Revision
 Important things to know !!!!
 Units 6 - 11
Unit 6 : Entertaining
 It makes part of successful deals, positive
attitude towards your partners
 Different cultures have different ideas
about entertaining
 It is a good opportunity to know your
partner better
 America and Europe : business people meet
to do a deal
 Asia : to establish a relationship
 while entertaining a business partner
one must think of the etiquette :
behaviour ( a certain code ),
unwritten rules of behaviour
 the etiquette is made of norms :
norms are rules or guidelines which
say what is acceptable in certain
situations
 two good ways to start socialising
are:
 greetings :social ritual used to show
attention or to confirm friendship
 small talk : it is a chatter about
ordinary things, everyday things
 greetings and small talk are good icebreakers when you feel unconfortable
in a presence of a stranger
Corporate entertaining is present in
the modern business world :
 it is a well organised plan which involves
socialising with business partners as a part
of successful business deals
 some companies spend a lot of money on
this in the Customer Relationship
Management Programme
 this program helps a company to keep an
old client
Unit 7 : Marketing
 It is a business of advertising, promoting
and selling a product ; marketing attracts
customers and persuades them to buy a
product
 You must find out what customers need /
like = meet their needs
 Marketing involves: all activities from
production to selling, indetifying
customers,developing/promoting products,
minimizing the costs/maximizing the
returns to make a profit ( it means selling )
The marketing mix or the four Ps
are:
 Product : deciding what product or
service to sell
 Price : setting the attractive price
 Place : find suitable distribution
 Promotion : acctivities used to
support the product
From the customers point of view
there are four Cs :
 Customer solution : offering the
right product to satisfy particular
customer needs
 Customer cost : the price paid
directly
 Convenience : distributing the
product
 Communication : informed about
the product
The key to successful marketing :
 a good creative campaign
 clear marketing messages
 customers orientation
Unit 8 : Planning
 is a resource allocation and involves
organising limited resources such as time,
money and expertise
 It consists of a plan for using different
resources to achieve goals for the future
 Planning also means time management (
suggest you to make a list, persue tasks
one by one, delegate, not to be a
perfectionist in everything )
Planning introduces the use of
Gantt chart :
 an excellent tool for a complex
project involving many people and
tasks
 it is a diagram that shows the
different stages of a project
 it is made of horizontal bars which
show the relationship between task,
activities and resources
Another type of planning is called
contingency planning :
 a management plan in case of
emergency ( an event or situation
that might happen in the future );
prepares for the worst
Conclusion :
 planning is all about good strategy :
companies make long term plans
about the future, they predict
competitors’ activities and company’s
overall plan of development
Unit 9 : Managing people
 Theory X : the idea that people
dislike work and will do anything to
avoid it
 Theory Y : everybody has the
potential to find satisfation in work
 Theory W : ‘whiplash’, it is the idea
that most work is done under
conditions of slavery
Different cultures have different
ways of managing people:
 Some prefer frequent consultations in
decision-making ( all members contribute
to this process )= management by
consensus
 Some encourage workers to use their own
initiative = empowerment ( it is used to
establish better relationships with
customenrs and is linked to the idea of
delegation = handing a task over to a
subordiante ( give someone the authority
to untertake specific activities or decisions )
In managing people the managers
need to be good at :
 Observing : they must understand the
behaviour, the strengths and weaknesses of
their staff
 Listening : in order to learn staff’s problems
 Asking questions : to find needed
information
 Speaking : in order to communicate their
objectives clearly to all their staff
Unit 10 : Conflict
 Can be productive as wellas unproductive
 Productive : there are often a number of
different ideas and conflict is inevitable but
different ideas lead to the best choice
 Unproductive : arguments between the
colleagues or managers can become
personal and can cost a company big
money and time ( e.g. employees can even
sue their company for unfair dismissal )
Labour-management conflict can
take the form of :
 Strikes and go-slows ( a go-slow is a
form of protest where workers deliberately
slow down in order to cause problems )
 Many countires use arbitration between
the two sides : it is a form of alternative
conflict resolution in which the parties (
opposite sides ) present their cases to a
neutral third party and agree to respect
his or her decision
 More and more companies in the US
use ADR ro resolve conflicts : ADR is
alternative dispute resolution which
includes methods other than lawsuits
( these methods include mediation,
arbitration and settlement (
negotiation ) and are less formal and
cheaper than court process
 German managers : very direct and they
speak their mind, they concentrate on the
objective
 American : have a talent of communicating,
use small talk and smile very often, the
atmosphere is informal, attitude – ‘time is
money’
 Spanih negotiators usually interrupt you in
the middle of the sentence, they use
spontaneous ideas and quick thinking
Unit 11 : New business
 represent the modern way of doing
business
 face-to-face contact is of vital importance
 video-conferencing is effective but
expensive
 relationship building is important for mutual
benefits : clients and suppliers are called
PARTNERS-they are in business together
TQM – Total Quality Management :
makes an important part of modern
business
 it motivates, supports and enables
quality management ( seek
continuous improvements, focuses on
the needs and expectations of
internal and external customers )
 one important objective of TQM is
complete elimination of product
defects
 Another form of new business is
start-ups ( a one person operation
often started by someone who gained
knowledge as a salaried employee in
an organisation ) ; this person
decides to start a new company on
his/her own
 Start up is also a term for any newly
formed company
Factors which encourage new
business :
 flexible labour market where there
are not only low taxes on companies
but also low social costs
 skilled staff ( a good national
educational system and good
company training of employees )
 low interest rates
 cheap rents for office and factory
space
 a stable economy ( business people
are able to plan better )
 good transport links
 training courses
 High enemployment
 may mean two things : you can pay
lower wages to your workers ; you
may not be able to find the people
with the skills you want
 Strong currency
 means that imported raw materials
are cheaper but your exports will be
more expensive
 Government grants
 may be used to try to persuade
companies to set up in areas with
high unemployment but if the area is
unsuitable for other reasons these
grants will not be enough
 Language
 the importance of language is setting
up abroad
Unit 12 : Products
 when we think of products we usually
think of tangible product ; the
product we can see or touch ; we
think of physical objects
 we have just-in-time ( JIT ) ordering
of components and TQM
JIT – just-in-time
 is a management philosophy that
reduces manufacturing waste by
producing the right part in the right
place at the right time
 no products are manufactured until
they are needed
 coordinates demand and supply
Economies in different parts of the
world are at different stages of
development :
 in newly industrialised countires ( in Asia )
more and more people are now able to
afford consumer durables ( washing
machines ) for the first time ( companies
that sell these products can make large
amounts of money )
 in the West, the market for television or
washing machines is basically one of
replacement ( the products are not
repaired but replaced )
 In this situation, design, brand name,
or image become more important (
e.g. some luxury cars become more
affordable and manufacturers have to
stay ahead of the game to avoid their
brands being perceived as ordinary )
Consumerism – a modern force
that manufacturers have to take
into account
 It is an increased consumption of goods
seen as economically beneficial
 It is also a term used to describe the
effects of identifying personal happiness
with purchasing material possessions
 There is some difference in the way people
preceived the products in the past and the
way we see them today: the cars,
televisions and washing machines of the
1950s had more style and they were made
to last, but modern products are techically
better now.
When a new product is developed it
must be tested:
 Animals are very often used to test
products which causes protests in some
parts of the world
 Some people volunteer for medicine
testing which is not without
consequences for their health (in
return, they receive money)
 The present trend is to move production
to some Asian countries which offer the
cheapest labour force