PART ONE
Questions 1 - 7
• Look at the Statements below and the article on the opposite page about a cellphone Service
launched by a Malaysian Company called PTG.
• Which section (A, B, C or D) does each statement 1-7 refer to?
• For each statement 1-7, mark one letter (A, B, C or D) on your answer sheet.
• You will need to use some of these letters more than once.
l that the business was getting better every day.
Example:
0 It was thought that PTG only survived.by becoming the cheapest operator.
PTG was considered to be over-confident in the innovative nature of its product.
2 PTG forecast it would come close to achieving its sales objectives.
3 PTG extended the number of its target markets.
4 PTG increased suppües of its cellphones to meet its sales forecasts.
5 Customers made less use than expected of the special features of PTG's new cellphone.
6 PTG's capital Investment was evidence of the company's confidence in its new enterprise.
7 Experts feit the area over which PTG cellphones could be used was comparatively
restricted.
© UCLES 2010
The launch of PTG's new cellphone Service
When Ali Osman, chairman of the Malaysian technology concern PTG, decided to go into the
cellphone business, he didn't cut corners. In the first three years of the venture, PTG, with
considerable faith in its products, laid out $16 billion on new technology. Then, even though the
service attracted only a million customers in the countries where it was first launched, it pushed
forward even more aggressively by opening networks in four new countries, stating confidently
PTG's new cellphone service didn't take off äs quickly in Europe äs hoped. Nonetheless,
thousands of new handsets were ordered for the network, to prepare for the surge in demand the
Company was expecting in the second half of the year. Kim Li Leen, deputy chairman at PTG,
insisted that, after a renewed marketing offensive, the Company would only just fall short of
meeting its earlier target of acquiring 1.5 million customers in Europe by the end of the year. And
he was confident that the Operation would break even in two more years.
Specialists in the field were not optimistic about the company's prospects. Many said that in spite
of the Claims PTG made about its cutting-edge product, the new technology still looked äs if it
was going to be less reliable than that of competitors. Moreover, despite the heavy financial
investment, they believed the network coverage wasn't anywhere near äs extensive äs that used
by other setups. Success began to look increasingly unlikely for PTG.
The strength of PTG's new product was supposed to be the high-speed delivery of data Services.
Yet analysts pointed out that relatively few people made extensive use of their phones' data
capabilities. That forced PTG to drop its phone charges from about 24 cents per minute to 8
cents, thus undercutting its rivals. In fact, according to experts in the mobile sector, this was its
sole means of staying in the contest. Nevertheless, cash-rich PTG remained confident it would
survive its initial problems and become a serious competitor in the telecom sector. Ultimately, it
was proved right.
©UCLES 2010
PART TWO
Questions 8-12
• Read the article below about the future of the modern Company.
• Choose the best sentence from the opposite page to fill each of the gaps.
« For each gap 8-12, mark one letter (A - G) on your answer sheet.
• Do not use any letter more than once.
• There is an example at the beginning, (0).
THE FUTURE OF THE MODERN COMPANY
These days an extraordinary number of
business books discuss possible futures for the
modern Company. (0) G However, one
way to find out where today's companies are
heading is to look at the environment in which
they will have to operate, an environment
which is dominated by one thing: choice.
Rix Cathie, an economist, points out that we
are entering a period where possibilities are
almost limitless and it is easy for consumers to
switch to something better. This has not
always been the case. (8) The
industrialist Henry Ford famously said that you
could have a car in any colour so long äs it
was black. Modern production Systems, on the
l other hand, usually both Iower costs and
increase choice.
It is hard to argue that today's climate of
increased competition favours one sort of
Company structure over others. However, one
of the world's most profitable companies has
been a consumer goods multinational that is
spread over a whole ränge of Industries.
(9) This conglomerate's success is
due to the fact that it is responsive and very
well run.
Even though a more competitive environment
j may not determine the structure of firms, it is
| likely to make some characteristics more
| valuable. Two that stand out are leanness and
flexibility. Firms will continue to achieve
leanness by removing layers of middle
management, and o improvements in
communication technologies will improve the
Example:
A B C D E F G
These factors have shown that E It has acquired any number of
companies that adapt appropriately unconnected businesses, many of which,
face a bright future, for example the manufacture of iight bulbs,
are not seen äs great generators of cash.
In the early days of mass production, Increasingly, it stems from the trust that
costs were kept Iow at the expense of the Company has established with its
choice. customers.
ability of Supervisors to manage effectively.
(10) Rather than Orders being sent More tasks will be assigned to teams Almost any fate for corporations seems
down a hierarchy, managing in new organisations whose members will have substantial likely except that of being bland and
will be about weaving networks together. As for discretion over what they do and how. boring.
flexibility, managers will need to be able to
expand and contract the workforce to deal with
uncertain times. In the flrst half of the 20m Century,
managers tried to take any element of
With competition becoming fiercer, companies creativity out of business by turning
will have to think more about their reputation. people into machines.
They will have to look more to brands and Images
to remove the confusion that too much choice
can bring about. Today, the real economic value
of a Corporation tends not so much to come from
the assets it owns. (11) One of the
central challenges for firms in the future will be
maintaining the quality of their name while at the
same time subcontracting much of their
production to other companies.
A final characteristic that will make a difference is
talent. The human side of management is set to
become increasingly important. (12)
Today, however, what sets executives apart is
their ability to innovate. It has been argued that
the major challenge for the modern Company will
be the war for talent: the struggle to hire and
retain the best people.
©UCLES 2010 © UCLES 2010
PART THREE
Qusstions 13- 18
• Read the article below about the importance of ongoing training and the questions on the opposite
page.
• For eaoh question 13-18, mark one letter (A, B, C or D) on your answer sheet for the answer you
choose.
Training
In hard times the training budget is often the
first thing to go, äs many companies regard it
äs expendable. But this is almost certainly a
bad move. A properly developed training policy
can, in fact, save a Company money, keep its
skilled workers happy and leave it in better
shape after the hard times end. There are no
speoific rules concerning the datails of a
training programme but wnat is vital is that a
training policy must be totally aligned with an
organisation's business strategy. A policy is a
commitment on behalf of an Organisation - it is
similar to a mission statement.
Setting up a training policy should not be very
difficult if it is broken down into distinct areas
such äs goals, necessary skills, procsdures
and evaluation. In recent years there has been
an increase in the number of companies that
arrange training for staff and the number of
days dedicated to training. There are, in
addition, more and more human resources and
training managers. Even directors are now
actively encouraging better staff training
policies.
Deciding on appropriate training will vary from
Company to Company, but one thing that is
necessary in all training is clear
communication. Line managers must be
heavily involved in deciding who should be
sent on training courses. Senior management
may produce policies, but these will not work
without the involvement of line managers äs
they are aware of the strengths and
weaknesses of the employees who report to
them.
Many people feel a generation gap exists
where training is concerned. Those who left
full-time education quite recently have grown up
realising that life-long training and education will
be part of their working lives. Those from an older
generation who left full-time education before the
1990s never expected to have to go back to
studying. They may even see training äs a waste
of time if its relevance is not made clear. Many of
them have done the same Job in the same
Company for the whole of their working lives.
Nowadays, younger employees know that the
idea of a Job for life has gone for good -
something which few of them regret.
Employees increasingly feel that for any training
they have undertaken it is important for them to
receive some form of qualification that is widely
recognised. They also want to know that, if they
put in hard work over what may be a period of
years, they will be doing something worthwhile.
Above all they want to gain 'portable' skills which
they can take with them if their career path leads
them elsewhere.
So what happens if a Company invests time and
money in training only for an employee to move
to a rival firm? The possibility of this happening
should not deter any Company from deveioping a
training policy. In any case, training modules
sometimes take three to four years to complete if
done on a part-time basis. Companies will,
therefore, be getting good value äs the trainees
will be applying what they have learnt to their
work whilst actually training. Cautious firms,
though, can always insert a clause in an
employment contract to require employees to pay
back a Proportion of the training fees if they leave
the Company within a certain time frame.
©UCLES2010
13 What point is made about training in the first paragraph?
A It sometimes offers poor value for money.
B It should be linked to a company's objectives.
C It is most important during difficult periods.
D It should be mentioned in a company's mission statement.
14 What aspect of training has changed in recent years?
A Training is now concentrated on a different ränge of needs.
B The Status of managers responsible for training has improved.
C Board members are recognising the value of training.
D Some companies have begun organising training on an annual basis.
15 Line managers should take part in the selection of people for training because they
A benefit from finding out more about their staff.
B receive regulär reports on their staff.
C are able to assess the potential of their staff.
D understand the value of training for their staff.
16 According to the fourth paragraph, what is the attitude of younger employees to training?
A They believe it is not taken seriously by companies.
B They wish it were more relevant to their work.
C They hope it will lead to a Job for life.
D They expect it to continue throughout their lives.
17 Nowadays employees who do training courses expect
A to acquire Knowledge they will benefit from.
B to be rewarded appropriately for their commitment.
C to be able to assess their own skills objectively.
D to learn which skills are currently in demand within other companies.
18 The writer states that employees undertaking training on a part-time basis will
A develop greater organisational and motivational skills.
B be able to make immediate use of what they are studying.
C be less likely to leave their Job at the end of their training.
D have to share the costs of the training with the Company.
©UCLES2010
PART FOUR
Example:
Questions 19-33
A whole B total C complete D füll
• Read the article below about how oompanies can manage Orders and stock online.
• Choose the best word to fill each gap from A, B, C or D on the opposite page. A B C D
• For each question 19-33, mark one letter (A, B, C or D) on your answer sheet. 0 r=j ^^3 «**»
• There is an example at the beginning, (0).

9 A detecting B seeking C tracking D following

EVERY LINK IN THE SUPPLY CHAIN IS CRITICAL
0 A inspecting B comparing C testing D checking
How wonderful it would be not to worry about chasing customer invoices, but still get paid in
(0) Q. and on time. This is perfectly possible by simply (19) an invoice with an B Position
1 A zone C location D territory
online customer accounts System and (20) when it's going to be paid. Such supply chain
management Systems are traditionally the (21) of multinationais with big IT budgets, but 2 A encouraging B promoting C supporting D advancing
rising expectations on the part of customers are (22) smaller businesses to buy into both
the concept and the System. This is (23) evident in manufacturing, financial Services, 3 A particulariy B strongly C considerably D intensely
telecommunications and the media.
4 A mixed B associated C integrated D united

Ken Yamato, ehairman of Logistics Inc., says this is a difficult culture change for many small
5 A understanding B thought C intelligence D conclusion
businesses. When, for example, the multinational Unilever (24) its Information and supply
chains to get a better (25) of what was going on with its Orders, one small supplier feit it 6 A commanding B demanding C claiming D directing
was (26) too much, But Yamato believes it is just äs important for smaller companies to
invest in IT Systems to manage the supply chain äs it is for larger ones, and that many 7 A Chance B risk C gamble D speculate
(27) losing customers if they do not have the capability to monitor Orders and stock
(28) and manage production and purchasing. The online customer accounts System 8 A levels B grades C amounts D sums
offers a competitive edge, he says.
9 A leading B main C central D key

Mark Kinsler of business Software Company ITX says, 'Companies have to supply "just in time" and
0 A secure B confirm C ensure D achieve
have more collaborative relationships with their customers.' For him, the Interactive nature of an
online System brings (29) beneflts, especially now that companies use more third-party 1 A make B operate C perform D dispatch
suppliers. 'Companies get a better idea of what is happening and can (30) that different
links in the supply chain (31) certain tasks. This would (32) seif biliing and, 2 A count B nclude C consist D enclose
when the customer has (33) the product, automatically producing the invoice for the third-
party supplier.' 3 A allowed B awarded C permitted D approved

©UCLES2010 © UCLES 2010

PART FIVE

Questions 34 - 45 BLANK PAGE

• Read the article below about encouraging repeat business.

• In most of the lines 34 - 45 there is one extra word. It is either grammatically incorrect or does not
fit in with the meaning of the text, Some lines, however, are correct.
• If a line is correct, write CORRECT on your answer sheet.
• If there is an extra word in the line, write the extra word in CAPITAL LETTERS on your answer
sheet.
• The exercise begins with two examples, (0) and (00).

000 U DDDD
0o [C\\O\ R E @0nn
Appealing to Repeat Customers
0 When was the last time your Company communicated it with your current

00 customers via telephone or direct mail? Too many retailers concentrate on how

34 to seek new customers and therefore do not only pay enough attention to what

35 they can do to gain loyalty and support from their repeat customers. There

36 are several reasons why it is important to target at current customers äs well

37 äs new ones. It is more efficient to serve repeat customers other than it is to promote

38 heavily to attract new ones. Often while new customers are attracted by a special

39 sale and buy goods that have a Iow mark-up for the retailer. When the sale event

40 has finished, however, they switch them to another störe. Repeat customers, on the

41 other hand, are much more likely to buy a füll ränge of merchandise, rather

42 than with discounted iterns. This means that the retailer can achieve its profit margins.

l 43 Loyal customers are, after all, the backbone of every one business. In today's

j 44 highly competitive environment, and these shoppers cannot be ignored, or they may

45 be won over by competitors. So try for organizing a sale aimed at current customers

and see what happens.

©UCLES2010 © UCLES 2010

 Part 1 Part 2

The multinational Company you work for is arranging its annual Conference for Human Resources The international retail Company you work for is concerned about the Performance of its New York störe.
managers. Your line manager has asked you to write a proposal making recommendations for the störe's future.

Write an email to the company's Human Resources managers: Look at the information below, on which you have already made some handwritten notes.

• informing them of the date of the Conference Then, using all your handwritten notes, write your proposal.

• explaining why it is important for them to attend Write 120-140 words.

• saying what they must do if they would like to make a presentation. Write on the answer sheet.

Write 40 - 50 words.

Write on the answer sheet.

The New York störe is in a very good location, but if its

Performance doesn't improve, we may have to close it.-*
HR Annual Conference

Please make some recommendations to improve these

aspects of performance:

• high cost of running störe

• unhappy staff
• falling sales

©UCLES2010 © UCLES 2010

PART ONE Conversation Two
Questions 1-12 (Questions 5 - 8 )

• You will hear three telephone conversations or messages.

• Look at the notes below.
• Write one or two words or a number in the numberetfspaces on the notes or forms below,
• You will hear a woman phoning a colleague to give him feedback on a recent meeting.
• You will hear each recording twics.

Conversation One
Notes on Project Update Meeting
(Questions 1-4)
A decision was tskert to (5) the Software Upgrade.
• Look at the notes below.

• You will hear a woman calling an IT Company to place an order, There may be some (6) in the nearfuture.

But more (7) staff are goirig to be recruited.

IT SOLUTIONS Teams have to provide (8) to demonstrate what

they have accoifiplished to date.
Customer: Wells and Sons

Product they would like to order. (1)

Key feature: must be able to Aea\h (2)

Wells and Sons produce (3)

They would also like (4) after we Inetall everything.

©UCLES2010 ' UCLES 2010

Conversation Three PART TWO
(Questions 9 -12) Questions 13-22

• Look at the notes below.

Section One
• You will hear a man leaving a message for a oolleague about a Potential supplier he has just visited.
(Questions 13-17)

• You will hear five short recordings. Five Speakers are explaining how their Company tried to cut costs.
Karl's comments on possible new supplier - Remo Machinery • For each recording, decide which cost-cutting measure the speaker's Company chose.
• Write one Istter (A - H) next to the number of the recording.
He was impressed by the s\ze of their (9) • Do not use any letter more than once.
You will hear the five recordings twice.
He was pleaeed that (10) ............................................................ \e free.
A increasing productivity
'd need to negotiate on the (11) .................................................... so we avo\d
problems. 13 B automating a procedure

14 C freezing staff salaries

We should request more Information about their (12) ........................................ before
the n ext meeting. 15 D passing on some costs to customers

16 E reducing product quality

17 F outsourcing a pari of the Operation

G cutting back on staff training

H postponing an advertising campaign

Section Two
(Questions 18-22)

• You will hear another five recordings. Five consultants are giving advice to sales representatives on how to
achieve success in iheir work.
• For each recording, decide what advice the Speaker gives.
• Write one letter (A - H) next to the number of the recording.
• Do not use any letter more than once.
• You will hear the five recordings twice.

A Be flexible about appointment times.

18 B Offer your customers attractive incentives.

19 C Negotiate reasonable targets with your boss.

20 D Update individual customer records regularly.

21 E Stay on good terms with your colleagues.

22 F Attend sales training sessions whenever possible.

G Keep in regulär touch with your clients.

H Be responsive to customer feedback.

©UCLES2010 ©UCLES2010
PART THREE
28 According to Osborne, why did Fordham overtake other supermarket chains?
Questions 23 - 30

• You will hear Ray Osborne, the Chief Executive of a supermarket chain called Fordham, talking A They decided to build a number of superstores outside city centres.
about his career.
B They committed to including a small selection of quality food items.
« For each question 23 - 30, mark one letter (A, B or C) for the correct answer. C They dared to break away from the model created by other companies.
• You will hear the recording twice.
29 How does Osborne see his role äs CEO of Fordham?
23 Ray Osborne admits that he is upset when the Company
A to represent the Company in the public arena
A does not meet its Performance targets. B to support the development of the Company
B falls to treat someone considerately. C to pick the right people to manage the Company
C undervalues its core business aims.
30 What would Osborne like to do in the future?
24 How does Osborne explain his rise to Chief Executive?
A open branches of Fordham overseas
A He was ambitious from the beginning of his career. B make Fordham even more successful
B There were chances for people who requested promotion. C start a different Company
C Other people believed in his ability.

25 Why does Osborne support the concept of staff training?

You now have 10 minutes to transfer your answers to your Answer Sheet.
A It leads to a more streamlined Organisation.
B It cuts down on staff wastage and recruitment costs.
C It creates a more motivated labour force.

26 Osborne spends time working äs an assistant in different Stores

A to provide a good model for his senior staff to follow.

B to gain a better understanding of how certain tasks are done.
C to show the business world that he is a 'hands on' boss.

27 According to Osborne, what is the Key to running a good retail business?

A Consulting customers regularly

B supervising staff closely
C following the latest management ideas

© UCLES 2010 © UCLES 2010