SECTION A: LISTENING (50 POINTS)

Part I. You will hear part of a discussion about McDonald's recent experiment with using
artificial intelligence (AI). Listen and decide whether the following sentences are true (T) or
false (F). (10 points)
1. McDonald's plans to permanently discontinue the use of AI in their drive-throughs following the
recent experiment. F
2. McDonald's AI struggled with customized orders. T
3. The AI technology McDonald's used could accurately handle audio input even in noisy
environments. F
4. Nathan Bie compared the AI's learning curve to that of a 15-year-old trainee on their first job. T
5. McDonald's stated that their recent price increases were much higher than what people think. F
TRANSCRIPT
While McDonald's is pulling the plug on its experimental use of artificial intelligence, the fast food
giant was looking to use AI to simplify and expedite its drive-through experience. The technology
was deployed at about 100 US locations, but there were some issues that left customers pretty
frustrated. So, I want to bring in Nathan Bie, a business reporter for Axios. I heard of a woman who
was trying to order ice cream, but it kept on wanting to put bacon on top of it, which honestly does
not sound that bad to me at all. That's what you call a happy accident, but clearly, we can see why
this experiment failed.
What happened with McDonald's, and is this the end of AI when it comes to fast food?
Well, first off, we're not going to judge anyone for their food preferences. If they want bacon on their
ice cream, that's okay, but I'm pretty sure that's not what they wanted. Yeah, the AI experiment here
for McDonald's doesn't seem to have gone that great. All the mistakes that were reported on social
media, I think, suggest that it does have a long way to go, and that's probably one reason why
McDonald's says they're going to be done with this experiment. But they are saying this is for now. I
think that there is a goal to bring this back at some point. So, what it really seemed like, as I
perused TikTok, is that once your order deviated somewhat from the main menu, then AI really
had a problem. You couldn't say "hold the pickles." Things just really start to fall apart. But I
wondered if other chains were using this that maybe had simpler menus and were having more
success.
Yeah, I think that's probably part of it. I think one of the challenges for fast food companies is that
they have thousands of different combinations. I think I once heard Starbucks has literally billions of
potential different drink combinations that you could actually do based on whatever you actually end
up deciding to get. So, I think that that's one issue. I think another problem here was that the audio
would maybe sometimes pick up what someone else was saying. If someone else in the restaurant
said "ketchup" and then the other person said "ice cream," they may have heard both and got
confused. Those are the kinds of things that a human probably would understand that's not what you
do. However, we've all been to McDonald's and had an order gone wrong, so there's certainly
opportunity there. But I think McDonald's clearly knows this is not ready for prime time.
Yeah, well it reminded me of the 15-year-old with their very first job, and they got "trainee" on
their name tag. So, they're kind of messing up on the first shift, but they're going to get better.
They just got to go back to maybe working on the fries. AI is being implemented behind the
scenes to do all kinds of things. But then it makes me think, what about the employees? I know they
say this is all about the customer experience, but part of it also has to be about maybe fewer people
working at a McDonald's or other places.
I think there's no doubt that companies like McDonald's are looking to cut costs, in part because they
face higher—they're having to implement these higher prices due to higher labor costs, higher
material costs. Food prices have increased. We know McDonald's just recently issued a statement
saying that their prices haven't gone up as much as people think. That signals to me that they
know there's a perception that McDonald's prices, at the very least, have gotten higher than expected.
I mean, I went to McDonald's not long ago and saw that the double cheeseburger was $4, and I was
shocked that it was $4. So, clearly there is a desire here to cut costs. Whether the AI can help them
do that in the future is up in the air.

Part II. You will hear part of a lecture about culture of organizations. Answer the following
questions with a word or a short phrase (NO MORE THAN THREE WORDS). (10 points)
6. In what kind of organizations is the power culture commonly observed? small organizations
7. What form of communication often occurs in organizations with power culture? conversations
8. What is job security considered to be in power culture organizations? a low priority
9. How are jobs controlled in large companies with role culture? rules and procedures
10. What can large organizations achieve due to their size in relation to production costs? economies
of scale
 TRANSCRIPT
"Good morning, everyone. Now, whether you're going to university to study business or some other
subject, many of you will eventually end up working for a company of some kind. Now, when you
first start working somewhere, you will realize that the organization you've joined has certain
characteristics, and we often refer to these social characteristics as the culture of the organization.
This includes its unwritten ideas, beliefs, values, and things like that. One well-known writer has
classified company cultures by identifying four major types. The first type is called the power
culture, and it's usually found in small organizations. It's the type of culture that needs a central
source of power to be effective, and because control is in the hands of just one or two people, there
aren't many rules or procedures. Another characteristic is that communication usually takes the form
of conversations rather than, say, formal meetings or written memos. Now, one of the benefits of
this culture is that the organization has the ability to act quickly, so it responds well to threat or
danger on the one hand, an opportunity on the other. But on the negative side, this type of
organization doesn't always act effectively because it depends too much on one or two people at the
top, and when these people make poor decisions, there's no one else who can influence them. And
the kind of person who does well in this type of business culture is one who is happy to take risks
and for whom job security is a low priority. The next type is known as role culture, that's R-O-L-E,
not R-O-W-L, by the way, and this type is usually found in large companies which have lots of
different levels in them. These organizations usually have separate departments that specialize in
things like finance or sales or maintenance or whatever. Each one is coordinated at the top by a small
group of senior managers, and typically everyone's job is controlled by sets of rules and
procedures. For example, there are specific job descriptions, rules for discipline, and so on. What
are the benefits of this kind of culture? Well, firstly, because it's found in large organizations, its
fixed costs or overheads, as they're known, are low in relation to its output or what it produces. In
other words, it can achieve economies of scale. And secondly, it is particularly successful in
business markets where technical expertise is important. On the other hand, this culture is often very
slow to recognize the need for change and even slower to react. What kind of person does this type
of culture suit? Well, it suits employees who value security and who don't particularly want to have
responsibility.

Part III. You will hear part of a discussion on a current affairs programme between Nick
Barnes and Alison Tempra about the performance of the company Facebook since it floated on
the stock exchange, hosted by Emily Dunne. Choose the answer (A, B, C or D) which fits best
according to what you hear. (10 points)
11. What does Alison identify as a reason for having a positive outlook on Facebook’s performance?
A. the company kept its costs low.
B. the loss generated was less than expected.
C. there appears to be good revenue potential.
D. the company hasn't started to advertise yet.
12. According to Nick, the increasing popularity of smaller devices ______________.
A. represents untapped potential for FACEBOOK.
B. is a significant challenge to FACEBOOK increasing its revenue.
C. puts FACEBOOK at a competitive advantage.
D. gives the company an opportunity to advertise more.
13. In what situation does Alison believe FACEBOOK users might abandon the company?
A. if they are given the option of watching adverts on the certain apps and sites.
B. if a free social network becomes available on the net.
C. if the company pushes advertisements onto users too forcefully.
D. if sites and apps start to appear which put users of using FACEBOOK.
14. Which of the following is TRUE about the company's performance?
A. the share price has now dropped by over one-third.
B. there has been a 6% improvement in the share price overnight.
C. $38 has been wiped off the share price.
D. it has become the biggest flop in history.
15. Nick believes that Google ______________.
A. will inevitably prevail over FACEBOOK in time.
B. was short-sighted to invest everything it had into one project.
C. technology will be made redundant by what FACEBOOK offers users.
D. will become profit-making in a matter of time.
TRANSCRIPT
F1: So, Nick, Alison, what of the Facebook floatation – is it too early to call it a disaster? Or is that
too strong a word even?
M1: I think probably so Emily, though certainly there have been major mistakes made in the
handling of the company in the lead up to, during and since the flotation took place. And there
doesn’t seem to be any good news on the horizon either, what with the company announcing a
narrower profit margin this quarter – news which comes as a surprise to analysts and which
highlights the unpredictability of the FACEBOOK business environment and the fact that the
potential of internet advertising as a means of generating revenue is as yet largely unknown
and untested, so the values we put on the companies like FACEBOOK and so on are little more
than guesstimates.
F2: Right Nick, and high-end guesstimates at that; there’s been none of the usual conservatism in
valuing FACEBOOK. Its floatation-day share price was top-end and left little room for investors to
cash in on potential future gains, since none are likely in the short-to-medium-term. But it’s not all
bad news. After all, the company is making money and increasing its revenue, albeit at a slightly
slower pace than anticipated, and the revenue results for the last quarter were not bad; I mean, $1.18
billion is not an inconsiderable sum. Sure, of that everything and more was consumed by rising costs
and by efforts to keep shareholders happy with a sweet dividend pay-out-hence the net loss of $157
million generated – but FACEBOOK is proving that there is still, perhaps, much untapped potential.
M1: But there is a caveat surely, Emily; users are moving away from traditional platforms like
laptops and PSs to small-screen smartphone and tablet devices. This poses a very big problem for
any company looking to increase its revenue from online advertising sources though, and
especially one like Facebook whose entire business model revolves around the assumption of an
ability to make money from such sources. After all, smartphone and tablet devices have much
smaller screens, so where is the room on the user interface for advertisements? There simply isn’t
any…
F2: To be fair, the company has admitted that this is a problem for them and they are working on
ways to overcome it, I think they will come up with a solution, but the difficulty lies in finding the
right balance. For example, if they come up with a way of forcing Smartphone users to watch
ads before they can use certain applications or access certain sites, this cold well turn them off
the FACEBOOK model and they may very quickly switch their loyalty over to one of the many
other free social-network sites there are available on the web.
M1: I am not even optimistic that they can find a way of exploiting the advertising potential of
Smartphone interfaces, mainly because I don’t think there is any. And I am very pessimistic about
the company’s prospects, truth be told. In fact, I think it has the potential to become the biggest
stock-market flop in history. Already, before the news of the tightening profit margin was related,
share prices had dropped by more than 30% since the initial offering at $38 was made, and now
we have seen a further 6% dip in the share price overnight.
F2: The markets are nervous generally at the moment though and it’s not just FACEBOOK that’s
suffering. I don’t deny the problems you have highlighted exist, but my gut feeling is that a way will
be found to overcome them. FACEBOOK is a visionary company and it now. I feel that so long as it
continues to do this it will stay one step ahead of the game and thereby open up new ways to
increase revenue through the new business opportunities that are bound to present themselves the
further down the road of online interaction we go and the more connected we as a society become
through these networking facilities.
MI: I can’t agree with you on that; I think you are in denial. Both Google and Twitter are nipping
at FACEBOOK’s heels and it is having to look over its shoulder far too much, I’d say, for its
own liking. Google is a profit-making firm with new technology that makes what it offers users
redundant. There is only one winner of this rivalry between the tech giants, and victory will go to
the one which didn’t dump all its eggs in one basket.

Part IV. Listen to a piece of news in the “Facing Fertility” series and fill in the missing
information with NO MORE THAN THREE WORDS AND/OR A NUMBER for each answer.
(20 points)
Facing Fertility series discusses the financial burden of egg freezing, where a woman's eggs
are (16) ________extracted, frozen, stored______ for potential future conception. Angie endured
ten days of (17) ________painful hormone shots______ to stimulate egg growth in her ovaries as
part of her fertility preservation journey. Her journey to preserving her fertility culminated in (18)
_______an egg retrieval_______. Angie opted for Co-Fertility's (19) ________split
program______, where she could freeze her eggs at no cost. The (20) ________intended
parent______ covers medical expenses for the donor and all other associated fees.
Split donors at Co-Fertility must complete (21) _______comprehensive medical
screenings_______ to evaluate their medical suitability, in accordance with FDA and American
Society for Reproductive Medicine standards. In Co-Fertility's approach, both the donor and the
prospective parent are (22) _______mutually incentivized_______ for a positive outcome,
including high egg yield and excellent egg quality. Mackler's concern is whether young women
might (23) _______feel coerced_______ to donate eggs solely to fund their own egg freezing. The
Co-Fertility model offers intended parents an (24) _______average minimum savings_______ of
about $88,000 compared to traditional egg banks where donors are paid.Arthur Kaplan argues that
Co-Fertility's approach avoids offering (25) _______cash compensation_______ to donors,
emphasizing ethical considerations regarding the outcome of egg donation.
TRANSCRIPT
In our Facing Fertility series, we explore reproductive hurdles and give a voice to the many women
and men who suffer in silence with infertility. This morning, we're taking a look at the high cost of
freezing eggs, where a woman's eggs are extracted, frozen, and stored for potential future
pregnancies.
Here are some numbers you should think about: In 2022, nearly 30,000 egg freezing cycles were
performed in this country, up from just 7,600 back in 2015. However, the procedure comes with a
very high price tag—the average cost to freeze eggs is $10,000. Nikki Bati introduces us to a unique
program that could help women afford the treatment if they donate half of their eggs to someone
else.
Ten days of painful hormone shots—day eight, shot one, to stimulate egg growth in her ovaries—
the morning I met Angie Artre, we were about to head out on the way to the clinic as part of Angie's
journey to preserving her fertility. The final step, an egg retrieval, was to remove as many eggs as
possible and freeze them in case Angie, now 26 years old and a medical student, wants to try to have
a baby when she's older.
"We ended up getting 34 eggs as of now, so really happy, so many eggs." Angie is only keeping half;
the rest she's donating. Could you have afforded to freeze your eggs? "No," Angie replied, "that's
why I turned to the company Co-Fertility and its split program, which offers a woman the chance to
freeze her eggs for free when she gives half of her mature eggs to a person or couple seeking a
donor." Both the donor and intended parent must agree to match.
"What was super appealing to me was the chance to have my eggs, um, the freezing covered for free.
The intended parent, who is given the other half of a donor's eggs, pays all of the donor's medical
costs and a 10-year storage fee for her eggs, plus an $8,000 fee to Co-Fertility. Split donors must be
between 21 and 33 years old and undergo comprehensive medical screenings based on FDA and
American Society for Reproductive Medicine guidelines, as well as have psychological and legal
counseling."
How does it feel knowing you'll get to keep half, but half will now go to someone else? "It feels so
good. I'm really excited for them. The best time to freeze your eggs is the younger you are and,
frankly, when you're least likely to be able to afford it. And then, on the flip side, so many people
need an egg donor today to grow their family," Lauren Mackler, Co-Fertility’s co-founder, stated.
The company launched in 2022. "When you pay cash compensation to a donor, she is incentivized
by a check at the end, and so it's hard to know if she is following the protocol. In our approach, we
know that the person going through it is mutually incentivized as the intended parent for a great
outcome—high egg yield, great quality eggs."
Do you worry that some young women may feel coerced to give away some eggs just so they can
freeze theirs? "I really don't. It's an option that is great for some people and not for others," Mackler
added. She says for intended parents seeking fresh donor eggs, Co-Fertility’s model, which never
pays a donor a dime, offers about an $88,000 average minimum savings compared to a traditional
egg bank where donors are paid money.
"I believe, and our team believes strongly, that this is a more ethical way to do egg donation than
cash compensation," Arthur Kaplan, who teaches ethics and medicine at NYU, remarked. "Think
hard about whether you really want someone else to have a biological child that's related to you as
the price of freezing your own eggs. I'd say make sure you understand the limits of privacy; you're
probably going to know down the road if a child was created, and they may want to meet you.