3rd Edition

Upper Intermediate

David Cotton David Falvey Simon Kent

 What is Market Leader, and who is it for?
Market Leader is a m ulti-level business English course for businesspeople and students of business
English. It has been developed in association with the Financial Times, one of the leadin g sources of
business information in the world. It consists of 12 units based on topics of great interest to everyone
involved in international business.
This third edition of the Upper I ntermediate level features completely updated content and a
significantly enhanced range of authentic resource material, reflecting the latest trends in the
business world. If you are in business, the course will greatly improve your ability to communicate
in English in a wide range of business situations. If you are a student of business, the course will
develop the communication skills you need to succeed in business and will enlarge your knowledge of
the business world. Everybody studying this course will become more fluent and confident in using
the language of business and should increase their career prospects.

The authors

David Falvey (left) has over 25 years' teaching and managerial experience in the UK, Japan and Hong
Kong. He has also worked as a teacher trainer at the British Council in Tokyo, and was previously
Head of the English Language Centre and Principal Lecturer at London Metropolitan University.
David Cotton (centre) has over 40 years' experience teaching and training in EFL, ESP and English for
Business, and is the author of numerous business English titles, including Agenda, World of Business,
International Business Topics and Keys to Management. He is also one of the authors of the best­
selling Business Class. He was previously a Senior Lecturer at London Metropolitan University.
Simon Kent (right) has over 2 0 years' teaching experience, including three years as a n in-company
trainer in Berlin at the time of German reunification. He is currently a Senior Lecturer in business
and general English, as well as having special responsibility for designing new courses at London
Metropolitan U niversity.

4
 INTRODUCTION

What is in the units?

You are offered a variety of interesting activities in which you discuss the topic
STARTI N G U P
of the unit and exchange ideas about it.

You will learn important new words and phrases which you can use when you carry
VOCAB U LARY
out the tasks in the unit. You can find definitions and examples, and listen to the
pronunciation of new vocabulary in the i-Glossary feature on the DVD-ROM.
The DVD-ROM also contains further practice exercises. A good business dictionary,
such as the Longman Business English Dictionary, will also help you to increase
your business vocabulary.

READING
You will read authentic articles on a variety of topics from the Financial Times and
other newspapers and books on business. You will develop your reading skills and
learn essential business vocabulary. You will also be able to discuss the ideas and
issues in the articles.

LISTEN I N G
You will hear authentic interviews with businesspeople and a variety of scripted
recordings. You will develop listening skills such as listening for information and
note-taking. You can also watch the interviews and find further practice exercises
on the DVD-ROM.

This section focuses on common problem areas at Upper Intermediate level. You
LANGUAGE REVIEW
will become more accurate in your use of language. Each unit contains a Language
review box which provides a review of key grammar items. A Grammar reference
section can be found at the back of the book and on the DVD-ROM. The DVD-ROM
also provides extra grammar practice.

SKILLS
You will develop essential business communication skills, such as making
presentations, networking, negotiating, cold-calling and dealing with communication
breakdown. Each Skills section contains a Useful language box, which provides you
with the language you need to carry out the realistic business tasks in the book.
The DVD-ROM supplements the Course Book with additional activities.

CASE STUDY
The Case studies are linked to the business topics of each unit. They are based
on realistic business problems or situations and allow you to use the language
and communication skills you have developed while working through the unit.
They give you the opportunity to practise your speaking skills in realistic business
situations. Each Case study ends with a writing task. After you've finished the Case
study, you can watch a consultant discussing the issues it raises on the DVD-ROM.

These four units focus on different aspects of international communication.

WORKING ACROSS
They help to raise your awareness of potential problems or misunderstandings that
C U LTU RES
may arise when doing business with people from different cultures.

REVIS I O N U N ITS
Market Leader Upper Intermediate third edition also contains four revision units,
each based on material covered in the preceding three Course Book units.
Each revision unit is designed so that it can be completed in one session
or on a unit-by-unit basis.

5
 STARTIN G U P IJ Think of a good commun icator you know. Explain why he/she is good
at communicating.

[] What makes a good communicator? Choose the three most im portant

factors from this list.
• ftuency in the language • an extensive vocabulary • a sense of humour
• grammatical accuracy • being a good listener • physical appearance
• an awareness of body • not being afraid of • no strong accent
language making mistakes

B What other factors are im portant for commun ication?

EJ Discuss these questions.

1 What forms of written and spoken communication do you like using? Why?
2 What problems can people have with the different forms of communication?

3 How do you think those problems can be solved?

Which of these words apply to good com mun icators and which apply
Good to bad communicators? Add two adjectives of your own to the list.
com m unicators articulate coherent eloquent extrovert fluent
focused hesitant inhibited persuasive rambling
reserved responsive sensit ive succinct vague

6
 UNIT 1 •• COMMUNICATION

m Which of the words i n Exercise A have these meanings?

1 concise 5 clear and easy to understand

2 reluctant to speak 6 good at influencing people

3 talking in a confused way 7 outgoing

4 able to express ideas well 8 eager to react and communicate

II Complete the extract below from a talk by a com munication expert with
the verbs from the box.
I clarify confuse digress engage explain interrupt tt5teft ramble

'Good communicators really ! i �f.e n . 1 to people and take in what is said. They maintain
. . . .

eye contact and have a relaxed body language, but they seldom ...... . ..... 7 and stop
people talking. If they don't understand and want to . . . ...... . . . 3 something, they wait for
a suitable opportunity.

When speaking, effective communicators are good at giving information. They do not
. . . ... .. . .. .4 their listener. They make their points clearly. They will avoid technical terms,
abbreviations or jargon. If they do need to use unfamiliar terminology, they ....... . .. . . 5 by
giving an easy-to-understand example. Furthermore, although they may . 6 in order
. . . . . . . . . . .

to elaborate a point and give additional information and details where appropriate, they
will not . . . . . . . . . . . 7and lose sight of their main message. Really effective communicators
.

who have the ability to .. . .. . .. . .. . 8 with colleagues, employees, customers and suppliers
are a valuable asset for any business.'

E �l» cou Listen to the talk and check your answers.

See the DVD-ROM � D Thin k of a poor or bad commun icator you know. How could they i mprove
for the i-Glossary. V their skills? What advice would you give them?

IJ �ll) co1.2 Listen to the first part of an interview with Alastair Dryburgh,
Improving an expert on communication. Does he think technology makes good
com mu nication easier?
com mun ications

E) �ll) CDl.2 Listen again. What fou r key poi nts does Alastair make about
com munication?

II �ll) CD1.3 Listen to the second part of the interview. Alastair gives an example
of a company which has used technology to change the way it communicates
with customers. Give reasons why it com m u nicates well.

Alastair Dryburgh E �ll) CD1.4 Listen to the final part, where Alastair is describing a bad customer
experience. What mistakes did the company make, and how could they have
i m p roved the customer experience?

Watch the
interview on
D Discuss an example you know of a company which commun icates well with
its customers or a company which communicates bad ly. What advice would
the DVD-ROM. you give to the bad communicator?

7
UNIT 1 ... COMMUNICATION

What irritates you most about these forms of com m u n ication?

E-mail: for and e-mail
against mobile phone
conference calling
voicemail

BlackBerry
web presentation

l!J What are the advantages and disadvantages of using e-mail?

B Read the article on the opposite page q uickly and choose the best title.
1 Time to switch your BlackBerry off
2 How to deal with your inbox
3 A quiet word beats sending e-mail

l:J Read the article again and list the advantages and disadvantages of using
e-mail. Does the writer mention any that you listed i n Exercise B?

II Find expressions in the article which mean the following.

1 looking at another person (paragraph 2)
2 upsetting or embarrassing someone by being rude or tactless (paragraph 2)
3 not be caught or punished when you have done something wrong (paragraph 4)

4 pretend something is true in order to deceive people (paragraph 4)

5 keeping writing or talking to someone, even though you do not see them often
(paragraph 8)
6 aiming a n idea or product at someone (paragraph 8)

D Complete this text with the expressions in Exercise E i n the correct form.
I don't have a problem with him . . . ... . . . . . . 1 his family whilst he's posted overseas and
sending e-mails in office time. That's not the main issue. However, if h e thinks he can
.... .
. . . . . . .2 sending such abusive e-mails to colleagues, he is sadly mistaken and he'll have
to face the consequences of his actions later. He is clearly ............3 about his colleagues
and spreading nasty rumours. He'd be better off speaking to colleagues . . . .... if he has
. . . . .11

problems with them. He's slightly better when speaking with customers, but he needs to
think about who he's speaking to when he's .... . . .. ..5 our products to them. And he just
. .

doesn't know how to say no to people without . . . . . . . . . . . .6•

m Discuss these questions.

1 'Business is best done face to face.' Do you agree?
2 How could communication be improved in your organisation?

3 How will communication change in the office of the future?

4 What do you do when you receive a nasty e-mail?
5 Is communication better these days with all the new technology?

8
 UNIT 1 �� COMMUNICATION

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

by Luke Johnson

E-mail might just be responsible for

t h e pro d u c t i v i t y i ncrcases t h a t
economists te l l u s a r e the k e y t o
rising prosperity. B u t i t could also
5 be sending us all mad.
The truth is that business is gener­
ally best clone face to face. and if that
is impossible. then speaking via the
phone. But too many of us now hide
10 behind s i l e n t , typed communica­
tions. The trouble is that the recipient
of an e-mail does not hear a tone of
voice or sec a facial expression; nor
can the sender mod i fy their message
15 halfway through, sensing that it is
causing offence. When you read an
e-mail, you cannot tell the mood of
the e-mailer.
A permanent written form i s
20 deadly i f you arc reeling impetuous and longer sorting out the e-mails themselves logically. It allows you to
and emotional. Too often l have that mailer from all the junk. It has reply s w i ft l y to a host of di fferent
made the mistake of sending an 45 become, I'm afraid, a dangerously questions when time is short. You
irritable response. which w i l l have corrupted medium. Large companies don't have to worry about journey
festered and angered the other encl suffer chronic overuse of ·reply to all'. 70 times or travel costs, unreliable post­
2s much more than a d i fficult telephone Moreover. e-mail can be a terrible age or engaged phones or voicema. i l .
exchange. Spoken words fade, but distraction, espec i a l l y if you use E-mail i s a marvellously economi­
e-mail is forever. so a B l a c k B e rry. l was recently cal tool for keeping in touch with
lt is so much easier to be tough via reprimanded for peeking a t mine far-flung commerc ial contacts; you
e-mail. or to get away with weak during a board meeting - a gross 75 can send them a note at your leisure,
30 excuses. or to make things up, or form of' hypocrisy on my part. 24 hours a day. It is also a terrific
to say no. Almost invariably. it is because I once threatened to sling method of discreetly and d i rectly
more human and serious to have 55 out o f the window any PDA-type pitching to someone powerfu l . It
a real d is c u s s i o n rather than a devices being used in meetings certainly beats trying to get a meet-
bizarre online conversation. I know I chaired. I have now vowed to so ing or even reach them on the phone.
35 employees who have been f i red for switch off both B l a c kBerry and Like it or not. I could not do my
sending abusive e-ma i l s , or who mobile in all meetings - anything job without e-ma i l . Meanwhile, I
have faced severe legal conse­ GO less is uncivi l . know a senior financ ier, an ex-chair
quences for writing something they Tt must b e admitted that e-mail ofa FrSE company, who still has his
should have just said verbally. is hard to beat as a transmitter of RS secretary print out h i s e-mails for
40 Everyone in business finds their documents and data. It forces the him to read so he can then dictate
inbox is almost swamped every clay sender to caref u l l y think through replies for her to e-mail back. Now
with spam. I notice I spend longer 65 their arguments and express that really is mad.

•eaa1ma1rrnwi Idioms
a Complete the idioms below with the words from the box.

bush grapevine loop mouth nutshell picture

point purposes stick tail wall wavelength

a) to put it in a . . . . . . . . . . . . g) can't make head nor . . . . . . . . . . . . of it

b) to get straight to the . . . . . . . . . . . . h) to talk at cross-. . . . . . . . . . . .
c) to hear it on the . . . . . . . . . . . . i) to beat about the . . . . . . . . . . . .

d) to put someone in the . . . . . . . . . . . . j) to get it straight from the horse's . . . . . . . . . . . .

e) to get the wrong end of the . . . . . . . . . . . . k) to be like talking to a brick . . . . . . . . . . . .
f) to be on the same . . . . . . . . . . . . I) to keep someone in the . . . . . . . . . . . .

9
UNIT 1 .. COMMUNICATION

EJ Match the idioms i n Exercise A to these definitions.

1 to fail to understand anything 9
2 to share similar opinions and ideas
3 to give the main facts in a short, clear way

4 to not understand something

5 to delay talking about something
to keep someone in the
6 to give the latest information
loop
7 to talk about the most important thing
8 to hear about something because the information has been passed
from one person to another in conversation
9 to be told something by someone who has direct knowledge of it
10 to try to communicate with an unresponsive person

11 to include someone in group communication

12 to not understand someone

to be on the same
wavelength
B Complete these sentences with the idioms from Exercise A i n the
correct form.
1 OK, I ll . . . . . . . . . . . . . I'm afraid it's the last time we're going to miss a deadline.
'

2 Paola and I and agree on most things. We seem to be . . . . . . . . . . . . .

3 A lot happened while you were on holiday. Let me . . . . . . . . . . . . .

4 I think we are . . . . . . . . . . . . . I mean next week, not this week.

5 He never gives you a straight answer. He's always . . . . . . . . . . . . .
6 I . . . . . . . . . . . . that he's been fired. Is it true?
7 The new organogram is very complicated, but to . . . . . . . . . . . . , we still report to the
same manager.
8 I'm afraid that isn't right. If you think our biggest problem is communication, then
you have . . . . . . . . . . . . .

9 This document from our subsidiary makes no sense at all. I . . . . . . . . . . . . .

10 I've tried to get my supplier to give us a discount several times, but they just won't.
It's like . . . . . . . . . . . . .

1 1 The company is going bankrupt. The CEO told me himself. I heard it . . . . . . . . . . . . .

12 I'll need regular updates about the progress of the project. I'll also need to know
what's going on when I'm away. Please . . . . .. . . . . . . .

liJ Ask your partner these questions.

1 What have you heard on the grapevine recently?
2 When is it necessary to put someone in the picture?
3 In what situations is it good to get straight to the point?
4 Is there anything you can't make head nor tail of?
5 Who are you on the same wavelength as? Why?
6 Have you ever felt you were talking to a brick wall?
7 When have you been kept either in or out of the loop? How did you feel?

10
 UNIT 1 H COMMUNICATION

SKILLS What expressions can you use in these phone situations?

Dealing with a) the person speaks too fast or too quietly
comm u nication b) you want someone to stop talking while you do something
breakdown
c) you don't understand a word/expression the other person uses
d) you want to make sure of the spelling of something
e) you want more information about a subject
f) the connection is not good and you can't continue the conversation

g) you want to confirm some information

El �>)) co1.s Listen to a telephone conversation between Bernard Klebermann

and Koichi Sato. Which of the problems mentioned in Exercise A do the
speakers have when communicating?

11 �>» CDl.6 Listen to the same two speakers in a similar conversation. Explain
why the second conversation is better. Give as many reasons as you can.

m �>)) CDl.6 Listen to the conversation again and complete these extracts with
words or expressions from it.
1 That's good. Could you . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . while I get a pen?
2 Sorry, Bernard, I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Could you . . . . . . . . . . . . . . . . . . . . . . . . a little,
please? I need to take some notes.
3 Let me . . . . . . . . . . . . that: 200 posters, pens and pencils and 50 bags . . . . . . . . . . . . . it.

4 Seel- ... sorry, could you . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . me, please, Bernard? I don't

think I know the company.
5 'They've placed an order for 518 of the new lasers .. .'
'Sorry, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580 lasers?'
6 Sorry, I don't follow you. What . . . . . . . . . . . . 'roll-out' . . . . . . . . . . . . ?
7 But I need details about the company ... Sorry, it's . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Could you . . . . . . . . . . . . . . . . . . . . . . . . , please? I can't hear you very well.
8 Sorry, I still can't hear you. I'll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , maybe the line will be better.

D Match each extract in Exercise D to the situations you discussed in

Exercise A. Two of them correspond to the same situation.

D Work in pairs. Role-play two situations.

Student A: Turn to page 132. Student B: Turn to page 140.

USEFUL LANGUAGE

ASKING FOR REPETITION CHECKING IN FORMATION ASKING FOR FURTHER TECHNICAL PROBLEMS
Sorry, could you repeat that? Would/Could you spell that, INFORMATION Sorry, it's a bad line.
I didn't (quite) catch that. please? Could you give me some Can I call you back?
Can I �ad that back to more details, please? It's a terrible connection.
Could you speak up, please?
you? Could you be a bit more I'm afraid I'll have to get
Could you say that again,
specific? back to you later.
please?
PROBLEMS WITH Could you explain that in Sorry, we were cut off.
UNDERSTAN DING more detail?
ASKING FOR CLARIFICATION
Sorry, I'm not with you. SUMMARISING THE CALL
What do you mean by ...?
Sorry, I don't follow you. Let me go over what we've
What does ... mean?
Sorry, I'm not sure I know agreed.
Could you clarify that?
what you mean. Let m e just summarise ...
11
A product defect Lawrence Discount Stores
A weakness in the company's communications Another incident a few weeks ago showed that
was highlighted by the following incident. What internal communications in the company were not
mistakes do you think were made in the way working well. Read about the problem and discuss
this problem was handled? How could they be the reason(s) why WCH lost an important customer.
remedied?
Richard Lawrence, one of WC H's best and oldest
About three months ago, a customer found a fault in customers, phoned William Hooper about
WCH's most up-to-date, multi-functional cell phone. the company's new digital camera, the EX-120.
Her phone became very hot after being recharged He told Hooper that he'd probably be placing an
and it burned her hand. 'It was so hot, I thought it order for 5,000 of the products in the next few
would explode,' she said. The customer complained weeks. Hooper passed on this information by
to the Customer Service Department, who sent her phone to the Sales Manager. When Lawrence sent
a replacement phone. The employee dealing with in the order five weeks later, the Sales Manager
the complaint did not inform either the Marketing or sent him an e-mail saying that unfortunately
R&D Departments about the fault. After this incident, the new product was out of stock. Lawrence
there were a number of similar complaints. As a complained to Hooper, who asked the Sales
result of bad publicity, the phone was withdrawn Manager why he hadn't given priority to Lawrence's
from the market. order. The manager replied, 'I was waiting for him to
confirm his order. I didn't realise that his order had to
be given priority.'
The new Communications Director
Betty Friedman, the new Communications Director, hired a firm
of consultants, Ward Associates, to analyse the communications
problems in the company and to come up with recommendations
for improvement. Read this extract from the report.

1 Internal communications
Problem:
Communications between Directors and Heads of
Department need to be improved.

Recommendations:
• Heads of Department should send weekly reports to
the Board of Directors. This would enable Directors to
keep in touch with key developments in the company.

• A new manager should be appointed to be in charge

of key accounts, such as the Lawrence Discount
Stores account. He/She would ensure that key
customers were given personal attention.

2 Sales reps/Head Office

Problem:
Head Office is not receiving information quickly from sales
representatives. This has resulted in delays in processing
orders and insufficient information about customers.

Recommendation: "4>» CDl.7 William Hooper is talking to Betty

Issue all sales reps with BlackBerry devices and instruct Friedman. Listen to his reaction to the consultants'
reps to send daily reports to the Sales Department.
recommendations and summarise his attitude
to weekly reports, appointing a new account
3 Customer Services Department manager, and defective products.
Problem:
The department needs a new procedure for dealing with
product complaints.

Recommendation: "4>l) CDl.8 Listen to Joanna Merkowitz, a sales

Any complaint about a product which has health and representative, talking to Betty Friedman about
safety implications should be forwarded immediately to the consultants' recommendations. Why is she
the following departments: Marketing, Research and against giving daily reports? Why does she enjoy
Development, Public Relations. her job so much?

1 Work in small groups. You are members of the Board of Directors.

Discuss each of the consultants' recommendations. Decide
whether you agree or disagree with each recommendation, noti ng
down your reasons.

2 Consider any other ideas that your group has to improve

communications in WCH.

Watch the Case study commentary on the DVD-ROM.

Writing
As Communications Director at WCH, write a follow-up e-mail to the Head of
Ward Associates, summarising the decisions you have taken, with your reasons.
c:) Writing file page 127
13
 START I N G UP fJ What brands do you know that are marketed internationally? Thi n k of one
brand in each of these categories which is marketed internationally.
I cars clothing cosmetics electrical equipment soft drinks I

[I Answer these questions for each brand you listed i n Exercise A.

1 What is its country of origin?
2 What is its brand image?
3 What is the target market/segment?
4 What sort of advertising campaigns does the brand use? (Are they standardised or
adapted to local markets?)

5 What is the current slogan?

II What are the most famous international brands i n your country? What sort
of image do they have a) at home, and b) abroad?

14
 UNIT 2 H INTERNATIONAL MARKETING

IJ Complete each group of word partnersh i ps (1-5) with the correct word from
Marketing word the box.
partnerships I brand customer market marketing product

1 .Marketing
. . . . . . . . . . . mix 4 Customer
. . . . . . . . . . . . profile
strategy retention
plan base

2 Market
. . . . . . . . . . . . adaptation 5 Brand
. . . . . . . . . . . . positioning
penetration identity
segmentation extension

3 Product
. . . . . . . . . . . . placement
portfolio
feature

l!I Choose the correct word partnership from each group i n Exercise A to
complete these definitions.
1 When entering a new market, a SWOT analysis (strengths/weaknesses/opportunities/
t h reats) is conducted on a product, service or company before deciding on a . . . . . . . . . . . . .

2 It may also be necessary to carry out a STEP a nalysis (sociological/technological/

economic/political) of a new geographical market in order to decide if changes are to
be made for . . . . . . . . . . . . .

3 The USP (unique selling point) is the . . . . . . . . . . . . which makes it different from its
competitors.
4 Part of building up a . . . . . . . . . . . . is analysing the buying habits of consumers.

5 . . . . . . . . . . . . is how a product is placed (up-market, mid-market, budget) in relation to

rival products.

D Look at these groups of words and phrases. Find the odd one out i n
each group.
1 a) growing market b) developing market c) expanding market d) declining market

2 a) questionnaire b) focus group c) promotion d) survey

3 a) market sector b) market research c) market segment d) market niche

4 a) international market b) overseas market c) domestic market d) worldwide market

5 a) launch a product b) introduce a product c) bring out a product d) withdraw a product

6 a) special offer b) free sample c) discount d) slogan

7 a) retailer b) distributor c) wholesaler d) exporter

m Discuss these questions.

1 What are some of the problems companies may face when they try to internationalise
a brand? (For example, brand names)
The advantages of standardization are that it helps reduce costs/
It helps improve the management and design with less customization2needed, What are some of the advantages/drawbacks of standardised global advertising?
enabling interchangeability of components, and provides practical application
of expert knowledge enhancing operability and improves performance.
Standardization helps to building the product image. 3 Why do some brands/products fail in other countries? Can you give any examples?
The disadvantage of standardization is the loss of uniqueness.
4 Give an example of an expanding market in your country.
See the DVD-ROM � 5 Give some examples of products or services which are targeted at niche markets.
for the i-Glossory. W 6 What's the difference between a retailer and a wholesaler?

3.Maybe it is depend on the brand-consumer bond, brand image/SOme other brand offer offers something more profitable. Colors and design style used by the
brand could recall
negative associations for
people in different countries.
5. A niche market is a segment of a larger market that can be defined by its own unique needs, preferences, or identity that makes it different from the market at large.
FOR EXAPPLE, niche product ideas for homeowners could be Home security cameras (in-home, doorbell, smart home devices, etc.)
Furniture/home decor for small apartments
6. RETAILOR IS a person or business that sells goods to
the public in relatively small quantities for use or consumption rather than for resale.

WHOLESALER IS a person or company that sells goods in large quantities at low prices, typically to retailers.
15
UNIT 2 .... INTERNATIONAL MARKETING
2. Italy is once again the leading luxury goods country in terms of number of companies,
while companies based in France have the highest share of sales.
fl Answer these questions.
1. They are world-famous and luxury brands
Italian luxury 1 What do the following have in common: Gucci, Chanel, Calvin Klein, Louis Vuitton,
Christian Dior, Versace, Giorgio Armani, Ralph Lauren, Prada, Yves Saint Laurent?
2 Which countries tend to make the world's most desirable luxury brands?

3 What would you buy if money was no object?

EJ Read the article below quickly and complete this information.

Palazzo Della Valle, Corso Venezia, Milan
Tod's group HQ - where?
leather shoes and bags
Key products
Diego Della Valle
Chairman
Louis Vuitton, Hermes, Chanel
Competitors that Chairman admires
China and India
New markets
To complete the globalisation of Tod's 6
Objective in next five years

Diego Della Valle: Italian atmosphere

is central to Tod's global expansion
by Vincent Boland

It is not too difficult, in the high­ who aspire to the same sense of the
ceilinged elegance of Palazzo Della Ltalian lifestyle as do customers in
Valle on the Cor o Venezia in Milan. more mature market . 'A luxury-
to be seduced by the charms of a 40 goods company has to have control of
5 certain kind of Italian life tyle. Here its image." he say . ·For Tod·s. the
is the headquarters of Tod"s Group. thing is to communicate thi tradition,
which has become a powerhouse in the generations of work that have
the marketing of that vision to the gone into our products. For us, it"s an
world's wealthy and discerning. 45 absolute priority.'
10 The atmosphere is delibcra1c: where To achieve it, one must put qualily
some Italian fashion houses have before quantity. and one must main­
expanded ever further into the realms tain the group's traditions even as it
of celebrity and glamour. Tod's is globalises. which it has been doing
anchored as firmly as it can be to so fairly relentlessly in 1he past decade.
15 its family roots and its trad itional. The challenge is to marry 1radi1ion
hand-made, century-old heritage. with modernity in a way that not all He expects China and India to
Its signature products - hoes and Italian luxury-goods and fa hion account for as much as 25 per cent of
bags - are made of leather. a raw producers have managed. Tocl"s has 75 revenues by then. because the growth
material that has remained almost 55 done i t . Mr Della Valle says. by potential is much higher than in more
20 unchanged since it was first discov­ maimaining one key vision: 'We're a traditional markets. 'There is a much
ered. A new advertising campaign luxury-good company. not a fashion bigger appetite for luxury goods
will take the company back to basics. company.· in those markets than in mature
with a focus on Italian families and This distinction between fashion so markets. and clay by clay more people
their lifestyles - actual Italian fami- 60 and luxury is central to Mr Della are coming into this market.·
2 5 lies. however rich and privileged Valle's global ambitions. The two Bur as for China as a competing
- rather than on celebrities. have different product and ought to producer. Mr Della Valle is sceptical
"The Italian lifestyle is in our have d i fferent stra1egies, he says. about its ability to produce luxury
DNA, and in our group, we believe The compe1itors he admires most, ss goods.·Jt lacks the structure of small
in our DNA,' says Diego Della Valle. 65 he says, are Louis Vuillon, Hermes companies. rhe tradition. the concept
30 the Chairman and Chief Executive and Chanel. of excellence· that Italian luxury­
ofTod's Group. Mr Della Valle says that the goal in goods producers have inherited and
This image is especially important the nexl live years is 'to comple1e the which they must maintain as a com-
in new markets, such as China and globalisation· ofTod's, for which he has 90 petitive advantage. he say�. ···Made
.
India. he says. In common with other 70 been laying the groundwork. Td like in Italy" doesn"t necessarily mean
JS luxury-goods makers, he i intent on Tod"s to be much bigger than it is now. ex pen ive goods." he says. ·1t means
capturing consumers in tho e markets without diluting the brand.' he says. excellent goods."

16
 UNIT 2 .... INTERNATIONAL MARKETING

II Read the article again and correct this summary.

Tod's Group wishes to convey the charms of the Italian lifestyle to the world's rich. To do
this, it focuses on celebrity and glamour, and its new advertising campaign will feature
Italian celebrities. The Chairman says he wants to expand into India and China to capture
consumers there who appreciate the Italian lifestyle. To enter such big markets, Tod's will
need to think about quantity as well as quality.

Tod's is primarily a fashion company and needs to be much bigger. China and India have
more possibility for growth than Tod's traditional markets. The Chairman is worried
because China will be able to produce luxury goods more cheaply. In future, Tod's will
look to lower production costs by manufacturing in low-cost countries.

l:J Match words from each column to make word partnerships. Then check your
answers in the article.
1 com petitive c a) markets
a/b
2 traditional b) markets

3 raw d c) advantage

4 mature b/a d) materials

5 global e e) ambition

II Discuss these questions. 1. Louis Vui:on, Gucci, Armani.

1 What products do you know that rely on their heritage and cultural background?
2. No, if Tod’s starts producing his goods in low cost countries
it will destroy the brand image.
At the moment Tod’s is seen as a producer of luxury goods, 2 In a recession, do you think companies such as Tod's should manufacture in low-cost
if the goods are produced in low cost lands it will lose his brand image
and it will have to recreate a new brand iden*ty. countries rather than at home? What are the advantages and disadvantages of this?
3. No, because mostly they are poor quality and
3 Would you ever buy a fake luxury product? by buying a fake luxury product you support the bad work
environment in low cost countries

4 Do you agree that designer luxury goods are always higher quality than non-designer
4. Well, i can say that luxury goods tend to last longer
and have a better quality. goods?
Although this may be because we are more careful about luxury goods

IJ �>l) co1_9 Listen to Svend Hollensen, Professor of International Marketing at

How to market the U niversity of South Denmark, and answer these questions.
internationally 1 Which two marketing strategies does he mention?
2 What does he say about a) the OneCafe company, and b) Lux?

I] �>» couo Darrell Kofkin is Chief Executive of the Global Marketing Network,
a training organisation which offers qualifications in international marketing.
Listen to the interview and complete the gaps in these two extracts .
marketers
... a new curriculum that enables . 1 worldwide to have the latest practices
.
. . . . . . . . . . . . . . . . . . . . . . 2, the
techniques
3 and 4, to enable them to become
latest knowledge. . . . . . . . . . . .
intenational 5 marketers.
. . . . . . . . . . . . . . . . . . . . . . . .

business plan
6, develop a 7 , develop a
So our students are asked to write a report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

presentation 8, write a webcast .9, present an . intenational

. briefing paper 10 just as they would
Svend Hollensen . • . . . . . . . . • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -

do in the workplace. Because we know in talking to employers world wide 11 that they want . . . . . . . . . . . .

marketing professionals that have the capabilities 1 2 and skills required of today's demanding . . . . . . . . . . . .

global business
. . . . . . . . . . . .13 environment.
. . • . . . . . . . . .

Watch the
interviews on
the DVD-ROM.

Darrell Kofkin

17
UNIT 2 .... INTERNATIONAL MARKETING

LANGUAGE REVIEW • A compound noun is two nouns together. Noun compounds are common in
business because they are shorter and more convenient than noun phrases.
Noun
For example:
compounds and a market survey rather than a survey into the market
noun phrases a product design brief rather than a brief for the design of a product
• Longer noun phrases are also common. They may consist of adverbs, adjectives
and compound noun. This pattern is typical:

adverb adjective/-ing participle noun head noun

highly confidential sales report
excellent sponsorship deal
expanding customer base

Cl Grammar reference page 146

IJ Find noun phrases i n the article on page 16 which have similar meanings
to these phrases.
1 a programme of activities over a period of time with the aim of persuading the public
to buy a product (paragraph 3) advertising campaing
2 the person who has the highest position in a company (paragraph 4) chief executive

3 the makers of clothes, shoes, etc. in new and changing styles (paragraph 7) fashion produsers

4 an organisation that makes expensive things bought for comfort and pleasure,
not for basic needs (paragraph 7) luxury-goods company
5 possibility for future development and expansion (paragraph 10) growth potential

l!I Cross out the word in each group which does not make a compound noun
with the word i n bold.
1 marketing campaign I budget I leader I strategy
2 market leader I survey I check I sector
3 product market I range I features I launch

4 advertising campaign I exchange I agency I slogan

5 brand awareness I loyalty I image I contract
6 sales figures I conditions I forecast I targets
7 price promotion I rise I product I range

II Write the words in each of these noun phrases i n the correct order.
3 2 4 1
1 advertising impressive campaign really
2 4 1 3
2 customer department new relations
2 3 1 5 4
3 competitive mobile highly market phone
2 3 1 4
4 successful product incredibly launch
2 3 1
5 customer base loyal
2 3
1 4
6 thorough extremely report sales
2 1 4 3
7 brilliant absolutely campaign global
2 1 3 4
8 com petitive increasingly marketing environment

m �i» CD1.11 Listen and check your answers.

18
 U N IT 2 �� INTERNATIONAL MARKETING

IJ Brainstorming is a useful way of generating creative ideas i n meetings.

Brainstorm ing Decide which of these tips are good advice and which ones you disagree
with. Then compare your answers with a partner.
Probably that is a good tip because this
1 Explain the purpose of the meeting clearly. can make the discussion more open
2 Ask each person to speak in turn, starting with the most senior.
3. Maybe that`s the good idea
3 Announce the time limit for the meeting. 4. I think that is a very important
and necessary tip that needed to
use during brainstorming (in order to encourage
4 Avoid criticising or judging ideas during the session. as manycontributions as possible,)
5. yes, it is very important to listen to each of the opinions,
5 Encourage ideas, however unusual they may be. but for example some stupid assumptions will only take time

6 Don't interrupt when people are offering suggestions.

6. Треба перекалсти Theoretically, speculation
7 Make sure everyone keeps to the point. should be as broad as possible, but most participa
ts are likely to set limits on what matters.
8 Don't spend time on details. that`s the good idea

a �ll) CDl.12 Listen to the first part of a brainstorming meeting between Martin
Thomas, the Marketing Director, who chairs the meeting, and three other
members of the Marketing Department at Business Solutions Limited:
Carol Rueckert, Caroline Holloway and Guillem Rojas. Then answer these
questions.
1 What do they want to achieve at the meeting? 1.To come up with suggestions for the location,
accommodation and leisure-time activities for their
international sales conference.
2 What three locations are suggested? 2. Amsterdam, south of Portugal, Florence

II �'» co1.n Now listen to the rest of the meeting and answer these questions.
1.Four-star hotels or boutique hotels
1 What types of accommodation does Carol suggest? 2 A hatfday to see the sights; a gala dinner; an hour a day
for networking and for people to meet and discuss anything
2 What suggestions are made concerning the free time of delegates?

m Match the comments made by the participants to the headings i n the Useful
language box below. Some comments can be put under more than one heading.
Stating objectives: 1 ... so the purpose of the meeting this 6 I think it's a great city ... Expressing enthusiasm:

morning is to ... Agreeing

7 Good idea, yeah.
Agreeing 2
Expressing enthusiasm:
Yeah, it sounds great.
8 That's an excellent suggestion, yeah,
Encouraging contributions :3 ... have you got any ideas for where we that's great. Expressing enthusiasm:
Agreeing
can have this?
9 Yeah, any other ideas about what
Encouraging contributions : 4 OK, anyone else? we ... what we can do? Encouraging contributions :
Expressing enthusiasm: 5 That's great. Any other ideas, any options? 10 That's true. Agreeing
Encouraging contributions :

II Choose one of these situations and hold a brainstorming meeting.

1 Your company has developed a new sports or music magazine. Brainstorm ideas
for an advertising campaign.
2 Your company will shortly be receiving a visit from some important Chinese
businesspeople who wish to set up a joint venture with your firm. Brainstorm
ideas for a suitable programme for the three Chinese visitors.

USEFUL LANGUAGE

STATING OBJECTIVES EXPRESSING ENTHUSIASM ENCOURAGING CONTRIBUTIONS AGREEING

The purpose of the meeting That's great! Don't hold back. Yes, that's a good idea
this morning is to ... That's the best idea I've heard Say whatever comes to mind. because ...
What we need to achieve for a long time. Any other ideas? Absolutely, because ...
today is ... That's an excellent Exactly, because ...
At this stage, we want all your
Our objective here is to ... suggestion. ideas, however crazy you You're (absolutely )
think they are. right because ...
19
 Creating a
global brand
A successful French cosmetics company plans t o go g lobal

Background Key features of Physique

Henri-Claude Cosmetics (HCC), a French cosmetics Based on redwood and cedar, with citrus and spices,
and personal-care company, has created a highly Physique has a fresh, woody, long-lasting aroma.
successful eau-de-cologne for men under the brand • IL has five other secret ingredients, known to
name Physique. This is the company's best-selling
only a small number of senior managers.
men's fragrance and the best-known brand in
• The scent is very appealing to women. Men who
their product portfolio. HCC is now planning an
international campaign for Physique early next year. use Physique say they feel confident, attractive
It intends a high-profile launch in 10 countries, and sophisticated.
which will enable the brand to achieve international • Its target audience in France is ambitious, career­
recognition. The theme of the campaign will be minded men in the 30--40 age range.
'Physique for the Urban Man'.
The eau-de-cologne is positioned as a premium
A global ambassador - a celebrity in the arts world - fragrance. lt is priced at the top end of the market.
will be chosen to lead the campaign.

,.>» CDl.14 Listen to a conversation

between Carla Fernandez, Global PRODUCT DETAI LS
Marketing Manager, and Pierre
Martin, Chief Executive of HCC.
PHYSIQUE
They are talking about the results Product shape: Tall, rounded Promotion: Commercials on
bottle, solid appearance. Black, French television; radio spots;
of research carried out in overseas
with the brand name in the full-page advertisements in
markets concerning the international centre. Silver top. Screw top prestigious magazines, e.g.
launch of Physique. Make notes on or spray. Paris Match, Marie Claire, etc.
the following aspects of the product: Average retail prices: Special promotions at high-class

40ml $60 events such as Longchamp

• target audience racing stadium, and in embassies
75ml $75
•
and duty-free shops at the
brand image 1 00ml $95 airports.
• name 125ml $1 1 0 Words associated with
• positioning The price places Physique in Physique by consumers
• packaging the top ten most expensive male (in order of frequency): masculine,
•
fragrances. sensual, sophisticated, elegant,
slogan
Distribution in France: sold energetic, alluring, spicy,

exclusively in parfumeries glamorous, individualistic.

(specialised stores for cosmetics Quotation from sales literature:

and toiletries) and in shops in top 'Physique man is confident,
hotels. ambitious and resilient. He is at
home in any city and enjoys the
challenge of urban life. He has
a lot of creative energy, travels
widely and is optimistic about
the future.'
 UNIT 2 •• INTERNATIONAL MARl<ETING

Preparation for the international marketing launch

Having received the results of research in a number of potential overseas markets,
the Marketing Department of HCC has organised a meeting to brainstorm ideas for
the global marketing strategy of Physique.

You are members of the Marketing Department of HCC.

1 Work in groups and brainstorm the points listed in the rough notes. One person in
each group should take notes. Then meet as one group and select some of the best
ideas for further study.

2 In your groups, devise a one-minute television commercial for the international

launch. Using a storyboard*, present the ideas of your group to your colleagues.
Then as one group, choose the best commercial. If necessary, take a vote.

* A series of pictures showing the sequence of scenes (setting, action, dialogue) of

a TV commercial. A storyboard helps marketing staff to visualise the concept for the
commercial.

BRAINSTORMING SESSION
1 Which 1 0 countries should be chosen for the launch?

2 Does Physique need a new name? If so, what?

3 Should Physique continue be targeted at the 30-40

age group? If not, what age group should it target?

4 Should Physique continue to be positioned as

a premium fragrance, or should HCC market it
as a mass fragrance, with a different pricing
structure?

5 The container of Physique must be changed.

How should the new container look? Plan the
new packaging (shape, design, materials).

6 Price: Are the present pricing levels

appropriate? Should HCC offer a cheaper
version of Physique for emerging markets?

7 Distribution: Should HCC continue to sell the fragrance

in exclusive outlets in overseas markets, or should it
use a wider variety of outlets? If so, what sort of outlets
should it choose?

8 Promotion: Who should be the international

ambassador(s) for the brand? What special promotions
could HCC organise in the overseas markets?

9 Physique needs a new slogan. Ideas?

1 0 Manufacture: Is it now time to manufacture the

fragrance in low-cost countries? If so, which countries
would be suitable?

Watch the Case study commentary on the DVD-ROM.

C)
Writing
As a member of the Marketing Department of HCC, write the
action minutes for the brainstorming session you attended.

Cl Writing file page 130

 STARTING U P IJ Work i n pairs. Ask each other the questions i n the quiz. Then turn to
page 132 to find out how good you are at building relationships.

1 YOU ARE IN A ROOM WITH A 3 ON FESTIVE OCCASIONS, 5 DO YOU PREFER:

GROUP OF PEOPLE WHO DON'T E.G. NEW YEAR, DO YOU: a) to socialise with colleagues only
KNOW EACH OTHER. DO YOU: a) send greeting cards to everyone if you have to?
a) introduce yourself? you know? b) to socialise often with
b) introduce a topic of b) reply only to cards received? colleagues?
conversation? c) send e-mails? c) not to socialise with colleagues?
c) wait for someone to say
4 DO YOU THINK 6 DO YOU LIKE TO HAVE
something?
SMALL TALK IS: CONVERSATIONS WITH:
2 WHEN YOU ARE INTRODUCED a) enjoyable? a) people who share your
TO PEOPLE, DO YOU b) a waste of time? interests?
REMEMBER THEIR: c) difficult to do well? b) almost anyone?
a) name? c) people who are your social
b) face? equals?
c) clothes?

I] You are going to listen to Gillian Baker, Business Relations Manager with an
international training organisation, talking about how companies can build
strong business relationships. What factors do you think she will mention?

D �l)} cous Listen to the i nterview and check the predictions you made i n
Exercise B.

liJ What are the most important relationships for you a) at your place of work/
study, b) outside your place of work/ study? Why?
22
 UNIT 3 H BUILDING RELATIONSHIPS

IJ Complete the table below with these verbs, which are often used with the
Describing word relations.
relations br
e akeff buildup cement cultivate cut off damage develop disrupt
encourage establish foster i mprove jeopardise maintain promote
restore resume sever sour strengthen undermine

Positive meaning Negative meaning

b uild up relation� break off relation�

[I Choose the correct verb in each sentence.

1 Sales staff who are impolite to customers disrupt Idamage the reputation of a
company.
2 We are planning to promote /establish branch offices in Spain next year.
3 By merging with a US company, we greatly strengthened /maintained our sales force.

4 Relations with customers have been fostered Iundermined recently by poor a�er-sales
service.

5 Thanks to a new comm unications system, we are souring /improving relations

with suppliers.
6 A strike at our factory last year resumed Idisrupted production for several weeks.
7 We could not agree on several points, so we broke off/cut off talks regarding a
joint venture.
8 The success of our new product launch was cemented /jeopardised by an
unimaginative advertising campaign.

9 In order to gain market share in China, we are building up Icutting off relationships
with local agents.
10 Business relations between the two countries have been severed /fostered by official
visits and trade delegations.

II Match these sentence halves. Then make five more sentences with the verbs
in Exercises A and B.
1 Widespread rumours of a hostile a) are a credit to its highly effective
takeover bid are certain PR Department.
2 The Accounts Department's very b) have cemented relations between
slow payment of invoices the two companies.

3 The long-term contracts, which will c) its close relations with several
run for the next five years, major foreign investors have been
jeopardised.
4 The excellent relations the company
enjoys with the local com m unity d) is causing stormy relations with
some of the company's suppliers.
5 As a result of the government's
im position of currency controls, e) to strain relations between the
two leading French software
companies.

See the DVD-ROM � liJ Give an example of a company you know which is good at building
for the i-Glossary. V
relationships with its customers. How do they do this?

23
UNIT 3 ... BUILDING RELATIONSHIPS

El �l» co1.16 Alison Ward is Head of Global Corporate Responsibility at Cadbury,

Business the chocolate maker. Listen to the first part of the interview and complete
this information about Cad bury's Cocoa Partnership.
partnerships
Launched
% Cadbury cocoa beans from Ghana
% yield from the land
Average age of farmers
Cadbury partners in Ghana

�l» CD1 . 17 Listen to the second part and complete these extracts with up to
three words in each gap.
1 Well, we're really proud that we've achieved . . . . . . . . . . . . for our Cadbury Dairy Milk
Alison Ward
brand ...
2 So it means that people around the world can now make an . . . . . . . . . . . . and .. .

3 Fairtrade's an interesting marque in that it's not only . . . . . . . . . . . . in consumer markets -

it's very well . . . . . . . . . . . . - but it also has great power back in . . . . . . . . . . . . .

II �l» co1.1s Listen to the final part and answer these questions.
1 What other partnership does Cadbury have?

Watch the 2 What does Alison say about the changes in the supply chain with that partnership?
interview on
the DVD-ROM.
EJ Think of any other partnerships similar to that of Cadbury and the farmers
from Ghana. Tell your colleague about it.

READING
Business El Where can you meet people to build good business relations?
networks in
China ll Read the article on the opposite page quickly and say who these people are.
1 Li l<a-shing 2 Gary Wang 3 Helen Wong 4 Zhou Junjun 5 Andrew Grant

II Read the article again. Which paragraph:

1 begins by talking about the origins of guanxi?
2 gives examples of what can be achieved if you have connections?

3 talks about how guanxi is changing?

4 talks about top connections made at M BA programmes within China?
5 talks about how a business started through connections made at a European
business school?
6 talks about networking through multinational companies?
7 talks about Chinese businesspeople wanting something in return for connections?

8 suggests that making connections might take time and effort?

EJ Answer these questions.

1 What is guanxi?
2 What examples are given of things you can achieve if you have good guanxi?
3 What can Western companies do if they are involved in informal groups?
4 How is guanxi changing?
5 Why does Ogilvy Public Relations Worldwide hold annual parties for previous employees?
24
 UNIT 3 ... BUILDING RELATIONSHI PS

IJ Find words or phrases i n the article which mean the following.

1 using or taking what you need from a supply of something (paragraph 2)
2 when someone always supports someone o r something (paragraph 3)

3 being responsible for what you do and willing to explain it or accept criticism
(paragraph 3)
4 a moral or legal duty to do something (paragraph 3)
5 people you know who can help you, especially because they are i n positions of
power (paragraph 4)
6 talking to other people who do similar work in order to help each other (paragraph 6)

7 determination to keep trying to do something difficult (paragraph 7)

D Discuss these questions.

1 What advice would you give to someone trying to develop business relationships
in China?
2 A foreign company is opening a branch in your country. What factors should it consider?

3 In your experience, are certain nationalities better at building relationships than

others? If so, which ones?

H ow East is meeting West by Frederik Balfour

G11a11.ri. I t ' s the first word any busi­ years. in the process winning valuable Multi national companies, of course,
nessperson learns upon a r r i v i n g in •o licenses and permission to build huge provide rich opportunities for network­
China. Loosely translated. g1w11.ri real-estate developme ms. Playing the i n g . t o o . Ogi l vy P u b l i c Relations
means "connections" and it is the key g11c111.ri game i s still imperative. espe­ so Worldwide holds an annual party for
5 to everything: securing a b u s i ness cially for foreign investors. former employees. many o f whom
license. landing a distribution deal. Many of China's net workers meet now work for the company's clients,
even finding that special colonial villa 45 through an American or European including Lenovo. Johnson & Johnson,
in Shanghai. Fortunes have been made M B A program. Gary Wang attended and solar-panel maker Suntek. McKin-
and lost based on whether the seeker INSEAD, the famous French business 85 sey has plenty of a l u mni who have
10 has good or bad g11r111.ri. school outside Paris. Today, he runs a moved into senior posts at major com­
Now, like so many things in China, YouTubc wannabe called Tudou that panies and start-ups. "Obviously, they
the old notion of g11a11.ri is starting to 50 was built largely on connections made became a valuable network for us,"
make room for the new. Busi nesspeo­ at business school. A fellow student says Andrew Grant, w h o runs the
ple- local and fore i g n - are tapping who worked at O g i l v y & M a t her •x> firm's China practice in Shanghai.
15 into emerging networks that revolve Worldwide helped out with public rela­ If' one thing has remained the same
around shared work e x periences or tions. And another JNSEAD graduate, for fore igners in C h i n a , it i s t h i s :
taking business classes together. Net- 55 Helen Wong, a partner at Granite cracking t h e g11a11xi code still takes
working that once happened in private Global Ventures, helped Wang raise hard work and perseverance. Network-
rooms at smart restaurants now goes $8.5 million after a friend heard h i m 95 ing at an a l u m n i barbecue or wine
20 on in plain view-at wine tastings for speak a t t h e China Europe International tasting goes only so far when trying to
the nouveau riche. say. or at Davos­ Business School (CEIBS) in Shanghai. b u i l d r e l a t i o n s h i p s of any lasting
style get-togethers such as the annual m "Without knowing all these people v a l u e . After the first 30 minutes at
..
China Entrepreneurs Forum held annu­ through INSEAD . says Wang. "Tudou these functions. say people who have
ally at China's Yabuli s k i resort. B y probably never would have happened." llMl attended. foreigners and locals almost
15 tapping into these i n formal groups. Executive M B A programs. all the invariably break off into separate
Western companies can theoretically rage now i n China. have become groups.
improve their understanding of the <>5 G11a11xi Central. Targeted at senior What's more. Chi nese businesspeo­
marketplace. hire the best talent. and executives and high-powered entrepre­ ple arc more experienced and globally
find potential business partners. neurs. the programs arc al!racting 10s savvy than they were just a few years
JO G11a11.ri goes back thousands o f some of China·s most successful busi­ ago. They're looking for business con­
years and is based o n traditional values nesspeople. " I t 's important to have nections who can help them expand
of loyalty. accountability. and obliga­ 10 friends in di fferent industries and meet outside China or get their company
tion-the notion that i f somebody does people from di fferent cities." says listed on a foreign exchange. "People
you a favor, you will be expected to Zhou Junjun, who runs the C h i nese 1 1 0 want something more professional and
35 repay it one day. One of Asia's most operations of a South Korean systems strategic from their relationships,"
successful businessmen, Hong Kong company and did an Executive MBA at says Li Yi fei. Viacom 's chief represen­
b i l l ionaire Li Ka-shing, has used h i s 15 the Cheung Kong Graduate School of tative in China. "They want to know
g11a11xi particularly astutely over t h e Business in Beijing. how good your gua11.ri is back home."

from Business Week

25
UNIT 3 H BUILDING RELATIONSHIPS

Multi-word verbs are particularly common in spoken English. They are made with a verb
Mu lti-word and particles such as at, away, down and off. Four types are:
verbs 1 Without an object
Networking now goes on in plain view.
2 With an object - separable
We'll draw up a new contract. I We'll draw a new contract up.
3 With an object - inseparable
They're looking for business connections.
4 With two particles
I'm really looking forward to meeting you next week.
C) Grammar reference page 147

El �>» co1.19 Two executives are talking about building relationships with clients.
Put the conversation in the correct order. Then listen and check your answers.
0 a) They were both annoyed. My contact thought I had let him down, and his boss
simply decided not to turn up at the meeting. We'd set up a meeting in Brussels
by e-mail, but he called it off at the last minute. I'd already checked in at the hotel.

0 b) Oh, what went wrong?

0 c) Well, I'm going to carry on working until about six. We could meet after that.

0 d) How did you turn it round?

0 e) It's fine now, but at the start of the year, it was disastrous.

[I] f) So, how's the relationship with Toyota going?

0 g) Well, I went over my contact's head and went directly to his boss at Toyota Motors
Europe. I was really trying to clinch a deal.

0 h) Glad it worked out. Anyway, are you free for a drink later?

0 i) Well, I had to build up my relationship with my original contact again. At first, he

kept putting me off. But eventually we met up and I focused on our relationship,
not the next sale. Now we get on really well and sometimes play golf together.

0 j) Was he annoyed?

l!J Underline all the multiword verbs i n the conversation in Exercise A. Then
decide which of them has a similar meaning to each of these verb phrases.
1 have a friendly relationship 6 appear /arrive somewhere
2 registered 7 disappoint
3 make stronger 8 arrange
4 change something into something successful 9 continue
5 postponing/delaying 10 cancelled

II Rephrase these comments using the multiword verbs from Exercise B.

1 We can't hold the meeting tomorrow.
We'l l J-.ave to call off tJ-. e meetin9 tomorrolN.

2 They've postponed the presentation until Thursday.

3 I'm sorry I've disappointed you.
4 She's arranged the conference call for nine o'clock.
5 This is a crucial meeting. Make sure you arrive on time.

6 Everyone continued working as if nothing had happened.

7 You'll need to register at the Hilton around four o'clock.
8 I have a good relationship with my new boss.
26
 UNIT 3 ... BUILDING RELATIONSHIPS

�>)) co1.20 Networking is an essential way of establishing good business

relationships. Listen to the first conversation and say whether these
statements are true or false. Correct the false ones.
1 Howard Clark's company is probably less successful this year than last year.
2 Howard's company does not have time to redesign the website itself.

3 Judy Masters thinks that Howard will have no problems contacting Martin Englemann.

l!I �>l) CD1.21 Listen to the second, telephone conversation, then answer these
questions.
1 Why does the website need redesigning?

2 How does Martin Engelmann react to Howard's offer to redesign the website?

B Now listen to both conversations again and complete these extracts.

�>» CD1.20
1 Hello. Haven't we . . . . . . . . . . . . somewhere before?
2 Maybe I could . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . there. I know someone who's a top-class
web designer [ ... ] I'm sure he'd be interested. Why . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . him?

3 Great. You haven't got his phone number, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? . . . .

4 Yep .. 07825 300646. Can I . . . . . . . . . . . . your name when I call him?

.

5 01<, I'll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . him. Thanks very much . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

�>)) CD1.21
6 I was . . . . . . . . . . . . your name by Judy Masters.

7 I was wondering ... well ... would you be . . . . . . . . . . . . in helping us to redesign it?

8 Can I suggest . . . . . . . . . . . . at our office, say, at the end of the month?

liJ Work i n pairs and role-play these two situations.

1 The US owner of an up-market chain of restaurants phones a Canadian supplier of
shellfish. The supplier was recommended by a friend of the owner.
2 A conference entitled 'Entry strategies for overseas markets' gives participants an
opportunity to do some networking.
Student A: Turn to page 133.
Student B : Turn to page 142.

U S E F U L LANGUAGE

MENTIONING PEOPLE GIVING ADVICE ASKING FOR HELP/CONTACTS ESTABLISHING COMMON

YOU KNOW Why don't you give him a call? Can I mention your name INTERESTS
I was given your name by You could meet our Systems when I call him? We have something in
Judy Masters. Manager. She mentioned that you common. We're both
Anna Kaufmann suggested might be able to help me. interested in ...
I gave you a call. Have you got his phone I see we're in the same line
REFERRING TO PREVIOUS
A colleague/friend/ number, by any chance? of business.
MEETINGS
acquaintance mentioned Do you have his contact We both do similar work. /
Haven't we met somewhere
your name. details? We have similar interests.
before?
Are you in sales or product
We both went to that
development?
presentation.
I think we met some time ago.

27
Al - M u n i r H ote l
a n d S pa G ro u p
An Ara b hotel group wishes to build custo m e r loyalty by gett i n g to
k n ow its visitors better a n d enco u ra g i n g them to return to its hotels

Background
Vanessa Schultz, recently appointed Director of Customer
Relations, has been hired by the Al-Munir Hotel and Spa Group to Results of Customer
improve the group's customer relations. The group has a number Satisfaction Survey
of hotels in Oman and the United Arab Emirates. Vanessa Schultz's
(Average scores for responses from
first task is to focus on building better relationships with the customers completing the questionnaire
guests who use the hotels, especially with those who may become this year)
frequent visitors. The challenges facing the hotel group
are exemplified by the following facts. In the last five years: Key: 5 outstanding, 4
= good, =

3 average, 2 below average,

•
= =

group turnover has fallen by 22% 1 = poor

• the group's room occupancy rate has dropped from 81 %
to 62% Category Score
•
Location 5
customer surveys have indicated increasing dissatisfaction
Rooms 4
with the hotels
Amenities * 3
• the retention rate of guests has fallen from 25% to 8% Service 2
• there seems to be little customer loyalty to the hotel group Staff ** 2
•
Information *** 1
recent reviews have reduced two of the hotels' rating from
Value for money 3
four stars to three.

Vanessa Schultz realises that she and her colleagues must • Amenities include such things as a
restaurant, cafe, spa, gym, business centre,
come up with a plan for building long-term relationships with swimming pool, creche, concierge.
guests. Discuss the possible reasons for the disappointing .. Respondents were asked to grade staff
trends noted above. in terms of their helpfulness, enthusiasm
and knowledge.
Look at the results of a customer satisfaction survey on the right. ... This refers to the information about the
hotel provided in rooms, and about sites
What conclusions should Vanessa Schultz draw from them?
and attractions in the region.
Vanessa Schultz has used the services of Abd Al-Halim Hamdi, a
local consultant specialising in hotel management, to find out why
many guests do not return to stay at the hotels on a regular basis.
Hamdi carried out a survey of guests by telephone and written
questionnaires and is now reporting his findings to Vanessa �>» CD1.22 Listen to the
Schultz. conversation and check if your
reasons are the same as the
What do you think will be the main reasons why guests do not ones that Hamdi gives to
return to the hotel? Vanessa Schultz.
 UNIT 3 H BUILDING RELATIONSHIPS

Vanessa Schultz has How can the Al-Munir Group make guests fee l 'special' and 'highly valued'?
called a meeting which
2 What can the group do to a) reward loyal customers, and b) persuade guests
will be attended by
who have stayed once t:o return?
members of the Guest
Relations and Marketing 3 What can be done to make staff more motivated and customer-orientated in
Departments. This is the their approach to their work?
agenda for the meeting.
4 What questions should the management be asking in order to gather
i n formation for an accurate, up-to-date profile of each guest? For example:
How did the guest find out about the hotel?

5 How can the group maintain its relationship with guests once they have left
its hotels?

6 What other actions can the group take to i mprove customer loyalty, increase
the average scores in the next customer satisfaction survey and get back its
four-star rating?

Watch the Case study A

Work in small groups. You are members of
either the Guest Relations or Marketing
commentary on the DVD-ROM. V
Departments.
Writing
1 Prepare for the meeting by discussing each
item on the agenda. One of you should lead Write a sales letter to Marion Wise, a businesswoman who
the discussion and note down your ideas. has stayed frequently at Al-Munir hotels and is one of the
group's most loyal customers. Describe a special offer which
2 Meet as one group. One person should play

�
you are making to a small group of your priority customers.
the role of Head of Guest Relations. Make the letter as personalised s itossible.
3 Share your ideas on each item of the agenda. I:) w ge 1 26
4 Agree on an action plan which you will
present to the Board of Directors of the ----�
�-----
Al-Munir Group at their next meeting.
 1 Doing business in ternationally
Drew Corporation, based in Dallas, USA, is an international grou p supplying food products
to the retail trade. It is currently holding its annual planning conference in Mauritius. One of
the discussion sessions, entitled 'Succeeding in new markets', is attended by some of the
company's top executives. The leader of the session has asked participants to work in small
groups and either talk about or provide notes on a recent overseas assignment, focusing on
any cultural problems they encountered in their work. In one of the groups, Bob Hewitt talks
about an assignment in China, Christina Novak provides notes about her work experience in
India and Melissa Petrides writes about a business trip to Russia.

0 ,.,» co1.23 You are going to hear Bob Hewitt G How would you prepare for a business trip
talking about a recent new venture i n to a country you had never visited before?
China. Listen a n d answer these questions.
1 Why didn't Bob make more use of David Li's Q ..ll) CDl.24 You are going to hear Christina
business experience? Novak talking about a recent trip to India.
2 What does Bob mean when he says, 'we She had never done business there before.
expected to get a foothold in the market Listen and answer these q uestions.
pretty quickly'?
1 Why did Christina go to India?
3 What conclusion did Bob come to concerning 2 What do you learn about Mumbai Enterprises?
the future of Munchem restaurants in China?
3 What event helped to improve relations

0 ,.,l) co1.23 Listen again and note down the

between Christina and the President of
Mumbai Enterprises? Explain your answer.
m istakes Bob made because of his lack of
knowledge of the Chinese market.
0 ,.,l) co1.24 Listen again and note down the
cultural m istakes that Christina made.
Rank the mistakes you noted
in Exercise B according to how
important you think they were
(1 = the most important) . Check
your answers with the suggested
ranking on page 139.
 WORKING ACROSS CULTURES H DOING BUSIN ESS INTERNATIONALLY

What lessons can be learned about 0 �)» co1.2s Listen to Galina Koznov, an expert
Indian business culture from Christina's on doing business in Russia. Compare her
experience? Check your answers on comments on what Melissa wrote with the
page 139. points you noted in Exercise F.

0 Melissa wrote her i mpressions of a recent Write a response to Melissa's blog,

business trip to Russia in her blog. Read the advising her on the best way to do
blog below, then, in small groups, analyse business in Russia.
and note down the cultural differences
which created misunderstanding between
Melissa and Georgy Volkov.

June 1 Met Georgy Volkov, President of Mika. June 1 5 Very tricky meeting. We needed to take
Asked him for a five-year sales forecast for the legal advice about the joint venture. I suggested
products we're supplying him. 'Can't do that,' he using Goodman and Parker, who have a branch in
said. 'We need to get permissions and certificates Moscow. We've worked with them in many countries
first from Ministry of Trade, tax authorities, local and they're very trustworthy. Georgy wasn't
municipalities, customs, etc. It'll take us a long interested. 'I don't know anyone there, plus they'll
while.' charge us a lot and we'll get nothing from them. Let
June 7 Asked Georgy how it was going with the us use my old schoolfriend Mikhail Popov. He works
permissions and certificates. He didn't seem for a small law firm. They'll give us good advice and
pleased with my question. Wonder if I upset him. they won't charge very much.'
'You must understand, Melissa, it takes a long time June 18 Time for me to fly back to Dallas. G had
to set up a joint venture in Russia.' fixed up an appointment for us to see the Minister
June 8-1 0 Great weekend at Georgy's dacha in the of Trade. Would have meant missing my flight,
countryside. Went fishing, then shared a sauna with so asked our Moscow Branch Manager, Pat
him and his wife and had a wonderful meal (lots of Sanderson, to accompany G to the meeting instead.
caviar). Didn't talk business at all. G not at all pleased, but I wasn't willing to cancel
my flight at such short notice.
June 1 1 Difficult meeting with G and colleagues.
I talked about our fantastic range of organic food June 20 Pat Sanderson called. Meeting not

products. 'We can't sell them over here. No chance successful. He didn't see the Minister of Trade, but
at all. They'll be too expensive, customers won't buy only low-level officials in that department. G very
them,' he said. I was shocked. unhappy. He told Pat, 'I worked hard to set up the
meeting with the Minister. My reputation will suffer
because Melissa couldn't attend the meeting. It'll
take me a long time to get back in favour with the
Minister.'

31
 STARTING U P IJ What makes people successful? Add four more words to the list in the box
on the left. Then choose the five most im portant.
charisma

El
dedication
discipline
Tal k about a person you know who is successful. Why are they successful?
drive
imagination
looks
II What are the best indicators of an individual's level of success?
How im portant are the following in your culture?
luck
money exotic holidays cosmetic surgery chauffeur-driven car(s)
nepotism
designer clothes expensive jewellery mixing with famous people
ruthlessness
pedigree pets luxury home(s) exclusive club membership

trophy partner domestic help having your name in the media

brand EJ Complete these statements with the words from the box on the left.
customer Then discuss with a partner which three statements are the best indicators
headquarters of a successful business.
innovation
A successful business ...
leader
people 1 is always making money and increasing its . . . . . . . . . . . . .
profit 2 is often the market . . . . . . . . . . . . .
shares
subsidiaries 3 is moving forward and interested in . . . . . . . . . . . . .

workforce 4 has a motivated . . . . . . . . . . . . .

5 has a loyal . . . . . . . . . . . . base.
6 has a world-famous . . . . . . . . . . . . and an instantly recognisable logo.
7 issues . . . . . . . . . . . . which are worth millions on the stock market.
8 has its . . . . . . . . . . . . in a prestigious location.
9 has branches and . . . . . . . . . . . . all over the world.
10 treats its employees well and is . . . . . . . . . . . .-orientated.
36
 U N IT 4 H SUCCESS

Read this news report and identi fy nine common prefixes.

EXAMPLE: multinational

Rabbit, t h e successful mobile phone company taking the next logical

company, has renamed itself step ro achieve our aim of becoming
ChirChat Media as part of its effort the leading company in the sector
to establish itself worldwide. worldwide.'
Although some industry He denied reports of problems in
commentators see the name change the recently entered Asian markets,
as risky and an indication of their claiming journa lists had been
overconfidence, the company misi nformed. His ex-business
continues to outperform all its rivals partner Darius Schnell, who left the
in the competitive telecoms market. company less than three months
In a statement, co-founder and CEO ago, was nor available for
Markus Danton said that it was an comment. Many experts feel M r
exciting time for the company and Schnell's contributions r o the
that its achievements had been success of the company have been
underestimated in the past. He went devalued in recent press reports
on ro say, 'We are a n u l tramodern since his hasty exit last N o v ember.

I] Match the prefixes in Exercise A to these meanings.

1 too much 4 extremely 7 with
2 better / more than 5 former 8 too little

3 badly 6 opposite 9 again

D Cross out the word in each group that does not follow the prefix in bold.
1 under perform I rate I charge I j7fflftf
2 co producer I worker I boss I author
3 re launch I engineer / locate I decide

4 over spend I lose I estimate I supply

5 mis manage I judge I look I calculate
6 out win I produce I bid I class
7 ultra efficient / cautious / modern I big
8 ex boss I director I employee I staff

9 de merge I grow I nationalise I regulate

liJ Complete these sentences with words from Exercise C in the correct form.
1 Several sales staff <:' 'l � err e r fr. r� �� last year and didn't meet their targets.
. . . . . . .

2 Smith and Turner were the two . . . . . . . . . . . . of the report.

3 We will . . . . . . . . . . . . our product as soon as we have finished the modifications.

4 Sales were very disappointing. We . . . . . . . . . . . . the n u m ber of people who would buy our
product in Asia.
5 Because the company has been . . . . . . . . . . . . for years, we are close to bankruptcy.
6 It was an expensive acquisition. They had to . . . . . . . . . . . . their rivals to take over the
company.
7 Our . . . . . . . . . . . . factory has state-of-the-art machinery.
8 My . . . . . . . . . . . . was impossible to work with, so I left the company.

9 There is much more competition in . . . . . . . . . . . . financial markets.

37
UNIT 4 H SUCCESS

II Discuss these statements.

1 Outselling your rivals is the best indicator of success.
2 Mismanagement is the biggest cause of business failure.
3 Rebranding is often a pointless exercise.
See the DVD-ROM � 4 Underfunding and overstaffing are the quickest way to failure.
for the i-Glossory. W
5 Undercutting the competition is a dangerous business strategy.

IJ �>» CD1.26 Isis Innovation is a technology development company owned by the

Successful U niversity of Oxford. Listen to Tom Hockaday, its Managing Director, talking
about the essential qualities of a successful business and complete the gaps
businesses
in these two extracts.
I think that the absolute essence of a business, or a . . . . . . 1 business, is one that .. . . . .

manages to . . . 2 and
. . . . . . .3 something, whether that is a . . . . . . • or a
. . . . . . . . . . . . . . .. . . . . 5,
. . . . . . . . . . . .

but manages to . . . . . .
. . . . . . 6 it for more than it 7
. . . . . . . . . . . . to 8
. . . . . . . . . . . . it.

... we are investing in the . . . . . . . . . . . .9 to take it through various stages of development, so

that we can demonstrate it has . . . . . . . . . . . . . . 10,
. . . . . . . . . . so that we might be able to attract
more rounds of . . . . . . . .
. . .. .. ... ...
. . .. 11 investment or finance from other sources.

Tom Hockaday
m �)» CD1.27 Listen to the second part of the interview and summarise in a short
paragraph what Tom says about Natural Motion - the type of company it is,
what it does and the reasons for its success.

Watch the
interview on II �>» co1.2s Listen to the final part of the interview and answer these questions.
the DVD-ROM. 1 Which types of business does Tom expect to succeed in the near future?
2 Which four examples does he give?

Read the article on the opposite page and correct the six mistakes in this
paragraph about Carlos Slim.
Carlos Slim is probably the richest man you have ever heard of. The major influences on
his life were his father, Julian, who was born in Mexico, and Jean Paul Getty. He studied
finance at Harvard University and on graduating set up as a stockbroker. He made a lot
of money in the Mexican recession of 1982, selling his assets in the middle of the crisis.
In 1990, Slim gained control ofTelmex, which owns 90% of Mexican telephone lines
and is the largest part of Slim's empire. Slim is also involved in charity through his
Carso Foundation.

m Match the words on the left with words on the right to form word
partnerships. Then check your answers in the article.
1 business a) spree
2 economic b) acumen

3 annual c) recession
4 retail d) point

5 turning e) sales
6 buying f) outlets

7 global g) crisis

38
 UNIT 4 .. .. SUCCESS

II Complete this text with the word partnerships from Exercise B.

In 2008, influenced by China's success and its appetite for commodities, shipowners went
on a . . . . . . . . . . . .1, and . . . . . . . . . . . .2 of vessels reached an all-time high. The . . . . . . . .3 came the
. . . .

following year with the housing crisis, credit crunch and . . . . . . . . . .

. •
. in the United States,
which led to a . . . . . . .s. Orders for ships dried up, and department stores and . . . . . . . .6
. . . . . . . . .

throughout the world had empty shelves. However, business is recovering and there
has been a transformation of the industry from one that relied almost exclusively on a
shipowner's innate . . . . . . . . . . 7 to today's highly sophisticated finance-based ind ustry.
. .

EJ I f you had Carlos Slim's money, what kind of businesses would you buy?
What kind of lifestyle would you lead?

Profile: Carlos S l i m
by James Quinn

local and foreign investors alike, looking

50
to sell in the midst of one of the coun­
try's worst economic crises.
The period led to the formation of one
of the key pai1s of Slim's empire - Grupo
Carso, which today has annual sales of
55 $8.Sbn a year and owns retail outlets

such as Sanborns and Sears, as well as a

wide range of manufacturing businesses.
Eight years later, in 1 990, came the
second major turning point in S l i m's
60 career when Mexico decided to priva­
tise its national telecoms company.
Slim went head to head with America's
Southwestern Bel I , France Telecom and
as many as 35 other domestic investors,
65 but managed to seize control of Telmex.
Some 90 per cent of the telephone
l i nes in Mexico are today operated by
Telmex . B u t it is the low-cost mobile
phone network America M6vil, which
10 he also controls, which has grown to be

Carlos Slim is either the world's richest 25 and to American oil b i l l ionaire Jean the most substantial part of his empire.
or second-richest man, with a fortune Paul Getty. S l i m learned o f Getty's opening up other parts of Latin America
estimated to be in excess of $67bn. Pos­ business arnmen as a young boy and to mobile telephony. It now operates in
sibly the richest man you ' ve never has gone on to mi rror his a b i l i ty to 1 1 countries, including Brazil, Ecuador
5 heard of, u n t i l recently his i n fl u ence make money. 75 and Guatemala.

had largely been restricted to his native JO Aged 1 1 , he invested in government Many commentators believe that his
Latin America, where his sprawling saving bonds, keeping a detailed ledger recent buying spree is part of' a desire to
family empire controls more than 200 to track all of his purchases. By 1 5 , he replicate what he did in Mexico in the
companies, spanning everything from had bought a very small shareholding in 1 980s on a world stage, taking advan-
10 banking and retail to telecoms, roacl­ Banco Nacional de Mexico - then the 80 tage of the global recession by investing
building and restaurants. B u t given the J5 l a rgest bank in Mexico, and one to in d i stressed assets al knock-down
size o r his fortune, he was unlikely to which he has recently been l i nked with prices while he can.
stay local for long. In recent years, he buying, as the current owner Citigroup I n spite of his obvious wealth, he
has begun to stretch h i s increasingly looks to divest some of its assets. remains frugal in his tastes, and is often
1 5 long tentacles north of the border and While studying civil engineering at 85 seen wearing a plastic-effect wrist­
into the United Stales. and this week �a university in Mexico City, he realised watch which doubles as a calculator.
took the American intelligentsia some­ the way to make money was from H i s clothes tend to be bought from the
what by surprise by revealing plans to investing in companies. and so set up many retailers his empire owns.
inject $250m into the New York Times. on his own as a stockbroker on gradua­ Over the next four years. he has com-
20 S l i m puts h i s success clown to h is tion, working 14-hour clays. 90 mitted to spend $ 1 0bn through h i s

admiration for his father J u l ian - who 45 I t was not until the Mexican reces­ charitable Carso Foundation, whose
emigrated from the Lebanon aged 1 4 sion of 1 982 that S l i m really began to main aim is to fight marginal isation and
and made his fottune investing in prope1ty make some money, taking advantage of poverty by investing in health, educa­
in the 1 9 1 0- 1 7 Mexican revolution - a nationwide ' fire sale' o f assets by tion and employment.

from The Telegraph

39
UNIT 4 H SUCCESS

Complete the rules with the words present simple, present continuous, present perfect,
Present and past perfect or past simple.
past tenses 1 We use the . . . . . . . . . . . . to describe actions and situations which are generally true.
Carlos Slim is worth about $67bn.
2 We use the . . . . . . . . . . . . to describe completed actions or events which took place at a
particular time or over a period of time in the past.
Slim bought Telmex in 1990.
3 We use the . . . . . . . . . . . . to describe current or temporary situations.
Petrol is getting more expensive by the week.
At the moment, Slim is writing a book about his family.
4 We use the . . . . . . . . . . . . to describe life experiences, the present results of past actions
or to announce news.
The company hos done well recently.
In recent years, Slim hos devolved power to his family.
5 We use the . . . . . . . . . . . . to describe an action which is completed before a time in
the past.
The office hod closed by the time we got there.
Cl Grammar reference page 147

Ill Label the tenses in these sentences based on the article on page 39 and say
why those tenses are used.
1 In recent years, Slim has begun to stretch his tentacles north.
2 Aged 1 1 , he invested in government saving bonds.
3 He remains frugal in his tastes.
4 By 1 5 , he had bought a very small shareholding in Banco Nacional de Mexico.

5 Slim is currently looking at investing in distressed assets.

a Write an article about Apple for a busi ness magazine. Use these notes,
putting the verbs in brackets into appropriate tenses.

THE COMPANY RECENT EVENTS

• (reinvent) the personal computer • Recently (rank) first as most
with the Macintosh in 1 980s admired company overall in
• (have) highest brand loyalty of any Fortune survey

computer manufacturer • People in survey by CoolBrands

• (operate) more than 250 retail recently (vote) the iPhone as

stores world's coolest brand

• • September 28, 2009 downloads

(have) informal culture
from App Store (surpass) 2 billion
HISTORY
• (start) in Cupertino, California, WHAT IT IS DOING NOW
• C urren tly (experience) the greatest
April 1 , 1 976
•
expansion in its history
October 23, 2001 : (introduce) the
• Now (focus) on its software more
iPod digital music player
than ever
• Since it was formed 1 976, (employ)
• At time of writing (offer) students a
over 75,000 people worldwide ,

free iPod Touch with the purchase

of a MacBook

D Research Carlos Slim on the Internet and write a final paragraph for the
article on page 39 saying what he is doing now.
40
 UNIT 4 H SUCCESS

Three key skills in negotiating are:

1 bargaining
2 checking understanding

3 signalling (drawing attention to what you're about to say).

Study the examples of each in the Useful language box below.

[I �>» CDl.29 Listen to a negotiation between an exporter of Turkish rugs and

the Head Buyer of a chain of department stores. Answer these questions.
1 What agreement do the exporter and buyer reach concerning a) quantity, and
b) discount?
2 What delivery date does the buyer want? Is she sure to get what she wants?

II �>l) co1.29 Listen again and complete these sentences.

1 If you place an order for only 50 rugs, we can offer you a . . . . . . . . . . . . of 5% .. .

2 'Supposing we increased our order for your . . . . . . . . . . . . rugs, what discount would
you give us?'
'Well, what sort of quantity do you have . . . . . . . . . . . . . . . . . . . . . . . . ?'
3 'OK, if we ordered 100 rugs, made in Esme, would you . . . . . . . . . . . . the discount?'
'No, not double it, but we'd be . . . . . . . . . . . . to increase it to 7%. That's pretty generous
I'd say.'
'That sounds fairly . . . . . . . . . . . . .'

4 'Could you get the rugs to us by the end of this month?'

'Mmm, that's . . . . . . . . .. . .I honestly don't know.'
. . . . . . . . . . . . . . . . . . . . . . . . -

5 I'd like to make a . . . . . . . . . . . . . I'd be . . . . . . . . . . . . to place an order for 1 50 standard rugs

if you could give us a discount of 10% .. .
6 OK, if I'm certain we can supply you that quantity by the end of the month, you've got
. . . . . . . . . . . . . . . . . . . . . . . . . We'll give you 10% off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . for
that amount.

liJ Look at the audio script on page 1 5 7 and find an example each of checking
understanding and signalling language.

D Role-play this situation.

A Spanish man ufacturer has produced a new range of expensive leather briefcases.
A Swiss retailer is considering placing an order for 300 of each design. The Sales Manager
and Chief Buyer negotiate the contract.
Student A: Turn to page 133.
Student B: Turn to page 142.

U S E F U L LANGUAGE

BARGAINING CHECKING UNDERSTANDING SIGNALLING

If you increase your order, we'll Sorry, could you repeat that? I'd like to make a suggestion. I think
give you a bigger discount. Are you saying you don't have that we should leave this point and come
We can deliver by that date, quantity in stock? back to it later.
providing we have the goods in stock. So what you're saying is you'll ... I want to ask a question. How are
lfwe lowered the price, would you we going to pay for this?
be prepared to increase your order?

41
 Current
Kensington U n ited is one of the great success situation
stories in English football. Today, it is in second Kensington's
place in the Premier Division and has reached the current
third round of the European Champions League four-year
competition. The club regularly attracts over sponsorship
40,000 spectators at its home matches, and its deal with an insurance company is about to finish.
Italian manager, Marco Conti, is adored by fans. Ingrid Tauber, the club's Commercial Director, is
Kensington U nited is also a commercial success -.. considering a new and better deal with Universal
and is very profitable. Communications pie, the powerful media group. It
is not only the increased money from sponsorship
What has brought about its success? Firstly,
Marco Conti had a clear strategy for the team from which appeals to Kensington United, however.
the start. He developed young players who had U niversal Communications' broad range of business
�
activities would offer many other opportunities to
come through the club's youth training scheme.
increase revenue.
The team was also strengthened by one or two
carefully chosen foreign players. Universal Communications is interested in
Kensington because the club's success has brought
it over four million fans in the UK and 40 million i n
�>» CDl.30 Listen to an interview on Asia. Kensington played a friendly match recently
Sportsline, a weekly TV programme focusing in India, which was shown on television. Another
on football. The presenter talks to a football ' friendly match in China attracted a TV audience of
manager about Kensington United. Take over 250 million. The team's popularity in those
notes of the key points. countries would help Un iversal Communications to
boost sales of its mobile phones in Asia.

Representatives of Kensington United and U niversal

Communications are meeting shortly to discuss a
possible sponsorship deal.
 • • ,. . . . .
•
You are members of the
negotiating team of either AGENDA
Kensington United (turn to Tim e: 1 0 a.m .
Date: 1 0 May
Ke nsington Football Ground
page 133) or Universal
Communications Venue: Conference roo m,
(turn to page 141). 1 Total val ue of the contract
Read your role card and 2 Tim ing of payments
prepare for the negotiation. 3 Ad ver tisi ng
b act ivit ies
Work out your objectives, 4 Control of players and clu
priorities, strategy and tactics. 5 Control of spectators
gton football boots
Think carefully about what
6 Off icia l sup plie r of Ke nsin
concessions you are willing uni ties
7 Other com me rcia l opp ort
to make. A n agenda has been s
8 Fri nge ben efit s for player
prepared (see right).
9 Other points
Do the negotiation.

�>» CDl.31 Listen to the excerpt from the radio

programme Sporting World. How does it affect the
result of your negotiation?

If the negotiation was successful, write a press release from the point of view of
either Kensington United or Universal Communications outlining the main points
of the agreement and the benefits to the organisation you represent. The tone and
style of the message should express pleasure and optimism.

If the negotiation was unsuccessful, write a letter to your opposite number in the
negotiation expressing your regret that you were unable to make a deal. However,
you should indicate that you might be willing to reopen negotiations in the future,
' as clearly there could be areas of mutual benefit.

Writing file pages 126 and 128

 STARTING UP m Which of these factors would motivate you to work harder? Choose your top
five and rank them in order of priority. Explain your priorities.
bonus more responsibility working for a successful company

bigger salary threat of redundancy better working environment

commission hard-working boss promotion opportunities

praise supportive colleagues more time off

important job title perks more flexible working hours

a �>» CD2.1, 2.2, 2.3 Listen to three people talking about their motivation at work.
Which of the factors in Exercise A do they mention? Who do/would
you agree with?

II Discuss these questions.

1 For what reasons might you change jobs? How often do you expect to do so in your
lifetime? Is changing jobs often a sign of success in your culture?
2 A recent US survey showed children preferred parents to go out and earn money rather
than spend more time with them. What does this show, in your opinion?

3 Would you prefer a male or female boss? Why?

llJ Turn to page 134 and do the q u iz 'Are you i n danger of burning out?'.

44
 U N IT 5 .... JOB SATISFACTION

fl Look at the sentences below. Underline the words or phrases which can
Synonyms and be replaced with an item from the box without a change in meaning.
word-building assessment breakdown empowerment fringe benefits red tape remuneration
severance payment takeiRcJustrialaetieR

1 If employees become too discontent, they may go on strike. take i"dv�trial actio"

2 Most people like to have control over their work and therefore put autonomy near
the top of their list of motivating factors.
3 Dealing with bureaucracy is a very time-consuming, demotivating problem which
affects large businesses and organisations.

4 Overwork can lead to burnout if not spotted early.

5 Many job satisfaction studies, perhaps surprisingly, have found that often a
compensation package is not the most motivating factor for many employees.
6 Offering perks rather than a salary increase can be a way of retaining employees in
traditionally high staff turnover industries.

7 He received a very generous golden handshake when he left the company.

8 One way for managers to monitor and develop staff is by using appraisal interviews.

l!J Complete each of these sentences with a word formed from the verb on the
left. Sometimes you will need to use a negative form.
s A T 1 s F v 1 a) The survey showed that staff working flexible hours were more �<? t! � fi � � with . . . . .

their jobs than those working fixed hours.

b) Low pay and poor working conditions create . . . . . . . . . . . . workers.
c) Small European companies are top of job . . . . . . . . . . . . league tables.

M O T I V A T E 2 a) What are the strongest . . . . . . . . . . . . factors in people's lives?

b) Workers become . . . . . . . . . . . . if they work long hours for low pay.

c) What was your . . . . . . . . . . . . for becoming a salesperson?

I R
F u s T R A T EI 3 a) You could see the . . . . . . . . . . . . building up in the workforce.
b) I find talking to him . . . . . . . . . . . . because he never listens.
c) I felt so . . . . . . . . . . . . with their attitude that I decided to resign.

IR E c 0 G N I s E l 4 a) Employees are more likely to change jobs if they feel their work is . . . . . . . . . . . . or
that others take credit for it.
b) Because of her people skills, she was able to achieve . . . . . . . . . . . . and respect at the
company.
c) The company . . . . . . . . . . . . his lifelong service on retirement with a formal dinner and
a substantial golden handshake.

D Discuss these questions.

1 What do you find satisfying and frustrating about your work or studies?
2 How true do you think these statements are?
a) There is no such thing as company loyalty these days.
b) Only successful people can have a good work-life balance.
c) Job satisfaction is about personality, not external factors.
d) Job satisfaction increases with age.
e) Improvements in technology lead to greater job satisfaction.
See the DVD-ROM � f) Job sharing and job rotation are not good for motivation.
for the i-Glossary. W
g) People who work from home tend to work harder than people who don't.
45
UNIT 5 .... JOB SATISFACTION

IJ -4)» CD2.4 Listen to Madalyn Brooks, Director of H uman Resources at Procter &
Staff Gamble (U K), and answer these questions.
motivation 1 What is the key to a successful business?

2 What are the two main ways in which Procter & Gamble drives job satisfaction?

El '4)» co2.s Madalyn says that job priorities have changed in three areas over
the last 10 years. Listen to the second part of the interview and take notes
on what she says under these headings.
1 flexibility

2 the d rive for personal learning and growth

3 working for socially responsible organisations

Madalyn Brooks

Watch the D '4>)) CD2.6 Listen to Madalyn talking about what people want. Do not take notes
interview on while listening. Afterwards, write down in one minute as many things as you
the DVD-ROM. can remember that people want. Compare your answers with a partner.
Who remembered the most things?

IJ You are going to read an article from The Sunday Times survey The 100 Best
Working for the Companies To Work For. What would you look for i n your ideal company?
best companies
El Work in pairs.
Student A: Read Article A on the opposite page.
Student B: Turn to page 135 and read Article B.

Choose five points that you think make the company in your article a good
one to work for. Take notes on those points and then tell your partner,
without looking back at the article.

D Ask your partner q uestions about their company, so that you can work out
together whether these statements are true or false (M = Marriott Hotels
International, K = KPMG).
1 Over 70% of staff at K and M think that their training is of great benefit.
2 M scores lower on opportunities for personal growth than K.
3 Less than half the staff in M and K earn more than £35,000.
4 M and K both offer childcare vouchers and contributory pensions.
5 K has more than double the annual sales of M.
6 K employs a higher percentage of women than M.
7 M and K have a fairly similar-size workforce.
8 More than half the staff in M and K earn fl 5,000 or more.

liJ I n pairs, look at Article A to find word partnerships with basic, role,
performance and paternity. Then look at Article B to find word partnerships
with career, childcare, medical and pension.

46
 UNIT 5 .... JOB SATISFACTION

Article A

M a rri ott
H otels
I nternati o n a l
the values of the organisation ( 7 1 %), help them fulfil their
Hospitality and Lodging potential and motivate them to give their best every day (71 %
A n n u a l sales £550111 and 70%, both top scores). They say the managers are excel­

S taff numbers 1 1 , 1 57 lent role models and regularly show appreciation, winning
25 positive scores of 69% and 75% respectively, results bettered
Male/female ratio 48:52
in both cases by only one other firm.
Average age 31
The company, where the average length of service for gen­
Staff turnover 36% eral managers is 1 7 years, likes to promote from within. Its
Earning £35,000+ 4% performance review process creates a development plan for
Typical job Food and beverage associate 30 every member of staff and identifies their training needs. On­
the-job training is a key feature of development, and there are
NVQ programmes for accredited q u a l i fications, with staff
Marriott checks i n ten places higher u p our l i s t this year saying this training is of great benefit lo them (72%).
thanks to its five-star treatment of staff. Employees award the Rewards for outstanding contribution and long service,
fam ily-run hospitality business the highest positive score in 35 plus an annual staff appreciation week and quarterly social
our survey - 76% - for loving their work here. activities, rein force the value Marriott places on its people.
It may not be the biggest payer (three-quarters of workers In the year to August 2008, the firm spent £355,000 on fun
get a basic salary of£ 1 5,000 or less), but staff have fun (83%). events for employees, who go out of their way 10 help each
think the job is good for their personal growth (77%) and are other (76%).
happy with the balance between work and home life (66%). 40 Staff have free use of the hotel leisure clubs and access to
Employees also feel they can make a d i fference in the organi- a confidential helpline if they have any personal worries. A l l
10 sation (73% ), make a valuable contribution to its success (76%) t h i s helps promote a strong sense o f wellbeing. Stress i s n ' t a
and are excited about where the company is going (69%). problem (76%), workers say they are not under so much pres­
The worldwide group, which employs more than 1 1 ,000 sure they can't concentrate (72%) or that they can't perform
staff, ranks second out of a l l 20 organ isations on questions 45 well (70%. the second-highest score).
about what staff think of the company and their colleagues Benefits include between 20 and 25 days· basic holiday,
15 and third for their positive views of managers. two weeks' paternity leave on 90% of pay, chi ldcare vouch­
There is a cul ture of respect and recognition, and there is ers, dental insurance, critical i l lness cover, l ife assurance and
training speci fically on teamwork, a quality prized by the a contributory pension. Employees say Marriott is run on
company. Marriott even uses psychosometric testing to so strong principles (75%) by an inspirational boss ( 7 1 % ) , and
assess how well managers align t o its n i n e core organisa- that they are proud to work for it (79%).
20 tional competencies. Staff say that senior managers truly l i ve

from The Sunday Times, copyright © The Times, 2009, www.nisyndication.com

II I n pairs, complete these sentences with some of the word partnerships

from Exercise D.
1 You need to compare various . . . . . . . . . . . . . . . . . . . . . . . . policies online.
2 The government's new . . . . . . . . . . . . . . . . . . . . . . . . is designed to prevent widespread
old-age poverty.
3 Ask Human Resources for the proper forms a month before your . . . . . . . . . . . . .............

4 Many fathers do not take up their . . . . . . . . . . . . . . . . . . . . . . . . entitlement.

5 . . . . . . . does not include overtime, bonuses, commission or travel
allowance.

II I n groups, d iscuss which company you would p refer to work for and why.

47
UNIT 5 �� JOB SATISFACTION

•tma•Mdlih'UW,Passives
• We use the passive when we are not interested i n who performs a n action or it is not
necessary to know.
Information about the takeover had been leaked to the press.
• We often use it to describe processes and procedures because we are more
interested in the process itself than who carries it out.
The bottles are filled before the labels are put on.
• We use the passive to write in a more formal style because it is less personal than
the active. It is often used in reports, minutes and business correspondence.
Your application has been forwarded to the Human Resources Department.
CJ Grammar reference page 148

IJ Match each tense or verb form (1--8) to the appropriate extract (a-h).

1 present simple a) The report stated that more employees should be

encouraged to provide feedback on management.
2 past simple
b) Employees felt their jobs had been made more
3 present perfect
interesting through training.
4 past perfect c) The minutes are always taken by a member of H R.
5 present conHnuous d) The survey stated that employees become unhappy
when they feel that their concerns are being ignored
6 future simple
by management.
7 modal verbs with
e) The performance reviews were carried out over the
passives
summer.
8 passive infinitives f) They were happy to be accepted on the fast-track
programme.
g) Employees will now be expected to act on the
reviewers' suggestions as soon as possible.
h) Bonuses and other incentive programmes have been
cut since the recession .

IJ Complete this extract with passive forms of the verbs in brackets.

Over time, job satisfaction 1 (define) in a number of ways.
. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .

Edwin Locke said that job satisfaction 2 (determine) by the difference

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

between what one wants in a job and what one has in a job. Herzberg states that
satisfaction and dissatisfaction . . . . . . . . . . . . . . . . . . . . . . . .3 (drive) by d ifferent things - motivation
and 'hygiene' factors (such as pay), respectively. Motivation . . . .. . . .. .. 4 . . . . . . . . . . . . . . . . . . . . . . . . .

(can /see) as an inner force that drives people to perform. One of the most famous ways
of measuring job satisfaction is the Minnesota Job Satisfaction Questionnaire, which
. . . . • . . . . . . . 5 (create) in 1963. Some researchers say that people who . . . . . . . . . . . .
. . • . . • . •• • . •

. . . . . • • . 6
. . • . (satisfy) with life tend to . . . . 7 (satisfy) with their job.
. . . . . . . . . . . . . . . . . . . .

II Read these notes for four sections of a report on em ployee satisfaction.

Then write sentences, using the passive, to include in the report.
EXAMPLE: Ove s-tio""a i re> Were dis-tri b vted to a l l d epartm eflt>.

PROCEDURE PRESENT PROBLEMS MEASURES TO IMPROVE RECOMMENDATIONS

Distribute anonymous Management ignore JOB SATISFACTION SINCE Introduce new
employee satisfaction suggestions/complaints APRIL performance reviews
questionnaires: all Not encourage staff to Encourage staff to do for managers from
departments take on new tasks various tasks 1 December
Interview union Adopt open-door policy Carry out research
representatives into new employee
Hold meeting with all incentive programme
Heads of Department

48
 UNIT 5 H JOB SATISFACTION

A headhunter is a person who finds people with the right skills and
experience to do a job, then tries to persuade them to leave their present
job. Headhunting often i nvolves cold-calling. When you cold-call, you
telephone or visit someone you have never met before and try to sell them
something or persuade them to do something. Discuss these questions.
1 What qualities and skills do you think a headhunter needs to be successful in their job?

2 Do you think that headhunting is an ethical occupation?

I] �))) co2.1 Patricia Evans, a headhunter, calls Enid Wong concerning a job
opportunity. Listen to the conversation and answer these questions.
1 What is the purpose of Patricia Evans's call?

2 Was the call successful? Why? I Why not?

D �)» CD2.7 Listen to the conversation again and complete these sentences.
1 I was given . . . . . . . . . . . . . . . . . . . . . . . . by Edward Zhang, I believe you know him quite well.
2 He suggested . . . . . . . . . . . . . . . . . . . . . . . . you. He thought you might be interested in a
. . . . . . . . . . . . that's become . . . . . . . . . . . . at KB Financial Services.
3 Would you like to meet to find out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . about
the job?

4 I don't think there's . . . . . . . . . . . . . . . . . . . . . . . . in us meeting, I'm very happy in this job .. .

5 OK, I quite understand. Can you recommend anyone I could contact and . . . . . . . . . . . .
them . . . . . . . . . . . . about the job?

6 Great, . . . . . . . . . . . . . . . . . . . . . . . . that. My number's 020 7644 8981.

llJ �))) CD2.8 Listen to another conversation i n which Patricia Evans calls Federico
Gonzalez. What does Patricia say about the position and the company to
interest Federico? What do they decide to do next?

D Look at the audio script of the second conversation on page 158. U nderline
the expressions that Patricia uses to a) persuade Federico to consider the
offer, and b) deal with Federico's objections.

II Role-play this situation.

Barnard Media is looking for a television producer to be in charge of its business
programmes. It has hired a headhunter to find a suitable candidate for the job.
Student A: Turn to page 1 4 1 .
Student B : Turn to page 143.

U S E F U L LANGUAGE

COLD-CALLING PERSUADING CANDI DATES DEALING WITH OBJECTIONS SHOWING INTEREST

Hello, Mr/Mrs/Ms X. My TO CONSIDER THE OFFER People often say that to me, Perhaps we could discuss
name's ... KB is offering a top salary but ... this face to face?
I work for Y. I was given your and great benefits. There's another thing you Can you give me some more
name by ... It's well over six figures. should bear in mind. details?
It's a very attractive part of You can look a t this in I'd like some time to think
SOUNDING PEOPLE OUT the package. another way. about this.
Z suggested I call you. He/ They give staff a substantial I take your point, but ...
She thought you might be bonus - well above the
interested in ... industry average.
I was wondering if you'd be Why don't we get together?
interested in ... If you're still interested ...
Would you like some
information about ... ?
49
 wt goad
iencl, ?
A softw are comp any with a 'long hours' cultu
re need s to e n s u re
that staff re lati o n s h i ps d o n 't dam age beha
vi o u r at work

Background
Patrick �
cGuire , CEO of San Diego-based Techno 21, is facing a proble
m caused by the highly
compe t1t1ve nature of the IT industry. Recently, employees
have been workin g much longer hours
than previously and often over weeke nds. As a result, a
numbe r of staff have develo ped
�ersonal relati�nships with each other. Patrick has begun to think that the company mayclose,
need to
introdu ce a policy to give these employees guideli nes concer
ning their behavi our at work.
�
Tec n�21 is � young compan y with a very relaxed atmosp here,
and staff are encouraged to
socialis e during their free time.

Discuss the advantages and disadvantages of working in this

kind of environ ment.

Relat ionsh ips at work: three cases

Patrick McGuire's assistant has prepared notes on three cases
in which personal relationships
have affected staff perform ance and morale. Read about the cases
in preparation for a meetin g
on managi ng relationships at work.

1 Promotion application of 2 The sales conference 3 T h e loving couple

Judith Fisher

Peter Walters, the Chief Financial At the company's international sales About a year ago, two colleagues,
Officer, had a close relationship with conference, Brad Johnson, a sales Lisa Davis and Steffan Olsen,
one of his staff, Judith Fisher, but manager, met Erica Stewart for became romantically involved.
they broke up. A few months later, the first time. He attended all the They kept their relationship secret
Walters had to choose someone to discussion groups she was in and - or so they thought. However,
be promoted to be his deputy. Judith always sat at her table at lunch. the other members of their team
Fisher was one of three candidates. He texted her repeatedly, inviting suspected something was going on.
She didn't get the job. She claims her to have a drink or dinner with The team noticed that, at meetings,
now that it was because she'd had him. He was clearly very impressed Lisa and Steffan always supported
a personal relationship with Walters with her. each other's opinions. Also, they
which had gone sour. According would give each other loving looks
When they both got back to Head or be more tactile than was normal
to her, this was Walters's way of
Office, Brad Johnson asked for Erica among employees. Their behaviour
taking revenge. Patrick McGuire and
Veronica Simpson (HR Director) took to be transferred to his sales team. upset the rest of the team.
Erica went to see Veronica Simpson A representative of the group talked
no action. Judith is now threatening
to take legal action against the in order to reject Johnson's request. to the team leader and asked her to
However, Veronica strongly advised do something about it.
company.
Erica not to turn down the transfer,
saying: 'Brad thinks you have the
personal qualities to be a brilliant
salesperson. He needs bright young
people to strengthen his team and
he thinks you're the right person to
join his team.' Erica is confused and
cannot decide what to do .

..>» CD2.9 Patrick McGuire has come up with a proposal

which he wants to discuss with Veronica Simpson.
Listen and take notes.
 UNIT 5 • JOB SATISFACTION

To: J I::=:
HR Staff
From: ) I ============================================================�
Kate Mann
Subject: [Tuesday's
� ======== ====================================================�
HR meeting

Did we make the right decision concerning Peter Walters and Judith Fisher?
What further action, if any, should we take?
2 Did Veronica give Erica Stewart good advice? What should Erica do now?
3 How should the team leader deal with the issue of Lisa and Steffan?
She has asked for guidance from H R .
4 Which of Patrick's four options is best for the company?
5 How can we avoid someone gaining an unfair advantage by having a close
relationship with a colleague or boss? What action can we take if this happens?

You are members ofTechno21's HR Department.

1 I n small groups, discuss the questions in the e-mail and note down what
action to take in each case.

2 Meet as one group. Try to agree on what decisions to take concerning the
questions. One of you should take the role of Veronica and chair the meeting.

0
Watch the Case
study commentary
on the DVD-ROM.
 STARTING UP B Are you a risk-taker? What risks have you taken?

l!J Which item i n each of the categories below carries the most and the least
risk? Explain why.
Travel Lifestyle Money Shopping
car drinking alcohol property on line
plane poor diet stocks and shares mail order
train smoking savings account private sales

ship jogging cash auction

B What sort of risks do businesses face (for example: financial risks,

environmental risks)? Can you give some examples?

B The verbs in the box are used when talking about risk. Check their meani ngs
Descri bing risk and put them under the appropriate heading i n the table below.

anticipate calculate eliminate encounter estimate evaluate ffiee foresee

gauge identify measure minimise prioritise reduce spread weigh u p

predict meet assess manage

face

52
 UNIT 6 .... RISK

I] Match these sentence halves from newspaper extracts.

1 During the credit crunch, many a) the risks involved when sending staff to work
businesses ... in dangerous locations.
2 We can reduce risk ... b) in order to advise insurance companies.

3 Trying to minimise risk ... c) involved in setting up a new business.

4 It is impossible to ... d) eliminate all risk when entering a new market.

5 It is difficult to foresee the risks ... e) faced the risk of running out of money.
6 Actuaries calculate risk ... f) by spreading our lending across more markets.
7 It is important to consider ... g) is an important part of business strategy.

B These adjectives can be used with the word rislc. Complete them with the
missing vowels.
1 sl_ght 6 mm -d 11 s _ g n _ f c - -nt
2 g r__t 7 h _g_ 12 mm n nt

3 m n sc 8 r-m t 13 s -b s t-n t
4 c -n s-d - r- b l 9 s - r --- s 14 t-r r-b l

5 p _ t - n t -- I 10 n _ g l _ g _ b l _ 15 t r m nd s

EJ Of the adjectives in Exercise C, which describe:

1 a high level of risk? a low level?
2 a possible future risk? a risk in the very near future?

II I n pairs, talk about the types and levels of risks facing some of the
following.
See the DVD-ROM � 1 your company /institution 3 your city/town/country
for the i-Glossary. V
2 a major company/industry in your country 4 a foreign country

IJ •0 co2.10 Listen to Steve Fowler, Managing Director of the Institute of Risk

Managing risks Management, and give one example of internal risk and one example of
external risk.

l!I �l» co2.10 Listen again and complete the chart.

information technology
fires
"'-
\ ___;·; ·······
supply chain
. . . . . . . . . . . .] \_
'-- �
(
Steve Fowler typhoons

changing social and

non-availability of
political pressures
reasonably priced credit

/
changing customer
demand
53
UNIT 6 H RISK

II �i» co2.11 Listen to the second part of the interview. What are the five key
steps to risk management?

llJ �>l) co2.12 Listen to the final part. Which three examples does Steve give of
organisations or industries that failed to manage risk? What does he say
about each example?
Watch the
interview on
the DVD-ROM. II Look at the audio scripts on pages 1 58-159. Underline the key words and
phrases that Steve uses to structure his answers. Compare your answers with
a partner.

Insuring rJ Answer these questions.

trade risks 1 What things do you and your family insure against?
2 What sort of things do big international companies need to insure against?

I] Read the article on the opposite page q uickly and, i n as few words as
possible, say what the main point of the article is.

II Read the article again and answer these questions.

1 How did the insurance industry start?
2 What do reinsurers do?

3 How do the two examples of major losses in paragraphs 7 and 8 illustrate this quote?
'Countries with an underdeveloped system of insurance suffer immeasurably more
from major catastrophes than those where a good part of the material losses can be
covered by professional risk carriers.'

llJ I n your own words, summarise the key points in the numbered examples
(1-3) in the article.

II Find words i n the article which mean the following.

1 when the maker of a product is responsible for any injury that the product causes
(paragraph 4)
2 money that a court orders someone to pay to someone else (paragraph 5)
3 the collection of all policies held by an insurer (paragraph 6)
4 the total combined risks that could be involved in a single loss event (paragraph 7)
5 a terrible event that causes a lot of destruction and suffering (paragraph 9)

D Com plete these sentences with words from Exercise E.

1 They are being sued for . . . . . . . . . . . . by clients who they advised to invest in an insurance
company that went bankrupt.
2 The defect in her car caused the accident, and she is suing the company for product

3 The region was devastated by a natural . . . . . . . . . . . . .

4 It's safer to spread your liability by holding a . . . . . . . . . . . . of risks.

5 An . . . . . . . . . . . . of risk happens when there is a concentration of risks that might give rise
to very large losses from a single event.

54
 UNIT 6 H RISK

AGENCY
m Without looking back at the article, match the words on the left to the

I�\.� lEAlA1t1J I
phrases on the right to make expressions.

�-
1 bear a) the way

I
2 spring b) the brunt
;,� ,q"'
�.,..;-,-�
�
11..�Y
-�
� .u �. � /� "le
�
�trfi,
·
3 meet c) to mind

�Y ·!IV� .,�r 4 pave d) the risks

' fHSURANCECOMPAHY 5 spread e) a need

LI M ITED
Qpltal
CJ Match the expressions in Exercise G to their meanings.
· £ 1.soo.0 00 . ··- ·--·-·· 1 immediately think of something
2 make it possible for something to happen in the future
3 suffer the worst part of something unpleasant
4 reduce the chance of a large loss by sharing risks

5 be good enough to do what someone needs, wants or expects

D I n the next 30 years, which types of risk do you think will become
a) more significant, and b) less significant?

Internationalisation - risk or opportunity ?

by Torsten Jeworrek
The internationalisation of the econ­ 35 to mind include toys coated with lead classes such as fire, business intcrrup-
omy is not as recent as the buzzword paint and toothpaste contaminated 10 t i o n , l i a b i l ity. l i fe and health. and
globalisario11 would have us believe. with the anti freeze diethylene glycol. compounded by s i g n i ficant capital
I n fact . i t was internationalisation that 3 Liability losses can reach extreme market losses.
5 paved the way for the beginnings of proport ions when pharmaceut ical The insurance of large and accumu­
the insurance industry back in the 40 products cause dangerous side effects lation risks is a definite advantage for
fourteenth century, as s h i powners in patients. National law in the country 1s the sustainable development of econ­
sought to protect the increasing value where the products are sold plays a omies. l n countries where insurance
of their ships and cargoes. key role in this connect ion. The US. i s not very far advanced, it i s the
10 Even today, the complex nature of in particular, has seen some extremely vulnerable economics and above all
risks emanating from international 45 high awards for damages. the inhabitants that have to bear the
trade is one of the insurance industry's I n s urance companies that cover so brunt of these losses. The tsunami of

most difficult challenges and one that such large risks need a secondary 2004 not o n l y brought immense
affects all classes of business. as the market where they can place them. h u m a n s u ffering but also caused
15 following examples show: R c i n s urcrs assume t h i s fu n c t i o n . losses of over US$ I Obn. As the insur­
l More than 90 per cent of a l l world 50 S h a r i n g the l o a d a m o n g several ance density i n the regions affected is
trade is transported by sea or other carriers helps to spread the risks. 85 s t i l l very low. the insurance industry

waterways. The l a rge t container The diversification effects achieved only covered a small percentage of
ships today, w i t h cargoes of u p to by spread i n g risks across d ifferent these losses. less than USS I bn.
20 1 3 .000 containers. may be worth far regions and classes of business allows Countries with an underdeveloped
in excess of $ 1 b n . However, even 55 reinsurcrs to balance their portfo l ios system of insurance suffer immeasur-
this concentration o f value i s small and realise a level of capital efficiency 90 ably more from major catastrophes
compared with that fo u n d at the that enables them to cover t h e i r than those where a good part of the
world's great container ports, such as clients' risks- and ultimately those o f material losses can be covered by
25 S i ngapore or Hamburg, which act as the insured - a t a reasonable price. professional risk carriers.
depots to goods worth tens of billions 60 Extreme losses in the past show just The global economy is increasingly
of doll ars every clay. how important the reinsurer's role is. 95 networked and i nterconnected. Risks

2 The outsourcing of production One of the biggest loss events in the arc becoming ever more complex .
sites to low-wage countries does not h i story of insurance was on September and the i n s u rance i n d ustry has to
30 just reduce costs. It can also reduce 1 1 . 200 I . The attack on the World develop new concepts for its clients i n
the quality of the goods produced. 65 Tracie Center in New York was a order t o meet their need for risk cover
Defective products can result i n recall prime example of the complexity o f 100 in this changed environment.

costs or even product liability costs. today's risks. w i t h an accumulation of

Recent examples of recal l s that spring losses across a range of insurance
UNIT 6 �� RISK

• We can use adverbs to strengthen the meaning of adjectives.

Adverbs of The US has seen some extremely high awards for damages.
•
degree We can also use them to soften the meaning.
The report was slightly critical.
C) Grammar reference page 148

IJ Which of these adverbs strengthen the adjective which follow and which
soften it?

a bit entirely exceptionally extremely fairly fully highly increasingly

moderately quite rather reasonably slightly somewhat totally very

ll Complete these dialogues with a suitable adverb.

1 'What were your sales results like last year?'
'. . . . . . . . . . . . good. I made my targets with two months to spare.'
2 'What's your new CEO like?

'Extremely talented and . . . . . . . . . . . . intelligent. She brings out the best in people.'
3 'Do you really think we should invest in an . . . . . . . . . . . . volatile market?'
'Well, first of all we should stay calm and review what we already own.'

4 'What did you think of the H R Director's presentation?'

'To
be honest, I don't think she was . . . . . . . . . . . . prepared. She seemed to be reading it
most of the time.'
5 'Are you confident that the merger will go ahead?'
'. . . . . . . . . . . . confident, although we still need a few more meetings to sort out one or two
problems.'

B I n pairs, create short dialogues using some of the phrases below.

EXAMPLE: A: LQS't mo ritl-/5 5a le5 fi9ure5 5eem Wro09 .
B: I tl-iirik tl-iey're fa irly accurate, but I'll cl-ieck if you like.

fairly accurate deeply disappointed

incredibly well-prepared slightly damaged
absolutely awful totally u n realistic
severely criticised superbly presented
badly misjudged thoroughly enjoyed

IJ �>l) CD2.13 Following the brainstorming meeting i n U nit 2 (page 19), the
Reaching team meets again to finalise plans for the sales conference. Listen to the
authentic meeting and note down what they agreed about these items.
agreement
1 Location
2 Workshop activities
3 Dinner
4 Month

56
 UNIT 6 •• RISK

l!I Match these expressions from the meeting to the appropriate heading i n the
Useful language box below. (Some headings are not used.) Use the audio
script on page 159 to check the context of each expression.
1 Now, just to sum up, we've looked at ...
2 ... I think it's a really great place ...
3 So can we all agree, then, that we go with Florence?
4 ... I think that most of the time we'll be spending indoors.

5 Now, what about the activities?

6 What did you come u p with, Carol, for the actual workshops?
7 I thought it might be a good idea to use role play ...
8 I think some kind of interaction is a good idea ...
9 OK, so we go with the workshops, then?
10 Well, I don't know about role plays, though.
11 ... I was thinking maybe something like, you know, a simple quiz ...
12 Exactly.

13 ... yeah, that's a brilliant idea ...

II You are managers of a national newspaper. Consider this situation.

One of your top foreign correspondents, Mike Harris, has been reporting on events in a
country at war. To get his story, he went behind enemy lines and was kidnapped. In the
operation to rescue him, one of the rescue team was killed and two were seriously injured.

Harris is known to be one of the best foreign correspondents in the world. However, he has
been widely criticised in the national press because of the 'unnecessary risks' he took to
get his story. He had been advised by local officials that it was extremely unwise to go into
such hostile territory, but he ignored their warning.

Hold a meeting to decide:

a) how to deal with the criticisms, which are harming your newspaper's image;
b) whether to discipline Mike Harris for his behaviour.

U S E F U L LANGUAGE

ASKING FOR OPINIONS DISAGREEING EMPHASISING

How do you feel about this? Hold on now, don't you think ... I don't want to repeat myself, but .. .
Do you have strong feelings about this? I can't go along with that. I'm sorry to go on about this, but .. .
What's your view on this? Sorry, I can't agree with you. I do think this is really important.

GIVING OPINIONS ADDING A CONDITION SUMMARISING

Well, I'm sorry to say, I think ... I agree, providing we can .. . So, we've agreed that ...
Well, unfortunately, we're going to We can do that as long as .. . I'll just sum up what we've agreed.
have to ... That's OK if ... OK, let me recap ...
I can't see what the problem is.
MAKING SUGGESTIONS
AGREEING What about if we ...
I think I agree with you there. How about ...
I couldn't agree with you more. I think we should / ought to ...
Absolutely!/Exactly!

57
A m i n i n g c o m p a ny assesses the risks
i nvolved in a new joint ventu re

Background
Winton Carter Mining (WCM) is a dynamic Canadian mining company. It has
announced that it will be going public early next year. Valued at C$85 million, the
company has mining interests in Africa and has been highly successful in exploiting
copper, cobalt and bauxite deposits in the more politically stable countries in the
region. WCM's offer is bound to appeal to those investors who are willing to take
risks in return for high profits.

Discuss the risks and hazards that foreign mining companies could face
when exploiting mineral deposits i n Africa - for example, political instability.

Mining groups victim to African uncertainty

by William MacNamara

U n der th e ju ng l es of countries eral deposits. Yet exploiting Russia - s t i l l have abundant

such as Guinea. where soldiers those deposit poses problems reserve . But as they are gradu­
ki l i ed 1 5 7
demonstrators last that scare off most of the compa­ ally exhausted. many i n the
week, and Congo. s t ruggl ing to nies best able to develop them. industry believe Africa ·s volatile
recover from civil war. lie some Traditional source of metals mining frontiers w i l l have to
of the richest u n expl o it ed mi n - - Australia, Chile, South Africa. take over.

A difficult decision
When a company goes public, it prepares a prospectus which gives
information about the company to investors. The prospectus aims to
persuade the public to buy shares in the company. WCM has the opportunity
of setting up a joint venture in an African country with the state-run mini�
company, ATZ. WCM is considering whether to sign a contract with ATZ.
The Chief Executive Officer and the Chief Financial Officer of WCM
must decide whether to mention this project in their prospectus.

1 What are the advantages and disadvantages of mentioning

the African project in WCM's prospectus?

2 What do you think they will decide to do?

�>» CD2.14 Listen to the discussion between

Daniel Habersham, CEO, and Denise Couture,
CFO. What do they decide to do? Do you think
they made the right decision?
You are directors of WCM. Work in groups of four or five.

Each of you has done some research into the mining industry in the African Watch the Case study
commentary on the
country. Each of you reads one of the documents and reports on its contents to
DVD-ROM. WA
the other directors at the meeting.

Director 1: Turn to page 136. Director 4: Turn to page 140.

Director 2: Turn to page 134. Director 5: Turn to page 142. Writing
Director 3: Turn to page 1 3 5. As members of the board
Evaluate each risk according to the following scale: of WCM, write a report
very high high medium low risk-free for the CEO analysing the
options you considered.
Join with the other groups. Report on your discussion. Then make a final
Make recommendations
decision as one group whether or not to continue negotiations with ATZ.
on what WCM should do.
Decide whether to include information about the African project in your
 2 Working in n e w markets
Curtis Knight is a public relations firm,
based in Switzerland. A growing part of G Read the extract on the opposite page from
a brochure about business i n Kazakhstan
its work involves helping cou ntries to
and answer these questions.
promote themselves as tourist or busi ness
destinations. For example, it represents 1 What is the dress code for men and women in
countries at a semi-official level in forums Kazakhstan?
such as trade conferences and tourism 2 What attitude do l<azakhstanis have towards
promotion fairs, handling the way the punctuality? Can you give an example?
country is advertised and promoted.
3 Who makes the decisions in most companies

0 What would be useful to know if you in Kazakhstan? Why is this the case?

wanted to do business in Kazakhstan? 4 List three qualities that Kazakhstani staff

would look for in an expatriate manager.

�l)) co2.1s An executive from Curtis Knight 5 Which two styles of management would be
is giving a presentation about Kazakhstan effective in Kazakhstan? What kind of manager
to a group of businesspeople at a trade would you prefer to work under?
conference. Listen to the first part of his 6 What's the best way of developing a personal
presentation and make notes under relationship with a business contact in
these headings. Kazakhstan?

General information 7 List three things that would characterise a

• Po pu latio n social evening in Kazakhstan.

• Land area
• Ethnicity e Discuss these questions.

• First contacts 1 What information in the presentation and

brochure extract surprised you?
Verbal/Non-verbal commu n icatio n
2 What would you find difficult to deal with if you
• Space between speakers
were doing business in Kazakhstan?
• Eye contact
3 What questions would you like to ask someone
• Handshakes
who is an expert on Kazakhstan?
• Voice

You have been asked to make a

presentation of your own country or a
country you know welt at an international
trade fair in Frankfurt, Germany. Use the
same categories as those in the Kazakhstan
presentation to structure your talk. Present
the country you have chosen to the other
members of your group. Answer any
questions the audience may ask.
 WORKING ACROSS CULTURES H WORKING IN NEW MARKETS

Business culture in l{azakhstan

Dress, punctuality and formality Decision-making in the workplace Relationship-building

Men tend to dress conservatively in In most businesses, it is true to say that Creating good relationships is as

business. They usually wear black or the boss makes most of the decisions. important here as in other countries.
dark trousers and a white or light shirt. This is probably a result of the Soviet You need to get the trust of your
However, Kazakhstani women often system. where obedience was business contact before getting down
dress very fashionably. They like to considered to be an important quality to business. Once again, you should
wear the latest designer clothes. in an employee. If staff want answers bear in mind the importance of talking
or feedback, they generally go to about the right things at the beginning
In formal office situations, Kazakhstanis
their supervisor. Hierarchy is very of your relationship. The things that
use first and family names. important in all businesses, and senior matter to most Kazakhstanis are family,
people are shown great respect. children and health.
Regarding punctuality and meeting
deadlines, they tend to be more Qualities of a supervisor or Socialising
relaxed than in some other countries. manager During a job or after making a deal,
For example. if you want to see an
If you have to manage local you will probably have a social evening
official, you can just 'drop in' dw·ing
Kazakhstani staff, they will expect with your Kazakhstani contact.You
working homs. It is unlikely anyone
you to have certain qualities and will should expect to eat a Jot of food and
would ask if you have an appointment.
respond well if you possess them. They to be offered a variety of drinks. There

Business cards are very important, as will want you to be knowledgeable, to will also be many toasts during the

they show your status and position. show leadership qualities and to be meal. Kazakhstanis love to make toasts!

Your job title should be on your card. approachable. The last quality is very
Conclusion
and it is helpful if the wording is in important. If you are approachable,
Russian on one side and English local staff are much more likely to There are outstanding opportunities

on the other. share their ideas with you. for investment in most sectors of the
economy, and now is the time to build
There are two types of manager who up relationships with Kazakhstanis
are likely to be respected by local staff. working in the same area as you.
The first kind is decisive and gives
clear leadership. The second type
is 'people-oriented' .

61
 STARTI NG UP El Which of these statements do you agree with? Explain your reasons.
Managers should:

1 know when your birthday is.

2 know where you are and what you're doing at all times during working hours.

3 not criticise or praise.

4 not interfere in disagreements between members of staff.

5 not ask people to do things they're not prepared to do themselves.

6 be available at all times to give staff advice and support.

7 keep their distance from staff and not get involved in socialising outside work.
8 use polite language at all times.
9 work longer hours than their staff.

10 comment on the personal appearance of their staff.

El What is the role of a manager? Choose your top three roles from the
following and explain your ideas.
• motivator • problem-solver • friend
• mediator • monitor • organiser
• leader • decision-maker • role model

Can you connect the roles above to the points you discussed in Exercise A?

II H ow im portant are these factors in judging the success of a manager?

• the loyalty of staff • achievement of results • popularity with their superiors
66
 UNIT 7 n- MANAGEMENT STYLES

B Give the opposite meaning for each of these adjectives, using the prefixes
Management in-, ir-, un-, ii- or dis-. Then provide the noun forms.
q ualities 1 considerate 5 efficient 10 organised
il)co11>iderate, co11s-ide ratio11 6 flexible 11 decisive
2 competent 7 inspiring 12 responsible

3 creative 8 logical 13 sociable

4 diplomatic 9 loyal 14 supportive

•O co2.16 Mark the stress on the positive adjective and noun forms in
Exercise A. Listen and check your answers.

Choose the four best qualities of a manager using the adjectives in

Exercise A and rank them in order of im portance (1 = most im portant).
Then choose the four worst q ualities and rank them (1 = worst).

E Match these pairs of contrasting management styles.

1 autocratic a) collaborative
2 centralising b) controlling
3 directive c) delegating
4 empowering d) democratic

5 hands-on e) people-orientated
6 task-orientated f) laissez-faire

D Discuss these questions.

1 Which management style (s) would you like to experience I have you experienced?
2 How would you describe your own management style? If you are not a manager,
See the DVD-ROM � what do you think your management style would be?
for the i-Glossary. W 3 What qualities do you think you possess or lack?

LISTEN I NG rJ �>l) co2.17 Laurie Mullins is the author of Management and Organisational
Successful Behaviour. Listen to the first part of the i nterview. Which two factors
influence the managerial function today, and what are the two examples
managers
that Laurie gives of these factors?

l!I �>l) co2.1s Listen to the second part. Which six managerial philosophies
does Laurie mention?

II �>l) co2.19 Listen to the final part and complete these extracts.

Some managers believe in the need for 1 and control through an 2 system
. . . . . . . . . . . . . . . . . . . . . . . .

of central control, formal organisation 3, systems of 4, and the belief that

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

it's natural for people to try to get away with what they can .. .

Other managers believe in the integration of 5 and 6 goals and that people
. . . . . . . . . . . . . . . . . . . . . . . .

Laurie Mullins can be 7 to the goals of the organisation, in which case they will exercise self·
. . . . . . . . . . . .

8
• . . . • . . . •. . . and self- 9•
. . . . . . . . . . . .

Watch the
interview on
the DVD-ROM. l:J I n groups, answer this question.
Which management style do you think gets the best out of people?

67
UNIT 7 .._ MANAGEMENT STYLES

Discuss these questions.

Management 1 What do you like or dislike about the management style in your organisation?
styles
2 What would your ideal workplace be like?

Work in pairs.
Student A: Read the article on the opposite page about Anna Wintour, Chief Executive
of Vogue, the fashion magazine.
Student B: Turn to page 145 and read the article about Jim Buckmaster, CEO of Craigslist,
the Internet company.

Read your article quickly and decide which of these statements are true
for the CEO you read about.
They ...
1 think most meetings are a waste of time.

2 are good at making decisions quickly and firmly.

3 want people to know who is the boss.

4 think artificial deadlines are stressful.

5 believe in hiring the best staff they can.

6 think their staff feel happy working there.

II Read your article again. I n pairs, compare and contrast the styles of the
two CEOs.

EJ Which of these adjectives do you think describe Anna Wintour?

approachable demanding perfectionist ruthless volatile

D Match the adjectives in the box to the definitions below.

anti-authoritarian approachable demanding perfectionist

ruthless self-motivated talented volatile

1 not caring if you have to harm others to get what you want
2 not satisfied with anything unless it is exactly right

3 having a natural ability to do something well

4 wanting to achieve something by themselves

5 against forcing people to obey strict rules

6 friendly and easy to talk to

7 expecting a lot of time and effort from others

8 liable to suddenly become angry

II Complete this paragraph with adjectives from Exercise E.

At my last company, the managers were remote and not at all . . . . . . . . . . . .1• They were hard
to get to know. The only one who showed any emotion was the CEO, who had a . . . . .2 . . . . . . .

temper. He was completely ruth less and didn't care about his staff at all. He acted like a
dictator. He had a . .3 management style, insisting that everything was exactly right.
. . . . . . . . . .

He was also very demanding, making us work really unsociable hours. In my new company,
the managers are good communicators, decision-making is open and transparent and the
style is . .
. . . . . . . . .4. Management is by consensus. All the staff are .
. . . . . . .
. 5
. . . . and experts in
their own fields. They are . 6
. . . . . . . . . . . and trusted to work without supervision.

68
 UNIT 7 .... MANAGEMENT STYLES
Student A

An na Wi nto u r
60 Minutes' Morley S afer interviews Vogue ' s
Editor in her first lengthy U. S . T.V. profi le .

She i s said t o be the most powerful woman i n

fashion and she does noth i ng t o dispel that belief.
Her name is Anna Wintour, a name that strikes
terror in some and loathing in others. It should
also be said she commands a loyal band of friends
and ad mi rers .

"The b l urb on your unauthorized b i og ra phy

10 reads 'She's ambitious, driven, needy, a perfec­
tionist ' . Accurate?" 60 Minutes correspondent
M orley Safer asked Wintour.
"We l l , I am very driven by what I do. I am
certa i n l y very competitive. I l i ke people who
15 represent the best of what they do, and if that turns
you i n t o a perfect i o n i s t . then maybe I a m " ,

Wintour replied.
Wintour i s involved in every detail of the
magazine: the clothes, editing the pictures and
20 a rt icles. She is dec i s ive, impatient and bears a
.

look that says " I ' m the boss, and you're bo r ing. "

"An editor in the final analysis is a kind of

dictator-a magazine is not a democracy?" Safer
asked.
25 "ll 's a group of peop le co m i ng together and
presenting ideas from which I pick what I th i nk is
the best mix for each particular issue, but in the
end. the final decision has to be mine." Wintour
explained. "We're here to work. There's on-duty
30 t i me and off-duty time, and we·re drawn together
by our pass i on for the magazine. If one comes
across sometimes as bei ng cold or brusque. it's
si mply because rm striving for the best. "

" l t 's not Ii ke a tea party here. We work very

35 hard," Vogue 's Editor-at-large Andre Leon Talley
told Safer. Asked what kind of boss she is. Talley
told Safer, "Let's say thatAnna can be intimidating.
I think that's her armor, to intimidate. To give the
people the sense that she is in charge. She is not a
40 person who's going to show you her emotions
ever. She's like a doctor, when she's looking at
your work . i t ' s l i ke a m e d i c a l a n a l y s i s . "
Vogue Creative D i rector Grace Coddington
says, " I t h i n k she enjoys not being completely
45 approachable, you know. Just her office is very
int i m idating right? You have to walk about a mile
.

into the office before you get to her desk, and I ' m
sure it's intentional."

from CBS

m Discuss these questions.

1 What are the advantages and disadvantages of each style of management described
in the articles?
2 Would you rather work for a male or female manager? Describe your ideal manager.
3 Do you agree with Buckmaster that most meetings are a waste of time?

69
•eM1u11H:mi
UNIT 7 ... ... MANAGEMENT STYLES

• In written English, we often use pronouns to avoid repeating words and phrases
Text reference when it is already clear what we are talking about.
We need the report urgently- it's got to be sent to head office.
• Writers sometimes use we to refer to themselves and the readers together.
As we saw in Episode 1 ...
• We sometimes use it as an 'empty' subject with no real meaning.
It's nine o'clock.
• We can use it, this, that, these and those to refer back or forward to something
in a text, or outside the text itself.
Most French senior management were educated at the Grandes Eco/es. These
colleges champion an intellectual rigour in their students. This produces a highly
educated management population.
• We can use they to avoid saying he or she, especially after indefinite words like
anyone, no one, somebody, etc.
Someone's been trying to phone us all morning, but they can't get through.
c:) Grammar reference page 149

l'J Look at the Jim Buckmaster article on page 145 and say what all the words
in red refer to.

I] Look at the first paragraph of the Anna Wintour article on page 69 and find
an example of it as an 'empty' subject.

D Look at the Anna Wintour article again and underline all the examples
of text reference. Use this checklist to help you.
• pronouns
• possessive adjectives or pronouns
• it, this, that, these and those

liJ Say what all the words you underlined in Exercise C refer to.

II Read this paragraph and say what the former and the latter refer to.
Wintour's critics describe her management style as autocratic, whilst her supporters label
it perfectionist. The former believe she is ruthlessly determined, whereas the latter would
rather say she is focused on excellence.

D Write a profile of a manager you know or are interested in.

l'J �>» co2.20, 2.21 Jason Harding, Sales Manager of the drinks company Quench
Presentations Products, is giving a presentation to some customers. Listen to both parts of
the presentation and answer these questions.
1 What is the name of the product?
2 When will it be launched?
3 What are its unique selling points?
4 What will the audience take away with them?

70
 UNIT 7 •• MANAGEMENT STYLES

l!I �l)) co2.20 Listen to the first part

of the presentation again and
complete these extracts.
1 I'm going to tell you about our new
iced tea that'll be . . . . . . . . . . . . early
next March.
2 What is Quench Iced Tea? What
are its . . . . . . . . . . . . . . . . . . . . . . . . ?
3 The fact that we offer it in . . . . . . . . . . . .

. . . . . . . . . . . . will give it a definite

. . . . . . . . . . . . over the competition.
4 I want to . . . . . . . . . . . . that. In other
words, it's got a . . . . . . . . . . . . . . . . . . . . . . . . .

5 This will undoubtedly appeal to

. . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . And
that's a major . . . . . . . . . . . . . . . . . . . . . . . . of
our product.

II �)» co2.21 Listen to the second part again and complete these extracts.
1 . . . . . . . . . . . . . . . . . . . . . . . . • the tea itself. As you know, our company uses only
. . . . . . . . . . . .

. . . . . . . . . . . . -. . . . . . . . . . . .b tea .. .
2 Please take a look at the . . . . . . . . . . . . .

3 What does this . . . . . . . . . . . . "? I t . . . . . . . . . . . .b that once again, we're offering customers
c
· · · · · · · · · ·· · .

4 You can see from the slide that the bottles are . . . . . . . . . . . . . . . . . . . . . . . .", very
. . . . . . . . . . . . - . . . . . . . . . . . _b and They'll really . . . . . . . . . . . . . . . . . . . . . . . .d on the shelf.
. . . . . . . . . . . .< .

5 So to . . . . . . . . . . . .", we're offering customers a unique, delicious, thirst-quenching

product. A product that'll . . _ b to different tastes and which has . . . . . . . . . . . .
. . . . . . . . .

. . . . . . . . . . . .<. It'll [ ... ) be supported by a . . . . . . . . d. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IJ Match each extract in Exercises B and C to a heading i n the Useful

language box below.

D Prepare a presentation about a product you have bought recently.

Try to persuade your audience to buy it.

USEFUL LANGUAGE

STATING THE PURPOSE PERSUADING CHANGING THE S UBJECT DISCUSSING IMPLICATIONS

The purpose of my talk It will give us an edge Moving on to ... What this means is ...
today is to ... over the competition. OK, now I'll talk about ... The consequence of this is ...
What I want to do today This will undoubtedly Right, turning now to ... This has resulted in ...
is to ... appeal to ...
My main objective today It has many outstanding
REFERRING TO VISUALS EXEMPLIFYING
is to ... features.
Let's look at the chart. For instance ...
Let me draw your attention Let me give you an
INVOLVING THE AUDIENCE EMPHASISING
to the slide. example.
What are its main selling I'd just like to highlight ...
Please take a look at the Let me give you an
points? I want to stress that ... visual. interesting statistic.
As I'm sure you all know, ... I'd like to emphasise that ...
As you are aware ...

71
 Selig and Lin

Management style of
Niel Selig and Pedar Lind founded their electronics Paul Johnstone
company (S&L) in Copenhagen, Denmark, in You are directors of S&L. You interviewed three
1985. They developed the company by making members of the project team about Paul's style of
top-of-the-range electronics products for higher­ management.
income groups. The products have a classical look,
�)» CD2.22, 2.23, 2.24 Work in small groups. Listen
innovative designs and a distinctive appearance .
to the comments and note down the strengths and
A highly successful company, S&L has expanded
weaknesses of his style, using these categories.
internationally and now has over 500 stores
worldwide. • Personality • Communication • Goal-setting
• Decision-making • Monitoring performance
Six months ago, an international team was
• Giving feedback
assembled to carry out a project. Consisting of 16
members, the team was instructed to conduct a
survey of S&L's customer service to retail outlets
Replacing the Project Manager
in six major European countries.
The Directors of S&L have talked informally to
Unfortunately, the project has run into difficulties. several candidates who are interested in taking over
Deadlines for submitting reports have been missed, from Paul Johnstone. The candidates were asked to
and morale in the project team is low. lt has become note down their management style.
apparent that the present Project Manager, Paul
Read the descriptions of their style on the
Johnstone, does not have the right style to manage
opposite page.
the team. lt has been decided, therefore, to replace
him with someone else within the organisation who
has a more suitable management style.
 UNIT ? •• MANAGEMENT STYLES

Manager 1 : Ruth
Sales Manager, Central Europe
I'm strong, self-confident, sociable.
1 have high expectations of co-workers.

My job:
•To give clear, detailed instructions whic�
must be carried out. I'm not interested 1n
explanations if the work isn't done .
• It's important to give clear goals for each
member of staff.
• Deadlines must be met at all costs. I won't
accept excuses.
• I'm a hands-on manager. I check all the time to make
sure
staff are doing their job properly.
• I'm a good listener, but then I tell people what
to do.
• Dealing with multinat ional staff is difficult. You have to tell
them your management style and what you expect fro� them .
• I'm a decisive person, but if I make
a mistake, I admit it.
staff appraisal interviews: Every three months. I discuss my
team's weaknesses and strengths.
My strengths: Leadership, achieving targets
My personality: A workaholic; tough, fair, ambitious. I like new
challenges.

Manager 3: Kazuo
Manager, Business Support Unit
I'm hard-working, democratic and loyal. Manager 4: Martina
My job: Manager, IT Department
• To achieve the objectives and goals of I'm ambitious, trusting and responsible.
the company. My job:
• To ensure that each person in the • To organise people so that they get the
department understands our goals and shares in decision-making. work done.
• I believe the company is more important than the individual. It is • I set goals, after agreement
with my
essential never to let the company down. people. I then give them responsibility and authority to get the
• Hold many meetings, no time limit. Always consult staff on job done. They have to decide how to do it. Their job? To carry
all decisions. out my instructions - to the letter!
• Do not permit disagreemenVarguments. We want harmony • My priority is to make the right decisions
, as quickly as possible,
at all times. then get staff to put them into practice.
• Discuss aims with the team and set realistic targets. • I use the bonus system to motivate
my team. Everyone is
• I work six days a week, sometimes seven. I expect staff to motivated by money.
do the same. Staff appraisal interviews: Once a year. To be honest, they're
• People should feel ashamed if they don't meet company targets.
usually a waste of time. I want a weekly update from each
• I want to learn how to manage multicultural groups successfully.
member of staff on how they're achieving their goals.
Staff appraisal interviews: Every quarter My strengths: Organising, leading teams, motivating, getting the
My strengths: Organising ability, getting the job done, loyalty to job done
the company My personality: Tenacious, demanding, tough on the outside -
My personality: Quiet, determined, focused on results but soft inside!

1 Work in groups of four. You are Directors of S&L. Each of

Watch the Case study
you chooses a different candidate. Make a persuasive commentary on the
presentation of your candidate to the other members of DVD-ROM. A W
your group.

2 Working individually, rank the four candidates in terms Writing

of their suitability for the position of Project Manager. As one of the Directors, write a short report to the
Nu m ber 1 would be your first choice, number 4 t h e least Board of Directors recommending your preferred
suitable candidate. candidate as the new Project Manager. Give reasons
3 Working as a group, compare your decisions and choose for your decision. Use these headings:
one candidate to be the new Project Manager. • I n t roduct i on
• Summary of shortlisted candidates
4 Make a presentation to another group outlining the
• Recommendation with reasons
strengths and weaknesses of each candidate and stating
your choice of candidate, with your reasons. c:J Writing file page 1 3 1
73
 STARTING U P rJ Think of at least two advantages and two disadvantages of working i n teams.

ll For each category in this quiz, tick the three statements that most apply to
you. Then read the explanations on page 136.

a) I consider what I say. a) I often come up with a) I like to think logically. a) Meetings have to be
unusual solutions. prepared for carefully.
b) I contribute a lot in b) I keep emotions out of
discussions. b) It's important to be decision-making. b) I like surprises.
realistic.
c) Action is more important c) I avoid confrontation. c) I hate time-wasting at
than reflection. c) People see me as a
d) I sometimes tread on
meetings.
creative person.
d) I listen to others before people's toes. d) Too much time can be
I say anything. d) I like practical solutions. spent on preparation.
e) Understanding people
e) Discussion gives me e) You shouldn't overlook is as important as e) People say I'm a punctual
energy and ideas. details. being right. person.

f) I don't say a lot at f) You shouldn't get lost in f) I care about other f) I need a deadline to get
meetings. details. people's feelings. me going.

II Work i n groups and compare your answers to Exercise B. Then discuss

these questions.
1 Do you think your group would make a good team, based on the results of the quiz?
Why? I Why not?
2 Does a team always need a leader, and if so, should a team change its leader regularly?
3 Does tension between team members make a team more effective?
74
 UNIT 8 H TEAM BUILDING

� fJ Match the prefixes of the words (1-10) to their meanings (a-c).

Prefix

1 mismatch
Meaning of prefix

a) not b) do badly c) former

2 pro-European a) opposite b) in favour of c) before

3 pre-event a) not enough b) against c) before

4 post-activity a) after b) too much c) not enough

5 disconnect a) very b) former c) not

6 ex-military a) opposite b) former c) after

7 bilateral a) against b) after c) two

8 remotivate a) again b) former c) after

9 multicultural a) again b) many c) against

10 hyperlink a) not enough b) very / more than usual c) opposite

a Complete this web advert using the correct form of words from Exercise A.

ESPRIT DE CORPS - the last word in team building

I s your team letting itself and the company down? international companies, . .. . . . . . . . . . 4 teams are a speciality.
Staffed by many . . . . . . . . . . 5 personnel, we know what makes
• Do you have . . . . . . . . 1 teams and leaders?
. .
. . . .

teams work.
• Do you have team members who feel . . . . . . . . ... . 2
Before making any recommendations, we will visit you for a
from each other?
6 consultation to find out your exact requirements.
• Do you need to energise and . . . . . . . . 3 a tired team?
. • • • . . • • • • • •
. . . .

After completing the event/programme, we will hold a . . . . . . . . . . . .7

We have the solution. feedback and debriefing session and also supply a full written
Choose from our wide range of team-building activity days and report (including expert advice and follow-up strategies).
longer training and development programmes. Click on the . . . . . . . . . . . . 8 below to see the full range of events and
Having worked for some of the world's largest and best-known programmes.

II Complete the final part of the advert from Exercise B with the verbs in the box.

break down build develop inspire maximise reduce stimulate

Esprit de Corps team-building events and programmes will help you and your company to:

• -�gy�!�P.1 loyalty and trust • . . . . . . . . . . . . .5 creativity

• . • • • . • • • • • . • . 2 potential • ..... . .
. . . . . .6 relationships

• • • • • . • . . . . . . . 3 barriers • • • • • • • • • . • • • • 7 staff tu rnove r

• . . . .. ....
. . . . • communication

EJ Add prefixes to these words to give their opposite meanings. Then use them
to discuss the questions below.
1 communicative 6 focused 11 sociable
2 decisive 7 imaginative 12 stable
3 efficient 8 loyal 13 tolerant

4 enth usiastic 9 organised 14 patient

5 flexible 1 0 practical
• Who is the best or worst person you have ever worked with? Explain why.
See the DVD-ROM �
for the i-G/ossary. W • What qualities could you contribute to a team? What qualities would the other
members need to have to create an effective team?

75
 UNIT S .. TEAM BUILDING

l'J ,.J)) co2.2s Listen to the first part of an interview with Dan Collins, founder of
Building team-building specialists Fresh group. According to Dan, what is a team, and
successful teams what is a leader's role in a team?

ll ..>» CD2.26 Listen to the second part. What kind of commun ication problems do
people at work often have?

II ,.>)) co2.27 Listen to the third part. Work in pairs. Which four team roles does
Dan mention? Take notes on what he says about each role.

Dan Collins [iJ ..>» CD2.28 Listen to the final part. What does Dan say about the attitudes to
teams and how they are led in a) Europe and the US, and b) India and China?

W II
Watch the interview
on the DVD-ROM.
A You have to set up a team for a very im portant project. Choose four people
you know and say why they would make a good team.

B You are going to read an article entitled Recipes for team building. What do
New ways of you think are the advantages of sending teams on cookery courses?
team building
ll Read the article on the opposite page quickly and check if your answers to
Exercise A were mentioned. What other advantages were mentioned?

II Scan the article to find (where mentioned):

1 all the cookery schools 2 their clients 3 their locations

[iJ Read the article again and answer these questions.

1 Who are these people? Summarise the points they make in the article.
a) Anna Venturi c) Christi Strauss e) Rosalind Rathouse
b) Mase le Siatu'u d) Richard Pash f) Letizia Tufari
2 Apart from running team-building courses, what else do some corporate cookery
schools do? Why is this successful?

II Without looking at the article, complete these word partnerships.

1 f _ _ t _ _ team spirit 4 client h o _ p _ t _ _ _ _ _
2 break down b _ r r s 5 income s t m
3 joint v _ n _ _ r _

D Answer these questions.

1 Would you like to attend a cookery course as part of a team-building exercise?
Why? I Why not?
2 What would you find difficult about working in a team?
3 Which sort of people make the worst team members?
4 If you could go on or design any team-building course, what would it be?

m Write a short paragraph summarising the advantages of sending teams on a

cookery course.

76
 UNIT 8 ... ... TEAM BUILDING

Recipes for team building

by Rhymer Rigby

When cutting-edge co111panies want

to foster team spirit. relax or even
entertain c l ients, breaking bread
together is no longer enough - they
s now bake that bread the111selves.
Corporate cookery courses are the
latest exercise in business bonding.
Venturi's Table clai111s to be the UK's
only dedicated corporate cookery
10 school. Anna Venturi, the London­

based school's founder, says business

is brisk. as teams from companies
i n c l u d i n g Abbott Mead Vickers,
Merri l l Lynch and eBay head to
1 5 Wandsworth to cook up a storm.

Ms Venturi says cooking appeals to

companies because it brings people
together: ' I t ·s not competitive. We
just want everyone to relax and have
20 a good time. In fact, it's al111ost ther­

apy. We get everyone, from directors

to secretaries, from graduates to
retirement dos.'
The tea111 from Cereal Products
25 Worldwide, a joint venture between 45 This is the reason the company chose Many of the better-known cookery
Nestle and General M i l ls, making to send the 1ea111 on a cookery course, schools offer packages aimed at
111ushroom rav i o l i , stuffed loin of says Christi Strauss, CPW C h i e f so businesses. Mosimann's Academy

pork and sweetened oranges w i t h Executive. 'We look for something that allows teambuilders to be taught by
profiteroles i n the kitchen a t Venturi 's cuts across ages and backgrounds and t h e eponymous A n t o n , w h i l e the
30 Table, appears to prove M s Venturi 's 50 cultures. If we rplayedl golf, it would Lavender House in Norfolk and The
point that cooking can build teams. be great for good golfers, but not neces­ Food and Wine Academy also cater
The group members are of mixed sarily for anyone else.' With cookery, 85 for corporate cooks.

culinary abilities: some are dab hands she says, anyone can take pa11 and they The Cookery School differentiates
in the kitchen; others have never can pa1ticipate as much or little <L5 they itself by working with psychologists
35 caramelised an orange in their lives. 55 want. Plus there's a tasty meal on offer who observe the team members as
Yet everyone happily p i tches in - and at the end of the clay. they cook before feeding back to the
slaving over a hot stove and piping Richard Pash, a Marketing Man­ 90 group. Organisations that want to see

chocolate custard into a profiterole ager at Mars and another Venturi how teams work under d i fferent
helps to break down batTiers. Masele customer, says cookery feels natural c i rcu111stances can ask for a su·essful
40 Siatu ' u . CPW's Human Resources 60 compared to some team-b u i l d i n g o r confront a t i o n a l k i t c h e n . ' I t
Vice-President. says h a v i n g your a c t i v i t i e s . Constructing a bridge becomes a microcosm o f the work-
elbows in flour and eggs brings across a stream when there is a per­ 95 place,' says Ms Rathouse.

together fellow employees who are fectly good one 50 metres away may Perhaps the most intriguing use
dispersed across the world. seem a little pointless, but cooking a of places l i ke Venturi, however, is not
65 three-course meal you i n tend to sit as venues for team building but for
down and eat certainly isn't. 'Unlike c l i e n t entertain111ent. M s Venturi 's
many courses we've been on, it's the 1oodaughter Letizia Tufari, who worked
opposite of contrived,' says Mr Pash. at Pfizer before joining her mother's
Venturi 's Table isn't the only com- business, says client hospitality is a
10 pany offering corporate cookery growing income strea111 for Venturi .
courses. The Cookery School at Lillie She says that for cash-rich, time-poor
Portland Street in London has an 10s businesspeo p l e , f i n e d i n i n g has
i ncreasing n u m ber of corporate become rather pedestrian. B u t cook­
clients who, says Principal Rosalind ing a three-course meal for oneself is
75 Rathouse, comprise about a t h i rd of more unusual.
its business. These include Investec,
B P and Iron Mountain.
UNIT 8 .... TEAM BUILDING

The modal perfect is formed using modal verb + hove + past participle.
His presence might hove boosted the team's performance.
Two uses of the modal perfect are:
• criticising o r commenting on past actions
You really should hove bocked up the files.
We needn't have hurried to the airport, as the plane was late.
• speculating about the past or present
I think the meeting may have finished now.
I've phoned the office three times now. I think they must have gone home.
c:) Grammar reference page 149

Et Answer yes, no or not sure to each of these questions.

1 They should have changed the team leader.
Did they change the team leader?
2 Alicia needn't have spent so much time on the report.
Did Alicia spend too much time on the report?

3 They could have prepared better if they'd had more time.

Did they prepare as well as they wanted to?

4 The team would have been stronger without him.

Was the team as strong as it could be?

5 The team may have made a decision by now.

Has the team made a decision yet?
6 Carlos shouldn't have spent all the budget on one team-building course.
Did Carlos spend all the budget on one team-building course?
7 The Chairman couldn't have prepared properly, as we lost the contract.
Did the Chairman do enough preparation?
8 I've lost my memory stick. I must have dropped it somewhere.
Did I drop my memory stick somewhere?

[J Which of these statements use the modal perfect correctly?

Suggest alternative modals for the incorrect statements.
1 It's too late to sign the contract. You must have done it last week.
2 I'm a bit angry. You would have told me you had invited the entire team for dinner.
3 His behaviour yesterday could have ruined all the team spirit we have built up.
4 They bought the shares when they were cheap and sold them at their peak, so they
needn't have made a lot of money.
5 Simone wasn't at the meeting. She might have been delayed at the airport.
6 You couldn't have booked a place on the June course because it was completely full.
7 She's made a lot of mistakes. She should have been very careless.
8 Abi was inspirational and a motivator. We must have made her team leader.

II Role-play this situation in pairs. Use as many of these structures as

possible: should have I shouldn't have I could have I needn't have I
+ past participle.

Student A: You are a sales rep. You have just been on a three-day business trip. You :
• stayed in a five-star hotel • phoned home from your room
• ordered breakfast in your room • hired a top-of-the-range car
• drank most of the mini-bar • had your clothes dry-cleaned by the hotel.
Defend your actions.
Student B: You are the Finance Director. You think the rep's expenses are excessive and
are refusing to pay them.
78
 UNIT 8 .,. TEAM BUILDING

B Read these suggestions about ways of dealing with conflict. Put each of
Resolving them under one of these headings: Do or Don't.
conflict 1 Delay taking action if
possible.
2 Get angry from time
to time with difficult
members.

3 Try to see the problem

from the point of view of
the team.
4 Be truthful about how you
see the situation.
5 Encourage open and frank
discussion.
6 Try to ignore tensions
within the team.
7 Bring potential conflict and disagreement into the open.
8 Give special attention to team members who are creating problems.

9 Persist with 'impossible people' - you may win them over.

10 Try to find 'win-win' solutions.

[J ,.>l) co2.29 Listen to the conversation between Karen, Head of Department,

and Larissa. Which suggestions from Exercise A does Karen use to deal
with the conflict between Larissa and her colleague, Sophie?

D ,.>l) co2.29 Listen again and note down the phrases Karen uses to deal with
the conflict. Add them to the appropriate sections in the Useful language
box below.

liJ Work in pairs. Role-play this situation. Use phrases from the
Useful language box to discuss the problems.
A team of six multinational staff is managing a number of key accounts at a n advertising
agency. However, one of the team is unhappy. The employee is difficult to work with and
uncooperative.
Student A: Turn to page 136.
Student B: Turn to page 134.

U S E F U L LANGUAGE

EXPRESSING YOUR FEELINGS EXPRESSING SATISFACTION SHOWING SYMPATHY RESOLVING THE CONFLICT
My main concern is ... Yes, that would be very I know how you feel. How do you think we should
What really worries me is ... helpful. I understand what you're deal with this?
What concerns me is ... Yes, that's a good idea. saying. What's the best approach,
Mmm. I think that's the right I can see where you're do you think?
approach to take. coming from, but ... What's your solution?
MAKING SUGGESTIONS
One thing you could do is ...
EXPRESSING IDENTIFYING THE REAL REVIEWING THE SITUATION
It might be worth ...
DISSATISFACTION PROBLEM Let's look at this again in a
It could be helpful if you ...
I don't think that would do What's really bothering you? few days' /weeks' time.
much good. What are you really worried Let's meet next week and see
I'm not sure that would work. about? how things are going.
I don't think that's the What's the real problem? Let's review this when the
answer. situation's a bit clearer.

79
 Background David
Designer Kitchen Products (DKP) is based in Seymour
Leicester, England. I t sells a range of high-class When David
kitchenware to stores across Europe. A year ago, the Seymour was
company hired a new Sales Manager, David Seymour, appointed Sales
to improve the sales revenue and create a high­ Manager of DKP,
performing team. he was given the
task of increasing
However, since David Seymour's appointment, the
the company's
sales team has not met its targets, and morale in the
sales revenue
department is low. The management is disappointed
by at least 20%
with the results in the UK, as they are planning to
and building
expand into Asia in the near future. In addition, the
up the sales
management needs a high-performing sales team to
team for further
successfully launch several exciting new kitchenware
expansion in Europe. He has so far failed to achieve
products early next year.
his main objective. To improve the sales team's
The sales team consists of a mix of nationalities, but performance, he now believes the team needs to be
they are not working well together. David Seymour more motivated and to be set much more challenging
is considering various actions to improve the team's sales targets. He would also like to have tighter
performance. He is well aware that if he cannot control over the team and to upgrade their training.
motivate the team to raise its performance, his own
job will be on the line.
�)» CD2.30 Listen to a sales meeting chaired by David
Before taking stronger
Seymour. He makes a proposal about training for the
action to generate more
team and asks members to comment.
sales revenue, David
Seymour made some What do you learn about the team's problems?
notes on the team. Read
about David Seymour,
David Seymour's plans
then read the notes on
the sales team on the
Read about David Seymour's plans below. Then,
opposite page. in pairs, discuss which plans you think will benefit
sales or teambuilding.

· To meet the tar9et of · Monthly >ale> fi9ure5 for each · Staff will attend webinar> (web
increa>in9 5ale5 by 20%, each member of the team will )eminar5 ) about new product>
member of the 5ale5 team will be po5ted on a board a t th e twice a m onth. There will a l 50
be expected to increa>e 5ale5 company'> head office, e.9. be much more u5e of video
by 20% in their area. 1 = to p 5ale5per>on, 7 lea5t
= conference> run by me.
>ucce55ful performer.
• CommiHion> will be b a 5ed • Staff mu>t >end in weekly
entirely on the team'> monthly • Each month, I will Choo5e repo rt> about their activitie>.
performance. There will be n o th e 1out5tandin9 5ale5per)on
individual comm iHion>- of the mo nth'. Hid Her photo · I will or9ani>e a n informal
will appear i n the company d i n n e r with each member of
• The 5ale5 repre>entative with new5letter. the 5ale5 team in the near
the bi99e>t percenta9e i ncrea5e future.
i n >ale> over a >ix-month period
will be 9iven a prize.
Area: South-East/West • • • Age: 3 6
* Area: North-East * * Age: 28
Personality: Fun-loving, extrovert, sociable; Personality: Dynamic, self-centred, a
most ambitious member of the team workaholic

• Ranking: no. 3 in terms of sales revenue • Ranking: no. 4 in terms of sales revenue
• Exceeds 60% of monthly sales targets. • Always meets monthly sales targets.
• Added five new accounts last year. • Added six new accounts last year.
• Usually late sending in sales reports. Not good • Most talented salesperson in the team.
at paperwork. • Excellent communicator with customers.
• Argues a lot in meetings. Can be very disruptive. • Team members respect her, but no one likes her.
• Thinks he could double sales if he had the West London area. • Thinks she is underpaid for her contribution to sales.
• Dislikes Max. Thinks meetings are mostly a waste of time.

MAX (Engl ish) LAURA (America n)

Area: West London * • • * • Age: 52 Area: Midlands * • * Age: 38
Personality: Serious, reserved, some say 'unfriendly' Personality: Outgoing, speaks her mind,
Notes: argumentative.
• Ranking: no. 1 in terms of sales revenue Notes:
• Added two new accounts last year. • Ranking: no. 6 in terms of sales revenue
• Very successful in keeping existing customers • Added three new accounts last year.
happy, but slow to promote new products. • Meets about 30% of her monthly sales
• Rarely meets his monthly sales targets. Excellent targets.
paperwork. • Says that in present economic conditions,
• Speaks a lot at meetings. Very influential. her area should be downgraded to one star.
• Has a close relationship with Natalya. Always supports her at meetings. • Very hard-working, sends in excellent sales reports.
• Thinks his sales targets are far too high. • Good relations with customers.
• Not a team player. Dislikes Natalya and Sonia.

NATALYA (Russian) CHANG (Chi nese)

Area: North-West/Scotland • * Age: 2 6 Area: West/Wales • Age: 45
* *

Personality: Reserved, organised, determined Personality: Likeable, cooperative, most

Notes: hard-working member of the team
• Ranking: no. 5 in terms of sales revenue Notes:
• Added four new accounts last year. • Ranking: no. 2 in terms of sales revenue
• Meets 50% of her monthly sales targets. • Very consistent salesman. Generally
• Is steadily improving her sales ability. Reliable exceeds all his monthly sales targets.
paperwork. • Added five new accounts last year.
• Has some good ideas to improve sales. but • Enjoys team meetings. Needs to improve
lacks confidence. presentations of new products.
• Always supports Max in meetings. • An excellent salesman. Very good paperwork.
• Hank thinks Natalya has the wrong personality for sales. • Can be too polite and not assertive enough in meetings.
• He has a strong Chinese accent when speaking.

You are Di rectors of DKP. Work in groups of four. Choose a

role. Director 1 leads the meeting. Watch the Case study commentary
Director 1: Turn to page 136. Director 3 : Turn to page 138. on the DVD-ROM.
Director 2 : Turn to page 1 4 2 . Director 4: Turn to page 136.

1 Read your role cards and prepare for a meeting to resolve Writing
your company's teambuilding problems. Either: As a director, write a letter to the
Chief Executive of Dl<P outlining your
2 Make a list of the problems that are affecting the
solution to the problems.
performance of the sales team.
Or: You are a sales manager. The
3 Consider David Seymour's proposals. Decide which ones,
behaviour of one of your salespeople is
if any, should be acted upon.
upsetting the other members of the team.
4 Discuss any other ideas you may have to improve the Write a l et ter warning them about
team's performance. Decide which of your suggestions their conduct and indicating what
should be put into effect. improvements they should make in
Work out an action plan for the next six months.
their behaviour.
5
� Writing file page 1 2 6
6 If there is more than one group of directors, compare
your action plans.
81
 STARTING UP B What are the advantages and disadvantages for a private individual
of borrowing money from these sources?
1 a bank 4 a member of your family
2 a friend or colleague 5 a pawnbroker
3 a loan shark 6 a credit-card company

a In what situations might someone use the sources of finance mentioned

in Exercise A?
EXAMPLE: A loal) �J.iark if you J.,ave a poor credit ratil'l9

B What do you think these sayings mean? Do you agree with them?
1 Money talks.

2 Don't put all your eggs in one basket.

3 You have to speculate to accumulate.

4 Don't throw good money after bad.

5 Lend your money and lose a friend.
6 Out of debt, out of danger.
7 He who pays the piper calls the tune.
8 Beggars can't be choosers.

llJ What would you like to raise money for, and how would you do it?
82
 UNIT 9 H RAISING FINANCE

lrJ Choose the correct word to complete each sentence.

Financial terms 1 Customers not paying on time often leads to . . . . . . . . . . . . problems.

a) cashflow b) equity c) asset

ALL STOCK 2 Our state-of-the art machinery is ou r major . . . . . . . . . . . . .
REDUCED!

fill,WI
a) possession b) asset c) equity

3 The . . . . . . . . . . . . rate on the loan was 12%.

JJ I
a) fee b) charge c) interest

I !'I � I 4 They could not pay their debts and faced . . . . . . . . . . . . .

a) bankruptcy b) warranty c) overpayment

EVERYTHING 5 Sorbat has gone into . . . . . . . . . . . . with debts of about £20 million.
MUST GO! a) indemnity b) investment c) administration

6 The finance a company raises from issuing shares rather than taking out loans
is known as . . . . . . . . . . . . capital.

a) equity b) dividend c) stock

7 The . . . . . . . . . . . . is the original amount of a loan not including any interest charged.
a) instalment b) principal c) subsidy

8 A/An . . . . . . . . . . . . is a particular type of loan for the purchase of property.

a) credit b) overdraft c) mortgage

9 If a company defaults on a loan, it means they miss a/an . . . . . . . . . . . . .

a) budget b) instalment c) collateral

10 Money lent to start-up businesses is known as risk or . . . . . . . . . . . . capital.

a) share b) venture c) working

[J Choose the correct words to complete each definition.

1 Being in the red Q means you are in credit.
2 A loan /grant is money which doesn't need to be repaid.

3 A creditor Idebtor owes money.

4 An interest /A dividend payment is part of a profit paid to shareholders.
5 Assets /Liabilities are the total amounts of money owed by a business.
6 An overdraft IA return is the amount of profit made on an investment.
7 To go into liquidation /debt is when a company stops operating because
of financial difficulties.
8 A deposit /Collateral is security for a loan in the form of assets which could
be sold if the debt is unpaid.

D Discuss these statements.

1 Leasing machinery, vehicles, etc. makes more financial sense than buying them.
2 There should be more controls on access to credit.
3 Expanding fast means going into debt.
4 Declaring bankruptcy is a useful tool for clearing debts and starting again.

See the DVD-ROM � 5 It is good practice to pay suppliers as late as possible and maximise any credit terms.
for the i-Glossary. W 6 A successful business shouldn't need to raise a lot of finance.

83
UNIT 9 -.. RAISING FINANCE

IJ �'» CD3.1 Simon Davies is Managing Director ( Restructuring) at the Blackstone

Ways to raise Group, a leading private equity firm. Listen to the first part of the interview
money and answer these questions.
1 Which three ways of raising finance does he mention?
2 What are the advantages of:

a) private markets? b) public markets? c) borrowing money?

l!I �>l) CD3.2 Listen to the second part and answer this question.
What are the disadvantages of:

a) shares/equity? b) debt? c) public markets? d) private markets?

Simon Davies
B �'» CD3.3 Listen to the final part. Simon says there are four reasons
Watch the why finance has become a short-term business. What are they?
interview on
the DVD-ROM.
In groups, discuss what you think about Warren Buffet's fund.

IJ How can start-up companies raise money?

Find ing finance

l!J Work in small groups. Before you read the article, check that you know
the meanings of these terms. Use a dictionary if necessary.
1 business angels
2 bank finance
3 equity finance
4 debt fundraising

5 venture capital funds

B Work in pairs. Take notes on the key points of the article. Tell your partner
about them and ask each other questions if you want clarification.
Student A: Read the first half of the text up to line 57.
Student B: Read the second half of the text from line 58 to the end.

liJ Read the whole article and answer these questions in pairs.
1 What was the problem with some of the 'angel' networking clubs?
2 What was the advantage of London Business Angels?
3 How did Saha im prove her ability to pitch to backers?

4 Who finally invested in Saha's company?

5 What is the problem with bank finance?
6 What is the position with debt funding and equity finance?
7 What is the problem with venture capital funds?

IJ Find idioms in the first six paragraphs that mean the following.
1 finish something you have started
2 a sudden or unexpected chance to do something that allows you to become successful
in your job
3 reduce your chances of failure or loss by trying several possibilities instead of one
4 make sure you always know what is happening in a situation
84
 UNIT 9 H RAISING FINANCE

II Complete these sentences with the idioms in Exercise E.

1 Do you think Isabella will . . . . . . . . . . . . this time?
2 There are h u ndreds of young musicians out there looking for a . . . . . . . . . . . . .
3 It's a good idea to . . . . . . . . . . . . by applying to more than one MBA programme.

4 . . . . . . . . . . . . for information about the next fund raising event.

m Discuss these questions.

1 What questions would you ask Saha if you were an investor?
2 If you were setting up a business in yo u r country, how would you raise the finance?

No more easy money

b y Jonathan Moules

Ambitious entrepreneurs are prepared to 5 percentage points above the

to go the distance to get financial Bank or England's base rate.
bac k i n g for t h e i r b r i g h t i d e a s . Two-thirds of those in the FS B
Sanchita Saha. founder of CitySocial- survey decided not Lo seek credit at
5 ising, a website to help people make 75 the moment. which could suggest

new friends after relocating, travelled they arc fearful of the cost.
all the way to southern France. The good news for start-ups is
This was not as pleasant an experi­ that the banks seem happier to lend
ence as it might seem. Once there. she to t h e m . accord i n g to S tephen
10 spent months pitching to hundreds of so Alambritis at the FSB. 'That i s a

potential investors to no avail. only to fresh approach.' he says.

get a lucky break at the end. Victoria Wcisener. Programme
First, she looked into 'angel" net­ Manager at g 2 i . is less optimistic
w o r k i n g c l u b s . w h i c h prov i de about debt rundraising. 'What you
15 entrepreneurs with access to large pitching to another couple or hundred ss hear is still the same: that people arc

numbers of w e a l t h y i n d i v id u a l s investors from across the European lending. but we arc not seeing any of
interested in investing in early-stage 45 Union. Among those were a couple that coming through: she says.
ventures. However. she turned down a of' Finnish in vestors who. together She is similarly pessimistic about
number of these for reasons of cost: with five wealthy individuals at L B A , equity finance. ' W h i le no one w i l l
20 they were charging £ 1 .500 ($2,488) agreed t o back Saha's business with a 90 say they arc not actively investing, it

just to submit a business plan. combined investment of £300.000. is st i l l pretty difficult lo raise funds,'
Eventually, she settled on London 50 Her work was not yet done. how- she says. · Most or the activity is with
Business Angels. through which she ever. as she had to bring the disparate business angels.'
could pitch to roughly 1 00 'ange l s ' . team together to form a syndicate R a i s i ng equity finance through
25 S h e a l so hedged her b e t s b y with a lead investor, who would then 9 5 venture capital funds is possible, but

securing a place o n gateway2invest­ become CitySocialising's Chairman. i t is t a k i n g about t w i c e as long

ment (g2i). a four-day programme 55 • 1t was hard work and vc1y stressful,' a s before t h e recession s t ru c k ,
to h e l p a m b i t ious entrepreneurs Saha admits. However, she is also according to S i mon Cook . Chief
hone their pitching techniques. one of the lucky ones. Executive of venture capital firm
30 d e l i v e red by f i n a n c i a l a d v i sers Access to finance remains difficult 100 DFJ Esprit. which has i n vested i n
Grant Thornton and backed by the for all sorts of companies. whether some o f Europe· most successful
London Development Agency. c�> they are looking for rich individuals technology start-ups. In the past. both
• A lot of it is about networking - to take equity stakes. debt or venture FeedBurncr, the web-feed manage­
finding out who to talk to, who can capital. ment system. and Skype, the Internet
35 help you, and keeping your ears LO Although bank finance is easier to 1ostelephony service, have received
the ground; she says. get hold or than it was a year ago, the backing from Cook's firm.
Through L B A , Saha discovered a 65 costs remain stubbornly high. 'Fundraising is taking longer and
t h i rd scheme. called the European The latest quarterly research by the is slower, but funds are being raised,'
Border Investment Programme, which Federa t i on o f S m a l l B u si nesses he says.
40 was running its own event in Nice. (FS B ) found more than three-quarters
Although it was a risk, she booked of companies had seen the cost of
herself on a flight and found herself 10 their existing finance increase by up
UNIT 9 .... RAISING FINANCE

Prepositions commonly occur after certain verbs, adjectives and nouns. Look at these
Dependent examples from the article on page 85.

prepositions verbs adjectives nouns

DFJ Esprit has invested in They are fearful of the Access to finance ...
technology start-ups. cost.
She spent months pitching She is less optimistic Saha, founder of
to hundreds of investors. about debt fundraising. CitySocialising, ...

� Grammar reference page 150

El Complete the extract from the article with suitable words and dependent
prepositions from the box. Then look back to page 85 to check your answers.
Iaccess to investing in looked into pitch to settled on turned down

First, she . . . . . . . . . . .1 'angel' networking clubs, which provide entrepreneurs with

. 2 . . . . . . . . . . . .

large numbers of wealthy individuals interested in . . . . . . . .3 early-stage ventures.

. . . .

'
However, she . . . . . . . . . . . . ' a number of these for reasons of cost: they were charging £1,500
($2,488) just to submit a business plan.

Eventually, she 5
. . . . . . . . . . . . London Business Angels, through which she could 6
. . . . . . . . . . . .

roughly 100 'angels'.

El Study the Grammar reference on page 150, then match these halves
of sentences. They are all from newspaper articles or headlines.

1 EFM, the struggling investment a) for Dubai World's debt problems.

house, yesterday became
b) to the major publishing houses?
vulnerable
c) to takeover bids.
2 The government refuses to take
responsibility d) on being paid the interest on
th e loan.
3 Deputy Prime Minister invites Japan
to invest e) to angel investors, venture firms
and other private equity investors.
4 Does Lulu.com pose a serious threat
f) in high-tech sector.
5 She is going to complain
g) of providing both financial and
6 The banks insisted
strategic direction.
7 Our programme offers access
h) about her solicitor.
8 The new Director of Finance must
i) of their responsibilities.
be capable
j) for money from an early age.
9 Teenagers need to develop a
healthy respect
10 All financial supervisors should be
fully aware

Which of these negotiating tips do you agree with? Why? I Why not?
1 In the early stages, you need to ask the other side a lot of questions.
2 Always interrupt if you don't understand something.
3 Never make a concession for free. Always get something in return.
4 Use simple, direct language and be open about your aims.
5 Signal what you are going to do. For example, say, 'I'd just like to clarify that.'
6 Summarise often so that everyone is clear when you reach agreement.
7 Adapt your language so that you don't appear aggressive.
8 Talk about your emotions and how you are feeling.
86
 UNIT 9 H RAISING FINANCE

l!I Research shows that skilled negotiators often use the techniques listed
below to achieve their negotiating objective. Match the techniques (1-5)
to their definitions (a-e).
1 Open questions a) say what you are going to do before you do it.

2 Closed questions b) modify language so that it does not appear too

aggressive.
3 Softening phrases
c) go over the points covered to highlight when
4 Signalling phrases
agreement is reached.
5 Summarising
d) gather information and explore the opposite
n u m ber's views.
e) check understanding and ask for precise information.

D �l)) CD3.4 Listen to five expressions and match each one to the correct
technique in Exercise B.

m �>)) CD3.5 Listen to the dialogue and complete these expressions. Then place
each expression under the correct heading in the Useful language box below.
1 Could I ask you, what other people are . . . . . . . . . . . . . . . . . . . . . . . . for you?
2 Have you . . . . . . . . . . . . any other bank, if I may ask?

3 I'd like to make a . . . . . . . . . . . . . Why don't you revise your business plan?
4 Good. Could I ask what sort of . . . . . . . . . . . . . . . . . . . . . . . . you have in mind?

5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . what the money's for. The 2 5 0,000 would be for

working capital .. .
6 We seem to be getting somewhere now. Let me . . . . . . . . . . . . . . . . . . . . . . . . what we've
agreed so far ...

II Work in pairs. Role-play this situation.

The manufacturer of a range of high-quality herbal tea products, sold under the brand
name Quality Leaf, meets a business angel to get additional investment to develop its
business. The business owner has already borrowed €100,000 from a family member,
and in return has given that person a 5% stake in the business.
Student A: Turn to page 137.
Student B: Turn to page 139.

USEFUL LANGUAGE

OPEN QUESTIONS CLOSED QUESTIONS SOFTEN I NG PHRASES

Why do you need a loan? Do you have any other backers? I'm sorry, we can't go that high.
What other sources o f finance do Can you transfer the money by n ext We were hoping to pay a little less.
you have? week? That seems very expensive
What did you have in mind? Could you improve your credit terms?

SIGNALLING PHRASES SUMMARISING

I'd like to make a proposal. I think Let's see what we've got so far.
we should ... Let's recap before we go on to ...
Could I make a suggestion: why So, to sum up, ...
don't we ... ?
Let's look at this another way.

87
Executive s u m m a ry
This proposal is for a feature film shot on digital video. Its running time will be 1 1 0 mi nutes. There will be a
four-month shooting schedule and six weeks of editing. The budget for the film is 1 .2 million euros. A total of
200,000 euros has already been raised from family and friends.

All for one is the story of three women in Paris. They are in their late twenties and of different nationalities.
They become great friends, go out together, talk about their experiences and get advice from each other. The
film focuses on their difficulties adapting to French culture and on their complex relationships with the men
i n their lives. There will be a bitter-sweet ending to the film, but the final scene will highlight the strength of
their friendship, which helps them to overcome their problems.
Target audience Reasons why All for one will appeal to
20-40-year-olds. Frequent film-goers who • Pre-productio n : one month aud iences
enjoy sophisticated films, witty dialogue and • Production: four months • Outstanding script (Gunnar Larsson)
the complexities of human relationships. • Post-production: six weeks and brilliant d i rector (Charles Williams)
Older people should also enjoy the film. • Release of the film All for one i n Europe: • Fascinating storyline
i n nine months' time • Original film score by Gunnar Larsson
Target market • Cross-cultural appeal of the m a i n
Initially European countries, but eventually Three-year income projection summary characters and situations
worldwide distribution (gross revenues) • Dramatic tension
• Low: 1 5 m i l l i o n euros • High-quality photography
Promotion • Medium: 20 million euros • Paris location
The film will be shown at European film • H i g h : 40-60 million eu ros*
festivals (Cannes, Berlin) and also at the • Depends on US distribution
prestigious Sundance Festival in the US. There
will be other marketing initiatives at the
launch and during the distribution of the film.

Work in two groups. The filmmakers are going to 3 �l)) CD3.6 At the end of the meeting, Charles's
negotiate with the distributors. father phones from the United States. He has some
interesting news for the filmmakers and Concordia.
Group A (the two filmmakers):
His call is heard by both sides in Concordia's office.
Turn to page 137.
Decide whether you want to revise the terms of
Group B (Directors of Concordia):
your draft agreement in the light of the news you've
Turn to page 144.
just heard.
Read your role cards and prepare for the
negotiation.
Hold a meeting and negotiate a draft agreement.
 3 Managing in ternational teams
0 Discuss these questions. (i) �.>» CD3.7, 3.8, 3.9 Listen to all three parts
1 Think about a team you have been a member of a radio programme and answer these
of. Was it successful? Why? I Why not? questions.
2 What do you understand by an 'international' 1 Which of the topics in Exercise C do the experts
team? talk about?
3 Have you ever been a member of an 2 Which do they think is the most interesting?
international team, or do you know of one?
If so, how well did the team work together? 0 �)» CD3.7 Listen to the first part again and
answer these questions.
0 Which of these descriptions of the role of
1 What types of international team are
a team leader do you most agree with?
identified?
Explain your ideas.
2 What expectations of a team leader are
The team leader is someone who: discussed?
1 has a charismatic personality. They are not only 3 Why is praising an individual team member
able to do their job well, but can get other team not always a good idea?
members to follow them. Their skills enable
them to get the best from the rest of the team.
0 �l)) CD3.8 Listen to the second part again
2 is an older person and is therefore greatly and take notes to answer this question.
respected. Their role is to collect information
from the other team members and from How are attitudes to sharing knowledge
outside, to consider options and then to different for:
make decisions. a) individual cultures?
3 is simply the boss. They will provide clear b) collective cultures?
instructions and directions for team members. c) mutual debt cultures?
They are there to make decisions, which could
be right or wrong but which they must make. 0 �)» CD3.9 Listen to the final part
It's what they are paid for. again and answer these questions.
4 is the most competent person, but no more 1 In what ways can meetings
important than the others. They will make cause problems?
proposals, which the other team members are
2 What social factors are
expected to analyse and question. This wilt
mentioned?
help the decision-making process.
3 Why is a handshake

8 Ideas about the role of a team leader vary

important?

from culture to culture. What other cultural What is the most

differences do you think international interesting or
teams may have? Think about these points. surprising piece
• methods of communication
of information
for you?
• motivation and rewards
• ways of problem-solving
• sharing knowledge
• the role or use of humour
• the purpose/role of meetings
• job titles I position
• social behaviour
 WORKING ACROSS CULTURES .... MANAGING INTERNATIONAL TEAMS

You work for a leading mobile phone company based in Amsterdam in the Netherlands.
The working language of the company is English. You are managers in charge of setting up an
international team of 12 people who are based all over the world. The team will be working on
a major project lasting three years, building and testing a new network for the company's next
generation of products. I n the past, there have been both cultural and teamworking problems
in project teams set up by the company. A meeting has been called with fellow managers to
agree the way the team will work.
Work in groups of four. Turn to the correct page and study your role card. Look at the agenda
below and prepare for the meeting.
Manager A: Turn to page 139. Manager C: Turn to page 143.
Manager B : Turn to page 1 3 7 . Manager D : Turn t o page 1 3 5 .

Hold the meeting. Discuss the items on the agenda below and come u p with recommendations.
Write a list of tips for managing or working in international teams.

AGENDA
The team leader and his/her role

2 The role of meetings

3 Communication between team

members

4 Rewards and bonuses

5 Cultural training programmes

6 AOB

I -4
 STARTING U P El Which of the following irritate you the most when dealing with customer
service departments? Choose the top three and compare with a partner.

on the phone face to face repairs and refunds

• Being put on hold • Unhelpful customer • Delays on repairs
service personnel
• Speaking to a • Delays in getting
disinterested person • Stressed or indifferent money back
staff
• Choosing a series of • No replacement
options during your call • Salespeople with poor equipment while repairs
product knowledge are carried out
• Finding the customer
service number is • Too few staff at • Poor-quality repairs
continuously engaged peak times • Disputes over credit
• Being cut off • No company policy on notes, 'proof of purchase',
customer service or etc.
complaints

El Discuss these questions.

1 How important to a company's success is customer care?
2 Is it possible to have too much customer care?
3 In what situations can too much customer service become a problem? Have you ever
experienced this?
96
 UNIT 10 •• CUSTOMER SERVICE

Complete the beginnings of the sentences (1-7) with words from the box.
Then complete each sentence with an ending (a-g).
I compensation complaints guarantee payment rapport refunds standards

1 When you handle . . . . . . . . . . . . , it is a) only way to meet customer

important expectations.

2 You can establish a . . . . . . . . . . . . b) will lose customers.

with a customer if
c) you know about their buying habits.
3 A money-back . . . . . . . . . . . . if not
d) to be diplomatic.
completely satisfied is often
e) to retain customer loyalty.
4 Companies which do not meet their
. . . . . . . . . . . . of service f) of high-quality customer service .

5 Giving . . . . . . . . . . . . promptly and without g) a minimum expectation these days.

fuss to dissatisfied customers is one
indicator
6 When a company is at fault, a one-off
goodwill . . . . . . . . . . . . is a useful way
7 Financial . . . . . . . . . . . . for poor customer
service is not the

ll Match the idiomatic expressions (1-7) to their meanings (a-g).

1 pass the buck a) forget to do something
2 get to the bottom of the problem b) paid far too much for something

3 the last straw c) avoid responsibility

4 slip my mind d) find the real cause of something

5 ripped off e) the last in a series of irritating events

6 talk at cross purposes f) try harder in order to achieve something

7 go the extra mile g) misunderstand what someone else is

referring to

D Use the expressions from Exercise B in the correct form to complete these
sentences appropriately.
1 The helpline person was very good and spent time with me. She started at the
beginning in order to . . . . . . . . . . . . and find a solution.
2 He's the person responsible. He shouldn't try to . . . . . . . . . . . . and blame others for
his mistakes.
3 Several customers have complained about our service contract. They say they're
paying far too much and feel they have been . . . . . . . . . . . . .

4 I meant to send him a brochure, but we were very busy. I got distracted and it . . . . . . . . . . . . .

5 They wanted to place a larger order. I thought they wanted a bigger discount.
We were . . . . . . . . . . . . .
6 They ignored my complaints, but what made me really angry was when they refused
to refund my money. Really, it was . . . . . . . . . . . . .
7 She was extremely helpful and was prepared to . . . . . . . . . . . . to solve the problem,
so I'll definitely use the company again.

m Work in two groups. Choose the five best suggestions from your group's
advice sheet. Then form new groups. N egotiate a single list of the six best
See the DVD-ROM � suggestions from both sheets.
for the i-G/ossary. V Group A: Turn to page 144. Group B: Turn to page 138.

97
UNIT 10 H CUSTOMER SERVICE

El You are going to hear an interview with Philip Newman-Hall, Director

Customer and General Manager of Raymond Blanc's restaurant Le Manoir aux
service Quat'Saisons in Oxfordshire, England. In groups, discuss the best and
worst customer service you have had in a restaurant.

e �>» CD3.10 Listen to the first part of the interview. Would you like to go to
Le Manoir? Why? I Why not?

II �>l) CD3.11 Listen to the second part and complete these extracts.
I would say that we try to exceed . . . . . . . . . . . . . . . . . . . . . 1, [ ] we have to have . . . . . . . . . . . .2 with
. . . •••

the . . . . . . . . . . 3 and we have to try and judge each client . . . . . . . . . . . .4, so that we sense what
. .

Philip Newman-Hall they are . . . . . . . . . . . .s for and try and . . . . . . . . . . . .6 that service all the time.

We also must provide . . . . . . . . . . . . .. . . . . . . . . . .7 of service .

... 'the standards you set are the . . . . . . . . . . . .8 you . . . . . . . . . . . .9'.

m �l)) CD3.12 Listen to the third part and answer these questions.
1 What do all the staff at Le Manoir do, and why is this useful when dealing with
demanding customers?
2 What does Philip say about expectations?

W D
Watch the interview
an the DVD-ROM.
A �))) CD3.13 Listen to the final part. How are customers changing, what are
they doing, and how can this be useful?

READING El Read the article on the opposite page quickly and say if the writer agrees
Changing with these statements. Ignore the words in bold for the moment.
customer 1 Customer service is very important.
Service 2 Good customer service means always being able to speak to a person.

0 Read the article again and answer these questions.

1 How has customer service changed?
2 What did some customers not like at first?
3 What can companies do with customer data?
4 Why do a lot of customers have bad experiences?

II Sum marise paragraph 5 in one sentence. Then compare your summary with
a partner. Finally, discuss whether you agree with the position taken by the
author of the article.

llJ Find idioms in the first and last paragraphs that mean the following.
1 to say that you support or agree with something without doing anything to prove it
2 while physically close to someone

3 information you get by someone telling you

D Complete these sentences using the idioms in Exercise D.

1 I'd rather explain . . . . . . . . . . . . , not on the phone.
2 . . . . . . . . . . . . is one of the best ways of getting business.

3 Some companies don't really care about career development, they just . . . . . . . . . . . . to it.
98
 UNIT 10 � � CUSTOMER SERVICE

Customer service is changing

the world: Up close and global
by Mike Betzer, President of Relationship Technology Management at Convergys

Customer service has changed. Thirty

years ago. for example, service was
personal and familiar and when issues
arose, they were typically handled
s face to face with a local manager.
Now. global corporations have
m i l l ions o f customers. B y using
customer service experts and the
latest technology, these companies
10 were able to focus on dealing with

their bread-and-buner business. The

thinking was that by refocusing in
this way, productivity and innovation
would increase, enabling organisa-
1 5 lions LO bring new products to market

more quickly.
This approach generated its share This is where the customer insight, 85 best use of these insights. Companies
of bad press. It took many customers mentioned above, coupled with the seem h a p p y to rely on c a n n e d ,
a long time to get used to speaking means to deploy this with the front scripted responses, poorly trained
20 Lo customer scrv ice representatives line, comes in. agents and clunky systems to deliver
based i 11 other parts of the world or 55 Companies need to collate and customer services. It's therefore no
mechanical systems that didn't offer a n a l yse the h u ge a m o u n t s of 90 surprise that so many people have

the right choices. customer data they store. creating a horror stories. While 30 years ago,
A new approach was called for. central repository that can b u i l d word may never have leaked out
25 Businesses needed Lo adapt locally profiles o f customers. Using insights about a poor customer service inci­
in order 1 0 c a p i t a l ise g l o b a l l y . 60 i n t o t h e i r l o c a t i o n , p re v i o u s dent, now it can be found as easily as
They needed 10 take t h e traditional, purchases, personal data and other 95 searching on Google.

personal approach and apply i t to i n formation, customer management What companies need to remember
t h e i r c u s t o m e r s e r v i c e strategy systems can react as soon as a cus­ is that maintaining, or perhaps even
3 0 across the world. They needed to get tomer contacts the business. A bank acquiring, an outsourced customer
personal while operating on a global 65 customer rings an automated number service i n frastructure could be the
scale. For e x a m p l e , confectioner and is prompted to enter an account 1 oo d i fference between maintaining a
Thornton's l istened to customer number. Triggered by the u n i q u e cadre of loyal customers during the
feedback and developed a more n u m b e r , the technology ' k nows· downturn and being first off the line
35 personal service, using a new g i ft what services the caller already has, when the race restarts, and being left
service 10 drive sales of i t s h i g h ­ 10 what issues they may have inquired behind. Outsourcing like this is not
end products. about in the past, and then builds a 10s an indulgence; i t is a crucial part

Companies need to use a l l their profile of the customer and offers of business.
resources effectively. The famil iarity choices or remedies to s u i t their If companies pay l i p service to
40 of technology today means custom­ individual needs. Behind all Lhis waits customers, whether consumer or
ers no longer recoil from voice and 15 an agent, monitoring several cal l s . business, they run the risk of missing
touch automated services, as long as Should a customer become irate o r 1 10 out on valuable profits; those that

t h e y meet t h e i r req u i r e m e n t s , frustrated, the agent· can intercede and value their customers and view them
whether they are requesting account provide a valuable human contact, not only a source of revenue but also
45 statements or need to replace a knowing exactly what the customer is a means to improve as a business can
broken phone. The response also so trying to achieve. reap the rewards. They can secure
has to be perso n a l . This means Using analytics can be the d i ffer­ 1 1 5 continuous business as well as posi­

pre-empting the customer's needs ence between a p o s i t i v e a n d a tive word of mouth by keeping things
and acting intuitively to m i n i mise negative experience for the customer. personal when working globally.
50 the time they spend on t h e phone. Yet businesses often don't make the

D Which changes in customer service mentioned in the article have you

noticed, and in which ind ustries?
99
UNIT 10 .. .. CUSTOMER SERVICE

• A gerund is formed from a verb but can behave like a noun.

- I t can be the subject of a sentence or clause.
Satisfying the customer is the aim of every business.
- It can be the object of a sentence o r clause.
I hate listening to computerised voicemail mazes.
- It often follows a preposition.
They became successful by listening to their customers.
A useful way to use gerunds is in lists. (See page 96, Exercise A, 'on the phone'.)
• Gerunds are formed by adding -ing to the base form of the verb:
launch - launching; involve - involving; get - getting
• Begin, start, continue and intend can be followed by the gerund o r to with little or no
difference in meaning.
• Some verbs can be followed by either a gerund or an infinitive, but the choice can
lead to a change in meaning.
-She remembered to update the customer database. (She didn't forget.)
- She remembered updating the customer database. (She has a clear memory of this.)
� Grammar reference page 1 50

rJ The article on page 99 has many examples of the gerund (shown in bold).
Find:
1 two examples as the subject of a sentence
2 one example as the object of a sentence or clause
3 three examples following a preposition.

a Match these sentences (1-6) to their meanings (a-f) .

1 I regret telling you ... a) I am sorry about the bad news I am about
to tell you.
2 I regret to tell you ...
b) I told you and I wish I hadn't.
3 We stopped producing the Alpha
model. c) We stopped the production of something
else in order to produce the Alpha model.
4 We stopped to produce the Alpha
model d) We stopped the production of the Alpha
model.
5 I tried speaking to Customer
Services. e) I couldn't get through to anyone there.
6 I tried to speak to Customer f) It didn't resolve the problem.
Services.

II Complete these guidelines for improving customer service with suitable

gerunds. Add some tips of your own.

I mproving customer service

Recommended ways of improving customer service include:
1 r�.t� rnir19. calls promptly.
2 .. . . .
. . . . . . . . . . research to find out what customers need.
3 . . . . . . . . .
. . . . . . staff training programmes in customer care.
4 . . ... . . . .
. . . . . . quickly with complaints.
5 ... . . . . .
. . . . . . . the customer is happy with the outcome.
6 · · · · · · · · · · · · · · · from complaints.
7 .. . . ..... . .
. . . . a rapport with customers.
8 · · · · · · · · · · · · · · · about customers' buying habits.
9 . .. . . . .
. . . . . . . . refunds promptly to dissatisfied customers.
10 .. .. . . .
. . . . . . . . customers who are worried.
100
 U N IT 10 .... CUSTOMER SERVICE

El How do you know if someone is not listening to you? How does it make
you feel?

13 Which of the following do you do to show people that you are listening
to them? Can you add any other suggestions?
• Look people directly in the eye at all times.
• Nod your head often to show interest.
• Repeat what the speaker has said in your own words.
• Be aware of the speaker's body language.
• Interrupt the speaker often to show you are listening.
• Think about what you are going to say while the speaker is talking.
• Use body language to show you are attentive.
• Try to predict what the speaker is going to say next.
• Ask questions if you do not understand.
• Say nothing until you are absolutely sure that the speaker has finished.

II �>l) CD3.14, 3.15, 3.16 Listen to three conversations in which people are talking
about customer service and make notes under these headings.
a) The product or service involved

b) Reasons why the customer thought the service was good or bad

EJ �>l) CD3.14, 3.15, 3.16 Listen again. Tick the words and phrases in the Useful
language box below that you hear. Then add other words and phrases of
your own.

IJ Work in pairs. Describe the best thing that you have ever bought and say
whether you were influenced by the service you received. When your partner
is speaking, make an effort to listen actively. Use some of the language from
the Useful language box.

U S E F U L LANGUAGE

SHOWING INTEREST ASKING FOR DETAILS SUMMARISING

How can I help? So what happened? (So) you think ...
Really? What did you do next? (So) you're saying ...
That's interesting. How did you deal with it? (So) what you're really concerned/
Right/OK/Mmm/Yes/No What did you like especially about ... ? unhappy about is ...
Mmm, let's hear the full story ... What else impressed you?
OK, go on ... REPETITION / QUESTION TAGS
CLARIFYING A: We've reduced customer complaints
by 30%.
SHOWING EMPATHY Yes, that's right.
B: 30%? I Have you?
I know what you mean. Are you saying ... ?
How awful! What (exactly) do you mean by ... ? A: Our department gets at least 20
I'm not surprised you're upset. Could you be more specific, please? complaints a week.
I really understand how you feel. Have I got this right? B: Wow! Twenty complaints a week?

A: We believe the customer's always

right.
B: Always right? Do you really believe
that?

101
 H U R RAH

Background
You are members of the Customer Services Department of Hu rrah Airlines, a budget airline
company based at J FI< Airport, New York. Hu rrah Airlines offers low ticket prices for flights to
Europe and limited services. It makes up for the low ticket prices by charging for extras like
food, priority boarding, seat allocation, excess baggage, etc. You often receive correspondence,
telephone calls and voicemail messages from customers who are unhappy with your service.
Callers seem to forget that you are a budget airline, so you must keep operating costs low in
order to provide passengers with cheap tickets. However, you have to deal diplomatically and
effectively with these dissatisfied customers and to come up with solutions to their problems.

Customer ServiceSDepartment
you is the Customer Service Manager
From: Martha Gomez
and the other is the Assistant Customer
Service Manager. Read the written Subject: !Complaint
correspondence on the right and on I'm writing to you because I can't get through
the opposite page. Then listen to to your helpline. I've been trying all week, but I
the telephone conversation and the get put on hold and then no one answers me.
recorded message, and make notes on My problem is, I flew from New York to London
the key points made by each customer. last week on your airline, but when I got to the
airport, I couldn't find my suitcase at baggage
Because you are so busy, decide which reclaim. I told someone at your desk. They
complaints you will handle now as a promised to investigate and call me. Since then,
priority, and which you will leave until nothing. I'm Brazilian, a single woman and on
later. my own in London. I must get my suitcase back.
It's got some expensive clothes, some important
Discuss how you are going to deal with
documents and some jewellery. I've no insurance
the complaints that you have prioritised.
for the items. And I don't think I've got any bills for
As one group, discuss how you could the things I brought.
improve the service you offer to your Please help me.
customers.
 ..
4) To : I Customer Services Department
From: I Jacques Duperrier
Subject: I September 3
I'm a disabled man. At the airport, your company
charged me $30 for the hire of a wheelchair to get
me on the airplane to Paris. I cannot believe that
a company with annual profits of over $300 million
refuses to provide disabled people with wheelchairs
free of charge. I'm not going to put up with this. I've
contacted the Disability Rights Commission, who are
!customer Services Department willing to take this to court on my behalf. I 've also
From: !Robert MacKenzie talked to a national newspaper, which is interested in

Subject: j27 June publishing an article about what's happened to me.

Does your airline really want to be involved in a court
I'm writing to complain about the poor customer service case and to receive unfavourable publicity?
you've given me and my family. I called your airline
to change our flights to Indonesia - there was an
emergency there and I was advised to delay my visit.
I e-mailed you several times and called your service I've flown with your airline several times and have never
desk, but got no answers. In the end, I had to go to had any problems. You have to pay for your food and extras,
the airport to change the flights - the journey cost me but I expect that. You get what you pay for in this world.
$40. I booked new flights for two months' time, and
However, l didn't expect what happened to me last Sunday.
was amazed when you made me pay a $300 penalty I got to the airport. went through departures and checked the
for the new booking. You said the new booking had to departure board for the flight to Philadelphia. Delayed! One
be within 1 4 days of the earlier booking. I'm disgusted hour later, delayed ! Then the flight was cancelled. r stood in
with the way you've treated me and my family. What
line with a lot of other unhappy passengers for about three
are you going to do about it? hours at your desk. When my turn came, you refused to put
me on a later flight. The earliest flight you offered me was
7.30 p.m. on Wednesday. That was too late for me. T tore up
the ticket and went home.
FAX TRANSMISSION 1 've heard nothing from your company about a refund.
I should point out that the taxi to the airport cost $38, the hotel
Is this what you call customer service? I pre-booked
room near the airport was $ 1 00 and the ticket $220 return.
seats 328 and 32C for me and my ten-year-old daughter.
I wanted an aisle seat because I ' m pregnant and you I look forward to hearing your comments with interest.
often get a little more room in an aisle seat. When we got Yours sincerely,
on board, someone was already sitting in the aisle seat Kirk Danson
and the seat next to it. I had to sit in a window seat, even
though I complained to the stewardess. My daughter
was put in a seat far away from me. Watch the Case study
My seat had no cushion, just the bare seat base. commentary on the DVD-ROM.
The stewardess wouldn't let me look for another seat.
The flight was turbulent, it was a nightmare for me. Writing
On my arrival in Warsaw, I contacted your desk.
Write a short report for the Director of Customer
Your representative wasn't interested i n my story ­
'What do you expect, we're a budget airline,' she
Services summarising the problems that customers
said to me. have experienced and make recommendations for
improving the service to customers.
Krystyna Kaminski
Cl Writing file page 1 3 1
103
 START I N G UP El Work in groups. Think of a crisis you have I your country has experienced.
Say what happened and how it was handled.

I] Crisis-management experts have identified 10 key steps for companies

in a crisis. Complete steps 5-10 below using the verbs in the box.
Ianalyse disclose inform practise predict set up I
1 Work out an action plan to ensure 5 Try to . . . . . . . . . . . . what crises could occur.
the crisis does not happen again.
6 . . . . . . . . . . . . a crisis-management team.
2 Role-play a potential crisis.
7 . . . . . . . . . . . the di rectors.
.

3 Find out what happened and how

8 . . . . . . . . . . . . as much information as you can.
it happened.
9 . . . . . . . the actions you took to deal
. . . . .

4 Write down and circulate your

with the situation.
crisis-management programme.
10 . . . . . . . . . . . making decisions under stress.
.

II Complete this table with the steps in Exercise B. Discuss your answers.

before the crisis during the crisis after the crisis

l!J Answer these q uestions.

1 What sort of crises do business managers have to face?
2 How is a business crisis different from a business problem?
3 Can you think of any examples of recent business crises? Which do you think
have been the worst in recent years?
104
 UNIT 1 1 H CRISIS MANAGEMENT

fJ Match words from Box A with words from Box B to make word partnerships,
Handling crises adding of if necessary.
EXAMPLES: action plan, admi>>ion of liability
A
i'lttffift aclmission contingency damage
flow legal loss press press speed

B
action conference confidence information �
limitation pltttt plan release response

I] Complete these sentences with the word partnerships from Exercise A.

1 How quickly management react to a crisis is known as the . . . . . . . . . . . . .
2 In a breaking crisis, a manager may speak to the media at a(n) . . . . . . . . . . . . .

3 Alternatively, there may be a written statement, which is given to the media in the
form of a (n) . . . . . . . . . . . . .
4 During the crisis, management may choose to keep customers, employees and
shareholders up to date with a regular . . . . . . . . . . . . .

5 A(n) . . . . . . . . . . . . is part of a crisis strategy prepared in advance.

6 A backup strategy is a(n) . . . . . . . . . . . . .
7 The risk of being taken to court is the threat of . . . . . . . . . . . . .
8 An acceptance of responsibility in a crisis is a(n) . . . . . . . . . . . . .

9 Following a crisis, a company may suffer a decline in loyalty from its customers,
or a (n) . . . . . . . . . . . . in its product or service.
10 Minimising the negative effects of a crisis is known as . . . . . . . . . . . . .

B Match an expression from Exercises A and B with each of these verbs.

Three of the expressions are not used.
1 implement an action plan 5 suffer
2 issue 6 prepare

3 take 7 control

4 hold

liJ Answer this question, then discuss your ideas in small groups. Can you
give any examples?
Which of the word partnerships in Exercise C do you think are:
a) essential in a crisis?

See the DVD-ROM � b) important to avoid?

for the i-Glossary. W c) useful but not essential?

fJ In groups, tell each other three things you know and three things you
would like to know about the Toyota crisis of 2009 /2010.
Dealing with
crises
I] �ll) CD3.19 Listen to Craig Smith, Professor of Ethics and Social Responsibility
at I N S EAD in Paris. Does he make any of your points or answer any of your
q uestions from Exercise A?

105
UNIT 11 .. CRISIS MANAGEMENT

[I �l» CD3.19 Listen again and complete these extracts using no more than three
words in each gap.
... it's a problem that the company frankly has been very . . . . . . . . . . . . 1 and very . . . . . . . . . . . .2 to.

... it was only September 2009 that the company really truly acknowledged there was a
. . . . . . . . . . . .3
and said 'we're gonna have a • ' . . . . . . . . . . . . .

... its communication around the causes of the problem has been . . . .. . . . . . . . s. and
Craig Smith consumers have been left . . . . . . . . . 6 and ..
. .. .

The classic advice here is 7 and 8• And the thing to do is to

. . . . . . . . . . . . 9
. . . . . . . . . . . . . . . . . . . . . . . .

and let people know that you acknowledge that there is a problem, and know that you're
. .
. . .
. . 10 about it.
. . . . .

m �l» CD3.20 Listen to the second part of the interview and answer these questions.
1 What is the three-part model?

2 What are the three critical activities or questions for part one?

IJ �l)) CD3.21 Listen to the third part. What three things need to be done d u ring
a crisis?
Watch the
interview on
the DVD-ROM.
D �ll) CD3.22 Listen to the final part. What questions does he ask with regard to:
1 the recovery? 2 the auditing of the management of the crisis? 3 rebuilding?

IJ In groups, brainstorm the crises that these companies could have.

Dealing with a) a pushchair (buggy) company b) a mobile phone company
crises

Student A: Read Article A on the opposite page.

2 How not to take care Student B: Read Article B on the opposite page.
of a brand

B Read your articles again and take notes on these questions.

3 No way back from 1 What crises happened?
a crisis
2 How did the companies mentioned deal with their crises (if this is mentioned)?
3 What lessons can be learned?

llJ Using your notes, tell your partner about the content of your article.

IJ In pairs, make as many word partnerships as you can by matching the verbs
(1-7) to the nouns (a-g). More than one combination may be possible.
1 handle a) a warning
2 issue b) a problem
3 face c) a crisis
4 announce d) an investigation
5 cope with e) a recall
6 deal with f) the public
7 reassure g) an issue

D Discuss other companies you know who have handled crises well/badly.
106
 UNIT 11 •• CRISIS MANAGEMENT

by John Gapper

I nstead of a formal product recall , higher than cheaper rivals. But i t has
it was simply issuing warnings to done a poor job of telling it.
owners not to let children stick their Therein lie lessons for companies
fingers in the folding mechanism as that face s i m i l a r crises, of which
20 they opened the pushchairs. Repair 45 there are a lot. Nokia has announced
kits to cover the hinges would not be a recall of 1 4 million phone batteries,
automatica l l y d i s patched to every w h i l e Toyota is s t i l l coping with a
Maclaren owner, as i n the US. recall of 3.8 m i l l ion cars with floor
Outrage ensued, with messages on mats t h a t can make the v e h i c l e s
25 Twitter such as 'WHAT?! Amputations 50 accelerate uncontrollably and crash.
Macl aren is a small private company from a stroller? ! ' By the time Farzad Lesson one: be ready. When the
with a big public problem, one that it R a s tegar, C h i e f E x e c u t i v e of announcement of the recall leaked
has not handled well. Maclaren i n the U S and the brand's early, Macl aren was left floundering.
On Monday, Maclaren announced contro l l i n g shareholder, had lunch Lesson two: empathise. Maclaren is
s that it was issuing repai r kits for up 30 with me in New York on Tuesday, he ss the latest of many companies to fall
to I m i l l ion pushchairs it had sold sounded shaken. i n t o the trap of b e i n g i n w a r d l y
in the U S over the past decade 'Did I expect this kind of coverage? focused a n d fa i l ing t o realise how
after 1 2 cases in which c h i l d re n · s No, I did not,' he said. It was hard to customers will react. Lesson three: be
fingertips were chopped off i n the grasp why. The words ' c h i l d ' and polite. Lesson four: don't discrimi-
10 pushchairs' hinges. By that after­ 35 'amputation' in a media release from 60 nate. Maclaren's biggest mistake was
noon, its website had frozen and its the US safety regulator would surely to appear to be treating American
phone l i nes were overwhelmed by terrify anyone. children's fingertips as more precious
parents. Mean w h i l e , the B ri t i s h After talking to h i m , I concluded than those of chi ldren in the UK and
company told non-Americans they that Maclaren does not have a bad other countries.
15 would be treated d i fferently. 40 story to tell - its safety standards are

by Morgen Witzel

Crises are an inevitable part of man­ 2s announce an i n vestigation into the h e a l t h y companies w i l l s u r v i v e ,
agement, and the larger the business accident and reassure the travel l i n g so although a t a cost t o themselves. Weak
grows, the bigger the crises seem to p u b l i c t h a t it w a s s t i l l safe t o fly companies w i l l be carried off by the
become. However robust a business A i r France. The following clay the disease and w i l l die. I n Mr Grove's
s seems, it is s t i l l fa l l i b l e . A r t h u r airline·s share price did decline, but view, the key to successful crisis man­
Andersen, the accountancy firm, and 30 not by much and not for very long. agement is preparedness. Forward
Marconi, the telecoms equipment Intel, the world's leading maker of 55 thinking and planning are essential;
maker, are two once-great busi nesses semiconductors, suffered a huge and understanding the nature of the crisis
that have d isappeared in recent years. u n foreseen crisis when it emerged that might occur can help managers be
10 Not every crisis can be foreseen. that a small proportion of its Pentium better prepared, as the A i r France
Sometimes managers will know that 35 microprocessors were faulty. Quickly example shows.
a threat e x i s t s , but w i l l not know assessing the options, the company 60 However. while forward planning
when or where i t will materialise. took the brave step of reca l l i ng and i s necessary for crisis management, it
The chances of an airliner crashing, replacing the entire production run of is not sufficient. Not every crisis can
15 for example, are extremely s m a l l , the series. The move cost more than be foreseen or planned for. Good
b u t every airline must s t i l l l i v e with 40 $ I bn (£550111) and probably saved crisis management requires the abil-
the possibility. the company. Intel showed that it was 65 ity to react to events s w i ftly and
When an A i r France Concorde committed to its product, whatever positively, whether or not they have
crashed on take-off from Paris - the the short-term cost, and customers been foreseen.
20 first accident involving a Concorde responded positively.
- A i r France was prepared to deal 45 Looking back on the incident, Andy
with the issue. Grove, Intel's Chairman and then
Managers moved quickly to wi th­ Chier Executive , compared managing
draw Concorde from service, in a severe crisis to an i l l ness. Strong,
UNIT 1 1 .... CRISIS MANAGEMENT

There are many different types of conditional sentence.

Conditionals • 'Zero' conditional
Ifyou operate the pushchair properly, your child is not at risk.
• First conditional
If we act quickly, we'll limit the damage.
• Second conditional
If we recalled the cars, we'd protect our reputation.
• Third conditional
If Maclaren had withdrawn its pushchairs immediately, there wouldn't
have been a crisis.

C) Grammar reference page 151

ill Match the sentences below (1-12) to these headings (a-f).

a) promise c) invitation/request e) speculating about the future

b) bargaining d) reflecting on the past f) advice/warning/threat

1 It wouldn't have been a problem if they'd told the truth immediately.

2 If I were you, I'd give media interviews as soon as possible.
3 We'll tell the truth if you print the entire statement.
4 We'll be able to limit the damage if we pay up now.
5 If you'd fixed the fault, we'd have placed an order.
6 Your money back if not 100% satisfied.
7 If we recall the products, it will be expensive.
8 If you would like a refund, call Customer Services on 020 7711 3420.
9 If you order by the end of the year, we can give you a discount.
10 I wouldn't ignore the media if I were you.

11 If we'd tested the product properly, we'd have known about this problem.
12 I would be grateful if you would print our apology as soon as possible.

l!J Decide whether each of these situations is a) likely or b) unlikely to happen

to you. Then tell your partner what you will or would do.
1 You get a pay rise next year. 4 You travel abroad next year.
2 You win a lot of money. 5 You have to give a presentation in English.
3 Your computer gets a virus. 6 Your company is taken over by a competitor.

• be prepared II Discuss what went wrong in this situation. Use the notes from the crisis
• issue an apology management advice sheet on the left.
immediately
EXAMPLE: If tl-iey� iHved a" apolo9y immediately1 tl-i ey Wovld 1-iave
• react to the crisis
limited tl-i e dama9e.
quickly
• protect your Hartley Health Group (HHG), the family-owned healthcare products group, faced a crisis
reputation when it was discovered that some tubes of its best-selling toothpaste had been laced with
• have a crisis poison. The toothpaste contributed to 20% of its profit. Withdrawing the toothpaste would
management plan be very expensive. H HG focused inwardly on saving costs, did not give media interviews,
• recall damaged did not recall all toothpastes immediately, did not issue an apology, did not have a crisis
products
management plan, and have now lost sales, share price and their reputation. Within a
• act decisively
year, it has lost three-quarters of its market share.
• give media
interviews

108
 UNIT 11 .. .. CRISIS MANAGEMENT

SKI LLS
IJ �))) CD3.23 Michael Goodrich is a presenter of a television consumer protection
Asking and programme. Tonight he is questioning Tim Bradshaw, the Marketing Director
answering ofTG Products, a large chain of stores which sells imported toys. Listen to
the interview and answer
d ifficult
these questions.
questions
1 What kind of toys are
popular with children,
according to Tim
Bradshaw?
2 How many of the toys does
his company have in stock?

3 How serious is the problem

with the toys? Explain your
answer.

El �)» CD3.24 Listen again to these questions from the interviewer. In each case,
decide whether the question is a) neutral/polite or b) aggressive.
1 Could you please tell me how many of these items you import each month?
2 Could you be a little more precise?

3 Roughly how many complaints about the toys do you receive each week ... ?

4 Isn't it true you've been receiving dozens of complaints from customers every week?
5 Do you deny people have been phoning you and e-mailing you constantly to complain
about the toys?
6 Why are you still selling them?
7 Isn't your real reason for not recalling the toys very obvious, Mr Bradshaw?
8 But what are you going to do about these defective toys?

9 When exactly will you get back to us?

10 Would you answer my question, please?

D Role-play this situation.

A furniture company has been attacked by a consumer website for selling a lamp which
is dangerous to use and could cause a fire. The Sales Manager agrees to appear on a
consumer TV programme to defend the company's reputation and answer questions.

Student A: Turn to page 138.

Student B: Turn to page 144.

U S E F U L LANGUAGE

INTERVIEWERS INTERVIEWEES
Asking questions politely Dealing diplomatically with questions Avoiding a straight/precise answer
Could you please tell m e ... ? I'm happy to answer that. Sorry, I'm not sure I know the answer
I'm interested to know why ... That's an interesting question. Let me to that one.
answer it this way ... I'll have to think about it.
Asking probing questions I can't give you an answer off the top
Could you be more specific, please? Checking ifyou understand of my head.
Could you be a little more precise? Have I got this right? Are you saying/
suggesting ... ? Playing for time
Asking questions aggressively I'm not sure I understood you. Could Sorry, I can't give you an answer
Are you saying that ... ? you rephrase that, please? straight away.
Do you deny that ... ? I'll have to get back to you on that one.

109
LAUNCH PLANS
think it should be banned or. at the very least,
only available to adults over the age of 2 1 ."
This is a further blow for the creator and
OF "IN RANGE" HIT BY developer of the video game, ExtremAction.
This Japanese-owned company has its head office

PSYCHOLOGY REPORT here in Los Angeles. /11 Range features a team

of mercenaries who are hired by the government
Plans to launch the blockbuster video game /11 Range of a fictitious country, The Republic, to completely
on October 30 have been up et by a new report on destroy a drugs baron and his private army of
violence in computer games and its effect on young bodyguards. There arc scenes of extreme
people. violence. including brutal interrogations and
Professor Carl Davis. a psychologist specializing summary executions.
in teenagers' behavior. has just brought out a shock It is expected that there will be record-breaking
report based on a three-year study of young people"s sales of the game in the U.S. and U.K.
reactions to violent video games. His main findings Pre-orders from retailers in both countries have
are that violent video games do increase the levels of been enormous.There's liulc doubt that /11 Range
aggression in young people and they also desensitize will be the top-selling computer game of the year.
youngsters to death and destruction. However, there is severe criticism of the company
Commenting on /11 Range, Carl Davis says, and its new game from politicians. academics.
"As founder of the Institute of Media Studies. community leaders. the police force. and the media.
I cannot approve the level of violence and violations This threatens the success of the celebrity launch
o f human-rights law that arc apparent in /11 Range. I at the end of the month.

�>» CD3.25 Listen to part of a

conversation between Linda
Thomson, Chief Executive of
ExtremAction (US), and Bob
Morgan, Director of Public
Relations. Discuss what
information they give about
the following:

• the plans for the launch

• the sales projections for the
US and U K
• why the Chief Executive is

IJ
jl I•

t-•_::_ .. ,
 UNIT 11 •• CRISIS MANAGEMENT

Sample of reactions to In Range before the launch on October 30.

Negative comments Positive comments

U.S. Senator Spokesperson for the computer games industry
We need a bill to ban sales of ultra-violent video games In Range will be an all-time winner. It'll invigorate our
to youngsters under 2 1 . I intend to introduce a bill in industry, create a lot of jobs, and help us to make more
Congress as soon as possible. money than the fat cats in the movie industry.

State Governor Game On magazine

I'd like to ban sales of In Range in our state. The What more can you say about In Range? It's exciting,
publishers of the game have gone beyond the limit. It's a easy to complete, and can be replayed many times.
disgusting, depraved game which will corrupt our children Great graphics and sound effects, fantastic action, and
and desensitize them to violence and death. a credible storyline. No wonder people can't wait to get
their hands on a copy.
Principal of a large international school
It's wrong to advertise the game in bus shelters and movie A champion ga m e r
theaters near our schools. There should be no adverts or What an awesome game! This takes video games into a
commercials within the radius of any school or on TV for new dimension. I hope they'll do a follow-up as soon as
that matter. possible.

Police-financed advert in a local newspaper A teenage gamer

In Range will make young people more aggressive, more Really thrilling and scary. Best game I've ever played.
rebellious, and increase crime in our city. Shouldn't Took me ten hours to finish. Killing that drugs baron and
ExtremAction be showing a sense of social responsibility? his bodyguards gave me a real buzz.

Children's charity s po ke sperson

In Range is typical of the harmful products of the U.S.
entertainment industry which reflect the increasing
violence in their society.

Because of the severe criticisms that they are receiving from politicians, academics, Watch the
Case study
community leaders and the media, ExtremAction decide to hold a press conference.
commentary on
This will enable them to defend the company, explain how they are dealing with the
the DVD-ROM.
crisis and answer the questions from journalists. Work in two groups.

Gro u p A: Tu r n to page 138. Group B: Turn to page 145.

1 Read your role card and prepare for the press conference.
2 Hold the press conference.

Writing
Journalists
Write a powerful article for your newspaper,
reporting on the press conference you have
just attended. You can either strongly criticise
or praise ExtremAction for the way their
company is handling the crisis.

ExtremAction Directors
An influential charity called Media Watch has asked
you to send them a report on the recent crisis regarding the
launch of In Range. The report should include the following
information:

• the background to the crisis

• an explanation of the actions you have taken to deal with it
• a conclusion, in which you justify your actions.

When you have completed your writing task, exchange

your article or report with a partner. Make suggestions, if
necessary, to improve the document you have received.
 STARTI N G U P
fl What do you understand by these terms?
1 a takeover/acquisition
2 a merger
3 a joint venture

I] ,.>l) CD3.26 Listen to a business expert talking about the terms in Exercise A.
Compare your ideas.

D Think of three reasons why one company might wish to take over another
company.

l:J What do you think the advantages and disadvantages of acquisitions may
be for a company's:
1 employees?
2 customers?
3 suppliers?
4 shareholders?
5 products and services?

112
 UNIT 12 .... MERGERS AND ACQUIS ITIONS

VOCABULARY
rJ Match the terms (1-6) to the definitions (a-f).
Descri bing 1 joint venture a) money risked or invested in a company
mergers and
2 MBO (management buyout) b) two or more companies joining to form a
acquisitions larger company
3 merger
c) offer money for shares in a company
4 takeover I acquisition
d) when a company's top executives buy the
5 bid company they work for
6 stake e) a business activity in which two or more
companies have invested together
f) getting control of a company by buying over
50% of its shares

I] Circle the noun which forms a word partnership with each verb.
1 take a stake I a bid / an acquisition
2 make a merger I a stake I a bid
3 launch a bid I a share I a stake
4 target a company I a bid I a takeover
5 set up a share I a joint venture I a stake
6 make a merger I a joint venture I an acquisition
7 reject a bid I a stake I a share

8 se ll a merger I a bid I a stake

II Choose the correct words or phrases to complete these extracts.

British A i rways· planned merger I acq11isitio11 Workspace. the business space provider, has pur­
with Spain ·s Iberia opens the way for B A lo recon­ chased the half of a joi111 ve11111re I merger that i t
sider a tie-up with Qantas, according to W i l l ie d i d not o w n from H B OS for £83m ( $ I 3 5 m ) ,
Walsh, the British carrier's Chief Executive. B A partly through a share placing to ra i s e £ 1 8 .9111.
ditched talks with t h e Australian national carrier The stake I acq11isirio11 of the Workspace Glebe
last year after the sides failed to agree terms. port fo l i o . which comprises 1 8 properties in 1 1
locations in London, w i l l immediately contribute
to earnings and net asset value.

Companhia Siderurgica Nacional, the Brazilian Turkey's government may launch a second public
steelmaker. has launched a €3.86bn ($5.5bn) offering this year to sell part of its re ma inin g 30
takeover bid I share for Cimpor. Portugal 's biggest per cent acq11isirio11 I srake in Turk Telekom. the
cement group. CS . one of Latin America's larg­ dominant fixed-I ine operator. B i n al i Yi l d i r i m .
e l fully integrated steelmakers. is offering €5.75 Communications M i nister. said yesterday.
a share for 1 00 per ce111 of Cimpor·s capital. a
premium of 5 per cent on Thursday's closing
price. The offer is conditional on CSN acquiring at
least 50 per cent.

See the DVD-ROM � EJ Think of a merger or acquisition you know about. What kinds of businesses
were involved? Were both companies successful before it happened?
for the i-Glossary. W What about now?

113
U N I T 12 H MERGERS AND ACQU ISITIONS

B �il) CD3.27 Listen to Professor Scott Moeller, Di rector of the Mergers &
Making Acquisitions Research Centre at Cass Business School. What three reasons
does Scott give for the lack of success of some mergers and acquisitions?
acquisitions

a �ll) CD3.28 Listen to the second part of the interview and answer these
questions.
1 Why is it sometimes better for the newly acquired company to be:
a) kept separate for a period of time?
b) integrated very quickly?
2 What do you need to determine in addition to the speed of the merger?
3 What other questions does Scott say you need to ask?
Scott Moeller

�>» CD3.29 Listen to the final part and take notes on why the merger between
Bank of New York and Mellon Bank was eventually successful.

W l!J
Watch the interview
on the DVD-ROM.
A How would you go about making sure that the staff of a company that you
have just acquired feel valued and welcomed?

In groups, look at the table below and answer these q uestions.

Acquiring a 1 What do the companies in column A do?
green busi ness 2 Match the company in column A to the company that it acquired in column B.
Feel free to guess.

3 What do you think all the companies in column B have in common?

A B
Danone Ben and Jerry's
L'Oreal Stonyfield Yogurt
Colgate-Palmolive The Body Shop
Unilever Aveda
Cadbury Schweppes Green and Black's
Estee Lauder Tom's of Maine

EJ Read the first paragraph of the article on the opposite page and check your
answers to Exercise A.

B Read the rest of the article and say if these statements are true or false.
1 Sean Greenwood is more positive about the takeover of Ben and Jerry's than Jerry
Greenfield and Kevin Ranney.
2 Large companies acquire small companies to help them with innovation.
3 The majority of customers shop elsewhere when their favourite brands have been
taken over.
4 Ben and Jerry's shares were doing well just before Unilever bought them.

5 Ben and Jerry's are using more freetrade ingredients than before the acquisition.

l!J Answer these questions.

1 What do large companies have that smaller companies don't?
2 What problems did Ben and Jerry's have just after the acquisition?

1 14
 UNIT 12 H MERGERS AND ACQU ISITIONS

IJI Find the three expressions in the first paragraph that describe one
company being taken over by another company.

D Complete the paragraph below with the words in the box.

conglomerate corporations multinational partnership subsidiary

Toshiba is a large . . . . . . . . . . . .1 that has acquired several . . . . . . . . . . . . 2 engaged in different

ind ustries. It is also a . . . . . . . . . . . . 3, as it has offices in many d iffe rent countries. Toshiba
recently formed a . . . . . . . . . . . . '• with United Parcel Services to design a more efficient
repair process for laptop computers. I n 1987, Toshiba Machine, a . . . . . . . . . . . . 5 of
Toshiba, was accused of selling parts used to produce submarine propellers to the
Soviet Union.

m Discuss this statement.

The transport of values from a smaller green company to a large multinational that
has taken it over is impossible.

Green Skeptics of responsible retailing can

easily suggest that small companies have
Kevin Ranney, Managing Partner and
Director of Research at Jantzi Research,

targets
simply reached their expiration date - says that positive transfers from the
unfortunate hippie victims of corporate acquired company to the acquirer are
•o Darwinism. But these partnerships can help ss difficult to quantify.
bring ethical activities into the mainstream. "That's one of the reasons why we're
by Melissa Shin
"We're fortunate," says Sean not really excited to see these acquisitions
It ain't easy being green these Greenwood, spokesperson for Ben and occur," he says. "The reality is that what
days - especially if you 're an Jerry's. "We could have had a lot of Ben and Jerry's was all about is now
independent green business. 45 businesses that could have bought us oo buried deeply within a massive corporate
The list of smaller, green companies being and [closed us down]. But they didn't do structure, and it has relatively little impact
swallowed up by global conglomerates that. And I applaud them for that and for on anyone's assessment of Unilever."
is growing in both prestige and numbers: recognizing and understanding that that Sean Greenwood says that while
responsible ice-cream producer Ben and there's a value in keeping the folks who are customers understand there has been a
5 Jerry's, now owned by Unilever; organic so trying to hold on to what's really important: 95 management change, they still support
yogurt maker Stonyfield Yogurt, now in the essence of Ben and Jerry's." the ice cream.
partnership with Danone; alternative beauty In April 2000, the Anglo-Dutch Unilever "I don't think people say, 'Wow, this
companies The Body Shop and Aveda, NV announced it would buy flagging Ben pint today in January 2003 is different than
now owned by L'Oreal and Estee Lauder and Jerry's stocks for $43.50 a share, a the December pint of 2002.' I think they are
10 respectively; organic chocolatier Green 55 large premium over the previous day's 100 saying Ben and Jerry's has continued to be
and Black's, now owned by Cadbury closing price of $34.93. a Ben and Jerry's organization and product
Schweppes; Tom's of Maine toothpaste, Even though the initial takeover throughout our years."
now owned by Colgate-Palmolive; caused factory closings, job losses, and The proof is in the pudding - or
personal-care company Burt's Bees, management changes, Greenwood says ice cream, as it were. Ben and Jerry's
15 acquired by Clorox in November 2007; so that his company has helped change 105 announced in 2006 that it would be
and Husky Injection Molding Systems, Unilever. expanding its fairtrade ingredients to
acquired in December 2007 by Onex "There's been a good give and take, include Fair Trade Certified coffee, vanilla,
Corporation for $960 million. back and forth with the organizations," and cocoa, and it was also the first national
It's not hard to see why small he says. "It feels like this is a good fit." American food manufacturer to move
20 companies are vulnerable - multinationals 65 But co-founder Jerry Greenfield told 110 towards a total transition of its products
can offer increased distribution, access the UK's Green Futures magazine in 2006 to "Certified-Humane" cage-free eggs.
to more markets, and most of all, cold, that he doesn't feel that fit with Ben and Nevertheless, the Ben and Jerry's
hard cash. And large corporations often Jerry's any more. experience has served as a warning sign
find it easier to acquire than to innovate. "I have no responsibility and no to other firms.
25 Consumers are at the very least 10 authority in the company," he said.
surprised to discover that their favourite "I have my good name. I have an ability
brands have become mere subsidiaries to influence things I want to, and to not
within a large multinational. be interested in things I'm not interested
A recent poll by the website in. That's the extent of my role."
30 Treehugger.com (ironically, this once­ 75 He went on to add, though, that
independent site is now owned by the influence does exist.
Discovery Channel) found that 35 per "I was skeptical about this supposed
cent of consumers take their business 'transport of values' from Ben and Jerry's
elsewhere when corporations acquire to Unilever, but it has happened to some
35 their once-revered brands. eo degree," Greenfield observed.

from Corporate Knight, The Canadian Magazine for Responsible Business

115
UNIT 12 H MERGERS AND ACQU ISITIONS

There are many ways to talk about prediction and probability.

Prediction and • We can use will or going to.
probabi lity Buying Kraft's pizza business will boost Nestle's presence in North America.
After the acquisition, the returns to investors are going to be extraordinary.
• We can use the future continuous and the future perfect to predict what will
be in progress or will have been accomplished in the future.
Orange will be selling the iPhone from November 10.
The Bank of England will have bought £125bn in bonds by the end ofJuly.
• We can use modals.
More European mergers may be on the way in the airline industry.
• We can use lexical phrases.
certain: There's certain to be more acquisitions of green companies
in the next two years.
probable: It's highly likely that Unilever will acquire them.
possible: Perhaps the share price will rise next month.
unlikely: I doubt whether L 'Orea/ will make a bid.
impossible: There's no chance of the merger taking place.

I:) Grammar reference page 1 5 1

El Choose the correct verb forms.

1 We will have paid /will be paying back the loan by December.
2 I will be /will have been here for three years next May.
3 Next year, she will be working /will have worked in our Tokyo office.
4 We will be holding /will have held a meeting soon.
5 Don't phone me tomorrow because I'll be working /work on the bid all morning.
6 We will be offering /will have offered a special discount from January 1st.
7 By the end of next year, we will be launching /will have launched six new products
in three years.
8 This time next year, we will be enjoying /will have enjoyed the results of the merger.

EJ Work in pairs. Say what you really think about the likelihood of these
things happening.
• a stock-market crash next year
• Microsoft merging with Apple
• the majority of managers being women
• Brazil, Russia, China and India becoming the major world economies
• the World Wide Web having serious problems

B Work in pairs. Make predictions about your company, your country or

yourself. Use as many forms from the Language review box above as
possible. You may also find these phrases useful.
In my lifetime, ... Over the next decade, .. .
Before long, ... By this time next year, .. .
In the near future, .. . By the end of this century, ...

In the next ... years, .. . Sometime in the next decade/century, ...

116
 UNIT 12 H MERGERS AND ACQU ISITIONS

fl ,,.>» CD3.30 Susan Drake, Chief Executive of Eastman Property, an American

Making a h otel group, is giving a presentation to a group of investment fund managers
presentation in the United Kingdom. Her company has recently bought Highview, a
property company which owns 1 5 budget hotels in the U K. She explains
why they bought the company and their plans for the future development
of Highview. Listen and answer these questions.
1 For what reasons did Eastman Property buy the Highview group of hotels?
2 What are Susan D rake's plans for Highview i n the future?

EJ �>» CD3.30 Study the Useful language box below. Then listen again and tick
the phrases that you hear.

II Read the audio script of the presentation on page 167. Add expressions to
the headings in the Useful Language box. Then, in pairs, practise delivering
the presentation.

E You are the Managing Director of Eastman Property. Your company intends
to buy one of these businesses located in your country:
• a travel agency
• a shopping mall
• a business equipment store

• a cinema complex
• a sports and leisure centre.

Choose one of the businesses. Make a presentation to a group of investors

explaining why you wish to buy the business, and what plans you have for
its future development.

U S E F U L LANGUAGE

REFERRING BACK MAKING POI NTS I N THREES USING EMOTIVE LANGUAGE REPETITION
So, as I said a few The gap in the market, the We're absolutely delighted ... Highview will be the future
minutes ago, ... market conditions, the This is a fantastic ... Highview will lead the way
Right, as I mentioned opportunity for growth. opportunity ... ... Highview will set a new
earlier, ... We have a clear, realistic standard ...
and ambitious strategy for The company has a strong
TALKING ABOUTTHE FUTURE
the Highview brand. brand, strong management
LOOKI NG FORWARD By that time, we'll have and strong cashflow.
I'll talk about this later. developed a portfolio of
SUMMARISING budget hotels ...
I'll outline these later
Right, I've told you why we've ASKING FOR FEEDBACK
in my presentation. By 2020, we'll have become
acquired Highview ... market leader in the budget And now, any questions?
OK, I've talked about our hotel sector ... Would anyone like to ask
ASKING R H ETORICAL
reasons for acquiring the any questions?
QUESTIONS
company ...
OK, what were our reasons
for the acquisition?
Right, why did we choose
this hotel group?

117
 Rinnovar
International

Background
Rinnovar International Inc. (RI), with annual revenues of $14 b i ll i on, has a 6% share
of the cosmetics, fragrance and skincare market. It is currently seeking to buy
established companies which will add new lines to its range of products. RI has a
strategy of expanding both in its domestic market, the United States, and overseas
by buying companies rather than exp an d i ng through o rga nic growth. Its mission is
to be able to compete strongly within five years in the prestige and mass-market
cosmetics and skincare segments with major companies such as Revlon, L'Oreal
and Procter & Gamble.

A recent internal marketing survey revealed the following:

• products: Rinnovar needs to produce more innovative cosmetic products and

to have a wider product range, for example, for health and haircare.
• markets: It currently has low sales in South Asia and South America.
• distribution networks: It uses only exclusive agents in its overseas markets.
• production centres: All its products are made in high-cost US factories.

What are the advantages of companies expanding in domestic and foreign markets
by buying existing businesses rather than by organic growth (setting up their own
branches and subsidiaries)? Are there any disadvantages?

Look at the criteria below that Rinnovar International use to select companies that
they are thinking of acquiring. If you were Chief Executive of RI, which three criteria
in the list would you consider to be particularly important and give priority to?

Type of business Financial Ma na geme nt

We seek a company that has: The company should have: We look for a strong,
• a leading or well-established • a record of increasing profits motivated, experienced,
position in its field over the previous three years entrepreneurial team. ,.>» CD3.31 Listen
• growth potential driven by • strong cashflow to the news
steady demand • turnover between $20 million Ownership programme,
• a diverse range of customers and $100 million We prefer 1 00%, but
and suppliers
Business Focus.
• high profit margins on its would consider a majority
• a reputation for high quality products. shareholding.
Make notes on each
• excellent customer relations company's financial
• a desire to expand Location performance a) last
internationally or has already Preferably in a fast-growing, year and b) i n the
done so. developing country, but all
three previous years.
locations considered.
 UNIT 1 2 • • MERGERS AND ACQU ISITIONS

You work in the Corporate Strategy Department of 2 Prepare a presentation of your ideas. Rank the
Rinnovar International. Work in small groups. Analyse companies in order of suitability and indicate which
the information you have gained from the Listening company you think is the best choice for
(see audio script page 1 67) a n d from reading the an acquisition.
company profiles below. Discuss the advantages and
3 Listen to each other's presentations. Note down any
disadvantages of buying each company and note
key points.
down your ideas.
4 Meet as one group. Decide which company, at
this stage, seems to be the most suitable as an

Hondo Beauty Products

Location: Mumbai, India Location: Seoul. Korea

Type of business Type of business

Established: 2004, by two Indian women, a famous model and a film star. Established: 1982
Products: Hair-
and skincare. Strong position in bath and shower products. Products: A range of cosmetics, bath and shower products supplied
Very dynamic R&D department creating high-quality, reliable products for to major cosmetic companies in Korea and to buyers in Asia, the US
the competitive world market. and Europe.
Customers: High-profile clients, e.g. airlines, hotel groups, embassies, top Ultra-modern factory in Korea. Exceptionally good quality control.
department stores. Very rtexible. Has many partnerships with foreign companies.
Financial Financial
Good record of profits in previous three years, but international sales have Fast profit growth in the previous three years, but increasing
slowed down. competition from China and India could reduce its profit margins.
Management Management
Team needs to be strengthened. Its board of directors is dominated by the The members of the board of directors are all Korean. The
two founder members; other members are relatives with little business management style is very consensual and decision-making is slow.
experience. Company needs more exporting. marketing and financial Ownership
expertise from outside the company to expand. 60% owned by the Kim family. 40% private shareholders.
Ownership The family would consider 100% ownership by Rinnovar International,
Owners may not permit 100% ownership by Rinnovar. They will probably but are likely to negotiate hard to get the right price.
want SO/SO share of equity and profits. Additional information
Additional information In the future. Hondo is certain to experience strong competition from
The market for hair- and skincare products is growing fast in India, low-cost producers in developing countries.
but the company faces strong competition in world markets.

Sheen Hair Products

Location: Belo Horizonte. Brazil Location: Palm Beach. Florida
Type of business Type of business
Established: 1992 Established: 1978
Products: A wide range of mass-market products in the hair-, skin- and Products: Shampoos, hair colours and other haircare products sold
bodycare segments of the market. exclusively to beauty salons. Its products include many well-known
Strong position in cosmetics and fragrances market. brand names.
Uses direct selling. Has over 480 sales reps in Latin America, including 265 All its production is located in low-cost developing countries.
in Brazil. Is considered a highly ethical company using natural ingredients. Financial
Does not test products on animals. Steady but unspectacular profits growth in the last three years.
Financial Profit margins have declined due to strong competition.
Expansion seems already to be slowing down. Slow growth in profits in Management
previous three years. Heavy investment in overseas plants will affect future An experienced team.
profits in the short term. All members are American. They have little experience of selling in
Management global markets.
The company is run by Gustavo Lopez and his family. Lopez is a Ownership
strong, autocratic CEO, while the younger members are much more Publicly owned company. 100% ownership possible if the right price
entrepreneurial. This is creating great tension in their team. The younger was offered.
members would like a more decentralised structure for the company.
Additional information
Ownership Because of its strong brands, the company has maintained its share
Probably the family would want to retain a majority shareholding in of the US market in spite of strong competition.
the company unless Rinnovar made an offer they couldn't tum down. Has received a bad press recently for locating its production
Additional information overseas and for paying local employees very low wages.
The market for cosmetics is growing fast in Brazil.

Watch the Case study Writing

commentary on the DVD-ROM. Write a report to the Chief Executive of Rinnovar International on the
four possible acquisitions. Give your recommendation for acquisition.
c:) Writing file page 1 3 1
1 19
 4 In ternational nego tiations
0 Discuss these questions. Q Read about the experiences of negotiating
1 What sort of negotiations have you taken part
internationally below and answer these
in (at work or outside work)? questions.
2 How many people were involved? Were you 1 What are your personal reactions to the
alone or part of a team? experiences described and views expressed?
3 Was the atmosphere formal or informal? 2 Would the experiences described be a) normal,
4 Was the negotiation successful or b) a little unusual, or c) very unusual in your country?
unsuccessful? Why do you think this was?
1 It was very different to what I am used to. They

() Choose the correct option to complete each

didn't seem to want to write anything down. There
was a real emphasis on getting to know you - lots
sentence. of small talk. l felt it was all rather slow. No one
1 At the start of a negotiation, it can be important seemed to be in a hurry to get anything done.
to establish a . . . . . . . . . . . . with the other side.
a) rapport b) stalemate c) guarantee
2 When both sides give something away in order 2 Our negotiation was interrupted by new people
to make a deal, they reach a . . . . . . . . . . . . . coming in all the time. There was also a lot of
a) concession b) compromise c) guarantee attention paid to the business cards, which was
new for me. We had three meetings before we
3 When one side gives something away, they talked about any business at all. We were kept
make a . . . . . . . . . . . . .
waiting for a long time.
a) compromise b) breakthrough
c) concession
4 Something which stops a negotiation going
3 There were too many jokes and first names. It
smoothly is a . . . . . . . . . . . . .
wasn't clear who was in charge and making the
a) limit b) sticking point c) lock decisions. It was too casual and relaxed for me.
5 A situation in a negotiation where no progress l think people should behave more formally, use
can be made is a . . . . . . . . . . . . . surnames and behave like businesspeople.
a) deadweight b) deadline c) deadlock
6 A . . . . . . . . . . . . is a creative solution which allows
the negotiation to progress. 4 We thought we had a deal and made an agreement.
a) breakthrough b) breakout c) breakpoint Then they asked for some new concessions.
7 If both sides in a negotiation leave the table
without a deal (empty-handed), the negotiation
.
process . . . . . . . . . . . . 5 There was no compromise. It was a real fight. In
the end, we reached deadlock and they walked
a) breaks down b) breaks off c) breaks out
out. There was a lot of emotion and shouting- I
8 The minimum offer you are willing to accept is wasn't sure if it was normal or not. It upset me a
known as your . . . . . . . . . . . . . bit, if I'm honest.
a) opening position b) fallback position
c) bottom-line position
9 Some negotiations may involve a time 6
restriction or . . . . . . . . . . . . .
a) deadlock b) deadline c) dead end

8 Which of the ideas in Exercise B could 7

contribute to the success or failure of an
international negotiation?

8 It was all quite hard line. It was more like some

kind of competition. They seemed to just want to
win - to get something for nothing.
 WORKING ACROSS CULTURES �� INTERNATIONAL N EGOTIATIONS

0 ,.l)) CD3.32 Listen to a business expert Work in groups of four made up of two pairs.
talking about international negotiations Pair A: Read your instructions below.
and answer these questions. Pair B: Turn to page 140.

1 What are some of the common Pair A

misconceptions she mentions? 1 Look individually at the points to consider in an
2 What are the three areas she focuses on? international negotiation listed below and add
two more.
0 ,.l» CD3.32 Decide if these statements are 2 Choose the five most important points from your list.
true (T) or false (F). Then listen again and 3 Talk to your partner and agree the five most important
check your answers. points.
4 Join up with Pair B and try to agree the five most
1 It's vital to know about regional d ifferences.
important points from your two lists.
2 Getting a deal is always the main objective.
3 Personal relationships in business are 1 Keep an open mind and be flexible.
important a l l over the world. 2 Propose a strict agenda and keep to it.
4 Signing a contract can be the start 3 Anticipate the interests of the other side.
of the negotiating process. 4 Let the other side make t h e first offer.
5 It is not always a good idea to 5 Be very clear and direct about what you want from
offer gifts. the other side.
6 The number and roles of people 6 Pay careful attention to building a rapport.
in a negotiation is not important.
7 Put pressure on the other side to make an agreement.
8 Have a deadline for getting a deal.

Write some tips for negotiating successfully

with your culture.
Letters

Salutation TM Breweries GmbH

When you don't know the name Baubergerstr 1 7
o f the recipient: 80991 Munich

Dear Sir/Madam (BrE)

Ladies and Gentlemen (AmE)
When you know the name of
the recipient: Ms Teresa W i nch i
I
Dear Mr/Mrs/Ms/Miss Winch Vending Machines Inc.
(BrE, AmE) Box 97
Note: In the US, the titles Mr. New York
and Mrs. are followed by a full 1 9 February
stop/period, e.g. Mr. Winch. - Dear Ms Winch
South-East Asian opportunities
I was very pleased to have met you again at the open day we held in our

Endings
Munich brewery last week. I hope you enjoyed yourself and felt that your
visit was useful. i
T found our discussion about the activities of your organisation in Korea
When you don't know the name Ir
very interesting. It seem to me that there are a lot of ways i n which our Ir
of the recipient:
organisations could work together to our mutual advantage in South-
Ir
Yours faithfully (BrE) East Asia. I have enclosed a brochure with further information about our
Sincerely yours (AmE) products. I propose that we get together soon to discus the maner in
When you know the name of more detail.
the recipient: I hope this suggestion is of interest and look forward to hearing from you.
Yours sincerely (BrE)
Sincerely (AmE)
: Yours sincerely i
[I
Sign the letter, then print your
name and position under your
y� 3dl
signature.
Katherine Sell
Sales Manager

Common abbreviations :
Encl. product brochures I,

Re. regarding
PP (on behalf of) when
you sign the letter for
someone else
encl. documents are
enclosed with the
letter (sometimes
also encs.)
cc copies: the names
of the people who
receive a copy of
the letter

126
 WRITING FILE

E-mails

E-mails have two distinct styles: a semi-formal

business style and a more informal personal style.

To: [email protected]

From: alison. mcdermott@ hasbro.com

Subject: Meeting in Berlin

The semi-formal style is similar Dear James

to a business letter, but less
You may remember w e met at the Learntech fair i n Kuala Lumpur
formal and shorter. A likely ,_____
last fall. You were interested i n our company's automation
ending is Best wishes rather
equipment.
than Yours sincerely. This style
is best used for e-mails to I a m visiting Berlin at the end of next month and would like to visit
people outside your company you, if you are around. I will be there from March 27-3 1 .
or whom you do not know
Let m e know i f you have any time.
well. The emphasis is on the
efficient provision or exchange Best wishes
of information.
Alison

Alison McDermott
Product Manager
Has Bro Equipment I n c
Box 28
Chicago

e-mail: alison. [email protected]

To: james [email protected]

From: [email protected]

Subject: Meeting in Berlin

The informal style is suitable H i James

for e-mails within your
I ' m over in Berlin from 6-8 November. Could we meet u p some
company and for people whom
time? It would be great to see you!
you know well. The greeting is
often Hi, Hello or even How are Let me know when you're free.
you ?The style is much closer to
Regards
spoken than written English.
Jenny

e-ma i l : jen n ifer.duncan@ki ngsland.co.uk

127
WRITING FILE

Press releases

The header for a press release

should make clear who it Press Presse Prensa
comes from, what the subject
is and which part of the press it
i s aimed at. : Automatix pie
Semi Conductor Division

The subject should be put in For the trade press

bold p ri nt so that journalists 21 December
can see immediately if it is
relevant to them. Opening of new production facilities in Johar Fahru, B ala nes ia

The main body should have At a ceremony attended by Automatix Chairman, Rocco Truffaldino,
a short introduction with and the British Ambassador to Balanesia, Sir Edward Faulkner,
names of people who might be Automatix pie's new semi-conductor-chip facilities were opened in
interesting for the press, some Johor Fahru on Wednesday.
description of what is new or
'The new facilities represent our commitment to expanding our
interesting for the public and -

production of advanced memory chips. We aim to be the supplier

if possible - a good quote which
of choice for the world's leading electronics companies, without
the newspaper could print.
damaging the environment,' said Mr Truffaldino.

A special feature of the plant is the clean, no-waste production

The style should be formal anrl
u- -+-
- -+-
.. process, which aims to have zero impact on the environment.
concise, with nothin g irreleva n t
to the particular sto ry. For additional information, visit our website www.pr.automatix.co.uk
or contact Jerry Turner +44 (0)1792 5360 1 2 (phone), +44 (0)1 792
536723 (fax).

Always include some

information as to how Date: 21 December
journalists can get more Title: Opening of new production facilities in Johor Fahru, Balanesia
Addressed to: The trade press
information about the subject
Author: Kylie Dawson
if they want it.

128
 WRITING FILE

Sum m aries

Hispanics are more influenced by advertising than other US consumers, suggesting When you summarise
that the growth of the Spanish-speaking population could prove beneficial to b i g something, you express the
corporate sponsors, according to two studies. most important facts or points
about something in a short and
A Nielsen Media Research study released on Wednesday found that Spanish­
clear form.
language television v iewers pay more attention to commercials and are more l ike l y
to base their purchasing decisions on advertisements than other US consumers. Writing a summary involves:
The report was issued after Euro RSCG, the marketing communication agency, • selecting the most important
released a study that showed Hispanics are more aware of brand names than other ideas or facts from a text
US consumers.
• rewriting those ideas/facts in
Taken together. the reports suggest that growing corporate interest in Hispanic a short, concise form, using
marketing might involve factors that go beyond the mere size of the Spanish­ your own language
speaking population. The US Hispanic population is estimated at about 39m .
• producing a text which is
The studies also suggest that Hispanic consumers offer big companies the chance shorter than the original
to use the kinds of sales pitches that worked with US consumers i n decades past, - usually at least half the
but which are now less popular with advertising-weary viewers.
number of words.
Fifty-two per cent of Hispanics say they frequently get information for making Here is an example of an
purchase decisions from watching TY commercials in Spanish, compared with 7 original text and a sample
per cent of non-Hispanics watching English-language television.
summary.

The Spanish-speaking population i n the U n i ted States (about 39m) is an important

This summary is effective
group of consumers for large companies. because:
• it contains the key ideas from
Recent research has found that Spanish TY viewers are very i n fluenced by
television commercials when they buy products, and they also know more about
the original text
brands than other people in the U nited States. • the language used to express
the key ideas is different
Another finding of the research was that conventional methods of advertising
appeal to Spanish-speaking people, even though other viewers are t i red of them.
from the original
Some interesting statistics: 52% or Hispanics depend on TY commercials for • the new text is much shorter
i n formation about what to buy. whereas only 7% of non-Hispanics do. in length.
(96 words)

Guideli n es
Westpa k Ltd
Company Guidelines
Guidelines vary enormously
Welcome to Westpak, the company that cares!
from company to company
and industry to industry. It is As a new employee, you probably have many questions that you wish to

important to distinguish between ask about your new position. To help you settle in quickly, here are answers

guidelines and regulations. to some of the most frequently asked questions.

• Regulations are required for 1 How does the flexitime system work?
ensuring the legally correct All employees at Westpak are individuals with their own particular
handling of a contract, or the circumstances. We believe that it is your responsibility to work out with
safe operation of a piece of your supervisor a schedule that is fair to both you and the company. As
machinery, for example. The long as your work is done as efficiently as possible, you can do it when
language used in regulations is you like. That is why our offices are staffed 24 hours a day.
therefore much more directive. 2 How should I dress?
• Guidelines are also important Most of you will be in regular contact with customers. It is important
for ensuring the smooth that they should feel confident about the service they will receive from
operation of the company, Westpak. We suggest that you dress in a way which is smart and
but they often touch on areas business-like as a mark of respect to our clients.
of human behaviour where
3 How are interpersonal problems dealt with?
it is not easy to dictate to
people. The language must Teamwork has always been the key to success at Westpak, and anything

therefore be more persuasive which is likely to damage co-operation between team members has to

and less directive, or else be dealt with as quickly as possible. If you feel that efficient . . .

staff will object.

129
WRITING FILE

Action m i n utes

- Always put the title, date,

Minutes of the Management Committee Meeting time and venue (place) of the
meeting, plus the names of the
Date: 7 April
participants.
Venue: Building B, Room 10-213
Participants: Jim Scarfield, Andrea Hevitsun, Robbie Gibson,
Paul Keown. Apologies: Tony Barton
!
-
The minutes can be an
important record of what was
Point Discussion Action really discussed at a meeting,

L.-L---"
so it is important to make sure

�
1 Management We agreed changes to the
that the summary of each point
pay review management pay review. AH will
is as accurate as possible.
include these when the review is ...
presented at the next meeting of
l
the finance committee. Initials are used to refer to
2 Sales We agreed that we need to produce JS and PK participants.
projections better sales figures for the next
next quarter quarter after the poor results so far

I
this year. JS and PK will spend the
next month personally visiting our
top clients to check the reasons for
the business downturn.

3 Recruitment We decided not to do any recruiting RG

and capital over the next quarter. However, The 'action' column is
expenditure we will buy the new accounting important for showing who is

v
software to increase our efficiency supposed to do what by when.
in invoicing customers, if we can
get a bigger discount from the
/
software supplier.
/ If you are a participant at a
4 Company bonus Because of the present financial AH 3 May / meeting, always make sure you
check the minutes when they
scheme situation, a bonus scheme can only
work if it is linked to productivity. have been written up. If you
AH will review different possibilities I' think something has not been
for discussion with the finance accurately reported, then have
committee and report to us at the it corrected.

li1
next meeting.

Next meeting: 3 May 14:00

Venue: Building B, Room 1 0-2 1 3

130
 WRITING FILE

Reports

Parry, Parry & Gibson: s1TE AccmENT REPORT

Executive su:nunary

Damage has been caused to the emergency generator on the Witherby power plant site. It was
caused by a fire started by the electrical contractors Mullet & Sons. Although the packing material
that caught fire was left by another subcontractor, the personnel from Mullet started work before
clearing the waste matter away, in contravention of contract regulation 2.3.8. Mullet & Sons should
therefore pay for the replacement of the damaged equipment.

Introduction

This report will look at:

• the sequence of events;
• the subcontractors involved;
• the responsibilities of the subcontractors;
• the financial compensation from the subcontractors;
• recommendations to avoid future incidents of this nature.

Findings

Fire broke out at 1 7 : 3 0 on Friday 1 3 October in the working area around the emergency
generator. All personnel were cleared from the site, and the fire service was informed by
1 7 : 45. The fire service arrived at 1 8 : 00, and the blaze was extinguished by 18:30.

2 The electrical contractors Mullet & Sons started the fire accidentally when carrying out the
connection work of the generator to the main power line. Packing material left on the ground
by another subcontractor, Harvest Macdougall plc, caught fire, and this quickly spread.
3 Although Harvest Macdougall are obliged to remove any packaging material they bring with
them, it seems that the electricians from Mullet told them to just leave it. We assume they
wanted to get their own work done as quickly as possible so that they could finish for the
weekend. Starting welding work without first making sure there is no inflammable material
around is in direct contravention of contract regulation 2.3.8.

Conclusion

Mullet & Sons must pay for the replacement of the generator (€90,000) as they are solely
responsible for the damage.

Reco:nunendations

Mullet & Sons should not be offered any more work on site if they do not accept these terms.
2 Harvest Macdougall should receive a formal warning.
3 All subcontractors must be reminded of their obligation to follow all fire and safety regulations.

Normal Poole
Site Manager
1 9 October

1 A report should be well organised, 3 Another possible structure 6 The Findings are the facts you
with information presented in would be: discovered.
a logical order. There is no set • Title
7 The Conclusion is what you think
layout for a report. The layout • Terms of reference
about the facts and how you
will depend on: • Procedure
interpret them.
• the type of report; • Findings

• the company style. • Conclusions 8 Recommendations are practical

• Recommendations suggestions to deal with the
2 The format used for this example
situation and ideas for making
is common for many formal 4 The Executive summary is a
sure future activities run more
reports: summary of the main points and
smoothly.
• Title conclusions of the report. It gives
• Executive summary the reader a very quick overview
• Introduction of the entire situation.
• Findings
5 The Introduction defines the
• Conclusion
sequence of points that will be
• Recommendations
looked at.

131
 1 Com munication, Skills, Exercise F, page 11

Student A
Role play 1 Role play 2
Two colleagues from your company will be visiting You are the overseas agent for an electronics
company headquarters next month. You need to company. The Marketing Manager of the company
telephone head office and give the following details phones to discuss plans for advertising the company's
about the visit. new range of up-market coffee machines. You and the
Names of visitors: Rachel Buergisser and Ignacio Marketing Manager have various ideas for promoting
Alfonso Paz the sales of these items. Try to agree on a suitable
Contact number: 05876 549006 advertising strategy.
Flight details: BA 3098 arriving at 16:40, not 18:30, Note: You are on your mobile phone and the battery is
on the 13th May low, so check all the details carefully.
Hotel: Park Crowne Plaza (13th-16th May)
You want to:
Note: You tend to speak quite fast on the telephone. • spend a lot of money on radio and TV advertising
• hire some models for in-store promotional
activities at local department stores
(twice a week for eight weeks)
• exhibit the products at a local trade fair
• do some direct mail shots to selected house and
apartment owners
• start a viral marketing campaign, but you have no
experience in this area.
You want the Marketing Manager to contribute at
least 80% of the cost of the advertising, which you
expect to be about € 1 00,000 in total. You could
contribute 20%, but this would greatly reduce your
profits on the products.
While doing the role play, practise some of the
expressions you can use for dealing with breakdowns
in communication.

3 Building relationships, Starting up, Exercise A, page 22

Key 0-7 Building relationships is not easy for you.

1 a) 2 b) 1 c) O Communication is the key. Make the effort to
2 a) 2 b) 1 c) 0 talk to people about problems. Ignoring them
3 a) 2 b) O c) 1 won't solve them, and practice makes perfect.
4 a) 2 b) 1 c) 0
8-9 You are making the effort to build good
5 a) 1 b) 2 c) O
relationships, but are you trying too hard? It
6 a) 1 b) 2 c) O
might be better to spend more time developing
the relationships you have rather than going
out to meet more people.
10-12 Congratulations! You obviously enjoy
good relations with many of your business
associates. Can you use your skills to help
those who work with you improve their
business relations, too?

132
 ACTIVITY Fl LE

3 Building relationships, Skills, Exercise D, page 27

Student A
Role play 1 Role play 2
You are the US owner of an up-market chain You are a sales manager for a mobile phone company.
of restaurants. You phone a supplier who was While having lunch, one of the speakers at the
recommended by a friend. You want the supplier to conference sits next to you. You met the speaker briefly
make regular deliveries of lobster and crab to your at a conference in Vienna (Austria) two years ago.
restaurants in New York. 1 Re-introduce yourself.
1 Introduce yourself, and mention your friend's 2 Find out if the speaker is interested in visiting your
recommendation. company and leading a training session for your
2 Find out if the supplier is interested in doing sales force.
business with you.

4 Success, Skills, Exercise E, page 41

Student A
You are the Sales Manager for the Spanish briefcase manufacturer.
You want the retailer to agree the following:
Delivery time: Four weeks after receiving order
Place of delivery: The retailer's main warehouses in Zurich and Geneva
Price: Top-of-the range briefcase: €550
Medium-priced briefcase: €320
Colours: Black and brown
Payment: By bank transfer when goods have been dispatched
Discount: 4% for orders over 100
Returns: Medium-priced briefcases (easier to resell)

4 Success, Case study, page 43

Kensington United negotiating team

There are two other companies interested in sponsoring the club if the negotiation with
Universal Communications (UC) fails. However, UC is an international company, with
excellent management and a high profile in the business world. You want:
1 A four-year contract 6 Diversification into other areas
The contract should have a total value of €80m. You have contacted baseball clubs in the United
€40m should be paid within the first year, as you States. Two US clubs have agreed to play a
need money to enlarge the stadium's seating competitive match at Kensington's stadium
capacity, introduce sophisticated surveillance during the summer. This will greatly enhance
technology and hire more staff for crowd control. Kensington's image.
2 Limited advertising 7 A deal with a football boot manufacturer
Advertising of UC at the club ground should You want to make a deal with Sprint plc, a football
be limited. You want the ground to keep its boot manufacturer. Sprint has developed an
identity and intimate atmosphere. Too much U C innovative football boot which gives players
advertising could upset the fans. greater speed. It has offered Kensington
€ 5 million to sponsor the product.
3 Limited promotion by players
Players' appearances and promotional activities 8 Perks
should be limited to 10 days a year. Too much time Try to get as many perks as possible from U C -
doing promotion work affects performance on for example, €20,000 for each goal that a player
the field. If the team fails to reach the final of the scores over his individual target of 20 goals. Also,
European Cup though, you could increase players' free cars for players, memberships to clubs, etc.
availability by five days. You can offer UC:
4 Crowd control at home matches • the advantage of being linked to the most exciting
You are working actively with the local police to young team in English football;
deal with the problem of hooliganism at home • the opportunity to work with one of the best
matches. managers in the Premier League;
• the benefit of working with a brilliant Commercial
5 An additional payment
Director, Ingrid Tauber;
UC should pay an additional €16m towards the
• the possibility of becoming better known
cost of buying one or two star players. Marco Conti
throughout Asia;
says this is essential to Kensington's success in
• the use of a hospitality box, with space to seat
the European Cup.
10 people.
133
ACTIVITY FILE

6 Risk, Case study, page 59

Director 2
The security risk
The country has been unstable for many years. There have been civil disturbances in the area recently.
There was a demonstration calling for the release of a rebel leader currently in jail.
In some countries in the region, mining companies have been attacked by gangs of robbers,
and some workers have lost their lives.

5 Job satisfaction, Starting up, Exercise D, page 44

Are you i n d anger of burning out? 4 There is a rumour going around that a proposed
company merger may mean some job losses.
You're turning up for meetings at the right time, but Do you:
in the wrong week. You're pouring milk into a) take a cursory glance at the job adverts
the wastepaper basket rather than your coffee. in the paper and look for your CV?
You've Jost your temper with half of the office, and b) bite your nails until your fingers hurt?
the other halfare cowering under their desks. You c) find yourself hyperventilating?
could be suffering from burnout, a debilitating
condition caused by working too hard for too long 5 It's bedtime and you are exhausted after a
and failing to prioritise. Try this quiz to see if stressful day at the office. Do you:
you are in danger of se/f-combusting. a) lie awake for two hours, then make a start
on next week's assignment?
1 Your boss asks if you can work late for the third b) lie awake for five minutes, then sleep right
night in a row. Do you: through until morning?
a) say yes without giving it a second thought? c) lie awake for one hour, then read for a while
b) laugh politely and close the door on your way until you fall asleep?
out? 6 Some colleagues ask if you could help them with
c) say yes, but feel like crying? a problem, but you're in the middle of a project
2 Some of your colleagues want to play a practical with a tight deadline. Do you:
joke on your boss for April Fool's Day. Do you: a) schedule some time in your diary to work with
a) organise a brainstorming session to select the them when you're free?
best idea? b) agree to help, but become irritated when
b) tell them that there are more important things they don't grasp the solution straight away?
to be done? c) tell them to speak to someone who cares?
c) go to your boss and tell them what they are 7 There are a lot more things on your 'to do' list
planning to do? than you realistically have time for. Do you:
3 You arrive home one Friday night with a pile of a) divide the items into 'urgent' and 'important'
work only to discover that your partner has and start with the urgent things?
arranged a surprise weekend away. Do you: b) pick out the easy tasks and start with them?
a) leave the work behind and take Monday c) work overtime until they're all done?
off to catch up? 8 An old friend you haven't seen for ages asks
b) tell him/her that you're sorry, but you can't you to go out for a meal. Do you:
afford the time? a) have a fantastic evening of reminiscence?
c) agree to go, but insist on taking the work b) refuse the invitation as you are always too
with you? tired to go out on weekdays?
c) accept the invitation, and spend the evening
telling them all about your job?

Check your score on page 143. from The Guardian

8 Team building, Skills, Exercise D, page 79

Student B
You are a member of the team. You meet your team • You do most of the boring paperwork for the
leader to discuss your performance at work. You are accounts while your colleagues are given more
unhappy for these reasons: face-to-face contact with clients. You are not
• You feel you are working harder than everyone happy with how the workload is being distributed.
else. You are always the last to leave work. • You think the team leader is too young and
• Your hard work is not recognised and appreciated inexperienced, and is not managing the team well.
by the team. This is the main reason why you are unhappy.
• You recently married and are missing your partner
and young child.
134
 ACTIVITY Fl LE

6 Risk, Case study, page 59

Director 3
The health risk
Mining the area could result in workers and inhabitants suffering from skin diseases because
of industrial emissions.
The water in nearby wells is being contaminated, so they can no longer be used for drinking water.
Site waste and debris are contaminating the soil in the area.
These hazards could involve expensive legal costs for WCM, as well as heavy expenditure
to remedy the problems.

5 Job satisfaction, Reading, Exercise B, page 46 Article B

KPM G 'KPMG makes me tee! empowered. I am taken seri­

ously and I can make choices about my own career,'
25 Hamid says. ' ] am now using my experience proactively
Audit, tax and advisory services and to the benefit of the organisation.'

Annual sales f1,607m Employees say managers help them to fu l fi l their

Staff numbers 11,788 potential (a 70% positive score) and agree that the

Male/female ratio 53: 47 organisation is run on strong principles (78% - the top

Average age 34 30 score nationally).

Staff turnover 16% With an overall positive score of 75%, opportunities

Earning £35,000+ 49% for personal growth keep staff happy. The expansion of

Typical job Accountant KPMG Europe has increased opportunities for staff to
work abroad. Its successful scheme to retain talented
The phrase 'work hard, play hard' could have been 35 women encompasses Reach, a project aimed at cncour-
invented for Sue Day. a high-nyer at financial services aging women to become middle managers. It also has a
giant KPMG. The Corporate Finance Manager spends programme for its own emerging leaders to help them
her working clays getting the best out of her talented move up to the next level.
team, but KPMG makes sure she also has the time avail- Staff find their work stimulating (73% ) , agree training
5 able to pursue her sporting career. 40 is of great personal benefit (74%) and believe the experi-
'KPMG recognises that if it looks after people. it will cnce they gain is valuable to their future (83%), all top
get more out of them.' says Day. who has been with the scores nationally.
firm for 1 2 years. ' It is difficult to juggle the training and When i t comes to giving something back, KPMG has
the competition of an international sport with a job. I 'vc an impressive record. Last year, more than 4,500 staff
10 been here so long because KPMG is so supporti ve.' 45 contributed 43,000 hours to serve the community, help-
Jt's that kind of caring culture that has seen KPMG ing it gain a score of 64%, again better than every other
top our list for the third time in four years. And its almost firm. A l l staff can use half a day of company time per
1 2 ,000-strong workforce seems to agree with Day"s month to volunteer.
assessment, according to our 66-point employee ques- As far as pay and benefits are concerned, KPMG staff
15 tionnaire. The company has top-ten results for 48 50 are the most satisfied on our list (67%). The company has
questions, and ten of those are the best scores nationally. a nexible benefits scheme, including childcare vouchers,
Corporate Citizenship Manager Uzma Hamid wanted medical insurance for the whole family and the opportu­
to expand her career options and perhaps work abroad. nity to buy up to ten days' additional holiday. There are
She was given carte blanche by her manager and found occupational health and employee assistance pro­
20 a four-month secondment with the United Nations Glo- 55 grammes, and an 1 1 .9% contribution by the firm to the
bal Impact initiative, which she says was ' l ike eve1yone's pension scheme. Employees feel they are paid fairly for
dream if you work in corporate social responsibi l i ty ' . the work they do relative to their colleagues, too (62%).

from The Sunday Times, copyright © The Times, 2009, www.nisyndication.com

Working across cultures 3, Task, page 91

Manager D
You think:
• • team members should contact the team leader
the team leader should change every six months
in rotation around the team, as this is the fairest by e-mail to resolve any problems.
• any bonus should be for the whole team and
way and will involve the most people.
• the six team leaders should make the decisions. be paid at the end of the project.
• there should be one initial face-to-face meeting to • all team leaders (six people) should attend
assign roles and videoconferences every time the a cultural training course.
team leader changes.

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8 Team building, Case study, page 81

Director 4
You want to:
• hear the opinions of the other directors before • replace Max with one of the other sales reps.
making up your mind. You are not sure whether He is not a dynamic person and has a poor record
to keep David Seymour or not. at getting new business.
• appoint Sonia as manager if the other directors • insist that Hank attends a course to improve his
think David should go. Sonia is tough, talented interpersonal skills.
• to think of other suggestions for improving the
and dynamic, just what the team needs as a
leader. She's also a very good communicator. performance of the sales team.

6 Risk, Case study, page 59

Director 1
The exploitation risk
The 80-acre Kango site is located in the south-west of the country. Sites near Kango have
previously produced good quantities of copper and basalt.
One site, just 50 kilometres from Kango, has produced large quantities of coltan, a precious
metal used in many consumer electronic products, such as cell phones and DVD players.
Another site, 85 kilometres from Kan go, has proved to have diamond deposits.
Geologists reports say that the site has potential, but there is no guarantee the deposits
will be profitable.

8 Team building, Starting up, Exercise B, page 74

Score 1 point for each of the following answers: 18-24 poi nts
Doers vs. Thinkers: a, d, f You are definitely a creative type. You value original
Mind vs. Heart: a, b, d ideas over detailed planning. You are likely to show
Details vs. Ideas: b, d, e consideration for others. You can get bored easily and
Planners vs. Improvisers: a, c, e sometimes need to be under pressure to get results.

Score 2 points for each of the following answers: 12-17 points

Doers vs. Thinkers: b, c, e Clear thinking and careful planning are of great
Mind vs. Heart: c, e, f importance to you. You are not afraid of challenging
Details vs. Ideas: a, c, f others in order to get results. You are likely to be
Planners vs. Improvisers: b, d, f ambitious and well organised.

8 Team building, Skills, Exercise D, page 79

Student A
You are the team leader. You meet a member of your team who is uncooperative and unhappy.
Find out what the problems are and try to offer solutions so that the employee performs better
as a member of your team.

8 Team building, Case study, page 81

Director 1
You are the leader of the meeting. You want to:
• get rid of David Seymour by asking him to • replace him with a new person from outside the
resign. You think he has some good ideas for company. A new manager should be
improving sales, but he is not a suitable person appointed - someone with good people skills
to manage the sales team. He's not a and better managerial ability.
'people person'. He's been given more than • discuss David's proposals and find out what the
enough time to turn things round. other directors think about them.
• think of some other ways of motivating the
sales staff and improve team spirit.

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Working across cultures 3, Task, page 91

Manager B
You think:
• there should be one team leader for the whole • there should be monthly teleconference calls to
three-year project who should keep people up to date and deal with
not change. This will keep the team stable. any problems.
• the team leader is in charge and should make • there should be individual bonuses to motivate
the decisions. team members. These should be
• the team should meet face to face at the start paid each year.
of each year to plan for the next year. • all team members should attend a one-week
cultural training course at head
office in the Netherlands.

9 Raising finance, Skills, Exercise E, page 87

Student A
You are the business owner. You want to: In return, you expect to:
• get an equity investment of €500,000 to extend • offer the angel a 25% stake in the business.
the range of your products and enter a new • give the angel a seat on your board of directors,
overseas market - France or Germany. with voting rights.
• keep a shareholding of at least 50% so that you • offer the angel a 10% share in the profits of any
continue to own and control your business. future business development.
• get management advice from the angel when Negotiate a good deal for your business.
necessary.
• keep control over recruiting senior managers.

9 Raising finance, Case study, page 89

Group A
Filmmakers
1 Financial terms 5 Cinematographer/1•1 and 2nd camera assistant
• First, find out if Concordia are happy with • Colleagues from the film-studies course will
the detailed budget you sent them. undertake these duties - fees to be paid from
• After repaying 100% of Concordia's investment future profits.
(€1 million) within five years, you will then 6 Actors
share the net profits of the film on a 60/ 40 • Two of the main characters will be unknown
basis (60% for you, 40% for Concordia). actors. The third main character will be played
Your budget is based o n keeping costs by a friend of Cha rles's who is a famous
as low as possible. actor in Europe and will perform in the film
2 Film title/location for a low fee.
• Your title All for one is perfect. Everyone you 7 Marketing and promotion
have asked loves it. Paris is the ideal location • Concordia should pay for all the costs of
for the scenario. marketing and promoting the film.
3 Payment of instalments 8 Product placement
• You want the investment to be paid in full at • No product placement, if possible
the pre-production stage.
9 The way the film ends
4 DirectorI scriptwriter I music • The ending is important. It must be 'bitter
• Cha rles will direct the film; Gunnar has already sweet'. None of the three women get what
written an excellent script and will write the they want, but their friendship is stronger than
music for the film. He received a prize in the ever. In the final shot, they sit around a table
film-studies course for a musical score he in a cafe and put their arms around each other.
produced for a ten-min ute film. The camera zooms in, they all have thoughtful
expressions on their faces.

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8 Team building, Case study, page 81

Director 3
You want to:
• move David Seymour to another department in the • keep Hank in the sales team. You are Hank's
company. closest friend - you went to school together.
• replace him with another member of the sales He is a difficult person, but a top-class salesman.
team. Chang might be a good choice. • reduce the sales team to five members and make
• have a department meeting every two weeks, led the others work harder and be more productive
by the new manager. Everyone should (you decide who should go).
be encouraged to express their opinion. • reorganise the sales team (you decide how).
• think of other suggestions for improving the
performance of the team.

10 Customer service, Vocabulary, Exercise D, page 97

Group B: Dealing with customer complaints

1 Keep a n open mind at all times.
2 Do not end up arguing with the customer.
3 Do not be defensive.
4 Concentrate on the situation, not the personalities.
5 Don't force your solution on the customer.
6 Try to find out what result the customer wants.
7 Tell the customer what you can and cannot do.
8 Offer compensation of greater value than the goods or service complained about.

11 Crisis management, Skills, Exercise C, page 109

Student A
You are the presenter of the TV programme. Several • the vinyl coating on the electrical cord gets too
consumers have contacted you to complain about the hot, so the cord bursts and melts. As a result,
lamp, code-named BX 1 50, sold by a local electrical in some cases, materials near the lamp have been
appliances manufacturer. set on fire.
• the bulbs in the lamp sometimes explode, which
They say:
• the lamp overheats very quickly, which has caused could harm people's eyes.
some users to burn their hands. Try to persuade the company to recall all the lamps
or to resolve the problem in a satisfactory way.

11 Crisis management, Case study, page 111

Group A
You are Directors of ExtremAction. Your objectives 1 Hold a meeting to discuss what actions you will
are to: take to deal with the situation.
• defend your game Here are some possible actions. Add any others
• work out an action plan to deal with the crisis you can think of.
• handle the journalists' questions. • Postpone the launch until people have
Your team will be lead by the Chief Executive of the forgotten about Carl's report.
• Withdraw the game and make it less violent.
company. You will support her /him at the press
• Defend the game and go ahead with the launch
conference and answer journalists' questions.
as planned.
2 Try to predict what questions the journalists
will ask and prepare answers to them.
3 Decide on an action plan to deal with the crisis.
Be prepared to tell the journalists what you
have decided.

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9 Raising finance, Skills, Exercise E, page 87

Student B
You are the business angel. You want to: In return, you expect to:
• invest €1 million of equity capital in the herbal • have a 55% stake in the business.
tea products business. • be offered a seat on the board of directors,
• help to expand the business in Europe and the with voting rights.
United States. • have a 30% share in the profits of any future
• provide excellent contacts with sales outlets in business development.
France and Germany. • advise on future recruitment of senior managers
• put the owner in touch with other potential as the business expands.
investors in the business.
Negotiate a good deal for yourself.
• encourage the manufacturer to grow the business
internationally.

Working across cultures 1, Task 1, page 30

Suggested ranking
1 Setting up a take-out business rather than offering customers pizzas in an
American-style restaurant with an attractive decor.
2 Not adapting the business model to the Chinese market.
3 Not making sufficient use of David Li's business knowledge.
4 Selling a product that was unsuitable, as it didn't appeal to Chinese tastes.
5 Gaining a reputation for unreliability because of late deliveries.
6 Making the pizzas too expensive compared to those of the competition. They were not
considered value for money.

Working across cultures 1, Task 2, page 31

1 In India, it is likely that there will be some general discussion before people get down
to business. Such discussion helps both sides to get to know each other better.
2 Decision-making may take longer in some Asian countries than in Western ones. It's
important to be patient and not become frustrated by the slower pace of discussions.
3 Foreigners doing business in India should look for long-term benefits rather than
short-term advantages.
4 Indian people need to trust those they are doing business with. They need to feel that
the other side is sincere.
5 It takes time to build up relationships with business contacts in India.

Working across cultures 3, Task, page 91

Manager A
• You will lead the meeting and you should make • You know that the company does not want to
sure the agenda is followed. spend a lot of money on cultural training courses
• You have an open mind about the items on the and is not keen on bonus schemes.
agenda, so you should listen carefully and try and Encourage the other managers to give their opinions
see the different points of view. and reasons for their ideas.
• You are keen that the three-year project should
run smoothly and avoid problems once the team
is working together.

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ACTIVITY FILE

Working across cultures 4, Task, page 121

Pair B
1 Look individually at the points to consider in 1 Avoid an agenda. Let the negotiation develop
an international negotiation listed on the right naturally.
and add two more. 2 Ask a lot of questions to find out the position of
2 Choose the five most important points from the other side.
your list. 3 Try to disguise what you really want.
3 Talk to your partner and agree the five most 4 Be prepared to walk away without a deal.
important points. 5 Never compromise on your key points.
4 Join up with Pair A and try to agree the five most 6 Be careful not to let the negotiation break down.
important points from your two lists. 7 Make no concessions until the end.
8 Make sure you 'win' the negotiation and get the
best possible deal.

6 Risk, Case study, page 59

Director 4
The economic risk
The cobalt and bauxite markets are booming at present, but the industrial metals market internationally
is volatile. The stock-market prices of some smaller mining companies have been falling.
The slowdown in the Chinese economy is continuing to have an effect on commodity prices.
There will be a general election in the country in six months' time.

1 Commun ication, Skills, Exercise F, page 1 1

Student B
Role play 1 Role play 2
You are expecting a call from an overseas subsidiary You are the Marketing Manager of an electronics
confirming the details of a visit to your head office company. You phone an overseas agent to discuss
next month. You have been given some information by plans for advertising the company's new range of
a colleague, but are not sure if it is correct. up-market coffee machines. You and the agent have
Names of visitors: Bargaster? and Paz? various ideas for promoting the sales of these items.
Contact number: 06875 413870? Try to agree on a suitable advertising strategy.
Flight details: BA 3765 arriving at 17:10 on the Note: You are on your mobile phone and the battery
12th May? is low, so check all the details carefully.
Hotel: Hi lton Plaza (12th-14th May) You want to:
Note: You have a rather quiet telephone voice. • place special advertisements for the new products
in lifestyle magazines
• have some in-store promotions and
demonstrations at department stores
(once a week for three months)
• advertise the products on buses, trams and i n key
outside locations (billboards)
• make sure the products are exhibited at a trade fair
• contact a local marketing consultant for advice
on viral marketing:
Markus Kaufmann, tel: 01782 550378
E-mail: [email protected]
You will contribute €60,000 towards the cost of the
advertising. You expect the agent
to contribute €40,000 towards the cost of advertising.
While doing the role play, practise some of the
expressions you can use for dealing with breakdowns
in communication.

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 ACTIVITY F l LE

5 Job satisfaction, Skills, Exercise F, page 49

Student A
Headhunter
Use this information to persuade the TV Producer to discuss the offer further.
The job: TV Producer at Barnard Media - a top company in the industry
Salary: Around €180,000 pa + bonus - negotiable
Main benefits: Insurance paid by company; top Mercedes car
Working hours: Usually 40 hours a week
Vacation: Six weeks a year
Office location: Five minutes from mainline station
Add any other information you wish.

4 Success, Case study, page 43

Universal Communications negotiating team

Your negotiating objectives are listed below. Keep them in mind when you plan your
strategy and tactics. You want:

1 A four-year contract worth €50m 5 Approval of Kensington's new ventures

In addition to €50m in sponsorship, you could If KU wants to diversify into other businesses,
offer Kensington (KU) an additional €20m if the UC should be consulted. The new ventures must
club wins the European Cup. Decide how much you be in keeping with the company's image.
wish to pay each year and when payments will be 6 Cancellation of Kensington's deal with Sprint pie
made. If KU play badly and have to drop down to You have learned that Kensington plans to make
the next division, the sponsorship deal should be a sponsorship deal with Sprint pie, a football boot
renegotiated. manufacturer. You insist that their players must
2 Maximum advertising at the football ground use the football boots made by a small firm you
• Four huge billboards advertising the company have just bought.
at the sides and ends of the ground 7 Use of a hospitality box
• The company's logo on flags at all entrances Two hospitality boxes at the ground should be
• The main stand to be renamed 'The Universal provided for the exclusive use of UC staff and guests.
Communications Stand' There should be space for at least 30 people.
• The company's name on the surface of the
pitch (playing area) You can offer KU:
• a sponsorship package worth €50m;
3 Maximum promotion by players of KU • good exposure in China and India because
• Players wear the company's logo on their shirts. of the group's strength in those countries;
• The team's shirts and shorts should have blue • perks, for example:
and black stripes - UC's corporate colours. - a car with the company logo on it for all
• The two top goal scorers should do a minimum first-team players
of 2 5 days' promotional work a year for UC - free travel to holiday destinations
(other players 1 5 days). - cheap loans for apartment/house purchase
4 Crowd control - media training courses for players to improve
KU is totally responsible for controlling spectators their presenting and interviewing skills
at its home games. Any investment in crowd - financial help for older players to attend coaching
control should be paid for by the club, not UC. If courses or obtain academic qualifications;
there is any serious disorder in the crowd, the club • a financial contribution of €5 million towards
should pay a penalty of €1 million to the company the cost of a new player.
for each incident.

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ACTIVITY FILE

8 Team building, Case study, page 81

Director 2
You want to:
• keep David Seymour as manager. You are a close • have fewer reports, meetings and web
friend of David's. You think he's an excellent communications, so that the sales reps can focus
manager of a difficult team. He just needs more on increasing sales and looking after customers'
time to put things right. needs.
• send David on a management training course • think of some other ways of motivating the sales
which focuses on team building. staff and improving team spirit.
• get rid of Hank. He is rude and immature, and
upsets the other members of the team.

3 Building relationships, Skills, Exercise D, page 27

Student B
Role play 1 Role play 2
You are a Canadian supplier of shellfish. A US You are a speaker at a conference. You sit down
restaurant owner phones you. You have never met next to one of the participants. You think you may
the caller, so get more information about the person have met the person before, but you're not sure.
and his company. 1 Show interest when they introduce themselves.
1 Find out how the owner heard about your 2 If they want you to give a talk at their company,
business. find out what date they have in mind and mention
2 Do not offer to supply the owner, as you have too that your fee for an afternoon session is $2,000 +
many orders at present and are under-staffed. transport costs.
However, it may be possible later.

6 Risk, Case study, page 59

Director 5
The financial risk
The exchange rate of the local currency is fluctuating.
WCM will need to invest in expensive new machinery to exploit the site. The company will
need to borrow money, in addition to using the proceeds of the share offer to finance the
development of the site.
The transport services within the country are not reliable, which could increase the costs
of mining the site.

4 Success, Skills, Exercise E, page 41

Student B
You are the Chief Buyer for the Swiss retailer. You want the manufacturer to agree to the following:
Delivery time: Two weeks after receiving order
Place of delivery: Individual retail outlets (16 around the country)
Price: Top-of-the-range briefcase: €500
Medium-priced briefcase: €270
Colours: Black, brown, maroon, pink
Payment: Two months after delivery
Discount: 10% for orders over 200
Returns: All unsold briefcases returnable up to one year after order

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 ACTIVITY FILE

5 Job satisfaction, Starting up, Exercise D, page 44

Are you in danger of burning out? 19-24 points

Key The Olympic flame is more likely to burn out than you.
1 a) 2 b) 3 c) 1 You glow gently when necessary, but rarely get above
2 a) 3 b) 2 c) 1 Gas Mark 3. This is because your stress levels are
3 a) 3 b) 1 c) 2 comfortably low and you know what to do at the first
4 a) 3 b) 2 c) 1 sign that things are getting on top of you.
5 a) 1 b) 3 c) 2 1 1-1 8 points
6 a) 3 b) 2 c) 1 You are smouldering slightly, and any spark could set
7 a) 3 b) 2 c) 1 you off.You may not think that you are a candidate for
8 a) 3 b) 2 c) 1 burnout, but you are heading in that direction. Try to
develop your life outside work, and if it's the job itself
that's causing the problem, think about looking for a
new one.
8-10 points
It is simply a matter of time before there is a little pile
of white ash on the chair where you used to sit. Take
some positive action to prevent total burnout before
it's too late. Prioritise, delegate, improve your time
management and, above all, ask for help immediately.

5 Job satisfaction, Skills, Exercise F, page 49

Student B
TV Producer
You are very happy in your present job and have a great group of colleagues.
The offer must be exceptional to persuade you to change your job.
Your present situation:
Position: TV Producer, Universal Entertainment
Salary: €140,000 pa + bonus, depending on company performance
Main benefits: Working in a beautiful building overlooking the river
Big discounts on theatre and cinema tickets
Working hours: Very long: start at 6 a.m., finish late.
Vacation: Four weeks a year
Office location: Office not very accessible; takes one and a half hours to get to work

Working across cultures 3, Task, page 91

Manager C
You think:
• the team leader should change each year (i.e. • e-mail contact should be encouraged between
three different team leaders). This will help team members. Time differences need to be
to motivate the team. considered, so replies may take longer.
• the whole team should be equally involved in • there should be d ifferent bonus schemes
decision-making. operating for team leaders and team members.
• the team should meet face to face every six month These should be paid every six months.
to review progress and deal with problems. • only team members with less than three years'
experience in the company (four people)
need to attend a cultural training course.

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ACTIVITY FILE

9 Raising finance, Case study, page 89

Group B
Concordia (independent distribution company)
1 Financial terms 5 Cinematographer/ 151 and 2"d camera assistant
• You want to be repaid 120% of your investment • You want to hire an experienced professional to
(€1.2 million) within five years of the launch be cinematographer, not someone from the film­
of the film + a share of the net profits on 70/30 studies course. You are willing to use students
basis (70% for you, 30% for the filmmakers). from the course as camera assistants. Hiring a
You r reasons are: professional will involve extra production costs.
- the two filmmakers have no experience of 6 Actors
making feature films • The main characters should be top film actors
- it is essential to use well-known actors in all from the countries concerned. You will persuade
main roles them to take low salaries but offer them a share
- there are other costs that the filmmakers of the film's profits.
have not considered (see below). • Hiring top professional actors will add to
2 Film title/location production costs but greatly increase profits.
• You prefer the title Friends forever. It emphasises Part of the increased cost will come out of the
the main theme of the film. film's profits.
• Berlin is a better location than Paris. The city is 7 Marketing and promotion
less well known and therefore the sites where • 10% of the budget should be retained to cover
the action takes place will be more interesting marketing costs.
and mysterious. 8 Product placement
3 Payment of instalments • This is a great opportunity for you to make
• 20% when pre-production begins money from the film. You believe you could
• 50% at the start of the production stage persuade at least eight companies to place their
• 20% at the beginning of post-production top brands in the film.
• 10% will be reserved for marketing and 9 The way the film ends
promotion • You want an upbeat, happy ending. One of the
4 Director/scriptwriter/music women, Fabiola, should meet and marry the
• You are happy for Charles to be Director and you Frenchman of her dreams. The final shot should
approve Gunnar's script. be of her kissing the bridegroom at the marriage
• You want to have a highly commercial ceremony.
soundtrack by a famous band. This will add to
the production costs but also to the profits.

11 Crisis management, Skills, Exercise C, page 109

Student B
You are the Sales Manager of the furniture company. • the vinyl coating of the cord is top quality and
The lamp is your best-selling product. It is a beautifully very thick. You are surprised to learn about this
designed item which costs $60 in the stores. problem and will look into the matter.
You know that: • the bulbs in the lamps have been supplied by
• the lamp could overheat if it was left on for many a top-quality electrical goods manufacturer.
hours. You believe that a competitor paid a reporter to write
• there is a warning label on the lamp not to leave it
the harmful report.
on for more than six hours.
You have been selling the lamp for two years to
• as far as you know, there have been only two retailers and have had almost no complaints.
incidents when users have burnt their hands. This Try to make a good impression in the TV programme.
was because they were careless.
Do not agree to recall the product.

10 Customer service, Vocabulary, Exercise D, page 97

Group A: Dealing with customer complaints

1 Show the customer you are listening by checking that you understand.
2 Allow the customer to show their emotions if they are upset or angry.
3 Say you are sorry that the customer is upset.
4 Admit that the problem was your fault as soon as possible.
5 Make sure you get full details of the problem.
6 Summarise and make sure that the customer understands what you have said.
7 Ask the customer to put the complaint in writing.
8 Be firm if you are sure of your facts.

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11 Crisis management, Case study, page 111

Group B
You are journalists. Your objectives are to: 1 Work in small groups. Choose a newspaper,
• ask probing questions to find out how the whether American or foreign, that you represent.
company is dealing with the crisis. Prepare some questions you would like to ask the
• gather information so that you can write a Directors of ExtremAction.
powerful and accurate article in your newspaper. 2 Work as one group. Choose the best questions
You want to start a lively debate in the and decide who will ask each one.
correspondence columns about In Range. 3 When you ask questions at the press conference,
• get the company to answer questions about make sure you 'follow up' questions. Don't let the
excessive violence in computer games, as you Directors give you vague answers.
know many of your readers are very worried 4 Take notes on the Directors' answers so that you
about the effects on their children of violence i n can write an article about this press conference.
computer games.

7 Management styles, Reading, Exercise B, page 68

Student B

Jim Buckmaster
and we were told what to do in many How do you motivate people?
10 different ways, and I developed a very 'One of the wonderful things about
anti-authoritarian mindset by the time I working at Craigslist is that the company
was put in a position of authority. The last 35 philosophy and approach is such that
thing I wanted to do was reproduce all of people generally feel very good about
those things that I had disliked so much. working there. Because we have a
15 Such that our employees aren't really told non-traditional philosophy - it is very
what to do, or when to do it, or when to public-good centric - people feel good
come into work, or what they can wear, 40 about coming to work . . . We are also
and we don't set deadlines at all - unless very careful in hiring people who are a)
they are set for us by some external force talented and b) self-motivated. Then once
20 like a regulatory agency. I don't think that we have people who fit that description,
artificial deadlines are a good idea. They I've always found that it is just a matter of
just create stress where it is not needed.' 45 letting them do their work.'

So there is no management? And you really don't hold meetings?

What is the office atmosphere like? 'We do have a hierarchy, we do have 'Of all the meetings that I've gone to in the
'We don't really have the arcade games, 25 managerial positions, but I personally past, virtually all of them, I've felt, were
fussball, ping-pong tables or that sort of don't like trying to impose my will on kind of useless. I don't like closed-door
thing, but I guess it's a cosy kind of non- someone else or trying to hold it out that so meetings because they always mean
s corporate atmosphere, it just feels like I'm in a position of authority. I hold that something bad is going to happen.'
you're sitting i n a house, and there's no in reserve as an absolute last resort, and
dress code. I spent a lot of years working 30 certainly years go by when I don't have to
in organisations that were regimented exert that kind of authority.'

from The Daily Times, copyright © The Times, 2008, www.nisyndication.com

Read your article quickly and decide which of these statements are true for the CEO
you read about.
They ...
1 think most meetings are a waste of time.
2 are good at making decisions quickly and firmly.
3 want people to know who is the boss.
4 t h i nk artificial deadlines are stressful.
5 believe in hiring the best staff they can.
6 think their staff feel happy working t h e re.

145
 II idioms II Noun compounds and noun phrases

In the language of business, idioms and metaphors 1 When two nouns occur together, the first
are often used with reference to the domains of noun is used as an adjective and describes
sport, war and gambling. the second noun. The first noun answers the
question 'what kind of?'.
Sport
I don't know the exact price, but $500 is a good a manufacturing subsidiary
ballpark figure ( estimate).
=
a draft agenda
She's smart and really on the ball (= quick to a phone conversation
understand). a network operator
Follow his advice, and it'll be plain sailing 2 Noun + noun compounds can often be
(= easy to d o or achieve). transformed into structures where the second
You don't know where you stand - they keep noun becomes the subject.
moving the goalposts (= changing their aims
an oil refinery (= a refinery that produces oil)
or decisions).
company executives (= executives that work
There must be no unfair competition in the EU, and for the company)
we shall continue to stress the need for a level a travel agency (= an agency that sells travel)
playing field (= a situation that gives no one
an advantage). 3 Noun + noun compounds may also be
reformulated using a preposition.
War
Bill's on the warpath (= very angry) again - market research (= research into markets)
there are mistakes in the publicity material rail transport (= transport by rail)
we sent out. leisure activities (= activities for leisure)
You may have to do battle with (= fight it out with) a web page (= a page on the Web)
the insurers because they won't want to pay up. their Paris store (= their store in Paris)
Manufacturers often feel they are fighting a income distribution (= distribution of income)
losing battle (= making no progress) against 4 The first noun is usually singular.
counterfeiting.
If you can convince the commercial attache here, a five-star hotel (not five-stars)
that's half the battle (= the rest is easy). consumer-purchasing behaviour
(not consumers)
I've been fighting a running battle (= having
a series of arguments) with the financial
risk assessment (not risks)
department, but they won't give us the money. brand names (not brands)
However, some words retain the plural form.
She may want to convince you otherwise, but you
should stick to your guns (= maintain your sales policy
point of view).
needs analysis
She's up in arms (= very angry and ready to fight) 5 Sometimes three or more nouns occur together.
about the lack of safety procedures. line management system
Gambling production research centre
We are trying to hedge our bets (= reduce our travel insurance claim form
chances of failure) and not put all our eggs in Motorola's software development
one basket. establishments
The odds are stacked against us (= there are many Hyphens can be used to avoid ambiguity in
difficulties), but we're determined to succeed. such compounds.
It makes no odds (= makes no difference) whether software-development establishments
we get permission or not, we'll go ahead
6 Noun compounds can be modified by adjectives
anyway.
and adverbs.
They're paying over the odds (= more than it's
worth) for the site, but it's a prime location. inspiring team leadership
We had our doubts about Susan, but she has international business development directors
really come up trumps (= produced good, extremely boring conference presentation
unexpected results). increasingly volatile mobile phone market
Ifyou play your cards right (= do the right thing),
you'll get the promotion.

146
 GRAMMAR REFERENCE

IJ M u ltiword verbs II Present and past tenses

Multiword verbs are formed when a verb is 1 The present simple is used to make true,
followed by one or more particles. Particles can factual statements.
be prepositions o r adverbs. Established customers tend to buy more.
The meaning of a multiword verb is sometimes very Nokia sells mobile telephones.
different from the meanings of the two words taken
2 Verbs relating to beliefs, being, knowledge,
separately.
liking, perception and appearance are normally
How are you getting on ? (get on is not the same only used in the simple form.
as get + on).
I understand what you mean.
• There are two different types of multiword It depends on what the chairman wants.
verbs. I appreciate your concern.
- Intransitive: without an object
3 The present continuous is used to refer to
The plane has just taken off events in progress and temporary or changing
She turned up unexpectedly. situations.
What time did you set off?
- Transitive: with an object
I'll be back late, I'm sitting in a traffic jam.
We will set up a new subsidiary. They're installing a new switchboard.
They have called off the strike. The world is getting smaller.
She has handed in her resignation. 4 The past simple is used to refer to events
•
completed in the past. We frequently use a time
Multiword verbs can have two particles.
expression to say when the event took place.
I'm looking forward to seeing you.
She's trying to catch up with her work. In the late 1940s, Ford decided it needed
We need to make up for lost time. a medium-price model to compete with
General Motors.
• Multiword verbs are either separable or 2001 was a good year for our company.
inseparable.
S The past perfect sequences two or more past
- An adverb particle can come before or after
events.
the object if the object is a noun ...
We've put by some money. Before he joined this company, he had worked
We've put some money by. for two competitors abroad.
... but you cannot put a pronoun after the 6 The present perfect is used to say that a
particle. finished past action is relevant now. There
She's switched offthe computer. cannot be any specific reference to past time.
She's switched the computer off. They have changed the address of their
She's switched it off
website. (It's new.)
(NOT She'ss�·.�tchedeffit) The share price has plummeted. (It is lower
lf the particle is a preposition, the verb and than before.)
particle are inseparable.
Can you cope with your work? 7 The present perfect covers a period of time
(NOT CerJfBtJCBfJey-BtJrwerkwith?) starting in the past and continuing up to the
present. An appropriate time expression takes
• We do not normally separate multiword verbs
us up to now.
with two particles. However, there are some
transitive t h ree-word combinations that allow
So far, the company has defied predictions that
separation.
its rivals will catch up.
Stella McCartney has been one of the leading
Multinationals can play individual markets fashion designers since the mid- 1990s.
off against each other. He's been acting strangely latelv.
She puts her success down to hard work. Over the lastfewyears, e-commerce has
I'll take you up on that suggestion. become fashionable.

147
GRAMMAR REFERENCE

II Passives II Adverbs of degree

We use the passive when the person who performs 1 If we want to amplify the quality an adjective
the action is unknown, unimportant or obvious. describes, we use an intensifying adverb. These
The file was stolen. are some of the most common.
The roof was damaged during the storm. The presentation was really;Very good.
She's been given the sack. She's dead certain to get the job.
The new design looks pretty good.
1 The passive can be used in all tenses and
I was extremely surprised by her reaction.
with modal auxiliaries.
She's a thoroughly efficient organiser.
A new fitness centre is being built.
The job was going to be done on Friday. 2 The relative strength of adverbs is shown on
He had been asked to do it twice before. this scale:
She may be required to work on Sunday. Strong: absolutely, a/together, awfully,
The best employees should be given a completely, greatly, highly, quite, terribly,
performance bonus. totally, very
He would have been told eventually. Moderate: fairly, mildly, moderately, partly,
2 If we know who performed the action quite, reasonably, somewhat
(the agent), we use by. Weak: a bit, a little, marginally, poorly, slightly.
The file was stolen by a secret agent. The whole thing is quite amazing.
The goods are reasonably cheap.
3 In a passive sentence, the grammatical subject I was slightly surprised by what she said.
receives the focus.
Note that quite also means fairly.
a) Giovanni Agnelli founded Fiat in 1899.
The restaurant is quite cheap, but the food
b) Fiat was founded by Giovanni Agnelli in
1899.
isn't wonderful.
In a), our attention is on the agent - Giovanni 3 Intensifying adverbs modify adjectives that are
Agnelli. In b), it is Fiat rather than Agnelli that grad able that is, they can signify degrees
-

is the topic of the sentence. of a given quality. Adjectives that are not
gradable or identify the particular class that
4 The subject of the sentence can be a pronoun. something belongs to are not normally used
We were informed that the firm was going to with intensifying adverbs. We cannot say:
be taken over. e�
·eyt
r mi
q tJ
eiti
e e

5 Passive constructions are common in formal ef

tJfrly{Feegift
contexts, for example in reports or minutes, e�
· ·i
er
1 mpessih.'eseltitfen
and they help to create an impersonal style. sernes/
1'-§
Ntl
ffi
neneielnews
Using it as a subject enables us to avoid
4 However, you can use an adverb such as
mentioning the person responsible for saying
absolutely o r utterly with an ungradable or
or doing something.
classifying adjective to show that you feel
It was felt that the system needed to be strongly.
changed. It doesn't cost anything - it's absolutely free.
It was decided that expenditure would be
The task is utterly impossible.
limited to $250,000.
It was suggested that staff be given stock
options.
It was agreed that the proposal should be
rejected.

148
 GRAMMAR REFERENCE

IJ Text reference IJ Modal perfect

Read this text and note how certain words refer 1 We use past modals to speculate about events
forward and back to other words in the text. in the past.
Although more women are becoming sales I thought I saw Yolanda in the car park, but it
managers, they'll have to tailor their management may/might/could have been someone else.
styles to the gender of their employees if they The project might/could have been a terrible
want to have continued success. According to a failure, but turned out to be a great success.
study carried out by John Doyle and Jill Harris of (We know it was a success, therefore may is
the University of Hull, both female and male sates not possible here.)
personnel welcome the newcomers. But it also I wasn't there myself, but from what I hear, it
points out that there can be a difference between must have been a very stormy meeting.
the management style males prefer and the one She says she met me in Brazil, but it can't have
that elicits their best performance. been me because I've never been to Brazil!
In particular, the researchers wanted to discover 2 Past modals can also be used to express
differences in satisfaction and variations in irritation.
sales performance under female supervision. She could/might have given me the
Two management styles were identified. A information, but she didn't bother.
transactional style is the more traditional of the
two. Mate managers are hands-off until something 3 Missed opportunities are also expressed using
goes wrong. The philosophy is 'When you're doing could or might.
OK, you won't even know I'm around. But, when She could/might have had a brilliant career,
you mess up, I'll be right next door.' but she gave it all up for love.
Women take a more hands-on approach. A
4 Would have and wouldn't have are used to
transformational mode encourages a more hands­
make hypotheses about the past.
on, individual-orientated manner. Women more
than men tend to motivate by encouragement and The team would have been stronger ifshe had
personal attention. The former relate to their staff been with us.
emotionally and tend to foster new ways of thinking, We wouldn't have achieved such good results
whereas the latter rely on rewards and punishments. if we hadn't worked together as a team.

Grammatical reference
5 Should have, shouldn't have and ought to have
are used to criticise.
In paragraph 1 :
• they/their/they refer back to women The report should have been submitted a Jot
• it refers back to a study earlier.
• the one refers back to the management style. He shouldn't have resigned without having
In paragraph 2 :
another job to go to.
• the two refers back to two management styles You ought to have made a reservation - there
• you/you/you refer back to any employee are no seats left now.
working under a male manager 6 Note the difference between needn't have
• I refers to the male manager. and didn't need to.
In paragraph 3: I didn't need tocome into the office because
• the former refers back to women there was no work for me to do, so I stayed
• the latter refers back to men. at home.
Lexical reference I needn't have gone into the office because
Very often in texts, words belonging to the same there was no work for me to do when I
family, and synonyms and antonyms occur closely got there.
together.
gender ... men ... women, male ... female
John Doyle and Jill Harris ... the researchers
the newcomers ... women sales managers
employees ... personnel ... staff
differences ... variations
hands-off ... hands-on
something goes wrong ... you mess up ... do OK
style ... mode ... approach ... manner
individual ... personal
encourages ... motivate ... foster
encouragement ... rewards ... punishments

149
GRAMMAR REFERENCE

a Dependent prepositions m Gerunds

1 Here is a list of common verbs and the 1 The gerund is the -ing form of the verb used as a
prepositions that follow them. noun, either as the subject or object of the verb.
complain about insure against react against Selling is all about persuasion.
hint at account for hope for Getting through to the right person isn't
long for opt for pay for always easy.
strive for emerge from stem from
My idea of relaxation is going to a fitness centre.
suffer from invest in result in
bet on insist on re/y on 2 Gerunds follow prepositions.
amount to lead to abject to
We are committed to giving the highest quality.
refer to relate to resort to
We depend on having fast communications.
associate with contend with sympathise with
3 They are often used to begin an item in a list.
2 Some verbs may be followed by more than one
Good leaders are skilled at:
preposition, with a corresponding change in
• fixing goals
meaning.
• motivating people
How did you learn ofhis sudden departure? • producing creative ideas.
I hope you will learn from your mistakes.
The team consists of (= is made up of) two 4 Gerunds can be made negative, used in the
Americans and two Japanese. passive and used with past verb forms.
For her, job satisfaction consists in (= is based It's wonderful not having to get up early
on) having almost no work to do. for work.
3 Here is a list of common adjectives and the Being kidnapped is not a pleasant experience.
prepositions that follow them. He mentioned having met our main competitor.
lacking in aware of capableaf 5 Many verbs are followed by a gerund
representative of contingent on intent on (e.g. admit, avoid, consider, deny, dislike,
reliant an conducive to essential to involve, mention, recommend, risk, suggest).
parallel to prone to susceptible to
vulnerable to compatible with filled with
He denied fiddling his expenses.
I dislike having to eat at my desk.
4 This is a list of common nouns and the She suggests raising the price.
prepositions that follow them.
6 Some verbs are followed by either a gerund
admiration for aptitude for bid for
or an infinitive. The choice of one or the other
demand for need for remedy for
usually leads to a change in meaning.
respect for responsibility for room for
search for substitute for threat to Increased production may mean taking
access to alternative to contribution to on extra staff at the weekend. (= involve)
damage to exception to introduction ta I didn't mean to cause any offence.
reference to resistance to solution to (= intend to)
ban on comment on constraint on He remembered to buy his wife a present.
curb on effect on tax on
(= He didn't forget.)
contrast with dealings with dissatisfaction with
He remembers buying his wife a present.
involvement with relationship with sympathy with
(= He has a clear recollection of this.)

7 The gerund is formed by adding -ing to the

base form of the verb.
She's talking to a client.
However, some gerunds require minor
spelling changes.
• For verbs ending in -e, take away the
e before adding -ing.
He's making some coffee.
• For verbs ending in consonant + vowel +
consonant, double the final consonant
and add -ing.
Is anyone sitting here?
But do not double the final consonant if
it is in an unstressed syllable.
developing, marketing

150
 GRAMMAR REFERENCE

m Conditionals m Prediction and probability

1 We use conditional sentences to make 1 A number of modal verbs are used to make
hypothetical statements and questions. predictions. The modal indicates the speaker's
We'll deliver within 24 hours ifyou order degree of certainty.
online. They will be there by now. (100% certain)
If we order now, will you give us a discount? They won't have any trouble finding our office, they've
been here many times. (100% certain)
The use of if+ will + verb suggests that these
They must have arrived by now. (80% certain)
arrangements are feasible.
They can't have arrived yet. (80% certain)
2 If the proposal is more tentative and possibly They should have arrived by now. {60% certain)
They may/could hove arrived by now. (40% certain)
less feasible, would + past verb forms are used.
They might have arrived by now. (20% certain)
I'd need some venture capital if I was;Were to
start my own business. 2 Conditional statements contain hypotheses
If I got a guarantee for the loan, I would lend about the way the future may turn out.
them the money. If we use solar power, we'll probably save money.
If I had invested my savings in the company, !{you tried harder, you would be able to do it.
I would have made a fortune. 3 The future perfect and the future continuous
predict what will be in progress or will have
3 If the verb is had, were or should, we can
leave out if and put the verb at the beginning. been accomplished in the future.
The sentence is now more formal. By 2050, businessmen will be toking orders from
the Moon.
Had it not been for his help, we would not have By 3000, scientists will hove discovered how to transmit
survived. objects by electronic means.
Were it not for Patrick, we'd be in a terrible
mess. 4 There are a number of lexical expressions of
Should you require any further information, likelihood. These include about to, bound to,
do not hesitate to contact me. going to.
He's tapping his glass - I think he's about to I going to
4 These words are also used in conditional make a speech.
sentences. She's bound to be late, she always is.
We'll meet tomorrow providing/provided (that) The following lexical phrases can be used to
5
no one has an objection.
discuss the future: certain, probable, possible,
Even the best management teams won't be
unlikely or impossible.
successful unless they are given the
There's certain to be more changes in the world's
resources.
weather systems over the next few decades.
You can say what you like as long as you don't It's quite probable that an economic upturn will start
make any criticisms. next year.
Supposing (that) we decide to use the Topsite Maybe there'll be a change of management in the
service, how much would it cost? coming months.
It is unlikely that the retirement age will be increased
5 Mixed conditionals follow a variety of patterns. to 75.
If you need help, just ask. (an offer) It is just impossible to imagine the World Wide Web

If Peter wants to see me, tell him to wait. having serious problems in future.

(an instruction) 6 There are a number of useful time phrases that

If you hadn't invested in e-commerce, our sales can be used to talk about the future.
would be much lower. (This is true now, so In my lifetime, I will see China becoming a dominant
wouldn't have been is inappropriate.) world power.
I would be grateful if you would give me an Before long, the company will decide to merge with a
early reply. (a polite request) bigger company.
In the near future, everybody will be using wind power.
6 These are other examples of conditional In the next ... years, there will be a huge change in the
sentences. way we travel.
Over the next decode, governments will start reducing
Ignore the media, and we'll never be able to
air traffic.
protect our reputation.
By this time next year, I will be promoted.
Tell us what you need to get the job done and By the end ofthis century, the way we conduct business
you'll have it. in the world will be very different from now.
Should you need any further information, Sometime in the next decade/century, man will inhabit
please contact the crisis team. other planets.
Given time, our company can recover from the
current crisis.

151
 assess v. [I, TJ to make a judgement about a person o r
• adjective (adj.) Headwords for adjectives followed situation after considering a l l the information
by information in square brackets, e.g. [only before a
noun] and [not before a noun], show any restrictions on asset 1 n. [CJ something or someone that is useful because
where they can be used. they help you succeed or deal with problems
• noun (n.) The codes [CJ and [U] show whether a noun, asset 2 n. [CJ something belonging to an individual or a
or a particular sense of a noun, is countable (an business that has value or the power to earn money
agenda, two agendas) or uncountable (awareness,
auction n. [CJ a public meeting where land, buildings,
branding).
paintings, etc. are sold to the person who offers the
• verb (v.) The forms of irregular verbs are given after most money for them
the headword. The codes [I] (intransitive) and [T]
(transitive) show whether a verb, or a particular sense audit n. [CJ an official examination of a person's or
of a verb, has or does not have an object. Phrasal verbs organisation's accounts by an expert, to check that they
(phr. v.) are shown after the verb they are related to. are true and honest

• Some entries show information on words that are award 1 n. [CJ 1 an amount of money that is given to
related to the headword. Adverbs (adv.) are often someone as a result of an official decision or judgement
shown in this way after adjectives. 2 something such as a prize or an amount of money
• region labels The codes AmE and BrE show whether given to a person or company to reward them for
a word or sense of a word is used only in American or something they have done
British English. award 2 v. [T] to officially give a prize o r a n amount of money
to a person or company to reward them for what they
have done

account n. [CJ an arrangement between a bank and a backer n. [CJ someone who supports a plan, person or
customer that allows the customer to pay in and take company, usually by giving money
out money; bank account bankrupt adj. not having enough money to pay your debts
accountable adj. [not before a noun] responsible for the bankruptcy n. [C, U] when someone is judged to be unable
effects of your actions and willing to explain or be to pay their debts by a court of law, and their assets are
criticised for them; accountability n. [ U ] shared among the people and businesses that they owe
accounts n. [CJ t he department o f a company that deals with money to
its accounts benefit n. [CJ something, especially money, that an employer
acquire v. [T] 1 to buy a company gives to workers in addition to their normal pay, to
2 to buy part of a company encourage them to work harder or be satisfied where
they work
acquisition n. [C, U] when one company buys another one,
or part of another one benefits package n. [CJ the total amount of pay and all the
other advantages that an employee may receive, such as
actuary n. [CJ someone whose job is to calculate risks, in bonuses, health insurance, a company car, etc.
order to advise insurance companies or pension funds
bid n. [CJ an offer by one company to buy another, or the
admission of liability n. [CJ when a person or organisation value of this offer
accepts legal liability for something
billboard n. [CJ a large sign used for advertising
advertising campaign n. [CJ an organisation's programme
of advertising activities over a particular period of time bond n. [CJ an amount of money borrowed by a government
with specific aims, for example to increase sales of a or an organisation. The government or organisation
product produces a document promising that it will pay back the
money that it has borrowed, usually with interest. The
agenda n. [CJ 1 a list of the subjects to be discussed at a document, which can be bought and sold, is also called
meeting a bond.
2 someone's secret plan or aims, rather than the ones
that they say they have bond market n. [CJ the buying and selling of bonds

agent n. [CJ a person or company that is paid by another bondholder n. [CJ a person or organisation that owns bonds
person or company to represent them in business bonus n. [CJ an extra amount of money added to an
appoint v. [T] to choose someone for a job or position employee's wages, usually as a reward for doing difficult
or good work

168
 GLOSSARY

[T] to increase something such as production,

boost 1 v. commission n. [C, U ] 1 an amount of money paid to
sales or prices someone according to the value of goods, shares,
bonds, etc. they have sold
[singular] something that helps to increase
boost 2 n.
2 an official organisation that ensures that the law is
something such as production, sales or prices
obeyed in a particular activity
brainstorming n. [U] a way of developing new ideas and
commodity n. [C] a product that can be sold to make a
solving problems by having a meeting where everyone
profit, especially one in its basic form before it has been
makes suggestions and these a re d iscussed
used or changed in an industrial process. Examples of
brand n. [C] a name given to a product by a company so commodities a re farm prod ucts and metals.
that the product can easily be recognised by its name
com pensation n.[U] an amount paid to someone because
or its design
they have been h u rt or harmed
brand image n. [C] the collection of ideas and beliefs that
compensation package n. [C] the total amount of pay and
people have about a brand
all the other advantages, such as stock o ptions, that are
brand name n. [C] the name given to a p roduct by a offered to a company's i m portant managers
company so that the product can easily be recognised
competitive adj. 1 used to describe situations and
by its name or its design
behaviour in which businesses are trying very hard to be
budget 1 n. [C] a detailed plan made by an organisation or a more successful than others, for exa mple by selling their
government of how much it will receive as income over goods or services more cheaply than others
a particular period of time, and how much it will spend, 2 If a process is competitive, people have to compete with
what it will spend the money on, etc. each other, and those who do best will be successful.
budget 2 adj. [only before noun] 1 very low in price - often competitive advantage n.[C] an advantage that makes a
used in advertisements company more able to succeed in competing with others
2 used for saying how much money has been spent on
conglomerate n. [C] a large business organisation consisting
doing something, especially making a film
of several different companies that have joined together
bureaucracy n. [C] all the com plicated rules and processes
consensual adj.[only before a noun] Consensual
of an official system, especially when they are confusing
agreements, plans or actions are ones in which all the
or responsible for causing a delay
people involved agree with what is being done.
involving or having a lot of complicated
bureaucratic adj.
consensus n. [ U , singula r] agreement among a group of
and unnecessary official rules
people
business angel n. [C] a private investor who puts money
consumer n. [C] a person who buys goods, products
into new business activities, especially ones based on
and services for thei r own use, not for business use
advanced technical ideas
or to resell
bust adj. If a business goes bust, it can not continue to
consumer goods n. [plural] goods bought by people for their
operate because it does not have enough money to
own use, rather than by businesses and organisations
pay its debts.
contract n.[C] a formal written agreement between two or
cashflow n. [U] the amounts of money comi ng into and
more people or groups which says what each must do
going out of a com pany, and the timing of these
for the other, o r m ust not do
CEO n. [C] the manager with the most authority in the
control 1 n. [C] 1 If someone has control of a company, they
normal, everyday management of a company. The job
own more than half its shares, or enough shares to be
of CEO (Chief Executive Officer) is sometimes com bined
able to decide how the company is managed.
with other jobs, such as that of president.
2 an action taken to make sure that something does not
chair 1 v. [T] to be in charge of a meeting increase too much
chair 2 n.[singular] the chairman or chairwoman of a [T] to own more than half the shares of a
control 2 v.
company or organisation, or the job of chairman or company, or enough shares to decide how the company
chairwoman should be managed
chairman n. [C] the person who is i n charge of a large convertible bond n. [C] a bond that can be repaid by a
com pany or organisation, especially the most senior company in the form of shares i n the company
member of its board
corporate adj. [only before a noun] relating to a company,
client n.[C] someone who pays for services or advice from usually a large one, or business i n general
a professional person or organisation
credit n.[ U ] 1 an arrange ment with a bank for a loan, or
collateral n. [U] assets promised by a borrower to a lender bank lending in general
if the borrower cannot repay a loa n 2 an arrangement with a shop, supplier, etc. to buy
something now and pay for it later

169
GLOSSARY

credit crunch n. [singular] when borrowing money becomes discount n. [C] a reduction in the cost of goods or services
difficult because banks are forced to reduce the amount in relatio n to the normal cost
they lend
distribution n.[U] the actions i nvolved in making goods
[C] a person or business to whom another person
creditor n. available to customers after they have been p roduced,
or business owes money for example moving, storing and selling the goods
damage 1 n.[ U ] a bad effect on something that makes it distributor n.[C] a person or business responsible for
weaker or less successful making goods availa ble to customers after they have
been produced, either one that sells directly to the
damage 2 v.[T] 1 to cause physical harm to something
public or one that sells to shops, etc.
2 to have a bad effect on something i n a way that makes
it weaker or less successful diversify v.[I] 1 If a company or economy diversifies, it
increases the range of goods or services it produces.
damages n. [plural] money that a court orders someone to
2 to start to put your money i nto different types of
pay to someone else for harming them or their property,
investments in addition to the i nvestments you already
or causing them fin ancial loss
have; diversification n. [C, U ]
[C] a date or time by which you have to do or to
deadline n.
divest v.[T] If a company divests assets, i t sells them, for
complete something
example because it needs cash for another activity or
debt n.[C] 1 the state of owing money to repay debts.
2 money that one person, organisation, country, etc.
dividend n. [C] 1 a payment of a part of a company's profits
owes to another
to its shareholders
3 capital borrowed by a business or government
2 a part of the profits of a company for a particular
organisation on which it pays interest
period of time that is paid to shareholders
[C] a person, organisation or country that owes
debtor n. for each share that they own
money
domestic market n. [C] the country you live in or where
deceive v. [T] to make someone believe something that is a company is based, seen as a place where goods or
not true in order to get what you want services can be sold
decline1 v. [I] If sales, profits, production, etc. decline, they downturn n. [C, U] the part of the economic cycle when
become less. prices or the value of stocks, shares, etc. fall
[C, U] when sales, p rofits, production, etc.
decline 2 n. draft n.[C] a document or piece of writing that has to be
become less checked and possibly changed, and so is not yet i n its
finished form
default v. [ I ] to fail to pay money that you owe at the
right time earn v. [ I , T] to be paid money for the work you d o
delivery n. [C, U ] the act or p rocess of bringing goods, earnings n . [plural] t h e profit that a company makes in
letters, etc. to a particular place or person a particular period of time, or the total p rofits that
companies make in a particular industry or economy
demand n. [U) 1 the total amount of a type of goods or
in a particular period of time
services that people or companies buy in a particular
period of time edge n. [singular] If a person, company or country has an
2 the total amount of a type of goods or services that edge over others, they a re more successful, profitable,
people or companies would buy if they were available etc. because they have an advantage that the others do
not have.
deregulate v. [I, T] to remove or reduce the number of
government controls o n a particular business activity, emerging adj. [only before a noun] 1 countries, especially
done to make companies work more effectively and to those in Asia, Africa and South America that are just
i ncrease competition starting to have i nfluence or power in trade, finance, etc.
2 in an early state of development
[T] to give work, responsibility or power to
devolve v.
someone at a lower or more local level empower v. [T] to give a person or a n organisation the power
or the legal right to do something
differentiate v. [T] When a company differentiates its
products, it shows how they a re different from each empowerment n. [ U ] when workers in a company a re
other and from competing products, for exam ple in its given more responsibility by being allowed to organise
advertising. This is done to show buyers the advantages their own work, make decisions without askin g their
of one product over another. managers, etc. For the company, this has the advantage
of making their employees more involved and able to
diligence n.[U] care that someone in a position of
help clients more q uickly.
responsibility takes with their work
entrepreneur n. [C] someone who starts a company,
arranges business deals and takes risks i n order to make
a profit; entrepreneurial adj.

1 70
 GLOSSARY

equ ity n.(U] the capital that a company has from shares head hunt v. [T] to find a manage r with the right skills and
rather than from loans experience to do a particular job, often by persuading a
suitable person to leave their p resent job; headhunter n.
equity capital n. [ U ] capital in the form of shares, not debt
[C] headh unting n. [ U J
equity stake n. [C] when a company or organisation owns
headquarters n. [plural] t h e head office or main building of
shares in a company
an organisation
exceed v. [TJ to go beyond an official or legal lim it
hire 1 v. [T] 1 to agree to give someone a permanent job

exchange n. [CJ the activity of buying and selling currencies 2 to e mploy a person or an organisation for a short time
to do a particular job for you
exchange rate n. (CJ the price at which one currency can
be bought with another [ U ] an arrangement by which someone borrows
hire 2 n.
something for a period of time in exchange for money
expand v. [I, T] 1 to become larger in size, amount or
number, or to make something larger in size, amount [CJ a quantity of shares held i n a company by a
hold i ng n.
or number particular shareholder
2 If an economy, industry or business activity expands, it
hospitality n.[U] services such as food and d ri n k that an
gets bigger or more successful.
organisation provides for guests at a special event
expansion n. [U] when an industry or company becomes
A hostile bid or takeover is one in which
hostile adj.
bigger or more successful
a company tries to b uy a nother company whose
[U] a system i n which two cou ntries which are
fair trade n . shareholders do not want to sell.
trading partners agree not to charge i m port taxes o n
incentive n. [C] something which is used to encourage
particular goods they b u y from each other
people to do something, especially to make them work
flexible adj. 1 If arrangements fo r work are flexible, harder, produce m ore or spend more money
employers can ask workers to do d ifferent jobs, work
income n. [C, U] 1 money that a company makes from its
part-time rather than fu ll-time, give them contracts for
activities, after takin g away some costs. Companies
short periods of time, etc. Flexible working also includes
calculate their income in d ifferent ways according to the
flexitime, job-sharing and teleworking.
accounting system they use and the type of business
2 A person, plan, etc. that is flexible can change or be
they are in.
changed easily to suit any new situation .
2 money that you earn from your job or that you receive
fluctuate v.[ I ] I f prices, income, rates, etc. fluctuate, they from i nvestments
change, increasing or falling often or regularly.
i ncome stream n. [CJ regular amounts of money coming into
fringe benefit n. [CJ an additional advantage or service a company or organ isatio n from a particular activity or
given with a job besides wages. Pensions, com pany cars source, especially over a long period of time
and loans at low rates of interest are examples of fringe
instalment n.[C] one of a series of regular payments that
benefits.
are made u ntil all of an agreed amount has been paid
fund n. [C] 1 money that a person or organisation has
interest n. [U] 1 an amount paid by a borrower to a lender,
available
for exa m p le to a bank by someone borrowing money for
2 a company whose activity is putting money from
a loan or by a bank to a depositor
investors into a particular type of investment or a
2 shares that you own i n a company, or a part of a
range of investments, or an amount of money i nvested
company that a person or organisation owns
in this way
interest rate n.[C] the percentage rate used for calculating
fundraising n. [U] the activity of o btaining money for
interest over a particular period of time, usually one year
investment
invest v. [I, T] 1 to buy shares, bonds, property, etc. i n order
globalisation n. [U] the tendency for the world economy to
to make a profit
work as one unit, led by large i nternational companies
2 to spend money o n things that will make a business
doing business all over the world. Some of the things
more successful and profitable
that have led to globalisation a re the ending of trade
barriers, the free movement of capital, cheap transport investment n. [C, U ] 1 when m oney is put into a business in
and the increased use of electronic systems of order to make it more successful and p rofitable, or the
communication such as the I nternet. money that is put into a business
2 an amount of money that you i nvest
glocalisation n. [U] the idea that companies should think
globally, but use methods in each particular place that investor n. [C] a person or o rganisation that invests money
are suited to it in order to make a profit
goodwill payment n. [CJ a payment made to senior members jeopardise v. [T] to risk losing or harming something
of a business as a reward for hard work
job loss n. [C, U ] when people lose their jobs
growth n. [ U ] an increase in size, amount or degree

171
GLOSSARY

[CJ a business activity in which two or more

joint venture n. mortgage n. [C] a legal a rra ngement where you borrow
companies have invested together money from a financial institution in o rder to buy land
or a house, and you pay back the money over a period
launch 1 v.[I, T] to show or make a new product available
of years. If you do not make your regular payments, the
for sale for the first time
lender normally has the right to take the p roperty and
launch 2 n. [C] an occasion at which a new product is shown sell it in order to get back their money.
or made available for sale or use for the fi rst time
[I, T] to discuss something in o rder to reach an
negotiate v.
lease v.[T] I f you lease something from someone, you pay agreement
them to let you use it for a particular period of time.
nepotism n. [U] the practice of giving jobs to mem bers of
ledger n. [C, usually plural] one of the books or computer your family when you are in a position of power
records showing the totals of items shown separately
networking n. [ U ] making use of meetings with other people
in the books of first entry or day books
involved in the same kind of work in order to share
liability n.[C, usually plura l] 1 an amount of money owed information, help each other, etc.
by a business to a supplier, lender, etc.
occupancy n. [U] used to talk about how many beds or
2 the responsibility that a person or organisation has for
rooms in a hotel, hospital, etc. are being used by guests,
loss, damage or injury caused to others, or for payment
patients, etc.
of debts
outlet n.[C] a shop, com pany or organisation through which
liquidation n. [C, U] when a company stops operating
products are sold
because it is i n financial difficulty and its assets are sold
to pay its debts outsource v. [T] If a company, organisation, etc. outsources
its work, it employs another company to do it.
liquidity n.[U] the ability of a company to make payments
outsourcing n. [ U ]
to employees and suppliers, interest payments to
banks, etc. overdraft n . [ C J an
arrangement between a bank and a
customer, allowing them to take out more money from
loan n. [C] money borrowed from a bank, financial
their current account than they had in it, or the amount
institution, person, etc. on which interest is usually
involved
paid to the lender until the loa n is repaid
overtime n.[U] the money that you a re paid for working
loan shark n. [C] someone who lends money at very high
more hours than usual
rates of interest
overwork n. [U] when someone works too much or too hard
logo n.[C] a design or way of writing its name that a
company or organisation uses as its official sign on its partner n. [C] 1 someone who starts a new business with
products, advertising, etc. someone else by investing in it
2 a company that works with another company in a
loss n. [C, U] an event that causes a person or organisation
particular activity, or invests in the same activity
to make a claim on an insurance contract
partnership n. [C] the situation of working together in
loyal adj.If customers are loyal to a particular product, they
business
continue to buy it and do not change to other products.
pawnbroker n. [C] someone whose business is to lend
loyalty n. [ U ] the fact of being loyal to a particular product
people money in exchange for valuable o bjects
management buyout n. [C] when a company's top managers
performance appraisal n. [C, U] a meeting between an
buy the company they work fo r
employee and a manager to discuss the q u ality of the
manufacturer v. [T] to p roduce large quantities of goods to employee's work and areas for future progress
be sold, using machinery
perk n. [C] something in addition to money that you get for
market share n. [C, U] the percentage of sales in a market doing your job, such as a car
that a company or p roduct has
[T] to try to make a b usiness agreem ent, or to sell
pitch v.
merger n. [C] an occasion when two or more companies, something in a particular way
organisations, etc. join together to form a larger
portfolio n.[C] all the products or services offered by a
company, etc.
particular business
minutes n. [plural] an official written record of what is said
position v. [T] If a company positions a product in a
and decided at a meeting
particular way, it tries to get people to think about it in
mismanage v. [T] to manage a company, economy, etc. that way in relation to the company's other prod ucts and
badly; m ismanagement n. [ U ] to competing p roducts.
positioning n. (U] the way that people think about a product
in relation to the company's other products and to
competing products, or the way that the company would
like them to think about it

1 72
 GLOSSARY

prem ium 1 n.[CJ an additional amount of money, above a refund 1 n. [CJ a sum of money that is given back to you
standard amount or rate
refund 2 v.[TJ to give someone their money back, for
premi u m adj. [only before a noun] Premium products,
2 example because they are not satisfied with the goods
goods, etc. are of higher q uality than usual. or services they have paid for
principal n.[singu lar] the original amount of a loan, not reinsurer n. [CJ an insurance company that agrees to share
including any of the interest that is paid a large insurance risk with another company and to pay
part of any loss
production n. [U] the process of making or growing things to
be sold as products, usually in large quantities Someone o r something that is reliable can be
reliable adj.
trusted or depended o n .
promote v. [T] 1 to help something develop, grow, become
more successful, etc., or encourage something to happen relocate v. [I, TJ If a com pany or worker relocates or i s
2 to try hard to sell a p roduct o r service by advertising it relocated, they move to a different place.
widely, reducing its price, etc.
rep n. [CJ someone employed to sell a company's products
3 to give someone a better paid, more responsible job in
or services by meeting customers or talking to them o n
a company or o rganisation
t h e phone
promotion n. [C, U] an activity such as special
repay v. [TJ to pay back money that has been borrowed
advertisements or free gifts intended to sell a product or
service; promotional adj. [only before a noun] replace v. [TJ 1 to remove someone from their job, position,
etc. and give the job to a different person
public offering n. [C, usually singular] an occasion when
2 to give someone a p roduct instead of one that they
shares are offered to all interested investors, and the
bought which was damaged or not perfect
amount of shares involved
retail n.[ U J a shop, etc. that is open to members of the
purchase 1
n. [ U ] 1 the act of buying something
public
2 something that has been bought
retailer n.(CJ a business that sells goods to members of the
purchase [T] to buy something, especially something big
2 v.
public, rather than to shops, etc.
or expensive
retain v. [T] 1 to keep something or to continue to have it
rate 1
n. [CJ 1 the speed at which something happens
2 to continue to employ people after a company has
2 the percentage charged for borrowing money, or a
changed ownership, reduced in size, etc.
percentage you receive when you put money in a bank,
make an investment, etc. return1 v. [T] If you return a telephone call, you telephone

3 the n u m ber of examples of something o r the number someone because they have telephoned you.
of times something happens, often expressed as a
return 2 n. [C, U J the amount of profit made from an
percentage
investment
rate 2 v. [T] to think that someone or something has a
return 3 adj. a ticket, etc. that allows you to travel to a place
particular quality, value or standard
and back again
rebrand v. [T) If a company rebrands a product or service,
returnable adj.Something that is returnable can or should
it tries to change the way that people think about it,
be sent back to the place or person it came from.
often by changing its name or the way it is advertised.
rebranding n. [singular, U] reven ue n.[UJ money that a business o r o rgan isation
receives over a period of time, especially from selling
[TJ If a company recalls one of its p roducts, it asks
recall v.
goods or services
customers to return it because there may be something
wrong with it. recall n. [CJ savings account n. [CJ a bank account for saving money over
a long period of time, usually with higher i nterest than
recession n. [C, UJ a period of time when an economy
an ordinary deposit account
or industry is doing badly, and business activity and
employment decrease. Many economists consider that savings bond n. [CJ a government bond sold to encourage
there is a recession when industrial production falls for people to save and invest small amounts of money
six months in a row. second v. [TJ to arrange for an employee to work for another
recipient n. [CJ someone who receives something organisation for a period of time; second ment n. [C, U]

recruitment n.[U] the process or the business of recruiting [UJ property o r other assets that you promise to
security n .
new people give someone if you cannot pay back the money that you
owe them
[TJ to make somethi ng less o r smaller in price,
reduce v.
amount or size segment 1 n. [C] 1 a group of customers that share similar

characteristics, such as age, i ncome, interests and social

redundancy n.[C, UJ when someone loses their job in a
class
company because the job is no longer needed
2 the products or services in a particula r part of the
market

1 73
GLOSSARY

segment 2 v. [T] to divide a large group of people into subsidiary n.[Cl a company that is at least half-owned by
smaller groups of people of a simila r age or with similar another company
incomes, interests, etc., so that products that are most
supplier n. [CJ a company that provides a particular type of
suitable for each group can be sold to it; segmentation
product
n. [ U ]
supply 1 n.[C] an amount of something that is available to
service contract n . [ C ] an
agreement between a company
be sold, bought, used, etc.
and one of its directors, stating what the director will do,
how much they will be paid, etc. [Tl to provide goods or services to customers,
supply 2 v.
especially regularly and over a long period of time
[T] to end a business relationship or connection with
sever v.
someone because of a disagreement supply chain n .[C] the series of organisations that are
involved in passing p roducts from manufacturers to
severance n. [U] the act of officially ending an agreement
the public
or contract, especially between an em ployer and an
employee sustainable adj.strong enough to continue existing or
happening for a long time
share n.[C] one of the parts i nto which ownership of a
company is d ivided [TJ to take contro l of a com pany by buying
take over phr.v.
more than 50 per cent of its shares
shareholder n. [C] someone who owns shares in a company
takeover n.[CJ the act of getting control of a company by
slogan n. [C] a short phrase that is easy to remember and is
buying over 50 per cent of its shares
used by an advertiser, o rganisation or other group
[CJ 1 a limited gro u p of people o r area that a plan,
target 1 n.
slowdown n . [C, usually singular] when something gets
idea, etc. is aimed at
slower
2 a result such as a total, an amount or a time which you
[T] to give money to pay for a television
sponsor 1 v. aim to achieve
programme, a sports or arts event, training, etc. in
target 2 v. [Tl to aim products, programmes of work, etc. at a
exchange for advertising or to get public attention
particular area or group of people
sponsor 2 n. [C] a person or company that pays for a
term n.[CJ 1 one of the conditions of an agreement, contract
television p rogramme, a sports o r arts event, training,
or other legal document
etc. in exchange for advertising or to get public attention
2 a word or expression that has a particular meaning,
sponsorship n. [U] financial support given to pay for a especially in a techn ical or scientific subject
sports or arts event, training, etc. in exchange for
trade n.[ U ] the activity of buying, selling or exchanging
advertising or to get public attention
goods within a country or between countries
stake n. [C] money risked or invested in a business
turnover n. [singular, U ] 1 the amount of business done in
standard n. [C, U] a level of quality, skill, ability or a particular period of time, measured by the amount of
achievement by which someone o r something is judged, money obtained from customers for goods or services
and that is considered good enough to be acceptable that have been sold
2 the rate at which workers leave an organisation and
statement n. [C] 1 something you say or write publicly or
are replaced by others
officially to let people know your intentions or opinions,
or to record facts venture n. [CJ a new business activity or p roject that
2 a list showing amounts of money paid, received, involves taking risks
owin g, etc. and their total
venture capital n. [U] money lent to someone so that they
stock n. [C, U l 1 a supply of goods, kept for sale by a shop or can start a new business
other retailer
passed on to other people on the I nternet or using
viral adj.
2 one of the shares i nto which ownership of a company
mobile phones
is divided, or these shares considered together
voice mail n. [U] an electronic system on your telephone
stockbroker n. [C] a person or organisation whose job is
that lets you leave messages for people who phone
to buy and sell shares, bonds, etc. for investors and
you when you are n ot available, and lets them leave
sometimes for themselves
messages for you
stockmarket n. [C] a place where companies' shares are
wage n. [CJ money that someone earns acco rding to
bought and sold
the number of hours, days or weeks that they work,
strategic adj.done as part of a plan to gain an advantage or especially money that is paid each week
achieve a particular purpose
wannabe n. [C] someone who tries to look or behave like
strategy n. [C] 1 a plan or series of plans for achieving an someone famous or like a particular type of successful
aim, especially success in business or the best way for person, because they want to be like them (usually used
an organisation to develop in the future to show disapproval)
2 the process of skilful planning in general

1 74
 GLOSSARY

webinar n. [CJ a talk, lesson, etc. that is given on the

Internet, i n which all the people taking part look at the
same information on their computer screens and can
talk to each other, usually using their telephones
wholesaler n.[CJ a person or company that sells goods in
large quantities to businesses, rather than to the general
public
withdraw v. [TJ If a company withdraws a product or service,
it stops making it available, either for a period of time or
permanently.
work load n.[CJ the amount of work that a person or
organisation has to do
workforce n .[CJ all the people who work in a particular
country, industry or factory
work-life balance n. [ U J a situation in which you a re able to
give the right amount of time and effort to your work and
to you r personal life outside work, fo r example to your
family or to other interests
worth adj. If an item is worth something, it has a particular
value in money.

1 75
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