Grammar for students to understand business English. Ч.2

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Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

ЛИПЕЦКИЙ КООПЕРАТИВНЫЙ ИНСТИТУТ (ФИЛИАЛ) ОБРАЗОВАТЕЛЬНОГО УЧРЕЖДЕНИЯ ВЫСШЕГО ПРОФЕССИОНАЛЬНОГО ОБРАЗОВАНИЯ ЦЕНТРОСОЮЗА РОССИЙСКОЙ ФЕДЕРАЦИИ "БЕЛГОРОДСКИЙ УНИВЕРСИТЕТ ПОТРЕБИТЕЛЬСКОЙ КООПЕРАЦИИ"

Л.Л. Курченко О.В. Ермолова ENGLISH FOR BUSINESS COMMUNICATION Учебное пособие для экономических специальностей Часть II Рекомендовано к изданию Научно-методическим советом института

Липецк 2007 1

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

ББК 81.2 Англ.я 73 К 93

Рекомендовано к изданию кафедрой гуманитарно- социальных дисциплин Липецкого кооперативного института (филиала) БУПК Протокол № 5 от 19.01.2007г.

Составители: Курченко Лидия Леонидовна, старший преподаватель кафедры гуманитарно-социальных дисциплин Липецкого кооперативного института Ермолова Ольга Викторовна, к.п.н., старший преподаватель кафедры гуманитарно-социальных дисциплин Липецкого кооперативного института Рецензент: Кузовлев Владимир Петрович, к.п.н., профессор, начальник отдела АСУП издательства «Просвещение» К 93

Курченко Л.Л., Ермолова О.В., English for business communication. Учебное пособие для экономических специальностей. Часть 2./ Л.Л. Курченко, О.В.Ермолова, - Липецкий кооперативный институт (филиал) БУПК, Липецк 2007 – с.

Учебное пособие содержит тексты, лексические и функциональносмысловые таблицы, лексико-грамматические упражнения для самостоятельной работы студентов с текстами, ситуативные упражнения. Пособие предназначено для студентов экономических специальностей факультета экономики и товароведения. © Липецкий кооперативный институт, 2007

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Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»

CONTENTS

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ВВЕДЕНИЕ Цель данного пособия – способствовать овладению студентами современным экономическим мышлением, представить разнообразные формы работы с оригинальной, адаптированной литературой для извлечения полной, основной и частичной информации для расширения экономического кругозора, приобщения студентов к другим культурам. Важной задачей пособия является расширение использования индивидуальных возможностей студентов, как в условиях аудиторной, так и внеаудиторной самостоятельной работы. Таким образом, индивидуализация и дифференциация обучения составляет основу методики обучения студентов, так как студент предстает перед преподавателем как индивид с определенным уровнем развития способностей, как субъект учебной деятельности, характеризующийся разной степенью рациональности приемов выполнения задач, как личность со своим опытом, интересами, эмоциями и чувствами. Пособие состоит из 6 циклов (Unit). Каждый цикл включает различные формы индивидуализации и дифференциации обучения студентов: тексты для работы в аудитории с преподавателем с извлечением полной информации («Read, say and discuss»), тексты, содержащие лексико-грамматические упражнения для самостоятельной работы в аудитории с целью извлечения основной или частичной информации («Read the text and do exercises on it in writing»), тексты, содержащие упражнения переводного характера, помогающие студентам реферировать, читать, аннотировать тексты по специальности («Read and do exercises in translation»). Выполнение упражнений в переводе предусматривает наличие знаний по грамматике в рамках обозначенных программой тем, а именно знание и умение распознавать и использовать: - конструкции, выражающие субъектно-предикативные отношения (с глаголами-связками, с глаголами, выражающими принадлежность); - грамматические явления, выражающие действие (в настоящем, прошлом, будущем) и характер его протекания; - средства определенности - неопределенности (артикль, местоимение), единичности - множественности предметов; интенсивности качества, порядка и количества предметов; - средства выражения определительных и определительнообстоятельственных отношений (конструкции с инфинитивом, причастием, герундием). 4

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Тексты имеют информационно-повествовательный характер и разработаны на основе тем, предусмотренных программой; включают упражнения, развивающие у студентов навыки работы со словарем. Данное пособие включает лексические, функционально-смысловые таблицы, которые дают возможность каждому студенту в силу своих индивидуальных способностей изъясняться на английском языке, систематизировать и обобщать информацию по различным проблемам в повседневных ситуациях общения, профессиональной коммуникации. На основе таблиц организуется как индивидуальная, так и парная работа со студентами. Ролевые игры, дискуссии, творческие задания по созданию проектов компаний организуются после работы над текстом. Для работы с мотивированными студентами в пособие включены тексты и задания повышенной сложности со значком (  ). Работа каждого цикла завершается разделом, содержащим упражнения по обогащению словарного запаса, развитию навыков самостоятельной работы у студентов, расширению культурологического и экономического кругозора.

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UNIT I. FIRST INSIGHT INTO BUSINESS ‘It is all one to me if a man comes from Sing Sing or Harvard. We hire a man, not his history.’ I. Starting – up. 1. In your opinion, which factors below are important for getting a job? Choose the seven most important. Is there anything missing from the list? age sex appearance astrological sing contacts and connections experience family background handwriting hobbies intelligence marital status personality qualifications references sickness record blood group 2. Think about jobs your relatives had and interviews they attented. Ask them questions about their worst a) boss b) jod c) colleague d) interview II.Preparing for a career. 1. Read the text and say what career you are going to choose. Now is one of the most exciting times to study business because changes are occurring faster then they ever have in history. A business is any activity that seeks profit by providing needed goods and services to others. Businesses provide us with food, clothing, medical care, transportation and almost everything else that makes life easier and better. Not everything that makes life easier and better is provided by businesses. Nonprofit organizations such as government agencies, public schools, associations, charities are organizations whose goals do not include making a personal profit for their owners. Nonprofit organizations do strive to make a profit, but such profit is used to meet the stated social or educational goals of the organization, not to enrich the owners. The knowledge and skills you will learn in your business courses will be useful for you in any organization. A person’s career is likely to consist of many jobs in many industries. But not only you are likely to have jobs but are also likely to have many different careers. A job is the specific assignment one has with a specific company. A career is a job or a series of jobs in an occupation or profession. For example, you may start off in a bank with a job as a teller and move up to various jobs such as loan officer and branch manager during your career in the banking profession. In the future, you are likely to have careers in various occupations. To prepare for 6

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a varied career or careers, you must become skilled and in what you do and be prepared to do it for different employers. You may work for several years in banking and then move to selling and then maybe start your own business. You may work in the goods-producing sector of society, the part of society that produces tangible products (products you can see, touch, inspect) such as automobiles, furniture and so forth. You may go into the service sector, the part of society that provides intangible product such as health services, financial services, business services, recreation services, repair services. Most new jobs in the service sector are now in communications – computers, media, phone systems and the like. 2. Look at the survey below, and say what factors are important for you. Compare them with a partner. Factors considered when choosing your first job: I want to: % of I want to: % of graduate graduates s I don’t want to  enjoy my job I will I would like to I will be able to 72 30 I prefer to I am going to  be passionate about the industry I work in  like the people I work  have job security 70 30 with  have enough money to  be in control of what 64 27 afford the things I do  receive training  have a lot of freedom 63 21 at work  find the work  work for a well57 18 stimulating known company  have an inspirational boss  have a good social life

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 have the opportunity to

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 work overtime or at weekends  have a job that will take me abroad  have an excellent

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take professional qualifications  work for a respected company  have a position of responsibility

salary 35 30

3. Work Put each of the following words or phrases in its correct place in the passage below. a) Applying for a job references short-list experience vacancy qualifications fill in interview applicants apply application forms In times of high unemployment there are usually very many (a)_____when a (b) ______________________ is advertised. Sometimes large numbers of people (c) ________________ , and send off (d)______for a single job. It is not unusual, in fact, for hundreds of people to (e)_____ to a firm for one post. This number is reduced to a (f)_____ of perhaps six or eight, from whom a final choice is made when they all attend an (g)_______. Very possibly the people interviewing will be interested in the (h)__________ he candidates gained at school or university and what (i)_________ they have had in previous jobs. They will probably ask for (j) __________ written by the candidates' teachers and employers. b) Choosing the right job commute salary prospects Promotion retire pension ambitious perks Increments commission Job satisfaction is important but I have a wife and baby so I have to think about money too. If a job interests me, I need to know what (a)_____ it offers and also whether there are regular annual increases, called (b)________. I want to know if I will receive a (c)______________ when I (d) ____________ at the age of 60 or 65. If the job is selling a product, I ask if I'll receive a percentage of the value of what I sell, called (e) ___________. It is also important to know if there are extra advantages, like free meals or transport, or the free use of a car. These are called (f) ___________ or fringe benefits. Are the future (g) ___________ good? For example, is there a good chance of (h) __________ to a better job, with more money and responsibility? Is the job near my home? If it isn't, I'll have to (i) _________ every day and this can be expensive. I am very keen to be 8

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successful. I am very (j) __________. I don't want to stay in the same job all my life. c) at in for to as off of a) I’m interested _____________ this job. b) What did you study ___________ university? c) He has applied _________ Lufthansa _______ a job _____ an application form. d) This job advertisement looks interesting. I’ll send _______ an application form. e) Have you filled ________ the form yet? f) You must send _________ the form by 20 May. g) He’s been _____________ that job for two tears. h) She retired ____________ the ago of 60. i) A commission means you get a percentage _________ what you sell. j) The use ______ a company car is a nice perk to have. k) The sixty applicants were reduced __________ a short-list of four. 4. Preparing for a job: CV and interviews. You want a job. Answer the following questions. How do you give yourself competitive edge? Have you decided what sort of job you really want? Yes/No Have you spoken to anyone who does the sort of job you would like to do? Yes/No Have you found out about the companies you would like to work for? Yes/No Have you spoken to anyone who works for these companies? Yes/No Do you know what skills you have gained and the skills you have lost in recent years? Yes/No Have you done anything in the last year which has developed your skills? Yes/No Do you regularly read the business pages of newspapers or professional journals? Yes/No Have you talked to a recruitment agency that specialises in your area of work? Yes/No Have you written or updated your Curriculum Vitae in the last six months? Yes/No Score 9

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Yes = 1 point No = 0 points 0-3 You need to spend more time on preparing yourself for a new job. 4-6 You have made a good start, but you still need to do more work to stand out from the competition. 7-9 You are in a strong position to get a new job. Whatever your score in the quiz, your CV can put you in a strong position. III. Types of Business Read the text and say what each type of business offers to customers. 1) Types of business: a. Service businesses; There are services provided by dry cleaners, travel agencies, lawn-care firms, beauty parlours, and other businesses that cater to people. There are also such service businesses as hotels/motels; health clubs; amusement parks; income tax preparation organizations; employment agencies; accounting firms; rental firms of all kinds; management consultants; repair services (computers, robots, VCRs); insurance agencies; real estate firms, stockbrokers; ect. There are many exciting careers available in such firms. b. Retail businesses; There are stores selling shoes, clothes, hats, skis, gloves, sporting goods, ice cream; groceries, and more. c. Construction firms; These firms are building bridges, roads, homes, schools, establishments, dams. d. Wholesalers businesses; There are a lot of wholesale food warehouses, wholesale jewellry centres, wholesale firms. Wholesale representatives often make more money, have more fringe benefits, and enjoy their jobs more than similar people in retailing. e. Manufacturing. It's still an attractive career for graduates. There are careers for designers, machinists, mechanics, engineers, supervisors, and safety inspectors. There are also thousands of small farmers who enjoy the rural life and the place of farming. Small farms are usually not very profitable, but some that specialize in exotic crops do quite well. 2) Functions of business. 1. Planning business. 10

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2. 3. 4. 5.

Financing business. Knowing customers. Managing employees (human resource development). Keeping records (accounting).

IV. Business Plan 1. Read the text and say what a business plan includes. First of all the entrepreneur needs a business plan. A business ' plan is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competitors, and the resources and qualifications of the owners. A business plan forces potential owners of small businesses to be quite specific about the products or services they intend to offer. A business plan is also mandatory for talking with bankers or other investors. To prepare a thorough plan, a person would need the assistance of a good accountant. A business plan should include the following: 1) A cover letter summarizing the major facts of your proposed business. 2) A brief in scription of the industry and a detailed explanation of the products or services to be offered. 3) A thorough market analysis that discusses the size of the market, the need for the new product (service), and the nature of the competition. 4) A marketing plan that includes location, signs, advertising, display. 5) An operating plan that includes a sales forecast, financial projections, accounting procedures, human resource requirements. 6) A comprehensive capitalization plan describing how much money the owner(s) is committing. Few banks or investors will support a new firm unless the owner(s) has a substantial financial commitment. 7) A description of the experience and expertise of the owner(s). This may include a resume, letters of recommendation, financial statements. 2. Find in the text sentences containing ing-forms, modals, Participle II, noun + noun phrase. Translate these sentences into Russian. * 3. Discussion. You are the managers of companies. Make up your own business plans.

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V. Forms of Business Ownership 1. Read the text and fill in a table using it. Consult a dictionary Business is a commercial enterprise performing all those functions that govern the production, distribution, and sale of goods and services for the benefit of the buyer and the profit of the seller. Since the beginning of the era of economic progress old ways of running business have been modified, and new forms of business organization have been introduced. This has enabled various branches of industry to adapt to changing conditions and to function more easily, efficiently and profitably; sole proprietorship, partnership, and corporation being the main three forms of business ownership. A sole proprietorship is a business owned by one person, in which all the profits belong to the owner, the latter being fully responsible for the success and the failure of the business. Unless an activity is specifically prohibited by law, no field of business is closed to an owner. Although advantages for the small business exist in this form, certain drawbacks make it undesirable for larger concerns. In the first place, the single owner is seldom able to invest as much capital as can be obtained by a partnership or a corporation. If single owners are able to invest large amounts of capital, they run great risk of losing it all because they are personally liable for all the debts of their businesses. It is due to unlimited liability that all the personal assets of the owner, including his home and car, can be sold to settle the debts of the business. Unless the owner has much personal wealth, the business may have difficulty borrowing money in critical times. A sole proprietorship may also have difficulty hiring and keeping good employees, because the business will dissolve when the owner retires or dies. A partnership is an association of two or more persons who have agreed to combine their financial assets, labour, property, and other resources as well as their abilities and who carry on a business jointly for the purpose of profit. The agreement the partners usually sign to form an association is known as a partnership contract and may include general policies, distribution of profits, responsibilities. Like the sole proprietorship, the partnership is easy to establish, and its profits are not subjected to federal corporation taxes. Financing is generally easier to obtain because the personal assets of the group are usually larger and the chances of success are higher. The major disadvantage of the partnership is unlimited liability of each partner for the debts of the business, that is, complete financial responsibility for losses. Furthermore, partners who wish to retire may find it difficult to recover their investments without dissolving the partnership and ending the business. 12

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A business corporation is an organization created by law that allows people to associate together for the purpose of making profit. Corporations are also known as joint-stock companies because they are jointly owned by different persons who receive shares of stock in exchange for an investment of money in the company. Shares represent fractions of the company's assets such as cash, equipment, real estate, manufactured goods, etc. Though the corporation is more difficult and expensive to organize than other business forms, it has a number of advantages. First, investors can limit their personal liability to the amount of money they have invested, thus, if the corporation goes bankrupt, they can lose no more than they have put in. Second, money to operate the business is obtained by the sale of stocks to the general public and this enables the corporation to exist independently of its owners. The corporation also finds it easier to borrow money from banks and it is also a successful means for attracting large amounts of capital and investing the latter in plants, modern equipment and expensive research. Salaries, large corporations can offer to managers and specialists, are high and that allows corporations to hire professional and talented employees. The great drawback of the corporate form of ownership is double taxation of profits, which means that business corporations must pay taxes on their net income, and then the shareholders are to pay taxes on the income they receive as dividends on their stock. Different kinds of reports to be filed to federal and state regulatory agencies about the corporation activity can also be considered as another disadvantage of this business form. However, in terms of size and influence it is the corporation that has become the dominant business form existing in most countries with free market economy. Forms of Ownership

Features

You may use these phrases to write features: is owned by … carries on … receive … can (can’t) invest … can borrow … is responsible for

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2. Corporation 1) Fist the text read and understand the confesist. Consult a dictionary. 1. A corporation is a business organization authorized by the state to conduct business and is a separate legal entity from its owners. It is the dominant form of American business because it makes it possible to gather large amounts of capital. 2. Before a corporation may do business, it must apply for and receive a charter from the state. The state must approve the articles of incorporation, which describe the basic purpose and structure of the proposed corporation. 3. The stockholders usually meet once a year to elect directors and to carry on other important business. Each share of stock entitles its owner to vote. A stockholder who cannot attend the meeting can legally authorize another to vote his or her shares by proxy. 4. Management of a corporation consists of the board of directors, who decide corporate policy, and the officers, who carry on the daily operations. The board is elected by the stockholders, and the officers are appointed by the board. 5. Some specific duties of the board of directors are to declare dividends, authorize contracts, decide on executive salaries, and arrange IR ajar loans with banks. Management’s main means of reporting the financial position and results of operations is its annual report. 6. The corporation form of business has several advantages over the sole proprietorship and partnership. It is separate legal entity and offers limited liability to the owners, ease of capital generation and ease of transfer of ownership. In addition, it allows centralized authority and responsibility and professional management. 7. The corporation form of business also has several disadvantages. It is subject to greater government regulation and double taxation. In addition, separation of ownership and control may allow management to take harmful decisions. 2) a) Complete sentences. Fill in «is, are» or «have, has» where necessary. - The corporation form of business also ________ several disadvantages. - It ________ a separate legal entity and offers limited liability to the owners. - The board ________ elected by the stockholders. 14

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- A corporation _______ a business organization authorized by the state to conduct business. - Some specific duties of the board of directors ______ to declare dividends, authorize contracts. b) Underline a noun, put a verb into the necessary tense form in sentences: - It (to make) it possible to gather large amounts of capital. - Management of a corporation (to consist) of the board of directors, officers. - The state (must / approve) the articles of incorporation. - Management’s main means of reporting (to be) its annual report. c) Choose the necessary modal verb. - Before a corporation may/can do business, it should/must apply for and receive a charter from the state. - Separation of ownership and control may/must allow management to make harmful decisions. - A stockholder who can/ought to not attend the meeting must/can legally authorize another to vote his or her shares by proxy. - The state may/must approve the articles of incorporation. d) Make up a sentence connecting with who, which. - The state must approve articles of the incorporation. The articles describe the basic purpose and the structure of the corporation. - Management of a corporation consists of the board of directors. Board of directors decide corporate policy. - Management of a corporation consists of the board of officers. Officers carry on the daily operations. e) Write down infinitive with «to» from §1, 3, 5. Translate these sentences into Russian. f) Choose one of the verbs to complete a sentence. - The board _______ by the stockholders (elects/is elected). - Officers ________ by the board (appoint/are appointed). - It _________ centralized authority and responsibility and professional management (allows/is allowed). - Each share of stock _______ its owner to one vote (is entitled/entitles). 15

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g) Form new words from the words given with the help of suffixes and prefixes: er, tion, ness, in, ful, sion, dis, al, or, ing, ment, ly, ship. Translate the new words. separate manage owner own finance add busy operate profession corporation report advantage direct partner regulate meet proper decide harm h) Write down Participle II from §1, 6. Translate these sentences into Russian. i) Complete sentences with what, who, how often, whom. - … are the specific duties of the board of directors? - … decides corporate policy? - … do stockholders meet to elect directors? - … is the board of directors elected? - … is a corporation? VI. Company Structure 1. Read and translate the text. Translate into your language not word for word. Consult a dictionary. 1) When the company is organized, the structure is developed that relates all workers, task and resources. This frame-work is called the organization chart. Top management is the highest level of management and consists of president, economist and other key company executives who develop strategic plans. Two terms you often see are chief executive officer (CEO) and chief operating officer (COO). The CEO is often the president of the firm and he is responsible for all the level decisions in the firm. The COO is responsible for putting those changes into life. His tasks include structuring, controlling and rewarding. Middle management includes branch and plant managers, deans and department heads who are responsible for tactical plans. Supervisory first-line management includes people directly responsible for assigning specific jobs to workers.

2. Introducing a company. 16

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Study the company structure. The Board Managing Director or Chief Executive Sales and Marketing Director

SALES AND MARKETING DEPARTMENT

Financial Director

FINANCE DEPARTMENT

SALES

MARKETING

HEADS OF SALES

ADMINISTRATION

Personnel Director

RESEARCH AND DEVELOPMENT DEPARTMENT

Research Assistants MARKETING EXECUTIVE

Sales Executives Assistants Complete sentences. … consists of … … is involved in … …is engaged in … …deals with … …has … … reports to … …organizes … … is based on … …is responsible for…

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PERSONNEL DEPARTMENT

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1. Have a look at the chart showing some qualities making a good manager. Being efficient: doing things quickly, not leaving tasks unfinished

Being decisive: make quick decisions Being friendly and sociable

Being logical, rational and analytical

Being able to communicate with people

Being able to motive, inspire and lead people

Being authoritative: able to give orders

Say:

Being persuasive: able to convince people to do things

a MANAGER Being competent: knowing his job perfectly as well as the work of his subordinates

Having good ideas

- which of these qualities seems to be most important; - which of these qualities can be taught; 5. New ways of working VII. Company Activities 1. Read the three descriptions structures. Then answer the questions. Use a dictionary to help you. Sole trader One person sets up and runs the company. The person provides all the capital and has unlimited liability for business debts, even if this means selling personal assets. Limited company In a limited company (AmE corporation), the capital is divided into shares, which are held by shareholders. Shareholders have limited liability, but they can vote at the Annual General Meeting to elect the Board of Directors. There are two types of limited company: 1) In a private limited company, all shareholders must agree before any shares can be bought or sold. 2) In a public limited company, shares are bought and sold freely, for

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example on the stock exchange. Partnership A group of people provide the capital, set up the company and manage it together. There are two types of partnership: 1) Partners in an unlimited partnership are like sole traders – if the business fails they are fully liable for all debts, and may even have to sell personal assets. 2) In a limited partnership there can be sleeping partners who do not participate in the management of the company. Sleeping partners have limited liability – in the event of bankruptcy, they only lose their investment, not their personal assets. 1. What are most people's main personal assets? 2. How can a sole trader get the capital to set up a business? Think of five methods. 3. If a limited company has 5000 shares and each share is worth £2.50, what is the capital of the company? 4. What are the advantages and disadvantages of being a sleeping partner? 5. What is the difference between a sleeping partner and a shareholder? 6. If a private limited company goes bankrupt, do the shareholders lose their personal assets? Why? 7. What must you do to sell your shares in a private limited company? 8. What are the advantages of a public limited company? Think of three. Make ten common business expressions with the words below, rcr example, sleeping partner, annual general meeting. Use some words more than once. annual company exchange meeting private stock assets unlimited general board

debts

of

public trader

liability partner sleeping

business directors limited personal

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Discuss these questions Which of the words below can describe: a) good qualities of an organization? b) bad qualities of an organization? professional impersonal cold Caring disciplined democratic decentralized paternal Hierarchical welcoming centralised slow-to-respond flat market-driven bureaucratic Which words could you use to describe your own organization or an organization you know well? 2. Read, say and discuss. Part I Companies need customers. Some companies provide goods such as clothes, cars and food. Other companies provide services, for example insurance, banking, information technology or training. Companies want repeat business, in other words, they want customers to buy from them again and again. To win customer loyalty, many companies have a code of practice, or set of rules, for customer care. The code of practice explains what the customer can expect of the company. Customers can complain about the service, or help, they receive and the goods they buy. Companies are involved in many activities, for example buying, selling, marketing and production, in a range of different industries, such as information technology, telecommunications, film, and car manufacture. Many well-known companies are multinationals, these are companies which operate in a number of countries. Multinationals often have a complicated structure. There is usually a parent or holding company. This company owns other companies or parts of other companies. These other companies are called subsidiaries. Business today is international. Business people often have to travel a lot. They have to plan an Itinerary for a foreign business trip to make good use of their time. On a business trip people may meet colleagues and business partners for the first time. It is usual for colleagues from different countries to experience cultural differences. Sometimes companies realise that they are not achieving their goals or objectives effectively, that is, they are not getting the results they need. In this case they have to re-plan their strategy. It can be useful to get an outsider, e.g. a management consultant, to analyse the company's performance and recommend changes to make it more efficient. A SWOT analysis can be useful, that is, an analysis of the company's strengths (S) 22

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and weaknesses (W) and also of the opportunities (0) and threats (T), that face the company. Troubleshooting, or solving problems, is a necessary part of running a company. Companies often include details about their history in their marketing literature, their annual reports and company presentations, in order to show that they are established, and have experience in their field. This can include information about the founder or person who started the company, and key dates and events in the company history. Retailing is the provision of goods or services to the customer. Retailers buy goods directly from the manufacturer or from a wholesaler, (the middleman), and make their income from the margin, or difference, between the price they pay for the goods and the price they sell the goods at to the consumer. A retail outlet is the place where customers can purchase goods, for example, a supermarket or a department store. Nowadays, many customers are shopping from home: shopping by Internet, TV channels, or mail-order catalogues is becoming very popular. Part II For nearly every type of product there are many similar goods on the market. The Unique selling points (USPs) of a product are the things that make it special and different from other similar products. A good advertisement, which brings the product to the public's attention, should describe these USP. The marketing department should have a customer profile in mind that is the sort of person who will buy the product. When trying to sell a product, it's important to give information about the product's feature characteristics, and to emphasise the benefits or advantages of the product to the customer. Most people work because they need to earn a salary, but money is not the only motivation or reason why people work. People get Job satisfaction from different factors, such as social Interaction with colleagues. Status, that is your professional position, and achievement, doing something well, can be important. Some companies really value their employees and see them as the company's main asset. Managing people well can lead to better results and higher productivity for the company, but this can be difficult to do. People respond differently to different styles of management. Some organizations give their workers freedom to develop their roles and others don't. Companies and individuals often borrow money, and it is important to find a favourable interest rate. Rates are variable, and can rise or fall depending on the market. Many investors, (people who use their money to earn more money), choose foreign or offshore bank accounts because 23

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they are tax-free. Anyone can buy shares in a public company and become a shareholder. All public companies in the UK are obliged by law to publish their financial results at the end of the tax year. They do this in their annual report to shareholders. Annual reports include profit and loss accounts which show turnover, or the total sum of money which is coming into the company. In an open market any number of sellers or competitors can offer goods for sale. An efficient producer, who keeps costs low, can set a low price for goods that other companies find it difficult to compete with. All companies try to gain the biggest market share possible, and compete aggressively with their main competitors to do this. Companies with the biggest market share for a product, the market leaders, may compete with their rivals on quality, image, brand loyalty or price. Major companies compete across borders in the global market place to try to enter new markets in countries where they do not have a presence. 2. Continue a dialogue. Pairwork. Prepare a list of things you would like to show to a visitor (e.g. their company’s products, pictures or works of art in their company or place of study, buildings in their town etc.). A is the host and B the visitors. A: This is our … B: It’s very nice /very interesting/. It looks beautiful etc. 3. Read the text. Use each word once to complete the paragraph. raw labour features

materials salary social interaction customer profile status labour costs benefits advertisement taxes styles of management

A company’s marketing department should decide what type of person will buy their product and have a1 ______ _______ or description of the consumer in mind. Then they can design their advertisements. A good2 ____________ should describe the3 __________ or characteristics of the product as well as the4 ___________ or advantages of buying the product. The price of a product depends on various factors. Productions cost are affected by the availability of5 ___________ or workers and the availability of6 __________ or the things needed to make the goods. How much the company has to pay the workers, or7_________ is another 24

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factor, and also the amount the government charges the company in 8 _________. The people who work for a company, or the company’s labour force are the company’s most important assets. Many different things motivate people to work, such as9____________, or money, 10 __________ or the position they have in the company and society and the opportunity for 11 ___________ _____________ and to meet other people. Different people like different things, and the way managers treat employees, i.e. their 12 ___________ _____ ___________ can be very important. 4. 1) The fashion model agency IMG solves a problem through successful troubleshooting strategies. Read the text and complete the notes after it. A model manager Company History

The problem The solution

The strategy

The result

IMG One of the best-known model agencies in the industry for many years with an excellent reputation as a fashionable, forward-looking company. The company loses its reputation as one of the best and needs a new strategy. The board appoints a new Managing Director, Jonathan Phang. He has over fifteen years of experience in the model industry. Jonathan's main tasks are to find new models; to generate more awareness of what the agency is all about, and to encourage girls from other agencies to switch to IMG. He also has to cut costs to make the agency more profitable and stop representing models who aren't making money. IMG is now attracting excellent models which means they are also attracting more clients and doing well financially.

Past problem: The company's 1__________ was in danger Solution: Recruit __________. The strategy: • Make the agency well-known. • Persuade 3_________ to join the agency • Reduce 4_________ and improve 5____ • Not represent models 6__________________ 25

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The results: • 7__________ join the company. • The company has more 8_________ . • The company makes more9 __________. 2) Use the points below to complete a SWOT analysis for IMG at the time Jonathan Phang joined the company. • In the past - one of the best known companies. • Model agency business is very competitive. A lot of other agencies are looking for good models too. • IMC no longer has a reputation for being fashionable or forwardlooking. • New MD has a lot of experience. • IMG is looking for new models. • IMG has models who are not earning money for the company. • MD has ability to make good financial decisions. • All model agencies are looking for new models. • Models switch to good agencies quickly. • Profits can be excellent for a successful company.

STRENGHTS

WEAKNESSES

THREATS

OPPORTUNITIES

*3. Role play. Decide what people say in these situations. a) A shop manager and a customer. The customer returns a silk shirt to the shop – a button is missing. b) A supplier and a customer. The supplier invites the customer to dinner. c) A marketing assistant and marketing manager. The assistant offers to phone customers to find out their opinions on a new product. 26

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VIII. ACTIVITY 1. Groupwork Interviewing Prepare a list of about ten questions that you can ask another group. The questions can be about their company, place of study, home town or country of origin. Try to use many different question words as you can (what, why, where, when, how many). 2. Complete each sentence with the present perfect of the verb in brackets and a time marker - for or since. 1) Coca-Cola (have) ________ bottling plants outside the US World War II. 2) Pepsi (be) ________ successful in Eastern Europe ________ 1959. 3) Pepsi (have) ________ an exclusive franchise in the Soviet Union _________1972. 4) Coca-Cola and Pepsi (be) ________ in competition ________ many years. 5) Coca-Cola (outsell) _________ Pepsi in many Eastern European countries _________ the collapse of the Berlin Wall. 6) Supermarkets (produce) ________ their own brands of cola ________ the last decade. 7) The Coca-Cola recipe (not change)____________ 1886. 3. Cable & Wireless is one of the world's leading suppliers of telecommunications services. Use the prompts to write a paragraph about the company. • C&W - maintain a presence in the Arabian Gulf - 1870, and today views the region as one of top growth potential • C&W - operate - Asia - over 100 years • In the Caribbean C&W - supply international connections - over a century. They - run - domestic as well as international systems - 1980s • C&W - operate in the UK - the 1980s 4. Work in pairs and take it in turns to find out more about your partner. Complete the dialogue. A. Are you working at the moment as well as studying? B. Yes, I am. I work for ... A. How long have you worked there? B. For about three months/since January. …………………………………………………… Ask about: • work (where? how long?) • where he/she lives (where? how long?) • hobbies he/she has (what? how long?) 27

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• study English (how long?). 5. Read the texts about two different companies and answer the questions. 1. What does each company offer the customer? 2. What other examples of good customer care can you think of? 1) British Airways employees who make customers unhappy must apologies in person. The company also has a number of items that it can give to customers who are dissatisfied with their service. These range from food hampers and calculators to soft toys and chocolates. 2) First Direct is the UK's leading 24 hour personal telephone bank. Our personal service lets you take care of all your banking needs by telephone, at a time and place to suit you, 24 hours a day, 365 days a year. You can call to check your balance, pay a bill, discuss a personal loan or increase your Visa Card 'limit. All calls from within the UK are charged at local rates. 6. Match the information about these multinational companies to the correct company logo. Company activities The company says Company logo REUTERS

EMI

___DHL___ WOLDWIDE EXPRESS MCKDONALD’S

1. The third largest record a 'We are committed to company in the world. It providing high quality food' is also the world's largestpublisher of songs and music. 2.The world's largest hamburger restaurant company. It has over 19,000 restaurants in 100 countries.

3. This company provides news and financial data to the business community. 4. This company is an international air-express carrier. It delivers packages and documents all over the world.

b '(We) lead the world in the provision of news and financial information to broadcasters, newspapers, financial markets and on-line services.'

c 'We aim to be the world's premier music company in all aspects of our business.'

d 'We keep your promises.'

7. ENTREPRENEURS 1) Read the text and do exercises on it in writing. Consult a 28

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dictionary. Entrepreneurs come in all shapes and sizes the dynamic, the cautious and the greedy. But all of them hold an equal fascination for us. How do they do it? What's their secret? Some of the world's biggest corporations would like to know too. For entrepreneurism is in. And these days everyone wants to be an entrepreneur. But an entrepreneur is not what you are, it's what you become, and real entrepreneurs exist only retrospect. At first, nobody takes them seriously. They're crackpots dreamers, unemployables. And by the time they've finally earned the respect of the business community they've already made it. So cancel the classes on entrepreneurship and throw out your business plan. For the road to entrepreneurial success can be mapped out in advance. You get there one sale at a time. In the beginning only the entrepreneur needs to see the goal, nobody else. And the goal is quite simple: you get an idea; you identify your customer; you make a sale. Then you make another and another and another until your office in the spare bedroom has turned into the tower block in Manhattan you always wanted. Forget about marketing strategy at this Stage. What you need first is a steady cashflow. Bide your time. Focus on the little things. That's how it works. Big companies are just small companies that got bigger. Take Richard Branson, for instance. For the founder of Virgin, the first ten years were a struggle, with his company suffering some cashflow problems until as late as 1980. By then the virgin Group was running 80 different operations, none of them making large amounts of money and some of them losing money hand over fist. Yet in 1992 Branson's music business alone sold for 560 million. Or take Nicolas Hayek, the man who invented the Swatch and brought the Swiss watch-making industry back from the dead. Hayek took on Japanese market leaders, Seiko and Citizen, and beat them on quality and price. Today he sells 28 million Swatches a year and has built a 21,6 bn company in the process. The Swatch is a 20th century icon. And, incredibly, though the price of a new one has never increased, some of the highly collectable early designs are now classed as art and fetch more than 20,000 – not bad for a plastic watch! So what is it that makes a good entrepreneur? Clearly, not the same thing that makes a good manager. For good managers tend to come from fairly conventional backgrounds. They’re the bright kids everyone knew would do well, born organizers, who rise through the ranks to reach the top of large corporations. But the budding entrepreneur is more likely to be an outsider, a troublemaker, a rebel, who drops out of college to get a 29

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job, discovers a flair for building companies from nothing, gets bored quickly and moves on. Most of all, they’ll be a muster of riskmanagement. For risk doesn’t mean the same thing to the entrepreneur as it does to the rest of us. The king of corporate raiders, Sir James Goldsmith, sums it up best: «The ultimate risk», he says, «Is not taking a risk». And that’s probably how he got to be a dollar billionaire. 2) Put the following entrepreneurial qualities into what you consider to be their order of importance. To be an entrepreneur you need: 1. drive 6. initiative 2. intuition 7. dedication 3. determination 8. guts 4. ingenuity 9. faith 5. dynamism 10. the killer instinct. 3) Which five of the above can you express by using an adjective? To be an entrepreneur you need to be: 1. ……………………… 2. ……………………… 3. ……………………… 4. ……………………… 5. ……………………… 4) Now match the other five with the definitions below: 1. To be an entrepreneur you need to have energy and motivation. 2. To be an entrepreneur you need to have courage. 3. To be an entrepreneur you need to come up with ideas and make decisions on you own. 4. To be an entrepreneur you need to be prepared to destroy your competitors if necessary. 5. To be an entrepreneur you need to believe in yourself. *5) Without referring back to the article, put the following advice on how to become an entrepreneur into the right order by numbering the 16 parts below. The first and the last parts are in the correct order. О If you want to make it to О sale at a time. You will, of course, need to take many calculated О the top, forget about putting in a 18-hour О biggest cause of business failure. Make sure you clearly identify you О established. That’s not how to beat О risks on the way to making О cashflow. For money problems in the early years are the single 30

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О target customers and settle for making one О your time and focus О market leaders until you’re well О for success, so throw out you business plan, bide О strategy at this stage and should concentrate instead on achieving a steady О day or carefully mapping out you career in advance. There’s no simple recipe О your first million, but there’s no point in thinking you can take on the О on the little things to begin with. You can do without marketing О the system. *6) Discussion These days a lot of companies try to encourage the entrepreneurial spirit inside their organizations. They talk about the ‘entrepreneur’ or enterprising manager with the intuition and nerve to take their company into the 21st century. Do you think entrepreneurism can work within a corporation? Can a manager ever be an entrepreneur? *7) Read the story and characterize the relations between entrepreneurs and the government nowadays. The first part of the Russian Civil Code was recently enacted. This is the document that is often referred to as the economic constitution. Irina Dyomina, ………………………………………………………………………… ………………………Moscow News, 1996 After the second part is passed the main law of business will be completed. The legal fundamentals of private enterprise in Russia are often contradictory. Many of the old laws, regulations and decrees are still valid while the new once, devoted to the same issues, are increasing in number and do not bother to agree with each other. The change of the main legal acts regulating the economy that were enacted in 1991-1993 has begun. The rules of economic trade are reconciled in the Civil Code, which is to lay the scheme for all civic legislation. It is for the first time in Russian history that the following fundamentals of economic relations are legally confirmed: the equality of participants in economic relations, the inviolability of property, freedom of contract, noninterference in private affairs, unimpeded exercise of right and the right to defend them in court. Entrepreneur’s Property Uncertainty for entrepreneurs often means the danger of a 31

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redistribution of property. And there are grounds for these fears. In the course of privatization and other reforms state interference is noticeable. The state was usually an owner of controlling blocks of shares while the final date of privatization was not stated in the law. This makes many people fear that their property will be redistributed and that other innovations will appear. From now on all the legal grounds to retrieve property from an owner are defined in the Civil Code. And no additional reasons could be imposed by any other legal act including a federal law. There is no legal ground for an arbitrary redistribution of what is already private property. Naturally, there some kinds of property that could only be state owned, like nuclear weapons for example.

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1. Employees complain of being overworked and ……. 2. Unions have imposed a ban on ……… 3. Reports should be handed in to your …….. by the end of the week. 4. A famous Italian car ….. firm has received a lot of profits thanks to its brand. 5. We provide a first-class …….. of service. 10. The rising level of ……. leads people to poverty. 2. Globalisation 1) Read the text and understand the contents. 2) Read the text again and choose the best answer A,B,C or D that best fits each space.  Could you tell me about the advantages and disadvantages of globalisation?  The great advantage of globalisation in my view is that it increases competition. Companies and firms have to be careful and have to order their affairs so that they compete in a global market. But I think that is outweighed by a large number of disadvantages.  The first one is that it does hurt the local government’s ability to deal with issues like welfare benefits, wages and taxes mainly because the corporation is able to say to the British Government or the French Government or the American government, “Look unless you lower your taxes on us, we’ll be moving off to South East Asia or Latin America”, and so on. And so it takes out of the hands of government the ability to control their own welfare systems and provide a decent infrastructure for their people. Now this is not so bad as long as there is some negotiation between governments and companies. But more and more in recent years, companies have started to rule the roost. The corporation … some commentator said the other day, “The corporation is the most important institution in our lives,” and I think there’s a lot of truth in that. They can now dictate to governments and I want to see some kind of give-and-take between governments and corporations. Now that’s the first problem.  The other problem that I see, of course, is one of unemployment in the Western world. As companies want to improve their profitability, they’re going to be looking for the low-cost, low-wage centers. And we’re just about to see a major change in the global economy, because of the addition of China and India to the global labour market. There are advantages in this but there’s a lot of problems as well because China and India are going to provide a skilled population. Also, they’re going to provide fairly good infrastructures for the companies that are going to go 34

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out there. So we’re going to see a flight of capital from the West which is going to be sudden and dramatic. If this is too sudden and is not managed properly we could find very severe employment problems in the Western world. So that is, I think, the kind of issue we’ve got to deal with as this process of globalisation gathers pace. 2)1 It is quite clear from the text that globalisation a) lowers taxes b) enlarges competition c) improves welfare benefits d) provides a decent infrastructure 2)2 It is said in the article that globalisation has both a) important institutions b) governments and corporations c) cross – cultural problems d) advantages and disadvantages 2)3 The main drawback of globalisation is that it creates a) profitability b) corporation c) unemployment d) global labour market 2)4 Major changes take place in the global economy because of a) the French and American governments b) a large number of disadvantages c) the addition of China and India to the global labour market d) the give – and – take relations between countries 2)5 Globalisation has a lot of advantages but there are a lot of problems because China and India are going a) to increase competition among countries b) to provide a skilled population c) to leave a global labour market d) to control welfare of the global market 2)6 To improve the profitability companies must a) Influence governments, actions b) rule the roost c) develop global economy d) look for the low-cost, low-wages centers 2)7 If China and India provide fairly good infrastructures for the companies we will certainly see a) a flight of capital from the west b) some negotiations between governments and companies c) the loss of the control out of the hands of governments 35

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d) a major change in the global economy 3) a) Discuss these questions.  What do you think globalisation means?  Do you think globalisation is a recent trend?  What global companies can you think of? What industries are they in?  Do global companies do more harm than good? b) Match the words below with their definitions? 1. infrastructure 2. issues

a) important subjects that people discuss b) money paid by the government to people in need, for example, the unemployed 3 .profitability c) basic facilities and services of a country, for example: water, power, roads 4. welfare d) a movement of large sums of money out of a benefits country 5 .flight of e) the ability of a business to make money capital 4) Answer these questions on the text. 1) Are you generally in favour of globalisation or against it? 2) Which of the points below do you agree? Advantages  Globalisation increases the power of governments.  Globalisation increases competition among companies.  Globalisation between China, India and the West will increase employment everywhere. Disadvantages  Globalisation could lead to big employment problems in the West.  Globalisation lowers people’s living standards.  Globalisation prevents governments from controlling their welfare systems.  Globalisation creates cross-cultural problems, for example, between India, China and West. 5) Complete the text below with these phrases from the interview. Use a good dictionary to help you.

give-and-take the roost

gather pace

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In some countries, international companies ………….1 and strongly influence governments’ actions. Stephen Haseler thinks there should be ………..2 between companies and governments. In the future, the process of globalisation will ………3 and the power of companies could increase. 3. Going Global

a) Answer these questions after reading the text. 2. 1.What do you know about Boeing? 3. 2.Where is its head office? 3.What do you think in-plant and out-plant mean? b) Which of these statements are true? Correct the false ones. 1. Boeing employees seem to be rather conservative and inwardlooking. 2. The chairman of Boeing believes the company must make changes. 3. Boeing used to be the train business. 4. The chairman thinks that Boeing is the most global company in the world. 5. The chairman wants people to identify Boeing a US company. “Flight plan from Seattle” By Michael Skinner In the last thirty years, Philip Condit says, not much has changed. The problem, he says, is not just that employees at Boeing think of other countries as being exotic. They take the same attitude to anywhere in the US outside Seattle, where the company has its head-quarters and its most important factories. Boeing staff talk about something as being ‘in-plant’ or ‘out-plant’. In-plant means Seattle. Out-plant means one of the group’s other locations, such as Wichita, Kansas. Condit, who became Boeing’s chairman in February, wants to change all that. Over the next 20 years, he wants Boeing to become a global rather that a US company. Boeing employees could be forgiven for thinking that being a Seattle company has served them well enough. Boeing is the world’s most successful aircraft maker. Condit believes, however, that Boeing cannot stand still. There are too many examples in aviation and other sectors of what has happened to countries that have tried to do that. Last year, in a speech to managers, he described his vision of what the group would look like in 2016, its centenary year. He told them that 37

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Boeing would be an aerospace company. It would not repeat earlier mistakes such as attempting to enter the train or boat-building business. Second, he said, Boeing would be a ‘global enterprise’. This would mean increasing the number of countries of operation. He is impressed, he says, by the way in which oil companies have benefited from losing national images. ‘BP is probably the most global company in the world. It is interesting to see that in the US its nationality has begun to disappear. Almost everybody in the US says BP and not British Petroleum. It is a local kind of company’. Royal Dutch/ Shell is another group which manages to present itself as a local company in the countries in which it operates. Would he be happy if 20 years from now people did not think of Boeing as being a US company? ‘Yes,’ Condit says. ‘I believe we are moving towards an era of global markets and global companies.’ From the Financial Times FINANCIAL TIMES World business newspaper. 4. Entering new markets A) When a company globalises, it tries to choose the best method to enter its overseas markets. Match the methods below to the definitions. Use a good dictionary to help you. 1 acquisition 2 joint venture 3 consortium 4 franchising 5 licensing 6 local partner 7 subsidiary

a) a company party or wholly by a parent company b) giving someone the exclusive right to sell products in a certain area c) selling the right to a manufacturer’s trademark, usually in a foreign market d) buying or taking over another company e) a person or company who cooperates with a foreign company who wishes to enter the market f) two or more companies join temporarily to carry out a large project g) a group of companies in similar businesses working together

B) Complete these sentences with some of the methods listed above. 1. Wal-Mart, a US retail chain, entered the Mexican market by setting up a 50-50 ………………. with a local Mexican retailer. 38

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2. When the Japanese tyre group Bridgestone entered the US market, it made an ………………. , buying the local production base of Firestone. 3. If a company wishes to enter the Chinese market, it usually looks for a …………… who will cooperate in setting up a joint venture. 4. If a company is short of capital to expand overseas, it may prefer to have …………… or ………….. agreements with local businesses. C) Correct the grammatical mistakes in these sentences. 1. Prague has become central Europe’s most glamorous city. 2. Most tallest office towers in the most cleanest cities in Kuala Lumpur. 3. Cleveland is now one of the most cleanest cities in North America. 4. In Buenos Aires foreign bankers are as common that coffee house poets. 5. The London Underground is worst than the Tokyo Underground system. 6. Ireland is not as larger as Sweden. 7. The London Stock Exchange is very older than the Singapore Exchange. 8. Their prices are very high in compared to ours. 5. Fortune Garments 1 Read the text and say what the text is about. 1) This week, the international fashion group Fortune Garments is holding its first global conference in Barcelona, Spain, Fortune Garments, one of Hong Kong’s oldest trading groups, makes high quality, clothing. It has become a global company: it has over 3000 suppliers in 17 countries, and employs staff from all over the world in its head office and factories. It is expanding rapidly in foreign markets with sales of over $ US 1.8bn. Fast delivery, innovative design, and reliable quality essential for success in the fashion business. Fortune Garments’ Chairman, Michael Chau, is proud that his company can usually accept a major order and deliver the goods to a customer within four weeks. However, globalisation has brought problems in the company’s overseas plants, and this is having a bad effect on its share price. A journalist from the Eastern Economist Review suggested recently that the company could become the target of a takeover if it didn’t sort out problems soon. Managers from all the overseas plants are attending the conference. Michael Chau has asked them to consider the problems outlined in the discussion document below. 39

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2) Many subsidiaries make clothing from materials supplied by several of the company’s plants. Although this helps to lower costs, the materials are often of poor quality. This has resulted in cancelled orders. Recently, a German distributor refused a consignment of 50,000 blouses. The goods simply did not meet its quality standards. Cancellation of the order cost Fortune Garments half a million dollars in lost sales. 3) Orders have also been cancelled because Fortune Garments’ subsidiaries are not responding quickly to customers’ needs. When customers want last-minute changes to clothing the plants cannot meet customers’ tight deadlines. For example, an Australian fashion chain cancelled an order because the US plant was not able to make minor changes to some silk jackets in time for their summer sale. The lost sale cost Fortune Garments over $US 400,000. 4) When the company was smaller, it had the same low-pricing strategy, but the design of its clothing was outstanding. However, nowadays, the company seems to have lost its creative energy. Its latest collection were described by a famous fashion expert as boring, behind the times and with no appeal to a fashion-conscious buyer’. Other experts agreed with this opinion. The problem is that ideas are not shared between the company’s designers. According to one designer, “There’s not enough contact between designers at the different production centers. The designers never meet or phone each other, and they rarely travel abroad.” Michael Chau is aware that morale is low among managers and lower-level staff. He has asked a business consultant to investigate the reason for this. Here are the consultant’s main findings. 5) 1. Managers of subsidiaries say they are underpaid. They are demotivated and feel their contribution to the group’s profits is undervalued. 2. The majority of managers say they should have a share in the profits of their subsidiary (5%-10% was the figure most commonly mentioned). 3. All managers reported that they did not have enough freedom of action. They want more autonomy and less control from head office over finance, pay, and sources of materials. 4. Managers need more advice on quality control, and would like more contract with staff from other subsidiaries. 6) 1. Staff turnover is high in most factories. Industrial accidents are common, mainly because health and safety regulations are not being properly observed.

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2. Factory workers complain about their wages. They are paid according to local rates, which in some countries are very low. They are often expected to work overtime without extra pay. 3. Administrative staff said their offices are overcrowded and badly ventilated (e.g. too hot in summer, too cold in winter). 4. Supervisors from head office are often of different nationality from their staff. This causes communication problems. Many factory workers said they did not always understand their supervisors’ instructions. 2 Look at the list of headings A –G/and then read the text again. After each paragraph look down the list and choose the heading that fits best. There is one extra heading you don’t need. A Quality Control B Design C Management D Background E Responding to customer needs F Factory workers and administrative staff G Profitability 3 Group work. Produce an action plan to solve Fortune Garment’s problem. 6. * Read the text and say why Russian businessmen try to penetrate into Bahvein. What Awaits Russian Businessmen in Bahvein Bahrein, a small island country in the Persian Gulf with population of 650,000, begins to play a particular role in the plans of Russian businessmen. Owing to its rich oil reserves, Bahrein has turned, over the trading in pearls into a center of commercial and banking activity for the whole region. Today, with oil reserves running thin, the country’s leadership has switched to the policy of diversifying the economic pattern. As a result of it, 47 off-shore banks with the gross assets totaling $60 billion are operating in Bahrein at present. Apart from that, many leading American and West European companies have transferred their region offices there. Russian businessmen have recently started “settling” Bahrein. The Russian embassy opened in Manama three years ago, and Aeroflot planes land in Bahrein once a week. Russian businessmen pay episodic and short-term visits to Bahrein. Unfortunately for the time being only adventuristic private companies or weak state-run structures with limited 41

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financial resources display interest in developing cooperation with Arab country. Among Bahrein companies actively seeking to cooperate with Russian special mention should be of Zayani. This group, headed by the director of the National Bank of Bahrein, had already proposed several interesting projects to Russian, for instance, the construction of paid covered parking lost in Moscow. However, none of the projects have been implemented because of red tape delays on the Russian side. At the same time Russian tourism to Bahrein is steadily growing in scope at the rate of seventy to eighty tourists per week. These are mainly so-called shuttle-traders who buy in Bahrein its cheap TV and radio devices, computers and consumer goods. Russians also go to Bahrein on vacation. Not too expensive but comfortable hotels, sea beach, swimming and burning, shopping- all this make the vacation a real pleasure. According to V. Kashirsky, head of the Russian trade mission in Bahrein, nearly 800 Russian businessmen visited the country in 1993, though only a few of them achieved tangible results. Local companies which actively cooperate with Chinese, South African or British firms have a rather vague idea of the possibilities of Russian businessmen. That is why, Kashirsky believes, the best way for a Russian firm to penetrate the local market is to be presented by the Bahreini Chamber of Commerce and Industry. This will provide the firm, free of charge, with the possibility to establish contacts with the interested business circles of the region, sign important contracts and examine commodities offered by the Bahreini side. Today Russian companies which seek to place roots in Bahrein offer their services in prospecting oil and drilling oil wells (in particular, Hermes), and also in construction a large tanker sea port. In great demand are Russian metal structures, time and saw-timber. Officials of the Bahreini Chamber of Commerce and Industry told your correspondent about their willingness to buy Russian gold, diamonds and other precious stones for the firms which specialize in manufacturing jewellery. Prospects of Russian banks for penetrating Bahrein’s banking market are also promising. Since the terms for opening and functioning of foreign banks’ divisions in Bahrein are more favorable than in other Persian Gulf countries, Russian banks could use their offices in Bahrein to conduct financial and commercial transactions in the whole region (for instance, Mezhcombank intends to open its division in Bahrein in the near future). In general, there are quite good possibilities for Russian businessmen to consolidate their presence in Bahrein today: these include a favorable visa 42

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regime (as distinct from neighboring Qatar, Saudi Arabia and Kuwait), the desire of the Bahreini Chamber of Commerce and Industry to cooperate with Russian businessmen and number of spheres where bilateral contacts may be useful to both countries.

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Unit 3.Consumer cooperation. I. Starting – up. 1. Match the words (1-15) connected with consumer cooperation with their meanings (a-o). 1. consumer

5. procurement

a) a feeling of pleasure because one has sth or has achieved smth b) the action of manufacturing, growing, extracting things esp in large quantities c) the job or work of providing food etc. for social events d) the practice of selling goods in small quantities to the general public e) an owner of shares in a business company

6. production

f) a person who buys goods or uses services

7. catering

g) involving acting or working together with one another or others for a common purpose h) the process of obtaining

2. cooperation

3. purchase 4. satisfaction

8. retail 9. wholesale

14.partnership

i) doing sth or working together for a common purpose j) the selling of goods in large quantities to shopkeepers for them to sell to the public k) work done or duties performed for a government, company l) a group of two or more people working together as partners m) the process of cooking smth by dry heat in an oven n) the people living together in a house

15. household

o) to buy smth

10. shareholder 11. cooperative 12. baking 13. services

2. Fill each of the gaps in the following sentences with one of the words listed. 44

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Households, service, cooperative, cooperation, procumbent, catering, wholesale, consumers, satisfaction, production, retail, shareholders, being baked, partnership, purchase. 1………..are encouraged to complain about faulty goods. 2. A report is produced by the government in……….. with the chemical industry. 3. She can look back at her career with great …………. . 4. He is charge of weapons ………… . 5. We can observe a fall in industrial ………… . 6. Who did the ………….for your son’s wedding? 7. The manufactures recommended………….price $900. 8. The………….market is worth developing. 9. ……………were pleased with their profits. 10. The………….movement started in Britain in the 19th century. 11. The bread is…………. 12. The food is good in this hotel but………….is poor. 13. She worked in ………….with her sister. 14. Most ………….now own a television set. 15. The receipt is your proof of a…………….

2. Business Activities of Consumer Cooperation. 1) Read the text. For statements below the text choose the answer a, b,c or d which you think best according to the text. Consumer cooperation is a large multipurpose business system of Russia. The law on consumer cooperation states the main goal of consumer cooperation system in the following way: satisfaction of shareholders' and general public needs in goods and services. Consumer cooperation in the interests of shareholders is engaged in trade, procurement and production activities as well as in different kinds of services including paid ones. The main sector of consumer cooperation is trade. The concrete provider of trade services is retail trade, which possesses a broad network of retail trade enterprises: stores, stalls, kiosks, moving shops and so on. Consumer societies including district consumer societies are mainly engaged in retail trade. To supply retail trade units with food and nonfood goods consumer cooperation is engaged in wholesale trade. 45

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The enterprises of wholesale trade include wholesale trade warehouses and bases, which on a contract basis purchase goods from production enterprises belonging to consumer cooperation (own production) as well as from enterprises of other forms of ownership, from worker cooperatives and citizens. The main index of retail trade is retail turnover. The retail turnover is sales of goods for individual consumption. Retail trade units and public catering units are mainly those companies, which are engaged in retail trade. Public catering is of great importance in meeting the needs of shareholders and general public in goods and services. This system includes different enterprises: cafeterias, restaurants, snack bars and so on. This system on has its own peculiar features, which are expressed in the combination of production function while cooking food and its sales (trade function). Consumer cooperation is a large multipurpose procurement system. It is engaged in purchases of more than 60 types of agricultural products and raw materials: meat, milk, eggs, honey, potatoes, vegetables, fruits, berries, and so on. Consumer cooperation enterprises purchase goods from agricultural companies belonging to different forms of ownership: associations, partnerships, agricultural cooperatives, and farmers households. Industrial production is an important sector of consumer cooperation. Consumer cooperation is engaged in bread baking, processing of agricultural produce and raw materials, production of different types of consumer goods, construction materials, and equipment for trade system. Baking of bread is a leading sector of a cooperative industry. Consumer cooperation organizations provide to population both paid and free services mainly trade and production. Here belongs services on providing information to the clients on certain goods and services, organization of cafeterias at large retail stores, hauling of big size goods to consumers' homes, small repairs of technically complicated equipment and so on.

1.1 It is quite clear from the text that consumer cooperation presents: a) the enterprises of wholesale trade. b) a large multipurpose procurement system. c) information to the clients. d) a large multipurpose system of Russia. 46

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1.2 Trade is divided into: a) cafeterias and restaurants. b) moving shops and stalls. c) cooking food and its sales. d) retail trade and wholesale trade. 1.3 Wholesalers buy goods from: a) production enterprises, cooperatives, citizens. b) production enterprises, shareholders and cafes. c) agricultural companies, cooperatives. d) partnerships, farmers. 1.4 Consumer cooperation is based on: a) interests of shareholders. b) consumer societies. c) industrial production. d) small repairs of complicated equipment. 1.5 Procurement is the main sector of: a) general public. b) consumer cooperation. c) public catering. d) trade enterprises. 1.6 The main objective of consumer cooperation is: a) to express peculiar features. b) to produce raw materials. c) satisfaction of consumers in goods and services. d) to haul big size goods to consumers.

3. International Cooperative Movement. Read the text and do exercises on it in writing. Consult a dictionary. 1) Pre-reading. Check the meaning of the following words in your dictionary:

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Movement global unite research characterize possess distinguish acquire agrarian gain momentum credit insurance irrigation pharmaceutical veterinary funeral managerial machinery steady

International cooperative movement is a global social and economic movement, which unites national cooperative movements. The international cooperative movement is a mass social and economic movement of the present day, which unites more then 800 million people-members of cooperatives of different types supported by governments and international organizations, research workers, public and political leaders. Cooperative movement is characterized by various types of cooperatives a lot of many of which possess a lot of common features according to which they can be classified. Agricultural processing cooperatives are distinguished according to the type of raw materials they process: milk, coffee, rice, and others. These cooperatives buy, process, and sell commodity goods produced by agricultural producers. Consumer cooperatives sell consumer goods. They distinguish consumer cooperatives, which are engaged in retail trade, wholesale trade, and public catering. At present consumer cooperatives acquire more and more features of multipurpose cooperatives. Sales cooperatives are distinguished according to the type of commodity goods they sell. These cooperatives are the most numerous ones in the agrarian sector of economy. Supply cooperatives buy means of production and trade and supply them to their members -producers of goods and private traders. Supply and sales cooperatives are gaining more and more momentum. Construction cooperatives are engaged in construction of houses, industrial buildings and roads. Credit cooperatives provide production and consumer credits. They distinguish credit cooperatives of goods producers and credit cooperatives of citizens (credit unions). Credit cooperatives can e their members both financial and non financial services. Service cooperatives provide services to the population and enterprises. Among them we can name such as cooperative insurance associations, irrigation cooperatives, medical and pharmaceutical, veterinary, project, funeral cooperatives, cooperatives, which provide 48

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managerial services. At present service cooperatives have gained a considerable development, especially those cooperatives, which provide social services to the population. Multifunctional cooperatives are also known as mixed, multipurpose or general purpose cooperatives. They are distinguished according to the sphere of their activity. For example: multipurpose cooperatives in agriculture are engaged in sales, processing, supplies, transport, storing, trade, insurance services, repair of machinery and others. The growing number of multipurpose cooperatives is a steady trend in the cooperative movement.

2) While reading. Answer the questions on the text. a) What idea does the text present? b) How is cooperative movement characterized? c) What are cooperatives divided into?

3) Post reading Find sentences which don’t correspondent to the contents of the text. a) agricultural processing cooperatives are distinguished according to the type of raw materials they produce: milk, coffee, rice; b) sales cooperatives are distinguished according to the type of commodity goods they sell; c) construction cooperatives are engaged in services; d) credit cooperatives provide production and consumer credit. 4) Choose the word A-D that fits best each gap (1-4) a) International cooperative movement is a … movement. 1. processing 2. national 3. social and economic 4. holding b) Credit cooperatives provide their members… 1. construction of houses raw materials 49

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2. financial and non financial services 3. raw materials 4. public catering

1. 2. 3. 4. 1. 2. 3. 4.

c) Construction cooperatives are engaged in… small repairs of equipment industrial building retail trade insurance services d) Cooperative movement is characterized by… international organizations agricultural processing a steady trend various types of cooperatives

5.1 Complete the sentences 1-8 using the most appropriate words (a-h). 1. Credit cooperatives provide 2. Consumer cooperatives sell 3. Sales cooperatives are distinguished 4. There are cooperatives 5. The international cooperative movement unites 6. Service cooperatives provide

a) according to the type of commodity they sell. b) which provide managerial services. c) production and consumer credit. d) commodity goods. e) according to the sphere of their activity. f) service to the population and enterprises. g) consumer goods.

7) Agricultural cooperatives buy process and sell 8) Multifunctional cooperatives are h) more then 800 million peopledistinguished members of cooperatives of different types.

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5.2 Fill in the table The name of the cooperative.

Its functions.

1. 2. 3. 4. 5. 6.

5.3 Read story again and say what types of activities different cooperatives are engaged in. Use the following words: …is/are distinguished… …is/are engaged in… …provide… …is based on… …process, sell, supply… …is/are divided…

4.The development of cooperative movement in Russia. 1. Read the text paying no attention to gaps and say how cooperation with Alliance influence on Russian cooperative movement. The first cooperative in Russia was set up by Decembrists in 1831. The whole history of Centrosoyuz is the 1_________ of consumer cooperative movement in Russia, which witnessed the periods of growth and crisis. In the conditions of market economy consumer 2_________ movement faced the problem of survival. Centrosoyuz of the Russian federation is constantly working to protect the interests of the movement, defines the 3_________ and tactics of its development. The main goals of the Centrosoyuz are the following: strengthening of democratic basis of 51

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the cooperative movement, complying with cooperative principles and values, broadening ties with ICA. The consumer cooperative system was created by the service the 4 _________ of the people. Today it is a unitied business structure which possesses developed material and technical basis and 5 __________ practically all rural population. More than 14.5 million shareholders are members of the cooperative and their number is constantly growing. Russia’s consumer cooperative system has been a 6 __________ of International Cooperative Alliance since 1903. It is facing many problems at present but it will be able to 7 __________ many mistakes in this development. The Alliance is providing Russia’s cooperatives with real 8__________, giving the opportunities to get acquainted with the experience of cooperative movements in different countries of the world. The cooperation with Alliance will be strengthening and broadening. This awareness is supported by the fact that the consumer cooperative system of our country is 9 ___________ on the international arena. Russia is a 10 ____________ country. Its enormous area, federative structure, mentality of its people make it different from other countries of the world. But 11 __________ in the international cooperative movement unites us with the rest of the world. Cooperative movement of Russia remains alive proving its adherence to cooperative principles: free will, 12 _________, independence, equality, self–help and self–responsibility, justice and solidarity. The existing problems are of temporary character and they will be overcome. Russia’s consumer cooperative system will take its adequate 13 _________ in the international cooperative movement. 2. Read the text again and choose the word that fits best each gap. help, special, participation, cooperative, interest, member, serves, recognized, democracy, history, strategy, avoid, place

Trade I. Starting – up 1. Mach the words (1-10) connected with trade with their meanings (a-j). 52

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1 trade 2 brand 3 quality 4 merchandise 5 invent 6 counterfeit 7 logo 8 network 9 promotion 10 discount

a) to make or design sth that has not existed before b) goods bought and sold c) a closely linked group of people, companies d) a type of product manufactured by a particular company; trade mark e) the amount of money taken off the usual cost of sth f) how good or bad sth g) the process of raising sb or being raised to a higher position or more important job h) the exchange of goods and services for money or other goods; buying and selling i) to copy coins, writing in order to deceive j) a printed symbol designed for and used by a company or society as its special sign eg. In advertising

2. Fill each of the gaps in the following sentences with one of the words listed.

discount, network, invented, quality, trade, brand, merchandise, counterfeit, promotion 1. In the past ten years Japan’s ___________ with Europe has greatly increased. 2. Our product is the __________ leader. 3. This paper is very poor ___________ . 4. Over 200 stalls offer a wide choice of __________ . 5. Laszlo Biro __________ the ballpoint pen. 6. This ten – dollar bill is __________ . 7. They set up a __________ of financial advice centers. 8. He has just got a job with excellent ___________ prospects. 9. We offer a 10% __________ for cash.

II Retailing 53

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1.1 Read the text and answer the following questions bellow the text paying no attention to the gaps. The retailer performs the last stage of the production process for it is he who puts the goods in the hands of the actual customers. 3 ._______________________________________________ . There are four types of retail institutions: 1) speciality stores; 2) supermarkets; 3) general merchandise stores; 4) nonstore retailing. 5. ___________________________________________________________ ___. These stores having a better feeling of their market compete against giant department stores. They can adjust more quickly to market conditions. Big supermarkets are usually well located. All the goods are arranged on trays and shelves. All the prices are clearly marked. The goods are ready -weighed and beautifully packed. There you can find everything you need.1. _______________________. General merchandise stores (QMS) carry a wide variety of products. There are three types of GMS: a) department stores; b) discount stores; c) hypermarkets. Big department stores started in America more than 50 years ago, and then idea was brought to European countries. These stores are wonderful places.6. _____________________________. All the things for sale are displayed so that they can be easily seen, and the customers walk around and choose what they want. The store is divided into departments: women’s clothes, men’s clothes, shoes, toys, sports goods, china and glass etc.2._______________________________________________. You will also find a room where you can rest if you are tired. There’s an office where you can book seats for the theatre or arrange to travel anywhere in the world. Low price is the major attraction of the discount stores.4. ________________________________________. The stores keep long hours and usually open on Sundays .Hypermarket is a type of discount store that was developed in Germany. They are very large stores with low-price and high-turnover products. Hypermarkets achieve cost savings by simplifying their unpacking and display. There are three major types of nonstore retailing: a) vending machines; b) door-to-door sales; c) catalogue sales. 1. How many types of GMS are there? 2. What is the department store like? 54

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3. How are goods arranged in supermarkets? 4. What is the main characteristic of discount stores?

2. Read the missing sentences A-F and then read the text again. Choose the sentences which best fits each gap (1-6). a) The prices are reasonable. b) There may be a restaurant with an orchestra and sometimes a tea – room as well. c) His work is «to have the right goods in the right place at the right time». d) These stores sell the most popular items, colors and size. e) Often speciality stores sell one type of product, such as clothing, jewelry, furniture, books. f) People can do all their shopping under one roof.

III WHOLESALING 2.1) First read the text paying no attention to gaps. Then read the text and use the word given in capitals at the end of each line to form a word that fits in the space in the same lane. Wholesalers are the institutions, which stand between the _________ Manufacture and the retailer. A wholesaler buys goods in bulk from producers and sells them in small quantities to retailers. In doing so, he helps the _______ Product process. If you had an intention to be a successful manufacturer, you would make high quality products at a reasonable price for selected markets. If you intended to be a wholesaler, you would learn how to serve the market. Wholesaler economizes the distribution. The most _______ function Important of a wholesaler is to contract manufacturers and potential customers. Thus, nine contracts and deliveries are necessary if three firms supply directly three retailers, where each producer deals only with a wholesaler, reducing the total number of transactions to six. 55

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Wholesalers are used for information and advice. ________that customers Suggest make to the retailer are passed to the wholesaler who conveys them to the manufacturer. Thus, the latter can ______his product. Improvement A wholesaler keeps stocks. Shoppers like to obtain goods immediately. This requires stocks. Often, however, neither the producer nor the _______ Retail has extensive storage facilities and responsibility falls on the wholesaler. Moreover, he arranges imports from abroad. Foreign manufacturers can rarely bother to ship small parcels to individual retailers abroad. They prefer to deal with a wholesaler, an important merchant with established trade _______ . Connect Wholesalers may be classified into three groups: manufacturerowned________ Operate merchant wholesalers, merchandise agents and brokers. Manufacturers can establish their own wholesaling office or branch, the latter providing more services to its customers. Depending on the industry or _______ location, merchant wholesalers are called distributors, Geography jobbers, or dealers. Among merchandise agents there are ________ Sell agents, brokers, commission agents and action companies. They are all compensated by either a commission or a ________ fee. Broker

2.2) Rewrite these questions beginning with the given words a) Does a wholesaler buy goods in bulk from a producer? Could you tell me ____________ . b) Who economizes the distribution? Could you let me know ____________ . c) What does a wholesaler keep? I’d like to know ____________ . d) Where does a wholesaler arrange imports? I wonder ___________ . e) How are the wholesalers classified? Can you find out ____________ 56

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2.3) Compare the two texts “Retailing” and “wholesaling” and make up a chart to present trade in the best way.

3) a) Describe the store: age, location, size and say what type of retail outlet it is. Selfridges is department store which began trading over 85 years ago. It is based in Oxford Street and is London’s second largest department store after Harrods, with 150,000 m2 of retail space. In the 1990s the store experienced some problems with its image because people thought it was old-fashioned. To solve the problem, Selfridges invested £50m to re-establish the business as one of the capital’s main shopping attractions. They decided to offer a wide choice of products to attract more customers. They built a huge central ‘atrium’ entrance hall and a series of new stores. Some of the stores are re-designed and others, such as children’s World, have their own restaurant.

Why we don’t like shopping b) Work in pairs. Look at the bar chart which shows reasons why people don’t like shopping.

-Discuss these questions

Queues

428

Crowds

18

Finding products

1. What are the two main reasons people don’t like shopping? 57

8Parking 7 Not enough time

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2. What can retailers do about these two problems in your opinion? -Do you like shopping? Why? -What do you think about catalogue shopping, Internet shopping and 24 hour shopping?

5 Carrying it 4 Inconvenient opening hours 3 Cost/pricing 2 Packing/unpacking 1

c) Shopping 1. Kinds of shop. What would you buy in the following shops? florist’s butcher’s grocer’s stationer’s 2. Going shopping.

greengrocer’s tobacconist’s newsagent’s

baker’s pet shop antique shop

Put each of the following words or phrases in its correct place in the passage bellow. cash desk refund mail order

sales try on bargain

tag fit bill

label receipt cashier

off-the-peg assistant exchange

If you to buy a ready-made (or we sometimes say (a)……….) jacket, first find the jackets in the shop and look at the (b) ……….inside to see the size, material and make. For the price, look at the price-(c)……….. .To see if it will (d)………..you, you can (e) ……….the jacket in front of a mirror. If necessary an (f) ………will help you. You pay the (g) ………, who you will find at the (h)………He or she will take your money, put it in the (i) ………..and give you your change. Make sure you also get a (j) ....…... which you should keep and bring back to the shop with the jacket. If something is wrong with it and you want to (k)……….it or ask for a 58

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(l)………of your money. In clothes shops you pay the fixed price, of course. You don’t (m) ……….. Or you can wait until the (n) ……..,when many goods are reduced in price. If you don’t like shops, you can stay at home, look at catalogues and newspaper advertisements and do your shopping by (o)…… 3. Explain the difference between… (a)to overcharge and to undercharge (b) a shopkeeper and a shoplifter (c)shopping and window- shopping (d) a wholesaler and retailer 4. Put one the following words in each space in the sentences below. in on for with at by inside back (a)These jackets are reduced ……….price. (b) The assistant advised me to try the coat…….. (c)I want to look ………..the animals ………the pet shop. (d) He bought many things ……….mail order. (e)There is normally a label ………..a jacket. (f) I took it ……….to the shop to complain. (g) ‘Is something wrong ………..it? ’he said. (h) I asked ……….a refund.

d) The consumer often buys a product or service from a retail outlet. Match the types of retail outlet with the correct definition. Retail outlet 1 supermarket 2 hypermarket 3 shopping centre/mail

4 department store 5 specialist retailer

Definition a) a very large supermarket often located on the edge of a town or city b) one of the groups of shops owned by the same company c) a large shop with many departments or sections-each department sells a different type of goods d) a large sell-service shop selling food and drink and also small household items e) a covered area with shops, supermarkets and restaurants 59

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6 chain store

f) a shop which only sells one type of product, usually of high quality

e) Work in groups and discuss retailing in your country. 1. Do the types of retail outlet above exist in your country? Can you name a well – known shop/outlet in each category? 2. Which shops are popular with local people and which are more popular with tourists? 3. Which shops have a reputation for quality? For reasonable prices? For exclusive or up market products? Now ask which retail outlets students in your group buy the following goods from: food clothes

drink

jewellery

stereo equipment

computers

f) Other methods of selling are direct and do not use retail outlets. Match a definition to each example of direct sales. Direct sales 1 mail order 2 door-to-door sales 3 TV sales 4 the Internet (ecommerce) 5 cash and carry

Definition f) customers can buy from the manufacture’s warehouse g) a company sends goods by post from its warehouse h) customers see product adverts on the screen and place their orders by phone/fax/the Internet i) an agent for the company sells the product or service to the customer at home j) electronic shopping from companies’ websites

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g) Work in pairs. Role play either the fashion designer or the general manager. Fashion Designer You are a self-employed young fashion designer at the start of your career. A large store is selling T-shirts which look exactly the same as some of your new designs which you haven’t sold yet. You meet the general manager of the store to make your complaint and ask for financial compensation. General Manager You are going to meet a young designer who thinks you have stolen their designs. It is quite common for the store’s design team to get ideas for products from student fashion shows and art school exhibitions. Be sympathetic, but admit nothing.

h) Match the country, the thing, the name of the inventor and the year of the invention. Years, countries may be mentioned more than once. Inventions Inventors Countries Years telephone John Logie Bairds the USA 1908 television Ian Wilmat Germany 1905 first car assemly S.Korolyev Russia 1997 line R.Diesel Hungary 1885 ballpoint pen A.Graham Bell Switzerland 1939 cloning Karl Benz Scotland 1957 artificial satellite Nicephore Niepce Demark 1829 vacuum cleaner Bill Gates Japan 1837 telegraph L. Biro America 1876 petrol-driven O.K.Christansen France 1892 motor car Henry Ford 1981 photography S.F.B. Morse 1955 diesel James M.Spangler 1908 Microsoft-Disk- Sony 1939 Operation Nestle 1975 61

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System helicopter Lego bricks instant coffee video cassette recorder

I.Sikorsky

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Brands Brand management. Brand Classic

Awareness

Manager

Image

Stretching

mage Luxury

Leader

Loyalty

a) Look at the eight word partnerships with the word brand. Match them to the definitions below. Use a good dictionary to help you. 1. A brand associated with expensive, high quality products 2. The person responsible for planning and managing a branded product 3. The brand with the largest market share 4. A famous brand with a long history 5. the ideas and beliefs which consumers have about a brand 6. The tendency of a customer to continue buying a particular product 7. Using a successful brand name to launch a product in a new category 8. The knowledge which consumers have of a brand I Fashion piracy 1) Discuss these questions before you read the article. ▪ Do you own a product which I can be illegal copy of a well – known brand? If so, what is it? Where did you buy it? How much did it cost? ▪ How can manufactures protect their brands from piracy (illegal copying)? 2) Mach these words and phrases with the definitions. 1 global offensive objectives

a) plans of a company to achieve its

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2 counterfeiter

b) agreements which allow a company to

Calvin Klein is tired of piracy, says Alice Rawsthorn, and has started a global offensive against counterfeiters

make and sell a registered product locally 3 copyright abuse c) taking strong action all over the world 4 a network d) a person who copies goods in order to trick people 5 merchandise e) to copy someone else’s work, for example their designs, without permission 6 corporate strategy f) a large number of people or organisations working together as a system 7 logo g) goods for sale 8 licensing rights h) to change the way something is organised 9 to rip of I) the symbol of a company or other organisation 10 restructure j) to sell illegal copies of a brand as if they are the real thing

3) Read the article quickly to find out: 1. which Calvin Klein products are commonly copied. 2. why the problem is getting worse 3. how the company is dealing wit hit 4) Read the article again and answer these questions. 1. Why was Calvin Klein’s attitude to counterfeiting in the past? 2. Why has the company changed its way of dealing with counterfeiters? 3. Why has the company done to change the way its business operates and to increase its size?

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Fashion victim fights back Walk into a street market anywhere from Manila to Manchester, and someone will be selling T-shirts branded with the distinctive CK logo of Calvin Klein, the New York fashion designer. If the price is very low, the T-shirts are probably fakes. Calvin Klein, like most other internationally-known fashion designers, has, for a long time, had problems with counterfeiters selling poorquality merchandise bearing his brand name. Now he is doing something about it. Ass the Calvin Klein brand has become wellknown, we've seen a big increase in counterfeit activity,' says Gabriella Forte, chief executive of Calvin Klein. The betterknown the brand name, the more people want to rip it off.' In the past Calvin Klein took a relatively passive approach to the counterfeit problem. The company has now got tougher by establishing a network of employees and external specialists to uncover copyright abuse. The move began with a general change in corporate strategy whereby Calvin Klein has aggressively expanded its interests outside North America. Calvin Klein has been one of the leading fashion designers in the North American market since the mid1970s. Now Calvin Klein is building up his fashion business in other countries. It has increased its investment in advertising, and restructured its licensing arrangements by signing long-term deals with partners for entire regions such as Europe or Asia, rather than giving licensing rights to individual countries. But as sales and brand awareness have risen, Calvin Klein has become an increasingly popular target for Asian and European counterfeiters alongside other luxury brands such as Gucci, Chanel and Ralph Lauren. The fake goods, mostly T-shirts, jeans and baseball caps, not only reduce the company's own sales but damage its brand image by linking it to poor quality merchandise. You'd be amazed at how many people pay $5 for a T-shirt without realizing it's counterfeit,' said one executive. FINANCIAL TIMES World business newspaper.

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5. Complete the memo with the past simple or present perfect forms of the verbs in brackets.

Memo

TO:

Peter Schofield FROM: Jaqueline Delacroix DATE: 5 July

RE: Counterfeiting I’m worried about the sales of the range of fragrances we …………….1(launch) two years ago. In the first year, sales ………………2 (increase) steadily. However, since the beginning of this, sales ……………..3(fall) by almost 10%. The reason for this is clear. Several firms in SE Asia ………………4(copy) our designs and are now flooding the French market with them. This ……………5(become) a serious problem. Last month, I ……………6(organise) a team of investigators. Up to now, they………….7(find) many counterfeit goods, which the police …………..8(seize) and impounded. Yesterday, I …………….9(contact) several firms who …………….10(inform) me that they …………….11(have) similar problems. This all ……………12 (lose) sales because of counterfeiting.

6. Three promotions Read the three case studies below. Read the three case studies below. Then discuss the questions that follow each one. McDonald’s The famous fast food company, McDonald's, 66

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launched Campaign 55 to help it compete against rivals like Burger King and Wendy's. They had a six-week promotion costing $320 million. McDonald's offered a Big Mac (a type of hamburger) for 55 cents instead of $1.90. When customers were at the cash register, they found that they had to buy french fries and a drink at the full price to get the cheap burger. -Why do you think this promotion was unpopular with McDonald's customers? -How do you think McDonald's dealt with the situation?

Pepsi The Pepsi Cola company had the idea of offering a Harrier jump jet (see picture) as a 'joke' promotion. The advertisement was first shown in the Seattle area in the US. It showed a teenager

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Irish Tourist Board modelling some merchandise available as part of the Pepsi Stuff promotion. At the end, a Harrier jet landed outside the school and the boy came out of the cockpit saying, 'It sure beats taking the bus to school.' The promotion rules allowed customers to save up Pepsi Stuff points by collecting labels from Pepsi drinks or buying them directly for 10 cents each. The advert stated - jokingly - that 7 million points were needed for someone to claim the jet. A business student, John Leonard,

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campaign to promote Ireland as a modern country offering good food and company. It was put on all the Tourist Board's promotional material. The television and advertising campaign included music by the well-known group The Cranberries and showed pictures of a romantic, fun-loving Ireland. It was very successful abroad. Tourism increased by 14% in four months. Unfortunately the Irish people didn't like the new logo. The Minister of Tourism ordered the Tourist Board to get rid of the logo and bring back the shamrock - or something similar.

• What prize do you think john Leonard is claiming from Pepsi Cola? •What to did take he doPepsi to claim the to intends Cola prize?regarding the promotion court •Why doheyou think Pepsi because thinks they should Colahim havethe described give prize. his claim as frivolous (not serious)?

The Irish Tourist Board used to have the shamrock (see picture) as its symbol. Recently it spent £100,000 developing a new logo to attract tourists to Ireland. The logo showed two people with their arms outstretched in welcome. A tiny shamrock can be seen between the two bodies. The new logo was part of a

•Why do you think the Irish people disliked -the logo so much? •Was the Minister right to get rid of the logo? •Which logo do you prefer?

7. Taking part in meetings Questionnaire a) You work for a marketing agency representing a well-known chain of book shops. Answer the questionnaire below, inventing the information you need. What is the name of your client’s company? Who are their target customers (age, social, class, etc.)? Do they specialise in any particular type of book? Do they sell any other products? Do they offer discounts or other special services? What is their brand image? 68

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What is their share of the market? Who is their main competitors? Where are their shops located (city centers, suburbs, train stations and airports, etc.)? b) Recently sales have fallen. Hold a meeting to discuss the possible reasons. Make suggestions to improve your client's sales and its brand awareness amongst its target consumers. Use phrases from the Useful language box

Decline in book sales over four quarters

1st quarter Useful language Interrupting

Asking for opinions Agreeing Making suggestions How do you feel about…? That’s true.

Hold on… I think we should… Could I just What do you think? How about…? Something? What’s your opinion? agree. Why don’t we…? Sorry, but… Giving opinions suggestions I think… think it’s a good idea.

I agree. I

totally

Disagreeing

Rejecting

I’m sorry, I’ don’t agree.

I don’t

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In my opinion…

I’m afraid I don’t agree. I’m not keen on

it. Maybe, but

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Quality Quality is the elimination of variation Starting-up a) Which of the words and phrases below best represents the idea of quality? reliable value for money longlasting well-known expensive well-made b) Give examples of high quality products or services. Explain your choices. c) There is a saying ‘You get what you pay for.’ What does it mean? Do you agree with this idea? 1. Quality control and customer service. a) Use the words in the box to complete the flow chart re-launched reliability 1. А modified durability ) tested failed recalled U launched s e A DEFECTIVE PRODUCT identified duct was launched two years ago. T he pr o

Shortly after that, complaints were received about its ............ and............. . 25

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B e c a u s e o f

as .............. so that any faults could be investigated. At the same time, it was withdrawn from sale. After extensive tests, a fault was . ……...by engineers. As a result, they were able to correct the fault and the product was............. It was then ...........……..under controlled conditions.

m a Finally, the redesigned product was ..............in the r market. k e Unfortunately, it..............due to lack of consumer t confidence caused by bad publicity f e e d b a c k , i t

B) Match the words and phrases in the box to the correct headings. Use a dictionary to help you

w after sales care consumer satisfaction questionnaire compensation faults monitoring defects routine checks flaws inspection minimum standard goodwill payment warranty zero defects 26

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PROBLEMS Routine checks QUALITY CONTROL CUSTOMER SERVICE

2. Defining quality A) Read the first paragraph of the article. Then complete the sentence below. In the past, quality meant .. ; nowadays, business people believe that quality means .. .

B) Read the article. Then correct the five factual mistakes in the summary. New – style quality

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Old – style excellence got a bad name, says Tony Jackson The aim should be to provide a product consistently and make it the best you can balance sheets. The company's executives seemed honestly puzzled. They did not see the point of all this, they said. Their products were the finest in the world. Why all these detailed questions about numbers? Rolls Royce, the company in question, duly went bust in 1973. The trouble with old-style quality, it seemed, was that it encouraged supply-driven management.

The term 'quality' is one of the most misused in the business world. What exactly does it mean? Our grandparents would have, been in no doubt. Quality meant excellence: a thing was the best of its kind, and that was that. A Stradivarius violin had quality; a tinker's fiddle did not. In business, however, the word has acquired a very different meaning. As defined by the American statistician Edward Deming some 50 years ago, quality means consistency, a lack of defects. Around 1970, it is said, a group of investment analysts visited a world-famous UK engineering company. They asked the questions of their trade: about profit margins, stock control and 28

The engineers would make the product to the highest possible standard and price it accordingly. If the public was so uncultured that they turned it down, so much the worse for the public. And so old-style quality got a bad name in business harder. circles. It was all very well for artists to produce masterpieces. The job of companies was to please the market. Further damage to old-style

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quality was done by the rise of Japan. When Japanese cars, toys and television sets first reached the market in the US and UK, local manufactures considered them cheap trash. In the beginning, they were. But under the teaching of Edward Deming, the Japanese were learning about the second definition of quality. Western customers then began to realise that while Japanese cars might be tin cans, they did not keep breaking down, as did British and American cars. In time of course, Japanese cars stopped being tin cans, and became stylish and comfortable vehicles instead. That is, they achieved oldstyle quality as well. As western manufacturers discovered to their cost, that was in some respects

the easy bit. New-style quality was harder. Quality has a third meaning; that of value for money. To qualify for that meaning, a product must be of certain standard; and it should convey a sense, not of outright cheapness, but of being sold at a fair price. The US fast foods group McDonald's, for instance, talks of its 'high quality food'. But at 99c or 99p, its hamburgers are as close to absolute cheapness as

any person in the developed world could desire. They are also highly consistent. Eat a McDonald's anywhere around the world and the results will be roughly similar. But as anyone who has eaten a really good American hamburger knows, a McDonald's is also a long way from quality in its original sense. From the Financial Times FINANCIAL TIMES World business newspaper.

New-style quality, summary According to the article, quality used to mean that a product was well-made and high-priced. Nowadays, quality has a different meaning for business people. It means a product is reliable and does not have things wrong with it. In 1980, a group of analysts visited Rolls Royce. They asked many 29

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questions about finance, but few about quality. It is not surprising that Roils Royce-went bankrupt; they sold their cars too cheaply in their markets. The old-style idea of quality became popular with business people because it emphasised the importance of good production methods. The Japanese learned a lot from Edward Deming. Their products sell well in western markets because they are low-priced. The US company, McDonald's, sells products which are cheap and excellent value for money. According to the writer of the article, McDonald's hamburgers are the best in the world.

С) Discuss these questions. 1 Why were the Rolls Royce executives 'puzzled' when the analysts asked their questions? 2 According to the writer, what mistake caused Rolls Royce to go bankrupt?

3 What advantage did Japanese cars have compared with British and American cars? D) Complete the definition below. Nowadays, high quality products have three essential features: 1 …………………………………………………………………… …………………………………… 2 …………………………………………………………………… …………………………………… 3 …………………………………………………………………… …………………………………… 30

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E) Match these phrases from paragraph two to the definitions. 1 profit margins 2 balance sheets cost and 3 stock control company has,

a) checking supplies of goods b) the difference between manufacturing selling price c) statements of the amount of money a including money it owes or is

owed F) Find words or phrases in the article which mean: 1 reliability 2 went bankrupt 3 management focus on production 4 refused to buy the product 5 badly-made goods sold at low prices G) Which sentence means the same as these quotations from the article? 1 And so old-style quality got a bad name in business circles. a) Business people did not try to produce well-made products. b) Business people no longer accepted this idea of quality. c) Business people tried to find another name for quality. 2 It was all very well for artists to produce masterpieces, a)It was right that artists should try to produce masterpieces. b)Artists don't have to produce masterpieces. c) All artists produce masterpieces at some time. H) Can you think of products that are made according to: a) old- style quality? b) new-style quality? Make two lists. Then compare lists with a partner.

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3. Telephone complaints

a) Useful language COMPLAINING

DEALING WITH COMPLAINTS

Making the complaint I’m ringing to complain about... 'm sorry, but I'm not satisfied with ... Unfortunately there's a problem with

Showing understanding Oh dear! Sorry to hear that. Mmm, I see what you mean. I'm sorry about the problem /delay.

Explaining the problem The CD player doesn't work. There seems to be a problem ... We haven't received the ...

Getting the facts Could you give me some details please? What happened exactly? What's the problem exactly?

Insisting It really isn't good enough. I'd like to know why ... Threatening If you don't replace the product, I'll complain to the manager. If you can’t deliver on time, we’ll have to contact other suppliers

Making excuses It's not our policy to replace items. It's not our fault that it hasn't arrived. I'm afraid that's not quite right. Promising action OK, I’ll look into it right away I promise you I'll check the details and get back to you.

b) Study the Useful language in the box above. Then complete the dialogue below with appropriate phrases. 29

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Salesperson Hello. Electrical goods department. Customer Oh, hello. I'm 1 ..................................... the video recorder I bought from your store six months ago. Salesperson Oh, ...................................... 2 . Could you give me some details, please? Customer There ..................................... 3 when you try to take the video out of the machine. I want to exchange it for a new video recorder. Salesperson I'm afraid it's not .. ................................... 4 . We'll send it to the manufacturer for repair. Customer It really ..................................... 5 . It's the second time it's happened ...................................... 6 exchange it for a new machine, ..................................... 7 have to take further action. c) One of you is Production Manager for a power tools manufacturer. The other is a supplier of components. Role play the following telephone call. Production Manager Ring your supplier to complain about some electric motors (order No PV205) which have a number of defects (don't fit, not up to usual standard, etc.). Supplier • Deal tactfully with the complaint. • Show understanding. • Get the facts. • Promise action. 30

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3. Western Airport 1) Read the text and find out why this company has a lot of problems.

Background Western Airport, in the British Midlands, is operated by Unf the Western Airport Authority (WAA). In the last five ortu years the number of passengers it handles has greatly natel increased. Many airlines now use the airport for long- y the haul flights to North America and the Far East. grow th in 30

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business has brought problems. A recent survey showed that passengers had many complaints about the terminal. Several airlines have threatened to route their aircraft through other airports unless WAA take action to improve the situation. WAA must decide how to deal with the complaints and consider what action should be taken. Changes should not require great expenditure as WAA have cash flow problems at present.

Complaints about the terminal

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1 The terminal is hot and noisy. Queues at check-in are long, and delays are common. 2 Some of the gates are a long way from the Departure Area. ‘We walked ..miles to get to our plane.’ 3 After disembarking, passengers couldn't find the luggage collection hall. 'We wandered around for ages,’ 4 The baggage conveyor system often breaks down, 'When this happens, the staff just look worried and shout into their mobile phones.’ 5 The ground staff don't know enough about the terminal. 'They can't answer a simple question like, "Where's the BA check-in?".’ 6 Some passengers say the security officers are too strict. Because they are so thorough, flights are sometimes delayed. Also, when they search passengers and luggage the scanning equipment does not work properly. 'One officer thought the' Christmas pudding in my hand luggage was a bomb!’

2. Read the text and decide which statement A, B, C or D fits best. 2.1 The Western Airport Authority comes across serious problems because of the a) baggage conveyor b) dissatisfaction of clients c) security officers d) growth in business 33

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2.2 It follows from the text that Western Airport has problems with a) complaints about terminal b) the restaurant c) bars d) all of these 2.3 The customer is displeased with a) servicing b) long – haul flights to North America c) great expenditure d) Christmas pudding 2.4 To improve the situation the company should a) require great expenditure b) increase the number of flights c) not delay flights d) consider what actions to undertake 2.5 It is quite clear from the text that the staff a) are incompetent and inefficient b) look strict c) feel unimaginative d) can’t relax 2.6 Other companies warned WAA that they should a) take actions to improve situation b) know much about the terminal c) search passengers d) route their aircraft through other airports 2.7 Changes should not be connected with great expenditure a) as WAA face cash flow problems b) use the airport to the Far East 34

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c) d)

expect a tip after servicing decide how to deal with flights

3. Read the text again and make up a new strategy using a SWOT analysis of the company. Take into account all components of the analysis: ▪ strengths ▪ weaknesses ▪ opportunities ▪ threats

Complaints about the restaurant and bars Tin restaurant and bars are run by Airfare, a food company which has a five – year contract with the airport. They are used by four types of customers: business people, tourists, airport-employees; and groups (sports teams, clubs, associations, etc.). Complaints made by customers were as follows: 1 'The restaurant menu is unimaginative. The main dishes are either steak, ham or chicken. Surely the airport can do better? 2 Airport staff, who use the restaurant frequently, say the meals are too expensive. 3 Smoking areas are not large enough, and there is no clear division from non-smoking areas. 4 Passengers can't relax because they don't know when they have to board their planes. 5 There is nowhere for passengers to put 35

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their hand luggage. 'I was afraid someone would steal it, so I couldn't enjoy my drink.' 6 The bar staff look unhappy and overworked. Some are rude to passengers. 'Bar staff seem to expect a tip after serving every drink.' 4) a) Task 1 Role play the situation. You are a representative of one of the following: • The Customer Relations Department of WAA • A major airline • Airfare 1 Consider the complaints and come up with ideas for dealing with them. 2 Hold a meeting of all three groups. Decide what action to take to improve customer service. The meeting should be led by the Manager of the Customer Relations Department. b) Task 2 Role play the situation. You are either • The Manager of the Customer Relations Department • A dissatisfied customer The Customer Services Department Manager telephones an important customer who often uses the airport to tell them about the plans for improvements. The customer is very unhappy with the poor customer care at the terminal. They are tired of listening to excuses for the delays, noise, poor food, etc. This time, they expect to receive more than promises. An expensive free offer is the least they expect.

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c) Writing You attended the meeting as a representative of either the Customer Relations Department, an airline or Airfare. Write a memo to the General Manager of your company. Inform them of the decisions that were taken to improve the service at the airport. Memo: To: From: Date: Subject:

5. You own a wine business in Slovenia. You decide to write to Connoisseur because you want to become a distributor for them in your country. Match the halves of the sentences below. Then use them to write the letter. Describe the benefits your company can offer, and give references. 1 Our company is a 2 We specialise in

7 We would appreciate it if 8 If you are interested in our offer

3 We have contacts 4 Our sales network

9 We can supply references

10 We hope you will 5 We have four warehouses6 We would be willing to 37

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a)distributing high quality wines. b)we could discuss the rate of commission and your terms of payment later. e) is one of the biggest in the country. d) well-known and reputable firm with many years' expedience. e) we could be appointed your sole distributor. f) from a bank and our local Chamber of Commerce. g)accept our offer: and we look forward to hearing from you soon. h)share the costs of an advertising campaign to promote your wines. i) with major retail outlets throughout the country. j) Located in Slovenia’s major cities.

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Activity 1. Now complete the sentences using words from the box. barcode counter till display

packaging

manufacturer

checkout

stock

supplier

price

1) A…………..is the pay desk in a self- service shop. 2) A…………...is a pattern of thick and thin lines that represents information. 3) A……………is a film which makes or produces goods. 4) A……………is an electronic screen which shows you how much to pay. 5) A…………… is an agent who provides goods or services. 6) The………….is used to protect goods and to present an image for them. 7) The………….is the amount the goods cost. 8) The………….is all the goods a retail outlet keeps to sell to its customers. 2. Think of a product to match a package.

a carton of a bag of a packet of a can of a bottle of a tin of a box of a tub of a jar of a bar of

1 2 3 4 cola 5 6 7 8 9 10

a) Which nouns are uncountable? 34

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3. Describe any product you have bought recently using this chart. OPINIO FAC N T size / leng th stylish

colo wher what ur e it's it's from mad e of leath briefcas e er beautiful glass handle briefcas e straps trim briefcas e 4. strap briefcas e locks briefcas e locks Which of the above verbs also have noun forms? What are they? For example, to increase-an increase. DECLINE INCREAS

sha pe/ widt h

GAIN ROCKET

DROP PLUMMET 35

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DOUBLE LEVEL OFF DECREASE PEAK

FALL TRIPLE FLUCTUARE RISE

HALVE RECOVER IMPROVE

5. Complete these sentences about the graphs below with appropriate prepositions. 1. 2. 3. 4. 5. 6.

Sales have increased ………..f5m ………..f7m. Sales have increased ………f2m . There has been an increase………….f2m in our sales. Sales now stand………..f7 million. Sales reached a peak……………..f7 million in July. Sales reached a low point…………..f1 million in April.

6. Read this newspaper report and put the verbs into the most suitable form. SHOP ROBBERY In Paxham yesterday a shop assistant (1)______________(force) to hand over £500 after (2)_______________ (threaten) by a man with a knife. The man escaped in a car which (3)_______________ (steal) earlier in the day. The car (4)_______________(later/find) in a car park where it (5)__________________ (abandon) by the thief. A man (6)________________ (arrest) in connection with the robbery and (7)________________ (still/question) by the police. Unit 4. Marketing. I. Buyers, sellers and the market 1) Study these notions. a) Customers and clients

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Company Products/services Autocomp car Customer / client products: base Best Travel components services: package holidays Digby and professional Charles services: architecture Digitco products: cheap computers

customer base customer base client base or clientele customer base

People who buy 'everyday' services such as train travel or telephone services are called customers. You can also talk about the users or end-users of a product or service not be the people who actually buy it. People who buy products or services for their own use are consumers. b) Buyers and sellers A person or organization that buys something is a buyer or purchaser. These words also describe someone in a company who is responsible for buying goods that the company uses or sells. These people are also buying managers or purchasing managers. A person or organization that sells something is a seller. In some contexts, for example selling property, they are referred to as the vendor. People selling things in the street are street vendors. Street vendors

c) The market The market, the free market and market economy describe an economic system prices, jobs, wages, etc. are not controlled by the government, but depend on want to buy and how much they are willing to pay. d) Word combinations with 'market'

forces pressu

the way a market economy makes sellers production people

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res

market

place

prices reform s

want, at prices they are willing to pay producers and buyers in a particular market and the way they behave prices that people are willing to pay, rather that fixed by a government changes a government makes to an economy, becomes more like a market economy

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II. Marketing and market orientation 1) Study these notions and say what marketing includes.

a) Marketing Marketing is the process of planning, designing, pricing, promoting and distributing ideas, goods and services, in order to satisfy customer needs, so as to make a profit. Companies point out how the special characteristics or features of their products and services possess particular benefits that satisfy the needs of the people who buy them. Non-profit organizations have other, social, goals, such as persuading people not to smoke, or to give money to people in poor countries, but these organizations also use the techniques of marketing. In some places, even organizations such as government departments are starting to talk about, or at least think about their activities in terms of the marketing concept. b) The four Ps The four Ps are product: deciding what to sell price: deciding what prices to charge place: deciding how it will be distributed and where people will buy it promotion: deciding how the product will be supported with advertising, special activities, etc. A fifth P which is sometimes added is packaging: all the materials used to protect and present a product before it is sold.

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The four Ps are a useful summary of the marketing mix, the activities that you have to combine successfully in order to sell. The next four Promotion units look at these activities in detail. To market a product is to make a plan based on this combination and put it into action. A marketer or marketeer is someone who works in this area. (Marketer can also be used to describe an organization that sells particular goods or services.) c) Market orientation Marketers often talk about market orientation: the fact that everything they do is designed to meet the needs of the market. They may describe themselves as market-driven, market-led or marketoriented. 2) a) Choose the best word or phrase to fill each gap. Put a circle around the letter, A, B or C of the answer you choose. Our company makes wooden garden furniture - mainly tables and chairs. Sales are much higher this year because we have spent a lot on (1)…… . First we did a survey to find out about customer (2)……… . Then we redesigned all our (3)……… to include the special (4)…… that people want. Our (5)……….included a competition in all the major gardening magazines where the prize was a set of our furniture. Most importantly, we've made sure all our (6) ………are very competitive because our customers want value for money.

1 2 3 4 5 6

A A A A A A

selling wants products goods presenting prices

B distributing B needs B benefits B profits B promotion B costs

C marketing C uses C services C features C persuasion C charges

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b) Complete each sentence by writing the correct word in each gap. Some letters have been given to help you. 1 We advertise on TV, but that's not enough. We need a whole new marketing con . 2 We need to tell customers about the special ben that our service provides. 3 Our company is market-ori . Everything we do is about giving buyers what they want. 4 The pac doesn't only protect the goods - it advertises them too. 5 I've been a m k r for ten years and I know how to promote any product. 6 People in different parts of the country buy different things, so 'p______' is one of the four Ps of marketing. c) Choose the best word from the brackets () to fill the gap. 1 You can't maximize sales unless you get the marketing ………. right. (mix/change) 2 Our company is market-………..and so we regularly talk to focus groups. (promoted/driven) 3 The new model has lots of new including air-conditioning, (services/features) 4 Jim Scott is in charge of our new range mobile phones, (promoting/orienting5 Our travel service offers customers many including free insurance. (characteristics/benefits) 6 If your business is not market- , you may find that your product doesn't sell. (fed/led) III Products and brands 1) Study these notions. a) Word combinations with 'product' catalogue a company's products, as a group (BrE) catalog (AmE) mix portfolio

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product

line range lifecycle positioning placement

a company's products of a particular type the stages in the life of a product, and the number of people who buy it at how company would like a product each astage to be seen in relation to its other when a company pays for its products, or to competing products products to be seen in films and TV programmes

b) Goods Goods can refer to the materials and components used to make products, or the products that are made. Here are some examples of these different types of goods: Consumer goods that last a long time, such as cars and washing machines, are consumer durables. Consumer goods such as food products that sell quickly are fast-moving consumer goods, or FMCG. Raw Finished goods

c) Brands and branding A brand is a name a company gives to its products so they can be easily recognized. This may be the name of the company itself: the make of the product. For products like cars, you refer to the make and model, the particular type of car, for example, the Ford (make) Ka (model). Brand awareness or brand recognition is how much people recognize a brand. The ideas people have about a brand is its brand image. Many companies have a brand manager.

materials

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Branding is creating brands and keeping them in customer's minds through advertising, packaging, etc. A brand should have a clear brand identity so that people think of it in a particular way in relation to other brands. A product with the retailer's own name on it is an own-brand product (BrE) or own-label product (AmE). Products that are not branded, those that do not have a brand name, are generic products or generics.

d) Read the article and answer the questions. Most people and many managers do not understand the role of marketing in modern business. Marketing is two things. First it is a strategy and set of techniques to sell an organization's products or services. This involves choosing target customers and designing a persuasive marketing mix to get them to buy. The mix may include a range of brands, tempting prices, convenient sales outlets and a battery of advertising and promotions. This concept of marketing as selling and persuasion is by far the most popular idea among both managers and the public. The second, and by far more important concept of marketing, focuses on improving the reality of what is on offer. It is based on understanding customers' needs and developing new solutions which are better than those currently available. Doing this is not a marketing department problem, but one which involves the whole organization. For example, for Rover to beat Mercedes for the consumer's choice involves engineering new models, developing lean manufacturing processes, and restructuring its dealer network. Creating company-wide focus on the customer requires the continual acquisition of new skills and technology. Marketing is rarely effective as a business function. As the chief executive of Hewlett Packard put it: 'Marketing is too important to leave to the marketing department.' Such companies understand that everybody's task is marketing. This concept of marketing offering real customer value is what business is all about. 1. Which of the four Ps are mentioned here?

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2. Does the author think the four Ps are a complete definition of marketing? 3. Does the author think that marketing is only for markets? e) Match the sentence beginnings (1 – 5) with the correct endings (a – e). 1) Farms are now more market-oriented a) such as Microsoft and Sony, are in several 2) Since the 1980s, Britain has had a much markets at once. more market-led b) and the audience decides the direction 3) Many market-led growth businesses, it takes. 4) Lack of investment and market orientation c) led to falling sales and profits. 5) American TV is a market-driven industry, d) and less dependent on government money. e) approach to economics.

IV Price Study these notions. a) Pricing

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b) Word combinations with ‘price’ a good period for sellers, when prices are rising boom quickly controls government efforts to limit price increases a reduction in price cut an increase in price hike price when competing companies reduce prices in war response to each other a company that is first to reduce or increase prices leader label attached to goods, showing the price; also tag means 'price' c) Upmarket and downmarket Products, for example skis, exist in different models. Some are basic, some more sophisticated. The cheapest skis are low-end or bottom-end. The most expensive ones are high-end or top-end products, designed for experienced users (or people with a lot of money!). The cheapest entrylevel skis are for beginners who have never bought BrE: upmarket, skis before. Those in between are mid-rang. If you downmarket buy sophisticated skis to replace basic ones, you AmE: upscale, trade up and move upmarket. If you buy cheaper downscale skis after buying more expensive ones, you trade down and move downmarket. Downmarket can show disapproval. If a publisher takes a newspaper downmarket, they make it more popular, but less cultural, to increase sales. d) Mass markets and niches Mass market describes goods that sell in large quantities and the people who buy them. For example, family cars are a mass market

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product. A niche or niche market is a small group of buyers with special needs, which may be profitable to sell to. For example, sports cars are a niche in the car industry.

V. Place Study these notions. a) Distribution: wholesalers, retailers and customers

distribution channel

A distribution network

Wholesalers

PRODUCERS

DISTRIBUTOR

Retailers

COSTUMERS

A wholesaler or shop selling a particular product, such as cars, is a dealer. A reseller sells computers. Wholesalers and retailers are distributors. Wholesalers are sometimes disapprovingly called middlemen. b) Shops A shop (BrE) or store (AmE) is where people buy things. Companies may call it a retail outlet or sales outlet. Here are some types of shop: • chain store: part of a group of shops, all with the same name. • convenience store: small shop in a residential area and open long hours. • deep discounter: a supermarket with very low prices. • department store: very large shop with a wide variety of goods, usually in a town centre. • drugstore: shop in a town centre in the US which sells medicines;

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you can also have coffee and meals there. • hypermarket: very large shop with a wide variety of goods, usually outside a town. • supermarket: very large shop, selling mainly food. In Britain, a shopping centre or shopping precinct is a purpose-built area or building in a town centre with a number of shops. Outside towns, there are shopping malls, where it is easy to park. Franchises are owned by the people that run them (franchisees), but they only sell the goods of one company. That company (the franchisor) provides goods, organizes advertising, and offers help and support. In return it takes a percentage of the profits of each franchisee. Many restaurants are also run like this. c) Direct marketing Hi, I'm Beatrice and I work in a direct marketing company in Brussels. We organize mailings for many different products and services. This is direct mail but people often call it junk mail. We target our mailing lists very carefully: for example, we don't send mailshots for garden tools to people who live in apartments! We also do telemarketing, selling by telephone, including cold calls to people who have had no contact with us before. People are often rude to the workers in our call centres when they do this.

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VI Promotion Study these notions. a) Advertising

The Internet is a new advertising medium. Product endorsements are when famous people recommend a product. A series of advertisements for a particular company or product is an advertising campaign. A person or business that advertises is an advertiser. An organization that designs and BrE: ad, advert, manages advertising campaigns is an advertising advertisement agency. AmE: ad, Sponsorship is where companies sponsor (pay advertisement some of the costs of) events like concerts and sports events. b) The sales force A company's salespeople (its salesmen and saleswomen) visit customers and persuade them to buy its products. Each member of this salesforce may be responsible for a particular region: his or her sales area or sales territory. The head of the sales force is the sales manager.

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c) Promotional activities Promotion (uncountable) is all the activities supporting the sale of a product, including advertising. A promotion (countable) describes: • a special offer such as a discount • a free gift: given with the product. or reduced price. • a free sample: a small amount of • competitions with prizes. the product to try or taste. Supermarkets and airlines give loyalty cards to customers: the more you spend, the more points you get, and you can exchange these points for free goods or flights. Cross-promotion is where you buy one product, and you are recommended to buy another product that may go with it. VII Sales and costs 1) Study these notions. a) Sales 1 Sales describe what a business sells and the money it receives for it. Denise van Beek of Nordsee Marine is having a sales meeting with her sales team: 'Our sales figures and turnover (money received from sales) in the last year are good, with revenue (money from sales) of 14.5 million euros, on volume of 49 boats. This is above our target of 13 million euros. We estimate our sales growth next year at ten per cent, as the world economy looks good and there is demand for our products, so my sales forecast is nearly 16 million euros for next year. I'm relying on you!' A sales meeting

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b) Sales 2 here are some more uses of the word ‘sale’: a) Make a sale: sell something b) Be on sale: be available to buy c) Unit sales: the number of things sold d) Sales: a company department e) A sale: a period when a shop is charging less than usual for goods f) The sales: a period when a lot of shops are having a sale c) Costs The money that a business spends are its costs: • direct costs are directly related to providing the product (e.g. salaries). • fixed costs do not change when production goes up or down (e.g. rent, heating, etc.). • variable costs change when production goes up or down (e.g. materials). • cost of goods sold (COGS): the variable costs in making particular goods (e.g. materials and salaries). • indirect costs, overhead costs or overheads are not directly related to production (e.g. administration). Some costs, especially indirect ones, are also called expenses. Costing is the activity of calculating costs. Amounts calculated for particular things are costings d) Margins and mark-ups Here are the calculations for one of Nordsee's boats: • selling price - 50,000 euros • direct production costs - 35,000 euros • selling price minus direct production costs = gross margin 15,000 euros • total costs = 40,000 euros • selling price minus total costs = net margin, profit margin or mark-up = 10,000 euros

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The net margin or profit margin is usually given as a percentage of the selling price, in this case 20 per cent. The mark-up is usually given as a percentage of the total costs, in this case 25 per cent. 2) a) Choose the best word from the brackets () to fill the gap. 1 ...................................... The new - model will be sale in July, (at/on/in) 2 ...................................... The shop was having a so I got these shoes at half price, (sale/sales/sell) 3 It's easy to ........ a sale if the product's good and the price is right. (do/make/give) 4 Last month,........ sales reached nearly 1500. (unit/piece/number) 5 Sales last month were below our of €120,000. (gross/target/share) 6 Staff salaries are included in our costs. (direct/indirect/overhead) 7 Our basic model has a selling of £28. (cost/margin/price) 8 We estimate that sales . next year will be about 5%. (growth/forecast/volume)

b) Choose the best word to fill each gap from the alternatives given in the box below. There are some words that you don’t have to use. 'I've just finished……. the new computer we are launching next year. Direct ……….. costs will be $480. I estimate our …….. to be about $20. That gives …………. costs of $500. -We want a……….. -up of about 20% so the sale price will be $600. That gives a ……….. margin of nearly 17%. Not bad.' forecast production costing total profit mark revenue overheads

c) Find the answer to each clue. The first and last letters are given in each case.

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1) Selling price minus total costs: _____margin 2) Abbreviation for the variable costs in making goods _____ 3) Selling price minus direct costs: margin _____ 4) Number of things sold: sales _____ 5) Money received from sales _____ 6) Money received from sales (another word) _____ 7) Another word for indirect costs _____ 8) Estimate of next year's sales _____

VIII Marketing strategy 1) Read the text with the help of a dictionary and answer questions on it below the text. After his management training course at Smallcrown-Liverpool Ltd. Alexander Kuznetsov realized the important role of marketing in a commercial company's activity and the necessity of having a marketing department in the structure of an enterprise. Having had a preliminary discussion with a marketing agency specialist, he decided to make up a report for Smallcrown-St. Petersburg Ltd. management. He titled his report "Marketing Strategies Nowadays". Some fragments of this report are given below. *** Originally marketing was meant to help avoid overproduction, now marketing is considered to be a system of all business activities of a company in respect of coordinating supply and demand for the goods produced. Before producing and selling the goods, one must do a lot of market research. Useful information for this purpose can be obtained from

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embassies, consulates and foreign trade representatives, from trade magazines or from specialized consultant agencies which will do a professional market research job a certain fee. The information needed is whether there is any demand for your goods, what is the market potential, what sort of competition is to be met (that is what price of the goods, including those produced locally. Seasonal factors should be taken into account. Actually, marketing covers not only market research, but also planning the assortment of goods, price policy, advertising and promotion of sales, controlling the sales and post-sales servicing. So nowadays general marketing strategy includes such essential elements as planning, market research, new product development, sales, communications and advertising. " Planning. While speaking of marketing planning, one should think first of all of the so-called controllable and uncontrollable factors. The controllable factors are the following: product, price, place and promotion; the uncontrollable ones - environmental factors. Both these types are very important when one starts analyzing the market situation. Research. Market research is concerned first of all with product choice study and the study of competitors’ interests and their claims. The most popular methods of conducting marketing research are observation, survey, experiment and public opinion polls through different channels. Production. Attitudinal research should affect the product to be produced, so production is inevitably based on marketing intelligence study. Marketing investigates stages before, during and after production and also the stage following sales. Sales. Sales are always involved with customers service of all kinds. Markets for consumer products are segmented on the basis of demographic and psychographic data research. Communications and advertising. The communications mix comprises advertising, public relations, direct mail and special events such as product shows, conferences and exhibitions. Advertising is an important means of promoting the goods that have been produced already, as well as new lines in business. Nowadays there are special departments and agencies dealing with advertising. Different kinds of mass media —

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cinema, magazines, posters are used for advertising aims. Special leaflets, booklets and other printed matter with the information about goods may be published for the same purpose. The choice of media for advertising depends on the kind of goods and on the local conditions and people's habits.

1. 2. 3. 4. 5. 6.

What was marketing originally meant? What aspects does marketing cover? What is planning based on? What does research include? What do sales comprise? What are the main sources of communications and advertising?

2. Read the text again and find in the text words which have the following meaning 1)

advertising of something sold

2)

an activity such as special advertisements or free gifts intended to sell a product or service

3)

a public notice offering or asking for goods

4) 5) 6) 7) 8) 9)

the theory and practice of presenting, advertising and selling things an industry that produces advertisements to be shown on television, printed in magazines, newspapers a plan or series of plans for achieving an aim, relating to the best way for an organization to develop careful study or investigation in order to discover new facts or information the means of communicating roads, railways, telephone lines between places, radio or television a particular area or position

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10)

an object or objects wrapped in paper or packed in a box: a parcel

11)

a thing that is grown or produced usually for sale

12)

a person who buys

13)

an amount of money for which something may be bought or sold

14)

a person who sells something

15)

the giving of something to a number of people

1. 2. 3. 4. 5. 6.

What was marketing originally meant? What aspects does marketing cover? What is planning based on? What does research include? What do sales comprise? What are the main sources of communications and advertising?

2. Read the text again and find in the text words which have the following meaning 16)

the advertising of something sold

17)

an activity such as special advertisements or free gifts intended to sell a product or service

18)

a public notice offering or asking for goods

19) 20) 21)

the theory and practice of presenting, advertising and selling things an industry that produces advertisements to be shown on television, printed in magazines, newspapers a plan or series of plans for achieving an aim, relating to the best way for an organization to develop

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22) 23)

careful study or investigation in order to discover new facts or information the means of communicating roads, railways, telephone lines between places, radio or television

24)

a particular area or position

25)

an object or objects wrapped in paper or packed in a box: a parcel

26)

a thing that is grown or produced usually for sale

27)

a person who buys

28)

an amount of money for which something may be bought or sold

29)

a person who sells something

30)

the giving of something to a number of people

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3. Fill each of the blanks in the following sentences with one of the words listed. strategy, place, product, buyer, communications, sales, research, marketing, seller, promotion, advertisement, price, package, advertising 1) Pharmaceutical ______________ are very expensive in this region. 2) The _________ of cigarettes is set to rise again. 3) This would be a good _________ for picnic. 4) Their products are always attractively ______. 5) Have you found a _______ for you house? 6) The ________ is required to carry out repairs before competition of the sale. 7) Cigarette ______________ has been banned. 8) It is necessary for us to work out ___________ to gain promotion. 9) She is responsible for sales ___________. 10) Telephone ___________ between the two cities have been restored. 11) What do their ____________ show? 12) Thanks to effective ____________ strategy the company has become global. 4) Spread up the following statements 1) Marketing is the philosophy of business. 2) The integral parts of an effective marketing are planning. 3) The specific objective of advertising is the promotion of goods. 5) Prove the following statements. Model a) While speaking of marketing strategy we should think of the market research as the most important element (planning, new product development, sales, communications, advertising). b) Exactly, but there some other elements, such as planning, new product development, sales, communications and advertising which should also be taken into account.

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1) While speaking of conducting market research, we should think of observation as the most important method (survey, experiment, public opinion polls). 2) While speaking of communications mix we should think of advertising as the most powerful device (public relations, direct mail, product shows, exhibitions). 3) While speaking of advertising we should think of mass media as the most effective means (trading fairs, exhibitions, special conferences). 4) While speaking of market research we should think of TV as the most powerful tool (radio, newspaper, magazines, posters, leaflets, booklets, other printed matter). 5) While speaking of market research we should think of market potential as its most essential part (competition, domestic conditions and preferences, local trading customs, seasonal factors).

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IX Marketing functions 1) Read and say what marketing functions are After scanning the environment, the company’s marketing tasks begin. Most of the tasks are summarized in the eight basic functions. 1. Marketing research. 5. Transportation. 2.Buying. 6. Storage. 3.Selling 7. Risk bearing. 4.Financing (credit) 8. Standardization (grading) All the marketing's functions are performed to move goods from producers to consumers. During this process, marketing adds utility (value) to goods and services. There are five types of utility: (l) form, (2) time, (3) place, (4) possession, and (5) information. Form utility refers to the changing, of raw materials into a finished product. Form utility is usually considered a production function rather than a marketing function. The four major marketing utilities are follows: Time utility helps consumers by making products available the consumer wishes or during convenient hours. Making fresh fruit available in the winter is a form of time utility. Place utility makes sure that goods and services are conveniently located where consumers want them. Possession utility helps make the exchange of goods between ' buyers and sellers easy. Anything that helps complete the sale-delivery, installation, warranties, credit -is considered part of possession utility. Information utility informs buyers of the product's existence how to use it, the price, and other facts. Such information is provided through advertising, salespeople and packaging.

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X Marketing and management 1) Read the text and understand the contents 1) Marketing is ah integral part of the business operations. It is the fundamental means by which industry sells its products. To curtail marketing or to eliminate it altogether would be like suggesting that industry should stop selling — a process that would remove the dynamic element in the national economy. In some industries, such as office equipment and data processing, it would be more than the growth rate that would suffer. In new industries selling to new markets is essential, and in modernized production plans of the established industries marketing effort is necessery to achieve the volume essential in maintaining low unit costs and remaining competition internationally. 2) The most criticized activity of marketing is advertising. Advertising is intended to inform in order to sell. The advertiser describes his product as being the best because he believes this to be true. He has spent time researching the place and finding out people's needs and then developed a product accordingly. Following this he goes into the market place and promotes the product he has specially developed for the market he has selected. So the manufacturer will not normally give information damaging the product. Nor should he be expected to. 3) Management is not the same as planning, although the two ideas have much in common. When people argue nowadays in favour of economic planning they usually have in mind long-term structural changes in the economy calculated to accelerate the rate of economic growth. 1) Read §1 again and find gerund and infinitive. Translate sentences containing them into Russian. 2) Read §2 and find participle I, II. Translate sentences having them. 3) Read §3 and answer the question: What do people have in mind when they discuss the problem of economic planning?

XI Activity 1) Translate into English: Reproduce the dialogue. А: Кто занимается изучением конъюнктуры рынка и маркетингом в вашей фирме?

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К: Данные по конъюнктуре рынка дает нам один из наших отделов, а также специализированное консультативное агентство, которое проводит профессиональные исследования потенциала рынка по нашему запросу. Что касается маркетинга, то пока у нас этим вопросом всерьез не занимается никто. А: Это очень плохо, так как всегда нужно знать, какой ассортимент товаров требуется в данный момент, чтобы скоординировать план производства и план продажи продукции. К: Вы совершенно правы. Правильное проведение маркетинга позволило бы также более точно проводить политику цен и контроль за сбытом товара. А: Несомненно, маркетинг является неотъемлемой частью успешного бизнеса. Вы ведь знаете, что в зарубежных компаниях имеются специальные отделы маркетинга во главе с менеджером? К: Да, я познакомился с работой такого отдела, когда был на стажировке в Ливерпуле. Насколько мне известно, основной задачей этого отдела является анализ факторов, содействующих сбыту товаров. Я считаю, что и в нашей фирме необходимо создать специальный отдел по маркетингу. А: Вы совершенно правы. Отдел маркетинга сможет не только способствовать успешной продаже вашей продукции, но и контролировать необходимую реконструкцию предприятия, освоение новой продукции, а также организовать комплекс мероприятий по рекламированию продукции. 2) Translate the text and make up a dialogue using it. —Какие основные элементы включает в себя в наши дни стратегия маркетинга? — Это прежде всего исследование конъюнктуры рынка, планирование, разработка новой продукции, организация контактов с потребителями, а также реклама. — Что вы можете сказать о гарантийном обслуживании, выполняемом вашей фирмой? — Оно соответствует всем требованиям заказчика: быстрое, дешевое и эффективное. — Какие демографические и психографические факторы были учтены при создании рынка для вашего нового товара? — Мы исследовали мнения потенциальных потребителей и учли местные

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торговые обычаи, а также некоторые особенности окружающей среды. — Для чего вы провели исследования по сегментации рынка? — Мы решили, что ряд рынков, отобранных с учетом местных условий, помогут нам быстрее продавать наши продукты и лучше организовать гарантийное обслуживание 3) Give a free translation of the following text: Каждый год у нас в стране производиться свыше 150 международных выставок. Участию российских предприятий и внешнеторговых фирм в международных ярмарках и выставках способствует (to promote) торгово-промышленная палата России (Russian Chamber of Commerce and industry). Она организует российские национальные торгово-промышленные выставки за границей и создает информационные центры для тех, кто хочет ознакомиться с нашей торгово-экономической деятельностью (trade and economic activity). В Москве при торгово-промышленной палате создан Центр по внешнеторговому сотрудничеству (foreign trade) и научнотехническому (scientific and technological) сотрудничеству с другими странами. Под эгидой (under the aegis) этого центра работает Международный торговый центр, где размещены офисы иностранных фирм и различных ассоциаций. Ежегодно его услугами пользуется свыше 50 000 представителей деловых кругов. Центр занимается организацией конгрессов и конференций, семинаров и симпозиумов, а также оказывает помощь российским экспортерам в освоении рынков других стран. На этих встречах и презентациях руководители предприятий и внешнеторговых фирм встречаются с представителями иностранных деловых кругов и знакомят их с нашими новыми экспортными товарами

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UNIT 5. MANAGEMENT I Starting - up 1. People and workplaces Employees and management The people who work for a company, all the people on its payroll, are its employees, personnel, staff, workers or workforce. But these words can mean just the people carrying out the work of a company, rather than those leading it and organizing it: the management. Note: Workforce, workforce and work force are all possible. Management and administration

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A company's activities may be spread over different sites. A company's most senior managers usually work in its head office or headquarters (HQ). Some managers have their own individual offices, but in many businesses, most employees work in open-plan offices: large areas where many people work together. Administration or, informally, admin, the everyday work supporting a company's activities, is often done in offices like these by administrative staff or support staff. For example, those giving technical help to buyers of the company's products are in technical support. Labour i Labour is spelled labor in AmE. Labor unions, organizations defending the interests of workers (AmE) are called trade unions in BrE. When workers are not happy with pay or conditions, they may take industrial action: • a strike, stoppage or walk-out: workers stop working for a time. • a go-slow: workers continue to work, but more slowly than usual. • an overtime ban: workers refuse to work more than the normal number of hours. Personnel and human resources In larger organizations there is a human resources department (HRD) that deals with pay, recruitment, etc. This area is called human resources (HR) or human resource management (HRM). Another name for this department is the personnel department.

2. The career ladder A job for life Many people used to work for the same organization until they reached retirement: the age at which people retire, or end their working life. Career paths were clear: you could work your \\ up the career ladder, getting promotion to jobs that were more senior, with greater responsibi: You would probably not be demoted: moved to a less senior job. To leave the company, you could resign or hand in your notice.

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A job for now Modco has downsized and delayered. The number of management levels in the company hierarchy has been reduced from five to three, and many managers have lost their jobs. Modco has reorganized and restructured in order to become flatter (with fewer layers of management) and leaner (with fewer, more productive employees). They did this to reduce costs, and increase efficiency and profits. Employees said the company used words like 'restructure' to make the situation sound positive and acceptable. In-house staff or freelancers? Modco has outsourced many jobs previously done by in-house personnel: outside companies clean the offices, transport goods and collect money from customers. This allows Modco to concentrate on its main business activities. Modco uses more freelancers, independent people who may work for several different companies, and they employ people for short periods On temporary contracts. Modco expects flexibility, with people moving to different jobs when necessary, but for many employees, this means job insecurity, the feeling that they may not be in their job for long. The way that they are doing their job is discussed at performance reviews: regular meetings with their manager. Note: You say freelancers or freelances. Losing your job If you do something wrong, you are ... • dismissed • fired • sacked • terminated If you've done nothing wrong, you are ...

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• laid off • made redundant • offered early retirement Employees who are made redundant may get advice about finding another job, retraining, etc. This is called outplacement advice.

II.Management Pre-reading. 1. Check the meaning of the following words in your dictionary. reve concept broad evalua opportuni strategic volume select al direct te ty profitability cycle stag deat maturit declin den representat volum objectiv achieve es h ye y ion e es coordinate While reading.с 2. Read the text and answer questions below the text. 1. Management is a function of planning, organizing, coordinating, directing and control ling. 2. Management is revealed in a variety of specific activities. Marketing Management refers to a broad concept covering organization of production and sales of products, which is based on consumer requirements research. All companies must look beyond their present situation and develop a long-term strategy to meet changing conditions in their industry. Marketing management consists of evaluating market opportunities, selecting markets, developing market strategies, planning marketing tactics and controlling marketing results. 3. Strategic planning includes defining the company's long-term as well as specific objectives such as sales volume, market share, profitability and innovation, and deciding on financial, material and other resources necessary to achieve those objectives. 4. In problems of market selection and product planning one of the key concepts is that of the Product Life Cycle. That product passes through various stages between life and death (introduction - growth - maturity -

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decline) is hard to deny. Equally excepted is the understanding that a company should have a mix of products with representation in each of these stages. Companies can make far more effective marketing decisions if they take time to find out where each of their products stands in its life cycle. A)What is management? B)What specific activities does management cover? C)What stages does Product Life Cycle pass through? 3. Match the words (1-8) from the text with their meanings (a-h) 1. a) fully grown or developed in mind or managemen body t 2. concept b) the control and making of decisions in a business or similar organisation 3. selection c) a thing aimed at or wished for; a purpose 4. evaluate d) a plan or method used to achieve smth, often against opponent 5. objective e) an idea or principle relating to smth abstract 6. tactics f) choosing smth /smb carefully as being the best or most suitable 7. mature g) to make changes, to introduce new ideas, methods 8. innovate h) to assess or form an idea of the amount, quality or value smth 4.Substitute the underlined words with words which mean the same as the following: troubles, goals, special, applies, stare, lucky chances. a) Management refers to a broad concept covering organisations and sales of products b) All companies must look beyond their present situation. c) Strategic planning includes defining the companigs long-term as well as specific objectives.

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d) Management is revealed in a variety of specific activities. e) In problems of market selection and product planning one of the key concepts is that of the Product Life Cycle. f) Marketing management consist of evaluating market opportunities, selecting markets, developing market strategies etc. 5.Match the first part of each sentense (1-6) with the most appropriate ending (a-f). 1. Management refers to 2. Strategic planning includes 3. Marketing management consists of 4. Management is revealed 5. Product Life Cycle passes 6. Management is

a) evaluating market opportunities, selecting markets, developing marketing strategy, planning, controlling marketing results b) in a variety of specific activities c) through various stages (introductiongrouth -maturity -decline) d) organisation of production and sales of products e) defining company's longterm, specific objectives f) a function of planning, organizing coodinating, directing, controlling.

III Planning Read the text and dicide which answer А, В, С or D fits best each space. A plan is a design for 1 __________________________ some specific objectives. Plans can relate 2 _____________________ short, medium or

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long-term intentions. Short-term plans are more likely 3 precise objectives and can be more detailed schemes than long-term plans (often called «strategic plans»); the further it looks into the future, the 4 certain it can be. However, there is little point in pursuing activities if the business 5 not know what the intended outcome is. «If you don't know where you are going, how do you know when you've got there?» The first step in planning is to state 6 _ clearly possible the desired outcome -that is, the objective. A fundamental skill of managing is the abillity to set and communicate objectives. Next, it is usual to look at the period over 7 the plan is to take effect and to set specific, measurable targets for quality, time and costs. This is to allow the plan 8 ____________________________________________ . In any 9 activity, the managers never have all the information they need to 10 __ decisions. The Business Environment title in this series looks at some of the external pressures that affect the prosperity of a business. They cannot be ignored at the planning stage. Managers 11 _____________________________________________________ mak e forecasts about the effects that factors outside their control may have on their objectives. During this stage of the planning process, some decisions may be made about how the plan is to be executed, but only in the broadest terms - the 12 activities are the next stage. Plan on its own is a sterile thing. Nothing happens until the plan 13 _________________________________________ into actions.

a 1. to achieve

b achieving

с being achieved

d achieved

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2. to 3. have contained 4. little 5. do 6. as...as 7. what 8. will be monitored 9. planning

for being contained a little does so...as which to have monitored planned

at to contain

in containing

do may detailed

least is the some...as who to be monitored having planned require should detail

turns

is turned

less has like...as whose is monitored being planned comprise are to being detailed will be turned

10. make 11. have to 12. detailing 13. having turned

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IV Communicating 1)Read the text, understand contents, answer questions below the text. In all aspects of managing, and in all functions of the organization, the degree of success is directly related to the quality of communication. Communication is the "nervous system" of managing. It is both formal and informal. Management Information Systems meetings, instructions, notice-boards, memos and so on are examples of formal communication. They are usually planned and specific. 2. Informal communications can be planned to some degree. If it is important that certain people speak to each other regularly, it may be arranged that their offices are close to one another. In this way, the people concerned will meet in the corridor or in the offices and chat. 3. The "grapevine" (the channel for gossip) is the sort of informal ccommunication that managers should try to keep to a minimum as it is almost certainly inaccurate and can even be mischievous. It often arises through lack of proper communication. We are information - seeking animals. We have only partial information, we still constantly make decisions about what is going on around us, only we "make up" the information we are lacking. 4. Communication can be verbal, written, drawn or non-verbal. It can take many forms: letters, reports, memos, news-sheets, charts, graphs, blueprints, forms (invoices, orders); meetings, discussions, interviews, chats, presentations; smiles, frowns, relaxed or tense posture, stressed or anxious behaviour. 5. When thinking about communication, we should remember that it is impossible to divorce meanings from feelings. Whatever is written or said has a meaning that the communicator intended to transmit. But the choice of words, the tone and the timing, together with facial expressions and body posture, will generate feelings in the person receiving the message. 1. What is the degree of success in business directly related to? 2. What are examples of formal communication? 3. What is the "grapevine"?

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4. What types of communication can you name? 5. What forms can communication take? 2)Make a chart or table to represent communicating in the best way.

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V Control and management 1. First Read the text and understand the contents. The job itself has never been thought through -at least not so far. And the century of patient analysis of managerial, inside phenomena, events and data the century of patient, skillful work on the individual operations and tasks within the business, has no counterpart with respect to the entrepreneurial job. We can easily record and therefore quantify effects, that is, efforts. We have very few instruments to record and quantify effects, that is, the outside. But even the most efficient buggy-whip manufacturer would no longer be in business. It is of little value to have the most efficient engineering department if it designs the wrong product. The Cuban subsidiaries of U.S. companies were by far the best run and, apparently, the most profitable - let alone the least «troublesome» - of all U.S. operations in Latin America. This was, however, irrelevant to their expropriation. And it mattered little, during the period of IBM's great expansion in the fifties and sixties how «efficient» its operations were; its basic entrepreneurial idea was the right, the effective one. The outside, the area of results, is much less accessible than the inside. The central problem of the executive in the large organisation is his necessary- insulation from the outside. This applies to the president of the United States as well as to the president of United States Steel. What today's organisation therefore needs are synthetic sense organs for the outside. If modern controls are to make a contribution; it would be, above all, here. Controls are needed for measurable and nonmeasurable events. Business, like any other institution, has important results that are incapable of being measured. Any experienced executive knows companies or industries which are bound for extinction because they cannot attract or hold able people. This, every experienced executive also knows, is a more important fact about a company or industry than last year's profit statement. 2. Then find words in it which mean the following: 1. a person or group working in administration or management, in a business organization, trade union.

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2. 3. 4. 5. 6. 7.

to reach the standard of ability, knowledge. a thing the especially money that is given to a person or organization. taking away property from its owner for public use without payment. power or auftority to direct, order or manage giving trouble: causing annoyance, pain a person who starts or organizes a commercial enterprise, especially one involving financial risk. 8. a business company controlled by another company. 9. facts or information used in deciding or discussing smth

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1 VI Scientific Management 3. Read and do exercises in the translation. Consulta a dictionary. Frederick Winslow Taylor (1856-1915) F.W. Taylor, called the Father of Scientific Management was an. engineer by trainning. Taylor believed that management's principal object should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity of each employee. The mutual interdependence of management and workers was a common message he expressed. Taylor's view of «science» insisted upon the systematic observation and measurement of worker activities. He was driven by the notion of applying science to answer questions about efficiency, cooperation, and motivation. Taylor believed that inefficient rules of management inevitably lead inefficiency,"low productivity, and low-quality work. He recommended developing a science of management, the scientific selection and development of human resources, and personal cooperation between management and workers. Taylor believed that conflict among employees would obstruct productivity and so should be eliminated. Taylor advocated maximum specialization of labour. He believed the person should become a specialist and master of specific tasks. Also, he assumed that increased efficiency would result from specialization. Taylor was unhappy with anything short of the one best way. He searched through the use of scientific methods for the one best way to manage. Taylor tried to find a way to combine the interests of both management and labour to avoid the necessity for sweatshop management. He believed that the key to harmony was seeking to discover the one best way to do a job, determine the optimum work, pace, train people to do the job properly, and reward successful performance by using an incentive pay system. Taylorbelieved that cooperation would replace conflict if workers and managers knew what was expected and saw the positive benefits of achieving mutual expectations. 1. Form verbs from these words. Translate them. management employer observation measurement cooperation developing selection worker specialization performance achieving expectations

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2. Arrange words according to the parts of speech. posperity management employer observation interdependence inevitably inefficiency productivity inefficient specialist specific unhappy successful существительное прилагательное наречие

3. Give the English equivalents of the following words. Научное управление, деятельность рабочего, система оплаты, рабочий темп, низкая производительность, награждать за успешную деятельность, ключ к гармонии, найти лучший путь, поощрительная система оплаты, сочетание интереса.

4. Use the word in brackets to form a word that fits in the space in the same line. 1. Taylor's view "science" insisted upon (system) observation and ____(measure) of worker activities 2. Taylor was ___ (happy) with anything short of the one best way. 3. The mutual (depend) of management and workers was a he common message ______ (expres s). 5. Decide what kind of verbal it is. Find sentences containing them and translate into Russian. 0. Example: Reading is way useful 3. of applying science 1. by using an incenive 4.recommended pay system developing 2.to discover the one best 5. to combine interests

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6. increased efficiency

- Герундий. Чтение полезно.

6. Complete sentences with the following words. become believe result lead would should a) Taylor _ that inefficient rules of management inevitably low productivity and low -guality work.. b) ... the person __ a specialist and master of specific tasks. c) ... increased efficiency from specialization. 7. Transform newspaper headings into sentences. F. W. Taylor to be called the father of scientific management. Taylor to be driven by the notion of applying science in management. __ Conflict be eliminated among employees

Taylor to be seeking the key to harmony

Cooperation to replace Conflict if both to know positive benefits

inefficie ncy,

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Leadership and management styles. 1. Study these notions. A.

Leadership Ken Monnersis an expert on leadership and management styles. Can leadership be taught? Or are the only real leaders born leaders?

Traditionally, the model for leadership in business has been the army. Managers and army officers give orders and their subordinates (the people working below them) carry them out. Managers, like army officers, may be sent on leadership courses to develop their leadership skills, their ability to lead. But they still need a basic flair or talent for leadship. What, makes a great leader? \ The greatest leaders have charisma, an atrracrive quality that makes other people admire them and want to follow them. A leader may be described as a visionary, someone with the power to see clearly how thing sare going to be in the future. People often say leaders have drive, dynamism and energy. B.Modern management styles How have management styles changed in the last few years? Before, leaders were distant and remote, not easy to get to know or communicate with. Today, managers are more open and approachable: you can talk to them easily. There is more management by consensus, where decisions are not imposed from above in a top-down approach, but

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arrived at by asking employees to contribute in a process of consultation. Do you think this trend will continue? Yes. There are more women managers now, who are often more able to build consensus than traditional military-style authoritarian male managers. C. Empowerment What, exactly ,is empowerment? Encouraging employees to use their own initiative, to take decisions on their own without asking managers first, is empowerment. Decision-making becomes more decentralized and less bureaucratic, less dependent on managers and systems This is often necessary where the number of manegement levels is reduced. To empower employees, managers need the ability to delegate, to give other people responsibility for work rather than doing it all themselves. Of course, with empowerment and delegation, the problem is keeping control of your operations: a key issue of modern management. 2. a) Choose the best word to fill each gap from the alternatives given below. Put a circle around the letter, А, В, С, or D, of the word you choose.

'My name is Laura Garcia and I train people in modern management techniques. Old style managers were (1) ..... They took all the decisions and told their (2) ..................... what to do withour talking to them. They were often very (3) ........................................................................ from their employees. They (4) ...........their decisions from above and their whole approach was (5) ..................................................................... and

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(6) ......... A modern manager has to be more (7) .................... and (8)...... Decision making needs to be (9) .. so everyone should be involved in the process of (10) ......... 1 A authority В aurhorized С authoritarian D authorizing 2 A subordinates В superiors С sponsors D speculators 3 A above В further С long D remote 4 A imported В imposed С stressed D pressured 5 A bottom-up В upside-down С inside-out D top-down 6 A closed В administrative С organized D restructured 7 A closed В shut С over D open 8 A advanced В relaxing С approachable D distant 9 A decentralized В unfocused С depreciated D restructured 10 A talking В consultation С speaking D discussing b) Complete each sentence by writing in the gap a word formed from the verb given in brackets( ). 1 I like people in this company to use their ..... (Initiate) 2 We believe in.................so we let people control their own work. (Delegate) 3 ..................... means letting people make their own decisions, (empower) 4 We discuss things and even argue but then we reach a (Consent) 5 I'm going on a course to develop my ....... skills. (Lead) c)Find the words that match the clues. The first and last letters of the answers are given. 1 Talent 2 Energy and drive 3 Attractive quality that good leaders have

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4 Leader who can see what the future will be like T

r

_ d _" с v

m a

3. Describing character a) Which adjectives below describe positive aspects of someone's character? Which describe negative aspects? decisive open energet balanced passionate ic charisma ruthless straight careful tic impulsive motivatin informal accessi thoughtful g flexible ble adventur uncaring lunatic aggressiv ous moderate e b) Can you think of adjectives with opposite meanings to the ones above? c)JackWetch is Chief Executive Officer of General Electric. In the extracts below he talks about leadership. Before you read what he says, try to predict which of the adjectives above describe his idea of a good leader. d)Read what Jack Welch thinks and check your answers. Do you agree with him?

У

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I simply dislike the traits that have come to be associated with "managing" - controlling, stifling people, keeping them in the dark, wasting their time on trivia and reports. Breathing down their necks. You can't manage selfconfidence into people. You have to get out of their way and let it grow in them by allowing them to win, and then rewarding them when they do. The word "manager" has too often, come to be synonymous with control - cold, uncaring, passionless. I never associate passion with the word «manager» and .I've never .seen a leader without it. Above all else good leaders are open. They go up, down and around their organisations to reach people. They don't stick to established channels. They're informal. They're straight with people. They make a religion out of being accessible. One of the things about leadership is that you cannot be a moderate, balanced, thoughtful, careful articulator of policy. You've got to be on the lunatic fringe. (The.future) will not belong to "managers" or those who can make the numbers dance. The world will belong to passionate, driven leaders - people who not only have enormous amounts of energy but who can energize those whom they lead. 4. Running a large company a) Discuss these questions. Imagine you are the leader of a large company. 1. What qualities do you need to run a large company effectively? 2. Which business leaders do you admire? Why? 3. What do business leaders actually do? 4. As a leader, how do you motivate your employees? 5. Do you think leaders are born or made? 5. Honesty and dishonesty a) The sets of words and phrases below are related either to honesty or to dishonesty. Which

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word is different from the others in each set? Use a dictionary to help you. 1 trustworthy . 2 a slush fund . 3 insider . trading 4a . whistleblowe r 5 a bribe . 6 fraud .

law -abiding

crooked

a sweetener

compensat ion disclosure

industrial espionage a swindler

a bonus

deceit

a conman

a commissio n integrity

b) Complete these sentences with words and phrases from the sets above.Choose from the first set to complete sentence 1, from the second set to complete sentence 2, and so on. 1. Our company does nothing illegal. We are very 2. We've got ......... which is used in countries where it is difficult to do business without offering bribes. 3. Their car looked so much like our new model. We suspect ............................................................................ 4. They fired him because he was .. He informed the press that the company was using under-age workers in the factory. 5.He denied accepting..:.. when he gave the contract to the most expensive supplier. 6.1 admire our chairman. He's a man of his word and is greatly respected for his.......................................................................... 6. Doing the right thing.

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a) Work in groups. Discuss the ethical questions below.A different person should lead the discussion of each issue. 1. You have a shortlist of people for the post of Sales Manager. One of the female candidates is clearly the best qualified person for the job. However, you know that some of your best customers would prefer a man. If you appoint a woman you will probably lose some sales, What should you do? 2. Your company, a large multinational, has a new advertising campaign which stresses its honesty, fairness and ethical business behaviour. It has factories in several countries where wages are very low. At present it is paying workers the local market rate. Should you increase their wages? 3. A colleague in a company which tests medical equipment has been making bad mistakes recently at work. This is because she has a serious illness. You are her friend and the only person at work who knows this. She has asked you to keep it a secret. What should you do? 4. You are directors of a potato snack manufacturing company. Research has shown that any price increase causes an immediate dip in sales (although sales recover within six months). It has been suggested that you could maximise your profits by simply reducing the weight of the product in the packets and maintaining the current price. What should you do? b)Do you agree with this statement? Give your reasons. If we face a recession we should not lay off employees. The company should sacrifice a profit, It's management's risk and management's responsibility. Employees are not guilty; why should they suffer?

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Acio Morita (1921 1999), со - founder of Sony 7. Choosing the right candidate. a) Discuss this question: Do people change during their working lives? If so, how? b) Now read the article again. What does it say about the question above? Find the answer as quickly as you can.

How to select the best candidates - and avoid the worst. By Adrian Furnham Investing thousands of pounds in the recruitment and training of each new graduate recruit may be just the beginning. Choosing the wrong candidate may leave an organisation paying for years to come. Few companies will have escaped all of the following failures: people who panic at the first sign of stress; those with long, impressive qualifications who seem incapable of learning; hypochondriacs whose absentee record becomes astonishing; and the unstable person later discovered to be a thief or worse. Less dramatic, but just as much a problem is the person who simply does not come up to expectations, who does not quite deliver; who never becomes a highflyer or even a steady performer; the employee with a fine future behind them. The first point to bear in mind at the recruitment stage is that people don't change. Intelligence levels decline modestly, but change little over their working life. The same is true of abilities, such as learning languages and handing numbers. Most people like to think that personality can change, particularly the more negative features such as anxiety, low esteem, impulsiveness or a lack of emotional warmth.

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But data collected over 50 years gives a clear message: still stable after all these years. Extroverts become slightly less extroverted; the acutely shy appear a little less so, but the fundamentals remain much the same. Personal crises can affect the way we cope with things: we might take up or drop drink, drugs, religion or relaxation techniques, which can have pretty dramatic effects. Skills can be improved, and new ones introduced, but at rather different rates. People can be groomed for a job. Just as politicians are carefully repackaged through dress, hairstyle and speech specialists, so people can be sent on training courses, diplomas or experimental weekends. But there is a cost to all this which may be more than the price of the course. Better to select for what you actually see rather than attempt to change it. c)Read the article again and answer these questions. 1 What types of failures do companies experience, according to the article? 2 What does a fine future behind them mean? 3 What advice does the article give to managers? d) The writer suggests that selectors should look for three qualities: a) Intelligence and ability b) emotional stability c) conscientiousness. 1 Do you agree? Explain your opinion. 2 Complete the table with the adjectives below. What other words can you add? astute bright calm clever easy-going hard-working moody neurotic punctual quick-tempered reliable responsible sharp slow

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Intelligence and ability Emotional stability Conscientiousness

8. Women in management Read the text and decide which statement А, В, С or D best fits each gap. Though women make up over 40% of the - western workforce, the firms, they work for promote very few of them far. In America and Britain alike, women hold about 2% of big-company board seats. Where women do get to run big companies,- it is not by climbing the ordinary corporate ladder. The lone female chief executive of a Fortune 500 company, Marion Sandler, of Golden West Financial, a Californian savings bank, shares the post with her husband. They bought the bank together. Katharine Graham, chief executive of The Washington Post Company until taking the chairmanship last year, inherited the firm from her father. A 1990 survey of women quitting large companies, carried out by Wicljf, a Delaware consultancy, found that only 7% wanted to stop working altogether. The rest planned to join other firms, to work as freelance consultants, or to start with their own businesses. When BP carried out a similar exercise among graduate trainees recently, the leading reason women gave for going was not marriage or motherhood, but dissatisfaction with their career prospects. At one Johnson and Johnson unit, departing female managers complained that they had felt isolated from their male colleagues. People who work in large organizations have an innate tendency to hire and promote those who resemble themselves. «Our managers are all white, middle-aged men, and they promote to their own image» says one woman. If looking odd in positions of power is women's first big barrier to top jobs, feeling odd in them is the second. «People come up to you at a party, and say «Aren't you bright? » It isn't a compliments», says a female director at a

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London investment bank. Men are expected to be assertive. Women are not, and often do not feel happy being so. Made to choose between being thought pushy and being actually self-effacing*, women tend to choose the latter. Within mixed groups, even highly qualified women put their views less forcefully than men, and listen much more than they talk. Strident counter-examples - Margaret Thatcher is an obvious one * leap to mind just because they are so rare. If a firm does genuinely want to use the talents of women more effectively, how should it go about it? The watershed dividing different employers' approaches is positive discrimination. Some use quota schemes. At Pitney Bowes, an American office-equipment manufacturer, 35% of all promotions must go to women, 15% to non-whites. Some companies even tie managers' pay to their fulfilment of such schemes. Positive discrimination can hurt the women it is designed to help. Bosses compelled to hire women to fulfil some quota are unlikely to take them seriously. «If you feel people are just there because you had to have them, then you work around them, not with them. Then they feel underutilised, because they probably are», says Nancy Gheen, a personnel manager at Monsanto. The real change in the way companies think about women managers will come when they change the way they think about jobs. Most women want to have children. Raising a family requires time off, and shorter working hours, for somebody, either husband or wife. To keep good women, firms need to find ways of giving them those things, yet using them efficiently. That normally involves letting women with small children work flexible hours, not requiring them to relocate or travel at a moment's notice, or even letting them share their jobs with someone else. In exchange, women may have to accept lower pay, or slower promotion, until they return to full-time work. Such programmes have been dubbed «mommy-tracks». Companies exist to make their shareholders money, not to engineer social change. Though mommy-tracks are to firms' ultimate advantage, since they help keep good staff, in the

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short term they will sometimes prove to be inconvenient and expensive. In the irritation of having to change their ways, employers should not forget to take into account the costs of turnover among employees. Part of the money spent training those who leave has gone down the drain. And back-of-the-envelope calculation of the costs of replacing a manager often years' standing, earning $70,000, suggests that the time it takes the new manager to get fully on top of the job is worth $25,000. If a replacement has been thought from outside, headhunters' fees, advertising and interviewing could double that. * Self-effacing - держащийся в тени. 1. The article says that in the western workforce... a)40% of women hold senior posts. b)most women are not promoted to senior posts. c)women share high positions with men. d)2% of women have a chance to work in big companies. 2.According to the BP survey, what were reasons why women quit their work? a)They planned to get married. b)They were going to have children. c)They felt isolated from their colleagues. d)They were displeased with their career prospects. 3. Employers in large organizations usually hire and promote... a)bright people c) white people b)people like them d) middle-aged people 4.It's a rare case when women in business... a) are highly qualified. b)are assertive. c)stay in the background. d)get compliments on the work. 5. Why does quota scheme employment do women harm? a)Bosses refuse to fulfil quota schemes.

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b)Bosses do not take seriously the women they have to hire. c)Women employed according to these schemes are underpaid. d)Women employed according to these schemes feel discriminated. 6. Why do many companies mind using «mommy tracks» programmes? a)The employers do not understand the advantages of these programmes. b)The employers do not know how to use women employees efficiently. c)A new employee is more profitable than having a «mommy-track». d)«Mommy-tracks» are inconvenient for a company in the long term.

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VIII Activity 1. Read the text and choose the best option a, b, с or d. Take Nicolas Hayek the man who 1 ........................... the Swatch and 2 ..................................................... the Swiss watch -making industry back from the dead. Hayek took on Japanese market 3 Seiko and Citizen, and beat them on quality and 4 Today he sells 28 million watches a year and has built a 1.6bn company in the process. The Swatch is a 20th century icon. And, incredibly, though the price of a new one 5 .. never ....... , some of the highly collectable early designs are now classed as art and fetch more than $20,000 -not bad for a plastic 6 1) a) was invented 2) a) has brought 3) a) customers 4) a) image b)invented b) brought b) research b) place c)invents c) is brougth c) leaders c) presence d)inventing d) will have brought d) management d) price 5) a) had ... increased 6) a) can b)has ... been increasing b)company c)increased c) watch d)increases d) eyes 2. Match each headline to a statement. Write the number of the starement you choose in the box next to the headline. (There is one statement that you do not have to use.) a)Fat cats get more b)Board faces demutualization fury c)Northern Enterprise Zone opens d)Western Steel shock: 500 jobs to go e)Skills shortage hits construction targets f) Rail overtime ban to cause travel chaos 1. Members of saxon National turned out in force today to vote

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against the controversial proposal to change the status of one of England's oldest buildine societies. 2. Trained people are srarting to come into the industry but there aren't enough of them and they have little on-site experience. 3. The idea is to attract businesses to the area by offering low commercial taxes and by lifting many of the legal restrictions on the import and export of goods. 4. Union spokesperson Harry Evans said that many of his members wanted a coral stoppage but this action would send a strong message to the employers. 5. Liberty Homes PLC announced annual profits of. 1.1 million yesterday - an increase of 2.2% on the previous year. 6. Workers, who on Monday were offered 1.2%, were furious to learn that directors had voted themselves a huge 11.6%. 7. Restructuring was necessary to save the plant but the scale of the redundancies came as a terrible blow to the workforce.

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3. Complete the sentences in the job advertisement below with who or which. Chief (Executive Highly successful quoted company London Area с 300.000+Bonus+Benefits Our client is a medium-sized publicly-quoted group of businesses 1 ...................................................................................................are engaged in distrbution and engineering. The group,2 had a record turnover last year is looking to continue its expansion. The outgoing Chief Executive 3 ......... has led the company successfully for the last 10 years, is due to retire at the end of the year.The new Chief Executive4 ....................................................................................... will have an excellent track record in the industry, will need to fulfill a role 5 .......................................................................................... requires a variety of leadership skills. Our client is looking for an outstanding leader 6 ............ will drive the group forward using a mix of strategic, financial and commercial skills. Send a fall CV ia confidence quoting reference number 315J. _________ Execnttvc Recrnitment, 23-25 Hill Street, London WIX 7BB.______ 4. Use the relative pronouns below to complete these quotations. Which gap does not need a relative pronoun? who which that where The job for big companies, the challenge we all face as bureaucrats, is to create an environment ......... people can reach their dreams.Jack Welch (U8 business leader) He ............. has never learned to obey cannot be a good commander. Aristotle (Greek philosopher) A leader shapes and shares a vision, gives point to the work of others. Charles

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Handy (British writer and philosopher) A leader should be humble. A leader should be able to communicate with his people. A leader is someone .....walks out in front of his people, but he doesn't get too far out in front, to where he can't hear their footsteps. Tommy Lasorda (US sportspersonality) A leader is someone ... knows what they want to achieve and can communicate that. Margarett Hatcher (British politician) ■ 5. Match the verbs below to the correct prepositions. l.biuld a) to 2. respond a) to 3. focus

a) to

4. a) to incorporate

b)up b) on

c)of c) at b)with c)o n b) into c)at

6. Complete these sentences with a verb and a preposition from each box. agree apologise think hear refer

for about about with to

1 The CEO thinks a joint venture is the best way to break into the Russia market, but I don't ............ him. 2. Did you ........... the alliance between Lufthansa and SI A? 3. If you ............the annual report it clearly sets out the facts. 4. What do you ......... the latest news on the proposed merger? 5. The Chairman had to.... misleading the shareholders at the AGM.

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7.Think of the endings to complete the sentences below. 1. 2. 3. 4. 5. 6. 7. 8.

The Sales Director apologised ... The R&D department succeeded ... We all agree ... The safety inspector insists ... You can never rely... The Board's job is to focus... We are looking forward ... Several managers don't approve ...

8.Complete this letter to shareholders. Use appropriate forms of these verbs. rely on combine with consist of advise on succeed in budget for spend on account for compete with invest in \ Dear Shareholder. I write to inform you that the Board has received information of a takeover bid for your company. This 1 . : an attempt by Thor Engineering to acquire a controlling interest by offering to purchase shares at a price of 650 pence. We have brought in a team of consultants to 2 ......the tactics we should use to resist the bid. Although the offer seems attractive, it does not reflect the true value of the company or take into account our future prospects. We have 3 a major programme of expansion. During the next two years we plan to 4 new plant and equipment. We have also allocated funds to 5 ... a new computerised stock control system which will allow us to 6 ............. our much larger rivals. Furthermore, we plan to 7 a machine tool company in a joint venture in China. We are confident this will allow the company to 8 ............. opening up new markets in Asia. Policies like these 9 ...... our success to date and contribute to our vision of the

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future.Therefore, we strongly advise you not to accept Thor Engineering's offer. You can 10 .......... the Board to keep you fully informed of any future, developments, but for the present we advise you to take no action in relation to the offer. Yours faithfully. 9. Skills and qualifications Education and training Margareta: The trouble with graduates, people who've just left university is that their paper qualifications are good, but they have no work experience. They just don't know how business works. Nils: I disagree. Education should teach people how to think, not prepar them for a particular job. One of last year's recruits had graduated from Oxford in philosophy and she's doing very well! Margareta: Philosophy's an interesting subject, but for our company, it's more useful if you train as a scientist and qualify as a biologist or chemis - training for a specific job is better. Nils: Yes, but we don't just need scientists. We also need good manager which we can achieve through in-house training courses within the company. You know we have put a lot of money into management development and management training because they are very important. You need to have some management experience for that. It's not the sor of thing you can learn when you're 20!

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Skilled and unskilled A skill is the ability to do something well, especially because you have learned how to do it and practised it. Jobs, and the people who do them, can be described as: highly skilled skilled semi-skilled unskilled (e.g. car designer) (e.g. car production manager) (e.g. taxi driver) (e.g. car cleaner) You can say that someone is:

skilled at, or skille

+ noun customer care electronics You can also say that someone is: computer software + ing computers communicating good with... figures using PCs people working with large groups

The right person These words are often used in job advertisements. Companies look for people who are: • self-starters, proactive, self-motivated, or self-driven: good at working on their own. • methodical, systematic and organized: can work in a planned, orderly way. • computer-literate: good with computers. • numerate: good with numbers. • motivated: very keen to do well in their job. • talented: naturally very good at what they do. • team players: people who work well with other people. 10. Oral Activity You are interviewing people for a position within your company. Look at the information below and make comparisons using the adjectives and adverbs in the list, as in the example.

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qualified, fluently, experienced, reliable, friendly, fast e.g. Miss Houston is more qualified than Mr Spencer. Mrs Thompson is the most qualified of all. Qualifications: Bachelor of Arts Experience: 3 years in similar position Languages: fluent French Skills: types 100 words per minute Personality: very reliable, quite friend Miss Houston Qualifications: 4 A-levels Experience: 1 year in similar position Languages: a little French Skills: types 80 words per minute Personality: not very friendly, quite reliable Mr Spencer

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Qualifications: Bachelor of Arts, Master of Arts Experience: 2 years in similar position Languages: working knowledge of French Skills: types 120 words per minute Personality: very friendly, not very reliable Mrs Thompson Writing Activity You now have to write a report for your boss, comparing the three candidates. Look at the Oral Activity again and complete the report below. TO: Mrs K. Athow FROM: Miss R. Allchin DATE: 3rd June I interviewed three candidates for the position of Personal Assistant to Head of Sales in France: Miss Houston, Mr Spencer and Mrs Thompson. Miss Houston is . more qualified than Mr Spencer, but Mrs Thompson is the most qualified of all as she has a Bachelor of Arts and a Master of Arts Degree .................................. I personally believe that Miss Houston is the best candidate for the job, as she has all the necessary qualifications. 11. Pay and benefits 1. Wages, salary and benefits My name's Luigi and I'm a hotel manager in Venice. I get paid a salary every month. In summer we're very bus'y, so we work a lot of extra hours, or overtime; the money for this is quite good. Working in a hotel, we also get nice perks, for example free meals! I'm Ivan and I work as a waiter in Prague. I like my job even if I don't earn very much: I get paid wages every week by the restaurant. We get the minimum wage: the lowest amount allowed by law. But we also get tips, money that customers leave for us in addition to the bill. Some tourists are very generous!

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I'm Catherine and I'm a saleswoman based in Paris. I get a basic salary, plus commission: a percentage on everything I sell. If I sell more than a particular amount in a year, I also get extra money - a bonus, which is nice. There are some good fringe benefits with this job: I get a company car, and they make payments for my pension, money that I'll get regularly after I stop working. All that makes a good benefits package. Compensation 1 My name's Alan. I'm a specialist in pay and benefits. Compensation and remuneration are formal words used to talk about pay and benefits, especially those of senior managers. Compensation package and remuneration package are used especially in the US to talk about all the pay and benefits that employees receive. For a senior executive, this may include share options (BrE) or stock options (AmE): the right to buy the company's shares at low prices. (See Unit 36) There may be performance-related bonuses if the manager reaches particular objectives for the company. Compensation 2 Compensation is also used to talk about money and other benefits that a senior manager (or any employee) receives if they are forced to leave the organization, perhaps after a boardroom row. This money is in the form of a compensation payment, or severance payment. If the manager also receives benefits, the payment and the benefits form a severance package. In Britain, executives with very high pay and good benefits may be referred to as fat cats, implying that they do not deserve this level of remuneration. 2.1. Xavier and Yvonne are talking about Xavier's new job as a photocopier salesman. Complete the conversation, using words from A opposite. 1 X: I get paid every month. Y: I see. You get a Salary, not wages. 2 X: I usually have to work late: I don't get paid for it, but I get a percentage for every photocopier I sell. Y: So you don't get ............ , but you do get ...............That's good. 3 X: The people in production get a ...... if they reach their targets. Y: Oh right. They get an extra payment for producing a certain amount.

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4 X: The company pays for medical treatment too, and the company restaurant is fantastic. Y: Wow! The sound very nice. 5 X: And they've given me a .............................. to go and visit clients. Y: So you don't have to buy a car, then. 6 X: What's more, the company pays in money for us to get when we don't work any more. Y: Yes, it's important to get a good 7 X: The total .......................... , ....... is brilliant. Y: Yes, all that extra stuff is really worth having. 2.2. Which expressions from В and С opposite could be used to continue each of these newspaper extracts? FAILED AIRLINE BOSS GETS MASSIVE PAYOUT Shareholders are angry that despite very poor results, Blighty Airlines' CEO, Mr Rob Herring, is leaving with £3 million in his pocket. They say it is ridiculous to 'reward bad performance with this sort of... (2 possible expressions) MULTILEVER'S EXECUTIVE PAY It was today revealed that Mr Carl Lang, head of consumer foods giant Multilever, earns a basic salary of $22 million with stock options potentially worth an additional $ 10 million. Other payments bring to $35 million his total... (2 possible expressions) MEGAFONE CEO GETS £10 MILLION THANK YOU' AFTER TAKEOVER The directors of Megnfone, the worlds largest mobile phone company, yesterday voted to give Mr Chris Ladyman, its chief executive, a special payment of £10 million for negotiating the company's takeover of Minnemann. The directors referred to this as a ... (1 possible expression) ANGRY SHAREHOLDERS ATTACK EXECUTIVE PAY National Energy's shareholders yesterday attacked the directors of the company for paying themselves too much. Profits fell by 30 per cent last year, but directors are being paid 30 per cent more. "They should be paid 30 per cent less", said one shareholder. "These people .are just..." (1 possible expression)

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UNIT 6. ADVERTISING “Advertising is the greatest art form of the twentieth century.” Marshall McLuhan (1911-1980), Canadian author I. STARTING UP 1. Express your opinion and understanding of the following sayings: Advertising makes people buy things they don’t need with money they haven’t got (William Rogers). The function of advertising is to make the worse appear better. 2. Good and bad advertisements. 1) What makes a good advertisement? Use some of the words below. clever interesting funny inspiring eye catching powerful humorous shocking informative sexy 2) What are good and bad points of advertising? If necessary use these expressions. give true information; do not talk about the products' defects; make you buy one thing instead of another; (are) misleading (дезинформируют); show life unrealistically; put pressure on consumers (оказывают давление на покупателей); famous people endorse (рекламируют) products; teach you how to get the best value for your money; (are) truthful; help you choose best products; help improve your taste; (are) impossible to check; people seem to be happy consumers; (are) creative/informative/silly/annoying/ clever/funny; full of humour/fantasy; convince people to buy things they don't need; present an honest, realistic image of a product. 3. Advertising media and methods. 1) Newspapers and TV are two advertising media. Can you think of others?

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2) Complete the table with the words in the box. Can you think of other words? Use a good dictionary to help you. directories persuade promote cinema run mailshots place free samples commercials public transport launch leaflets exhibition billboards/hoardings word-of-mouth radio point-of-sale posters research sponsor target endorsement slogans television press jingles sponsorship publicise

Media radio

ADVERTISING Methods Verbs jingles persuade II ADVERTISEMENT

1. Read the text and understand the contents. Consult vocabulary notes below the text. Read §1 again and use the word given in capitals at the end of each line to form a word that fits in the space in the same line. 1. Advertising is the act of 1________ a product, a service, a job vacancy, an event, etc. 2 ________ known. It is a nonpersonal form of' communication through means of 1. Make Public information 3________. The advertising has many 4________. 2. 3. Distribute A corporate image advertising is used to form a lasting image. A 4. Applicate product advertising is 5________ to distinguish a certain brand 5. Use Compare of products 6________ to other brands of the same trade class. 6. 7. Inform Rubric advertising is used to distribute 7________ about 8. Clear services, events or some sale. 8________ advertising is used to 9. Explain Advertise announce of some clearance sale. 9________ advertising is used 10. 11. Getting to uphold some idea. Companies with strong 10________ 12. Count department often resort to the services of advertising agencies. The agencies 11 ________ a commission, usually a 15% 12 ________ of the value of the purchased advertising space.

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2. Read § 2 again and decide which word a, b, c or d best fits each gap. 2. 1________ advertisement is a five-stage process includes such stages as: setting the objectives; drawing up a budget; the appeal; the choice of 2________ of information distribution; assessment of the results. The objectives should 3________ clearly 4________ . Informing 5________ on the stage of introducing a new product on the market. Persuading forms a special demand for a certain brand of products. Reminding is important 6________ the consumer remember the product but not to persuade or inform. The budget can be drawn up 7________ to such principles as "on the level of competitors," "out of certain objectives and goals" etc. The appeal presupposes the 8________ of the idea, choice of forms of appeal and implementation. 9________ advertiser should keep in mind the four AIDA points: attention, interest, desire, action consequent stages of the consumer's response before buying. The choice of the means of information distribution depends on setting 10________ following questions: stating the range of frequency and the impact of the advert-choosing a specific advertising means. 11________ of the companies, prefer a pulsing schedule. Assessment of the results presupposes the evaluation of the commercial effectivity before, during and after the publicity campaign. a b C d making makes made 1 make a mean means meanses 2 a means be…stating is…stated 3 be… state be…stated prevailed prevails 4 to prevail prevailing having made make making 5 to make 6 accordance accordance with according accordingly forming formed forms 7 to form any a the 8 some an the a 9 the most most mostly 10 a most 3. Read §3 and translate it into Russian 3. There are two major types of advertisements: classified and commercial. Classified adverts are short advertisements in a newspaper or

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magazine. Commercial adverts are advertisements on television, radio or in a cinema. Vocabulary Notes advertising реклама application применение corporate image представление о товаре brand торговая марка clearance sale распродажа to uphold the idea отстаивать идею advertisement = advert рекламное объявление advertising agency рекламное агентство commission комиссионное вознаграждение discount скидка to draw up an invoice выписать счет to keep back удерживать to draw up the budget составить бюджет appeal обращение, призыв assessment оценка implementation выполнение to elaborate разработать publicity campaign рекламная компания 4. Read the text again and complete questions not changing the meaning of the first one. 1) ─ Are there two major types of advertisements? ─ Could you tell me_____________________. 2) ─ What do classified adverts comprise? ─ Do you know__________________. 3) ─ Where are commercial adverts used? ─ I wonder____________________. 4) ─ What does making advertisement include? ─ I’d like to find out__________________? 5) ─ What is the aim of public advertising? ─ Can you tell me__________________. III. OUTDOOR ADVERTISING 1. What do you understand by outdoor advertising? Give examples.

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2. Before definitions. 1) segments 2) soaring 3) mass market 4) TV slot 5) kiosks

you read the article below, match these words to their a) a place in a television schedule b) rising quickly c) small open-fronted shop in the street for selling newspapers, etc. d) concerned with non-luxury goods that are sold in large quantities e) parts of a larger market or category of customers

3. Complete this statement with four of the words above. The cost of prime-time ………………1 is……………………2. However, Advertising on…………….3 is cheap. Outdoor advertising is one of the fastest growing……………...4 in the market. 4. Read the article. Then answer the questions below the article. Outdoor advertising – A breath of fresh air The world of outdoor advertising More, and plastic poster skins have billboards, transport and 'street vastly improved colour and contrast. furniture' (things like bus shelters Movement is possible too. Smirnoff and public toilets) - is worth about used new multi-image printing to $18 billion a year, just 6% of all the make a spider seen through a vodka world's spending on advertising. But bottle appear to crawl up a man's it is one of the fastest-growing back. And Disney advertised its '101 segments, having doubled its market Dalmatians video on bus shelters with share in recent years. the sound of puppies barking. Outdoor advertising's appeal is This sort of innovation has attracted a growing as TV and print are losing new class of advertiser. Recent data theirs. The soaring costs of TV are from Concord, a poster buyer, shows prompting clients to consider that in Britain, alcohol and tobacco alternatives. Dennis Sullivan, boss of have been replaced by entertainment, Portland Group, a media buyer, calls clothing and financial services as the outdoor advertising the last true big outdoor advertisers, like car mass-market medium. It is also makers, are using it in new ways. cheap. In Britain, a 30-second prime- BMW ran a 'teasers' campaign in time TV slot costs over £60,000 Britain exclusively on bus shelters. ($100,000); placing an ad on a bus Particularly attractive to the new shelter for two weeks works out at advertisers is street furniture, the about £90. fastest growing segment of the

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Adding to its attractions has been a revolution in the quality of outdoor displays. Famous architects such as Britain's Sir Norman Foster are designing arty bus shelters and kiosks with backlit displays. Backlighting, introduced in Europe by Decaux and

outdoor market. It accounts for some 20% in Europe and about 5% in America.

Discuss these questions: 1) Outdoor advertising is increasing in many countries. Is this a good thing? 2) What products do you think are suitable for outdoor advertising?

1) Complete the table using information from the article. Outdoor Advertising

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Street Furniture

2) What do these numbers in the article refer to? 18 6 30 60,000 100,000 90 20 5 3) Why has outdoor advertising become more popular? List the reasons. 4) Which industries are becoming more involved in outdoor advertising? 5. Choose one of the advertising media below. Make a short presentation on its advantages and disadvantages. television

billboards

newspapers

street furniture

6. Match words from each box to form word partnerships. Then make up a sentence for each word partnership. advertising techniques marketing promotions public outlets retail campaign price relations promotional mix 7. Put each of the following words or phrases in its correct place in the passage. hoardings classified advertisements publicise commercials posters advertising agencies persuade eye-catching Advertisements are everywhere, from columns of small (a)______for houses, jobs, cars etc. in newspapers to big (b)______on walls and enormous advertisements on (c) ______by the side of the road. The job of the (d)______is to (e)_________the products of the firms who employ them. They design (f)______advertisements and make television (g)________to (h)________us to buy, buy, buy

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8. Complete the story below with the correct tenses of the verbs in brackets. That reminds me of the problem we ……..had…….. 1 (have) with our new milk carton. We………….2 (introduce) it a few months earlier and it…………..3 (become) popular with customers. People …………4 (buy) it,………..5 (talk) about it and…………6 (recommend) it to their friends, and so on. Then we………….7(change) to a new supplier who…………8 (be) cheaper and we …………….9 (start) to get lots of complaints. People…………10 (can not) open the cartons any more. We were surprised about the problem because we………….11 (test) it on some of our workers. They …………..12 (say) it was fine. In the end, we …………..13 (decide) to go back to our original supplier. We……………14 (look) really stupid. In the meantime, we…………..15 (lose) a lot of customers. We…………….16 (be) very careful about choosing suppliers for packaging ever since.

IV. STARTING PRESENTATIONS 1. Study the useful language. Introducing yourself • On behalf of myself and Focus Advertising, I'd like to welcome you. My name's Sven Larsen. • Hi, I'm Dominique Lagrange. Good to see you all. Introducing the topic • This morning, I'd like to outline the campaign concept we've developed for you. • I'm going to tell you about the ideas we've come up with for the ad campaign. Giving background information • I'll give you the background and talk you through the results of the market study. • I've divided my presentation into three parts. Inviting questions • If you have any questions, please don't hesitate to interrupt me. • If you're not clear about anything, go ahead and ask any questions you want.

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2. Presenters can use different techniques to get their audience's attention at the start of a presentation. Match the techniques below to the examples. a) tell a personal story c) ask a question b) offer an amazing fact d) state a problem 1) I wonder if any of you here know the answer to this question: What's the most popular holiday destination in Europe for people under the age of 25? 2) When I was on holiday a few years ago in Greece, the owner of a taverna told me that in 20 years' time, the little village where he lived would be a popular tourist resort. 3) Let me give you a statistic: 92% of Americans do not own a passport. Consider the opportunities this presents to the travel industry. 4) We're facing a crisis with our market share. What are we going to do about it? 3. The sentences below describe stages in an unsuccessful product launch. Put them in a logical order. a) The newspapers asked questions. b) The product was recalled. c) The company lost a lot of money. d)The product was launched.

e) The product was tested. f) The number of complaints doubled. g) People started to complain. h) The product sold well.

V. ADVERTISING IN THE USA. 1. To start with read the text with the help of a dictionary and understand the main idea. The influence of advertising in the mass media market has both advantages and disadvantages. On the plus side is the fact that people get an incredible variety of information, entertainment and culture at minimal cost. The disadvantage is that nearly all of America's mass communications are heavily overloaded with commercial or persuasive messages.

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All advertising contains both information and persuasion. The classified advertisements in the daily newspapers are almost pure information. So are most of the supermarket specials. In Latin ad vertere means "to turn the mind towards something". The American Marketing Association (AMA) points out that advertising is a tool of marketing along with the product price, distribution and personal selling. It also reminds us that advertising can be used to promote ideologies and services. This kind of promotion is "non-personal" — it is directed "to whom it may concern" — and therefore it is effective because the audience is very receptive to it. The first function of advertising is to distinguish among identical products. This attempt was exercised at the end of the 19-th century by means of brand name identification. It seemed that the brand name would become synonymous with the product or its quality. Today when we ask for Coca-Cola, Kleenex or Xerox — it's due to this particular function of advertising. While brand names were an effective advertising technique, something more was required to establish the product difference in the public mind. From the realm of political campaigning advertisers borrowed the slogan — a catchy summary of the product. Thus, the company "Pears' Soap" updated itself instantly with a catchy "Good morning, have you used Pears' today?" The slogan gave way to the jingle, which was set to music and rhyme. "Winston tastes good, like a cigarette should" is an evident though an ungrammatical example. The next technique applied to advertising was brand image. Its aim was to create an image for a product that puts it a little above the competition and hence makes it a little more desirable. Since the late 1960s, a new concept has come to national advertising called positioning". Positioning consists of segmenting a market by persuading the customer that the new product will meet the needs of a selective group. Positioning recognizes the differences in people as individuals and the impossibility of any product capturing the entire potential market. 2. Read the text again and match the words (1-8) with their definitions (a-h). 1) advantage

a) facts told, heard or discovered about sb/sth

2) message

b) a large shop selling food, drink, household goods.

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3) information

c) the action of persuading sb or being persuaded.

4) supermarket

d) a written or spoken request, a piece of information that is passed from one person to another directly. e) a word phrase that is easy to remember used in advertising to attract people’s attention. f) a condition or circumstance that puts one in a favourable position compared to other people. g) a type of product manufactured by a particular company; a trade mark. h) a group of people who have gathered together to hear or watch sb/sth.

5) persuasion 6) brand 7) audience 8) slogan

3. Fill each of the gaps with the words listed. There is one extra word which you needn’t use. Brand, information, audience, advantage, supermarket, persuasion, message, slogan, flag. 1) He has the ____________ of a steady job. 2) The ship sent for a radio ____________ asking for help. 3) A copy of the report is enclosed for your ____________. 4) People choose what they want from the shelves and pay for it as they leave a ____________ 5) She has a great power of _____________. 6) The _____________ was enthusiastic on the opening of a new shop. 7) “Power to the people” is their campaign _____________. 8) Which ____________ of toothpaste do you prefer? 4. Without referring back to the article , put the following parts of sentences in to the right order by numbering the 22 parts below. The first and the last parts are in the correct order. 1) The influence of advertising in the some ● all advertising ● the first function of advertising is ● while brand names were on ● since the late 1960’s a new concept ● the classified advertisements in the daily ● it seemed that the brand name ● to establish the product difference has both ● contains both information and persuasion ● to distinguish among identical products

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● would become synonymous ● has come ● effective advertising technique ● in the public mind ● to advertising was brand image ● advantages and disadvantages ● the next technique applied ● newspapers are almost pure information ● with the product or its quality ● something more has required 2) to national advertising called positioning. VI. THE HISTORY OF ADVERTISEMENTS Read and do exercises on the text in writing. 1. Pre-reading. Find the meaning of the words in a box in your dictionary. Papyrus, tablet, slave, noble, excavations, shell, dragon, Cyprus, cement, Cairo, inspect, fragments, archaeologist, conservative, architect, ancestor, establish, rock, carve, contain, announcement. 2. While reading. Answer the following questions. 1) When did the first advertisement appear? 2) What forms did the advertisement appear in? 3) What did the first newspaper contain? How and what our ancestors (предки) advertised? It isn't easy to establish when the first advertisement appeared, and it is not surprising since it goes back to very ancient times. A papyrus in the collection of the British museum, in London, advertises the sale of a slave. Rock drawings and inscriptions along the roads were also an excellent way to advertise things. Probably the oldest advertisement was found in the excavations of the ancient Egyptian town of Memphis. It says: "1, Rhinos from Cyprus, live here. Gods gave me the gift of the true telling of dreams." This advertisement is 2,500 years old. It is carved in stone and visitors to one of the Cairo museums can inspect it. In the excavations of one of the towns of ancient Greece archaeologists found about 300 stone fragments with letters of the Greek alphabet When

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they put the fragments together they found it was a tablet for a shop window with a list of goods and their prices. The first newspaper in the world that put in an advertisement was a hand written Roman newspaper "Daily Happenings". It contained announcements of meetings, births, and marriages in the noble families of Rome. To attract customers bright signs with the name of the owner and his goods painted on them appeared above shops. Fruit, vegetables, sheep, shoes, hats were painted by "naive painters". Some of these painters were really outstanding masters, such as Niko Pirosmanishvili. One of the houses built in Kiev early in this century may also be considered as an advertisement. It is decorated by figures of sea monsters, shells and sea dragons. The story of the house is unusual. The owner of a cement plant couldn't sell his product as it was a new material and construction firms were quite conservative. So, when he learnt that a wellknown architect was going to build a new house for himself he offered cement free of charge on the condition that the house would be decorated by sculptures made of cement. The unusual building attracted everybody's attention and served as an excellent advertisement of the new building material. Today advertising uses all media — press, radio, television and cinema. (From a newspaper report) 3. Choose a, b, c, or d that best fits each sentence. 1) The first advertisements appeared in… a. the British Museum b. Cyprus c. “Daily Happenings” d. Kiev 3) The first newspaper was issued in… a. Rome b. Greece c. Memphis d. Cairo

2) To attract customers attention bright sings contained… a. a papyrus b. inscription c. fruit, vegetables, sheep, dragons d. a list of goods 4) One of the houses in Kiev is decorated by… a. figures of sea monsters, shells, dragons b. the Greek alphabet c. 300 stone fragments d. Rock drawings

4. Which sentences do not correspond to the contents of the story 1) As the story says the first advertisements appeared in different ways in various countries.

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2) Bright signs of sea monsters, shells, sea dragons were painted by "naive painters" 3) The oldest advertisement/was published in the excavations of the ancient Egyptian town 4) The first newspaper in the world contained announcements of meetings, births and marriages in the noble families of Rome. 5. Fill in the table using words from the text. First write contents of advertisements and then their forms. place Rome Kiev The British Museum Memphis contents forms *6. Say what you have learned about the history of advertisements?

VII. ACTIVITY 1. Warning cigarette advertising. 1) Read the text and understand the contents. Warning-cigarette advertising is dangerous to health. More than 252 million dollars was spent last year persuading people to buy a product which is known to be extremely bad, even fatal, for health. This is the most widespread and dangerous case of deception in advertising today. Young, healthy, handsome people still splash in pools with Salem cigarettes between their pearl-white teeth (something few heavy smokers have). It was typical for cigarette advertising of the 20s and 30s often to use celebrities to prove that smoking was good for digestion, or some such nonsense. We laugh at such balderdash (вздор) now. But today's cigarette advertising is just as dishonest. In one ad a handsome businessman smiles his best businessman's smile and barks: "Don't ask me why I smoke. Ask me why I smoke Winston. ” And one should certainly ask, because he is supposed to be so smart, since. Below is the warning: "The Surgeon General Has Determined That Cigarette Smoking is Dangerous to Your Health." Like the average smoker, he pays as much attention to that warning as the average ten-year-old pays to the sign on the escalator telling him to hold on to the handrail

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Cigarette smoking has been proved to be a contributing factor in lung cancer, heart disease and a number of other serious and often fatal illnesses. Perhaps in some Utopian world advertising agencies would refuse to work on cigarette advertisements and newspapers and magazines would refuse to accept cigarette advertising. But this can hardly happen in the near future. 2) Choose A, B, C, or D that best fits each sentence. 2.1 The author of the story states that cigarette advertising: a) hurts people’s health b) brings businessmen 252 million dollars c) is such balderdash now c) is a dangerous case of deception 2.2 It is quite clear from the story that cigarette advertising of the 20s and 30s deceived people that smoking: a) was good for digestion b) is known to be extremely bad, even fatal for health c) is just as dishonest d) is supposed to be smart 2.3 One can’t but pay attention to the fact that cigarette smoking has been turned out to be: a) a widespread factor in serious and fatal illnesses b) a good means for digestion c) a contributing factor in lung cancer , heart decease 2.4 As one ad says ________ has determined that cigarette smoking is dangerous for health a) the average ten-year-old b) advertising agency c) a celebrity d) the surgeon general 2.5 It was typical for cigarette advertising to use ________ to prove that smoking was good from some illnesses. a) a businessman b) newspapers and magazines c) celebrities d) young, healthy, handsome people 2.6 It is clear from the text that average smokers do not make up their mind about: a) warning b) Salem cigarettes c) dangerous case of deception d) handsome people 2.7 Is it true that smoking is considered: a) to be widespread b) to be popular c) to hold on to the handrail

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d) to be contributing factor in a number of serious illnesses 2. Read and translate the following text. What is your opinion of the problems. Modern methods of gathering and using information raise some important questions about privacy. Does one have legal rights to personal privacy? And if he does, at what point are his rights invaded? One of the first cases involving rights of personal privacy had to do with advertising. In 1903, a New York woman named Roberson discovered that her photo was being used to advertise a brand of flour. She sued the milling company, but she lost the case, because at that time, there were no laws protecting personal privacy from such advertising practices. Shortly afterwards, the state of New York passed one of the first personal privacy laws. According to these laws it was considered illegal to use information about a person to advertise a product unless a person gave permission. Soon other states passed similar laws. However, even today the law cannot tell exactly where one’s rights of privacy begin and end. Very often it takes a court case to decide whether a particular invasion of privacy is illegal or not.

LITERATURE 1.Market Leader.Intermediate Business Course.D.Cotton, D.Kent,2001. 2.Countdown. To First Certificate. Oxford. M.Duckworth and K.Gude. 2004.

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3.Business Vocabulary in Use. Professional English. Bill Mascull, 2004. Cambridge. 4.Test your Business Vocabulary in Use. Tricia Aspinall and G.Bethell. Cambridge University, 2004. 5.А.Д.Пароятникова, М.Ю.Полевая. Английский язык для гуманитарных вузов. 6.Right Word, Wrong Word. L.G.Alexander,2001. 7.Intermediate Vocabulary. B.J.Thomas,2000. 8.В.П.Кузовлев, Н.А.Лана. English Student’s book, 2000. 9.Oxford Advanced Learner’s Dictionary,1998. 10.English Grammar: reference and practice. Н.И.Петряева, Г.А.Глебова, Белгород, 2006. 11.Английский язык. Методические указания для студентов-заочников неязыковых специальностей. Белгород, 1998. 12.Шевелева С.А., Стогов В.Е. Основы экономики и бизнеса: Учебное пособие по англ. языку.- М.: Культура и спорт, ЮНИТИ, 2002.