t

es
Coursebook

Uoper lnterme<iiate
Business English

1 Tonya Trappe 1 Graham Tullis 1

 Pearson Education Lim ited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Compaoies throughout the world.
www.longman.com
Pearson Education [.imited 2006
The right of Tonya Trappe and Graham Tullis to be identified as
authors of this Work has been assened by them in accordance with
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First publishcd 2006
ISBN-13: 978-0-582-84809-2
IS'BN-10: 0-582-84809-l
Sel in Economist Roman 10.5 /U.5
Printed in Spain by Graficas Estella
Acknowledgements
nie authors would like to thank our editors, Tony Garside and
Stephen Nicholl, and 1he following people and their organisations for
their assistance: Laurence Baierlein, GiUes Bguin, Grard Desmarest,
Mac MacKenzie, Violaine Fray, Sarah Hamberg, Haivard Business
School, Olivier Meller, lnsead Fomainebleau, jean Pierre Masson, Kevin
O'Driscoll, Adeline Quesnel and Hcnriette Tullis. We would also like
to thank the students and staff at ESlEA Pars and L'universit de Pars
XJI.
The publishers would like to thank the fullowing people fur their
belpful comments on the manuscript for this book: Irene Barrall, UK;
Louise Bulloch, lntercom Language Services GmbH; Steve Bush, The
Btish lnstitute, Florence; Wtlliam Cooley, Open Schools of languages,
Madrid; Petcr Dunn, Groupe ESC, Dijon, Bourgogne; jolanta Korc-
Migo, Warsaw University ofTecbnology; Louise Pile, UK.
Thc publishers would like to thank the fo llowing people for tbeir help
in piloting and developing this course: Richard Booker and Karen
Ngeow, Unversity of !Hong Kong; Adolfo Escuder, F.U Estudios
Empresariales, University of Zaragoza; Wendy Farrar, Universita
Cattolica del Sacro Cu ore, Piacenza; Andrew Hopgood, Linguarama,
Hamburg; Ann-Marie Hadzima, Depl of Foreign Languages. National
Taiwan University, Taiwan; Samuel C. M. Hsieh, F.nglish Department,
Chinese Culture University, Taipei; Laura Lewis, ABS lntemational,
Buenos Aires; Maite Padrs, Universitat de Barcelona; Giulietc Aymard
Ramos Siqueira, Sao Paulo; Richmond Stroupe. World Language
Center, Soka University, Tokyo; Michael Thompson, Centro Llnguistico
Universitil Commerciale L Bocconi, Milan; Krisztina Tll, Eurpai
Nyelvek Stdija, Budapest.
The publishers are grateful to The Economist for permission to adapt
copyrigh1 material on pages 9 (@12004), 17 (2004), 25 (@2003), 35 (2002),
44 (<G2004), 51 (!02004), 6l (2001), 77 (2004), 103 (<C>2005), 129 (~04~ Ali
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We are also grateful to thc following for pemiission to reproduce
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for an extract adapted from 'Fossil-fuel Dcpcndency - Do oil reserves
foretell bleak fu ture?' whicb first appeared in Pa.cific News Service
April 2004; The New York Times Co. for an extract adapted from
'A Path to Helping the Poor, and His lnvestors' by Harry Hurt ll,
October 2003 published in ie New Yorl1 Times The New York
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Front cover images supplied by Still Pictures/Hartmut Schwarzbach
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Picture Research by Liz Moorc.
Every effort has been made 10 trace lhe copyright holders and we
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lllustratio n acknowledgements
Ali by Kevin Kallaugber (KAL~
Projec1 maniged by Tooy Garside.
Designed by Woodcn .A:rk
 Bookmap Review 4

7 Unit 1 Alliances 111 Unit 13 Ranking

Company bosses on the prowl
15 Unit 2 Projects
Mission to accomplish
23 Unit 3 Teamworking
The stuff teams are made of
Review 1
Money matters
119 Unit 14 Training
Practice makes perfect
127 Unit 15 Consulting
The advice business
Review 5

33 Unit 4 Information 137 Pairwork

Mergers and acquisitions
The real-time economy
Spring in their steps 147 Glossary
CEOs are once again on the Lookout for 41 Unit 5 Technology 155 Glossary test
global mergers and acquisitions. But The pace of change
are business planners over-optimistic 157 Grammar reference
about the chances of success for deals 49 Unit 6 Advertising
like these? Statistics sug!Jesl that The power of persuasion 164 Audioscripts
three out of four deals have failed to
make shareholders richer in the past. Review 2
So what can leaders do to avoid
making the mistakes of thefr
predecessor.s? Page 9. 59 Unit 7 Law
In the name of the law
67 Unit 8 Brands
Keeping it exclusive
75 Unit 9 Investment
The rewards of risk
Review 3

85 Unit 10 Energy
What if ... ?
Competitive advantage
93 Unit 11 Going public
Searching fo r shareholders Crunch time for Apple
Steve Jobs, Apple's enigmatic CEO, has
101 Unit 12 Competition already taken the lead in the market
for personal music systems and now
Winner takes all he's taking aim at PC industry leaders
Targeting the audience Dell and Microsoft. In the process, he
hopes to transform Apple from a niche
The harder hard sell p(:ayer to mainstream computer
The advertising industry is facing more SQpplier. Page 103.
difficult chokes than ever. Whether it
continues to spend money on
traditional media or decides to
embrace alternative methods of Learning to write well in a foreign language is one of the
reachfng cqnsumers, one thing is rnost difficult challenges facing the language learner, This
certai n: the industry will continue to pocket-sized stylt! guide will he.lp you fino the right words1
reinvent itself and meet the creative use an appropriate style and write effectively. See inside
challenges ahead. Page 51. the back cover.
4
 Reading Language Vocabulary Career skills Dilemma &
Decision
Fossil fuel Conditionals Negative Problem-solying The power of
dependency prefixes Approaches to problems money
IEnergy
s5 87 90 Collocations 91 92
Page and Brin's Future forms Oefinitions Making a presentation Which way to
daring IPO Presentation styles Wall Street?
Going public Prefixes
. 93 95 98 99 100

Crunch time for Time clauses Expressions with Handling conflict The cola
Apple hove How much comeback
1 Competition confrontation?
101 103 106 Compound n.oruns 107 108

language check: Conditionals; Future forms; Time clauses; Consolidation

lvocabulary check; Career skills: Problem-solving; Making a presentation; Handling conflict
1. 109
A path to helping Reference words Expressions Persuading Reliable
the poor with make Exerting influence research?
1 Banking
111 113 116 Collocations 117 118

A leadership Clauses and Word groups Motivating AUocating the

lesson in se111tence Providing incentives training budget
ITraining Shakespeare construction Verb- preposition
combinations
119 121 123 125 126

Global Reporte'd Uses of like Reporting Consultant with

professional- speech Reacting to change a conscience
Consulting service firms Word building
1 127 129 132 133 134

1 Language check: Reference words Clauses and sentence construction; Reported speech; Consolidation
Vocabulary check; Career skills: Persuading; Motivating; Reporting

-
r .;;--- Investing in development
A path to helping the poor

~
C0mbatin9 po11erty in the developing world has
traditonally been tne task of governments and
voll! nti!I}! orgar:1isations, but a top Swiss investment
banker wants to :ehange all that. He encourages prvate
f,Hifil4i'
155
investment through microfinarice institutions in
potential entrepreneurs in the developin!J world, which
he believes will not only help the fight against poverty
hirt a!S.o generate profitS for the investor.$. Page 113.

~
ril@HiI
164

s
As business English teachers, we know how
importa nt it is to learn the key business
language necessary to participate in an
increasingly international work environment.
We also recognise the need to Jearn about
business concepts, devel.o pments in busi ness
and how business works in different cultures.
We are th erefore delighted to have written
IritelLigent Business in partnership with The
Economist magazine, a unique resource of
insights into news and business throughout
the world.

Key business concepts

When selecting tapies we were very aware of
the need to include not only general busi ness
areas such as advertising and banking but also more
complex issues such as consulting and project
management. We also chose controversjaJ issues such
as energy and tech nology and tapies with a wider
economic perspective such as competition and
investment. The result, we feel, is a unique overview
of business today that gives students both an
opportunity to see key language in context and to
expand their business knowledge and horizons.
Language development
The exercises developed around the central theme of
each unit gve ample opportunities to review and
practise important grammar and vocabulary in both
spoken and written contexts. Furthermore, the career
skills syllabus develops the key communicative
language and strategies necessary to succeed in
today's work environment. Ali of these a re then put
to use in the end of unit problem-solving task.
The TnteUigen.t Business Upper Intermediate
Coursebook is accompanied by a separate Workbook
that provides comprehensive self-study ]anguage
practice along with a com plete Cambridge BEC
Hi gher practice exam. There is also the Tntelligent
Business Upper rntermediate Skills Book: a task-
driven intensive course that practises key language
from the lntelligent Business syllabus th rough
authentic business tasks. Al l of these components are
covered by a single Teacher's Book.
Both the Coursebook and the Skills Book can be
supplemented with the lntelligent Business Upper
lntermediate video: a drama illustrang the key
language and business skills common to both
Coursebook and Ski l.ls Book. In addition, there is the
www.intelligent-business.org website wh ich contains
further information on the course, downloadable
resources, teacher support and premiu m content
from the www.economist.com website.
Our intention when writing lnteLLi.gent Business was
to make a truly contemporary world of business
accessible to learners of business English - whatever
their level of world and business knowledge. We
hope you will find that it does so. lf it is botb
enjoyable and beneficial to users, we will have
completed our task.
We wish you every success in your future En.gLish-
speaking worhing lives!
Tonya Trappe
Graham Tullis
 Spring in their steps
Unit 1 PAGE 9

Review of tenses
PAGE 11
Alliances
www.longman-elt.com www.economist.com Dilemma: Breaking the ice
PAGE 14

Company bosses
on the J

prowl
Keynotes
Strategic alliances enable companies
to share resources. This creates
synergies or adva ntages and leads to
increased market share and greater
competitiveness. Pu blic companies
also hope to increase shareholder
value when they form alliances. There
are many kinds of corporate alliance.
Corporate partnerships are formed
when two or more companies decide to
co-operate on one pa rticular project ar
mission. When companies join together,
it is called a merger. When one
company makes a successful takeover
bid to buy another one, it is referred to
as an acquisition.
 Preview Mega mergers
Which of the following companies do you think have fonned strategic
alliances? Match the ones on the left with the ones on the right.

Disney Daimler Benz

Starbucks Miramax
Cllrysler Pepsico

D Listen to a consultant talking about the alliances and check your

answer to the above question.

O Listen again and answer the questions.

1 Wby did each ofthe pairs of companies want to forman alliance?
2 Whicb alliances succeeded, and why?
3 Which alliance fai led, and why?

Mergers and acquisitions

D Read the text on the opposite page and decide if the author is
generally optimistic or pessimistic about future strategic alliances.

O Read the text again. Are the fullowing statements true or false?
l In the .first paragraph, the author says that CEOs cam no longer find
targets for mergers and acquisitions.
2 Studying fa<;ts and figures from the recent past won't necessarily help
CEOs to form a successfu1 alliarrce.
3 The tr.~nd in the 1990s was for companies to build portfolios with
diverse investments.
4 The author suggests that media mergers are always likely to impmve
share value.
5 CEOs need above ali to find the right company to acquire.
6 If business planners wish to avoid sorne of the er.rors of the 1990s, they
shou ld be prudent when taking rislss.

11 Read the text again and answer the questions.

Why did CEOs reduce their involvement in mergers and acquisitions fer
a time?
2 Why shouJd CEOs ignore the statistics concerning the success rate of
acquisitions?
3 What should CEOs be aware ofwhen venturing into alliances?

Speaking Do you agree with the author wben he suggests that only one in
four acquisitions actually creating shareholder value is a good
success ratio?
.W hy do companies find it difficult to make mergers work?

8 Unit1

Mergers and acquisjtions
Spring in their steps
Some notes for company bosses out on the prowl
AITER a long hibernation, company
bosses are beginning to rediscover their
animal spirits. The $145 billion-worth of
global mergers and acqLsitions
announced last month was the highest
for any month in over three years. There
are now lots of chief executives thinking
about what target rhey might attack in
order to add growth and va lue to rheir
companies and glory to themselves.
Although they slowed down for a while
because of ihe dot-<:om boom, they are
once again on the prowl.
2
What should CEOs do to improve
their chances of success in the coming
rush to buy? First of all, they should not
worry too much about widely-quoted
statistics suggesting that as many as
three out of every four deals have failed
to create shareholder value for the
acquiring company. The figures are
heavily i.nfluenced by thc time period
chosen and in any case, one out of four
is not bad when compared with the
chances of getting a new business
started. So ihey shouJd keep looking for
good ta rgets.
l There wa!i a time when top executives
considered any type of business to be a
good targct But in the 1990s the idea of
lhe conglomerare, the holding company
with a diverse portfolio of businesses,
wen.t out of fashion as sorne of iis most
promi nem protagonists - CBS and
Hanson TIUS4 for example - fa ltered.
Companies had fuund by thcn that they
could add more value by concentrating
on thcir "core competence", although one
of the most succcssful companies of that
decade, General Electric, was little more
tban an old-style conglomerate with a
particularly fast-changing portfolio.
4
Brian Roberts, the man who built
Comcast into a giant cable company,
was always known far concentrating on
his core product - until his recent bid
fur Disney, thar is. lt is not yet clear
whether his bid is an opportunistic
attempt to acquire and break up an
undervalued firm, or whether he is
chasing the media industry's dream of
combining entertainment content with
distributioh, a strategy which has made
furtune.<; for a few but whch reg.ularly
proves the ruin of many big media
takeovers.
Jf vertical integration is Corneases
aun, then t will be impe.rativc for
Glossary
dot-com boom rapid growth of
internet-based business
protagonists most important people
involved in a particular situation
/alter weaken
spot identify
herd instinct natural inclination to
follow others rather than act alone
Mr Roberts to have a clear plan of how
to achieve that. For in the end, CEOs will
be judged less for sponing a good target
than for digesting it well, a much more
difficult task. The assumption will be
thar, if they are paying a lm of moncy
for a business, tbey know exactly what
they want to do with it.
6 If CEOs wish to avoid sorne of the
failures of the l990s, they should not
forget that they are subject to the eternal
tendency of business planners to be
over-confidcnt. lt is a near certainty rhat,
if asked, almost 99 per cent of them
would describe themselves as 'above
average'' at making mergers and
acquisitions work. Sad as it may be, that
can never be true.
7
They should also be aware that they
will be powerfuJJy influenced by the
herd instinct, the feeling that it is bettcr
to be wrong in large numbers tban to be
rght alone. In the comin~ months they
will have to watch carefully to be sure
that the competitive space into which
the predator in front of them is.so
joyfully leaping does not lie at the edge
of a cliff
Unit 1 9
 Vocabulary 1 Match the words (1-6) from the text with their meanings (a-f).
shareholder value (para 2)
2 conglomerate (para 3)
3 portfolio (para 3)
'i core competen ce (para 3)
5 bid (para 4)
6 vertical integration (para 5)
a a collection of companies
b an offer to buy
e m ost important activity
d controlling all stages of one
particular type of business
e organisation comprisi ng severa)
com p,mies
f what stocks in a public company
are worth

Vocabulary 2 Metaphors
The text contains several hunting and animal metaphors, e.g. on !he
prowl (looking for victims). Why do you think the author uses thas
kind of metaphor1
Find the metaphors in the text which mean:
period of sleeping through the winter (para 1)
2 instincts (para 1)
3 something to aim at (para 1)
4 one who hunts another (para 7)

Practice Complete the article about mergers with the following words from
the text on page 9.

fortunes chances growth ta rgets fai lure portfolios

sha reh olderva lue acqu ire

To merge or not to merge ...

Companies engage h acquisltions and mergers because that is one of the easest
1
ways to secure fast tarowth and diversify tt'leir investment 2 . As
Europe expands and nvestors ncrease, the idea of merging appeals to more and
more companies. Moreover, the sale of govemr:nent-owned buslnesses has meant
that large companies are entering the market, aiming to 3 potential
rivals but often at the same time becoming possible for other
companies on the prowl. However, with ali this merger activity the s of
success are still not good, and statistics show that many fail.
Yet every time two major companies announce a merger, euphoria sweeps the
stock markets as dealers and sharaholders- look forward to making huge
8
Many alliances are not financiatly SUCcessful,
however, and don't succeed ih lncreaslng 7 or
creatlng wealth for ali involved. Too ofterr, culture conflicts
and personality clashes are part of the reason why atliances
8
end in As Steven Barrett, head of M9'Qers
and Acqulsitlons at accountants KPMG said, 'When they
don't work, the two key management groops do not blend
well together.'

10 Unit1
 Language check Review of tenses
Study the examples taken from the text on page 9 and answer the
questions about tenses below.
a ... com.pany bosses are be.g inning to rediscover their animal spirirs. (paa 1)
b ... as many as three out of every four deals have faile.d. to create ... (para 2)
e Companies hadfound by ther~ that they couLd add ... (para 3)
e! ... a strategy which ... regula:rly proves the ruin of many ... (para 4)
e ... CEOs will be judged less for spotting a good target than for ... (para 5)

D Which exampJe:
refers to unspecified time ora period of time up to the present
2 is making a prediction
'\ refers to a situation changing in the present
4 refers to a repeated action in the present
5 gves the background information or an explanation for a past event

Whkh tense is used in each example?

11 Which of the following pairs of time markers are most

commonJy used with each Qf the tenses above?
by that time, by 2001 4 generaJly, these days
2 before long, in the coming weeks :> at the moment, right now
J recen tly, since the i990s

~ For m0tc= info.mat1on, see pag"' 157.

Practice Complete the article with the appropriate tense of the verbs in
brackets.

After ma ny weeks of at Citigroup before joining Bank

negot iation, William B Harrison,
CEO of JP Margan Chase, and
Jmie Dimon, of Blnk One,
(isgn) have 6iraned a deal. As
part of the de<1l, Jamie Dimon,
who (2 be) the CEO
at Ba nk One since he left
(itigroup, c~accept) - - - -
the position of Chief Operatlng
Officer for the next two years
after which he (4become)
the CEO. Mr
Harrison has alSo agreed, on
behalf of his sharehldrs, to
pay $7 billion to Dirnon for tbe privilge of ke.eping-
t he post ofCEO fertwo years.
The: situation only became clear after the deal was
rriade and signed: p untl t hen, Dirnon, the top mn
One, (>not want) to take
a back seat under the new deal and
only agted to a sfimple mer.ger of
equals on the condition that he
became CEO. Harrison, who (6make)
sorne di'sastrous
acquisitians over the years, wasn't
happy because he wanted to finish
his career on a high.
Shareholciers generally (7not get)
_ _ _ _ the chance to negotiate
in these sit:uations and now they
(8 become) increasingly
unhappy as a result. Although thls
partcular clash of egos (9cost) them
1
$7 billion, at leasl they know that they ( see)
_ _ _ _ a significant increase in the share price
as a result of the rnerger.

Unit i n
 Listening 2 E) D joan Woolley, CEO of Xsellnet, a management solutions provider
for mobile systems, is making a speech. listen to part one and order
the events in the company3s recent history.
a won the 'Technology Company of the Year' award
b was taken over by Wireless Ltd
e started trading independently
d took a d ifficult decision
"'went through a difficult financia! period
f borrowed money from a bank
experienced a difficu lt period of integration

El Listen again and answer the questions.

l Wh ich tense does she use when talking about 'the last few years'?
2 Which tense does she use when talking about 2002?
3 Which tense does she use when talking about the alliance?

11 Listen to part two, where Ms Woolley is answering a joumalist's

question about why the merger failed, and List the four reasons she
gives.
l
2
3
4

Which reason does she say contributed most to the faiJure of the
alliance?

Speaking Work in pairs. lmagne that you work for a smaJI family-run
business which has just been bought by a big multinationaJ.
Discuss:
- where the various potentiaJ corporate culture dashes might occur
- how you thinkyou personally would adapt to the new culture, and why
what could be done by both companies to ensure a smooth transition
from one corporate culture to another

Writing Write a short press release to announce that your company, Xsellnet,
has won the 'Technology Company of the Year' award. Use tbe
answers from Listening 2 above to give a short history of the
company. (See Style guide, page 30.)

12 Unit 1
 Career skills Building relationships

Building gpod relationships l~ad~ to successful business opportunities. Whether

neJworking with people-outside the company or stciking upa positive working
relationship with new colleagues, you will find the following ptrases useful.
Ho.w can l he.lp you? /Is .there .anything I can do?
b How intererting. / rd love to hear more.
I don't think we've met. I'm ...
:J I'm .. . 1 .Wotk for Digital France. We ofjer products ami servicesin ...
Wlen .can we set up a meeting? Here's my card.
D you like/enjoy ... ? / Whatr:lo you think of ... ?

0 Look at the tips for building relationships successfully. Can you

think of any more tips?
J Be articulate and positive about who you are and what you do.
2 Ask the right questions to find out what you have in common with others.
3 Be willing to share information and help others.
4 Show an interest in what others are saying.
5 Follow up interesting new contacts.

11 Which of phrases a-f above would you use for the tips (1-5)?
Speaking Work with a partner you don't know (well). Introduce yourself and
ask questions to find three points you have in common .

Listening 3 0 Listen to two people networkin g and answer the questions.

1 What lines of business are the speakers in?
2 What do the companies have in common?
3 How will they both benefit from the possible new business relationship?

Speaking Work in pairs. Read the extracts of dialogues below and say why the
people didn't manage to build a relationship. Change what speaker
B said in each case and continue the dialogue.
1 A Hi, l 'm Sandra Bogan. l work far Marketing Now magazine. We are
looking for successful companies to feature in our May issue.
B Unfottunately, we've been having a few finanda1 probJems recently, but
here's my card.
2 A rm sorry to ask, but as you've finished, could you help me?
B No, 1 want tb go home early.
3 A Hello, Pm Kevin Hart from Digital Solutions. I see from your badge that
we are in the same line of business. Are you enjoying the conference?
B Not really. 1 haven't made any usefuJ contacts so far.

Culture at work Working relationships

In many cultures, business people wiU do business only with people they trust
and have had timet get to know personally. ln other cultures, while it is
important to have a good working relationship, it is not essential to know
people on a personal leve!. What is common in your culture? How might this
difference cause m:isunderstanding i11 multicultural teams?

Unit 1 n
 Dilem -.-,...-
ec1s1on
Dilemma: Breaking the ice Decision:
Brief
When Unilever, one of the world's largest consumer products companies, Turn to page 145 to find out
made a bid to buy Ben & )erry's, the trendy ice cream maker, Ben and )erry what Ben and j erry, and Niall
turned down the offer. The companies were too different, they said. Social FitzGerald said about the
responsibility and creative management were the hallmarks of their proposed merger.
business philosophy. Unilever was a majar multinational with a
traditional corporate culture, whose main goal was to make a profit. This,
they felt, could never mix with their concept of 'linked prosperity', where
the community also profits from business success. The then CEO of
Uni lever, Niall FitzGerald, felt that if they could get together and talk, they CEO pro6Jc
would find common ground. They could then build on that personal
relationship and finally make a corporate alliance, which would benefit
everyone in spite of what appeared to be corporate culture d ifferences.

Task 1 Unilever was creared in 1930. lr is oow one

Work in groups. Read the profiles
and make a Jist of the sim ilarities
between the people involved and
their compan ies.
1 Task 2
Using your list, think of five
things Niall FitzGerald could say
to Ben and j erry in order to
break the ice. How do you think
Ben and Jerry would respond in
each case?
Task 3
Wbat concessions or
compromises do you thi nk Ben
and )erry would ask for? How do
you think Niall Fi tzGerald would
respond? Is it possible for two
companies with seemingly
different cu ltures to merge and
work together, if the CEOs have a
lot in common?
of the world's Iargesr consumer produces
CEO profile companies with sales in excess of S50
bil)ion, and operares in 88 countries around
Jerry Greenfield and "Ben Cohen were
rhe globe.
bom in Brooklyn, New York, in 1951.
They met in junior high school and Jerry Nial! FitzGerald, the CEO untiJ 2004 was
remernbers that he and Ben were two of boro in 1945 in lreland. He was a cruld of
rbe '60s, 'witb hair down my back drawn ro
the wildest srudents in their school.
tbe hippy culture of make Jove n~t war,' he
Tuey founded their ice cream coi:ip~y
rem~bers. At Un.iversity College Dublin,
. . 1978 in a renovated gas srauon in
he Joined the Communisc Party. 'I'm a
;urlington, Verrnont> with a . S 12,000
practica! left-winger,' he says. 'I was raughr
invesunent (S4,000 of wh1ch was
rhat ro change tbe world, you must get ro tbe
borrowed). . rop and do ir from with.in.'
Ben and Jerry bave been recogms.ed for
~s. head of Unilever South Africa, he
fostering their company's comm1~ent ms1sted, against opposirion, on
to social respoosibilicy by thc Council on
unsegregated facilities. Nor only aware of
Economic Priorities, ns they donare 7 .5 rhe d~are on corporate social responsibilicy
er cent of their pre-tax profits to non- bue sincerely engaged in it as well he was
Pprof rgarusaoons
. lhrough the Ben &
0 ~d Unilever's funding of hos~itals in
Jerry's Foundaon. Vietnam and schools in Ghana and many
Ben and Jerry are active members. of the orher pans of the developiog workl
Social Venrore Necwork and Busmesses
for Social Responsibilicy. The~ also serve
00 the board of Oxfam Amenca.

Write it up
Write a memo from Niall
FitzGera ld to the staff of Unilever
informing them of the decision,
and why it was taken. (See Style
gui.de, page 24.)

14 Unit 1
Up, up and away
PAGE 17

Articles
PAGE 20

Dilemma: Test crisis

PAGE 22
 Preview Project planning
Projects follow a life cycle which has four phases:

initiate ... ptan ... ~eute/contrnl ... close

Which of the following tasks would be included in each of the

phases above?
1 review the results
2 evaluate the risk factor
3 forecast costs
4 select the project team
5 deliver the project
6 launch a pilot project
7 obtain status reports
8 validate the project
9 allocate resources
10 prepare a project overview

listening 1 0 Listen to Helen jenssen of MacroPlan talking about project

management and answer the questions.
Which of the phases does she consider the most important?
2 What tw questions should project managers ask themselves at the start?
3 Identify the tasks above that she mentions.

Speaking Look at sorne exa.mples of past and current projects. Choose one of
the projects and make a Hst of the principal difficulties you think
might be involved. Discuss the project with another student.
Past projects
- The Burt Rutan X2 spacecraft {first private sector
spacecraft - 2004)
- The Norman Foster Millau viaduct (completed 2004')
- Airbus A 380 (test flight -April 2005)
Current projects
- Space mission to Mars (Aurora) (plannecl for 2026)
- Water-fuelled hydrogen car
(Earth 2012) (planned for 2020)
- Electronc navigation ad for
the blind (Noppa project) (under development)
- Indian Kalpasar Ptoject
(world's longest dam 64km) (planning stage)
- Toyota humanoid robot
(human partner robot) (prototype built)

Reading Managing a project

D Read the text oh the opposite page and answer the question.
How has th.e TS agreement facilitate.d the management of the TS project?

16 Unit 2

Managing a project
Up, up and away
Tony Douglas is redefining how to run massive construction projects
1 Tbuilding
the west of London is a vast
site. In the midst of a
landscape of mud and men rises a vast
glass-fronted box that will soon be
Britain's largest free-standing building.
This is Heathrow airport's fifth terminal,
destined to cater for 30m passengers a
year. 11 will include not just a terminal
but also new road and rail Links, and
connections to lhe London Transport
network.
1 Big const ruction projects are always
tricky, but airports bring special prob-
lems: lricky building techniques, and the
need to interface with other transport
links and to install sophisticated elec-
tronics ro handle passengers and bag-
gage.
3 The man in charge of this logist:ical
nightmare, Tony Douglas, carne to
British Airports Authority va stints in
the car and the commercial jet indus-
tries, and at Kenwood, a domestic appli-
ance firm. For three yearS, he ran BAA's
(British Airports Authority) supply chain.
He took over as project manager for TS
(as thc project is known) after the last
boss left suddenly. The risks attached 10
this huge project are so great that BAA
has been forced to tackle it in novel
ways. lf this giant endeavour is no! com-
pleted on time and on budgel, it could
take the whole company down.
First, BAA is unusual in running the
project itself. Mr Douglas insists that
outsourcing to a big project manage-
ment group such as Bechtel would cost
more, not less. Second, as much as pos-
sible of the construction is taking place
off-site. This reflects the site's physical
constraints: it has only one entry point,
through which a 12-metre load must
move every 30 seconds fo r a period of
four years. And the site has capacity for
no more than two days of storage. The
sol ution. he says. has been sorne "car
industry Iogistics" - a large investmenl
in computing and training that no indi-
viduaJ supplier would have made.
5 But the biggest novelty is the T5
Agreement. This is a contract with the
project's main suppliers, companies and
subcontractors like Balfour Beatty and
Bombardier, which aims to minimise
1he conflicts and cost-cutting that usual-
ly plague big building works.
6 Usually, contractors hold a beauty
parade and take on the suppliers who
bid lowest. The suppliers rely on glitches
and delays to bump up the cost. Every
time something goes wrong, legal hag-
gling breaks out among suppliers and
between them and the contractor, and
work shuts down for weeks on end.
With construction behind schedule, time
runs short for tbe final installation and
Glossary
stint period of work
plague (v) cause continual trouble
bump up suddenly increase
something
corner-cutting doing things badly
or cheaply
spin-off business new company
that emerges from a larger
enterprise
resting of the electronic systems..
7
Under the TS Agreement, BM carries
the risk, putting a precautionary sum
into a fund that will be shared out
among ali its suppliers if the project lin-
ishes on time and budget. The effect,
says Mr Douglas. has been to change the
wholc pace and culture of the project,
allowing teams of employees from dif-
ferent suppliers 10 work together.
s A5 one example, he cites tbe elegant
steel air traffic comrol tower. When the
fust two sections were engineered, they
were out by 9mm. "Normally," says Mr
Douglas, "the manufacturers would have
blamed the structural engineers, who
would have blamed the steel fabricator."
Ar rst, they did just that. Then Mr
Douglas said, "Guys, this is my prob-
lem," and sent them off to find a collec-
tive solution.
New departures
9
Passing risk to suppliers chosen by
beauty parade increases the risk of cor-
ner-cutting. And, as TS's suppliers are
partners who will work on future proj-
ects, they have an incentive to do a good
job. lf something goes wrong later, there
rnay be a debate about negligence, but
not about which supplier is to blarne.
10 If T5 works so well, why isn't BM
building airports elsewhere? A biggcr
priority. at least for now, is to get per-
mission to build an additional runway
at Stansted, London's thiTd airport. But
ultimately, success wiU surely poim to a
spin-off business that can build other
big projects safely and cheaply
Unit 2 17
 Read the text again and find the infonnation to complete the
following lists {1-4).
1 The principal problems related to building airports
~~~~~~~~~~~~~~~~~~~~~~~~

b ~~~~~~~~~~~~~~~~~~~~~~~~
~ ~~~~~~~~~~~~~~~~~~~~~~~~

2 BAA's options for managing the project

1 ~~~~~~~~~~~~~~~~~~~~~~~~

b ~~~~~~~~~~~~~~~~~~~~~~~~
The specific constraints imposed by the nature of the site
~ ~~~~~~~~~~~~~~~~~~~~~~~~

b ~~~~~~~~~~~~~~~~~~~~~~~~
1 The major risks usual ly involved in managing a project like TS (para 6)

Speakin!', What are the advantages and disadvantages of the T5 Agreement?

Do you think the TS project will be successful?

Look at sorne of the headlines of news reports about the TS

project and put them in chronological order. What do you think the
reports were about?
b
BAA pubJishes tenders fi
a T5 PROTESTERS OCCUPY CRANE 1
ted or Ts
Tunnel comP e
Planning enquirr on schedule
e
clears T5 ror ralle on d
Vacan clinches TS contract
e

Vocabulary Read the sentences a nd find synonyms in the text on page 17 for
the underlined phrases.
The company will be in serious difficulties if they don't complete the
project within the time schedule and cost estimates. (para 3)
on time and on lzud,~et
2 BM decided against giving the project toan outside supplier. (para 4)

3 Contractors generally award contratts to the companies that make the

least expensive proposals. {para 6)

1 Suppliers who are partners have the morivation to proyide quality work.
{para 9)

5 Getting permission to build an additional runway is a much more

important consideration. (para 10)

18 Unit2
 Find the words and phrases in paragraphs 6 and 9 that are used
to refer to problems and match them with their meanings (1-8).
Para 6
minor errors
'" situations where something is late
_ disagreement over minor details
stops
5 late, overdue
6 expires, is not sufficient
Para 9
doesn't happen as planned
failure to ensure that work is done correctly

The verb teme is used several times in the text. Which

coJlocations with tahe have the following meanings?
assume control or responsibiLity (para 3)
.... make something fail (para 3)
occur (para 4)
i employ, hire (para 6)

Match definitions 1-4 with roles a-d.

businesses working under contract on the TS project
the company overseeing the project
' the company in itiating the project
4 organisations di rectly affected by the project

a project sponsor (BAA)

contractor {BAA)
outside stakeholders (e.g. London Transport)
a project partners (e.g. Bombardier)

Practice Complete the article with words from this Vocabulary section.

In 1992, Bechtel Corporation of America was appointed as the lead

1 aontractor for the construction of the riew Athens underground rail
system. The. aim was to have it ready for the Olympic_ Garne~, which
were to 2 in the city in 2004, but lhe complexity of the
project was so great that few people belleved it would be completed
1 . There was also concern that the costs would exceed
the lnitial 4 of $3.4 billion. Despite 5_ _ _ _
caused by the lime-consuming excavaton of the many
archaeologcal finds and py otcasional 6 wth
technical equipment, Bechtel ensured that construction
didn't get 1 . Once the project had been
completed, Attiko Metro SA, a newly formed prvate
company, s the management of the
new network, Which carries an estimated
400,000 passengers every day.

Unit 2 t9
 Language check Articles
D Complete rules 1-4 with definite or indefinite to show whether
they refer to the definite article the or the indefinite articles a/an.
1The article is used with nouns that refer to one unique th ing.
2 The artide is used before superlative adjectives.
3 The article is used before non-specific singular countable nouns.
~ The article is used when a noun has al ready been mentioned .

EJ Study the examples taken from the text on page 17. Which of the
rules 1-4 above are illustrated in each?
a It wiU indude not just a terminal ... (para 1)
b It wilL include ... connections to the Lonaon Transport network. (para 1)
e ... BAA is unusuaL in running the proj ect itself. (para 4)
d But the biggest novelty is the T5 Agreem.ent. (para 5)

IJ Study the text and find two examples to illustrate each of the
following rules about using no article.
most proper nouns and names
2 u ncountable nouns used in a general sense
3 general plural countable nouns
4 abstract nouns used in a general sense

~ For more informa ion, see page 15 7.

Practice Look at the cl;lart of the schedule for the AS 90 project and read the
project manager's comrnentary below. Complete the commentary with
a definite article, an indefinite article or no article (0).

The AS project management team have drawn up 1he following schedule for 1 the AS 90 project, wh1ch is due to
kck off at 2 beginning of January. 3 flrst phase of the project will be carrled out by Luke Marshall and
Gianni Visconti. They wlll be organislng 4 meeting with 5 whole team during the first week in January
to discuss the needs analysis questionnaire before it is sent out to 6 hotel managers in 7 United
Kingdorn, Belgiurn and 8 Nether1ands. By 9 mid-January, the software specifications and manpower
requirements wlll be submltted far ' approval by the project manager and 11 work wlll start on the
pilot programme at the end of February. In April, the 8 team will take over the implementation phase. This will require
12 extensive travet for the team members who will be providng trainlng far hotel staff al 13 serles of
one-day workshops, 7 May has been ftxed as 14 deadline for handlng over 15 complete project with
ali deliverables to our customer.

AS 90 project overview

20 Unit 2
 Career skills Setting goals

Qrie of the keysto managing Q project successfully is to setdear goals for

everyone who is involved Se? tMat they kn.ow exactly what they have to achieve and
by what time.. Look at so111e o,f the phrases th'9t can \Je u:sef~ whensettihg goals.
a What's the schedule for tfiis? e So. what exoct{y would be in volved?
b How much are you budgeting far ... ? f When do 1 hove to get this in by?
e Ithink we shold aim tp. .. g Is thatfeasible?
d What wllyou neeiJin the h Dos that sound recrsonable/doable?
wayofresourires?
L
listening 2 0 listen to two dialogues between a project manager and members
of her team. Does she respect the following advice?

Wheri you setgoalsyou shoiu ld always m9ke svrethat they are

~e.aHstc, precise and tmed.

B Listen again and make notes about the dialogue.s.. What is the
role of each person the project manager talks to? What goal is set
in each case?

IJ Which of phrases a-h above do the speakers use?

Speaking 0 Work in pairs. Take tums to play the roles of senior manager
and project leader. Set goaJs (time, resources and budget) together
for each of the projects below.
The senior manager has asked the project leadei: to:
l take responsibility for organising the transfer of the company's
headquarters to a new location
2 _prepare a one-week training course for senior executives
3 create a new company website
4 organise the company's annual sales conference

El Work in pairs. Brainstorm ideas for a project that you would

like to initiate. Draw up a brief outline and discuss your project
with another pair.
Writing Choose one of the projects in Spe.aking exercise 1 and write an
email to your team, sum.marising the goals that you agreed on with
your manager. (See Style guide, page 20.)

Culture at work Respecting deadlines

In some cultures, attitudes to time are different and it is not always
considered essentia1 to respect a deadline. What is the case in your culture?
Do people try to complete work on time or do they consider it normal for
deadlines to be extended.?

Unit 2 21
 Dilem - .....-.-
ec1s1on
Dilemma: Test crisis Decision:
Brief
lnfineon is an international semiconductor manufacturer which 0 Listen to Oliver Heller
manufactures semiconductor chips at ts five factores in Europe and at its explaining how the
plant in Asia. Each lnfineon plant traces incoming orders and then plans engineers and planners at
its production. Ali the chips are then tested internally at each si te before 1nfineon approached the
delivery. problem.
At the monthly production meeting at the plant in France, managers are
worried. lt looks as if they have identified a serious problem that could
impact on deliveries. Production levels will have to be increased during
the coming months to deal with an increase in orders, but that is not
where the problem lies. It is witb the testing equipment. The planning
and supply chain managers and quality controlJers can see quite clearly
that they will not have the capacity to test the increased production with
their existing machines. They have five months before the situation
becomes critica!. During that time they must find and implementan
effectve soluton.
An emergency meeting has been called to decide what action to take
and to set up a project group to deal wth the mplementaton. The four
managers who will be attending the meeting are each going to propose a
solution and they will then decide together on which solution should be
adopted. They will then set up a project team and fix the objectives.

Task 1
Work in groups of four. Student A turn to page 137. Student .B turn
to page 138. Student C turn to page 140. Student D turn to page 142.
Prepare the arguments that you will use in favour of your
soluton. Assume simi lar costings for each solution.

Task 2
Attend the meeting with your
colleagues. Take turns to present
your soluton. Then, as a group,
agree on the course of action
that you would choose and
appoint a project manager to
implement the solution.

Task 3
Present the solution to another group.
Did tbey choose the same solution ?

Write it up
Write the minutes of your meeting to
circulate to senior management.
(See Sty1e g1A.ide page 26.)

22 Unit 2
Think before you meet
PAGE 25

Modal forms
PAGE 28

Dilemma: Leading the team

PAGE 30
 Prev;ew Team meetings
aas reasons
1.ook at the list of teamworking tasks (a-j) which are often given
for holding meetings and answer the questions.
1 Wh ich tasks are not good reasons to hold a meeting?
2 Wh k b tasks could be easily completed by email, memo or telephon e?
3 Wh ich tasks are best achieved in a meeting?

Meetirigs are held fo ...

a explain new projects f share infonnation
b establisb common goaJs g announce minor decisions
e make team decisjons h co-ordinte team activities
d aUow members to socialise get weekly progr ess updates
e ere.a te policies j solve problems

O Altem ative types of meeting <;an save time andreduce tbe

number of peopJe present. Read the descriptions and decide which
one is best for situations a-d below.

Tlle caf meeting

lf StiSiif\S. In th@ m~etipg r09171 tencl to last too lon.g, brainstorming n particular ecm fake place
elsewhere, fOr exarnp1e over c,offe~ or a snack, to provlde a relaxed and creativa ati:ilospher,e.
The stand-up meeting
Evef'fone in the team stands' in a clrcleand _gives updates-on worl<, conveys SQIUtions. to
problems al)d ask.s tor help if neQeSSar;i. Beeause people areoStanding up, t11ey a(e more
concisa and to:the polnt.
The egg-tlmer meeting
Wheh lts p,refeFapje to have people sittlng comrortably. as the may ne,ed te eter to ~otes
etc., use an 'SQQ-tliner to make sure.nobo.dy speaks for too h~n9. PrtioipantS'ieQnduct Jlle
meeting in a pracise a:nd time-efficienl manner.
The walkJng meeting
This is when two or thr*mem~rs of the team take,a:10-15 minute we1lk eutside the office
complex to dseuss eonfidential marte rs-in an informal confext.

a You want an alternative to the lengthy Monday morning meeting, in

which team mernbe.rs report baek on tbe previQus week's work.
b You need to talk to three project leaders so that they come up with ideas
about how to get their teams on board a new project.
e Y0u are con.cerned about the quality 0f one of the team's work. You wish to
get the opinion of two of the other project managers.
d You want precise feedback from aU the team managers on current projects.

Speaking Whicb type of meeting do/woulq you prefer? Are there other
situations they could be suitable for?

Reading Meeting techniques

0 Read tbe text on tbe opposite page and say why the author
thlnks m eetings can be a waste of time.
24 Un it 3

Meeting techniques
Think before you meet
Too many m eetings are a waste of rime
1
WHAT do corporate leaders do ali
day? Much of their time is spent in
meetings. No wonder: the rules of team-
working are established in meetings,
which in turn are the basic building
blocks of corporate existence. However,
rnee1ings might not always be the best
use of the team's time.
z Mcctings, like teams, do not neces-
sarily achieve what they set out to do.
One recent study in America by con-
sultants Synectics found that senior and
middle managers spent more than
tbree-quarters of their time in meetings.
On average, only 12 per cent of man-
agers though1 their meetings were pro-
ductive. In high-performing companies,
that figure rose to 25 per cent and in
the .lower performers it dropped to 2
per cent.
1
"Despite IT, we alJ go to more and
more of thcm," reflects Jonathan Day of
McKinsey. But there must be a way to
make them work. They can't ali be a
waste of time. Perhaps team leaders
should do everything they can to make
sure they organise them properly.
lndeed, running meetings well is clear-
ly an art, and a growing number of
companies (including Synectics, which
modestly claims to run the best meet-
ings in the world ) are offering help.
Lots of meetings, of course, happen in
the corridor or around the coffee
machine, and those are probably the
rnost efficient sort, because they tend to
be spontaneous, small and q uick. Blgger
ones are usually more problematic, and
team members have to put up with
meetings where too little thought goes
into the agenda, the location, the peo-
ple asked to attend and the outcome,
say those who try to improve t:hem.
That allows unimportant ideas or
tedious individuals to hog the floor,
with the result that a lot of team mem-
bers find it hard to look f0tward to the
next meeting.
~ Meetings tend to be held eitber to
share information ar to solve problems.
For the first sort, Roger Neill of
Synectics advocates asking ali the par-
ticipants to say at the end what they
think they have heard, and correcting
their accounts if they are wrong. With
problem-solving, the aim ought not to
be just brainstorming and coming up
with ideas but a lso paying proper
Glossary
tedious boring
hog the floor dominate the
discussion
scepticism doubting the trut h of
what other peo ple say
mould form
attention to puuing solutions into prac-
tice. He also thinks it is wise to ask peo-
ple what they liked about the things
they heard; criticism usually comes
unasked. Pessimism, scepticism and
challenge ali cause trouble.
5
What makes meerings especia lly
importan! to companies, though, is that
this is where teams are moulded That
is why companies must learn how to
run 1hem. David Bradford, a professor
at Stanford Business School, who spe-
cialises in srudying teams, argues that
meetings often waste huge ammmts of
time: in one business, the executive
team sp ent three meetings designing
busin ess cards. Of course, one person
shouJd have done this before the team
started working together. The way to get
a good decision is to fra me the ques-
tion carefully. lf you want to invest in
Ch ina, do no! announce that you are
planning to do this, or ask the meeting
wbether you should. Instead, enlist your
colleagues' help by saying: "We want to
be in the Chinese market: how do we
get there?"
Unit 3 25
 O Read the text again and answer the questions.
1 Why are corridor and coffee machine meetings often efficient?
2 What are the two maj n reasons for holding meetings?
3 What kind of feedback do people give easily?
4 Why do companies consider meetings to be very important?
5 What happens w hen meetings are not properly organised?

Speaking Teams can be moulded in meetings. Sorne companies organise other

team-moulding activities like paintballing, away days and bungee
jumping. How do you feel about these activities? What other
activities can help to build a team? Which ones would you
personally like / not like?

Vocabulary D Use the following words to form collocations beginning with

team.. Put them into three groups: People, 1hings to do, Concepts.

project morale leader spirit player task goal member building

O Find the multi-part verbs- in paragraphs 3 and 4 of the text on

page 25 which mean the following.
1 tolerate
2 be excited about
3 think of

Practice Complete the article below with the appropriate form of words
from this Vocabulary section, and the foUowing words taken from
the text on page 25.
brainstorming attend agenda participants

When three peo ple from our department left to jo in another company, 1 team mora/e was very low. We
knew we had to recruit new 2 and that a long integration process would slow our work down
considerably. We were worried that the positive atmosphere and 3 that had taken us a while
to build would be affected by this setback. It was decided to have a meeting, and the fust tem on the
4 5
was a(n) session to 6 ideas on the best way of organising a{n)
7
activity that would h elp the new recruits to fit into the structure as quickly as possible. Ali
8
the at the meeting put their ideas forward and finally we agreed that we shouJd all
9
a day's training scssion organised by a specialist consultant. The day will be spent
socialising and completing simple 10 set by the consultant. We hope to have the new team
operating as efficiently as ever in the next couple of weeks.

Writing You are the managing director of a company that organises

paintballing activities. Fax an answer to an inquiry about your
product, prices, terms and schedules. (See St!:JI.e guide, page 22.)

26 Un it 3
 Reading Team roles
0 Read the article below about team roles. Which role (1- 5) is being
referred to in each of the following statements?
a They make s_ure everyonehas the chance to give their input in meetings.
b They are focused mainly on task not process.
e They are focused mainly on p.rocess not task.
d They can describe w)Jat was said during meetings.
e They can play any role on the team.
f They telJ the facilitator if the meeting is going on for too long.
g They discuss progress witb people outside the team.

Team leader Team recorder

Team roles are lt\g t~am lea~ey may or 1mw nor be part f the
man~gerial staff. lt is nis/her job fo provicle an
specific and environment that helps teams to get thelr wort
done.ihe leader orgc;injSj!s. loGaf>ns-ahq times for
inted pendent mee:tin9s anti is responsibJe for praviding
lesour"es reqblired py tbeteam to carry out the1r
tasf(s. lt S the Job ofthe leader to remind the
t~A'l what resultthe or,g~misation expects of them
and h.ow ~heir tasks fit in wth the overall geals
and m~ion of the oompany.. He/She wrks c1os~ly
with the facilltatcr ir planiing the agenda of
mee1ing, ,serting outcomes and .ens~rlng Aext
!iteps are asslgned. as well 9s cernrnunii:ating on
the tani's prog1'SS with O'ther IT)embers of the
organisatlon.
Team facjlitator
The ~arn facilitator helps develop an-o apply th e
proc11'Clure for teamwork. He/She establishes th~
grouni:l rules and tlien makes sure thatthey are
respecteCJ. lf, far exarriple, it Is ag{ed at th~ olltset
1hfu all mernb~s shoula gve their input, I~ is the>
role ofthe fadlltat.or to make sure de<;ision-
maki!'lg l'S liottkirninated by strong personalities
ftil the ream. f!i..s,the role of the fadlltator in
deci-sionrnaktng is oeutrl, it 1s a: good idea to
rotate ffom team memoer to team member.
The :team (eco.rder is responslbl~ for writin9 down
k~ :)'OifrtS, ideas and decisions a1 meetings.
Recerclers nead to prepare for meetlngs by
reviewing the agenda cafefu I~, Reeording Ideas 1s
particularly irnportant, and the record~d ~
should be as dose to the act\Jel Wol"Gs used as
posslble. The reordef's n01es are ver; diffe;:eFlt
frornme m1rrutes of a meetiog, which are a
sumrnarY ot whai was said at a meeting.
Tmekeepet
The timek1?epers Job Is to monltor how long the
team is taking to ac:cc:nnpfish its 1:asks and prov1de
regular (.Jpdates to fe team on how well or
poorfy they are using their time. He/She also
col)abortes wlth the team leader and lac1Htator
and other tearn mem1!lers to dewrnlf1e new time
schel:lules if these ate neessaf'Y'.
Team members
All team members muit be enthusiasf: alld
commtted tu thMearn's p_urpose.1he.y shollrd be
willin to share responsipilf'\Y and to tcept
alfferent roless:.ch as Tacilitator or le.ader. lhey
rnust ~re knowledg~ antJ ei<~ertise and neve1
keep information to the(TlSelves. lhey should
respect the ,opinions and positlons f otbers in fue
team.

Read the article again. Whose role (l- 5 a bove) is it to do tbe

following?
a review the agenda
o remain neutral
e pro\l'ide resources
d provide updates
e write down key points
f establi sh ground rules

Speaking Work in groups of four. Discuss roles 1-4 above and decide which of
them would be most sui~ble for each person in your group. (Try to
agree on one role per person.)

Unit 3 27
 Language check Modal forms
D Study examples a-f taken from the text on page 25. Match 1-6
with a-f.
l obligation about a present situation 4 advice about a past situation
2 advice about a present situa tion 5 positive deduction
3 a possibility 6 negative deduction

a However, meetings might not aJways be the best use of the team'.s time.
(para 1)
b But there must be a way to make them work. (para 3)
e They can't aU be a waste of time. (para 3)
d ... team leaders should do everything they can to mal~e sure they
organise them. properly. (para 3)
e That is why cornpanies must leam. how to run them. (para 5)
f Of course, one person should ha.ve done this befare the team started
working together. (para 5)
~ For more informat1on, see page 158.

El Read the sentences about a team leader. Use the words in

brackets and might / might not be or must / can't be to make more
sentences about her.
She has worked fro m 7:00arn to 9:00prn. (ti red) She must be very tired.
2 She hasn't achieved very rnuch. (an efficient worker)
3 The rnembers of her tearn haven't been helpful. (pleased with them)
4 They haven't respected the deadlines. (satisfied with their work)
5 Her boss wants to speak to her tomorrow. (worried about this)

Past modals
11 Study examples d and f above and notice how modals are used to
refer to the present and past. What are the past forms of the following?
must be can't work rnight know
~ For more rnformadon, see page 158.

IJ Make deductions about the following past situations.

1 He was busy when he set the deadline. (time to plan things properly)
He can't have had time to plan thln~s properly.
2 The team didn't meet the deadline. (not enough time)
3 The instructions weren't clear. (the team/confused)
4 The team had to work overtime every day last week. (not happy)
5 Ali the other teams were waiting for the results of our work.
(they/frustrated)

Speaking Work in pairs. Discuss past situations where you made mistakes or
could have done something better. Say what you should have done
but didn't

28 Unit 3
 Career skills Team building

Team building involves individual members being positive and putting the team's
interests ahead of their own. Lo.ok at the fo llowing usful sentences.
a We're definitely moving in the right dfrection.
b Go on, l 'm listening.
e That's a great idea.
d Let's lookat ways ofgetting round this problem.
e I'm confidentyo.u'll get it dne on time.
f Tell me more.

Good team members generally have qualities 1- 3 befow. Match the

qualities with sentences a- f above.
1 They are active listeners.
2 They praise and encourage other team members' work.
3 They bave an optimistic and positive attitude.

listening 0 Listen to two members of a team in a meeting. ldentify five m ore

sentences to add to the list (a-f) above and indicate which qualities
they c orrespond to.

Speaking Team players

0 Work in groups. Discuss what you, as a positive team player,
would say in each of the following situations. How do you think
negative team members would respond?

D Role-play the situations.

EJ You have been assigned t he task of collating the team's work and putting
forward the best proposals the}"ve come up wt h. Two solutions appear to be
pote~tlally good. One ~as suggested by you and would be a quck and easy
solutlon. The other, a httle more complicated, was suggested by a team
meniber wh had V.ery negative feedback on her last project and whose morale
needs boostlng. Present t he best proposals.

Culture at work Exchanging information

Sorne cultures find teamworking easier tba n others. In individualistic cultures,
'information is power' and people prefer to retain it in arder to advance their
persona l careers. Ln collectivist cultures, the greater good of the company is the
rnain concem of a!J employees. Wh ich is closest to your culture? How might a
difference in attitude cause conflict in multiculturl teains?

Unit 3 29
 Dilem
ec1s1on
Dilemma: Leading the team Decision:
Brief
Peter Drumand is the team leader of a group who were briefed to come 0 Listen to a business
up with ways of improving customer communications at Walton's consultant saying what he
department store. After three weeks of information gathering and thinks Peter Drumand should
meetings the team made the following recommendations: have done.
extend telephone coverage by one hour per week, to answer more
enquiries
update webpage at least once a week
research further the idea of holding store meetings to answer
customer questions dfrectly
Peter feeJs sure that these are good ideas but fears the management will
not approve them because they are costly. He cannot decide whether to
present the ideas to management or not.

lla;l
Work in pairs. Discuss the following arguments. Which
ones do you agree/disagree with?
Peter should not present the team's recommendations
to the board as final A team leader should never Jet
his/her team make an obviously bad decision. He
should protect the team and the department's
reputation by asking far more time.
If cost was a concern, the team ought to have been told
at the beginning. It is Peter's responsibility to admit
that he is at fault for not briefing the team properly,
and he should ask for a new deadline so they can find
other, less expensive proposals.
On the basis of shared information, the team :.'
developed reasonable, specific recommendations for
improving customer communications. Peter shouJd
-. ~.:::~.

present these recommendations and suggest developing

a budget for them.

Task 2
Decide what you think Peter should do.

Task 3
Discuss the conclusions you have reached with another pair. Work
together as a team to make a joint decision about what Peter
should do and say. How do you think management will react?

Write it up
Write a memo from Peter to the management explaining what
he has decided to do, and why. (See StyLe guide, page 24.)

30 Unit 3
Language check Modal forms
Revew of tenses Choose the correct forms of the words in
italics.
Complete the sentences with the appropriate
form of the verbs in brackets. Ali meetings can't be/ mustn't be a waste of
time, surely!
The team regularly (meet) to
7 You really shouLd have completed / must have
discuss progress.
co1npleted the planning phase before you
We got the figures late and by that time we sta rted executing the project.
(already go) over budget!
We still might come / tnust corne in under
-1 They (have) the resuJts of the budget, but it looks unlikely.
research in the next few weeks.
4 There must have been / should ha.ve been
A Right now we (work) on the sorne rnistake; those are not the p lans.
p lanning phase of the project.
.5 He might ha.ve been / must have been there
We (look) for a strategic partner but there were so many people that 1 can't say
for months, but wejust can't find one. for sure.
~ The team generally (respect) _ _ __
deadlines. t l 1 L on
'\rL t lt
Choose the correct forms of the words in
italics in the team-building course
Complete the article with either a definite or description. (sis = no article)
indefinite article or no article at ali (~).

Building a successfol team

One of 1 most common arguments for
mergers and acquisitions is the belief that
2 'synergies' exist. Unfortunately,
research shows that 3 predicted
efficiency gains often fail to materialise following
4 merger. 'Horizontal' mergers (between
companies operating at the same level of production
Your team 1must be / mig/11 be just 2fon11i11g /
fo rmed. or you may be 3wi// renew / re11ewi11g
your goals fer the coming year. Perhaps you
4
/tave lost / were lost sorne members rccently or
5Jiad recrnited / recruited new oncs. Tbis course
6is taking / will iake you rhrough the various

in the same industry) may also be motivated by
5 desire for greater market power. In
theory, authorities such as 6 Britain's
Competllion Commission should obstruct any merger
that could create a monopoly, as that would result in
an abuse of 7 power. However, sorne
experts have argued that mergers are unlikely to
create monopolies even in a absence of
regulatlons, since there is no evidence thal mergers
in the past have generally led to 9_ _ __
increase in the concentration of io_ _ _ _
market power.
stages of a team 's dcvelopmem.
Becoming an effective team member
The key to 7a / ,a team's success is 8t11e / an
e ffort that eacb team member makes. This course
9reaches / is teaching key poinrs for developing
10a / tfle team-orienced artitude, and by che end
you 11 mus/ have leamed / slto11ld '1a1e leam ed
how best to work with 121/ie / li1 colleagues and
other team members. Very quiokly. you
1\vi!l see / wi!I be seeing better team resulrs ao;
you develop 1 4the / ~ communication ski lls ami
as you fulfil your specific role and encourage
other team members to do 15 rfle / ~ same.

31
1 Vocabulary check Career skills
0 Choose the best options (A-C) to Building relationships
complete the text. Put the dialogue in the correct order.
O a We're interested in featuring your
Europe's bridge projects company in our )une issue.
In Greece, the RionAntirlon bridge opened four months ahead O a Helio, I don't think we've met before. rm
of 1 and, even more surprs1ngty, within its $930m Sarah Beckford from Mana.gement Issues
2 Vinci, a leadlng French 3 company, magazine.
frrned a strategic 4 with a local .5 to bu11d
the bridge. This successfuJ 6 managed to rneet the O a Thank you. Here's my caed.
strict 7 and be on time at every -B of the O b Why don't you contact me next week and
r:iroject. we can discuss it further?
Bridges ane Gften des1gned by englneers, but the Mlla1o1
ViadtJct project in France was designed by the British
O b Plieased to meet you. How can 1 help you?
architect Norman Foster. who worked in collaboration with a
team of engineers to 9 the team's cornmon
Setting goals
' of building the world's highest bridge. Find and correct the mistake in eacb
The next blg 11 may be the planned project to build sentence.
a bridge from Sicily to the ltalian mainland. lndustry
12 believe, however. that the project may not be I'd like you to take up responsibility for the
n : the experts and project sponsors are making ma rket resea rch.
H of 11,000 11ehicles a day - only 1,000 more than 2 How many is the budget on this one?
now go by ferry.
3 We should aim to must finisb on time.
1 A timetable B schedule e agenda 4 They gave to us a provisional budget.
2 A budget B fi gure e expenses 5 Tell me what you need in the way from
3 A creation B structure C construction
resou rces.
6 Does the deadline sound you reasonable?
4 A alliance B grouping C commitment
5 A con tractor B licensee C manufacturer Team building
6 A integration B conglomerate e partnership
Match the sentence halves (l~ with a-f).
7 A delays B rules e deadlines
8 A aspect B phase e factor We're definitely moving in the right direction,
9 A accomplish B succeed C make but
2 Go on, rm listening -
10 A idea Bgoal e proposal
11 A interest B subject e ch allenge 3 That's a great idea, and
12 A analysts Bjudges e referees 4 Let's look at ways of getting rou nd this
problem
13 A sufficient B feasible C enough
5 l'm confident you will get it done on time -
14 A forecasts B plans e figures 6 Tell me more
EJ Replace the words in italics witb the a it's better to say what you have on your mind.
appropriate fonn of a multi-part verb. b I think we should act on it straightaway.
1 Pressure is on the team to invent aew ways of e about the project; fm really interested.
working on each project. d you've never been late before.
2 The new project leader will not tolera.te e wejust need to move a bit faster.
lateness. f rather than just worrying about it.
3 The project will soon be beh ind sch edule if
we don't employ more workers.
t Tbe merger has been successful an d
shareholders can get exeited about higher
dividends this year.
5 As the team leader was away for a few days,
the facil itator assumed resporisibility fo-r the
organisation of the tasks.

32
 How about now?
l>AGE 35

Question forms
PAGE 37

Di lemma: Spying on staff

PAGt40

The real-time

Keynotes
Information is a key resource
for modern businesses, and
information management
has a direct impact on
efficiency and performance.
lnformation flows between
the different parts of a
business's information
system (people,
procedures, resources) in
the form of data, voice, text
and images. Information
technology, hardware and
software, allows this
information to be gathered,
processed, exchanged and stored.
Managers are thus able to analyse
developments in their business in real
time, i.e. instantaneously, in arder to
solve problems and exploit opportunities.
Information systems are connected to internal
and/or external networks (internet / intranets /
extranets) and must be secured against attack.
 Preview Information flows
Look at the graph and answer the questions.
60
The growt of global 1 formation
50

il
3
40
30
s .~ 20
! 10

L1
14SO
ptln~ng
1870 1947
electrf9lty, llllephone transistor
1950
~qmputing
1970
Internet

Why do you think the amount of information increased so sharply?

1993
theweb
200S

l Do you think it will continue to increase like this?

3 How has this changed the way that people live?

Speaking How many emails do you receive/answer every day? What are the
main ways that you communicate information?

Listening 1 e amanager,
Listen to an interview with Jennifer Barl<er, an infonnation
and focus on the interviewer's questions. Sorne of the
questions below are not exactly the same as the actual questions she is
asked. Replace these with the exact questions that the interviewer asks.
1 What is an Jntranet?
2 How many employees regularly connect to the intran et?
3 What are tbe most popular parts of the intra net?
4 How difficult is it to manage an intranet?
5 What are the main security issues for the intranet?
6 Who supplies the content for the intranet?
7 How has tbe intranet changed since it was introduced?

O Listen again and give the following infonnation.

1 the number of users
2 the four most popul.a r parts
3 two challenges for intranet managers
4 one thing that's impossible and one that's possible
5 the people who contribute content

Speaking Do you think intranets are a good idea, or do they just contribute
to excessive amounts of information? How do you deal with
excessive amounts of information? Do you think that having a lot
of information makes it easier for managers to do their jobs?

Reading Automating management

O Read the text on the opposite page and answer the questions.
1 What is Gary Reiner's position at GeneraJ Electric?
2 What is tbe principal objective of the company's p lan to improve its
information system?
3 What is a real-time enterprise?
4 What are the th ree main benefits of a real-time enterprise?
34 Unit 4

Automating management
How about now?
lnfonnation technology is speeding up business decision-making and
creating a real-time economy, says Ludwig SiegeJe
YOU can't accuse Gary Reiner of
being verbose. Ask General Electric's
chief information officer a question, and
you get an answer that is right to the
point. And he regularly checks whether
ls listeners are still following: "Are you
getting what you need?"
1
Anything else wou ld be a
disappointment. After. all, America's GE
is known for its obsessive quest for
perfection. And Mr Reiner heads the
company's most important initiative:
computerising, or "digitising", as much
of its business as possible. That not only
means buying and selling things .online
but, 1110,re importantly, setting up a
digital nervous information system
that eonnects everything involved in
the company's business: IT systems,
factories , employees, supp liers,
customers and products.
3 GE's aim is to monitor everything in
real time, Mr Reiner explains,. calling up
a special spreadsheet on nis PC: a
"digital dashboard" with green, yellow
and red colours that signa! the status of
programs that are critica! to GE's
A f:utope
dr h!1>fl 6.:00
CI M.~JC :;,10
o~ .no
o "4111f (;..00-
0 ~ 9&aod. 1 .lJO
::S PI .o;u, MCJ
business. If one of them stays. red or
even yellow for too long, Mr R:einer gets
the system to email the people in charge
via the network. He can also see when
he had to intervene the last time, or how
indjvidual applications - such as
programs to manage book-keeping or
orders - have performed.
~ As chief information officer, Mr
Reiner was the first in the film to get a
dashboard. Now aJI GE's senior
managers have them. The princip ie is
always the same: the dashboard
compares how certain measurements,
sucb as response times or sales or
margins, perfonn against goals, and
alerts managers (in real time) if they
need to take action.
5 GE, which estimates that its
digitisation efforts saved it $1.6 bi Ilion in
just one year, has a long history of
innovative business management. ln
years to come, experts predict, many
companies will use information
re.chnology to become a "real-time
enterprise" - an organisation that is
able to react instantaneously to changes
Glossary
verbose using more words than
necessary
quest search
shoot in the dark guess
spell the death of announce the
end of something
in its business. And as firms wire up and
connect to form networks witb their
business partners, they make the entire
economy more and more real time,
creating not so much a " new" bul a
"now" economy.
lru.'tant gratification
G But the real-time enterprise is not
simply about speeding up information
l:low. It is also about being able to
monitor a business continuously and
react when conditions change. Today,
businesses "are mostly shooting in the
dark", says Michael Maoz, of Gartner, an
IT consultancy. Real-time technology, he
predicts, will give Ams a window into
their business they never had before.
7
Mr Moz als.o emphasises tbe third
main ben~efit of a real-time enterprise:
using newly avai lable information to
offer new products and services. New
hardware, such as wireless sensors,
makes it possible to gather ever more
information and enter it into a
company's computer systems. By
themselves, these data would just
contribute to the increasing infurmation
overload. But they also present a new
business opportunity: to develop
software that analyses them and suggests
ways of optimising tbe supply chain, or
even automates the response to certain
kinds of new information.
8 How mucb \<Vil! ali this change the
company and the economy as we know
it? IT will probably not spell the death of
big firms. But real-time technology will
have an impact on ilie workings of
companies. lt is also likely to make
economies more fluid, and perhaps
more volatile. The financia! mail<ets
have already shown that putting even
parts of the economy on autopilot can
lead to accidents. The stock market crash
of 1987 was caused in large part by
automated program trading. Perhaps,
one day, the " now economy'' will have
to have drcuit breakers installed
Unit 4 3s
 O Read the text again. Three of the following questions cannot be
answered using information from the text Identify those questions
and answer the other five.
Wht reputation has GE acquired as a company?
2 How many people work in Gary Reiner's departrrient?
3 Which groups of people are connetd through GE's information network?
4 Why are sorne managers reluctant to use the new system?
s How does the digital dashboard help managers to make decisions?
6 When will the d igitisation of GE be completed?
7 What .are the two main benefits that Mr Maoz foresees for real-time
enterprises?
8 What was one of the causes of the stock market cra.sh of 19~7?

Speakjng D Do you think that developments like those at GE will make the
lives of managers easier or more stressful?

O How will the businesses of the future be affected by the

development of m -what do you think are sorne of the risks if
business becomes more and more computerised?

Vocabulary Read the sentences and find synonyms in the text for the underlined
words and phrases.
The new system will a link together b all the cmponerit parts of the
company's business. (para 2)
2 Gary Reiner uses a colour-coding system to check the a condition of key
b software applications. He can then use the e interconnected computers
to alert managers. (para 3)
3 Using their a monitoring software, managers have acce:ss to certain
b indicators of performance and can see how they e match the d objectives
that have been fixed. (para 4)
4 The firm a calculates that b adopting automated computer $)1Stems helped
to <: reduce spending_Qy more than one billioi1 dollars. (para 5)
5 The new ntworked cornpanies will be able to a accelerate the
b moveinent of data and gain greater understanding of their opera:tions.
(para 6)
6 New a dectronic devices will enable companies to b collect additional
e data. (para 7)

Practice Complete the article with words from this Vocabulary section.

General Eleomewas one of the first companies to champion '$i)C compu.ter 5' . This is th~n matched w~h the 0perational
Sigma', a r,ev:ohrtfonary approach tg quality rnanagement that was resultS tttat are actually obtained, which allows managers to see how
pioneered by Motorola. S.lx Sigma uses statlstlcs fo .produce exact an operation 6 its original obJeetfve.s. Six: Sigma not only
1 7
mea5urement:; of key busTness indioators in order to. the whole process of quality management1 lt aJso
calculate the;, efficie.ncy of business operations. Te do this, allows businesses to make contihuous improvements and
2
;about specific :r tliat the cmpany a large.qrn,ounts Qf money.
wishes 10 achieve is f'st 4 and tRen entered into a

36 Unit 4
 Language check Question forms
Read about the three main types of questions and study the examples
from the text on page 35.
Op"r aucstions are used when we want to ask someone to provide speci fic
in formation about something.
How much will aH this change the compan!j and the economy as we know
it? (para 8)
How do the verb forms in the followi ng ques tions differ? Why is this?
Who did you contact abou t the new software?
Who contacted you a.bou t the new sof tware?
C.lo~' q J"stio l!> wh ich can always be a nswered by either Yes or No, are
used when we want to obtain confi rmation or clarification about something.
Are you getting wha.t you need ? (para 1)
Tag ouc-;t1ons are in two parts. If the main verb is in the affirmative, the tag
question is usual ly in the negative, and vice versa, for exa mple:
You don't hnow what caused the systern to crash, do you?
~ for more mtormanon, see page 158.

Practice Complete the questionnaire for executives returning from overseas

assignments with the appropriate open or clQsed question words and
verb fonns.

What was the agreed duration of your assignment? 2 1 4 1 6 months

- - - - you terminate your assignment befare the agreed date? YI N
Tf your answer to the above question is 'yes', please answer question 2.1.
l - - - -- reasons you termi nate befare the agreed date? (please speci.fY)
3 you satisfied with the remuneration package that you received? YI N
4 you be prepared to accept a similar ass ignment elsewhere if offered one? YIN
5 you received career counselling since your return? YIN
6 briefed you about your assignment?
7 the members of your family take advantage of cultural training befare departure? YIN
f In your view, qualities a manager possess in order to succeed on an
overseas assignment? (please specifi3)
(
- - -- - the management of overseas assignments be improved? (pLease specify)
10 - -- - - you report to in the host country?
11 - - - - you agree that your career has been enhanced by this experience? YIN
12 - - - - - you found it difficult to readjust to working back at the parent company? YI N

Writing You are a member of the Human Resources department. Write a

letter to accompany the questionnaire that is sent out to executives.
Explain the reasons for the suxvey and give details of when to retum
tbe completed questionnaires. (See S~le guide, page 16.)

Un it4 37
 Practice Complete the tag questions. Tbere is more than one possible answer.
1 Last week's meeting (be) very productive, it?
2 You (be able) to help me with these calculations,
_ _ __ _ you?
3 You (suggest) that we didn't give you a1J the information
youneeded, ybu?
4 But that (mean) that the project won't be successful in the
long term, it?
5 T'd !ove to have a copy of that chart you showed us. You (give) _ _ _ __
me one, you?

Listening 2 8 Practise saying each of the questions witb tbe correct intonation.
Then listen and check.

Speal<ing Work with a partner. Prepare tag questions for situations t- 5. Take
tums to read and respond to the questions.
1 You are very surprised to hear that one of your colleagues, Jeff, has been
prometed. Make a comment to another coileague.
You're not telling me he got that job, are you?
2 An important file has gone missing from your office. Talk to the person
you share your office with.
3 You'd 1ike to take part in a training seminar but you think it may be too
late to apply. Ask the HR manager.
4 You need to know if your colleague can take you home by car, as
promised, after Work.
5 You've heard a rumour that one of your best members of staff is
thinking of leaving. Confront him/her.

Listeni ng 3 0 D Listen to an inteiview with Grard Desmarest, an intelligence and

security consultant and author. In what order does he talk about the
following?
a the main security weakness ofbusiness organisations
b the difference between two key terms/concepts
e what he did when he was hir;ed to assist a company
d how to make staff more aware of security risks

O Listen again and answer the questions.

a What sources of 'business intelligence' are mentioned?
b What forms can 'industria l espionage' take?
2 a How should com panies protect their information systems?
b How can competitors obtain information from employees?
3 a What is the best way to make staff more aware of security risks?
b What do most companies fai l to do? Why?
4 a Why did the consultant visit the company at the weekend?
b Why does he refuse to give details about exactly what he did?
 Career skills Questioning techniques

Questions are used in a variety of different ways and not always just to obtain
information. Asking the right type of question at the right time can make the
difference between a successful exchange and an unsuccessful one. Lookcit the
following exa mples of different question types.
a lf you were in my positfon, how would you approach this?
b Why didn't you follow my instructions?
e Do you know who I cou/d askfor sorne advice obout this?
d Sholl we move on to 'the next question?

Match the different types of question with a-d above.

on o .H.~ 101 are used either to invite someone to do something
or to make a suggestion abou t what you think should be done.
2 fypothct1ca1 qut st1ons are often phrased using a conditional fom1.
This reassures the listener and makes the question eas ier to answer.
3 t.~<>t've qucst e, 'i are often used to criticise other people. Tbey can
also express annoyance or surprise.
l ..e d.:d .. L l'i are in two parts: an introductory question +
affirmative verb. This makes the question more indirect and polite.

ID Look at the foUowing questions. Which types of question are they?

What would you do if you were asked ?
2 How about taking a break?
3 Don't you realise how important this is?
4 Could you tell me where I can get a copy of that?
5 Do you bave any idea when the modificatiohs will be made?
Why didn't you tell me?

Listening 4 0 Listen to four short dialogues. Which two types of question above
are used in each dialogue?

Practice Choose one of the situations below and prepare the questions that
the supervisor would ask. Take tums to play the roles of the
supervisor and the employee.
An employee in your department has been using the company's
computer to update his/her weblog (i nternet diary). You suspect that
he/she may have given away confidentia l information.
2 The report that you asked an employee to prepare conta ins a number of
mistakes. Information about sales figures is inaccurate and there are a
lot of spelling and grammar mistakes.
3 Yo u need to ask an employee to replace you for one day at a trade show.
You know that this is a difficult thjng to ask as be/she has a lot of work
at the moment.

1 Culture at work Asking appropriate questions

In sorne cultures it is not considered poli te to ask direct questions, which may
cause conflict or embarrassment. Instead, q uestions are phrased in an indirect
manner and aJlude to things rather than explicitly state them. What is the
normal way of asking questions in your culture? Are sorne types of ques6on
avoided?
Unit 4 39
 Dilem ___
ec1s1on
Dilemma: Spying on staff Decision:
Brief
DigitalVisions is a US multinational corporation that has subsidiaries in 8 Listen to wh~t Paolo
different parts of the world. New US legislation makes it obligatory for Orsolani, a legal specialist,
public companies like DigitaIVisions to give their employees access toan has to say about the dilemma
interna! financial hotline. Employees can use the hotline to communicate facing DigitalVisions.
information anonymously if they suspect or are aware of financia!
misconduct. However, sorne companies may be encouraging use of the
hotline to obtain more general information about their employees.
The European subsidiary of DigitalVisions has just received an email copy
of the document which outlines how the proposed hotline will be used.
One part of the document reads as follows: .
'All members of staff who wish to communicate sensitive information via
the new hotline can do so anonymously. However, the cornpany reserves
th.e right to use this information as the basis for further investigation
where and when this is considered neeessary.'
Acopy of this email has been communicated to the press, and employees
and trade union representatives are calling for a demonstration against
the proposed hotline. The company has decided to organise an emergency
meeting to discuss the situation and to try to resolve the crisis befare it
leads to a further deterioration of the company's image in the local and
national press. Attending the meeting will be the:
Director oflnformation and Public Policy (USA)
Director of the European subsidiary
Representative of the Trade Union movement

Task 1
Work in groups. GroupA, you represent the Director of Information anq
Public Policy. Turn to page l37. Group B, you represent the Euro,pean
Director. Turn to page 138. Group C, you represent the Trade Union. Tuni
to page 140. Read the arguments you will present during the meeting_.
You should also prepare a short list of questions to ask the qther
particlpants about their positions in relation to the hotl ine.

Task 2
Work in different groups of three, so that each of the three rol~s is
represented in each group. Hold the meeting and present your
arguments. Ask the questions that you bave prepared.

Task 3
Reach an agreement about the best way to deal with the pro.~<ll.Q
the hotline is causing.

Write it up
Write a short rep.ort, summarising the situation and out liningthe
conclusions reached byyour group. (See Styte guide, page 28.)

40 Unit 4
The marGh of t
PAGE 44-

Relatfve ~lause
PAGE 46 r
 Preview Unique selling features
0 Read the descriptions of sorne of the latest hi-tech products.
Which ones would you like to own <:>r use, and why?

. . \ling machines at \ Mic::rosefv labs in Cb.

e MusiGll'Ve IS insta
t dispen:e c1
:ga.rette \ight.er-
. . . \
A dictas i.s designing a new sho.e deveJ""'m

"tJo
. . 1
g a d1~rtal pen rbar
are
concertS tha . . . hich contain d1g1ta 1 0f)taini,0:g '1:>attety-powered. people q1n use ro wdte on
sized .h.a.rd dnvees!'or""ances, wnidi are mibrOp\'~Sor and electrc motor to as well as eleoti: . paper
gs 0f n l t ' " ) 1 h d n i. .ODJC dOeutneJlt$
fec0ru1l'1 . ;. S onte a .computer.
;..t t.. 'J' T
1e p t -saee respon to wian_gillg' vsers can also 'tipload ._
Up\ "'(1.1.1 . p n .. ~... .,. .,..,,.._,.... ... d ., . - peo-wr1tt"'o
easy t e:> .., p we<ta1e'1 e~ow.uvJl,,. _ocuments orlto thei.r e "'
7 d . . .--............-~ - .....,._.-n..mr ...
..... - - omputers.
1 JI! z&~ ... '--
A wil'eless PGl'table ite Dalmlercnrysler has designed a v,ibrating accelerator pedal
IJecwa uses a.specfal 'b n,et radio develoJJed by ttiat al:erts mo.torists to slow d'Qwn y.ihen it is economically
stations on the
web. l'OWSer fu capture wlse. Tte system tells the driver wh.en ali intersection is
approachin~ to avod sudden stops that waste fliel.

El Look at the different mobile phones below and on the opposite

page. Whicli Qne do you like most, and why?

4 Gaming console
1

2 Jackknife
3 Clip-on

Listening 1 8 Describing features and functions

O Llsten and match the descri:ptiorts you hear with the phones above.
El Listen again and complete the inforrnation.
a
b Manufalturer:
- - -- -- -
fea1ure.$:
lt ha~ a prote-dive devile fo'r the
;;--:-:--- -- -- and has- room
for both a
a - - -- -- -- and

Maf1ufac.1ure.r: ---~----

e featurv.,;
The phone is a _ _ _ _ _ _ __ d
fe.a1 L1re.. ThiS' l!>u99eMs mQbile phones '-Ould be
dtf>i9n~ to perform _ _ __ _ _ __
111 the future.

42 Un it 5
Speaking Work in pairs. Take tums to describe the Blackbeny mobile phone.
If either or both of you own mobile phones, talk about how they
compare with the Blackbeny.

Reading Continuous improvement

D Read the text on the following page. What are the different ways
in which mobile phone companies can boost revenues by
a) increasing sales and b) encouraging people to use their phones
more?
Read the text again and answer the questions.
l What are the features of the new mobile phone for dogs?
2 What does tbe writer mean when he says the mobile phone industry is a
victim of its own success?
3 How are sorne countries allowing poor people to use mobile phones?
4 How can the potentia l market for mobile phones .in japan be at least
five times greater than the population?
5 Why is it good to make use of people's phones when they are asleep?

Speaking Wbat reasons can you think of for installing phones on dogs, and
in cars, laptop computers, household appliances and industrial
machinery? Can you think of other useful places where phones
could be installed?
Are mobile phones a good thing for society in general?
Are there any disadvantages to having 24-hour phone
communication?

Unit 5 43

Continuous ;mprovement
The march of the mobiles
Is there no limit to the potential market for mobile cornmunications?
1
WHEN it wmes to new designs for
mobile phones, the model that was
announced Jast week by a start-up
based in Arizona reaUy goes to the
Limit. Shaped like a bone, it operates
only as a speakerphone; picks up auto-
matically when called; is mounted on a
red strap for weang around the neck,
and is JabeUed with a Jarge paw -
because the PetsCeU, as it is called, is a
mobile phone for dogs. Pets Mobility,
the firm behind this astounding device,
boasts of "connecting every member of
your family - even your pet".
2 This js not qwte as ridiculous as it
sounds. 1ndeed, you can expect more
examples of this kind of thmg. The rea-
son is that the mobi le-telecoms industry
has become a victim. of i.ts own success.
With sales of 600m units a year, mobile
phones are simultaneously the world's
most widespread communications
devices, c9mputing devjces and con-
sumer electronics products. Almost
everybody in the developed world now
has one, and growth is booming in the
developing world, too. China is the
woild's larg.est market for mobile
44 Unit 5
phones, nd Africa is the fastest..grow-
ing. In the Ieast developed parts :of the
world, entrepreneurs such as
Bangladesb's "telephone ladies" rent out
mobiles by the minute, putting phones
into the hands of even the poorest. The
much quoted statistic that two-thfrds of
the world's population has never made
a phone call is n longer true.
3 As a result, the industry is frantical-
ly looking for new sources of growth,
since it will not be able to rely on sub-
scriber growth for much Jonger. And in
the developed world, it cannot rely on
subscriber growtb even now. Hence the
logic of selling pho.nes for dogs.
~other untpped market is phones for
mfants: Communic8, a British 6m1, has
l~unched the MyMo, a simple pbone
a1med at four- to eight-year-olds, while
SK Telecom in South Korea offers a sim-
ilar device, i-Kids, with built-in satellite
tracking. And even when every human,
cat and dog has a phone, there are
always cars, Japtop computers, house-
hold appliances and industrial machin-
ery. lnstall a phone and sorne sensors
inside a bulldozer, and it can calJ a
Glossary
start-up new, recently formed
company
untapped market potential market
which hasn't yet been exploited
saturated (market) where thare
are more goods than people who
want to buy t hem
mechanic before it goes wrong.
DoCoMo, Japan's leadi11'g mobile opera-
tor, estimates that the potential market
for mobile phones in Japao is at Jeast
five times the number of poople.
4 Another approach is to encourage
people to use their exsting phones
more than they do at thie moment.
Third-generation networks, which will
offer lots of extra capacity, will Iead to
lower prices and, the industry hopes,
more phone calls. Similarly, there is
much excitement about "fixed-mobile
convergnce", a technology that allows
people to use their mobile handsets to
make cheap calls at home over fixed-
line networks - again, t is hoped,
boosting usage. Extending mobile cover-
age, so that subscribers can make calls
wherever they are, is another tactic.
Coverage is already available in under-
grou nd railway networks in many
cities, and within two years it wiU be
extended into what is many people's
Jast remai ning phone-free eliviromnent:
aeroplanes.
5 When everyone on earth is on tbe
phone ali day long - calJing their dogs,
c;ars or washing machines, if not each
other - will the market finally be satu-
rated? No. There are already plans to
stream music, video and other down-
lo.ads to mobile phones in the dead of
night, wbert networks are almost empty.
Even being asleep, it seems, need not
prevent you from using your phone.
Evidently, the industry has far to go
befare it reaches the limits of
mankind's desire to communicate
 Vocabulary 1 Match the nouns (1-9) from the text with their meanings (a-i).
I design (para 1)
2 model (para 1)
3 subscriber (para 3)
,1 laptop (para 3)
5 appliance {para 3)
6 sensor (para 3)
7 network (para 4)
8 coverage (para 4)
9 download (para 5)
a a piece of equipment used for a specific task
b an area where mobile technology can operate
c a particular type of machi ne
d software or information that can be moved
from one electronic device to another
e a device to read information
f a portable computer
g a person paying to hire a telephone li ne
h a set of connected technoJogies or systems
the appearance of something because of the
way it has been planned and made

Vocabulary 2 Compound nouns

ln the text there are examples of compound nouns such as
subscriber growth and household appliances (para 3). join the nouns
in box 1 to the nouns in box 2 to form compound n ouns. Sorne
words in box 1 can go with more than one word in box 2.
internet 2 product
mass market
market technology
info rmation margin
computer programmer
profit access
consumer share
leader

Practice Complete the article a bout Motorola's new strategy with the
appropriate form of words from Vocabulary 1 and 2.

Padmasree Warrlor, Motorola's chef
technology officer, is launchlng a new
strategy, which, she says, wllf lead to more
mobility.This, she hopes. wlll increase the
number of 1 :;ubscribers in the almost
saturated mobile phone market. Nokia is
the mobile phone 2 out in
front of Motorola, which is number two in
thls hlghly competitive lndustry. With an
lncreaslng number of competitors trying
to attract fewer and fewer customers, ali
telecommunications companies haveseen
their 3 shrink lately. Many
big telecom companies are facing
pressure frorn sf)areholders to find new
growth markets and original strategies in
an effort to boost falling revenues and
increase 4 _ __ __
Ms Warrlor leads an army of 4,600
technologists and researchers who have
come up with plans to do just that. They
lntend to start by connecting their
technol0gy 5 lnto one, for
example combining wireless and
multimedia technologies in their new
mobile phones. Their latest
6 , the Razr V3, has been
described asa triumph of engineering,
marketing and lnnovative
7 Motorola also plans to
smooth the transitlon between home,
work, automotive and mobile
environments by providing easy and high-
speed 8 on trains and
email in cars.-and their customers will be
able to get video 9 onto
thelr phones.The company even lntends
to ex~eM ' so t~at
mobiles can be used on planes. Phones let
you talk everywhere; Motorola will let you
do everything everywhere!

Writing Write a formal email from Padmasree Warrior to the Motorola staff,
outlining her plans for the company's future. (See Style guide, page
20.)

Unit 5 45
 Language check Relative clauses
Study the exampJes of relative clauses from the text on page 44.
Definin g ... the model that was announced last week by a start-up
based in Arizona ... (p ara 1)
Non-defining Thi rd-generation networr~s. which will o.ffer lots of extra
capacity, will ... (para 4)
Shortened relative clauses Sorne relatve clauses can be shortened by using
the present or past participle if the pronoun is the subject of the clause. In
the case of past participles, the verb has to be used in a passive sense.
... the model announced last week by a start-up based in Arizona reaUy
goes to the Limit.
Third-generatiori. networks, offering lots of extra capacity, wiU lead to ...
~ For more information, see page 159.

Practice D Shorten the relative clauses in the following sentences. Check

yor answers by finding the semences in Preview on page 42 and
the text on page 44.
A radjo which was developed by Reciva uses a special browser.
A radio developed by Reciva u5e5 a 5pecial brow5er.
2 Ad idas is designing a new shoe which contains a battery-powered
m icroprocessor.
3 Bangladesh's 'telephone ladies' rent out mobiles by the minute, which
puts phones in to the hands of even the poorest.
4 Communic8 has laun ched a simple phone wh ich is amed at four- to
eight-year-oJds.

O Read the arride below, in which the relative clauses are in italics,
and do the following.
Complete the article with the appropriate relative pronoun..
Put brackets round the relative pronoun if it can be omitted.
Add commas where they are needed.
Rewrite 5 and 8 using shortened relative clauses.
Decide which two clauses could be either defining or non-defining.

11lc man 1 wholthaP invented nanotedmology a book t:alled 'Engines <~fCn;aon' 5_ _ __

s callcd Erk D{exler. He believes tbatthe name of
his invcntion has been st()kn and applied t-0
sornetlng dse. For the tenn nanotecbn0logr
~ once had a precise meaning is now
being used by anyone with half a plan for making
very small thiugs. Minian1risati0n is not, of course,
a new idea. One of the consistent aims of
innovation in tethnology has been to make things
as stnall as possible. ltwas the ramous twentieth
century physidst Richard Feynman 3_ _ __
work first. s1Jggested that miniat11risation might go all
the way down to the molecular le11el. Eric Drexler
_ _ __ went to the Nfassad1usetts
Jnstitute ofTechnology in the late J970s
turned tbese ideasinl;o a PhD thesis and
was publi$l1ed in 1986. HL~ vision was of a
revolut.ion 6 would change
manufacturing tedmology forever. Although there
are few commercial products yet, some are clearly
on the horizon. Molecule-sized transistors and
other electronic components 7 have
already been developed are being studied by
researchers 8 a.re ttyng to work out how
to ft':t them together. l'll spite of the huge budgets
9 11anotechnology rnquires and fu.e slow
techni<>al progress, nanotechnology is bdieved to
be the technology 111 will bring u.s
lighter, stronger, cleaner and more precise
tecfmol.ogicai produws in the future.

46 Unit s
 Career skills Briefing

When briefing people on what their projects or assignments will involve, it is

importC!nt to be clear and thorough as briefs are the starting point for putting
strategies into action. Look at t he fo llowing useful phrases.
a The projeet will involve ...
b Let's Look at this diagram to get a better picture of ...
e To get results, we need to ...
d Jill, can you make that a priority?
e What we need to achieve is ...
f I want the IT department to get on to that.
g Probably the best way to do this is to ...
h As this chart shows ...

Match phrases a- h with stages 1-4.

When briefi ng it is important to:
I outline objectives 3 assign roles to people/departments
2 describe methods use visual aids to clarify points

Listening 2 8 Listen to an extract from a briefing session about setting up a

corporate website and answer the questions.
1 What is the main objective of the website?
2 What areas do the rT experts need to answer questions about?
3 What will recent questionnaires be used far?
4 Which two departments are roles assigned to?
5 What does each of these departments have to do?

Listen again. What Ianguage is used to do the following?

outline objectives 3 assign roles
2 describe methods 1 refer to visuals

Speaking Work in pairs. Prepare a briefing session from the following notes.
Take turns to give the briefing.

PtS~ u.pcM1t, 1nt- ~Sl~O of ov.r D'ID '(U()Yf}U

~"~lf'\l.US 1Mprovi p1c.iu.ri MV}. SCIU.f~ &)l.lA\1 tv,i
pt,si~m,rs c.omi u.p w1tt1 niw c.o\ou.Ys MA G\t-s10ns, loov.. M c.01Y1?(..frh0n
tsnow s\ \lAis of wrnprAdoYs 1 \~\'lis t ~e;\~)
ry\p.ry.e,11f10 fl.IAM 0e...1 MIAYVl;~ ft.i~b~c..v. (,1(\ proi'ot~pi - or13Mis~ foc..l.l.S
grov.ps / 0u..e,sf\onno.1ris.

Culture at worlr Assigning tasks

In sorne cultures, hierarchy is very clearly defined and respected. Senior staff
rnembers make ali the major decisions and initiative is neither expected nor
rewarded. Briefing sessions have a dictatorial style and orders are expected to
be carried out to the letter. Ln other cultures, briefing sessions can be more
flexible, and working methods can vary as long as objectives are achieved.
Which corresponds best to your culture? Which of the above culture types
would you be most comfortable in, and why?

Unit 5 47
 Dilem -.---
ec1s1on
Dilemma: Turning ideas into reality Decision:
Brief
The Nati.onal Endowment for Science and Technology{NESTA) was set up Now turn t0 page 145 and read
to maximise creativity and innovative potential. They glve financia! what NESTA decided.
backing in the form of grants and loans as well as advice on p.roduetion
and marketing strategies to organisations with new teehrtological
inventions. They are less interested in shorHerm results than other
providers of capital and they consider the social and cultural value of
products to be as important as the long-term commercial value.

.;;sk 1
Work in small groups. Read the descriptions of the applicants for a
NESTA grant below. Discuss the merits. of each product in terms of:
innovative potential long-term returns and the social and cultural
impact of the technology.

Task 2
As members of the NESTA committee that awards grants, decide which
Point and click
product your group would ch0ose to back, and develop your own for learning on
arguments as to why thls technology is of particular importance. Prepare
to present your views to the committee. the move
!fypert~g Ltd wants to produce
_nteract1ve tnobi te multimedia
Task 3
technelogy. Theirtechnolgy uses hand-
Each group should present their chosen product and say why it is the held computers whicl1, when pointed at
most worthy. As a class, decide on the winnin.g product. an electranic device. near an exhibit ata
111useum o art gallery, ca~ offer lots of
r~l'evan~ info.rmatkm inc.l.uding text,
v.:Ldeo, p1ctures and so:und.
working tyrelessly Nanorechnologr 1011 h . ~
Nanosight has de . 1 1bloterrorlsm
tor the environment . ve1oped a wa . 0 f
reproducmg a version of h Y synthet1.cally
.
h has developed a mach)ne b~dy tirst detects a virus w _at happens when the
U.TDR Resea(c s iri an mrnroefectri ' using co111puter and
hict'I can r.ecycle tyre . 1;;.;.... QJJ1c technol@gy 1'h .
:~virnmentlly-frendly fashio-n. ~~ a~; ( uu1rted to cdetectng b. ~ is techn1que is not
1ow~ui.are
rts the waste into market~ e s>eed up drug develo m . . v.uuses b~t can
conve . h Gan roduce revenue for reduce tosts for phat p em.and dr-amaticaHy
products, whic: . P. ooo tonnes maceuticai companii::s.
"" business. At pres-ent, 190, . .
t .,e 'h landftll sites or offic1al
1
of wa_ste tyres a other

dumping
. grounds are, amon
d\sadvantages, un
der constant threat: ot VISION OF THE FUTURE
umanageabte fire.s. Camfed havecome up with a revolutionatY in\i.ention in optics,
which will l.ead to the production of energy-efficent, low-
cost, high-perform.ance .displays and :ultimat.ely home cine.mas
and J\/,. To date, displays have been e1ther thm and expens1ve
Write it up
or sp:ace-Qons1;1ming and cheap.
Write a pr~ss release announcng the
winning product. (See Style guicLe, page 30.)

48 Unit 5
 Preview Advertising media
D Look at the examples of adverts that have appeared in ungsual
places .a nd discuss the folfowing questions.
1 What a re the target audlences for each of the adverts?
2 How successful do you think these adverts are?
3 Can yo think of other unusual places t advertise these products?

D Where would be the best place to advertise the following?

1 golf equipment 4 hotel accommodation
2 medical insurance 5 a $econd-hand car
3 discount travel for students 6 .a new movie

Speaking can you think of any more new, unusual places where it would be
possible to place advertisements?
How many ;idverts de you see every day? Where are they placed?
Which three media do you think are used the most for advertising?

Reading Targeting the audience

0 Read the text on the opposite page. Choose the best subheadihg
for the beginning of the text.
The advertising industry is. going through a crisis period - sales are
down and time.s are bard.
2 The traditional media are fina lly attracting a new younger audience and
more advertisers .as a result. .
3 More people are rejecting traditional sales messages, presenting the ad
industry with big challenges.

IJ The following questions refer to infonnation given in paragraphs

1-6. Which paragraphs are referred to in each?
1 Why have sorne forms of advertisjng become ineffective? para 2
2 What are the two weaknesses of the internet as an advertising medium?
3 What new services have advertisng agencies started to offer?
4 What happened in the past when new advertising media appeared?
5 How much does it cost to advertise at peak viewing t imes in the USA?
6 What proportion of the money spent on advertising may be wasted?

IJ Answer the questions above.

so Uiiit 6
 Glossary
Targeting the audience
go down the drain be wasted
The harder hard sell splllrge spend a lot of money
relentlessly continuously, without
stopping

It was Lord Leverhulme, the British

soap pioneer, who is said to have com-
plained that he knew half of his adver-
tising budge1 was wasted, bul didn't
know wbich half. The real effects of
advertising have become more measura-
ble, exposing another, potentially more
horrible, truth for the industry: in sorne
cases, it can be a lot more than half of
the budget that is goiag down the drain.
2 The advertising industry is passing
through one of the most disorienting
periods in its history. Th is is due to a
combination of long-term changes, such
as the growing diversity of media and
the arrival of ncw technologies, notably
the intemet. With better-inforrned coa-
sumers, the result is that sorne of the
traditiona l methods of advertising and
marketing simply no longer work.
The media a re the message
But spending on advertising is up remain confidem. Rupert Howell, chair-
1
5
Nct sales
Such decisions are ever hardcr to
make. For a start, people are spending
1Use of US media, ho urs per
person, per year
a
less time rearung newspapers and mag-
azines, but are going to the cinema - Radio Consurm!r intemet
more, listening to more radio and turn- Cable & satellite TV - Oaily newspapers
ing in ever-increasing n umbers lo a new Broadcast lV
medium, the internet (see chart 1). No
one knows just how important the - - - - - - -- - - - 1,200
internet will evcntually be as an adver-
rising medium. Sorne advertisers think it
will be a highly cost-effective way of
reaching certain groups of consumers.
But not everyone uses the internet, and
nor is it seen as being particularly good
at building brands. So far, the internel
accounts for only a tiny slice of the
overalJ advertising pie (see chart 2),
although its share has begun to grow - - - -- -- - - -- 400
rapidly.
6 Despite all of these new develop-
mentS, many in the advertising business ~---""""'.=====-;;;;;- 200
~---

again and is expected to grow this year man of the London arm of McCann
by 4.7 per cent to $343 billion. How will Erickson, points out that 1V nevcr killed 1997 98 99 2000 01 02 03 04
the money be spent? There are plenty of radio, which in turn never killed news-
altematives to straightforward advertis- papers. They did pose huge creative
ing. They rangc from public relations to challenges, but that's OK, he maintains:
direct mail and include consumer pro- "The advertising industry is relentlessly
motions (suc.h as s.pecial offers), in-store inventive; that's what we do."
displays, business-to-business promo-
tions (like paying a retailer for shelf
space), telemarkcting, exhibitions, spon-
soring events, product placements and
1 US advertising spend (billion $)
11
more. These have become such an insep-
arable part of the i ndusrry that big agen-
cies are now wi ll ing to provide most of
them. 25%
~ As ever, the debate in the industry O Oirect mail
centres on the best way to achieve
results. Is it more cost-effective, for
instance, to use a public relations D
NeYl~petS

Television
agency to invite a joumalist out to
lunch and persuade hn to write about
a product than to pay for a display ad
in that journalist's newspaper? Should
Radio
Cable TV

you launch a new car with glossy maga- D Magazines

zine ads, or - as sorne car makcrs now D Internet
do - simply park demonstration models
in shopping malls and moto1way seiv-
ice stations? And is it better to buy a
series of ads on a specialist cable lV

D
O~tdoor

Business paper5

channel or splurge $2.lm on a single

30-second commercial during this year's
Super Bowl?

Unit 6 51
 IJ Are the following statements about chart 1 true or f alse?
1 Americans are spending more time reading newspapers.
2 Broadcast television is more popular th an satellite and cable 1V.
3 The number of radio listeners has increased significa ntly.
4 Lnternet usage doubled during the period from 2000 to 2003.
D Complete the sentences about chart 2.
_ _ _ __ __ and were the two medja on
wh ich advertisers spent the most.
2 In the print media, was the least popular medium
with advertisers.
3 ln broadcasting, accounted for a little over double
the amount spent on radio.

Vocabulary 0 Find words and phrases in paragraph 3 and match them with
their meanings (1-6).
l trade fairs and shows - - - -
2 promotional price reductions _ _ _ _
3 featuring a product in a film or 1V programme _ _ __
4 publicity materia l delivered to homes _ _ __
S communicating with the press _ _ __
6 selling to customers over the phone _ _ __

El Look at the examples of verb + noun collocarions from the text.

to a.chieve resuLts (para 4) to pose a. challenge (para 6)
Complete the collocations below with the following verbs and nouns.
Verbs run launch make sponsor Nouns brand audience image

1 to target an 5 to project an
2 to a new campaign 6 to endorse a
3 to a n advert jn the press 7 to a commercial
4 to a sports event

Practice Complete the text with the appropriate fonn of the collocations above.

ignlng a celebrity and using their star status to 1 ene/orne a lzrand is one of the

S standard advertlsing techniques. Tag Heuer, tbe wacchmaker which 2 _ _ _ __

a number of
Kldman has 3
, currenUy has Tger Woods under contract. Nicole
for Chane! No. 5, which has been shown around che world.
But choosing che celebrity who wiD 4 exactly the right is
not always so easy, as severa) companies have found out. What happens when a company
ls about l0 5 a new feamring a l!elebrlty ana ft suddenly
flnds out chat he or she is accused of a criminal offence?While there is no-doubt that most
celebrity endorsements do increase sales, more and more advenisers are tuming to other,
less risky ways of 6 the that lhey want to reach.

Speaking What examples of product placement in films, video games or on 1V

can you think of? Do you think this is an effective fonn of advertising?
52 Unit 6
 Language check Gerunds and infinitives
O Study the examples taken from the text on page 51. Whicb of the
examples contain a gerund and which contain an infinitive?
a The real effects of a.d:vertising have become niore measurabLe, exposin g
another, potentiaLLy more horrible, truth for the industrtj. (p ara 1)
b But spetuiing on advertising is up again ... (para 3)
c. ... and is expected to grow this year by 4.7 per cent ... (para 3)
d ... big agencies are now wiUing to provide m ost of them. (para 3)
e ... it wi Ll be a highly cost-effective wa:y of rea.ching ... (para 5)
f ... a.lthough its share has begun to grow ra.pidly. (para 5)
Which of the following rules apply to gerunds and which to
infinitives? One rule applies to both - which is it?
1 _ _ _ _ : used after preposit ions (withou t, of, etc.)
2 _ _ _ _ : used as nouns
3 _ _ _ _ : used to fo rm a shortened relative clause
4 _ _ _ _ : used after the verbs intend, plan, decide, expect, etc.
5 : used after the verbs lil~e. ha.te, sta.rt, continue, etc.
6 : used after adjectives (lia.bLe, willing, best, etc.)
D Match rules 1-6 with examples a- f above.

~ For more information. see page 159.

Practice Complete the article with the gerund or infinitive fonn of the verbs
in brackets.

Cadvertise) Mvsrtlslne dates back to early history ll:!:fj Procter and Gamble launch thelr tvory Soap ad, ~spend)
and inittally consisted smply ot people (2communicate) a record sum of $11,000 on lhe campaign.
- --
_ _ _ messages oraUy about where certain items
AT&Ts New York radio station introduces broadcast
could be tound. 11 was the invention of (3print)
r
advertising by 01nvlte)
11
llsteners ( buy} - - -
- - -4 ttlat really launched wrltten m~ssages as a ten minutes of radio time for $1OO.
vehicle far ( promote) the sale of products.
In London, the first print adS (~appear) were ltj11fl lhe ffrst broadcast televlsion cornmercials are made,
posted on the doors ot churches. (6announce) r 2open up) a new medium for advertisers

- - - tnat prayer books were available from a
local prl nter.
Newspapers accelerated the growth of advertislng, and
with more and more people able (7read) _ _ _
busnesses began (8take ouij adverts to sell
imported goods like tea and coffee. However, it was in the
USA tnat advertislng really became an industry in itself.
Sorne of the key moments in this process were:
MlV's new style of video images starts r 3revolutionise)
_ _ __ the way that TV commercials are made.
;.;w;"""' The amount of mohey spent on Internet actvertlsing
conllnues (14rise) and reaches $2 bllllon ror the ftrst1me.
11 Procter and Gamble manages C5attract> ____
more than four mlllion consumers to lts website for lhe launch of its new
toothpaste.

Prepare brief notes about your plans (professional or personal) for

the coming year. What do you hope to achieve? What are you
looking forward to doing? What decisions do you think you will
have to make?
Discuss your notes with a partner. How are your plans different? Do
you share the same goals?

Unit 6 53
 Talking about adverts
Look at the two adverts. Who is being targeted in each advert?
Which advert do you prefer, and why? Which advert do you think is
more effective?
2

Listening 1 E) 0 Listen to Naomi Johnson of the lnstitute of Advertising and

Design talking about the two adverts. Complete the table.
1 2
dvertiser
Prnduct

Key words. u'sed emotional lmpact etraiqhtforward

ta desGribe the
advert

O How do Naomi 's opinions of the adverts c:liffer from yours?

Speaking 1Vhat are your most/least favourite adverts?
Which current adverts do you think are the most creative irt your
country?
How is the advertising industty regulated in your country? What
sorts of products or services cannot be advertised?

Writing Choose a poster advertisement from your country that you find
distasteful Write a letter to the govemment authority responsible for
advertising, outlining the reasons why you think it should be
banned. (See Style guide, page 16.)

54 Unit 6
 Career skills Storytelling

When we communicate With other people at work, we spend much of our time
telling stories about things t hat have happened. Telling a good story can
leave a strong impression arid can help your listener to visualise a situation.
look at the following phrases~ which can be used when telling a story.
a It turned eut . . . e ln the end ...
b You'll never believe this .. . f At that very moment .. .
c To cut a long story shorl: .. . g To ge.t to. the point .. .
d Just then .. . h Guess. what happened next?

Which of phrases a-h would you use if you wanted to do the

following?
1 give a shortened version
2 talk about the outcome
3 get your audience to anticpate
,i focus on a critica) moment
When you teJI a story, remember to do the following.
Set tbe scene: describe where and when the story took place.
Describe the people who are involved.
Describe the seq uence of events.
Explai n how the story ended.
Not speak too fast, and pause at critical moments in your story.

Listening 2 G Listen to a person telling a story. Does he follow the advice above?

El Now listen to another version of the same story. How is it different?

IJ Listen to another speaker telling a different story and answer the
questions.
1 Who is the main character in tbe story?
2 Where/When does the story take place?
3 What is the sequence of events?
4 What happens at the end?
Which of phrases a-h above does the speaker use?

Speaking Work in groups. Think of something unusual that happened to you

or to someone you know, or think of a film or book. Prepare a two-
minute story about it. join a student from another group and tell
each other your stories.

Culture at work Personal narratives

The types.of stories that people tell vary from one culture to another. In
sorne cultures, people avoid telling first person narratives and prefer to tell
stori~s that do not involve tbem personaJly. In some western cultures,
however, it is considered acceptable to tell a story about your own
experience. What types of stories do people tell in your culture? What sorts of
subjects shou ld you avoid if you are telling a story in a business context?

Unit 6 SS
 Dilem
ec1s1on
Dilemma: Danger Zone
Brief
The marketing team of Wonder lmage Inc are about to launch their Turn to page 146 to find out
latest action video ga me, Danger Zone, using a series of striking lV what happened with the launch
commercials with real actors. of Danger Zone.
The first commercial takes place in an underground car park, where we
can see the siJhouettes of three people moving in semi-darkness. Then
there is a sudden blinding flash as a gun goes off and a young man is
heard saying, 'This is where l met the two str:angers - and I didn't want
to meet them again.' The storyboard for this commercial has been shown
to two sample groups - a group of target consumers (12-25-year-old
males) anda representative group of older viewers. The reactions of the
first group have been extremely positive, but in the second group severa!
people have expressed concerns that the commercial will be too extreme.
Tbe marketing team are worried: if viewers complain to the
government's Advertising Standards Committee, there is a chance that
the commercial could be banned and the launcb wouJd be endangered.

Task 1
Work in groups. You are members of the marketing team and you now
have to decide what to do about the launch of Danger Zone. Among the
options that you ca n considerare the following:
cancel the first commercial and delay the launch until a new storyline
can be developed (you can suggest ideas for this)
contact the ASC to see if the commercials can be shown after IO:OOpm
go ahead with the launch of the campaign without changing anything
radically alter the campaign and/or choose an aJternative method of
advertising the game

Task 2
Meet with anoth er group and present
your decision about the launch.

Task 3
As a class, review the solutions proposed
by each group and agree on the one that
the class thjnks would work best.

Write it up
Write a fax to send to the advertising
agency informing them of your decision.
(See Style guide, page 22.)

56 Urut 6
Language check
Que~cior f r
Complete the frequently asked questions
about the Advertising Standards Commission
(ASC).
_ _ _ __ does the ASC come to the
conclusion that an ad is making false claims?
2 ki nd of evidence does a
company need in order to support the claims
in its ads?
3 Jetters from satisfied customers
considered to be sufficient support?
4 the ASC review my ads befare I
run them to check they comply with the law?
s 1 easily find out if the ASC
already had an investigation into my
company?
< We offer a money back guarantee, so we don't
need to support our claims, ? o """ e
Relative la ses
Read the following sentences about
industrial espionage. Are the relative clauses
more likely to be defining or non-defining?
Add commas where necessaty.
The office that the team ofUS and Chinese
scientists were working in was broken into
last night.
2 The thieves who tried to make it look like a
simple burglary stole computers con taining
plans, diagrams and specifications for a
technology named Butler.
3 Butler which will allow anyone who has a 1V
to access the internet was top-secret because
of its commercial potential.
~ The research was being done in conjunction
with the University of Buffalo and the visiting
professors who recently arrived from China
s The American Society for Industrial Security
whom they commissioned to do a study said
the potential losses for ali industry could
amount to as much as $63 billion.
Complete the text with the appropriate form
of the verbs in brackets.
For many years, scientists have had vis ions of
( 1build) the smart, fuUy automated
home, which contains fridges that are able
(2suggest) recipes for the ingredients
inside them and cupboa rds that have no
difficulty in ('arder) groceries before
they run out.
People have dreamed that one day they could
afford (4buy) internet-capable
kitchen appliances. So why haven't we managed
(Smake) the dream a reality yet?
6
( have) wireless networks would
seem to be the answer, and now Nokia hopes
(7tum) its phones into universal
remate control devices, (8mean) the
dream may come true sooner than we think.
Choose the correct fonns of the words in
italics.
The customer is finally king
Thc larcsc d ilcmma 1whtJ/which TV advcrcisers have ro
face is how ro am:ict cynicaJ consumers 2 zuhich/uiho
have found ways ro avoid 3to u111tch / watchingTV
conunercials. A rccenr survcy, '1()rganed ( orgttnising by
'Thc Economist', showed that consumers are more
inreresrcd in 5gerting I to gut informarion themselves
rhan simply Cito listen/ listming to whar adverrisers
have to ~ay. re is becoming increasingly important for
advercisers ~asking /to mk themselves how thcy sJ1ould
adapr and 11 how/1uhttt ir means for o rganisarions
9who/thntc.an'r a/Jord 10 10 laselfos11gru1y more
busu1c~. 'For che firsc rime, che consumer is boss,
11
who / which is fascinacingly frighrening, becausc whac
we were good ar 11 to do/ doingwill no looger work!'
says Kevin Robem, chie( execucive of Saarchi and
Saarchi.
57
1 Vocabulary check Career skills
0 Join the nouns in box A to the nouns in Questioning techniques
box B to form compound nouns. Sorne Match the queStions with the answers.
words in box A can go with more than one
word in box B What would you do if you were me?
2 I think we should 1eave the reportas it is. Do you
A B agree?
mass devel.opme.nt 3 Would you like a break now?
informatin access 4 Why weren't you here yesterday?
product pregrammer s Don't you understand how urgent this is?
consumer elecfronics a WeU, l'm sorry, 1 didn't, but I do now.
groWth technolo.gy b I tok a lot of work home with me to do there.
internet demon~traticm
e Ye5, I do. It looks fine to me.
computer ma rket
d Oh, yes, I should think we ali need o-ne.
e I'd tell the truth.
11 Complete the artide with the following Briefing
words and five words from above.
Match the sentence halves (1-5 wi:th a-e).
~ampaign events publicity
phones ad!vertisem.ertt This project will involve
2 As this chart shows,
3 To get quick results, we need to
4 I want the Human Resources department
HumM .0kl rob0ts ate beeoming. :ever more like
hurnans1 ttlanks 'to the ragilil adyanGf;ls In computer 5 Finally, 1 want you to make this
and the ~reatiVlty of thlr designers. But
1
a a priority - we have no time to lose.
why hava mbot,s. takn 0r a human' form'? Is it t b m::ganise retraining programmes for ali the staff
mak~ the
2
feel more Gotrfortable wlth as soon as possible.
thm or is ft oeoause of the 3 they
generate for the rms tfiat make them?
e to find trainers and schedu.le training sessions.
lt is certainly true tat humanoid robots are a d we are far behind our competitors in software
wpnderful 4 f0 r the likes of Honda and terms.
.S.orw: As1mo1 the humaneid robmt trom Honcia, is e a complete change in software systems.
oapable of a eerfect pr@duct -5 ' ,.showing
What Jt car:i de by Walking on stage"at:all th lndustty's Storytelling
11
maJ9r to collect awards for the Complete the stor.y with the following
compa11y. Toyt8 organised a huge media expressions.
7
to lhfotm the wotld about Partner, thir
r,0bot INho plays tfie tr\Jmpe.t. SG'ny's ORIO
y0u'll never believe this to cut a long.$ tOry short
Understands a smaJI number of v.oiGe oommands,
.guess what happened it tt:irhed eut in the end
and wlth lts wlreless oonnectlon to the a it
can broadoast what ts camera eyes see.
But it is also true tMat these companies see their
robots becoming.rn?ss 9 products. Hideki
1 to me al the w~kend . 1 rnet t.his guy al !he
K0miyama of Sony hs no doubts. 'Robots are going
conference who 1ltiougl'lt, was really brlng ar fffst b~t we gol
te b_e a part of everyday llfe,' he S?YS, 'and Will
az l realised he was the very man 1needed
become as commo in the tutu-re as. mobile talk1ng~n ti f
10 to rneet. The tfling is tflat his ~pmpany has oeen the .v1e..rn .o
are today.'
industrial .esplonage, roo, aRd has had ali sorts .o1 pr.oblerns,
a he explaine~ how intormatm_n,gels out 01
AA'f'!{O,Y ' " d'd
11 or~nisation. 4 , tiut fn ther comQany ~hey t
~er.yttiing to dlscover how it lap~ene<L spenl ,a lo.t of tune and
money, arid 80 en, wd s that the problem was .:~
moble phones- be~use, of ~ourse..modern Ol'les h11ve ffleyras l
them, and ne one ha~ t.hoght of ltlatl

58
 The people vs the USA
PAGE 6l

The passive
PAGJ 64

www,longmal'lelt.com www.ec.onomi:ttom Dilemma: Beauty and business

PAGE 66

In the name
of the law
Keynotes
The activities of all companies are subject to
national and international laws, which lay down
J the conditions under which they can operate in
1 their horne rnarkets and abtoad. Companies and
indivicluals use the services of a law ftrm or of a
corporate legal department to take legal action or
to litigate in arder to obtain compensation for
h-arm they have suffered. Both sides in a lawsuit
a.re represented by their lawyers (US attorneys);
the plaintiff or litigant brings the lawsuit against
the defetldant. Businesses can be sued if they fail
to respect their obligations un.der the Law. Mosd
lawsuits a;re settled out of court through
negotiation ~etween tne two parties.
 Preview 0 Legal professions
Listen to extracts fro m interviews with four business lawyers at the
intem ationaJ law firm DavisLaing Associates. Complete the table.
Which of the jobs described do you find the most interesting?

Name Marvin Hunt Louise G.rainger Marsha Maspero SamtJel Ghase

Specfality
Example case

Speaking Read sorne examples of cases where people h ave sued . Jf you were
judging the case, would you award compensation (if so, bow
much?) or would you dismiss the case?
- A woman sued a fast food outlet after she spilled a cup of coffee over
herself and suffered burns.
- A group of consumers sued a restaurant chain because they claimed the
food it served was making them put on weight.
- A father sued the school basketball coach when his son was left out of
the school basketba 11 team.
A young woman sued a local hospital after recogn ising her mother in a
1V commercial (i nfomercial) for the hospital's emergency service. Her
mother had been filmed receiving emergency treatment.
- A computer user sued the manufacturer after his computer was attacked
by a virus which destroyed sorne important files.

Reading Company Liability

O Read the text on the opposite page quk kly. Which paragraphs
contain information about the following?
a a strategic decision which exposed a company to litigation para 1
b the different forms that litigation against companies can take
e how the attitude of sorne judges and courts is changing
d how litigation can affect a company's stock price
e what happened when a company acquired another business
f the lack of information available about the real cost of litlgation
g the arguments used to justify litigation

60 Unit 7

Company lfability
The people vs the USA
Along with creditor.s and shareholdcrs, a third group is developing signjficant
ownership daims on American companies: titigants
1 SEALED Air, the manufacturer of
Bubble Wrap, should have been pro-
tected from a f1anciaJ collision as well
as any product wrapped in the firm's
famous plastic. The corporation's mar-
gins and growth prospects are good, its
patent protection strong. Severa! years
ago, however, Sealed Air made what n
retrospect can be seen as a classic
American blunder: it thought it was
merely acquiring another plastic-packag-
ing company; instead, it was buying a
legal nightmare.
1
The problem was the seller, W.R
Grace, a conglomerate that now tceters
on the edge of bankruptcy from asbestos
litigation. Attorneys pursuing Grace reck-
oned Sealed Air's profits could be theirs
if a court could be convinced 1hat along
wi1h the acquis.ition of any Grace sub-
sidiary carne Grace's fuIJ liabilities -
despite the fact that asbestos-related
products had never been produced by
the firm which was bought by Sealed
Air. When word of the litigation spread,
Sealed Air's shares and bonds were both
hit hard. Regardless of the outcome of
the cou rt case, Sea led Ai r, as the def-en-
dant, is already paying a higher cost for
lawyers, and a higher cost for capital.
> Of lhe rnany ways in which compa-
nies can end up owing vast sums of
money in litigation, six currently stand
out Product..Jiability cases are the single
most common area, fullowed (in no par-
ticular order) by suirs concerni ng
antitrust, intellectual property, employee
conduct, contractual fail ure and, increas-
ingly, sharellolder actions. There is noth-
ing new about the categories themselves;
what has changed is that each has
become, in essence, a huge industty in
itself, which has been fed by ever larger
settlements.
4
Because litigation risk is difficult to
analyse, when the financia! markets do
wake up to these concerns, they often
panic. As a result, the indirect costs from
higher finandng charges can become as
importan! as any potential verdict or set-
tlement. Often, litigation is no1 the trig-
ger for a company's share-price decline,
but rather the result. This is because any
company whose share price falls sharply
is exposed to legal action. Law firms say
these suits prompt much needed c11ange.
But it is questionable whether they make
economic sense, as they typically end up
taking money from firms (i.e. sharehold-
ers) and returning it to them minus
Glossary
Bubble Wrapn' protective plastic
film used to protect goods
in restrospect looking back to the
past
blunder mistake
teeter be in danger of falling
trigger (n) mechanism that
activates a process; (v) to activate
get out of hand become
unmanageable
lawyers' fees - which can be one-third of
the settlement
Regulation through litigation
5
On the face of it, why shouldn't a
company that does something wrong pay
the price? This sense of justice, after aU, is
why Americans love the novels of John
Grisham and movies sucb as Erin
Brocliovich, with Julia Roberts. The trou-
ble is, there is no incenrive for a plaintiff
lawyer, or a jury, to weigh up the broad-
er economic consequences of huge
awards against companies, especially
multi-million-dollar punitive damages.
6 Pushing fur reform would no doubt
be easicr if there were more precise
infurmation on the cost of litigation.
Remarkably, that information ranges
from poor to outright wrong, says
Deborah Hensler, a professor at Stanford
Law School. State courts often provide no
data, while data provided by federa l
courts can be misleading. Most litigation
is threatened and settled, leaving no
financia! trace. With more effort, these
costs could be captured. Federal agencies
routinely collect data from companies on
employee benefits and pension plans for
statistical surveys, notes Ms Hensler. The
same methodology could be used to
compile information about litigation
payouts.
7
Reacting to a sense that verdicts have
got out of hand, the Supreme Court has
heard a number of appeals and even
thrown back a multi-million'1ollar ver-
dict which had been triggered by a repair
job at a car dealer lhat was estimated to
be worth only $4,000 in compensation.
Penalties, Lhe judges ruled, must be tied
more closely to harm. rt is not yet clear
that anyone is listening
Unt 7 61
 El Choose the best options (a-e) for questions 1-6.
l What was the principal mistake made by Sealed Air?
a Tt didn't protect its patents.
b lts margns were too low.
e 1t didn't foresee potential problems.
2 Wby is W. R Grace nearly bankrupt?
a It was involved in asbestos litigation.
b It sold a subsidiary to Sealed Air.
e rt paid too much to its lawyers.
3 Why is litigation casting companies more rnoney than befare?
a Levels of compensation are higher.
b New industries have emerged.
e The categories of li tigation have changed.
4 Which of the following is often a direct result of litigation against
companies?
a Share prices rise.
b FinanciaJ markets panic.
e Shareholders receive more money.
5 How could changes be brought about?
a by requiring companies to agree to settlements
b by obtaining more information
e by collecting data about employee benefits
6 What has the Supreme Court decided?
a to limit the number of appeals
b to impose stricter penalties
e to reduce compensation awards
IJ Paragraph 3 lists the six most common categories of litigation. In
which category would you include the following cases?
The Microsoft Corporation is accused of using its dominant position on
th e personal computer market to put other companies out of business.
2 The Merck corporation has decided to withdraw its drug Vioxx after
complaints that it has dangerous side effects.
3 A member of staff has accused his employer of sexual harassment.
4 MetaSoft Ltd has been taken to court after repeatedly failing to meet the
deadline for installing new software for one of its clients.
s lnterStat claims that a competitor has illegally copied technology that it
developed.
6 Investors in Maxinvest claim that the CEO did not disclose
compromising information about the company's results.

Speaking ln sorne countries, more and more people are prepared to litigate
either against businesses or professional people. ls this a good thing
or not? Do you think this will benefit society in the long term?
What cases do you know of involving litigation in your country?

Writing Your organisation is considering purchasing a company in the USA

Write an email to your legal department giving details of potential
problems. (See Style guide, page 20.)

62 Unit 7
 Vocabulary D Match tbe words witb their meanings.
1 settlement a money paid to a professional for services
2 damag~s b a qualified legal adviser
3 plaintiff (' use of the leg~J system to settle an argument
4 lawyer money paid to the victim of an injustice
5 fee (.> a problem brought to a court of law
(... judge f a company providing legal advice
7 JUry g the official who controls a court
8 verdict h a person who litigates
9 defendant an agreement reached between two parties in a lawsuit
10 law firm J an official judicial decision
11 (law)suit k a person seeking to prove his/her innocence in court
12 legal action 1 a group of people who evaluate evidence presented in
court
Which of the word'i above have the following synonyms?
a award (n) e attomey _
b compensation _ e litigant

which of the words in 1 and 2 above would you include under

the following headlngs?
People (or groups of people)involved in a lawsuit
2 Money paid out during or after a Jawsuit
Complete tbe expressions with the verbs.
take suffer make provide reach file a ward

1 to a lawsuit 5 to legal action

] to an accusation 6 to evidence
3 to damages 7 to injuries
4 to a settlement

Practice Complete the article with the appropriate forrn of words from this
Vocabulaiy section.

n the Hollywo0@ movie of tfie same name, Julia RooertS P;lays the
1role of Erin Brackovich, a Californial single mother who ls mvelved
in an unsuc~sful 1 /awsuit where she i$ seeking
2 for injuries that she has sustained in a ~r acddent
The 5 whQ is defen<:ling her loses tifo case but offer!:l
h'er a jQ with his 4 insteq,_d._ During. her work she
disc0vers that a large czQrporation has contarrnoted the ~ter supply
of a local school. she '.Pies to corwinc;e the loBI p:eplJlabon to ta~e
s an1 ex.:entually persuades 600 people to become
6 and joiri in a dass action suit. At the hearing, the
1 rules ifl their favour and 8 - - - -
g amourtting te $3E rrdllien.

Unit 7 63
 Language check The passive
D Study the sentences taken from the text on page 61 .
a ... Sealed. Air's shares a:nd.1ionds were both hit hard. (para 2)
b ... Sealed Air made ... a da.ssic American. blunder. (para 1)

Wbich of the two sentences:

mentions the peopl.e/things responsible for something happening
2 focuses oh the resu1t or outcome of an action
Which sentence is in the passive form and which is in the active
fortn?
EJ Look through paragraphs 1-4 of the text on page 61 and find the
passive equivalent of the following active forms in bold Which
tenses are used?
This is because a sharply fallin g share price exposes any company to
legal action.
2 ... despite the fact that ... the firm which Sealed Air bought ...
3 ... a huge industry in itself, which ever Jarger settlements have fed.
4 ... the firm had never produced asbestos-related products ...
5 ... if lawyers could convince a court ...
6 The manufacturer of Bubble Wrap sbould have protected itself from a
financia1 collision ...

11 Rewrite the sentences in the passive.

1V and tbe media have covered the case in detail.
The caee hae been covered in detafl (by TV and the media).
2 Attorneys are suing the company for negligence.
3 The jury is to announce the verdict later today.
4 The company would pay compensation to all victims.
5 The judge is going to postpone the trial.
~ For more information, see page 160.

Practice Complete the arride with the active or passive form of the verbs in
br~ckets. Use the appropriate tense.

When the US pltanna~eutical ,G9mpany
Merci< first announced that its best~selling
drug V10'JOt was going: to (1p;ull) be pulled
fr-0m the market, the reaction on the stock
markets was immedJat~: the frm 's s.hare
ptiee (2 drop) 30 per <tentin Qn'.e
day. lntemal dcuments that (3 leak)
_ _ _ to the press shortly after the
announcement .sugg:est that the -0ompny
(4kn0w) for severa! years that Vioxx
C-Ould produce harmfuJ .side effects. lf that
information i5communicate) _ __
to the press1 it c-0uld have
a'.ffected both the co!npany's
profit p~rfomranee and its share prke. lt
(f>estirtlate) that.mor.~ tban
80 millien people around th.e world have
takn Voxx sitwe tfte diug (Zmtroqucre)
_ _ _ f l999. ln:2005, Otri:>l Ernst
lleta.me tft' first litigMt to (8 award) _ __
datnages, totalling over $25Q :rflllan, wnen
a jury in Texas (9find) the firm
guilty of n~gHgence. Tls tas orough t home
to pnrmaeeuticaL companies the ctang:ers of
ag:gressive marketing: it only succeeds when
products j1,Qguarantee) t be
rno p.er cent saie.

64 Unit 7
 Career skills Negotiating

Interacting with other people in a formal or informal context often involves sorne
degree of hegotiating. Before you negotiate, you should have a clear idea of your
objectives and strategy. You should also find out what common ground you share
with the other side and understand which points will be the hardest to negotiate.
Look at the following phrases, which can be used when negotiating.
a Another option is . .. g I'm prepared to offer you ...
b Here's what we have in mind . .. h Altemcttively, we could ...
e That's out of the question! Done!
d Of course, you'll hove to ... j I'll have to think that over.
e No way! k We'll need more time.
f You've got a deal! Take it or leave it!

Match phrases a- 1 with the following stages of the negotiating process.

presenting an initial offer 4 making a counter-proposal
1. refusing an offer 5 reaching agreement
imposing conditions 6 postponing a decision

Listening 0 Listen to three dialogues. What is the subject and the outcome of
each negotiation?

El Listen again. Which of phrases a-1 above are used? Identify one
phrase from each dialogue to add to the list (a-1) above. lndicate
which stages the phrases correspond to.

Speaking Work in pairs. Take the role of one of the people involved in the
following situations. Prepare the arguments that you would use and
then negotiate with your partner.

You bave decided Lo rent out your apartmenl for two.

nths wbilc you are worklng abroad. You are meeU~g a
:e~sort who is interesled in renting it from you. Negotiate
the price and coornlions.
You are a ~applier and your conlract w1th your principal
customer 1.s abo u t to expire. Yoa kn ow t lrnt tbe cu stomer w iJ1
propase a new contract but ata redaced price ( s per cent less).
You can o oly accept this under certain condilions (longer
2
contract a nd larger orders). Meet your customer.

Writing Write a letter to the person you negotiated with to confirm the
outcome of your negotiation. (See Style guide, page 16.)

Culture at work Bargaining

ln sorne cultures, people spend considerable time bargaining over the price of
the th ings they are buying. This is often an accepted pa rt of the interaction
when rnaking a purchase. What happens in your culture? Are there certain
situations and settings where people are more likely to bargain?

Unit 7 65
 Dilem
ec1s1on
Dilemma: Beauty and business Decision:
Brief
Glow Industries was born when Terri Williamson, an experienced 0 Listen to what David
Californian businesswoman, decided to start her own company Schapiro, a business lawyer,
specialising in beauty products and perfumes. Terri launched a very has to say about this case.
successful line of products under the 'Glow' name, which she sold from
her shop in Hollywood. Two years later, she discovered that hers was no
longer the only company selling beauty products with the 'Glow' name.
jennifer Lopez was launching her own line of beauty products: 'Glow by
JLo' through Sweetface Fashion. Terri immediately decided to take legal
action against Sweetface Fashion to stop it from launching its products
on the market.
For both businesses, the consequences of prolonged legal action could
be serious: Glow Industries may lose its access to the mass market and
Sweetface may have to review its international plans. What shou ld they
do?

Task 1
Before further legal action is taken, lawyers representing the two
companies have agreed to rneet to see if they can reach a negotiated
settlement. Work in pairs. Student A, you represent Sweetface. Turn to
page 137. Student B, you represent Glow Industries. Turn to page 138.
Prepare a list of your objectves for the negotiation.

Task 2
Meet and conduct the negotiation.

Task 3
Join another pair and
compa re the outcomes of
your negotiations.

Write it up
Write a short memo to
your staff nformng them
of the outcome of your
negotiation. (See Style
guide, page 24.)

66 Unit 7
PA~E. 69

Adjedives and adverbs

PAGE 71
 Preview Brand awareness
Discuss the following questions about the global brands shown.
- What emotions and feelin gs, e,g. desire, satisfaction,
importance, do you associate with each b rand?
- What image, e.g. prestige, reliabilty, exclusivity, is each
~QR:AL b rand trying to convey to the public?
PAR iS

SONY

Listening 1 0 Listen to a brand m an agement consultant talking about why a

brand can lose its image. Which of the reasons below does she
mention? Can you think of any other re~sons?
I counterfeit products weakening exclusivity image
2 giving licences to too many retailers
3 choosing the wrong people to endorse the product
4 stamping the brand name on too many and too diverse products
s poor pricing policy, making brand s too cheap

Reading The luxury business

O Read the following sentences taken from the text on the opposite
page. lhen read the text and complete it with the sentences.
A strategy to increase distribution expanded the market to thousands of
retailers, detracti ng from the brand's essence of exclusivity.
2 Fashionable celebrities such as Grace Kelly and Audrey Hepburn were
counted among the enthusiast ic collectors.
3 lts watches alone number more than a dozen d istinct models and are
exclusive items, generating millions in revenue.
4 The Gucci group was amongst those reporting far fewer profits during
that period.
5 The two men responsible for this reviva! were the creative d irector Tom
Ford and tbe presiden t/CEO Domenico De Sale.

IJ Read the text again and put these events in the correct order.
a Guccio Gucci's grandsons took over the business.
b The rich and fa mous started buying the brand.
e Guccio Gucci d ied.
d The first shop opened in Florence.
e A new image campa ign was launched.
f Stores opened in London. and Pars.

68 Unit 8
 The name Guccl con jures upan
image o( exclusivity and prestge, an
ltallan brand of quality. As one of the
world's leadlng purveyors of personal
luxury goods, Guccl stands for more
than just fine quality shoes o r suils. The
Cuccl Group is now a multi-brand
conglomerale. wlth a collection of high-
fashion brands like Balenciaga Stella
McCarlney, Boucheron and Yves Saint
Laurent. YSL Beaut, Bottega Veneta.
Bdat & Co and Sergio Rossi under lts
finely crafted umbrella. Gucci sells lts
brand of leather goods. shoes. clothes.
ties. scarves and jewellery in directly
operaled stores arou11d the world as
well as outlets licensed to sell their
products (a) _ _ __
2
The beginnings of the Guccl empire
go back to Florence. l taly. in 1921 . when
Guccio Gucci opened an exclusive
leather shop He understood the
importance of building a reputation for
his brand and did so by putting an
identifier on his special edition
creatlons. He concentrated on
producing fabu lously hlgh-qua lty
products, makfng the rn status symbols
synonymous wlth luxury.
} A~er Gucci dled, his sons Aldo and
Rodolfo took over the management and
led the brand to iconic status in the
1950s. They succeeded extrecnely well in
promoting Lhe brand lo the rich and
famous (b) The Guccis took
note of Lhfs popularity and expanded
aggressively, opening stores in
glamorous locations s uch as London,
Paris and Palrn Beach. However. for all
Speaking
Lhe glamour Gucci represented
exlernally. there were increasing
d1sagreements within the lamily. Aldo
and Rodolfo each had two sons who
began pulling the brand n dlfferent
directions in the eighcies, and decis1ons
made about produce distrlbution
affected the brand's reputatlon
(el Eventua lly, retailers
were selected more judiciously and Lhe
brand's reputation returned However,
during this period of disagreement over
distribution the brand wen t from
headlines to sidelines. perceived asan
old slandard in the fashion world
Since then. smart leadership has
driven the Gucci brand to more vsibility
and success Lhan ever before
dJ Tom Ford was
responsible for the design of all product
lines from clothing to perfumes and fo r
the group's corporate mage, adverli sing
campaigns and store design from 1994
to 2004. lt was his elegant vision that
placed ths once staid brand back on
the backs of the wealthy. Known today
as one of lhe world's leading visionaries
in fashion. Ford has accumulated a
greaL number of accolades on his way
to the top
~ ltalian-born attorney Domenico De
Sole was the other half of this dynamic
duo By i ntegratlng elaborate
Answer the questions.
How did Gucci's founder establish a reputation fo r quality?
Why <lid the brand's image need renewing? How was this achieved?
Wbich of tbe problems in Listening
Which current stars would you choose to endorse Gucd today? Why?
advertising and communication
campaigns with a markeling strategy
that placed the focus on Gucd's core
leather products and ready-to-wear. De
Sole broughl the much needed
attenlion back to the quality of the
brand whle :.treamllning the back-end
of the business and expanding the
network of directly operated sLores. He
has received as many prestiglous
accolades as Ford. and hls effo rts were
recognised by the Eu ropean Business
Press Federation. which selected Gucd
as European company of the year from
among 4.000 other companies_
6 Strong leadership andan 1mage
revamp literally breathed life back into
the Gucd brand C::ven so. the rocky
economic climate of the past few years
has made fo r a really bumpy ride for the
lu.xury goods markct (e) _ _ __
Despite the numbers, however, ana lysts
stil l cite Gucci as one of the stocks wi th
the greatest upside polenlal . .giving it
plenty o room ro r further development.
Glossary
staid sober and unexciting
accolade prize, award
back-end behind the scenes
administrative activities
J has Gucci experienced?
Unit 8 69
 Vocabulary Find synonyms in the text for the following words and phrases.
l {para 1) providers, suppliers
2 {para 1) corporation, group of diverse firms
3 (para 1) stores, points of sale
4 (para 2) signs of importance or wealth
5 {para 3) attractiveness, beauty
6 (para 4) commercial, business
7 (para 4) plans of action, strategies to succeed
8 {para 6) renovation, improvement
El Study the following sentences taken from the text and match the
verb-preposition combinations in bold with their meanings (1-3).
The name Gucci conjures up an image of exclusivity ... (para 1)
... Gucci sta.ndsfor more thanjust.fine qua.Lity shoes or s1.tits. (para 1)
He concentra.ted cm producingfabuLously high-quaLity products ... (para 2)
1 represent 2 give attention to 3 make one think of

IJ Complete the verbs with the followingprepositions. Sorne verbs

can be followed by more than one preposition.

to (x2) of (x2) in(~) from (x2) on

J re fer 4 benefit 7 consist

2 approve 5 belong 8 depend
3 believe 6 result 9 succeed

Practice Complete the article using your answers from exercise l, and the
appropriate form of verbs and prepositions from exercise 3.

E
ric Bemot boughl a lroubfed Spanish confectioner in !he J 950s. He
1
beleve4 In the importance of crealing one brand and knew that
success ultimately 2 ellminating the majortty of the
company's 200 products to coneentrate on building one tnJ/y globdl
1
product- a lollipop, or candy on a stick'. This innovative product alfowed
c~ildren to eat candy without getting their hands ane clothes dirty. Suddenly
Ene Bemot was on the way to becoming the world's leoding
3
of candy that purents worldwide would
4
their children eating!
His strategy had severa! phases, ond the first one s_ __ __
ffndlhg a natne fhat would appeql to children everywhere and
then promoting it worldwide. He chose Chupa Chups (ftom the
Spanish chupar. to suck) ond then osked the famous surrealst
painter Salvador Doli to design a colourful logo to aecompany
the marketing and odvertising 6 The preduct's

reputation soon 1 his coreful positioning tactics.

and withih five yeors his famous i0flipops were befhg sold in 300,000
e throughout Spaln.
Bernat' s company now sells tour billion follipops a year rn 170 counfries
around ihe world ond has 9 creatfng o truty global brand;
They even hope to win the war on sugar and hove started a com
10
of the image of their candy - the lotest product undef
study: lollipops thot whiten the teeth and prevent caviffes.

70 Un it 8
 Language check Adjectives and adverbs
Study the examples taken from the text on page 69, showing
adjectives and adverbs used in different ways.
1 AdJectives
after the verbs be, becorne, seem, appear, Loot~,feel, remain
Tom Ford was respo11Siblefor the design of a.H product l.ines ... (parn 4)
in comparatives and superlatives
He has received as many prestigious a-ccolades as Ford ... (para 5)
... one of the stocks wifh the greatest upsid.e potential ... (para 6)
2 Adverbs
after verbs
The Guccis took note ... and expanded aggressively ... (para 3)
befare adjectives and other advetbs (as intensifier~)
De Sole brought the much n eeded attention back ... (para 5)
befare past participle adjectives to show how sornething is done
... under its finely crn..fted umbreLla. (para 1)
... in directly operated. stores a.round the world ... (para 1)
;:e For more information, see page 160.

Practice Find the adjectives in the text on page 69 that describe the
following.
1 Gucci's position in the luxury goods market (para 1) leading
2 the first Gucci shop (para 2)
3 the type of status Gucci acquired (para 3)
4 Ford's vision {para 4)
5 Gucci's promotional activities (para 5)
Find the adverbs plus the adjective or adverb they intensify in the
text on page 69 that describe the following.
6 the prnclucts he focused on (par.a 2)
7 how Gucci's sons marketed the brand (para 3)
8 the ride this market has had recentJy (para 6)
El Complete the article with the appropriate form of the words in
brackets.

Componies in the ('high) hehly competitive _ _ _ and they ore positioned to beot Motorola
electronics industry ore diseovering something as the secGnd biggest monuodurer of mobile phones.
(2surprise) ond c.urious: bronds motter afmost Somsung has preved thot o combination of clever
as much os excitlng new technology. Thfs has been brand building ond (1good, design) _ _ _
(3cleor) demonstro ted by Samsung products can work mirocles. They hove understood
Efeclronics, which mode o (4dromotic) new thot o brand without good products will tose popularity
5
entry nto the ( particular) diffcul1 digital (11incredible, rapid) , but the (1 2omaze)
market this yeor. _ _ _ thing is that the opposite is olso true. The
Once best known for rhicrowove ovens, it has market Is (13crowd) with firms wlth -0 few
tronsformed itself into o (6reol. cool) brand greol prbducls, but weak brands. To succeed and
ond is (7s1,Jccess) selllng (8style) _ _ _ grow os (1dfost) os Samsun,g has requires a
ffat-screen TVs. digital c-0meras ond mobile phones. strong brand. os wefl os ('5true, innovote) _ __
Their soles figures have done {9inrease, good) products.

Unit 8 71
 Ustening 2 0 Corporate brands
D Listen to an interview with a corporate identity and brand asset
manager. Are the following statements true or false?
Brand managemen t and corporate identity management present two
very d ifferent 'faces' of the compa ny.
2 Pricing is tbe most im portant part of establishing a brand id entity.
3 Suivival without a clear brand identity is perhaps possible if there is a
lack of competitors.
4 Companies need t o check corporate bra nd effectiveness every year.
5 Keeping a low corporate profile always protects brands fro m corporate
seandais.

fl Listen again and take notes in order to answer the foDowing

questions.
1 What exactly is meant by the 'face' of the company?
2 Why is pricing so important?
3 How is bra nd effectiveness cbecked?

Speaking Can you think of any examples of a company or brand suffering

from bad pub1icity? Did they suivive, and how?
Would you contirtue to buy your favourite brands of clothes, sports
shoes or perfume if the company that made them was found to be
employing children in sweatshop conditions? Why / Why not?
Do you know who owns the following global brands?

Christian Dior
Check your answers by looking at the company websites.

Writing Write a formal email to a colleague in marketing, telling bim/her

about the content of the interview you heard in Listening 2. Explain
that you agree with what was said and recommend that your
company takes its corporate and brand identity more seriously. (See
Styte guide, page zo.)

72 Unit 8
 Career skills Dealing with people at work

In an ideal world, co-workers are always professional, positive and efficient.

Unfortunately, there are exceptions and you have to develop strategies for dealing
with difficult situations and difficult personalities. This requires inteLLigence, tact
and professionalism. Look at th~ following useful phrases for dealing with people.
a Before we start, I think you should know ...
b This is good - it just needs a few minor changes.
e Let's work on this together.
d I wanted to tell you before ahyone else does - we're planning to ...
e I like this idea, but it's not what we need right now.
f We're ali ultimately working towards the same thing.

Which of phrases a- f would you use in situations 1- 3?

To develop good interpersonal skills and avoid problems, co-workers shou ld
always:
1 try to anticpate potential conflicts
2 find common goals
3 be as positive as possible

Listening 3 e Listen to an extract from a dialogue where people didn't lhandle a

situation in the best way. Answer the questions.
J What sh ould the man have done before the meeting?
2 Which of phrases a-f above"Could he have used?
3 What did the woman fai1 to see?
4 Which of the above language cou ld she ha ve used to i m prove
communication?
Speaking Work in pairs. Take the role of each person in the dialogue above.
Role--play the conversation that they should have had before the
meeting. Avoid problems by using the appropriate language and
tactics.

Work in pairs. TeJI your partner about problems you've had

dealing with difficult people and the solutions you've found. Discuss
what other possible ways you could have deaJt with the
problems/ people.
Can you think of other difficult personality types and ways of dealing
with them?

Culture at work Interpersonal relationships

In sorne business cultures it is considered important to have close
interpersonal and relatively informal relationships with co-workers.
Coll eagues are encouraged to socialise together, and ali levels of the
hiera rchy can mix in a social environment outside office hours. ln other
cultures, formal relation ships are preferred and there is nevera hierarcrucal
mix at social events. Which corresponds best to yom culture? How could
different attitudes cause problems in a multicultmal situation?

Unit 8 73
 Dilem
ec1s1on
Dilemma: The two faces of Burberry Decision:
Brief
Burberry, 'the originaJ -British luxury brand', launched its first lago in 1900 0 Listen to what a brand
and regigtered the gignature check pattem as a trademark in 1920. ft was asset manager tbinks about
an established luxuiv brand for wealthy middle-class tons.e.rvatives far this issue.
severa! decades, hut sales declined in the 1980s as the brand began to
appear old-fashioned. Then in the 1990s, CEO Rosemary Bravo revamped
its image, repositioning the Burberry brand in Jine with its luxury and
exclusive heritage. Ads were designed to depict the essence of the 'new'
Burberry, giving a modern feel combined with classic British elitism. This
marketing strategy reached the intended target, and even !Prince Willam
has been seen at many events wearing Burberry. However, the brand has
also become popular with hip-hop artists and footbalJ fans. The question
now being asked by business analysts and journaJ ists is: 'Jf Burberry
embraces the new audien'ce, will they lose their core customers?'

Task 1
Read below the options open to a brand facing this type of positioning
dilemma and discuss which ones you agree/disagree with. Can you think
of other arguments?
The case fo r extension The case against extension
lncreased sales from the 'unintended' marl<et are We should ignore these new customers and reinforce
doubling turnver. the 'tr<lditional and classical' image.
Our brand is ranked eighth on American A British newspaper has runa potentially damaging
Brandstand for 'most mentioned brand' in popuJar article about 'design hooligans', describing the bad
song lyrics. behaviour of British football fans who were wearing
We shoulc:l recruit hip-hop artists whose fans are designer brands.
already brand enthusiasts; to endorse the brand Fashions chartge quickly .in the world of hip-bop
officially. and rap. We should concentrate on our Joyal
Young customers will stay loyal to the brand customers, who don't change brands as easily.
throughout their lives, while saJes to ageing If young, less wealthy people buy our brand, it
traditional target custorners will fall off. should be for the same reasons and for the same
brand image as our core customer base.
Task 2
You are the marketing manager of a company facing a similar diJemma. Decide
which action th company should take. Prepare fully-developed arguments from the
notes on page 139 and be ready t present your arguments at a meeting.

Task 3
Work in small groups. Hold a meeting and dedde which course of action the
company should take.

Write it up
You are the marketing director of Clearly Chic. Write a memo to all the staff
informing them of the decision that has been made concerning their present
dilemma, and explaining why this decision has been taken. (See Styl guid, page 24.)

74 Unit 8 '( ~
 Freud, folly and flnance
PAGE 77

Emphasis
PAGE 80

Dilemma: Your money or your reputation?

P.AGE 82

M0st business ventures start as investments by enttepreaeurs, who ho.pe to

make finqncrial gains or retun:is on investment (ROi) . Money far a new
business ray come from banks, or frem venture tapitalists and business
angels, who also give entrepreneurial advice. As businesses grow, they
invest in their awn projects in order to increase profits and dividends for
sh~reholders. Sorne businesses such as insurance companies and investinent
oahks employ prafessional fund managers to 0versee investment portfolios
of different types of shares (US stock) and bonds on the glo.bal sto~k
111arkets as their main profit-making activity. Although all businesses aim to
make a profit, sorne org.anisatfoms think it is important only te make ethical
investments, possfly with lower returns, in projects that, far example, don't
harm th~ envirnnrn:erit.
 Preview Investor profiles
D Work in pairs. What should a business person be in order to be
a successful investor? Choose the five most important characteristics
from the list. Compare and discuss your choices with another pair.
reckless pessimistic opinionated optimistic
cakulating ambitious determined analytical
opportunistic intuitive focused
greedy flexible prudent

D Read the profiles of four famous investors. Choose two adjectives

from exercise I which best describe each of them.

the legendary stock trader, who was
known as 'The great bear ofWall Street'
He took big investment risks but always
analysed the market carefully.
He gave his opinion rea~ily but didn't
always follow his own advice.
He once said, 'Aman must believe in
himseJf and his judgement if he is to
make a living in this game.' Whenever
hls judgement failed him, he incurred
huge losses.
known on Wall Street as the greatest
investor ever
H~s performance over flve decades has
never been bettered.
His best deals were in low-risk, blue-
chlp stock with such giants as Coca-
fola aod The Washington Post.
He advises investors to buy and hold
and never act rashly.
the trader who caused ttie bankruptcy
of Barings Bank
He specialised in futures (an
agreement to buy or sell something in
the future ata specific price) and
options (a contract which gives you the
right but not the obljgatlon to perform
a transaction ata specified time).
Not only did he lose money from the
start but he also systematically
increased the risks.
He falsifted accounts and lost a
staggering total of:f208m.
co-founder of Microsoft with Bill Gates;
his first investment earned him
$17 billion!
He then became an angel, investing in
movies, 1960s art, rock music and space
travel.
His companies are so innovative that it
is still hard to say whether they are
head-in-the--douds losers or
far-sighted pioneers.
He once said,'The advantage of havlng
the resourm 1have is that you can be a
more patient investor.'

Speaking If you were making investments, which of the famous investors

would you be most like?

Reading Investor beware!

D Look at the title of the text and the cartoon on the opposite page.
What do you think the text is about? Read the text to check your
answer.
Which of the following adjectives best describes the average investor'?
pessimistic flexi ble irra tional wise
76 Unit 9

'
lnvestor beware!
Freud, folly and finance
Human intuition is a bad guide to handling risk
PEOPLE make strange decisions
about the future. The evidence is ali
around, from their i nvestments in the
stock markets to the way they run tbeir
businesses. In fact, people are consis-
tencly bad at deang with uncertainty,
underestimating returns from sorne
investments and overestimating others.
Surely there must be a better way than
using intuition?
1
Daniel Kahneman, a professor at
Princeton, was awarded a Nobel prize
in economics for his work in the field
of behavioural finan ce, a science which
applies psychological insights to eccr
nomics. Today he is in demand by
investors and Wa11 Strect rraders. But,
he says, 1here are plenty of others that
still show little interest in understand-
ing the roots of thei r poor decisions.
i What surveys have shown is that
people's forecasts of future stock market
movements are far more optimistic
than past long-term returns would jus-
tify. The same goes for their hopes of
ever-rising prices for their homes or
doing well in games like the lottery or
poker. They seem to ignore evidence
so...JX> gou
CO~Sl'DER
gc:>llRPELF
R.ESP0Ni)l}}1E
WllH ?
MO~EH.
and hard facts and prefer to trust their
inner instincts.
Not onJy are first encounters deci-
sive in judging the character of a new
acquaintance but also in negotiations
over how much money to invest in
new ventures. The asking price quoted
by the seller in a property sale, for
exampJe, tends to become accepted by
ali parties as the price around which
negotiations take place, whereas this fig-
ure could be at best simply inaccurate
or at worst completely dishonest.
However, people find it difficult to
quesrion their first impressions.
5 Similarly, no one likes to abandon
the generally accepted idea that the ear-
lier a decision has been taken, the hard-
er it is to give up. Flowever, companies
really shouJd decide earl ier rather tban
late.r to cancel a failing research project
to avoid wasting money. The problem
is they often find it difficult to admit
they have made a miStake. This human
weakness can cost them a lot of mney.
6 Another problem is that people put
a lot of emphasis on things they have
seen and experienced themselves, which
Glossary
folly foolishness, lack of good
sen se
myopia short-sightedness
boom years years of econo mic
prosperity
simply may not be the best guide. For
example, somebody may buy an overval-
ued share because a relative of theirs has
made thousands on it, onJy to lose
money. In finance, too much emphasis
on informarion that is easily available
helps to explain the so-<:alled "home
bias", a tendency by most investors to
invest only within the country they live
in, even though they know that this is
not responsible behaviour and that
diversification is good for their portfolo.
7
Fear of fuilure is another strong
human characteristic, which may be
why peopJe are much more concemed
about losses than about gains. lt is this
myopia in the face of losses thar
explains much of the irrarionality peo-
ple display in the stock marke1.
s More information is helpful in
making any investment decision but,
says Kahneman, people spend propor-
tionally too much time on small deci-
sions and not enough on big ones. They
need to adjust the balance. During the
boom years, sorne companies put as
much effort into plann ing their
Christmas party as irno considering
strategic mergers.
9 Regretting past decisions js not just
a waste of time; it also often colours
people's perceptions of the future. Sorne
stock market investors rrade far too fre-
quently because they are running after
the returns on shares they wish they
had bought earlier. Rut at least when
businesses try to assess their risks, they
have to worry on ly abou1 rnaking
money. Govemments, on the other
hand, face a whole range of conf:licting
poUtical pressures. This unfortunately
makes them even more likely than busi-
nesses to take irrational decisions
Unit 9 n
 El Read the text again and match headings a-g with pa.ragraphs 3-9.
a Misplaced priorities
b Counterproductive regret
e rnitial feelings
d Being too cautious
e Being over-optimmstic
f Winning and losing
g Accepti ng when you are wrong
IJ Answer tbe questions.
l Where can we iind evidence of people's bad decisions about the future?
2 What is beha:vioural fi:nance?
3 Why don't companies abandon projects on which they are losing
money?
4 Why is .it irrational t invest ehly in your own country?
s Why are people more concerned about losses than gains?
6 How do.es regretting bad decisions affect stock market investots' futu re
decisions?

Speaking What kind of risk taker are you?

You have just inherited $100,000 and you want to invest it for five
years. Which of the following appeals to you, and why?
- a bond issued by an organisation or a government, which is guaranteed
and will payyou an i.nterest of 2 per cent per year
- a junk bond (high-risk bond) that could earn you 20 per cent per year,
but there is a high risk of not earning any interest at ali
- blue-chip shares which will almost certainly paya mnimum of
4 per cent even in peor economic conditions
- high-tech company shares with high-risk but high-retum potential of
10 pet cent per year
- a new business venture offering a position on the board anda 5 per cent
share of potential profits; impossible to forecast possible returns
Whicb of the above do you think would have appealed to the
famous investors on page 76?

Vocabulary 1 Match the words from the text with their meanings.
returns (para 1) a a range of investments
2 traders (para 2) b to estimate
3 diversification (para 6) e people who buy and sell stocks and shares
4 portfolio (para 6) d varying investments
5 losses (para 7) e money earned on investments
6 to assess (para 9) f money lost on investments

78 Unit 9
 Vocabulary 2 Prefixes
Look at the following sentence from the text on page 77. Think
about the meaning of the prefix over. What does ovenialued mean?
For exampLe, somebody may buy an overva.lued share beca.use a relative of
theirs has ma.de thousa.nds on it ... (para 6)
fl Match the prefixes (l-6) with their meanings (a- t).
1 post a between / among a group
2 pre b more than one / many
3 muJti (. later than / after
4 bi two / twice / double
5 nter (' before / in preparation
r
6 under notenough
Add prefixes from exercises 1 and 2 to the foUowing to make new
words.
emphasise estmate lingual value national arranged date (v) spend

El Make a list of other words you know with the prefixes above.

Practice Complete the article about art as investment with the appropriate
form of words from Vocabulary l and 2.

le b dfficult to 1 overempha6it?e thc risk invQ l~ed 11

buying fin.e art as un investment, even i( investars 9ftcn
clam that they are making greater returns and getting
more pleasure ITorn rheir Van Gogh rhan from i:heir
;qu11:y fund. lt rnay be a good opportumry for
- , but it is highly unl1kely that they are
n1aking more money. Art is Fre'tuemly l _ _ __ _
ami rh11 industry is inff):mouli for
inaccurarely.
4 valu: ;
Thc main attraction of buyin~ on the ~ il .
market, apart from che pleasure of having the worl[s
around, is to vary che invcstmenr 6 _ _ _ __
However, mosr businesspeople- are ru1 off by the
uncertainty of wherhcr the wo(k will increase in valuc or
not. For exal'J\ple, <1 Jnpanese businessman definitely
7
when he paid $82.5m for Van Oogh 's
Ponrmt of Dr Gachet, whicb has since sold for an eig1uh
of the pnce. But: despitc ll likc the:.e, sorne
peoplc bave made a fortune on works such as Egon
Schiele's paintng of Krumau (shown right), which sold
at Soth,eby's for .t 12 .6m in 2003.

Speaking Discuss the pros and cons of investments such as art, antiques, rare
books and wine. Prioritise them in terms of hlghest/lowest risk.

Unit 9 79
 Language check Emphasis
0 Study these examples taken from the profiles on page 76 and the
text on page 77. Hew would these. sente.nces be written if the writer
didn't want to emphasise them?
a Not on1y did he Lose money from the sta.rt but he aLso systematically
increased the rishs. (Nick Leeson)
b What surveys have shown is that people's forecasts offuture stock
ma.rket mavements are ... {para 3)
e lt is this myopia in the fa.ce of losses that explains much oj tiie
irrationality ... (para 7)

O Study these examples of invert.ing the auxiliary verb and subject.

Rewrite the sentences without emphasis.
J On no account should you invest in such a risky business.
You should on no account lnvest in such a rlsky business.

2 Rarely has so much money been lost by one person gambling with h.is
companys assets.
3 Never has a work of art risen in value by so much in such a short time.
4 Only in exceptionaJ circumstances can a.n investor take high risks and
sti 11be succes.sful.
;:ri For more information, see page 161.

Practice Rewrite the following sentences using inversion.

1 Investors have riever hd to work so hard to make a reasonable return.
2 Forecasts of how the markets will change are rarely 100 per cent accurate.
3 People are not on ly afraid of losing money but also of appearing stupid.
4 Theyshuld n1t have expanded their portfolio on any account, because
their track record was so poor.
5 People should only Usten to fi nancia! advisers if they really trust them.

Listening 1 E) 0 Listen to ali intetview with Bradley Hopper, founder and CEO of
a. US casual clothing manufacturer, and answer the questions.
1 Why did Hopper go into textiles?
2 What was his main goal?
3 What does he say ah.out the competition?
4 What does he say about environrnntally friendly products?
5 What are his future plans?
El listen again and change the sentences to what he actually says.
t 1 was intrested in clothes more than anything else.
2 Profit drives me.
3 Making money has to be your first priority.
4 Knowing where to cut costs and where to invest keeps me one step ahead.
5 The hands-on part reaUy interests me.

IJ Practise saying the sentences, paying particular attention to the

words which are emphasised.

80 Unit 9
 Career skills Prioritising

S~tting priorities mea ns clecioi ng what it is you most w"nt to aehieve and then
organ?inQ your time and activiti!'!S in the best possible way to reach those goa ls
and targets. Look atthe following phrases, which can be useful when prioritising.
1 a This is abslutely imperatiV:e. -e. I ought to do this urgently.
No need to do this. f Forg,et abo1.1.t that.

U Let's get Susan to db that

This might be usef/Jl.
g T/1at's a job far Morco.
h The next step should be ...

Tbe following questions are helpful to ask when prioritising. Match

phrases a- h with the questions.
1What is absolutely essentia l for me to do?
2 What is a good idea but has no negative consequences if it isn't done?
3 Whicb task(s) can I d elegate and assign to someone else to do?
4 Whicb task(s) can I eliminate because they are really not urgent or
relevant to my specific goals?

Speaking Work in groups. Your project team has brainstonned ideas for
setting up a new ethical investment fund. Prioritise the foUowing
tasks that you have come up with.

Establish a ltst of ethical companies to propose to our clients.

Meet the CFOsof companies on our 'sustalnable company' list.
Attend a cbnfe.re.nee or'l ssta ihable 'develpment in Frank:furt next mortth.
Met jour'nalists to giv.e inferviews about our new soeially responsible investment product.
Come up. with criteria to evaluate-companies according to financial, soeial and
epvironmental performance.
Re.c;ruit tWe new specia lised f4nd managers to mana9e the nev-i portfolios.
Prepare a orochure tosend tff existing clients lbout the hew product.
~~~~~~~

Listening 2 0 Listen to the team leader summing up decisions taken so far at

the prioritising session. Which task on the list does he say is not
essential, which is impractical and which is of vital importance?

11 How does this compare with the way you prioritised the tasks?
Writing Write a memo telling management what the plan of action is for
the new service. (See S4Jle guide, page 24.)

Culture at work Status and society

Sorne cultures are money driven and it is perfectly acceptable for businesses
and peop le to measure their success in terms of how rich they are. ln other
cultures, priorities are d ifferen t and busnesses ca n be judged on such
things as the quality of their prod ucts and the c0nditions they p.rovide for
thcr employees. What is common jn your countzy? How might th is
difference cause misund erstand ing in multicultural teams?

Unit 9 81
 Dilem .... - -.-
ec1s1on
Dilemma: Your money or your reputation? Decision:
Brief
Two young Californian entrepreneurs, Steven Evans, a.successful Turn to page 146 to :find out what
businessman, and his younger brother Max, a recent MBA graduate, have choice the now successful fouader
just inherited the family fortune and have decided to invest in the of American Apparel made when
manufacturingsector. They plan to supply the European and US screen be was faced witb tbe same
print market with mass-produced, blank T-shirts. Their rivals include giants dilemma a few years ago.
like Fruit of the loom, but they feeJ confident that there is. room for
another cornpetitor in this highly lucrative but risky sector. They both agree
that their main goal is to establish a successful business as quickly as
possible, then sell it and reinvest
Max's business plan
the profit in otber ventures in B~ manutacturJng;site basect 1
Califorriia . n
order to bui ld upa much larger St even's business plan
SUll~ l:lp aA etfiicaJ !'lmP/oyer"
1
Set up factorl~ in sonth east~sia
fortune to leave to their own MnimllID wqge in US $ 89 3 per . re:>utafierl and -establlsh a name
chi ldren. However, they have very montb + liability insurance + he.alth basgct eri lntegrlty !n0 fEi.i!nesS:. -
different ideas on how best to St Ul) tearns_te reduce OOtd
msurance. . ~"' ..
increase turn aWnut1mear.id rn,
redt1
achieve this goa L Read their Bigb staff t;rtrnove"1'. in OS dueto staff tmover. ' ee
respective business plans. monotonous an.d uncomfOrtable
oature of tbe j0b. ~aintain .control over quality
Sell to b1g, well-khwn br:ands .....
Task 1 Reduce rlskot' ~d.reputation .f<><:> t 1 .v 11QS
:--,..r @ ~OOsurn~ top~ fl'lvestlgations
Pay more tbao ro.inimum w~e o1to tnerr supp/iers wlll ~enWnce them
Work in pafrs. Role-play a
reguirement ($18.53 inBaogl~desb to ~l' r;nore. M!TJY. b[:ands have: been
discussion between the two and $ 6 3'.?S ln Goan.dong provmce dam<!QeJ;I by M~ative ~ubtiqify lately.
brothers as they explain their
business plans to each other.
tnCb:ina). Ch~ hlgher Pl'ices
Allow tr~de nnious and make : f).e<JR!e wfff ~ay more tor <:uaJity.
conditions relati~ely better. fii@her PJ.:fits wili -ffSet XJost Gf
Task 2 Get a competitive e(lge .~ llVesting In salarles ald oonditions.
join .a nother pair and discuss as a Rasure we stay iJL business by bcitig ~~ in adVerttslng ..
group which business plan has the able tooffer bighlY competi.tive l:Bu1l.dfn~ a good ~PJ.Jtation and bfana
best chance of succeeding. Prepare prices. image isa.n!P~ long-term
Aifoid dsk, copy su.cc~ssfr1l 11'!Veslrtfent. Cori~mr :!tttules ar~
to tell the class about both p lans,
saying which is better, and why. competitors. d1~1n? - lhe 'futurs 'is '.etlltleal
Minimise advc1:1tisblg GIOthrii.g,. ComPfitors wifl h'ave to do
Consider what is: of vital thssamesoorier or later:
I.of<!>l."JnUg potential customers of
importance to the success of a Nothing . ...
qnaJity to justify h\gb priees would ,ven.oi.red, nothing ga/necJ!
business; a nice idea but not
require a large communication
essential; impractical for the
moment. budget. .
No guarantees that thls can:ipaign
would w~r:k.
Task 3 It "'nll take a ton,g time to uiake real
Present your ideas to the class. i:eturns.
& tkr safe tbansorryf

Write it up
Steven or Max has sent their
business plan to your company,
looking for financia! backing.
Write a letter giving your response
and the reasons for it. (See StyLe
guide, page 16.)

82 Unit 9
Language check
The passive
Underline the passive forms in italics that
are incorrect. Correct them.
The new legislation is to introduce sx
montbs from now.
2 Lawyers for the defence say tbey are not being
givin.g a fair chance to defend their client.
3 lt now looks as tbough an agreement wiLt
reach and there is a good chance that tbe
accusations wiU be wit1ul.rawing.
4 Clients are defended by their lawyers.
5 All evidence mu.st produce in court.
6 Although sorne litigants had not infor>ned of
the changes, most were aware of the new
procedures.
7 How m uch will the company ash to pay the
victims in compensaton?
8 The jury is going to be selected one month
before the trial begins.
9 The plantiff claims that his reputation has
da.maged.
10 Thecourts ma.yforce by the government to
reduce the level of damages that ligants
a.wa.rd.
Adjectives and adverbs
Complete the sentences with one word from
each box.
surpr-isingly particularly highly much
clirectly clearly
difficult Little sophisticated cheapel'
operated demonstratea
Perhaps the corupany doesn't want any
publ icity - so far _ _ _ _ _ __
information has been given to the press.
2 The Jatest devices use and
nnovative laser tech nology.
3 The marketing manager said that cond iti.ons
have become as a result of
cheap imports.
4 Falling prices of sorne components mean that
the uew models will be - - - - - - -
than initially indicated.
5 Most of the company's oytlets are
_______ by franchisees in eacb of
the main national markets.
6 The success of the new brand is
_ _ _ _ _ _ _ in this diagram.
Emphasis
Rewrite the sentences starting with the words
given.
It's the first time I have ever seen a company's
shares coll.apse as fast as this.
Never _ _ _ _ _ _ _ _ _ __ _ _~
2 Private investors are hardly ever able to match
the performance 0f professional fund
managers.
Rarely _ __ _ _ _ _ _ _ _ _ __
3 lnvestors sboulcin't on any account concentrate
a.11 their shaTeholdings in one business sector.
On no account _ _ _ _ _ _ _ _ _ __
4 Today, rd like to focus on how to identify stock
matket opportunities.
V\That _ __ _ _ _ _ _ _ _ _ _ _~
5 ln the long run, the return on an investment is
the most importa nt thing.
lt's _ _ __ _ _ _ _ _ _ _ _ _ __
6 The psychology of investors is the thing that
has always interested me most
VVh at~~~~~~~~~~~~-
Consolidation
Choose the correct forms of the words in
italics.
Johnathan Harpe.r 1 has sue.d / has been sued his
previous emp:loyer in a 2highli1ighly unu,sua~ l~ws~t:
he claims Uiat be was a victim of d1scnmmat1on
because he 3was forced I forced to go to work dressed
in a shirt and lie whiJe his female colleagues ~vere
aJtowed to dress more 4 casuallylcasual. When the case
sbrought / wa.s brought to tria! 6more earf)' 1 earlier
this month, Harper 7 was awarded / mvardecl ll 0,000
in damages by the La:bour Tribunal. 8No sooner I
Sooner had the decision been announced tba:nJawyers
for bis ex-employer appealed. However. the eJ'teci'.S of
the decision are already 9tc1 be fell 1 hein$ felt: 10nor
only / only nor are thousands of otber male empJoyees
across the country now saying that they too bave been
discrirninated against., but they are also seeking
compensation.
1 Vocabulary check Career skills
a Put the words in the correct groups. Negotiating
Put the dialogue in the correct order.
image t.arget entrepreneur case idenrit:y
publicity dividends judge risk da mages D a That's a good compromise - you've got a
promotional sue portfolio verdict bonds deal!
D a 1 suppose I could go to f300.
D a How much a re you selling your camera for?
Law Brands Investment
D a That's much too expensive for me.
D b Is it? Well, what price are you prepared to
pay then?
D b f300! No way, but I'd consider f400.
D b l'm asking fSOO for it.

Dealing with people at work

11 Com plete the article with the appropriate
form of word s from exercise l.
Reputation is
easy to lose
The biggest 1 any company faces
are losing its good name and damaging brand
2 Nowadays, 3 pay
close attention to anything that could have a
negative impact on their brand or lead to bad
4 in the media.
Wal-Mart, the giant US retailer, attracted tbe
wrong kind of publicity wben it w~s
s for employing illegal workers rt
had hired through a contractor. The
6 dedded that the company
should be made to pay 7 even if it
didn't lmow tbe workers were illegaJ.
Companies try to protect themselves by hlijng a
Chief Legal Officer to take care of brand and
corporate a . He or sbe is employed
to reduce the chances of the company being
involved in expensive and damaging court
9 , but as Jack Welch, GE's forroer
CEO said, it is imperative to avo.id becoming a
10 for ora victim of criticism .in the
first place.
Find and correct the mistake in each
sen ten ce.
Let's to work on this together.
2 This is good - it just need s few minor changes.
3 I wanted to tell you before anyone else more
does.
4 I like th:is idea, but it's not what we need have
rght now.
5 We're ali ultimately working towards a sarne
thing.
Prioritisfog
Matcb 1-5 with responses a--e.
1 Shouldn't we get those figures done urgently?
2 1 think f m too busy for an appointment today.
3 What would happen if we changed the order of
things?
4 Can we get Frdrique to do that?
5 What should the next step be?
a Well, you should try to make time - you
should n't delegate tbis to someone else.
b Yes, it's not essentia1 that you do it personally.
e 1 think we ought to contact ali our saJesp eople
at this point.
d Yes, it's of vital importance.
e l don't think it would make any difference.
 Fossil fuel dependency
PAGE 87

Conditionals
PAGE.,90

Dilemma: The power of money

PAGE 92

What ;f ,

Keynetes
Ali businesses depend direetly on the
energy sector, which s the largest
single market in the worlq. Sorne
energy companies trade in fossil
fuels (coal, gas and petroleum)
while otners supply electricity or
fuel to end users. Many of the
pr1Jducts, deriv~d from
petroleum, like plastic,
chefllicals and fertilisers, are
essential components 0r
ingredients for 1ndustry. As
petroleum reserves become
scarcer, this drives l.1P eil
prices and encourages
companies and gm.vernments
to develop alternative or
renewable energies.
Inneasing energy
consumption is creating
pollutioh and causing
global warming, a problem
sorne countries are
addressing through the
Kyoto Agreement.
 Preview The energy quiz
Do the following quiz and find out how much you know about the
energy industty. (Answers are at the bottom of the page.)

How many cars were there Which cour1tty in the How much extra energy
in the worfd in 1950? world has the largest will the worfd need by
a 5 mil/ion petroleum reserves? 2030 compared wth 2005?
b 50 mil/ion a Saudl Araba a + 15%
e 15 milllon b Iraq b +45%
e Russa e + 60%
How many c.ars will there
be by 2030? Which of the fo/lowing By how much could the
a 1,000 mil/ion (a bllion) products does not contain energy consumption of
b 200 mil/ion a petroleum-based individual homes be
ingredient? reduced, using existing
e 500 mil/ion
technologies?
a asprin
b chocolate a 12%
e chewing gum b 25%
e 56%

Speaking Work in pairs. Look at the

list of sorne of the things that
people could do to reduce the
amount of energy that they
use. Answer the following
questions.
Which of these things do you
do already?
Reduce the temperatura at home by one
degree or more.
Use public transport instead of using your
car. / Use your car less often.
Change to ftuorescerlt lighting at home.
Recycle all containers and packaging.

2 Which ones would you be Watch less television.

prepa red to do in the future?
3 Are there any other things
people could or should d o to
save energy?
Turn appliances off at the mains instead of
leaving them on standby.
Use ventilation instead of air-conditloning.
Have a shower iostead of taking a bath.

Reading Resource depletion

Annual ofl production
D Look at the chart. What do
you think the two curves show?
Read the text on the opposite
page. Is there anything in it to
support either of the projections
shown in the chart?

Answe~
J9 ~ qv PE 'el q. 1990 2000 2010 2020 2030 2040 2050

86 Unit 10
expect that global oil production could peak
far sooner than predcted. lf that happened,
then gettng at the remain1ng ol would
become ncreasngly d1ffcu lt and expensve.
For an economy stll relant on fossl fuels, the
effects would be catastrophc. As the ol
supply shrinks. essental petroleum-
dependent products (thal is, nearly everything
in modern society, from transportation to
electricity to basic loodstuffs) are rendered
either unavailable or unaffordable. Eventually,
as companies employ even more complex and
developing nations? China 1tself could render gasoline/ gas (US) petrel
the figures obsolete: Chinese ol mports rose
OP.EC Orgahis-ation of Petrolet1m
by 30 per cent last year and the country's
Exporting Cauntries
energy demand is expected to grow
significantly in the next 25 years. To put the factor in include as a crnmponent
size of China's energy problem in perspectve, of aA equatforn
in the last two years its electricity use has
barrel standard unit 0f
ncreased by an amount equal to the total
measuement for selling 0[ (159
power consumption of Brazil.
The consequences of overestimating the
global oil supply would be devastating. In the
best-case scenario, industry would recover by
litres)
~ ' ,, ..
Unit 10 87
 O Each of the following statem ents summarises information
p resented in one of the paragraphs in the text. Match th e statements
with the correct paragraphs.
a If no alternative energy source is found to replace petroleum, many
everyday products wiU become prohibitively expensive.
b Th e potential effects of a shortage of oil could include envi ronmental
damage and the interruption of power supplies.
e Sorne scientists doubt that levels of petroleum reserves are as high as the
petroleum companies have sai d they are.
d New sources of energy will only be seri ously.developed once petroleum
becomes scarce.
e The economies of sorne countries are growing fast and will require
greater quantities of energy.

11 Answer the questions.

1 Who has questioned the validity of the estimates of petroleum reserves? Is
there any evidence to suggest that they are right?
2 Which groups have a vested interest in exaggerating oil reserves, and why?
3 How wouJd a shrinking oiJ supply affect tbe following groups?
a energy companies b consumers
4 What wouJd be the least/most s.erious consequences of a diminishing
supply of petroleum?

Speaking How do you think people will be affected by developments in the

energy industry over the next ten to twenty years?

1 Vocabulary 1 Negative prefixes

The negative prefi xes un-, non-, il-, im-, in-, ir- can be added to certain
adjectives to give them the opposite meaning, e.g. possibLe - i mpossib1e.
O The following are definitions either of adjectives in the text o r of
adjectives that can be made by adding a negative prefix to an
adjective in the text. Write the correct fonns of the adjectives.
1 (para 2) less efficient or more expensive than s'Omething else _ _ _
2 (para 3) not sensible or reasonable _ _ _
3 (para 3) not easi ly found or bought _ _ _
4 (para 3) too expensive to purchase _ __
5 (para 4) not worrying about the potentially'negative results of an action

6 (para 6) dean, not p roducing waste or ha rmful emissons _ _ _

O Look at the following list of adjectives. Which negative prefix is

used with each group?
partial perfect plausible
2 va lid correct significant
3 rational regular relevant
4 existent negotiable renewable
s sustainable economic profitable
6 legal legitimate lite tate

88 Unit 10
 Vocabulary 2 Look at the list of words that can be used to fonn collocations with
the words ol, enerJW and power. Which of these words can be placed
before ol / en~ / power and which can be placed after them?

solar (x2) plant crude policy renewable grid

field nuclear (x2) refinery cut

Practice Complete the a rride with the appropriate form of words from
Vocabulary 1 and 2.

A new report by
GlobalResources The best-case scenario foresees a world of
relative political stability, where
companies to invest In 5 .and other
environrnentally friendly energy solutions.
presents three interna~ionaJ concern about the security of
Governments will be increasngly reluctant to
scenarios for the the M1ddle East region, with lts huae
subsidise 6 , and plans to build
ol fiel@ . diminishes. Petroleum suppl~
1
future of the costly atomic reattors will consequentJy be
are readily 2 to individual shelved.
energy sector.
consumers and businesses. However,
In the ~ors~-case scenario, the ener-gy supply
petroleum companies are torced to focus
. development an.d chaln is d1srupted by regional and local
more on 3
conflcts. Operations become le%
ensure that they leave a positive economic 7
legacy in countries where natural resources - - -- as the cost of insuring
have been depleted. . and other energy installations
nses. Access to energy is limited and marl<ets
A seco~d scenario predicts that energy
contract. Sorne countries become irnport
comparnes from Russia and China will
dependent for their energy and are forced to
become more 4 in order to secure
adopt new 9 to control dG>rnestJc
markets and supplies for their national
consumptlon. Supplles of electrlcity are
industries. This Will make it more difficult for regularly interrupted by 10
- - --

Listening 1 8 Renewable energy

O Listen to an interview with Mia Hansen of the European Energy
lnstitute and answer the questions.
1 What is renewable energy?
2 Is Mia Hansen in favour of developing renewable energies?
3 What is the UK government's target for 2025?

Listen again and answer the questions.

What are the two categories of energy that Mia Hansen talks about?
2 Which five types of renewable energy rely on the sun? Which two don't?
3 What are the two advantages and three disadvantages of renewable energy?
4 What are the four main uses of energy in the UK?

Writing You were a member of the audience at the conference where Mia
Hansen was inteiviewed. Write an email to your company's
managers, explaining the main points that Mia Hansen m ade. (See
Style guide, page 20.)

Uni110 89
 Language check Conditionals
Conditionals are gen erally used to predict the consequences of likely
situations (Type 1) or of un likely or hypothetica l situations (Type 2) or to talk
al;>0ut hypothetical situations in the past (Type 3).
Find an example of each type in the text on page 87.
Mixed conditionals contain two clauses, each of which refers to a different
time (future, present or past).
Which time is referred to in each clause in the following example?
lf there ha.dn't been an oil crisis in the 1970s, people wouldn't be so
worried toda.y.
~ For more information, see page 161.

Practice D Complete the following mixed conditional sentences using the

appropriate form of the verbs in brackets. Does each clause refer to
the future, the present or the past?
1Pollution Jevels (be) wou/tl be lower today if planners had designed
tities for pedestrians and not for cars.
2 I (buy) an electric car alre:ady if they were che:aper and
more reliable.
3 If l (not/have) so much work to finish by this evening, f'd
have gone with you to the conference.
4 lf the government is not pla1mi11g to build new nuclear power stations,
then they (say) so befor.e they were elected.
5 [f nuclear waste disposal (not/be) sucb a problem, then
more power stations would have been built by now.
6 The local people would be much porer if oil (never /be d isrnvered)

O Choose the correct forms of the words in italics.

In theJate 1970s, NASA leidcd to abandon
itS S~p (Space $o1p;, Power) project using
satellires to trllMmit slar energy, frm
$paee. lf !he prbjectQad s.uc:t~ded)f
succeeded, many energy- speciali.sts and
govemment pJanners 2wo4ldt:wiff be le'.Ss
worried than they are today; But it didn't.
@onstruefing tbesatellite " w&uld ha\le cnr;r.
would cosi $'78 billion and lt 4wuz (a/;e
wou) nave taken 3 years to instan it in
Sp_l!Ge.
NASOA, the Japan~e space agency. :118$
now raken up the cb.allnge an~ is eurrently
.doing; its own researeb. inro a similar syst~.
TheiT soi.e nfists are eenfident that if
everything sgoe,s. I lia.r gqne act ording to
plan, they ~wo1~l(J1will be abJe to ffiake their
fusr sa1e11ite powr tranitrnis~oo to Earth
before 2025. Bnt rransfoa:ili~ ~olarenergy to
tlie planet by satellite won' t be easy. In fai':t,
1f e~r launch systems forl>pace vehicles
1
~re. 11or I wlll 11ot be available in theo n~
future-, nhe cgs t 0f tr:ar1Sp0rti ng and
lissembling ev~ .a silllpl~ system
8
Mlllwo"l remain proljibltive. Jfow~:vei:,
.pne thig is cJeat;: if lhere 91'(,l~n 'tfiSn 11 a
slight chance of , m~ng the !&stem w.ork,
the ~apanes 10 would fl.M aye irive:;ted / Will
not bwest'SO much money.

Speaking Make notes about something you planned to do in the past but
weren1t able to do, and something you dream about doing now but
can't. Discuss the situations with a partner, usng appropriate
conditional forms.

90 Unit 10
 Career skills Problem-solving.

When a problem surfaces at work, it is important to identify its source and to

analyse the points of view of the people-who are directly affected by it . This
makes it easier to fl nd a111 appropriate solution which everyone involved will
understand and accept. look at the following useful questions and resposes.
a Ae,.tually, we're one week ah.eaq. d I wish I knew.
b Where .do we go from here? e If the worst comes to the worst, ...
e Is everything going smoothly? f Any idea whaf the pr@b.lem fs?

Complete the table with the questions and responses above.

Keeping track
H.ow are things going with ... ? Couldn't be better.
---- Yeah. frs working outjus t as we
1
thought.
So, how did it go? _ _ _ _ _ _ _N_o_
tthatwe~ actually.
Are you .still on schedule? 2
Identifying the sourt e of a problem
So wlat exa11tly seems to be hlding There's still no sign of the parts we
things up? ordefed.
1--~
----------
Wha(s 9J ne w.rong? 3
4 It looks like it's the ...
What's up? Weife in big trouble. - - - - - -

Proposing a solution
How ean we sort.this out? ~.etsomeone ohto it fast.
5 We'Lljust have to ...
How do yeLJ suggest we dea l With this:? Lefsjusttake t one ste ata time.
What's fiie best-way to fix this? 6

listening 2 8 Listen to three dialogues between managers and members of

their tearns. ldentify the problem that is mentioned and the soJution
that is proposed in each case.
Listen again. Which of the questions and responses above are used?

Speaking Work in pairs. A manager is talking to a team member who has

discovered a problem. Decide together on an appropriate course of
action in eacb of the situatio.ns on page 142. Take turns to play the
.roles of manag~r and team member.

Culture at work Approaches to problems

How people apprach problems depends on tbe culture in wh.ich the
problems have arisen. In sorne (universalist) cu ltures, people interpret and
react to problematic situations in terms of what is generally considered to
be right or Wrong. In other (particularist) cultures, however, probJems are
approched jn th.e light of the relationships of those involved, and people
try to find a solution that fits the specific circumstances. How do people
appra.ach problems and prob l em~olving in your culture?

Unit 10 91
 Dilem ----...--
ec1s1on
Dilemma: The power of money Decision:
Brief
The World ~ank is an international institution which provides loans Turn to page 146 and read the
and finan:ce to countries and governments around the world. The extract from a news article about
decisions that it makes are particularly important as they provide the the commission's report.
guarantee that other financia) institutions need befare they will agree to
contribute additional funding to a new development project.
The Bank is currently conducting a review of its policy cm energy. World
demand for energy is set to rise considerably during the comng years,
and the role of the Bank will be critica! in determining, how that
demand is met. Over the last decade1 the Bank has financed hundreds of
fossil fue! projects which will substantially increase the levels of carbon
dioxide in the atmosphere a nd accelerate the effects of glol::>al warming.
The dilemma that the Bank now faces is whether to continue to finance
such projects orto change to a radical new policy which would promete
c_leaner or renewable energies.
Tbe Bank has appointed a special commission to prepare a report tbat
will present re:commendations for its future policy in the energy sector.

Task 1
You are members of the commission, whch has representatives from three
groups: the energy industry, developing countries and non-govemmental
organisations. Work in group,c;. Group A. you represent non-governmental
organisations. Turn to page.137, Group B, you represent the energy
industry. Turn to page 138. Group e, you represent developing co.untries.
Turn to page 140. Prepare the arguments that you will present to the
commis.sion and choose a spokesperson to present them.

Task 2
A meeting takes place,. at which the
spokesperson for each group presents his/her
group's viewpoint. Take notes about the
proposals that the other groups make.

Task 3
All members of the commission should give
feedback and express reactions to what has
been proposed. At the end of the debate,
agree on an outline of the future policy that
you will advise the Bank to adopt.

Write it up
Write a short report on future
policy that the commission will
subm it to the World Bank. (See
Style guide, page 28.)

92 Unit 10
 Page and Brin's daring IPO
PAGE 95

Future forms
PAGE-98

DUemma: Which way to Wall Street?

PAGE 100

Searching for
shareholders
Keynotes
An Initial Public Offering (IPO) takes
place when a prvate company raises
capital by introducing its shares on
the stock market and becomes a
public limited company (ple). Befo re
a prvate company can go public, it
rnust comply with the requirements of
the regulators of the stock exchange
{Securities Exchange Commission in
the US) and file an application giving
full details of its accounts. Most
co.mpanies prefer to use the services of
;aninvestment bank to manage or
underwrite the offering.
 Preview 0 Stock market launches
O listen to an expert talking about why cempanies decide to go
public. Match the three companies that she mentions with the
reasons that she gives for their JPOs.
1 DxeamWorks a to pay off debt
2 Virgin -.Slue b .t o pay back investors
3 Domino's Eizza e to pay for future expansion
EJ Read the following statements. Whicn show the advant~ges of
going publlc and which show the disadvantages?
J Management will face pressure to produce positive quarterly results.
2 Outsiders may impose their views oh management.
3 The value of the business may suddenly fluctuate.
4 More people will be aware of the company's existence.
5 The company will be obliged to disclose financial information.
6 The company can obtain finance without having to repay a debt.
7 Employees can exercise stock options.
8 Cpital wj]I be available far expansion.

Speakihg Work in pairs. Discuss tbe following statement made by Richard

Branson before he decided to take Virgin Blue public and answer
the questions below.
The d.eLi-ghifuL thing a.bout not being a pu.blic company is that we don't
ha.ve to worry about foolish ancilysts who say stupid things.
l Why do you think Richard Branson changed his mnd?
2 When is it better for a company to go public rather than stay private?
3 How would you decide whether or not to buy the shares of a company
that was going public?
4 Can y0u think of an example of a cornpany that has gone public? How
successfl has it been?

Reading Wall Street wonderboys

0 Read the extract from a letter written by Lany Page and Sergey
Brin, the founders of Google, the intemet search company.

Ooogle is not a .conventional CQmpany We do not intend t be

Thrn s.m G , o cerne one.
- u~ out oog1es evolut.10n as a privateJy-held con.1.:1an~ = eh
Go J diff ti ""-t 'J ave managed
og e er:n y. We haV'.e also emphasized an atfuosphere of creati\i:t
chal lenge, which has belped us prov.ide unbias
ed . , . . ) y and
t ti , ac~urate and free access to
10 orma on for those who reJy on us around tbe World.

What do you know about the company?

EJ Read the text on the opposite page and answer the questions.
1 What is unusual about the way Google organised its IPO?
2 What are the two principies on whlch GoogJe is founded?

94 Unit 11

WALL STREET WDNDERBOYS
The new men on the block fight the
Wall Street cart el
LARAY Paga and Sergey Brin, the
founders of Google, are dolng something
that has never been risked before. Not by
Microsoft's B1ll Gates. Not even by Apple's
Steve Jobs. The Google guys are telfing
Wall Street to drop dead.
2 Those entrepreneurs from
an ear11er era played the game
of golng public the way 11 had
always been played. Before
Google carne along, wl1en a
company was ready to sel!
shares, it h1red b19 Wall Street
investment firms such as
Goldman Sachs and Morgan
Stanley. The firms offered the
stock to their favorita cus-
tomers al a big discount. The
privileged few were guaranteed
quick profrts. but the company
received less money for i!S
IPO. And the newly pubfic
company paid a high price for
the honor. The investment
firms' oornmisslon was fypical-
Jy as high as 7 per cent of the
money raised. That fee could
run 1nto the hundreds of mil-
loos o dollars.
3 Page and Brin aren'! pul-
iing up wlth thls racket. Their
plan is to use a public auction
lo offer Google's shares to
anyone willlng to pay the mar-
ket price. Google will receive
an estimated $100 million
more by handling the sale this way. And
whffe major firms like Morgan Stanley will
be managing the auction, thelr role - and
their lees - will be much diminlshed.
' Why dld s.uch famous rlsk-t1'lkers as
Gales and Jobs put up with the Watt Street
sliakedown? They didn't have much
dlolce. The brokerages were able to act
ike a cartel because they held a near
monopoly on 1nformation. CEOs had no
Idea what was happening to their stock
IPO
price unless they callad their brokers. And
the buyers of equitles were mostly big
financia! institutions - pension funds, insur-
ance companies - that paid commissions
to the big brokerage firms for research and
advice. The lnvestment houses essentially
gave kickbacks by cutting them in on IPOs.
5 Cracks began to appear In that cartel in
the late 1990s, when WR Hambrecht & Co.
and Wit Capital pioneered the auctlon
approach. But tew entrepreneurs chose
these Wall Street reformers 1or their IPOs.
Why? For one thing, many founders and
CEOs pcked traditonal investment banks
to taJ<e them public because they wanted
the services of the firms' "analysts" - who
Glossary
drop dead mind its own business
racket (US shakedown) a way of
obtaining money by fraud or
deception
kickbocks (Br backhonders) sums of
money paid to someone in exchange
for a favour
hype promote something with
exaggerated claims
gun attempt to defeat
brains will trump brawn
intelligence will win against power
status quo the situation as it is
notorlously hyped cllents' stocks under the
guise of providing objectlve stock research.
Page and Brin built Google by applying
their hyper-mathematical log1c to the inter-
net; now they have focused the same
rationality on the IPO indus-
try. In so doing, they might
revolutlonlze Wall Street
just as they revolutionized
the intemet.
6 or course, the huge
populanty of Google's
brand makes it possible for
the company to bypass
Wall Street. The Googte
guys are relying on the fact
that by the time the publlc
come to decide whether to
buy, t11ey wlll have sean
that the old way was collu-
sive and corrupt while their
way is rational and fair.
That's a great leap of falth.
Allenatlng the powers that
be in investment banklng
has rlsks, too. The first time
the newly pubhc company
reports disappointing
results, WaJI Street will be a
very lonely and dangerous
place. where everyone is
gunning far Google and
few allies are to be found.
1 Page and Brin are
golng to take that chance.
Google 1s based on the
twln principies that brains will trump brawn
and that a democracy will always supplant
a hierarohy. This democratic impulse forms
the very core of Google's technotogy; so Jt
goes wlth the fPO: Google has put lts
futura ln U1e hands of the people, not Wall
Street. Larry and Sergey are not your typl
cal courageous ieaders. But they are at the
forefront of a new breed of technocrat
kings who are gambling that they can out-
think - and outflank - the status quo.
Unit 11 95
 IJ Read the text again and study the following statements. Which
refer to the way that companies traditionally issued shares, which
refer to the public auction approach adopted by companies like
Google and which apply to both?

Traditional Auction Both

1 Stocks are sold directly to the public.
' The company pays fees to a brokerage firm.
3 Stocks are sold mainly to financial institutions.
.. Sllares are sold at a reduced price to favoured
customers.
.:i The company receives more money from the sate.

11 Statements 1-6 paraphrase infonnation given in paragraphs 3 and 4.

Which of the following groups of people does each staternent refer to?
a entrepreneurs like Bill Gates
b institutional investors / investment funds
e Larry Page and Sergey Brin
They did not have the information to allow them to track the
performance of their compan ies on the stock exchange.
2 Th ey were the principal purchasers of newly issued shares.
3 They represent a new generation of business leader.
4 Th ey paid hi gh commissions for information from stock speciaJists.
5 They needed to keep on good terms with analysts.
6 They paid for information and consulting services.

Speaking What are the disadvantages of not following the traditional route
and bypassing Wall Street when going public?
Do you think that GoogJe will be successful in the long term or wilJ it
suffer as a result of having antagonised the Wall Street community?

Listening 1 0 An analyst's view

Listen to jonathan Harper giving his views of the Google IPO.
Complete the table below.
Capital expected from the IPO Capital raised
Number of shares expected to Number of shares actually sotd
be sold
Projected share price Shar price obtained
Mistakes made 1
2
3

Writing Your CEO has asked you to give your opinion about whether your
company should plan to launch its new IPO by auction or by using
an investment bank. Write a short letter saying which method you
would recommend, and why. (See StyLe guide, page 16.)

96 Unit u
Vocabulary 1 Find words in paragraphs 3 and 4 of the text on page 95 and match
them with their meanings.
(pub/ic) auction a method of selling !- _ _ __ _ a si tuation where
where people bid against each other there is o nly o ne supplier of
1 _ _ _ _ the price determined by goods o r a service
supply and demand _ _ __ the price of a
_ _ _ __ companies specialised company's sha res
in selling stocks ~ _ _ __ _ stocks and shares
4 _ _ _ __ a group of companies 8 _ __ _ _ the percentage
that form an a lliance to control a pa id on transactions
sector

Vocabulary 2 Prefixes
The prefix out can be added to certain verbs to indicate that
something is done better. Study these examples from paragraph 7.
outthinh think in a more intelligent way
outflanh have a more effective plan of attack
Match the verbs with their meanings below.

o utJast outscore outmanoeuvre outnumber

outperform outbid

use tactics to gain advantage obtain a better result

compete more effectively 5 be of longer duration
~ buy something with a higher offer n be more numerous

Practice Complete the article with the appropriate form of words from
Vocabulary 1 and 2.

lnvestors who ore boking lo add sorne new 1 equitfea so their

porfolios will gel the chance lo d just thol when FoirfeiX lnc goes
public lt onnounced recentfy thal it will be going ohead wlth plans
far ils IPO ond o company spokesman so1d lhot they would be
offering rwo million shores. They expecteo lhol the iniliol
2 would be between $25 and $30 The IPO is
unlikely lo offect the managemenl of Farrfax's busfness affoirs os the
votes held by lhe 0riginal sh0reholders will 3 those of
inves101s ocqulring o stake in ihe compcmy. Fairfox soid thot slthough
they had origlnolly intended lo hold o 4 of the shores
on the internel, they hove now decided to use lhe services of te
Rondsfeld lnvestmenl Bonk, which will be orgonistng the sale in
colloborotion wilh severol of lhe majar Woll Street ) _ _ _ __
Foirfox has relused to disclose lhe detoils of the ogreement, bul JI Is
rumoured to be poying the bonk a o elgnl per cent
an 1he IPO. The compony hos consislently 7 ils
competilors in ils sedor, ond onolysts are soying lhot they anlic1pore
strong dernond far Foirfax sl10res This shoord result in o ropidly rising
s once inveS!ors stor trodrng on the exchange

Unit 11 97
 Language check Future forms
O Match the following with the situations (1-6) in which they are used.

future with going to future perfect present simple

modals may or tttight future with wm future continuous

to describe actions in progress in the future

2 to talk about th ings that someone wants to happen or intends to do
3 to talk about uncertain future events and make tentative p redictions
4 to describe actions which will be completed by a pa rticular time in the
fu tu re
5 in clauses introduced by e.g. when, as soon as, if, befare
6 to make firm predictions
O Match the examples taken from the text on page 95 with 1-6 above.
a Googte will receive a.n estirnated. $100 million more ... (para 3) _ _
b ... M orga.n Stanley will be managing the auction, ... (para 3) _ _
e In so doing, they m ight revolutionize Wa.H Street ... (para 5) _ _
d ... they will have seen that the old. wa.y was coLlusive ... (para 6) _ _
e The.first time the newly pubLic compa.ny reports ... (para 6) _ _
f Pa.ge a.nd. Brin are going to take that chance. (para 7) _ _
=!rJ For more mformation see page 161.

Practice Choose the best options (a-e) to complete the sentences. There may
be more than one correct answer.
Analysts will know more about the company's fi nancial position when it
_ _ its prospectus next month.
a is going to publish b publishes e will publish
2 The auditors say that they _ _ the fina l version of the income statement
by the end of next week as they'd planned.
a will not have finished b are not going to finish e will not be finishing
3 Personally, I _ _ any shares because I don't think the company will ever
be able te> pay a dividend.
a wiU not buy b am not going to buy e might not buy
4 CEOs can make all the predictions they like, but ultimately it's the markets
which _ _ .
a wilJ decide b will be deciding e will have decided
5 l _ _ buy a few shares, but only i f the market looks good.
a might b will e am going to
6 Our Chief Financia! Officer _ _ the first presentation to analysts on
21 ju ne.
a makes b wi 11 have made e will be making

Speaking Make a list of things in the future that you intend to do, you will
have done by a certain time or you will be doing at sorne point.
Discuss your list with a partner.

98 Unit 11
 Career skills Making a presentation
When you are making a presentation, it is important to include appropriate
language to show your audience what you are doing at different rnoments. This
will rnake it easier for them to follow what you are saying and will signal the
transitions between the different sections of your presentation.
Look at the following language, which can be used to signal the different sections
in a presentation.
a for instance h to put it in simple terms
b in other words i.e.

V
'1
e in brief
d as you can see here
e to go on to (the next point)
j I'll come back to that later.
k moving on to
l as this chart shows
f to sum up m that brings me to
g such as n another way of putting that

Which of a-n above would you use to do the following?

illustrate your presentation with examples (or visuals)
L si mplify or summarise sections of the presentation
_, show that you are cha nging to a different section of the presentation
4 reformulate or paraphrase what you have sa id

Listening 2 G sten to the introduction to a presentation given by Andrea Herra

to a group of analysts and answer the questions.
What will the main sections of her presentation be?
2 Which of a- n above does she use?

Practice Work in groups. Choose o ne of the next sections of Andrea's

presentation (section l below, sections 2-5 on page 141). Read the
notes and then prepa re and present your section.

INNOVATex
lffil!,!.11 Who we are
founded by Gary Patton and Francis Fairbank
Registered in 2003
new materials research (chemical and bio-engineering)
Sectors of acflviiy
Products
patented biodegradable plastics
Number of employees 250
Head office and research centre Pasadena, California
CEO
Andrea Herra

Culture at work Presentation styles

When you give a presentation toan audience in anotber country, you may
have to adapt the style of your presentation. ln sorne cultures, audiences
may react negatively to a presentation that is considered to be too flashy
and over-optimistic. What style of presentation do people in your country
use? Is it considered acceptabJe to use humour in a presentation?

Unit 11 99
 Dilem ___
ec1s1on
Dilemma: Which way to Wall Street? Decision:
Brief
Hi Wire Ventures was the parent company of Hi Wire magazine - a 0 Listen to Larry Elgin talking
popular business magazine for Silicon Valley entrepreneurs and about what went wrong with
executives. When the internet boom was in full swing, Hi Wire Ventures the Hi Wire !PO.
had big plans: la unching new multimedia start-ups a nd new titles that
would position the group as one of the leading interactive media
companies. Financing that plan meant taking the company to the Stock
Exchange. But it wasn't ali going to be quite as simple as Chief Executive
a nd founder Mario Rossini might have imagined.
The company h ad already been forced to cancel thei r first attempt at a n
!PO at the last m inute when stock prices started to fati. But now, two
months la ter, Rossini is convinced that the market is ready for the
launch. He has found a bank to manage the launch and they have just
fin ished doing the ' road show', a series of sales presenta t ions where
professional investors are invited to comm it themselves to buying
shares. Representatives of the bank and of Hi Wire's senior management
team are now meeting to discuss the results and decide o n the future of
the IPO.

Task 1
Wo rk in groups. Group A, you represent the bank. Turn to page
142. Group B, you represent Hi Wire senior management. Turn to
page 144. Prepare the arguments that you will present at the
meeting.

Task 2
Ha ve the meeting with the representatives of the other
group. Discuss your a rguments and reach a decision
about what action to take for the IPO.

Task 3
Each group should prepare a short presentation
of the fina l decis ion and give their presentatio n
to a li the senior managers of Hi Wire a nd the
bank.

Write it up
Write a short press release expla ining the
decision. (See Style guide1 page 30.)

100 Un it I1
Cfunch time for Apple
~103

Time dauses
IA'GE:f

Dmtmma: The cola comeback

PAGE'-t08
 Preview 0 Protecti ng a market
Listen to Robert Njiki, a p,rofessor of business studies, talking about
how companies can analyse their competitive position in a marl<et.
Complete the diagram with the terms that he mentions.

------
a

Barriers to entry ------

------
- -- - - - 8

Speaking Ali businesses have to adapt as their markets evolve and new
opportunities emerge. Can you match the following companies with
the products or services they originally so)d? Do you know of other
cotnpanies which have recently enteted new markets?
1 American Express a forestry and wood
2 Nokia b min ing an d minerals
3 Nintendo e glass containers and bottles
4 3M d ornaments and decorations
s shell e maiJ delivery
6 Danone f playing ca rds
How might established companies be affected by the foUowing new
products entering their industries?
digital camera mobile phone MP3.plyer

Writing Choose a company that you know weJI. Imagine a new market that
this company could enter. Write a pr'ess release explaining how it
will do this. (See StyLe guide, page 30.)

Reading Competitive advantage

D Read the text on the opposite p(Jge and answer the questions.
Who s Ap ple's principa l competitor and how is the company trying to
deal with it?
2 Whch. of the barriers mentioned in Preview has
a so far prevented Apple from gaining m arket share in the l'C sector?
b m ade it difficult for c0mpanies to compete withApple?

102 Unit 12

Competitive advantage
Cntnch tim.e for Apple
Apple's Steve jobs is having another go at the mass market for computers
During the first week of the year,
Steve jobs, thc chief cxecutive of Apple
Computer, manages to look like the
hippe.c;t boss in his industry. Every
january, he coolly stands aside while
other industry bosses go to Las Vegas fbr
the COnsumer Electronks Show. Tuen, in
the second week, Mr Jobs mounts a stage
in San Francisco at Apple's MacWorld
conference. There, to oohs and aahs, he
unveils Apple's latest products, ali
inevitably stunning in their design ele-
gance and user-friendliness.
2 But this week Mr jobs went one step
further. Encouraged by the runaway suc-
cess of the iPod, and by profits tbat were
up by 368 per cent on the same quarter a
year earlier, he announced what is, in
etrect, a new corporate strategy, Instead of
settling for being a niche player selling
beautiful but e.'<pen!;iive computers, the
finn is retuming to contest tbe mass mar-
ket thar it long ago ceded to Microsoft,
Dell and others.
J That this challenge is even conceiv-
able is due emirely to the iPod, wbicb is
going from strength to strength. The
iPod's market share has grown fTom
about one-third to two-thirds in the past
year, at the expense of cbeaper "flash"
players.
An Apple fbr evecyone
4
But Mr Jobs wants to attack even that
remaining tbird of tbe market and this
week he unveiled an Apple flash player,
the iPod Shuf:He. For Mr jobs, who has
never previously dabbled at the bottom
of- nor explicidy attempted to domnate
- any rnarket, ali rhis is unprecedented.
5 Even though the iPod now outsells
Apple's computers by volume, most of
lhe finn's revenues still come from the
computers. So Mr jobs stilJ needs to fix
Apple's long-standing problem in its core
business, which is that its global market
share in computers seems stuck at about
3 per cent. Using the iPod's success to
convert mainstrearn (i.e. Microsoft
Windows) computer users might be the
way to do it.
6 This is why Mr jobs also announced
his most radical product, the Mac mini, a
futty-Aedged but tiny computer. The twist,
in Mr jobs's words, is that it is BYODKM,
or "bring your own display, keyboard
and mouse". Buyers are expected to plug
in whatever monitors and peripherals
they have already. Leaving out these bits
makes the Mac mini Apple's first truly
low cost computer, "so that people who
are thinking of switching witl have no
excuse," says Mr Jobs.
Glossary
hip fashionable, trendy
unveil reveal, disclose
cede give up, abandon
dabble get involved in as an
amateur
peripherals printers, scanners and
other devices used with a computer
revered respected and admired
Cutting the price tag by leaving out
tbe peripherals is a shrewd way of min-
imisiog two risks: it is unlikdy ro canni-
balise the sales and profit margins of
Apple's more expensive models; and it is
likely to snap many Windows users out
of cheir inenia and into making tbe
switch.
s Mr Jobs hopes that as its searnlessly
integrated range of products grows fur-
ther, Apple will become the most revered
brand in the digital home and in con-
sumer electronics.. This is why Mr Jobs
has opened 101 retail stores around the
world, their locations hand-picked by a
former Gap manager. lt also helps that
an ecosystem of accessories is blooming.
That growth will continue further once
Mercedes, Nissan, Volvo and Ferrari have
joined BMW and sta11ed to offer iPod
controls in their steering wl1eels, as
announced by Mr jobs this week. And it
helps that Mr jobs, also the boss of Pixar,
a hugely successful animated-:film studio,
understands the world of entertainment
better than probably any other boss in
his industry.
9
Apple leads the market for online
music with il'unes, which works only
with tbe iPod, while Microsoft is pushing
a rival software fbnnat, Windows Media,
in an attempt to make it the industry
standard. Mr Gates could come from
behind once again. On the other hand,
Mr Jobs has been more crcumspect this
time around - designing iTunes to work
with Windows, for instance, doing mar-
keting deals fbr the iPocl with Hewlett-
Packard and Motorola and, with this
week's annoUJ1cements, figbting off com-
petition from lower cost riva1s. 11 is too
early to tell which of these two genera1s
is still fighting the last war
Unh 12 103
 EJ Read the text again. Complete the tables about Apple Computer
and answer the questions.

Apple Computar lnc.

Competitlve overview
1 Original market
Products Competltors Current market share New prniiluct
personal computers
Market objective
-- - ~
- ~

- - ~-~~
~-

a What are the two main qualities of Apple products?

b How does the Mac mini differ from other Apple computers?

2 New rnarkets
Produc~ Cornpetitors Current market share 1:

1
2
3
Market objective

a How is Apple trying to defend itself against its competitors?

b What structural change has it introduced to distribute its products to a
wider market?
e What agreements has Apple made with other companies?

Speaking What are the main reasons why Apple does not have a larger share
of the personal computer market?

Do you think that Apple's new strategy for the personal computer
m arket wiU be successful? Why / Why not?

Vocabulary 1 Expressions with hove

Look at the subheading of the text on page 103. Having another go
at can be paraphrased as mahing another attempt to succeed in. Use
the appropriate fonn of ha.ve with the following phrases to
paraphrase the underlined words in the sentences below.

trouble with a look at a right to a stake in no idea in mind

Could you check out the latest saJes figures and let me know what our share
of the computer market is?
2 what sort of marketing campaign are you considering?
3 We've encountered sorne problems with the software on the new operating
system.
Blackthorn Industries owns a percentage of the company.
5 All employees are entitled to know where we stand in relation to our
competitors.
6 I don't know what they're planning to do. But the rumour is that they're
bringing out a new version.

104 Unit U
 vocabulary 2 Compound nouns
join nouns from the two boxes to form compound nouns from the
text on page 103. Complete the definitions below with the
compound nouns.

mass niche core market profit

business margin share player market

_ __ _ _ (pa ra 2) a company that is present in a smaIJ

segment of a market
l _ __ _ _ (para 2) the largest source of customers
3 _ __ __ (para 3) the proportion of a market that a
company occupies
4 _ __ _ _ (para s) the central activity of a company
5 - -- - - (para 7) the difference between costs and sales

Practice Complete the article with the appropriate fonn of words and
phrases from Vocabulary 1 and 2 .

Pixar, the highly successful computer animation company, was originally a divlsion of George Lucas' company, Lucas
Films. In 1986 Steve Jobs, who 1 hada 5ta/ce in the company, bought out George Lucas and took control.
Originally, Pixar's 2 was the. creation of computer systems for visual processing. However, the company
was never more than a 3 in this sector and its ~ was insufficient to justrfy further
investment. Pixar was soon facfng a critica! situation as they were 5 sales of their machines. To promete
6
sales and improve , John Lasseter, the creative director, pre.pared a series of commercials, but he
7
that one day film-making would beco me Pixar's main source of revenue. Today, Pixar is one of the most
successful operations in lts sector and has produced sorne of the most popular animated pictures for the
8
, such as Finding Nemo and The /ncredibles.

Listening J E) Listen to a business analyst talking about the history of Honda. Take
notes and complete the table.

Company Develops first Enters US Diversifies Enters new Future

opens product market industries plans

Date Date Date Date Dates ID ati'!

1948 1963 now ~

Founder Product Product Sector 1 I ndustry

Soichiro
Honda
Company Product Product Product 2 Prototype
name na me na me name 9eneratore name
A"[ype Supercub
3

4 alrcraft
en9inea

Unit u 1os
Language check Time clauses
Study the examples taken from the text on page 103.
a Every jtinuary; he cooUy stands aside while other industiy bosses go t
Las Vegas ... (para l)
b Mr jobs hopes that as its seamlessly integrated range of products grows
further, Ap.ple will become the m.ost revered brand ... (para 8)
e That growth will continuefurther once Mercedes, Nissa.n, Volvo a.nd
Ferra.ri have joined BMW a.nd started to o.ffer iPod contra Ls in their
steering wheeLs ... (para 8)

O Which of the examples above includes the following?

a time clause and a main clause both in the present tense
2 a time clause in tbe present perfect and a main dause in the future
3 a time clause in the present and a main clause in the future

EJ Which of the verbs in bold above couJd be replaced by a present

simple form.?

IJ Study the conjunctions that can be used in time clauses. Whicb

could be used to replace the conjunctions in the examples above?

while as one l:lhtil (till) before/after

wheh.ever by ilie 'time as s0on as when

:!r:J Far more information, see page 162.

Practice Complete the sentences with the appropriate form of the verbs in
brackets. You may need to use negative verb fonns in sorne cases.
1 We (make) will make every effort to get our new medicine onto the
market before our main competitor (release) theirs.
2 As soon as we (find) a suppl ier who can provide the
circuits, we (move ahead) with the production phase.
3 Whenever a new competitor successfully (enter) a market,
profit margins (tend) to fall.
4 The new vehicle '(go) on sale until it (complete)
_ _ _ _ its road trials.
5 Let me know when you (get) tbe latest sales figures, and we
(decide) what to do then.
6 Once the salespeple (understand) the advantages of the
new model, it (be) much easier for them to sel( it.
7 I don't see how we (can / be able to) confirm the orders
until we (know) when our dealers will receive the goods.
8 San dra (make) the necessary alterations to the website
while ]odie and 1 {prepare) the sales brochures.
 Career skills Handling conflict

When conflict occurs at work, it is important to deal with it appropriately hefore it

causes further problems. look at the following phrases, which can be us.ed when
handling conflict.
a Whether you like it or not ...
b Can we set aside our differences?
c I don't see what ali the fuss is about.
d What are your views on this?
e I'm sorry, but there's no point dfscussing this any further.
f I'm sure that won't be a problem.
g I know we don't see eye to eye on this but ...
h Let's keep things in perspective.

Look at three strategies for handling conflict and match them with
phrases a-h.
Minimise: ignore a confct or try to make it seem less impo11ant.
J. Accommodate: try to find a compromise solution that is in the interests
of aU those involved.
3 Dictate: use your a u thority to impose a solution to the prob.lem.

What do you think the advantages/disadvantages of each approach

are?

Listening 2 e Listen to three dialogues. What is the source of conflict in each

dialogue, and which strategy is used by each of the six colleagues?

El Listen again. Which of phrases a- h above are used?

Speaking Work in pairs. Tum to page 143 and read the descriptions of
situations involving conflict between a manager and m ember of
staff. Take turns to play the roles of manager and member of staff,
using a different strategy each time.

Think of a situation where you have been involved in conflict.

What was the cause of the problem? What attitude did yo u take?
How successful were you at resolving the conflict? Do you think you
reacted in the right way?

Culture at work How much confrontation?

Sorne cultures consider conflict to be a normal part of working life and see
itas a factor that can enhance performance and generate creativity. Other
cultures, on the contrary, believe that interpersonal conflict should be
avoided at all costs and that th e i nterests of the individual should be
subservient to those of the group or the com mun ity. Which of the two
attitudes is cJosest to your culture?

Unit 12 107
 Dilem ----
ec1s1on
Dilemma: The cola comeback Decision:
Brief
Parle Ltd is an independent company that produces and distributes soft 0 Listen to Dinesh Madhur
drinks and sodas, including its best-selling Thums Up cola, on the talking about the strategy that
market in India. Until recently, the company had ben protected from was adopted far Thums Up.
outside competition by government regulations which prevented foreign
competitors from entering the market. However, the government has
now changed to a free-market policy, and foreign companies are now
able to set up plants and distribution networks inside the country. Parle
is well aware of the power of the US gia nts, Pepsi and Coca-Cola. But
what can they do to protect their market?

Task 1
Work in groups of three. You are directors of Parle and you have
arranged a meeting to decide what strategy your company should adopt
to prepare Thums Up for the free market. Choose a role on page 143 and
prepare the arguments that you would use to convince your fellow
directors to follow your advice.

Task 2
Hold a meeting and present
your arguments.

Task 3
Decide together on the best
course of action for the
company to adopt.

Write it up
Write an email confirming the
decisions that you have made.
(See Style g1de, page 20.)

108 Unit 12
Language check
Con i t ,
Complete the dialogue with the correct fonn
of the verbs in brackets.
1.You know, if you ('use) public
transport instead of driving to work every day
last year, l'm sure you (2save) a - -- - - we first introduced the product, it
lot of money!
B You're right. And if petrol prices (3keep)
- - - - going up the way they have
done recently, it {4start) to cost
me even more. But it's not just the money -
it's so much more convenient by car. rf 1
( 5not/own) a car, T (6have to)
_ ____ take the bus to the station and
then take the train, adding an extra hour a
day onto my journey.
A WelJ, if l (7be) you, 1 {8 make)
_ _ _ __ an arrangement with a colleague
and take it in turns to drive. That way, you
9
( not/waste) any time and you
1
( save) money, too.
B You're right. That's exactly what J sbould do.
~ "'ur 1 l
Choose the oorrect fo rms of the words in
italics.
The company has confirmed that it might go /
will go ah ead with its lPO as long as the
market remains stable.
1 Cornpany spokesperson Gregmy Hansett said
that his firm wilL in.tend!intends to offer five
million shares for sa le.
'! The share price has yet to be fixed, but
analysts say that it will !might probably be in
the order of $10-15 per share.
4 By the time its new flagship hotel is opening/
opens in February, tbe group wiH become/
wiH ha.ve become tbe market leader in Asia.
Sorne analysts say that tbe CEO will be asking/
wiH ash for trouble if he takes the company
public at such a difficult moment.
6 Economists are predicting that overcapacity
erodes/wiLL erode profit margins for the
industry as a whole.
Complete the sentences with the following
words.
as soon as whenever when until
after wh ile
was the only one on the market.
2 looking at ali the facts, tbe
management has decided to stop
manufacturing in Europe.
3 The contract is coming by express delivery.
- - - - - you get it, sign it and send it
back. lt's urgent!
- - - - - we run into design problems like
this, it always seems to take so long to sort
th ings out.
~ T can give you an answer, but not _ _ _ __
T've had time to look at the latest sales figures.
At least we'll be able to do sorne work at home
- - - - - the office is closed for renovation.
Choose the correct forms of the words in
italics.
Chevron. the US ol company, announced that
it has made a bid \O acquire Llnocal for
$ 18 bill ion. The planned acquislllon comes a1
a time 1\11h11{while many industry ana lysts are
warning that oil prices 2 rise / will ris-e even
hi11her lhan the recent peak of $58 per barrel.
3
lfLl,e specialists al Goldman Sachs are 1 will
he right, the oil markets 4co11tinue 1 will
continue LO bccomc even more volatile as
world reserves 5are srarting I start to diminish.
6Bejore/After Chevron decided to make the
1
deal. one thing was already clear: if it hadn '1
boughr / didn 't buy a competitor witb access ro
reserve of natural gas. it 8won 'r be able I
wouldn 'r be trble to supply its clients growing
appetite for this type of fuel. However. tbe~ is
no doubt that even if petroleum pnces
10
eventually 9/all / lwcl jllen. Chevro n would
nor waste / will nol have wasted its money as
it is paying far the acquisition witb shares.
109
1 Vocabulary check e Not that well, actually. I got stuck in traffic
and missed my tlight.
Correct the adjectives in italics by adding d The d~~Jay is because we don't have
or removing prefixes where necessary. authorisation.
1 One of the arguments that is often used against e Couldn't be better. We've just got two more to
wind energy is that it is not only uneconomical finish.
but also extremely reLiabLe.
Making a presentation
2 It is very hard to increase matket share with
products that are not uncompetitive. Complete the extracts from a presentation
3 Although solar energy wilJ only become
with the following phrases.
expensive once cheaper solar panels are
mc::5virig on in btief in other worG!S
available, it does provide a source of energy
sum up for instance as you can see
that is p1luting.

El Choose the best options (A-C) to complete Our company has always had a reputation for
the sentences. inventiveness - 1 , we were the first to
develop a viable biodegradable alternative to
The companies have formed a(n) which plastic. And we're an innovative company,
fixes prices and production leveis. 2
, we're the type of organisation that
A monopoly B cartel e agreement responds to challenges by findirrg original
2 The products have been designed for the solutions.
_ _ and will be sold worldwide. Before 3 to the next point, l'd like to say
A mass market B niche market C stock market a few words about our financia! performance -
4 from this slid<; we've increased our
3 Compan ies can protect their markets by
ereating barriers _ _ profit margii1s for the last year by 1.5 per cent.
A to en ter B to en try C of en trance Before T conclude this talk, rm going to
5 the main points that 1 have
4 Anotherword for stocks and shares is _ _
mentioned here this morning: 6 we're
A capitals B accounts C equities young, we're dynamic and, most important of all,
5 The advantage of energies is that the we're profitable.
reserves they consume can be replaced.
Handling conflict
A renewable B fossil fue) C electrical
Put the dialogue in the crrect order:.
6 Theyve bought another two million shares,
giving them a 20% in the company. O a But you've known about it for ages.
A stock B stake C part O a But people are sti ll saying 'the colours are
wrong.
O a Well, not if it's going to ruin our sales!
1 Career skills O a 1 don't think I can get things ready in
Problem-solving time.
Match the questions with the responses. O b Listen. l know w.e dorrt see eye to eye on
1 So, how are things going wiih the this, but it is just a mino.r detail. Right?
modifications? O b WeU, you'U just have to, whether you like
2 What seems to be holding things up? it or not.
3 What's the best way to fix this? O b Oh, please, lefs keep things in perspective!
lt's a good product, people like it and it
4 So, how did it go? will seH. Stop worrying!
5 Are you still on schedule? O b Well, we can't change them now. So there's
a There have been sorne minor delays but no point discussing it any further.
nothing too serious.
b Well, if the worst comes to the wQrst, we may
have to rewrite the entire program.

no
A path to helping the poor
MGE 113

Reference words
PAGE 116

Dilemma: Reliable research?

PAGE 118
 Preview Banking institutions
Which of the following banks do the things listed below?

Central Microcredit Commercial lnvestment

give loans to people who h ave very li mited resources

2 advise companies who want to go public
3 fix the excha nge rate of a national currency
4 issue chequebooks and cred it ca rds

Speaking What are the main banking institutions in your count:ry? What
banking services do you use? How do you cany out your banking
transactions (by phone / on the intemet / at a branch, etc.)?

Ustening 1 0 Look at the table, which shows the main departments and services
of an investment bank. Listen to three employees talking about their
jobs. Which department does each one work in?

Advtsory/ Portfolio Investment Capital and Private asset

Research management debt management
business risk market startup TPOs cLient
i nformat ion companies management
business sector stock reports vent ure capital corporate debt taxation
analysis
strategy and stock trading pension
management planning

Fra nk Matt Claudia

Speaking Which of the departments do you find the most interesting?

What do you tbink it would be like to work in an investment bank?

Reading Investing in development

D Read the text on the opposite page. What is the main difference
between Mr de Lesseps' investment bank and the one described in
Listening I?
O Read the text again. Are the following statements true or false?
Microcredit institutions generally make loans up to a maximum f $1,000.
2 Microcredit loans are less likely to be repaid than other high-risk loans.
3 Over $3 bill ion is currently on loan under microfinancing schemes.
4 Microcredit loan interest rates are based on risk assessments.
S 20% of the poten tia! far microfinancing is currently bei ng exp lited.

Speaking Do you agree that investment will help to solve sorne of the
developing world's problems?
Do you think that it's possible to mix business and philanthropy?
What other ways of reducing poverty can you think of?

112 Un 13
INVESTING IN DEVELOPMENT

A path to helping the poor

Microfinance instirutions see
the sense of investing in the
developing world

"IN New York, people are always

asking me che sarne question,"
Alexandre de Lesseps says: 'Wby do you
want to lcnd money to poor people in
developing countries?' Mr de Lesseps,
54, an internacional invesanem banker,
has a ready answer. "'The only way to
sol ve the problems of poverty and tcrror-
ism in rhe world today," he says, "is
through invcsanent." As a co-ovmer of
BlueOrchard Finance, a corporate bank
in Gencva, he is one of che Jeading fig-
ures in rhe world of microfinance. His
fum manages a fund chac currently
makes abouc $50 million in shorr-rerm
loans co microcredic lending insrirurions
in more rhan 20 developing countries
around che world, and BlueOrchard and
its investors roake a profit in che form of
interese payments on the loans that rhey
makc to such institutions.
2 i\1.icrofinance insticurions rypica.lly
make loans in amounrs of $1,000 or less
co poor people in developing countries
who are ignored by commercial banks. microfinance specialists Cdric of risk faccors. "I know chat sounds prcc-
As a rule, microcredic Joans are nor Lombard and Jean-Philippe de Shrevel, cy high," Mr de Lcsscps said. "Bue you
backed by collateral, leaving no meaos of one-time employees of rhe United have ro remember rhar orher fonns of
financia! recovery for che lender if rhey Nations. locally available credic are five rimes
are noc repaid. Bm leading microcredit Wben de Lesseps and bis tcam arrive highcr chan chat."
in a country, they visir thc central bank 6
instirutions clnim that only five per cem Mr de Lesseps said he believed rhar
of che loans they mal<e are never repaid. or leading aid instimtions, rhc ones gen- 80 per cent of rhe potential for microfi-
This compares with five ro ten per cent erally doing microfinancing. Larer, on- nancing worldwide remained untapped,
in che consumer finance industry for site rcscarcb ofteo ta-kes rhem to interior and rhat the induscry would easily be
borrowers wirh bad credir histories. Just villages, where fanlilies may live on less able to absorb more chao $10 billion.
less than $500 million is committed to rhan S 1O a month. "T visited a village in "For me, the only way to make a differ-
microcredit loans worldwide, accordiog Cambodia where che people used micro- ence," he said, "is co make sure chac rhe
co BlueOrchard's estimares. But Mr de credit loans to buy in:igation equipment money going ro developing countries is
Lesseps says he believes that today rhe and seed, which chey use to grow vegeca- propcrly managcd and not just chroivn
toral market for such loans may be near- bles," Mr de Lesseps said. "Tuey are away."
ly S3 billion. now selling che vegecables to exporrers
1
He acknowledges that rhe aims of his and to a local hotel. Such villagcs are
microfinancing venrw:es ar not pwely being transformed :from dust to being Glossary
philanthropic. "The reason we lend productivc. You don't ask for collaceral
moncy to poor people in deveJoping on tbc loans because ci1ey don't hnve it. collateral assets that can be used
couna;ies is not only so that chey can But chey will die to pay yo u back as a guarantee for a loan
make money," he said , "'but also so chat because you are giving tbem a first-rime philanthropic benevolent
our invesrors can make money."The lat- chance. It's a marrer of pride."
1er, of course, have w be bis primary ' BlueOrchard cypically charges rwo to
interested in people's well-being
roncero. His involvemem in microfi- seven percentage poims more chan Libor London Interbank Offered
nancing began a litde over two years ago, Libor, tbe internacional benchmark for Rate (the rate of interest at which
when a Swiss banker and friend interest rates, for loans to local microcre- London banks offer loans to each
approached him about investing in dit institutions~ whicb chen charge cates
BlucOrchard, which was founded by to tbeir borrowers bascd on assessments
other)

Copyright (2003) by The New York Times Co. Reprinted with permission.
Unit D 113
 Vocabulary 1 Expressions with make
O Look at the following example from the text.
Micmftnance institutions typicalty make Loa.ns (= lend money) ... (para 2)
Complete the following expressions with make from the text. (Each
can be followed by the preposition(s) in brackets.)
get/produce a return on an investment (para 1)
make (on/from)
2 get/produce a retu.rn on an investment (para 3)
make (on/from)
3 have a positive influet1ce on something (para 6)
make (to)

El Look at mo.re expressions with make below. Complete them with

the prepositions of, for, on or with.
l make allowances 4 make an impression _ _ _
2 make a habit s make a mistake _ _
3 tnake a deal _ _

Vocabulary 2 Look at the collocations from the text.

Why do you want to 1end money ... ? (para 1)
... onLy ji.ve per cent of the loans they make are never repetid.. (para 2)
Which of tbe following verbs caQ be used to form collocations with
money and a loan?

pay off l:>o.rrow lend secure inv.est deposit negotia.te

raise lose apply for sacve

Practice Complete the article with phrases from Vocabulary 1 and 2.

oday, 90 pr cent of people living In

T wverfy are unable to 1 borrow money
from commerclal banks, which refuse to
2
without financia! guarantees.
That means that their only available sourees
of crdit are erther family, or moneylenders
who cha.rge interest at rates as high as 100
per cent per month. Mlcrocredit banks,
Where investors CM obtain ftJnds desplte
being unable to 3 their and the1r business has started to
_ _ __ , can really to !he 6
, they can 7 In a
lives of future smarr business owners. In order microfinance savings account and use this
to proteot lnvestments, these banks often to raise addllionaJ capital to expand their
lend to groups; if one member of the group is business. However. microfinance is not
unable to 5 , the other rnembers arways as simple as it sounds and.
of the group can do so fof them. Once a dependlng on the country, MFls may have
rnicroentr~preneur has become successful, to 8 for cultural differences.

Writing Write a short letter to the communications director of the company

you work for explaining why you think the company should
contribute money to support microfinance. (See Style guide, page 16.)

114 Unit 13
 Reading Investment bank for sale
Read the extt;act from a newspaper artide about Cazenove, a British
investment bank, and answer the questions.
I What services does Cazenove provide far its dients?
2 Why do you thi nk majar investment banks wanted to buy Cazenove?

Listening 2 0 It was JP Morgan Chase who finally made a <leal with Cazenove.
Listen to an interview with jeff Sanders, a market analyst, who is
talking about the strategic alliance. Choose the best Qptions (a-e) to
complete the sentences.
1 The alliante is a
atakeover.
b merger.
e join:t ven ture.
z The price JP Margan Chase paid fa r the deal is
~ much less than other recent alliances they made.
b much more than other recent alliances they made.
e SO per cent less than other recent dea ls.
3 Cazenove is attractive because it
a is a very powerful bank.
b has very im portant clients.
e is Britain's biggest investment bank.
4 Cazenove's shareholders are

a mostly made up of employees.

b unhappy about the deal.
e concerned about losing control.
5 The speaker says that in flve year.s' time JP Ma rga n will probably
a pulJ out of tbe de.al because ofthe penalties tbe}' have t0 pay.
b sell Cazenove to another US giant.
e pay penalties in arder to gain complete control of cazenove.

Unit 13 115
 Language check Reference words
We use the reference words this, that, these, those, such, the fonner, the
Latter, one and ones to refer to something mentioned before.
Study the examples taken from the text on page ll3 and decide what
the words in bold refer to.
a But Leading microcredit institutions cLaim that only ftve per cent of the
toa.ns they mahe a.re never repaid. This compares withfive to ten per
cent in the consu:m.er finan.ce industry ... (para 2)
b " ... we Lend money to poor people ... n.ot only so that they can mahe
'l'!Wney ... but al.so so that our investors can make money." The latter, of
course, have to be his prima.ry concern. (para 3)
e ... they visit the central bank or Leading a.id institutiom, the emes
generaLLy doing microfinancing. (para 4)
d "J visited a village in Cambodia where the people u.sed m i crocredit
Loa.ns to buy ... Such vi.LLages are being transformed from d:ust to being
productive." (para 4)
e BlueOrchard typically charges two to seven percentage points more
than Libar ... "But you have to remember that other forms of locatly
available credit arefive times higher than tha.t." (para 5)
~ For more nformation, ~eE- page 162.

Practice D Read the extract from an a rticle about a banker and decide what
the words in italics refer to.

j onas Okembo is a microfinance
manager.. t T11is involves calculating
the interest rates the bank should
charge customers o n their loans. lt
also means deciding how long it will
take disadvantaged customers to
repay both t,he principal and the
interest .qn the loans. 2Tl1e former js
the actual sum lent am:l 3tJie latter
refers to the percentage charged by
tbe bank for the lending period.
Rating the credit-worthiness of ~such
investors can be the most dfficult part
of tbe job, but as it often involves
travelling to lnterestlng places, it is
5the one he enjoys 1,JlOst.

EJ Read another extract from the same article. Replace the words in
italics below with the latter, tha.t, such, the ones, these or the former.

He was ftrst attracted to the
ml.crofinancing sector by a desice to
help people In: developing countties.
They are the people 1 _ _ _ __
whosc projects he found the most
chaUenglng, and tbeir motlvation
and enthusiasm were contaglous.
'Tlleir motivation and enthusiasm
2 Me tbe things
tbat make them inte.resting and
worthwbile to work with,' Jonas says.
' It's a great positlon to be in, and l'm
swe thafjf l ttitln 1t work in tl1i$ type o(
3 an environment, l
would probably havc set up my own
business. Originally, 1 wanted to go
lnto the technology sector and then l
thought about a career in
international rela tions, but tl1e
technology sector 4 suffered
,r--A~~~~. .~rlrJr
a slump in my final year in
business school, and 1 wasn't really
qua~ifled for i11temi1tional relations
s . However, being a
microfinance account manager is
what 1 want now and being a
microfinance account manager
6 is aU that matters for
tbe moment.'

116 Unit 13
 Career skills Persuading

Persuading colleagues to agree. With your p.oint Of view or f llow tne course of
adion yo'U recommen:d can sometimes be a difficult task. You may need tQ use
diffetent (lperoa-c: hes depending on the personalities and rela:tionshi-:s i nvo lv~o.
Look at t he following useful phrases.
a Unless you're prepared to .. .
b Beartng all things in mind .. .
c. We're. ali in this together.
d Ali things considered, I t hink .. .
It's in aLtof our inter~ts to .. .
f Ifyou don't do it this way, then ...
g Ajter looking at all sides of the argument .. .

Match phrases a-g with the following approaches.

Coerc1on introducing a threat in order to get what you want
2 Reasoncd argumcn.t showing that your point of view / solution is the
most logical or reasonable
3 Shared interest creating a sense of common purpose
Which of the approaches do you think is the most effective?

Listening 3 G Listen to three dialogues. Which of phrases a-g above are used?

EJ We tend to use a mix of approaches when persuading. Discuss

the tactics or strategies the speakers use in the three dialogues and.
say which you think are most effective, and why.

Speaking 0 Wo:rk in pairs. Which of the following would you have to be

persuaded to do? Take tums to try to persuade each other to do
them.
lend your new ca r to a &iend for the weekend
invest your savings in a friend's new business scheme
partidpate in a team training session where you wi 11 have to do a
bungeeju mp
live without your 'IV, mobile phone or computer for one month
wTite a report criticising a colleague who is a friend of yours
El Tell your partner one other thing you would never do. Your
partrier m ust try to persuade you to do it.

Culture at work Exerting influence

rf an attem pt is being made to persuade them to do something, people in
d ifferent cultures react in different ways, whatever approah is used. Junior
colleagues may feel they have to accept whatever a superior suggests, or they
may feel they should presentan alternative argument or p ut foiward an
op posihg view if that is what seems rght to them. What js the situation in
your culture?

Unit 13 117
 Dilem ----
ec1s1on
Dilemma: Reliable research? Decision:
Brief
LVMH, the company famous for Dior cosmetics and Vu itton handbags, Now turn to page 140 to find out
is suing the US investment bank Morgan Stanley for a1oom, accusing its what happened.
research ana lysts of giving false reports about its financia! health. LVM H
claims that the bank compared them unfavourably with theit biggest
rival, Gucci, who is a client of Morgan Stanley, causing the LVMH share
price to drop. The bank counterattacked by seeking damages of a1orn
and the publication of the judgement, if it was in their favour, in 20
magazines and newspapers.

Task 1
Work in groups. Read the claims below put forward by the two sides.
Discuss whether you think these claims are valid. Why / Why not?

r Task 2
Work in groups. Based on the claims, prepare a list of persuasive
arguments which could be used by the spokespeople from each party.
Assign the roles of spokespeople to two members of the group and listen
as they argue the points. Did you feel more convinced by sorne
arguments than others?

Task 3
Discuss what you w0uld do if you were the judge in this case. W
you award the requested damages to either side? Compare your
with those made by other groups.

Write it up
Write the minu tes of the meeting your group
had in Task 3. (See Style guide, page 26.)

LVMH - nte Case Morgan Stanley - The Case

The company daims that the bank was deliberately and
systematically unfair to them in its stock research because of the
dired con~ict of interest concemlng the bank's dient, Gucci.
Ciare Kent. the bank's analyst. is supposed to have stated that
LVMH stock had peaked and wouldn't 1ncrease m value any more,
thus caus1ng a drarnatic drop in the1r share price.
Morgan Stanley sent an email to their clients to inform thern that
LVMH's credit rating was about to be downgraded. This hada very
bad eff&t on their markt aedibility.
Morgan Stanley made negative pred1ctions about lhe impact of
the weak yen on LVM H prolits, and also suggested lhey woukl
have problems integrating clothes retailers they had bought.
The bank admits that they did seek to promote their own dient by giving
favourable information about them, but the-)1 alsG nsist th~ they never ted to
make lVMH's situaton look worse than lt was.
lhey argue that Ciare Kent is one of their best analysts, and was voted European
Luxury goods analyst of the year by lnstitutional ltWeStor magazine.
They say1hat investors knowthaf analysls make mistakes. For ei(afTiple. they ~
uniformly positive aboutte'dmology stod<s in the late 1990$, and nobody is suing
them ndw.
They argue that the credlt downgrade was based on a report by the rating agency
Standard and Poo(s, and that they are notresponsible for the acruracy of
information given by them.
lhey darrn that th1ey were. (igllt about the impact of the yen a nd the iotegration
of dothes retailer Donna Karari.

118 Unit 13
A leadership lesson in Shakespeare
PAGE 121

Clauses and sentence construction

PAGE 123

Dilemma: Allocating the training budget

PAGE 12~
 Preview
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Writing
Reading
120 Unit 14
Training solutions
O Do you think it is important for a company to have a training
budget for its stafil
Jf you had to select a training course in one of the following areas,
which would you choose to do? How would you make your choice?
foreign languages Qapanese, Italian, Russian, Arabic or other)
computer skills training {Web design, Microsoft Office, Database or other)
Presentarions or other)
fJ Read the four extracts from
brochures advertising training
courses. ~ch ones would appeal to you, and why?
e d
Tanya Becker Group 'it: , .
Our semlnars w/l lfelp .}'Qur employees We Pf'OVld8 a uniQU8 programme el d111iadlf:
ro leam abow Stress Management and exactJllV8 tralAlng events. usfng 1healr8 nf
lo apply those lessons te their worldng drama technlques. RellVlng U.dramaS faced
llves. Directly lnspired by Tanya Becker's by charactar8 fnll11 arange d wef,Jcmwn
award-winning bbk Stress Remedies. - fonns 1he basis of Oll' acdalmld tmilllli
we run courses in companies and l1lllhod, wtlld1 has b88n 8ll8l:iatl . . . .flr
organisations of aU types and sizes and exacutMsn ..... 111111agars.Wllldngwllb
help lwndreds o{ delegates each year to 88lllctlld exfllclB fnln the works d u:h
recognise stress in themselves and famoul ~ aa8er1* Br8chtald
others. Partidpants will focus on Tanya's AnlDn Olelaw, partlcipanlB ant lilvlid l> . .
ten straLegies {or coping wirh stress. part In dllball and ctB:uaai>n, and perJunn
. . onalaga. OW~and
p ressure e((ectively and take control o( WOllaihop8 CIMll' awlde ranged ma...-
their lives. The course format ranges
(rom a one-day intensive workshop to
lsala: 81*8 and maliviillon, crlsls-
na11Q81'11R. auccasalen plianng, 8lid nm.
regular weekly sessions. Act now and awot for 1Ns &1lfolgeltable
1rllr*'D Mnlf
IJ Read the statements below and decide which of the institutes or
cout'Ses they refer to.
This company gives advice on appropriate training for your staff.
2 A well-known specialist designed this course.
3 Part of these courses can be completed by computer.
4 The course is designed to help managers and high Jevel executives only.
s This course is cheaper if parricipants are from the same organisation.
6 This course uses examples from literature to illustrate business problems.
Write an email to your HR m anager, asking for permission to attend
a training course of you r choice. (See Style guide, page 20.)
Motivational training
D Read the text on the opposite page about a training organisation
called 'Movers and Shakespeares' and answer the questions.
t Which Shakespeare plays does it refer to?
2 Why is Shakespeare good for business trainers?
MOTIVAT ION AL TRAINING
A leadership lesson
in Shakespeare
Dramatic training courses
bring dramatic res uJts in the
world of business training
ONE of tbe execucivcs gachered at
the Aspen Instirure for a day-Jong lead-
ership seminar using the works of
Shakespeare was discussing tbe role of
Brutus in the death of juJius Caesar.
"Brurus was ooc an honourable man,"
he said. "He was a traicor. And he mur-
dered som eone in cold blood."Thc con-
sensus was tbar Brntus had acted with
brutalicy when otber optioos were open
to him. H e made a bad decision, they
said - at Ieast as it was porcrayed by
Shakespeare - to sancrion and lead the
conspiracy to murder Julius Cacsar. And
though onc of the executives acknowl-
edgeq chac Brurus had the good of the
republic in mind, Caesar was noncthe-
less bis superior. "You have to uoder-
stand," the e.'<ecutive said, "our polcy is
to obey thc chain of commaod."
2 During the Jase few years,
Shakespearc has assumed a prominene
place in che managemene guru field, as
business executives and book writers
looking for an innovative way to advse
corporate America have begun exploit-
ing bis wisdom for profitablc ends. None
more so than husband and wife team
Kennetb and Caro! Adelmao, well-
koown as advisers to R onald Reagan,
who started up a craining compaoy
called "Movcrs and Shakespearcs". They
are amateur Shakespeare scholars and
Shakespeare lovers, and they have com-
bined cheir passion and thcir bigh leve!
contacts inco a maoagemene craining
business. 1ey conduce betwecn 30 and
40 seminars annually, focusng onhalf a
dozen different plays, mosdy for corpo-
rate dients, but also for government
agencies.
3 The seminars ali. take the same for-
mat, focusing on a single play as a kind
of case srudy, and using individuaJ
sce:nes as specific lessons. l n Julius
Caesar, for example, Cassius's sly provo-
cation of Brutus to Lake up arms againsc
Caesar was the basis for a discussion of
methods of team building and grass
roots organisiog. 1c funeral orations
provided a basis for a debate about the
relative mcrics of logic and passion in
persuasive speech making.
1 The programmes do conform ro cer-
tain familiar concours of management
training: che day's final exercise always
involves each participam reciting "what I
lea.roed" and "what rn do". Bur the ses-
sioos also include clips from film ver-
sions of the play ar hand; che Caesar
seminar, for example~ showed Marlon
Brando beseeching "Friends, Romans
and couocrymen" to Iend him their ears.
In addicion, thc Adelmans cravel with
certain props, and throughout the day
executivcs were prompted to deliver cexr
readings wearing Roman helmets and
cogas.
5 Although neicher of the Adelmans s
acadcmically trained in literarure, the
programmes comain plenry of
Shakespeare rradition and background.
Their Henry V scminar, for cxamplc,
includes a helpful explanation ofHenry's
winning scrategy at the Battle of
Agincourt. But tbey do come co the ccxr
with a few biases: lheir reading of Henry
V minimises bis cynicism and more or
less excuses his abuse of power. lnstead,
they emphasise the scory of the youth
who seizes opportunity and bccomes a
masterful leader. And ar the Caesar sem-
inar, Mr Adelman had littlc good to say
about Brntus, saying "the noblcsc
Roman of them ali" couldn'r make his
mind up about things.
o M any of the participants pointed to
very spccific elemenrs in thc play that
they felc ro be perdnent. Cacsar's arro-
gance, wbich Ied to his murder, and
Brurus's mistakes in leading the coospi-
rators after the assassination, tbcy said,
raise cruciaJ quescions for anyone serving
in a bierarchy: wben and bow do you
resise thc boss?
1
And ir did noc escape che notice of
those in che room that the conspirators'
hurried act of revolt failed ro consider its
aftermach, tbe lesson bcing thar thor-
ough planning, for any leader, is para-
mount. Those who would depose Caesar
had, in effect, no exit st:ratcgy. In che
end, a more philosophicaJ discussion
evolved about leadership iLself, some-
tbing the men and women in the room
agreed was worth considering m ore
often than they do.
Glossary
sanction officially agree to
sly cunning
grass roots fundamental or basic
level
beseech invite
props t heatrical costumes and
scenery (property)
toga long robe, itern of clothing
aftermath period of time after a
terrible event
Unit 14 121
 El Read the text again and answer the questions.
1 What kind of man did the group of managers think Brutus was?
2 In what way was Brutus's p lanning insufficient?
3 What assets do the Adelmans have which have contributed to the
success of their training firm?
4 Which executive skills do they explore using juLius Caesar?
5 Which aspects of the training are sim ilar to more conventional
management cou rses?
6 What are the virtues of HenryV, according to the Adelmans?
7 What d id the participants think they should do more often?

ID According to the text, which of Shakespeare's leaders are guilty of

the following faults?
1 dishonour 3 cynicism 5 arrogance
2 manipulation 4 indecision 6 short-sightedness

Speaking O Discuss the following questions.

Would you enjoya training course where you had to act out scenes from
Shakespeare's plays?
2 Howwould you foel about wearing a Roman toga and helmet during a
training session?
3 Can you th ink of other leaders like Henry Vwho could be used as
leadership models on business train ing courses?
4 What other plays or films might be useful to business train ers?

El Read the extract below from Shakespeare's Hen111 V cldthe notes

about it. What lessons could this speech teach managers about
motivating their staffl Discuss the following questions.
1 What does Henry V say to make the listeners feel part of a team?
2 What rewards d oes he offer them?
3 What does he say to make them feel that their project is worthwhile?
What else could managers Jearn from this speech?

Language notes
Hen V speaks to his soldiers befare they go inio battle, and tel~s tlte~n
lw w~ey will alwa)'s be remembered if they fight /Jravely alonss1de Jum. 1 S.haKespeare changes lrorn the
plural we to lhe sihgular he to
H e titen. co11tinueswit11 :
speak aboul ind1viduals.
W e fcw, we happy few, we band of brothers; 2 He will become a genlleman
For ' he to-day that shcds his blood witb me 3 inbed
Shall be my brother: 4 wi/I be sorry they were nol here
This day 2shalJ gentle his condition
3
And genllemen in England now a-bed
4ShalJ think themselves accursed they were not here

Listening 1 G Listen to a trainer who is using this speech to illustrate bis course
on motivation. Compare what he says with your answers above.

122 Unit 14
 Vocabulary 0 Put the following words, taken from Preview and the text on
page 121, into four groups: Teacbers, Sessions, Students, M ethods.

seminar instructor trainee case study delegate programme

c0urse r0le:play (i>art:ieill)ant trainer tutor

11 Read the texton page 121. Find verb-preposition combinations

which have the foJlowing meanings.
1 (para 3) concentrate on
2 {para 4) complywitJ1
3 (para 6) mentan (as important)
4 (para 6) be the cause of

IJ Which prepositions are used with the following verbs?

result _ _ , 3 react _ _
2 relate 4 report _ _ , _ _

Practice Complete the dialogue with the appropriate fonn of words and
phras.es from this Vocabulary section.
Sue: Hi, Mike. I've just signed up for that 1 couree , ' New issues in
management'.
Mike: Yeah, me too. I hope they're going to 2 ethicaJ issues in
management. That's soniething I've been trying to get peop1e around
here interested in forsome time.
Sue: They probably will l heard the 3 a re pretty radical people
and don't exactly stick to traditional rnethods. The last time they did
sessions here, it 4 sorne pretty dramatic changes. Sorne
people didn't 5 them very well anda few of our more
conse1vative colleagues resigned!
Mike: r remember that. l'm not sure we need to change things all that much,
but it would certainly be nice for 6 like us to have the
chance to talk about our own particuJar problems here.
Sue: Yes, that's true, but things can get a bit unpleasant if we have to
diswss how we 7 management - and each other.
Mike: l'm not worried about that as long as we don't have to do too many
8 like last titne - they're sure to ask me to take the part of
the CEO again!

Language check Clauses and sentence construction

Many sentences contain severa! different parts, or cla uses, each with its own
verb. When the main focus of a sentence is contained in one of the clauses,
it is referred to as the main clause. The other clauses a re subordinate clauses.

Study this example taken from tbe text on page 121.

Ma.ny of the pa.rticipa.nts pointed to very specific elements in the play
main clause
tha.t they feLt to be pertinent. (para 6)
subordinate clause
The main types of subor dinate clause are explained in the table on the
follow ing page and an example is given for each. The third column shows
sorne of the words that are used to co.nnect the subordinate clause to the
otber clause(s) in the sentence.
Unit 14 123
 Used to Used wtth
Type
re lati ve give additional information about something who, which, that ...
(see unit 5) that is ref~rred to
a whfch was conducted overa period of two years.
conditional refer to situations that are possible or
(see unit 10) hypothetical
b as long as they can find an English-speaking if, 1mless, as long as ...
representative to do the basic work for them
time give infqrrnation abaut the tirning or duration
(see Llnit 12) of something after, befare, while, as ...
e After interviewing severa[ hundred UK export managers
purpose indicate the objeGtives orintentions behind an aetion to, in order to/that,
d jn arder to ottract the foreign custom they need so that ...
concession show contrast between two clauses although, though,
e despjte the fact that UK managers hdve very . despite, fn spite f ...
different opinions about the importance offore1gn
languages
manner describe the way in which something is done as if, like ...
f just Uke managers in other groups
explain the consequences of actions or so/:such ... (that), so,
result
developments as a result ...
g and as a result, this group tends to avoid
business opportunities
reason explain the causes of actions or developments since, because, as,
n Sfoce they do a lot of their business in in case ...
non-English-speaking countries

For more information, see page 162.

Practice Complete the extract from a report about language training with the
example clauses from the table above.

The objective of the BCC's language survey was to analyse the relationship between foreign language
use a od export performance. 1 After lntervlewin(I fieveral hundred UK mc,r20rt mana(ler::.; , the BCC
analysed their responses to a standard questionnaire and used this information as the basis for the
report. Tbe findings of the survey, 2 , show that
3
, they do agree on one
thing: English has now establisbed ilself as the i_otem ational language of business.
Tbe study divides UK expor ters in to four distinct groups:
Anglocentrics chose to do business exclusively with countries that have had close historical tiesto
tbe UK and a tradition of using English. Bu t this is nota dynamic strategy 4 that presen t
themselves in other parts of the world.
Opportunists do not like to have any direct business dealings in a foreign language. But they are
prepared to consider doing business with non-English-speak:ing countries 5_ __ __
Adaptors go fu rther 6 , and that involves making an effort to present product
information and sales literature in the local language.
Enablers are the most sensitive to linguistic and cultu ral. identity and integrate tbese two factors in
their strategic overview. 7 , tbey ensure that information about ali aspects of their
business operations js available in the national languages of the markets where they are present.
However, 8 , they too are reluttant to actually conduct business in a foreign language.

124 Unit 14
 Career skills Motivating

When people feel motivated by their jobs, it gives thern a sense of personal
satisfaction, which results in bett~r quality work. Keeping staff motivated is
therefore a priority for managers and supervisors. Look at the following phrases,
which can be used to motvate people.
a We're ali in this together.
b This is the last chance I'm giving you.
e I'm offering an additional commission to whaever ...
d It's in everybody's interests to ...
e J'm going to let you handle this.
f You get the business, you get the bonus!
g Come on. You've got to da better than that!
h Would you like to take full respansibility for this?

Look at the following approaches to motivating people. Match

phrases a-h with the different approaches.
using authority/threats
2 establishing a common purpose
3 giving people a financia! incentive
4 empowering peopl e to work autonomously

Listening 2 8 Listen to four dialogues. Identify one sentence from each dialogue to
add to the List (a-h) above. Indicate which approaches the sentences
correspond to.

Speaking Which of the approaches in the dialogues above would work for
you? Which would you adopt if you were a manager and had to
motvate a member of your staff?

El Which of the following do you think are motivating?

knowing that you are part of a team effort
knowi_og that the company is concerned about working conditions
fear of losing your job
being recognised for what you have achieved
working for someone who i_nspires you
being offered training courses to improve key skills

IJ Work in pairs. Take tums to play the roles of the manager and
employee in each of the situations on page 144. As manager, decide
which approach you would adopt in order to motvate the employee.

culture at work Providing incentives

How people react to incen tives to motivate them depends on their cultural
background. ln sorne cultures, people are mainly motivated by the desire to
achieve power and status, while in others there is less focus oo individual
achievement and more on the interests of the group as a whole. Wbat would
motvate people from your culture? What problems could result from
proposing the wrong type of incentive?

Unit 14 125
 Dilem ___
ec1s1on
Dilemma: Allocating the training budget Decision:
Brief
Ashdown and Kennedy, a manufacturing plant, had to take their 0 Lis ten to what Joyce
absenteeism problem seriously when they discovered that on any given Moorhead, an HR
day 10 per cent of the factory staff were off sick. In addition to this, high training consultant,
staff turnover was increasing recruitment costs and reducing thinks about the
productivity. Tbey asked People First, a human resources consu ltancy, to options available to
conduct a full study to ascertain the reasons for these problems and to Ashdown and
come up with solutions. Kennedy.
The study revea led that the majority of staff complained of poor
relations with line managers, who were said to be authoritative and
inflexible, and s uffered acute stress due to co-worker disagreemen
the genera lly bad atmosphere in
the workplace. Sorne of the staff
obviously had genuine ill-
health problems, bad backs
being the most common,
while more had problems
caused by poor di et, bei ng
overweight and lack of
exercise.
One of /he best Wc1ys to retain staff and keep help people to thnk more positively, manage
Task 1 moliVEtional levets high Is to provtde incentives time, enjoy cll!Jlenges and enhance
through tcaining schemes. Wetherefore propase relationships with co-workers and managers.
In groups, read the extract
from the report that People thatyou considerthe oplion of implementing an provide
First produced and discuss annuat traininu budget of approximately 5% of - intenslve one-day stress awarenesscourses.
the benefits and drawbacks the payroll lar al/ kinds of differenl training. Cost: 20% of budget
of each of the proposals. Oplions to considerln youtpartlcular - extenslvecourses run over several weeks,
circumstances11re.as folfows.: wlth astressconsulrant avaHab1etor one.to-
Task 2 onediscussions with statt members.
a) Health BiHl Rttlllss Awareness Tralnlng
for all stalf memt\e.rs Cost: 70% of budget
Decide which o ption or
combina6on of options Top Health e) Management Style Training lor ali lirle
you would choose for the managers
offer courses nn occupational health and
short term a nd for the long general litness awareness (keeplng people The Future Manager Consultancy
term, a nd give reasons. heal!hy and showing corporate social offer tailor-made lraining courses lor line
responslbility). managers.
Task 3 Cost 30% ofhudn.et propose acourse based on developing good
could provide gym and fitness lacilities on listening skills, setting reachable goals,
Present your a rguments to
the premises. complete with alitness trainer, becoming better communicalors and working
the class.
lor bes! long-lerm resulls. lowards llexibil ity.
Cost: 100% ofhudget claim that ltyou provide dictatorial managers
Write it up wlth theapproprate training, you will be
b) Stress Management Courses for ali staff
Write a short report on the taking apositlve step towards solving staff
members
Ashdown a nd Kennedy absenleelsm, turnover and health problems.
Key Associates
problem a nd how you Cost: 60%ot budget.
would salve it. (See Style claimtbat stress-reJated issues are always
guide, page 28.) themain r~ason for absenteeism.

126 Unit 14
 Global professional-service firms
PAGE 129

Reported speech
PAGE 132

Dtlemma: Consult.ant wfth a consdence

PAGE 134

The advice
business

Keynotes
Professional-service firms provide services to other companies, which often rely on expert advice
~om consultants who advise on strategy and policy maki ng. Investment banks and finan ce
companfos offer advice on financial transactions, while bookkeeping and auditing are often outsourced
to indepe ndent accountants or auditors. Legal matters are placed in the hands of law firms, and
information technology systems are regularly looked after by external professionals. Sorne professional-
service firms provide 'complete solutions' by offering legal, accounting and strategic expertise.
~owever, in the USA recent legislation limits the extent to which, for example, audit firms can give
,olicy advice on other aspects of business due to the conflict of interests this practice gives rise to.
 Preview Consulting services
Match the services (l-6) that the Chicago Consultancy Group offers
with the following areas of expertise.
branding corporate development pricing strategy
retail globa lisation

We help firms to hove a high~ ccHmlinoted approoch to the image they wanl to projecl.
2 Managers today often.ossume that lhey should focus on reducing costs to stoy competitiva. This is not !he on!y
course of action lo consider. Sometimes choosing to hove experisve ploducts s the best option.
3 Creoting above average shareholder value has moved to the centre of the senior1TJ0nogement agenda. We help
managers to toke the best exponsion options.
4 (omponies hove to deal with many more- markets thon in the post, and ,at different ievels of economic
development.
5 Focusing on the chonging needs and behaviour of consumers helps our clients emerge os leoders in this sector.
6 This is the core aspee! of oll our odvice. We help clients plan far the future ond put forword t~e best options to
choose from in all oreas of their business.

Speaking Read about consultants below. What arguments can you think of for
and against employing them?
Sorne people are very scepticaJ about the value of consultants' advice. There
are many jokes about them, such as 'A consultant is someone who borrows
your watch to tell you the time.' Top consultancy firms charge clients up to
$10 mili ion a year for advice, whether it improves performance or not.

Reading Cross-border consultants

D Read tbe text on the opposite page. How did the strategies
adopted by the accounting finns differ from those of professional-
service finns in general?

D Read the foUowing sentences taken from the text. Complete the
text with the sentences.
A smaU group of firms is showing how this should be done.
2 Russian subsidiaries now tend to be run by Russians, who prefer to buy
services from fellow nationals with detailed knowledge of local
conditions a nd rules.
3 Wherever western muJtinationals went to set up or buy a new business,
there too went their accountants, bankers, consultants and lawyers.
4 And what they are looking far is not the biggest global brand name in
their neighbourhood directory, nor the firm with the broadest range of
services on offer.
5 Things get done among such groups of individuals more by face-to-face
persuasion than by impersonal commands used by their clients.
6 For the likes of Art hur Andersen, these problems and confl icts have
already ended in disaster.

128 Unit 15

Cross-border consultants
Global professional-service finns
At last there is an intemational strategy tbat seems to be working
UKE the various groups of helpers
that accompanied ancient armies on the
march, professional-service firms fol-
lowed rheir industrial clients as they
expanded around the world in the 1980s
and J990s. (a) From Moscow
to Buenos Aires, the efficient profession-
al-service firms were ready to advise on
what deals to do, bow to finance them,
how to compute their consequences and
how to solve any problems involved.
1 lt was heady stuff, and it led sorne
professional-service finns to decide that
they should fol low their clients' exarn-
ple and go global as well. They dis-
patched their ambassadors around the
world and waited for them to attract
the new business that would juStify
their cost. The accounting firms, which
wcre among the more aggrcssive glo-
balisers, thought they could be likened
to ali the groups of helpers as well as to
the armies themselves. They took over
consultancy businesses, 6i1artce compa-
nies and law firrns, setting themselves
up as global chains of one-stop shops
with a "we do everything'' attitude:
"While you're in for an audit why not
buy a bit of litigation, too? And by the
way, today we have a special offer on
restructuring your company."
3 This was a strategy which created
enormous managerial problems, in addi-
tion to introducing a cascade of poten-
tial conAicts of interesr among firms'
increasing regulatory and professionaJ
duties. (b) For others, such
conAicts are still being discovered, a
process which is being speeded up by
legislation. America's Sarbanes-Oxley Act
bans accounting fums from carrying out
certain consulting and legal services for
their audit clients, and there are growing
restrictions on the provision of tax
services as weli.
4 The "do everything everywhere" strat-
egy looks like a problem for profession-
al-service firms. too, because no matter
how multinational tbeir clients, those
clients buy very few of their professional
services centrally. Purchases are, by and
large, the responsibility of local man-
agers. {e) They want the best
service fur each individual task, and tbe
nature of professional seIVices is such
that "the best'' invariably involves a
combination of superior local knowledge
and close customer-client relationships.
Glossary
heady stuff very exciting moment
cascade huge amount
blue chip well-known and
successful
Besides, the managers of multina-
tionals' foreign operations are less and
less likely to be expatriates these days.
(d) When those ancient
armies had fuught their battles aad
nally won, they left behind locals to
run their hard-earned territories. The
various groups of helpers retumed home
with the troops.
6 Yet there is a need fur professional-
service firms to be intemational, to a
limited extent Firms in the European
Union increasingly need to take a trans-
national view of things. And someone
has to co-ordinate the muhinationals'
local service-providers, be they auditors
or lawyers. (e) The so-called
"Charmed Circle" of blue-chip New York
law firms has an enviable record of prof-
itability, combined with modest intema-
tional expansion. Most of the.5e firms
have also chosen to join an infurmal net-
work of top-ranked firms around the
wodd. The network's firms exchange
lawyers and run joint training pro-
grammes. (~ Umil someone
proves there is a better approach. this
seems the way forward for most otber
professional-service firms as well
Unit 15 129
 11 Read the text again and answer tbe questions.
1 What kind of problerns did the accounting firms' strategy create?
2 How has the US tried to solve sorne of these problems?
3 Why do sorne global compnies not use the services of global consultancies?
4 Why is it necessary to have sorne international professional-setvice firrns?
5 What have the top New York law firrns managed to do successfully?

El The text refers to many different groups of people or institutions.

Complete the statements below with the following.
Accounting firms New York law firms Arthur Anclersen
Managers of foreign subsidiaries The Sarbanes-Oxley Act
Industrial clients of professional-service firms

1 decided to go global first.

2 developed a takeover strategy to forrn conglomerates.
3 prevents audit specia lists frorn giving advi ce on certain
strategic, tax and legal rnatters.
4 closed after serious financia! scanda ls.
5 are rarely expatriates.
6 have the best approach so far.

Speaking D Do you think consultants can be objective when evaluating the

strategies they have irnplemented?

El What advantages do you think 'face-to-face' persuasion has over

impersonal commands from an unknown person in the hierarchy?
How would you prefer to receive instructions?

Vocabulary 1 Uses of Like

D Study the examples taken from the text on page 129. They all
contain expressions with like. Complete sentences 1-4 with the correct
expressions with like.
a Lihe the various groups of helpers that accompanied ancient armies ...
(para 1)
b The accounting fi:rms ... thou ght they could be lihened to all the groups
of helpers as well as to the armies themselves. (para 2)
e For the lihes of Arthur Andersen, these problems arui confticts ha.ve
a lready ended in disaster. (para 3 - missing sentence 6)
d The "do everything everywhere" strategy toohs lihe a. p roblem for
professional-service firms ... (para 4)
1 ----- is a synonym of to appear to be.
2 ----- is used to gve an exarnple.
3 ----- refers to a type of person or group of people.
4 ----- is used to compare one thing with another.

130 Unit 15
 Complete the arride with the appropriate form of expressions
with lhe.

Outsourcing to 1 th ch
. eicago Consultancy Group and other bg consult" firms ""n
sometrmes have a negative im et th ing .....,
. pa on e mora le 0f staff. They feel threatened and often i
c:onsultan ts to messengets of b~d 1 - - --
in the firm. lt isn't alwa 3 news, expectmg the downsizing' process to start soon after their arrval
. . ys that, or cota:se, but whatever the effect on individuals or Ol the
company paymg the M1gh fees, consulta nG.y" be"ing .... th lJ t .
vv l s or some time ro cme.

Vocabulary 2 Word building

Complete the table with the other forms of the words taken from
the text on page 129.
Verb Noun {concept) Noun {person) Adjective
manage mana9emenj( manager manageriaV managlng
finance

/ consultaht /
/

audit
strategy
regulatory
knowledge /

Practice Complete the article with the appropriate form of words and
phrases from Vocabulary l and 2 .

Controlling the controllers

Accounting firms who werc originally h:ed lo carry out
independcnt 1 audite ou the 2_ _ __
si:tualions of co mpan:ies saw that they cou ld offcr advicc
at the same time and incrcase their income throagh Lhc
provision of ~ services. l lowever. the
Securities a11d Exchange Commission saw a potenliaJ
confli ct of intcresl:s as t.bc big auclitors couldn'l be
expccted lo give objective feedback on ~---
policies thcy themsclvcs had saggested implerncnting.
Tbe SEC therefore decicled lo introduce restrictive
measures to ban accounting firms From giving advice
on mattcrs othcr than accounting.
The accounting indastr) opposed thc first attcmpt at
5 by getting infl11ential people 6_ _ _ _
congressmen and lawyers to writc to the SEC opposing
the ban. The SEC withdrcw the proposal. Just '' hcn it
1
viclory for the accow1ting industry, a
series of corporatc scandals involving. among olhcrs.
Enron and Arthur Anderscn occurred. 'lis led to the
Sarbanes-Oxley et, wh.ich cnsmed tighter co11lrol on
financial state111ents, by making the senior 8_ _ _ _
staff of companics ultimatcl} responsible for Lhc
acc uracy of in fonm1tion conceming the valuc of shares
ancl company performance.

l ln it 1'i n1
 Language check Reported speech
When using reporting verbs like say and tell in the past, we generally make
verb and time changes to the direct speech we are reporting.
'He was here yesterd.ay.' -+ She sa.id (t1tat) he had been there the day before.
We don't always make these changes, especially when reporting a fact that is
still true or when reporting very soon after the d irect speech.
'Consultants can be helpfu! beca.use they're objective.'
-+ They told us (t1tat) corisuLtants can be heLpful beca.use they 're objective.
-+ ... corisUltants could be hel11ful because they were objective.
We often summarise a nd use d ifferent wording instead of reporting word for
word.
'Jt is important to do SD'l'ne research and check as -nia.ny of the fa.cts as we can
arui only then discuss everything so that we can come to a decision about
what course of acticm w e should take.'
-+ He said we should look into i.t al! first and then decide what to do next.
We can use other reporting verbs, which can be followed by:
an infinitive (agree, ash., decide, dema.nd, offer, promise, refuse, want):
'l'U reduce the fees 1fyou lihe.' -+ H e agreed to nduce the fees.
a gerund (admit, deny, rnenti.on, recommend, suggest):
1 made a mistake with the figures.' -+ H e admitted making a mista.he
wi.th the figures.
a n object + infinitive (a.dvise, ask, instruct, invite, remind, teLt, wam):
'You should lower y our pri.ces.' -+ They advised m to lower our prices.
;ri For more information, see page 163.

listening 1 0 O Listen to the managing director of a department store talking to a

consultant and take notes under the following headings.
J market share 4 options
2 pricing policy 5 consultant's advice
3 customer survey results

El Summarise what the speakers said. Answer the questions below

using reported speech and the reporting verbs in brackets.
What did the managing d irector say to the consultant concerning market
share? (tell)
2 What did she say about their pricing policy? (admit)
3 Wh ich results of the customer survey d id she highlight? (point out)
4 How did the consultant rect? (ask)
5 How d id she answer him? (explain)
6 What did the cons ultant tell her to do? (advise)

Speaking If you were the managing director, would you take the consultant's
advice? Why / 'W hy not?

Writing You are the managing director in the conversation above. Write a
forma) email to your staff, summarising the conversation you had
with the consultant. (See Style guide, page 20.)

132 Unit 15
 (areer sl<.i\\s Repomng

A large part of offtce life is spent reporting back orally to one's colleagtJes and
bosses about conversations at formal and informal meetings. Reporting back
requires accurate observation and memory skills as well as summarising arid
communication skills. Sometimes the person reporting back is also expected to
make a recommendation about a course of action or decision to be taken.
Look at the following useful phrases for reporting back on conversations and
meetings.
a We ftnaUy all agreed to ... e What he wants us to do is ...
b He suggested telling them ... f The bottom line is ...
e What he was trying to say was ... g I recommeod / I suggest ...
d In short, she is refusing to ...

Listening 2 E) Listen to a line manager reporting back to one of her team

members and answer the questions.
1 What is the first speaker reportiog on?
2 How does the second speaker react?

O Listen again. Which of phrases a-g above are used by the fust
speaker?

Speaking Work in pairs. Student A tum to page 139. Student B tum to page
144. Read the dialogue of the meeting. Imagine you were at the
meeting too and report back on it.

Listening 3 8 Listen to both dialogues and decide if your partner reported all the
necessary information.

Culture at work Reacting to change

Sorne cultures adapt quickly to change and see itas a matter of course or
even progress, development and growth. Sorne cultures are more
conservative: they resist change where possible and perceive it as always
being problematic and negative; and they don't like to take advice from an
outsider. What is common in your culture? How might th is difference cause
misunderstanding in multicultural teams?

Unit 15 133
 Dilem
ec1s1on
Dilemma: Consultant with a conscience Decision:
Brief
CIC ConsuJtants is proud of the performance of one of its main clients, 8 Listen to what someone with
Power US, a global enetgy trading company. They have reported high a similar dilemma decided to
earnings and a 10 per cent growth rate since the consultahts started do and what the
advising them five years ago. CIC not only gives advice on strategy, but its consequences were.
auditin.g department produces the official figures for Power US as well
Sue Kelly, a senior accountant at the consultancy firm, was first alerted to
problems when the CFO of Power US asked her to le to one of the
company's partners about an investment. She refused on moral grounds
and soon after that he.[ boss transferred her to another company.
Recently, she discovered that Power US is involved in massive fraud and
she is now facing an ethical dilemma: should she report what she knows
to an outside financia) iegulator? Both companies are very powerful and
even though she can provide proof, her word may not be taken seriously
and in that case, she will never find another job in consulting.

Task 1
Work in smaU groups. Read the consequences of the two options open to
Sue Kelly. Can you think of any other possible outcomes in each case?
Option one lf Sue reports the problem to a regulator, and they open an
investigation ...
She will lose her job immediately.
Power US artd ere Consultants rnay go bankrupt.
She will have to testify in court against former colleagues.
The bosses of both companies will have to pay huge fines and possibly
go to prison.
Option two lf Sue decides to say nothing and leave Cie Consultants ...
lt is possible that the fraud will never be discovered.
lt is also possible that things will get even worse as time goes on.
She will feel responsible for not stopping a criminal activity.
She could probably find work in another consultancy firm
but would have to lie about her reasons for leaving CIC.

Task 2
Hold a meeting to decide which option she should take.

Task 3
Choose a spokesperson to report back to the other groups
what was said and decided at your meeting.

Write it up
Write the minutes of your meeting. (See Style guide, page 26.)

134 W Unit 15

Language check
n-ference word
Read the article and decide what the words
in italics (J- 6) refer to. Then complete the
rest of the article (7- 10) using sorne of the
words from 1-6.
oldman Sach:.. thc famous investment bank. can
G 1race its origins back to J887. 1
was when
Tlwr
Marcus Goldman set up his first company in New York.
The bank was thc first 2one to set up " Mergers and
Acqujsitions deparunem and a Real Estate Managemelll
department. 3The former spedalised in advising
comparues who wished to form partnerships with or
acquile other bu inesses, and 41/ie /a11er provided advice
for the management and acquisition of business
properlies. 5These wcre two of the foundations of the
co.mpany's success.
The compimy has always hada uniquc reputarion on
Wall Slreet 6This i!' partly due to the fact that the
company was onc o very few prvate investment banh.
However, a1J 7 was about to change, and in
1999 it launched its owa lPO. 8 was a
hugely successful operation, raising a record
$3.6 biJlion. Since rhen, thc company has conlinued to
perform wel l and incrcase its range of serviccs. Today,
9 include debt reslrucruring for governments
and asset managemcnt for wealthy individuals. Goldman
Sacbs' client list include:. such companics as Samsung
and DaimJer-Bcn7. Only receatly. il advised
10 during its merger with fellow automobile
manufacturer. Chrysler.
Clauses and s ntence construnon
Complete the sentences with the following
words or phrases.
since unless in arder to although
qespite until which whose
Mark Simpson, company
specialises in security training, will be leading
the first session.
2 _ _ __ _ sorne companies do provide
systematic language training for ali staff, most
do not.
There is no point in giving employees
expensive training it contributes
to improving their performance at work.
4 The stress management workshops were
introduced reduce the number of
workdays lost to stress-related illnesses.
S. We can't fix a date for the training course
_ _ _ _ we know exactly who needs to
attend.
6 a lO per cent decrease in our
training budget, we have been able to offer a
wider variety of courses than ever before.
7 we do not have the faci lities bere
at head office, we wilJ be running the course at
an externa! training centre.
s Improving the communication ski lis of our sales
staff is one of the a reas we need to
focus on.
Peported spee'"h
Find and correct the mistakes in the phrases
in ita.tics. Sorne of the phrases are correct
The auditors have asked we give them full access
to our financia! records.
Our advisers ha.ve suggested introducing a
standard invoicing procedure for ali divisions.
~ They have refused accepting responsibility for
the programming errors and they have toLd that
it is our own fault for installing the system
incorrectly.
4 The consuJtants have advised that we not
employ any extra staff during the coming year.
The firm has promised to complete the survey of
our accounting procedures by the end of tbe
rnonth.
Consolidation
Choose the correct forms of the words in
italics.
In the forthcoming fight to eliminate global poverty,
1 which/that remains one of the UN's top priorities for the
coming decade, microfinance will be playlng one ofthe key
roles in the attack. Microfinance is not charity, say 2its/their
supporters, 3that/who argue that 4it/this is only another form
of investment, Ssince/although it provides credit to low-
income households. Kofi Annan, 6whose/Who s efforts to
alleviate poverty around the world are well-known,
understands how difficult 7 it/this will be to ma ke tne UN's
Year of Mioro'flnance a success 8unl.ess/despite
microfinance institutions and Wall Street investtnent banks
can find a way to work together to reduce poverty
9
while/when enabling the rich to stay rich. Speaking at a
recent conference, he 0 advised/suggested his audience
that 11for /in arder to achieve this, 12the former / the latter
would have to make sorne fundamental changes to the way
they see their role in the twenty-first century.
135
1 Vocabulary check
D Complete the text with the appropriate
form of the following verbs.
pay off loan borrow invest deposit save
Anwar Khan runs a small bioycle repalr shop. He stanetl his
business whcn a microcredit banlc agreed to give him a
r of $100. With the money. he was able to
_ _ _ in basic equipment and tools for his wor:kshop.
After two years in business. Anwar has 3
debt to the MFI and he has also 4 a small sum of
moncy wh1ch he ha~ ~ in a savings account. He now
intends to use thar mone)' as secwity in arder to ~--
the $500 that he needs to e.pand his business fun:her.
El Choose the correct fonns of the words in
italics.
1 We illustrate our strategic planning course with
specific case studies / tutori.als, which focus on
what companies have done in the past.
2 AlJ tretinees/trainers will be given the choice of
attending either an intensive seminar or
regular weekly classes.
3 The HR department has announced that there
will be a 15 per cent reduction in the training
course/bu.dget this year.
4 As levels of stress increase, this eventually leads
for/to lower productivity.
5 In today's seminar, we are goi ng to focus at/on
sorne simple exercise techniques.
IJ Complete the sentences with the
fuitowing words, adding an appropriate
suffix where necessary.
manage finance regulate knowledge
The best way to furth er
development would be to sell a stake to a
venture capitalist.
2 lt's a pity that j eff has decided to leave. He is
one of the most consultants we
have.
3 New graduates always have the technica l
qualifications but not always the - - - - -
ski lis needed to supervise staff at work.
. The SEC acts as the official for the
stock exchange, and all listed companies have
to comply with its rules.
5 The year is divided into four
three-month periods, or quarters.
6 Jane Farley has been prometed to CFO, and she
wil l bejoining our senior team.
136
Career skiUs
Persuading
Match 1- 5 with responses a-e.
1 Unless you're prepared to make an effort 1'11
have to consider terminating your contract.
2 Ali things considered, it would be best to
postpone the launch for six months.
3 After looking at all sides of the argument, I'm
recommending that we cancel the project
half of his
immediately.
4 I think we should forget our differences and just
focus all our efforts on findin g a solution as
quickly as possible.
5 What wi ll happen i.f we lose the contract?
a l agree there's no point in wasting any more
money than we already have.
b But then our competitors will get their products
out first, won't they?
e I don't see how you can say that. rve always
done my best, and you know it.
d l think we know that it's in ali of our interests to
make sure that doesn't happen.
e You're right. After all, we're ali in this together.
Motivating
Find and correct the mistakes in each
senten ce.
1 l'm going to Let you to handle this.
2 It's in ali everybody's interests to sell now.
3 Would you Jike taking responsibili ty for tbis?
4 Come on. You've got to do the better than that.
5 We're each in this together.
Reporting
Put the dialogue in the correct order.
O a And what did they say exactly?
O a What! 1hey're not suggesting we get rid of it
completely, are they?
O a So, what did the European director bave to
say about that?
O a r wonder what the outcome will be.
O a So, what happened at the meeting?
O b They said they wanted us to sell our
European subsidiary.
O b Well, the consultants gave usa full summary
of their findings.
O b In short, she is refusing to consider that.
o b rm afraid they are, yes. The bottom line is
that we may have to close the whole business
ifwe don't
Unit 2 page 22 Dilemma: Student A
ne opton is to purehase and instaU additi0nal testing machinery at the factory in
Frnnce to handle tbe additi.onal productiQn. Yu have esti,mated that you wouJd need
between fi.ve and -5ix new maehines. Yeu are sure that they could be deLivered whhin
three months and installed in one to two weeks.

Unit 4 page 40 Dilemma: Group A (Director of Information)

You re)i>re~ent tb,e US parent company. F)r you the situation i.s clear: DigitalV~si0ns has to
compJywith the new: legis lation and then:~fore a Uemployees wlthm tlregroup must accept
the new pmcedures. AJ I employees of the group will be entitled to use the notline to
eommunicate information ab0ut misconduct or aUeged miscondu.ct. As far as you are
com:erned, this wilJ be an a~vantage for -the oompany as a whole as it wilL'a11ow S11ior
managers to deteet pt0blems that coUld eventually lead to litig-ation an:d preve very costly.
rt is ih everybne's interests to a:ccept the propasa! for the hotlin, which, in your view. will
soon become the standard procedure i:n ali majar business organisations.

Unit 7 page 66 Dilemma: Student A (Sweetface)

Guidelines for the negotiation:
Annual turnover $100 million
The legal conflkf,culd dlay long:-term plans to ex.pand th.e brand.
Would 'Glow Industries' be prepared to seJl the business and the rights to the name?
At what pri.ce?How much compen.sationwould they ask for?
lf Glow refuse to seU, y9u cait threaten to- take further legal action against them a$
you .have recently acquired a compaily tlrat <;1lso uses the GJqvy' na.me 9ut which
registered it before either Sweetface'or GJew Industries were set up. You e0uld sue
Glow lnclustries for usin,g ilie name.

Unit 10 page 9~ Dilemma: Group A (Non-governmental organisations)

!be arguments that you wou.ld like to p.resent are the following:
lbe natural r~ou.rces of develo12ing eountries should be xploited in a Sl..lstainahle
anc:! environment;Jly friendly manrrer.
Safeguards on polJl,ltion Jevels fr fossil fue! pi;oje~ts (coal-fired powe.r plants. etc:) are
not respec.ted and there are inarleq_uate inte,m.ational co,ntrols.
Untesuainea develop.inent of fssil fuels wf crea te more pr<l> blems than it wi.JJ soJve
(greater use of vehicles for transport. industrial pollution, utban d~.elopment).
StatistiS show that it is principally developed countries tll.at use fossil fue! ener.gy
resources.
Alternative-energy sources must receive World Bank fi.nancin_g as thi.s will help to
brin~ the price down and to make them more cmst-effective.

Pairwork 137
 Unit 2 page 22 Dilemma: Student B
You think that a good tong-terin optio:n would be to use an 0utside cempany and 1<1).
tonauct ali testihg externaUy. You ktiow that-there are severa! organisations that could
do the work for yu. Infineon would have to paya fixed rafe for each item to be tested
In ~ddition t that th~lle woulcl be a s.et fee fr reserv.jng te~ capaeity- in other words.
Irifi.neen weuld hav~ to pay even when th;ey hacl n:o need for the extra testng capacy.

- -page 40 Dilemma: Group B (European Director)

You were not inforrned of the xact text inluded in the directive that has been sent t0
the Rurnpean sub~id.iacy, and neither you ~Qr any m~mber of yo~ management team
wa'S eensulted. the eieeisi0n has been. it;nposed on you ftem ab<;>~e Your felingis that
itt will pro.ve ro be a source of c0nflict arn@ng employees, ma'hagers ano celleagues ami
may in fact create more problems than it salves. You are in favour oflaunthng an
extended djscussi0n phase dunn~whiah negotiations caTI be conducted between the
different stal<enolelets to reach censen~ual -agreement.

Unit 7 page 66 Dilemma: Student B (Glow Industries)

Guidelines fur the negotia.tion:

Annual turmwer $2- 3 million
Eut;ther legal action coukl be eJl:tremeLy expensive and yut budget is
limited.
Your plans to sell through major super markets may be compromised.
ft might be possible to sell the company and th rights to .t he name to
Swee.tfa:ce Fashion. Wo.uld they be interested? At what price?
How wou:ld Sweetface compensate you for theeffort in establis.hing the
name 'Glow' a,nd J:r. the foss 0f business?
Jfyou win your case, y,0u W~1,.tlGI receive a significant shareofthe pro.fits
made by Sweetfce.

Unit 10 page 92 Dilemma: Group B (E.nergy industry representative)

The ai;g~ments that you would like to pres.e nt are the following:
The world ecpnomy needs to meet increa$ing demand for energy1 and fossil
fuel~ are the only avaiJable and reliable Fesource.
Exploiting these reserves will pro't'ide emRloyment and j0b 0pporruruties
around the w.rld.
The arguments usecl by environmental groups abeut the effeets -of fossil fuels
on global watming may be exaggratoo.
Renewable energies are nota vfaole alternafive.(too costly and unreliable).
Providing finance for fssil fuel projects wJJJ help to eradicate poverty.

138 Pairwork
Unit 8 page 74 Dilemma

Clearly Chic are a luxury bandbag maker facing a similar dilemrna to Burberry's, but with
the added problem ofcbeap fakes of their most expensive models now flooding the
market. Sorne people think the way to deal with the problems is to produce cheaper, more
accessible models to a) encourage the new, trendier customer base and b) compete with
counterfeit goods.
Prepare fully-developed arguments from the fo llowing notes.

The case for extension

Sales up
New target
People will only buy fakes if no extensio?
New price strategy needed to compete w1tb fakes
New ma rketing strateges to exploit newtarget could be ...
Present target getting old
The case against extension
Sales increase only temporary
Y?ung t~rget influenced by trends
R~sk losmg loyal customers if ...
Rsk losing brand image if ...
Cheaper v~rsions give credibility to fakes
Need to remforce no tion of quality to beat fakes, not the contrary

Unit 15 page 133 Reporting: Student A

Production manager: rm glad to get a chance to speak to you before you prepare your
final report. I promised to keep team members informed.
Consultant: No problem.
PM: So, what have you come up with s-o far?
Consultant: Well, tbe results of the customer satisfaction survey are pretty bad,
l'm afraid. There were a lot of negative comments about delays,
high prices and poor quality. This seemed to suggest that the
production department just isn't profitable anymore.
P!\11. So, what are you saying?
Consultant: Well, to be honest, we were thinking of suggesting outsourcing
production, but a little further research revealed that your main
problem can be solved by changing suppliers. So~ we're goin,g to
recommend changing to more competitive, effkient and e0st-
effective supptiers. Do you think there will be any resistance to a
change like this?
PM: I'll explain the alternative, which is job losses, and there shouldn't
be a problem!

Pairwork 139
 Unit 2 page 22 Dilemma: Student C
You are in favour of setring up a new, centralised testing plant that would handle ali
the testing for ali the Infineon plants. The advantage would be that all testing could be
p lanned centrally; and co-ordinated with the other pJants in the group. You do not yet
have a precise figure for the investment that would have to be made to build, equip
and staff tbe new facility. This will require furtber research.

Unit 4 page 40 Dilemma: Group C (Trade Union representative)

You and your members are very unhappy with the proposed code of conduct. You
consider that the text of the document constitutes an invitation to employees to
communicate confidential/private information about tbeir colleagues. This is not only
morally unacceptable, it is also in direct contradiction to the employment laws of
severa) European countries where DigitalVisions operates. In your view, any accusation
rnade against a fellow worker must be backed up by evidence to support the
accusation and the person accused must be informed of the accusation and given an
opportunity to defend themselves.

Unit 10 page 92 Dilemma: Group C (Developing countries)

The arguments that you would like to present are the following:
Energy resources are vital for economic development.
Fossil fuel resources can be exploited in a responsible manner, but onJy if the World
Bank is prepared to provide the capital necessary to build plants with low pollution
impact.
Placing restrlctions on fossil fuel development will prevent developing countries
from exploiting their reserv.es and will i ncrease poverty.
Altemative energy can be introouced but fossil fuels can continue to be used at the
same time.
The World Bank has no right to dictate standards ofbehaviour to developing
countries.

Unit 13 page 118 Dedsion

______ ____
...__.. ____
........., ~ _____ _______,
.,......,.

The Conunercial French court instructed T he president of tbe bank's F rencb

M organ Stanley to pay ti 30m in damages to
LVMH and appointed an expert to examine
the case, whicb could Jead to M organ
Stanley paying even bigger fines.
operation said the decision was bad news
fo r investors both big and small. One fear is
that tbe judgement will lead to analysts
giving only positive reports of company
performance in order to avoid legal action.

140 Pa irwork
Unit 11 page 99 Presentation notes

li@i!.!ifj Review

two years ago last year this year

Turnover $2m $5.9m $10.6m
Net 1ncome -$3.0m -$1.8m $2.0m
Market share 5% 9.7% 11.5%
Number of registered patents 39 108
Number of l1cence agreernents 5 15

lffil!.!.fl Analysis

Potential risks competitors' development of rival products I economic downturn /

avallability of speciallst staff I dependence on a limited number of
major clients / research and production costs
Challenges continuing developmenl of commercially viable products

li@!!,!.il Structure

Capital
Existing shareholders Gary Patton 30%
Francis Fairbank 30%
Venture Associates 35%
Employees 05%

Management board
Directors Gary Patton, Francis Fairbank, Daniel R1vers, Bo Larrsen; two
new directors will be appointed
Voting rights E.xisting shareholders wlll retain majority
Emp/oyee stock options Ali employees will be offered 2,000 shares

ljill!.!...j Share offering details

Underwnter Norman GradweUBank

Number of shares proposed 3 million ordlnary shares
Price est1mate $10-$16 per share
Launch date 15 October
Auditors Accla1m lnc.
Stock market New Jersey Stock Exchange

Pairwork 141
 Unit 2 page 22 Dilemma: Student D
Si nce ali of the ex:isting factories have their own test equipment you think that it
should be possible to introduce a new process whereby products to be tested could be
'offloaded', or sent, to another factory which has available excess testing capacity. This
would require standardisation of test procedures across the group, the development
of an informarion system to transmit data to the re~evant production glants and the
setting up of transport and logistics.

'
Unit 10 page 91 Problem ... solving
Statistics for accident rates at one of your factories show that there has been an
unexplained rise during the last month. Journalists from a local television station
have called to askyou for perrnission to vis the factory and interview workers.
2 Your department has finished developing a prototype personal music system,,
whicb you arenow planning to bring to the production stage. You have contacted
the only company that can supply the battery charger, which is a key component
of the system. They have informed you they have just signed an exclusive
agreement with a competitor and will not be able to supply you with the chargers.
3 Your: company Is seeking to qualify for a government subsidy as m
environmentally friendly business. You have just been informed by the
Department of the Environment that you will need to install an expensive new
waste management system in order to qualify.

Unit 11 page 100 Dilemma: Group A (Bank representative)

The bank has only been able to secure firm commitments from their customers for 50
per cent of the 15 million shares that they are hoping to sell.
lt is dear that the IPO will not be a success if it is launched at the current price of $30
per share.
The bank cannot afford to disappoint its professional investors by launcbing an
unsuccessful JPO. There are now three options:
further reduce both the price of the shares and the number of shares that will be
offered for sale
continue with the IPO under existing conditions
cancel the IPO for the second time

142 Pairwork
 Unit 12 page 107 Handling conflict
Your manager agreed to allow you to take your summer hqliday on specific
dates during the month of August. He/She has just told you that you will
have to take it ata different time as one of your colleagues has been given
p,ri0rity far the same dates.
Your sales manager is trying to impose mi nimum sales of 150 units per
mortth for each sales representative. The reps have already reported that
customers are unhappy with the quality of the products and that sorne are
switching to a new competitor's products. You are a rep who feels that it is
impossible to meet the target.

Unit 12 page 108 Dilemma

DIRECTOR A
You believe that Thums Up has a future asan independent company
on the lndian market. In your view, it has various advantages over
other western colas: the company is lndian and enjoys a reputation
that differentiates it from its future competitors' brands. In addition
to this, Thums Up has a stronger taste and appeals to a masculine
audence who consider it to be revitalising. You would advise the
company to enlarge its distribution network and invest in promoting
its brand.

1 DIRECTOR 8
You think that the arrival of the US cola companies will seriously
reduce the market share ofThums Up. In your view, lndian consumers
will quickly switch to the western brands, which will be backed up by
massive publicity campaigns and sophisticated marketing techniques.
You would advise the company to change its orientation and diversify
into other sectors such as bottled water.

!
DIRECTOR (
You fear that Thums Up will not be able to resist the invasion of the
market and that it will be una ble to survive in the long term. You think
that the company should negotiate with either Pepsi or Coca-Cola to
see whether it would be possible to sell the brand to either competitor.
You consider that it might be possible for Thums Up to negotiate a
contract with one of the companies to become the official bottler of
their prod ucts for the lndian market. You woutd use the proceeds to
build up the other soft drink brands that Thums Up owns.

Pai1work 143
 Unit 11 page 100 Dilemma: Group B (Hi Wire senior management)
Hi Wire is already committed tG a number of new ventures which Lt mtends to
frnance witb money from the lPO.
At the moment, the TPO is proposing lS million shares at $30 per share.
Without this injection of capital, the long-term plans of Hi Wire would have to be
modified.
lf the bank has not been able to sell the IPO to its investors, you will have to consider
the following options:
further reduce both the ptiee of the shares an the number. of shares that will be
offered for sale
continue with the IPO under existing conditions
organise the IPO as an intemet launch without the support of the bank
cancel the lPO for the second time

Unit 14 page 125 Motivating

A manager is conducting an appraisal of an employee. On severa! occasions, the

employee has had serious disagreements with his/her supervisor, who has
complai.ned about his/het lack of productivity at work.
1 A computer engineer has infurmed the Director of Informatio,n Systems that there
is a potentially dangerous flaw in a software system. His/Her immediate superior
has refused to give him/her time to work on finding a solution. 'fhe Director of
lnformation Systems needs to ensure that the engineer somehow finds the so lution.
1
A machine operator has informed the production manager that the machines in
the workshop are now getting too old and require frequent maintenance, which is
causing del_ays. He/She is suggesting that they are replaced with new machines, but
these have not been budgeted for and the old machines will have to stay in servioe.

Unit 15 page 133 Reporting: Student B

Team manager: Hi1Terry, how are you?
Supplier: Fine, thanks.
TM: We have a big order to put in this month and it is pretty urgent
Supplier: What kind of deadl ine are we looklng at?
TM: Two to three weeks maximum.
Supplier: 1 don~t think w.e could meet that deadline. r co.uld make you a
priority but it would mean a bit of a price increase. You'll have
problems finding anyone eJse in the market with the same quality
- it might be worth your wh ile doing a deal with us on this one.
TM: Look, L'll be honest with you, rll have to try to find someone else-
a price increase won't be accepted in the preseot climate. I get the
feeling our consultants are going to recommend outsourcing
production if we don't become more cost efficient.

144 Pairwork
Unit 1 page 14 Decision
The fo llowing are q uotes and extracts from press releases about
the alliance between the two compan ies.

~
' I got straight on.to a p\ane with a rucksack full o~ ali the good
tbiugs wc do on the enviroumen\ and safety and ui ~he.
comrounity and 1 wcnt to Vermonl to see thcm. t said: 'You1
choice i you can do your \ittle thing in Vermont or you can be
. -----------~
'Neither of us could have anticipated twenty
years ago that a major multinational would
sorne day sign on, enthusiastically, to pursue
7
part of us a:ud we can do it everywhcre'~ . and expand the social mission that continues to \
Niall FttzGerald
b~ ~n essential part of Ben & Jerry's and a
dnving force behind our many successes. But

..--_...,____
Not only win Unilevcr continue to donate 7.5 per cent of
-- today, Unilever has done just that. We hope
that. as part of Unlever, Ben & Jerry's will
contrnue to expand its role in society.'
Ben and ferry

---------.. i
Ben & Jerry's operating profits LO charity, but il wiU use Be
Cohen and Jerry GreenfieJd to help design its social policy~
1
__.,,.._~~ -.
Under the terms of the agreement, Ben & Jerry's will opera te
with an independent board of directors, which wlll focus on
providing leadership for the social mission and brand
ntegrity of Ben & Jerry's.
~--_.__..,,.,......__,,,..-~-,

Unit 5 page 48 Decision

NESTA decided to give all these companies grants to commercialise their products.

1\.. TESTA invested :1:70,000
1 ~ UTDR R esearch.
spokesperson from NESTA said,
'We are cornmitted to suppo1ting
innovative ideas that can help lo
buiJd a greener, more sustainable
fulure. The UTDR team have
found a novel way of dealing wilh
a growing environmental problem
and we are de lighted ro be
providing the sccd investmenl to
help Lhem to develop their tyre
disposal system ar this crucial
stage of the project.
Hypertag Ltd received lheiJ
first finandaJ aid package of
in f80.000 in 2002 ro develop Lhc
A lclmology. The B rooklyn
Museum launched lhe ' pocket
museum' in October 2004.
NESTA said, 'These are exciting
times for Rypertag, who have
developed a technol ogy that is so
attracti ve Lo so man y markets. lt is
greaL thac a major US museum has
seen Lhe potencial for using it for
educational purposes.
Nanosight receivcd .fl00,000
fovestment from NESTA. M ark
White, director of NESTA, said,
'We a.re delighted to be investing
in chis early stage of an idea wbich
applies tcchnology Lo areas which
could havc huge social benefits
such as tlcfence againsl tbe ever-
growing lhreat of bioterrorism.
Camfed received an
investment of i 150,000 from
NESTA to help them to develop
the protoLype of their tcchnology
to engagc major corporate
customers. The market for
consumer clisplays is huge. Sales
are projecLed to excccd f.1 Obillion
by 2009.

Pairwork 145
 Unit 6 page 56 Decision
----~~~~~~~~~~~~-

Followin the release of its new adventure game Danger Zone, the vid~o ~anufacturer Wonder
gh b asked by the /:>SC to withdraw its frst TV commeroal in support of the
lmage lnc as een t h. h was first shown last week on national televsion. sparked a
launch. The advertisemen w ic . . h di et f t he ASC
storm of protests from viewers and parents' associat1?ns. 8111 Bradley, t e . re or o , se
explained that the decision to ask the co!11pany t~ withdra~ ~e commer~a~:~~~a::~n b;:~
of its 'offensive nature': 'The ASC gudehnes spec1fy that al a ve~isemen 1 t th
taste and should on no account promete volent behavour - wh1ch unfortunate y ~a~ n~the e
case with the Danger Zone commercial.' A spokesperson for Wonder lmage lnc sa1 . . a
d . . b the ASC to ban the commercial was 'an exaggerated response toan original and
a~~~:~~ te~evsion campaign'. The launch of Danger Zone will proceed as planned but wthout
the support of the television campaign, the spokesperson added.

Unit 9 page 82 Decision

..... :iJ" .. _

When Dov Chamey, the founder of American

Apparel, went into the highly risky T-shirt
~anufacturing business, he famously said, 'We
a1m to seek profits through innovation not
explotaton. He refused to outsource and
instead payshis employees $12 per hour as well
as providing benefits such as healthcare
massages, English lessons and free use of th~
telephone. He has built up a royal staff of 1,200
employees and after Just six years in business
his turnover reached the $160m mark - highe;
than many of his direct competitors who
o~t~ource. His success proves that people are
w1llrng to pay for quality and do care about
corporate mage and reputation. He says, 'I make
more money than my competition who pays 50
cents an hour, because of the efflclences of
dearing wi~h someone tace-to-tace and paying
them a fa1r wage. My vision is to bulld new
economic models and new kinds of businesses
t~at red~sign the entire production, supply and
d1strlbutron process in a way that makes more
people happier.

Unit 10 page 92 Decision

The Extractive Industries Revew
(EIR) has published it
rccommendations for the energy
policy ofthe WorldBank. Far from
comforting the vested interests of
the majar players in the energy
indust:ry, the report has openly
crticised lbe Bank for the way it
has bandled fossl fuel
development projects over tJ1e last
decade. Far energy ndustry
executives. the report reads lke a
nighunare: funding for coal -
related projects should cease
immediately and financia! support
foroil production should be phased
out entirely with n the next cen
years. But cbe report gocs further
tban that and highlights a number
of negarive effecrs lhat have
resulted partly from the World
Bank's energy polky. The ljst
is a long one and includcs
environmenral and human rights
abuses whlch reveal an almost
systematic failure to rcspecl Lhe
rights of indigenous peopl es and
to protect senstive ecosystems. As
part of its recommendations. the
com.m.ission has advscd che Bank
to devote 20 per cent of ts ftme
loans in the energy sector to the
development of allern ative energy
projects. How much of the report
willeventually become establisbed
Wodd Bank policy, however,
remainstobe~s:e:e~
n ~~-~~~~~

1~ Pairwork
1m Alliances
acquisition n [C,U] when one company buys
another one or part of another one: Sales frorn a.
recent acquisition increased revenu.es to $85m.
alliance n [CJ an agreement between two or more
organisations to work together: The two companies
agreed to form a.n a.Uia.nce.
bid n [C] an ffer to buy someth ing ata stated
price: They niade a successful bid for an es.tahlished
conipany. - bid v [I,Tl - bidder n [C] - bidding n UJ
Synonym offer n tCJ Collocations mahe a. bid,, cwcept
t;{ bid, rrject a. bid, ta.heover bid
conglomerate n [CJ a large business organisation
consisting of different companies that have joined
together: 1WE is a cable 1V and film subsidia.'r!'.! of
the worLii'.s la:rgest media. congLomerate.
corporate culture n [C,UJ th-e attitudes or beliefs that
are shared by a partkular organisation: Working
l.ate hours seems to be part of the corpora.te culture.
merger n (CJ the creation of a new company by
joining two separate com pan ies: The merger
between the two biggest s,permarket chains wiU
have to be a:pprcrved by the authorities. - merge 'V
[I,TJ
multinational adj a multinational organisation has
offices, fuctories, activities, etc. in many different
countries: Big mu lti:national compa.nies ca.n ea.rn
huge pro.fits.
share n [C) a un.it of the capital of the cornpany.
Sbares in listed companies can be bought and sold
on the stock exchange: lnvestors are having to pay
a hgher price far the company's shares. -
shareholder n [C) - stockholder n [CJ AmE -
shareholding n [C] Synonym stock n [C] AmE
Collocations sha.re capital, sha.re certifica.te, share
dealing, sha:re issue, sha.re price
strategic alliance n [C] an alliance formed as part
of a plan with important aims: Snga:pore a.irlines
and Luftha:nsa. have a.nnounced a stra.tegic alLiance
with broa.d imptcations far competiti.on.
synergy n [C,UI additional advan tages, profits, etc.
that are produced by two people or organisations
combining their ideas and resources: The cmnpanies
cauld benfjit from cost sa'Vings, as weU as synergies
frarn combi.ni.ng thei:r m.a:niifacturing acti'Vities. -
synergistic a.dj
lm_ Ptojects
allocate v (TJ to decide officially that a particular
amoun t of money, time, etc. should be used for a
particular putpose: Du Pont has a.lloca.ted fends for
the design offour plants. - allocation n [C,l)]
budget n ICJ the amount of money that an
organisation has to spend on a particular activity in
a given period of time: The service opera.tes on a
very tight budget. - budget v !I,Tl - budgetary adj
contractor n ICJ a person or company that makes
an agreement to do work or provide goods for
another company: The compa.ny has no plans to
expand its use of contractors. - con tract n [CJ
control 'V [TJ to limit sotnething or prevent it from
increasing too much; check that something is as it
should be: To he1p control costs, the company cut
sala.res by 12 per cent 1ast mon:th. - control n re -
controller n [CJ
detay n [C] the situation in which something does
not happen or start when it should do: The
government has been biamed for the dela.y in
executing the project. - delay 'V [T,Tj
estimate 'V p,T] to calculate what you think the
value, size, amount, etc. of something will probably
be: The valu.e of the deal is estinuited at fl2rn. -
estimate n [C] - estimation n [CJ
project n ICJ an impmtant and carefully planned
piece of work that will crea te something new or
1m p rove a situation: British Aerospa.ce expected. the
project to be completed by 2005. Collocations project
fin.anee, project managernent, project 1'nanager,
pilot project
schedule n [C] a plan of what someone is going to
do and by when they are going to do it: We a.re
running several weehs behind schedule. - schedule
v [TJ Collocation time schedule
specifications n [usually plural] a deta iled
description of how something should be designed
or made: They deLvered parts that di.d not conform
to contract specgica.ti.orts. Collocation job
spec!ficatons
stalkeholder n [C) a person or group of people who
a re considered to be an important part of an
organisation because they have responsibility within
it or receive advantages from it: When a. cornpany
is new and smatl it can stay close to i.ts
stakeholders - staff, customers a.nd suppLiers.
subcontractor n ICJ a person or company wbo is
paid to do part of the work of another person or
company: Always check whether a contr(,l;ctor is
using sitbcontra.ctors, cmd who is liah1e tf things go
-wrong.
Glossary 147

accomplish v [TI to succeed in doing something: We
a.ccomplished all OUT goa.ls on .the last pToject. -
accomplishment n [CJ - accomplished adj
assign v lTJ to give someone a particular job or
task: The tea.m Leader wi.Ll assign ta.shs to all the
memhers of the tea.m. - assignment n [CJ
collaborate v (1) to work with someone on a
project: The two tea.ms coUa.bora.ted weU. -
collaboration n [UI
commit v [I;f] to agree to do something or say that
someone else will do something: Sorry, l\le already
committed myself to working on the other tea.m. -
commitment n [U] - committed adj
co-ordinate v !TI to organise all the different parts
of somethi:ng to ensure an effective operation: Your
job is to co-{)rdina.te the d-~fferent aspects of the
project. - co-ordination n [UJ - co-ordinator n [C]
deadline n [CJ a date or time by which you have to
do or complete something: The team will never
meet these dea.iilines; the!:f~e too tght!
facilitator n fCl someone who helps a team to
work together effectively: A fa.cilitator s1wuld
rema.in neutra.L a.n.d ensure everyone follaws the
a.greed ground rules. - facilitare v lTJ
feedback n [U] advice or criticism about how
sorneone i.s doing their job: I'm sure he'll imprave
if he gets positive f eedba.ch after ea.ch task.
goal n [C] something that you hope to achieve in
the future: Our goa.l is to meet all the tea.m's
requirements. Synonyms aim n [C] - objective n le]
task n [C] l a piece of work that has to be done,
especially one that has to be done regularly:
Scheduling is a k~ task for team leaders. 2 a piece
of work that is very difficult but important: The
tea.m is fa.cing the dtfjicuLt ta.sk of instalLing a. new
a.ccounting proced.ure~
team n [Cj a group of people who work together to
do a particular job: We ha.ve recnted ctn excellent
mana.gement tea.m. Collocations tea.m leader, tea.m
player, tea.m spirit, tea.mwork
data n [plural] information or facts about a
particular subject that someone has collected: We
ca.nnot teU yau the results untl we ha.ve loohed a.t
a.ll the da.ta.. Collocations data. ba.nk, da.ta.
mana.gement, da.ta. mining, da.ta. processing, cfata.
wa.rehouse
148 Glossary
database n [c;::J an organised set of information
stored in a computer: A data.bli!Se of more than
14,000 tra.ining courses is being marketed by a.n
informaton services compa.rt:!:i.
gather v [T] to collect information, ideas, etc.:
Successful market resea.rch depends 6n the qua.Lity
af the inforinati.on tha.t is ga.thered.
hardware n [U] computer machinery and
equipment: The continued evolution of computer
ha.rdwa.re imposes new challenges.
information n (U] facts or details that tell you
about something or someone: Corpora.tions a.re
ma.hing more .fina.ncial informaton ava.ila.ble to
investors. Collocations inside information,
informaton system, inforrnaton technology
intelligence n ru1 information that is collected
?bo~~ the activities <?f an organis~tion or
md1vidual: We ptovide conjidentral reports a.n.d
inteUigence for compa.nieS operatng in the
biotechnoLogy sector. Collocations business
intelligence, competitive inteUigence
measurement n [C] the result of an evaluation of
the size or dimension of something: Precise
measurements ofbusiness perfortn.4nce enahle
ma.na.gers toma.he better decisions.
network n [CJ a set of computer:s whkh are
conneeted to each other and operate as part of the
sarne system, able to exchange information and
messages: Incoming orders a.re processed
a.utoma.tica.Uy by the computer networh.
procedure n rci the accepted method and order of
doing something in a formal situation: We a.re
currently reviewing ouT procedures far invoicing
our customer.s.
process 'V !Tl to put information into a computer to
be examined and to produce a particular result
The accounts are processed by the central system. -
process n fC] - processor n [CJ Collocations
(electronic) data. processing, word processing
software n [U] sets of programs put into a
computer to perform particular tasks: There's plenty
of good software on the ma.rket to help us imprave
security.
spreadsheet n (C] a computer prograrn that can
show rows of figures and perfurm calculations with
them. Spreadsheets are often used to work out sales,
taxes, profits and other financial information: Most
spreadsheets ca.n tra.nsform da.ta. and figures into
gra.phs a.nd charts.
surveillance n [Uj the act of monitoring a person
or group of people: Employees must be n.oti.fied. if
they a.re under surveilla.nce a.t their workpla.ce.
~ Technology
chief technology officer abbreviation ero n [C]
the manager with the most authority conceming
technology: The Chief TechnoLogy Qfficer
announced the corrtpa.ny 's intention to lau:nch a
new consumer electronics product next month.
component n [CJ l one part of something: 1he
-niicrochip department 1s the main component of
our technology divison. 2 one part used in making
a piece of equipment: ITPcom 1s a .firm that
designs and. m.anufactures software components for
sateLlite navigation systems.
download v [T] to move cornputer software or
information from one computing device to
another: You can now dawn1oail niusic cmd. video
clips from the internet onto your mobile phone. -
download n ICJ
invention n [C] l a new product that was not
available befare: The pa.percLip was one of the 1nost
usrju.l inven.tions of the twentieth century ! 2 [U]
when something is made or designed for the first
time: Mobile phones ha.ve changed considerabLy
sin.ce their invention. - inventor n lC] - inventive
ailj
nanotechnology n [U] a science that combines
computer technology and chemistry to build things
from atoms: Na:rwtechnology could allaw us to
inven.t devices that maniefacture at almost no cost,
by replicating atorns in the way that computers
produce information.
revolution n rCJ a complete change in ways of
thinking, methods of working, etc.: Computer
technology has caused a revoLutio1't in. working
practices. - revolurionise v [T] - revolutionary adj
telecommunications n [plural] the process or
business of sending a11d receiving information by
telephone, telev1sion, the internet, etc.:
TelecornnLunicaticms is one of the fastest growing
industries toda.y.
rr1
upload '\/ to move computer s0ftware or
information from one computing device to
another especialiy from a local compliter to a
central server or network: lf you are uploa.ding big
jites, you'U need a high-speed internet connection.
- upload n [C]
Hi@!f Advertising
audience n [CI the number or kind of people who
receive a written or spoken message: The ad was
b-roailcast on aU ma.jor channels, giving it an
a:udien.ce of miUions. Collocation target audience
billboard n rc.1a large sign, usually outdoors, used
for advertising: 1he agenclj estima.tes that one
million drivers pass their hiUboards every da.y.
Synonym hoard ing n [CJ AmE
campaign n [C] a series of actions intended to
achieve a particular result: We are La:unching a
campaign to pramote the new product. - campaign
v [I] Collocation ailvertising campa.ign
commercial n [C] an advertisement on television,
radio, or at the cinema: The ca:mpaigns were
designed to run as television or cinema.
commercials.
display n ICJ an attractive arrangement of objects
for people to 1ook at or buy, .fur e.xample in a shop:
There was a wide range oj goods on display. -
display v 111
exhibition n [C] a public event where busirresses
and other organisations show their products or
services: Exhibitions a.nd tra.de shaws a:re expensive
but effective ways to promote products.
media n [plurall the (rnass) media are ali the
different ways of entertaining and giving
information to the public and advertising goods,.
for example, television, radio, newspapers and the
intemet: The company is keen to get its views
across in the media.
product demonstration n [C] an act of explaining
and showing how a product works or how
something is done: We organ1se weehly 1 li:ve
product demonstrations.
product placement n [C,,U] when the maker of a
product arrange..<> for it to appear or be used in a
fiJm or television programrne, as a form of
advertising: Product placement in video games is
part af a new strategy by a.dvertisers eager to reach
the young consumer.
promotion n [C] an activity such as special
advertisements or free gifts intended to sell a
product or service: ABC has announced a joint
prorn.oton with Mullen. - prornote v rI1 -
promotiona1 adj Collocations seasonal promotion,
ptorn.otionaL campaign, promotianaL pri.ce
public relations abbreviation PR n [plural! the
activity of te1ling the pub1ic about an organisation,
person, product, etc. so that people tbink of them
in a good way: Good public relations is always
good for a business. Collocations pubLic relations
officer (PRO), public relations agency
publicise v.lTl.to give information abo~t something
to the pubhc, so that they know about 1.t: Car
mah_ers are pu.bhci~ng q. :new generatio": <?fjuel-
ejJic1.en.t vehides. - public1ty n [U] - publicist n [C]
Glossarv 149
 sponsor '\/ [T] to give money to pay for a television
programme, a sports or arts event, training, etc., in
exchange far advertising or to get public attention:
Eagle Star .lnsurance sponsored the charity's fi.rst
TV campaign. - sponsor n [CI - sponsorshi p n [U]
telema~keting n [U] the Rractice of teJephoning
people m order to sell thmgs: Telernarheting can be
used to upd.ate your diertt dcuabase. - telemarketer
n[CI
lm law
attorney n [CJ AmE a lawyer, especially one who
represents clients and speaks in court: A company
spohesperson said. that they would be seehirig the
ad.vice of their a.ttorneys. Synonym lawyer n [C] BrE
damages n (plural] money that a comi orders
son:1eone to pay some<;>ne else far harming them or
thetr property, or causmg them financiaJ foss: The
group 1s facing da.ims for dania.ges due to fault!:J
componen.ts. Synonym compensation n [Uj
defendant n [CJ the person or organisation in a
court of law accused of doing something illegaJ or
of causi ng harm to another person: The dejendant
was accused offraud and tax evasion.
fee n q an amount of money pa id to a
profess1onal person or organisation for their
services: LegCll fees far registering a compantJ range
froni $500 to $1,000.
lawsuit n ICJ a charge, claim or complaint against a
person or an organisation that is made in a court
of l~w by a prvate pers~n or company, not by the
poltce or state: LocCll residertts ha.ve fi.Led a lawsuit
over water poUutimL Synonym court case n [C]
legal. action. n [C,U) the process of taking a case or
a claim agamst a person or organisation to a court
of law: The European Comrnission is threatening to
ta1~e legal action in order to protect the
environment. Synonym litigation n fUl
legal ~e~artment n [CJ the service in a company or
organ.1sat1on that looks after aU matters relating to
queshons of law: Ou.r legal department is
preparing the new licensing agreernerit.
litigate v [I,TI to t~e . claim or complaint against
a person or orgarusation to a court of law: Angry
comumers have announced that they wiLL litigate.
- litigant n lCJ - litigation n fUI - litigious adj
settle~e~t n an agreement to resolve a dispute
before 1t 1s t~en to court: The two companies
refused to d1Sclose the firmncinl details of their 01,<,t-
of-court settlemertt.
sue v [l,Tj to make a legaJ claim against someone,
especially for an amount of money, because you
have been harmed in sorne way. The ccmipan:y was
sued for non payment by their supptier.
150 Glossary
lm Brands
corporate identity n fC:,U] the way in which a
company uses similar designs and colours on aJI its
p~oducts, adve~~ment':5, letters, etc. so that people
VVlll become familtar w1th the com pany: People
throughout tite world recognise our company
thanks to our strong corporate identity.
creative director n [C) someone who is in charge of
~e work rela~ing to producing advertisements and
~age campa1gns for a company: The new creative
director wants the communicatimtS department to
start working on a whole new image of corpcm:ue
social responsibilit!:J for the compcmy.
distribution n [UJ the actions involved in making
goods available to customers after they have been
produced, for example, moving, storing and selling
the goods: The cmnpany pLans to establish a
n~w.orJ~ .of centrC!l wa'.ehouses to make product
d1Stnbutwn more efficient. Collocations distribution
chain / channel / rietvvorh
exclusivity n [U] the fact that a product is so
~nsive that not many people can afford to buy
1t: Po:sche highlighted its exclusivit!:J by aiming at
the high end of the luxury-car sedwlertt.
a.dj 6".
- exclusive
lau~ch v [1,Tj to show or make a new product
avadable far sale for the first time: 'I'he company is
Launchi.ng a new range of perfumes. - launch n [CJ
model n [C] a particular type or design of a
machine or device: This is the m.ost expensi:ve
11'todeL in our range of Luxun3 watches.
positioning n [U) the way people think about a
product in relation to the company's other
products and to cornpeting products, or the way
that the company would like them to think about
it: A prjce reduction may have the effect of
d.amaging the hrand '.S' ima.ge and positioning.
pri~ng ~ [UJ tb~ prices of a company's products or
serv1ces m relation to each other and in reJation to
those of competitors, and the activity of setting
them: Aggressive pricing helped in.crease our sales.
Collocations. ~ng agre~t, pricing policy /
strategy, pncing structure, d1Scount pricing
target n ICJ a limited group of people or area that
a pla~, idea, etc. .is aimed at: The main targetfor
Gucci 's watches 1S successful businessmeri and
wonien. - target v ITJ Collocations target audience /
customers / grou:p, sales target
lm lnvestment
angel n [C] a business angel is a private investor
who puts money into new business activities: ln
the UK, business angels are a niore importa.nt
sou~ce of investment far start-ups than venture
CCl.p1.tctl ju:nd.s.
blue-chip shares n [pluralj shares in a well-
managed company with a record of paying profits
to shareholders during good and bad economic
conditions: lt's far Less risky to buy bLue-chip shares
tha:n to buy shares in a start-up. Synonym blue-
chip stock n fC,Ul AmE Collocation blue-chip
cornpany
business plan n rCJ a document produced by a
company, especially a new company, giving details
of expected sales and costs and how the business
can be financed, and showing why the plan will
make money: The bank requires a three-year
business plan from anyone applying for a loan for
their company.
dividend n [C] a part of the profits of a company
for a particular period of time paid to the
shareholders for each share that they own: The
company 1uls annou.nced a divi.dend of 25 cents
per ordinary share. Collocations annu.aI dividend,
interim dividen.el, share dividend, dividend yield,
dividend payment
entrepreneur n lCJ someone who starts a company,
arranges business deals and takes risks in order to
make a profit: State govenimen.ts had sought to
promote econorn.i c growth by wormng dosely with
local. entrepreneurs. - entrepreneurship 11 !U] -
entrepreneurial cidj
forecast lt rCJ a description of what is likely to
happen in the future, based on information that is
available now: The figures for 2015 are forecasts, the
others are actu.a k - forecast v [1,Tj Synonyms
prediction n fCI - projection n lCJ Collocations
economic forecast, pro.fit forecast, sales jO-recast, to
rnaJ~e a forecast, forecast growth
fortune n ICJ a very large amount of money: He
made a fortune by investing on the stock exchange.
lucrative a.dj an activity, project, job, etc. that is
lucrative makes a lot of money: Investirig in the
Euro tunnel wasn 't as Lucra.tive as 'nvestors
thought i.t wouLd be. Synonym profitable a.dj
portfolio l n ICJ a collection of shares owned by a
person or a com pany: Over 50 per cent of his
porifoLio is in European sha.res and the rest is in
American ami. Asian investments. 2 ali the products
or services offered by a business: The company has
struch a deal with a biotechnology company of
siniilar size and produ.ct portfolio. Collocations
portfolio management, portfolio mcrr1ager, portfolio
mix
trader n ICI someone who deals in shares, bonds,
currencies, commodities (= oil, metal and farrn
products), etc. on a market, either for themselves or
for a financia! institution: Tmders are predicting
that tite doUar wiLL rise in Eu.ropean 1narhets. -
trade v IJ,TI
venture n [CJ a new business activity or project that
involves risk: Investors a:re always Looking fo-r
business ventures that they thinh wiU show a
healthy profit. Collocation venture capital
mm
Energy
alternative energy n [CJ energy that is not derived
from fossil fuels like petroleum and coal: There is a
growing number of.firrns engaged in alternati:ve
energy and power technologies. Synonym renewable
energy n ICJ
crude oil n [U1 oiJ in a natural condition, before it
has been transformed in an industrial proce'iS in
order to separate it into different products: 300
million tons of crude ol are exported. every year.
Synonym crude n [U] (when used in the context of
the oil industry)
end user n ICJ the person who actually uses a
particular product, rather than someone involvecl
in its production or sale: End users can often
choose who they huy thei1' electricif1j from.
fossil fuel n [CJ a fuel such as coal, gas or oil that
is produced by the gradual decay of animals or
plants over miUions of years: Fossit .fuels currently
accountfor about 90 per cent of world energy
consumption.
fuel n [C,U] a substance such as coa!, gas or oil that
can be bumed to produce beat or energy: The
risin,g cost of fu.el has prompted pro tests ci.cross
Europe. - fuef v [TI
gasoline abbreviation gas n [UJ AmE a ljquid
obtained from petroleurn, used mainly for
producing power for the engines of motor vehicles:
The US alone consumes wel1 overa hundred
bifon ga11ons of gasoline per year. Synonym petrol
n !Ul BrE
ingredient n [C] a component or element that is
added to forma compound or mixture: Mineral
oit and. petroLeum are the basic ingredients in.
mt:tny cosmetic prod:ucts.
nuclear power n lUI the energy, usually in the form
of electricity, that is produced by a nuclear reactor:
The expansion of nuclear pawer depen.ds
substantiaHy on politics.
power plant n fC] a factory or building that
generates electricity, usually by the burning of fossil
fuels: The new power pla:nt wiH generate enough
power to meet the annu.al residen.ti.al needs of nin.e
miition people.
Glossarv 151
 reserve n [CJ an amount of something valuable
such as oil, gas, etc., kept for future use: Most
countries ha.ve a strategic reserve of petroleum
which they can use if supply is interrupted.
scarce adj if something is scarce, there is not
enough of it available: Dernand is up, su:ppLy is
dwindling ami new firtds are sca.rce. - scarcity n fUI
shortage n [C,Ul a situation in which there is not
enough of something that people need or want:
IUegal exports aml high world oil prices are the
main causes of the current fa.el shortage.
sustainable adj an action or p.rocess that is
sustainable can continue or last for a long time:
The ben~ts from sustainable fuels would be
enormous. - sustainability n Ul Synonyrn renewable
adj Collocation sustaina.bie development
11111 Going public
analyst n [C] a specialist in a particular rnarket or
industry who gives advice and prov1des forecasts
for that sector: 1he company's senior oil amilyst
sa.i d tha.t OPEC may need to cut production to
balance the 1narket. - analysis n [C) - analyse 'V l'fJ
auction n [C] a public or online meeting where
things are sold to the ~rson who offurs the most
money: 70 per cent oJ ebay '.s sales arefrom
auctions, ami the remaining 30 per cent are frarn
fixed price sales. - auction v [TJ- auctioneer n fCJ
brokerage 1 n [C] a company or organisation that
buys or sells securities, currencies, property,
insurance, etc. for others: The credibility of a
brokerage or ba.nk can disappear ovemight. 2 [U]
the work done by a brokerage: The electricity
company saved $520,000 in brokerage fees by
selling the bonds directly to in:vestors. - broker n
[CJ - broker v !TI Collocation broker-deaJer
capital j n [UI money or property used to produce
wealth: Countries around the world are hungry for
capital and economic develapment. 2 money from
shareholders and lenders that can be invested in
assets in order to produce profits: Beca:use Mr Blech
is injectin.g new capital, Ecogen. said it is no longer
seeking a 1'uyer. - capitalisrn n [UJ - capitalist n lCJ
- capitaLise 'V ITJ Collocations equity capital, fixed
capital, issued capital, ve>tture capital, working
capital, ca.pita.l equiprnen.t, capital gains, rnptal
goods
cartel n [C] a group of companies who agree to set
the price of something they produce at a fixed leve!
in arder to limjt competition and increase their
own profi ts: The oit cartel, OPf.C, has just had. its
first major su.ce~ in forci:ng up oil prices.
152 Glossary
commission 1 n [C] an arnount of rnoney paid to
someone according to the value of goods, shares,
bonds, etc. they have sold: He didn't charge a
comniission an trades, as other brohers do. 2 an
official organisation that ensures that the law is
obeyed in a particular activity: 1he F.quaL
Opportunities Commission works to eliminnte sex
discrimination..
equity 1 n fUl the capital that a cornpany has from
shares rather than from loans: The strang marhet
wilL en.courage carnpanies to use equit'IJ to fmance
acquisitions. Collocation shareholder eq-uity
2 [plural] tbe sbares of a company listed on the
Stock Exchange: Investors a:re placing funds in
equities as they Looh for higher ret.urns on their
investnients.
initial public offering abbreviation IPO n q an
occasion when a cornpany offers shares on a stock
market for the first time: The government wiU selL
40 per cent of the co1npany through an initial
public offering.
issue v l'fJ to make securities such as bonds and
shares available for people to buy: In ] a.nua:ry,
AMR issued ftve miUion new sha.res. - issue n [C]
Collocation share issue
monopoly n [C,U) a situation where a business
activity is controlled by only one company or by
the govemment and other companies do not
compete with it: Many national airlines used to be
monapolies, but this is no langer the ca.se. -
monopolist n ICJ - monopolise v l'fJ
Securities Exchange Commission abbreviation SEC
n [U) the US agency responsible for stock market
regulation: The SEC is looking in.to a Large US
corporations investment arrangements, as it thinks
they may be itlegal.
stock exchange n ICJ a market where company
shares are traded: Companies Listed on the Madrid
stoch exchange drawed about 3 per cent this year.
Wall Street 1 n [UJ The New York Stock Exchange,
situated in Wall Street in Manhattan. 2 American
financia! institutions and investors in general: Wall
Street analysts predicted that the issue would seU
at 96 cents a share.
mm Competition
barrier to entry n [CJ any factor which prevents
new competition from entering an industry, for
exarnple the need fur a lot of capital or strict
govemment regulations: The aircraft engine
industry has high barriers to ent11J and requires a
lot of technologica1 capital.
competitive advantage n [CJ an advantage that
makes a compllly more able to succeecl in
competing with others: A.dvanced Miro's chip
ca.rries the carnpetitive culv()l;ntage of using less
pawer than IntePs. Collocation camparative
advantage
core business n [C] the business that makes the
m.ost money for a company and that is considered
to be its most important and central one: US car
rnaker Chrysler is to seU off its $1 biUian
technolog~ a:rrn. to concentra.te an its core biisiness.
differentiate v [Tl when a company differentiates
its products, it shows how they are different from
each other and from competing products: The ortly
viable stra.tegtj was to differeri.tia.te Ci.tiba.nk credit
ca.rds from a.U the 1.aw-cost a.ltematives. -
differentiation n [U]
economies of scale n [plural] the advantages that a
big fuctory, shop, etc. has over a smaller one
because it can spread its fixed costs overa larger
number of units and therefore produce or sell
things more cheaply: oys 'R' Vs buys rn.assive
qu.a.ntities directly .from ma.nufa.turers and has
gigantic stores with huge econmnies af sea.le.
market share n rc,U] the proportion of the total
market that is supplied by a particular company: lf
the two compa.nies' ma.rket shares are cambined,
t~'U have 28 pet crnt of the US ma.rket.
mass consumption n [U] buying and using
products and services on a large scale: Mass
consu.rri.pti.an has tra.nefanned. not anLy ind:ustry
but soeiety as a. whoLe.
mass market n [lJ] the market for standardised
consumer prod.ucts: We a.ccess the m.a.ss ma.rket by
selling our dothing range i'n depa.rtment stores.
production 1 n [U] The process of making or
growing thjngs to be sold as products, usually in
large quantities: Toshiba. is increa..<ing production of
its popular line oflaptop computers. 2 an amount
of something that is produced: In August,
production of passeri.ger ca:rs dimbed 12 per cent
from a yea:r ea.'Ylier. - produce v [TI - prod uctive
culj Collocations just-in-ti.me productian, mass
protiuctian, productian costs, productian line,
production m.anager, production plcmt, productian
process
profit margin n [Cj the diffurence between the price
of a product or service and the cost of producing it,
or between tbe cost of producing all of a
company's products or services and the total sum
they are sold for: Slaw sales ha.ve Ct profit
'margins in the industry.
switch v II,T] to change from one thing to another,
usually suddenly: Ccmsumers are switching to more
afforda.hle brands.
mm Ranking
central bank n [C] the o:fficial bank of a cou.ntiy,
which is responsible far setting interest rates,
controlling the money supply, producing bank
notes and keeping the countty's supply of foreign
currency and gold, etc.: China.'s central banJ'{ said
th.a.t a decline in i.nterest ra.tes is unlke1.y.
clearing bank n [C] one of the higb street banks
that issues and accepts cheques and passes them
through the banking system: AH cheqiies ha'Ve to be
a.uthorised by the clearing bank before being
a.ccepted. Synonym commercial bank n ICJ
collateral n [U] assets promised by a borrower to a
lender if the borrower cannot repay a loan: When
the fi.rm wen.t bankrn.p t, he Lost his home beca:use
he had used it as collateral for the business.
Synonym security n [U]
exchange rate n [C] the price at which one currency
can be bought with another: 1f the eu.ro-dolla.r
excha.nge rate rema.ins a.t ts current level, US
exporters could lose $5 bfion i'n business
annua.lly. Collocations fixed excha.nge ra.tes, .ftoa.ting
exchange rate
interest 1 n [U] an amount paid by a borrower to a
lender, for example by a bank to someone who
saves money with them: An:!'.j spare cash is best put
tl'l. a sa,vings a.ccount where it ca.n ea.rri. i:nterest
2 the rate of interest at which a particular sum of
money is borrowed or lent: Srna.ll businesses have
to pa.y interest at 12 per cent a.n.d upwa.rcls if thej
go through microftna.n.ce institutions. Collocations
interest ra.te / ra,te of interest
investment bank n [CJ a bank that buys stocks and
shares and then sells thern to mernbers of the
public, and offers financia! advice to businesses:
]PMorgcm is a lea-ding US investrnent bank
specialising in asset man.agement. Synonyms
corporate bank n [C] - merchant bank n [Cj
monetary policy n ICJ the way a central bank
controls the amount of money in the economy ata
particular time, for example by changing interest
rates: Un.Less the Ba.nk of ja.pan rela.xes rnon.eta:r!'.J
policy and ma.kes borrawing easier, the stock
rna.rket is unlikeLy to improve.
speculate v Ol to buy goods, shares, property, etc. in
tbe hope that their value will increase so that they
can be sold for a profit: Many individuals ci:re naw
specula.ting on the stock exchange through specia.1.
sa.vings schemes provided by their banks. -
speculation n [U] - specula tive a.dj
Glossa1y 153
 mi" Training
absenteeism n IUI the problem of employees not
being at work when they should be: We ha.ve a
high rate of ahsenteeism., whidi is m.ainLy du.e to
stress. - absent adj
customise v IT] to make, build or adapt especially
for a customer: Our training couTSes are
customised to suit alt our customers' specifi.c needs.
delegate n [CI someone who has been chosen by
their company to attend a conference, meeting or
training course: We sent severa.L delegates on a new
management training course. - delegate v fT]
incentive n [C] something which is used to
encourage people, especially to make them work
harder and produce more: Training opportunities
for staff can be more of an incentive than ji:nancial
bon.uses.
motivation n [U] willingness, eagerness or desire to
do something without being forced to do it Some
of the staff seem to 1.a.ck motiva.tion. - motivate v
fTl - motivated a.dj - motivational adj Collocations
highly motivated, nwtivational slriLls, rnotivational
techniques
seminar n lCJ a fairly informal meeting of a group
of people, who share information and ideas and
often discuss matters relating to work: The people
a.ttending the man.agement tra.ining semina.r were
all from accountancy ji.nns.
staff loyalty n ruJ if staff are loyal to their
company, they enjoy working for it, they keep
company secrets and tend to stay for a long time:
The Hutn.an .Resources department has built up
staff layalty by ensuring good worhing conditions,
a.warding regular bon.uses a.nd providi:ng in-
company tra.ining.
stress n IUI continuous feeling of worry about your
work or personal life that prevents you from
relaxing: He has been und.er a 1ot of stress at work
recentLy, du.e to tight dea.dlines a:nd staff shortages.
- stressful adj Collocations stress-rela.ted (illness),
stress ma.n.agem.ent
training n [U] the process of teaching someone or
being taught the skills and knowledge for a
particular job: When the new software system was
instaLled, we had to provide tra.ini11g for a.U the
staff in how to use it. - trainer n ICJ - trainee n 1CJ
Collocations assertiveness tra.ining, computer-based
training, management training
154 Glossary
111111 Consulting
audit 1 n ICJ an official examination of a person's
or organisation's accounts by an expert, to check
that they are true and honest: An audit of the
crnn.pany shawed accumulated los.ses of
$L5 billion. 2 an official examination of how an
organisation behaves, how well it treats its
employees, the environment, etc.: The social a.udit
of Ben. &']erry's commends the ccnnpany, which
gives 7.5 per cent of pre-tax prajits to charity. -
auditor n ICJ - audit v ITI Collocations a.ud.it report,
audit committee, ethica.L o.u.dit, e?<temal a.tulit,
social a.udit
fraud n. ru1 a method of iJlegally getting money
from a person or an organisation, often using
clever and complicated methods: The e?<temal
auditor discovered the ji.rrn was invoL'Ved in
m.a.mve fraud. - fraud ulent a.dj
network n lCJ a group of people or organisations
that are connected or that work together: It is
important to bu.il.d up a. network of professiona.l
conta.cts. - networking n fU] - network v lU
outsource v fTI to transfer work to an outside
supplier: The company outsourced all their
fina.ncial operations to an accounting consu1.tant. -
outsourcing n [VI Synonym subcontract v lTJ
Sarbanes-Oxley Act n US government legislation
introduced to ensure honest accountancy and
corporate governance practices in US companies:
The USA '.s response to Enran ami. other sca.nda.ls
wa.s to introduce strict ji.n.anciaL cor1trols through
the Sa.rba.nes-Oxley Act.
 As profits are falling sharebolders will have to 11 The two sides agreed to a six
accept a reduction in _ _ _ __ weeks befare the court case was dueto start.
A salary B bonuses A settlement B lawsuit
e dividends D stock C legal action D compensation
2 My job involves carrying out various 12 energies like wind power could
_ _ _ _ _ simultaneously. provlde more than 10 per cent of electricity
A tasks B objectives needs within five years.
C goals D practices A Crude B Fossil fuel
3 The computers in the R&D lab are getting too C AJternative D Nuclear
old. We really need to replace them with 13 The studio has negotiated product
sorne new _ _ _ __ _ _ _ _ _ with severa! sportswear and
A inventions B hardware beverage producers, whose brand names will
C telecommunications D software be featured in the new version of the film.
4 We acquired sorne sensitive and confidential A demonstrations B plaeements
- - -- - concerning our competitor. C exhlbtions D displays
A experience B e~periments 14 We employ specialist to make
C intelligence D secrecy all our transactions on the US stock exchange.
5 The bank will lend us money but they are A capitalists B entrepreneurs
going to charge 7.5 per cent on it. C end users D traders
A repayments B rates 15 The department has decided to _ __ _ _
e security D interest an extra ESOk to cover the costs of hirin.g an
outside consultant.
6 fn sorne countries, there is already a
- -- - - of fue!, and petral stations only A budget B control
have limited supplies. e allocate D estimate
A shortage B control 16 The survey is going to _ _ _ __
C speculation D target information about the Asan market.
7 There are lots of free available A forecast B gather
on their website. C upload D pubJicise
A media B incentives 17 Changing the colours and the design of our
e uploads D downJoads Iogo should help us to project a younger and
more dynarnic _ _ _ __
8 We are working under extremely _ _ _ __
conditions at the moment in order to finish A corporate identity B business plan
on time. C competitive advantage D corporate culture
A eventful B stressful 18 The is too tigbt. We need an
e dose D short extension if we are to accomplish our miss iqn.
9 We have been having difficulty reaching our A time B delay
sales , which was too high. C deadline D shortage
A audience B market 19 We've arranged for an extra two mili ion
C forecast D pricing shares to be sold through our _ _ _ __
10 The advertisements will be placed on A brokers B entrepreneurs
_ _ ___ along the major highways C auditors D capltalists
l.eading into the city. 20 We expect our team members to be
A exh ibitions B billboards _ _ _ _ _ to their duties.
C placements D commercials A concentrated B involved
C comm1tted D immersed

Glossary 155
 21 We sent 100 _ _ _ _ from our company to 31 When you say you'll buy something at a
last yea r's seminar. particular price, you're making a _ __ _ _
A suppliers B processors A bargain B fee
e delegates D characters C quota D bid
22 The texti le market is very risky but also very 32 development is the only way to
_ _ _ _ _ ifyour busi ness succeeds. preserve natural resources for future
A costly B lucrative generations.
C pri cey D expensive A Scarce B Lucrative
23 The organisers of the extreme sports festjval are C Sustainable D Speculative
looking for companies to the 33 Our public agency wi ll be
even t. sending out press releases a nd o rganising a
A target B issue series of press conferences.
C outsource D sponsor A broadcasts B relations
24 lf the cou rt d ecides in their favou r, the C promotions D media
com pa ny will have to pay substa ntial 34 Our managed to convince the
_ _ ___ to the plaintiffs. j udge that the accusations were totally
A a ll ocations B fees unfounded.
e damages D reserves A defendants B plaintiffs
25 Over 20 per cent of our investment C litigants D attorneys
_ __ __ is in US bonds. 35 Great We're almost halfway through the project
A file B collection and everything is exactly on _ __ __
e blue chips D portfolio A specification B schedule
26 Performance bonuses will provide employees C goal D process
with a n additional to work 36 The national a irline still has a _ __ __
more effectively. as no o ne else is a llowed to offer fli ghts
A dividend B promotion withi n the country.
C incentive D ingredient A cartel B synergy
27 We will gain important by C multinational D monopoly
combining our resources and working 37 The higb rate of is due more to
together. lack of motivation than illness.
A profits B additions A m ismanagement B absenteeism
C extras D synergies C lateness D unemployment
28 lf our are reduced any fu rther, 38 The company is expanding by _ _ __
we may have to consider selling off the whole with one of its competitors.
business. A purchasing B associating
A stock markets B profit margins C sha ring D merging
e business processes D target audiences 39 The investrnent ba nk is asking for a 7 per cent
29 Ali our current products are to - - - - - for o rganising the IPO.
suit our clients' specific needs. A equity B capital
A customised B transferred C commission D brokerage
C appl ied D invented 40 According to the that we have
30 We don't have enough - - - - - to received, the components wi ll have to res1st
guarantee our bank loan. tempera tu res o.f 500.
A gains B colla teral A speci fications B schedules
e interest D accounts C goals D processes

156 Glossary
Review of tenses
The present simple has the following uses.
regular events and repeated actions
The company's annual report is published
every ju.ne.
permanent situations
They manufacture eLectri.caL goods.
timetables and scheduled events
The CEO arrives on Friday.
newspa per headl ines
Miramax signs deal with Disney.
The present continuous has the following
uses.
things happening now a nd changing
situations
We'r e negotiating an atliance with them.
temporary situations
We're not looking for partners this year.
future arrangements
We're signing the contra.et next weeh.
The present perfect has the following uses.
changes that affect the present
Ha.ve the sharehoLders been inforrned yet?
situations relating toan unspecified past time
We ha.ve agreed to share technologies.
situations tha t started in the past and
continue
Costs ha.ve been risi-ng for severaL years.
show duration
He's been the CEO for ten years.
The past simple has the following uses.
finished actions and events
We worlted with them for two years.
definite or finished time periods
We merged with them last year.
The past perfect has the following uses.
give explanations about past events
We were celebrati.ng Last night because we
had signed the agreement.
give background information
By the ti.me of the acq-u:isition, negotiations
had tahen nearLy a yec1:r.
will + infinitive has the following use.
predictions
The merger wo-n't be finalised untiL next
month.
See also Future forms on page 161.
Articles
The indefinite article has the foJlowing uses.
non-specific singu lar cou ntable nouns
lt wiLl be 51.l:penri.sed by an intemal
management team.
singular things and people in general terms
{definitions, jobs, nationalities)
A deadhne is the ti.me timit for compLeti.ng a
tash.
Tina is an architect. She's a Bmzilian who
lives in New Yorh.
in certain expressions
a few, a little, a great many
The definite arride has the following uses.
nouns already mentioned or specified
BM is building a new terminal.
The terminal wiU have ...
things a nd people that a re unique or one of a
kind
The CEO wa.nts it to befinished by May.
categories or groups of things and people
The mobiLe phone has changed
communicatioris completely.
the superlative fo rm of adjectives
The biggest chatlenge wiH be co-ordinati.ng
the worh of four intemationat teams.
Tu.e is pronounced in two different ways.
Befare a word that begins witb a consonant
sound, it is pronounced / oo /.
The deadHne is onLy two months a.way.
Before a word beginning with a vowel sound,
it is pronounced / oi /.
The engineers ha.ve modtfied the design to
ma.he it Lighter.
No article is needed with the following.
proper nouns a nd names
Heathrow will have to be expanded again
befare ver!:J Long.
Grammar reference 157
 plural things and people in general terms and
uncountable nouns
Ptojects of this type a.re genera.Uy m.anaged
by specialists.
Time and money are key considerations.
abstract nouns
Hope aLone won't get us th.rough this ..
Modal forms
Uses of modal forms include the following.
possibility
We may / might / could get nwre people
working mi the project.
obligation
There must be good workin.g relationships
between tea.m members.
advice
The tea.m sh.ould / o~ght to be experienced
enough by now.
deductions
positive: They 're not ba.ck home yet; they
must be working late.
negative: They're very la.te. They can't know
the time of the meeting.
Past modaJs bave the foUowing uses.
possibi lity about a past situation
The misundersta.nditt.g may / might / cauld
ha.ve been ca.used by a la.ch of
communication.
advice about a past situation
You should ha.ve / ought to have m"gtt'J'.lised
that meeting better.
deductions about a past situatjon
positive: The tea.m must have been very tifed
after working a.Ll weekend.
negative: They can't ha.ve done their research
properly.
Question forms
There are four main types of question.
open questions
closed q uestions
tag q uestions
embedded questions
Open, or wh-, questions ask for information.
They use interrogative words such as what,
when, where, why, who(m), which, how,
how long. (How is often quantified with
much, many, often, long, big, expensive ... )
158 Grammar reference
Open questions generally use an auxiliiary.
Who does this computer be Long to?
When who, what or which is the subject of
the question, no auxiliary is used.
Who uses this computer?
(not Who does 4fSe this com:puter?)
C]osed questions expect the answer yes or
n.o .
Have you jinished insta.Lling the software?
No, not yet.
Tag questions are used in the following two
ways.
to check information or seek agreement for an
oprn ion
You'Ll be a.rriving at midday, won't you?
This is recr1Ly complicated, isn't it?
to ask a genuine question
You're dealing with this, a:ren't you?
Intonation
In spokeb English, the intunation the speaker
uses tells us what type of tag question it is. lf
som eone ses fa lling intonatm at the end~
they are cliecking information, 0r seeking
agreemeht; if they u s.e rising intonaton at the
end, thy are-asking a genuine question.
Tag questions consist of a statement
followed by a tag in the same tense; if the
statement is in the affirmative, the tag wi11
be in the negative, and vice-versa. Negative
tags always use a contraction.
You. wiU he a.ble to get the infonnation, won't
you.?
In sorne tag questions, both the statement
and the questton can be in the affinnative.
This indicates surprise or interest. The
intonation for this type of que.s tion is always
rising at the end.
So you are coming to the presentation, are you?
Embedded questions are used to ask
questions in a polite way. They have an
interrogative question form which introduces
a statement.
The answer to an embedded question is
aJways a .response to the statement and not
to the question that introduces it.
Could you tell me hw long it wil tahe to
repair the system?
It will tahe at Least two h01irs, tnaybe more.
(not Ves, 1 ee1>1>!61. ...)
For open questions, an interrogative word is
used.
Do -you Jmow how much the softwa.re costs?
For closed questions, if or whether is used.
Do you hnow iflwhether this software is very
expensive (or n.ot)?
Embedded questions can be introduced by
questions such as:
Can/Could you tell me ... ?
Would you miniL letting m.e knaw ... ?
Do you happen to Jmow ... ?
Embedded questions can aJso be introduced
by tentative statements.
I wonder iflwh.ether you couid exp1ain ...
Relative clauses
Defining relative dauses define or
differentiate the person or thing they refer to.
l"rn talking about the phcme that tahes photos.
The following relative pronouns are used to
introduce a defining relative clause.
who, tha.t (for people); which, that (for things);
whose (possessive)
The re)ative pronoun can be omitted when it
is the object of the clause.
The scientists (who/that) we were working with
were highly qua.Lijied.
The task (whicWthat) they set themseLves was
al.m ost im.possibLe.
Non-defining relative dauses add non-
essential information to a sentence.
The phone, which has been on the mamet for a
m.on.th, is our La.test modeL
The relative pronoun can never be omitted
and that cannot be used.
We usually use commas to separate the non-
defining clause from the rest of the sentence.
Non-defining relative clauses ~re not
generally used in spoken English.
In formal English, whom can be used as the
object in both types of clause.
Shortened relative clauses can be used when
the subject of each clause is the same. Either
the present participle or past participle
(when the verp is in the passive) is used
instead of the relative pronou.n + main verb.
The designers who develop the best m.odel wiU
.
Wtn et
.
prtie.
o+ nLe designers developin.g the best model wilL
wi.n a prize.
New techn..ology, which i'> introduced into thi'>
industry a.U the time, is essentia.l if we want to
progress.
-+ New technoLogy, introduced into this
industnj aL1 the time, fa essentia.1 if we wa.nt
to progress.
Gerunds and infinitives
Gerunds have the foUowing u.ses.
after prepositions
Bejore laiinching the ca.mpa.ign, the CLgency
did exterisive ma.rhet resea.rch.
as a noun
Finding the right person to endorse a.
prodttct is never easi3.
after ce1iain expressions
It's no good. trying to selL it now.
l<ey words
be/get used ta, have d!ffj.eitlt;y, it's no go0d, t's
no use, it's 11.ot worth, 1ookjerwctrd to, O'bject
to, the;re's no point
after ce.rtain verbs
He pwposed using 1V commercia.ls.
Key words
aam#, arv@id, consiaer, delay, deny, d1scuss,
dis!ike, ertj01J,finish. go, go on, ha.te, i:rn4gine,
i111v.ol'\!e, keep, li"ke, mentient, rniss, post-pon.e,
pro.ctise, prefer, propase, reconimen.d., report,
rish, ~ggest
instead of a relative pronoun + main verb
There '$ a. new series of commercia.ls
advertising their products.
Grammar reference 159
 Infinitives h ave the fo llowing uses.
after adject ives
They are unLikely to ban the advert.
Key words
a.bLe, a.mazed, bound, dtfjicutt, d:isappointed,
due, easH, happy, liable, likely, prepared,
surprised, una.ble, unLikely, unwi.Lling, wiUing
show purpose
The company is spcmsoring an extreme sports
event to raise their pro.file.
after certain verbs
They ha.ve deci.d.ed n.ot to run the
commercia,L befare lOpm.
Key words
a.Jford, a.gree, aim, a.rtattge, attempt, cheese;
decide, d.emand, e?Cpect,fail,fotget, hate, hope.
leam, like, mana.ge, need., o.:tfer, plan, prepare,
promise, refuse, seem, tend, threaten, train,
volunteer, want
after certain verbs + object
1 urge you to thinh carefuLLy about the
content.
Key words
a.dvise, allow, ask, cause, enable, expect, help,
invite, lea.d, permit, persuade, remind, tea.ch,
teU, train, trust, urge, use, warn
after certain nouns
Competitors make every attempt to find new
a.ngles.
Key words
ability, attempt, chance, ejfort,fa.ilure, need.,
opportunity, rea.son, refusa.l, wa.y
Sorne verbs can be fo llowed by either a
gerund or a n infinitive with no difference in
m eaning.
The agency continued promoting the product
despite poor sales.
The agency con tinued to promote the product
despite poor sales.
Key words
begin, bother, continue, intend, sta.rt
160 Grammar reference
Sorne verbs can b e followed by either a
gerund or a n infinitive but with a difference
in meaning.
He stopped sending ema.ils. (He d id n't continue
the activity.)
He stopped to send. an ema.il. {He interrupted
what he was doing in order to do somethi ng
else.)
They remember placing the ad. (refers to p ast)
Remember to place the ad. (refers to futu re)
The passive
Passives have the following uses.
wben the agent is unknown, unimporta nt or
implied
E?<a.ctly how the accounts had been f alsified
is still not clear.
when the agen t has already been referred to
The judge ruled in fa.vour of the pla.intiff,
who w as awarded substa.ntia.L dama.ges.
processes, systems or experiments
First, the jury is selected a.nd then a date is
fixed for the ca.se to be heard.
report uncon fi rmed information
Severa.l people are alleged. to have been
invotved in the sca.ndal.
Adjectives and adverbs
Adjectives h ave the following uses.
before nouns
An interestin g a.ncl. exciting ca.mpa.ign is
essential if the launch is to be successful.
after stative verbs such as be, appea.r, looh,
feel, rema.in, etc.
l'm interested in and. e?Ccited about the
brand.
Adjectives ending in -ing describe what things
are like and the effect they have on people.
Adjectives ending in -ed describe how we feel
Adverbs have the foll owing uses.
after verbs
Their ima.ge deteriorated rapid.ly after the
scan.d.a.L
before an adjective or another adverb, as an
intensifier
They experienced an extrem.ely fast decline.
The new bra.nding worked really well.
 before past participle adjectives to show how
something is done
WeU-made accessories are part of the range.
Sorne adverbs have irregular forms: well,
hard, fast, early, late.
Adverbs cannot be formed from adjectives
ending in -ly, for example friendly, Hvely,
silly, lovely. A phrase such as in a ... way is
used instead.
ctients are aLways greeted in a friendly way
ancl made to feel at home.
Emphasis
Emphasis is placed on a particular part of a
sentence in the following ways.
what ... is/are that ...
What research has shown is tha.t long-tmn
ivestment produces positive results.
it is ... that ...
lt is the art market that interests us now.
inversion after negative sentence openers
Never ha.ve we seen su.ch terrible share prices.
N o sooner ha.d. we announced the CEO's
resignation than the share vah~e collapsed.
On no account should you invest in art at
the moment.
Under no circumstances will we sell our
current assets.
Not only is this a good time to invest but
also to specuLate on the stock market.
inversion after onLy, ra.rely, Little
Only in the property ?ruirket can prices
jl:uctuate so much.
Rarely does investing in blue-chip companies
fa.il to make money.
Little did 1 kna1N that the market was going 1
to ta.he off like this.
Conditionals
Conditional sentences have the following uses.
Zero conditonal
cause and effect
lf Opec increases production, prices falL
request acti on in the event of a likely
situation
Let me know if you get any more
information..
Type 1
predict consequences of likely situations
Tlie company wiU have to stop production if
the pohticat situation does not improve.
The conipany wiU ha.ve to stop production
unless the political situation improves.
fype 2
predict consequences of unlikely or
hypothetical si tuations
lf we had a better distribution network, we'd
(would) be able to sell more.
Type 3
hypothetica l situations in the past
lf we had used. a better shippi:n.g cornpany,
the accident would never have happened.
Mfaed conditionals (Types 2 and 3)
1 would be in a better position today if I had
accepted the job.
lf I thought the project wasn't going to be
successjut, I would never ha.ve invested all this
money.
Future forms
Different tenses are used to refer to the
future depending on the situation and tbe
likelihood of something happening.
will + infinitive has the following uses.
things that are part of a fu tu re plan
Our CEO witl mahe a sttttement later today.
tentative predictions
1 think the company 's sha:res will continue to
increase in value.
sponta neous decisions or offers
I know - I'll invest in that new start-up!
going to + verb has the following uses.
personal intentions or predictions
She 1s going to sell aH her sruires and buy
bonds instead.
Modals have the following use.
predictions about things that are possible
Tliey may / might / could raise the capital
on the markets.
:r::imm::ir rPfPrPnrP 1i:.1
 The present simple has the following uses.
timetabled events
The conference begins at 9:00am.
conditions necessary for a future event to
happen
lf the price fa.lis any jurther, I'U seU.
The present continuous has the foUowing use.
events arranged fo r a certain time
1'm meeting our advisers next weeh to
discuss our strategy.
The future continuous has the following use.
actions in progress a t a time in the future
We wiU be organising a. presentation Jor our
investors on the 2Jst.
Key words
this time ne:xt w eek / month / ye ar, in a
week's / m onth's / year's timei a w eek / month /
!Jearfrom naw
The future perfect has the following use.
things that wi ll take place before something
else happens
The London stock excha.nge will ha.ve been
dosed for several hours by the time the Asan
exchanges open for business.
Key words
by (time, day, date), by the time, eventuaUy,
sometime (soon)
Time clauses
Time clauses give information about the
duration or timing of an event or events
which are referred to in the rnain clause.
present
The ma1'kets send in information about sales
as soon as they receive / ha.ve received it.
past
The firm had its first ma.jor success when it
introduced disposable pens.
When a time clause refers to an event that
will happen in the future, the verb in the
time clause is in the present or present
perfect and the verb in the main clause is in
the future. (Using the present perfect
emphasises the completeness of the action.)
We'U call you as soon as we get / have got the
resu.lts of the survey.
162 Grammar reference
Key words
when~ once, as soon as, until, by the time~
while/as, whenever, since, before/a.Jter
Reference words
The following are used to refer to previously
mentioned words, phrases or ideas.
the one, the ones
We a.re currently developing a new range of
customer iwestment portfolios. However, we
can only ojfer the old ones far the moment.
such
weive)ia.d a substa.ntial increase in
complaints from our corporate cLients
recently. We ca.nnot aUow such a trend to
continue.
the former, the la.tter
We a.dvised our ctient to set up businesses in
Latin America. and East Asia. The fonner has
proved. to be a grea.t ~-uccess, whereas the
latter has resuLted in very little profi.t.
this, that, t'hese, those
Microfiria.nce imtitutions (MFis) len.d sums of
money to people in deveLoping coun.tries
with no cotlateral. That may seeJn v~
risk-y, but loans are nea.rly a.Lways repaid.
The banhing sector has four ma.i n types of
instituti.on: these in.dude central and
commercial banks.
The ones can have the same m eaning as
those, but is generaUy used in spoken
English and in less formal written English.
Where a.re thejigures? You hnow, the ones we
need to show to our cLient.
Clauses and sentence construction
Complex sentences contain a main clause
and one or more subordinate clauses which
give additional information. The foUowing
a re the principal types of subordinate clause.
Relative clauses (see page 159)
Conditional clauses (see page 161)
Time clauses (see above)
 Clauses of purpose
show the intention or purpose of an action
We've decided to offer more standard features
in order to match what the competition is
doing.
Other conjunctions that are used in this type of
clause: to, so that, in order that, so as to
Clauses of concession
show contrast between two statements
We're sriU planning to enter the Asian ma.rket
despite the fact that we don't ha.ve
distributors in some countries.
Other conj un ctions that are used in this type
of cla use: in spite of, aLthough, though, even
though, even if, while, whereC1S, except that
Clauses of manner
give information about how someth ing
happens or is done
Why do es the saLes manager a.et as if he is
tlie onl_y p_erson who understands what
marketing is all about?
Other conjunctions used in tbis type of clause: as,
just as, Like, as though, as niuch as
Clauses of result
show the consequences of an action
We\!e received a lot of complaints so we're
aLlowi:ng customers to exchange their
products for new artes.
Other conju nctions used in this type of clause: so
that, as a resuLt of which
This type of clause is often preceded by so +
adjecrive or su.ch + noun.
The new version has been so successful. that
some stores are already out of stock.
The new version has been such a success that
some stores are already out of stock.
Clauses of reason
give informarion about why something is done
The product is outselling all the others
because it's better and less expensive.
Other conju nctions used in this type of clause: as,
in case, since
Reported speech
We often make tense, time and pronoun
changes in reported speech.
'He was here yesterday.' -+ She said. (that) he
had been. there the day befo-re.
We don't always make these changes,
especiaJJy if a fact is srill true or we're
reporting soon after the direct speech.
1an is lea.ving in a. minute.' -+ She said (that)
) an is leaving in a. minute.
Verbs apart from say and tell used to report
speech can be followed by:
a clause
'The advice wasn't very helpfuL.'
She pointed out (tl1at) the advice wasn't ven;
helpjuL.
l<ey words
compla.in, explain,feel, imply, point out,
Teport, suggest
an infinitive
'J'U reduce the fees if you Like.'
He a.greed to reduce the fees.
l<e~ words
agree, ask, decide, demand, offer, promise,
refuse, wa.nt
an object + infinitive
'You should lower your prices.'
They a.dvised us to Lower ou.r prices.
l<ey words
advise, ask, 1.nstn..,ct, invite, remind, wa.nt
a geru nd
'Let'.s go over the figures a.ga.in.'
He suggested going over the .figu.res again.
i<ey words
ad.mit, deny, m ention, report, suggest
When there is a change of subject, a dause
has to be used instead of the gerund.
'Why don't yo-u go over the .figures aga.in?'
He suggested (that) I go / went over the figures
aga.in.
Grammar reference 163

Listening 1 page 8
l t's nice to see a perfect match' alliance - it is so rare! But
when Starbucks and Pepsico got t0gether to create the
popular coffee-Aavoured drink 'frappuccino', it was a great
success for both oompanies.You see, Starbucks wanted to
get into the bortled drinks market and this was a perfect
way to do it, and Pepsico was interested in creating an
innovative product, which they did Each company met
tbeir strategic goa ls!
Well, you know, 1 have to say the Daimler-Chrysler merger
got off to abad start. That was mainly because they had
very different corporate cultures. But they worked hard to
sort out their differences and problems, and everything
carne right in the end. They had to make sure it did, really,
because even though they were powerful players in the
automotive industry, tbey both felt that they couldn't face
the competition alone.
As for Disney and Miramax, well, when you think about it,
it didn't have a chance from the start. TI1ey are so different
it couldn't succeed. But Miramax needed the cash and
Disney is a very rich company. Disney liked tbe serious
image which Miramax brought and wanted to be linked
with that' image. But how could the controversia! and
serious movies of Miramax ever find anything n common
with the Disney family movies? Personally, 1 wasn't that
surprised it failed.
Listening 2 page 12
Part 1
Well, it hasn't been easy, but we've started to make an
excellent recovery and today we've been rewarded far our
determination. 1 have to say the .last few years have
probably been the most exciting years of my career so far.
As you al! know, we had lost so much money by 2002 that
when Wireless Ltd approached us with the acquisition deal,
it looked like the solution to all our problems. We therefore
saw the opportunity of an alliance with Wireless as a way
to save the company. However, six months into the aJliance,
we didn't feel like that any more. We had really serious
problems trying to integrate our systems and cultures. Our
corporate culture was so different from tJ1eirs that we
worked in a completely different way from them. lt was a
very difficult time but even so, when they decided that tbey
didn't want an al liance with us any more, it was s611 quite
a shock. We didn't know what to do. By the end of 2003, we
needed another strategic partner. The only other alternative
was to find a sympathetic bank that would lend us enough
money to make a new start independently. We are
delighted that the second option was possible and we
managed to borrow money to keep operating on our own.
So you can imagine how extremely proud 1 am to be here
today to accept this technology company award. Now, rd
like to take this opportunity to thank ali the people who ...
164 Audioscripts
Part 2
Well, there were so many points of comention you wouldn't
believe it! But, well, I suppose that's not unusual with
alliances of al! kinds. Different companies often have
conflictin g approaches to different aspects of doing
business. Our first problem was that we managed sales and
marketing in a completely different way. 1 mean, sales and
marketing are the basics of running a business, so that
created serious problems. nie second difficulty was that
their products were different from ours. To make an
acquisition work, you have to understand how products
will work together. We never managed to deal with the
differences in products. Then there's communication, which
aJso tends to be quite different from one organisation to
another. We have always encouraged our teams to work
together, but 1he bosses at Wireless preferred to interact
separately with each team. So, the ways of teamworking
differed greatly, too! Yeah, and lastly, and perhaps most
importantly, we didn't manage to build relationships with
the people at Wireless. lt seems so obvious now, but at tbe
time we didn't think of trying to overcome our relationship
problems by having sorne human contact and develop, er,
well, rela.tionships with their people. We simply never sat
down together and discussed al! these problems.
Listening 3 page 13
A We're based in LiverpooL
B So are we. What line ofbusiness are you in?
!\ We're in video games - and you?
B We make metal pipes.
\ Oh, really! Where are your main markets?
B Actually, we've just had a huge arder from China
A l'm very interested We are sending a sales ddegation to
Beijing next month. In fact, we are thinking of sending
the team on a cultural awareness programme orga1sed
by Culture Plus. Have you heard of them?
B Yes, we were also thinking of worki ng with them.
Maybe we could put our teams together and get a
group rate? What do you think?
A Sounds like a good idea. Look, here's my card Why
don't you give me a cal! ... ?
Listening 1 page 16
lt's never easy to give golden rules for project management,
and that's because the nature of all projects is that they're
fluid - things change, problems appear and you just can't
predict exactly what will happen. But, of course, there are
guidelines that project managers have to follow and there
are a number of tools to help tbem. 1 always say that all the
phases of a project are critica! but that sorne are more
critica! than otbers. And for me, the two most critica! ones
are initiating and planning. lnitiating is critica] because if
the project doesn't have salid foundations, then it j ust
shouldn't happen. So you have to look at the project as a
whole and ask yourself: Is the project feasible? Will it add
value? One way to get the answers is by preparing a project
overview, or project charter, which lays out the purpose and
the strategy behind che project. Once you've done that, then
the next phase, planning, becomes much easier. When you
plan, you ha ve to do a lot of things - allocate resources,
forecast costs, prepare a budget and time schedule and,
above ali, evaluate the rsk factor. Perhaps equalty
important is sclecting the project team beca use if you've got
the right peoplc working together, you're more likely to
succeed. 1f the fi rst two phases have been well prepared,
then executing should be relatively easy, especially ifyou've
thought through the potential problems and developed
contingency plans if things go wrong. Delivery- well, again,
if you've done the planning, you should be able to deliver
the project on time and within che specifications. Bul if you
haven't, then there's not much chance of that happening.
Listening 2 page 21
1 because it would be cheaper for thc company and it would
P o 1.1 n. n il!l r So, Sylvia, are you ready to take on che
market research side ofthe project?
Sylvia: Well, 1 really need sorne more detailed information.
What exactly would be involved?
1' Well, 1 don't have the specifics yet but 1 can give you a
general idea. We're planning to create a new range.of
beaury products for women in the Asian and Arab
World markets. We're convinced there's a market out
there but we need to do sorne basic research to find out
more about the products that are already being used.
Sylvia: OK. So you want us to conduct sorne inte.rviews
and prepare a full market report, is that it?
f- Yeah. That's exactly it. Your report will tell us what
sorts of products we need to design.
Sylvia: So, how many interviews will I have to arrange?
r 1 1don't know exactly, but we can discuss tha1 later on.
And don' t worry, rm sure the Asian office will be able
to help us witb all that. That way, you can just focus on
the data.
Sylvia: OK. But what about dates? When do l have to get
th is in by?
PM Let's say six weeks from now. Does that sound
reasonable?
Sylvia: There's no way we can do it by thenl l'd say it'll take
at least two months, if not more.
2
P Thanks for agreeing to do the product deve.lopment
work, Alex. lt's great to bave someone with your
experience working with us.
Alcx: No problem. rve read the project summary and this
is exactly the sort of thi ng that we're good at. L'm very
happy to be invo.l ved. So, what's the schedule for this?
PI\ First, we have to get the basic inforrnation from the
markets before we draw up the final specifications for
a full range ofbeauty products. Once we have those,
then 1 think we should aim to have everythjng ready
for production in six months. Will tha1 give you
enough time?
Alex: Yeah, that should be OK. But I'd like to know exactly
how much we can spend on ali this. How much are
you budgeting for our side of things?
'VI Well, l've given you a provisional pudget of SOk for
your team for ali the development work. That's to
include testing and production of a ful! range of
samples. But rll need you to give me full details of your
exact costs.
Alex: Ah, no proble.m with that. 1'11 give you ali the details
once 1 get the specifications.
Decision p3ge 22
Well, in this case we really had to move very quickly. The.re
was no way that we could deliver producis that had not
been tested to our customers. So the prioriry was first to
determine which solutions were feasible in the time we had
available. That eliminated the option ofbuildfog a separate
testing plant, simply because there wasn't enough time to
complete it. The three remaining options were ali equally
feasible. So then it became a question of choosing the
solution that would be the most cost-effcctive. In fact, the
onc 1hat was selected was offioading' resting: to the factories
that had excess capacity, and that was chosen mainly
also be a solution that could be used systematically
whenever the same problem occurred at any of the plants. I
was the project manager and that was my job for the ne.xi
six months. lt was a lot ofwork co-ordinating all the
diffurent factors, but in the end it worked out fine and we
still use the system today. For me, it taught me that the
most obvious solutions are not, in fact, always the best.
Because. of course, we could ha ve just gone and bought
testing mach ines and insralled them directly.
Listening page 29
A ... so, here are the designs rve done so far - see any
problems?
8 Hmm, r'm not su re that 1 can. You've done a great job
on these. How long will it take to finish thcm, do you
think?
A That's the thing l'm worried about. Er ...
B Go on ... that's what we're here for.
A Well, l'm a bit stuck for time. rve got so much to do
this week, l'm afraid l might not meet our deadline.
B l'm sure we can work this out. Maybe 1 could get sorne
of the other stuff done and you can concentrate on
these.
Great - thcn 1 should be able to get these in on time.
B lf anyone can do it, you can!
Decision page 30
Well, actually, ,I think it is pretty evident what the team
leadcr should do in cases like this. Team leadcrs shouJd be
ve1y cautious about judging a team's decision. lf the proper
process was fullowed and team members are behjnd the
decisions and results, then the ream leader should present
the findings as just that: the team's decision. Of course, the
parameters of the task should have been shared fully with
the team at the beginning. This wasn't the case, but under
the circumstances, the ceam offered seemingly practical
ideas. In fact. you know what, presenting tbe team's ideas
would have been a perfect example of leadership! Who
knows, management may even havc approved a budget for
the team's suggestions.
Audioscripts 165
 Ideally, the leader should focus on tbe aims of the brief and
provide resources to help the team achieve those aims, but
should not influence the team's decision-making or, worse,
make decisions for them.
1 page 34
lnterviewer: What is an intranet?
j ennifer: An intranet is an area where people in a
company can share information of aU sorts, and it can
be accessed by everybody within a company, however
large that company is.
lnt: How many staff regularly use tbe intranet?
Jennifer: lt's very difficult to say because we don't actually
see where the people who are using it come from, but
from the number ofhits we can average that at least 50
per cent of the company use ita U the time.
lnt: What are the most popular parts of the intranet?
j ennifer: 1 would say generally the most important bits
that get used most ofthe time are tbewhat's new
section, er, maybe tbe special offers, definitely the staff
directory and of course useful links giving access to ali
sorts of things outside the company.
tnt: What are the biggest challenges in managing the
intranet?
j ennifer: The biggest challenge is trying to keep lhe
information current and trying not to overload tbe site
with too much information. As our intranet has
contri butors from ali over the different areas of the
company, we don't want people to duplicate
information, so we have to keep our eye on what goes
on, so that we can continuaUy weed out anytbing that's
unnecessary.
lnt: What are the main security issues for the intranet?
jcnnifer: Well, it won't be possible for anybody outside a
company to actua lly access an intranet site. However,
of course there is always the possibility of people
downloading information and emailing it to people, so
we do have to make sure we don't put really sensitive
information about our company on the intranet. Also,
we don't put photographs of people there unless they
give us their permission as there is a sligh t risk of
someone actually picking u pa photograph and using it
for sorne purpose. These are very, very minor risks but
we do take them into consideration.
lnt: Who supplies the content for the intranet?
jennifer: For our in tranet site, we bave content supplied by
everyone within the company. Anyone can ask if tbey
can have something on the intranet We just have to
edit it like we would a newspaper and try to keep
certain things, sorne certain criteria, in our minds.
lnt: How ha$ the intranet's role developed since it began?
jennifer: It's grown enormously. To begin with, intranet
sites just used to give people very minor information,
but it's rather like a magazine now and because people
use ita lot, more information cango onto it, and
people will want to access it more frequently, so it does
just grow and grow.
166 Auclioscripts
2 page 38
Last week's meeting was very productive, wasn't it?
Last week's meeting wasn't very productive, was it?
2 Vou wouldn't be able to help me with these
calcularions, would you?
You'd be able to help me with these calculation s,
wouldn't you?
3 You aren't suggesting that we didn't give you ali the
infurmation you needed, are you?
You're suggesting that we didn't give you ali the
infurmation you needed, aren't you?
4 But tbat doesn't mean that the p roject won't be
successful in the long term, does it?
But that means that the project won't be successful in
tbe long term, doesn't it?
5 fd !ove to have a copy of that chart you showed us. Vou
couldn't give me one, could you?
f d !ove to have a copy of that chart you showed us.
You'll give me one, won't you?
. . Listening 3 page 38
lnterviewer: Grard, what exactly is the difference
between 'business intelligence' and 'industrial
espionage'?
Grard Desmarest: Well, the two terms are reaUy very
different because the first is entirely legal and the
second is not. Business intelligence is the collection of
information througb any legal or 'open' source. So that
could be through trade publications, business
magazines, govemrnent organisations, specialist data
sources, the internet or even just through
straightforward observation. On the other hand,
'industrial espionage' is ali about gathering inteUigence
by illegal methods. Now, there are various ways people
can do that, by electronic surveillance, by steaJing
confidential informarion and, of course, by recruiting
human agents from inside a business operation.
lnt: How should businesses go about protecting their
information?
CD: l'd say there are really two critical areas where
businesses are particularly vulnerable; the first of those
is tbrough their information systems. It may be that a
business hasn't protected its communication network
properly. So it might not even know that critica! files
have been interfered with or have gone missing. So,
protecting your information, how it is accessed and
how it is exchanged - that's the first thing. On the
human side, there are other dangers. People are nor
always honest and they may be prepared to
communicate confidential information in exchange for
something they want You know, a competitor might
try to inAuence or even hire a key member ofyour staff.
So, you really need to have staff you can trust and that
means being sure that what they are doing is in the
best interests ofthe company. So, fm afraid there are
quite a lot of good reasons for companies to instaU
software and systems to monitor the activities of their
employees. lt's sad to have to say that, but these days
information is just too valuable.
lnt: How would you advise an employee to be more aware
of the danger of espionage?
CD 1 would say that it's more a question oftraining than
advising. 1 say that because most employees do not
understand the tecbniques that outsiders can use ro
obtain infonnation about a business. So, intelligence
or security training can be very hclpful because it's
always easier for people to protect themselves once
they know what they have to protect themselves
against. You know, competitors can get a lot of useful
information from employees just by asking the right
questions at the right time. And an employee may not
even realise that he or she is being manipulated. So,
good, basic security training is deftnitely the first
thing, and that's something that most companies
don't provide because they don't know the risks that
they are running.
l n Can you give us an example of a cornpany that you
llave advised and explain how you helped them?
GD: Well, l'm afraid 1 can't give you any names but, er, yes,
1 can answeir that question in general terms. 1 mean,
l've been involved in cases where we've been called
into a company that had been the target of industrial
espionage, aod our job was to identify and locate the
systems that had been installed. l'hese were mostly
quite sophisticated electronic devices which recorded
telephone conversations and monitored meetings and
then transmitted rhat information to outsiders. So, the
first part of the job was to conducta full security
review and we did that at tbe weekend when there was
nobody at the comany. And then once we'd done that,
well, we advised the company's information managers
on what tbey had to do to make sure that it wouldn't
happen agan. But, er, obviously 1 can't discuss the exact
details witb you - in my profession we don't give away
confidencial nfonnation, we protect it!
Listening 4 . . 3ge .:SY
\ Head office saythey want the sales information for
ali our subsidiaries as soon as possible.
B Well, so far l'm afratd 1 have on ly been able to get
sales figu res for Europe.
Why didn't you tell me? Don't you realise how
important this is?
B l'm sorry. l didn't know it was that urgent.
Look. COuld you just tell me when you'll have it
ready by?
2
\ Shall we go over these figures again before we send
them to the accounts department?
8 l don't th ink that's really necessary.111ey look pretty
good to me.
/\ Well, l'm not so sure about that l'd like to be certain
that there are no major errors.
8 l'm afraid 1 don't have the time to do that rght now.
Why don't you check them yourself'?
3 display and keypad. lt's called the Clamshell.
We still haven't found what's causing the system to
fail like thaL We've tried everything.
B That's too bad. It's already caused us a lot of delays.
/\ Yeah, 1 understand that. So, what would you advise
me to do?
B 1 don't know. How about arranging a meeting wfth
the people who installed the software?
Good idea. 1'11 do just that.
1 have co make a presentation to the directors about
how we can improve our information system.
B Well, there's plenty to say abour that.
A 1 know. That's exactly the problem. lf you were in my
postion, what would you say?
B 1 think f'd just focus on the plans for the new
network. l'd show them that chart we prepared.
' Oh, right. Do you have any idea what we d id with
that?
B l have a copy on my computcr. rll send it to you.
Decision age 40
This isn't an isolated example by any means. DigitalVisions
is facing exactly thesort ofdilemma that many majar
corporations are finding themselves in today. And it's an
extremely complex one with no easy soluton. On the one
hand, there is a law made by one country which happens to
be the home of many multinat:ional businesses. And
corporations can't afford to ignore that law without taking
considerable risks. But on the other hand, there is the wbole
question of whether or not a company can, or indeed
should, impose a law on employees in another counuy
when that law directly contradicts its own national labour
legislation. So, it raises sorne difficult questions: Is a
company entitled to know everything about its employecs
and their bebaviour? How will it use such information? A
lot of people are starting to say that, yes, companiesshould
have that information. lndeed, sorne businesses probably
already do have it. Remember that 75 per cent of companies
in the US now have some sort of employee survei llanee
system - !T or camera. So, my feeling on this one is that it is
a qucstion that will evolve very quickly and that will be
resolved at the highest levels ofgovernment. So, forme, the
problem at Digita!Visions has to be solved overa period of
time - they can't just impose a solurion on their staff like
this. 1 think they should definitely not install the hotline in
countries where it meets with serious opposition. What they
have to do first is to open negotiations with staff and their
representatives and try to reach an agreement on how the
hotline should be used.
Listening 1 page 42
Siernens is producing a special range of fushion phones
designed to be lifestyle accessories. One of these has
two clear functions: it is a phone and, more
importantly, it can be clipped onto a bag or item of
clothing, which makes ita fashion statement as well.
b Another Siemens model features a large screen on a
small devce, which can be closed to protect the screen.
When opened, it provides plenty of room for both
Nokia has a new model where the telephone itself is a
secondary function. This suggests that the mobile
phone as a separate device could disappear aJtogether
and be designed to perform specific tasks airned at
particular types ofusers. The primary function ofthis
model is as a gaming console.
Audioscripts 167
 <I Sony Ericsson has pioneered a clever new shape in
camera phones, seen in a new model which resembles
a camera when closed. The device opens to the side to
revea( a standard mobile phone keypad, and Sony
based the controls on their digital camera. This is the
Jackknife.
Listening 2 page 47
OK, let me start by saying that wbat we need to achieve is
the creation of a corporate website which is an effective
sales and marketing tool. The fust thing wc need to do is
ask our information technology experts a fuw questions.
And the answers we need from the JT staff, as you can see
from this slide, concern the hardware we require and the
time we need to spend maintaining the site. Now, while
w~re waiting for those answers, 1 suggest that the marketing
departmen1 starts by preparing product descriptions and
conducting an on line survey. My view is that the online
survey should be modelled on the questionnaires we used
for our last market research. Finally, 1 want the
communications department to organise regular meetings
to keep everyone up-to-date and informed. Now, any
questions?
Listening 1 page 54
J.
Benetton is, of course, one of the big names in modero
advertising and everyone remembers 1he series of shock
campaigns that the company did with Oliviero Toscani in
the 1990s. Now, that may have been a great way to build
awareness of the Benetton company, but it ce.rtainly wasn't
always a commerc.iaJ success. So 1 think it's very interesting
to see how they've changed their advertising in their new
campaign. Of course, there's no direct connecrion between
the animal in the p icture and the clothes that Benetton sells,
but this really is an ad that has great emotional impact.
Benetton is associating its name with a cause - the
protection of animals and nature - and that gives them a
very good platfom1. This is more than just photography- it's
art. lt's the type of ad that people will want to put on their
walls, and there's no better place for an advert than rhat.
Creativity is at the heart of advertising, which is why l've
chosen this ad -you know, l think it's a great example of
just thar. At first sight, it just looks like a very
straightforward shot of a group of young Maasai people,
standing together cut in the emptiness of the African
plains. And you're a1most left wondering what this advert
could be for, because there's no obvious trace of anything
connected with consumer society. Bur then when you look
more closely, you realise that, in fact, the people have
been positioned to forrn the outline of a Land Rover four-
wheel drive vehicle - the Freelander Maasai. l think it's a
very subtle ad because wbat it's saying to people is 'Look,
this is the vehicle that the Maasai have chosen, and
they've done rhat because they know it's a reflection of
their own qualities as a tribe-strong, fearless, intrepid.'
So for the target audience, this is an ad that's not only
reassuring, it's also one that makes a very direct appeal to
their sense of adventure.
168 Audioscripts
Listening 2 page 55
1
Max Schling lived in New York. He opencd a flower shop
there. To publicise his business he rnn an advert in Th.e
New York Times. lt was in shorthand. Sorne bosses asked
their secretaries to translate it. They told them that it said:
'Remember Max Schling Flowers.'
2
One of the best stories l ever heard about advertising is
about Max Schling, who was a New York florist. Now this
was back in the 1920s, and Max had just started his
business and was looking for a good way to pubLicise it.
And then one day he had this brilliant idea: he ran an ad
in 7lie New Yorh Times - only it wasn't like any of the
other ads in the paper because it was ali in shorthand,
which is an abbreviated language that people like
secretaries use lo take notes. Well, of course, none of the
businessmen who'd bought the paper could read shorthand
so they had no idea what the ad actually said. Guess what
happened? As soon as they arrived at work they asked their
secretaries to translate it. And what did it say? ' Remember
Max Schling filowers next time the boss wancs to send
flowers to his wife.' Now for me that was one smart
advertisement! And in the end, Schling went on to become
one of the most famous flower businesses in New York.
3
Remember that busine..~ trip that 1 was supposed to do?
You know, for the International advertising festival. Well,
you'll never believe thrs! Everything went just fine to begin
with - 1 hada great flight out, the horel was OK and the
festival itself was really a great success. Anyway, to cut a
long story short, when 1 was getting ready 10 leave, 1 put my
passport and my tickets into the side pocket of my bag -
just to be sure that rd know exactly where rhey were. Wel~ 1
asked the receptionist to call for a taxi and sure enougb ten
minutes later this car drew up. l went over to talk to the
driver and just then a second taxi arrivcd. And this driver
then starred shouting atthe first driver and saying that l
was his client. Well, in all the confusion, 1wasn't paying
attention to my bag and suddenly when I rurned round to
look for it, 1saw that the second driver had taken it and
was putting it in to his car. And then he just jumped in to
his car and drove off, leaving me with no passport, no
ticket and no money. What a nightmare!
Preview page 60
Marvin Hunt
1specialise in the area of employment law, but not just
here in the UK. 1 work ali over Europe and 1 deal with a
wbole range of legal issues arising out of employment So,
one week I could be advising a majar corporation about
their hiring policies and the next 1 could be involved in
resolving a dispute between workers and employers. W~e
gota very challenging case coming up soon where a group
of fema le cmployees is claiming that they were paid less
than the male employees for the same work.
Louise Gramger
My training was in Law and in life sciences. So my double
background is a great help in my line of business, which is
the environment. These days, companies are coming under
a lot of pressure from lawyers and also from
environmentalists who say that their operations may be
causing damage to the environment or even creating health
problems for sorne people. So my job is to help businesses
to evaluate the risks that they face. At the rnoment l'm
advising a petroleum company that is accused of polluting
the local water supply.
Marsha Maspero
r'm in IP, which is our jargon for intellcctuaJ property. That
refers to things like tbe brand names and the patented
inventions tbat belong toan organisation. So we have a
network of associates in countries around the world who
give us specialist advice to help companies to protect their
intellectual property in international markets. My own
speciality is actually the cntertainment industry, which
means that fin often working with people from tbe music
and fi lm industry. f'Qr instance, l've just finished defending
a very famous client frorn the sports industry whose
pictures were being used on a commercial website without
his permission.
Samuel Chase
Product liability is where I work. AJI businesses are
responsible for making sure that their products do not
cause harm to the consumers who use them. What we do is
advise companies when they have to deal with cornplaints.
That could involve negotiating with other lawyers or
actually defending the company in court. We have a big
case at the rnornent where we're helping a pharmaceutical
company to prepare a strategy to deal with tigation that
may result frorn cornplaints about one of its best-selling
drugs.
Listening age 65
l is in fact the first to register a trademark containing the
Mumc David, 1 think you know that we've been havi:ng a
lot of problems with rhe Donsanto case. We're already
behind schedule and at this rate we'll never be ready to
present the case in court. Here's what I have in mind:
rd like you to take on responsibility for the whole case
frorn now on.
David : That's out of the question! l'm in the middle of
negotiations with the employees of Dextra
Manufacturing about compensation so 1 don't see how
1 can take on a whole new case just like that! Besides,
it's a lot ofresponsibility,.
Momea rm sure we can find someone to replace you.
That way you'd be completely free to deaJ with
Donsanto. We would give you full support and you'd
be able to choose the people you want to work with.
David : Well, ifyou give mean assistant anda budget to
cover my expenses, 1suppose 1just might be interested.
But 1can't give you an answcr right now - not before
l've had a look at the files to see what's been done so
far. Wby don't you get those to me and then 1'11 be in a
better position to give you my decision?
2
Hi, Jane. Well, are you still interested in buying
the laptop?
jane: Not at that price. You know 1can't afford that much.
You're askiog for five hundred and 1could probably get
a new one for less than eigh t. Why don't we say four?
Ha rvly No way! You know it's worth more than that. lt's
on ly six months old and it's sti ll under guarantee. And
you won't have to buy any software - it's aJJ installed.
jane: f'our hundred, that's my final offer. You can take it or
leave it.
" Oh, wel~ that's too bad thcn.
3
J tl '1~ Hi, Rudy. You're just the person 1 was looking
for.
Rudy: 1 don't like the sound of rhat! Don't tell me you're
going to ask me to cover fur you againl
Joh mna Sorry to ask you at such short notice, but what
l'm proposing is that you cover for me at tbe project
meeting on Friday and 1'11 make it up to you whenever
you like.
Rudy: That suits me fine, actually, becausc rrn going to
need you to cover forme ar 1he end of the rnomh. So, if
you can do that, then you've gota deal.
J , lricJ OK - done!
Decision page 66
This is a classic dilemrna. Here we have two companies that
had actually both successfully launched Lheir businesses in
more or less the same sector. The similarities probably end
there, too. because on the one hand you have Glow
Industries, which is a start-up, and on the other you bave
an international organisation with connections to sorne
very big players in the beauty business. So big money rneets
small money, ifyou like. because Glow by Jlo has $100
mi Ilion in annual revenue and Glow Industries just two or
three million. The problem is thar neither of the companies
word clow' because other businesses are already selling
products under similar names. And this is also where it gets
even more complicated: because when Terri took legal
action against Sweetface, they responded by buying a stake
in one of the comparues that was already using the name
'Glow' and tben whaf they did was to counterattack,
accusing Terri herseJf of stealing their name. But that
generated a lot of negative publicity for Glow by JLo, and
eventually the two sides reached a settlement. There are no
details of exactly what that involved but Terri Williamson
agrecd to change tbe na me of her products - so there is
every reason to suppose that she received substancial
compensation.
Listening 1 age 68
The arnazing thing about most successful brands is that very
little can knock them off the top once they've become well
established and they've achieved brand loyalty frorn their
customers. 1 mean, certain big brands have survived scandals
about sweatshops, they've continued to sell even though the
sports teams they e.hose to prom0te them lost ali their
matches in one seas0n! But the one thing that can kill a
Audioscripts 169
 brand, and particularly a luxury brand, is if it loses its image
of exclusivity. lf you give too many retailers licences and let
them sell at the price they see fit - well, thcn you're in
trouble! You must never lose control of the pricing policy.
J -,
._-unit B. . Listening 2 page 72
\-
' print c:ampaign supported by the new ...
lnterviewcr: You used to be a brand asset manager and
you've moved into the area of corporate identity. Could
you tell us how corporate identity and brand asset
management are linked?
Manager: I feel qualified to do both because a good
corporate image, like a brand image, will separate and
distinguish a company and its products and services
from ali others. A 'brand' in this case is the face of the
company, the one that the public sees. When you have
a face, you have a brand you own. So the identity,
whether it be corporate identity, brand identity or
both, should be the company's visual statement to the
world about who and what the company is and what
its products and services stand for.
lnt What is the biggest cballenge companies fuce in
establishing a clear brand identity?
Manager: There are many challenges, of course, but they
must ali be faced. Companies must understand who
they are, what their product is and who their customers
are - ali of which lead to the key contributor of
identity: finding the right price. Are they economical
products ata good price, or expensive quality
products? The price is a key distinguishing factor in
terms of competitors. lf there is no one in the market,
then brand identity rnight not even matter, products
might just happily survive without an identity.
lnt: How do companies check the effectiveness of their
corporate brand?
Manager: They can do a visual audit, which meaos
conducting i.nterviews and analyses on everything the
company produces, like letterheads, business cards,
vehicles, signage, packaging, ads and so on. This should
be done every tbree to five years, ideally. Ali the visual
materials need to say 'this is who we are and this is
what our products stand for'; year in, year out. The
company name isn't more or less important than tbe
brands they sel!; in most cases the brands and
corporate name are synonymous.
lnt You say 'in most cases'. When is this not the case?
Manager: WeU, Iots of big conglomera tes with a variety of
brands actually keep a low corporate profile, while the
brands are in the forefr<?nt. People remember the
products but not the firm that produces them.
However, that doesn't mean tbat if the company is
involved in sorne wrongdoin g or if their identity gets
tamisbed, it won't have a negative effect on the brand.
In the end, the corporate brand's reputation will affect
the product brand's reputation, and vice versa.
Listening 3 page 73
Jack As you can see on the slide here, we are going to
redesign the imeriors of aJI our directly operated stores
in line with the new brand image of classic sobriety.
This will reinforce the message of thc media campaigns
and should lead to a considerab.le increase in sales!
170 Audioscripts
Catherine: Yes. lt is a good idea, but 1can't help
wondering where thc budget for this is going to come
fro m.
Jack: Yes, I was going to come to thar. We will of course
have to cut the advertising budget, and 1 feel we sbould
scrap the 1V campaign altogether. A better-targeted
Catherine: Hold on, what do you mean, scrap the 1V
campaign? Why didn't you tell me? We did so much
research for that, you know, and that campaign will get
us the extra sales we need. l'm sorry, but 1 ...
jack Look, don't take this personally - it isn't that your
idea is bad, it's just that this is clearly the best way to ...
llilil
Dedsion page 74
This is a tricky situation indeed, though not unusual.
Managing success in tbe luxury brand business is almost as
difficu lt as getti.ng to the top in the first place. Wth the sales
ofbrands like .Burberry increasing as they are,
democratisation is inevitable. 1 mean, look at the CEO at
Dior - he has tripled sales figures in six years and that shows
it is possible to expand a brand and keep it exclusive.
However, tbe Burberry case is a little more complicated as
sorne of the new brand entbusiasts are famous for bad and
even sometimes dangerous behaviour- a truly complicated
dilemma. 1 think though, 1would have to say they should
embrace the new markets. The increased sales aren't dong
them any harm! And it doesn't look like the altemative
markets are repelling their target customers. Their website
does note its 'broad appeal' in its 'About us' section, even
though it only features people who look very wealthy and
conventionaL For the moment, they seem to be taking the
'wait and see' approach. 1think they should fully exploit
these new market opportunities while they last, but 1gues.s
they are too afraid of getting a downmarket image.
Listening 1 page 80
1ntcn. icwer. Why did you invest your money in rextiles,
such a difficult market?
Bradley Hopper: Yeah, 1know, people thought 1 was crazy
but, bey, l could never work with a product 1 didn't
like. And it was clothes that I was interested in more
than anything else. At first, l wanted to get into the
designer end but that's even more difficult
lnt: Your investment has certainJy paid off. Turnover of
around a hundred million dollars, right?
Bl-1 : Yeah, it's been a very good year for us. But it took
sorne time to get to this point, although 1 guess 1 knew
we could do it. lt's profit that drives me. l know l. said 1
!ove great clothes and that, but what your first priority
has to be is making money, you know what 1 mean.
That is the key to success as far as rm concerned.
lnt Can you relax now that you've established the brand?
BH : Well, not exactly. In my business you have to keep
reinventing yourself, investi.ng in design and
marketing, and hope you get noticed by the best retail
outlets. There is so much competition out there and
they're ali cutting costs in a very price-sensitive market.
But it isn't being the cheapest that counts. Wbat keeps
me one step abead is knowing where to cut costs and
where to invest.
lnt And what is the next invcstment?
BH : WelJ, l'm proud to say we're planning to launch our
rst envi:ronmental product line this year, a T-shirt line
made from 100 per cent grown-in-the-USA certified
organic cotton. There's a huge market for that kind of
environmentally friendly product.
lnt That sounds like an interesting development.
BH : Yes, but 1 may not be around to see it- l'm thinking of
selling up and starting out as a venture capitalist, or
rather a business angeL lt's the excitement you get ar
the beginning of a venture that l'm after. And l prefer
the image of angel because that would mean beng
more involved than justa venture capitalist, you know,
and it's the hands-on part that really interests me.
Listening 2 page 81
Lcader: ... OK, hold on, let's just sum up what has been
decided so far and then ifwe are all agreed, we can
continue to prioritise what's left on the list. We ali agree
that it is imperative to draw up criteria for the
companies we want to trade in, right? Otherwise, we'IJ
never get a comprehensive list together. Now, I know it
would be useful to establish relationships with the
CFOs of companes on our list, but we dont have to do
that now. l'm afraid we can forget about a trip to
Frankfurt - it just doesn't make sense, and we're going
to recruit specialists for the job, anyway. Right, what
next?
Tcam member: Well, maybe the next step should be to
start the recruitment process ...
Listening 1 page 89
lntcrvicwer: There's a lot of interest in renewable energies
these days. Could you explain brieAy what these are?
Mia l lansen: Well, when we talk about energy sources, we
usually divide these into two very different categories:
non-rene:wable and renewable. Non-renewable refers to
all the energies that depend on usi11g mineral or
petroleum resources, whlch you can only use once. For
example, ifyou use a barre! ofoil to produce electricity
or fueJ, then that energy will never be replaced. On the
other hand, renewable energies depend on natural
forces like sunlight, which, of course, are unlimited. So,
when you use renewable energy, you're not reducing
the amount of that energy that is available, because it's
constant - so the same quantity of energy will always
be there in the future.
lnt Can you give us sorne examples of renewable energies?
MH : Of course, l mean ... l'm sure most people today are
familiar with the wind towers or wind turbines that
you can find in many places. Well, wind power is just
one example of this, and like most renewable energies,
or 'altemative energies' as they're often called, it
originates from sunlight. The action of the sun on the
atmosphere not only creates wind but it also generates
heat, which makes water evaporate. So, almost all
renewable energies rely on the sun. Other examples are
solar power, of course, water and wave power, and also
what we call biomass energy, which comes from plants
and vegetable matter. But 1should add that there are
other renewable energies that do not depend on the
sun, for instance, geothermal energy, which uses the
heat that is under the surface of the earth, and tidal
energy, which uses the gravitational effect of the moon.
lnl What's the future for alternative energy?
MH : l think it has a very important role to play in the
future because, as r said, it uses energy sources tbat a.re
abundant, s there's no danger of them disappearing
like our traditionaJ energy resources. But what's justas
important is the fact that it's non-polluting - and you
don't have to bum anything 10 produce power. And
that means it doesn't produce gases that harm the
environment and cause health problems.
Unfortunately, there's no way you can suddenly switch
10 usiog only renewable energies - it's just not that
simple.
lnt Why not?
MH : Well, for a number of reasons, actually. Cost is
definitely one of those, becausc power generated from
alternative energies is still relatively expensive. And
then there's the fact that many of the technologies are
experimental and we don't yet have the systems in
place that wilJ allow us to generate power cheaply from
say, waves - tbough there's no doubt in my mind that
we wilJ have those soon. Yet another problem is with
the nature of the energy sources themselves - the wind,
for example, doesn't always blow so you have to
compensate for variations in the amounts of energy
that can be produced.
lnt: So, what are governments doing to cncourage the
development of renewable energies?
MH: 1 think it's easier to take an example to explain this. lf
we look at the situation in the United Kingdom, we can
see the sorts of problems that govcrnments in many
countries are facing. The main uses of energy in the UK
at the moment are household consumption and
transport. Then to a lesser degree you have industry
and, lastly, services. rf we just look at the first two - well,
ifyou wanted to replace the energy that they consume
with electricity from wind, then you'd have to build
hundreds of thousands of wind turbines to do that! And
today that's just not possible for both technical and
environmental reasons. So, in fact, the UK government
has set a fairly modest target, which is to have 25 per
cent of its energy coming from renewable sources by
2025. But where will the rest come from? WelJ, that's the
big question. Nuclear energy could be one solution, but
nobody wants to live next to a nuclear power station. So
at the moment there are no easy answers - renewablc
energy can help, but it won't provide a magc solution.
ll@i!.i Listeoing 2 page 91
A. Hi, Ray. 1 thought I'd give you a call to see how
things are going on your side. Everythi.ng going
smoothly?
B r'd say we're doing OK, but we have hfr a couple of
snags recently.
A Oh, really? Any idea what the problem is?
B The engioeers have found a problem with the
power supply. 1t keeps cutting out and they don't
knowwhy.
A Well, that doesn't sound too good. How can we sort
this out, then?
Audioscripts 171
 B Why don't we have a video conferente witb the
supplier? They should be able to come up with
so.me.sug.gestions.
2 A So, Don, can you give mean update on progress so
far? No hitches?
B Nothing too serious, no. The next batch of samples
should be ready by tbe end of the month.
A The end of the m.ontb! So, whafs gene wrong? 1
thought we said they had to be ready for testing by
tbe fifteenth.
B 1 know that's what we were aiming for. But we
haven't received sorne of the precision tools we
ordered.
\ Let's hope they're here soon, but if tbe worst comes
to the worst, we could ex.tend the deadline. Why
didn'tyou tell meabout this before, though?
3 \ Hi, Alan. So, how did it go?
B Not that well, actually.
A Really? Don't telJ me that theyre not ~oing to sign
the .c.ontract.
B Not just yet, that's for sure. They say they'U only sign
ifwe give them a guarantee that we won't raise
prices by more than two per cent ayear.
1\ You can't be serious! there's no way we could agree
to that, not with energy prices as high as they are.
How do you suggest we deal with this?
B l don't know, but 1 think we'd better call head office
first and see what they have to say.
Prev:iew page 94
lfyou have a look at some recent examples of compnies
tbat bave gone public or, at le.ast, announced their
intenton of don.g so, then you can see sorne quite distinct
scenarios. Fer exa.mple, ifwe take Steven Spielberg's film
production company, DreamWorks, it's pretty clear that the
primary motivation is to allow the original investors to
cash in their iovestmenl. On the other hand, in the case of a
business like Virgin Blue, the ll'O is obviously more directly
tied in to the nature of tht business - airlin.es require huge
sums ofc:apital to purchase aircraft, and getting that capital
from tbe publicratherthan froma bank can be very
tempting. Anotber case in point is Domino's Pizza, where
the priorities are s lightlydifferent because the company is
primarly interested in paying off sorne of its debt while
also compensating sorne of its senior staff But there are
other reasons, of course, why a business migbt dei;ide to go
publc.
Listening 1 page 96
1 wouldn~t say that the Google IPO was really all that
successful even if they did raise $1.7 billion frorn the sale of
almost 20 rnillon stocks. Because you have to remember
tha.t initially the company had hoped that its !PO would
bring in almost $317 biJlion and they were expecting to sell
26 million stocks on the market. So, ifyou compare the
price they actually sold for, $85, withw.hatthe company
had projected, which was.between 108 and $135, then you
can see that il did n't re<:1lly work out that weU. You know, l
think tbe management teammade quite a few mistakes
and that's why they dido't make their target. Probably the
most serious was with the tming of the IPO - it was set for
172 Audioscripts
Augustand that's not the best time toget the financia!
community on board because it's right in the middle of the
summer vacation. Secondly, there was the attitude
concerning the disclosure of lhe company's plans. Tbese
were never published in sufficient detail and investors were
left in sorne doubt about what the eompany was planning.
Lastly, the actual process of the auction was complicated
ami, if anything, instead of simplifying things, it really
made it more difficult for investors to buy the shares.
However, having said that, 1should add that for investors,
the Google lPO was a really great opportunity: they could
buy ata relatively low price and within a few days the
shares had risen to $125.
Listening 2 page 99
As CEO of lnnovaTex, f'd like to saya few words about the
company before Lgo on to look at the specific details of our
IPO. 'To sum up our company in a few words: InnovaTex is
a young company in a vibrant growtb sector. We have first-
dass products, a dedicated arid talented staff and 1 tnink
we llave a great future abead of us. 1'11 come back t0 all that
Jater in this presentation. But now l'd just like to say how
proud r am, not only of wbat we have already achieved but
also fbeing cnosen to lead the company at this critica!
moment in its history s w embark on our nextjoumey.
Today, we are about to begin that joumey. And that brings
me straight to my main message: 1 sincerely hope that as
many of you as possible will be joining us; in other words,
that you and your clients will be among our future
stockholders!
lnmyptesentation tbday, 1'11 be strting with who we are
and tben giving a review of our recent performance. l'll
then move on to an analysis of the risks and the tliallenges
that le ahead. After that, fil look at the capital and
management structure and how it will be affected by the
offering. And finally, 1'11 discuss the more practica! details
of the offering, such as the timing.
li@!f f Decisjon page 100
WeJI, 1 think the whole Hi Wire story gos to show that it is
not always that easy to get an IPO right. In this case, first of
ali, there is the que8tion of how the lPO was organised, and
that brings up two problems: the timing and the choice of
the bank tQ manage the laund1. For the timing, itwas
already clear that the internet boom was coming to an end,
so the company was entering the market at the worst
possible time. But the real problem was thi't they were
doing that with their stocks priced too high - they hadn't
reduced tbem at ali. Now why they attempted to do that is
atso the result of the telationship between the company and
its investment advisers. ln this case they really weren't that
compatible: on one hand, a traditional Wall Street
investment bank with very conservative ideas about how to
launch a public company and ori the other, a yoUng rule-
breaking, risk-taking enterprise with very definite ideas.
What happened? WeB, basically, both side!i bad overvalued
the company, thy couldn't sign up enough investors and
eventually they had to accept the fuct that they couldn'r go
ahead with the !PO. So it was cancelled for the second time -
now that didn't do either of their reputatons any good. And
remember, on Wall Street nobody ever furgets a failed IPO.

Preview 1 rige 102
COmpetition is one of the most critica! factors for any
business, and knowing where you stand in relation to your
competitors is crucial. And this has become a permanent
preoccupation for a lot ofbusinesses. But how do you nd
out? Well, there are various ways you can approach it, but
one of the principal tools that's used is based on a theory
developed by Michael Porter, a professor at the Harvard
Business School. According to him, there are five
fundamental forces that affect a company's compettive
position. So, ifwe put this into the form of a diagram, then
at the centre you'd have competitive rivalry'. Then you'd
put in the four forces or factors that are going to influence
this. In the box right at the cop you'd have 'l1ueat of entry'.
Now thisjust means: what is the probability that other
businesses wiJI attempt to enter our sector? Then you have
two other facto rs: 'Power of buyers' and 'Power of suppliers',
let's say one on each side. Tilis is pretty straightforward and
it just refers to the power that both of these groups can
exe1t. So, for cxample, if you are a company selling to a
major distribution chain, then your buyers can impose
certain conditions on you. The same is true for suppliers: if
you depend on one source, then you don't have much room
for manoeuvre. l.astly, there is 'Substitution' or 'Substitute
products' - now, this is quite easy to understand, too: most
producrs can be replaced by othcrs, so, of course, the ideal
situation is to have one which can't be. But that's not often
the case.
In practice, Porter's theory is very helpful because it suggests
a number ofways that businesses can build barriers to
preven1 other companies from entering into direct
competition. Among these, there are four which 1 chink are
particularly important: differentiation - makingyoUI
product or service unique; economies of sea le - getting a
cost advantage over your competition; distribution - having
a oetwork which gives you access to markets; and switching
costs - making it prohibitively expensive for your customers
to change to a rival productor service.
Listening 1 1age 105
1 think that the Honda corporation is a great example of a
business that has successfully entered new markets by using
a brilliant combination of quality engineering, efficient
production and innovative design. The origi nal company,
The Honda Tedmical Research lnstitute, was set up in 1946
by Soichiro Honda and it was originally just a smaU
domestic manufacturer of cycle engines. Their lirst
commercial product carne out one year later. This was the A
Type, a small engine designed to be litted to bicycles. But
only ten years la ter they had already designed the Supercub,
which was the first really successful mass-market
~otorcycle. This was one of the motorbikes that they
mtroduced to the US market when they opened their first
office there in 1959, and it was a huge success. lt was
followed by a whole range of new and exciting models that
allowed l londa to take more than 60 per cent of the US
market for motorcycles by 1966. But the company had by
then started to move into a new sector, the automobile
industry, and in 1963 its first car, the S 500, went on sale in
Japan. Honda then repeated what it had done in the US
motorcyclc markets, and after producing a series of
revolutionary cars like the Civic and the Prelude, in 2001 its
Accura model became the best-selling car in the US. They
had literally 1aken the automobile market by starm. During
the period from 1970 to 2000 Honda was also busy
developing new activities in other industries, including
robotics, generators and biotechnology, ro mention just
three. And they haven't stopped al that. One of their most
signficant moves was in:to aircraft engines, and ir could
well be that from now on we'll see the arrival of
commercial aircraft under the Honda name. A prototype,
tbe Honda jet, has already flown and with 441 subsidiaries
supporting the company's effortS around the world, Honda
represcnts a threat thafs impossible to ignore. So the sky is
certainly no limit for them.
Listening 2 1age 107
1
l "wis Hi, Georgia. 1 just wanted to tell you that we've just
finalised the prices for the next quarter. We reckon that
we can reduce prices by five per cent max starting next
month.
Georgia : You must be crazy, Lewis! 1 told you that our
competimrs are already at least ten per cent cheaper
than we are and they're stilJ bringing their prices down.
There'll be a riot if 1 tell tbe sales staff that. can't we
find a bettcr solution?
Le\'\. IS Listen, Georgia, that's the way it is, so just tell them
it's five per cent - whether they like it or not!
2
~1 ,~. OK, Martin, so what we've decided to do is to
introduce electronic sales tracking. That way, each
salcsperson will record ali transactions, and the data
will be centralised at head office.
Martn: That sounds fine, Steve. But how long will it take
befare the whole system is operational?
': l'd like to haveit up and running in two months.
Martin: Two rnonths? That's not long. What are your views
on nding the time to train everyone to use the system?
~h'\ " 1 don't' know, er, but it should be possible to block a
1
week in june and get everybody together then. Do vou
think that would work out? -
Martin Well, yes, 1 thnk it might be possible.
3
C. 1 hope rm not interrupting you, Marta, but there's
something l think we need to discuss.
Mana Go ahead, Greg. What's the problem?
t.rq!: Well, fve received sorne complaints from your
subordinates. They say you have been assigni ng too
much extra work.
Ma11a: Listen, Greg, you know we're short-staffed at the
moment so let's keep things in perspective. Especially if
you won't let me hre any temporary staff. So why don't
we just forget about it?
1 <, Forgct about it? Look, r know we don't see e:ye to eye
on this, but surely we need to do somcthing!
Audioscripts 173

Dedsion page 108
Th is is one of the classic cola war stories and also a very
interesting case far intemationa1 marketing because it
shows how easy it is for a company, even one like Coca-
cola, to get it wrong when they entera new market. Parle,
the owner of Thums Up, actually decided to sell ils brand
to Coca-Cola, and Coca-Cola imagined that in no time they
would be able to get lndian customers to switch to their
brands. But that's not what happencd, and after severa!
years of poor performance, Coca-Cola's managers realised
that many of their 1arget consumers actually preferred
Thums Up. So they revamped the brand, and today Thums
Up is the bes1-selliJ1g cola on the continent.
Listening 1 page 112
Frank
Our department specialises in advising and managing
transactions for our corporate customers. These are usua11y
businesses which need our specialist assistance wich
managing their capital. Now, that could involve arranging
for a company to go public or issuing shares to enable a
business to acquire another company. But it's not always
like that because we also provide assistance to companies
that are having problems and need to find new sources of
capital. In cases like that, we work with our own specialists
and put together a plan to raise capital but also to look at
how the company can be reorganised.
Matt
In my department we specialise in emerging businesses.
These are ncw companies which are entering markets with
new products or services. My job is to identify the
businesscs that we chink have development potential and
arrange for invest0rs ro 1ake a stake in the capital of the
company. Then we advise the company in different ways.
This could be about how to develop more effective
marketing solutions or about how to find strategic partners
to assist them irt growing as fastas possible. And, of course,
we can also assisnbem in preparing for a public offering of
their shares.
Claudia
The bank's customers come to us when they are thinking of
expanding their businesses or setting up in new markets. lt's
our job to estmate their chances of succeeding. We provide
information concerning market trends, competition, etc. -
anything we think they need to know - and we also give
them our forecasts for the sector they are interested in. lf we
think the prospects are good, we advise our clients to go
ahead with their projects, and we generally get involved in
the slrategic planning of the business, too.
Listening 2 page 115
1 tel"\ e,,, Good morning, Mr Sanders, and welcome to
the programme today.
Jeff Sanders: Good morning.
lnt. Maybe 1could start by ask:ing why there is such huge
media interest in this afance.
JS: r think there is one main reason for chat: cazenove has
174 Audioscripts
been in the City of London for 181 years and is one of the
few British investment banks. People are bound to be
interested in the future of such a fum.
lnt: And how did the de.al come about?
JS: Well, first of ali, 01ase bought Robert Fleming, another
British investment bank, for E4.9 billion ($7.7 billion),
and la ter bought JP Morgan itself for $36 billion. JP
Margan Chase is now paying EJIO million to Qmnove
fura half share of the investment-bankingjoint venture
and putting in ESO million of capital and 70 of its staff.
lnt: Why was ]P Morgan Chase so keen to do a deal with
cazenove?
JS: Well,just look at the recent press commems: the media
says that Gazenove is a uniquely wonderful institution
thac displays ali of the virtues of che City of old and
none of its vices, and that its client list is the envy of its
rivals.
lnt: How has tbe de.al been received by those who are
directly concerned?
JS: A spokesperson for JP Morgan says ali of cazenove's
clients are delighted about it. lt is a good de.al fur JP
Morgan, but also for cazenove's shareholders - and
most of those are its employees, who will retain control
of a large part of Cazenove's business. They will also see
the release of another fi.30 mi JI ion of capital from JP
Morgan, with the prospect of a lot more in the future.
ln t. So, what do you thinkJP Morgan's long-term p lans
are?
JS: After five years, JP Morgan will have the right to buy
Cazenove out, and Cazenove will have the right to sell
to the bank at a price they set independently. Though
there are a few penalties involved, this means chat it is
almost certain that the US giant will end up with the
lot.
Listening 3 page 117
A After looking at this from ali sides, 1 think it's pretty
clear that che time has come to expand into the
eastem European markets. Don't you agree?
B 1don't think that's what we should do a1 all l think
it'd be much better to focus on the markets in
southern Europe, where we already have a foothold,
and consolidate our position there.
A Well, all things considered, l'm absolutely convinced
the right tbing to do is to expand in the east.
B Have you looked at the cost? Where will we get the
money from?
A lve already discussed the plan wich our advisers and
they say they can find us the partners we'll need. So
that shouldn't be a problem. 1would just like your
support, that's ali.
B WeU, rm sorry but for me it's no.
A Look, unless you're prepared to change your mind
on this one, l'll just have to go ahead without you on
the team.
2 A This is the situation: we have an investor who wants
to buy into the company, and he's prepared to pay
cash for 30 per cent ofour stocks.
B l'm nol so sure that it would be a good idea to have
another person making the big decisions.
A Well, we need capital to expand, and this guy has
already bdped several other companies to go public
 in the hi-tech sector. We've all worked really hard
together to get this far and this could be our big
break. We're in this together, you know, and it reaUy
would be to our advantagc.
B Yes, l suppose you're right. When can we meet up
witb hm?
3 lt's in ali our interests to take the bank to court-
they should be made to pay us compensation for
our losses.
B Our case is almost impossible to preve, and if we
lose, think of alJ the bad publicity. l'm really against
i t.
l'm sure we could prove it was the bank's fault. They
did make inaccurate predictions about our
performance, and that caused our share price to fati
dramatically.
D Ali things considered, the most sensible thing would
be to talk to our lawyers first and see what they have
to say.
A They may advise another course of action, but you're
right - that should be our first step.
Listening 1 page 122
Notice how the king uses 'we' straightaway: 'We few. we
happy few'. This puts him in thc position of a democratic
leader from the beginning. He too is part of the tearn. It is
very motivating for the team to feel the leader is part of it
and working towards the same goals. 1bey are, as be puts it
so well, a 'band of brothers'. He makes them feel part of an
exclusive club (the 'happy few'). lndeed they are privileged
to be part of this team! They have beco chosen especially,
and others have been excluded - the 'gemlemen in England
now a-bed'. And the people who really invest time and
energy and make sacrifices - 'he to-day that sheds his blood
with me' - will be rewarded. He tells them they wi ll be
remembered as beroes and becomc gentJemen. Now, if you
put that in the context of a manager today motivating, let's
say, his sales leam, you have al! the necessary elements. lt's
like saying: 'OK, guys, we have a difficult mission to
complete but 1 wouldn't ask you if 1 didn't think you could
do it - and there are big bonuses and promotions in it for
us ali if we succeed.'
Listening 2 I' 3ge 125
Oid you get the information about the restructuring
plan? 1 sent it to you yesterday.
B Yeah, 1 got it. Bul it's not going to be easy to get thc
message across. J\nd sorne people are going to be
very unhappy.
1 know that. But they have to understand that this
a ffects ali of us, and this is the only option we bave.
2. Looks lil<e we have still got some serious problems
with delivery. 1 don't know why we never seem to be
able to get the goods to our customers on time.
B Well, one of the main problerns is with the central
warehouse. The automated system just isn't
producing the results we expected.
\ Look. We havc to find a solution, aad fast. Why
don't you take charge of this? ldentify the exact
problem and then find sorne way to fix it.
B Great. 1 already have a pretty good idea of what
needs to be done. r'll get on to it right away.
3 You do realise that your department has failed to
reacb its targets, don't you?
B Yes, 1'111 aware of that. But 1 still think we did as well
as we could under the circumsta11ces.
But this is the third time this has happened. So, look.
l'm going to give you one last chance. OK?
4 \ How many units are you expecting us co sell per
month?
B 1 think that a ten per cent increase for each
salesperson should be about righr.
f. Ten per cent! That's an awfu 1 lot.
B Well, J'm not saying that it will be easy. But r am
offering a two per cent ncrease in commission to
anyone who makes those numbers. 1 think that's
fa ir, isn't it?
Decision page 126
Well, before 1say anything else, 1 wouldjust like to say that
1 agrec with the consultants when they say that tr:aining is
an excellent motivator. And l find the various options they
propase very interesting. lt's difficult to choo e between
them but 1 think it's reaUyirnportaot to solve
comrnunication problems as soon as and whenever they
occur. There is obviously a huge breakdown in
communication here with lhe majority of the staff
dissatisfied with how they are being managed! Therefore. 1
would send the managers on the course offered by the
Future Management ConsuJtancy as soon as possible. On
the othcr hand. the employees wouldn't see the immediate
benefit of this, so l think 1 would use the rest of the budgct
for one-day stress managemenr courses at Key Associatcs or
possibly the hea.lth and titaess courses at Top Health. 111e
fitness courses wou ld be seen to be alife enhancer for
everyone, and staff would feel that their overall well-being
was a cause for concern for the compaoy.
Long term, r think it would be a very good th ing to offer a
fuJI course in stress ma11agement as so many staff members
complain ofstress. Or it migh1 be better to consider
installing gym and training facilities. becausc having a
health and fitness programme for ali staff members is very
important, panicularly in the manufacturing sector - aad it
could climinate a lot of stress in to the bargain!
Listening 1 age 132
<- "~ 1 : As you can see froru the figures, our
market share has beco falJing by about ten per cent
every year over the Jast five years. 1 know that l am
partly to blame - 1 failed to see the need to adjust our
pricing policy in line with the competition. We ali
hoped our customers would continue to pay for
quality.
Consultant: Have you done any customer satisfuction
surveys recently?
f' .D Yes, it really was a revelation : you see. wc have a
policy of excellent customer service in our stores, but
that costs a lot. We aim to make shopping a pleasant
experience but it turns out, and this is the most
Audioscripts 175
 interesting aspect, that people prefer the huge choice
and cheaper goods they find in the hypermarket.
Consultant: can you lell me what you think your options
are now?
MD: Well, we are thinking ofeither sell ing out to the
hypermarket - tbey have made usan offer, you know -
or possibly trying to compete with them. That's where
you come in. We fed we need a consultant to advise us
on the best course of action. What do you think we
should do?
Consultant: 1'11 have to do a full audit before 1 can answer
that but my initial feel ing is: don't sell. Let's look ar the
quality aspect a bit more and possibly even put up
prices! My job is to turn what seems to be a
disadvantage on its head and make it an advantage. lt's
a risk, but we may need to invest in a huge advertising
campaign to attract customers back to the store - but it
often pays off.
Listening 2 page 133
A rve just come from a meeting with the new consultant
and he said that if we were outsourcing to them, we
would have to hav complete confidence.
B What does that mean exactly?
A Well, they need access to every type of information we
have, and he suggested co-operating fully with their
team. So, 1 told him we would.
B So they can tell us how to do our job!
i\ Look, the bottom lin e is the CEO wants us to give them
our full co-operation and 1 recommend not judging the
outcome just yet. And the consultant pointed out that
they may make improvements around here.
B Or ruin us completely with their fees!
\ Look, tbe CEO told us at a meeting last week that he
would be giving promotions on the basis of their
evaluation of each department. What he wants us to do
is work with them, not against them - so let's do it!
Listening 3 page 133
Student A
Production manril!er: fm glad to get a chance to speak to
you before you prepare your final report. 1 promised to
keep team members informed.
Consultant: No problem.
PM So, what have you come up with so far?
Consultant: Weln, the results of the customer satisfaction
survey are pretty bad, rm afraid. There were a lot of
negative comments about delays, high prices and poor
quality. This seemed to suggestthat the production
department just isn't profitable anymore.
PM" So, what are you saying?
Consultant: Well, to be honest, we were thinking of
suggesting outsourcing production, but a little further
research reyealed that your main problem can be
solved by changing suppliers. So, we're going to
recommend changing to more competitive, efficient
and cost-effective suppliers. Do you tbink there will be
any resistance to a change like this?
PM: 1'11 explain the alternative, which is job losses, and
there shouJdn't be a problem!
176 Audioscripts
Student B
Te.am mana(!cr: Hi, Terry, how are you?
Supplier: Fine, thanks.
TM : We have a big arder ro put in this month and it is
pretty urgent.
Supplier: What kind of deadline are we looking at?
TM Two to three weeks maximum.
Supplier: l don't think we could meet that deadline. J
couldmake you a priority but it would mean a bit of a
price increase. You'U have problems finding anyone
elseintbe market with the same quality - it might be
worth your while doing a deal with us on this one.
TM: Look, 1'11 be honest with you, 1'11 have to t1y to fiad
someone else - a price increase won't be accepted in
the present climate. 1 get the feeling our consultants are
going to recommend outsourciog production if we
don't become more cost efficient.
Decision page 134
This is indeed an interesting dilemma. Consultants have a
confidentiality clause in their contracts, but obviously there
is a limit to how much one should take responsibility for.
This case is obviously pre-regulation and the Sarbanes-Oxley
Act. In fact, it reminds me of the situation Sherron Watkins
found berself in at Enron. Of course, she was an employee
of the company and not of their auditors, but she faced a
similar dilemma. She did not contact anyone from outside
the company straightaway. However, she did write an
anonymous memo to the CEO, to inform him that the
company was involved in accounting fraud on a large scale.
He later said that he wasn't aware of any irregularities
before receiving the letter. She then met faceto face with
him, andan interna! inquiry was opened. Her daims were
dismissed but we know now that Enron was getting deeper
and deeper into debt. She finally made the decision 10 go to
the regulators witb her story.
Her critics say she spoke out only when she was sure the
company was going out ofbusiness and that she fust sold
off her stock options worth $17,000. This was minimal
compared to other executives. However, 1 think she did
achieve something, as sbe said herself: as a result, the 2002
Sarbanes-Oxley Act requires CEOs and CFOs to cenify that
fi nancia! accounts are true. lf they're found to be lying, they
fa.ce up to 20 years in gaol. Monetary fines don't do it: if
you've made $100 million and you're fined $25 mili ion,
you're still 'Very rich. But the idea of going to gaol scares
these guys to death.
 ISBN 0-582 - 84809-1

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