VVVVVVVT TTT VTP VV VV Intelligent Business Upper Intermediate coursebook_2 y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 <0 0 0 = a 0 0 a 0 0 0 a) VVVVVVVVV VV VVDilem oe ecision Decision: Dilemma: The two faces of Burberry Brief Burberry, ‘the original British luxury brand’, launched its first logo in 1900 and registered the signature check pattern as a trademark in 1920. It was an established luxury brand for wealthy middle-class conservatives for several decades, but sales declined in the 1980s as the brand began to appear old-fashioned. Then in the 1990s, CEO Rosemary Bravo revamped its image, repositioning the Burberry brand in line with its luxury and exclusive heritage. Ads were designed to depict the essence of the ‘new* Burberry, giving a modern feel combined with classic British elitism. This marketing strategy reached the intended target, and even Prince William. has been seen at many events wearing Burberry. However, the brand has also become popular with hip-hop artists and football fans. The question now being asked by business analysts and journalists If Burberry embraces the new audience, will they lose their core customers?” © Listen to what a brand asset manager thinks about this issue. Task 1 Read below the options open to a brand facing this type of positioning dilemma and discuss which ones you agree/disagree with, Can you think of other arguments? The case for extension ‘The case against extension * Increased sales from the ‘unintended’ market are * We should ignore these new customers and reinforce doubling tumover. the ‘traditional and classical’ image. * Our brand is ranked eighth on American ‘+ A British newspaper has run a potentially damaging Brandstand for ‘most mentioned brand’ in popular song lyrics. + We should recruit hiphop artists whose fans are already brand enthusiasts, to endorse the brand article about ‘design hooligans, describing the bad behaviour of British football fans who were wearing designer brands. Fashions change quickly in the world of hip-hop officially. and rap. We should concentrate on our layal ‘+ Young customers will stay loyal to the brand customers, who don’t change brands as easily. throughout their lives, while sales to ageing + Ifyoung, less wealthy people buy our brand, it should be for the same reasons and for the same brand image as our core customer base. taditional target customers will fall off. isk 2 You are the marketing manager of a company facing a similar dilemma. Decide which action the company should take. Prepare fully-developed arguments from the notes on page 139 and be ready to present your arguments at a meeting. | task 3 Work in small groups. Hold a meeting and decide which course of action the company should take. Write it up ‘You are the marketing director of Clearly Chic. Write a memo to all the staff informing them of the decision that has been made concerning their present dilemma, and explaining why this decision has been taken. (Gee Style guide, page 24,) 4m Unit 8Tra aCe aL) Boer The rewards of risk business ventures start as investments by entrepreneurs, who hope to make financial gains or returns on investment (ROI). Money for a new business may come from banks, or ftom venture capitalists and business J angels, ho also give entrepreneurial advice. As businesses grow, they invest in their own projects in otder to increase profits and dividends for shareholders. Some businesses such as insurance companies and investment banks employ professional fund managers to oversee investment portfolios of different types of shares (US stock) and bonds on the global stock Tetkets as their main profit-making activity. ‘Although all businesses aim to hake a profit, some organisations think it is important only to make ethical fivestments, possibly with lower returns, in projects that, for example, don't farm the ervifonment.76m Unit 9 Investor profiles 1) Work in pairs. What should a business person be in order to be a successful investor? Choose the five most important characteristics from the list. Compare and discuss your choices with another pair. reckless pessimistic opinionated optimistic calculating ambitious determined analytical opportunistic tuitive focused greedy flexible prudent Dy Read the profiles of four famous investors. Choose two adjectives from exercise 1 which best describe each of them. the legendary stock trader who was known aThe great bear of Wal Street He took big investment risks but always analysed the market carefully. He gave is opinion readily but didnt always follow his own advice He once said, A man must believe in himself and his judgement ihe sto ‘makea lvingin this games Whenever hisjudgement failed him, he incured ug losses. ‘known on Wall Street asthe greatest Iivestr ever His performance over ive decades has never been bettered His est deals wer in lows, blue hip stock with uch giants a Coca (la and The Washington Post. He advises investors to buy and hold and never act asl. tect Crete! ere the trader who caused the bankruptcy of Barings Bank He specialise in futures (an agreement to buy or sell something in the future ata speci price) and ‘options (a contract which gives you the right but nat the obligation to perform _atansaction ata specied time). Nt only dd he ase money frm the start but ie also systematically increased the risks He flstied accounts and lost a staggering total of £208m. ‘cofounder of Microsoft with Bil Gates; his fist investment earned him S17 bilon! He then became an ange, investingin ‘movies, 19605 art rock music and space travel His companies are so innovative that it ‘still hard to say whether they are headi-the-lous losers or farsighted pionees. He once said The advantage of having the resources haves that you can bea more patent investor. —. If you were making investments, which of the famous investors would you be most like? Investor beware! Hl) Look at the title of the text and the cartoon on the it i opposite page. What do you think the text is about? Read the text to cheek your answer. Which of the following adjectives best describes the average investor? pessimistic flexible irrational —_ wiseInvestor beware! Freud, folly and finance Human intuition is a bad guide to handling risk | PEOPLE make strange decisions about the future. The evidence is all around, from their investments in the stock markets to the way they run their businesses. In fact, people are consis- tently bad at dealing with uncertainty, underestimating returns from some investments and overestimating others. Surely there must be a better way than using intuition? » Daniel Kahneman, a profesor at Princeton, was awarded @ Nobel prize in economics for his work in the field of behavioural Finance, a seience which applies psychological ‘insights to eco- nomics. Today he is in demand by investors and Wall Street waders. But, he says, there are plenty of others that siill show litle interest in understand ing the Toots of their poor decisions 5" What surveys have shown is that people's forecasts of future stock market movements are far more optimistic than_past longterm returns would jus- tify. The same goes for their hopes of everrising prices for their homes or doing well in games like the lottery or poker. They seem to ignore evidence and hard facts and prefer to trust their inner instincts. + Not only are first encounters deci- sive in judging the character of a new acquaintance but also in negotiations fover how much money to invest in new ventures. The asking price quoted by the seller in a property sale, for ekample, tends to become accepted by all parties as the price around which negotiations take place, whereas this ig- ‘ure could be at best simply inaccurate for at worst completely dishonest. However, people find it difficult 10 {question their First impressions. Similarly, no one likes to abandon the generally accepted idea that the ear- lier a decision has been taken, the hard- er it isto give up. However, companies really should decide eatlier rather than later to cancel a failing research project to avoid wasting money. The problem is they often find it difficult 10 admit they have made a mistake. This human ‘weakness can cost them a lot of money. © another problem is that people put a lot of emphasis on things they have ‘seen and experienced themselves, which Glossary {folly foolishness, lack of good sense myopia short-sightedness boom years years of economic prosperity simply may not be the best guide. For example, somebody may buy an overval- ued share because a relative of theirs has made thousands on it, only t0 lose ‘money. In finance, 100 much emphasis fon information that is easily available helps to explain the socalled “home bias”, a tendency by most investors to invest only within the country they live in, even though they know that this is not responsible behaviour and that diversification is good for their portfolio. > Fear of failure is another strong human characteristic, which may be why people are much more concemed about losses than about gains. Itis this myopia in the face of losses that ‘explains much of the irrationality poo- ple display in the stock market. * More information is helpful. in making any investment decision but, says Kahneman, people spend propor tionally 100 much time on small deci- sions and not enough on big ones. They need to adjust the balance. During the boom years, some companies put as much “effort into planning their Christmas pany as into. considering strategic mergers Regretting past decisions is not just a waste of time; it also often colours people's perceptions of the future. Some stock market investors trade far too fre- ‘quently because they are running after the returns on shares they wish they hhad bought earlier. But at least when businesses uy to assess their risks, they ave 10 worry only about maki money. Governments, on the other hhand, face a whole range of conflicting political presures. This unfortunately makes them even more likely than busi nesses to take irrational decisions a Unit 9m7778m Unit 9 F speaking Vocabulary 1 Dl Read the text again and match headings a-g with paragraphs 3-9. Misplaced priorities b Counterproduetive regret © Initial feelings J Being too cautious © Being over-optimistic Winning and losing © Accepting when you are wrong © Answer the questions. Where can we find evidence of people's bad decisions about the future? 2 What is behavioural finance? 5 Why don’t companies abandon projects on which they are losing money? {Why is it irrational to invest only in your own country? 5 Why are people more concerned about losses than gains? © How does regretting bad decisions affect stock market investors’ future decisions? What kind of risk taker are you? You have just inherited $100,000 and you want to invest it for five years. Which of the following appeals to you, and why? bond issued by an organisation or # government, which is guaranteed and will pay you an interest of 2 per cent per year a junk bond (high-risk bond) that could earn you 20 per cent per year, but there is a high risk of not earning any interest at all blue-chip shares which will almost certainly pay a minimum of 4 per cent even in poor economic conditions high-tech company shares with high-risk but high-return potential of 10 per cent per year a new business venture offering a position on the board and a5 per cent share of potential profits; impossible to forecast possible returns Which of the above do you think would have appealed to the famous investors on page 76? Match the words from the text with their meanings. returns (para 1) a range of investments traders (para 2) b tocstimate 3 diversification (para 6) people who buy and sell stocks and shares, portfolio (para 6) varying investments 5 losses (para 7) © money earned on investments © to.assess (para 9) £ money lost on investments| Vocabulary 2 Practice Prefixes [Bll Look at the following sentence from the text on page 77. Think about the meaning of the prefix over. What does overvalued mean? For example, somebody may buy an overvalued share because a relative of theirs has made thousands on it .. (para 6) Bl Match the prefixes (1-6) with their meanings (a-f). 1 post 2 between / among a group 2 pre b- more than one / many 3 multi © later than / after 4 bi di two / twice / double 5. inter before / in preparation © under not enough By Add prefixes from exercises 1 and 2 to the following to make new words. emphasise estimate lingual value national arranged date(v) spend © Make a of other words you know with the prefixes above. Complete the article about art as investment with the appropriate form of words from Vocabulary 1 and 2. It is difficule to |_overemphasise the risk involved in inaccurately, r buying fine art as an investment, even if investors often claim that they are making greater returns and getting ‘more pleasure from their Van Gogh than from theit equity fund. It _may be a good opportunity. for : » but itis highly unlikely chat they are making more money. Artis frequently » and the industry is infamous for + ‘The main attraction of buying on the 5 market, apart from the pleasure of having the Wor around, is to vary the investment ee However, most businesspeople are put off by jhe uncertainty of whether the work will increase in valudlor not. For example, a Japanese businessman definitely when he paid $82.5m for Van Gogh's ——ag Portrait of Dr Gachet, which has since sold for an eighth of the price. Bur despite § like these, some People have made a fortune on works such as Egon! Schiele’ painting of Krumau (shown tight), which sok at Sotheby's for £12.6m in 2003, Speaking Discuss the pros and cons of investments such as art, antiques, rare books and wine. Prioritise them in terms of higheslowest risk. Unit 917980 mUnit 9 Language check 2 Practice Listening 1 Emphasis J Study these examples taken from the profiles on page 76 and the text on page 77. How would these sentences be written if the writer didn’t want to emphasise them? 2 Not only did he lose money from the start but he also systematically increased the risks. (Nick Leeson) b What surveys have shown és that people’s forecasts of future stock ‘market movements are ... (para 3) © Itis this myopia in the face of losses that explains much of the irrationality ... (para 7) © Study these examples of inverting the auxiliary verb and subject. Rewrite the sentences without emphasis. | Onno account should you invest in such a risky business. You should on no account invest in such a risky business. 2 Rarely has so much money been lost by one person gambling with his company’s assets. 8 Never has a work of art risen in value by so much in such a short time. + Only in exceptional circumstances can an investor take high risks and still be successful. Rewrite the following sentences using inversion. | Investors have never had to work so hard to make a reasonable return. 2 Forecasts of how the markets will change are rarely 100 per cent accurate. 3 People are not only afraid of losing money but also of appearing stupid. «They shouldn't have expanded their portfolio on any account, because their track record was so poor. 5 People should only listen to financial advisers if they really trust them, {1 Listen to an interview with Bradley Hopper, founder and CEO of a US casual clothing manufacturer, and answer the questions. | Why did Hopper go into textiles? 2 What was his main goal? 3 What does he say about the competition? {What does he say about environmentally friendly products? 5 What are his future plans? © Listen again and change the sentences to what he actually says. I was interested in clothes more than anything else. Profit drives me. ‘Making money has to be your first priority Knowing where to cut costs and where to invest keeps me one step ahead. ‘The hands-on part really interests me. 5) Practise saying the sentences, paying pai words which are emphasised. sular attention to theCareer skills Speaking Attend a conference on sustainable development in Frankfurt next month. | Prioritising Setting priorities means deciding what it is you most want to achieve and then organising your time and activities in the best possible way to reach those goals and targets. Look at the following phrases, which can be useful when prioritising. This is absolutely imperative © Tought to do this urgently. | b No need to do this, f Forget about that. Let's get Susan to do that. 3 That's a job for Marco. d_ This might be useful. h The next step should be The following questions are helpful to ask when prioritising. Match phrases a-h with the questions. What is absolutely essential for me to do? 2 What is a good idea but has no negative consequences if it isn’t done? 3 Which task(s) can I delegate and assign to someone else to do? * Which task(s) can I eliminate because they are really not urgent or relevant to my specific goals? Work in groups. Your project team has brainstormed ideas for setting up a new ethical investment fund. Prioritise the following tasks that you have come up with. Establish @ lst of ethical companies to propose to our clients | Meet the CFOs of companies on our ‘sustainable company’ lst | ‘+ Meet journalists to give interviews about our new socially responsible investment product. * Come up with criteria to evaluate companies according to financial, social and environmental performance, | ‘+ Recruit two new specialised fund managers to manage the new portfolio. ‘+ Prepare a brochure to send to existing clients about the new product. Writing Culture at work entre eee neem [Hl Listen to the team leader summing up decisions taken so far at the prioritising session. Which task on the list does he say is not essential, which is impractical and which is of vital importance? © How does this compare with the way you prioritised the tasks? Write a memo telling management what the plan of action is for the new service. (See Style guide, page 24.) Status and society Some cultures are money driven and it is perfectly acceptable for businesses and people to measure their success in terms of how rich they are. In other cultures, priorities are different and businesses can be judged on such things as the quality of their products and the conditions they provide for their employees. What is common in your country? How might this difference cause misunderstanding in multicultural teams? Unit 9ms1Dilemm ecision Dilemma: Your money or your reputation? Decision: Brief ‘Two young Californian entrepreneurs, Steven Evans, a successful Turn to page 146 to find out what businessman, and his younger brother Max, a recent MBA graduate, have choice the now successful founder Just inherited the family fortune and have decided to invest in the | of American Apparel made when manufacturing sector, They plan to supply the European and US screen he was faced with the same print market with mass-produced, blank T-shirts. Their rivals include giants | dilemma a few years ago. like Fruit of the Loom, but they feel confident that there is room for another competitor in this highly lucrative but risky sector. They both agree that their main goal is to establish a successful business as quickly as Max’s business possible, then sell it and reinvest ay manuiechaine ae the profit in other ventures in 's business plan Calitorni aoe order to build up a much larger Steven's business P2m * Bud up an ‘ethical employer fortune to leave to their own lene ‘putation and estabien a rome children. However, they have very * Minkiim wit we health based on ntorty and fama, different ideas on how best to a * Setup teas rece boredom, achieve this goal. Read their " neat urmover in US due to a ee time and reduce respeative business plans. wren nos and uncomiortable as saieot tae Metta cont ovr g Task 1 Reduce risk of bad reputation foro corcumar by reece? inimuin Wage into the a iNesioctions Work in pairs. Roleplay a “ay mietian mini a {othr supolers wil conmnos tas discussion between the two roe (518.5330 Brae! ‘Spey Many ers hae Dean Inaitesranthey explsinihcte fand $63.75 in Guandong 2 by Negi ley la business plans to each other. inching). Pear ‘Sharae higher prices «Allow trade wnionsan Pople vl ay me for ee Te mE me ety Task 2 Geta competitive odge ‘resting n slares and conctons, Join another pair and discuss asa» Enaurewestayinbusinessby P28 vest in advert group which business plan has the abletovife highly competitive * Buling a g00d ptt an rend best chance oFsucceeding. Prepare prt. a ages anecosay ong tern to tell the class about both plans, * Avoidrisk. cony sec cneetiient Conse tc ro saying which is better and why. competitors, cloting’ compen ore Consider what is: of vital Minimise advertising seme sooner crt ® importance to the success of a 2 Inorming potential custome : sh prices would Not : business; a nice idea but not aualiy toy ices te a requicea large communicati entured, nothing gain essential; impractical for the moment er oe -— : + No guarantees that this eampaigr sou work , oe «+ Iewill take a long time to make real Present your ideas to the class. returns, Better safe than sorry! Write it up Steven of Max has sent their | business plan to your company, thy looking for financial backing. = Write a letter giving your response a and the reasons for it. See Style guide, page 16) 82m Unit 9Language check The passive Underline the passive forms in italics that are incorrect. Correct them. | The new legislation is to introduce six months from now. 2. Lawyers for the defence say they are not being giving a fair chance to defend their client. 3 Ttnow looks as though an agreement will reach and there is a good chance that the accusations will be withdrawing. 4 Clients are defended by their lawyers. All evidence must produce in court. 6 Although some litigants had not informed of the changes, most were aware of the new procedures. 7 How much will the company ask to pay the victims in compensation? 8 The jury is going to be selected one month before the trial begins. 9 The plaintiff claims that his reputation has damaged. 10 The courts may force by the government to reduce the level of damages that litigants award, Adjectives and adverbs Complete the sentences with one word from each box. surprisingly particularly highly much directly — clearly difficult little sophisticated operated demonstrated cheaper 1 Perhaps the company doesn’t want any publicity ~so far information has been given to the press. 2 The latest devices use innovative laser technology. 9 The marketing manager said that conditions have become asa result of cheap imports, 4 Falling prices of some components mean that the new models will be than initially indicated. and ‘Most of the company’s outlets are ——_______ by franchisees in each of the main national markets. 6 The success of the new brand is in this diagram. Emphasis Rewrite the sentences starting with the words given. It’s the first time I have ever seen a company’s shares collapse as fast as this, Never . Private investors are hardly ever able to match the performance of professional fund managers. Rarely eceeeesaenseeaetess Investors shouldn't on any account concentrate 3 all their shareholdings in one business sector. (On no account 3 4 Today, I'd like to focus on how to identify stock market opportunities. What — a 5 In the long run, the return on an investment is the most important thing. Its ‘ 6 The psychology of investors is the thing that has always interested me most. What Consolidation ‘Choose the correct forms of the words in italics. Johnathan Harper | has sued / has been sued his previous employer in a *highihighty unusual lawsuit fe claims that he was a victim of discrimination because he wes forced / forced to goto work dressed ina shit and tie while his female colleagues were allowed to dress more ‘casuallyyeasu. When the case Sprout / was brought 10 wil Smore early / earlier this month, Harper “was awarded ! awarded £10.00 in_damages by the Labour Tribunal. "No sooner / ‘Sooner had the decision been announced than lawyers forhis ex-employer appealed. However, the effects of the decision are already to be flr / being felt: "nor only /onfy not are thousands of other male employees fcross the country now saying that they too have been discriminated against, but they are also_ seeking compensation. ae, Le geet omVocabulary check 10 Put the words in the correct groups. image target entrepreneur case identity publicity dividends judge risk damages promotional sue portfolio verdict bonds Law Brands Investment Fl Complete the article with the appropriate form of words from exercise 1. Reputation is easy to lose The biggest ! any company faces are losing its good name and damaging brand Bo Nowadays, ______. pay ‘dose altention to anything that could have a negative impact on their brand lead to bad _— in the media. WalMart, the giant US retailer, attracted the wrong kind of publicity when it was 5______ for employing illegal workers it had hired through a contractor, The ¢_____ decided that the company should be made to pay even if it didn't know the workers were illegal ‘Companies try to protect themselves by hiring a Chief Legal Officer to take care of brand and comporate * He or she is employed to reduce the chances of the company being involved in expensive and damaging court 1 ____, but as Jack Welch, GE's former CEO said, it is imperative to avoid becoming a 1" for ora victim of criticism in the first place met Career skills Negotiating Put the dialogue in the correct order. 2 That's a good compromise ~ you've got a deal! 2 suppose I could go to £300. 8 How much are you selling your camera for? 9 That's much too expensive for me. b_ Isit? Well, what price are you prepared to pay then? b £300! No way, but rd consider £400. b Pm asking £500 for it. Dealing with people at work Find and correct the mistake in each sentence. Let's to work on this together. This is good — it just needs few minor changes. I wanted to tell you before anyone else more does. 1 like this idea, but it’s not what we need have right now. We're all ultimately working towards a same thing. Prioritising Match 1-5 with responses a-e. Shouldn't we get those figures done urgently? I think 'm too busy for an appointment today. What would happen if we changed the order of things? Can we get Frédérique to do that? What should the next step be? Well, you should try to make time you shouldn't delegate this to someone else. Yes, it’s not essential that you do it personally, I think we ought to contact all our salespeople at this point. Yes, it's of vital importance. I don't think it would make any difference.Fossil fuel dependency PAGE 87 Conditionals PAGE 90 Dilemma: The power of money PAGE 92 | Keynotes | All businesses depend directly on the energy sector, which is the largest single market in the world. Some energy companies trade in fossil fuels (coal, gas and petroleum) while others supply electricity or fuel to end users. Many of the | products derived from | petroleum, like plastic, | chemicals and fertilisers, are essential components or ingredients for industry. As | petroleum reserves become scarcer, this drives up oil prices and encourages companies and governments to develop alternative or renewable energies. Increasing energy consumption is creating | pollution and causing | global warming, a problem some countries are addressing through the Kyoto Agreement.Preview The energy quiz Do the following quiz and find out how much you know about the energy industry. (Answers are at the bottom of the page) How many cars were there] EX which country in the ED How mich extra energy in the world in 1950? World has the largest will the world need by a 5milion petroleum reserves? 2030 compared with 2005? 6 50 milion 2 Sauel Arabia 24 15% ¢ 15 milion bing b+ 45% € Russia © +60% How many cars will there be by 2030? DD which ofthe following | TA By how much at ig ae csnen abinon | produc doesnot contain| serpy consumption of towne PN” | petroteun-based inattcua ports be om ingredient? reduced, using existing xo mln ese 12% # decane bb ee gee bbe Speaking Work in pairs. Look at the list of some of the things that | Reduce the temperature at home by one people could do to reduce the | degree or more. amount of energy that they | _Use pubic transport instead of using your use. Answer the following ‘car. / Use your car less often. au: : ‘Change to fluorescent lighting at homo. i eaneut things do you | Recycle all containers and packaging. 2 Which ones would you be pet lee levies, prepared to do in the future? | Tur appliances off atthe meins instead of 3. Are there any other things pec neem people could or should do to | Use ventilation instead of air-conditioning. eaveenciiy? Have a shower instead of taking a bath. Reading Resource depletion jue Roe [Ml Look at the chart. What do 4 ae you think the two curves show? Read the text on the opposite page. Is there anything in it to support either of the projections shown in the chart? Answers Bee ee Ye 9 a0 a0 a m0 86M Unit 10Resource depletion Fossil fuel depen Dy ee Gasoline prices have reached their highest See Cee ers i comparies have slashed their petroleum ee ee es Se a Se ee er pra Cele et ae Pou nu ee eee eee eee) They may well be right. For energy eee eed Ce ey eas ee eee ee es ae ee ee ey See ee ee companies are nat the only ones with an ee Pee aa) Ce ket en’ ee eee ee ras ee ed Ca ey ee es determine ths are a closely guarded secret ~ ere ee te ey eee cd See ee een eer aT ene ttt ts Cee Oe ete Cee Seer Rs eres eee eed Ce ot aan aT pene eee er Cen een ea ere ee Ce eee rd Se ee De eau ee ey required to extract a bartl of ol exceeds the ed eed en eee) eee at eet no ee ec es eee eer es Ce ee winen the official figures are so notoriously unreliable. Compounding the problem, most Pree cake teed Cee eed ees eee ete rd Pee ec etd take a petroleum geologist to surmise that er eer ett Pee ee eed eee. ee what wl happen if global demand for energy CON oa developing nations? China itself could render eee en ed eee ee eee eed eee eS Beets ok en oc et eo Cee ee eras one eto Ts Peete tena en sca Cr ee ay eee ees pee es es eee eet Cee Re prices in the United States and sporadic blackouts across China merely the mildest Cea eee ‘never be an oll shortage, that global reserves ee ee ced ee sven that those responsible for measuring eer nes Deal een kkk oe Se ee ad energy industry at large or to anyone who relies on their computer, their car or their per Glossary gasoline/gas (US) petrol OPEC Organis Exporting Countr factor in include as a of an equation barrel standard unit oF measurement for selling oil (159 litres) sporadic occasional Unit 10m 8788 m Unit 10 Speaking | Vocabulary 4 Dl Each of the following statements summarises information presented in one of the paragraphs in the text. Match the statements with the correct paragraphs. a Ifno alternative energy source is found to replace petroleum, many everyday products will become prohibitively expensive. b. The potential effects of a shortage of oil could include environmental damage and the interruption of power supplies. © Some scientists doubt that levels of petroleum reserves are as high as the petroleum companies have said they are. New sources of energy will only be seriously developed once petroleum. becomes scarce. © The economies of some countries ate growing fast and will require greater quantities of energy. By Answer the questions. | Who has questioned the validity ofthe estimates of petroleum reserves? Is there any evidence to suggest that they are right? 2 Which groups have a vested interest in exaggerating oil reserves, and winy? 3 How would a shrinking oil supply affect the following groups? energy companies © consumers 4 What would be the least/most serious consequences of a diminishing supply of petroleum? How do you think people will be affected by developments in the energy industry over the next ten to twenty years? Negative prefixes The negative prefixes un-, non il-, im, inv, ir-can be added to certain adjectives to give them the opposite meaning, eg. possible - impossible. 1 The following are definitions either of adjectives in the text or of adjectives that can be made by adding a negative prefix to an adjective in the text. Write the correct forms of the adjectives. | (para 2) less efficient or more expensive than something else —___ 2. (para 3) not sensible or reasonable 5 (para 3) not easily found or bought —___ + (para 3) too expensive to purchase {para 4) not worrying about the potent lly negative results of an action 6 (para 6) clean, not producing waste or harmful emissions Dl Look at the following list of adjectives. Which negative prefix is used with each group? 1 partial perfect plausible i eas atid correct significant Sy ekeG | nana regular relevant 4 existent negotiable renewable 5 ——— —sustainable—_economie profitable on eee legal legitimate literateVocabulary 2 ‘Anew report by GlobalResources presents three scenatios for the future of the energy sector, Practice Look at the list of words that can be used to form collocations with the words oil, energy and power. Which of these words can be placed before oil / energy / power and which can be placed after them? plant crude solar (2) nuclear (x2) field Vocabulary 1 and 2. sector Ti estes seat foresees wr of relative politcal stability, where international concem about the security of the Middle East region, with its huge ‘oilfields. diminishes. Petroleurn supplies are readily *@______to individual consumers and businesses. However, Petroleum companies are forced to focus more on 3 _ development and ‘ensure that they leave a postive economic legacy in counties where natural resources have been depleted. AA second scenario predicts that energy companies from Russia and China will become more____in order to secure markets and supplies for their national industries. This wil make it more dificult for refinery policy renewable grid cut Complete the article with the appropriate form of words from companies to investin 2 and other environmentally trendly energy solutions Governments will be increasingly reluctant to subsidise «_ 1 and plans to build costly atomic reactors will consequently be shelved. In the worst-case scenario, the energy suppl chain is disrupted by tegen and ea! conflicts. Operations become less z asthe cost of insuring and other energy installations rises. Access to energy is limited and markets contract. Some countries become import dependent for their energy and are forced to adopt new > to control domestic consumption. Supplies of electricity are reguiarly interrupted by " cee nett ert ft etn ag Listening 1 © Renewable energy © Listen to an interview with Mia Hansen of the European Energy Institute and answer the questions. | What is renewable energy? 2 Is Mia Hansen in favour of developing renewable energies? 3. What is the UK government's target for 2025? Bl Listen again and answer the questions. 1 What are the two categories of energy that Mia Hansen talks about? 2. Which five types of renewable energy rely on the sun? Which two don't? 3 What are the two advantages and three disadvantages of renewable energy? 4 What are the four main uses of energy in the UK? You were a member of the audience at the conference where Mia Hansen was interviewed. Write an email to your company's managers, explaining the main points that Mia Hansen made. (See Style guide, page 20.) Writing Unit 10 m 89| Language check Practice Conditionals Conditionals are generally used to predict the consequences of likely situations (Type 1) or of unlikely or hypothetical situations (Type 2) or to talk about hypothetical situations in the past (Type 3). Find an example of each type in the text on page 87. Js contain two clauses, each of which refers to a different time (future, present or past). Which time is referred to in each clause in the following example? If there hadn't been an oil crisis in the 1970s, people wouldn’t be so worried today. 1) Complete the following mixed conditional sentences using the appropriate form of the verbs in brackets. Does each clause refer to the future, the present or the past? | Pollution levels (be) _would be lower today if planners had designed cities for pedestrians and not for cars 2 I (buy) more reliable. 3 If (not/have) have gone with you to the conference. 4 Ifthe government is not planning to build new nuclear power stations, then they (say) If nuclear waste disposal (not/be) an electric car already if they were cheaper and so much work to finish by this evening, I'd so before they were elected. such a problem, then more power stations would have been built by now. 6 The local people would be much poorer if oil (never / be discovered) i Choose the correct forms of the words in italics. Inthe late 1970s, NASA decided 1 abandon its SSP (Space Solar Power) project using Satellites to wansmit solar energy from space. If the project had succeeded) / succeeded, many ener Spee government plannere Swould'will be less worried than they are today. But it dda CConstueting the sett would have cost/ Would cost $78 billion and it “will take / | would have taken 30 years to Install it in space. | NASDA, the Japanese space agency, has ‘now taken up the challenge and is currently doing its own research ito asim system, Their scientists are confident that if Speaking everything “goes / as gone according 19 plan, they Swouldwill be able to make their first satelite power transmission 10 Earth before 2025. But transferring solar energy 10 the planet by satellite won't be easy. In fact, iffcheaper launch systems for space vehicles “are not / will not be available in the neat future, the cost of transporting and assembling even a simple system. Swillsvould remain prohibitive. However, fone thing is clear: if there "wasn isn a slight chance of making the system work, the Japanese "vould not have invested / wil ‘not invest So much money. Make notes about something you planned to do in the past but weren't able to do, and something you dream about doing now but can’t. Discuss the situations with a partner, using appropriate conditional forms. 90m Unit 10Career skills Listening 2 Culture at work Problem-solving When 2 problem surfaces at work, itis important to identify its source and to analyse the points of view of the people who are directly affected by it. This makes it easier to find an appropriate solution which everyone involved will understand and accept. Look at the following useful questions and responses. a Actually, we're one week chead. d_Iwish I knew. b Where do we go from here? e Ifthe worst comes to the worst, ... c Iseverything going smoothly? ¥ Any idea what the problem is? Complete the table with the questions and responses above. Keeping track How are things going with Couldn't be better. 1 Yeah. Its working out just as we thought: So, how did it go? Not that well, actually. Are you still on schedule? 2 Identifying the source of a problem Sowhat exactly seems to be holding _—_‘There’s still no sign ofthe parts we things up? ordered. What's gone wrong? 3 4 It looks ike it’s the .. What's up? We're in big trouble. Proposing a solution How can we sort this out? Get someone onto it fast. 5 Well just have to. How do you suggest we deal with this? Let's just take it one step at a time. What’ the best way to fix this? 6 {f] Listen to three dialogues between managers and members of their teams. Identify the problem that is mentioned and the solution that is proposed in each case. 1) Listen again. Which of the questions and responses above are used? Work in pairs. A manager is talking to a team member who has discovered a problem. Decide together on an appropriate course of action in each of the situations on page 142. Take turns to play the roles of manager and team member. Approaches to problems How people approach problems depends on the culture in which the problems have arisen, In some (universalist) cultures, people interpret and react to problematic situations in terms of what is generally considered to be right or wrong. In other (particularist) cultures, however, problems are approached in the light of the relationships of those involved, and people tay to find a solution that fits the specific circumstances. How do people approach problems and problem-solving in your culture? Unit 1091Dilem ecision Dilemma: The power of money Decision: Brief The World Bank is an international institution which provides loans ‘Tum to page 146 and read the and finance to countries and governments around the world. The extract ftom a news article about decisions that it makes are particularly important as they provide the the commission’s report. guarantee that other financial institutions need before they will agree to contribute additional funding to a new development project. ‘The Bank is currently conducting a review of its policy on energy. World demand for energy is set to rise considerably during the coming years, and the role of the Bank will be critical in determining how that demand is met. Over the last decade, the Bank has financed hundreds of fossil fuel projects which will substantially increase the levels of carbon dioxide in the atmosphere and accelerate the effects of global warming. ‘The dilemma that the Bank now faces is whether to continue to finance such projects or to change to a radical new policy which would promote cleaner or renewable energies. ‘The Bank has appointed a special commission to prepare @ report that will present recommendations for its future policy in the energy sector. Task 1 ‘You are members of the commission, which has representatives from three groups: the energy industry, developing countries and non-governmental organisations. Work in groups. Group A, you represent non-governmental organisations. Tum to page 137. Group B, you represent the energy industry. Tum to page 138. Group C, you represent developing countries. ¢ Turn to page 140. Prepare the arguments that you will present to the commission and choose a spokesperson to present them. Task 2 A meeting takes place, at which the spokesperson for each group presents his/her group's viewpoint. Take notes about the proposals that the other groups make. Task 3 All members of the commission should give feedback and express reactions to what has been proposed. At the end of the debate, agree on an outline of the future policy that you will advise the Bank to adopt. Write it up Write a short report on future policy that the commission will submit to the World Bank. (See Style guide, page 28) 92m Unit 10Page and Brin’s daring IPO Unit 11 aa Future forms @reratsmeltlo)i(y “wwzlongman-elt.com vwwuecononistcon Dilemma: Which way to Wall Street? EB PAGE 100 Searching for shareholders we Keynotes An Initial Public Offering (IPO) takes place when a private company raises capital by introducing its shares on the stock market and becomes a public limited company (plc). Before a private company can go public, it must comply with the requirements of the regulators of the stock exchange (Securities Exchange Commission in the US) and file an application giving full details of its accounts. Most companies prefer to use the services of an investment bank to manage or underwrite the offeringStock market launches 1 Listen to an expert talking about why companies decide to go / public. Match the three companies that she mentions with the \ [ __Feasons that she gives for their IPOs. Preview Ray 1 DreamWorks 2 10 pay off debt SA 2. Virgin Blue b to pay back investors ys} 3 Domino's Pizza to pay for future expansion 1D) Read the following statements. Which show the advantages of going public and which show the disadvantages? Management will face pressure to produce positive quarterly results, Outsiders may impose their views on management. The value of the business may suddenly fluctuate. 1 More people will be aware of the company’s existence. ‘The company will be obliged to disclose financial information. ‘The company can obtain finance without having to repay a debt. Employees can exercise stock options. 8 Capital will be available for expansion. Spesking Work in pairs. Discuss the following statement made by Richard Branson before he decided to take Virgin Blue public and answer the questions below. a ‘The delightful thing about not being a public company is that we don’t have to worry about foolish analysts who say stupid things. Why do you think Richard Branson changed his mind? When is it better for a company to go public rather than stay private? 5 How would you decide whether or not to buy the shares of a company that was going public? 4 Can you think oF an example of a company that has gone public? How successful has it been? feading Wall Street wonderboys 11] Read the extract from a letter written by Larry Page and Sergey Brin, the founders of Google, the internet search company. ventional comy We do not in to bec | GOOle seiersewctcme manatee | 8 privately company we have mana Google differently. We have also emy d ert challenge, which has helped us information for those who rely phasized an atmosphere of creativity and | Provide unbiased, accurate and free access to | (on us around the world, What do you know about the company? ©) Read the text on the opposite page and answer the questions. | What is unusual about the way Google organised its IPO? What are the two principles on which Google is founded? 94m Unit 11WALL STREET WONDERBSOYS PAGE AND BRIN’S DARING IPO The new men on the black fight the Wall Street cartel LARRY Page and Sergey Brin, the founders of Google, ara dong something that has novor bean rsked before, Not b Microsofts Bil Gates, Not even by Apples Steve Jobs, The Google guys are teling Wall Stract to drop doa. Those entrepreneurs trom ‘an sarier era played the game ff gong puble the way had aways been played. Before gfe came along, when a company was ready 10. sell shares, it hited big Wall Street Goldman Sachs and Morgan Stanley, The ths offered the stock to their favorite cus tomers at a big discount. The privleged! few were guaranteed ‘uick profs, but the company received less money for 3 IPO. And the newly public ‘company paid a high price for tha honor. The. investment firms’ commission was typica- 1y as high as 7 pee cant of tha ney ralsed, That fee could run sto the hundreds of mi lions of doles Pago and Brin oren't put ting up with this racket. Thee plan is to use a public euction ta offer Google's shares to anyone wiling 10 pay the mar Google vill receive $100 millon more by handing the sale the way. And wale mejor firs tke Morgan Staley will bbe managing the auction, their role ~ and thelr foas ~ Wil be much diminished, Ny did such famous rsk-takers as Gates and Jobs put up with the Wal Steot shakedown? They didnt have much ‘choice. The brokerages wore abie to act ke a cariel because they held a near ‘monopoly on information. CEs had no idea what was happening to thair stock Unless they called thee brckera. And of equities were most, big nsttutions ~ pension funds, insur ance companies ~ that paid commissions to the big brokerage fms for research and ‘advice, The investment houses essential (gave kickbacks by culting them in on IPOS, Cracks began to appear in that cartel in the fata 19908, when WR Hambrecht 8 Co, ‘and Wit Capital pioneered the auction ‘approach. But few entrepronaurs chose these Wall Strt reformers for ther IPOs, Why? For one thing, many founders and CEOs picked trettional investment banks to take them public because they wanted the services of the fms’ "analysis" ~ who Glossary drop dead mind its own business racket (US shakedown) a way of obtaining money by fraud or deception kickbacks (Br backhanders) sums of money paid to someone in exchange for a favour ‘hype promote something with exaggerated claims gun attempt to defeat brains will trump brawn intelligence will win against power status quo_the situation as itis notoriously hyped clents’ stocks un guise of pra Page and Brin built Google b their hyper-mathematica loge t0 the intr ret; now they have focused the sama rationalty onthe IFO indus ny. In so dong, they might lutionize Wall Just as they revolt he interme, Of course popularity brand mekes it possioe for tne company to bypass Wall Street, The Google guys are reying on the fact that by the time the pul ‘come to decide whether to buy, they wil have see thal the old way was call sive and comupt while ther way is rational and tar That’ a great leap oF tai Aienating the powers tha ei investment barking ras risks, 100. The fst time the huge the newly pubic company ports disappointing rosuits, Wall Stet Wil De a very lonely and dangerous nning for Google and alos are to be found. Page and Brin are going to take that chan. Google Is based on the twin principles that Brans wil rump and that a democracy will aWvays supplant a hierarchy. This democratic impulse forms tha very core of Google's technology; 0 gees with the IPO: Google has put ‘uture in the hand of the peosle, not Wal Street. Larry and Sergey are not your typ ‘al courageous leaders. But they are at the foretront of a new brood of technacrat kings who are gambling that they can cut- think ~ and outfank the status quo. Unit 1m 9596 m Unit 1 aking Writing 5) Read the text again and study the following statements. Which refer to the way that companies traditionally issued shares, which refer to the public auction approach adopted by companies like Google and which apply to both? Traditional Auction Both Stocks are sold directly to the public x ‘The company pays fees to a brokerage firm. Stocks are sold mainly to financial institutions. Shares are sold at a reduced price to favoured customers. ‘The company receives more money from the sale, © Statements 1-6 paraphrase information given in paragraphs 3 and 4. Which of the following groups of people does each statement refer to? 2 entrepreneurs like Bill Gates institutional investors / investment funds Larry Page and Sergey Brin ‘They did not have the information to allow them to track the performance of their companies on the stock exchange. 2 They were the principal purchasers of newly issued shares. They represent a new generation of business leader. \ They paid high commissions for information from stock specialists 5 ‘They needed to keep on good terms with analysts 6 They paid for information and consulting services. What are the disadvantages of not following the traditional route and bypassing Wall Street when going public? Do you think that Google will be successful in the long term or will it suffer as a result of having antagonised the Wall Street community? An analyst's view Listen to Jonathan Harper giving his views of the Google IPO. Complete the table below. Capital expected from the 1PO Capital raised Number of shares expected to Number of shares actually sold be sold Projected share price Share price obtained Mistakes made 1 2 a Your CEO has asked you to give your opinion about whether your company should plan to launch its new IPO by auction or by using an investment bank. Write a short letter saying which method you would recommend, and why. (See Style guide, page 16.)Vocabulary 1 Vocabulary 2 Practice Find words in paragraphs 3 and 4 of the text on page 95 and match them with their meanings. | (public) auction. a method of selling 5 a situation where where people bid against each other _there is only one supplier of 2 ______ the price determined by goods or a service supply and demand 6 the price of a 3 —_____ companies specialised company’s shares in selling stocks 7 ______ stocks and shares 4 _____agroup of companies _____ the percentage that form an alliance to control a paid on transactions sector Prefixes ‘The prefix out can be added to certain verbs to indicate that something is done better. Study these examples from paragraph 7. outthink think in a more intelligent way outflani have a more effective plan of attack Match the verbs with their meanings below. outlast outscore: outmanoeuvre outnumber outperform outbid 1 use tacties to gain advantage 4 obtain a better result 2 compete more effectively 5 be of longer duration 5 buy something with a higher offer be more numerous Complete the article with the appropriate form of words from Vocabulary 1 and 2. Investors who are looking to add some new |_equitiaa to their portfolios wil get the chance to do just that when Faitfax Ine goes public. anounced recenty that t willbe going ahead with plans for is PO, ond a company spokesman said that they would be offering two milion shores. They expected hat he intl would be between $25 and $30, The PO is Unleely to offect he monagement of Fairfax’, business affois os he voles held by the orginal shareholders wil §_____ those of investors aequirng a stoke in the company. Fairfax said thot although they had orginally intended to hold a 4 othe shores con he interne, they have now decided to use he services ofthe Randéleld Investment Bork, which will be cxganising the sale in collaboration wih several of the major Wall Sireet © Foickox has rofusd to disclose the details ofthe agreement, but its rumoured to be paying the bank a °____ oF eight per cent ‘on the IFO. The company has consstenly 7 is Ccompeliors in is sect, and analysts ore saying that they anticipate steng demand fr Fix shores. This hold rest in opi ving once invesios start rading on the exchange. Unit 197Language check Future forms 1] Match the following with the iations (1-6) in which they are used. future with going to future perfect present simple modals may or might future with will future continuous to describe actions in progress in the future » to talk about things that someone wants to happen or intends to do » to talk about uncertain future events and make tentative predictions * to describe actions which will be completed by a particular time in the future in clauses introduced by eg, when, as soon as, if, before © to make firm predictions | Match the examples taken from the text on page 95 with 146 above. Google will receive an estimated $100 million more ... (para 3) __ bs Morgan Stanley will be managing the auction, .. (para 3) In so doing, they might revolutionize Wall Street ... (para 5) | «= they will have seen that the old way was collusive ... (para 6) —__ The first time the newly public company reports ... (para 6) —_ {Page and Brin are going to take that chance. (para 7) Choose the best options (a-c) to complete the sentences. There may be more than one correct answer. | Analysts will know more about the company’s financial position when it _— its prospectus next month, is going to publish publishes will publish The auditors say that they ___ the final version of the income statement by the end of next week as theyd planned. * will not have finished by are not going to finish will not be finishing 9 Personally, 1 ___ any shares because I don't think the company will ever be able to pay a dividend » will not buy } am not going to buy © might not buy + CEOs can make all the predictions they like, but ultimately it’s the markets which © will decide b will be deciding © will have decided 5 1_ buy a few shares, but only if the market looks good. & might b will © am going to © Our Chief Financial Officer ___ the first presentation to analysts on 21 june. 2 makes » will have made © will be making Speaking Make a list of things in the future that you intend to do, you will have done by a certain time or you will be doing at some point. Discuss your list with a partner. 98 m Unit 11Coreer skills Making a presentation When you are making a presentation, itis important to include appropriate language to show your audience what you are doing at different moments. This will make it easier for them to follow what you are saying and wil signal the transitions between the different sections of your presentation. Look at the following language, which can be used to signal the different sections in a presentation. 2 forinstonce to puti in simple terms bin other words 4 te © in brief J Tl.come back to that later as you can see here kk moving on to @ to-go on to (the next point) as this chart shows f tosumup mm that brings me to such os 1 another way of putting that Which of a-n above would you use to do the following? | illustrate your presentation with examples (or visuals) 2. simplify or summarise sections of the presentation 5 show that you are changing to a different section of the presentation 4 reformulate or paraphrase what you have said Listening 2 Listen to the introduction to a presentation given by Andrea Herra to a group of analysts and answer the questions. | What will the main sections of her presentation be? 2 Which of a-n above does she use? Practice Work in groups. Choose one of the next sections of Andrea's presentation (section 1 below, sections 2-5 on page 141). Read the notes and then prepare and present your section. INNOVA Tex vn we ae Poa Spe ag pts merc omotee 2 fecvofecanrecech ote Pasta calli eo mame Culture at work Presentation styles When you give a presentation to an audience in another country, you may have to adapt the style of your presentation. In some cultures, audiences may react negatively to a presentation that is considered to be too flashy and over-optimistic. What style of presentation do people in your country use? Is it considered acceptable to use humour in a presentation? Unit 1199Dilem —; ecision Dilemma: Which way to Wall Street? Decision: Brief {i Wire Ventures was the parent company of Hi Wire magazine ~a © Listen to Larry Elgin talking popular business magazine for Silicon Valley entrepreneurs and about what went wrong with executives. When the internet boom was in full swing, Hi Wire Ventures the Hi Wire IPO. had big plans: launching new multimedia start-ups and new titles that ‘would position the group as one of the leading interactive media companies. Financing that plan meant taking the company to the Stock Exchange. But it wasn’t all going to be quite as simple as Chief Executive and founder Mario Rossini might have imagined. ‘The company had already been forced to cancel their first attempt at an IPO at the last minute when stock prices started to fall. But now, two months later, Rossini is convinced that the market is ready for the launch. He has found a bank to manage the launch and they have just finished doing the ‘road show’, a series of sales presentations where professional investors are invited t0 commit themselves to buying shares, Representatives of the bank and of Hi Wire's senior management team are now meeting to discuss the results and decide on the future of the IFO. Task 1 Work in groups. Group A, you represent the bank. Turn to page 142. Group B, you represent Hi Wire senior management. Turn to page M44. Prepare the arguments that you will present at the meeting Task 2 Have the meeting with the representatives of the other group. Discuss your arguments and reach a decision about what action to take for the IPO. Task 3 Each group should prepare a short presentation of the final decision and give their presentation to all the senior managers of Hi Wire and the bank. Write it up Write a short press release explaining the decision. (See Style guide, page 30.) 100 m@ Unit 1PAGE 103 Unit 12 Competition PAGE 106, Dilemma: The cola comeback AGE 108 TC Cd Businesses compete against each other to sell their products Peerage Cems ces company succeeds in creating a new market, competitors enter the industry, offering similar products but at a lower price. To stop their customers from switching to alternative products, erate one ee Ce ae Per Ocean men ae aay eee MO a ac ea) economies of scale, or by controlling the source of supply or Pe crt suit Crunch time for Apple Time clauses eae102 m Unit 12 Preview ©) Speaking Writing | Reading Protecting a market Listen to Robert Njiki, a professor of business studies, talking about how companies can analyse their competitive position in a market. Complete the diagram with the terms that he mentions. e000 All businesses have to adapt as their markets evolve and new opportunities emerge. Can you match the following companies with the products or services they originally sold? Do you know of other companies which have recently entered new markets? | American Express « forestry and wood 2 Nokia b- mining and minerals 3 Nintendo glass containers and bottles 43M ornaments and decorations Shell mail delivery ; Danone playing cards How might established companies be affected by the following new products entering their industries? digital camera mobile phone MP3 player Choose a company that you know well. Imagine a new market that this company could enter. Write a press release explaining how it will do this. (See Style guide, page 30.) Competitive advantage [fy Read the text on the opposite page and answer the questions. | Who is Apple's principal competitor and how is the company trying to deal with ite 2 Which of the barriers mentioned in Preview has so far prevented Apple from gaining market share in the PC sector? b made it difficult for companies to compete with Apple?Competitive advantage Tait AE A eck oP he 9 Steve me dict crue of Al Crees tanga ie Wee he ippes bom a Ris indusey very ped ae paneer | Ser Patsy bet po te Ls Vege the secon week Mr Jobs mounts «sat in san Fangoco a Apples. Maco | Seve Apeey inepretuets all | PST ths week Mr Jobe went one step trier bres UF ae tt wae | ofthe to and by ross thal we pyar cota Pe ce cas tes aegis Senay © lc lye ling Nenu bat ceeture tommoc, be fi is returning 1 contest the mss ma. fet the Ion ago coded to Mico, Dalasi ges Pan Bs challenge i even cone bk nr enc te ed wh foing fom. stength to stengh The eel cnmtecomaiectas loans Joe, thout onthe Wo eworhics in th pat gear A te epee Gf chewper at Tose Crunch time for Apple Apple's Steve Jobs is having another go at the mass market for computers An Apple for everyone But Mr Jobs wants to attack even that remaining third of the market and this week he unveiled an Apple flash player, the iPod Shuffle. For Mr Jobs, who has never previously dabbled at the bottom of — nor explicitly attempted to dominate ‘any market, allthis is unprecedented, Even though the iPod now outsells Apple's computers by volume, most of the firm's revenues still come from the computers. So Mr Jobs still needs to fix Apple’ longstanding problem in its core business, which is that its global market share in computers seems stuck at about 3 per cent. Using the iPod's success 10 convert mainstream (ie. Microsoft Windows) computer users might be the way t0 do it This is why Mr Jobs also announced hhis most radical product, the Mac mini, a fully eciged But tiny computer. The twist, in Mr Jobs's words, is that itis BODKM, or “biing your own display, keyboard and mouse”. Buyers are expected to plug in whatever monitors and_ peripherals they have already. Leaving out these bits makes the Mac mini Apple's first truly low cost computer, “so that people who re thinking of switching will have no cuss” Says Mr Jobs. ans Glossary hhip_ fashionable, trendy cede give up, abandon dabble get involved in as an amateur peripherals printers, scanners and ther devices used with a computer revered respected and admired. Cutting the price tag by leaving out the peripherals is a shrevd way of min- Jmising two risks it unlikely to canni balise the sales and profit margins of Apple's more expensive models; and itis likely to snap many Windows users out of their inertia and into making th sith, * Mr Jobs hopes that as its seamlessly integrated range of products grows fur- ther, Apple will become the mast revered band in the digital home and in con sumer electronics. This is why Mr Jobs has opened 101 retail stores around the ‘world, their locations hand picked by a former Gap manager. It also helps that fan ecogstem of accessories is blooming. That growth will continue farther once ‘Mercedes, Nissan, Volvo and Ferrati have joined BMW and started to offer ilod Controls in. theit steering wheels, as announced by Mr Jobs this weele And it helps that Mr Jobs, also the boss of Pixar, 2 hugely successful animated-film studio, understands the world of entertainment better than probably any other boss in his industry, Apple leads the market for online music ‘with iTunes, which works only with the iPod, while Microsoft is pushing a rival software format, Windows Medi, in an attempt to make it the industry standard. Mr Gates could come from behind once again. On the other hand, Mr Jobs has been more circumspect this time around - designing (Tunes to work with Windows, for instance, doing mar keting deals for the iPod with Hewlet- Packard and Motorola and, with this ‘week's announcements, fighting off com- petition from lower cost rivals. It is too carly to tll which of these two generals is sll ghting the last war oo oe Unit 12 m1 103104 m Unit 12 © Read the text again. Complete the tables about Apple Computer and answer the questions. Apple Computer Inc. Competitive overview 1. Original market Fi roducts Competitors _| Current market share |New product [personal computers) Market objective 2 New markets [Pr & What are the two main qualities of Apple products? b How does the Mac mini differ from other Apple computers? raducts Competitors Current market share 1 2 3 Speaking Market objective } a How is Apple trying to defend itself against its competitors? What structural change has it introduced to distribute its products to a wider market? © What agreements has Apple made with other companies? What are the main reasons why Apple does not have a larger share of the personal computer market? Do you think that Apple’s new strategy for the personal computer market will be successful? Why / Why not? Expressions with have Look at the subheading of the text on page 103. Having another go at can be paraphrased as making another attempt to succeed in. Use the appropriate form of have with the following phrases to paraphrase the underlined words in the sentences below. trouble with alook at arighttoastakein noidea in mind | Could you check out the latest sales figures and let me know what our share of the computer market is? 2 What sort of marketing campaign are you considering? 3 We've encountered some problems with the software on the new operating system, 4 Blackthorn Industries owns a percentage of the company. All employees are entitled to know where we stand in relation to our competitors. © I don't know what they're planning to do. But the rumour is that they're bringing out a new versionAMERICAN HONDA MOTOR sz: | Vocabulary 2 Compound nouns Join nouns from the two boxes to form compound nouns from the text on page 103. Complete the definitions below with the compound nouns. mass niche core. = market_—_—profit business margin —share_~—player_——market, (para 2) a company that is present in a small segment of a market (para 2) the largest source of customers (para 3) the proportion of a market that a company occupies 4 _______ (para 5) the central activity of a company (para 7) the difference between costs and sales tice Complete the article with the appropriate form of words and phrases from Vocabulary 1 and 2. Piva, the highly successul computer animation company, was originally a divsion of George Lucas” company, Lucas Films. in 1986 Steve Jobs, who had a stake in the company, bought out George Luces and took contol Originally, Pixar's ‘was the creation of computer systems for visual processing, However, was never more than a > in this sector and its ¢__ investment. Pier was soon facing a citical situation as they were ® sales and improve & 7 thet the company was insufficient to justify futher sales of their machines. Ta promote John Lasseter, the creative director prepared a series of commercials, but he ne day film-making would become Pixar's main source of revenue. Today, Pika is one ofthe most ssctessul operators in its sector and has produced some of the most popular animated pictures for the \_, such as Finaing Nemo and The incredibles. Listen to a business analyst talking about the history of Honda. Take notes and complete the table. Company Develops first Enters US _Diversifies_ Enters new Future ‘opens product market ‘industries plans i Date Date Date Date Dates Date 1946 te ad pene BOBS now > Founder Product ~—-~Product-~«—=—‘Sector 1 Industry Soichiro Honda i <2 Ne odes ioc | a Company Product. -—=«~Product- = Product’ «= 2 Prototype name name name name ‘generators name 4 alreraft engines Unit 12 m 105Language check a) Practice Time clauses Study the examples taken from the text on page 103, ® Every January, he coolly stands aside while other industry bosses go to Las Vegas ... (para 1) » Mr Jobs hopes that as its seamlessly integrated range of products grows further, Apple will become the most revered brand ... (para 8) © That growth will continue further once Mercedes, Nissan, Volvo and Ferrari have joined BMW and started to offer iPod controls in their steering wheels ... (para 8) 1M Which of the examples above includes the following? | atime clause and a main clause both in the present tense 2 atime clause in the present perfect and a main clause in the future 5a time clause in the present and a main clause in the future |) Which of the verbs in bold above could be replaced by a present simple form? |) Study the conjunctions that can be used in time clauses. Which could be used to replace the conjunctions in the examples above? while as once —until(till) before/after whenever bythe time assoonas_ when Complete the sentences with the appropriate form of the verbs in brackets. You may need to use negative verb forms in some cases. | We (make) _will make _ every effort to get our new medicine onto the market before our main competitor (release) ____ theirs. 2 As soon as we (find) _____a supplier who can provide the circuits, we (move ahead) ____ with the production phase. 3 Whenever a new competitor successfully (enter) ____ a market, profit margins (tend) — to fall. 4 The new vehicle (go) ____ on sale until it (complete) its road trials. 5 Let me know when you (get) ___ the latest sales figures, and we (decide) what to do then. © Once the salespeople (understand) the advantages of the new model, it (be) —____ much easier for them to sell it. I don’t see how we (can / be able to) ___ confirm the orders ‘until we (know) —— when our dealers will receive the goods. Sandra (make) __ the necessary alterations to the website while Jodie and 1 (prepare) ___"‘the sales brochures.Career skills Listening 2 Speaking Culture at work Handling conflict When conflict occurs at work, it is important to deal with it appropriately before it causes further problems. Look at the following phrases, which can be used when handling conflict. a. Whether you like i or not. Can we set aside our differences? I don’t see what al the fuss i about What are your views on this? Tm sony, but there's no point discussing this any futher. Tm sure that won't be a problem. know we don’t see eye to eye on this but. Let's keep things in perspective. Look at three strategies for handling conflict and match them with phrases a-h. | Minimise: ignore a conflict or try to make it seem less important. 2 Accommodate: try to find a compromise solution that is in the interests of all those involved. Dictate: use your authority to impose a solution to the problem, What do you think the advantages/disadvantages of each approach are? 1M] Listen to three dialogues. What is the source of conflict in each dialogue, and which strategy is used by each of the six colleagues? Listen again. Which of phrases a-h above are used? (0) Work in pairs. Turn to page 143 and read the descriptions of situations involving conflict between a manager and member of staff. Take turns to play the roles of manager and member of staff, using a different strategy each time. ©) Think of a situation where you have been involved in conflict. ‘What was the cause of the problem? What attitude did you take? How successful were you at resolving the conflict? Do you think you reacted in the right way? How much confrontation? Some cultures consider conflict to be a normal part of working life and see it as a factor that can enhance performance and generate creativity. Other cultures, on the contrary, believe that interpersonal conflict should be avoided at all costs and that the interests of the individual should be subservient to those of the group or the community. Which of the two attitudes is closest to your culture? Unit 121107Dilem Dilemma: The cola comeback | Brief Parle Ltd is an independent company that produces and distributes soft drinks and sodas, including its best-selling Thums Up cola, on the market in India. Until recently, the company had been protected from outside competition by government regulations which prevented foreign competitors from entering the market. However, the government has now changed to a free-market policy, and foreign companies are now able to set up plants and distribution networks inside the country. Parle is well aware of the power of the US giants, Pepsi and Coca-Cola. But what can they do to protect their market? | Task 1 Work in groups of three. You are directors of Parle and you have arranged a meeting to decide what strategy your company should adopt to prepare Thums Up for the free market. Choose a role on page 143 and prepare the arguments that you would use to convince your fellow directors to follow your advice. Task 2 Hold a meeting and present your arguments. Task 3 Decide together on the best course of action for the company to adopt. Write it up Write an email confirming the decisions that you have made, Gee Suyle guide, page 20.) 108 m Unit 12 ecision Decision: © Listen to Dinesh Madhur talking about the strategy that was adopted for Thums Up.Language check Conditionals Complete the dialogue with the correct form of the verbs in brackets. A You know, if you (use) public transport instead of driving to work every day last year, I'm sure you (save) a lot of money! B_ You're right. And if petrol prices (keep) — going up the way they have done recently, it (Start) ____~_ to cost ‘me even more. But it’s not just the money — it’s so much more convenient by car. If (not/own) ___a car, I (have to) ___ take the bus to the station and then take the train, adding an extra hour a day onto my journey. \ Well, if (be) you, I (make) an arrangement with a colleague and take it in turns to drive. That way, you Pnotiwaste) any time and you (°save) money, too. B_ You're right. That's exactly what I should do, Future forms Choose the correct forms of the words in italics. | The company has confirmed that it might go/ will go ahead with its IPO as long as the ‘market remains stable. ‘Company spokesperson Gregory Hansett said that his firm will intend / intends to offer five million shares for sale. 5 The share price has yet to be fixed, but analysts say that it will / might probably be in the order of $10-15 per share. By the time its new flagship hotel is opening / opens in February, the group will become / ‘will have become the market leader in Asia 5 Some analysts say that the CEO will be asking/ ‘will ask for trouble if he takes the company public at such a difficult moment, © Economists are predicting that overcapacity erodes/will erode profit margins for the industry as a whole. Time clauses Complete the sentences with the following words. as soon as after while whenever when until _____ we first introduced the product, it was the only one on the market looking at all the facts, the management has decided to stop manufacturing in Europe. ) The contract is coming by express delivery. —____ you get it, sign it and send it back. It’s urgent! { _____ we run into design problems like this, it always seems to take so long to sort things out. I can give you an answer, but not —__ Ive had time to look at the latest sales figures. © At least we'll be able to do some work at home the office is closed for renovation. Consolidation Choose the correct forms of the words in italics. Chevron, the US oil company, announced that it has made a bid to acquire Unocal for $18 billion. The planned acquisition comes at atime lwhen/while many industry analysts are waming that oil prices “rise / will rise even higher than the recent peak of $58 per barrel If the specialists at Goldman Sachs “are / will be right, the oil markets “continue / will ‘continue to become even more volatile as world reserves Sare starting / start to diminish, “ReforelAfter Chevron decided to make the deal, one thing was already clear: if it hadn't ought / didn'r buy a competitor with access to reserves of natural gas, it Swon't be able / wouldn't be able to supply its clients” growing ‘appetite for this type of fuel. However, there is no doubt that even if petroleum prices eventually %fall/ had fallen, Chevron "would not waste / will not have wasted its money as itis paying for the acquisition with shares. 109mVocabulary check 1 Correct the adjectives in italics by adding or removing prefixes where necessary. (One of the arguments that is often used against wind energy is that it is not only neconomieal but also extremely reliable. 2 It is very hard to increase market share with products that are not uncompetitive. » Although solar energy will only become expensive once cheaper solar panels are available, it does provide a source of energy that is polluting, | ©) Choose the best options (A-C) to complete the sentences. | The companies have formed a(n) which fixes prices and production levels. \ monopoly cartel © agreement 2 The products have been designed for the and will be sold worldwide. mass market 8 niche market © stock market ® Companies can protect their markets by creating barriers Atoenter Btoentry of entrance & Another word for stocks and shares is Acapitals — Baccounts —_C equities 5 The advantage of energies is that the reserves they consume can be replaced. Arenewable § fossil fuel © electrical ‘They've bought another two million shares, giving them a 20% in the company. A stock B stake C part Career skills Problem-solving Match the questions with the responses. | | So, how are things going with the modifications? 2 What seems to be holding things up? > What’ the best way to fix this? 4 $0, how did it gor 5 Are you still on scheduler © There have been some minor delays but nothing too serious. b Well, ifthe worst comes to the worst, we may have to rewrite the entire program. m0 © Not that well, actually. I got stuck in traffic and missed my flight. The delay is because we don't have authorisation. Couldn't be better. We've just got two more to finish. Making a presentation Complete the extracts from a presentation with the following phrases. in other words as you can see moving on sum up in brief for instance Our company has always had a reputation for inventiveness —! we were the first 0 develop a viable biodegradable alternative to plastic. And we're an innovative company, ______, we're the type of organisation that responds to challenges by finding original solutions. Before 10 the next point, Id like to say a few words about our financial performance ~ ‘__ from this slide, we've increased our profit margins for the last year by 15 per cent. Before I conclude this talk, 'm going to § the main points that I have mentioned here this morning: “____ we're young, we're dynamic and, most important of all, were profitable. Handling conflict Put the dialogue in the correct order. [1] ® But you've known about it for ages. (1 © But people are still saying the colours are wrong. Well, not if it's going to ruin our salest 1 I don’t think I can get things ready in time. ] b_ Listen. I know we don’t see eye to eye on this, but it is just a minor detail. Right? Well, you'll just have to, whether you like it or not. Oh, please, let’s keep things in perspective! Its a good product, people like it and it will sell Stop worrying! Well, we can’t change them now. So there's no point discussing it any further.A path to helping the poor PAGE 113 Reference words Ge 116 Dilemma: Reliable research? AGE 118 TE sa Router RC a Bree ine ricer same a aA rere mec emerson CAL) Pee en private individuals and businesses. SS em eee UL Rose sc ters eaeae nC corporations or large individual customers. Microcredit banks or microfinance institutions (MFIs) lend sums of money to people in developing countries for small een ei112 m@ Unit B Speaking Speaki Banking institutions Which of the following banks do the things listed below? Central Microcredit Commercial _—_ Investment give loans to people who have very limited resources 2 advise campanies who want to go public fix the exchange rate of @ national currency & issue chequebooks and credit cards What are the main banking institutions in your country? What banking services do you use? How do you carry out your banking transactions (by phone / on the internet / at a branch, etc.)? Look at the table, which shows the main departments and services of an investment bank. Listen to three employees talking about their jobs. Which department does each one work in? Advisory/—_Portfotio Investment Capital and —_—Private asset Research _- management. debt management business risk market start-up TPs client ‘information companies management business sector stock reports venture capital corporate debt taxation analysis strategy and stock trading pension management planning Frank Matt Claudia Which of the departments do you find the most interesting? What do you think it would be like to work in an investment bank? Investing in development 1] Read the text on the opposite page. What is the main difference between Mr de Lesseps’ investment bank and the one described in Listening 12 ©) Read the text again. Are the following statements true or false? Microcredit institutions generally make loans up to a maximum of $1,000. Microcredit loans are less likely to be repaid than other high-risk loans. Over $3 billion is currently on loan under microfinaneing schemes. | Microcredit loan interest rates are based on risk assessments. 20% of the potential for microfinancing is currently being exploited. Do you agree that investment will help to solve some of the developing world’s problems? Do you think that it’s possible to mix business and philanthropy? What other ways of reducing poverty can you think of?INVESTING IN DEVELOPMENT. A path to helping the poor Microfinance institutions see the sense of investing in the developing world ) IN New York, people are ahvays asking me the same question,” Alexandre de Lesseps says: “Why do you ‘want to lend money to poor people in developing countries?” Mr de’ Lesseps, 54, an international investment banker, has a ready answer. “The only way 10 solve the problems of poverty and terror- ism in the world today,” he says, “is through investment.” As a co-owner of BlueOrchard Finance, a corporate bank in Geneva, he is one of the leading fig- ures in the world of microfinance. His firm manages a fund that currently makes about $50 million in short-term Toans to microcredit lending institutions jin more than 20 developing countries around the world, and BlueOrchard and its investors make a profit in the form of interest payments on the loans that they sake to such institutions, 2 Microfinance institutions typically ‘make loans in amounts of $1,000 or less {0 poor people in developing countries Who are ignored by commercial banks. ‘As a mule, microcredic louns are not backed by collateral, leaving no means of financial recovery for the lender if they are not repaid. But leading microcredit institutions claim that only five per cent of the loans they make are never repaid. This compares with five to ten per cent jn the consumer finance industry for borrowers with bad credit histories. Just less than $500 million is committed 10 ‘microcredit loans worldwide, according to BlueOrchard’s estimates. But Mr de Lesseps says he believes that today the total market for such loans may be near= ly $3 billion. > “He acknowledges that the aims of his microfinancing ventures are not purely philanthropic. “The reason we lend money, for people in developing ‘make money.” he ssid, “but ako so that our investors can make money.” The la tet, of course, have to be his primary concern. His involvement in microfi- snancing began a little over two years ago, when a Swiss banker and friend approached him about investing in BlueOrchard, which was founded by microfinance specialists Cédric Lombard and Jean-Philippe de Shreve) one-time employees of the United Notions, # "When de Lesseps and his team arrive in a country, they visit the central bank or leading aid institutions, the ones gen- erally doing microfinancing, Later, on- site research often takes them to interior llages, where families may live on less than $10 a month, “I visited a wilage in Cambodia where the people used micro- credit loans to buy irrigation equipment and seed, which they use to grow vegeta- bles” Mr de Lesseps said, “They are now selling the vegetables to exporters and to a local hotel. Such villages are being transformed from dust to being productive. You don’t ask for collateral fon the loans because they don’t have it. But they will die to pay you back because you are giving them a frsetime chance, Its a matter of pride.” > BlueOrchard typically charges two 10 seven percentage points more than Libor, the international benchmark for interest rates, for loans to local microcre- dit institutions, which then charge rates to their borrowers based on assessments ‘of risk factors. “I know that sounds pret- ty high,” Mr de Lesseps said, “But you hhave to remember that other forms of locally available credit arc five times higher than that.” © “Mr de Lesseps said he believed that 80 per cent af the potential for microfi- nancing worldwide remained untapped, and that the industry would easily be able to absorb more than $10 billion “For me, the only way to make a differ- cence,” he said, “is to make sure that the money going to developing countries is propetiy managed and not just thrown Glossary collateral assets that can be used a5 e.guarantse furs Laat philanthropic benevolent, interested in people's well-being Libor London Interbank Offered Rate (the rate of interest at which London banks offer loans to each Copyright (2003) by the New York Times Co. Reprinted with permission, Unit 3 13Vocabulary 1 Expressions with make Hl Look at the following example from the text. Microfinance institutions typically make loans (- lend money) ... (para 2) Complete the following expressions with make from the text. (Each can be followed by the preposition(s) in brackets.) | get/produce a return On an investment (para 1) make —_____(on/from) get/produce a return on an investment (para 3) make —— (on/from) have a positive influence on something (para 6) make _________ (to) [Dl Look at more expressions with make below. Complete them with the prepositions of, for, on or with. 1 make allowances 4 make an impression 2 make a habit 5 make a mistake —__ 3 make a deal — Vocabulary 2 Look at the collocations from the text. Why do you wart to lend money ...? (para 1) -- only five per cent of the loans they make are never repaid. (para 2) Which of the following verbs can be used to form collocations with money and a loan? pay off borrow lend secure invest deposit negotiate raise lose apply for save Practice Complete the article with phrases from Vocabulary 1 and 2, § Write a short letter to the communications director of the company you work for explaining why you think the company should contribute money to support microfinance. (See Style guide, page 16.) 14m Unit 3Investment bank for sale Read the extract from a newspaper article about Cazenove, a British investment bank, and answer the questions. ‘What services does Cazenove provide for its clients? Why do you think major investment banks wanted to buy Cazenove? Co ae’ See ee the banker for 43 of the UK's top 100 companies and also manages Deen ee am Coe a ey Ce eet ee eed Ce CC cee ee ers Ce eae Se ee mo Te oe De eC eee See It was JP Morgan Chase who finally made a deal with Cazenove. Listen fo an interview with Jeff Sanders, a market analyst, who is talking about the strategic alliance. Choose the best options (a-c) to complete the sentences, The alliance is a takeover. merger. joint venture. ‘The price JP Morgan Chase paid for the deal is ‘much less than other recent alliances they made. much more than other recent alliances they made. 50 per cent less than other recent deals. Cazenove is attractive because it is a very powerful bank has very important clients, is Britain’s biggest investment bank, Cazenove's sharcholders are mostly made up of employees. unhappy about the deal. concerned about losing control. The speaker says that in five years’ time JP Morgan will probably » pull out of the deal because of the penalties they have to pay. sell Cazenove to another US giant. Pay penalties in order to gain complete control of Cazenove, Unit B musReference words We use the reference words this, that, these, those, such, the former, the latter, one and ones to refer to something mentioned before Language check Study the examples taken from the text on page 113 and decide what the words in bold refer to. But leading microcredit institutions claim that only five per cent of the loans they make are never repaid. This compares with five to ten per cent in the consumer finance industry ... (para 2) “.. we lend money to poor people ... not only so that they can make money .. but also so that our investors can make money.” The Latter, of course, have to be his primary concern. (para 3) they visit the central bank or leading aid institutions, the ones generally doing microfinancing. (para 4) “tvisited a village in Cambodia where the people used microcredit loans to buy ... Such villages are being transformed from dust to being productive." (para 4) BlueOrchard typically charges two to seven percentage points more than Libor ... “But you have to remember that other forms of locally available credit are five times higher than that.” (para 5) the words in italics refer to. Jonas Okembo is @ microfinance ‘manager, "This involves calculating ‘the interest rates the bank should ‘charge customers on their loans. It also means deciding how long it will take disadvantaged customers. to repay both the principal and the Interest on the loans, *The farmer is tt 0) Read the extract from an article about a banker and decide what the actual sum lent and the latter refers to the percentage charged by the bank for the lending period. Rating the credit-worthiness of ‘such investors can be the most difficult part of the job, but as it often involves ‘travelling to interesting places, it is “the one he enjoys most. ©) Read another extract from the same article. Replace the words in italics below with the latter, that, such, the ones, these or the former. He was first attracted to the ‘microfinaneing sector by a desire to help people in developing counties. They are the poople whose projects he found the most challenging, and their motivation and enthusiasm were contagious. ‘Their motivation and enthusiasm 2 are the things that make them interesting and atte ee. get te thee At Ac tm 116 @ Unit 1B ‘worthwhile to work with,’ Jonas says. ‘US a great position to be in, and I'm sure that if didn't work in this type of 3___ an environment, 1 would probably have set up my own business. Originally, I wanted to go into the technology sector and then T thought about a career in International relations, but the technology sector + suffered. 4 slump in my final year in Dbusiness school, and 1 wasn’t really qualified for international relations ’__. However, being a microfinance account manager is what I want now and being @ microfinance account — manager ‘ is all that matters for ‘the moment:Career skills Listening 3. © Speaking Culture at work Persuading Persuading colleagues to agree with your point of view or follow the course of action you recommend can sometimes be a difficult task. You may need to use different approaches depending on the personalities and relationships involved. Look at the following useful phrases. a Unless you're prepared to .. Bearing al things in mind... We're ol inthis together. All things considered, I think .. 1¢5 in all of our interests to If you don't doit this way, then. After looking at all sides of the argument Match phrases a-¢ with the following approaches. 1 Coervion introducing a threat in order to get what you want 2 Reasoned argument showing that your point of view / solution is the ‘most logical or reasonable 3 Shared! interest creating a sense of common purpose Which of the approaches do you think is the most effective? 1 Listen to three dialogues. Which of phrases a-g above are used? Dl We tend to use a mix of approaches when persuading. Discuss the tactics or strategies the speakers use in the three dialogues and say which you think are most effective, and why. Work in pairs. Which of the following would you have to be persuaded to do? Take turns to try to persuade each other to do them. lend your new car to a friend for the weekend, invest your savings in a friend's new business scheme participate in a team training session where you will have to do a bungee jump live without your TV, mobile phone or computer for one month write a report criticising a colleague who is a friend of yours i Tell your partner one other thing you would never do. Your partner must try to persuade you to do it. Exerting influence If an attempt is being made to persuade them to do something, people in different cultures react in different ways, whatever approach is used. Junior colleagues may feel they have to accept whatever a superior suggests, or they may feel they should present an alternative argument or put forward an opposing view if that is what seems right to them. What is the situation in your culture? Unit 13 m7Dilemy ay ecision Dilemma: Reliable research? Decision: Brief LVMH, the company famous for Dior cosmetics and Vuitton handbags, | Now turn to page 140 to find out is suing the US investment bank Morgan Stanley for 2100m, accusing its | what happened. research analysts of giving false reports about its financial health. LVMH claims that the bank compared them unfavourably with their biggest rival, Gucci, who is a client of Morgan Stanley, causing the LVMH share price to drop. The bank counterattacked by seeking damages of c10m and the publication of the judgement, if it was in their favour, in 20 magazines and newspapers Task 1 Work in groups. Read the claims below put forward by the two sides Discuss whether you think these claims are valid. Why / Why not? Task 2 Work in groups. Based on the claims, prepare a list of persuasive | arguments which could be used by the spokespeople from each party. | Assign the roles of spokespeople to two members of the group and listen as they argue the points. Did you fee! more convinced by some arguments than others? Task 3 Discuss what you would do if you were the judge in this case. Would yout award the requested damages to either side? Compare your deision: with those made by other groups. Write it up Write the minutes of the meeting your group had in Task 3. (See Style guide, page 26.) LVMH - The Case Morgan Stanley - The Case + Thecompay dns that he bark was delbeaely and + Thebenkadmisthat hey di see pramate ther oun ent by ging sysemetcalyinirtothem nts sock esearer because ofthe __‘fevoabeinfamaton abt her, bute ao st tat they never es to deectcagtic ct ing te bans cert, Cua rake WMS suaton'ock wore han tas + ChreKeithe bar's ana s supposed to have stated tha + Theyatgu that ae Kens cre fhe best anat, and was voted Europe LiveHsecchadpesies ncwnuléntincease mile anymore, uu ons res fh et bynstinfonl esto agen fs cosnga seme depin the shar pre + They hatin now hates make mises For expe they were MorgnStrleysertanemaltotheriensto fom them tht ufo goetve bau tacanogy ls nthe ate 180 and nobody ie sane Lvescredtreinguasabouo be coungaded Thshadavey ther nan bad efect on ther marke credibility + They argue thatthe credit downgrade was based on 2 repon by he rtng agency + Morgan Stanley made negative preicions about te impact cf Siandare and Poo’ and that the ae not responsible forthe accuracy of ‘he weak yen on [YM profs, and also suggested they would infomation guen byte. have problems integrating clothes retailers they had bought ‘+ They da that hey were ight about the impact ofthe yen andthe integration of elothesretaller Donna Karan.A leadership lesson in Shakespeare PAGE 121 Clauses and sentence construction PAGE 123 Unit 14 Training ae laaQeM tlc nY=yaceleat Keynotes x Professional development opportunities Cee Rc es offered to working people who need to Cee ae sco aay eee See meme Tits Caer Re ee as online. Organisations pay for them ere Tae Raters ee ee Re ta Pace SUES Miter performance, offering staff opportunities A for training has a positive impact on —~4\-— DCs eee ea Penrice at Mees occ ue ere Rue eon eae cosPreview a IPD THE INSTITUTE FOR TRAINING AND DEVELOPMENT ‘Gus account directors will help you to define your organisation's exact training needs and will work in partnership with you to develop and manage specific {raining programmes to suit your business requirements. Whether you need to invest in technical training or general ‘management skills, offer ‘experienced trainers and a combination of diffrent courses to suit all levels of the hierarchy. Our customised training leads to ITD qualifications, and our flexible solutions packages include face-to-face and online classes to suit all budgets. b _ Java Tutor ‘The selection of instructor-led “ourses are designed fora computer users: non programmes, novice programmers and ava | profesional ale, We prove a complete range of Java computing solutions, from introductory to ~ exper level Through hands-on bxperlence labs, exeteises and ‘tutorials — trainees learn to issue programming commands effective Special corporate discounts are also -_ available for private classes & scheduled for your employees only. Writing [Reading 0 mUnit 14 Training solutions 0) Do you think it is important for a company to have a training budget for its staff? If you had to select a training course in one of the following areas, which would you choose to do? How would you make your choice? foreign languages (Japanese, Italian, Russian, Arabic or other) computer skills training (Web design, Microsoft Office, Database or other) ‘management skills training (Teamworking, Cross-cultural awareness, Presentations or other) Read the four extracts from brochures advertising training courses. Which ones would appeal to you, and why? i d Tanya Becker Group Our seminars will help your employees to leam about Stress Management and to apply those lessons to thelr working lives. Directly inspired by Tanya Beckers ‘award-winning book Stress Remedies, ‘we run courses In companies and organisations of alll types and sizes and help hundreds of delegates each year to recognise sires in themseles and others. Participants will focus on Tanya's ten strategies for coping with stress, hich will empower them to manage pressure effectively and take control of their lives. The course format ranges fram a one-day intensive workshop to regular weekly sessions. ©) Read the statements below and decide which of the institutes or courses they refer to. This company gives advice on appropriate training for your staff. Awell-known specialist designed this course. Part of these courses can be completed by computer. ‘The course is designed to help managers and high level executives only. ‘This course is cheaper if participants are from the same organisation. This course uses examples from literature (o illustrate business problems. Write an email to your HR manager, asking for permission to attend a training course of your choice. (See Style guide, page 20.) Motivational training (0) Read the text on the opposite page about a training organisation called ‘Movers and Shakespeares’ and answer the questions. | Which Shakespeare plays does it refer to? 2 Why is Shakespeare good for business trainers?MOTIVATIONAL TRAINING, A leadership lesson in Shakespeare Dramatic training courses bring dramatic results in the world of business training 4 ONE of the executives gathered at the Aspen Institute for a day-long lead- ership seminar using the works of Shakespeare was discussing the role of Brutus in the death of Julius Caesar, “Brutus was not an honourable man,” he said. “He was a traitor. And he mur dered someone in cold blood.” The con- sensus was that Brutus had seted with brutality when other options were open to him. He made a bad decision, they said at least as it_was portrayed by ‘Shakespeare ~ to sanction and lead the ‘conspiracy to murder Julius Caesar. And though one of the executives acknowl- edged that Brutus had the good of the republic in mind, Caesar was nonethe- less his superior. “You have to under stand,” the executive said, “our policy is t0 obey the chain of commanel.” 2 During the last few years, Shakespeare has assumed a prominent place in the management guru field, as business executives and book writers looking for an innovative way to advise corporate America have begun exploit- ing his wisdom for profitable ends, None more so than husband and wife team Kenneth and Carol Adelman, well- Known as advisers to Ronald Reagan, who started up 2 raining company called “Movers and Shakespeares”. They are amateur Shakespeare scholars and Shakespeare lovers, and they have com- bined their passion and their high level contacts into a management taining business. They conduct between 30 and 40 seminars annually, focusing om half a dozen different plays, mostly for corpo- rate clients, but also for government ‘agencies. >The seminars all take the same for- ‘mat, focusing on & single play as a kind of case study, and using individual scenes a8 specific lessons. In Julies Caesar, for example, Cassius's sly pravo- cation of Brutus to take up arms against Caesar was the basis for a discussion of methods of team building and grass roots onganising. ‘The funeral orations provided a basis for a debate about the relative merits of logic and passion in persuasive speech making, * “The programmes do conform to ce tain familiar contours of management tuaining: the day’s final exercise always involves each participant reciting “what I learned” and “what I'l do”. But the ses- sions also include clips from film ver- sions of the play at hand; the Caesar seminar, for example, showed Marlon Brando’ besceching, “Friends, Romans and countrymen” to lend him their ears. In addition, the Adelmans travel with certain props, and throughout the day executives were prompted to deliver text readings wearing Roman helmets and toras. © “Although neither of the Adelmans is academically trained in literature, the programmes contain plenty of, Shakespeare tradition and background, ‘Their Henry V seminar, for example, includes a helpfol explanation of Henry's winning strategy at the Battle of Agincourt. But they do come to the text With a few biases: their reading of Henry minimises his cynicism and more or less excuses his abuse of power. Instead, they emphasise the story of the youth ‘who seizes opportunity and becomes a ‘masterful leader. And at the Caesar sem inar, Mr Adelman had little good to say about Bruns, saying “the noblest Roman of them all” couldn't make his rind up about things. ® Many of the participants pointed ro very specific elements in the play that they felt to be pertinent. Caeste’s arro- lgance, which led to his murder, and Brumus’s mistakes in leading the conspi- rtors after the assassination, they said, raise crucial questions for anyone serving in a hierarchy: when and how do you resis the boss? 7 And it did not escape the notice of those in the room that the conspirators’ hurried act of revolt failed to consider its aftermath, the Jesson being that thor- ough planning, for any leader, is para ‘mount."Those who would depose Caesar had, in effect, no exit strategy. In the end, a more’ philosophical discussion ‘evolved about leadership itself, some- thing the men and women in the room agreed was worth considering more often than they do. Glossary sanction officially agree to sly cunning grass roots fundamental or basic level beseech invite props theatrical costumes and scenery (property) toga long robe, item of clathing aftermath period of time after a terrible event Unit 14121D Read the text again and answer the questions. | What kind of man did the group of managers think Brutus was? 2 In what way was Brutus’s planning insufficient? 3. What assets do the Adelmans have which have contributed to the success of their training firm? 4 Which executive skills do they explore using Julius Caesar? 5 Which aspects of the training are similar to more conventional ‘management courses? © What are the virtues of Henry V, according to the Adelmans? 7 What did the participants think they should do more often? 5) According to the text, which of Shakespeare's leaders are guilty of the following faults? 1 dishonour 5 cynicism 5 arrogance 2 manipulation © indecision © shortsightedness Speaking fl] Discuss the following questions. 1 Would you enjoy a training course where you had to act out scenes from Shakespeare's plays? 2 How would you feel about wearing a Roman toga and helmet during a training session? 3 Can you think of other leaders like Henry V who could be used as leadership models on business training courses? 4 What other plays or films might be useful to business trainers? Fl Read the extract below from Shakespeare's Henry V and the notes about it. What lessons could this speech teach managers about motivating their staff Discuss the following questions. | What does Henry V say to make the listeners fee! part of a team? 2 What rewards does he offer them? 3 What does he say to make them feel that their project is worthwhile? What else could managers learn from this speech? Henry V speaks to his soldiers before they go into bare, and tells hem Language notes now they will aways be remembered if they fight bravely alongside him io ee ea He then continues with: wae Persie We few, we happy few, we band of brothers: ee FFor the to-day that sheds his blood with me eal Shall be my brother: BA pon “This day “shall gentle his condition ‘And gentlemen in England now a-bed ‘Shall think themselves accursed they were not here eee nalts re eet cP A eh Listening 1 © Listen to a trainer who is using this speech to illustrate his course on motivation. Compare what he says with your answers above. 122m Unit 14Vocabulary Practice [Language check {Hl Put the following words, taken from Preview and the text on Page 121, into four groups: Teachers, Sessions, Students, Methods. seminar instructor trainee case study delegate programme course roleplay participant trainer tutor ©) Read the text on page 121. Find verb-preposition combinations which have the following meanings. 1 (para 3) concentrate on cL atea se 2 (para 4) comply with eae 3. (para 6) mention (as important) 4 (para 6) be the cause of Which prepositions are used with the following verbs? 1 result 2 relate © (tea We report. Complete the dialogue with the appropriate form of words and phrases from this Vocabulary section. Sue: Hi, Mike. I've just signed up for that "course, ‘New issues in management. ‘Mike: Yeah, me too. 1 hope they're going to * ethical issues in ‘management. That's something I've been trying to get people around here interested in for some time. Sue: They probably will. heard the *___are pretty radical people and don’t exactly stick to traditional methods. The last time they did sessions here it some pretty dramatic changes. Some people didn’t °_____ them very well and a few of our more conservative colleagues resigned! remember that. 'm not sure we need to change things all that much, but it would certainly be nice for *__ like us to have the chance to talk about our own particular problems here. Sue: Yes, that's true, but things can get a bit unpleasant if we have to discuss how we ’____ management - and each other. Tm not worried about that as long as we don’t have to do too many & like last time ~ they/re sure to ask me to take the part of the CEO again! Clauses and sentence construction Many sentences contain several different parts, or clauses, each with its own verb. When the main focus of a sentence is contained in one of the clauses, it is referred to as the main clause. The other clauses are subordinate clauses. Study this example taken from the text on page 121. Many of the participants pointed to very specific elements in the play that they felt be pertinent. (para 6) ‘The main types of subordinate clause are explained in the table on the following page and an example is given for each. The third column shows some of the words that are used to connect the subordinate clause to the other clause(s) in the sentence. Unit 14 123Type Used to seb tetas Used with ... relative give adeitional information about something who, which, that. (see unit) that is referred to which was conducted over a period of to years conditional refer to situations that are possible or (see unit 10) hypothetical as long as they can find an English-speaking if unless, as long as... representative to do the basic work for them time Give information about the timing or duration (see unit 12) of something after before, while, as... © After interviewing several hundred UK export managers purpose indicate the objectives or intentions behind an action to, in order to/that, «1 in order to attract the foreign custom they need so that... concession show contrast between two clauses ‘although, though, © despite the fact that UK managers have very despite, in spite of. different opinions about the importance of foreign languages ‘manner describe the way in which something is done asi ike. £ just ke managers in other groups result explain the consequences of actions or s0/such ... (that), $0, developments casa result «and as a result, this group tends to avoid business opportunities reason explain the causes of actions or developments since, becouse, 05, hi Since they do a lot oftheir business in incase... inon-English-speoking countries an . Practice Complete the extract from a report about language training with the example clauses from the table above. The objective of the BCC’s language survey was to analyse the relationship between foreign language use and export performance. ! i i s the BCC analysed their responses to a standard questionnaire and used this information as the basis for the report. The findings of the survey,” show that * » they do agree on one ‘thing: English has now established itself as the international language of business, ‘The study divides UK exporters into four distinct groups: Anglocentries choose to do business exclusively with countries that have had close historical ties to the UK and a tradition of using English. But this is not a dynamic strategy ¢ _ that present themselves in other parts of the world. Opportunists do not like to have any direct business dealings in a foreign language. But they are prepared to consider doing business with non-English-speaking countries * : Adaptors go further ® and that involves mé information and sales literature in the local language, ing an effort to present product Enablers are the most sensitive to linguistic and cultural identity and integrate these two factors in their strategic overview.” » they ensure that information about all aspects of their business operations is available in the national languages of the markets where they are present However, \__ they too are reluctant to actually conduct business in a foreign language. 124 m Unit 14Career skills Listening 2 © Speaking Culture at work Motivating When people feel motivated by their jobs, it gives them a sense of personal satisfaction, which results in better quality work. Keeping staff motivated is therefore a priority for managers and supervisors. Look at the followring phrases, which can be used to motivate people. a We're alin this together. This is the last chance I'm giving you. I'm offering an additional commission to whoever... Its in everybody's interests to... Tim going to let you handle this. You get the business, you get the bonus? Come on. You've gat to de better than that! Would you like to take full responsibility for this? Look at the following approaches to motivating people. Match phrases a-h with the different approaches. 1 using authority/threats 2 establishing a common purpose 3 giving people a financial incentive 4 empowering people to work autonomously Listen to four dialogues. Identify one sentence from each dialogue to add to the list (a-h) above. Indicate which approaches the sentences correspond to. [] Which of the approaches in the dialogues above would work for you? Which would you adopt if you were a manager and had to motivate a member of your staff? Dl Which of the following do you think are motivating? knowing that you are part of a team effort knowing that the company is concerned about working conditions fear of losing your job being recognised for what you have achieved working for someone who inspires you being offered training courses to improve key skills © Work in pairs. Take turns to play the roles of the manager and employee in each of the situations on page 144. As manager, decide which approach you would adopt in order to motivate the employee. Providing incentives How people react to incentives to motivate them depends on their cultural background. In some cultures, people are mainly motivated by the desire to achieve power and status, while in others there is less focus on individual achievement and more on the interests of the group as a whole. What would motivate people ftom your culture? What problems could result from proposing the wrong type of incentive? Unit 14.125Dilem oo ecision Dilemma: Allocating the training budget | ariet Ashdown and Kennedy, a manufacturing plant, had to take their absenteeism problem seriously when they discovered that on any given day 10 per cent of the factory staff were off sick. In addition to this, high staff turnover was increasing recruitment costs and reducing productivity. They asked People First, a human resources consultancy, to conduct a full study to ascertain the reasons for these problems and to come up with solutions. ‘The study revealed that the majority of staff complained of poor relations with line managers, who were said to be authoritative and inflexible, and suffered acute stress due to co-worker disagreement the generally bad atmosphere in the workplace. Some of the staff obviously had genuine ill- health problems, bad backs being the most common, while more had problems caused by poor diet, being overweight and lack of exercise. Task 1 In groups, read the extract from the report that People First produced and discuss ‘the benefits and drawbacks of each of the proposals. Task 2 Decide which option or combination of options you would choose for the Short term and for the long term, and give reasons. Task 3 Present your arguments to the class. Write it up Write a short report on the Ashdown and Kennedy problem and how you would solve it. See Style guide, page 28) 126 Unit 14 (noo he best ways to retain staf and keep ‘atvatonal eels highs to provide incentives through raining schemes We therefore propose that you conser the option of implementing ar annual taining budget of pproximaiely 5% of the payroll kinds of ciferent raining Option to consider your particular creumstances areas follows 4) Health and Fitness Awareness Training ‘oral staf members Took offer courses on eccuational heath and ‘general fitness anarness(keging people healthy and showing corporate social responsibil), ost: 30% of burst ‘could provide gy and fines fits on ‘he premises, complete witha fies trainer, forest longer results, ost: 100% of budget ») Stress Management Coursesr al sta members Key Associates claim that stress-related ives are alnays the main reason for absenieeism, Decision: © Listen to what Joyce Moothead, an HR training consultant, thinks about the options available to Ashdown and * help peopeto thnk more positively, manage time, enjoy challenges and enhance relationships with co-workers and managers provide ~ inlensive one-day tess awareness courses. Cost 208 of budget ‘xersive courses un over several weeks, wih stress consultant valle for one-t0- tne aisussions wih sat members Cost: 70% of budget 6) Management Stylo Training al ine managers ‘The Future Manager Consultancy of tallor- made traning courses or line manages propose course based on developing good listening sil, sting eachabe goals, becoming batter communicators and working ‘wards fad cli ht you provide dictatorial managers wit tne appropriate training, you wil be ‘aking postive ste towards solving stat absenteeism, turnover and heath problens, Cost 60% of bude.Global professional-service firms Unit 15 ce Reported speech D PAGE 132 Oveyet ibe te bets vweulongmar-elt.com wnw.economist.con Dilemma: Consultant with a conscience PAGE 134 The advice Keynotes Professional-service firms provide services to other companies, which often rely on expert advice from consultants who advise on strategy and poticy making. Investment banks and finance companies offer advice on financial transactions, while bookkeeping and auditing are often outsourced to independent accountants or auditors. Legal matters are placed in the hands of taw firms, and information technology systems are regularly looked after by external professionals. Some professional- service firms provide ‘complete solutions’ by offering legal, accounting and strategic expertis However, in the USA recent legislation limits the extent to which, for example, audit firms cai policy advice on other aspects of business due to the conflict of interests this practice gives rise to.128 m Unit 15 Preview Consulting services Speaking | Reading Match the services (1-6) that the Chicago Consultancy Group offers with the following areas of expertise. branding comporate development pricing _strategy retail globalisation Wo hel fims to hove highly codnated approach othe image they want oped. ‘Manages today offen exsue tho they shal focus on reducing costs to stay competitive. Tiss not the nly cause of action o const Someines chosing to ave expeste product isthe bes option. Coting chove average shareholder volue hrs moved othe cen of he senior onogerent onda le help ‘nonags a oke the bes exansion opin Camgoies hove toda wth may more markets than in th pos, ond ot diferent leva of economic ‘evelopment. Fecsng onthe conging reeds and behvcur of consumers eps our cents merge sade in hs scr. Tis the coe espct ofall cu adie. We hl cents plan othe fut ond put forward the bas opin to «toase fom in all eas ote business, Read about consultants below. What arguments can you think of for and against employing them? Some people are very sceptical about the value of consultants’ advice. There ‘are many jokes about them, such as ‘A consultant is someone who borrows your watch to tell you the time? Top consultancy firms charge clients up to, $10 million a year for advice, whether it improves performance or not. Cross-border consultants [fl Read the text on the opposite page. How did the strategies adopted by the accounting firms differ from those of professional- service firms in general? Read the following sentences taken from the text. Complete the text with the sentences. 1 Assmall group of firms is showing how this should be done. 2 Russian subsidiaries now tend to be run by Russians, who prefer to buy services from fellow nationals with detailed knowledge of local conditions and rules. 5 Wherever western multinationals went to set up or buy a new business, there too went their accountants, bankers, consultants and lawyers. 4 And what they are looking for is not the biggest global brand name in their neighbourhood directory, nor the firm with the broadest range of services on offer. 5 ‘Things get done among such groups of individuals more by face-to-face persuasion than by impersonal commands used by their clients. 6 For the likes of Arthur Andersen, these problems and conflicts have already ended in disaster.Cross-border consultants os Glossary heady stuff very exciting moment cascade huge amount blue chip well-known and successful Global professional-service firms At last there is an ' LIKE the various groups of helpers that accompanied ancient armies on the march, professionalservice firms fol lowed "their industrial clients as hey expanded amund the world in the 1980 and 1990s. (@) From Mosow to Buenos Aires, Ge efficient profession. alservice firms were ready to advise on ‘what deals to do, how to finance them, hhow to compute their consequences and how to solve any problems involved. 1 was heady stuff, and it led some professional-service firms to decide that they should follow their clients’ exam ple and go global as well. They dis patched their ambassadors around the ‘world and waited for them ‘0 attract the new business that would justify their cost. The accounting firms, Which ‘were among the more aggressive. glo- balisers, thought they could be likened to all the groups of helpers as well as to the armies themselves. They took over consultancy businesses, finance compa- nies and law firms, setting themselves up as global chains of one-stop shops with a “we do everything” attitude: "While youre in for an audit why not buy a bit of litigation, too? And by the ternational strategy that seems to be working way, today we have a special offer on restructuring your company.” This was a strategy which created ‘enormous managerial problems, in addi- tion to introducing a cascade of poten- tial conflicts of interest. among firms increasing regulatory and professional duties. (b) For others, such conflicts aie still Being discovered, [process which is being speeded up’ by legislation. Americas SarbanesOxley Act bans accounting firms fiom carying out certain consulting and legal services for their audit clients, and there are growing restrictions on the provision of tax services a well © The “do everything everywhere” strat egy looks like a problem for profesion- alservice firms, too, because no matter hhow multinational their elients, those clients buy very few oftheir professional services centrally. Purchases are, by and lage, the responsibility of local man- agers.) They want the best Service for each individual task, and the nature of professional. seivices is such that “the best” invariably involves. a combination of superior losal knowledge and close customer-lient. relationships. Besides, the managers of multina- tionals’ foreign operations are less and less likely to be expatriates these days. @ When those ancient armies had fought their bates and finally won, they left behind locals to run their hard-earned territories. The various groups of helpers returned home with the troops * Yet there is a need for professional- service firms to be international, to a Timited extent. Firms in the European Union increasingly need 10 take a tans national view of things. And someone has to coordinate the multinationals’ local service providers, be they auditors or lawyers (e) The socalled “Charmed Circle GF Bluezhip New York law firms has an enviable record of prof itability, combined with modest intema- tional expansion. Most of these firms have also chosen to join an informal net- work of topranked firms around the world. The network’s firms exchange Tawyers and run joint training pro- grammes () Until someone proves there Te @ Batler approach, this seems the way forward for most other [professionalservice firms as well m Unit 15 129130m Unit 15 Speaking Vocabu ©) Read the text again and answer the questions. | What kind of problems did the accounting firms’ strategy create? How has the US tried to solve some of these problems? 3 Why do some global companies not use the services of global consultancies? 4 Why is it necessary to have some international professional service firms? ‘What have the top New York lav firms managed to do successfully? 1) The text refers to many different groups of people or institutions. Complete the statements below with the following. Accounting firms New York law firms Arthur Andersen ‘Managers of foreign subsidiaries The Sarbanes-Oxley Act Industrial clients of professional-service firms | —__ decided to go global first. — developed a takeover strategy to form conglomerates. ——_—__ prevents audit specialists from giving advice on certain strategic, tax and legal matters. closed after serious financial scandals. 5 —__ are rarely expatriates. have the best approach so far. 11 Do you think consultants can be objective when evaluating the strategies they have implemented? P) What advantages do you think ‘face-to-face’ persuasion has over impersonal commands from an unknown person in the hierarchy? How would you prefer to receive instructions? Uses of like 1] Study the examples taken from the text on page 129. They all contain expressions with like. Complete sentences 1-4 with the correct expressions with like. © Like the various groups of helpers that accompanied ancient armies (para) The accounting firms .. thought they could be likened to all the groups af helpers as well as to the armies themselves. (para 2) © For the likes of Arthur Andersen, these problems and conflicts have already ended in disaster. (para 3 ~ missing sentence 6) She said (that) he had been there the day before. ‘We don't always make these changes, especially when reporting a fact that is still true or when reporting very soon after the direct speech. ‘Consultants can be helpful because they re objective.’ —> ‘they told us (that) consultants can be helpful because they're objective. —> ... consultants could be helpful because they were objective, We offen summarise and use different wording instead of reporting word for word. ‘It is important to do some research and check as many of the facts as we can and only then discuss everything so that we can come to a decision about what course of action we should take.” —> He said we should look into it all first and then decide what to do next. We can use other reporting verbs, which can be followed by: an infinitive (agree, ask, decide, demand, offer, promise, refuse, want): ‘Til reduce the fees if you like.’ > He agreed to reduce the fees. a gerund (admit, deny, mention, recommend, suggest): ‘I made a mistake with the figures.’ > He admitted making a mistake swith the figures. an object + infinitive (advise, ask, instruct, invite, remind, tell, warn): You should lower your prices.’ —» They advised us to lower our prices. 1 Listen to the managing director of a department store talking to a consultant and take notes under the following headings. 1 market share 4 options 2. pricing policy 5 consultant's advice 3 customer survey results ©) summarise what the speakers said. Answer the questions below using reported speech and the reporting verbs in brackets. 1 What did the managing director say to the consultant concerning market share? (ell) What did she say about their pricing policy? (admit) Which results of the customer survey did she highlight? (point out) How did the consultant react? (ask) How did she answer him? (explain) What did the consultant tell her to do? (advise) If you were the managing director, would you take the consultant's advice? Why / Why not? You are the managing director in the conversation above. Write a formal email to your staff, summarising the conversation you had with the consultant. (See Style guide, page 20.)Listenin Speaking Listening 3 Culture at work Reporting ‘large part of office life is spent reporting back orally to one's colleagues and bosses about conversations at formal and informal meetings. Reporting back requires accurate observation and memory skills as well as summarising and, ‘communication skills. Sometimes the person reporting back is also expected to make a recommendation about a course of action or decision to be taken, Look at the following useful phrases for reporting back on conversations and meetings. a We finally all agreed to ... © What he wants us to do is b He suggested telling them .. f The bottom line is... What he was trying to say wos 9 Trecommend / I suggest In short, she is refusing to Listen to a line manager reporting back to one of her team members and answer the questions. ‘What is the first speaker reporting on? How does the second speaker react? 1 Listen again. Which of phrases a-g above are used by the first speaker? Work in pairs. Student A tum to page 139. Student B tum to page 144. Read the dialogue of the meeting. Imagine you were at the meeting too and report back on it. Listen to both dialogues and decide if your partner reported all the necessary information. Reacting to change Some cultures adapt quickly to change and see it as a matter of course or even progress, development and growth, Some cultures are more Conservative: they resist change where possible and perceive it as always being problematic and negative; and they don’t like to take advice from an outsider, What is common in your culture? How might this difference cause misunderstanding in multicultural teams? Unit 15 133Dilem 7 ecision Dilemma: Consultant with a conscience Decision: Brief CIC Consultants is proud of the performance of one of its main clients, © Listen to what someone with Power US, a global energy trading company. They have reported high a similar dilemma decided to earnings and a 10 per cent growth rate since the consultants started | doand what the advising them five years ago. CIC not only gives advice on strategy, but its. | consequences were. auditing department produces the official figures for Power US as well. Sue Kelly, a senior accountant at the consultancy firm, was first alerted to problems when the CFO of Power US asked her to lie to one of the company’s partners about an investment. She refused on moral grounds and soon after that her boss transferred her to another company. | Recently, she discovered that Power US is involved in massive fraud and she is now facing an ethical dilemma: should she report what she knows to an outside financial regulator? Both companies are very powerful and even though she can provide proof, her word may not be taken seriously and in that case, she will never find another job in consulting. Task 1 | Work in small groups. Read the consequences of the two options apen to Sue Kelly. Can you think of any other possible outcomes in each case? Option one If Sue reports the problem to a regulator, and they open an investigation .. ‘+ She will lose her job immediately. ‘© Power US and CIC Consultants may go bankrupt. + She will have to testify in court against former colleagues. * The bosses of both companies will have to pay huge fines and possibly go to prison. Option (wo IF Sue decides to say nothing and leave CIC Consultants + Itis possible that the fraud will never be discovered. + Itis also possible that things will get even worse as time goes on. * She will feel responsible for not stopping a criminal activity * she could probably find work in another consultancy firm but would have to lie about her reasons for leaving CIC. | task 2 Hold a meeting to decide which option she should take. | Task 3 Choose a spokesperson to report back to the other groups what was said and decided at your meeting. Write it up Write the minutes of your meeting. (See Style guide, page 26,) 134m Unit 15Language check Reference words Read the article and decide what the words in italics (1-6) refer to. Then complete the rest of the article (7-10) using some of the words from 1-6. Gti, te famous ivesent tank, cn race its origins back 10 1887. "Thar was when ‘Mareus Goldman set up his ist company in New York. ‘The bank was the frst Zone to set up a Mergers and Acquisitions department and a Real Esiale Management department. “The former specialised in advising companies who wished to form partnerships with or acquire other businesses, and ‘the later provided advice for the management ‘and acquisition of business properties. “These were 1wo of the foundations of the company’s success. ‘The company has always had a unique reputation on Wall Sueet. "This is partly due to the fact that the ‘company was one of very few private investment banks, However, all” ‘was about to change, and in 1909 it launched iw own IPO. * was a hugely. successful operation, raising @ record ‘$36 billion. Since then, the company has continued to perform well and increase its range af services, Today id include debt restructuring For governments and asset management for cathy individuals. Gokdman Sachs’ client list inludes such companies as Samsung and Daimler-Benz. Only recently, it advised is merger With fellow automobile manufacturer, Chrysler. Clauses and sentence construction Complete the sentences with the following words or phrases. since unless inorderto although despite until, ~~ which whose 1 Mark Simpson, company specialises in security training, will be leading the frst session. 2 ______ some companies do provide systematic language training for all staf, most do not. 5 There is no point in giving employees expensive training it contributes to improving their performance at work. 4 The stress management workshops were introduced reduce the number of workdays lost to stressrelate ‘We can’t fix a date for the training course we know exactly who needs to attend. — a 10 per cent decrease in our training budget, we have been able to offer a wider variety of courses than ever before. we do not have the facilities here at head office, we will be running the course at an external training centre. Improving the communication skills of our sales staff is one of the areas wwe need to focus on. Reported speech Find and correct the mistakes in the phrases in italics. Some of the phrases are correct. The auditors have asked we give them full access to our financial records. Our advisers have suggested introducing a standard invoicing procedure for all divisions. ‘They have refused accepting responsibility for the programming errors and they have told that it is our own fault for installing the system incorrectly. The consultants have advised that we not employ any extra staff during the coming year. The firm has promtised to complete the survey of our accounting procedures by the end of the month Consolidation Choose the correct forms of the words in italics. In the forthcoming fight to eliminate global poverty, | "whichithat remains ane of the UN's top priarias for the coming decade, microfinance wil be playing one ofthe key) rales inthe attack. Microfinance is nat charity, say ister supporters, thaviwho erque that “thsi only enother form of investment, ‘since/etthough it provides credit to fon income households. Kofi Annan, twhose/who’ efforts to. alleviate poverty around the world are well-known, tundorstands how dificult 7¢this wll bo to make tha UN's Year of Microfinance a success "unless/despite microfinance institutions and WallStreet invesiment banks can find @ may to work together to reduce poverty “wfilewhen enabling the rich to stay rich. Speaking at a { recent conference, he "advised/suggested tis audience © ‘that "for/in order to achieve ths, "the former / the latter ‘would have te make some fundamental changes tothe way ‘they so0 thair role in the twenty-first cantury BomVocabulary check [1 Complete the text with the appropriate form of the following verbs. pay off loan borrow invest deposit save ‘Anwar Khan runs small Bieyele repair shop. He sted his business when a microcredit bank agreed to give him 2 e ‘of $100. With the money, he was able 10 i in basic equipment and ices for hs workshop. Aero year in busines, Anwar its half of is {bc to the ME and he has also sonal su of money which he has inva savings account. He now intends to use that money as security in order 10 ® ‘the $500 that he needs expan his business futher. ©) Choose the correct forms of the words in italics. 1 We illustrate our strategic planning course with specific case studies / tutorials, which focus on what companies have done in the past. 2 All trainees/trainers will be given the choice of attending either an intensive seminar or regular weekly classes. 5. The HR department has announced that there will be a 15 per cent reduction in the training course/buuiget this year. 4 As levels of stress increase, this eventually leads {for/to lower productivity. In today’s seminar, we are going to focus at/on some simple exercise techniques. 5) Complete the sentences with the following words, adding an appropriate suffix where necessary. manage finance regulate knowledge 1 The best way to ___ further development would be to sell a stake toa venture capitalist. 2. Isa pity that Jeff has decided to leave. He is one of the most —_____ consultants we have. New graduates always have the technical qualifications but not always the —____ skills needed to supervise staff at work. 4 ‘The SEC aets as the official _______ for the stock exchange, and all listed companies have to comply with its rules. ‘The ____year is divided into four three-month periods, or quarters. 6 Jane Farley has been promoted to CFO, and she ‘will be joining our senior team. m6 || Career skills Persuading Match 1-5 with responses a-e. | Unless you're prepared to make an effort rll have to consider terminating your contract. 2 All things considered, it would be best to postpone the launch for six months, 5 After looking at all sides of the argument, 'm recommending that we cancel the project immediately. 4 Lthink we should forget our differences and just focus all our efforts on finding a solution as quickly as possible. 5 What will happen if we lose the contract? a agree there's no point in wasting any more money than we already have. b But then our competitors will get their products out first, won't they? © I don't see how you can say that. Ive always done my best, and you know it. i Ithink we know that it’s in all of our interests to make sure that doesn’t happen. © You're right. After all, we'e all in this together. Motivating Find and correct the mistakes in each sentence. Ym going to let you to handle this. Its in all everybody's interests to sell now. Would you like taking responsibility for this? Come on. You've got to do the better than that, Were each in this together. Reporting Put the dialogue in the correct order. And what did they say exactly? 2 What! They're not suggesting we get rid of it completely, are they? So, what did the European director have to say about that? I wonder what the outcome will be. a So, what happened at the meeting? They said they wanted us to sell our European subsidiary. Well, the consultants gave us a full summary of their findings. In short, she is refusing to consider that. [1] b Pimafraid they are, yes. The bottom line is that we may have to close the whole business ifwe don't. Oo oon oo oO