TOPICS FOR REVISIONS-ESP1

Unit 1: Management
1. What is the function of management?

- The process is used to accomplish organizational goals through planning,

organizing, leading, and controlling people and other organizational resources.

2. What makes a good manager?

- Planning: setting achievable objectives and developing appropriate strategies

to actualize them; be able to allocate human and financial resources

- Organizing: analyzing and classifying the activities of the organization and

the relations; dividing the work into manageable activities and then into
individual tasks; selecting people to accomplish them

- Integrating: communicating objectives to the people responsible for

attaining them; having to make the people who are responsible for
performing individual tasks for teams, making decisions about pay and
promotion, practicing the social skills of communication and motivation

- Measuring performance: analyzing the performance of the staff to see

whether the objectives or targets set for the organization as whole and for
each individual member of it are being achieved

- Developing people: both subordinates and themselves. A good manager

needs to maximize the value for shareholders

3. Write a brief summary of each of the five tasks listed by Drucker.

SUGGESTED ANSWER:

The prospect of the company whether it can maintain the long-term development
or die out depends mostly on the competence of managers. According to Peter
Drucker, a good manager has to accomplish at least 5 fundamental tasks: planning,
organizing, integrating, measuring performance, and developing people. Besides,
they need to anticipate the market trend, therefore making some modifications in
order to maintain the company’s survival. Good relationships with other people,
especially with clients, are also a key factor leading to the qualification of managers.
To conclude, manager is, indeed, a arduous and demanding position, which not
everyone can pursue it
 Unit 2: Work and motivation
1. The importance of motivation
Firstly, motivation is a driving force that enhances the individual and organizational
performance:
+ higher productivity levels ⇒ employees more engaged and satisfied; hence lowering
absenteeism and turnover.
+ enhanced creativity because it drives people to think outside of the box and come up with
new and innovative ideas.
+ increase workplace harmony as motivated people are likely to trust, cooperate and
communicate effectively with the managers, which can foster labor relations in the workplace.
+ improving a company's reputation and strengthening recruitment. By motivating
employees, companies can create a positive and productive work environment that attracts and
retains top talent and motivated and engaged employees capable of providing excellent
customer service.
-> Effective leaders and organizations understand the importance of motivation and work to
foster it among their teams.

2. Common types of motivators

Hygiene factors Motivating factors

● Extrinsic to the job ● Intrinsic to the job

● Can not lead to employees’ ● Can lead to employees’
motivation motivation

● Interpersonal relations ● The work itself

● Salary ● Possibility for growth
● Working conditions ● Responsibility
● Company policies and ● Recognition
administration ● promotion
● Supervision

Having a challenging and interesting job, recognition and responsibility, promotion

- Intrinsic motivation: refers to the act of doing something that does not have
any obvious external rewards. You do it because it’s enjoyable and interesting
to you, not because of any outside incentives or pressures, like rewards or
deadlines.
 Intrinsic motivators come from within an individual, such as their own
interests, values, and goals. Examples
- Enjoyment: Engaging in activities that are pleasurable and fun
- Curiosity: The desire to learn and explore new things
- Challenge: Seeking out and overcoming difficult tasks
- Personal growth: Striving to develop one's skills and knowledge
- Autonomy: Having the freedom to make one's own choices and
decisions
- Extrinsic motivation: refers to the behavior of individuals to perform tasks
and learn new skills because of external rewards or avoidance of punishment.
Extrinsic motivators come from external sources, such as rewards,
punishments, or social recognition. Examples
- Money: Financial rewards, such as salary, bonuses, or commissions
- Power: The desire to have control over others and influence their
behaviors
- Status: The desire to be respected and admired by others
- Recognition: Receiving praise or rewards for one's accomplishments.
- Competition: The desire to outperform others and achieve success

3. Write a summary about two theories X and Y

SUGGESTED ANSWER:

In his psychological work, Douglas Mcgregor has proposed two polarized theories
which are called theory X and theory Y. In theory X, he accentuated the possible
laziness and irresponsibility of the workforce. Therefore, they have to be supervised
and instructed to ensure productivity levels. Moreover, in some specific cases,
punishments or rewards are necessary to improve the workers’ attitude. This theory
is usually applied among unskilled workforce. On the contrary, theory Y, which often
suits skillful workers, argues that they have a psychological need to work. Moreover,
improving pivotal factors such as job security, remunerations would render
employees more creative, ambitious and self-motivated.

4. WRITE AN EMAIL TO INCREASE EMPLOYEES’ MOTIVATION

From: thinh@gmail.com

To: abccompany@gmail.com

Subject: Suggestions to improve the motivation of staff.

Dear, [the name of the CEO]

I have received your email and am concerned about your problem of staff
motivation. Therefore, I write this email in order to recommend some measurements
to address this issue
Firstly, I suggest that one potential modification is to provide a professional training
course for your employees. As most workers in your corporation are unskillful, this
solution could not only increase the rates of positive outcomes, believing to develop
a sense of achievement and motivation but also form an integral relationship
between the managers and workers.

Secondly, implementing appealing remuneration policies would be significantly

advantageous for both the company and individuals themselves. More specifically,
when the salaries are raised, employees would believe that they are duly rated and
tend to work more industriously. Furthermore, this recognition would alleviate the
financial pressure that workers may suffer, therefore they can concentrate solely on
the productivity levels of the company.

I hope that these regulations are helpful in the development of your staff.

Sincerely,

Nguyen Anh Thinh

Department of economy development

5. Maslow’s hierarchical needs

A theory of motivation which states that five categories of human needs dictate an
individual’s behavior. Those needs are physiological needs, safety needs, love and
belonging needs, esteem needs, and self actualization needs.
- Deficiency needs (physiological needs, safety needs, love and belonging
needs and esteem needs) are concerned with basic survival, well-being and
include physiological needs
- Growth needs (self-actualization needs) are <needs that humans have for
personal growth and development. These needs are not essential for survival,
but they are important for living a fulfilling life> more physiological needs and
are associated with the realization of an individual’s full potential and the
need to ‘self-actualize’. These needs are met more through intellectual and
creative behaviors. A desire to grow as an individual

Unit 3: Company structure

1/ Explain different types of company structures and their pros and cons

DESCRIPTION ADVANTAGE DISADVANTAGE

Hierarchy - One person or a All people know what The activities of most
chain of group of people at the decisions they are organizations are too
command top and an increasing able to make, who complicated to be
number of people their line manager organized in a single
below them at each (to whom they hierarchy
successive level (line report) and who their
structure) immediate People at lower levels
subordinates (over cannot take important
whom they have line decisions but have to
authority and can pass on responsibility to
give instructions to) their boss

Clear chain of
commands running
down the pyramid

Functional An organization with - allow employees to People are often more

structure specialized focus on their roles concerned with the
departments such as - easily scalable in success of their own
production, finance, any sized company department than that
marketing, sales, hr. -increase of the company as a
specialization/produc whole
The production and tivity → permanent conflicts
marketing - clear career paths, between the finance
departments cannot hierarchy and and marketing or
take financial defined roles marketing and
decisions without production over what
consulting the finance the objectives are
department - limited cross-team
collaboration
- weaken bonds

Flattening the modern

hierarchy tendency is to reduce
the chain of
command, take out
layers of
management →
fewer layers

Motivate their staff

by delegating
decision making and
responsibilities

Matrix People report to more Ability to experience Involves several

management than one superior. A diverse skill sets departments can
product manager become complex →
with an idea could When you're tasked sometimes necessary to
deal directly with the give one department
 managers responsible to work with priority in decision
for a certain market numerous project making
segment and for a
geographical region, managers, you may
as well as managers in likely work with other
the finance, sales and
team members from
production
departments. various departments.
Reduces costs
Encourages
teamwork Flexibility

Teams Temporary groups Better Not always goods at

responsible for an communication decision making →
entire project - spilt require a strong leader
up as soon as it is Increased efficiency ...
successfully Additional
completed
professional flexibility
Empowered
professionals ...
Encourages
innovation ...
More constructive
competition
teamwork

Unit 4: Managing across cultures

1. Richard Lewis model of types of culture

REACTIVE MULTI-ACTIVE LINEAR-ACTIVE

Prefer to listen to and Attach more importance to Organized and rational, act
establish other’s position, feelings, emotions and logically rather than
then react to it. Avoid intuition, and emotionally, plan in advance.
confrontation or lose face, relationship/connection.
rarely interrupt speakers Like to do one thing at a time
and avoid eye contact. Do many things at the same Rules apply to everybody,
time, flexible, good at contract.
Try to formulate changing plans and happy to Not afraid of confrontation
approaches which suit improvise, believe in social or but will compromise when
both parties. company hierarchy and necessary to achieve a deal.
respect status. → individualist/universalist
→ prioritize relationship over
rule/regulations
→ collectivist/particularist

Asia Southern Europe, Latin Britain, USA, Germany

America and Africa

2. The conflict between globalization and localization:

Managing a global multinational company would be simpler if it requires only one

set of corporate objectives, goals, policies, practices, products and services. But local
differences - cultural habits, beliefs and principles specific to each country or market
- make this impossible.
→ Companies that want to be successful in foreign markets have to be aware of the
local cultural characteristics that affect the way business is done.

+ Economic impact: globalization: expansion of multinational corporations →

threaten local businesses and industries (meanwhile, localization protects
local business).
+ Cultural identity: globalization would spread new cultural values and norms,
which can erode local traditions and identities.
+ Environmental concerns: globalization: environmental degradation through
increased consumption, resource extraction and pollution.
+ Political sovereignty: globalization: challenge the sovereignty of a nation, as
international organizations and agreements may impose regulations and
policies that limit local autonomy.

Unit 5: Recruitment
Includes the entire hiring process, from the inception to the individual recruit’s
integration into the company.

DIFFERENT STAGES OF RECRUITMENT (7 steps)

Identify Figure out what is lacking in their current team:

requirements ⇒ Gap in the performances, skills or proficiencies
⇒ Sudden increase in workload that the team cannot
 handle
⇒ Employees leaving

Create JD •What position are they recruiting?

•What ability do they need their applicants to perform?
•What is required in a job description?
JOB DESCRIPTION: core value, benefit, job title, department,
industry pay, duties, demand, qualities

Talent search Identifying the right talent

⇒ Attract and motivate them to apply.
•Recruiters can be promoted by holding job fairs, posting on
social networking platforms,…

Shortlisting ● Sort applications

● Sort resumes: certifications, relevant experience, domain
expertise, technical competencies and other specific skills…
→ Be outstanding: preferred credentials and minimum
qualifications.
→ Any concerns: clarify during the interview

Interview ● Video interviews/ In-person meetings

Evaluate applicants’ abilities, interpersonal skills and cultural
fit.
Behavioral and situational question ⇒ how candidate
handle

Evaluation - Check the candidate’s professional references.

Employment offer - Verify all the employment details
→ make a draft contract
- Make job offers
- Win loyalty points by helping their new hire settle in.

Introduction Try to break the ice, have good relations and with everyone
Induction
***Notes on CVs/resumes:
- CVs/resumes summarize unique skills, character, experience and
achievements.
- European and Asian CVs generally include photos, but US resumes do not.
- British CVs include personal details such as date of birth, marital status,
number of children, etc.; US resumes do not. (cultural/legal reasons,
promoting fairness and reducing biases)
- British CVs usually include outside work interests (sports, traveling), US ones
sometimes don’t. (it helps recruiters discover what motivates you and what
you’re passionate about → become a potential value)
- Your CV should be totally honest. You should emphasize your strengths, but
not lie about your experience or skills. It should not include anything that
contradicts what you’ve put on your Facebook page or similar.
- Leave out information that is irrelevant or that could give some people a
chance to discriminate against you (especially personal details such as your
health, country of origin, religion, etc.).
- Limit your CV to a maximum of two pages.
- Lay your CV out neatly.
- Always check for grammatical and spelling or typographical errors, and do not
rely on automatic spell checkers. Get someone to check your CV before you
send it.
***Notes on covering letters:
- The covering letter explains why you want the job and will be sent alongside
your CV when applying for jobs → Giving us the chance to explain to an
employer why you’re the best candidate for the job.
- It should be specific to the job you’re applying for, adapted to the target
organization, and show that you know about its activities.
- It should highlight your skills and achievements, and show how your
background, training, work experience and abilities related to the job.
- It should be written in short paragraphs and use formal language, and
demonstrate that you have good written communication skills.
- Before writing, do research about:
+ Who will read, organization and culture, competitors and market
position.
+ Cutting out unnecessary words and sentences.

Unit 7: The different sectors of the

economy
1. PRIMARY SECTOR
 - Agriculture
- Raw Material
- Extraction
- Natural Resources
- Farming, Mining, Fishing, Forestry, etc.
2. SECONDARY SECTOR
- Manufacturing
- Industrial Activities
- Factories
- Automobile manufacturing, textiles, shipbuilding, energy utilities, etc.
3. TERTIARY SECTOR
- Business Service
- Entertainment
- Tourism
- Delivering
- Marketing
- Retail
- Services
4. QUATERNARY SECTOR
- Knowledge-based Activities
- Information and Communication Technology (ICT)
- Research and Development (R&D)
- Computing
- Education & Training

=> In many economies, these sectors overlap and interact with each other.

Vocabulary Definition

1 Exported goods Products sold to other countries

2 Real Estate Property: buildings such as offices, houses, flats

(BrE) or apartments (AmE)

3 Labour Work done in return for money

4 To delocalize To move your factories to another region or

country

5 To outsource To use other companies to do work your company

previously did itself
 Unit 8: Production
- Product Design and Development:

- Raw Material Procurement

- Material Processing

- Assembly or Manufacturing

- Quality Control and Testing

- Packaging:

- Storage and Warehousing

- Distribution and Transportation

- Sales and Marketing

- Customer Support and Service

- End-of-Life Recycling or Disposal

Vocabulary Meaning

1 Product line A product line is a group of connected products

marketed under a single brand name by the same
company

2 Product mix The product mix is the total range of product lines and
types a company has on sale for its customers.

3 Level of product A jz framework to analyze product and help to develop

market strategies

4 Product classification A way of organizing different types of products and

services into categories based on their characteristics

5 Outlets places of business for selling goods to customers (shops,

stores, kiosks, etc.

6 Retailers businesses that sell goods or merchandise to individual

consumers

7 Market share the sales of a company expressed as a percentage of

total sales in a given market
8 Product concept a product concept is the general description of a product
or service that a business wants to develop.

9 Endorsement

10 Communication the strategy used by a company or individual to reach

strategy their target market through various types of
communication

11 Product Tangible or intangible offering that fulfills a specific need

12 Brand Broader context and emotional connection

13 Brand recognition ability of consumers to recognize an identifying

characteristic of one brand versus competitors

14 risk premium the potential cost of taking a chance

15 procurement
the obtaining of supplies
thu mua

16 the time needed to perform an activity such as

lead time
manufacturing a product or delivering it into a customer

THE PROCESS OF INDUSTRIAL PRODUCTION

Product Design - Engineers and designers create technical drawings and specifications for the
product to be manufactured.

1. Prototype Development - A prototype is produced to test the design. Changes

may be made based on feedback.
2. Process Design - Manufacturing engineers plan out the production process,
machines and equipment needed, material requirements, quality control
measures etc.
3. Acquire Resources - The facility, machinery, raw materials, and staff required
for production are acquired and set up.
4. Production Planning - Production is scheduled, quantities are determined
and resources are allocated using demand forecasts.
5. Quality Control - Parameters and standards are set to ensure the product
meets specifications. Inspection points are identified.
 6. Production - The product is manufactured in batches or in a continuous
process based on the production plan. Automated machines as well as
manual labor is involved.
7. Testing - Samples from each batch are tested to ensure quality standards are
met. Defects are identified and production adjusted accordingly.
8. Packaging & Dispatch - The final product is packaged and labeled
appropriately, then dispatched to the warehouse for storage and distribution.
9. Improvement - Production processes are constantly monitored and refined to
improve efficiency, quality and minimize costs. New technologies may be
adopted over time.

Unit 9: Logistics
1. Different strategies for stock control and manufacturing (Pull and Push
strategies)

- Pull strategy: company manufacture depending on current demand, which is satisfied from a
small inventory. This is a replenishment strategy: both production and supplies are constantly
reacting to the actual consumption of components, rather than planning ahead. include lean
production, stockless production, continuous flow manufacture and agile manufacturing, nothing
is bought or produced until it is needed.

● Advantages:
- Establish direct contact with consumers and build consumer loyalty
- Focuses on creating brand equity and product value
- Consumers are actively seeking out the product, which removes much of the
pressure of conducting outbound marketing
- Can be used to test a product’s acceptance in the market and obtain consumer
feedback

- Reduce inventory cost

● Disadvantages:
- Require high brand loyalty
- Lead time is long, as consumers are comparing alternatives before making a
purchase
 - Risk of stockout: if customer demand is higher than expected → disappoint
customers and damage the brand’s reputation
- Requires strong marketing efforts to convince consumers to actively seek out the
product

- Push strategy: production is based on estimates of future demand, and begins according to the
planned production lead time; incorporate with safety stocks and lead time

● Advantages
- Push marketing is useful for manufacturers that are trying to establish a sales
channel and are seeking distributors to help with product promotion.
- It creates product exposure, product demand, and consumer awareness about a
product.
- Reduced risk of stockout: as business can produce products in advance of
demand
- Economies of scale can be realized if the product is able to be produced at scale
due to high demand.

● Disadvantages
- Increased inventory cost
- Risk of obsolescence
- Potential for waste

2. Just In Time (JIT) production

- JIT: production method focus on reducing and eliminating the need to hold inventories of raw
material
components which are delivered just in time to be used in the production process, the making of
any parts is taken just in time to be used in the next stage of production and the finished product is
made just in time to be delivered to the customers.

Advantages:
- Reduced inventory cost
- Improved quality control
● Disadvantages:
- Reduced flexibility to respond to unexpected changes in demand or
supply
- Reliance on suppliers: if supplier is unable to deliver materials or
components on time, it can disrupt the entire supply chain
- Increased complexity: carefully coordinate their production planning and
scheduling with their supplier*
Unit 10: Quality
1. Quality:
- Quality: the standard of products –>Companies need to produce a good or a
service which meets customers expectations
- Quality control: the checking for quality at the end of the production process
- Quality assurance: the checking for quality standards throughout the
production process
2. Total quality management (TQM): involves an attitude and a corporate
culture that are dedicated to providing customers with products and services that
satisfy their needs.
- Products should have no defects (zero defects) and services should be as close
to perfect as possible
- The company should do the right things, the first time and every time, which
should eliminate waste from its operations.
- Products, services and processes change → everything is capable of being
improved all the time.

3. How does TQM affect business?

- This approach to quality requires the involvement of all employees in a
business → based on the principle that all staff involved in the search for
continuously improving quality, in all activities (marketing, production,
customer service, sales, purchasing, design, engineering, finance, human
resources, etc)
- Make use of the knowledge and experience of all staffs to identify and correct
faulty systems and process
- Workers should be empowered to stop production to solve problems as
quality is more important than maximizing output or reducing costs.
4. Reading summary
Total Quality Management (TQM), developed by W. Edwards Deming in the 1940s,
emphasizes a corporate culture that meets customers' needs through high-quality
products and services, aiming for zero defects. Initially adopted by Japan to revitalize
its post-war industry, TQM gained traction in American companies during the 1980s
after witnessing Japanese success in global markets. The core principle of TQM is to
do the right thing the first time, reducing waste and fostering continuous
improvement across all business functions - beyond production and customer
service. It encourages all employees to contribute their knowledge to enhance
quality, with production workers empowered to stop operations to address issues,
prioritizing quality over mere output or cost reduction.

Vocabulary
 - Scrap (v) : Get rid of things which are no longer useful or wanted -> scrapping
(n)
Ex: They're considering scrapping the tax and raising the money in other ways.
- Product recalls: The return of products, for example because they’re faulty or
dangerous
- Defect (n): A fault or imperfection or deficiency
Ex: All the cars are tested for defects before they leave the factory.
- Goodwill (n): Customers’ satisfaction with and loyalty to a company
- Headaches (n): Things that cause difficulties
Ex: Some headaches such as lapses in quality could be prevented by a properly
managed quality operation.
- Bountiful (a): Large in amount
Ex: Quality is not only free but a bountiful source of profits.
- Warranty (n): Guarantee: written promises to repair or replace products that
develop a fault
Ex: Manufacturers may be prepared to offer product support in the form of a
warranty or repair or replacement service.

Unit 12: Marketing

1. Definition of Marketing → Role of marketing

→ Marketing is the process of getting potential clients or customers interested in

your products and services. Marketing involves researching, promoting, selling, and
distributing your products or services.

→ Marketing plays a significant role in helping a company achieve its goals and
objectives for growth and survival as well as meets consumers’ needs and wants.

- Create brand awareness

- Increase lead generation
- Building customer loyalty

2. A product life cycle: the length of time from a product first being introduced to
consumers until it is removed from the market.

→ 4 stages: introduction, growth, maturity, decline.

Stage SALES COSTS PRICES PROMOTION

1. Introduction The sales Costs are high. The company Promotion is
volume is low can choose aimed at
and customers between educating
have to be market potential
persuaded to skimming to customers
try the recover (innovators are
product. development early adopters)
costs, or about the
market product, and
penetration to building
build market product
share, if there awareness.
are already
competitors
on the market.
competitors.

2. Growth Public Costs are The price can Promotion is

awareness reduced due remain aimed at
about the to economies unchanged much broader
product of scale, so because audience (the
increases and profitability demand is majority of the
sales volume increases. increasing but product’s
rises competitors users).
significantly. aren’t usually
yet well
established.

3. Maturity Sales volume The product’s Prices may Promotion

peak. features may have to be emphasizes
have to be reduced product
changed so because differentiation.
that it differs competitors
from are
competing established in
brands, which the market,
involves new but
costs. companies try
to defend their
market share
while also
 maximizing
profit.
4. Decline Sales volume Either costs The price is At this stage,
begins to go are too high either there is
down. compared to maintained, or virtually no
scales, so the greatly promotion.
product is reduced to
discontinued, liquidate stock
or the if the product
company is
continues to discontinued.
offer the
product to
loyal
customers,
while reducing
costs to a
minimum.

2.1 Of the 4 mentioned stages in the product life cycle, which one companies would
be likely to pay special attention to ?

→ maturity stage -> typically the longest and most profitable stage There are a
number of things that businesses can do to extend the maturity stage of their
products, such as:

● Innovate
● Expand into new markets
● Target new customer segments
● Develop new marketing and sales strategies

3. Pricing and distribution strategies

- Pricing strategies:
o Market skimming: setting a high price for a new product, to make
maximum revenue before competing products appear on the market
o Market penetration: setting a low price to try to sell a large volume and
increase market share
- Distribution strategies:
4. Marketing mix → 4Ps stand for? Product, Price, Place, and Promotion
- Product →anything that serves a purpose and can satisfy customer needs, it
can be physical objects, services, or ideas. Some aspects of a good product
include reliability, ease of use, and functions.
- Price is the amount of money that customers pay in exchange for a product.
- Place stands for where the products get distributed.
- Promotion mainly comes in the form of advertising to deliver a consistent
message about the company and the product to customers to attract sales
and raise brand recognition.
5. Distribution channels:
● A distribution channel represents a chain of businesses or intermediaries
through which the final buyer purchases a good or service.
● Components:
+ Manufacturer
+ Retailer, wholesaler = middleman/intermediary
+ Consumer
6. Promoting a new product
- A price-skimming strategy
- A market penetration
- Premium pricing/prestige pricing
- Working with agents
- B2B
- Mail-order merchandising catalogs
- Telephone sales
- Sampling
- Publicity in the papers
- Sales promotion
- Advertising
 - Market driven
- Customer driven
- Sales driven
- Traditional market research

Unit 13: Advertising

1. Advertising

1.1 Definition:
- Advertising: is a marketing tactic involving paying for space to promote a product,
service, or cause.
- Advertisement (Ads): is the actual promotional messages

1.2 Goals of advertising:

- Make people know about the existence of a product
- Persuade people to buy the product
=> Generate revenue
=> Growth

1.3 Advertising agencies:

- A company hired by clients and marketers to produce promotional advertising
across various media formats → save time, cost advantages, professional experience,
industry insiders, strategic control
- Full-service agencies engage in all facets, from the beginning to the end of an
advertising campaign and smaller advertising agencies may specialize in a few core
services like print media or online advertising

1.4 Differentiate between ‘Advertising’ and ‘Marketing’

Simple concept :
- advertising is a subset of marketing
+ Advertising is the exercise of promoting one business by using
advertisements
+ Marketing is about identifying customers’ needs and determining how to give
them exactly that
 ADVERTISING MARKETING

- Media buying - Branding

- Creative production - Trend analysis and
RESPONSIBILITIES - Campaign management competitor tracking
- Market research and
strategy development
- Budgeting and ROI

- Building brand awareness - Lead generation

- Boosting brand - New customer acquisition
recognition - Customers retention
- Attracting first-time - Maintaining consistent
PURPOSES buyers to purchase branding
- Informing or reminding - Product development
customers about the
existence of your brand
- Increasing brand loyalty

GENERATING - Faster results and returns - Long-term results and build

RESULTS up your brand

1.5 Potential drawbacks of advertising:

- Being costly

- Poor targeting: If the campaign didn't reach or resonate with the intended
audience, it might not generate the desired response

- Wrong message: The campaign provides untrue elements about its products. it
can lose its images from publicity

2. Different kinds of sales promotions

Sales promotions are marketing strategies that aim to increase the demand and
sales of a product or service by offering temporary incentives or benefits to
customers. Some advertising and sales promotions:
- Product discounts
- Coupons
- Buy one get one (BOGO deals)
- Loyalty programs
- Flash sales
- Giveaways
 - Free samples/free gifts in public places
- Other types of advertising
Or:
- Advertisements in the cinema
- Radio commercials
- TVC (Television commercials)
- Advertisements in newspapers and magazines/billboards/hoardings,…

3. Traditional advertising & digital advertising

Definitions of traditional and digital advertising

- Traditional advertising can be simply defined as using traditional channels
(Ex: billboards, handouts, cold calling and broadcasting)
- Digital advertising is any form of advertising that appears online or on digital
channels
Comparison

Comparison Traditional advertising Digital advertising

basis

Engagement Low Relatively high

Tracking Not possible Possible
Reach Local Global
Effectiveness More expensive Less expensive
somehow less effective More effective
Targeting Standardized Customized
Flexibility cannot modify once the One can change or edit
advertisement is placed anytime and anywhere
Conversion Slow Extremely fast

In conclusion:
=> digital advertising: best option for most
● reach both national and international customers quickly
● cost-effective
● collect valuable information on your audience immediately-
● create even more effective advertising campaigns.
=> traditional advertising : an older audience or a local audience
By combining the strengths of both traditional and digital advertising->create
comprehensive marketing campaigns
 4. A successful advertising campaign:

○ High-quality and relevant content resonates with the target audience and drives
engagement
○ Regularly monitoring and evaluating campaign performance using relevant metrics
(e.g., click-through rates, conversions) allows for data-driven adjustments.

+ Carefully defined target audience

+ Measurable clear goal

+ A compelling and consistent message (communicate how the product or

service fits into consumers’ lives/work to make them better, more productive,

happier, more fulfilled… -> why they should purchase)

+ Appropriate platforms to best deliver your message to your target market.

+ Attract customer’s retention ( memorable & catching slogans, jingles, etc)

+ Increased revenue

Unit 14: Banking

Reading: Banks and financial institutions
- bankrupt (v): unable to pay debts or continue to do business
- deregulation (n): the ending or relaxing of legal restrictions
- conglomerate (n): a group of companies, operating in different fields, which
have joined together
=> International conglomerates: large, multinational corporations that operate
across multiple industries and countries. They typically consist of diverse business
units or subsidiaries that may be involved in different sectors
- interest (n): the price paid for borrowing money, paid to the lenders
Common verb-noun combinations:
- commercial bank (n): a financial institution that offers a range of services to
individuals, businesses, and governments.
- hedge funds (n): Hedge funds are investment vehicles that pool capital from
accredited investors to pursue high returns using diverse strategies, including
short selling and leverage. They are actively managed, typically charge high
 fees, and can invest in various asset classes. While they aim for positive returns
in different market conditions, they also carry significant risks.
- Non-bank financial intermediaries (NBFIs) are financial institutions that
provide various financial services but do not hold a banking license. They
facilitate the flow of funds between savers and borrowers, helping to allocate
capital in the economy without taking deposits like traditional banks.
- Investment banks are specialized financial institutions that assist individuals,
corporations, and governments in raising capital and providing advisory
services for various financial transactions.
- deposits (n): money placed in a bank
- loan (n): sum of money borrowed from a bank
- capital (n): money invested in a business
- stocks and shares (n): certificates representing part-ownership of a company
- bonds (n): certificate of debt issued by governments or companies to raise
money
- merger (n): when one company combines with another one
- takeover bid (n): when one company offers to buy or acquire another one
- stockbroking (n): buying and selling stocks or shares for clients
- portfolio (n): all the investments owned by individuals or organizations
- returns (n): the profit made on investments

charge interest offer advice receive deposits

do business offer services share profits
give advice pass laws make laws
issue bonds pay interest make profits
issue stocks or shares provide services offer loans
make loans raise capital pay a deposit
provide capital provide loans

Reading: The subprime crisis and credit crunch

Summary:
When American house prices began to fall in 2007, many 'subprime' borrowers,
defined as those with poor credit ratings and consequently a high risk of default,
stopped paying their mortgages, as their debt was greater than the value of their
house. Unfortunately, the institutions which had issued the mortgages had created
financial products called mortgage-backed securities (MBS) and collateralized debt
obligations (CDO), which had been bought by many financial institutions including
investment banks, hedge funds, insurance companies, pension funds, mutual funds,
and so on. This process is called securitization: financial assets like mortgages which
produce a cash flow are pooled (grouped together) and converted into securities
that are then sold to investors.
MBSS and CDOs give their buyers the right to receive the payments on the
underlying mortgages, and banks bought them because they believed that house
prices would continue HSBC headquarters in London to rise, and households would
continue to make their mortgage payments. But when many subprime borrowers
stopped paying, the value of subprime related securities fell dramatically. Many
banks in the USA, Britain and elsewhere lost billions of dollars on their MBSS; some
went bankrupt, and others had to be rescued by governments. It is estimated that
banks around the world will eventually have to write off $1.5 trillion of worthless
subprime MBSS (now often referred to as 'toxic debt'). These losses destroyed much
of the capital of the world banking system, leading to a credit crisis or a 'credit
crunch': a massive reduction in the amount of credit available for banks to lend to
other banks, businesses and households.
 ● credit rating: estimates of people’s ability to fulfill their financial
commitments.
● default: failure to repay a loan
● collateralized: with property or another assets used as a guarantee for
payment
● cash flow: the money generated by an investment
● write off: cancel a bad debt or a worthless asset from an account

Unit 19: Accounting and Financial

statements
Accounting is the systematic process of recording, measuring, and communicating
financial information about an organization.

An accountant needs a variety of skills to be effective in their role. Here are some
key skills:

1. Analytical Skills: Ability to analyze

financial data and trends to make
informed decisions and
recommendations.

2. Attention to detail: Precision is

crucial in accounting, as small errors
can lead to significant issues.

3. Technical Skills: Proficiency in

accounting software (like QuickBooks
or SAP) and spreadsheets (Excel) is
essential for managing financial data.

4. Mathematical Skills: Strong

numerical skills are necessary for calculations, budgeting, and financial analysis.

5. Communication Skills: Ability to clearly convey financial information to

stakeholders who may not have an accounting background.

6. Problem-Solving Skills: Identifying issues and finding effective solutions, especially

when discrepancies arise in financial records.
7. Organizational Skills: Managing multiple tasks, deadlines, and financial records
efficiently.

8. Understanding of regulations: Familiarity with accounting principles (GAAP or

IFRS) and tax laws to ensure compliance.

9. Ethical Skills: High ethical standards to maintain integrity and trust in financial
reporting.

10. Interpersonal Skills: Working collaboratively with colleagues, clients, and external
auditors.

Developing these skills can greatly enhance an accountant's effectiveness and

career prospects.
Vocabulary:
● income (n): all the money received from a business activities during a given
period
● expenditure (n): all the money that a business spends on goods and services
during a given period
● budget (n): a financial operating plan showing expected income and
expenditure
● asset (n): anything owned by a business - cash, machines, equipments,etc
● liabilities (n): all the money that a company will have to pay to someone else in
the future, including debts, taxes, interest payments.
● debit (n): an entry in an account, recording a payment made
● credit (n): an entry in an account, recording a payment received
● intangible (adj): adjective describing something without a material existence,
which you can’t touch
● accrued (adj): adjective describing a liability which has been incurred but not
yet invoiced to the company
● deferred: delayed or postponed to the later time
Different types of accounting and the different branches of accounting profession:
● cost accounting: calculating all the expenses involved in producing
something, including materials, labor and all other expenses.
● tax accounting: calculating how much an individual or a company will have to
pay to the local and national government
● auditing: inspecting and reporting on accounts and financial records
● accounting: preparing financial statements showing income and expenditure,
assets and liabilities.
 ● managerial or management accounting: providing information that will allow
a business to make decisions, plan future operations and develop business
strategies.
● creative accounting: using all available accounting procedures and tricks to
disguise the true financial position of a company
● writing down the details of transactions
Financial Statements:
The three main financial statements are the income statement, the balance sheet
and the cash flow statement. Each of the financial statements provides important
financial information for both internal and external purposes of a company.

1. Income statement

Often, the first place an investor or analyst

will look is the income statement. The
income statement shows the
performance of the business throughout
each period, displaying sales revenue at
the very top. The statement then deducts
the cost of goods sold (COGS) to find
gross profit.

From there, gross profit is impacted by

other operating expenses and income,
depending on the nature of the business,
to reach net income at the bottom — “the bottom line” for the business.

Key Features

● Shows the revenues and expenses of a business

● Expressed over a period of time (i.e., 1 year, 1 quarter, year-to-date, etc.)
● Uses accounting principles such as matching and accruals to represent
figures (not presented on a cash basis)
● Used to assess profitability

2. Balance sheet
The balance sheet displays the company’s assets, liabilities, and shareholders’ equity
at a point in time. The two sides of the balance sheet must balance: assets must
equal liabilities plus equity. The asset section begins with cash and equivalents,
which should equal the balance found at the end of the cash flow statement.

The balance sheet then displays the ending balance in each major account from
period to period. Net income from the income statement flows into the balance
sheet as a change in retained earnings (adjusted for payment of dividends).

Key features:

● Shows the financial position of a business

● Expressed as a “snapshot” or financial picture of the company at a specified
point in time (i.e., as of December 31, 2017)
● Has three sections: assets, liabilities, and shareholders equity
● Assets = Liabilities + Shareholders Equity

3. Cash flow statement

The cash flow statement then takes net income and adjusts it for any non-cash
expenses. Then cash inflows and outflows are calculated using changes in the
balance sheet. The cash flow statement displays the change in cash per period, as
well as the beginning and ending balance of cash.

Key Features

● Shows the increases and decreases in cash

● Expressed over a period of time (i.e., 1 year, 1 quarter, year-to-date, etc.)
● Undoes accrual accounting principles to show pure cash movements
● Has three sections: cash from operations, cash used in investing and cash
from financing
● Shows the net change in the cash balance from the start to the end of the
period

Summary Comparison of Three Financial Statements:

Link for more information:
https://corporatefinanceinstitute.com/resources/accounting/three-financial-
statements/
Unit 23: The business cycle
*Vocabulary:

Vocabulary Pronunciation Meaning

Downturn /ˈdounˌtərn/ A decline in economic

activity

Upturn An increase in economic

activity

/ˌekˌspekˈtāSH(ə)n/ Beliefs about what will

Expectations happen in the future

/kənˈsəm(p)SH(ə)n/ Purchasing and using

Consumption goods and services

The difference between

Balance of payments the funds a country
receives and those it pays
for all international
transactions

Gross domestic product The total market value of

(GDP) goods and services
produced in a country
during a given period

Demand The willingness and ability

of consumers to purchase
goods and services

Supply The willingness and ability

of businesses to offer
goods and services for
sale
Save
To put money aside to
spend in the future

a state in which opposing

Equilibrium /ˌekwəˈlibrēəm,ˌēkwə forces or influences are
ˈlibrēəm/ balanced. Ex: when supply is
the same as demand

the amount by which

 Deficit /ˈdefəsət/ something, especially a sum
of money, is too small.

an amount of something left

Surplus over when requirements
/ˈsərpləs,ˈsərˌpləs/ have been met; an excess of
production or supply over
demand.

Government action
Fiscal policy concerning taxation and
/ˈfisk(ə)l/ /ˈpäləsē/
public expenditure

Monetary policy Government or central bank

/ˈmänəˌterē/ action concerning the rate of
growth of the money in
circulation

The total amount of money

Money supply available in an economy at a
particular time

The economic theory that

Keynesianism /ˈkānzēəˌnizəm/ government monetary and
fiscal policy should stimulate
business activity and
increase employment in a
recession

1. Business cycle: Causes

Stages: expansion, peak, recession, trough

Business cycles are intervals of expansion followed by recession in economic activity.

- External Causes:

+ Global Events: Major events like wars, pandemics, natural disasters, or

geopolitical tensions can disrupt the global economy and have a significant
impact on a nation's economic growth.
+ Technological Advancements: Technological innovations and disruptions can
lead to changes in productivity and competitiveness, affecting the business
cycle. For example, the rapid adoption of automation and artificial intelligence
can lead to economic shifts.
+ Financial Markets: Stock market crashes, banking crises, and changes in
lending practices can influence the business cycle. Financial market volatility
can lead to economic downturns.
+ Population expansion:
 - Internal Causes:
+ Consumer and Business Confidence: Confidence in the economy plays a
crucial role in the business cycle. When consumers and businesses are
optimistic, they tend to spend and invest more, driving economic growth.
Conversely, a lack of confidence can lead to reduced spending and economic
slowdowns.
+ Fluctuations in investments
+ Supply of money
+ Macroeconomics policies

KEYNESIANISM MONETARISM
Author John Maynard Keynes Milton Friedman
Control the economy Emphasize the importance of -Support minimal
government intervention in government
controlling the demand for intervention
-Markets and
goods and services
individual freedom
are more efficient at
allocating resources.
Inflation Adjust governmental spending Control the money
to control inflation supply to control
inflation
Policy tools Fiscal policy Monetary policy

Unit 24 Corporate social responsibility

1. Responsibilities of businesses

Responsibilities of businesses:
+ Make profits for companies’ owners and stakeholders
+ Responsible for customers (no cheating)
+ Social responsibilities to their staff, society, environment

Corporate Social Responsibility (CRS): A company committed to improving or

enhancing community well-being through discretionary contributions of corporate
resources. There are five dimensions of CSR.: Environment, Social, Economic,
Stakeholder and Volunteerism

Definition Ways to fulfill

Responsibilities

Economic Generate profits for their Produce high-quality goods and

responsibilities shareholders services that meet the needs of
customers.

Invest in research and development to

create new products and services.

Pay employees a fair wage and provide

them with good benefits.

Philanthropic Give back to the Donate money, time, resources to

responsibilities communities in which charities and support social causes.
they operate
Encourage employees to volunteer
their time.

Ethical Act ethically, operate in a

Act honestly and transparently in all
responsibilities fair and honest manner,
dealings with customers, employees,
and respecting the
and suppliers.
rights of all stakeholders
Avoid corruption and bribery.

Treat employees with respect and

dignity.

Environmental Minimizing the negative Comply with all environmental

responsibilities impact of a company's regulations.
operations on the
environment Source sustainable materials,
renewable energy and recycling.

Invest in pollution prevention

technologies.

2. Illegal acts (non-ethics business practices)

Actions that violate the law or ethical standards. They can have a negative impact on
shareholders, stakeholders, and society as a whole

- Bribing corrupt foreign officials in order to win foreign orders

- Industrial espionage (spy on competitor’s research and development
departments with concealed cam)
- Selling supposedly durable goods with ‘built-in-obsolescence’ which you
know will not last more than a few years
- Spend money on lobbying (vận động ngoài hành lang)
- Telling half the truth in ad or exaggerating a great deal or keep quiet about
the bad aspects of a product
- Whistle blowing (reveal confidential in4 to the police or press that a company
is breaking health and safety therefore putting people’s live in dangers)

Examples of how CSR can help businesses to avoid illegal acts:

A company that produces food products may be tempted to use illegal additives or
unsanitary practices in order to save money or increase profits. This could violate
food safety laws and put consumers at risk.

CSR can help the company to avoid this by:

- Investing in food safety technologies and training employees on food safety

procedures.
- Implementing a quality control system to ensure that food products meet all
applicable standards.
 - Conducting regular audits of food safety practices.

Recalling any products that are found to be unsafe.

⇒ By adopting CSR practices, businesses can avoid illegal acts and build a more
ethical and sustainable business model. CSR can also help businesses to improve
their reputation, attract and retain customers and employees, and reduce their long-
term costs.

Differentiate shareholder & stakeholder:

Characteristic Shareholder Stakeholder

Primary Maximizing return on Ensuring the success of the

interest investment company

Role Owner Interested party

Rights Dividends, capital To be informed and consulted on

appreciation company decisions

Responsibil To invest in the To act in the best interests of the

ities company company

⇒ Shareholders are a subset of stakeholders

Unit 25 Efficiency and employment

1. Vocabulary

1. Flexible labour market: a situation in which it is easy for companies to hire

non-permanent staff
2. Downsizing: decreasing the number of permanent employees working for an
organization
3. Outsourcing or contracting - out: using other businesses as subcontractors to
supply components or services
4. Job sharing: employing two or more people on a part-time basis to perform a
job normally available to one person working full time
5. Relocation or delocalization: moving some of a business’s activities to another
place or country
6. Delayering: removing unproductive parts of management hierarchy to make
organizations more flexible and efficient
7. Rationalization or restructuring: reorganizing a company, business or system
in a new way to reduce costs and improve efficiency and effectiveness
 8. Contract work: temporary employment by an organization to do a specific
project or a piece of work
9. Casual work: temporary employment that is not regular or fixed
10. Rightsizing: another way of saying downsizing, describe increasing the size of
an organization, perhaps as an attempt to correct a previous downsizing

Employ someone Dismiss someone

Appoint Fire
Engage Lay off
Hire Let go
Recruit Make redundant
Take on Sack

(appoint, and engage are often used for (Fire and sack refer to the employees
senior positions; hire and take on are who did wrong in their job; Lay off and
used when companies employ large make redundant mean the position is
numbers of new staff; Recruit infers to considered to be unnecessary)
the people who have to be persuaded
to join)

2. Discussion: Solutions for unemployment:

- Job sharing: People interested in and responsible for a job are opposed to sharing
their job with anyone else. It’s also more expensive for companies to employ two or
more people for a job available to one person.
- Decreasing working hours: This solution can satisfy people with boring jobs, but it
reduces their income.
- Lowering the age of retirement: retiring at a younger age, for example, when your
children are also young, a reduction of income can lead to a higher demand for
society pensions, which would be a burden on the government. Therefore, many
countries want to increase the retirement age.
- Training programs: a good idea, because there will be many jobs available that
require the high skills of newly trained workers, but some unemployed people still
lack these skills, that’s how this solution would benefit them a lot.
- Public sector jobs have to be paid for out of tax revenue.

3. Proposing restructuring of the sorting offices:

 Summary Reading: To become more efficient and competitive in a future open
market with international competition, post offices want to restructure their sorting
offices by reducing the number of them from 25 to three large, new, efficient and
automated ones. Therefore, they can handle the issue of continuing decrease in the
volume of mail.
Main advantage: that would be cost savings due to rationalization
Main disadvantage: 4,500 people would lose their jobs, and many of 5,500 people
who retained their jobs would have a longer journey to work and would have to work
at night.
In contrast, the trade unions and local governments where sorting offices would be
closed are against the plan; local governments in the areas where the three new
centres are planned are in flavour of the project.

4. Efficiency and the number of employers:

To increase the company's efficiency, the company normally reduces the number of
employees. But instead of making it redundant, the company can consider reducing
the average number of working hours per employee, so that they can spend time on
training, development, and education, which also helps them have a better quality of
life and better work-life balance. Take Yuhan-Kimerly as an example, it cuts the
number of average working hours rather than cutting the number of employees.
Everyone worked four 12-hour shifts and then took four days off, one of which was
spent on a training programme. And they received a positive result that the workers
responded well and there was a dramatic increase in productivity.

Unit 27 International trade

*Vocabulary:

1/Free trade (n): imports and exports of goods and services without government
restriction
2/Protectionism (n): restrict imports by way of trade barriers: tariffs and quotas
3/ Trade barriers (n): government policies or regulations that restrict international
trade
4/A tariff (n): tax charged on imports
5/A quota (n): a maximum quantity of goods of a specific kind that can be imported
into a country
6/Absolute advantage (n): a country’s ability to produce goods at lower cost than any
other country
 7/Comparative advantage (n): country’s ability to produce particular goods more
efficiently (using fewer resources and at a lower cost) than some other country
8/An infant industry (n): one that in an early stage of development and which cannot
survive competition from foreign companies
9/A strategic industry (n): one that is important to a country’s economy

THEORY OF FREE TRADE

Free trade: refers to the unrestricted flow of goods and services between countries
without tariffs, quotas or other trade barriers. The theory of free trade is that allowing
countries to trade freely with one another will be mutually beneficial.

+ Tariff: a tax charged on imports

+ Quota: a maximum quantity of goods of a specific kind that can be
imported into a country
+ Traded barriers: government policies or regulations that restrict
international trade

KEY PRINCIPLES OF FREE TRADE THEORY

Absolute advantage (Lợi thế tuyệt đối): Based on the ability to produce a good at a
lower cost (more efficiently) than another country. It is the ability to produce a
product most efficiently given all the resources available.
Comparative advantage (Lợi thế so sánh): Based on the ability to produce a good at
a lower cost (more efficiently) than producing another good. The theory developed
by economist David Ricardo that countries should produce and export goods where
they have the lowest opportunity cost. This allows countries to specialize based on
their advantages.
Trong sách không có cái Free Trade Theory nên tụi mình tham khảo trên mạng
nha:
● The concept of comparative advantage - This idea, developed by David
Ricardo, states that countries should specialize in producing and exporting
goods where they have the lowest opportunity cost. Even if a country is more
efficient at producing everything, it can still benefit from trade.
● The principle of mutual benefit - Free trade theory argues that unrestricted
trade is mutually beneficial for countries. Specialization and exchange
 promote more efficient use of resources and allocation of labor. More
production occurs, benefiting both trading partners.
● The role of competition - Free trade promotes competition between
producers and countries. This drives efficiency and innovation as producers
have to become more competitive. Consumers also benefit from lower prices.
● Economic growth and development - According to the theory, free trade
enables access to larger markets, allows the dissemination of knowledge and
technology, and encourages investment. This leads to economic growth.
THE ADVANTAGES/DISADVANTAGES OF FREE TRADE

Advantages:

● Increased economic growth: Free trade enables countries to specialize in

goods they can produce most efficiently, increasing productivity and growth.
This gives consumers access to cheaper products.
● Greater efficiency: Competition drives countries to maximize output using the
least amount of resources possible. This leads to lower prices.
● Wider consumer choice: Consumers have access to more products from
around the world at lower prices. This increases their purchasing power.
● Creating jobs: Free trade can help create jobs in export industries as access to
more markets increases demand. However, there may be job losses in non-
competitive sectors.
Disadvantages:
● Job losses and unemployment (economic vulnerability): Workers in non-
competitive industries can be displaced as cheaper imports replace domestic
production. This causes transitional unemployment.
● Income inequality: Benefits of trade are often unevenly distributed,
contributing to greater income inequality in some countries. Low-skilled
workers tend to be most impacted.
● Trade deficits: Countries may import more than they export if local producers
are priced out by more competitive imports. This can be problematic if
sustained long-term.
● Environmental, labor and regulatory issues: Critics argue free trade makes it
easier for companies to avoid environmental, labor and other regulations that
 increase costs. This leads to "race to the bottom" dynamics as countries
compete.
● National economic dependence: With increased global integration and
interconnectedness, countries become more vulnerable to economic troubles
spreading across borders.

pros cons

Stimulates economic growth Job losses

Lower taxes and entry barriers Encourage theft of intellectual property

Foreign direct investment Poor working conditions

Source (tụi mình tham khảo nguồn ở đây nè)

Hết gồii
Chúc các bạn thi tốt nhe :3333 !!!!