UNIT 3

Mercedes star twinkles once more

by Richard Milne
The Mercedes star is gleaming again.
In 2002, it suffered as dramatic a fall as any luxury brand Could, as it reported its first losses for nearly two
decades and saw its quality slip so far that newspapers were full of stories of cars that kepi on breaking
down.
'Mercedes should not make losses. That is absolutely clear,' says
Dieter Zetsche, who became Head of Mercedes in September 2005 and Chief Executive of its parent
company, Daimler, three months later. 'But we have great results now and we are starting to change (he
culture in many ways.'
Indeed, so much has Mercedes changed that III three years it has gone from the worstperforming of the
large luxury car makers to the trailblazer. Execlitives at its bigger-selling rival BMW look enviously at its 9 . I
-per-cent return on sales last year (and even more so at the 1 0 .4 per cent it made i n the fourth quarter -
compared with BMW's 5.4 per cent in the third quarter).
Much of that turnaround is due to Mr Zetsche, famous for his walrus moustache. He was not the first
automotive executive to take on two jobs, but he has been one of the most successful with it, using his
operational experience at
Mercedes to help him at Daimler.
Mr Zetsche says that combining roles is essential for his management style. He is also keen to stress that
Mercedes has a team approach.
Mr Zetsche was hard from the outset, cutting 1 4,500 jobs - 8,500 in production and 6,000 administrative
staff. That broke the pattern of
Mercedes providing a job for life to workers. But it had a dramatic effect on the bottom line. Mr Zetsche
says: 'Productivity gains don't get you anything if you don't reduce personnel.' Mercedes' recent success is
also linked 10 a big improvement in its product quality and the launch of some well-praised models, headed
by the new C-Class saloon.' Mercedes is building cars that people want to buy again and, for once, they
even look better than BMWs,' says one London-based analyst.
The debate on reducing carbon- dioxide emissions could hit Mercedes hard. But the company, for now, is
choosing to highlight the launch of 20 fuel-efficient models this year.
All of this has put a spring back in the step of a company that, in
Mr Zetsche's words, also acts as a 'mirror on German society' . 11 has also restored lustre to Mr Zetsche's
star, which was tarnished by the poor performance of Chrysler, the US car maker that was owned by
Daimler.
ESPAÑOL
Mercedes estrella titila una vez más.
el Mercedes estrella está brillando de nuevo.
en 2002, había sufrido una caída tan dramático como cualquier marca de lujo, como lo informaron sus
primeras pérdidas por casi dos décadas y vio su calidad de deslizamiento hasta ahora que los periódicos
están llenos de historias de coches que Kepi en romperse.
'mercedes debe no tiene pérdidas.Eso es absolutamente claro, 'dice
Dieter Zetsche,Que se convirtió en jefe de Mercedes en septiembre de 2005 y Director Ejecutivo de su
empresa matriz, Daimler, tres meses más tarde.Pero tenemos grandes resultados y ahora estamos
empezando a cambiar (que la cultura de muchas maneras. '
de hecho, mucho ha Mercedes cambiado III de tres años se ha pasado de la worstperforming de los
grandes fabricantes de coches de lujo a la Trailblazer.Venta de execlitives en su más grande rival BMW
mira con envidia en su 9.I -% retorno en ventas el año pasado (y mas aun en la 1 0 4% lo hizo en el cuarto
trimestre, en comparación con el BMW es de 5,4% en el tercer trimestre).
mucho de ese retorno es debido al señor Zetsche, famoso por su bigote de morsa.No fue la primera
automotriz Ejecutivo a tomar en dos puestos de trabajo,Pero él ha sido uno de los más exitosos con ella,
utilizando su experiencia operacional en
Mercedes para que le ayude a Daimler.
señor Zetsche dice que la combinación de funciones es esencial para su estilo de gestión.Él también
desea subrayar que
Mercedes tiene un enfoque de equipo.
señor Zetsche fue difícil desde el principio, corte 1 de 4.500 puestos de trabajo - 8500 en producción y
6.000 funcionarios administrativos.Que rompió el patrón de
Mercedes proporcionando un trabajo de por vida a los trabajadores.Pero tuvo un efecto dramático en la
línea de fondo.Señor Zetsche dice: « el aumento de la productividad no consigue nada si no reducir
personal. 'mercedes' reciente éxito está vinculado también 10 una gran mejora en la calidad de sus
productos y el lanzamiento de algunos bien elogiado modelos, encabezada por la nueva clase C
Berlina.'Mercedes está construyendo los coches que la gente quiere comprar de nuevo y, por una vez,
incluso se mira mejor que BMW', dice un analista con sede en Londres.
el debate sobre la reducción de las emisiones de dióxido de carbono podría golpear Mercedes duro.Pero la
empresa, por ahora, es la eleccion para destacar el lanzamiento de 20 modelos de bajo consumo de
combustible este año.
todo esto ha puesto un resorte detras en el paso de una empresa que, en
Señor Zetsche es palabras, también actúa como un espejo de la sociedad alemana.11 también ha
restaurado lustre al señor Zetsche Star, que fue empañado por el pobre desempeño de Chrysler, el
fabricante de automóviles que era propiedad de Daimler.
UNIT 6
KIERAN PRIOR: GOLDMAN SACHS'S WHIZZ-KID WHEELER DEALER
Working on the noisy, frenetic trading desk at Goldman Sachs's London offices on Fleet Street carlier this
decade, Kieran Prior and John Yeatts, two bright and ambitious twentysomethings from very different
worlds, became close friends. Although Prior, then 23. was just a year older than Yeatts when they met. he
enjoyed giving practical advice, teasing the American about his Saturday-night elates. Yeatts returned the
favour. When traders ordered lunch delivered 10 their desks. Yeatts cut up Prior's food and fed him one
small bite at a time. Prior was born with a rare condition that affects his movement and impairs his speech.
He cannot get out of his wheelchair unaided, and has never been able to walk. Yet despite these physical
limitations, Prior is thriving on Goldman's trading desk possibly the most demanding and competitive testing
ground in finance - winning the admiration of colleagues while gaining experience, confidence and
responsibility. It's not easy managing investments of any size for the high powered trading machine that
supplies much of the earnings of Wall Street's most profitable firm. It is extraordinary that Prior is able to do
so with such physical limitations. Gary Williams. the former head of European equity trading. who hired
Prior nearly eight years ago. Has enormous respect for his determination .'He is an exceptionally smart.
perceptive guy who has purposefully risen to - and overcome - so many challenges.' said Williams. 'The
noise and hurl-burly of the trading floor make trading more difficult for someone in Kieran's position. but the
challenge actually appeals to him.' Intellectually, Prior. now 29, has few limits. Since joining Goldman as a
financial analyst in the equity division in 2000, Prior - whose IQ score of 238 puts him in the top 1 % of the
world's population - has risen from performing basic research analysis and trading Euro Stoxx futures to
running a $50m (£25m) group of European equities and derivatives. Prior joined Goldman just four days
after he graduated from university. Early on, he caught the attention of John Thornton, Goldman's then
president, as Thornton was walking across the trading floor. Thornton stopped for a brief chat – and was
amazed. ' I couldn't help but be impressed,' said Thornton. ' First of all, Kieran's sheer. raw talent is
impressive. And when you add to that the determination he shows getting through the day in a place like
Goldman Sachs, which is so demanding. it is just breathtaking.' Prior is free to invest in almost any
business sector, but recently narrowed his focus to just 20 companies because of the extreme volatility in
the markets. 'I joined Goldman in a bear market; he said, 'but these markets arc the most difficult I've ever
seen. so I’m just using this period of volatility to learn as much as I can.'

Business in brief
It was a bad day for the London market. Following disappointing results from Fed Ex in the US and fears of
a credit crunch, the FtSE 100 fell 105 points or 1 .8 per cent to 5,756.9, while the FTSE 250 rell 189.1
points or 1 .9 per cent to 9,534.8. Only eight blue•chip stocks managed to make gains. The best was Smith
& Nephew. Shares in the medical devices group rose 2.9 percent 10 595p after UBS upgraded the stock to
a 'buy' recommendation. S&N was also supported by rumours of a bid approach from a Japanese
company. On the other hand, British Airways, down 5 .2 per cent to 225p, fell even further after Morgan
Stanley cut its target to 149p. This was because of worries about increasing fuel prices. Tate and Lyle, the
sugar and sweeteners group, lost 5.2 per cent to 402P after CityGroup lowered its forecasts because of
rising corn prices. Following recent floods in the US,the cost of com has risen 25 per cent.

Standard Bank overcomes culture shock

It is increasingly common for multinational businesses to send employees on international assignments but
without the right cross-cultural skills staff will often struggle. Wayne Mullen, head of learning and
development at Standard Bank discusses the impact that cultural challenges can have on employees
relocating to another country. In order to be successful transferred employees must understand the host-
country culture, he argues. Colleagues from different countries might share similar professional knowledge
and skills within a single international organization, but their ways of working, social skills, body language
and ways of doing business are likely to be completely different. They may have different patterns of
behavior which need to be understood and appreciated in order for everyone to work together successfully.
For example, while it may be acceptable for Chinese office workers in Hong Kong to use the door-close
button on a lift no matter how many people are also getting in, doing such a thing in London would make
people extremely angry. It is common for South Africans to ask personal questions of their counterparts
shortly after being introduced, while a British colleague may perceive this as impolite and inappropriate.
Latin American's need for personal space is much less than of their British colleagues. Global companies
should never underestimate the effect that culture can have on international assignments. Cultural
awareness is much more than simply knowing about a country's history and geography. It is about
understanding how and why cultures work differently. It is also important to understand your own cultural
make-up in order to work more effectively, maximize teamwork and strengthen global competence. "The
bank recognised that in order to harmonise working practices within its culturally diverse office, it needed to
provide foreign workers with a meaningful understanding of British business culture and communication
styles." The Standard Bank Group operates in 38 different countries and its London office alone has 56
nationalities. This wide range of nationalities needs to communicate effectively in order to work as one
team. The bank recognized that in order to harmonize working practices within its culturally diverse office, it
needed to provide foreign workers with a meaningful understanding of British business culture and
communication styles. It also needed to offer practical support which allowed employees to cope with the
challenges of living and working in an unfamiliar environment; their reactions to day-to-day issues such as
the weather, public transport and social etiquette are often the most visible manifestations of culture shock.
Standard Bank has engaged Communicaid,a Europeans culture and communication skills consultancy, to
design a tailored training solution which introduces delegates to some of the key cultural differences that
they are likely to face in the UK

ARTICLE A
When Nguyen Thu Hang was a child, her mother was a housewife in a small village whose women
residents had no say in decision making, either at home or in the community. Now a mother herself, Hang
not only shares her husband's burden of earning money for the family and bringing up children, but also
has a career and social ambitions.
'Women are much happier than before. They have a good education and careers of their own, 'says the 39-
year-old who lives and works in Hanoi. 'And, of course, they are more respected in the family and society.'
Hang, who carries a sleek laptop in her hand, gets out of an elegant black Mercedes and enters a building
where she works as the General Director of Viet Hoang Trade and Investment Company, which specializes
in construction and real estate.
Like Hang, many other Vietnamese women also pursue careers these days and have stormed the
corporate boardroom to affirm their increasingly important roles. Whether in remote farms or in companies,
they have become much more self-confident and are discovering their worth and fulfilling their potential.
Women account for nearly 52 per cent of the workforce in the service sector, 50 per cent in the agricultural
and fisheries sector and 37 per cent in industry and construction. Almost a quarter of all companies are run
by women, many of whom are also the driving forces behind them. As for their status in the family, Hang
says that women's position has improved remarkably. 'We jointly decide important issues in our life, such
as work or education for our children. My husband always respects my opinions.'
The greater role of women is attributed to the effective policies of promoting them. The state and party are
interested in women's advancement. The NA, the national legislature, has approved the Law on Gender
Equality and the Anti-Domestic Violence Law. The government has national programmes for vocational
training and preventing trafficking of women and children.
Women's own efforts to acquire knowledge and education have, of course, been a major factor in their
advancement. They make up over 40.2 per cent of all university graduates, including nearly 9.8 per cent of
PhDs and 30.5 per 70 cent of Master's degree recipients.
But women still face a number of difficulties, including poverty, under employment, domestic violence,
prostitution and gender inequality. 'I think the best way to help women overcome these challenges is to help
them study and lead an active lifestyle.' says Hang, whose entry into the so boardroom began after she
obtained a Master's degree in Britain at the age of 27.

ARTICLE 1
By Xin Zhiming
“The US should focus on improving its overall economic competitiveness instead of seeking protection is
mtocombatits economic slowdown,” said the latest 2008 White Paper: American Business in China.“And it
should not argue for a stronger currency to reduce its tradedeficitwith China, since the value of the yuan is
not the fundamental cause of the deficit,' said the White Paper, which was released by the American
Chamber of Commerce (AmCham) China, AmCham Shanghai and AmCham South China Tuesday.The
US economy is currently slowing, while its trade deficit with China remains high, standing at $163.3billion
last year. The deficit has led to protectionism against Chinese goods and investment in the US.The two
countries should make “defending andpreservingthe openness of the trade relationship a corecommitment”,
the White Paper said. Instances of co-operation between China and US far exceed instances of dispute.
An open US and an open China Will lead to sustained benefits for bith US companies and citizens back
home said Harley sayedin chairmain of amchain south China