BEC Test 5 Reading 1 hour Part one Question 1-7 look at the statements below and the article on public relationship on the opposite page. Which section(A,B,C or D) does each statement (1-7) refer to? For each statement (1-7), mark one letter (A,B,C or D) on your Answer Sheet. You will need to use some of these letters more than once. Example: 0 The McDonald’s public relations activities are more than sending out press releases and various charitable activities. 1 All businesses are involved in public relations. 2 Local government believes in a company just because it operates in accordance with public interest. 3 McDonald’s regarded social responsibility as an important part in its relations. 4 A company needs to get on well with the surrounding publics. 5 McDonald’s developed a good image of valuing cleanliness even by keeping clean in the neighbourhood. 6 McDonald’s valued quality, service. Cleanliness and value in its daily operation. 7 No matter what kind of business a company does, it needs to pay attention to public relations. A A company does not function in a vacuum, but rather as part of a society. That society consists of the people who work for it, the people and companies that do it, these groups are known as a company’s “publics”. In order for a company to deal with these publics effectively a relationship of trust must exist. Employees will not cooperate with or put forth their best efforts for a company that they do not trust or that they feel is taking advantage of them. The public will not buy products or services from a company that, in their view, is not responsible or trustworthy. B The government, as the protector of the society it governs, is especially cautions in dealing with a company that it regards as not operating in the public interest. Given these circumstances, every business, whether it is a giant corporation or a small factory, a five-star hotel or a roadside tavern, needs to give some thought to the relationship it has with all the various publics it interacts with, and the techniques that a company uses to improve these relationships are known as “public relations”, also called PR. C A classic example of public relations at work is McDonald’s. It has always been important to McDonald’s to be known as a company that values cleanliness. Indeed, the founder Ray Kroc emphasized cleanliness along with quality, service, and value as being the four most important things in any McDonald’s franchisees to pick up all litter within a two-block radius of their stores, whether it was McDonald’s litter or not. D McDonald’s has always been socially responsible and extremely concerned about its image. These two facts are part and parcel of its public relationships. To McDonald’s, public relations activities go much deeper than simply sending out press releases and having corporate activities go much deeper than simply sending out press releases and having corporate officers serve on various charitable boards. The company understands that real public relations means taking significant action first, then announcing them to the public. Without the first step, the second would be meaningless. PART TWO Questions 8-12 Read this text taken from an article about electronic commerce. Choose the best answer from the opposite page to fill each of the gaps/ For each gap (8-12), mark one letter (A-G) on your Answer Sheet. Do not use any letter more than once. There is an example at the beginning (0). Electronic Commerce (0)___C___. Increasingly, no matter what business you are in, whether it be services, manufacturing, or the primary sector, the capacity to access and process information, and to interact more directly and speedily with suppliers and customers, is becoming the central means of creating value. Today, electronic commerce is having an effect on the way many New Zealanders do business. (8)________. It has become clear that younger people especially are creating their own Internet-based businesses instead of working for someone else. Equally, a growing number of New Zealanders of all ages and from all walks of life are grasping the opportunities the Internet offers. All these businesses are creating exciting new products and services and are adding value and dynamism to the economy. (9)________. Markets are changing and customers are becoming more demanding. Labour, products, and services flow ever more easily across international borders. (10)_________. Just ten years later, some 360 million people around the world have Internet access, and the number of Internet users continues to grow rapidly. In 2000, IDC, a research company, estimates that the value of New Zealand’s Internet-based electronic commerce will exceed 800 million. That is not counting New Zealand’s wholesale electricity market, which in itself is worth a billion dollars annually, and which operates the first electricity trading system in the world accessible through the Internet. E-commerce is available to a multinational company. (11)__________. (12)__________. The software that makes the Internet work is in the public domain. Anyone can install it for free. The Internet Service Providers (ISPs) who sell you Internet access are often owned by large companies, which also own the telecommunications networks over which the Internet runs, but they don’t own the Internet itself. Bo one does. A Although this new environment provides opportunities, it poses risks as well. B The Internet, on the other hand, is an open network. C At the beginning of the 1990s, no one had heard of the Internet, apart from a few researchers and academics. D It means that our business can operate in the global environment, participating in global networks and e-commerce means on-line trading, that is, buying and services over electronic networks. E New opportunities for exporting, for creating new businesses, and for growing established businesses are resulting. F In 2000, the government launched an e-commerce strategy to encourage economic growth and innovation in New Zealand through promotion of e-commerce and technology-based business. G The emergence of the Internet in the 1990s has fuelled the recent rapid growth of electronic commerce, and this in turn is changing the nature of business. PART THREE Questions 13-18 Read the article below about company mission statement and the questions on the opposite page. For each question (13-18), mark one letter (A, B, C or D) on your Answer Sheet. Developing a Mission Statement A company mission statement can be a powerful force to clearly define your company’s purpose for existence. In the beginning, your company was formed to accomplish something that did not exist in the marketplace, or to do a better job than existing companies. What was that special purpose? Small companies seldom take the time to discuss or write out their company mission, but they should. It will pay measurable financial dividends over time. The commitment to formulating a company mission can be critical to your company’s success/ it helps keep management focused on preserving or strengthening the company’s unique competitive niche. It can also prevent panic and unwise marketing or spending responses to meet an indirect thrust by competitors into your market. The most successful company missions are measurable and definable project statements with emotional appeal that everyone knows and can act upon. For example, a mission to “be the best healthcare provider in the world” for a multinational Health Maintenance Organisation sounds good. But a simple mission statement from Honda “Beat GM!” is better because it’s a project statement that can be measured every day by every employee. Mission statements can also affect company strategies and tactics. If Honda Motors were to change its mission to “Beat Toyota!”, different strategies would be called for, along with different geographic tactics in sales, advertising, and distribution of cars. How important is it to define your company’s mission? Consider a famous U.S. refrigerator manufacturer whose sales were growing only an the rate of new homebuilding during the 1950s. they undertook a year-long project to define whether they were in the business of building refrigerators to preserve food or in the business of food preservation. They decided they were in the business areas such as artificial atmospheres (e.g., nitrogen for fresh fruit preservation, freeze-drying technologies) and increased their sales from hundreds of millions of dollars to several billion dollars by the 1980s. Mission statements can be difficult to write. Companies spend months and years attempting to clearly define the best mission statement for current circumstances. Companies that have a clear vision and management that can articulate it and communicate it to all employees, have the basis for a call-to-action mission statement. A call-to-action mission statement provides key attributes that are often missing in other company mission statements. First, it elicits an emotional, motivational response in company employees. Second, it is easily understood and can be transferred into individual action every day. Third, it is a measurable, tangible goal. Last, it is firmly rooted in the competitive environment in which the company operates. A good mission statement provides vision and direction for the company for at least 10 to 20 years and should not have to be revised every few years with changes in the company’s environment. But the company mission statement must be revised if it is no longer appropriate or has lost significance or relevance. 13 What is the function of a company mission statement? A A company mission statement is a powerful tool to help a company accomplish something that did not exist in the marketplace. B A company mission statement defines a company’s purpose for existence. C A company mission statement can help a company do a better job than other companies. D A company mission statement can help a company make a healthy profit. 14 Which of the following is NOT the advantage of a company mission statement? A It can be very important to the company’s success. B It helps preserve or strengthen the company’s unique competitive niche. C It can prevent panic and unwise marketing. D It can help the company beat other competitors. 15 What characteristics does a successful company mission statement have? A Employees know and act on the measurable and definable statement that appeals to them emotionally. B It is very simple and can be measured every day by every employee. C It is one part of company strategies and tactics. D It can make a company become successful. 16 How did the famous U.S. refrigerator manufacturer increase their sales by the 1980s? A They defined their company’s mission properly. B Their sales were growing at the rate of new home-building. C They undertook a year-long project to define their company mission statement. D They decided they were in the business of building refrigerators to preserve food. 17 Which of the following does NOT belong to the attributes that are often missing in other company mission statement? A It elicits an encouraging response in company employees. B It is easily understood and can instruct individual action every day. C It is a tangible goal. D It is tooted in the economic environment. 18 When should a company revise its mission statement? A It should revise its mission statement constantly according to current circumstances. B It should not revise its mission statement. C It should revise its mission statement every few years with changes in the company’s environment. D The mission statement must be revised when it is no longer appropriate or has lost its importance. PART FOUR Questions 19-33 Read the article below about the introduction of market. Choose the best word or phrase to fill each gap from A, B, C or D on the opposite page. For each question (19-33), mark one letter (A, B, C or D ) on your Answer Sheet. There is an example at the beginning (0). What Is a Market? In the simplest terms, a market is the place where seller meets buyer to (0)________products for money. Traditional markets still (19)________in many parts of the world. Even in the United States, during summer months, there are farmers’ markets where direct selling and buying take (20)_________ between producers and consumers. Most service industries still (21)________ at this market level. Manufacturing industries and most agricultural enterprises are more (22)________ from the consumers their products (23)________ several hand-truckers warehouse workers, wholesalers, and retailers before reaching the final consumers. Products or commodities are usually divided into two types: consumer and industrial. Consumer goods are those (24)________ are sold to final users, the customers. These goods include food, clothing, automobiles, television sets, appliances, and all those things people go to stores to purchase. (25)_________ goods are those that are sold to companies or other businesses for use in manufacturing or other purposes. Automobile makers buy many of the parts used to (26)_________ cars. A tyre manufacturer buys rubber, synthetic or otherwise, (27)________ which to make tyres. (28)________ these materials will end up in the hands of final users: the owners of the cars. The (29)_______ of industrial goods depends on the nature of the goods to be made for final users. The price of industrial goods and raw materials will (30)______ the price of final goods, those that the consumer buys. Markets are for exchanging things, (31)_______ their function is to allocate and reallocate goods and services among the members of the society including producers as well as consumers. Since the exchange is (32) _________, it is assumed that both sides (33)_______ what they want by exchange or it would not take place. Example: A exchange B swap 19 A operate 20 A charge 21 A carry out 22 A close 23 A pass along around 24 A what 25 A Commercial Consumer 26 A assemble 27 A in 28 A in time Ultimately 29 A quality 30 A determine 31 A though 32 A intentional 33 A gain C trade D switch B perform B effect B operate B near B go through C serve C place C manage C distant C pass through D function D out D handle D remote D go B whichever B Industrial C that C Agricultural D whatever D B collect B along B After that C disperse C between C Eventually D gather D with D B usage B induce B then B voluntary B acquire C nature C sway C if C deliberate C earn D type D influence D so D compulsory D benefit PART FIVE Questions 34-35 Reading the article below about human resource assessment. In most of the line (34-35), there is one extra word. It either is grammatically incorrect or does not fit in with the meaning of the text. Some line, however, are correct. If a line is correct, write CORRECT on your Answer Sheet. If there is an extra word in the line, write the extra word in CAPITAL LETTERS on your Answer Sheet. The exercise begins with two examples (0 and 00). Examples: 0 THE 00 CORRECT 0 Newham Bank and two major finance unions were fighting the war of words 00 yesterday over the impact of a long-running pay dispute. 34 A spokesman for BBU, that the larger of the two unions, 35 claimed that a second 24-hour strike had taken a serious impact 36 on the bank’s operations and that support for industrial actions was growing. 37 An estimated of 28,000 staff walked out on Wednesday, 38 causing what the union called a “serious disruption”. 39 While these claims, however, have been branded as “nonsense” by Newham. 40 The bank said that fewer than 100 branches banks had closed out of a total of over 1,500 41 and that the number of people who taking part in the strike had been only about 4,000. 42 The bank also denied claims by the unions that the action had put as many as possible 43 half its 2,000 cash machines out of service and caused delays 44 to mortgage and on loan authorizations. The dispute began when the bank 45 announced plans to implement a performance-based pay scheme, which the unions maintain will lead to an effective pay freeze for 25,000 of their members. However, the bank insists that the new scheme is a fairer way of rewarding hardworking employees. Key to Simulation Test Five Reading Part One 1 A 2 B 3 Part Two 8 E 9 A 10 C 11 D 12 B Part Three 13 B 14 D 15 A 16 A 17 D 18 D 20 C 27 D 21 B 28 C 22 C 29 C 23 C 30 D 24 C 31 D Part Four 19 D 26 A 33 A Part Five 34 THAT 35 TAKEN 39 WHILE 40 BANKS CORRECT 44 ON 45 CORRECT D 4 A 5 C 6 36 CORRECT 37 OF 41 WHO 42 POSSIBLE C 7 B 25 B 32 B 38 A 43