be chosen more than once. A = CARTELS

B = MARKET DOMINANCE

C = MERGERS

D = STATE AID

Which area of possible unfair competition is relevant to a situation where 1

the national government grants money to fishermen to buy equipment?

..............

2

five major companies agree that they will not raise the price of bread?

..............

3

a large car manufacturer wants to unite with a manufacturer of car parts?

..............

4

farmers cannot compete with imported fruit, so they ask for ministry help?

..............

5

two out of every three computers sold comes from the same company?

..............

6

sugar is sold at the same high price in all the major shops?

..............

7

since Exco and Zeecorp became one, smaller companies are in trouble?

..............

8

different clothes companies have been meeting to agree on pricing?

..............

9

66% of the theatres, clubs and cinemas belong to the same parent company?

..............

10 Britco pays a special low rate of tax because it’s important to the economy?

..............

Part 3 – Word formation 2

Read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example (0).

United In a recent case in the (0) ............................... Kingdom, two major banks were punished

UNITE

for meeting and (1) ............................... loans which they were making to the same

DISCUSS

company. As a result of these (2) ..............................., the banks gained a mutual advantage

DISCUSS HIGH

since they knew each other’s plans. They were able to charge a (3) ............................... rate than normal because they knew there was no genuine (4) ............................... from the other bank. (5) ............................... for the banks, their agreement was discovered and there was an (6) ............................... by the Office of Fair Trading, a government body which has the (7) ............................... of dealing with these matters.

COMPETE FORTUNATE INVESTIGATE RESPONSIBLE

One of the banks openly confessed but the other one continued to hide the (8) ............................... and was fined 29 million pounds. The regulator said that there was no evidence of (9) ............................... deals of this sort in the banking world but gave a (10) ............................... to other banks.

TRUE SPREAD WARN

Plastic cows representing different EU countries with the slogan ‘The fair milk’: milk farmers protest again the falling dairy prices in front of the German chancellery in Berlin.

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ECONOMIA AZIENDALE

Strategic human resources management The people who work for an organisation are the human resources. Every company has employees. But how can the company use their skills and effort most effectively? How can they be motivated? What training do they need? What incentives will make them more productive and more loyal to the company? What do the staff need from the company? ‘Strategic human resource management’ is the name we give to the pro-active policies and actions which answer these and similar questions. Some of the main areas are:

Recruitment and training The Human Resources (HR) management team needs to have an overview of the staffing needs of the organisation and to have a long-term plan for the future. How many skilled workers are needed? Will older workers retire and need replacing? If the company develops, how will this affect staffing in the future? What are the qualities of the best workers in the company and how can similar workers be found? What is the best method of advertising for new staff? How should interviews be conducted? Effective training benefits the employer and the employees. Therefore companies need to plan training programmes which will benefit existing staff and help new staff to cope with the challenges of their work. Keeping employees: retention One aim of strategic human resource management is to retain staff. If employees leave the company, it will have to spend money on finding and training new workers. A good HR team will look at feedback from staff and ensure that there are excellent working conditions. Thus, good workers are less likely to leave. Also, workers who enjoy their jobs will be more productive and motivated. Company vision If the organisation has a clear vision and if workers share this vision, then everyone will be working towards a common aim. By ‘vision’, we mean what the company wants to achieve, how it will achieve this, what the values of the company are. For a successful HR programme, employees need to feel part of the company’s success. Most importantly, HR management must be pro-active and valued by the company. The team needs to plan ahead and find solutions to problems before they happen.

KEYWORDS Look at the words and phrases in bold in the text above. Use these items to replace the phrases in bold in 1-5. You do not need all the items. 1 Encouraging staff to stay with the company is an important area for the HR team. 2 Workers can be made enthusiastic about their work if the company offer rewards. 3 The top managers must help to create an inspiring idea for the company. 4 Finding new workers needs to be part of a plan which continues into the future. 5 If the HR team are taking action before problems develop, they will be successful.

34

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 5 – Multiple choice 1

For questions 1- 6, choose the answer (A, B, C or D) which you think fits best according to the text. 1 Which of these is not relevant to the field of ‘Human Resources’?

4 Excellent working conditions mean that A

workers won’t leave.

A

Motivation.

B

workers will earn more.

B

Replacement of staff.

C

C

Working conditions.

workers will enjoy themselves instead of working.

D

None of the above.

D

the best workers are paid more.

2 The HR team needs a long-term plan because A

short-term plans are unnecessary.

B

workers need long-term job security.

C

future staff levels can change.

D

skilled workers are usually old.

3 Which HR team task is mentioned in the section ‘Recruitment’?

5 If there is a ‘vision’, A

workers identify with the company’s aims.

B

the company understands the workers’ aims.

C

the company has achieved its aims.

D

workers are given free sight-tests.

6 According to the text, the HR team

A

To stop workers retiring.

B

To form profiles of the best workers.

A

needs to react quickly to problems.

C

To find alternatives to the interviewing system.

B

needs to predict problems and take action.

C

needs to be supported by the workers.

D

To develop the company.

D

needs to value the company.

Part 3 – Word formation 2

Read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example (0).

different problems in the The HR team in a company has to face many (0) ............................... workplace. Sometimes these involve (1) ............................... between employees. It

DIFFER DIFFICULT

may be that there is (2) ............................... between two co-workers based on a

TENSE

simple (3) ............................... . But sometimes these conflicts escalate into actual

UNDERSTAND

(4) ............................... as in the recent case where a supermarket worker attacked a colleague and caused serious (5) ............................... . In another case, in a call centre where the working (6) ............................... is often rather dull and monotonous, workers provided (7) ............................... for themselves by playing

VIOLENT INJURE ENVIRON AMUSE

tricks on one another. (8) ............................... this caused a violent fight which

EVENTUAL

unfortunately resulted in an (9) ............................... death. There are various

ACCIDENT

methods of conflict (10) ............................... developed by psychologists.

MANAGE

Italian entrepreneur Brunello Cuccinelli is an example of a new economic approach aiming at employee development as a way to improve a company and give it a sense that is not limited to profit. He understood that reinvesting to improve the life of workers, making them feel a part of the company’s life, would have positively affected production and quality.

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ECONOMIA AZIENDALE

The financial system and its products

Student’s Book, Section 2, p. 308

Wall Street, the City of London, the Borsa Italiana in Milan, Hong Kong – we’ve all heard of places like these, the financial centres of the world. Similarly, we’ve all heard of the Bank of England and the Banca d’Italia as well as commercial banks. They are part of the financial system which we all use and benefit from. A financial system allows money to circulate among savers, investors and borrowers. It may be global, national or local. It includes institutions such as banks, pension companies, stock exchanges, insurance companies etc. and these institutions create products which enable people to lend or borrow or invest. Bonds are one of the most common financial products. Basically, a bond is an agreement to lend money by the creditor to the debtor for a certain fixed period of time in return for regular payments of interest. Here is a simple example: • A saver puts £100 of his/her money into a one-year bond from a bank. • The bank promises to pay 5% interest. • After twelve months the bank pays the saver £105. Bonds may be issued by governments or banks or other financial institutions. There are many different types of bond. Some may pay a fixed or variable rate of interest or others may link the interest to inflation (the percentage rate of the rise in prices during the year).

The New York Stock Exchange trading floor.

People with money can also buy and sell shares in companies. Basically, each share represents a fraction of the company. Shareholders receive dividends each year; the value of the dividends depends on the performance of the company. If the company makes big profits, the shareholders will benefit. Shareholders can also vote on important decisions which affect the company, such as the choice of directors of the company. Not all companies sell shares. One of the most wellknown financial events in the last few years was the launch of Facebook on the stock market in 2012. The price of a share depends on how well people expect the company to perform. In April 2012 people could buy Facebook shares for $38. Why don’t you look on the Internet to see how much they are worth now!

KEYWORDS Look at the words and phrases in bold in the text above. Use these items to replace the phrases in bold in 1- 5. Rewrite the sentences in the space provided. You do not need all the items. 1 The top managers of the company resigned after the people who had bought shares voted against their plans. 2 The person who lends money receives an extra percentage each year. 3 A successful financial system needs people to put money in businesses. 4 Financial organisations such as banks or pension companies are a basic element in any financial system. 5 Money must be able to go round freely so that people who want to keep their money for the future can get in contact with people who need to take money.

36

ECONOMICS AND FINANCE

1

First: Reading and Use of English Part 4 – Key word transformation 1

For questions 1- 8 complete the second sentence so that it has a similar meaning to the first sentence, using the word given. Do not change the word given. You must use between two and five words, including the word given. Here is an example (0). 0 It is difficult to understand the idea of ‘future contracts’ without a simple example.

EASILY

be easily understood without a simple example. The idea of ‘futures contracts’ cannot ..................... 1 Farmers sell wheat at various prices.

BY

................................................. farmers at various prices. 2 The farmer makes money when wheat becomes more expensive.

PRICE

If ................................................. , the farmer makes money. 3 However, if wheat becomes cheaper, the farmer loses money.

THERE

If ................................................. in the price of wheat, the farmer loses money. 4 Many factors, such as the weather, can change the price of wheat

CAUSE

Many factors, such as the weather, can ................................................. the price of wheat. 5 An investor will pay the farmer if the price of wheat becomes lower than a certain price.

FALLS

An investor agrees to pay the farmer if the price of wheat ................................................. a certain price. 6 But the investor would receive any extra profit if wheat rose above this price .

BY

But any extra profit ................................................. the investor if wheat rose above this price. 7 The farmer can make plans because the price is fixed by this ‘futures contract’.

ENABLES

The fact that the price is fixed by this ‘futures contract’ ................................................. plans. 8 The investor risks losing money if the price of wheat falls significantly.

PRICE

The investor would lose money if ................................................. significantly .

Part 3 – Word formation 2

Read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example (0).

financial world, ‘futures’ are much more complicated than this. In fact, in the (0) .......................

FINANCE

Although they were (1) ............................... used for the sale of local crops and meat,

ORIGINAL

they later became used for (2) ............................... commodities such as coffee, rice or sugar. Nowadays, they have spread to other areas, even including (3) ...............................

GLOBE CURRENT

like the dollar or the pound or the euro. Futures traders don’t even buy and sell the commodities (4) ............................... but trade in the paper contracts. They have

SELF

to make (5) ............................... about the future rise or fall in prices. If they are right,

PREDICT

they can make huge profits but if they are wrong, they make (6) ............................... for

LOSE

themselves or for the companies they work for. The producers of commodities also use futures contracts to provide (7) ............................... against possible falls

PROTECT

in price. ‘Options’ are another feature of the world of finance but (8) .....................

FORTUNE

these are even more difficult to explain simply. Use the Internet to find out more.

37

THE JOB MARKET

Getting a job in business administration

1 Where? Most opportunities for jobs in Business Administration exist in commercial companies. The bigger the company, the more opportunities. But don’t forget that other organisations, such as government departments, local councils, libraries, hospitals, colleges and universities may require similar skills. Different departments in a company may offer administrative posts. These include: Finance, Accounting, Human Resources, Marketing, Advertising, Operations.

2 Qualifications

and entry level What educational qualifications do you need? If you want to enter the company at management level you probably need a degree in Business Administration or a related subject or a postgraduate degree. You can gain an MBA (Masters in Business Administration) at universities or at Business Schools. However, to enter at a basic level, you may be able to apply with a lesser qualification, such as a Certificate in Business or with some previous business experience. In this case, you may have on-thejob training; in other words, while you work you may also be educated in business.

38

3 Types

of post Accountants look after financial records, for example preparing figures for taxation purposes or supervising the payroll (the payment of salaries to employees). Business Managers look after the affairs of a department or a specific section of the company’s business. Advertising Executives make decisions about advertising campaigns. Human Resource Managers coordinate policies for recruiting, retaining and responding to employees. Specialists in Marketing or Public Relations (dealing with the public and the media) are also a part of any large company or organisation. Sales Executives meet clients and represent the business at trade fairs, etc.

ECONOMICS AND FINANCE

1

4 Is this job for you? If you are looking for a job in this field, it is a good idea to use the Internet or a large library to research the requirements and responsibilities of different positions. You should find out: • what educational qualifications are generally needed? • what are the main activities which the job requires? • how long are the typical working hours? • what is the average starting salary? • is this type of job easily available? • what personal skills are needed?

Some jobs in business require excellent communication skills and good face-to-face personal communication. For others, you might require good mathematical knowledge or the ability to work in a team. The answers to questions like these can help you to make a good decision about your future career.

KEYWORDS Look at the items in the pool. Write four items in each column of the table under the appropriate heading. Use a dictionary or the Internet to find the meaning of any unknown words. flexibility • fund • good communication • government department • HR • insurance company • interest • literacy • marketing • numeracy • pensions company • public relations • retail bank • salary • wages • college job areas/departments

institutions

................................................................................................ ................................................................................................ ................................................................................................ ................................................................................................ ................................................................................................ ................................................................................................ ................................................................................................ ................................................................................................ skills/talents

money

................................................................................................ ................................................................................................ ................................................................................................ ................................................................................................ ................................................................................................ ................................................................................................ ................................................................................................ ................................................................................................ 39

First: Reading and Use of English Part 4 – Key word transformation 1

For questions 1- 8, complete the second sentence so that it has a similar meaning to the first sentence, using the word given. Do not change the word given. You must use between two and five words, including the word given. Here is an example (0). 0 Several people applied for the job.

APPLICANTS

There were several applicants for the job. ................................................................ 1 ‘Thank you for applying for the job,’ he said to me.

THANKED

He ................................................. the job. BETTER

2 He didn’t write a very good CV, so he didn’t get the job. If ................................................. , he would have got the job. 3 She admitted that she hadn’t taken the job because of the long hours

TAKE

‘ ................................................. because of the long hours,’ she admitted. 4 I hate my job because there is so much stress.

TOO

I hate my job because it ................................................. . 5 They gave up their jobs because the work was boring.

FOUND

They gave up their jobs because they ................................................. . 6 You have a choice: improve or lose your job.

IF

................................................. , you will lose your job. 7 They said that I had stolen some equipment from the company.

ACCUSED

I ................................................. some equipment from the company. 8 The work is exciting but I’ve decided to change jobs.

I’M

................................................. by the work, I’ve decided to change jobs.

Part 6 – Gapped text 2

Read the following extract. Four sentences have been removed. Choose from A-D the one which fits each gap (1-4). If you don’t have a degree, you may begin your career in Business Administration by doing an apprenticeship. (1) .............. . At the beginning you may be carrying out fairly simple tasks but while you are working, you will also be training. You will be allocated one or more supervisors and some of the training will take place in the workplace itself. (2) .............. . Generally, you will also be enrolled on a course at a local college so that you can gain professional certificates or diplomas. (3) .............. . Through this experience, you will become confident and skilled in advanced work with computers, interacting with colleagues and clients, answering telephone inquiries, dealing with finance and many other administrative tasks. (4) .............. . Having completed your apprenticeship, you will be well-qualified to work as an administrator in most industries or commercial enterprises.

40

A

You will shadow qualified members of staff and learn how to perform their roles.

B

An assessor will visit you in your workplace from time to time to see how you are getting on and to assess your performance.

C

You will work in an institution such as a commercial company or a hotel or even a hospital or a prison.

D

The apprenticeship may last for a year or more.

Marketing and advertising

Tradition and innovation The evolution of the marketing mix The 4 Cs Branding and packaging Advertising through the ages CASE STUDY Controversial advertising:

United Colors of Benetton Web marketing The difference of m-marketing CASE STUDY The best mobile campaigns:

Starbucks and Target

2

The evolution of the marketing mix

Student’s Book, Section 2, Module 3, p. 136 Student’s Book, Section 2, Module 3, p. 138

All marketing students and professionals are familiar with the classic definition of the 4Ps of the marketing mix as formulated in the 60s. However, in the last 50 years articles and studies which consider this formula a bit outdated have been published. Different authors have included more Ps and some Cs, they have concluded that the mix changes according to the context in which it is used, particularly when it is applied to service organizations. Since goods are tangible products, services are intangible, other aspects, such as People, Process and Physical evidence, should must be taken into consideration. So the expanded marketing variables have become 7 Ps! The fifth P, People, refers both to the people inside and outside the company, namely the staff and the consumers. The sixth, Process is associated with all the procedures by which products are made and services are executed, such as handling customers’ complaints, acknowledging orders or queuing. Finally, the seventh P, Physical evidence, refers to all such as the points of contact a customer may encounter before making his buying decision. A customer-friendly physical environment is very important – from reception furnishing to staff’s clothing. Three other Ps are generally added by marketing experts, and they are Positioning, Packaging and Planning or Predictions. In the chapter about ‘branding and packaging’ (page 46) we will be discussing the importance of packaging management, but now we give a short explanation the two remaining Ps. Positioning refers to the way customers perceive the company’s product or service in relation to competitors. Advertising and word of mouth1 can influence this perception, hence the need for a business to select effective differentiating strategies (pricing and promotion strategies, for instance) to stand out from competing companies. Planning or Predictions stresses the importance of marketing research, it refers to the capacity of setting viable2 objectives, making short and long run business forecast and analysing results.

1 word of mouth = passaparola 2 viable = attuabile

42

MARKETING AND ADVERTISING

2

ACTIVITIES WARM UP

1

2 The concept of the marketing mix has been updated particularly for

Here are four definitions of Marketing by marketing gurus. In pairs, go through each of them and try to link them to your studies about the 4 Ps of the classical marketing mix. Which P is being emphasized by each definition? Do you think more Ps (or other letters) should be necessary?

“

(Seth Godin)

manufacturing industries.

C

distributors.

D

service businesses.

A

the company’s personnel

B

both the staff and the customers

C

the customers

D

the marketers

A

products are presented on shelves in supermarkets.

B

customers perceive the company in relation to competitors.

C

customers make buying choices.

D

the company advertises its products.

VOCABULARY

3 Marketing is everything, “and everything is marketing.

B

4 ‘Positioning’ describes the way

(P. Kotler)

Don’t find customers for your “products; find products for your customers. ”

information technology companies.

3 The people variable refers to

The aim of marketing is to know and understand the customer so well, the product or service fits him and sells itself.

”

A

”

(R. Mc Kenna)

The aim of marketing is to “make selling superfluous. ”

Here is a list of verbs from the text, make a noun from each of them and then write sentences exemplifying the two different functions. 1 include

..................................................

2 expand

..................................................

3 perceive

..................................................

4 acknowledge ..................................................

(Peter Drucker)

5 apply

..................................................

6 refer

..................................................

PRODUCTION COMPREHENSION

2

For questions 1-4, read the text and choose the answer (A, B, C or D) which you think fits best according to the text. 1 The 4 Ps formulation of the Marketing Mix is

4

In pairs, choose another P from the words below. Then tell the rest of the class the reasons for your selection by referring to what you have already studied about marketing. In the end decide which are the top three Ps in your class.

A

obsolete.

B

brand-new.

profit

picture

C

incomplete and superfical.

policy

pleasure

D

irrelevant to modern marketing.

preference

personalization 43

The 4 Cs As you have seen, the way each element contributes to a comprehensive marketing strategy depends on the context and on the importance given to them by companies. There are even ‘extreme’ models ranging from 10 to 44 Ps, but they tend to be too complex and sometimes even distorted. Then, in 1990, the advertising expert Robert Lauterborn proposed an interesting new marketing mix – the 4 C’s: Customer value, Cost, Convenience, Communication.

CUSTOMER VALUE

(instead of PRODUCT) Nowadays a company cannot develop a product and then try to sell it to the mass market; it has to produce what each consumer wants to buy, so the primary objective is satisfying customers’ wants and needs.

CONVENIENCE

COST

(instead of PRICE) Price is only a part of the cost necessary to satisfy consumers’ needs, whereas cost includes other items such as the time spent to reach the point of sale and shipping charges.

COMMUNICATION

(instead of PLACE)

(instead of PROMOTION)

How easy it is for the customer to get information about the product and buy it. In the Internet era the traditional variable of place has become less important because people can use different channels to satisfy their needs, and marketers should be aware of this.

Promotion is from the seller’s perspective while communication is from the buyer’s. It is interactive - a sort of dialogue between the buyer and the seller.

In conclusion, the Ps and Cs presented above are complementary ingredients in the marketing mix that modern businesses can use to develop their own marketing strategies. 44

MARKETING AND ADVERTISING

2

ACTIVITIES WARM UP

1

Have you ever heard of the ‘4 Cs’ of the marketing mix? What do you think the four Cs stand for?

COMPREHENSION

2

Go back to the text and say if the following statements are true (T) or false (F). 1 The 4 Cs take into account the marketing contest.

T

F

2 They were conceived by a Professor of marketing.

T

F

3 The first C refers to the necessity of satisfying customers’ wants and needs.

T

F

4 The ‘Cost’ element includes all the expenses customers will have to sustain to satisfy their needs.

T

F

5 Lauterborn’s ‘Convenience’ element refers to the discount offered to purchase a product.

T

F

6 The P of Place has become less important for modern marketers.

T

F

7 Promotion and Communication achieve the same objectives.

T

F

8 Ps and Cs form a balanced whole.

T

F

VOCABULARY

3

Write the English equivalents of these words and expressions. 1 completo, onnicomprensivo

...................................................................................................................

2 influente, di riferimento

...................................................................................................................

3 punto di vista, prospettiva

...................................................................................................................

4 mancanza, carenza

...................................................................................................................

5 addebito, tariffa

...................................................................................................................

6 essere consapevole, informato

...................................................................................................................

7 affermare, dichiarare

...................................................................................................................

PRODUCTION

4

Imagine you work for a company that provides marketing planning services to SMEs (small and medium-sized enterprises). You have been asked to organize a training workshop about the evolution of the Marketing Mix. Fill in the following chart entitled ‘The Evolution of the Marketing Mix’, and then prepare some ppt slides about the topic you will illustrate to your trainees.

The 4 Cs

The 4 Ps

1

.......................................................................

1

.......................................................................

2

.......................................................................

2

.......................................................................

3

.......................................................................

3

.......................................................................

4

.......................................................................

4

.......................................................................

+ 1

.......................................................................

2

.......................................................................

3

.......................................................................

45

Branding and packaging There are many tools to distinguish products: the specific product formulation (sizes, colour, smell, shape etc.), advertising, promotion, packaging and delivery systems. They make up the so-called ‘brand identity’, which is a combination of visible elements that together identify and distinguish a brand in the consumer’s mind. Among these elements, the name plays a fundamental role. Companies trading abroad must be extremely careful when choosing international brand names. In fact, unfortunate translations or spelling problems may hint at something embarrassing in a different country. Apart from giving each product a unique and easily recognized name, businesses may adopt a multi-brand strategy: they market several products by the same firm under different brand names. Some years ago the company Procter & Gamble applied these tactics and as a result customers were familiar with common brands such as Pringles potato chips and Duracell batteries or Pantene shampoo, but they didn’t know the producer’s name. This tactic, which targets different market segments, has been highly effective, but now P&G have reviewed their branding in an attempt to promote their corporate brand and their mission. A two-minute commercial, launched for the 2012 Olympic Games, featured mothers in different locations (London, Rio de Janeiro, Los Angeles, and Beijing) raising a young athlete. The spot focused on all the efforts and love necessary to achieve great results. It ended with the slogan: ‘The hardest job in the world is the best in the world, Thank you Mom’, which was followed by an array of the most popular P&G individual brands such as Oral-B, Duracell, Gillette, Pringles, Pantene, ending up with a close up on the P&G logo.

ACTIVITIES WARM UP

1

What happens in your mind when you make a purchase decision? Try to reflect upon this by answering the following questions. - Are you influenced by internal (your likes/ dislikes) or external (advertising) stimuli? - Do you generally collect information about the product beforehand? - Do you compare products’ attributes with alternatives? - Do you rely on word of mouth?

COMPREHENSION

2

46

Go back to the text and answer the following questions. 1 Which tools can producers employ in order to differentiate their products?

2

What factor should international businesses take into consideration when choosing brand names?

3

Describe the way a multi-brand strategy works.

4

Why has Procter & Gamble changed branding strategy?

5

What was the effect of the ‘Thank You Mom’ campaign?

6

What is an ‘own-brand’ product?

7

How do own branded products sell?

8

Where do most people make their buying decisions?

9

Which factors can influence customers’ purchasing decisions?

10

Which features of packaging should be taken into consideration?

MARKETING AND ADVERTISING

2

This emotional and global-branding campaign managed to unite all the different brands produced by P&G under the same moving image and the desired effect was reached: customers now can link very popular individual brands and P&G. In addition to very famous manufacturers’ brands like P&G, there are also retailers’ brands, for example supermarkets that offer their own products. These ‘own-label’ products are made by manufacturers but are sold under the supermarket’s own name: a very successful example is Sainsbury’s Novon washing powder and liquid which has defeated the giant competitors P&G and Unilever. The own-brand products account for a large percentage of supermarket sales. According to a survey published in The Guardian, nearly a quarter (22%) of shoppers planned to buy more own-brand food and drink in the year 2013. Own-brand products were once aimed at customers with a low income. Today, in a period of recession, they are popular with everyone. Their quality and their marketing have greatly improved. Branding facilitates the customers’ selection process. A recent study has shown that most people make their buying decisions at the ‘point of purchase’ (POP), which is where a product can be bought by an end user. The same research shows that most purchases are unplanned and can be affected by packaging: eye catching elements on supermarket shelves can influence our choices as well as promotional tools at check out displays. Packaging is so strictly associated with branding that experts consider it as the fifth P in the marketing mix. Marketers are nowadays fully aware of its importance at POP and recommend differentiating strategies regarding containers (shapes and sizes), packaging material, design (colours and texture) and labelling information.

VOCABULARY

3

Match up the words from the text with the definitions. shape • to hint • array • retailer • survey • recession • check out • texture 1 The place where goods are paid for in a store. 2 A period of temporary economic decline. 3 A person or company that sells goods directly to the public investigation, research. 4 The way that something feels when you touch it. 5 Display or collection. 6 The outward form of an object defined by outline. 7 To suggest or imply indirectly.

PRODUCTION

4

Look at the following list and check the meaning of new words, if any. corrugated boxes • set up boxes • cellophane wraps • bottles commercial paper bags • tins and cans • • glass • jar • basket In small groups choose one of the above containers and then: - choose a product suitable for it - create a brand name for this product - write an appropriate slogan to promote it - design a label, if necessary - decide if the container will be used for the product distribution or for the pop - explain which differentiating strategies you will adopt 47

Advertising through the ages

Student’s Book, Section 2, Module 3, p. 140

Advertising, an essential component in the marketing of any business, has been around for a long time. The Egyptians used papyrus to create posters; flyers and signs were widely employed in the ancient cities of Rome, Pompeii and Carthage to publicize events like circuses, games and gladiatorial contests. People have been trying to influence other people since the dawn 1 of human existence, utilizing whatever means and media they had at their disposal at the time. The human voice and word of mouth, of course, came first. Then someone picked up a piece of stone and started carving images that told stories, communicated ideas and promoted certain ways of doing things. The development of printing during the 15th and 16th centuries marked a significant turning point in advertising, making it more cost effective for marketers to reach a much wider audience. In the 17th century, adverts began to appear in early newspapers in England: the first form of mass media advertising was born. The 18th and 19th centuries saw a further expansion in newspaper advertising as well as the birth of mail-order advertising. This period also saw the establishment of the first advertising agency, set up in Boston in 1843 by the pioneering Volney Palmer. Initially ad agencies acted as simple brokers for newspaper space, but soon they developed into full-service operations, offering a range of creative and ad-placement services to their clients.

1 dawn = alba

The 20th century saw the beginning of another new advertising age with the advent of radio and television and, towards the end, of a new force, the Internet, which became a valuable business and communication tool for the masses. The era of digital marketing was born. Interestingly, none of these developments took the place of those that came before. Rather they served to augment them, offering marketers more diversity, allowing them to connect with a broader cross-section of consumers. In confirmation of this never-ending process of continuous improvement, scent marketing is the latest frontier in the advertising landscape. Some businesses even consider scents an integral part of their overall image, along with music, logos and décor. (Abridged from: Ryan and Jones, Understanding Digital Marketing)

48

VIDEO

MARKETING AND ADVERTISING

2

ACTIVITIES WARM UP

1

In pairs look at the ads on page 48 and try to identify the historical period they belong to. Think of modern ads: how do they compare with these pictures? Consider the target of the messages and the channels used.

2

What do you think makes an ad memorable? Originality? Wit? Celebs’ endorsement? Jingle? Other elements?

COMPREHENSION

3

Are the following statements true or false? Correct the false ones. 1 Advertising was born in 1843. 2 The ancients relied only on word of mouth to advertise events. 3 Stones were the first tools to communicate and promote ideas. 4 The invention of the press favoured the expansion of advertising. 5 The first advertising agency was established in the UK. 6 The advent of the Internet marks the beginning of the digital era. 7 When a new form of advertising appeared, an old one disappeared.

T

F

T

F

T

F

T

F

T

F

T

F

T

F

VOCABULARY

4

Find the words in the text that mean the following. 1 a thin paper-like material made from a plant 2 a small sheet of paper advertising

4 personal recommendations to promote product/service 5 to establish a business

something 3 to advertise

6 agent/intermediary

PRODUCTION

5

‘Ambient advertising’ means putting an ad in an unusual place or on an unusual item. It can be found anywhere and everywhere, for instance on petrol pump nozzles, supermarket trolleys car park tickets, hot hair balloons, taxi tops, car wraps etc. Can you think of any other example?  1 billboard

4 car wrap

2 pavement chalk board

5 taxi top

3 clothes and accessories

6 hot-air ballon

In small groups, decide now which type of ambient advertising would bemost effective in promoting and advertising the following products/services. an airline company • a restaurant • a car dealer • a soft drink • a new ice cream brand a clothing boutique • an art exhibition • a pub

6

Imagine you work for an advertising agency and you have been asked to write a script for a radio commercial advertising one of the products/services above. Remember that you have to persuade and inform without using any image, so words, music and speakers’ voices become paramount. Search the Web for jingles, sound tracks, noises and then blend these sound effects with the catchphrase or the slogan you have conceived. Don’t forget that a radio commercial generally lasts only 20 seconds! After jotting down the script, record it and let the other groups’ members listen to it. 49

Controversial advertising CASE STUDY

UNITED COLORS OF BENETTON

‘

When Life magazine makes a cover about war, it makes the cover to inform, but also to sell the magazine and to sell the advertising space inside the magazine. I do the same thing: I take pictures to sell products, and also to inform people. But when I do it, people point their finger at me, and say, ‘You are exploiting the news to sell!’ That’s not true, it is the people who don’t inform the public properly who are truly exploiting the situation. I don’t mind this criticism and I am not afraid of it either. In truth, it’s the greatest honour in the world.

’

Oliviero Toscani, Benetton Creative Director and Photographer from 1982 to 2000

A new leaf of life Until the 1980s, Benetton advertisements had largely focused on its products and logo, but the company wanted to pursue an unconventional communication strategy. A change occurred in 1982, when Luciano Benetton hired Oliviero Toscani. The new creative director soon realized that Benetton advertisements had to stand apart from the rest of the competition. Toscani’s first campaign featured teenagers and kids from culturally diverse nations. Colourfully dressed in Benetton apparel, the kids engaged in a variety of playful acts. By linking the varying colours in the Benetton collection to the diverse ‘colours’ of its world customers, Toscani portrayed a picture of harmony and world peace. It was from these advertisements that the trademark ‘United Colors of Benetton’ emerged. Since Benetton’s clothing was sold in various markets with different style preferences, Toscani soon turned his

WARM UP

1

Read the opening quotation and answer the questions. 1 Have you ever heard of controversial or shock advertising? 2 What is the function of a magazine cover according to Toscani? And according to you? 3 What charge was made against Oliviero Toscani? 4 Do you trust the news that you read in the newspapers and on the Internet or that you hear on TV? 5 Would you use the news to advertise a product?

focus to photos that stimulated thinking. His new advertisements neither showed the products nor the logo. Famous advertisements of this sort included a black hand and a white hand linked by a handcuff and a black woman breast-feeding a white baby. The black woman-white baby advertisement was severely criticized by many who thought that Benetton was reminding blacks of the days of slavery when black women breastfed white babies. However, Benetton maintained that such photos symbolized universal brotherhood.

Provocative advertising is born In 1991, Toscani introduced a number of advertisements that attempted to draw public attention to important social problems. One of these controversial ads portrayed a baby with an umbilical cord which provoked mixed responses. In the company’s view, the advertisement simply conveyed

COMPREHENSION

2

Complete the sentences with the following words. widespread • controversial • competition • far • slavery • responses • banned • peace 1 Companies like Benetton use provocative or ............................... advertising to gain presence in the marketplace. 2 Shock campaigns may send social messages but also generate negative ............................... . 3 Benetton’s strategy was to use a controversial advertisement to be seen by lots of people with the intention to stand apart from the rest of the ............................. .

50

MARKETING AND ADVERTISING

the beauty of new life and the universal idea of love, but the photo triggered off a huge controversy throughout Europe and was withdrawn from the media in Italy, France and the UK. However, this image was very succesfull in other countries. For example it was exhibited in a Flemish museum as part of a show celebrating the images of motherhood. Toscani’s escalation in controversy continued, and in 1992 he introduced political themes in Benetton’s advertisements. He selected various photojournalistic images related to the AIDS crisis, environmental disasters, political violence, war, exile, etc. These appeared in various magazines as well as on billboards without written text except for the insertion of the green and white Benetton logo.

Far beyond boundaries In January 2000, Benetton launched a new global

2

advertising campaign called ‘We, on Death Row.’ This campaign, which featured 26 US prisoners who had been sentenced to death, appeared on billboards and in major publications in Europe, America and Asia and on the Benetton website. The campaign resulted in widespread protests from individuals and governments. The families of the victims and prisoners objected strongly to the campaign and accused Benetton of glamorizing murderers while ignoring the crimes they had committed. Toscani believed that the sharp criticism was not justified and resigned in May 2000. Eventually Benetton realized that his communication strategy had gone too far. Various surveys suggested that some loyal customers had been put off by Toscani’s campaigns. Since 2000 Benetton’s advertising campaigns have therefore reverted to a more traditional communication strategy.

(Abridged and adapted from: Benetton Group: Evolution of Communication Strategy, ICFAI)

ACTIVITIES 4 The trademark ‘United colors of Benetton’ refers to harmony and world

VOCABULARY

3

............................. . 5 The photo of a black woman breastfeeding a white baby reminded some people of the days of ............................. . 6 The ad portraying a baby with an umbilical cord was ............................... . in some countries. 7 The global campaign ‘We, on Death Row’ resulted in ............................... sharp criticism and protests. 8 Benetton realized that its shock campaign had gone too ...............................

Go back to the text and find the English equivalents of these verbs. 1 trasmettere 7 ritirare 2 sfruttare 8 ritrarre 3 suscitare 9 rendere attraente 4 perseguire 10 oltrepassare il limite 5 affermare 6 dare il via

PRODUCTION

4

Look at the controversial ads by Oliviero Toscani discussed in the article. Are you against or in favour of this type of shock advertising? Support your ideas with facts and references to your studies about advertising. 51

Web marketing

‘

’

You can’t just place a few ‘Buy’ buttons on your website and expect your visitors to buy.

Student’s Book, Section 2, Module 3, p. 139

Neil Patel

Nowadays the market has widened and rapidly evolved thanks to the web, and therefore companies need to reach customers where they quite often are, that is, online. However, which are the main digital tools that can open up new paths for businesses? A list of ingredients for a possible ‘e-marketing recipe’ might include the following.

Creating a website First of all, let’s examine how companies can gain presence on the web through a good website. To start, a website can be compared to a shop window, as it has to display products and prices. In addition to that, it also has to provide clear details about company location, contacts and other useful information. A good appealing design, plenty of information and a unique and memorable name are key factors for the success of a corporate website, but they are not enough. Companies should exploit the Internet multi-functionality to the full and incorporate promotional tools, ads, games, gifts, coupons and pricing details. Since about 2004, we have been familiar with the web 2.0 and its collaborative potential which allows businesses to establish a sort of ‘corporate dialogue’ with prospective customers, suppliers, shareholders and employees through their sites. In fact, through the use of web 2.0 capabilities, companies can allow all their stakeholders to actively participate. Moreover, a compelling website provides the company with information on the people who visit it, tracks the traffic and gets statistics offering marketers very useful data.

Online advertising Apart from its informative function, a well designed website also advertises and promotes products and services. As we have already said, web marketing changes fast and Internet advertising has really changed a lot. Just a few years ago the most common form of online 52

MARKETING AND ADVERTISING

2

advertising was banner advertising. This was an attractive graphic strip across the top or bottom of a website which provided cheap brand recognition. The ad could be static or animated and visitors could get more information or go to another website by clicking on it. However most web surfers soon started ignoring banners which they considered as clutter. This phenomenon has become so widespread that experts have identified a sort of syndrome, the so called ‘banner blindness’. Nowadays traditional banners and pop-ups still exist but they are not a nuisance as before; they are generally more interactive and entertaining. The Web 2.0 environment has upgraded advertising methods too. An example is ‘affiliate marketing’, a way to promote other companies’ products through an advertisement on a company’s website. This tactic easily results in a network of members that get people visit affiliate sites and may generate sales.

E-mailing and blogging In the world of social networks, e-mail may seem an old fashioned marketing tool, but it is still a good way to maintain one-to-one contact with customers and offer support. However, many companies nowadays use a more interactive channel – a corporate blog. A blog has a different and more involving character, as it can collect and share new ideas. In fact bloggers can post their comments while the company can update relevant brand information to better meet customers’ needs and interests. SMM, Social Media Marketing, also defined as ‘electronic word-of-mouth’ is strictly connected with the habit of blogging; social media including Facebook, Twitter and LinkedIn are good virtual channels for businesses. Each social medium targets a particular market segment and offers different activities involving sharing of content, photos and videos.

Search engine marketing Everybody gets information through search engines and therefore an efficient website must be easily found and indexed, or, in other words, quickly queried. A company may have a very appealing appealing website, but it will be a failure if it does not feature high in the listings on a search engine results page. That’s why, ultimately, e-marketers should also be concerned with SEO (Search Engine Optimization). SEO refers to visibility online, it is the process of improving the volume of traffic to a website. A better web brand’s presence can be achieved by using keywords and tags easily recognized by search engine ‘spiders’ or ‘crawlers’, which are programmes that follow Internet links and ‘capture’ content from websites. SEO works through free of charge traffic, while SEM (Search Engine Marketing) involves a cost. 53

WARM UP

1

Read and discuss in pairs the initial quote. Imagine you are an online marketing consultant working for a digital agency: you are trying to explain a small company manager why ‘Buy’ buttons on a website are not enough to attract prospects. Which other tools would you recommend?

COMPREHENSION

2

Read pages 52-53 and answer the following questions. 1 What is online marketing? 2 What is the main function of a website? 3 What upgrades has Web 2.0 introduced? 4 What is a banner? 5 Why do Internet surfers rarely click on banners? 6 What is ‘affiliate marketing’? 7 Why do companies use e-mail and blogs? 8 Are social networks good marketing channels? 9 What is the first online tool to get information about a company? 10 What is the difference between SEO and SEM?

VOCABULARY

3

Go back to the text and find the English equivalents for these Italian words. 1

vetrina

................................

8

seccatura/disturbo

................................

2

attraente

................................

9

passaparola

................................

3

tagliando/buono

................................

10

4

azionista

................................

rivolgersi/ prendere di mira

................................

5

convincente

................................

11

condivisione

................................

6

tracciare/seguire

................................

12

7

disordine/confusione ................................

classifica/ posizionamento

................................

PRODUCTION

4

54

At home or in your school computer-lab visit Volkswagen and Renault’s corporate websites. Analyse them carefully and check if they offer: - info about the product and the manufacturing process - location of the company - contact data (including e-mail) - company headquarters - recruitment page - financial information - news releases - ads - blogs - promotional tools - shopping carts/buying buttons

MARKETING AND ADVERTISING

2

ACTIVITIES Then prepare a table comparing the two websites. Here’s an example you may follow.

LOCATION OF THE COMPANY

VOLKSWAGEN

RENAULT

headquarters in Wolfsburg

atlas with different world locations

......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... ......................................................... .........................................................

5

Use different search engines and see how easily you can get to Volkswagen and Renault English corporate websites. Enter the two companies’ catchphrases: ‘WELCOME TO VOLKSWAGEN - DAS e-AUTO’ and ‘DRIVE THE CHANGE’. You can try with: GOOGLE, BING,YAHOO SEARCH, ASK, AOL . Then by using the information of exercise 4 chart and the following focus question/tips, write a paragraph about the website you prefer. - Is the URL simple and memorable? Does it refer to the company name and logo? - How are navigation areas arranged? Is the top navigation bar horizontal or vertical? Is it under or beside the site header? Are there drop-down menus in it? How many menus are contained? Are there any sub-menus? Are the headlines clear? - Are there photos and videos? Are they just ornamental or also informative? Do they attract your attention? Do they evoke positive/negative feelings? Are they connected with the texts? - What about the language employed in the texts and headlines? Is it neutral and objective or does it convey positive/negative connotations? Are there technical words? If so, can you understand their meaning from the context or do you need a dictionary? 55

The difference of m-marketing What is m-marketing? According to the MMA (The Mobile Marketing Association), mobile marketing is a set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through and with any mobile device or network. M-marketing revolves around mobile devices, in particular the smartphone, an object with which most people have a very personal relationship and which may represent a great new opportunity for marketers. Experts, such as R. Friedrich, have outlined the main advantages of this mobile medium: 1. It is independent of time and location; customers can access the Web anywhere and anytime: the marketer is closer to the consumer. 2. Marketers can collect more data on their target consumers, such as their shopping and spending habits, their likes and dislikes: marketing strategies may be tailored to the individual. 3. It is a highly interactive device which allows immediate response: marketers may have a direct interaction with their customers. 4. People have a special psychological attachment to it: marketers may exploit this intangible factor. 5. It facilitates transactions like e-banking. Other authors have pointed out that this mobile medium is significantly superior to any other media in terms of ubiquity, convenience, personalization, and localization:

Everywhere, at the same time Mobile technology allows constant access to commercial sites and to information. It permits customers to receive and send information and make transactions practically anywhere at any time. Therefore the always-on connectivity of mobile devices makes m-marketing particularly compelling.

Always together Mobile devices are always with the user and are always connected, so consumers can receive information even when they cannot access the Internet on a PC from home or the office, and even when they are doing something else. For instance while consumers are caught in a traffic jam or waiting at a bus top, or travelling.

One-to-one Smartphones are very personal objects which are ideal tools for one-to-one customized marketing. m-marketers can make well-tailored offers and provide relevant information for their target customers thanks to data mining techniques.

GPS navigation The Global Positioning System provides the location of the m-consumer, so m-marketers can send messages about nearby buyers and sellers, the weather or traffic information. (Adapted from: Varnali, Toker, Yilmaz, Mobile Marketing: Fundamentals and strategy)

56

MARKETING AND ADVERTISING

2

ACTIVITIES WARM UP

1

In pairs ask the following questions. 1 What type of relationship do you have with your smartphone? 2 How often do you do any of the following actions on your smartphone/mobile device? - Read news - Check e-mail - Tweet - Share photos, videos, news, etc. - Chat with friends/relatives - Surf the Net - Listen to music - Shop 3 How much private information do you store on your smartphone? How do you safeguard it? 4 Have you got a tablet? If so, do you use it in the same way as your smartphone?

COMPREHENSION

2

Answer the following questions. 1 According to the MMA, what are the main activities of m-marketing? 2 What are the advantages of using a mobile medium? 3 Why is mobile technology described as ‘ubiquitous’ by experts? 4 What are the examples of convenience given in the text? 5 In which way can m-marketers personalize their offers? 6 How can GPS technology be exploited by m-marketers?

VOCABULARY

3

Read the text on page 56 and find the words for the following definitions. 1 ...............................: A global non-profit association that strives to stimulate the growth of mobile marketing and its associated technologies. 2 ...............................: A portable, hand-held, wireless computing device. 3 ...............................: A means of mass communication, such as newspapers, magazines, radio, television, Internet.

4 ...............................: The use of computers to carry out banking transactions such as withdrawals through cash dispensers or transfer of funds at point of sale. 5 ................................: Existing or being everywhere at the same time. 6 ...............................: Pertaining to an Internet connection that is continuously and immediately available by using software. 7 ...............................: Using software to look for patterns in large batches of data, businesses can learn more about their customers and develop more effective marketing strategies. 8 ...............................: Global positioning system.

PRODUCTION

4

In small groups choose one of the following businesses and think about how you would promote its launch by exploiting m-marketing opportunities.

an ice cream shop

a taxi network

a pool and spa centre

a home delivery pizza service

Each group must think about: - the product concept: its USP and its competing products - the name of the business: it must be catchy and unique - the mobile application you would use to launch it: SMS, MMS, website, web portal, mobile games, mobile video, etc. - pricing: how would you compete on price? By special offers and discounts? Once you have discussed and agreed upon an effective m-marketing strategy prepare a presentation to show the rest of the class. 57

The best mobile campaigns CASE STUDY

STARBUCKS AND TARGET

iMedia Communication Inc. is the most influential community of digital marketers who evaluate mobile programs of major companies; they select businesses that properly carry out the four ‘pillars’ of mobile marketing by:

• planning out mobile strategies • clearly identifying the target audience and integrating mobile with the media mix

• using several mobile tactics that work together to provide an effective multifunctional mobile presence

• employing CRM, that is, Connected Customer Relationship Marketing, which is a business strategy that allows companies to manage business relationships thanks to data and information associated with their customers. This way, m-marketers can segment, target, and develop valuable marketing tools. Here are the campaigns that best achieved these goals in 2011.

Starbucks Student’s Book, Section 2, Module 3, p. 136

Starbucks has sharpened its focus by moving away from mass marketing to a one-to-one focus, putting the customer at the center of its marketing efforts. This concern has led to a mobile marketing strategy that is now an integral part of the overall marketing mix. Starbucks has developed mobile programs that allow consumers to shop, search, and purchase through contactless payments. The significance of this mobile program is based on a fundamental understanding of consumer mobile habits and behavior. But it goes further with the ability to personalize content. What is also very interesting is the media integration of web, app, text messaging, display, LBS, and direct mail to engage the consumer and bring people to the stores. The mobile loyalty program is an extension of the CRM strategy - it works with the loyalty card and is tied into commerce. Below is a high-level description of notable capabilities.

• A barcode turns a smartphone into a Starbucks card, allowing consumers to check balances and reload cards from the app. • The app allows registration and includes a store locator. It even puts nutritional information at the consumer’s fingertips.

• In some stores, consumers can tap and pay with their mobile device. Media mix = the different channels the company can use to reach its target customers – it can include radio, TV, print and online advertising. LBS = Location-Based Services take advantage of information on the geographical position of the mobile device. Balance = A list accounting for the debts on one side and for the credits on the other. QR code = Quick Response Code that is a two-dimensional machine-readable optical barcode that contains information about the item to which it is attached.

58

MARKETING AND ADVERTISING

2

ACTIVITIES WARM UP Target Target is the second-largest discount retailer in the United States. One of the best mobile campaigns in 2011 was from Target, which used a multi-channel mobile approach to meet consumers’ needs. Target was the first retailer to implement mobile barcode scanning in all its locations nationwide. Target’s mobile strategy includes text message marketing, QR codes, consumer shopping apps for all devices, a mobile preference center, and a mobile site with the aim of making shopping at Target an easy and enjoyable experience. Retailers like Starbucks and Target are proving that the integration of mobile into the overall marketing strategy is a powerful and large-scale way to engage consumers and increase customer value. The commitment shared by these leading trailblazers is proof that mobile will continue to be a key business driver well into the future. (Adapted and abridged from: Chris Wayman, The best Mobile Campaigns) Scanning QR code for shopping.

1

Have you ever heard of m-marketing companies that evaluate other m-companies?

COMPREHENSION

2

Read the extract and correct these statements. 1 The task of digital marketers working for iMedia Communication Inc. is to design effective corporate websites. 2 The media mix is the upgrade of the marketing mix. 3 Starbuck’s m-marketing strategy is centred on mass marketing. 4 Target is a luxury department store. 5 A QR code contains information about the customer. 6 Target has recently adopted mobile code scanning.

VOCABULARY

3

Find words or expressions in the text that mean the following: 1 accomplish, achieve 6 commitment, fidelity 2 endeavor 7 joined, linked 3 worry, care 8 improve 4 buy 9 total, whole 5 push, force 10 pioneer, leader

PRODUCTION

4

Write an article about mobile marketing for your school magazine: draft it on the basis of the following tips. - lead (first paragraph)  definition of mobile marketing - body of the article  m-marketing strategies and advantages; possible disadvantages - conclusion: look at the following statistics and make predictions about the future of m-marketing number of smartphones in use in 2013 (1 in 7 people worldwide)

percentage of users who won’t recommend companies with poor mobile sites

of people purchase an item after scanning QR codes

US social media ad revenue are expected by 2017 to reach 59

THE JOB MARKET

Getting a job in marketing Here are three actual job offers published in a British online magazine focusing on the marketing industry. Go through each of them and see if any could suit you.

LOGIN or CREATE AN ACCOUNT

HOME

FIND A JOB

 Job

MARKETING JOBS

Discipline

 Sectors  Experience

Level

 Country 

Salary

 Contract

Type

YOUR ACCOUNT

YOUR PROFILE

YOUR SHORTLIST

Marketing Manager

Y

ou’ll be responsible for the development and delivery of the marketing strategy in order to maximise commercial performance and return on marketing investment. As Marketing Manager your duties will include: proposing annual pricing targets; monitoring, tracking and reporting on performance; reporting on market conditions and competitor performance; proposing site marketing and PR budget; managing allocation of communications mix budget. Apply

SEO Accountant Manager

T

asked with all aspects of account management you’ll work closely with your clients offering a tailored service to their needs. As you build a strong rapport you’ll be able to guide and advise them ensuring they get the best return on investment for their money and all with a great account handling service. The role will also involve all aspects of principle SEO techniques such as link building, analysis, website auditing and keyword research. Apply

Advertising Specialist

W

e are looking for a bright passionate advertising specialist preferably working in agency or with previous agency background. You will work across EMEA1 markets with the marketing teams on local advertising methods: TV, online, posters. The role is very much about ensuring the balance of the Brand communication from a global perspective, but also ensuring that it works for local markets too. 1

60

Europe, Middle East and Africa

Apply

MARKETING AND ADVERTISING

2

ACTIVITIES WARM UP

1

When you finish your High School, you will probably apply for your first job. Which of the following sources you think might help you in your recruitment process? Put a tick next to the ones you might be likely to use. - situation vacant pages in local newspapers

...............................

8 revisone, verifica

...............................

Paolo Rossi has decided to apply for the post of ‘Advertising Specialist’. He has already filled in the following application form. Using information from the ‘FIND A JOB PAGE’ and the application form below, write Paolo’s cover letter.

- jobs website - Facebook In pairs, discuss the advantages and disadvantages of each of them.

COMPREHENSION

2 You will have to adjust to your competitors’ pricing policies.

7 relazione, contatto

5

- my family

1 You will be responsible for the delivery of products.

...............................

Choose one of the three positions advertised in the online magazine, imagine you are a graduate possessing the right qualifications to fill that vacancy. Write a proper CV to send to the magazine Marketing Week. It must include: - your personal data - your education (qualifications) - your computer skills - your foreign language knowledge - your interests - references

- LinkedIn

Correct these statements.

6 personalizzato

4

- employment agency

MARKETING MANAGER

...............................

PRODUCTION

- your school teachers

2

5 stanziamento

3 You won’t have to deal with communications. SEO ACCOUNTANT 4 You will work on your own at the company headquarters. 5 Search Engine Optimization will not be a main concern of yours ADVERTISING SPECIALIST

SURNAME

Rossi

NAME(S)

Paolo

ADDRESS

Via Monfalcone, 109 – 10136 Torino – Italy

DATE of BIRTH

5 November 1989

QUALIFICATIONS

6 The post is offered to young graduates without working experience.

2. Master in Web Design and Communication (University of Rome)

7 You won’t have to travel. 8 You will be responsible for branding locally. LANGUAGES

Italian (Mother tongue), English (C1), German (B2), Arabic (B1) (Selfassessment: European level)

COMPUTER SKILLS

Office Suite: Word, PowerPoint, Excel, Internet Explorer

MANAGERIAL SKILLS

Good team-leading skills

VOCABULARY

3

Go back to the text and find the English equivalents for these Italian words. 1 ottimizzare

...............................

2 rendimento

...............................

3 mansioni

...............................

4 controllare

...............................

1. Degree in English, German and Arabic (University of Turin)

61

Keywords in Marketing • Ad clicks: Number of times users click on an ad banner. • Ad views (Impressions): Number of times an ad banner is downloaded and presumably seen by visitors. • Advertisement: Any announcement or persuasive message placed in the media in paid or donated time or space by an identified individual, company, or organization. • Advertiser: The company, organization, or individual who pays for advertising space or time to present an announcement or persuasive message to the public. • Advertising: The placement of announcements and persuasive messages in time or space purchased in any of the media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and/or persuade members of a particular target market or audience about their products, services, organizations, or ideas. • Advertising agency: An organization that provides a variety of advertising related services to clients seeking assistance in their advertising activities. • Advertising budget: The decision about how much money should be spent for advertising during a specific time period in order to accomplish specific objectives. • Advertising campaign: A group of advertisements, commercials, and related promotional materials and activities that are designed to be used during the same period of time as part of a coordinated advertising plan to meet the specified advertising objectives. • Affiliate marketing: An online marketing strategy that involves 62

revenue sharing between online advertisers/merchants and online publishers/salespeople. Compensation is typically awarded based on performance measures such as sales, clicks, registrations or a combination of factors. • After sales support: The services offered by the selling firm after the sale has been made to promote goodwill, ensure customer satisfaction, and develop customer loyalty. • Banner: A series of cross tabulations between a criterion or dependent variable, and several, sometimes many, explanatory variables in a single table. • Banner ad: A graphical Internet advertising tool. Users click on the graphic to be taken to another Web page or web site. The term “banner ad” refers to a generic description of graphical ad formats on the Internet. • Brand: A brand is a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. • Brand awareness: Brand awareness is a marketing concept that enables marketers to quantify levels and trends in consumer knowledge and awareness of a brand’s existence. • Brand switching: A purchasing pattern characterized by a change from one brand to another. • Browsing: A term that refers to exploring an online area, usually on the World Wide Web. • Channel of distribution: An organized network (system) of agencies and institutions which, in combination, perform the functions required to link producers with end customers to accomplish the marketing task.

MARKETING AND ADVERTISING • Competition: The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion. • Differential advantage: A property of any product that is able to claim a unique-ness over other products in its category.

2

and implements the data collection process, analyzes the results, and communicates the findings and their implications. • Market segmentation: The process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs.

• Distribution: The marketing and carrying of products to consumers.

• Market share: Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity.

• Logo: A logo is a graphic design that is used as a continuing symbol for a company, organization, or brand. It is often in the form of an adaptation of the company name or brand name or used in conjunction with the name.

• Marketing: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

• Market demand: The total volume of a given product or service bought by a specific group of customers in a specified market area, during a specific time period.

• Marketing management: The process of setting marketing goals for an organization (considering internal resources and market opportunities), the planning and execution of activities to meet these goals, and measuring progress toward their achievement.

• Market penetration: Market penetration occurs when a company enters/penetrates a market in which current products already exist. • Market positioning: Positioning refers to the customer’s perceptions of the place a product or brand occupies in a market segment. Positioning involves the differentiation of the company’s offering from the competition by making or implying a comparison in terms of specific attributes. • Marketing research: The function that links the consumer, customer, and public to the marketer through information –information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages

• Marketing manager: The generic title for the line executive responsible for designated marketing functions (such as marketing research, product planning and market planning, pricing, distribution, the promotion mix, and customer services) and for coordinating with other departments that perform marketing related activities. • Marketing mix: The mix of controllable marketing variables that the firm uses to pursue the desired level of sales in the target market. • Marketing plan: A document composed of an analysis of the current marketing situation, opportunities and threats analysis, marketing objectives, marketing strategy, tactics and action programs, and projected or pro-forma financial statements. • Online marketing: Term referring to the Internet, e-mail and other online based 63

aspects of a marketing campaign. Can incorporate banner ads, e-mail marketing, search engine optimization, e-commerce and other tools. • Packaging: The process by which packages are created. • Pop-up ad: An ad that displays in a new browser window. Pop-up ad windows typically are smaller and do not offer the navigation tools of a standard browser window. • Price: The formal ratio that indicates the quantities of money goods or services needed to acquire a given quantity of goods or services. • Promotion, word-of-mouth: The product/service information, experience, and opinions discussed by consumers in social contexts. • Tactics: Short-term actions undertaken to achieve implementation of a broader strategy.

• Test marketing: One form of market testing. It usually involves actually marketing a new product in one or several cities. • The 4 Ps: A traditional view of marketing that divides the function into four, interconnected parts: Product, Price, Promotion, Place (distribution). • Web 2.0: A term that refers to the second generation of Internet-based services. These usually include tools that let people collaborate and share information online, such as social networking sites, wikis, and other communication tools. • Web browser: A software application that allows for the browsing of the World Wide Web. • Web site: A collection of interconnected electronic “pages” available on the Internet used to provide information about a company, organization, cause or individual.

(Source : AMA, American Marketing Association Dictionary)

64

Information technology

IT and business Netiquette To reduce e-mail, start at the top The rise and rise of online shopping Internet privacy: key language Data protection Digital tracking devices coming soon Online fraudster target ski tourists Users of online dating sites fall victim to fraud E-banking Confession of an identity thief Business applications of social networking technologies Why LinkedIn is morphing from a social network into an online newspaper The path to happy employment, contact by contact on LinkedIn

EUCIP core Plan Build Operate

3

MEDIA FILE

Student’s Book, Section 2, Module 1, p. 89

Netiquette

If you really can’t bear to cut down your e-mailing then consider your netiquette instead. That doesn’t just mean being nice to your employees – though, of course, you should be! It means asking yourself some simple questions before hitting send. First of all, mull over whether that e-mail needs to go at all. Are you going to be clogging up people’s inboxes with irrelevant information that doesn’t really apply to them? If so, take everybody else off the chain and just send it directly to the most relevant recipient. Secondly, does the e-mail contain a large attachment? If so, it 1 grind to a halt: could grind your colleagues’ e-mail bloccarsi

to a halt1. There is nothing more frustrating than having a to-do list to get through and your computer freezing. Finally, make sure the message is clear, concise and well thought through. All too often e-mails are written quickly and sent without being reviewed. How much time have you wasted trying to decipher a message that doesn’t make much sense? Consider your subject heading carefully. If you need someone to read the email urgently, make that clear and click on the red high priority mark . Don’t write too much and always go back and read through before sending it. (Adapted from: The Guardian online)

ACTIVITIES WARM UP

1

Have you ever heard of ‘netiquette’? What do you think it is?

COMPREHENSION

2

3

66

3 How did they manage to reduce the number of e-mails and to what extent?

Read the article about netiquette and answer the questions. 1 What are the most important things to remember when you send an e-mail? 2 Why is it important to send messages only to those who really need to read your e-mail? 3 What do you have to do before clicking ‘send’? Read the article taken from the Harvard Business Review and answer the questions. 1 Why did International Power want to reduce the number of e-mails? 2 How many messages a day did the executives use to send?

4 Is an e-mail as effective as a phone call? If it isn’t, why not?

VOCABULARY

4

Read the first article again and find phrasal verbs in the text that have the same meaning as these expressions. 1 finish or complete a job or task ............................................................................. 2 reduce the length of something ............................................................................. 3 go through a text up to the end ............................................................................. 4 become blocked with a lot of material ............................................................................. 5 think about something carefully .............................................................................

INFORMATION TECHNOLOGY

3

To reduce e-mail, start at the top

T

he main reason our e-mail in-boxes consume so much of our time is that we have little control over how many messages we receive. But we can control how many messages we send. When the sevenperson top European management team at the London-based company International Power wanted to increase the firm’s efficiency, an analysis suggested that a glut1 of e-mail might be part of the problem. The executives initially believed that the high volume was due entirely to actions of others and were astonished to learn that they themselves were sending 56 messages a day, on average. Acting on the hypothesis that a reduction in executive outflow would prompt2 a reduction in employee outflow, the executives aimed to cut the number of e-mails sent by the top team members by 20% within four months. Despite a few misgivings3 (some felt the intervention intruded on their personal style), the executives underwent training to reduce their e-mail output by taking more deliberate actions: not forwarding messages unless strictly necessary, limiting messages’ recipients, and choosing the form of communication that would most efficiently accomplish the task at hand. In a phone call, for example, vocal tone provides real-time feedback on whether a message is being understood – something that’s missing in a written e-mail. Facial expressions and body language make in-person meetings an even richer method of communication. (Adapted from: Harvard Business Review)

1 glut: eccesso 2 prompt: indurre 3 misgiving: timore

5

Translate these words into Italian. 1 executives (people in a business organization with administrative or managerial powers) ............................................................................. 2 glut (situation in which supply exceeds demand) ............................................................................. 3 misgivings (feeling of doubt or worry) ............................................................................. 4 recipients (people who receive something) ............................................................................. 5 outflow (amount that flows out) ............................................................................. 6 average (result of adding several amounts together and dividing the total by the number of amounts) .............................................................................

PRODUCTION

6

Interview your partner about his/her Internet habits. Ask questions such as the following and then report back to the class. - How long have you had e-mail? - How often do you use the Net? Often/Very often/ Every day? - What is the main reason why you send e-mails? - Have you ever e-mailed someone in another country? - Have you ever e-mailed anyone in English? - Have you ever e-mailed someone you’ve never met?

7

Finally discuss with your partner the advantages of writing e-mails. Follow the example. Student A - I think that one of the advantages of writing e-mails is … Student B - Yes / You’re right / I agree but … Student A - I know / That’s right / What you have to do is ... 67

MEDIA FILE

The rise and rise of ONLINE SHOPPING

W

hen Amazon.com opened for business on July 16th 1995, it was nothing more than a few people packing and shipping boxes of books from a garage in Bellevue, Washington. Just 15 years later it had become one of the largest online retailers in the world, selling everything from guitars to dishwashers. Despite the economic recession, more than 150 million people, about two-thirds of all Internet users in the U.S., buy something online every year. When Amazon came on the scene, selling books online was a curious idea. Why should people buy online when they could go to a bookstore? But soon, a revolutionary change in thinking took place. This was mainly because of two factors: price and choice. If you lived in a small town with just one bookstore and they didn’t stock the novel you wanted, the Internet was a solution and its appeal was even stronger if it offered a discount on the normal price. At first the big sellers were ‘hard goods,’ those things you didn’t have to touch or

smell in order to buy, such as books, computers and other electronics. But now, everything is available. People even buy things like perfume online, without feeling the need to actually smell it first. People have come to accept online shopping partly because they have grown used to the Internet and to giving out personal information online. Consumers now feel more comfortable about using their credit cards over the net and some have so much trust1 that they allow retailers to save all their personal details, making the buying process much simpler. The change happened also because the online experience has become more like an in-store shopping trip. Many sites adapted themselves to consumers who like to try before they buy. Sites which sell clothes and accessories frequently offer free shipping for returned goods. If you buy it, try it and don’t like it, returning the item is less of a problem. Other online stores make it easier for customers to get the look and feel of a product.

ACTIVITIES WARM UP

1

Answer the following questions. 1 Have you ever bought goods online? What have you bought? 2 How did the e-commerce system work? Did you have any problems? 3 Do you know Amazon? Why would you buy a book online and not go to a bookstore?

COMPREHENSION

2

68

2 consumers began to see the advantages of buying online. 3 products like books and computers were the first big sellers. 4 people have become less worried about giving credit card details online. 5 consumers have become more confident about buying goods like clothes online. 6 luxury fashion goods have only recently become available online.

Read the article and then explain why...

7 retailers now recognise the value of online product reviews.

1 in the beginning most people couldn’t see the point of buying books online.

8 levels of customer loyalty and trust at Amazon have increased.

INFORMATION TECHNOLOGY

3

Sears and Gap allow2 customers to zoom in on products to examine their texture and colour in close-up. Others such as Buy.com include product videos that allow shoppers to see, for example, a microwave oven in action. Now even luxury retailers, who initially had a rather snobbish attitude to the Internet, are selling goods online. Designer goods from top fashion names like Jimmy Choo, Hugo Boss and Donna Karan are all available from their websites. Customers are more comfortable than ever doing shopping online. 83% of consumers say they are more confident in making a purchase when they have conducted research online instead of speaking to a salesperson in a store. Retailers too are more relaxed; initially many were terrified of the idea of having product reviews3 from consumers published online but they have now learned to appreciate the power of good reviews. Charles Bateman, Amazon’s vice president, says that product reviews have increased customer loyalty and trust: ‘Consumers know that they can come to the site and get the honest opinions of other customers’. (Adapted from: Time)

1 trust: fiducia 2 allow: permentere, rendere possibile 3 review: recensione

VOCABULARY

3

Explane in your own words these expressions as used to explain online shopping. feel more comfortable about using credit cards • an in-store shopping trip • get the look and feel of a product • to zoom in • the power of good reviews

PRODUCTION

4

Summarise the main ideas in the article. Use the following points to help you. - the first online shops and products - reasons why people began to buy online

- reasons why consumer confidence in online shopping increased - recent expansion of online shopping.

5

Ultra Sport is a new shop in Rome, selling sports clothes and equipment. The owners would like to expand their business by going online. What opportunities and advantages could e-commerce offer Ultra Sport? What problems and additional expenses would going online involve? If you were the owners, what would you do?

Write a report mentioning advantages and disadvantages. 69

Internet privacy: key language Spam Definition of spam in English from the Oxford English Dictionary: Irrelevant or unsolicited messages sent over the Internet, typically to large numbers of users, for the purposes of advertising, phishing, spreading malware, and so on. The word originated in the 1930s: apparently from sp(iced) ham. The Internet sense appears to derive from a sketch by the British ‘Monty Python’ comedy group, set in a café in which every item on the menu includes spam. Spam is unwanted, unsolicited e-mail also called online junk mail. Most spam is commercial advertising, often for dubious products, get-rich-quick schemes, or quasilegal services. Spam is the flooding1 of the Internet with many copies of the same message, in an attempt to force the message on people who would not otherwise choose to receive it. It started to become a problem when the Internet was opened up to the general public in the mid-1990s. It grew exponentially over the following years, and today composes some 80 to 85% of all the e-mail in the world, by a ‘conservative estimate’. Pressure to make e-mail spam illegal has been successful in some jurisdictions, but less so in others because spam costs the sender very little to send.

Spyware One of the most controversial aspects of the Internet is spyware. Spyware secretly collects information about a user through their Internet connection, usually for advertising purposes but sometimes also with criminal intent. Typically spyware is embedded 2 as a hidden element of freeware or shareware programs that one can download from the Internet, though not all or even the majority of such applications include spyware. 1 flood: inondare 2 embed: inserire 3 keystrokes: azionamento dei tasti 4 exploit: servirsi di 5 pinpoint: localizzare

Once installed, the spyware can monitor your Internet activities. Since spyware is an independent executable program it can monitor keystrokes3, scan files, spy out other applications such as chat programs or word processors, or read cookies. It can thus find out e-mail addresses, passwords or even credit card numbers and then relay that information back to the spy author who either uses it for marketing purposes or sells the information to a third party. Aside from the abuse of one’s privacy, spyware also exploits 4 the memory and system resources of your computer and can lead to system crashes.

Digital tracking It’s a service that logs your location, whether you want it or not. The program can pinpoint 5 your whereabouts to within the length of a football field and this raises enormous privacy concerns, but it also offers enormous benefits to companies. If misused, these types of capabilities could amount to virtual stalking. 70

INFORMATION TECHNOLOGY

3

Firewall A firewall is a system designed to prevent unauthorized access to or from a private network. Firewalls can be implemented in both hardware and software, or as a combination of both. Firewalls are frequently used to prevent unauthorized Internet users from accessing pr ivate networks connected to the Internet, especially intranets. All messages entering or leaving the intranet pass through the firewall, which examines each message and blocks those that do not meet the specified security criteria. A firewall is considered a first line of defense in protecting private information.

ACTIVITIES WARM UP

1

Answer the following questions.

VOCABULARY

3

1 Do you often receive spam messages? What do you do and how do feel about them? 2 Have you ever heard of spyware? What does this term suggest?

A.................................

3 Are you aware that your cell phone location can be tracked down by the police in case of an emergency? How do you feel about it?

2 Copy data from one computer system to another over the Internet.

4 Do you know whether a firewall system is installed in your computer?

3 A state in which one is not disturbed by other people.

D.................................

P.................................

COMPREHENSION

2

Find the words in the text for the following definitions. The first letter is given. 1 The activity of producing advertisements for commercial products or services.

4 The place where someone or something is.

Read the text and answer the following questions.

W................................. 5 Private communications network created using World Wide Web software.

1 Where does the term ‘spam’ come from? 2 What does the percentage 80-85% refer to? 3 For which purpose was spyware introduced? 4 What type of information is being tracked? 5 How might digital tracking violate your privacy? 6 What is the purpose of a firewall system?

I.................................

PRODUCTION

4

With the help of the text above explain how you can protect your privacy on the Internet. Write a short report of 10 lines giving some advice to people who are not familiar with computers. 71

Data protection

Student’s Book, Section 2, Module 6, p. 252

In Europe, the processing of personal data is governed by the EU Directive 1995/46/EC on the protection of individuals with regard to the processing of personal data (Council of Europe Data Protection Convention). Three years later public concern over data held within commerce and industry led to the Data Protection Act (1998) in the UK, thus enabling the UK to participate in the transfer of personal data within the EU. The DPA establishes rules for the treatment of personal data, that is data related to a living person who can be identified from it. Personal data must be obtained and processed in a fair and legal manner, it must be held for reasons compatible with its original purpose. Data Protection Act 1998 is an act to make new provision for the regulation of the processing of information relating to individuals, including the obtaining, holding, use or disclosure of such information. It specifies the general obligations of data controllers as to how personal data is handled. Data protection is about your fundamental right to privacy. You can access and correct data about yourself. Those who keep data about you have to comply with data protection principles. The data protection act is necessary to ensure that information kept about an individual in any private or public organization must be: • current • useful • available to the person on request. It is important to familiarize yourself with the data protection act so that you understand the rights and the principles as they apply in different practical situations like, for example in the workplace. The European Community directive states that it is illegal to: • send spam from inside the European Union • use spyware • use unauthorized digital tracking.

Protect your privacy on the Internet Your privacy on the Internet depends on your ability to control both the amount of personal information that you provide and who has access to that information. In order to increase your privacy online you should think before you share personal information, you should choose how private you want your profile or blog to be and finally you need to protect your computer and use an Internet firewall. It’s also important to create strong passwords. Strong passwords are at least 14 characters long and include a combination of letters (both upper and lower case), numbers, and symbols. They are easy for you to remember but difficult for others to guess. Don’t share your passwords with friends. Avoid using the same password everywhere. If someone steals it, all the information that password protects is at risk. 72

3

MEDIA FILE

Digital tracking devices coming soon Imagine walking by a Starbucks in an unfamiliar city. Your cell phone rings, and a coupon for coffee pops up on its screen, good only at that location. How did your phone know you were even near that particular Starbucks? What else does it know about you? Cell phones, handheld devices, even car navigation systems will soon have detailed tracking abilities, if they do not already. Services could begin appearing within a year or so. Much of the drive will come from a federal law that requires cell phones to identify callers’ locations to speed 911 emergency responses. If the industry has to install expensive equipment anyway, why not use it also to make money?

ACTIVITIES WARM UP

1 1

2

‘Big Brother is Watching You’? (Adapted from: abcnews online)

2

3

4

5

6

7

8

9 10 11 12 13 14

Have you even been tracked down by a popular chain while shopping in one of its stores?

COMPREHENSION

3

Read text on page 72 and complete the table. Then explain how you can protect your privacy on the internet.

Name

Year

What it is about

EU Directive 1995/46/EC DPA

4

‘There’s going to be a dramatic increase in the amount of tracking that’s made possible, in part by services they don’t know they have,’ said Daniel J. Weitzner of the World Wide Web Consortium, which sets technical standards for the Web.

Such tracking will let someone visit a Web site and automatically get weather, movie showings or neighborhood restaurants, based on their current location. If they’re lost, they will be able to ask for turnby-turn directions. Those short of cash can be pointed to the nearest bank machine.

Create a strong password with 14 characters easy for you to remember.

Read the article about digital tracking and answer these questions. 1 What does Starbucks sell? 2 Which are the devices that are able to identify your location? 3 Why did a federal law in the US require such digital tracking? 4 What kind of information can you get with such tracking?

VOCABULARY

5

Read the article and find synonyms for the following words and expressions. 1 mobile phone

4 unknown

2 finding s.one or s.thing after a difficult search

5 rise

3 voucher

6 with no money in their pockets

PRODUCTION

6

Point out the points in favour of digital tracking (i.e. when it is useful) and the points against digital tracking (i.e. when it is used only for commercial purposes). Give examples. 73

MEDIA FILE

Online fraudsters target ski tourists

T

ravel agencies have warned of a new Internet scam targeting holidaymakers who are booking skiing accommodation online. Some people have transferred thousands of pounds to conmen posing as the owners of luxury chalets. Chalet operator Consensio Holidays said ‘Fraudsters extrapolate pictures and words from Internet listings for our chalets and try to pass them off as their own. Often they will embed their email addresses inside the photos, encouraging people to contact them directly in order to make a booking before transferring money into their bank account. The clearest sign of a fraudulent listing is the cost some scammers charge only 10 percent of the chalet’s actual market price.’

The case of Manuela Manuela Zwingmann-Wood, from Hampstead in north London, has been caught out by the scam. Her friends decided to book accommodation online, paying £13,000 to a man who had posted a listing on a holiday rentals website. She said: ‘My friend Julia found a spectacular chalet in Val d’Isère for a very good price. She emailed the

owner who said he would give us a 5% discount. But the thing was he asked for her to pay by bank transfer. We all thought it was too good to be true, but it was a reputable website which Julia has used for more than 10 years. We just couldn’t believe how gullible we had been. We all use the Internet every day and consider ourselves to be savvy - I can’t believe we would fall victim to something like this. It is shocking the lengths that these people are prepared to go to.’ (Adapted from: BBC News)

ACTIVITIES WARM UP

1

‘Scam’ is a term of unknown origin which began to be used in the 1960s. Do you know what it means?

2

You will read about someone who has been victim of a scam. Have you ever suspected that someone wanted to make you the victim of an online scam? If so, what did you do?

COMPREHENSION

3

74

Read the article on page 74 and answer the following questions. 1 What is the technique used by scammers? 2 How much does a chalet in a fraudulent listing cost?

3 What happened to Manuela and to her friend Julia? 4 What promise attracted the attention of the two women? 5 Why did Julia trust the owner of the chalet? 6 How much did they pay? 7 How did the two women react after the scam?

4

Read the article about a romance scam and answer the following questions. 1 What is a dating or romance scam? 2 How many losses were there last year due to dating scams according to the FTC? 3 What happened to Pat? 4 Where does she come from?

INFORMATION TECHNOLOGY

3

Users of online dating sites fall victim to fraud

O

nline scams are as old as the Internet, but those that use romance as bait are on the rise as dating sites proliferate, authorities say. In 2012, the Federal Trade Commission created a separate category for them among the web crimes it tracks: ‘romance scam’. Last year, the agency says, it received complaints of losses totaling $105 million, which is roughly the same as the year before. ‘The complaints reported are only the tip of the iceberg,’ says FTC director Steve Baker. Criminals typically court victims over several months with poetry, flowers and other forms of flattery. They then lure victims off the dating site to communicate by email or instant message. Trust won, the perpetrators then present a crisis that requires money to solve.

husband of 40 years; I was just looking to find love like everybody else,’ says Pat, a Missouri businesswoman. ‘You’re lonely, so you fall for it.’ When she realized she had been deceived, Pat says, ‘You don’t want to talk to anybody about it, because you feel so stupid.’ Still, she didn’t give up on looking for love. She used the dating site until her subscription expired. But four out of six suitors she connected with were scammers, she realized. Each time one asked for money, she replied: ‘I have been down this road before; you find another gull.’ (Adapted from: The Wall Street Journal)

The case of Pat He told her he was a Connecticut contractor. She was a 67-year-old widow. After they met last year through an online dating site, he sent her a photo and wooed her with romantic words. Three months into the relationship, she began wiring money to help him. He had gone to Nigeria to oversee a project, he explained, but ran into one emergency after another. She sent $15,000, she says, before realizing the suitor was a scammer. ‘I had lost my

5 What is her job?

4 Scammers ask for ...........................................

6 How much did she give?

5 Pat didn’t want to talk about it, because she .....................................................................

7 What did the man she loved tell her? 8 Why was it so easy to deceive her?

6

VOCABULARY

5

Complete the following sentences with the correct words from the text. 1 Poetry, flowers and other forms of flattery are used by ....................................................... 2 The victims are persuaded to communicate by ..............................................   or ......................................................................... 3 Money is required by ...................................... to resolve ...........................................................

Find out in the articles the English equivalents of these words. bonifico bancario • truffatori • imbroglio • di buon senso • corteggiava • esca • appaltatore • pretendente • siti di incontri • credulone

PRODUCTION

7

Write a report of 10 lines about what you should do in order to protect yourself in case of scams. Start like this: In order to minimize any damage in case of scams I would … 75

E-banking Many banks offer their services on the Web. Once you have opened your account with an online banker, you have convenient control from your office or home of what happens to your money, twenty-four hours a day, seven days a week and from any Internet linked location in the world. You can pay your bills and have an instant check of your account balances so as to make sure that your finances are in order and you have enough funds to cover any scheduled payments. In addition you can transfer funds from your company account to another bank account, pay bills and even apply for a loan. You can get a financial snapshot of your savings, download online statements, find out which dealings have been carried out and double-check your entries. It’s quick and easy, you save time because you don’t have to visit a bank and wait in a long queue.

Security and protection of personal data A critical aspect of business online is protection from financial fraud. Banks are very keen to ensure there are good security systems in place. In recent years many banks have been targeted by phishers. The word phishing is hacker jargon and it comes from the word ‘fishing’. It is used to describe the Internet scams when the fraudsters send customers an e-mail that looks like it comes from an authentic bank. If the customers type in the details, the phishers have all the information they need to empty their bank accounts. All online banks now have warnings on their sites. Most financial institutions use Secured Socket Layer (SSL) technology to encrypt all of your transactions. These steps help to safeguard your personal data. If you visit an online bank that doesn’t offer SSL or have a satisfactory privacy policy, you should look elsewhere.

Identity theft Identity theft occurs when someone uses your personal identifying information (like your name, social security number or credit card information) to pretend to be you. An identity thief is some hacker who uses back-door system access tricks to compromise a bank’s database of customer account information.

76

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MEDIA FILE

Confessions of an identity thief This is an article written by a convicted felon currently serving 57 months in a federal correctional institution for identity theft and mail fraud. I am a former identity thief. That’s not a fact of which I’m proud. I sit here at Fort Dix FCI, trying to redeem myself for some of the wrongs I have perpetrated. And I hope what I have to offer will be of value to banking and security leaders.

ACTIVITIES WARM UP

1

Do you know why online banking has become increasingly popular in recent years?

2

What are the potential problems with e-banking? Why do some people avoid Internet banking?

COMPREHENSION

3

Read the text on page 76 and answer the following questions. 1 Give at least two reasons why people might be interested in opening accounts with an Internet bank. 2 How does phishing work? 3 How is financial security online ensured? 4 What is identity theft?

4

Read the story and find out: - the type of crime committed by the person - the way the person was able to access bank accounts - how the person executed the operation of fraud - who were the typical ‘victims’ - the punishment the person received - why the person decided to confess his crime.

Front-door fraud Many identity thieves use what we call ‘front door’ tactics to commit fraud. I was able to pull off many fraud deals – some in the realm of $150,000 – by simply having the confidence to be shameless when speaking on the phone with a loan specialist or underwriter. The entire operation can be executed using any IP masking software from the comfort of your favorite WiFienabled coffee shop. Consequently, there is virtually no face-time required. With front-door identity theft, the true ‘victims’ are typically banking institutions, loan providers, brokers and credit card issuers – not an actual individual. Using front-door tactics, frankly, provides us with a larger playing field of potential targets.

How I did it

VOCABULARY

First I decided to buy a Mercedes and then I selected a loan provider. Next I needed a stolen ID (when I refer to an ID, I mean the basic components: name and social security number. Date of birth and address can be found online). With this information in hand, I needed to pull a Credit Report and I found it in the Annual credit report online. Then I filled out the online loan application. I then called the loan specialist and gave the details of the vehicle I had chosen to buy. Later I received the loan documents via express mail and less than one week later the institution mailed me a check. Yes, indeed, the front door was truly wide open!! (Adapted from: infosecinstitute online)

5

Find the Italian equivalent of the following words. 1 account balances 4 savings 2 scheduled payments 5 raudsters 3 apply for a loan 6 to encrypt

PRODUCTION

6

Find the following information on the web, then write a report. - the European countries with the highest number of online banking users - the European countries with the lowest rate of online banking - how Italy compares to the UK in terms of online banking. 77

Business applications of social networking technologies Social Networking Technologies comprise a huge quantity of web-based applications that share one common feature: they foster1 the development of online communities by facilitating communication, interaction, collaboration or the sharing of information. Facebook, Twitter, Google, Foursquare, LinkedIn and Myspace are currently the most popular and well-known social networks, especially among ‘millennials’. Social networking technologies are the ultimate and most advanced outcome on the Web. When you sign up to a social networking site you are asked to give some personal details and then there are options to create and join different groups, upload photos, create events, send gifts, messages, play games and a lot more.

1 foster: favorire, promuovere 2 invaluable: preziosi

Social networks, however, are no longer just an outlet for personal use. They are becoming a must for business success. With small businesses obtaining new customers as a direct result of using social media and instant messaging, more and more companies are using social networking as a means to gain a return on their investment. Youtube, Facebook, Twitter and LinkedIn all offer different advantages to a small business, because customers are encouraged to interact with your business online, for example by posting information, comments, product ratings and product reviews to your website. This is useful information for other customers and provides you with invaluable2 market research data. Furthermore many businesses use blogs to connect more informally with their customers, letting them know about changes in the business and promoting new products. Blogs are also a good way of getting informal feedback from customers. As with all websites, however, total security cannot be guaranteed, but the risks of fraud, voyeurism and invasion of privacy are made a lot worse by the fact that a lot of personal information including photos and videos, can be stored in your profile. Social networking websites have deeply changed the way in which business are managed and allow for new and more efficient ways of communicating. Think about how they can help you build up your relationship with customers and create a community around your brand, for example an online forum to let costumers share their own advice and tips about using products. Compared to what was possible in the 90s, a veritable revolution took place!

ACTIVITIES WARM UP

1

Do you know what blogs or forums are?

2

Have you ever heard of LinkedIn? Can you imagine why it is so popular with young people and business people?

COMPREHENSION

3

78

Read the text about social networking technologies and answer the questions. 1 How have the ways in which people communicate changed?

2 What are social networks used for? 3 How can social networks help business?

4

Read the article about LinkedIn and answer the questions. 1 What do these figures from the text refer to? 2002 .......................... 300 ........................... 200 ........................... 2 ........................... 67% ........................... 39 ........................... 2 What is the purpose of LinkedIn? 3 What are ‘Connections’? 4 How can ‘Connections’ be used?

INFORMATION TECHNOLOGY

3

FACTS AND FIGURES ABOUT LINKEDIN

L

inkedIn is a business-oriented social networking service. Founded in December 2002 and launched on May 5, 2003, it is mainly used for professional networking. LinkedIn operates the world’s largest professional network on the Internet with more than 300 million members in over 200 countries and territories. Professionals are signing up to join LinkedIn at a rate of more than two new members per second. Sixty-seven percent of LinkedIn members are located outside of the United States. There are over 39 million students and recent college graduates on LinkedIn. They are LinkedIn’s fastest-growing demographic. The company is publicly held and has a diversified business model with revenues coming from talent solutions, marketing solutions and premium subscription products. One purpose of the sites is to allow registered users to maintain a list of contact details of people with whom they have some level of relationship, called ‘Connections’. Users can invite anyone (whether a site user or not) to become a connection. This list of connections can then be used in a number of ways: • It can be used to find jobs, people and business opportunities recommended by someone in one’s contact network. • Employers can list jobs and search for potential candidates. • Job seekers can review the profile of hiring managers and discover which of their existing contacts can introduce them. • Users can post their own photos and view photos of others to aid in identification. • Users can bookmark, i.e. save, jobs that they would like to apply for. • Users can see who has visited their profile page.

VOCABULARY

5

6

Find the words in the text that mean the following. 1 Sending a message on the Internet. 2 Classifications according to quality. 3 Short articles expressing opinions about a product. 4 Websites with a closely linked group of people who share information. 5 Personal websites or web page on which an individual records opinions, links to other sites, etc. on a regular basis. 6 An Internet site where users can post comments about a particular issue or topic. 7 Information about reactions to a product. which is used as a basis for improvement. Translate these words into Italian. 1 business-oriented 5 employers 2 college graduates 6 job seekers 3 publicly held 7 introduce 4 revenues 8 bookmark

PRODUCTION

7

After reading the article can you give reasons for the success of LinkedIn? Exchange opinions with your partner and discuss the advantages of LinkedIn following the example. Student A – I think that one of the advantages of LinkedIn is … Student B - Yes / You’re right / I agree but I also think that LinkedIn is …

8

Find out more information about LinkedIn on the official website and look at the graph showing the membership of LinkedIn by country. Can you find out the percentage of LinkedIn members in Italy compared to the total population in our country? And how does Italy compare to the UK and the US in terms of LinkedIn members? Write down your answer and give your opinion about your findings. 79

MEDIA FILE

Why LinkedIn is morphing from a social network into an online newspaper On May 5th, LinkedIn will celebrate its 11th birthday. It announced last month that 300 million people had signed up for the professional social network. This evening, LinkedIn will report earnings for first quarter of this year, which analysts suppose will surpass the company’s own expectations. Despite all these positive signs, there is one question that has

pressed the network for the majority of its history: What is LinkedIn actually for? Establishing a clearer identity is crucial to LinkedIn’s future. While more than 300 million people have joined, LinkedIn’s most recent filings suggest that the number of people who log in at least once a month is probably closer to 200 million. Growth in US monthly desktop users and desktop pageviews both slipped into negative territory last year (though visitors from mobile are climbing). To many, LinkedIn is only a place to go when looking for a job. And despite LinkedIn’s exhortations to users to fill in their profiles to ‘100% completeness’ and

‘endorse’ each other, connections and endorsements on the network are essentially meaningless. LinkedIn needs a way to get users to come back more regularly. That’s why, over the past three years, it has changed into a platform for professionals with an online newspaper. LinkedIn is not only for your résumé, it’s much more than just a place to list your credentials. It offers sophisticated tools for recruiters and job seekers, networking features for professionals seeking new sales prospects, a Facebook-like service for posting status updates, and even a newsreading app called ‘Pulse’ for busy people to scan the latest headlines.

(Adapted from: qz online and NYTimes online)

ACTIVITIES WARM UP

1

What is LinkedIn? A social network or an online newspaper?

COMPREHENSION

2

80

5 What countermeasures are being developed by LinkedIn?

Read the article on page 80 and answer the questions. 1 Why is LinkedIn changing? 2 What is the main reason why people log in? 3 What seems to be the present necessity for LinkedIn? 4 What functions are neglected by users?

6 What is LinkedIn offering now to the people who are looking for a job?

3

Read the article on page 81 and answer the questions. 1 Who is Allen Blue? 2 What is his aim? 3 What are the common mistakes made by users? 4 What kind of advice does he give to the people who have a LinkedIn profile? 5 What does he mean by ‘the nextgeneration résumé’?

INFORMATION TECHNOLOGY

3

The path to happy employment, contact by contact on LinkedIn LinkedIn, the networking site for professionals, has become a vast business gathering place1. With more than 259 million members in over 200 countries, LinkedIn offers users, most of whom pay nothing for the service, a chance to select and increase their contacts. Users can also limit their connections to others who can best help them professionally.

users to create a compelling text-and-multimedia narrative of their life and work. It can be updated at will, can be any length and it will often pop up in a Web search of the user’s name. ‘This is the nextgeneration résumé,’ Mr. Blue said. (Adapted from: NYTimes online)

‘People need resources to find a job and contribute to their community,’ said LinkedIn’s co-founder, Allen Blue. ‘We want to create an economic opportunity for every professional.’ But that promise won’t mean much if the site is not used correctly. Failing to keep a LinkedIn profile updated, ignoring connection 1 business requests or connecting with the gathering place: wrong people can make the site luogo di incontri pointless2. professionali 2 pointless: inutile

First, the basics: LinkedIn allows

VOCABULARY

4

Find out in the article on page 80 the English equivalents of these words. 1 leggere 5 registrazioni rapidamente 6 appoggiare 2 profitti 7 coloro che assumono personale 3 primo trimestre 4 curriculum vitae 8 aggiornamenti

PRODUCTION

5

You have just left school and you are looking for a computer-related job opportunity. You find this post in the

official blog of LinkedIn. Write a post introducing yourself and ask for advice. www.linkedin.com

Ready for Your Next Career Move ? There’s an App for That Alyssa Sittig, June 26, 2014 What if I told you that your smartphone has the power to change the trajectory of your career? It sounds like science fiction, but it’s actually pretty straightforward. With the release of the new LinkedIn Job Search app for iPhone, professionals can now take their LinkedIn job hunt wherever they go. With features like real-time job alert notifications, saved searches, and the ability to apply wto jobs with your LinkedIn profile in a few clicks, it’s not hard. (http://blog.linkedin.com/2014/06/26/ready-for-your-next-careermove-theres-an-app-for-that/)

81

THE JOB MARKET

Getting a job in ITC (Webmaster)

1 Where? A job as a Webmaster is now one of the fastest growing, most satisfying and best paying jobs within the field of Information Technology. As a Webmaster or Web Developer you’ll be responsible for the overall design, layout and coding of a website. Webmasters can work in isolation (as freelancers) or as part of a team in companies which have to do with the net economy e.g. e-commerce, mobile-commerce, marketing, promotion and so on.

2 Qualifications and entry level •

•

•

•

• •

82

A good web developer needs not only to have a good technical knowledge of HTML but also other key technologies of software programming and graphics. Good communication and interpersonal skills are important: you need to be able to communicate with your client, user and team. To have common sense: the fact that there are many tools out there to be used in the web design process does not mean that all of them need to be used in one single website. You should use the tools and the ideas that are most relevant to your client and user group; make something attractive, but right to the point. To have sense of humour: it is important in any job that involves working with a group of people. To be able to work to tight deadlines.

If you want to enter a company you need a degree in Business and IT. You also need to have a good grounding in web design, interactive design, graphic design and Internet Technology. Most employers expect applicants to have relevant work experience, vocational skills and a specific qualification. Here are some of the most common qualifications: In Europe: EUCIP (European Certification for Informatics Professionals) is a qualification for a range of computing jobs across all sectors. In the UK BTEC (National Diploma in Art and Design (Multimedia) is a two-year full-time practical course, which allows you to experience a broad range of art and design activities. In the US AIGA (the American Institute of Graphic Arts) remains the oldest and largest professional membership organization for design.

INFORMATION TECHNOLOGY

3

3 What? Web design is an interesting and rapidly changing field, assisted by the growth of Multimedia. Websites are not just a simple platform; they are highly artistic, engaging, the perfect presentation card for any institution, company or group. Websites need to be designed to be compliant with standards and guidelines to ensure that they are quickly accessible through different platforms, such as PCs, Macs, mobiles, PDAs and digital television. Together with the technical specification, websites need to be fun, attractive, clear and right to the point. Web design is important in every organization; it forms an essential part of their marketing. Creativity and a sense of design is important – web pages need to look good and grab the viewer’s attention. You’ll be closely involved with the maintenance and update of existing sites you have designed. You would be developing the programming code by adapting existing website software and graphics packages to meet business requirements You’ll also be testing your website for possible problems and then uploading the site onto a server and registering it with different search engines. You’ll also have to keep up to date with advances in computer technology and how this affects the business environment.

WARM UP

1

Can you make a list of the pros and the cons of a career as webmaster? Do you think that working hours might be a problem for you?

PRODUCTION

3

READING COMPREHENSION

2

Read the text and answer the following questions. 1 In which sectors can you find a job as webmaster? 2 Apart from the professional skills you need for the job, which are the personal skills required by a company? 3 Do you need a specific qualification? 4 What are EUCIP, BTEC and AIGA? 5 Describe in details what a web designer does.

Look at this list of Top Jobs in Information Technology. - Business Management Software Consultant - Information Technology Program Manager - Network Administrator, LAN/WAN - Systems Analyst - User Interface Engineer Choose one of these jobs and search its profile on the web. Find out information about the qualifications and the skills you need for the job and then write a paragraph of 10-15 lines in order to make a presentation to your classmates.

4

Compare the profile of a webmaster with the one chosen for your presentation. Which is the most interesting for you? Discuss it with your partner. 83

is a foundation qualification for a range of computing jobs across all sectors. EUCIP core certification is developed into three sections: • Plan Knowledge Area: Use and Management of Information Systems • Build Knowledge Area: Development and Integration of Information Systems • Operate Knowledge Area: Operation ad Support of Information Systems On the following pages you will find some texts adapted from the EUCIP core syllabus. You will find some sample questions that will help you get an idea of what EUCIP is and some multiple-choice questions similar to those found in the final test.

PLAN - Information security Information security means protecting information and information systems from unauthorized access, use, disclosure, disruption, modification or destruction. Information security is concerned with the confidentiality, integrity and availability of data regardless of the form the data may take, whether it be in electronic or print form. The most common threats are: • the introduction of a malicious code • virus attack • unauthorized access to a system • an attack on the system by external hackers

• a denial of service – which prevents the system from servicing its authorized users • system or hardware failure

Security Policy Not all information is equal and so not all information requires the same degree of protection. Therefore it is essential to assign classifications to information. Some common information security classification labels used by the business sector are: • public

• sensitive

• private

• confidential

Three key concepts form the core principles of information security. They are: • confidentiality

• integrity

• availability

A Security Officer will be responsible for security management and policies. Access to protected information must be restricted to people who are authorized to access the information. The computer programs, and in many cases the computers that process the information must also be authorized. The main task of a security officer is to ensure that everybody understands and applies the established rules. Access control mechanisms start with identification and authentication. Identification: It is the act of finding out who someone is. Authentication: There are three different types of information that can be used for authentication: something you know, something you have or something you are. On computer systems the Username is the most common form of identification and the Password is the most common form of authentication. After a person, program or computer has successfully been identified and authenticated, then it must be determined what information they are permitted to access, and what actions they will be allowed to perform. This is called Authorization. Hypertext Transfer Protocol Secure (HTTPS) is a communications protocol for secure communication over a computer network, with especially wide deployment on the Internet. Technically, it is not a protocol in and of itself; rather, it is the result of simply layering the Hypertext Transfer Protocol (HTTP) on top of the SSL/TLS protocol, thus adding the security capabilities of SSL/TLS to standard HTTP communications. 84

INFORMATION TECHNOLOGY

SAMPLE QUESTIONS 1 What does Information Security mean? 2 What is a Security Policy? 3 What is the role of a Security Officer? 4 To whom does a Security Policy apply to in an organization?

MULTIPLE CHOICE

most common classification labels used by companies? A

Public – Confidential – Integral – Sensitive

B

Integral – Public – Confidential – Private

C

Integral – Public – Sensitive – Private

D

Public – Sensitive – Private – Confidential

4 Which are the three main concepts forming the core of Information Security?

1 A security officer is responsible for security management and policies. Which of the following is not a function pertaining to such role?

A

Confidentiality – Integrity – Access to systems

B

Confidentiality – Interaction between company and customers – Availability

A

C

Integrity – Conformity – Availability

D

Confidentiality – Integrity – Availability

Ensuring that everybody applies the established security rules.

B

Ensuring that everybody understands the established security rules.

C

Developing IT security software programs.

D

5 Companies must be aware of the potential threats to their IS and ICT infrastructure. Which of the following is not a threat?

Defining valid security procedure.

A

Introduction of malicious code

2 Access to protected information passes through several steps such as Identification, Authentication and Authorization. Which of the following refers to the Authorization phase?

B

Provision of electronic service to customers

C

Unauthorized access to a system

D

External hackers

A

Checking if the user is really who he/ she represents himself to.

B

Permitting the access to specific areas and allows specific actions.

C D

6 How can you protect your online exchange of information while working on a project with another team located in another country? A

By using generic USB drive.

Defining who someone is.

B

Changelling the user to provide his unique information (his password, fingerprint, etc.).

By sharing you passwords with the team you are working with.

C

By using personally owned mobile devices to access the online work abroad.

D

By using the new protocol named HTTPS: the S at the end is for Secure. HTTPS encrypts data before sending it out over the Internet.

3 An important aspect of Information Security is the development a classification policy in order to classify all information according to its value for the organization. Which are the

3

85

BUILD - Web design When designing a website it is important to know in advance who the intended audience is. For example if you are building a website which is going to promote the use of a beauty spa for women living in a particular city, we need to design the site in a way that will appeal to those particular women. The website design and content must be developed with target costumer in mind. Because websites are of different types, purposes and sizes there is no one-right-way to design them. Each website design will depend on its purpose, whether it is a business website, a company portal for internal employees only or a club’s first attempt at establishing a web presence. If it is for a business, it may be designed to attract new customers, give information about products and services, do market research or provide customer support. A website should contain the information that the user is likely to be looking for, and text should be easy to read with no spelling or grammatical errors. Complete contact information (mailing address, telephone numbers, etc.) for the visitor should be available in a prominent location on the site. Graphics included in a website should convey information or make a page more readable. The content of the site should be organized in a logical manner, so that a user can quickly and easily find the information that he or she is looking for. The site should look good and work well with recent versions of major browsers. No page on your site should be farther than three clicks away from any other page.

Easy navigation Website navigation is the science and skill which you apply to a website that helps visitors move from one page to another. A clean layout and neat navigation will help to tell people exactly what is available on your site. It will also make it easy for the visitor to request additional information. It is important: • to have one basic design on all pages • to maintain a site map or homepage to help people find what they are looking for with ease • to use short, clear and precise words in your links so that your visitors know what the corresponding page will contain • to use standard icons and conventions and keep them simple • to make a visitor always go back to a previously visited page • to include a search feature so that visitors can search your site for the item that interest them • to make it easy for a visitor to determine what is new and when things were changed. This will encourage visitors to return at some later time • to avoid too many colours both for the background and text.

86

INFORMATION TECHNOLOGY

3

SAMPLE QUESTIONS 1 Why is it essential to know in advance who is the target customer of a website? 2 What should a good website contain? 3 Why is it important to provide easy navigation?

MULTIPLE CHOICE 1 A website can be considered as user-friendly if A

It pays particular attention to the users’ needs.

B

It meets the needs of the creator of the website.

C

It is always available.

D

None of the above.

2 To define graphical planning of a website we have to A

ask a group of experts in the field to define the graphical components.

B

discuss the target audience and the contents.

C

consider the graphical resources available.

D

None of the above.

3 A visitor of the MYProducts website, which sells electronic products, would like to buy a mouse. Which are the most important features of the site to make the purchase easier? A

Sale and shipping terms are clearly stated.

B

The catalogue includes only a few products.

C

The visitor must see all the products in the catalogue and only at the end s/he can choose the products s/he is interested in.

D

A few clicks should be enough in order to buy the product.

4 Which of the following features does not make navigation on a website easier? A

The pages of a section should have the same graphical aspect; only the content should vary.

B

The availability of a site map.

C

Links are clearly labelled.

D

Use of many different colours on the page.

5 What is the best way to highlight information on a webpage? A

Use the right colours.

B

Use just one colour.

C

Use many colours.

D

Use many colours and images.

87

OPERATE - The World Wide Web The World Wide Web, or the Web is a system of specially formatted documents and applications on the Internet. The documents and applications on the internet are formatted in a markup language called HTML (HyperText Markup Language) that supports links to other documents, as well as graphics, audio and video films. This means that you can jump from one document to another simply by clicking on links. To access the web, you use Web browser software, the most popular being INTERNET EXPLORER, SAFARI, FIREFOX or GOOGLE CHROME. All communication on the Web is carried out among a set of computers that are interconnected by a computer network. Web technology can be used across an Intranet (a network within a company or organization) or across the global Internet. To communicate on the Web there are two types of software: Client and Server.

Web Server A Web Server stores many kinds of information that will be sent to browsers following a URL request. To request some information , a client contacts a server. The server responds by sending a copy of the requested information. The client and server programs must follow a communication protocol to ensure that the exchange works properly.

Web Client (browser) A Web browser is a software application which enables a user to display and interact with text, images, videos and music located on a web page at a website on the World Wide Web or a local area network. Text and images on Web pages can contain hyperlinks to other Web pages of the same or a different website. Web browsers allow a user to quickly and easily access information provided on many Web pages and other browsers at many websites by traversing these links. Web browsers format HTML information for display, examples of browsers include MOZILLA FIREFOX, OPERA and INTERNET EXPLORER.

HTTP (Hypertext Transmission Protocol) Hypertext Transmission Protocol (HTTP) is a communication protocol for the transfer of information on Intranets and the World Wide Web. HTTP is a request/response standard between a client and a server. A client is the end-user, the server is the website. Typically an HTTP client initiates a request. An HTTP server waits for the client to send a request message. Upon receiving the request, the server sends back a message of its own, the body of which is perhaps the requested file, an error message or other information. Resources to be accessed by HTTP are identified using Uniform Resource Locators (URLs).

URL (Uniform Resource Locator) Uniform Resource Locator (URL) is the unique address for a file that is accessible on the Internet. The URL contains the name of the protocol to be used to access the file recourse, a domain name that identifies a specific computer on the Internet and a pathname, a hierarchical description that specifies the location of a file in that computer. An example of a URL on the web using HTTP is: http://www.fas.ie/en/Training/Home/default.htm 88

INFORMATION TECHNOLOGY

3

SAMPLE QUESTIONS 1 Describe the World Wide Web with regard to the role of the server and the client. 2 What is HTTP and what does it do? 3 What is a URL?

MULTIPLE CHOICE 1 HTML is a markup language used to format a web page so as it can be viewed on a browser. A

True

B

False

2 HTTP maintains the state of information between a connection and the following one. A

True

B

False

3 Which of the following definitions for a URL is correct ? A

Hyper-textual markup language.

B

A communication protocol between hyper-textual documents.

C

Web Server

D

The address of a resource available on the Internet

4 A browser is a program used to view hyper-textual pages on the World Wide Web. Which of the following is not a browser? A

UBUNTU

B

MOZILLA FIREFOX

C

INTERNET EXPLORER

D

SAFARI

5 Imagine that a web page has to check the identification and authentication of the user. Which of the following solutions best solves the problem? A

The use of a java applet.

B

The use of a javascript program on the client.

C

The use of a database containing the logins and passwords to be integrated with the applications which generate the web pages.

D

The use of HTML pages.

89

Keywords in IT • Access point: An access point is the connection that ties wireless communication devices into a network. Also known as a base station, the access point is usually connected to a wired network. Most Wi-Fi networks have a range of up to 150 feet but the access-point range can be extended through the use of repeaters, which can amplify the network’s radio signal. • Anonymous FTP site: Sites that offer files that are open to the general public for downloading.

• Boot sector infector: Virus that infects the boot sector of a hard disk. • Browser: A software program that translates and allows you to view HTML files. • Cookies: Text files that visited Web sites store on your computer’s hard disk.

• Attachments: Files that are sent separately from, but attached to, an e-mail message.

• CPU: acronym for “Central Processing Unit”. A chip or chips on the mainboard containing the control unit and the arithmetic/logic unit, that interprets and carries out the basic instructions that operate a computer.

• Archie: A search engine for anonymous FTP sites.

• Data: A collection of pieces of information.

• Backup: To copy files to another media as a precautionary measure, in case the first media fails.

• Database: An organised collection of related information.

• Bluejacking: Bluejacking is a practice of sending anonymous text messages to mobile users using Bluetooth. Phones that are Bluetooth-enabled can be tweaked to search for other handsets using it that will accept messages sent to them. However, a user can avoid these messages by setting their device to ‘invisible’ or turn off Bluetooth when not using it. Bluetooth is a protocol that allows devices such as mobile phones and laptops to send data to other devices, without wires, over distances of about 30 feet. • Bluesnarfing: A security flaw in Bluetooth that could allow an attacker to access and copy information stored on a mobile phone without the user’s knowledge has been dubbed “bluesnarfing”. Any information stored on a phone – like contact lists or e-mail and text messages –are at risk in a bluesnarfing attack. 90

• Bookmarks: Notation that you create to list sites you visit often or would like to quickly return to.

• DBMS: Database Management System. • Domain: The name of a particular Internet site. • Download: The act of copying information from a distant computer to your local computer. • Driver: Operating systems and applications use a general system call to operate hardware devices. The driver is a software routine that translates it into the specific instructions needed to control the hardware device. • Export: The process of taking (exporting) data from an application, i.e. a database, and placing it into another application, i.e. a spreadsheet. • FAQ (Frequently Asked Questions): list of questions and answers to the most commonly asked question about a topic. • Field: A single category of data in a database.

INFORMATION TECHNOLOGY • File compression: Refers to files that have been reduced in size using file compression software. • Filter: A restriction placed on records in an open form or datasheet to temporarily isolate a subset of records. • Format: To change the look of a document, text, graphics, characters. • FTP (File Transfer Protocol): Protocol used to transfer files between two computers. • Full backup: All files in the system, including program files and data files, are duplicated. • Gopher: Text-based Internet protocol that allows people to view documents in a menu-driven environment. • GUI (Graphical User Interface): Combines text, graphics and other visual cues to make software easier to use. • Hacker: A person who illegally gains access to computer systems. • Hardware: The physical components of the computer system e.g. keyboard, mouse, speakers. • Home page: The main or introductory Web page for a site. • Hot spot: A hot spot is another name for a Wi-Fi access point or an area where there is an open wireless network. Typically, a “hot spot” has free wireless Internet access but it also applies to areas with paid access, such as coffee shops or airports. • Import: The process of bringing (importing) data into an application which has been exported from another application. • Inbox: The location where new e-mail messages arrive. • IT (Information Technology): The application of science and engineering to provide a practical efficient method for the collecting, processing and storing of information.

3

• Mailing list: An automated software program that distributes your message to a large group of people via e-mail. Also known as a “listserver” or “listprocessor”. • Menu: In Microsoft Word, pull-down menus give a choice of options to make it easier to use the program e.g. File, Edit, View. • Modem: A communications device that converts a computer’s digital signals to analog signals so they can be transmitted over standard telephone lines. • Netiquette: The etiquette rules of the Internet. • Network: Two or more computers connected together for the sharing of resources such as printers and drives. • Newsgroup: Discussion group or forum. • NOS: Network Operating System. • On-line help: Can be accessed to explain and help the user with any questions or problems relating to the application being used. • PC: Personal computer – CPU, keyboard, mouse, monitor. • Peripheral: Hardware device connected to a PC to enhance the capabilities of the machine. Examples include: printers, modems, scanners, CD-ROM. • Plug-ins: Software applications that expand a browser’s basic capabilities by becoming extensions of the browser itself. • Protocol: A set of rules by which data is transferred; a set of standards, rules or procedures. • Query: The process of asking a question of a database. Queries are used to view, change, and analyse data in different ways. • Remote printer: A printer attached to either another server or workstation on the network. 91

• Restore: The process where files are returned from a backup to their original condition and location. • Sharing: Configuration of peripherals attached to a network to allow permitted users to use the peripheral over the network. • Software Programs: a series of instructions that tell the computer hardware what to do; can also be the interface between the user and the computer system. • Search engine: A tool to help locate information on the Internet. • Software licence: The terms and conditions under which a piece of software may be used. • Spreadsheet: Computerised worksheet on which text, numbers and formulas can be entered for fast, accurate calculations. • SSID (Service Set Identifier): The SSID is a sequence of up to 32 letters or numbers that is the ID, or name, of a wireless local area network. • Stumbler: A software program that looks for wireless networks and determines whether the network is open or closed. A well-known example is NetStumbler. • TCP/IP (Transmission Control Protocol/Internet Protocol): The suite of programs that determine how information is sent over the Internet. • Template: A document that can be used as a pattern for creating other similar documents. • Toolbar: A toolbar contain buttons which can be clicked to provide a shortcut to tasks.

• Trojan horse: A destructive program that masquerades as a harmless application. While Trojan horses do not copy themselves, they can do just as much damage as viruses. • URL (Uniform Resource Locator): An address on the Internet. • USB (Universal Serial Bus): An external peripheral interface with a 12 Mb transfer rate. It supports up to 127 hot swappable, plug and play devices. It is expected to replace the standard serial and parallel ports. • Virus: A program that is loaded onto your computer without your knowledge and runs without your consent. Most viruses can also replicate themselves. • WWW (World Wide Web): Documents that reside on computers on the Internet. • Wardriving: term for finding and marking the locations and status of wireless networks. Wardrivers typically use software to determine whether the network is open or closed and a Global Position System device to record the location • WEP (Wired Equivalency Privacy): Security protocol for Wi-Fi networks. • Wi-Fi (Wireless Fidelity): Set of standards for wireless local area networks based on the specifications known as 802.11. It was originally developed for use by wireless devices and local networks but it is now used for Internet access as well. If you access the Internet wirelessly from your computer or personal digital assistant, chances are you are using a kind of Wi-Fi.

(Adapted from: CNN online and hsc.csu.edu)

92

Inside tourism

An introduction to tourism What is tourism? Careers in tourism Types of tourism Escorted tours City breaks Accommodation: hotels Other types of accommodation

Tourism correspondence Enquiries Replies to enquires Booking and confirmation Check-in and check-out Complaints

Transport Air travel Land transport Water travel

4

What is tourism? Tourism is a term that refers to the temporary movement of people to destinations outside their usual environment for personal or business purposes. Tourists usually stay in their chosen destination for a short period of time only, ranging from a few hours to a year. Over the last few decades, tourism has become a popular global activity. Developments in technology and transport and the creation of low cost airlines and more accessible airports have made many types of tourism more affordable. In 2013, international tourist arrivals worldwide reached a record of 1087 million. The World Tourism Organization (UNWTO) forecasts that international tourism will continue to grow at the average annual rate of 4%. Tourism is important for many countries. It generates a large amount of money in payment for goods and services. Tourism alone accounts for 30% of the world’s exports of services and it creates multiple opportunities for employment in the service sector of the economy. Service industries include transportation services, such as airlines, coaches and cruise ships; hospitality services, such as accommodation in hotels and resorts; and entertainment venues, such as amusement parks, shopping centres and theatres.

Types of tourism In 1994, the United Nations classified three forms of tourism. • Domestic tourism when someone travels to a different destination in their own country. • Inbound tourism when a non-resident person enters a country for tourism. • Outbound tourism when someone goes out of their own country and travels to another for tourism.

Inbound and Outbound tourism both describe types of international tourism.

TOURISM STATISTICS MOST-VISITED CITIES BY INTERNATIONAL TOURIST ARRIVALS

MOST-VISITED COUNTRIES BY INTERNATIONAL TOURIST ARRIVALS

Rank

City

Country

International tourist arrivals*

Rank

Country

International tourist arrivals*

1

London

Europe

18.69

1

France

84.7

2

Bangkok

16.42

2

United States

69.8

3

Paris

Europe

15.57

3

Spain

60.7

4

Singapore

Asia

12.47

4

China

55.7

5

Dubai

Asia

11.95

5

Italy

47.7

6

New York City

North America

11.81

6

Turkey

37.8

7

Istanbul

Europe

11.60

7

Germany

31.5

8

Kuala Lumpur

Asia

10.81

8

United Kingdom

31.2

9

Hong Kong

Asia

8.84

9

Russia

28.4

10

Seoul

Asia

8.63

10

Thailand

26.5

* millions 94

(Source: World Tourism Organization)

ACTIVITIES COMPREHENSION

1

2

Read the page and answer the questions. 1 What is tourism? 2 Why has tourism become a popular global activity? 3 How many tourists travelled around the world in 2013? 4 Why is tourism important for the economy of a country? 5 What forms of tourism were classified by the UN in 1994? 6 What is the difference between domestic tourism and international tourism? Copy and complete the table with the services mentioned in the text. Add more items to the list.

TOURIST SERVICE INDUSTRIES Transportation Hospitality Entertainment services services services

airlines, ........................... ........................... ............................ ............................ ........................... ........................... ............................ ........................... ........................... ............................ ........................... ...........................

3

Read page 94 and find out: 1 the source of the data 2 the most visited European countries 3 the most visited Asian cities 4 the number of tourists who visited China 5 the percentage of international tourists to the USA who visited New York.

4

Which cities do the photos on this page refer to? Photo 1

...............................................................

Photo 2

...............................................................

Photo 3

...............................................................

Photo 4

...............................................................

PRODUCTION

5

Work in pairs. Look at the tables on page 94. Ask and answer questions like these: Have you ever visited any of the countries/ cities listed in the tables? If so, which did you like best? Why? If not, which would you like to visit most? Why? 95

Careers in tourism The tourist industry can be divided into five main sectors. Within these sectors there are more than 400 different occupations. These include jobs that have direct contact with tourists, such as restaurant chefs, hotel receptionists and tour guides, but also positions in back up services such as marketing, accounting, human resources and other administrative areas.

RECREATION AND ENTERTAINMENT Recreation and entertainment is the second largest sector for employment, and the most diverse.Possible jobs include working in museums, tourist attractions, sports locations, theatres and music venues.

FOOD & BEVERAGE SERVICES Food and beverage services is the largest employment group of the five sectors. It accounts for nearly 50% of the total tourist workforce. This area offers opportunities for working in restaurants, cafés, takeaways, fast food outlets, pubs, etc. Positions include chefs and other kitchen staff, waiting staff and sommeliers (wine waiters).

ACCOMMODATION

TRANSPORT Transport is not just about taking people from one destination to another. It’s also about making the journey pleasurable and efficient, with good service and comfortable surroundings. Employers in this sector provide transport by air, land or water. This means there are many options for work. You could work for an airline, a cruise ship company, a ferry line, a railway or a bus tour company, for example. Working in the transport sector often offers the opportunity to travel while earning money.

Accommodation is one of the largest and fastest growing sectors in the tourist industry. It offers a wide variety of job opportunities in hotels, motels, resorts, campgrounds, bed & breakfasts, youth hostels, etc. Typical jobs include hotel managers, receptionists, porters and housekeeping staff.

TRAVEL SERVICES The travel services sector is very wide and varied. It includes services related to planning, packaging and booking travel products and administrative services for the tourist industry as a whole. People in this sector often work for travel companies or event planning organizations. It is a popular sector and can be very competitive, because there aren’t many employment opportunities. 96

AN INTRODUCTION TO TOURISM

4

ACTIVITIES COMPREHENSION

1

Read page 96 and find: 1 five sectors of the tourist industry 2 six types of accommodation 3 four jobs you can apply for in a hotel 4 five organizations you could work for in transport.

1) .............................................................. ‘People think I’m always travelling in my job, but that’s not really true. I often go to the same places and, even when I go somewhere new, I rarely have very much free time. I spend a lot of the day with tourists and my job is to help them get the most out of their holiday. It can be very tiring – I walk a lot, get on and off buses all day and spend a lot of time waiting for people! Even so, it’s a great job. You get to meet a lot of interesting people and I love seeing my country from a tourist’s point of view!’

3) ................................. ................................. ‘I’m the clients’ reference point during their stay at the hotel. I organize their checkin and check-out, deal with their day-to-day problems and give them information about the attractions and the facilities in the city. There’s also quite a bit of office work involved in the job. I think my job has a lot of responsibility. I’m the public face of the hotel and the person who greets new clients as they arrive. First impressions count a lot in this trade and I always try to make sure they’re positive!’

2

Listen to and read this page. Match people and jobs. Choose from: waiter • hotel receptionist • tour guide • air hostess • travel agent

2) ...................................................... ‘I’m the first person people come to see when they start planning their holiday. I help them choose the right package for their holiday or business needs. I couldn’t work without a computer and a telephone. I’m always talking to tour operators or booking flights on the Internet. You have to be organized and efficient to do my job. People trust you to book their holiday for them and the challenge is to make everything go as smoothly as possible.’

4) .............................................................. ‘At busy times my job can be very hectic. At any one time I may be taking an order at one table, checking whether another group is ready for their main course and collecting menus for a third group. Sometimes customers ask me for advice about the menu or want me to recommend a particular dish. That means I have to know about the ingredients and cooking methods. I always try to chat to the chef about new dishes so that I can describe the food as well as possible.’

5) .............................................................. ‘I travel a lot and I’m usually away from home for two or three nights a week. I don’t get to see very much of the places I visit, in fact I often just see the airport and sometimes I don’t even get off the plane! You have to be very patient and calm to do my job. Communication skills are very important and it helps if you can speak more than one language. Some people think that my job sounds exciting, but it isn’t really. It’s hard work but I enjoy it.’

PRODUCTION

3

Work in pairs. Ask and answer questions like these: Which of the jobs listed on this page would you like to do? Why? 97

REST

Types of tourism People travel for hundreds of different reasons. These include leisure, business and visiting family and friends. Here are some of the popular categories of tourism.

ADVENTURE STUDY HOLIDAYS RESPONSIBLE TRAVEL

Rest and recreation tourism Most people want to rest and relax on holiday. They often choose to stay in locations near the sea in countries with a warm climate. Some tourists are happy to stay in one place for the entire holiday but others want to see more of the country they are visiting and prefer sightseeing tours and packages. With the advent of low-cost flights, short city breaks have also become extremely popular.

Adventure tourism Some travellers are looking for adventure! They head for remote, exotic and possibly hostile places to explore different cultures and try extreme activities such as mountaineering, rafting, bungee jumping or trekking. Backpacking is a particular type of adventure holiday. A lot of young people in Britain take a break when they finish school and travel around the world for between six months and a year. They carry their possessions in a backpack, use cheap forms of transport and stay in hostels instead of hotels. It’s a real cultural learning experience!

Business tourism Travel and tourism is not just for leisure. A lot of people have to travel as part of their job. In today’s global world a lot of companies have branches of business in different countries and their employees may be required to travel from one branch to another. People also travel for business meetings, conferences and events. Business travel is often quite luxurious, with first class transport and accommodation in quality hotels. Some people regard it as a bonus.

Educational tourism Young people, in particular, often go abroad to learn a new skill or a new language. Cultural exchange trips or study holidays are the most popular forms of this type of tourism. Every summer about 600,000 foreign students travel to the UK to study English. Summer schools usually combine education with sightseeing and fun.

Ecotourism Ecotourism is defined as responsible travel to natural areas that conserves the environment and improves the well-being of local people. Eco-tourists want to enjoy and learn from the nature and culture they visit while maintaining a responsible attitude. This sector of tourism includes volunteer work, but also activities such as bird watching and plant observation.

98

AN INTRODUCTION TO TOURISM

4

ACTIVITIES COMPREHENSION

1

Read page 98 and list different reasons for travelling. For each reason write the type of tourism it refers to. Reasons for travelling

Type of tourism

to visit a country

recreation tourism

PRODUCTION

2

Look at the pictures and for each one write a caption with the type of tourism it relates to.

1

2

..............................................................................................

..............................................................................................

..............................................................................................

..............................................................................................

3

4

..............................................................................................

..............................................................................................

..............................................................................................

..............................................................................................

5

.............................................................................................. .............................................................................................. 99

Escorted tours Escorted tours are a form of tourism in which tourists are taken as a group to visit various locations and tourist attractions. A tour director or tour guide usually stays with the tourists and takes care of all the services from the beginning to the end of the tour. Tour packages usually include flights, hotels, transport, most meals and all sightseeing trips. Tourists normally travel in coaches from one location to the next and typically stay in each location for no more than one or two days.

Escorted tours Canada Maple Explorer from Toronto 9 Days/8 Nights Journey by coach to the land of maple trees to discover Canada’s historic heartland. A memorable trip at all times of the year but spectacular in the fall when the maple trees are turning red! TOUR CA20

Vacation features: 8 nights' accommodation in quality hotels All lunches and one evening dinner Niagara Falls Excursion Maid of the Mist Cruise (seasonal*)

Ottawa Nations Capital Tour Montreal City Tour Quebec City Tour Toronto City Tour

Price: From a minimum of $ 1,300 up to $ 2,300 per person, based on twin/double room accommodation. Hotel luggage handling and gratuities included. Flights extra: See page 21 for international flight connections and prices.

ACTIVITIES COMPREHENSION

1

100

Read the paragraph about escorted tours and correct these statements. 1 Escorted tours are private tours where people travel individually. 2 A tour guide based in a travel agency takes care of the tourists. 3 Tour packages do not usually include transportation. 4 On escorted tours tourists normally travel by train. 5 During escorted tours people visit one or two locations. 6 During escorted tours turist stay in each location many days.

2

Read the information on this page and on page 101 about the tour in Canada and find: 1 a kind of tree which is common in Canada 2 the name of Canada's tallest building 3 a place of natural beauty not far from Toronto 4 the river which flows through Quebec City 5 the name of a walled city in Canada 6 the place and date of the battle between the French and the British 7 the main language spoken in Montreal.

AN INTRODUCTION TO TOURISM

4

Maple Explorer from Toronto Itinerary

3

4

Days 1/2

After an overnight stay in the city, spend the morning exploring cosmopolitan Toronto. Rise to the top of Canada’s tallest free-standing building, the CN Tower (553.3m) for beautiful views of Toronto and Lake Ontario. In the afternoon, move on to one of the world’s great natural wonders, Niagara Falls. Enjoy close up views of the falls on the famous Maid of the Mist cruise.

Days 3/4

Say goodbye to Toronto and travel north along the shores of Lake Ontario to Canada’s capital city, Ottawa, famous for its stately boulevards, imposing buildings and beautiful parks. Visit the Parliament, the Royal Canadian Mint, City Hall and the National Art Gallery.

Days 5/6

Follow the St Lawrence River to Quebec City, the first French settlement in North America. The only walled city in Canada, Quebec has an old world charm and is reminiscent of a medieval European town. Walk around the town and admire the work of the local street artists or visit the Plains of Abraham in Battlefield Park, where a historic battle between the French and British decided the fate of Canada in 1759.

Days 7/8

End your tour in the city of Montreal, the second largest French speaking city in the world. Walk along the cobblestoned streets of Vieux Montreal and the Old Port or relax in the Place Jacques-Cartier in the heart of the city. Visit the magnificent Notre Dame Cathedral or rise to the top of the Tour Olympique, for breathtaking views of the city and its harbour.

C: How long does the tour last?

List the adjectives and phrases used to describe these cities in the brochure on this page. 1 Toronto

...................................................

2 Ottawa

...................................................

TA: .......................................................................... C: What cities does it visit? TA: .......................................................................... C: How long do you spend in each city?

3 Quebec City ...................................................

TA: ..........................................................................

4 Montreal

C: ........................................................................?

...................................................

Work in pairs. Use the information above to complete this dialogue. Then listen and check. C = Customer TA = Travel agent C: Excuse me! I’d like to visit Quebec. Is there an escorted package tour? TA: ..........................................................................

TA: From a minimum of $1,300 up to $2,300. C: Fine. Thank you. I’ll call you back.

PRODUCTION

5

Write a tourist itinerary for a five-day tour in your country. Use the itinerary for the tour in Canada as a model. 101

City breaks Cities offer culture, vibrancy and a wealth of activities and entertainment. They provide the perfect getaway for a long weekend or for a stop-over on a longer holiday.

www.airnewzealand.com

AIR NEW ZEALAND Flights • Holidays • Hotels • Cars • Special Deals • Help & Contact CITY BREAKS The great city escape starts here. Discover the urban chic of Auckland, Wellington's fabulous art galleries and museums, or venture to the grand city of Christchurch and enjoy the 'mainland' hospitality. Take a long weekend and catch-up with friends and family. Planning your complete city escape today is easy with Air New Zealand Holidays. Create your own experience now. Check out this month’s special deals and book your flight + hotel. Auckland - City of Sails AUCKLAND, in the North Island, is New Zealand’s largest and liveliest city. Like the majority of our cities it is located near the ocean. It sits on the isthmus between two harbours, the Waitamata and Manakau. Wellington - Cultural & Political Capital Wellington, at the bottom of the North Island is New Zealand's political and cultural capital. A compact downtown makes the city easy to navigate on foot and the excellent selection of museums, galleries, boutique stores and cafes are sure to please. Christchurch - the garden city Christchurch is the largest city on the South Island. Known as the Garden City it has a relaxed charm and is often referred to as being the most English City outside of England. For detailed information and booking forms CLICK HERE.

102

AN INTRODUCTION TO TOURISM

4

Christchurch The Garden City hristchurch is a charming city located on the east coast of New Zealand’s South Island. The city was built by British settlers at the end of the 19th century and it retains a distinctly English character. The settlers, known as the Canterbury Pilgrims, wanted to create a city around a central cathedral and college, based on the model of Christ Church college in Oxford, England. They decided on the name ‘Christchurch’ before they had even arrived on the island! The atmosphere in Christchurch is reminiscent of the English university cities of Oxford and Cambridge. A tree-lined river, the River Avon, runs through the centre and there are numerous parks, gardens and elegant buildings. Unfortunately, a lot of the buildings in the city centre, including the neo-Gothic cathedral, were damaged or destroyed by a devastating earthquake in 2011. Since then the City Council has started a major rebuilding project to repair buildings, improve public spaces and entice more tourists to visit. A new ‘temporary’ cathedral with an innovative design has been constructed near the site of the original cathedral. It is made partly of cardboard and it has a plastic roof. The architect predicts that it will stand for at least 50 years.

C

Christchurch NZ Population: 350,000 (the second biggest city in NZ)

ACTIVITIES 5 Which is the political and cultural capital of New Zealand?

WARM UP

1

Look at the photos of Christchurch in New Zealand. What English city does it remind you of?

COMPREHENSION

2

Read the web page and answer the questions. 1 What airline is offering the city breaks? 2 Which cities in New Zealand does it suggest that tourists visit? 3 Which is New Zealand’s largest city? 4 Which is known as the Garden City?

3

These statements about Christchurch are all incorrect. Read the text and correct them. 1 Christchurch is on the northern tip of the South Island. 2 It is the largest city in New Zealand. 3 It was created by the Maori people. 4 It is reminiscent of London. 5 The cathedral is on the outskirts of the city. 6 Tourists can hire canoes for a ride along the River Avon. 103

Accommodation: hotels Tourists who stay away from home for more than one day need accommodation. Tourist accommodation ranges from luxury hotels to small tents. The choice of accommodation depends on the type of holiday, the location, the tourist’s preferences and the budget available. The standard of hotels varies widely. Most tour operators adopt a star rating system that ranks hotels according to quality. Hotels are generally ranked on a scale of 1 to 5, with 5 being the highest rating possible. ««««« A luxurious hotel, offering the highest degree of personal service. Extremely elegant and stylish rooms and suites with a lot of additional amenities, including computer points and WiFi connections, plasma TVs, jacuzzi baths, etc. Multiple restaurants onsite with extensive gourmet menus, room service 24 hours a day, fitness centre and valet parking. «««« Formal, large hotels with very good service. You can expect beautifully furnished rooms, restaurants, room service, valet parking, pool and fitness centre. Often close to shopping and entertainment centres. ««« Usually located near to a major road, business centre or shopping area, these hotels offer nice spacious rooms with good facilities. There should be an onsite restaurant, open for breakfast, lunch and dinner. Room service is available and there may be a small pool or fitness centre. «« These hotels are often part of a chain that offers consistent quality and limited amenities. The rooms are usually small, but they will have a phone, a TV and a small bathroom. There probably won’t be room service, but there may be a small restaurant on site. « A small hotel managed and operated by the owner. The atmosphere will be more personal and the accommodation basic. Restaurant service should be within walking distance, as well as nearby public transport.

ACTIVITIES COMPREHENSION

1

Read this page and answer the questions. 1 What factors influence the kind of accommodation chosen by tourists? 2 How is the standard of hotels usually classified? 3 What standard of hotels usually have a fitness centre? 4 What standard of hotels do not usually have a restaurant on site?

2

1

Which facilities do the symbols below refer to? Read this page and find out.

2

3

5

104

4

6

7

8

AN INTRODUCTION TO TOURISM

4

Staying in an ice hotel Ice hotels are temporary hotels that are reconstructed each year. They are usually open between December and April and are made of snow, sculpted blocks of ice, and, in some cases, steel framing. The Icehotel in the village of Jukkssjärvi, Sweden, was the world’s first ice hotel.

www.icehotel.com



BOOK ONLINE



Book your ICEHOTEL experience online, the next winter season starts December 7th. Please note that ICEHOTEL is under construction from December to January. During that period, each week a new area of the hotel will be available for visitors and guests.



PACKAGE DEALS AND COURSES



Experience the best of ICEHOTEL and Swedish Lapland with our tailor-made package deals.



ROOMS OF ICE AND SNOW



At ICEHOTEL in Jukkasjärvi you can choose between several different types of accommodation. The ideal is to combine one cold night in ICEHOTEL with several warm nights in our hotel rooms or hotel chalets.

3

When the temperature plummets toward -30 °C, it feels good to come in from the cold, especially after an entire day spent outdoors. ICEHOTEL offers several warm accommodation options. Warm winter clothes, gloves, shoes, breakfast buffet, morning sauna and admission to ICEHOTEL is always included in the price when you stay in one of our accommodations. The Ice rooms are both comfortable and spacious, furnished with ice furniture. When the outside temperature drops, you will be greeted by the warm atmosphere in ICEHOTEL. Inside ICEHOTEL, the temperature is never colder than -5 °C to -8 °C, regardless of how cold it may be outside. Snow Rooms are basic but comfortable with either two or four beds. Dress in warm thermal underwear, put on a hat and slip into the cozy sleeping bag. You are awakened in the morning with a cup of hot juice at your bedside.

Read the webpage and fill in the table. Name of hotel: ........................................................................ Type of hotel: ................................................ Location: town ....................................................................... country ........................................................... Open: from ............................................................................. to ..................................................................... Types of accommodation offered: ................................................................................................................. Facilities included in the price: .......................................................................................................................

PRODUCTION

4

Work in pairs. Mr Clark would like to spend three nights at the ICEHOTEL with his wife. He calls the hotel to get more information about the accommodation available, facilities included and clothes to wear. Look at the web page and write a telephone conversation. 105

Other types of accommodation Farm holidays Holiday accommodation on working farms has become very popular in Europe since the 1980s, particularly in Italy, where it is called ‘agriturismo’. Farm holidays are now growing in popularity in other parts of the world as well, especially Australia, Asia, and North America. Tourists can choose from a wide range of activities that include picking fruit and vegetables, riding horses, learning about honey, wine tasting and cheese making.

Bed and Breakfast accommodation (B&B) A B&B is usually a private home with fewer than 10 rooms available for guests. Sometimes pubs and small hotels also offer bed and breakfast deals. Guests pay for overnight accommodation with breakfast in the morning but no other meals.

Hostels Hostels provide cheap accommodation where guests can rent a bed in a dormitory and share a bathroom, lounge and sometimes kitchen. Private rooms may also be available. In the UK most hostels are part of the Hostelling Association, a non-profit organization encouraging outdoor activities and cultural exchange for young people. In Australia and New Zealand hostels for travelers are often called ‘backpackers’ hostels’.

Holiday houses / Cottages These are usually private homes that are rented by tourists for the duration of their holiday. They are fully furnished and often have a small garden and parking area. The tourist has a comfortable base and the freedom to come and go as he pleases.

Camper vans / Caravans Camper vans are types of vans that have been adapted to provide both transport and accommodation. They usually include a kitchen / lounge area, a sleeping area and a bathroom. A caravan is a vehicle which can be pulled by a car or van. It contains a living area, similar to a camper van. Tourists can rent these vehicles for their holiday period, although many people buy them and use them regularly.

106

AN INTRODUCTION TO TOURISM

4

www.splendorfarms.com

Splendor Farms Bed and Breakfast SUMMARY Splendor Farms is a charming 70-acre Louisiana farm located 1/4 mile from the scenic Bogue Chitto River. Only an hour from the New Orleans airport and the famous French Quarter, Splendor Farms is convenient to Interstates 10, 12, 55, & 59. We can accommodate you, your pets, and your children whether you’re looking for a place to spend the night, a weekend, or a week. Splendor Farms has plenty to offer nature and animal lovers and busy city folks looking for a place ‘to get away from it all.’ Guests at our Bed & Breakfast enjoy FREE horseback riding! Riding is included in all guest room rates. We ride over 1,000 acres through creeks and woods, across big fields, and around lakes. Deer, egrets, herons, and beautiful scenery are along every ride, even the occasional alligator and wild hog come across our rides! We also offer swimming, hiking, biking, fishing, canoeing, and more. You can collect your own eggs and pick vegetables from the garden or find a good book and relax in a hammock. Or why not play lawn games, such as badminton and volleyball? Once you come visit, you’ll want to come back again and again!

Features Food: Breakfast with gluten-free and vegetarian options. Other meals – self preparation. Amenities: Full kitchen, Linens provided, Laundry facilities, Internet, Stabling for horses, High chair, Private Bath, Free WiFi, Barbeque/Grill, Dog kennel, TV, Swimming Pool, DVD/VCR, Kitchenette, Refrigerator, Microwave

Activities & Animals Animals, chickens, sheep, goats, pigs, horses, cows, alpacas, ducks, rabbits, horseback riding, fishing, hiking, biking, gardening, planting / harvesting, bird watching, canoeing/ kayaking, rafting, swimming, volleyball, bonfire, riding lessons, yard games (croquet, bocce ball, badminton)

Allowed Children under 12, pets, horses, weddings, parties, corporate retreats, family reunions, special events

Website: Splendor Farms

ACTIVITIES READING COMPREHENSION

1

Read page 106 and find the type of accommodation which would best suit these people. 1 Two students who are visiting London on a small budget. 2 An employee who has to spend three months working in another part of the country. He would like a flexible base where his wife and family could visit at the weekends. 3 A couple with two children who want to

spend a holiday in the countryside and would like to try horse riding. 4 A family who want to travel across Spain on holiday. They want to take their bikes and plan their route as they travel.

PRODUCTION

2

Read the website and prepare a short talk (about three minutes) describing Splendor Farms to a client. Try to convince him or her to go there on holiday. 107

Enquiries Holidays and trips abroad can be customized to fit the needs of individual tourists. When this is the case, an enquiry is usually sent to a tour company to ask for information and price quotes regarding the proposed tour. The enquiry can be sent by the tourist directly to the tour company or via a travel agency.

From: Gian Marco Bondone Sent: December 27, 2015 11:25 AM To: [email protected] Subject: Customized Tour Dear Sir / Madam, We would be grateful if you could send us a full quotation for two people for the following tour from Bangkok: Day 1 Bangkok – Khorat Day 2 Khorat – Phimai – Khon Kaen Day 3 Khon Kaen – Baan Chiang – Vientiane Day 4 Vientiane Triangle) Day 5 Vientiane – Phonsavan Day 6 Phonsovan – Plain of Jars Day 7 Phonsovan - Luang Prabang

Day 8 Luang Prabang Day 9 Luang Prabang – Pakbeng Day 10 Pakbeng – Chiang Rai Day 11 Chiang Rai (Golden Day 12 Chiang Rai – Chiang Mai Day 13 Chiang Mai Day 14 Chiang Mai - Bangkok

We plan to arrive in Bangkok on 4th February, 2013 and to stay for 15 nights. Our proposed departure date is 19th February. In terms of accommodation, we would like to stay in 5 star hotels, where possible. We would also require the use of a private car and English-speaking guides to accompany us throughout the tour. We look forward to a prompt reply so that we can finalize our holiday details as soon as possible. Yours faithfully, Gian Marco Bondone

ACTIVITIES COMPREHENSION

1

Read the e-mail enquiry and choose the correct alternatives. 1 The enquiry has been sent by a

a travel agency. b tourist. 2 It refers to a

a package tour. b customized tour.

3 The proposed tour is for

a 2 people.

b 14 people.

4 They are planning to stay in Asia for

a 14 108

b 15 nights.

5 Their holiday is planned for the month of

a December.

b February.

6 They would like to stay in

a budget.

b luxury hotels.

7 In Asia, they plan to travel by

a plane. 8 They require

b car. a English tour guides. b private tour guides.

TOURISM CORRESPONDENCE

4

Replies to enquiries From: Laos Travel - Tuan Phan [email protected] Sent: January 5th 2016 10.24am To: Gian Marco Bondone Subject: RE: Customized Tour: Gian Marco Bondone - 11:25, 27-12-2015 Dear Mr. Bondone, Thank you for your I

(1) of December 27th requesting a quote for your customized tour. (2) for this late reply but I have been out of the office on a business trip.

Our full quotes and details are outlined in the attached

(3). The quote covers:

- Itinerary: Bangkok, Khon Kaen, Vientiane, Phonsavan, Luang Prabang, Pakbeng, Chiang Rai, Chiang Mai, Bangkok (plus all stops and excursions listed in your email.) (4): For your comfort we have selected 5 star hotels. They are centrally located and all within walking distance of good restaurants, shops and other facilities. (5) will accompany you - Transportation/guide: A private car and English-speaking throughout your tour. (6), we would require a 20% deposit, payable through our If you wish to confirm the secure online payment scheme. The balance must be settled at least one week (7 days) before your (7) date. You will need a visa to enter Laos, but this can be obtained on your arrival. You should bring a 3x4cm (8) of yourself and 30 USD to cover the cost. I hope our customˉdesigned proposal matches your interests. Should you need to revise any details of the (9), please feel free to let me know, and I will be more than happy to assist you. Otherwise, please confirm the above travel plan so that I may go ahead with all the necessary reservations. (10). Thank you again for choosing our I am looking forward to hearing from you soon. Truly yours, Tuan Phan (Mr.) Travel Consultant LAOS TRAVEL Suite 707 - Thang Long Building 115 Le Duan Street - Hanoi - Vietnam Email: [email protected]

ACTIVITIES VOCABULARY

1

Fill in the blanks in the e-mail above. Use these words. booking • services • file • photograph • guides • enquiry • tour • hotels • departure • apologize

COMPREHENSION

2

Read the enquiry on page 108 and the e-mail above. Find out: 1 if Laos Travel has sent all the information requested in the enquiry 2 what information is given in the e-mail regarding payment 3 how and when the visa for Laos can be obtained. 109

Booking and confirmation Booking can be made directly or through a travel agency or a hotel reservation operator, for example Expedia. Direct booking can be made by telephone or via Internet. This enables instant booking and confirmation of accommodation.

www.expedia.com

BOOKING YOUR STAY ...with instant booking confirmation

YOU ARE BOOKING Premier room (King)

Total of 1 night accommodation offer details and conditions

AT Banyan Tree Bangkok

Rate plan: Eternal Summer Escape

Check-in: 4th February 2015

Daily rate: Thai Baht (THB) 4,725.00

Check-out: 5th February 2015

1 How many rooms and guests?

3

For each room: Rates are for a maximum of 2 persons excluding breakfast. Additional guests may be charged extra, according to the hotel's policy, payable directly at the hotel.

Paying for your booking. Your details are secure

Number of rooms Room 1 Children

1

Number of adults

0

2

Bed Type Double (1 large bed)

Is extra bedding required ?

No

Credit card number American Express XXXXXXXXXXX3207 XX/XX Name on card

Gian Marco Bondone

Card expiry date

April 2017

Credit card security code

765

Receive special offers, limited-time deals and bonuses from the Asia travel specialists.

2 Contact information

By clicking BOOK NOW you agree

Who do we send a booking confirmation and receipt to? See our privacy policy

with our terms and conditions and the offer details and conditions

BOOK NOW First name Gian Marco

Last name Bondone

Email address [email protected]   Contact phone # 0039011674321    Country of residence Italy Estimated arrival time 15.00 on 4th February Would you like to see Airport Transfer Options?

✓ No

110

Yes

TOURISM CORRESPONDENCE

4

www.banyantreehotel.com

Reservation number: Accomodation: Accommodation type: Number of rooms: Number of people. Payment method: Rate plan: Daily rate: Travel information: Departure flight / time:

1723004 Arrival date 4th February 2015 Departure date 5th February 2015 Premier room (King) 1 2 American Express XXXXXXXXXXX3207 XX/XX Eternal Summer Escape Thai Baht (THB) 4,725.00 Arrival flight time: Emirates Airline EK 418 15.00 Please advise us of your departure date

Terms and condiTions • • • •

Rates are subject to 10% service charge and 7% Prevailing Government Tax. Check in time is 14.00 pm and check out time is 12.30pm. Late check out after 18.00pm will be charged 100% of best available daily rate. In the event of no show, late cancellation or early departure, the total rate of the confirmed room shall be charged for the entire period booked. • Extra person per room charge is THB 2,800.00 per night, subject to 10% service charge and 7% Prevailing Government Tax. • Only one extra person is allowed per room. • No pets are allowed.

child policy • One child below the age of 12, who stays with parents in a room or suite, will stay free of charge. • Two children below the age of 12, who stay with parents in a two bedroom suite, will stay free of charge. • Extra beds for children are subject to availability.

oTher informaTion • Airport transfer is available at THB 2,700.00 per car per way (Mercedes S Class). Request must be received by the hotel at least 24 hours prior to the arrival date. We look forward to receiving you at the Banyan Tree Bangkok. Please do not hesitate to contact us at +66 2 679 5389 or email to reservations – [email protected] if you require any further assistance or information. With kind regards The Banyan Tree

ACTIVITIES 1

Read pages 110 and 111 and answer the questions. 1 When is Mr Bondone planning to arrive 4 in Bangkok? 2 How is he travelling to Bangkok? 5 3 Is he travelling with children? 6

What kind of accommodation has he booked? How much does it cost? What method of payment does he use? 111

Check-in and check-out ACTIVITIES 1

Two guests have just arrived at the Banyan Tree Hotel in Bangkok. They would like to check in. Listen and complete the conversation. Receptionist:

Good morning, can I help you?

Client:

Yes, please. We have a ........................................... (1) in the name of Gian Marco Bondone.

Receptionist:

Yes, here it is. How long will you be staying?

Client:

We reserved the room for ........................................... (2) night. Would it be a problem if we added an ........................................... (3) night?

Receptionist:

No, that’s no problem at all. Could you fill in this ............................ ........................... (4), please?

Client:

Of course. Can I have a pen, please?

Receptionist:

Yes, here you are. Have you got any identification?

Client:

Yes. We’ve got our ........................................... (5)

Receptionist:

Thank you. I’ll prepare your .................................. .................................. (6). How many keys do you need?

2

112

Client:

........................................... (7) will be enough, thanks. Here’s the form.

Receptionist:

Thank you. How would you like to pay for the extra night?

Client:

I’ll pay by credit card.

Receptionist:

OK. I just need to take your ........................................... (8) number, then.

Client:

Yes, of course. Here it is.

Receptionist:

Is this the card you used for the booking?

Client:

Yes, it is.

Receptionist:

Fine. Here’s your key. Your room number is ........................................... (9). That’s on the ........................................... (10) floor. The lift is over there. Do you need any help with your ........................................... (11)?

Client:

Yes, please.

Receptionist:

The ........................................... (12) will take your bags up right away. Have a pleasant stay.

Client:

Thank you.

Mr Bondone is checking out. Number his conversation then listen and check. Mr Bondone: Yes, we had a bottle of white wine. Receptionist: Yes, certainly, we can do that. I hope you enjoyed your stay with us. Mr Bondone: Hello. We’d like to check out now, please. Receptionist: You’re very welcome. Goodbye. Mr Bondone: Yes, it was very nice. Thank you. Receptionist: Ok. That’s fine. Did you take anything from the mini-bar in your room? Mr Bondone: Thank you. Can you deduct that directly from my credit card account, please? Receptionist: Thank you. Now, you have already settled the account for your room. Here is your bill for the use of the phone and the mini-bar.

TOURISM CORRESPONDENCE

4

Complaints A letter of complaint Complaints are often made when a customer is not satisfied with the accommodation or services they received. These can be made in person during the stay or in writing at a later date.

CIS Travel Agency 125 High Street Edinburgh

8 George Street Edinburgh 10th July 20...

Dear Sir / Madam I am writing to complain about the accommodation I booked through your travel agency. We stayed at the Hillsbury Hotel in London from 1st to the 6th July and I am afraid that we did not enjoy our visit at all. Firstly the location of our hotel was extremely inconvenient. It was a long way from the city centre and from any bus stop, although you had told us that it was in a central position and very near to an underground station. Secondly, the hotel was three star and not four star as we had requested. In addition we were given a very small room at the back of the building, while we had specifically booked a room with a river view and paid a supplement. We are not at all satisfied with the service provided by your agency and would like a refund of our money. We look forward to a prompt reply. Yours faithfully, Michael Winterstone

ACTIVITIES 1

Read the letter of complaint and complete the form below. Customer complaint

2

Customer name .....................................................

Reasons for complaint ..........................................

Stayed at .................................................................

....................................................................................

From .........................................................................

....................................................................................

to ...............................................................................

Action requested ...................................................

You work for CIS Travel agency. Write a reply to Michael Winterstone’s complaint on this page. - Acknowledge the complaint. - Give an explanation. (unfortunately, due to human error, a 3 star instead of 4 star hotel was booked) - Refer to your proposed adjustment (you are unable to refund the money but you enclose a voucher for two people for a weekend break in one of the hotels in your city break brochure) - Apologize and assure better service in the future. 113

Air travel Air travel can refer to transport by plane, helicopter, glider or any other vehicle that sustains flight. The most common form of air travel in tourism, however, is transport by plane. Airlines offer both domestic and international flights. Domestic flights connect two places in the same country, for example Turin and Naples, whereas international flights connect a departure point in one country with a destination in a different country. Tickets on a plane usually have different prices according to the standard of services offered. They are often classified into three main classes. Economy is the most common class of air travel. A typical Boeing 747 has 358 seats and 265 of them are in the economy section of the plane. Economy-class seats are usually the least expensive seats on the plane and they are a popular choice for a lot of tourists who travel for pleasure rather than for work. Passengers book a standard reclining seat but there are few other services. Availability of food depends on the airline. Low-cost carriers usually charge for food and drinks on flights. In addition, many low cost airlines charge economy passengers an extra fee for airport check-in and checked bags.

Business cabin of a boeing 787 Dreamliner.

Business or Club Class offers a slightly higher standard of services, including a higher quality of seating and food. In-flight meals and drinks are always complimentary. Some airlines also offer additional ground services, for example separate lounges for business class travelers. First Class is a luxury travel class with a limited number (rarely more than 15 - 20) of seats located at the front of the aircraft. They are extremely spacious and comfortable. First-class passengers usually have a fully reclining seat, a work station and a private television. During the flight gourmet meals are served with a wide selection of drinks. On the ground, passengers usually have a special check-in zone at the airport. Many airlines operate private VIP lounges and offer international first class passengers complimentary limousine rides to the airport. These passengers can often board the aircraft before other passengers.

ACTIVITIES 1

Read this page and write definitions for: • air travel • domestic flights • international flights

2 114

Compare the three different classes offered on board planes. Write a list of differences.

TRANSPORT

4

Air travel procedures There are a series of rules and regulations that passengers must follow when travelling by plane. 1

Passengers must check-in before the flight.

Check-in is a process where passengers confirm their presence on a flight and receive a boarding pass.

2 Passengers must pass a security area before going into the departure lounge.

Passengers can check-in online, via a mobile phone or at the airport.

Airport security serves to protect the airport and country from any threatening events and to ensure the safety of passengers during the flight.

3 Passengers must wait at the appropriate gate to board their plane. Boarding for each flight takes place at a particular area of the airport. These areas are called gates. Passengers must be at the appropriate gate at least 30 minutes before the flight is due to depart. Late arrivals may not be permitted to board the plane.

5 Passengers arriving on international flights must pass through a customs border control after leaving the plane. At the border control people entering the country must present their travel documents, including their passports or other ID and any necessary entry VISAs.

3

4 During the flight passengers: • must turn off mobile phones and other electronic equipment during take-off • cannot usually use their mobile phones during the flight • mustn’t smoke • must wear their seatbelts for take-off and landing and when the seat belt sign is alight.

6 After collecting their luggage and before leaving the airport, passengers must pass through a final customs check point. The final border control serves to prevent the smuggling of illegal goods, collect tax on goods and to control the spread of human or animal diseases. The degree of strictness of the border control depends on the country and the border concerned.

Match the photos to the different steps illustrated above.

115

Land transport On land people can travel in wide variety of ways although the most common methods in tourism are by car, by train or by coach. Trains are widely used for domestic and international tourism. Tourists choose to travel by train for many reasons. These include: • They have easy access – in Europe nearly every city has a station. They are usually located in the city centre with easy access to and from tourist attractions, hotels, restaurants and shops. • Travelling by train is practical and simple – you don’t have to arrive at a station hours before your train leaves and you don’t have to go through a complicated check-in procedure. In addition trains to specific locations depart several times a day, so you have the freedom to decide when you are going to travel. • They are comfortable and relaxing – on a train you can relax, enjoy the view, read a good book, have something to eat and drink, chat to other passengers or get up and go for a walk. • They are safe – trains are one of the safest forms of land travel. • They are environmentally friendly – trains pollute the environment less than other forms of transport. The average CO2 emission on a train trip in Europe, for example, is three times less per person than travelling the same trip by car and four times less than travelling by plane. In the past train travel was one of the only methods of transport for tourists and some trains became particularly popular and famous. An example is The Orient Express. The Orient Express ran from 1883 to 2009. It’s original route was from Paris to Istanbul, although the route changed several times over the years. It ceased to operate on 14th December 2009, however a private service, run by Orient-Express Hotels Ltd., continues to transport tourists from London to Venice and other destinations in Europe. Coaches are a popular form of transport for tourists particularly those travelling on a package tour, where they provide a door to door service. They are also used as the main form of transport in countries which do not have an extensive rail service. Although transport by coach is often seen as a cheap alternative to rail travel, modern coaches are extremely comfortable and offer a variety of amenities. These include reclining seats, overhead luggage compartments, TV screens, toilets and drink stations.

ACTIVITIES COMPREHENSION

1

116

Read this page and correct the statements below. 1 Trains are only used in domestic transport. 2 Stations in European cities are usually located on the outskirts of main cities. 3 Travelling by train can be quite dangerous. 4 Trains pollute the environment more than cars. 5 Travelling by coach is more expensive than travelling by train.

2

Read page 117 and answer the questions. 1 What sort of train is the Royal Scotsman? 2 What company is it run by? 3 How long does the journey last? 4 Where does it start? 5 What cities are visited? 6 Where do the tourists stay during the journey? 7 What sort of accommodation is offered? 8 Are sightseeing tours included in the itinerary?

TRANSPORT

4

A CLASSIC TRAIN JOURNEY Four Nights on board The Royal Scotsman A luxury private train run by Orient-Express Hotels Ltd.

Day 1

Heading to the Highlands

The train sets off from Edinburgh in the early afternoon and travels through the breathtaking Scottish countryside. It continues north, crossing the Firth of Forth via the magnificent Forth Railway Bridge, through Fife. Enjoy a leisurely afternoon tea as you pass Arbroath, Montrose and Aberdeen and an informal dinner when you reach Keith.

Day 2

Up for a Wee Dram

Breakfast is served as the train leaves Keith and travels through the Highlands' capital, Inverness. Disembark at Muir of Ord for a whiskey tasting at Glen Ord Distillery. Later, enjoy a delicious lunch as the train heads towards Kyle of Lochalsh. Alight in Plockton where you may choose to take a boat trip to see wild seals or enjoy a wee dram in the Plockton Hotel. After a formal dinner on board, coffee is served in the Observation Car as musicians strike up Scottish tunes.

Day 3

The Highlander Experience

Day 4

Out, About and Action-Packed

The day begins with a visit to the stunning Rothiemurchus Estate, where fishing, clay-pigeon shooting or a tour of the estate can be enjoyed. Lunch is served on board during the journey south through Blair Atholl and Pitlochry. Disembark at Dunkeld for a visit to the charming Glamis Castle. After rejoining the train in Perth, relax and enjoy an informal dinner.

Day 5

On to Edinburgh

After breakfast the train heads back to Edinburgh and the end of your adventure. This itinerary includes • All table d’hôte meals • All alcoholic and other beverages • All sightseeing excursions as shown on the itinerary • Accommodation on board based on two people sharing a twin compartment or one person in a single

After breakfast you can choose to visit the iconic Eilean Donan Castle before the train heads north to Inverness. Then continue south to Carrbridge where you can disembark and explore the romantic Ballindalloch Castle. The night is spent on board at Boat of Garten on the private Strathspey Railway. After a formal dinner, our Highlander regales guests with tales and weaponry displays.

117

Water travel Holiday cruises became popular from the 1980s onwards. Today they are a major part of the tourist industry, with over 19 million passengers in 2011. Cruise ships are organized like floating hotels and entertainment centres. The facilities on board include different types of shops, fitness centres, gyms, libraries, theatres, cinemas, indoor and/or outdoor swimming pools and restaurants. Some ships also have bowling alleys, ice skating rinks, rock climbing walls, miniature golf courses, video arcades, basketball and tennis courts. In general, passengers travelling on a cruise pay a base fare that includes accommodation, room service, unlimited meals, access to shows, and use of pool and gym facilities. There are usually extra charges for excursions on land, alcohol and soft drinks, Internet and Wi-Fi access, and specialty restaurants. In Europe most cruise ships travel around the Mediterranean. Italy is one of the prime destinations for cruises and the most visited ports in the Mediterranean are Barcelona and Palma (Spain), Civitavecchia and Venice (Italy). River cruises are also very popular because they are relaxing and interesting to travellers who like to see the changing countryside. Since cities and towns often grew up around rivers, river cruise ships frequently dock in the centre of cities and towns.

ACTIVITIES COMPREHENSION

1

Read this page and answer the questions. 1 Are cruises a popular form of tourism? 2 What facilities can tourists find on board? 3 What services does a base fare include? 4 What extra charges do passengers have to pay for? 5 What European countries are popular cruise destinations? 6 What sort of travellers are interested in river cruises?

2

Copy and complete the table with a list of words or phrases from pages 118 and 119.

3

Entertainment centres

Sports facilities

Types of excursion

shopping areas

bowling alley

walking tour

Read page 119 and find out: 1 the city the cruise starts from and its nickname

5

where the tourists disembark from the first ship

2 two French cities founded by the Romans

6

how they travel to Paris and a city they visit along the way

7

how many nights they spend on the second ship

8

how tourists travel back to their home destination.

3 a French city which is 2000 years old 4 the name of a famous French wine and where you can taste it

PRODUCTION

4 118

Look at the map on page 119 and write a summary of the cruise itinerary. Include important information on the places visited.

TRANSPORT

4

THE BEST OF FRANCE Juno Beach Caudebec Les Andelys Gold Beach Rouen Giverny Conflans Omaha Beach Paris Vernon Seine

Day 1 Avignon

Arrive in Marseille and transfer to your ship, docked in Avignon. After boarding, enjoy a stroll through Avignon, nicknamed “City of Popes” because it was home to seven popes from 1309 to 1377.

N o r mand y

FRANCE

mbine two France cruises a once-in-a-lifetime vacation Cruise Motorcoach

Dijon

Chalon-sur-Saône

Burgund y Tournon Viviers

Beaune Saône Lyon Rhône Vienne Rhône P r o v e n c e

Avignon Monaco Arles Nice Cannes Marseille

Day 2 Arles

Take a morning walking tour of Arles with its diverse architectural highlights. Arles is the site of some impressive Roman ruins and Romanesque monuments. Return aboard for lunch followed by an afternoon on your own to explore. Dinner is served as you depart.

Day 3 Viviers & Tournon

Awake in Viviers and take a morning stroll through the beautiful town with its medieval and Renaissance buildings. Lunch aboard and cruise through the afternoon. Arrive in the early evening at Tournon. Learn about the region’s winemaking traditions and taste some famous regional red wines before dinner on board. Take an evening stroll before retiring for the evening.

Day 4 Vienne & Lyon

This morning, take a walking tour of Vienne, a beautiful town with an ancient Roman past. Visit the Temple of Augustus & Livia, the Roman amphitheatre, and the Gothic Cathedral of St. Maurice. Return to your ship for lunch and an afternoon departure. Later, this afternoon, arrive in Lyon. Enjoy free time to explore this remarkable 2,000-year-old city in the heart of France. Dinner is served aboard.

Day 5 Lyon

After breakfast, tour Lyon, a UNESCO World Heritage Site. Begin with a drive to the top of Fourvière Hill for amazing views of the city. Continue with a guided visit to the Basilica of Notre Dame and drive past the magnificent St. Jean Cathedral and the Palace of Justice. Then take a walking tour through the cobbled streets of Vieux Lyon (Old Town). Return to your ship for an afternoon departure.

Day 6 Burgundy Wine Tour & Beaune

After breakfast, take a scenic drive along France’s Burgundy wine route. Arrive in Beaune, wine capital of Burgundy. Learn about local viticulture and enjoy a wine tasting at one of Beaune’s famous cellars. Return to your ship for lunch. Enjoy free time to explore this quaint town on the scenic Saône River.

Day 7 Chalon-sur-Saône & Paris

After breakfast, disembark and enjoy a leisurely ride by coach through the countryside of east central France from Chalon-sur-Saône to Paris. Stop in picturesque Dijon, with its many churches and its museums. Continue to Paris to board your second ship, stopping for lunch along the way. A welcome dinner is served on board.

Day 8 Paris

Wake up to a full day in Paris. After breakfast, embark on a half-day tour of this beautiful city and take in its most remarkable sights, including the famous Eiffel Tower. Return aboard for lunch. Afternoon is free and dinner is served aboard.

Day 9 Departure

After breakfast, disembark and proceed to Paris airport for your return flight.

119

Work-related learning

5

Alternanza scuola-lavoro Introduction: Alternanza scuola-lavoro & work skills Globalisation Airbnb: changing the way people travel Technology Successful Apps Responsible business Subaru: how green can a car manufacturer be? Global issues H&M: can fast fashion be ethical? Business background The palm oil industry The business world Crowdfunding Marketing Travel marketing & social media trends Enquiring Coffee: an Italian tradition Ordering Waitrose: cutting packaging in half Delivering goods Hanjin Shipping The economic environment The EU: better in or out? The financial world HSBC & social responsibility

Work skills & problem solving Commercial awareness Verbal and written communication Teamwork Analysing and investigating Negotiating Planning and organisation Leadership Motivation Working under pressure

121

Alternanza scuola-lavoro Introduzione Che cos’è l’alternanza scuola-lavoro? L’alternanza scuola-lavoro è un modello didattico che serve per fornire agli studenti, oltre alle conoscenze di base, quelle competenze necessarie ad inserirsi nel mondo del lavoro. Dà ad ognuno di loro la possibilità di alternare le ore di studio a scuola, in un contesto accademico, a ore trascorse all’interno di un’azienda sia in Italia che all’estero. Questo contatto con la vita lavorativa reale, fuori dalla scuola, consente anche la trasformazione dei concetti di apprendimento, spesso astratti, in qualcosa di più concreto e permanente. Secondo il MIUR: “L’alternanza scuola-lavoro è un percorso formativo che: potenzia l’autonomia scolastica; qualifica l’offerta formativa; esalta la flessibilità; risponde ai bisogni diversi degli alunni; agisce per la forte valenza orientativa, come mezzo di contrasto alla dispersione scolastica. […] L’alternanza scuola-lavoro consiste nella realizzazione di percorsi progettati, attuati, verificati e valutati, sotto la responsabilità dell’istituzione scolastica o formativa, sulla base di apposite convenzioni con le imprese, o con le rispettive associazioni di rappresentanza, o con le Camere di Commercio, industria, artigianato e agricoltura, o con gli enti pubblici e privati, ivi inclusi quelli del terzo settore, disponibili ad accogliere gli studenti per periodi di apprendimento in situazione lavorativa, che non costituiscono rapporto individuale di lavoro (D.Lgs. n. 77/ 2005).”

Chi partecipa al progetto alternanza scuola-lavoro? Con la Legge 107/2015, l’alternanza scuola-lavoro è diventata obbligatoria per tutti i studenti nella scuola secondaria di 2° grado, sia nei licei, sia nei tecnici e professionali. Questa esperienza serve anche per aiutare i ragazzi ad orientarsi nelle scelte che dovranno fare una volta terminato il percorso di studio. L’alternanza scuola-lavoro è fatta di attività a scuola come anche nel mondo del lavoro. Ci sono incontri formativi con esperti esterni, orientamento in preparazione all’attività di stage e formazione in aula svolta dagli insegnanti incaricati del rapporto con le aziende. Per conoscere quali aziende sono disponibili a partecipare ai progetti di alternanza scuola-lavoro bisogna consultare il Registro nazionale per l’alternanza scuola-lavoro presso le Camere di Commercio.

122

WORK-RELATED LEARNING

5

Come viene valutata l’alternanza scuola-lavoro? Alla fine del percorso alternanza scuola-lavoro è prevista una valutazione, sia da parte della scuola che da parte dell’azienda, la quale certifica le competenze acquisite e rilascia un attestato di frequenza e crediti che servono ai fini della prosecuzione del percorso scolastico. Oltre alla valutazione delle competenze attese al termine del percorso, la valutazione può comprendere anche l’accertamento delle competenze in ingresso la programmazione degli strumenti e azioni di osservazione e la verifica dei risultati conseguiti nelle fasi intermedie.

Business Plan e l’alternanza scuola-lavoro Tramite gli argomenti trattati e le attività presenti in questa sezione di Work-related working, Business Plan offre agli studenti l’occasione per prepararsi all’esperienza lavorativa, con studi interessanti e pertinenti e con l’opportunità di esercitare alcune delle abilità e delle competenze che serviranno sia nel mondo del lavoro che nella vita in generale. Questa sezione è suddivisa in due parti: • Alternanza scuola-lavoro. Gli studenti partono da un Case Study e, attraverso attività graduate che mirano a fissare il lessico di settore e a verificare la comprensione, vengono guidati verso una discussione di gruppo. Al termine di ogni Case Study viene proposta una situazione reale (Compito di realtà) che gli studenti sono invitati ad affrontare e a risolvere, con una presentazione finale tramite uno strumento digitale (PowerPoint, Word o altro). All’inizio di ogni Case Study compare un elenco delle Life Skills e Work Skills che saranno attivate: ciò rende lo studente più consapevole delle competenze che sta acquisendo. • Work skills. Ogni pagina di questa parte è dedicata a quelle competenze e abilità richieste dal mercato del lavoro. Si tratta di soft skills, ossia di competenze trasversali che integrano le competenze tecniche e settoriali e che sono molto apprezzate dalle aziende. Queste sono, per esempio: la capacità di analisi e di sintesi, fare squadra e lavorare in team, guidare un gruppo, sapere decidere e agire, ecc.

123

Alternanza scuola-lavoro GLOBALISATION

Life & Work Skills

CASE STUDY AIRBNB: CHANGING THE WAY PEOPLE TRAVEL

Life Skills Critical thinking Problem solving Interpersonal skills Effective communication

Work Skills Discussion skills Teamwork Organisational skills Time management

ACTIVITIES WARM UP

1

Work in pairs. Make a list of the different types of holiday accommodation available.

VOCABULARY

2

124

Read the text. Match the words in bold (1-8) with their definitions (A-H). 1 peer-to-peer 5 yurts 2 rent 6 lets 3 hosts 7 affordable 4 revenue 8 harassed A

income from business activities

B

amount of money you pay regularly so that you can use a house, etc.

C

cheap enough that people can buy it or pay it

D

equal participants who share information with each other

E

a rented house or a flat

F

people who have other people staying at their house

G

annoyed or worried by somebody saying or doing unpleasant things to them

H

a type of traditional tent

Airbnb is a peer-to-peer online marketplace that allows people to list their homes on the site and guests to rent them as holiday accommodation. Airbnb makes its money by charging a ‘service fee’ for each booking made through the site – 3% for hosts and between 6%-12% for guests. Airbnb currently has more than two million listings in over 191 countries and is predicting its annual revenue to grow to $10 billion by 2020. Guests can stay in a wide variety of properties including castles in Scotland, houseboats in Holland, treehouses in Costa Rica and even yurts in Mongolia! Airbnb was founded in August 2008 in San Francisco by Brian Chesky, Joe Gebbia and Nathan Blecharczyk. There was a shortage of traditional hotel accommodation in San Francisco so Chesky and Gebbia had the idea of renting their living room space as a bed and breakfast in order to make some money. The first three guests slept on air mattresses, hence the name ‘Air Bed and Breakfast’, later shortered to Airbnb!

Why is Airbnb so successful? Booking through Airbnb is usually much cheaper than staying in a hotel in the same area and it appeals to travellers who are looking to stay in a friendly, local environment. Airbnb is popular with homeowners who like to entertain and share information about where they live and, of course, it provides them with a source of extra income. Airbnb offers hosts free professional

WORK-RELATED LEARNING

5

ACTIVITIES COMPREHENSION

3

Answer the questions. 1 What four types of accommodation are mentioned in the text? 2 How does Airbnb make money? 3 Who founded Airbnb? 4 Why is it called Airbnb? 5 What type of people book accommodation through Airbnb? 6 Why is Airbnb popular with property owners? 7 What are the two benefits of using professional photographers? 8 What are the two benefits of asking guests and hosts to write reviews? 9 Why is Airbnb popular with property owners? 10 How are Airbnb dealing with safety and security issues?

GROUP DISCUSSION photography which improves the number of bookings and also allows Airbnb to verify the property address. Guests and hosts leave reviews for each other, which helps remove undesirable properties and badly behaved guests.

Why doesn’t everyone love Airbnb? In some areas, critics have blamed Airbnb for disrupting the local housing market by encouraging short term holiday lets which reduce the amount of affordable housing in the area. The Airbnb model is also threatening the traditional hotel industry. Hoteliers complain that Airbnb hosts often ignore rental regulations and avoid paying taxes, especially in cities like New York, and say Airbnb’s success will result in job losses in the hotel industry. There have also been several security and safety issues with reports of guests causing damage to property or where the guests themselves have been harassed or even attacked by hosts. These incidents have prompted Airbnb to offer insurance to homeowners and create safety standards and guidelines to help protect guests. In a relatively short time, Airbnb has grown dramatically from Chesky and Gebbia’s ‘living room bed and breakfast’ to be a truly global business valued at billions of dollars with offices all over the world. Despite the issues it is facing, the future continues to look bright for this highly successful company.

4

In small groups discuss the following questions. Then report back to the class. 1 Where do you stay when you go on holiday? 2 What is your impression of Airbnb? 3 Have you or your friends ever stayed in Airbnb accommodation? Why?/Why not?

PRODUCTION

5

Compito di realtà

In groups. Imagine you are working for a hotel in the area where you live. There has been a drop in the number of bookings recently and the owner is blaming it on the increase in the number of travellers using Airbnb. Prepare a report on how a traditional hotel could respond to the threat of Airbnb. Use the Internet to find out further information. Think about the following: • the type of clients the hotel is hoping to attract. • services or products the hotel could offer that Airbnb can’t. • any special offers or advertising which might help.

The report could be presented digitally (PowerPoint, Word etc.) in print or as a poster. 125

Alternanza scuola-lavoro CASE STUDY

TECHNOLOGY

SUCCESSFUL APPS

Life & Work Skills

Top Apps today There are hundreds of thousands of Apps available for your smartphone or tablet, but only a handful of these are actually used by millions of people across the world. A recent survey by Nielsen, a market research company, listed the most popular smartphone Apps in the USA. The results indicated that Google and Facebook dominate the mobile App space. Facebook’s App is the most popular with more than 126 million users and Facebook Messenger showed the greatest year-on-year increase at 31%. Google owns five out of the ten most frequently used Apps, including YouTube.

Life Skills Critical thinking Problem solving Interpersonal skills Effective communication

Work Skills Interpreting graphs Discussion skills Teamwork Organisational skills Time management Presentation skills

rank

App

year-on year % increase

no. of users

126,702,000

1 FACEBOOK

97,627,000

2 YOUTUBE 3 FACEBOOK MESSENGER 4 GOOGLE SEARCH

ACTIVITIES

7 GMAIL - EMAIL FROM GOOGLE

WARM UP

1

Which Apps do you use most frequently? In pairs. Make a list and compare. Do you use the same Apps or not?

VOCABULARY

2

126

Read the whole text. Find words and phrases in bold that mean the following. 1 competing companies 2 software that you can download to a device such as a smartphone or tablet 3 the way that somebody acts 4 intended to cheat somebody, usually in order to make money illegally 5 people who enter buildings illegally in order to steal 6 an official statement of the aims of a company or an organisation 7 something that everyone accepts or recognises 8 the position of something

8 INSTAGRAM 9 APPLE MUSIC 10 MAPS (APPLE)

31

95,041,000

3

87,782,000

6 GOOGLE MAPS

5

96,444,000 89,708,000

5 GOOGLE PLAY

8

75,105,000

7 8 4

55,413,000

23

54,550,000

26

46,406,000

16

Facebook: connecting (or taking over) the world Facebook is the most downloaded App of all time. It is actively used by over 1.2 billion people around the world, more than the whole population of China! Facebook’s mission statement is “to give people the power to share and make the world more open and connected” and it hasn’t stopped at the Facebook App! Over the past couple of years, the company has been busy buying other popular Apps to secure its domination of the market and to stay ahead of its rivals. In 2012 it bought Instagram, the online photosharing, video-sharing, and social networking service, for $1 billion. In 2014, Facebook also acquired WhatsApp, the online messaging service, for just over $19 billion. That may seem like a lot of money, but WhatsApp surpassed the

WORK-RELATED LEARNING

5

ACTIVITIES COMPREHENSION

3

Look at the graph and answer the questions. Then read the text Top Apps today and check your answers. 1 What does the graph illustrate? 2 Which two companies dominate the market? 3 Which App showed the greatest year-on-year increase in users?

4

Read the text Facebook: connecting (or taking over) the world. Are the following sentences true (T) or false (F)? Correct the false sentences. 1 Everyone in China uses Facebook. 2 More people use WhatsApp than Facebook. 3 Facebook knows a lot about people’s behaviour. 4 It’s a good idea to share personal information on Facebook. 5 Facebook has no privacy settings. 6 Facebook uses facial recognition.

1 billion user mark in 2016, making it the one of the most popular ways for people to exchange messages, make phone calls, send photos and swap videos. WhatsApp is used a lot across Europe and in developing markets like Brazil, India and Mexico but Facebook Messenger is still more popular in mature markets like the USA and Canada for the moment. Facebook knows everything about your behaviour, thanks to every status update and photo you’ve ever posted. For this reason, it’s important not to share personal information on there like your date of birth, telephone number or address which can be used for fraudulent purposes like identity theft. Facebook can also track where you are every minute of the day through its Location Services. However, posting when and where you are going on holiday or ‘checking in’ on Facebook when you’re away is not a good idea: thieves and burglars love to know when a house is going to be empty! Remember to restrict your privacy settings so that information you post is only shared among friends. Facebook uses artificial intelligence to personalise your newsfeed, identify you in photos and translate your posts. Facebook is the undisputed world leader among social networks, but is this a good thing? Who knows? One thing is certain, Facebook can help you connect to billions of people all over the world.

GROUP DISCUSSION

5

In small groups discuss the following questions. Then report back to the class. 1 Do you use Facebook, WhatsApp and Instagram? What is your opinion of them? 2 What are the advantages and disadvantages to customers of Facebook’s ownership of these Apps?

PRODUCTION

6

Compito di realtà

In groups. Imagine you are interns at an IT company. You have been asked to create a new App. Prepare to present your idea during a meeting with the company’s directors. Think about the following: • the name of your App • its purpose and target audience • what the icon design would look like The presentation may be done digitally (PowerPoint, Word, video etc.) or as a poster and/or as an oral presentation.

127

Alternanza scuola-lavoro RESPONSIBLE BUSINESS

Life & Work Skills

CASE STUDY SUBARU: HOW GREEN CAN A CAR MANUFACTURER BE?

Life Skills Creative thinking Interpersonal skills Problem solving Effective communication

Work Skills Discussion skills Teamwork Decision making Organisational skills Time management Presentation skills

ACTIVITIES WARM UP

1

How much waste do you produce each day? In pairs. Make a list of all the waste you produced yesterday.

VOCABULARY

2

Complete the definitions with the correct words from the text in bold. 1 .......................................... are the glass parts that fit into electric lamps that give light when switched on. 2 A .......................................... is a large company formed by joining together different firms. 3 A .......................................... is a factory or place where power is produced or an industrial process takes place. 4 .......................................... is an area of land where large amounts of waste material are buried under the earth. 5 The .......................................... is the part of a vehicle that produces power. 6 ......................................... is a strong, hard metal that is made of a mixture of iron and carbon.

128

Car manufacturers are not usually described as being environmentally friendly, given the pollution caused by their products, despite their attempts to greenwash people into believing that they are. Greenwashing is when a company claims to be green through its advertising and marketing but actually does very little to minimise its environmental impact. Adverts that talk about “clean diesel” and cars that are “Earth friendly” are misleading, as there is nothing clean about engines that often pollute over the legal limit. However, one car manufacturer in particular has been very successful at reducing the amount of pollution when it comes to building the cars. Subaru of America is the United States-based subsidiary of Fuji Heavy Industries, a major Japanese transportation conglomerate. It is responsible for the distribution, marketing, sales and service of Subaru vehicles in the USA. In 2004, Subaru became the first auto manufacturer in the USA to reach zero-landfill status. What does this mean? All of the manufacturing waste produced is reused, recycled or turned into electricity.

WORK-RELATED LEARNING Car manufacturing produces lots of different types of waste including steel, wood, plastic, paint, and Polystyrene. Steel was already being recycled so Subaru looked at the other waste materials and tried to reduce, reuse or recycle it, rather than rely on incineration - burning waste eliminates it from landfill but often results in severe air pollution.

ACTIVITIES COMPREHENSION

3

It is important to remember that zero-landfill in car manufacturing is only one part of the environmental issue. Cars, once in use, are still major contributors to air pollution and manufacturers need to improve clean vehicle and fuel technologies in order to become fully environmentally responsible. People can also help by driving less, walking, biking, carpooling or using public transportation whenever possible.

Answer the questions. 1 What is greenwashing? 2 Why are some car adverts misleading? 3 What does zero-landfill status mean? 4 What types of waste does car manufacturing produce?

To achieve this, Subaru adopted the Japanese business philosophy of ‘kaizen’, which meants is that all the employees, from the CEO to the assembly line workers, are involved in activities to continuously improve working practices. Employees came up with hundreds of ideas on how to reduce waste, ranging from recycling containers and using less oil to lubricate engine parts, to eliminating unnecessary cardboard and recycling florescent bulbs; they even recycle the canteen food waste into compost. The whole plant now produces less landfill waste in a year than a family of four does in one day! Today, Subaru is a world leader in teaching other companies how to achieve zero-landfill as well – a service it offers for free. Zero-landfill is not only good for the environment; it also saves the company a lot of money. Subaru estimates that although the cost of managing its zero-landfill program is very high, the company gains millions in financial benefits and, of course, great publicity as well!

5

5 Why is it better to avoid burning waste? 6 What does Subaru do with the waste it produces? 7 What is the Japanese business philosophy ‘kaizen’? 8 Name two of the ideas that employees suggested to reduce waste. 9 Why do you think Subaru wanted to reach zero-landfill status? 10 In your opinion, can car manufacturers be environmentally friendly? Why?/Why not?

GROUP DISCUSSION

4

In small groups discuss the following questions. Then report back to the class. 1 Look at the list of waste items from Exercise 1. Did you throw this waste in the rubbish bin or recycle it? 2 Could you recycle or reuse more of your waste? Why?/Why not?

PRODUCTION

5

Compito di realtà

In groups. Your task is to design a product made from school waste. Find out what waste your school produces. Research or innovate a way to use that waste product for another purpose. Use the internet to find out further information. Present your product to a group of colleagues. Include the following information: • the name of your product. • what it’s made from. • how it works and why you chose it. The presentation may be done digitally (PowerPoint, Word, video etc.) or as a poster and/or as an oral presentation.

129

Alternanza scuola-lavoro GLOBAL BUSINESS

Life & Work Skills

CASE STUDY H&M: CAN FAST FASHION BE ETHICAL?

Life Skills Creative thinking Interpersonal skills Problem solving Effective communication Empathy

Work Skills Discussion skills Teamwork Organisational skills Time management

ACTIVITIES WARM UP

1

Where do your clothes come from? In pairs. Look at the labels of the clothes you are wearing and make a list of the countries where they were made.

VOCABULARY

2

130

Read the text. Match the words in bold (1-10) with their definitions (A-J). 1 keep up with 2 shorten 3 flawed 4 fabrics 5 rife 6 underage 7 goal 8 fair 9 garment 10 stock A wool, cotton, silk, etc. B acceptable and appropriate to learn about or be aware of the news, C current events, fashion, etc. D something that is damaged or spoiled E available supply of something for use full of something bad or unpleasant F G done by people who are too young by law H something that you hope to achieve to make something shorter I J an item of clothing

Today people buy more clothes each year than in the past, but why? Clothes are cheaper than ever before, making it easy to keep up with ever-changing fashion trends at affordable prices. This “fast fashion” means high street brands compete by introducing more fashion lines per year at lower costs which puts pressure on suppliers to shorten production deadlines, cut costs and find cheaper sources of labour. The Swedish multinational company H&M, known for its fast fashion clothing, is the second largest clothing retailer in the world. It has been criticised in the past for not doing enough to protect workers in its factories. A 2014 report called Flawed fabrics by SOMO (Centre for Research on Multinational Corporations) and the ICN (India Committee of the Netherlands) highlighted the terrible working conditions in textile factories in India that produced fabrics used by several well-known brands, including H&M. The report showed that child labour, long working hours, unsafe conditions and low pay were rife.

WORK-RELATED LEARNING H&M has worked hard over recent years to ensure that its clothes are produced more ethically. It carries out regular checks to ensure there are no underage workers at any of its factories. If children are found, the company works with the suppliers, local schools and voluntary organisations to find a solution that is best for the child. If a factory is repeatedly found to be using child labour, H&M stops working with that supplier. H&M has also given itself the goal of ensuring all its textile workers are paid a fair ‘living wage’ by 2018. Approximately 80% of the world’s garment workers are women. Receiving a living wage is critical for these women who often take a primary role in providing for the family. However, some critics are sceptic as to whether the company will achieve this.

ACTIVITIES COMPREHENSION

3

Answer the questions. 1 What is fast fashion? 2 Why were clothing retailers like H&M criticised in the Flawed fabrics report? 3 How does H&M ensure there are no underage workers in its factories now? 4 If underage workers are found, what does the company do? 5 What two sustainability goals has the company given itself? 6 Why are H&M stores collecting used clothes?

GROUP DISCUSSION

4

In small groups discuss the following questions. Then report back to the class. 1 Do you buy clothes from fast fashion stores like H&M? 2 Would you be prepared to pay more for your clothes if manufacturers guaranteed workers a ‘living wage’? 3 Do you think H&M can deliver sustainable, ethical clothes without raising its prices? Why?/ Why not?

PRODUCTION Poor working conditions and fair pay are not the only ethical consideration for fast fashion companies. The increase in the number of clothes people consume also has consequences for the environment. H&M transport stock by rail or sea which is cheaper and results in lower carbon dioxide emissions than air transport. It has also launched a global garment collection initiative where people give unwanted clothes to their local H&M store to help reduce the millions of tons of clothes that are thrown away each year. New collections can be made from the recycled clothes. Cotton is the raw material H&M uses the most and this raises another ethical issue. Farmers use millions of litres of water, and often lots of chemical pesticides and fertilisers to grow cotton. H&M aims to ensure all the cotton it uses comes from more sustainable sources by 2020. Sustainability issues require a lot of investment and long term planning. The challenge for H&M will be to keep its promises without raising its prices for customers.

5

5

Compito di realtà

What are clothing companies doing to ensure they address sustainability issues? How can they communicate their efforts to customers? In groups design a ‘sustainability’ advert for an item of clothing made by an international clothing company. The aim is to inform people about where and how their clothes are made. Use the Internet to find out further information. Think about the following: • who makes the clothes and their working conditions. • what the clothes are made of. • how they are transported. • any sustainability projects the company may be involved in. • what format your advert will take (digital, print, video, audio). • what media your advert is for (Internet, TV, radio, newspaper, magazine). 131

Alternanza scuola-lavoro BUSINESS BACKGROUND

Life & Work Skills Life Skills Critical thinking Interpersonal skills Problem solving Effective communication

CASE STUDY THE PALM OIL INDUSTRY We are what we eat, but many of us have little idea about the exact ingredients that make up much of our food, where they come from and how they are produced thanks to the complicated global food supply chain.

Work Skills Discussion skills Teamwork Organisational skills Time management Presentation skills

ACTIVITIES WARM UP

1

What did you eat yesterday? Make a list. Work in pairs. Can you name every ingredient? Do you think any of the products contained palm oil?

VOCABULARY

2

132

Read the text. Match the words in bold (1-6) with their definitions (A-F). 1 supply chain 2 crops 3 indigenous 4 plantations 5 roundtable 6 stakeholder belonging to a particular place A B a person or company who has an investment in something C the series of processes involved in the production and supply of goods a form of academic discussion or D meeting at which everyone is equal and has the same rights E a large area of land where crops such as coffee, sugar, rubber, etc. are grown F plants that are grown in large quantities, especially as food

Take palm oil for example. Until recently, most of us probably didn’t realise that nearly half all the packaged products sold in supermarkets contain palm oil, including chocolate, shampoo, biscuits, detergents, ice cream, bread, cosmetics, even Nutella! It’s the most widely-consumed vegetable oil in the world and the average Western citizen eats over 10kg of palm oil annually. Palm oil is the most cost-effective, land-efficient source of vegetable oil, producing up to ten times the amount of oil per hectare compared to other vegetable oil crops. Global palm oil production is dominated by Indonesia and Malaysia, which together account for around 85 to 90% of the total amount. However, the palm oil industry has been heavily criticized in the news due to links to major issues like deforestation, habitat degradation, animal cruelty and indigenous rights’ abuses in the countries

WORK-RELATED LEARNING where it is produced. Large areas of tropical rainforests have been cleared to make way for palm oil plantations, destroying the irreplaceable habitat of endangered species, including orangutans in particular. The health impact of palm oil is also a cause for concern as it is higher in saturated fat than other types of vegetable oil, ans contains about as much saturated fat as butter.

5

ACTIVITIES COMPREHENSION

3

Answer the questions. 1 Is the palm oil industry an example of primary, secondary or tertiary production? 2 What type of products contain palm oil? 3 Which countries are the main producers of palm oil? 4 Why is palm oil production contentious? 5 What do palm oil and butter have in common? 6 What solution is Greenpeace advocating? 7 How is the industry responding to environmental issues? 8 What is the RSPO and what does it do?

GROUP DISCUSSION

4

In small groups discuss the following questions. Then report back to the class. 1 How often do you read the list of ingredients in food products? 2 Are there any ingredients that you avoid? Why? / Why not? 3 Which products do you eat that contain palm oil?

PRODUCTION

5 However, according to Greenpeace, boycotting palm oil products will not solve the problem, instead the solution is to increase pressure on suppliers to produce the oil in a sustainable, responsible manner that respects the environment. For example, the European Palm Oil Industry announced it will provide 100% certified sustainable palm oil by 2020, and individual companies have also made similar commitments; Ferrero, the maker of Nutella, now use only palm oil that has been certified by the Roundtable on Sustainable Palm Oil (RSPO), a key stakeholder organisation, that includes industry members, environmental groups, banks and other interested parties. However, currently only 17% of palm oil production is certified by the RSPO. The publicity surrounding palm oil has highlighted how prevalent it is in our food chain and how destructive it can be. Now consumers can make more informed decisions about this ingredient in particular and the impact it’s having on our environment.

Compito di realtà

In groups. You are on a work placement at a local supermarket. The company wants to educate young people more about where their food comes from. Choose a fruit or vegetable and use the Internet to find out more about the journey it goes on from where it’s produced to the supermarket shelf. Prepare a presentation to give to a group of young people. Think about the following: • where the fruit or vegetable comes from and how it is produced. • why it’s important to know where your food comes from. • how this information could be presented in an engaging way to young people. The presentation could be done digitally (PowerPoint, Word etc.) or as a poster, and/or oral presentation.

133

Alternanza scuola-lavoro THE BUSINESS WORLD

CASE STUDY CROWDFUNDING

Life & Work Skills Life Skills Creative thinking Interpersonal skills Effective communication

Work Skills Discussion skills Teamwork Organisational skills Time management

ACTIVITIES WARM UP

1

What does crowdfunding mean? Have you ever participated in a crowdfunding project? Why?/Why not?

VOCABULARY

2

134

Find the words in the text in bold that mean the following. 1 to present the good qualities of something in an attractive way ........................................ 2 give money to a charity or service ............... 3 a newly established business ...................... 4 a person who supports a new small business with their own money .................................. 5 think that the amount, cost or size of something is smaller than it really is ............. .................................................................... 6 an arrangement with a bank that allows you to spend more money than you have in your account ...................................................... 7 an electric machine for mixing soft food or liquid .......................................................... 8 something important, enjoyable, interesting etc.; worth spending time, money or effort on ......... .........................................................................

In the past, if an entrepreneur had a good idea for a business or product they had to get a bank loan or overdraft to secure funding, unless they could borrow money from friends or family, or they were lucky enough to find an angel investor! However, now people are increasingly turning to crowdfunding to finance new business ventures. Crowdfunding is where projects and ideas are funded by raising small amounts of money from a large number of people. Instead of traditional investors, crowdfunding campaigns are funded by the general public. There are three main types of crowdfunding models: Donation crowdfunding: people invest because they believe the project or idea is a worthwhile cause, without expecting anything in return; Debt crowdfunding: investors contribute to the business but receive their money back with interest at the end; Equity crowdfunding: people invest in the project in return for a share in the business or project. There are numerous online crowdfunding platforms, for example Kickstarter and Indiegogo, where entrepreneurs can showcase their ideas and attract potentially millions in

WORK-RELATED LEARNING funding. People who pledge money are usually offered a reward like a limited edition or a copy of the product. Lots of different projects can be crowdfunded including films, books, clothes and shoes. A crowdfunded campaign even bought a private beach in New Zealand!

ACTIVITIES COMPREHENSION

3

2 How does crowdfunding work? 3 What sort of projects can be crowdfunded? 4 What are the risk for investors in crowdfunding? 5 What are the risks with crowdfunding for new businesses? 6 Why is the BauBax Travel Jacket described as being “all-in-one”? 7 Why is the Coolest cooler being marketed as a “portable party”? 8 Who do you think is the target customer for each item?

Here are two examples of successful crowdfunding campaigns:

The BauBax “all-in-one” Travel Jacket was launched on Kickstarter in July 2015 and raised over $9 million in 2 months, making it one of the most-funded projects on Kickstarter. The jacket has built-in features designed to make travelling easier including a neck pillow, eye mask, gloves, drink holder and multiple pockets that can store a tablet as well as phones, sunglasses, headphones, portable chargers and a small blanket.

Coolest cooler Over 62,000 people pledged more than $13 million to help bring the Coolest cooler project to life. The Coolest cooler keeps food and drinks cool, but also features a built-in blender, a BlueTooth speaker, four plates, a knife, a corkscrew, a bottle opener and even a USB charger so you can charge your phone, tablet or camera anywhere. It is marketed as a “portable party”.

Answer the questions. 1 In the past, how did entrepreneurs traditionally raise money for new business ventures?

Crowdfunding sounds like the perfect solution for new start-ups looking for funds. However, not all crowdfunding ventures have a happy ending. Many investors fail to realise that it is not like buying an item from a store; they are investing in a project that doesn’t exist yet. New businesses may underestimate the costs of production and delivery, there may be issues with supply chains and sales forecasts. There is a risk that the project will not be successful and even if it is, it may take a lot longer than planned for investors to receive their reward.

BauBax Travel Jacket

5

GROUP DISCUSSION

4

In small groups, discuss the following questions. Then report back to the class. 1 Do you prefer the BauBax travel jacket or the Coolest cooler? Give reasons for your choice. 2 Why do some crowdfunding ideas work, while others don’t? 3 Can you think of any examples where crowdfunding could help your school or area?

PRODUCTION

5

Compito di realtà

In groups. Think of a cool new technological gadget that can help people. Use the Internet to find out further information and research your idea. Design a crowdfunding webpage to showcase your idea. Think about the following: • the name and purpose of your gadget. • the features that will appeal to customers. • the rewards you can offer investors. • how much money you would need to raise to make the idea viable.

135

Alternanza scuola-lavoro MARKETING

Life & Work Skills Life Skills Creative thinking Interpersonal skills Decision making Effective communication

CASE STUDY TRAVEL MARKETING & SOCIAL MEDIA TRENDS Effective social media marketing and engagement is crucial to the success of any leisure business, whether it’s a hotel, airline, cruise ship, amusement park, restaurant or a destination marketing organisation. Here are some key trends to follow to ensure you make the most of social media:

Work Skills Discussion skills Teamwork Organisational skills Time management

ACTIVITIES WARM UP

1

Where did you go on holiday last year? Who booked the trip? Did they book it online or offline? In pairs, discuss your answers.

VOCABULARY

2

136

Read the text. Match the words in bold (1-8) with their definitions (A-H). 1 third-party 2 optimising 3 Millennials 4 share 5 blend 6 target 7 lacked 8 average A to mix two or more things together to direct advertising or a product at B someone C to not have or not have enough of something that is needed or wanted D making something as good as it can be the generation of people who became E adults around the year 2000 F a third person or organisation who is involved in a situation in addition to the two main people or organisations G calculated by adding amounts together, and dividing it by the number of amounts H to tell other people about your ideas, experiences and feelings

1 Invest in your website More people than ever before are booking online through travel brand websites rather than third-party sites. An optimised, user-friendly website is crucial to create a positive impression and ensure visitors book. • 67% of travellers think it’s simpler to book on a travel brand website than a third-party site. • almost two-thirds of travellers think it’s less expensive to book on a travel brand website.

Top Takeaway: Make sure your website gives customers everything they want and need.

2 Optimise for mobile devices Most travellers now research and reserve travel online so optimising everything for mobile is a must. In 2015 there was a: • 49% increase in mobile search for hotels and cruises. • 47% rise in mobile search for car rentals and tours and attractions.

Top Takeaway: Make sure that all of your digital offerings, experiences, and communications are optimised for every mobile device and load quickly.

WORK-RELATED LEARNING

ACTIVITIES

3 Welcome more Millennials Millennials make up approximately 40% of leisure travellers who book travel online and this will increase in future. Millennial travellers are more likely to:

COMPREHENSION

3

2 What are the two reasons travellers prefer travel brand websites rather than third-party sites?

• extend and blend business trips into personal vacations.

3 Why is it important to optimise everything for mobile devices?

• spend more each day on trips than other age groups.

4 How much was the increase in online searches for hotels and cruises in 2015?

Top Takeaway: Millennials may have different needs and expectations compared to other travellers so target your online messages and digital content accordingly.

5 What percentage of leisure travellers are Millennials? 6 How are Millennial travellers different to other age groups?

4 Focus on reviews

7 What is the most important factor that influences travellers when booking a holiday?

Online reviews and review sites are very important. Positive reviews are the second most-likely factor to influence a holiday purchase, with only price ranking higher.

8 What percentage of travellers visit travel review sites for holiday ideas? 9 Why is it important to read guest reviews?

• 64% of travellers visit travel review sites like TripAdvisor for holiday ideas.

Top Takeaway: Revisit all your guest reviews to learn what they liked and lacked in their experiences.

10 Why do you think video is becoming more important for tourism marketing?

GROUP DISCUSSION

4

5 Invest in video Digital video is becoming more and more popular with travellers, especially on social networks. • In 2011 the average time spent watching online video was 21 minutes per day. In 2015 this rose to 1 hour 16 minutes per day. • More than 1 billion people use YouTube.

Top Takeaway: It’s vital to invest in video and incorporate it with social media to reach and resonate with travellers.

Answer the questions. 1 Why is it important for travel companies to invest in their websites?

• book travel and share their experiences on mobile devices and digital platforms.

• Almost half of travellers write a review after a travel experience.

5

In small groups, discuss the following questions. Then report back to the class. 1 Think about the last time you went on holiday. Did you post any photos or videos of your holiday online? Why?/Why not? 2 Did you write a review or comment on any of your experiences? Why?/Why not? 3 If you did either of these things, which social media channels did you use?

PRODUCTION Compito di realtà

5

In groups. Design a social media marketing campaign for the area where you live. How could the area (city, town, village, street) attract more visitors? Use the Internet to find out further information. Think about the following: • the type of visitor you want to attract. • what social media you will use and how. Be as creative as possible. You could use a collage of photos, short videos, vlog/ blog, rap, interviews, tour guides, competitions, etc. 137

Alternanza scuola-lavoro CASE STUDY

ENQUIRING

COFFEE: AN ITALIAN TRADITION

Life & Work Skills Life Skills Critical thinking Interpersonal skills Effective communication

Work Skills

La Marzocco: world-class coffee machines La Marzocco is an Italian company renowned for its beautiful, high-quality, uniquely-designed espresso machines. It was founded in Florence in 1927 by Giuseppe and Bruno Bambi. Today its high-quality coffee machines are considered to be among the best in the world, used by bars, cafés and restaurants everywhere.

Discussion skills Teamwork Making enquiries

ACTIVITIES WARM UP

1

Do you drink coffee? Do you prefer to make it at home or drink it in a bar? What brand of coffee and coffee machines does the bar near your house or in your school use?

VOCABULARY

2

Find the words in the text in bold that mean the following. 1 doppio ........................................ 2 filiali

........................................

3 caffè macinato

........................................

4 fatto a mano

........................................

5 brevettò

........................................

6 dispensatore

........................................

7 affidabile

........................................

8 vapore

........................................

9 caldaia

........................................

10 che comprende ........................................

138

11 macinacaffè

........................................

12 marca

........................................

13 campo

........................................

14 maestria

........................................

15 consumo

........................................

16 norme

........................................

In 1939, La Marzocco patented the first espresso machine with a horizontal boiler, now an industry standard, which was easier to use and could make more cups of coffee at the same time. Other innovations over the years include a second patent in 1945 and the dual boiler system in 1970: one boiler heats the water for the perfect espresso, the other heats water for the steam. Highly-specialised personnel supervise each stage in the production of every single machine, hand-crafted to order for each client, in the factory headquarters situated near Scarperia, in the Mugello region of Tuscany. La Marzocco products include commercial espresso machines, home espresso machines and coffee grinders. Its mission is to continue manufacturing the finest specialty coffee equipment, while encompassing people, tradition, technology and design. Its core values include performance – making sure products are reliable as well as innovative; and reputation – being recognised as a point of excellence in its field. La Marzocco machines are an example of Italian design and workmanship at its best.

WORK-RELATED LEARNING

5

ACTIVITIES COMPREHENSION

3

Read the text and complete the company profiles.

COMPANY NAME

La Marzocco

Founded Headquarters Product range Mission statement Values

Lavazza: world-class coffee The Lavazza coffee company is a fourth generation, family-run business founded in 1895 by Luigi Lavazza. Lavazza’s headquarters are in Turin and it operates in over 90 countries worldwide with Lavazza subsidiaries and an extensive network of distributors. It is the retail market leader in Italy with over 47% market share and employs over 3000 people. Lavazza has plants in Italy, France, Brazil and India. The plant at Turin is dedicated to the roasting and packaging of roast & ground coffee. Lavazza also produces coffee machines and coffee capsules for home, bar, café and office consumption as well as a range of Lavazzabranded items including espresso coffee cups and sugar dispensers.

COMPANY NAME Founded Headquarters Product range Mission statement Values

GROUP DISCUSSION

4

Its mission statement emphasises the values of high quality products and service: “Lavazza has been the Italian coffee market’s leader for four generations, and our mission is to promote the espresso tradition throughout the world, offering the highest standards in product, service, and image.”

Lavazza has recently invested €1 billion, which included expansion abroad with the acquisition of Carte Noire, a French coffee brand and the Danish coffee company Merrild. Today, the company is in sixth place in the global industry ranking, with over 50% of its turnover originating outside Italy and more than 20 billion cups of Lavazza coffee are consumed yearly worldwide.

Lavazza

In small groups discuss the following questions. Then report back to the class. 1 Can you think of any other products that show Italian design and workmanship at its best? 2 Where are they produced? 3 Why do you think Italy is particularly good at producing these?

PRODUCTION Compito di realtà

5

In groups. Find out more information about La Marzocco including the range of products they produce. Imagine you are on a work placement at a bar near where you live. Write an enquiry email to La Marzocco asking for more information about their products. Ask about the following: • catalogue. • price. • delivery timings and costs. 139

Alternanza scuola-lavoro ORDERING

Life & Work Skills

CASE STUDY WAITROSE: CUTTING PACKAGING IN HALF

Life Skills Creative thinking Problem solving Interpersonal skills Effective communication

Work Skills Discussion skills Teamwork Organisational skills Time management

ACTIVITIES WARM UP

1

When was the last time you bought something from a shop or supermarket? What packaging was used? Did you also buy a bag to put it in? In pairs, discuss your answers.

VOCABULARY

2

140

Read the text. Match the words in bold (1-7) with their definitions (A-G). 1 shelf-life 2 thickness 3 trays 4 ready meals 5 charge 6 single-use 7 to get rid of A made to be used only once B a meal already prepared and which only needs to be heated before you eat it C the size of something between opposite surfaces or sides D the length of time that food can be kept before it is too old to be sold E a flat piece of wood, metal or plastic used for carrying or holding things F to eliminate something that is not wanted or needed G the amount of money that somebody asks for goods and services

Waitrose is a major chain of British supermarkets with nearly 350 stores throughout the country. It was formed in 1908 by Wallace Wyndham Waite and Arthur Rose, and they created a successful business selling a wide range of groceries. In 1937 Waitrose became part of the John Lewis Partnership, Britain’s largest employee-owned retailer. In 2013 Waitrose announced it was going to halve its food packaging by 2016 compared to 2005 levels, as part of its corporate social responsibility programme.

Why is packaging important? Packaging plays a crucial role in reducing damage and extending the shelf life of products, and provides space for essential information such as the contents or ingredients, allergy advice and cooking instructions. According to WRAP (Waste and Resources Action Programme) over 10 million tonnes of packaging each year is used in the UK and about half this amount goes to households, where it accounts for about 20% of waste.

WORK-RELATED LEARNING How is Waitrose reducing packaging? Waitrose has implemented a range of initiatives including using lightweight packaging, innovative packaging solutions and recyclable materials. Many improvements involve small changes, for example, reducing the thickness for salad plastic bags resulted in a 14.3% reduction in the weight of packaging used and making sure wine bottles are made from 60% recycled glass. Even something as simple as removing the paper labels on egg boxes saves 35 tonnes of packaging a year and increasing the size of the transparent window in sandwich boxes cuts 11 tonnes! Waitrose has also removed the plastic trays in all meat packages, which saves 70% of packaging, and uses aluminum trays for ready meals, which means customers can cook and serve the meals in the same tray and recycle them after use. In line with Goverment regulations, all supermarkets, including Waitrose, charge 5p for single-use, plastic carrier bags. This charge has resulted in a 80% drop in the number of bags used. Like most UK supermarkets, Waitrose also allows customers to shop online and will deliver the order “bagless” on request. All proceeds from carrier bag sales are donated to charity, raising millions of pounds each year. Waitrose is working hard to reduce packaging and encourage recycling where ever possible, but there is always more than can be done. However, supermarkets will never be able to get rid of packaging altogether – without it, products could get damaged before they are even used, creating even more waste!

5

ACTIVITIES COMPREHENSION

3

Answer the questions. 1 How many Waitrose supermarkets are there in the UK? 2 Why did Waitrose announce it was reducing its packaging? 3 What are the benefits of using packaging? 4 How many tonnes of packaging is used in the UK each year? 5 How much household waste in the UK is made up of packaging? 6 Name two ways Waitrose has reduced packaging. 7 Why do supermarkets charge for single-use plastic carrier bags? 8 What effect has the charge had on the number of bags used? 9 What happens to the money raised from carrier bag sales? 10 Why can’t we eliminate all packaging?

GROUP DISCUSSION

4

In small groups discuss the following questions. Then report back to the class. 1 What other examples of excess packaging can you think of? 2 How can you reduce, recycle or reuse your packaging waste? Make a list of ideas and discuss.

PRODUCTION Compito di realtà

5

In groups. You work for a supermarket and have been asked to reduce the amount of packaging used. Produce a report outlining 5 ways in which packaging can be reduced. Use the Internet to find out further information. Think about the following: • examples of supermarket products that use excess packaging. • alternative ways products can be packaged that reduce waste. • any special offers or advertising which might help reduce waste and encourage recycling. Be as creative as possible. The report could be presented digitally (PowerPoint, Word etc.), as a poster or oral presentation. 141

Alternanza scuola-lavoro DELIVERING GOODS

Life & Work Skills Life Skills Critical thinking Interpersonal skills Effective communication

Work Skills Discussion skills Teamwork Decision making Organisational skills Time management

ACTIVITIES WARM UP

1

What types of goods usually travel by sea freight and what by air freight? Why? In pairs. Discuss your answers.

VOCABULARY

2

Find the words and phrases in the text in bold that mean the following. 1 gran quantità .................................. 2 petroliere

..................................

3 ponte

..................................

4 carico

..................................

5 minerali

..................................

6 scaricare

..................................

7 incolpare

..................................

8 portelli

..................................

9 sconvolgere

..................................

10 crollato

..................................

11 eccesso di capacità ..................................

142

12 scorrere

..................................

13 riguadagnare

..................................

14 flotta

..................................

CASE STUDY HANJIN SHIPPING Around 90% of world trade is carried by the international shipping industry which allows the import and export of goods to take place on a massive scale. There are over 50,000 ships trading internationally, shipping every type of cargo imaginable at a cheaper rate than air freight. Tankers, bulk carriers and container ships carry billions of tonnes of goods each year which makes these ships the most important means of transportation today. Tankers carry large quantities of liquids or gases; bulk carriers are used to transport bulk items such as ore, rice and grain. Bulk carriers have large box-like hatches on their deck which slide out when being loaded; Container ships carry their entire cargo in lorry-size containers. Until recently, Hanjin Shipping was the world’s seventh largest shipping company, transporting over 100 million tonnes of cargo every year which accounted for approximately 3% of shipping globally. This South Korean company had a fleet of nearly 150 container ships and bulk carriers and it employed over 5000 people with four regional headquarters in the USA, Europe and South East and West Asia, with container terminals in all major ports around the globe.

WORK-RELATED LEARNING

5

ACTIVITIES COMPREHENSION

3

Answer the questions. 1 What percentage of world trade is shipped by sea freight? 2 How many ships are there in total in the shipping industry? 3 What is the difference between a tanker, a bulk carrier and a container ship? 4 How important was the Hanjin Shipping company to the global shipping industry? 5 What happened to Hanjin Shipping’s assets when it collapsed? 6 Why did Hanjin’s failure have an impact on other companies?

However, in September 2016 the Hanjin Shipping company collapsed with debts of approximately $5.5 billion. This resulted in the company’s assets being frozen and, as a result, many of its ships were stopped outside ports around the world and refused permission to offload cargo. This had a big impact on international companies like Samsung and Hewlett Packard as millions of dollars’ worth of goods, including TVs, computers, fridges and other domestic appliances, were blocked on Hanjin ships before the busy Christmas holiday season. Experts blame the company’s failure on weaker trade prospects and overcapacity in the shipping industry. Shipping companies continued to build massive ships – some so large that they are longer than the Eiffel tower and contain cargo for more than ten thousand lorries – but these ships are less cost-effective than previously planned due to a reduction in trade levels. Although shipping companies have also been merging in order to increase their global competitiveness and cut costs with economies of scale, many smaller firms had already gone out of business before Hanjin’s crisis. When a transport company the size of Hanjin is in difficulty it disrupts global trade networks which means that the cost of sea freight increases. This is likely to be of short term benefit only to the remaining shipping companies as the questions of overcapacity and lower demand in the industry have not been resolved. The future looks very uncertain for Hanjin shipping as, although it is negotiating with creditors, once a company loses its reputation for service and reliability it is difficult to come back from collapse and regain customers’ trust.

7 What are the two main issues facing the shipping industry which contributed to Hanjin’s collapse? 8 Why are larger ships less cost-effective? 9 What benefits do shipping companies gain from mergers? 10 Why will it be difficult for Hanjin to recover?

GROUP DISCUSSION

4

In small groups. Make a list of the advantages and disadvantages of sea freight versus air freight. Then report back to the class.

PRODUCTION Compito di realtà

5

In groups. You are working for an Italian publisher who specialises in educational textbooks for Italian schools. Your books are printed in China as it is cheaper than printing in Europe. Once printed, the books are shipped by sea freight to Italy. Produce a report outlining the answers to the following questions: • how long, on average, does it take to ship from China to Italy? • what documents are required by the shipping company? • what are the issues, if any, with shipping from China? Use the Internet to find out further information. The report could be presented digitally (PowerPoint, Word, video etc.) or in print. 143

Alternanza scuola-lavoro THE ECONOMIC ENVIRONMENT

Life & Work Skills Life Skills Critical thinking Interpersonal skills Effective communication

Work Skills Discussion skills Teamwork Organisational skills Time management

ACTIVITIES WARM UP

1

What do you know about the EU? When was the EU created? How many members are there? Which countries are members?

VOCABULARY

2

Complete the sentences with the correct words and phrases in bold from the text. 1 Norway held a ....................... on joining the EU in 1994. 2 The government has promised to introduce ....................... to limit fuel emissions from cars. 3 The EU spends around €59 billion a year on farm ......................... . 4 Several ....................... were imposed on foreign imports. 5 The European ....................... came into effect on 1st January 1993. 6 The USA may face significant ....................... as the unemployment rate is falling. 7 ....................... agreements are one of the best ways to encourage the import and export of goods without barriers. 8 The opportunities this agreement brings clearly ....................... the uncertainties.

144

CASE STUDY THE EU: BETTER IN OR OUT? The European Union operates as a single market which allows free movement of goods, capital, services and people between member states. In June 2016, a referendum was held in the UK, asking the British public whether they wanted to remain part of the EU or not. Nicknamed “Brexit” (from the words “British” and “exit”), the debate around whether to remain or leave was heated

IN EU BUDGET Countries receive money from the EU, for example in regional subsidies and there are financial advantages of membership, such as free trade and inward investment.

TRADE No trade tariffs are imposed on imports and exports between member states. Membership of the EU guarantees a country can negotiate how trading rules are created. Members also benefit from trade deals between the EU and other world powers.

INVESTMENT Companies and businesses investing in EU countries have access to a huge customer base throughout the member states.

SOVEREIGNTY In return for agreeing to EU rules, countries hold more influence over events and current affairs in a complex and interdependent world. Countries often have to follow other organisations’ rules and regulations anyway, for example like NATO, the UN, and the World Trade Organisation.

IMMIGRATION Immigration rules and border decision are made by the EU and all members have to accept them. EU citizen are free to live and work in any member state.

WORK-RELATED LEARNING and acrimonious, but the final result showed 51.9% voted in favour of leaving and 48.1% voted to remain. There were large regional differences that made many people in the UK unhappy: for example, the majority of voters in London, Scotland and Northern Ireland voted to remain.

ACTIVITIES COMPREHENSION

3

Since the Brexit vote, the debate continues about whether countries gain a net benefit from EU membership or not. So what are the advantages of leaving the EU – do these outweigh the disadvantages?

OUT EU BUDGET Countries don’t have to contribute to the EU budget, although some payment might be necessary for access to the single market.

TRADE Countries are free to establish their own trade agreements with other countries without EU restrictions.

SOVEREIGNTY Countries can control their own rules and legislation without having to compromise or reach an agreement with other EU countries.

IMMIGRATION Countries have control of their own borders and can decide immigration rules. However, the citizens of these countries may no longer be able to live and work anywhere else in the EU. A reduction in immigration could result in labour shortages.

Read the text again. Are the following sentences true (T) or false (F)? Correct the false sentences. 1 The 2016 referendum in the UK was to decide whether to stay in the EU or not. 2 Brexit comes from the words “British” and “exit”. 3 There were no regional differences in voting for the Brexit referendum. 4 Countries in the EU have to contribute to its budget. 5 Trade tariffs are imposed on imports and exports between member states. 6 EU rules and regulations are the only ones EU countries have to follow. 7 Immigration rules are decided by individual EU members. 8 EU citizens can live and work anywhere else in the EU.

GROUP DISCUSSION

4

INVESTMENT Outside the EU, countries can set their own regulations to encourage investment which could be more favourable than the EU’s.

5

In small groups discuss the following questions. Then report back to the class. 1 Do you think countries are better off staying in the EU or leaving? Why? 2 If there was a referendum in Italy on EU membership would you vote to remain or leave? Why? 3 What do you think would be the outcome of such a referendum?

PRODUCTION Compito di realtà

5

In groups. Choose an international company that has its headquarters in the UK. Prepare a report on how you think the decision to leave the EU might affect the company. Use the Internet to find out further information. Think about the following: • where the company sells its products or services. • how this may affect its employees. • costs of production, exchange rates (exports and imports), trade tariffs. The report could be presented digitally (PowerPoint, Word etc.) in print or as a poster. 145

Alternanza scuola-lavoro THE FINANCIAL WORLD

Life & Work Skills Life Skills Critical thinking Interpersonal skills Effective communication

Work Skills Interpreting pie charts Discussion skills Teamwork Organisational skills Time management Presentation skills

CASE STUDY HSBC & SOCIAL RESPONSIBILITY HSBC is one of the largest banking and financial services organisations in the world with over 6,200 offices in 74 countries and around 52 million customers. One of HSBC’s core values is its connection to communities as it donates over $200 million dollars each year to charities and non-profit organisations, running community projects around the world. HSBC supports projects relating to children and education, medical welfare and research, and the environment and wildlife.

Donations to community projects $75,2 m

$4,6 m

$18,6 m $3,0 m Europe Asia-Pacific Middle East North America

ACTIVITIES

Latin America

WARM UP

1

$104,0 m 28%

Look at the two pie charts showing HSBC’s donations to community projects by region and theme. In pairs. Which region receives the most funding? Which theme does HSBC invest most in?

Education Enviroment

VOCABULARY

2

Find the words in the text in bold that mean the following. 1 benessere ...................................

Other 37% 35%

2 senza scopo di lucro ................................... 3 valori fondamentali

...................................

4 ordinare

...................................

5 rifugi per senzatetto ...................................

146

6 attrezzatura

...................................

7 pastelli

...................................

8 zaini

...................................

9 valutazione

...................................

10 su misura

...................................

11 laboratorio

...................................

12 raccolto

...................................

Here are four examples of educational community projects funded by HSBC:

WORK-RELATED LEARNING

5

ACTIVITIES COMPREHENSION

3 Operation Backpack

2 How much money does it donate each year to charities and non-profit organisations?

HSBC works with VOA (Volunteers of America) to provide more than 22,000 children living in homeless shelters in New York, Chicago and San Francisco the supplies they need for school. The backpacks are filled with the school equipment according to the student’s grade. A high school student gets a dictionary, a thesaurus and a calculator while younger children receive a box of crayons and a paint set, along with the other usual school supplies. All children receive a toothbrush and toothpaste. As well as the money, HSBC employees also volunteer their time to sort and distribute backpacks.

3 What kind of community projects does HSBC support? 4 How does Operation Backpack allocate the school equipment? 5 Why do you think all the children receive a toothbrush and toothpaste? 6 Where are the community schools in Egypt going to be built? 7 How is the school calendar tailored for rural communities? 8 What is the aim of the Reading Programme in Bangladesh?

Community Schools HSBC and the Misr El Kheir Foundation (MEK) are working together to build 350 community schools in remote areas of Egypt where there currently aren’t any. The aim is to provide 12,000 children aged between 6-14 access to education. UNICEF has developed the curriculum and the school calendar is tailored to the needs of rural communities according to market days, harvest seasons and other locally relevant holidays.

9 How many books will each school receive? 10 Why has HSBC funded a floating school as part of its Future First project?

GROUP DISCUSSION

4

Reading Programme In Bangladesh, the British Council and HSBC have launched a ‘Play, Learn, Act’ Reading Programme for 22,500 children in 20 primary schools. The aim is to encourage students to improve their English literacy and communication skills. Each school will receive approximately 500 English language story books, alongside English language lesson plans and materials. Activities also include ‘Teaching Reading’ workshops for teachers, assessment, intra-school art competitions and an award-giving event to help motivate students.

Future First Future First is HSBC’s global education programme which is helping children living in remote communities in Vietnam’s Mekong Delta to go to school – by bringing a school to them. HSBC has funded a floating school on a converted ferry which travels to where the children live. The school moves to a new area every three months, helping approximately 1,200 students every year.

Answer the questions. 1 How many countries does HSBC operate in?

In small groups discuss the following questions. Then report back to the class. 1 Which area do you think should receive the most funding: children and education, medical welfare and research or the environment and wildlife? Why? 2 What sort of projects could multi-nationals invest in as part of their social responsibility programme in Italy?

PRODUCTION Compito di realtà

5

In groups. Come up with an idea for a community project for your local area. Present your idea to the local council. Think about the following • how could you change or improve people’s lives? • how would you get people and businesses involved and generate support? • how could you inform people about your project’s aims and results? The presentation could be done digitally (PowerPoint, Word etc.) or as a video, poster or oral presentation. 147

Work skills

1 COMMERCIAL AWARENESS What is commercial awareness? Commercial awareness is an important skill that employers look for when interviewing candidates. Having good commercial awareness means: • you know about the company and how it operates. • you know about the marketplace in which the company operates and also its major competitors. • you are able to speculate1 about the future and how current affairs may affect the business. • you are familiar with the history of the industry or company. • you recognise the importance of efficiency, cost-effectiveness and customer care.

How to improve your commercial awareness • Follow the industry news by reading online newspapers, like the Financial Times and the BBC news. • Follow the company’s Twitter feed and those of its competitors in the industry. • Check the company’s website regularly for any updates and sign up to their e-newsletter.

1 speculate = riflettere

PROBLEM SOLVING Work in pairs. Read the extract from a job advert below and imagine you have an interview for the role. In order to develop your commercial awareness of the company, use the internet to research and answer the following questions about the Barilla Group. 1 Write a brief description of the structure of the Barilla International Group. 2 What are its main products? 3 Who are its main competitors? 4 What percentage (share) of the Italian market does the Barilla Group have? What percentage of the American market? 5 What significant factors have affected Barilla in recent years?

Barilla America are recruiting a Marketing Analytics Intern. Location

148

Northbrook, USA

Position

Internship

Function

Marketing / Brand Development & Innovation

Job purpose

Come learn from some of the best! Work alongside talented professionals to contribute to challenging, exciting and rewarding projects. Our Summer Internship Program provides real world experience and an opportunity to build expertise and problem solving capabilities...

WORK-RELATED LEARNING

5

2 VERBAL AND WRITTEN COMMUNICATION What is verbal and written communication? The ability to communicate and exchange information effectively is an essential skill in the workplace environment. An employee must know how to convey1 and receive messages, instructions, reports, presentations etc. in person as well as by phone, email, letters and social media. It means: • you use an appropriate form of communication for the situation e.g. writing complicated information in an email rather than in a conversation. • you actively listen and play close attention to what the other person is saying. You understand what the person is trying to say and respond appropriately. • you convey your message clearly and concisely. If writing, make sure you check for spelling and grammar mistakes before sending. • you are able to give and receive constructive feedback. Use clarifying questions to make sure you have understood any issues correctly, e.g. “Did I hear you correctly when you said…?”

How to improve your communication skills • Pay attention to non-verbal communication skills like your body language and hand gestures. Look at other people’s non-verbal signals too, as these often convey how they are really feeling. • Join a debating society2, acting group or club. If there isn’t one in your area, then start one yourself! • Practise what you what to say if you are doing a presentation or an interview by speaking to yourself in front of a mirror. Speak slowly and clearly, not too fast or else people will think you are nervous.

1 convey = comunicare 2 debating society = circolo che organizza dibattiti con votazione finale

PROBLEM SOLVING Work in pairs. You have an interview for a summer camp assistant and need to prepare a 10 minute presentation about a topic of personal interest, e.g. a hobby or activity that you like, a sport you play, a recent holiday. Use the tips below and take turns to watch each other’s presentations and give constructive feedback.

TIPS

for presenting:

- prepare your presentation well. Practise it and check the timing. - organise your materials; don’t read from your notes but use cards or prompts. - if using visuals, e.g. PowerPoint, use maximum of 3-5 lines of text per slide and use large, clear fonts. - if using images or artwork make you have copyright permission.

TIPS

for giving feedback: - ask for their impressions about how the presentation went and how they think it could be improved. - provide supporting facts and show how the person can improve. Avoid negative wording. - give critical feedback where necessary but do so with empathy.

149

Work skills

3 TEAMWORK What is teamwork? Teamwork is all about being able to work efficiently and confidently within a group of people. Many jobs today are done by project teams or self-managed work teams rather than individuals so teamwork is a key skill that employers are looking for. Being a team player means: • you have good interpersonal skills and can collaborate, negotiate, advise and compromise where necessary. • you contribute ideas effectively and confidently within a group and take a share of the responsibility. • you can give feedback and criticise in a positive, constructive manner. • you encourage everyone in the group to contribute and listen to and respect their ideas.

How to improve your teamwork skills

• Get involved in1 student committees, after-school clubs and societies or play a team sport like volleyball. • Look for opportunities at school where you are required to complete course work or tasks as part of a group. Think about the role you play within the group. • Find part-time job or carry out2 volunteer work where you are working alongside others.

1 get involved in = participare 2 carry out = effettuare

PROBLEM SOLVING Work in groups. You are going to design a coat of arms (blasone) for your group which reflects your personalities, achievements and ambitions. Read the roles below and assign a role to each group member. You have 15 minutes to design your coat of arms. Then show it to the class and ask for first impressions. The reporters answers questions and clear in your group up misunderstandings. You then have 10 minutes to implement any changes necessary to come up with a final version of the wat of arms. Share your design with the rest of the class. Team roles

150

Leader

moderates team discussion, allocates work, keeps the group on-task.

Recorder

takes notes, summarises discussions and decisions.

Reporter

spokesperson who reports conclusions to the class and answers questions at the end.

Timekeeper

makes sure the activity starts and finishes on time.

Devil’s advocate

makes counter-arguments and constructive objections.

Designer

creates any artwork required for the task.

WORK-RELATED LEARNING

5

4 ANALYSING AND INVESTIGATING What are analytical skills? Analytical skills allow you to examine problems in detail and find solutions, and are essential in every type of organisation. If you have strong analytical skills it means: • you take a logical approach to problem solving, but also use your imagination and creativity to approach the issue from different angles if necessary. • you are able to collect, visualise and analyse information in detail, for example trends in the marketplace or the effectiveness of a particular event or strategy. • you have strong mathematical skills for calculating schedules1 and budgets and are able to interpret graphs and charts, etc. • you are good at seeing connections between events, objects, actions etc., and think about things in terms of cause and effect.

How to develop your analytical skills • Learn to be more observant and pay attention to detail. Practise decribing or planning a process step-bystep in as much detail as you can manage. • Identify Maths problems in everyday life, then take time to solve them. • Do puzzles like crosswords or Sudoku and play games like chess or Scrabble which help your ability to think strategically and creatively.

1 schedules = piani

PROBLEM SOLVING Work in small groups. The plane carrying your group has crashed in a cold, deserted, mountainous area. You find the following 10 items in the wreckage. List the 10 items below in order of importance for your survival. Think about the following: what you can use each item for and the connections between the items and where you are. Explain the reasoning for your group’s choices to the class.

•

a ball of steel wool

•

an extra shirt and trousers (one per person)

•

a small axe

•

a 8m x 8m piece of heavy-duty canvas

•

a loaded pistol

•

a compass

•

a tin of olive oil

•

Family-size chocolate bars (one per person)

•

newspapers (one per person)

•

a cigarette lighter (without fluid)

151

Work skills

5 NEGOTIATING What is negotiation? Negotiation is a process by which compromise or agreement is reached while avoiding arguments. It is an important skill in the work place, for example when discussing projects, responsibilities, contracts and salaries. Being a successful negotiator means: • you plan ahead think through your strategy before the negotiation takes place. • you are willing to be open-minded, flexible and consider a range of options. • you are are cooperative and look for areas of common ground1 rather than conflict. • you are able to identify and discuss key issues in terms of priority and not get distracted. • you adopt a friendly, manner and avoid becoming aggressive or intimidating. • you understand the importance of compromise and look for a beneficial win-win outcome2.

How to improve your negotiating skills • Practise negotiating with your family, whether it’s about what you watch on TV, when you go out with friends, what time you come home, or when you do your homework etc. Analyse the issues and identify priorities. Compromise if necessary to achieve a win-win outcome! • Join a volunteer or community action group. Any situation where you work alongside others will give you an opportunity to try out your negotiating skills. • Visit your local market and try negotiating a discount, for example if an item isn’t selling well or if you’re buying multiple items.

1 common ground = punti in comune 2 win-win outcome = risultato vantaggioso per tutti

PROBLEM SOLVING Work in pairs. You are going to carry out a negotiation role-play. One of you is the hotel manager and the other is the client. • Client: you have been a loyal customer of this hotel for several years and you would like a special price. You usually pay €120 for a room. You would like to pay less than €100 per night. • Hotel Manager: You recognise that the customer is a valued client, but you also need to ensure profits are made. You can’t offer a room for less than €100 per night. Negotiation stages 1 Discussion - talk about your understanding of the situation then listen to others. Key skills during this stage include active listening, questioning and clarifying. 2 Clarification of goals - make sure the goals and interests of all parties are clear. 3 Negotiate a win-win outcome - where everyone feel they have gained something positive from the negotiations and feel that their point of view has been considered. A win-win outcome may not always be possible. 4 Agreement - once everyone’s viewpoints and interests have been considered, an agreement is reached. If an agreement isn’t possible, another meeting is required and the negotiation process starts again.

Work through the different stages of negotiation above to reach an agreed price for the room. After you reach an agreement, answer the following questions: 1 Did you reach a win-win outcome? Why? / Why not? 2 What differences can you think of between the way you might approach negotiations as part of a long-term business relationship and one-off negotiations? 152

WORK-RELATED LEARNING

5

6 PLANNING AND ORGANISATION What are planning and organisational skills? Planning and organisation in the workplace is all about showing you can work efficiently and productively. This means: • you manage your time well and are able to prioritise your workload1 and focus on what is urgent and important. • you are good at scheduling projects, appointments, tasks etc. and always meet deadlines. • your desk is tidy and your files and materials stored2 so you can easily access what you need.

How to improve your organisational skills • Create a revision planner when you are studying for exams. Work out your priorities for studying the different subjects and the amount of time you need to allocate to each one. Use colour coding if it helps. • Keep a to-do list where you write down everything you have to do today and cross off each item as you complete it. Prioritise the list in terms of urgency and importance. • Keep a notebook with you. Write down anything important that you need to remember. • Organise your bedroom! Make sure everything is tidy and easy to find. Set up a storage or filing system for things like photos, CDs, books etc. • Start your day early! Make sure you have time to think about your to-do list for the day and plan accordingly3 without having to rush around at the last minute.

1 workload = carico di lavoro 2 stored = archiviati 3 accordingly = in base a

PROBLEM SOLVING Work in pairs. You are going to role-play a job interview for the position of Business Development Coordinator below. One of you is the interviewer, the other one is the interviewee • Interviewer: Ask candidates to give examples of ways in which they have demonstrated excellent organisational skills. Ask questions like “Have you found any ways to make school or a job easier or more rewarding?”, “Tell me about a time when you organised a complicated project”, “What do you do if a project is not going well because of inefficient planning?”. • Interviewee: As well as discussing the job description and the required skills, be prepared to give examples of experiences that show you demonstrated excellent planning and organisational skills. Think about when you’ve organised a project effectively, or show examples of how you plan and organise your school and home activities efficiently. Business Development Coordinator · Mobile Marketing Agency – London What does the company do? We are a leading, global, full service mobile marketing agency. We help brands engage with their customers using creative and effective mobile marketing and advertising solutions. The ideal candidate’s personality and qualifications: Strong people skills, ability to build strong relationships with clients. Excellent organisational skills. Excellent knowledge of MS Office, especially Excel.

153

Work skills

7 LEADERSHIP What is leadership? Leadership is the ability to motivate and influence people to achieve a better result for the company or organisation if you have good leadership skills. It means: • you are confident and can communicate effectively. • you have strong organisational skills and are good at planning objectives and strategies as well as assigning and delegating tasks. • you take responsibility for your actions and know your own strengths and limitations. You admit your failures and learn from your mistakes. • you are good at managing conflict and can anticipate1 when there may be issues or problems. • you treat everyone fairly and with respect and encourage others to contribute ideas and opinions. • you negotiate competently and consistently achieve win-win outcomes.

How to improve your leadership skills • Be positive! You won’t be able to motivate anyone if you’re negative about everything. • Be the captain of your sports team or take a leadership role in a club, society or academic project. • Volunteer to work with children’s groups or offer to be an instructor. Both situations will put you in a position of responsibility towards others and give you an opportunity to gain leadership experience.

1 anticipate = prevedere

PROBLEM SOLVING Work in pairs. You are going to role-play a job interview for the position of Trainee Project Manager below. One of you is the interviewer and the other is the interviewee. • Interviewer: you want to employ someone who possesses the necessary skills listed in the job advert. Strong candidates will also be able to give examples of when they demonstrated leadership skills. Ask questions like “Describe a time when you led by example”, “Tell me about a time that you took the lead on a difficult project or took control of a difficult situation.” • Interviewee: As well as discussing the job description and the required skills, be prepared to give examples of experiences that show you demonstrated leadership skills.

154

Recruiter

Criteria Fieldwork Ltd

Location

London

Position

Trainee Project Manager

Function

Administration

Job purpose

We organise research for a diverse range of products and services, including retail, financial & IT sectors. The role will include questionnaire design, client liaison and general project management. Candidates should have excellent communication & administrative skills and the ability to work effectively as part of a team. Strong candidates will be given opportunities for career development.

WORK-RELATED LEARNING

5

8 MOTIVATION What is self-motivation? Employers are keen to1 employ self-motivated candidates who are able to face the challenges they meet in the workplace with positivity and optimism. Being self-motivated means: • you are driven by a desire to succeed and achieve your goals. • you show initiative and are ready to act on opportunities. • you are confident and have good time management and organisational skills. • you maintain a positive, can-do attitude and meet challenges and set-backs2 without becoming frustrated and giving up3.

How to improve your self-motivation • Focus on realistic goals. For example, a goal of a daily 10km run is unrealistic, but a 30 minute run twice a week is something you’re more likely to achieve. • Keep a progress chart and track your achievements for on-going projects. If you achieve your short term goals it’ll be easier to imagine yourself reaching the long term ones as well. • Help others to get motivated by sharing your ideas. • Focus on the positive aspects of your life and rather than on the negative. • Take a break! If you’re studying hard it’s important to take mini-breaks in order to keep up your motivation. • Reward yourself when you meet your goals.

1 keen to = desideroso di fare qualcosa 2 set-backs = ostacoli 3 giving up = rinunciando a

PROBLEM SOLVING Work in pairs. Look at the list of motivational factors in the workplace below. Imagine you are an employee and order the factors in terms of importance to you. Now imagine you are a manager and put the factors in order of importance. Then answer the questions. 1 What do you think are the most important motivational factors for employees? 2 Are the most important motivational factors the same for managers? Why? / Why not? 3 What motivates you to do things in your life the most? Top 10 Motivational factors in the workplace 1 Opportunities for promotion and growth 2 Good working conditions 3 Interesting work 4 Good salary 5 Company loyalty to employees 6 Tactful disciplining 7 Recognition and appreciation 8 Job security 9 Help with personal problems 10 Feeling relevant 155

Work skills

9 WHAT DOES WORKING UNDER PRESSURE MEAN Working under pressure Being able to work well under pressure is an essential skill in the workplace as all jobs involve some degree of pressure, whether it’s multitasking meeting deadlines or sales targets. It means: • you can prioritise important tasks and are able to work well when you have a high workload or a tight1 deadline to meet. • you remain calm in a crisis and don’t become overwhelmed2. • you are able to deal effectively with issues that are outside of your control like unexpected changes or lastminute problems. • you are good at evaluating the tasks that need to be done and carry them out3 in the most time and cost effective way.

How to work better under pressure • Focus on what you are doing rather than worrying about what other people are doing. • Ask for help if necessary. If you have a deadline or are not coping with the amount of work you have to do and you are stressed about it, talk to your family, friends, teachers or the school to see if they can help. Use all the resources at your disposal. • Keep track of all your tasks with a planner, either weekly or monthly and keep a daily to-do list. Be as organised as possible! • Find your most productive period of the day (morning or afternoon) and work on your most important projects during this period.

1 tight = stretto 2 overwhelmed = sopraffatto 3 carry them out = effettuarli

PROBLEM SOLVING Work in pairs. Look at the answers below to the job interview question “Do you work well under pressure?”. Answer the questions. Discuss your answers with the rest of the class. “Yes, I actually enjoy working under pressure, though I believe that proper planning and good time management can greatly reduce any problematic deadlines.” “I find presenting projects or reports in front of a group stressful, however I make sure I spend a lot of time into preparing everything, which helps me stay calm.” “I never feel under pressure. Of course, I have been in stressful situations, for example when the workload was heavy, but I don’t let the situation effect me and my emotions.”

156

1 Which answer do you think is the best? Why? 2 Do you work well under pressure? Why? / Why not? 3 Think of an example of a time you were stressed and under pressure, what did you do? 4 What causes you stress and why? 5 What solutions do you use to cope with stress?

Word Clouds

1 Globalisation 2 Technology 3 Responsible business 4 Private sector business structure 5 Marketing 6 The economic environment 7 Trade 8 The financial world 9 The British economy 10 The American economy

6

WORD CLOUD

1

Student’s Book, Section 2, Module 1

Ensures the stability of the international monetary system

Ensures that global trade flows as smoothly and freely as possible

Provides loans to developing countries with the aim to reduce poverty

The International Monetary Fund (IMF)

The World Trade Organisation

The World Bank

Global trade

Global companies

Globalisation

Offshoring

Outsourcing

Relocation of a business process from one country to another

Contracting out of a business process to another party

Millennium development goals (MDGs)

Global issues Inequality/ Poverty

Deindustrialisation

Importance of industry & manufacturing Importance of tertiary sector

Emerging markets

Chindia: China & India

The ‘Four Asian Tigers’: Hong Kong, Singapore, South Korea, Taiwan

Newly Industrialised countries (NICs): South Africa, Mexico, Brazil, China, India, Indonesia, Malaysia, The Philippines, Thailand, Turkey 158

UN Human Development Index (HDI)

Microcredit

WORD CLOUDS

WORD CLOUD

2

Student’s Book, Section 2, Module 2

‘Cloud computing’ adds, shares and stores data

Video conferencing allows people in different places to work together

6

Technology eliminates space & time

Information can be passed through multiple channels almost instantly

Communication

Mobility

Efficiency

Human capital

Computers, digital filing systems, email and the Internet help save time and money

Businesses can use internet to advertise new jobs. Recruit and hire candidates

Technology

IT in manufacturing

IT in distribution CAD

CAM

Computer-aided design

Computer-aided manufacturing

3-D printing

E-commerce • quick and easy

B2B Business to business

B2C Business to consumer

C2C Consumer to consumer

• wide range of products • online shops always open • buy and sell products from all over the world • up-to-date and fashionable

Identify and track goods through RFID (Radio Frequency Identification) tags

Microchips use EPC (Electronic Product Code) and can be located at all times

m-commerce through mobile devices

159

WORD CLOUD

3

Student’s Book, Section 1, Module 3

Geothermal energy

Caused by • Electricity • Cars • Rubbish

Bioenergy

• Farming • The sea • Destruction of rainforest

Aluminium: infinitely

Wind energy

Paper: up to 6 times

The greenhouse effect

Solar energy

Global warming

Renewable energy Recycling

Responsible business

e-waste

Glass: infinitely

Green/sustainable business

Plastic: many times

Ethical banking Benefits for companies • reduce environmental risk • green product demand • consumer engagement – improving public image • attract talent – increase pride in workplace • attract investors • save money

160

Fairtrade Labelling Organisations International (FLO)

Fairtrade label awarded to producers and traders that: • are small holders • pay decent wages • allow workers to join trade unions • produce sustainably

concerned with the social and environmental impact of their investments and loans

WORD CLOUDS

WORD CLOUD

4

6

Student’s Book, Section 2, Module 2

Voluntary organisation Usually limited company

Unlimited / ordinary partnership

Limited partnership

Cooperative Unlimited liability

Partnership

Sole trader

Private sector Business structure

Franchise

The Franchisor

• employs • supplies • shares profits

The Franchisee

• works • sells • shares profits

Limited company • Limited liability • Separate legal identity • At least 2 shareholders

Private limited company (LTD)

• Board of directors – Managing Director / CEO

• Share capital < £50,000 • Not sold on the Stock Exchange

Public limited company (PLC) • Share capital > £50,000 • May be sold on Stock Exchange

161

WORD CLOUD

5

Student’s Book, Section 2, Module 3

1 Situation analysis

1 Research the market

6 Price the product

2 Marketing strategy

2 Plan & Develop

The customer

5 Place the

3 Marketing mix decisions

product

3 Produce the product

4 Implementation

4 Promote

& control

the product

The marketing process

The marketing concept

Digital or traditional?

Marketing mix Marketing services

Marketing

The 4Ps • Product • Price • Place

People

• Promotion

Process

Physical evidence

Marketing strategy (STP) Segmentation

Advertising Marketing research

Media: • TV • radio • Internet

Targeting Primary / Field research

Positioning

• newspapers • magazines • billboards • cinema

Secondary / Desk research 162

• computer screens • phones

WORD CLOUDS

WORD CLOUD

6

Student’s Book, Section 2, Insight 1

Services of national interest, often competing with private sector

• Public sector • Prices fixed by Government

• Privately owned resources

• Communication

A mixed economy

Types of economic systems

GNP per capita

Gross National Product (GNP)

• Total economic output of a country • Includes the GDP plus earnings from foreign investments

Gross Domestic Product (GDP)

Services for which government has direct responsibility • Education

• Transport

A command economy

A free-market economy

GNP divided by population

• Electricity • Water

• Supply & demand price mechanism

6

• Health • Defence

The public sector

The economic environment Economic indicators

Inflation

Unemployment

Measured by RPI (Retail Prices Index) or CPI (Consumer Prices Index)

To reduce unemployment:

To lower inflation: • reduce customer spending

• increase demand • offer retraining incentivises • help new businesses to set-up

• limit wage increases • print less money • Total value of goods and services produced by a country in a year • Percentage increase indicates economic growth 163

WORD CLOUD

7

Student’s Book, Section 2, Insight 1

• cars • clothing • electronic equipment • insurance

• machinery

• banking

• raw materials

• tourism

• food

Visible trade =

Invisible trade = exchange of services

exchange of physical products

Visible and invisible trade

Trade

The balance of trade (BOT) The difference between the monetary value of visible exports and imports over a certain period of time

The balance of payments (BOP) The difference between the money coming into a country and the money going out

International trade The exchange of goods and services between different countries

Vital for open economies and GDP 164

WORD CLOUDS

WORD CLOUD

8

6

Student’s Book, Section 2, Insight 2

ATM machines

• Issue, control & regulate the supply of money in the country • Design & enforce interest rates & money supply policies to control the economy

Mobile banking (m-banking) via secure apps

• Manage public debt • Give the government financial advice • Manage foreign exchange reserves • Control the activities of commercial banks • Lend money to commercial banks

Online (e-banking) & telephone banking

The European Central Bank (ECB)

Modern banking

Central banks The Federal Reserve System of the United Sates

The financial world

• Federal Reserve Board of Governors • 12 Regional Federal Reserve Banks • Federal Open Market Committee • National & state member banks

The stock exchange

Debentures documents given to lenders of long-term capital to a company Role of the stock exchanges:

Shares separate equal parts into which the capital of a company is divided

Bonds fixed interest financial assets issued by governments, banks, public utilities & other large entities

• Raise capital for business • Indicate economic trends

Stock indexes • The Dow jones • The Nasdaq Composite Index • The S&P 500 • The FTSE 100 Index

• Facilitate company growth • Raise Government capital via bonds • Create investment opportunities for small investors 165

WORD CLOUD

9

GDP*: $2,679 trillion (2015) GDP growth*: 2.2% (2015) Inflation rate*: 0.1% (2015) Labour force*: 32.94m (2015) Unemployment rate*: 5.4% (2015) Poverty rate: 16% (2014)

Student’s Book, Section 2, Insight 1

GDP by sector Services

79.6%

Industry

19.7%

Agriculture

0.6%

*updated figures

One of the highest rates of income inequality in Europe & high rate of poverty.

One of the fastest growing developed economies.

London largest city GDP in Europe

Economic indicators 80% output and employment from private sector.

The British economy

Mixed economy

British foreign trade Leading export markets: Germany, USA, Netherlands, France and Ireland

Sixth largest trading nation in world, 25% employment linked to overseas trade.

Total exports £304.8bn Total imports £412.6bn

Major goods exports pharmaceuticals, high-tech machinery, electrical goods, cars luxury goods, mineral fuels 166

Leading import markets: Germany, China, Netherlands, USA & France

WORD CLOUDS

WORD CLOUD

10

6

Student’s Book, Section 2, Insight 1

GDP*: $17.95 trillion (2015) GDP growth*: 2.4% (2015) Inflation rate*: 0.1% (2015) Labour force*: 156.4m (2015) Unemployment rate*: 5.2% (2015) Poverty rate: 15% (2013) *updated figures

GDP by sector Services

77.6%

Industry

20.8%

Of the world’s largest 500 companies, 132 have their headquarters in the US.

Agriculture 1.6%

Economic indicators

Largest and most technically powerful economy in the world. The US economy is resilient and flexible.

The American economy

American foreign trade Second largest trading nation in the world.

Total exports $1.57tn Total imports $2.30tn Trade deficit $471.5bn (2013)

Market-orientated economy

US dollar is the most used currency in international transactions.

Leading export markets: Canada, Mexico, China, Japan and the UK

Leading import markets: Major goods exports manufactured products (electrical and office machinery), chemical products, cars, aeroplanes and aviation parts, scientific equipment

China, Canada, Mexico, Japan and Germany

Major goods imports manufactured products, petroleum and fuel products, machinery and transport equipment 167