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Key Unit1

2. Vocab
1. C 2. E 3. B 4. A 5. F 6. G 7. D
3.
A. functional structure C. line structure
B. matrix structure D. staff position
Reading comprehension
1. The only adequate summary is the second. The first stress the disadvantages of
hierarchies much more strongly than the text, and disregards the criticisms of
matrix management and decentralization. The third is simply misleading: matrix
management and teams are designed to facilitate communication among
functional departments rather than autonomous divisions.
2. Discussion
1, 4 and 11 would logically satisfy production managers, although 11 should also
satisfy other departments.
1, 3, 6, 7, and 9 would logically be the demands of marketing managers.
5, 8, 10, and 12 would logically keep finance managers happy.
Ex 1.
1. f 2. e 3. h 4. d 5. a 6. g 7. b 8. c 9. I 10. j
Ex 2
1. human resources 2. customer service 3. quality control
4. research and development 5. public relations 6. project management
7. administration 8. billing 9. production
10. legal 11. shipping 12. finance
13. marketing 14. accounts 15. purchasing
16. procurement
Ex 3
Market research/ cost centre/ earnings growth/ management hierarchy/ customer needs/
product portfolio/ core business/ distribution channel/ mission statement/ market share/
shareholder value/ brand loyalty
Ex 4
1. market research 6. cost centre
2. core business 7. earnings growth
3. share holder value 8. management hierarchy
4. product portfolio 9. mission statement
5. brand loyalty 10. distribution channel
Ex 5
1. check 2. coordinate 3. assign 4. implement 5. control
6. ensure 7. adapt 8. monitor 9. evaluate 10. determine
Ex 6
2

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Key – Unit 2
Reading comprehension tasks
1. ‘Glocalization’ means operating all over the world while taking account of local
cultural habits, beliefs and principles in each country or market.
2. Japanese companies have a policy of promotion by seniority, so a 50-year-old manager
should automatically be granted much more status and respect than a 30-year-old one.
3. The Italian salesman did not want to earn more (i.e. show himself to be a better
salesman) than his colleagues, or earn as much as his boss. The Singaporean and
Indonesian managers did not approve of a system that might cause salesmen to encourage
customers to buy products they didn’t need.
4. Universalists believe that rules are extremely important, and distrust particularlists
because they break rules to help their friends, while particularlists believe that personal
relationships should take precedence, and distrust universalists because they won’t even
help a friend.
Key to Ex. 1:
1. Since we have just bought the Parkland guide, we can now find out what Europeans
think of each other.
2. Furious with his employees for turning up late each morning, he decided to have a
serious talk with them.
3. I have two Swiss people staying at my house, neither of whom I consider to be money-
minded, or excessively serious.
4. Although some Europeans consider the Italians to be dishonest, I found them
completely trustworthy when I recently visited Italy.
5. Besides having faults, the British have qualities, such as an excellent sense of humor,
for which they are famous throughout the world.
6. While working for a multinational company in Holland, I learned to admire the Dutch
for their good nature and tolerance.
7. In generalizing about nationalities we often show prejudices, the origins of which are
obscure.
8. In trying to pick nationalities for each post, we were obviously unfair to those we
omitted while we were probably generous to some we selected.
Ex.2:
1. for ; for 2. in; in 3. for; to 4. of; to 5. against/ towards 6. of 7. at
8. of; about 9. for 10. to 11. of 12. with/about/by

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UNIT 3 - HUMAN RESOURCES KEY

RECRUITMENT
Starter ( suggested order)
1 i 2a 3c 4d 5g 6e 7f 8h 9b 10j
1. Job description ( Job title, main purpose of job, reporting relationship, location
of workplace, key duties/ responsibilities)
2. Personal specification ( desireable skills, practical requirements, previous
experience, qualifications/ training, skills and qualities needed for job, personal
style/ behaviour)

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UNIT 4 – MOTIVATION KEY
Exercise 1:
1K 2I 3F 4E 5J 6H 7B 8C 9D 10G 11A

Exercise 2:
A/ 1 Drive 2 Reach 3 Outcomes 4 Behaves 5 Willingness 6 Effort
B/ 1 Physiolosical 2 Safety needs 3 Social needs
4 Esteem needs 5Self- actualization
Exercise 3:
1 F 2T 3T 4F 5F 6T 7F 8T

BENEFITS AND REWARDS - handout


1. F 2H 3K 4B 5J 6C 7L 8A 9D 10G 11I 12E

WORKING CONDITIONS - handout


1. holiday 6. colleagues 11. manual

2. vacation 7. contracts 12. sick pay

3. leave 8. security 13. morale

4. flexitime 9. duties 14. absenteeism

5. maternity 10. workforce 15. satisfaction

RENUMERATION - handout
1. deducted 5. executive directors 9. salespeople

2. cost-of-living 6. salary 10. earning potential


allowance
7. commission 11. cash
3. increments
8. incentive 12. fringe benefit
4. evaluate

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Key Unit 5
Reading comprehension tasks:
1. The 3rd summary is the most accurate and complete

The 2nd summary fails to mention market research and both 1st
and 2nd contain errors. They both neglect the continued
importance of selling, and the existence of competitors.

The 1st summary wrongly states that marketers have to change a


product, its distribution, the way it is promoted and its price. In
fact they may change one or more of these elements as
neccesary.

2. C

Exercises:
Exercise 1:
1a 2i 3f 4h 5d 6j 7e 8b 9c 10g
Exercise 2:
Product: after sales service, brand name, characteristics, guarantee, line-filling, optional
feature, packaging, quality, size, style
Price: cash discount, credit term, going-rate, list price, market penetration, market
skimming, payment period, prestige pricing, production cost, quantity discount
Place: distribution channels, franchising, inventory, market coverage, point of sale,
retailing, transportation, vending machines, warehousing, wholesaling
Promotion: advertising, commercials, free sample, mailings, media plan, personal selling,
posters, public relations, publicity, sponsorship
Exercise 3:
1f 2h 3a 4c 5e 6g 7d 8b
Exercise 4
i5 j6 k4 l1 m8 n6 o3 p7
Exercise 5
1. Making a loss 2 early adopter 3 similar offering 4 advertising
budget 5 differentiate products 6 reaches saturation 7
consumer taste 8 withdrawn from the market

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Unit 6
Pricing – KEY
Nothing you buy is priced too high.

Before you read


Discuss these questions.
1 What is the difference between price and pricing?
Price: The cost of goods or services to the customer
Pricing:
2 Give a situation in which predatory pricing is applied.

Predators:
1. an animal that kills and eats other animals
2. someone who tries to use another person's weakness to get advantages:

Predatory pricing: In business and economics, predatory pricing is the practice


of selling a product or service at a very low price, intending to drive competitors
out of the market, or create barriers to entry for potential new competitors. If
competitors or potential competitors cannot sustain equal or lower prices without
losing money, they go out of business or choose not to enter the business. The
predatory merchant then has fewer competitors or is even a de facto monopoly,
and hypothetically could then raise prices above what the market would otherwise
bear (wikipedia)

Companies’ pricing decisions depend on one or more of three basic factors: production
and distribution costs, the level of demand, and the prices (or probable prices) of current
and potential competitors. Companies also consider their overall objectives and their
consequent profit or sales targets, such as seeking maximum revenue, or maximum
market share, etc. Price strategy must also consider market positioning; quality products
generally require “prestige pricing” and will probably not sell if their price is thought to
be too low.
Obviously, firms with excess production capacity, a large inventory, or a falling market
share, tend to cut prices. Firms experiencing cost inflation, or in urgent need of cash, tend
to raise prices. A company faced with demand that exceeds its possibility to supply is
also likely to raise its prices.
When sales respond directly to price variations, demand is said to be elastic. If sales
remain stable after a change in price, demand is inelastic. Although it is and elementary
law of economics that the lower the price, the greater the sales, there are numerous
exceptions. For example, price cuts can have unpredictable psychological effects: buyers
may believe that the product is faulty or of lower quality, or will soon be replaced, or that

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the firm is going bankrupt, etc. Similarly, price rises convince some customers that
product must be of high quality, or will soon become very hard to get hold of, and so on!
A psychological effect that many retailers count on is that a potential customer seeing a
price of $499 registers the $400 price range rather than the $500. This technique is known
as “odd pricing”.
Obviously most customers consider elements other than price when buying something:
the “total cost” of a product can include operating and servicing costs, and so on. Since
price is only one element of the marketing mix, a company can respond to a competitor’s
price cut by modifying other elements: improving its product, service, communications,
etc. Reciprocal price cuts may only lead to a price war, good for customers but disastrous
for producers who merely end up losing money.
Whatever pricing strategies a marketing department selects, a product’s selling price
generally represents its total cost (unit cost plus over heads) plus profit or ‘risk reward’.
Overheads are the various expenses of operating a plant that cannot be charged to any
one product, process or department, which have to be added to prime cost or direct cost
which covers material and labor. Cost accountants have to decide how to allocate or
assign fixed and variable costs to individual products, processes or departments.
Micro economists argue that in a fully competitive industry, price equals marginal cost
equals minimum average costs equals breakeven point (including a competitive return on
capital), and that a company’s maximum-profit equilibrium is where extra costs are
balanced by extra revenue, in other words, where the marginal cost curve intersects the
marginal revenue curve. In reality, many companies have little idea what optimal price or
production volume is, while most micro economists are happier with their models than
actually talking to production managers, marketers or cost accountants!
Reading comprehension tasks
1. Understanding main points
Which of these three summaries most fully and accurately expresses the main ideas of
the text on pricing?

First summary
The prices companies charge for their products depend on many factors: their costs, the
level of demand, competitors’ prices, financial targets, marketing strategies, market
positioning, production capacity, inventory size, inflation, and so on. Yet pricing
strategies are often unsuccessfully because of the unpredictable psychological reactions
of customers. Consequently companies often concentrate instead on other elements of
the marketing mix: production improvement, service, communications, etc. Even so,
companies have to make sure they cover direct costs and overheads. This usually results
in a price that equals both marginal cost and breakeven points.
The most important factors in pricing decisions are production costs (including
overheads),
Second summary:the level of accurate
most demand, and
and complete.
the going The
market
1st isprice. Yet broader
incomplete, company
and the 2nd
objectives,
rd
and profit
and 3 sentences areor sales targets,
misleading. Theand
3 market
rd
positioning,
sentence of the third arepara
also is
important.
totally There
are also
false. lots of circumstances that might cause companies to change their prices: excess
production capacity, large inventories, or a falling market share on the one hand, or cost
inflation, an urgent need of cash, or demand that exceeds supply, on the other. Yet
perfectly logical decisions regarding prices thought to be elastic can have unpredictable
psychological effects. It is also clear that customers are influenced by elements other 10
than price, so companies can equally modify other elements of the marketing mix. In a
competitive industry, price is generally not much greater than marginal cost and
breakeven point.
Third summary
Companies’ pricing decisions generally depend on factors such as production and distribution
costs, consumer demand, and competitors’ prices. Yet a company’s overall objectives and profit
or sales targets are also important. Of course there are situations in which a company will raise
its prices (e.g. excess production capacity, a large inventory, or a falling market share) or lower
them (e.g. excessive demand, cost inflation, a cash shortage). In general, the lower the price, the
greater the sales. Companies take account of psychological effects and use techniques such as
odd pricing. Companies can also change other elements of the marketing mix, especially if this
allows them to avoid a damaging price war. Whatever happens, companies generally have to
cover a product’s total cost and make a profit. This is difficult in a competitive industry, as here
price will only equal breakeven point.

2. Understanding details
Decide whether the following statements are True or False. Tick the correct answers.
Statements True False
1. There are three basic factors potentially involved in all pricing decisions V
2. When pricing a product, companies have to think of potential as well as V
existing competitors.
3. You are unlikely to sell high quality products at a low price. V
4. When demand exceeds supply, a company nearly always increases its V
price.
5. A company faced with rising costs has to increase its prices. V
6. A company can only change a price if it is “inelastic”. V
7. Pricing is often strongly influenced by psychological factors. V
8. A company can respond to competitors’ price cuts by changing different V
elements of the marketing mix.
9. Prices generally take into account both direct and indirect costs. V
10. In theory, a product’s price should equal its marginal cost and the V
company’s breakeven point.
9. Cost Accountant
3. Complete the following word partnerships from 10.the
Variable
text: Costs.
1. Breakeven Point
2. Production capacity Vocabulary tasks
3. Distribution costs.
4. Profit/ Sales targets
5. Market positioning
6. Market share
7. Odd Pricing
8. Prime Cost

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Exercise 1: All the words below can be combined with price in a two- word partnership:
e.g. price war, retail price. Add the word price either before or after each of the words
below:
…………… market price
1. …price control ……………………. 14. ………………...
…………… cost price …………… price mechanism
2. …………………. 15. …………
3. ……Price cut/ Cut-price ……… 16. …………… minimum price …………
………Price discrimination
4. …………….. 17. …………… price range ……………
………Price elasticity …………… recommended price
5. …………………... 18. ……….
…………… price reduction
6. …exercise price ……………………. 19. ………….
…………… Price fixing …………… retail price
7. ………………… 20. …………………
…………… Price freeze …………… price rise
8. ……………… 21. ……………………
…………… going price …………… selling price
9. ……………….. 22. ……………...
10
…………… price sensitivity
. …………… historical price …………... 23. ……………
11
…………… price index …………… strike price
. ………………… 24. ……………….
12
…………… price war
. ………price list/ list price ……………… 25. ……………………
13
…………… price maintenance …………… wholesale price
. ………… 26. ………..........

Exercise 2: Match up the remarks below with the names of different pricing
strategies in the box:

1. market penetration pricing = G


2. market skimming = H
3. current –revenue pricing = A
4. loss-leader pricing = B
5. mark-up or cost-plus pricing = D
6. going-rate pricing = C
7. demand- deferential pricing ( or price discrimination) = F
8. perceived-value pricing = E
a. Firstly we need cash, and secondly, we don’t think the product will last very
long – it’s really just a gimmick – so we’re trying to maximize our sales
income now.
b. Like all supermarkets, we offer half a dozen or more different items at a really
low price each week. We lose on those, but customers come in and buy lots of
other stuff as well.
c. Since our product is indistinguishable from those of all our competitors, and
we’ve only got a tiny park of the market, we charge the same as the rest of
them.
d. They just worked out the unit cost and added a percentage, without even
considering demand elasticity or anything like that.
e. We charge an extremely high price because we know people will pay it. Our
brand name is so famous for quality – we can make huge profits.
f. We charge lots of different prices for what is really almost the same thing. Of
course, in First Class you get better food, and in Economy there’s hardly any
legroom, but it’s still a flight from A to B
g. We decided to launch the product at a very low price, almost at direct cost,
hoping to get a big market share. Then we can make profits later because of
economies of scale.
h. We’re going to charge a really high price to start with. We can always lower it
later to reach price-elastic market segments.

1 G 2 H 3 A 4 B 5 D 6 C 7 F 8 E

Exercise 3: Which of these two-word nouns refers to?


1. A basic price before discounts and special offers are made? List price
2. Aggressive competition between rival? Price war
3. A price at which retailers buy goods? Wholesale price
4. A price recorded in a company’s accounts? Historical price
5. The government’s measure of inflation? Price index
6. The price at which a producer makes no profit? Cost price
7. The relationship between a product’s price and the quantity bought? Price
elasticity
Which two of these two- word nouns refer to
8. A price-limit imposed by government? Price control + Price freeze
9. Arrangements between competitors not to lower prices? Price fixing/
maintenance
10. The price of options? Exercise/ Strike price

Exercise 4: Complete the text with suitable words. The first letters are provided.
The price of a product should logically cover its production costs, including a proportion
of the company’s fixed costs or overheads such as rent and interest payments, and leave
a small profit. But prices are also influenced by the level of demand, the prices of
substitute products, and the prices charged by competitors.
High quality products made with expensive components and requiring a lot of
craftsmanship are obviously expensive. They also generally require “prestige pricing” as
the consumers in their target market would not buy them if they thought the price was
too low. The markets for most other goods are generally price sensitive, i.e. the lower
price, the greater the sales.
But for new products for which there is a sufficiently high demand, companies may
choose to set the highest possible price so as to maximize profits. This is known as
market- skimming. The price can later be reduced in order to reach further market
segments. The opposite strategy is market-penetration, which means setting as low a
price as possible so as to increase sales volume and market share, leading to lower unit
production and distribution costs and higher long-run profit. The low price will also
discourage competitors.
Companies with overcapacity, intensive competition, a large inventory, or a declining
market are likely to cut the prices of established products. They are more concerned with
keeping the plant going and staying in business than making a current profit. On the
contrary, firms facing rising costs, or in need of cash in the short term, tend to raise
prices. A company faced with demand that exceeds supply is also likely to raise its
prices, like a monopolist.
Firms in perfectly competitive markets, or homogeneous-product markets, or small firms
in an industry with a strong market leader, are likely to use going-rate pricing, i.e. they
will charge more or less the same price as everyone else, rather than set a price based on
estimates of costs or projected demand.
But of course, all prices can be adapted. Most companies offer cash discounts to
customers who pay immediately, and quantity discounts to buyers of large volumes.
Many products and services are sold at a lower price during an off-season. Retailers often
offer some loss- leader prices: they cut the prices of selected products to cost price or
below in order to attract customers who also buy other goods. Companies are also often
obliged to react to price changes by competitors. They might try to avoid a price war by
modifying other elements of the marketing mix. Similarly, they have to anticipate
competitors’ reactions if they change their own prices.
Now translate the highlighted expressions in the text into Vietnamese.
Terms
Terms Vietnamese Explanations + Examples
equivalents
Market Chiến lược định giá Định giá thấp đê chiếm lĩnh thị trường
penetration thâm nhâm thị trường đáng kể.
pricing
market skimming Chíến lược định giá hớt Là việc định giá cao trong ngắn hạn khi
váng tung một sản phẩm mới (độc đáo, chưa
từng có) vào thị trường nhằm khai thác
lợi thế của người đi đầu. Khi thị trường
có thêm nhiều sản phẩm cùng loại, DN
phải định giá sản phẩm thấp hơn.
Current - revenue Chiến lượng định giá Maximizing current (short-term) sales
pricing nhằm tối đa doanh thu revenue
trong ngắn hạn.

Loss-leader Chính sách bán hạ giá Khi các doanh nghiệp có hàng hóa đa
pricing trước dạng chào bán một phần trong loạt sản
phẩm của họ ở mức giá thấp hơn chi phí,
và tin rằng việc náy sẽ thúc đẩy việc tiêu
thụ các sản phẩm có chện lệch lợi nhuận
cao hơn.
mark-up/ Chính sách định giá Công thức giản lược: Đơn giá sản phẩm
dựa trên tổng chi phí = chi phí trực tiếp sản xuất ra sản phẩm
cost-plus pricing
+ chi phí gián tiếp phân bổ cho sản phẩm
+ một mức lãi suất nhất định.
Định giá theo kiểu
Mark-up: mức Cộng thêm một mức biên lãi chuẩn vào
cộng thêm vào phí tổn
biên lãi giá thành sản phẩm
going-rate pricing Chiến lược định giá Doanh nghiệp dựa trên mức giá chung
theo mức hiện hành trên thị trường để định giá cho sản
phẩm/ dịch vụ của mình.
Công ty định giá dựa theo giá cả của đối
Định giá theo thời giá
thủ cạnh tranh, và ít chú trọng đến phí
tổn riêng của mình hay đến nhu cầu.
demand- Chính sách định giá Cùng với một sản phẩm/ dịch vụ, DN
deferential pricing phân biệt định các mức giá khác nhau cho các
nhóm khách hàng khác nhau, mà sự
price
khác biệt này không liên quan đến chi
discrimination
phí.
perceived-value Định giá dựa trên giá Sử dụng các cảm nhận về giá trị của
pricing trị người mua chứ không phải phí tổn của
người bán làm chìa khóa để định giá.
value-based
pricing
Key Unit 7
Reading comprehension tasks:
1. Answer the questions:

a. The best kind of a advertising is probably what is known as word-of-mouth


advertising, when people tell their friends about a good new product or service

b. Because they are specialists, with large resources, and staff with expert
knowledge

c. The company agrees a budget with the agency, and gives it a brief, i.e. a
statement of the overall objectives of the advertising campaign, and the
message it want to communicate. The agency creates the ads and develops a
media strategy.

d. The choice of which media to use for an advertising campaign, with what
frequency, and in what proportion.

e. Because after a while the message will have been conveyed to virtually all
potential customers, and because after a certain point people no longer notice
ads or become annoyed by their endless repetition.

2. Find the terms ...

A word-of-mouth advertising B institutional or prestige advertising

C advertising agencies D an account E an advertising budget F a brief

G advertising campaign H target customers or target market I media planners


J the threshold effect K the comparative-parity method L counter-cyclical advertising

Exercise 1
1b 2 j 3h 4d 5e 6i 7c 8f 9g 10a
Exercise 2
1 customer 2 client 3 catalogue 4 brochure 5promotion 6 advertising 7 commercial
8 spot 9 endorsement 10 sponsorship 11 agent 12 broker
Exercise 3
1To persuade consumer.. 2To hire an advertising agency.....3To buy media time or space

4To communicate a a message.....5To satisfy a needs......6A target market ......

7Prospective customer..... 8A channel of information......9 New product ideas.....

10To recognize customers’ needs.....11to close a deal.....12To solve a problem..


13To achieve long-term sales......14To give a sales presentation ......

15To cultivate personal contacts...16To meet a sales quote......

Exercise 4

1 word-of-mouth 2 advertising agency 3 account 4 budget 5 brief 6 message

7 media plan 8 target 9 campaign 10 publicity

Exercise 5

1. Universal advertising?B 2. A change in status of foreign star? C


3.Differences in advertising styles? A 4.A product that has a different status in
different culture?D
Unit 8 ARBITRATION KEY

PRACTICE
Litigation, adjudication, arbitrator, arbitration, dispute, hearing, submissions,
documentation, forum, needs, decision-maker, expert, expensive, duration.
UNIT 9 - TORT

Putting the Terms to Use


• Trespass: Jennifer enters Giorgio’s yard without his permission.
• False imprisonment: Jennifer restrains Mary’s movement, that is, locks her in
a stall in the restroom, and Mary does not agree to such restraint.
• Intentional infliction of mental distress: It is safe to conclude that Jennifer’s
behavior before Mary’s congregation was designed to cause injury or, at the
very least, a reasonable certainty that her behavior would cause injury.
Slander: Since Jennifer also said things that were designed to interfere with
Mary’s good reputation, Jennifer could also be accused of defamation,
specifically, slander, since the defamation was oral.
• Libel: Jennifer is interfering with Mary’s interest in her reputation by
distributing a written document containing defamatory language.
• Battery: The unlawful interference with another’s person.

Exercise 1: Case Hypotheticals and Discussion


[Note: You should advise your students that they should look at the elements of
false imprisonment and think of them in terms of yes and no questions. For example,
was there intent to confine the plaintiff? Was there actual confinement? In a court of
law, each of the elements must be proven before there can be a finding of false
imprisonment.]
1. Yes. The following elements were present: (1) there was intent to confine the crew
member on the ship; (2) there was actual confinement; (3) the crew member was
aware of the confinement; and (4) there was no safe means of exit from the ship.
There does not have to be physical force involved in preventing a person from
leaving.
2. No. There is no clear evidence that any of the elements were met, but most
assuredly, Jane was not aware of the alleged confinement since she was unconscious
nor was she in any way prevented from leaving except by her own self-induced
condition.

Exercise 2: Analysis and Collaboration


a. Strict liability. The lower court first found for the defendants (builders of the
reservoir) because there was no negligence. On appeal, however, the court found that
damage (weakening of reservoir) that results from an activity that is unusual (building
of a reservoir) should result in responsibility for damage (flooding of the mines)
caused by the unusual activity.
b. Negligence. The public service company created an unreasonable risk of harm
since the copper wire blended into the landscape.
c. Intent. This is trespass. Remember that a property owner’s interest in the land
extends above and beneath his or her property.
d. Negligence. Howard Johnson’s created an unreasonable risk of harm by having
sliding glass doors that could be easily opened from the outside.