МОУ Лицей №130 имени академика М.А.Лаврентьева
New Insights into Business
Resource Book print
Автор разработки - Елисеева З.Б.
Новосибирск
2007г
1
Unit 1. Company structures.
!. KEY VOCABULARY (SB page 4) Learn and render.
Most companies are made up of three groups of people: the shareholders (who provide the
capital) the management and the workforce. The management structure of a typical company follows
this organization chart: Board of Directors Managing Director Senior management Middle
management. At the top of the company hierarchy is the Board of Directors, headed by the
Chairperson or President. The Board is responsible for policy decisions and strategy. It will usually
appoint a Managing Director or Chief Executive Officer, who has overall responsibility for the
running of the business. Senior managers (or company officers / top managers / executives/ head the
various departments or functions within the company. The organization chart may include the
following departments: a) Marketing, b) Communication and Public Relations (PR), c) Information
Technology or IT, d) Personnel or Human Resource Management, e) Finance - Accounting and Control
f) Production (or Line Department), g) Research and Development (R&D), h) Legal Affairs.
Independent chains of command regulate the process of giving and taking orders.
2. THE PHILIPS COMPANY PROFILE (SB ex.1 page 6) Learn and render
The Philips Company was established in 1891 by Gerald Philips to manufacture light bulbs and
other electric products. Since then the company followed a steady program of expansion and stimulated
product innovation. The company protects its innovations by patents. Philips has developed a new and
exciting product idea such as compact disc, which was launched in 1983.
Philips headquarters are in Eindhoven, Netherlands. It employs 256,400 people all over the
world and has sales and service outlets in 150 countries.
The key to Phillips’ success can be described by two words. The first is innovation; the
company R&R designers are constantly creating new products. The second is diversification; Phillips
is active in about 100 businesses varying from consumer electronics to domestic appliances and from
security systems to semiconductors. With such a wide range of products the company needs a complex
system of management. Each product division has its own chairman; most of these chairmen are
members of the Group Management Committee, which plans and implements all company decisions.
The Supervisory Board monitors the general business of the group and it also advises and supervises
the Board of Management.
The company creed is ‘Let’s make things better” It is committed to making better products and
systems and contributing to improving the quality of people’s work and life. One recent example is of
this is its ‘Genie’ mobile phone with voice control. To dial a number you just have to say it aloud. Its
Web TV Internet terminal brings excitement of cyberspace into the living room.
Vocabulary to learn: (SB ex .1, page 7)
an innovation
a strategy
a policy
a patent
diversification
a range of products / a product line
headquarters
a location
( SB ex..2 page7)
Learn the terms.
to concentrate on - to specialize in
program of expansion - plan of growth
to launch a product onto the market - to introduce
to turn on - to produce
to manage a business - to run
to monitor - to watch carefully
to implement - to put into practice
divisions - sectors
issues – important matters
3. Write the profile of any company you know about. Use the Internet for information or imagine.
(E.g. Clear Water /Чистая Вода/
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Name of company_________________
Headquarters_____________________
Chairman_______________________
Business activities________________
Main markets____________________
Sales in the previous year__________
4. THE FUNCTIONS OF AN EXECUTIVE. . ( SB Listening ex. 3 p.11) Learn and render.
In a company some people have more authority than the others. The executives (managers)
move up the corporate ladder according to their personal abilities, proficiency and expertise.
The functions of the executives depend on their position in the management hierarchy. On the
whole, the executives coordinate and evaluate work of the employees, make important decisions,
set objectives, delegate authority, and perform general leading. It’s evident, that making careful
decisions is the basis of good management. A good manager must be competent in his field, creative,
punctual and well –organized. He or she must be able to work under pressure, do a lot of paper
work and sometimes, red tape. The key competence for managers today is the ability to manage
changes.
The role of the Personnel Manager of a big corporation is mostly concerned with manpower
planning. This involves identifying the manpower requirements of the company. The Personnel
Manager is responsible for recruiting and drawing up contracts for temporary personnel, as well as
redeployment of permanent employees to new positions within the company.
5. Write the profile of an executive of a company the profile of which you previously completed.
Name ______________________
Age _______________________
Marital status _______________
Salary _____________________
Company ________________________________________
Present position ___________________________________
Background ______________________________________ •________________________________
Present responsibilities _•____________________________
_•_______________________________________________ • ________________________________
6. Vocabulary. DESCRIBING CHANGES ( SB page 10)
Intransitive verbs (verbs which have no object)
Transitive verbs (verbs which have no object)
to increase – to rise – to go up ( The prices rise. )
to decrease – to fall – to drop (The profits drop.)
to go down – to decline (Inflation declines.)
to increase (sales) - to raise (taxes)
to
decrease (production)
to reduce ( costs)
to drop ( the idea)
Corresponding nouns:
an increase (in investment)– a salary rise --a raise. (E.g: All staff got a raise. (US increase in salary)
a decrease - a fall – a drop (in prices) - a decline ( in profits) - a reduction (of jobs)
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Unit 2. Recruitment
I. KEY VOCABULARY (SB: page 14) Learn and render
When a company needs to recruit or employ new people, it may decide to advertise the job or position
in the appointments section of a newspaper. People who are interested can then apply for the job by
sending it in a letter of application or covering letter (US cover letter) and a curriculum vitae or
CV (US resume) containing details of their education and experience. A company may also ask
candidates to complete a standard application form. The company’s Human Resources department
will then select the most suitable applications and prepare a short list of candidates or applicants,
who are invited to attend an interview. Another way for a company to hire, is by using the services of
a recruitment agency (US search firm / head hunters) who will provide them with the list of suitable
candidates.
To apply – application – applicant – application form
To recruit – recruiter – recruitment
Io interview – job interview interviewer – interviewee
2. VOCABULARY TO LEARN : (SB: text’ Fit for Hiring and Job Ads’ page16 )
White-collar testing is growing in popularity nowadays. The applicants for the white-collar
positions are submitted to a series of the paper-and - pencil tests, role-playing exercises, simulated
decision-making exercises and brainstorms. Human-resource specialists evaluate professional skills of
the interviewees and give importance to their personal (intangible) qualities.
Fringe benefits / perks / that go with the position may include different material incentives –
such as annual bonus, company car, pension plan and health insurance. Salaries may be fixed or
negotiable and correspond to the qualification and position.
The candidate for the managerial position should meet / /face / satisfy / the following
requirements:
Educational requirements
Qualifications demanded
Patterns of professional
behavior
Personality traits
(Intangible qualities)
•Educational standards are
obviously important.
• A certain level of degree
(BD –Bachelor degree,
•Mistreat degree,
•PhD –Doctorate degree,
•MBA degree
•Expert competence
•Level of experience,
•Qualifications
•Achievement in the
corporate hierarchy,
•Ability to co-ordinate the
team.
•Ability to communicate and
motivate the subordinates,
•Analytical aptitude,
•Attention to detail,
•Decision making skills,
•Ability to function under
pressure in a critical situation
•Fit the corporate culture.
•Display leadership skills
and creativity,
•Possess entrepreneurial
spirit,
•Be flexible and versatile,
•Be capable of learning,
•Must be able to manage
changes
3. INTERVIEW ASSESSMENT (SB page 20) Put the verbs in the correct form, fill in the gaps and learn:
Articulate and well presented Paul Sutherland is an excellent candidate for the post of Director
of Software Department. He ______(want) to leave his present employer, a small computer company,
because he ______(feel) that he _______ (not use) his knowledge of software engineering to the full.
He ______(look for) a more challenging position where his field of specialization can be exploited in a
more stimulating environment. He _______(realize) that our company ____ (grow) rapidly, and that he
would be expected to contribute to that growth. He is familiar with our existing range of software and
regularly______(read) our publications.
Although at present he _____(live) in the south, he _____(say) that he is willing to go wherever
we ____(decide) to send him. He occasionally ______(travel) to various European countries for trade
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fairs and exhibitions and ____(enjoy) meeting people of different nationalities. At the moment he
_______(attend) a training course at the Goethe Institute in order to perfect his German.
4. THE REQUIREMENTS FOR A JOB INTERVIEW. (SB: Listening ex.1 p.23) Learn
The most important thing when interviewing a candidate for a managerial position is his
character, his ability to react, his intelligence and his suitability for the job for which he is being
interviewed. ▪ Before inviting the job seeker for the interview the recruiters study his or her CV, their
previous employment performance, and sometimes do backgrounds checks looking for
unacceptable behavior: signs of drug use, violence or harassment. ▪ The interviewer expects the
applicant to know the profile of the company, its performance in the market and even its history. One
should have a good understanding of the three very important items: 1) what the company does, 2)
what he/she is going to be expected to do and 3) who he is going to report to.
▪ The major way a candidate goes wrong is basically becoming a ‘yes-man’ or a ‘yes-woman’
and agreeing with everything you say. Sometimes the interviewer may ask dummy questions in which
he wants a ‘no’ answer and if the applicant continues to say ‘yes’ then he goes down.
▪ It’s very important to create the right relationship between the interviewer and the interviewee
and to show that you have a spark about you, that you are going to contribute. You will be good at
expressing yourself if you have clear goals in mind.
▪ The person’s appearance does not influence the decision, but it does have some bearing on the
decision. It is important that the person is well presented, is neat and tidy, that he has a good manner,
because it shows a lot about the personality.
5. A LETTER OF APPLICATION (model)
This is an example of LETTER OF APPLICATION sent by post mail which contains about 200 words.
Insert the phrases:
• to apply for • to believe in • to collaborate with • to result in • to report to • to benefit from • to work out • to be
responsible for • to be involved in •to succeed in
Alex Patrick
56 Bloom Street
London
Phone: 023 345 5678
E-mail: patral@sinor.net
Dec. 22, 2002
Mary Crawford
Herald House
Cherry St, 50
5677 Liverpool
Dear Ms Crawford
• I am writing to (1) ____________the position of Senior Computer Programmer, which was advertised in the ‘Careers’
• As you can see in my enclosed CV, I already hold the position of Team Manager where I (2) ________ three programmers
who (3) _________ me directly. As an additional part of my job I have to (4) _________ other Team Managers from
different divisions of the company. I have recently (5) _________ a major research and development project where my team
was asked to (6) __________ a new network application for the company’s accounts department. During this project we (7)
_________ solving a number of complex technical problems. This program is now in the final stages and once complete
will (8) _______ considerable savings in both cost and time.
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• While I am happy in my present position, I would welcome the challenge of managing a bigger team. I firmly (9)
_________ the value of teamwork and power sharing which I know are important elements in the working environment of
your company. (  see next page )
• Moreover, I feel sure that on both a personal and professional level I would be able to (10) __________ the opportunity of
working for a company with such a well-established international reputation. I strongly hope I will be able to contribute to
the job with my own professional and leadership skills.
• In the meantime, should you require any further information, please do not hesitate to contact me. I am looking forward to
hearing from you.
Yours sincerely
Alex Patrick
6. WRITE your own letter of application to apply for the position of a Public Affairs Associate in
Patagonia, a Californian company which designs and distributes functional outdoor clothing.
As a model use the letter of application from Unit 1,.information and vocabulary from Unit 2.
You can be useful to the company in developing strong customer base in the countries of EU
You are quite experienced in increasing international sales.
You might be helpful in the issues of…
You do not mind: changing of residence / business trips
You would enjoy working with a multinational team
You possess leadership skills
You are proficient in outdoor sports (which ones), have outdoor experience. Confirm the employer that
your previous experience and skills will be relevant in the context of the job.
UNIT 3. Retailing
1. KEY VOCABULARY (SB page 25) Learn
Retailing is the business of selling products to the general public. Most retailers sell from shops
or stores, which are called outlets. Many countries have large retail chains, which are organized
nationally and sell standardized selection of products. Their outlets are often in shopping centers (US
malls), where there is a large variety of stores in the same location.
Many large retailers operate from out of town locations with parking facilities, known as either
hypermarkets (over) 30,000 square metres) or superstores (under 30,000 square metres). They may
be on a retail park, where there are a number of large stores.
Department stores such as Harrods in London are large shops, which sell a wide variety of
products, usually from a city center location. As the name suggests, they are organized in departments,
each with its own manager.
2. VOCABULARY (SB page 28 ex. 1, 2) Fill in the gaps and learn:
Use the following words as nouns, verbs or adjectives: • stock • deal • surplus • secure • market •
model • order • control . Some of the words will not be used.
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Sephora is a French beauty supermarket chain, which has revolutionized the way that perfumes
and fragrances are sold. Sephora operates in a (1) _________ that has traditionally been served either
by small exclusive perfume stores or by department stores. It (2) _________ a wide selection of too
products from beauty houses like Chanel and Estee Lauder. Two years ago the original founder of
Sephora, Dominique Mandonnaud, was approached by the luxury chain LYMH (Moet Hennessy –
Louis Vuitton) with an offer to buy the company and one year later a (3) _________ was made. Today
Daniel Richard, the new president, (4) _________ all aspects of the business. he has managed to (5)
_________ the support of many of the big brands in the perfume business and placed big (6) _________
with them. Sephora has ambitious plans for the future, and recently opened a store in New York.
3. VOCABULARY (SB page 28 ex 3) Fill in and learn
Replace the words in the italics with the following words: • profits • overheads • niche • range • suppliers • discount
Wal-Mart is already maneuvering to bring its vision of retailing to the European consumer. In
the United States the company operates stores that are often twice as big as their European equivalents
and which sell a huge selection (1) _________ of quality products at a significant price reduction (2)
__________ .
However, duplicating its success on the old continent may prove to be just as difficult as
conquering the New World’s markets. Firstly, Europe with its limited space available for building new
stores and its high operating costs (3) __________ may make it more difficult for the company to
produce the same positive financial results (4) __________ that it has had in the US. In addition to
that, it may be difficult to persuade companies that provide goods for retailers (5)_____________ to
do business with them in the same way as they do in the US. But with the purchase of the British
supermarket chain ASDA, Wal-Mart clearly want to establish a particular market (6) _________ for
itself in Europe.
4. THE LAY OUT AND OF A SUPERMARKET. ( SB Listening ex 3 page 32) Learn
As a rule, supermarkets and groceries follow a standard design. For example, the main entrance
is on the left, because the research has shown, that customers prefer to enter stores on the left and then
they have a natural reflex to move to the right.
• Fresh fruit and vegetables are always just inside the entrance. This is important because it
gives a healthy image to the store. • The meat counter, however, is at the back of the store. Thee are
two reasons for this, the first one being that meat requires a storage and preparation area. The other
is that meat is an item that shoppers come to buy regularly and having it here means that they will see
many other products on their way.
• Likewise, basic products are rarely positioned next to each other. The coffee may be
positioned in the first aisle, about half way down on the right, whereas the sugar is over in the fourth
isle nearest the checkout. • Breakfast cereal may be in the second aisle, the shelves on the top
containing the lesser-known brands. The position at the eye-level, which generates the highest sale,
is reserved for the more famous brands.
• Free samples counters are called to promote less popular brands. Television screens above
the demonstration area may show different items, which are discounted at the moment. Displaying
products this way can increase sales of certain items by as much as 900%.
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5. WRITING A REPORT. (WB page 15 )
You work as a retail consultant and were asked by the head office of Wright’s Supermarket to conduct a
customer survey at their branch in Colchester following a number of complaints. Write a report giving details of
the complaints and your recommendations. (  see next page)
Customer survey – Wright’s Supermarket, Colchester 19 March
100 people interviewed
Complaints:
1. Opening hours
-- store often closed at quarter to 7 but says 7 at door
admit people up to 7 + make announcement 5 min.
before closing
-- doesn’t open until 10 – people can’t buy things
on the way to work
do another survey to find out the best time to open.
-- why not open on Sundays?
one month trial period.
2. Product availability and quality
-- things like bread and milk not left at the end of the day
computer system?)
--some products post their sell-by date
review stocking procedures (new
3. Customer service
-- long queues
employee training program (employee of the month award?)
cashiers never put shopping in bag
-------------------------------------------------------------------------------Another survey in 6 months to check on improvements.
------------------------------------------------------------------------------
RECOMMENDATIONS FOR THE LAYOUT OF THE REPORT:
Introduction: Give the date, place and the context for the survey.
Body: Describe the customers’ complains in 3 separate sections according to the survey plan. Leave spaces
between paragraphs.
Conclusion: Give the recommendations for improvements on every item of complaints. Enumerate the issues.
Guidelines for writing:
Keep to formal style.
Avoid using the personal pronoun ‘I’
Do not use contracted forms.
Include linking expressions to provide contrast and establish sequences.
Use both active and passive forms.
Vary the use of tenses / use modal verbs
Identify to whom the report is headed and sign it with your name and position. To:
From:
Phrases to use:
• On _(date)__ we conducted a survey at __(place)___ following a number of complaints made to the head
office. _______ of customers were interviewed during _______. The survey focused on three main areas: 
(next page)
• customers complained that …. • In addition, some people thought that … • A further suggestion was that …
Many shoppers were unhappy that … • Some customers would like …
• We recommend that … to improve customer service, we suggest …
• A further survey should be conducted…
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Unit 4 Franchising
1. KEY VOCABULARY (SB page 34) Learn
Franchising is a business system in which a company (or franchiser) sells an individual (or
franchisee) the right to operate a business using the franchiser’s established system or format.
As part of the franchise agreement the franchisee pays an initial sum of money, a franchise
fee or front end fee, to the franchiser and agrees to pay a royalty or management services fee, for
continuing advice and assistance, which is usually calculated as a percentage of annual turnover. The
franchisee may also pay an advertising fee to contribute to the franchiser’s annual advertising and
marketing costs. The franchisee also has to find the necessary capital to open the business.
The franchiser provides an operations manual, which contains all the information that the
franchisee needs to run his or her business. A franchisor may appoint a master franchisee to supervise
the business in a particular area.
• Franchise store - находящийся в независимой собственности магазин, в котором продаются товары фирмы,
подписавшей с ним франчайзинговое соглашение магазин выплачивает франчайзеру определенный процент от
объема продаж за использование его имени.
• Franchising – франчайзинг
• Franchiser - франчайзер
• Franchise agreement – франчайзинговое соглашение
.• A franchise fee / front end fee – франшиза. Сумма, выплачиваемая при покупке лицензии
• Royalty / management services fee – роялти. Регулярные выплаты за использование собственности, ноу-хау
принадлежащей иному лицу. (В том числе, авторские выплаты за использование произведения.)
Annual turnover – годовой оборот
Advertising fee – выплаты за рекламу
Marketing costs - издержки по маркетингу, сбыту
Operations manual – руководство, сборник инструкций
A master franchisee – куратор
2. LEAD –IN (SB: ex 3 page 35. Tapescript: TB page 15) Learn
Research reveals that 50% of all new businesses fail because of the high risk rates in the sector
of small business.
The main advantage of franchising for a franchisee is reduced risk because you are investing in
a business that’s already operating. It’s a safe bet. But the franchisee has to accept certain conditions as
part of the deal. For instance, there are rules that must be followed. This could concern, perhaps, the
choice of the suppliers, the range of products to sell in the shop, the way the employees should dress
and behave, the type of information that must be provided, such as regular reports on sales. If a
franchisee wants to sell the business he or she would have to get the approval of the franchiser.
From the franchiser’s position it’s really a very different view. The franchiser, the inventor of
whatever the product or service is, wants to expand his business to cover as much territory as he can.
Now the real advantage here is that he can do that without having to invest his own capital and without
having to recruit and manage personnel. All that is taken care of by the franchisee. From then on, he or
she can simply watch the increased fees coming in as his company expands. In addition to that, the
franchiser can also keep tight control over the way that the individual franchisees actually manage their
businesses and take action if things go wrong.
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3. VOCABULARY for the text One Day in my Life. (SB page 36)
• trademark – торговая марка
• market research / MR / marketing research company / to make a research into …
• estimated costs – предположительные расходы, смета
• start up costs – стартовые издержки
• real estate - недвижимость
• overheads – a regular cost of running a business: rent, salaries, heat, light, etc. - Hнакладные расходы, не связанные
напрямую с производством продукта
• fixtures and fittings / f & f / - текущий ремонт
• to charge fee – назначать цену // free of charge - бесплатный
• leasehold – владение на правах аренды
• rent – арендная плата
• the required start-up capital – стартовый капитал
• working capital / operating capital/ - оборотный капитал
• revenue / return profit – прибыль
• gross sales – валовая выручка (брутто, до вычетов
• gross margin / gross profit margin – Совокупная прибыль. Разница между нетто-объемом продаж и стоимостью
проданных товаров. Служит основой чистой прибыли /gross profit/
• vendor account – банковский счет поставщиков
• utility deposit – банковский счет на коммунальные услуги
• initial inventory – начальный товарный запас
• insurance – страховка
• to expedite the process – способствовать, ускорять
• dedication – целеустремленность, преданность делу , /to dedicate, to be dedicated
• payroll – деньги на выплату зарплат, платежная ведомость
4. LISTENING (SB ex 2 page 42, transcript TB page ) Learn
I suppose that to be a successful franchisee you need to have a lot of dedication to the job. In
this business you are to tackle a lot of things at a time: keep up the records and the payroll, look after
the maintenance and update of the equipment. Accurate paperwork is probably eighty percent of the
job in my view.
On the management side, I think the main thing is really to take good care of your employees
because one of the main problems with the job is staffing, finding the right people to work with you. If
they don’t enjoy doing their work then customers are not going to enjoy being with them.
It’s never easy to handle the money management of the business since there’s a basic instability
in the whole thing. You can never be sure of exactly how much you are going to sell – your revenues
are unpredictable. You just can’t guarantee that X number of people will come in and buy your product.
But on the other hand you have to keep up with the bills and pay them on time.
I think that you really need to have a long-term vision looking into the future with hope. The
franchise business doesn’t give you an immediate payback. So you have to be patient and enjoy the
daily success of the business in order to maintain it. Well, in your relationship with your franchiser
the central thing is trust and faith. They have certain standards that they want you to adhere to. So you
have to comply with their rules and follow their formula of the business.
5. WRITING E-MAIL Enquiry letter. 100 –150 words (SB: page 42 - 43)
You are considering the opportunity of • acquiring a license for Dunkin’ Donuts franchise. Write an e-mail enquiry letter to
the headquarters office enquiring information on the following issues:
• franchise agreement
• training course
• the required start-up capital
• store design
• royalty fee
• a brochure and the operations manual
• overheads
Use the phrases below. For the lay out of an e-mail letter look at the reference section at the end of the brochure:
• To…Subject… / • I would be very interested in obtaining more information about … / • I intend to … / • Could you
please tell me …/ • Please, let me know…. / I would be grateful if … / • Looking forward to hearing from you.
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Unit 5. International business styles
1. KEY VOCABULARY (SB page 44) Learn
The characteristics of management often vary according to national culture, which can
determine how managers are trained how they approach their jobs.
The amount of responsibility of any individual in a company depends on the position that he or
she occupies in its hierarchy. Managers, for example, are responsible for leading the people directly
under them, who are called subordinates. To do this successfully, they must use their authority,
which is the right to take decisions and give orders. Managers often delegate their authority. This
means that employees at lower levels in the company hierarchy can use their initiative that is to make
decisions without asking their managers.
To sum it up, the work of a manager can be divided into planning (setting objectives),
organizing, integrating (motivating and communicating), measuring the performance of their staff,
and developing people.
The job of the top managers is to consider the needs of the company and to take the
responsibility for innovation. Top managers also have to manage business relations with customers,
suppliers, distributors, bankers, and investors, neighboring communities, public authorities and
so on. Top managers are appointed, and supervised, advised (and dismissed) by a company’s board
of directors.
2. NEW MANAGEMENT STYLES (text from WB p. 25. Do it after Reading ex 1 and 2 page 47 in
SB) Learn
Traditional management styles were based on the vertical chain of command. In the traditional
model, senior management used to exercise their authority, and the subordinates at lower levels of
the company hierarchy had to carry out their decisions. But in conditions of increasing complexity
of business traditional management styles are becoming obsolete.
The modern business environment is constantly changing. So, in modern big digital
organizations, teamwork or matrix management has proved to be the most effective. It means that a
team is structured for accomplishing a certain project with all the team members sharing the
responsibility. The team managers are appointed but their functions mostly lie in the sphere of
coordinating and measuring the performance of the staff. For the next project the teams are restructured into new ones and with other people in charge. In this case, decision-making is no longer
restricted to senior managers; managers have to delegate tasks to people at lower levels and to
empower them to take the necessary decisions.
As one manager put it, ‘Today you have to be very careful about what you say to someone who
works with you because tomorrow that same person could be you boss.’
• matrix management – матричная организация труда, матричное управление. Организационная структура со
своим управлением, при которой создаются независимые команды для выполнения трудового задания.
3. GIFT GIVING IN THE INTERNATIONAL BUSINESS CONTEST. (SB: ex 2 page 48) Fill in the
gaps:
Vocabulary to use: • custom
• minefield
• abroad
• is a sign of
• offensive
• sensitive
• negotiation
• cultural clash
• etiquette
In Great Britain and the United States corporate gift giving is not a very popular (1) _________;
people can spend their entire working lives without ever receiving a corporate gift. However, gift
giving is sometimes an integral part of the (2) _________ process when doing business (3) ___________.
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It is important to learn about the (4) ___________ of gift giving before sending a gift to an
international client or business partner, otherwise you may find that your gesture appears (5)
___________. For example in China a desk clock (6) ____________ bad luck or death. It is also
interesting to note that the receiver never opens a gift in front of the giver, as that would signify that the
content was more important than the act of giving. Waiting for the person to open your gift would show
that you were not (7) ___________ to Chinese culture. In France, don’t give something with your
company logo, as they find items like this impersonal and in bed taste. Giving knives in Italy, Russia
and Argentina could lead to problems in establishing a deal as this signify cutting off the relationship.
Giving flowers is another possible (8) ____________. In England, Australia and Canada some people
take white lilies as a symbol of death while in Germany, yellow and white chrysanthemums could be
seen this way. What gift giving customs of Russia can cause a cultural (9) ____________?
Ex.4 Japanese work ethics ( SB Listening page 52, Tapescript TB page 21)
Learn and tell:
I Emphasis on the group
• Group orientation is important historically, because it is the question of survival of any island nation.
• Japan has no natural resources; people are the only resource Japan possesses.
• The person will tell you the name of the company he works for instead of his position: “I work for Mitsubishi”, “I am a
Sony man.
II. Human relationships
• The employees have “ lifetime employment” and are promoted by the “seniority order”.
• The employees are very much devoted to the company and call it their “father”
• To achieve harmony, people make sacrifice for the sake of the group and try to agree with each other.
• People always try to come to a compromise and to arrive at the consensus. They learn to get along with each other.
III. Japanese managing styles.
• In Japanese corporations everyone is trained to be a generalist, as opposed to a “narrow specialist” in the USA.
• People are rotated in every department of the company and transferred to other departments to familiarize themselves
with the entire company, and can therefore take over several different duties.
• Decisions are made by all employees, and not just by one top executive as in the USA.
• Management consensus is very common.
• Informal get-togethers (at lunch, coffee breaks) allow the participants to develop a better understanding of the subject
and then bring to successful negotiations with the partner.
5 WRITE A MEMO (MEMORANDUM) based on Listening task, (SB: page 52)
a). Listen to Ms Morivake, a Japanese consultant discussing the content of her seminars on successful management. While
listening make notes after the plan of SB page 52. You will find the model for writing a memo at the reference section at
the end of the brochure.
b). Write a memo of 100 – 150 words based on your notes. Turn to Reference section before writing.
Situation: Vincent Mills, Human Resources Manager recommends the Heads of Department to attend the seminar He does it
by writing a MEMO. The memo is usually short, informative and semi-formal, close to the style of E-mail.
Key for writing:
To: HDs
From: …
Subject: Seminars on…
Date: …
Introduction. Announce the event, name and position of the speaker, subject of the seminar. Tell why you want the HDs to
attend.
The body of the MEMO: Give brief comments on each item of the plan
• Emphasis on the group. (  See next page )
• Human relations.
• Specific features of Japanese management
 See next page
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Recommendations:
Motivate attendance. Give reasons why the information will be of use for the HDs
Inform about: time and place arrangements. Mention coffee break and the opportunity for informal chattering
with the guest
Close the memo with the phrase: If you have any questions, please, contact my secretary Ms Chase on 01 793 - 39.
Sign with initials of the sender. (VM )
5. ROLE-PLAY. (SB page 53)
A cross- cultural consultant and a person going to a foreign country on a business trip discuss the crosscultural issues, which might be important for doing successful business.
In pairs: discuss the following issues:
Use of language: addressing / greeting (formal? informal?)
Non-verbal communication: handshaking, gestures?
Business negotiations: punctuality / respecting the agenda?
Negotiating styles: direct? Indirect? When is the right moment to mention money?
Socializing: attitudes: gift giving, eating, humor? Conversation topics: (religion, politics, salaries?)
Unit 6 Banking
1. KEY VOCABULARY (SB: page 56) Learn
The banking sector in the United Kingdom is made up of a variety of institutions supervised by
the country’s central bank, The Bank of England (US: The National Reserve). This bank looks after
the government’s finance and monetary policy and acts as banker to other banks.
`1
However, for the general public and many businesses, banking services are provided by
commercial banks, or clearing banks, which have branches throughout the country. These banks
offer a wide range of services, which include accepting deposits, making loans and managing
customers’ accounts. Merchant banks, on the other hand, do not deal with the public but specialize in
services for companies or corporate customers. They are particularly active in arranging mergers and
acquisitions and in advising on aspects of corporate finance.
2. BANKING TERMS. Add the missing translations. Learn for a quiz
•to borrow / to lend money
• chequebook
• credit card
• to debit (списать со счета)
• to credit (положить на счет)
• overdraft –превышение кредита
• business loans
• life insurance
• balance (состояние счетa)
•current account
• savings account
• references (реквизиты)
• to debit (списать со счета)
• back office processing
• bank statement(выписка о счете)
• high interest deposit account
• traveler’s cheque (аккредитив)
•cash machine or cash point
• pension planning
•international service • overdrafts (превышение кредита)
•leasing (сдача в аренду / найм)
• to take a mortgage (ипотечный кредит)
• online or electronic banking
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3. BUSINESS SKILLS FOCUS: NEGOTIATING (TB: page 27) Learn the skills you may need to
become a better negotiator. In what life situations you might need these skills?
1. Self-control is a key quality – you should be careful not to let emotional reactions influence your
judgment.
2. Being able to reach a compromise is a crucial ingredient and it is important to understand that you
may have to make concessions.
3. Understanding the position of the other side is essential if you are going to reach an agreement.
4. Allowing time for arguments to be developed and not making hasty decisions are two important
qualities.
5. Distinguishing what is important from what is not helps to focus on the main issues.
6. Reacting calmly to criticism will help to increase the chances of a successful outcome.
7. Doing the background research before entering a negotiation means that you will be able to
anticipate problems that may arise and the positions people will adopt on certain issues.
8. Looking for a solution that can benefit both parties is the key to win negotiations.
9. Being able to deal with stress will enable you to remain composed during a negotiation.
10. Listening carefully to what people have to say is essential in order to understand exactly what they
are expecting from you and to seek clarification where necessary.
4. A LETTER OF APOLOGY Read the letter and write a letter of apology on any imaginary situation using the phrases:
Dear Mr.Chase
On behalf of the National Credit Bank, I would like to express our sincere apologies for $60 overdraft charge that was
mistakenly debited from your account. We have traced the error and found that it was due to an inaccurate entry in our
computer files.
We also apologise for not handling the matter sooner.
Unfortunately Mrs Henry has been off sick and so your message was not passed on.
We have now credited your account with the $60 and, as avalued customer, we would like to invite you to the opening of th
Jacson Pollock exhibition which our bank is sponsoring. I am enclosing two tickets.
Yours sinserely
………………
Assistant Branch Manager
Unit 7. Business and Environment
1. KEY VOCABULARY (SB: page 65) Learn
It is often said that we live in a consumer society. This means that consumption of products and
services is constantly increasing. Companies need to be aware of the impact of business activities on
the environment, the natural world around us.
The best way to reduce the environmental impact of business operations is by helping companies to
take greater responsibility for managing the resources. Research reveals, that consumers would like to
see companies making a genuine commitment to protecting environment. Consumers’ awareness of
the environmental issues makes many companies turn to manufacturing environmentally friendly
products and using packaging, which can be recycled or reused. This helps to reduce the amount of
14
domestic waste. Households are encouraged to sort out certain waste products and prepare them for
further recycle and reuse. Taking to special waste treatment plans and following the concept of the
3Rs (reduce, reuse, recycle) are important aspects in managing the natural recourses and sustainability
(воспроизводство) of the planet.
2. VOCABULARY. (SB: ex 1 page 68) Fill in and learn. Complete the passage below using the following
words:
• sustainability • product descriptions • catalogs •empower • commitment •organic • strategies
Patagonia is an outdoor clothing firm with a strong (1) __________ to environmental causes. It sells
its products through retail; outlets and by mail order .Patagonia is renowned for its spectacular (2)
__________ which are filled with unusual and dramatic photos (all taken by customers) displaying the
clothing in exciting ways. They also contain detailed (3) _______ _________, which include definitions of
materials and explanations of manufacturing processes.
The company makes jackets from recycles plastic bottles and other recycled and reused substances.
It produces clothes from (4) ________ materials. It also donates money to environmental groups and
generally supports efforts that (5) __________ customers to take action. Patagonia’s strategy is to pioneer
new, long-term practices of (6) ___________ in business, prove their economic viability and persuade other
businesses to follow.
When purchasing clothes from Patagonia customers also buy into a commitment to environmental
restoration. Patagonia’s example demonstrates good green-marketing (7) ___________.
3. WRITING a Request letter (SB: page 73)
Write a letter of 100 – 150words to a company in a semi-formal style, asking them to consider your request for sponsorship of a
project:
• Dear…
• Tell that you are writing on behalf of the group, working on ...
•Why you turn to this very company (compliments): We are contacting you because… Notify them of the aim of your letter. Ask
them if they would consider sponsoring the project. What we require is…
• Introduce the idea of the humanitarian value of the project. Mention, what has already been done by the group specifying data,
dates, and activities.
• Give reasons why the project might be of interest for the company commercially, including possible media coverage, customer
appeal, etc. You may appreciate the opportunity to…
• Close with: We would be most grateful if your company could contribute to the success of the project.
• Invite them to contact you for further detail: If you require any further information, please, do not hesitate to contact us on
(tel. #).
• Formal cliché
• Signature
Unit 8. The Stock Market.
1. KEY VOCABULARY. (SB: page 74) Learn
A company can raise money on the stock market or stock exchange (a market place for buying and
selling shares) in two different ways.
It can issue shares (US stocks) or units of its capital, to institutional investors or the general
public. Different types of shares or equities are available, but the most common are known as ordinary or
common shares (US common stock). When an investor buys a share, using the services of a specialist
company or broker, he or she becomes a shareholder (US stockholder) and owns a part of (or has a stake
15
in) a company. Shareholders can make money by receiving dividends, paid as a proportion of a company’s
annual profits, and when the value of their shares increases.
A company can also borrow money from investors by issuing bonds, loans for fixed periods with fixed
interest rates.
Securities refer to both shares and bonds. Each year billions of shares and bonds are sold or traded on the
world’s major stock exchanges.
2.
LEAD IN. A PERSONAL EXPERIENCE OF INVESTING ON THE STOCK MARKET. (SB: page 75)
Retell:
When I decided to invest on the stock exchange, I got advice from a broker on the type of
investments to make. She told me that it was really important to diversify so I did, both geographically and
sector wise. I invested in Europe and the United States and I have stock in almost every business sector. I
have preferred stocks (привилегированные акции) in Healthcare, Food, Transportation, Banking and
Information Technology sector.
I decided against buying bonds. Government Bonds are only interesting when you live in the States
because you may pay less tax there if you buy bonds from the government. However, as I live in Europe, I
prefer to buy ‘preferred stocks’. They have to be bought through a broker and are similar to bonds as it is
like making a loan to a company instead of to the government. The company pays you back before paying
common stock or ordinary shares. However, they are riskier than bonds but the returns are much higher –
7 to 8,5%. I prefer to take the risk and get higher returns.
My broker looks after my investments but I like to keep up-to-date with them. In fact, I check on
them several times a day. I track them on the Internet. There are lots of ‘internet portfolio trackers’ now. I
use the CBS one. You have to enter in the number of stocks you have, the symbol of each company, the
price you have paid and the date you bought them then it will give you your profits and losses. In fact the
information on how your stocks are doing is updated every five minutes.
3. VOCABULARY TO LEARN (SB ex 1 page 77)
• to log on
•to catch up with
•a collapse
•a boom
• Web surfing
• lucrative
• to amount to
• a bid (a price offered )
• commission
•a regulator
• NASDAQ – a US electronic stock exchange
•NYSE - New York Stock Exchange
• Dow Jones – an index of the share prices quoted on NYSE • Nikkei Index – Tokyo stock exchange
PHRASAL VERBS; ( SB page 78 )
• to buy up (to purchase)
• to look after (to supervise)
• to think over (to reflect upon)
• to point out (to draw attention to)
• to call off (to cancel)
• to let down (to disappoint)
• to go about (to start doing)
• to call on (to visit)
4. (SB: ex 2 page 77) Complete the passage about a transaction on the stock exchange using the words
and learn it.
•stock market •shareholder • dividends •broker •commission •shares
Janis Williams has decided to invest a part of her savings on the (1) ________ _________. She contacts a (2)
_________ for further advice about how to do this, and he recommends a selection of different
companies’(3) _________ that she might be interested in buying. He also explains how these companies
have performed in the past and how much she can expect to receive in (4) _________. He tells her how the
transaction will be carried out and lets her know how much (5) ________ she will have to pay for the service.
Once Janis has agreed to the terms, he contacts his representative on the stock exchange, who arranges the
transaction. At the end of the day the transaction has been completed and Janis has become a
(6)_____________________.
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5. STOCK MARKETS AND INDEXES. Read for information. ( WB: ex.6 page 43
Tapescript WB page IV)
NASDAQ - North American Securities Dealers Automated Quotations - (котировки акций)
The NASDAQ Stock Market is the fastest growing major stock market in the world. Its most
distinctive feature is that it was the first electronic- based stock market ever created. More than half of the
shares that change hands in the United States each day do so on NASDAQ. Nearly five and a half thousand
companies trade their securities on this market.
NASDAQ stands apart from the other stock exchanges through its use of today’s information
technologies – computers and telecommunications in place of the traditional trading floor. NASDAQ is a
dealer market. dealers known as Market Makers provide competing to buy and offers to sell stocks
through vast computer networks.
They use their own capital to buy and sell NASDAQ securities. • This differs from an auction
market where a specialist or ‘dealer controls all sales in a specific security on the floor of a stock exchange.
NYSE (New York Stock Exchange) is a customer oriented, two-way auction market where
transactions take place as a result of open outcry of bids and offers made by members acting on behalf of
their customers. Buyers and sellers meet directly on the trading floor – whether their orders arrive
electronically or are handled by a broker. The prices are determined by the interplay of supply and
demand. This differs from the dealer market like NASDAQ where a dispersed group of brokers trade
securities from their own inventories.
Dow Jones Index (or Dow Jones Industrial Average.) People use the Dow Jones index to measure
the health of the stock market. It is 30 companies from NYCE that were chosen from different sectors of the
economy and which are believed to reflect the best overall movement on the stock exchange. So when
someone says, ‘the Dow Jones was up 30 points today it means that the market is doing well.
6 WRITING A LETTER OF INVITATION AND POSSIBLE REPLIES. (Not in the SB)
Read the letters, Choose the best words from the options in brackets.
WRITE three letters according to the models but containing your own information:
a) A letter of invitation You invite a guest of honor to the annual dinner of your work group. Address it to the Public
Relations Manager of the company sponsoring your project on ……… You know the person by name.
b) A reply accepting the invitation
c) A reply declining the invitation whilst suggesting alternative arrangements.
a)…………………………………………………………………………………………………………………
Dear Mr. Swan,
We (want, wish, would like) to invite you to our annual conference on 15 February and (wonder, ask, demand) if you
would consider being one of our guests (announcers, speakers, talkers).
The theme we are promoting this year is the Single European Currency, and we would (admire, like appreciate) a
contribution from your field of manufacturing how this would (afflict, affect, alter) you and your colleagues’
enterprises. Please, (let, leave, make) us know as soon as possible if you are able to (arrive, attend, assist).
(Inside, enclosed, within) you will find a formal invitation (to, of, for) yourself and a guest.
Yours sincerely
Peter Hoffman
Chairman
 See next page
b) …………………………………………………………………………………………………………………
Dear Mr. Hoffman,
17
Thank you for your letter and invitation of 13 January (requesting, asking, inviting) Mr. Swan to your annual
conference.
He will be (content, overjoyed, pleased) to attend and speak about the effects that the parity of currencies will have
on the costs of (crude, raw, first) materials for our industry. He (expects, awaits, forecasts) the talk to last about half
an hour.
I will send you a transcript next week, and Mr. Swan would (enjoy, greet, welcome) any comments or suggestions
you care to (have, propose, make)
He looks forward to seeing you on February 15 at the (occasion, event, function).
Yours sincerely
Barbara Schneider
p.p. (по поручению)Gunter Swan
Secretary
c) ……………………………………………………………………………………………………………………
Dear Mr. Hoffman,
Thank you for your letter and invitation of 13 January. Mr. Swan very much regrets that he cannot attend the
conference, it as you suggested. (Acknowledgements, expressing regret)
This is due to the previous arrangements. Unfortunately, he has to ……………………..(give the reason of refusal) It’s a
long –standing arrangement, which, he cannot alter.
Can we suggest that …………………………? (Offering a counter-proposal)
If it is not convenient, please, don’t hesitate to contact me on……………………. (# tel.)
Signature……….
Position…………
Unit 9. Import Export
1. KEY VOCABULARY (SB: page 84) Learn
International trade is the exchange of goods and services between different countries. Depending on what
the country produces and needs, it can exṕort (send goods to another country) and impórt (bring in goods from
another country).
Governments can control international trade. The most common measures are tariffs (or duties) and quotas. A
tariff is a tax on imported goods. And a quota is the maximum quantity of a product allowed into the country during
a certain period of time. These measures are protectionist as they raise the price of imported goods to ‘protect’
domestically produced goods. International organizations such as WTO (World Trade Organization) and EFTA
(European Free Trade Association) regulate tariffs and reduce trade restrictions between member countries.
A country’s balance of trade is the difference between the values of its 'imports and 'exports. This includes
visible imports / exports (goods) and invisible imports / exports (services). If a country imports more than it
exports, it has a trade deficit. If it exports more that it imports, it has a trade surplus. The bigger the financial flows
are, the higher the turnover is.
2. OVERSEES MARKETS. (SB: page 86) Learn
Companies can choose from various methods to establish their products in a foreign market. One
option is to start by working with local experts such as sole agents or dealers, who have specialist
18
knowledge of the market and sell on behalf of the company. This often leads to the company opening a
local brunch or sales outlet. Another option is to sell, or give permission to use, patents and licenses for
their products. They may wish to start by manufacturing in the export market, in which case they can either
set up a local subsidiary or a joint venture with a local partner.
Further development of international trade presupposes such benefits for the partner countries as
new jobs, higher living standards and closing economic, educational and technological gaps between
people. Specializing in production of certain goods helps make best use of natural resources.
3. MARKETS AND SALES vocabulary. Text BARCO. (SB: ex. 1 page 86 - 87)
•market opportunities
• a complex market
• fast growing markets- динамично развив рынки
• international markets
• a niche market
• a market share
• sales offers
• sales reached a peak
• sales remained stable
• sales stood at …
• sales fluctuated
• sales leveled off
• to shift a strategic focus
• to exploit the potential
• manufacturing facilities
• a strategic focus-план развития
•to emerge as
• assembling plants
•to assemble on the spot
• components- запчасти
• consumer products
• turnover- товарооборот
• to face obstacles
• tax barriers
• strata of society
• sensitivities
• bureaucracy
• delays
4. A COMPANY PROFILE: BARCO. (SB: page 87) Learn
BARCO has recently emerged as one of Belgium’s fastest - growing companies. Created in 1934 as
a Belgian American Radio Corporation, the company moved out of consumer products and concentrated
instead on high – value niche markets such as computer projectors and specialist display systems. BARCO
has shifted its strategic focus from exporting digital High Tech products to assembling them on the spot.
By moving manufacturing facilities, assembling plants and sales offices to India the company increased
its turnover up to 23 bn BFr.
India is one of the most exiting long-term market opportunities in the world and one of the most
complex ones. International companies who want to exploit the potential of Indian markets, face lots of
obstacles. Although India has made efforts to open the economy in recent years, it remains more closed
than other fast-growing markets such as China, when it comes to bureaucracy, import duties, tax barriers
and delays. Although India is welcoming to foreigners and people speak English, there are also cultural
hurdles or cultural clashes. There are sensitivities between states and religions, between strata of society.
Such difficulties also make the country fascinating.
But the opportunities presented by Indian market overweigh any disadvantages. If you can afford
to miss a fifth of the world’s population you can afford not to be there. Any company serious about having a
worldwide market share can’t be absent from India.
5, SHIPMENT TERMS (SB: page 89 – 90) Learn
The invoice – (счет, фактура) In the context of international trade, the invoice provides information
about goods exchanges between the exporter and the importer. It is prepared by the exporter and includes a
description of the goods, their price, and the quality supplied. The invoice can act as a proof of purchase,
informing the buyer that the goods have been sent. 
By looking at the invoice you can
get the complete information about the shipment (перевозимая партия товара): the exporter’s and the
importer’s name and address, date of issue, the port of destination, quantity and description of goods.
Special shipment terms are used for identifying shipment costs, insurance and freight (груз).
19
The bill of lading or consignment note (накладная, коносамент) is a transfer document. It is sent
together with the fright (the goods consigned), giving details of the consignment, the consignor and the
consignee. When signed by the consignee, the last becomes the legal owner of the goods.
Unit 10. Company Performance.
1. KEY VOCABULARY. (SB page 96) Learn:
Companies need to know how they are performing in order to analyze problems, find solutions and
make plans for the future. Management accounts provide data about operational efficiency and
financial accounts give information about financial performance. These tell the company not only how
much it is selling, or how much revenue it is receiving, but also what its costs are -- how much it has to pay
for the different things in order to operate.
With this information a company can then calculate how much money it has made (profits) or how
much it has lost (losses) during a specific period. Listed companies whose shares are sold on the stock
exchange, have to present their accounts to the public in an annual report. An annual report is prepared by
the management of the company whose stock is traded publicly. It discusses the company’s financial
affairs.
2. AN ANNUAL REPORT fragment. (SB page 105, EX.2)
Use the dictionary. Fill in the words. Make a written translation of the letter:
• chief financial officer
• quotas
• revenue
• sustainability
• wastes
• balance sheet
• local subsidiary
• to issue shares
• dividends
• net profit
It has been another excellent year for the company as our businesses have continued to grow. As you
will see from the (1) balance sheet and the accompanying financial statements, our financial performance
has improved significantly.
We are particularly proud of our sales record and of the fact that we are able to report a 6% increase
in (2) ____________during the period. Thanks to this and to the success of various cost reduction
initiatives, our (3) ___ __________ is substantially higher and consequently our shareholders have
benefited from a significant rise in (4) ___________ per share.
Our continuing commitment to the environment, and our policy of ensuring the long term (5)
_________ of the resources that we use manufacturing, have contributed to our recent success in the new
export markets in Eastern Europe where concern for the environment is growing. Our performance in
toxic (6) __________ reduction has been significantly improved and now we are on target to meet EU
requirements. In the light of our success in the East European markets, we are planning to continue
investing there and are moving forward with plans to set up additional (7) _______ ________________.
However, our performance in some areas has been affected by continuing economic uncertainty
and also by the introduction of (8) __________ restricting sales of certain products. On the recommendation
of our analysts, we have decided to go ahead with plans (9) ___ _______ _______ on the Stock Exchange.
Our (10) _______ ___________ _________will be responsible for implementing this new program in the
second half of the year.
Unit 11. Setting Up a Business.
1. FORMS OF PROPRIETORSHIP. Key vocabulary. (SB page 106)
20
Many large businesses in the UK are public limited companies (plc), which means that the public
can buy and sell shares on the stock exchange. Examples include Marks & Spencer, British Telecom and the
National Westminster Bank. The minimum share capital for the public limited company is £50 000, so
many new businesses are likely to take one of the following forms:
Sole Trader or Sole Proprietor – The simplest way of starting a business, usually owned by a
family. You are self-employed and have unlimited liability for all aspects of finance and management of
your business.
Partnership– The partners can contribute tangible capital (money, building, machinery) or
intangible assets ( famous name, intellect, etc.) All partners are responsible for the debts of the partnership.
Profits and losses are shared.
Private Limited Company (Ltd) – a company can be formed with a minimum of two people
becoming its shareholders. They must appoint a director and a company secretary. If the company goes out
of business, the responsibility of each shareholder is limited to the amount they have contributed; they have
limited liability.
In the US businesses have the same basic forms. In order to have the right to issue and sell stock, the
corporation is to be registered by the authorities. Legally the owners of the corporation are stockholders
who offer the shared capital. The final authority belongs to the Annual Meeting of Stockholders. The
corporation is managed by the Board of Directors. The members of BD are elected by the AM. The
president of the company is appointed by the BD.
--------------------------------------Tangible capital, tangible assets: Материально- ощутимые активы (напр. Наличные средства, земля, строения), в отличие от
нематериальных активов (intangible assets), которые являются физически неощутимыми (напр. патенты, торговые марки или
“гудвил” (goodwill) – репутация фирмы).
To what forms of proprietorship do these Russian abbreviations belong? ТОО / OOO / AO
2. ENTREPRENEURSHIP. Complete the passage with the following words: SB Ex3 page 110.
• entrepreneurs
• ventures
• industry
•demand
• advantage
• founded
• predicts
Andrew Klein, the director of Spring Brewing Company (1) founded his company in 1993 with the
idea of bringing a Belgian beer, Wit Beer, to the American market. However, his original approach to
finding the necessary capital, by using the Internet, soon made him a pioneer in this new field. He was one
of the first to understand the (2) _____________ of using the Internet as a means to attract investment
capital for new business (3) _____________. For just $200 a month, Klein was able to rent a site, present
his products and contact investors all over the world. Following in his footsteps, many other (4)
___________________ have been able to finance and promote their own businesses in a similar way.
Today, Wit Beer can be found in several major cities in the US and Andrew Klein (5) ___________
that consumer (6) ___________ for his company products will continue to rise. Indeed Wit Beer already
outsells some more exotic beers, which compete in the (7) ______________.
3. ROLE - PLAY. (SB ex 1 page 115)
PRESENTATION of A BUSINESS PLAN: Turn the page for instructions
21
Business plan is a written report that states what a company aims to do to increase sales, develop new
products, etc. within a certain period, and how it will obtain the necessary finances and resources.
Work in small groups. You have decided to set up your own business together and have approached the
bank for a loan. They have asked you to prepare a business plan. Decide what type of business you are
going to set up, then discuss each of the points listed in the business plan. Make a presentation of your
business plan, each person reporting a few points of the plan.
Use the following presentation as a model.
1. Details of the businesses
6. Marketing
Name of business
What sort of marketing or advertising do
Form of proprietorship
you intend to do?
2. Personal details
7. Premises / machinery / vehicles (транспорт)
Relevant work experience
Where do you intend to locate the business
3. Personnel
and why?
Number of employees / job function
What sort and size of premises (торг. площади)
4. Product / service
What machinery (оборудование) /vehicles do
Description
you require?
5. Market
8. Objectives
Describe your market.
What objectives do you have for the business?
Do you see the niche for your product?
Your target audience (target consumer)
Is your market growing, static or in decline?
Who are the main competitors?
What are the advantages of your product
or service over the competition?
A model of A BUSINESS PLAN Presentation ( SB Ex 1 page 115) Read and use in your presentation:
1. The Tea Set. Initially the business will be registered as a limited company with ten shareholders.
2. I have already worked as an employee in two different companies, where I was involved in both marketing
and consumer service at junior management level.
3. Two full – sales stuff for the shop. One personal assistant to do secretarial work and general office
administration.
4. Retail outlet selling a wide range of specialized teas and tea-related giftware. Sales will be made direct to
customers and also by mail order.
5. it is not easy to dive a precise estimate but it would seem essentially passing trade within the shopping area.
The target customer is middle – aged and with a comfortable income. There is no competition in the area as
the concept for the type of shop is new and comparable products are not currently available in other outlets.
6. I plan to advertise on local radio and in the local press and free press. This will be complemented by flyers
distributed directly through letterboxes to residents in the area.
7. in the street with pedestrian access only, which leads into the main shopping area and market square in a town
of 70, 000 inhabitants. The shop is also close to the station, which is used by several thousand commuters
daily. The surface area is 45 square meters at a rent of 1000 euros per month.
8. At first I will be concentrating on getting the business into profit. But if I am successful I would then consider
looking foe other sites in the city area and expanding the management team. Eventually it might be possible
to set up shops in different locations around the country.
Unit 12. CORPORATE ALLIANCES AND ACQUISITION
Ex. 1. Key vocabulary: (SB page 116)
As business and the world economy become increasingly competitive, more and more companies
have to strengthen their operations to remain profitable; companies can ally in a number of ways,
including the following;
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Joint venture (совместное предприятие), also integration (интеграция ): Two or more companies agree to
collaborate and jointly invest in a separate business project. This type of deal allows partners to combine
their strength in one specific area and develop the effect of synergy.
Merger (слияние): two companies, often in the same industry, come together to form one company.
Companies merge for many reasons, for example, to increase market share and cut costs in certain areas,
such as research and development. (E.g. after the merger of automobile giants Renault + Nissan + General
Motors the total turnover increased to €250 billion)
Acquisition (поглощение): One company accumulates enough of another company’s shares to gain
control and ownership.
Takeover (рейдерство, захват): A hostile acquisition by buying the shares of a company secretly and
unexpectedly, often overnight.
• To ally – to unite by treaty, создать союз
• an ally – союзник, • allies (pl)– союзники
• alliance – альянс, союз.
• Synergy: синергия – увеличение доходов и быстрый рост предприятий после объединения, чем те же показатели каждого
предприятия до их объединения.
Ex. 2 Discussion. Answer the questions relevant to the topic Alliances and Acquisitions:
(The teacher can correlate the answers with the Teachers Book, page 50)
1. What options are open to businesses when they are competing with each other in the same market, if
they want to avoid a price war?
2. What is one of the most expensive areas of investment (after salaries) for example, the automobile or the
pharmaceutical industries?
3. Can you suggest a way to reduce the high costs of Research and Development?
4. What should a big successful company do if a smaller one produces cheaper and / or better quality
products?
5. What advantages can be gained by co-operation with another firm when purchasing raw materials or
components? (bulk buying – закупки большими партиями, to get bulk discounts – скидки на оптовые закупки, economies of scale –
“эффект масштаба” – экономия от увеличения масштабов производства )
6. How have businessmen in Western Europe reacted to the opening up the East European markets?
7. Can you think of any recent corporate alliances?
8. Have you ever read about a failed merger or corporate alliance, and why did it fail?
Ex. 3 Meetings. Fill in the gaps with the offered words. Learn and tell how a meeting should be organized.
(Listening, ex2, SB page 122).
•agenda ( повестка дня)
•consultants •schedule
•minutes (протокол) •actions
•participants
•discussed
•contribute •staff
•chairperson •professionals
•limit
It is generally agreed that successful meetings make successful companies. However, many (1)
professionals complain that meetings are often unproductive and too long. Participants with large egos
regularly dominate discussions and hours of talking end without any clear result. 
Consequently,
many companies get help from specialized (2) _______________, who give advice on how to make meetings
more effective.
If a meeting is to be productive, it should have a clear and stated purpose that all the (3)
_____________ know and understand. You should appoint a (4) ______________ who manages and
controls the meeting. You must write an (5) ____________, or list of items to be (6) ___________ and send
it to all the people concerned. They should prepare for the meeting and come to it with ideas to (7)
____________.
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You have to attach a time (8) ____________ to each point, otherwise there is a risk that some of
items will not be dealt with for lack of time.
You ought to limit the meeting to 90 minutes. If not, you have to (9) ___________ breaks into the
agenda.
You don’t need to invite all the important members to every meeting, but you should send other
senior (10) ______________ members the (11) ______________, or summery of what was discussed.
You don’t have to include everything that was said at the meeting. However, you need to include
actions, decided upon at the meeting. Lastly, the minutes should be sent within 24 hours. It is essential to
keep the meeting results and future (12) _______________clear to everyone’s mind.
Ex. 4. ROLE –PLAY. In groups: Read the situation and the agenda carefully. Think over you position.
Are you for or against? Then prepare how you will express your opinions and suggestions at the meeting. Be prepared to agree
and disagree with the other participants.
Situation:
Your company is negotiating an alliance with a company, which insists that the employees only work 35
hours per week. If your company goes ahead with the alliance, the employees will not have to take a salary
cut – but they will not be allowed to work overtime. Ordinary workers, who often work overtime to earn
extra money, will therefore lose some of their earning potential. Executives in the company who are not
paid overtime will be less concerned about that, but 35-hour week will have other consequences for them. If
they don’t have enough time to complete their projects, they will have to share power and control with new
employees who will need to be brought in to meet work demands.
Agenda
1. The chairperson will bring everybody up to date on the negotiations concerning the alliance. If it goes
ahead we will be obliged to adopt their policy of working a 35-hour week (2min)
2. Each person will be invited to put forward his or her views on the situation. (2 min per person)
2. A general discussion period will follow, where each member will put forward suggestions and
recommendations to help reach a satisfactory compromise. Actions points will be decided upon.
.4. The chairperson will appoint people to be responsible for the various action points.
Useful words and expressions:
The chairperson:
Welcome everyone.
The purpose of this meeting is…
On the one side / on the other side…
Perhaps we could start with the first point, which is…
I have to ask you to be as brief as possible
To sum it up…
Mr. X will be responsible for…
Thank you for participating.
Thank you for cooperation.
The participants:
I think / I consider / I feel that…
On the one hand / on the other hand…
I have no doubt that…/I definitely think that
I suggest / I would recommend…
I agree. / I’m in favor of that…
I disagree./ You may be right, but…
No problem, I’ll do that right away…
I could have done it by early next week
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Unit 13. Marketing.
EX.1 KEY VOCABULARY. ( SB page 125) Learn:
Marketing is the term given to all the different activities intended to make and attract a profitable demand
for a product. Sometimes it is called distribution. This involves:
• Identifying consumer needs and wants in order to develop the Product.
• Setting the Price.
• Deciding on the best Place to sell the product.
• Deciding on how to Promote the product.
These four factors of marketing are often referred to as ‘The four Ps’ or the marketing mix.
Marketing operations include product planning, buying, storage, pricing, promotion, selling, credit,
traffic and marketing research. The ability to recognize the early trends in consumer demands is very
important.
Market research helps the producer to predict what product people will want and to determine the
target consumer. Through advertising the producer influences the consumer to buy. Marketing operations
are very expensive, they take up more than half of the consumer’s dollar.
Different categories of goods aim at different target audiences. Up market goods are expensive and
stylish. They appeal to wealthy consumers. Down market products are cheap and of not very high quality.
They are designed for less wealthy consumers.
EX 2 VOCABULARY. (SB EX 3 PAGE 128). Fill in the gaps using the following words and phrases:
• segments
• fragmented markets
• merchandise-(goods)
• buying decisions
• demands
• monitor
• audience
• market
• consumers
• profiles
As more and more industries are making products specifically adapted to particular (1) segments of
the market. Market researchers are being asked to conduct studies and to compile more detailed
(2) ___________ of consumer groups. Broad classifications based on sex, age, income and social class are
not sufficient for companies operating in highly competitive and (3) _____________ ___________.
Questionnaires are carefully designed to determine the exact needs and (4) ____________ of
(5) ____________________ , as well as establishing what affects consumer (6) __________ ____________ when
they choose one product instead of another.
Advertising campaigns can then be targeted to appeal to the identified (7) ______________. Finally,
marketing people must (8) ____________ the success of the campaign and modify it, if necessary. A
promising new product may be robbed of success by unreasonable prices, inadequate promotion or
poor selling methods.
Wholesaling is part of marketing system. It provides channels of distribution , which help to bring
goods to the (9) ______________. Wholesalers store and sell (10) ______________in big amounts.
Retailing is selling goods and services to the ultimate consumer. The retailers operate through
stores, outlets, and mail-order systems. The retailer is the most expensive link in the chain of distribution.
3. ROLE – PLAY. IDENTIFYING A TARGET CONSUMER.
You are a R&D specialist.
Compile a profile of target audience for a new product. Consider and correlate as many characteristics of
the target consumer and the product as possible. (For example: jeans – the youth).
Prepare a 2-min. presentation of your research.
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Unit 14. Product and Corporate Advertising.
Ex 1. KEY VOCABULARY (SB page 134)
Product advertising is an important part of the marketing mix. Its aim is to increase sales by
making a product or service known to a wider audience, and by emphasizing its positive qualities. A
company can advertise in a variety of ways, depending on how much it wishes to spend on the advertising
budget and the size and type of audience it wishes to target.
The different media for advertising include television, radio, newspapers, magazines, billboards, the
Internet and direct mail.
Big department stores and supermarkets want the stock to move in and out quickly.
For that purpose they use demonstrations, competitions, introductory offers, money–off coupons, free
samples and window displays.
The design and organization of advertising campaigns is usually the job of an advertising agency.
Corporate advertising is not directly concerned with increasing sales of a particular product or
service, but more with the brand image, or the picture a company wants to present to the public.
Public relations (PR) experts specialize in organizing activities and events, which generate
positive publicity for companies. Unusual advertising campaigns sometimes get extra publicity for the
company by way of media reports about the campaign.
Ex.2 Listening Tapescript. DESIGNING A TELEVISION COMMERCIAL (SB page 142)
A TV commercial generally consists of a short film sequence of between 30 and 60 seconds with an
accompanying soundtrack. The soundtrack includes a mixture of life recordings (what people say in the
commercial), a voice-over (the voice of someone who does not appear on screen), jingles (short songs) and
sound effects. Various techniques are used to convince the viewer of the value of the product or service that
is being advertised.
One of the most common of these is ‘dramatization’ where a story is developed around the product
or service. The original ideas behind a commercial of this type are developed from a scenario, a written
document that summarizes the action, the atmosphere, the characters and the scene where the sequences of
the commercial will be filmed. An artist then produces a storyboard, or series of pictures, to show how the
commercial will look. The final slogan is designed to stick in the viewers’ mind.
‘Diamonds are forever’ by De Beers diamond company, is probably the most successful
advertising slogan of all times. It creates a romantic and symbolic image of the product.
Ex.3 ROLE – PLAY. Presentation of a A COMMERCIAL (SB page 142)
In groups, choose a product or service to prepare a scenario for. Discuss your ideas and agree on a scenario
and slogan for a TV commercial using the dramatization technique.
Follow the model.
Make presentation to the rest of the class. Discuss which scenario is the most effective.
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