UNIT 8 Innovation
[A/W: image of architecturally innovative achievement, e.g. Shanghai airport]
Academic focus: Referencing
Learning objectives
Listening
 Understanding visuals in a lecture
 Expanding on the information presented visually in a lecture
 Locating details and directions on a slide by noticing key language
Speaking
 Using a text to support your stance
 Checking understanding and clarifying information
 Referring to other speakers’ comments to maintain and extend a dialogue.
Reading
 Understanding the use of sources in a reading text
 Using sources to improve your own writing
 Noticing and using the passive voice
Writing
 Writing a paragraph with referencing to avoid plagiarism
 Paraphrasing ideas from a source
 Using the passive to change the topic / focus of a sentence
Study skills
 Incorporating references
Discussion
1 Work in groups, and discuss the following questions.
1 What does the word innovation mean to you?
2 Suggest at least two examples of an innovative building, and an innovative practice. Explain why
these are innovative.
Examples
In terms of innovation I think that…
A recent business practice that I find interesting is…
3 Which of the following is more important for (i) your personal and academic development, or (ii)
the development of your country:
 Innovative systems, e.g. in everyday activities such as banking
 Innovative solutions to difficult problems, e.g. reducing unemployment
 Innovative technology, e.g. in an educational context.
2 Present your main ideas to the rest of the class.
 State the topic and focus
 Describe the context
 Explain your reasons why it is important
 Give your conclusion
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8A LISTENING Understanding visuals
To add extra information, most lecturers incorporate visuals into their lectures, showing language,
images, or both. You should expect to deal with visuals covering limited information – for example
key terms and concepts. However, visuals may also provide citations, and may be based around
sentences rather than words. Information presented visually should be clearly referenced – on the
slide or handout – in order to locate and understand the source for both images and citations in a
lecture.
This module covers:
 Understanding how a lecturer can refer to visuals
 Listening to a lecture and expanding on the information presented in visuals
 Recognizing and using language to locate details and directions on a slide
TASK 1 | Understanding and describing different types of visual
1 Work with a partner. Think of an innovative building that you know well. Take turns to
describe it from a range of perspectives:
aesthetic (how it looks)
environmental (its impact on the local and wider surroundings)
financial (how expensive it was to build)
2 Look at the lecture slides 1 – 9 and identify each type of slide. Choose from the labels given.
Example Slide 3 is a map
a map a plan the title slide a text slide references a graph contents of the lecture
3 Work with a partner. Study slides 3 – 6 and take turns to explain them.
Example Slide 4 shows a plan of Hong Kong airport. In the top right-hand corner of the slide is…
1
2
3
4
5
6
7
8
9
2
TASK 2 | Listening for main points to expand on visuals
1 [video 8.1] Watch Extract 1 and note down one detail added by the lecturer for each point
on slide 2.
2 [video 8.2] Watch Extract 2 and make notes on the main points relating to slides 3 – 6.
Example Slide 3:

Hong Kong
o old airport Kai Tak (NE of city)
 risky location
 limited space for development
o new airport site Chek Lap Kok (NE of Lantau)
 engineering challenge
 one of largest construction projects of C20th
 architects: Foster + Partners
 completed in 6 years
 opened in 1998
[A/W: sidebar giving abbreviations for directions, e.g. north-west NW]
ACADEMIC LANGUAGE
Locating details on a visual using prepositions and directions
To locate and describe details and directions on a slide, lecturers may use phrases built round
prepositions, for example:




On the right-hand side, you can see the old airport, Kai Tak, here – it’s situated in the
north-east of the city
The island known as Chek Lap Kok, here on the left of the slide, off the north coast of
Lantau
Near the top of the slide is the passenger terminal, on the east side, here. The cargo
area is in the bottom half of the slide, to the south.
The other area in the centre of the slide is currently undeveloped
Phrases like these enable you to accurately explain where something is, particularly when using
visuals.
TASK 3 | Understanding and using prepositions and directions
1 [video 8.2] Watch Extract 2 again and tick the expressions you hear.
On this map of London
on the left-hand side of the slide
on the left of the slide
on the opposite side
on the east side
to the south
in the centre of the slide
situated to the west of the city at the top of the slide
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2 Select phrases from 3.1 to complete the text based on the visual information in slide 4.
As you can see 1________, in Hong Kong International Airport, the northern runway is situated
1
________ the island of Chek Lap Kok. 2_______ is the southern runway, while 3________ of that
is the logistics and cargo area. The train station is located 4________ of the island, and if you look
here 5________, there is a large area designated for future terminal expansion.
3 With a different partner, practise describing visuals 3 and 4 again.
TASK 4 | Studying visuals and listening for explanation and elaboration
INDEPENDENT STUDY Lecturers vary the amount of detail they include on each slide, from a few
key words to many bullet points. >> Study the visuals to a lecture, e.g. on Ted.com, and evaluate
how they support and help you understand the lecture.
1 During the ‘short break’ in the lecture, you read slide 7. To help you follow the next stage
in the lecture, expand each bullet point, typically a noun phrase, into a sentence. Add a verb,
e.g. is, and grammatical words, e.g. there. Look up any unknown words in your dictionary.
Example ‘serious risk in most projects’ → There is a serious risk in most projects.
2 [video 8.3] Watch Extract 3 and note down the main information added by the lecturer
which builds on your sentences from slide 7.
TASK 5 | Comparing and evaluating lecture notes
1 Work with the same student as Task 1, and discuss the questions.
1 Look again at the innovative building you chose in 1.1. How effective were your descriptions
when you did that task? What would you do differently now?
2 Take turns to analyse the same building. Based on your knowledge, use some of the points in
slide 10, and / or further questions such as the following:
 Is the technology used in the building standard or innovative, compared to other buildings
in the same environment?
 How is the building used, and does it have any uses other than its intended use, e.g. as a
landmark, or meeting point?
 Does the building appear to have influenced other buildings in the region, or is it unique?
2 Work with another student and answer questions 1 – 3.
1 Compare your notes on slide 7.
2 Discuss what helped you write your notes, including the visuals and the lecturer’s language. Try
to give specific examples.
3 Which kind of slide, given in 1.2, do you find the most useful?
4 Identify any specific difficulties you had in writing your notes, and based on your experience of
listening to lectures so far, evaluate the following suggestions to help overcome these:
 Listen to difficult parts of the lecture several times in order to help with understanding the
lecturer’s pronunciation
 Discuss the topic of the lecture with another student before the lecture to activate your
interest in the topic
5 Suggest any further ways of overcoming difficulties, then present your main ideas to the class.
4
8B SPEAKING Seminar discussions
A common seminar task is to discuss a pre-seminar reading. The reading is used to create and
lead your discussion on a topic. You will often have to check ideas in the text with other people in
your group and also check you understand each other’s reactions. It is also important that you try
to build on what other people say and not just give your opinion in isolation.
This module covers:
 Using a text to support your stance
 Checking understanding and clarifying information
 Referring to other speakers’ comments to maintain and extend a dialogue.
TASK 1 | Previewing the topic
1 Place the following under the correct heading.
Exclusive control of technology .
New and non-traditional competition.
Easy to become global.
Research and development spending does not guarantee success.
Small firms can compete with large firms.
Reduce costs Increase productivity
New innovations fail.
Technological innovation in firms
Threats
Opportunities
Poor preparation may result in loss of business. Companies can bring old products back to life
2 Compare your answers with a partner. Add any other opportunities or threats that you can
think of to the list.
3 Share your ideas with the rest of the class
TASK 2 | Using a text to support an opinion
1 Read the opinions below and find support in the text for each.
1 Innovation can help make a firm more competitive.
2 Technological innovation means a company can be based anywhere.
3 Technological improvements mean that not only large companies are global.
Technology opens up all sorts of domestic and foreign opportunities for businesses who are ready
to take advantage of them. On the other hand, it can also pose many threats to firms who are
unaware of, and unprepared for, technical change.
Opportunities
New goods and services – firms can create new and improved goods and services, revive tired
products and consequently penetrate new markets, and, as a result, can end up with powerful
market shares and controlling valuable processes, products, designs, and brand names. Danish firm
Lego is a good example of a firm using technology to revive a flagging product, the toy building
brick. The brick is now sold with electronic technology allowing customers to build a range of
moving robots.
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Global organisation – technology makes it increasingly easy to extend globally and to integrate
economic activity in many widely separated locations. Technology has thus facilitated the rapid
growth of the multinational corporation with subsidiaries in many countries but with business
strategies, production, and distribution still being determined and controlled by head office in a
single nation. So MNCs like Unilever are able to employ around a quarter of a million people in
100 countries and sell its products in 150 countries.
Small firms – technology can make it easier for small firms to compete with large. The internet, for
example, enables all firms to communicate with customers both at a national and at international
level and to sell goods and services at relatively low cost. Small companies can design their own
websites for as little as a few thousand pounds. Firms, producing for niche markets, can use the
web to reach customers who are of little interest to conventional distributors such as Wal-Mart.
[Source: Hamilton, L & Webster P. 2009. The International Environment Oxford: Oxford
University Press]
Glossary
to revive a flagging product – to try to help a product that is not selling well to start selling again
subsidiaries – smaller companies partly or wholly owned by another company
MNC – Multi-national corporation - a company working in many countries.
niche market – a small and specialised market
2 Listen to extract 1 from a seminar and complete the notes below.
The ideas Ksenia refers to in the text are …..
The ideas Ahmed refers to in the text are….
3 Look at the transcript on page 000 and underline the phrases the speakers use to check and
clarify understanding.
ACADEMIC LANGUAGE
Checking and clarifying understanding
Sometimes it is important in a conversation to check you have understood another speaker or that
they have understood you. There are several phrases that can be used to do this:
Checking understanding of others
So what you’re saying is…
If I understand you correctly, you’re saying..
Do you mean….?
Checking others understand you
Do you follow what I’m saying?
Am I making sense?
TASK 3 | Identifying language for checking and clarifying understanding
1 Look at the conversation below and try to complete the gaps.
6
Ahmed: It’s common sense that spending money on Research and Development is an advantage to
a firm, isn’t it?
Ksenia: __________ companies are going to be more successful the more they spend? I’m not sure
I would agree so many companies must waste a lot of money never really going anywhere. If it
was that easy everyone would do it. _____________________ ?
Ahmed: _________________ you think a lot of money is invested and no return ever made.
Ksenia: Exactly, if it was that easy. Research equals success, equals profit everyone would do it.
2 Listen to extract 2 and check your answers.
INDEPENDENT STUDY There will be many times when you do not understand something in a
text. >> Always try to ask questions to check your understanding – teachers will appreciate the
interaction, and value students requests for clarity
TASK 4 | Building on the ideas of others’
1 Listen to extracts 3 and 4 discussing the topic below and answer the questions below.
Companies that fail to innovate will be unsuccessful.
Conversation 1
Conversation 2
1 Do the speakers refer to what other
people have said?
2 How does it affect the
conversation when people do not
refer to each other’s’ ideas?
3 Look at the transcript on page 00
and make a note of the phrases the
speakers use to refer to each other’s
ideas.
2 Discuss the topic above giving and responding to opinions.
TASK 5 | Preparing for a seminar
1 You are going to discuss the following topic in a seminar.
Companies who do not innovate are putting themselves at risk.
1 Why do you think companies innovate?
2 What threats are there for companies when other firms innovate with new technology?
3 What type of company would have been negatively affected by these innovations?
Music downloads
Mobile Phones
Online holiday booking
4 What is the risk of innovating?
2 Read the text on page 00 and identify parts of the text that could support your opinion on
the questions in 5.1.
3 Now make notes on your opinion of the issues raised in the text.
TASK 5 | Taking part in a seminar
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1 Allocate the role of observer to one of your group. This person should look at the table in
exercise 6 and complete it as you listen.
2 As you discuss the topic make sure you:
1 Refer to the reading.
2 Give opinions on the issues raised.
3 Check and clarify any comments you don’t understand. Try to use some of the phrases below.
So what you’re saying is…
If I understand you correctly, you’re saying..
Do you mean….?
Do you follow what I’m saying?
Am I making sense?
4 Build on the opinions of others.
TASK 6 | Peer evaluation
1 As you observe the group complete the table below.
Did they refer to the text?
Did they give opinions on the
text?
Did they check and clarify at
stages where there was a
misunderstanding?
Did they build on the ideas of
others?
Name:
Yes/no
Yes/no
Name:
Yes/no
Yes/no
Name:
Yes/no
Yes/no
Yes/no
Yes/no
Yes/no
Yes/no
Yes/no
Yes/no
2 Provide at least one suggestion for each person to improve their seminar participation.
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8C READING Textbooks (8)
Sources are used to strengthen the point a writer wants to make. Noticing how they are used in a
reading text can help you to integrate sources effectively into your own writing. The use of multiple
sources also makes writing more objective and less subjective. Another method of creating an
objective style is by using the passive voice. Understanding how and why to use these features
can improve your own writing.
This module covers:
 Understanding the use of sources in a reading text.
 Using sources to improve your own writing
 Noticing and using the passive voice
TASK 1 | Previewing the topic
1 Work with a partner and discuss the following questions.
1. Can you think of reasons why competition between companies is both positive and negative?
Positives
Cheaper products
Negatives
When one company loses (goes out of business)
the customer has less choice.
2. Is it right that drug companies make a profit? Should drugs be available to anyone who needs
them not only people that can afford them?
3. 1. Many pharmaceutical innovations are using nano-technology. What other products do you
know of that contain nano-technology?
2 Summarize your main points to another pair.
TASK 2 | Understanding main ideas
1 In 1.1 you discussed the positives and negatives of competition between firms. Read the text
and add any ideas from the text to your table.
2 Which paragraphs in the text would help you write about the following main topics?
1 The advantages and disadvantages of nano-technology.
2 The positive and negative effects for society of competition between companies.
3 The rights and wrongs of making money from drugs.
4 A definition of nano-technology.
5 The negatives of monopolies on competition.
Which paragraph could help you write each section of your essay?
3 Imagine you have to write an essay on the following topic. To help you plan, complete the
table.
Discuss the advantages and disadvantages of nano-technology.
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Advantages
Disadvantages
The most recent of the new technologies is nano-technology. This technology enables materials
and machines to be created that operate at the nano-scale. This is approximately the size of a
billionth of a metre. To put this into context each page of this book is about 100,000 nanometers in
thickness. The uses of this technology are not yet at an advanced scale. However, it is envisaged
that the new technologies will be able to lead to advances in all of the following areas:
1 providing renewable clean energy
2 supplying clean water globally
3 improving health and longevity
4 healing and preserving the environment
5 making information technology available to all
6 enabling space development
A review of websites such as the one above (see also www.nano.gov, www.nanotech-now.com)
shows enormous potential. Already carbon ‘nano-tubes’ have been developed to produce light
much more efficiently and their use in solar panel is seen as being able to dramatically cut the cost
of solar power. There is the prospect that the technology will also help in a range of energy
reducing activities. Nano-machines may well be able to be introduced into the body and perform
micro operations not possible with existing medical technology. However, scenarios have been
painted about how such technology once released may turn all matter into grey goo. Whilst this
appears to be highly unrealistic the reality is that there is not clear evidence of exactly how such
small particles might behave when set free into biological systems (see www.worldchanging.com.
This website offers a balanced view on the costs and benefits of technology).
Indeed there are many people who question the real motivation for developing higher levels of
technological developments. We have seen how technology is important for enhancing competition
but what happens if this then becomes a weapon for actually replacing competition by establishing
and creating market dominance? For many commentators this is an inevitable consequence of
capitalism with the primary aim of the development of the technology not being for the good of
society but for the ability of one business to make more profit for itself. Marx was a fierce critic of
the motivation for investment or what he referred to as ‘accumulation’. For Marx it was an
essential paradox of capitalism that businesses were forced to try to outwit the competition by
constantly having to invest. This meant that all businesses were constantly forced to spend more
and more on investment and yet face falling profits. Later Marxists argued that in fact what would
happen is that the strongest would survive and capitalism would become dominated by large
monopoly enterprises. In the 20th century an influential writer in this area was Joseph Schumpter.
He saw capitalism as being a process of ‘creative destruction’ by which he meant that indeed
companies through innovation would be able to create monopoly positions but that they would face
the prospect of other businesses developing alternative technologies which enabled them to
provide new products or cut costs. Capitalism would be destructive in the sense that old
companies, products and processes would indeed decline to be replaced by newly created and
better ones.
For believers in free market capitalism all technology reduces costs and improves choice for
consumers. Complex technologies involve high sums of money spent on research and development
which in and of itself acts as a barrier to entry into an industry. The pharmaceutical industries are
often accused of abusing their monopoly powers. However, developing new medicines can involve
very expensive research and development costs which companies are keen to recoup and they need
long periods to recoup this investment. One way of doing this is to protect themselves through
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intellectual property rights in the form of copyright or patents. If a dominant market position can
be established then it can be very difficult for new entrants even where such new entrants develop
less technologically expensive alternatives as the dominant company can seek to protect its
position through aggressive marketing.
This raises ethical questions. Many people are critical of the power of the ‘Big pharma’ in that it is
argued that they seek to exploit large monopoly profits by selling drugs which are heavily branded
to cash rich people in the developed world. This could be justified in this context as developed
world health systems largely enable most people who need these drugs to acquire them (although
not all people). In the case of global markets though there is a problem. In the developing world
low incomes and poorly developed health systems mean people here do not have access to the
drugs they need. These drugs could now be produced more cheaply and sold as generic drugs by
local companies under license but are prevented from doing this by the reluctance of the western
pharmaceutical companies to ‘give away’ their intellectual property rights.
SOURCE: Wetherly Paul and Otter Dorron. 2008. The Business Environment: themes and issues.
Oxford: Oxford University Press.
Glossary
matter – physical life forms such as humans and animals
grey goo – a useless material
paradox – a situation that is hard to understand because it contains two opposite characteristics
barrier to entry – something, such as the expense, that makes it hard for companies to enter a
market
intellectual property rights – the ownership of an idea
TASK 3 | Identifying and understanding the references in a text
1 Read the text and underline the five references made.
2 Match each reference to its function below.
1 Offering further information on a topic. (x3)
2 Presenting a stance on a topic. (x2)
3 Which of the following would not be a stance supported by Marx?
a Investments are made by companies for the good of society.
b Companies invest to beat other firms.
c Capitalism will lead to less competition.
4 Does the writer use Schumpter to support or contend Marx’s stance?
5 Summarise the stance of Marx and Schumpter in one sentence.
TASK 4 | Using the text in writing
1. Look at the following two paragraphs and try to identify the same features in paragraph 2
that are marked in paragraph 1.
Paragraph 1
Vast sums of money are spent by companies attempting to gain a competitive advantage over other
firms. It is therefore understandable that firms attempt to maximize profit at the point of sale. As
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Whetherly and Otter (2008) point out pharmaceutical companies predominantly sell into the
developed world where a premium can be charged for a branded drug. Whilst this may be
considered unethical by some it is perhaps inevitable considering the risks involved when making
such a capital outlay.
Paragraph 2
Some would argue that competition is largely for the good of the consumer. The competition can
both drive down prices and increase choices available. However, according to Marx and
Schumpter (cited in Whetherly and Otter, 2008) competition actually is likely to lead to a decrease
in choice as one firm comes to dominate the market. So in actual fact in the long term competition
may neither drive down prices or increase the product range, but in actual fact have the opposite
effect.
2. You are going to write a paragraph for an essay. Look at the following topic sentences and
find support from the source text for each
1 Even a company with a monopoly faces the risk of competition from potential competitors.
2 Companies aim for a monopoly or at least controlling position in order to protect themselves
from competition.
3. Change the quotes you found in paragraph 2 into your own words and introduce it using a
phrase from the box below.
according to…
as X stated…
as X points out…
4. Write a final sentence to each paragraph commenting on how the quote relates to or
supports the topic sentence.
5. Exchange your paragraph with a partner and check the following:
1 Is there an explanation or example to support the topic sentence?
2 Does the quote support the main point well?
3 Have they expressed the quote in their own words?
4 Have they commented on the quote?
INDEPENDENT STUDY Next time you are given an essay or writing task pay attention to how the
source texts you read include references. >> Try to make sure you integrate source texts into you
writing think about how they relate to your main points, and remember to explain what the quote
shows.
TASK 5 | Noticing objectivity on writing
1 Read the text again and try to answer the following questions.
1 Who believes nano-technology is dangerous? (paragraph 2)
2 Who criticised investment by firms? (paragraph 3)
3 Who accuses pharmaceutical companies of abusing their powers? (paragraph 4)
4 Who argues that pharmaceutical companies try to exploit their monopoly? (paragraph 5)
2 Discuss with a partner why you think the author does not mention a person or organisation
for each of these points.
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 Grammar reference page
ACADEMIC LANGUAGE
000
The passive (1) understanding the passive voice
The passive voice allows the writer to focus on an action without saying who performed the action.
In active sentences the subject identifies who performed the action:
Marxists argued that the strongest would survive.
In passive sentences, writers can focus on what happened or the idea and do not need to focus on
the agent if it is unknown or unimportant.
Carbon ‘nano-tubes’ have been developed to produce light much more efficiently
The agent is optional and can be identified with by + noun phrase
These drugs could now be produced more cheaply and sold as generic drugs by local
companies.
The passive is formed by the verb to be and the past participle, keeping the same tense as the
active form.
TASK 6 | Using the passive
1 Correct the mistakes with the active and passive voice in the sentences below.
1 Most companies have been protected their profits by ensuring they hold intellectual property
rights.
2 Many companies have accused of trying to obtain a monopoly to limit competition.
3 It expects that nano-technology will provide many benefits for society.
4 Millions have spent on researching thousands of medical procedures and drugs.
5 Marxists are argued that capitalism is not good for innovation.
6 This meant that all businesses constantly forced to spend more and more on investment
TASK 7 | Critical thinking
1 Look at the phrases in the box below. Which do you think you might find more often in
academic writing?
It might be argued that…
believe…
It is envisaged…
I think…
This could be justified…
I
I feel…
2 Why do you think this style is used in academic writing?
3 What is the writer’s opinion in the main text? Which type of phrases have they used?
4 Look at these quotes on subjectivity and objectivity in academic writing and discuss which
you agree with more with a partner.
a. If I can read and understand someone’s ideas why do I need to reference them? A lot of it is
common knowledge anyway.
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b. If an expert has spoken on the subject it makes sense to refer to their ideas, doesn’t it? Surely I’ll
gain marks for this.
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8D WRITING Referencing
When citing sources, you need to decide whether to summarize, paraphrase, or directly quote the
material in the original source. Paraphrase involves transforming a short piece of text, normally
one or two sentences, into your own language, i.e. vocabulary and grammar. In order to avoid
plagiarism, you also need to correctly reference the material. Within a paragraph, it is important to
provide a balance of your own ideas and material from other sources.
This module covers:
 Writing a paragraph with referencing to avoid plagiarism
 Paraphrasing ideas from a source
 Using the passive when changing the topic / focus of a sentence
TASK 1 | Identifying and analysing types of citation in context
1 Read Text 1 and identify the following.
(i) the topic, focus, and context
(ii) the sentence which gives the main point
Innovation – Research and development
Text 1
Innovation is a key function of any business.
[…]
R&D is one form of innovation and is directly associated with development of existing products or
creating new ones. Many businesses spend vast sums of money on R&D (especially the
pharmaceutical industry) as this can extend the product life cycle by developing new ways to use
existing products (such as increasing the functionality of a mobile phone); or by indicating new
directions for the company (such as Apple – branching off from PCs to iPods and iPhones). If
successfully applied, R&D can allow the business to find gaps in the existing markets or of course
open up new markets entirely.
However, R&D is expensive, time consuming, and, if in the wrong direction, can be quite
destructive for a business. The examples of Enron, where the creed was ‘innovate or die’, or the
banking crisis in 2008 serve as examples of innovation that was inappropriate and badly managed.
[source: Clark, P., Golden, P., O’Dea, M., Weiner, J., Woolrich, P., & Olmos, J. (2009). Business
and Management Course Companion. Oxford: Oxford University Press. (p.268 – 9)]
2 Now read the first body paragraph from a student essay, and complete the Function of
Sentence column of the table using the terms below.
rationale
definition plus a quotation
example
topic sentence
paraphrase
concluding sentence including evaluation summary
Essay title How important is innovation in your discipline? Discuss with reference to two specific
examples of an innovative product or practice.
1
There are several different types of innovation in business. 2 One type of innovation is research
and development (R&D) into new product areas (Clark, Golden, O’Dea, Weiner, Woolrich, &
Olmos, 2009, p.269). 3 Innovation involves creating something new, and is a ‘key function of any
business’ (Clark et al. 2009, p.268). 4 One reason why businesses need innovation is because
technology is developing rapidly, and businesses need to keep up with these developments. 5 Clark
et al. (2009, p.269) also state that, although it is expensive and possibly risky, R&D can lengthen
the life cycle of an existing product and branch out into new product areas. 6 For instance, British
clothing designer Paul Smith has successfully extended their brand into fragrances. 7 These
developments underline the importance of product innovation through R&D in a business context.
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Glossary
et al. (abbreviation) and other people.
Note: et al. is used for in-text references after all the authors’ names have been given once.
Sentence
1
2
3
4
5
6
7
Function of sentence
Whose ideas
the student
Clark et al
Whose language
the student
rationale
3 Now complete the Whose ideas and Whose language columns by stating whose idea is stated
in each sentence of the text in 2, and whose language is used to express it.
TASK 2 | Correctly referencing source material to avoid plagiarism
1 Work with a partner. Read sentence 2 in the student text in 2.1 and identify each different
coloured part.
Example citation
One type of innovation is research and development (R&D) into new product areas (Clark,
Golden, O’Dea, Weiner, Woolrich, & Olmos, 2009, p.269).
2 Incorrectly punctuated and referenced sentences could be considered plagiarism. Study the
four alternatives to sentence 1 and decide which is the most appropriate form.
1 R&D is one form of innovation and is directly associated with development of existing products
or creating new ones.
2 R&D is one form of innovation and is directly associated with development of existing products
or creating new ones (Clark, Golden, O’Dea, Weiner, Woolrich, & Olmos, 2009, p.269).
3 Research and Development is ‘one form of innovation and is directly associated with
development of existing products or creating new ones’ (Clark, Golden, O’Dea, Weiner, Woolrich,
& Olmos, 2009, p.269).
4 Clark, Golden, O’Dea, Weiner, Woolrich, & Olmos state that ‘R&D is one form of innovation
and is directly associated with development of existing products or creating new ones’.
3 Choose the reason for plagiarism for the remaining three sentences in 2.
(a) the original words are used, with a correct reference but without quotation marks (as if the
words are the student’s)
(b) the original words are used, but without quotation marks, and without giving a reference
(c) the original words are used, with quotation marks, but with an incomplete reference
4 Write out the three sentences correctly, to avoid plagiarism.
TASK 3 | Deciding on the most appropriate form of citation
1 Read Text 2 and note down the essential characteristics relating to
(i) innovation
(ii) creativity.
Innovation and creativity
1Successful
Text 2
entrepreneurs and owners of small businesses are innovative and creative.
or the production of something new or original, results from the ability to conceive of
2Innovation,
16
and create new and unique products, services or processes. 3Entrepreneurs identify opportunities
in the marketplace and visualise creative new ways to take advantage of them. 4Innovation is
usually included in any definition of creativity. 5Although not all entrepreneurs develop new
products or services, or discover new resources, every person who establishes an enterprise, and
who adds value and ensures that an enterprise continues to exist (thereby developing job
opportunities) is involved in economic creation.
6“Creativity” refers to the creation of something new, for example, the creation of a new
business by developing a new product or service, building an organization by financial
manipulation, reshaping an existing business, or creating a business that will survive on its own
and generate a financial fortune as testimony to the entrepreneur’s skill. 7Basically, creativity
involves new ideas, and any application of these new ideas is based on innovation.
8However, as well as involving the identification of opportunities and solutions, creativity
can also involve the adjustment or refinement of existing procedures or products. 9Although
entrepreneurs understand the importance of innovation, they often view the risk and the high
investment that the development of innovative products or services requires as being out of
proportion to the potential profit. 10This explains why entrepreneurs often creatively adapt
innovations of competitors by, for example, product adjustments, imaginative marketing and client
service. 11Thus their creativity finds expression on the continuum of innovation and adaptation.
[source: du Toit, G. S., Erasmus B. J., & Syrydom, J. W. (2010). Introduction to Business
Management 8e. Oxford: Oxford University Press., p.49)]
Glossary
result from (v.) to happen because of sth else that happened first
testimony (n.) a thing that shows that sth else exists or is true
continuum (n.) a series of similar items in which each is almost the same as the ones next to it but
the last is very different from the first
2 Identify the most appropriate sentence(s) from Text 2 which gives information for items 1 –
3.
1 a definition of innovation:
2 an explanation of creativity with examples:
3 how entrepreneurs use innovation and creativity:
3 Decide whether to cite each item 1 – 3 in 3.2 as a quotation, paraphrase, or summary, using
the following questions to guide you.
 Is the original sentence particularly clear, brief, and well-written – would it work well as a
quotation?
 Does the original sentence contain some useful and relevant points, which you could put
into your own language – as a paraphrase?
 Is the original material longer, i.e. more than about two sentences, and can some points
(e.g. supporting ideas and examples) be missed out – would it work best as a summary?
4 Discuss your choices in 3, giving reasons and examples.
ACADEMIC LANGUAGE
 Grammar reference page
000
The passive (2) Using the passive when changing the topic / focus of a sentence
When paraphrasing a sentence, you need to decide on your main focus – or the topic of your
paraphrase. In turn, the topic of a sentence determines the choice of an active or passive verb
form. For example, innovation is the topic, and the grammatical subject, of the following sentence
from Text 2. The verb is in the passive form, because innovation has something ‘done’ to it, rather
than ‘doing’ something:

Innovation is usually included in any definition of creativity.
17
Changing the topic of the sentence to definition, or what people do, means changing the verb to
the active form, for example:


Any definition of creativity usually includes innovation.
Researchers / Entrepreneurs usually include innovation in any definition of creativity.
TASK 4 | Changing the topic / focus of a sentence and using the passive
INDEPENDENT STUDY The passive is frequently used in academic texts, as these are concerned
with objectivity, inanimate objects, and processes. >> Identify the verb forms in two or more
textbook texts, and decide whether they are in the active or passive, and why.
1 Read the following sentences adapted from Texts 1 and 2 and
(i) identify the topic – which is also the grammatical subject
(ii) find the main verb, and decide whether it is in the active or passive
1 Many businesses spend vast sums of money on R&D.
2 R&D is directly associated with development of existing products or creating new ones.
3 Entrepreneurs understand the importance of innovation.
4 R&D can extend the product life cycle by developing new ways to use existing products. 5
Entrepreneurs often creatively adapt innovations of competitors.
6 If successfully applied, R&D can allow the business to find gaps in the existing markets.
2 Rewrite the sentences from 1 using the change of topic. Use the appropriate form of the
verb – active or passive.
Example Entrepreneurs identify opportunities in the marketplace. (New commercial
opportunities…) → New commercial opportunities are identified by entrepreneurs.
1 A large amount of money…
2 Entrepreneurs…
3 The significance of innovation…
4 Product life cycles…
5 Competitors’ innovations…
6 If entrepreneurs…
TASK 5 | Paraphrasing a sentence from a source
1 Look again at sentence 7 in Text 2, and decide which paraphrase 1 – 3 is the most effective.
Use the critical questions to guide you.
Critical questions:
 Is the paraphrase clear and easy to understand?
 Does the paraphrase contain all the points of the original text?
 Does the paraphrase follow a different sentence pattern to the original, and use some
different word forms?
 Is there a balance of original words from the source, especially key concepts and technical
terms, and different / new words?
 Is a reference included, and is it correct?
1 Creativity basically involves ideas which are new, and application of such new ideas is based on
innovation (du Toit, Erasmus & Syrydom, 2010, p.49).
18
2 Creativity essentially means thinking of new ideas and innovatively applying these ideas to
something (du Toit, Erasmus & Syrydom, 2010, p.49).
3 Essentially, creativity comprises novel thoughts, and any use of these novel thoughts is built on
originality (du Toit, Erasmus & Syrydom, 2010, p.49).
2 Compare your answers to 1, and discuss how to improve on the weaknesses of the two least
effective paraphrases in 5.1.
3 Write a paraphrase of sentence 8, following the guidelines below.
1 Note down all the points in the sentence.
2 Decide which words to keep, i.e. key concepts and technical terms.
3 Use your notes to construct your paraphrase, using a different sentence pattern.
4 Include a reference to the original source.
4 Evaluate your paraphrase using the guidelines in 5.1. Then compare and evaluate other
students’ paraphrases.
TASK 6 | Writing an accurately-referenced paragraph
1 Plan to write a paragraph on the role of innovation and creativity for entrepreneurs.
Follow the stages below.
1 Work out what the main purpose of your paragraph is. For example: how entrepreneurs can use
innovation and creativity; difficulties involved in creativity. Write a topic sentence to express this.
2 Decide on your main point. State this in a sentence.
3 Select relevant supporting material from the two sources in this module.
4 Decide on the most effective way of incorporating the source material in your paragraph.
5 Think of an appropriate follow-up to the citations, e.g. an explanation or evaluation.
6 Work on further material to include: examples; supporting points.
7 Express your evaluation in a final, concluding sentence.
2 Write your paragraph following the guidelines below.
1 Refer back to the sample paragraph in 1.2 to help with the structuring of your paragraph.
2 Open with your topic sentence.
3 Define key terms as appropriate.
4 Find a way of stating your main point.
5 Support your definition and main point by incorporating two citations, using different types
(quotation, paraphrase, summary).
6 Include references for your citations.
7 Add the rest of your material: explanation, examples, and evaluation.
3 Check your paragraph using the following critical questions.
1 Does the paragraph contain one topic and one main point?
2 Does it include two accurately referenced citations?
3 Are the citations contextualized, i.e. introduced, explained, and evaluated as necessary?
4 Is there a range of sentence structures, and are these accurate?
4 Read and evaluate at least two paragraphs written by other students, using the critical
questions in 6.3 to help you.
19
8E STUDY SKILLS incorporating references
References are included for a number of different purposes and in a number of different ways.
When the reference is introduced with a reporting verb it is important to make sure the meaning of
the verb matches to your purpose. In particular if the verb takes a neutral stance, a positive stance
or a negative stance.
This module covers:

Using verbs to introduce quotes
TASK 1 | Noticing reporting verbs
1 Underline the reporting verb in the following sentences.
1 Clark, Golden, O’Dea, Weiner, Woolrich, & Olmos state that ‘R&D is one form of innovation
and is directly associated with development of existing products or creating new ones’.
2 du Toit, Erasmus and Syrydom (2010) assert that innovation and creativity are key to successful
entrepreneurship and small business ownership.
3 du Toit, Erasmus and Syrydom (2010) contend the idea that all entrepreneurs establish or create
new products or services, but that all make valuable contributions to society.
2 Which of the references in 1.1 does the following?
1 states neutrally
2 argues for
3 argues against
TASK 2 | Selecting the appropriate verb
1 Put the following verbs into the table below.
acknowledges
defines
Neutral
asserts
disputes
describes
maintains
Argues for
cautions
contends
states
Argues against
2 Look back at the texts in this unit and identify the reporting verb used. Is the reference
being used in a neutral way, to argue for something or to argue against something?
20
Endmatter
Lecture Transcript
Extract 1
[slide 1 is up]
Hello again everyone, good to see you all, and welcome to today’s lecture on ‘major construction
projects: innovation and risk in airport design’. Well, at the heart of innovation is something new,
and clearly innovation has for centuries been vital for architecture and construction projects. I say
it’s ‘vital’ because of course without innovation buildings and infrastructure projects simply draw
on what exists already, and doesn’t move forward. And to meet today’s complex needs, such as
those of a new airport, innovative techniques are needed. To move forward, something new is
needed.
[shows slide 2]
OK, so today’s lecture focuses on recent major innovations in the construction of airports, and the
risks involved. We’ll be looking at two particular examples, Chek Lap Kok airport – which is
better known as Hong Kong airport – and the Terminal 5 development at Heathrow airport in
London. I’ll describe these a little, and these examples will show why innovation is one of the
motivating factors for significant new infrastructure developments at airports – in other words it is
the driving force behind such developments – and also how innovative concepts can benefit end
users, in this case airport passengers and staff.
No project can be considered without predicting the risks involved, so we’ll then examine the risks
with reference to the two airport projects – and see what can go wrong – and why the grand
projects do not always turn out as intended. We’ll see how, in order to be successful, these
apparent success stories require not only land and concrete, but also effective management and
innovative computer software technology. And this IT software has to be reliable. If it is not, the
whole project can be affected.
Later in the lecture I want to investigate further the phenomenon of severe cost-overruns in grand
projects, which has been called ‘survival of the unfittest’.
Extract 2
Good, well, shall we look first at Hong Kong’s airport. Actually I’d like to start by going back to
the 1970s. It was becoming clear that the airport at Hong Kong, Kai Tak was running out of
capacity, and there was very little room to expand and build a second runway.
[shows slide 3]
The map on this slide shows Hong Kong generally and on the right-hand side, you can see the
old airport, Kai Tak, here – it’s situated in the north-east of the city. The problem was that Kai
Tak was situated in a risky location with planes having to fly low over the city to land. With space
in such short supply, a radical solution was needed. A new site was chosen to construct a
replacement airport – the island known as Chek Lap Kok, here on the left of the slide, off the
north coast of Lantau. As you can probably see, it doesn’t look very natural in shape compared
with the other nearby islands.
This is because Chek Lap Kok island presented a major engineering challenge. The island had to
be levelled off, and new land reclaimed from the sea, on its northern coast. Similar work had been
done elsewhere before, but the preparation of Chek Lap Kok island for its new role as host to Hong
Kong’s airport was one of the largest construction projects of the 20th century. The UK-based
architects Foster and Partners were chosen to design the project. The whole project, including the
21
levelling off of the island and the reclamation of sea, was completed extremely quickly – in only
six years. This represents an extraordinary achievement. It opened in 1998, about a year after the
handover of Hong Kong to China in 1997.
[shows slide 4]
You can see the airport in plan form, here. You should be able to make out the two runways,
situated along each side of Chek Lap Kok island, and you’ll also notice a very large area, well
two very large areas actually. Near the top of the slide is the passenger terminal, on the east side,
here.The cargo area is in the bottom half of the slide, to the south. Back in 2010 the airport
became the busiest cargo airport in the world, taking over from Memphis in the USA. It’s
obviously a major hub for the region – mainland China, particularly the south, but also other
countries in the region.
Ah, and the other area in the centre of the slide is currently undeveloped. As you can see, it’s
reserved for future airport expansion. During the design stage in the 1980s the likelihood of major
expansion was identified, and now these plans, these expansion plans, are quite far advanced.
Turning to Heathrow now, the project at Terminal 5 was needed for similar reasons to the
expansion at Hong Kong – growing demand and limited capacity. And again for similar reasons,
essentially planning delays and slow decision-making, the project took a long time to start.
[shows slide 5]
Here on this map of London you can see Heathrow, situated on the left-hand side of the slide,
to the west of the city near the M25, London’s orbital motorway, in blue. While there are other
airports around London, including City airport east of the centre, here, Heathrow is the largest and
there was, indeed there still is, pressure on it to expand.
It was recognized in the early 1980s that a new terminal was needed at Heathrow. For many years
it had three terminals, before a fourth opened in 1986. The need for a fifth terminal quickly became
apparent, driven by British Airways who now exclusively occupy Terminal 5. Richard Rogers
Partnership, the British architectural firm, was chosen to design the building, working with the
engineering firm Arup and other partners.
[shows slide 6]
Here, you can see Terminal 5, sited again on the left of the slide, in the western part of
Heathrow airport. The terminal took a long time to build – a slow public consultation process
meant that construction did not begin until 2002. The development opened in 2008, and the
terminal building is largest single covered construction in the UK.
Innovative techniques were used in the construction process. For example, conventional cranes
could not be used as these would interfere with the radar systems, so smaller cranes were used to
build the roof on the ground before it was lifted up into position.
So, you can see from this brief description that innovation has played an important role in the
development of major projects. As I said, we’ll examine the notion of innovation later in the
lecture, in the section ‘the nature of innovation’.
OK, we’ll just take a very short break now, and…
[fade out]
Extract 3
[fade in]
22
Looking at these two developments today, not many airport users will be aware of the delays and
problems involved when they opened. Indeed, there are, however, serious problems that need to be
considered alongside these success stories. When they opened, both Hong Kong airport and
Heathrow terminal 5 suffered from serious IT failures.
[shows slide 7]
I’d like to relate these failures to a set of questions raised by a researcher at the Said Business
School at the University of Oxford. Flyvbjerg identifies a number of negative characteristics of
major infrastructure projects. This slide outlines these risks, which I’d like to run through now.
[shows slide 9]
I’ll just give you the reference, here, Flyvbjerg.
[shows slide 7]
OK, back to Flyvbjerg’s questions.
First, Flyvberg argues that major infrastructure projects are ‘inherently risky’. This is because they
have long periods of preparation and planning. And they are very complex. Put simply, there are a
lot of things that can go wrong.
Second, the technology and design of the projects are non-standard. They may be innovative, but
they are also unusual – not tried and tested.
Flyvberg’s third point is that there are often conflicting interests with regard to decision-making,
and the planning and management of the projects. There are many different groups of people
involved – the architectural or planning company, construction companies, contract companies,
governments, shareholders, and so on.
Fourth, there is what Flyvberg calls a ‘lock in’ or ‘capture’ of a project early on. By this he means
that projects are decided on at an early stage, so alternative choices and options are not looked at or
analyzed. All the planning efforts are focused on the chosen project and its design, and other
options are ignored.
Fifth, the scope of the project or what he calls its ‘ambition level’ changes. In other words, the
details and size of a project are not fixed during the planning stages. Things change. Different
agents such as governments and business come up with new demands. The goalposts are moved, if
you like.
Sixth, Flyvberg states that statistical evidence indicates that unplanned events are not taken into
account. Obviously unplanned, or unpredictable, events cannot be predicted. But it needs to be
recognized that they are going to happen, and recognition means time and money. Something bad
usually happens, and we should expect this and put some of the budget aside to cover it.
Flyvberg claims that ‘misinformation’ – the wrong information – is widespread. Misinformation
about costs, benefits, and risks, he argues, occur all through the project. It is in some people’s
interest to underestimate the cost of construction, for example.
All these factors result in cost overruns, and what he calls ‘benefit shortfalls during project
implementation’. What this means in simple terms is more is promised, less is delivered, and it
costs more than was planned.
I’d like now to look again at the cases of Hong Kong airport and Heathrow terminal 5, and see how
far Flyvjberg’s statements of risk applied to these projects. Flyvjberg explains that the difficulty
lies in the complexity of the projects. It is hugely challenging to develop a major new airport. In
addition, such projects depend on major information communications technology, or ICT.
23
Flyvjberg cites both Hong Kong airport and Heathrow Terminal 5 as examples where ICT failures
severely affected the opening of the projects. In Hong Kong, he states that the ‘initial ICT hiccups
so bad that the whole Hong Kong economy suffered’.
[shows slide 8]
If you could just take a look at this graph a moment, it shows the cost overruns in major
construction projects. It compares road, rail, and bridges and tunnels, and you can see the average
budget overshoot, that’s the straight diagonal line here – this shows the average cost overrun.
Depending on the scale of the project, given on the horizontal axis here, the x axis, this cost
overrun can be up to a remarkable 500%, five times the original budget.
Like Hong Kong, Heathrow experienced something similar, with the baggage system failing to
work properly when the airport opened in 2008. Again, this was due to a major ICT failure, which
was expensive to put right. I’d like to give you my own view on this issue. Basically I’ve said that
to move forward requires innovation, yet there’s a paradox – yes, you need innovation, but no you
don’t want too much in your ICT systems. Tried and tested systems are much more likely to work
than wonderful, new, innovative – and risky – systems.
Well, Flyvjberg goes on to list a number of other examples, including the Toll Collect road system
in Germany, the Channel Tunnel between England and France, the Great Belt tunnel in Denmark,
the Los Angeles subway, the rebuilding of Iraq, and the major cost overruns in London’s 2012
Olympics. His conclusion is that from an economic point of view these tunnels and many other
projects should never have been built in the form they were. And much of the blame is directed at
ICT systems.
In the next part of the lecture I’d like to examine this phenomenon further. The name Flyvjberg
gives to this phenomenon is ‘survival of the unfittest’, which in its original form should sound
familiar to most of you…
[fade]
Speaking
Extract 1
Ksenia: It’s pretty obvious really, isn’t it? That a more innovative firm is going to be more
successful.
Ahmed: Well I’m not so sure. There are plenty of innovative firms that have failed.
Ksenia: So what you’re saying is that innovative firms aren’t successful.
Ahmed: Sorry, no I mean we all hear about the successful ones like Apple and Microsoft but there
must be hundreds that fail. But then as the text says, firms that are unaware of or unprepared for
technological change are in a dangerous position.
Ksenia: Yes if you’re successfully innovative it can put you in a good position. Like the text says
you can have a powerful market share. As you said Apple are an incredibly successful and
innovative firm. Their products, design and brand name really control the market.
Ahmed: Following on from that point it can also help revive flagging products or brands. The
text gives Lego as an example, but one I clearly remember is when BMW bought Mini. The car
suddenly became cool again.
Ksenia: Probably Apple falls under that category as well, Steve Jobs famously said Apple was
failing because it failed to innovate. Another point the text raises is globalization. The global
organisation is the one that’s easiest for a firm I think.
Ahmed: Do you mean it’s the easiest innovation for firms to take advantage of?
Ksenia: Well yes because it’s not that the firm has to be innovative they just have to notice what is
there and take advantage. Do you follow what I’m saying?
24
Ahmed: I think so – essentially someone else does the innovating and the firm has less of a risk.
Ksenia: Exactly, as the text says a firm can have its head office in one location but have different
parts of the business based anywhere. The last point the text makes regarding size I think is the
most interesting. Small companies now have a chance to compete with big firms.
Ahmed: Really? So what you’re saying is that being big is no longer an advantage?
Ksenia: Well, not quite. But they at least have a chance to compete. Like the text says, a firm
selling a niche product can actually reach a lot of customers now, much more easily than before.
Ahmed: They’re not competing though, really are they? If the big company wanted to sell the same
product they could. So it’s a bigger market but not really a direct competition but perhaps a more
competitive company. Am I making sense?
Ksenia: Yes, I think so. You mean the company is stronger but is still not competing?
Ahmed: Exactly, they are not going to compete with the big firms, but as the text says innovations
like the internet mean that they can potentially sell to a lot more people.
Extract 2
Ahmed: It’s common sense that spending money on Research and Development is an advantage to
a firm, isn’t it?
Ksenia: Do you mean companies are going to be more successful the more they spend? I’m not
sure I would agree so many companies must waste a lot of money never really going anywhere. If
it was that easy everyone would do it. Am I making sense?
Ahmed: If I understand what you’re saying you think a lot of money is invested and no return ever
made.
Ksenia: Exactly, if it was that easy. Research equals success, equals profit everyone would do it.
Extract 3
Donald: Companies that fall behind with technology are going to fail.
Cyril: Yes technology helps companies operate much more globally than before.
Kamla: There are many companies that were successful but didn’t recognise the importance of a
new development.
Donald: Nokia were a top mobile company but fell behind because they didn’t move quickly
enough with good smartphones.
Cyril: Amazon was started in a garage and is now one of the biggest book retailers in the world.
Kamla: Many phone companies struggled because mobile phone companies took so much of the
market.
Extract 4
Donald: As you said earlier Cyril there are many companies that have failed because they have
fallen behind with technological developments.
Cyril: Take companies that sold CDs, for example, the internet allowed them to not only sell to a
bigger market but also to cut production costs.
Kamla: Following on from that point there are many companies that were successful but didn’t
recognise the importance of a new development. Some music companies are a classic example of
that.
Donald: I remember some music shops that don’t exist on the high street or the internet. If they had
moved to downloads they would probably still be doing well.
Cyril: You made an interesting point Kamla about companies not recognizing the importance of a
development, well Nokia is a classic example.
Kamla: Exactly, they were a brand leader but fell away because they were too slow with
smartphones.
Speaking 5.2 Text for discussion
While technology offers many opportunities for business to meet the objectives of generating sales
and profits, it can also pose many threats and challenges.
Business organisations have to prepare for, and learn to cope with, new technology and to take
advantage of the opportunities offered by technology to devise new consumers’ goods and new
25
methods of production and distribution, to create new markets, and to take advantage of new forms
of industrial organisation. Innovation involves change in products or processes and it can be risky
especially for firms who are not good at managing change effectively because new products may
not catch on in the market place and new production processes may not deliver the expected
benefits. Most innovations fail as do a significant proportion of process innovations. In IT projects,
the failure rate in the UK has been estimated by Standish, the reputable analysts of project success,
at more than 80% and that rate has not changed much since the mid-1990s.
If firms are not prepared then new technology could result in them going out of business.
Schumpeter called this the process of creative destruction. He argued that innovation over a period
of time, by bringing in new products, new sources of supply, and new types of organisation could
create a form of competition that strikes not simply at profits and market shares but at their very
existence. Schumpeter’s notion of creative destruction is neatly encapsulated by the chief executive
of Proctor and Gamble who said, ‘People ask me what I lose sleep over. If someone announced an
alternative to solution chemistry (i.e. washing powder) for laundry, all of a sudden I’ve got an
US$11billion business that’s at risk (Financial Times, 22 December 2005). HMV, the UK music
retailer, underestimated the threat from online competition both in terms of physical CDs and in
music downloading. Its shares fell sharply and its share price was undermined.
Even firms sitting on comfortable monopoly positions can find such positions threatened by new
technology. The telecommunications industry is a case in point where national monopolists such as
BT, Deutsche Telekom and France Telecom who owned networks of telephone lines, found
themselves under severe attack from mobile phone companies and from firms using satellite
systems.
As in telecommunications, such competition may not arise from within existing boundaries of an
industry. Companies like Amazon, using the web as a new business model, have made a significant
impact on traditional book retailers like Waterstones. Not only does Amazon provide a greater
choice of books in its 800,000 titles, it also uses digital technology that permits customers to read
experts from 33 million pages of 120,000 volumes. In the travel business, one of the most
successful forms of e-commerce, the internet has pitted travel agents and established airlines
against online providers in an intense battle to win customers. Online agents such as Expedia and
Travelocity have shaken up the travel booking business while low cost airlines like Ryanair and
easyjet have used the internet to cut the costs of their reservation systems. This has made them
even more price competitive , and has forced their established rivals, such as BA, Air France and
KLM, to extend their online reservation service. As a consequence, more and more flights and trips
are being booked over the internet rather than through call centres or high-street travel agents.
Some commentators estimated that online booking accounted for a third of the USA US$200
billion travel market in 2005. US railway and airline customers book almost half of their trips
online (The Economist, 29 September 2005)
Listening
Answers
1.2
1 the title slide; 2 contents of the lecture; 3 a map; 4 a plan; 5 a map; 6 a plan; 7 a text slide; 8 a
graph; 9 references
3.1
On this map of London
on the left-hand side of the slide
on the left of the slide
on the opposite side
on the east side
to the south
26
in the centre of the slide
situated to the west of the city
in the top right-hand corner
3.2
1 at the top of the slide
2 on the opposite side
3 to the south
4 on the east side
5 in the centre of the slide
speaking key
1.1
threats – new and non-traditional competition, r & D does not guarantee success, new innovations
fail
opportunities – easy to become global, reduce costs, increase productivity, exclusive control of
technology, small firms can compete with big firms
2.1
1 firms can create new and improved goods and services, revive tired products and consequently
penetrate new markets, and, as a result, can end up with powerful market shares and controlling
valuable processes, products, designs, and brand names.
2 technology makes it increasingly easy to extend globally and to integrate economic activity in
many widely separated locations.
3 technology can make it easier for small firms to compete with large. The internet, for example,
enables all firms to communicate with customers both at a national and at international level and to
sell goods and services at relatively low cost.
2.2
Ksenia – the size of firms and competition, multiple locations, selling niche products
Ahmed – innovations like he internet can help sales
2.3
So what you’re saying, do you mean, do you follow what I’m saying, so what you’re saying is, am
I making sense,
3
do you mean, am I making sense, if I understand what you’re saying
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4
as you said earlier, following on from that point, you made an interesting point
reading key
2.2
advantages - 1 providing renewable clean energy
2 supplying clean water globally
3 improving health and longevity
4 healing and preserving the environment
5 making information technology available to all
6 enabling space development
disadvantages - such technology once released may turn all matter into grey goo
2.3
1 1 and 2
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35
41
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3.1
1 (see also www.nano.gov, www.nanotech-now.com) www.worldchanging.com
2 Marx and Schumpter
3.2 a
3.3 support
T4
topic sentence - Some would argue that competition is largely for the good of the consumer.
explanation - The competition can both drive down prices and increase choices available.
quote - However, according to Marx and Schumpter (cited in Whetherly and Otter, 2008)
competition actually is likely to lead to a decrease in choice as one firm comes to dominate the
market.
explanation of the quote's significance - So in actual fact in the long term competition may neither
drive down prices or increase the product range, but in actual fact have the opposite effect.
T5
1 not stated
2 not stated
3 not stated
4 not stated
5 not stated
6 not stated
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T6
1 have protected
2 have been accused
3 it is expected
4 have been spent
5 argued
6 were constantly forced
T7
It might be argued that, this could be justified, it is envisaged
Writing key:
1.1
(i) topic: innovation; context: research and development; context: business
(ii) If successfully applied…
1.2 and 1.3
Sentence
1
2
3
4
5
6
7
Function of sentence
topic sentence
paraphrase
definition plus a quotation
rationale
summary
example
concluding sentence
including evaluation
Whose ideas
the student
Clark et al.
the student + Clark et al.
the student
Clark et al.
the student
the student
Whose language
the student
the student
the student + Clark et al.
the student
the student
the student
the student
2.1
One type of innovation is research and development (R&D) into new product areas (Clark,
Golden, O’Dea, Weiner, Woolrich, & Olmos, 2009, p.269).
citation
abbreviation
authors of source / authors being cited
year of publication
page number in book
2.2 and 2.3
1=(b) original words used, but without quotation marks and without giving a reference
2=(a) original words used, with a correct reference but without quotation marks (as if the words are
the student’s)
4=(c) original words used, with quotation marks, but with an incomplete reference (no date)
3=not plagiarized: original words used, with quotation marks used correctly, with a correct
reference
2.4
1 According to Clark, Golden, O’Dea, Weiner, Woolrich, & Olmos (2009, p.269).R&D is ‘one
form of innovation and is directly associated with development of existing products or creating
new ones’.
2 ‘R&D is one form of innovation and is directly associated with development of existing products
or creating new ones’ (Clark, Golden, O’Dea, Weiner, Woolrich, & Olmos, 2009, p.269).
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3 Research and Development is ‘one form of innovation and is directly associated with
development of existing products or creating new ones’ (Clark, Golden, O’Dea, Weiner, Woolrich,
& Olmos, 2009, p.269).
4 Clark, Golden, O’Dea, Weiner, Woolrich, & Olmos (2009, p.269) state that ‘R&D is one form of
innovation and is directly associated with development of existing products or creating new ones’.
3.1
(i)Innovation:
 successful entrepreneurs have ~
 definition: ‘the production of sth new or original’
 results from thinking up new ideas
 essential part of creativity
(ii) Creativity:
 creation of sth new
 new ideas, & application of new ideas
Both involve something ‘new’
3.2
1 a definition of innovation: 2
2 an explanation of creativity with examples: 6
3 how entrepreneurs use innovation and creativity: (8) / 9 – 11, i.e. the final paragraph
3.3
1: quotation – it’s a concise definition and difficult to paraphrase
2: paraphrase or summary
3: summary
4.1
1 Many businesses / spend – active
2 R&D / is associated with – passive
3 Entrepreneurs / understand – active
4 R&D / can extend – active
5 Entrepreneurs / adapt – active
6 R&D / can allow – active
4.2
1 A large amount of money is spent on R&D by many businesses.
2 Entrepreneurs associate R&D with the development of existing products or creating new ones.
3 The significance of innovation is understood by entrepreneurs.
4 Product life cycles can be extended by developing new ways to use existing products.
5 Competitors’ innovations are often adapted creatively by entrepreneurs.
6 If entrepreneurs successfully apply R&D, it can allow the business to find gaps in the existing
markets.
6 (alternative) If entrepreneurs successfully apply it, R&D can allow the business to find gaps in
the existing markets.
5.1
2 – clear; contains all points; follows a different sentence pattern; balanced; includes reference
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