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LEARNING TO DO
BUSINESS
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LEARNING TO DO
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4
CONTENTS
Part I
1. Different kinds of companies
2. Multinational Companies
3. Doing business with foreign partners
4. Management in Multinationals
5. International trade
6. Communicating in writing



Part II
Supplementary tasks
1. The global company
2. Entering the foreign market
3. Scientific Management
4. Leadership
5. Jobs and careers
6. Second-biggest economy




Part III
The scheme for rendering.
References














5
Different kinds of companies


1. Read the text. Define the main idea of each paragraph. What
are the key sentence(s) of each paragraph?

ORGANIZATION

Early in human existence people learned that their individual
efforts often fell short of success. They found that they were unable to
accomplish many tasks that require more than individual effort. The
result was that only limited goals could be attained. Therefore the
necessity of group activity was discovered relatively early in human
existence.
Group activity could be aimed at some higher, more complex set
of goals and could thus bring greater benefits to all concerned. This
quality of group activity must be counted as one of the chief
requirements for success. Cooperation is a prime element of a group of
people who want to achieve more than they can act individually. A
system of group relationships built upon and fostering cooperation,
then, is basically the meaning of an organization.
This system of cooperation consists of several parts: the human
element, the physical element, the work element, and the coordination
element. All of these elements, taken collectively, can be thought of as
an organization. Today, this system of cooperation is much more
complex than it was in the first attempts at organization.
Thus, organization is an open, dynamic, purposeful social
system of cooperation designed to enhance individual effort aimed
at goal accomplishment; consists of the human element, the
physical element, the work element, and the coordination element;
transforms resources into outputs for users.
It is important to examine the various parts or components of
organization theory in order to outline its broad scope. These
components are: goals, work, power and authority, delegation,
structure.
It was stated earlier that organizations were established to enable
an individual to accomplish more in a group than he could as an
individual. In other words, organizations are devices for pooling talent
and ability into an effective whole that can accomplish some desired
6
objective. Every organization is initially built to accomplish some goal.
The goal or purpose is an unrealized state or condition that the
members do not possess but which they deem desirable. It is
imperative that organizational goals be clearly defined and
communicated to all organization members who are to be affected by
them. Goals are the starting point for the design and maintenance of the
organization itself. At the same time, these goals must meet a need that
society has defined as important. Thus, consumer needs play a crucial
role in organization.
Once the goal of an organization is established, it is time for the
members to decide on the type of work activity that will be necessary
to accomplish these goals. Basically, any organization must perform
two fundamental types of work: primary and secondary. The primary
work (it also commonly referred to as line work) consists of production
and distribution of goods and services that will satisfy consumer needs.
The secondary work (it is often termed staff work) consists of all those
activities that support and extend the operations of primary work. For
example, in a manufacturing firm, the secondary work would include
accounting, personnel and quality control.
No theory of organizations would be complete without a
treatment of the roles that power and authority play in organizational
activity. These two components of theory help explain the network of
relationships that tie the other components of an organization together
into some logical pattern.
Power is the ability to influence others successfully. It comes
from any single or combination of possible sources. For example, one
can have power over others because of one's intelligence, skill, or
money. Regardless of its source, power enables its holder to exercise
one's will over others. Thus, in order to understand the total workings
of an organization, one must have an appreciation of the role that
power plays in these workings.
Authority can be defined as power that has been given official
recognition by the organization. Once an organization legally
authorizes an individual to act on its behalf, that person is said to
possess authority. Every member of the organization has some amount
of authority to take action necessary to carry out his responsibility. The
concern of the theorist is to understand how authority comes to be
officially recognized by the organization and what considerations
should be made regarding its use.
7
Organizations that enjoy any measure of success find it necessary
to increase their membership and to assign duties to these additional
members. The process that is used to add members to the organization
will result in the necessity to divide the work of the organization into
sub-units or groups. Each of these groups will be under the direction of
a manager or managers. In order for these managers to perform their
managerial duties properly, they must be granted appropriate
responsibility and authority. The means for making these assignments
is termed delegation. In general, delegation may be defined as the
process of transferring an obligation (responsibility) and an
accompanying right (authority) from a superior to a subordinate
position in the organization. It is this basic process that enables an
organization to grow. Without delegation, an organization simply
cannot exist and prosper.
The patterns of work divisions and their hierarchical
arrangements constitute the basic components of structure. Structure,
then, is the hierarchical pattern of authority, responsibility, and
accountability relationships designed to provide coordination of the
work of the organization. It is basically a managerial tool that aids in
guiding the organization towards its goals and can be considered the
skeleton of the organizational body. The idea of hierarchy of authority,
the division of organization by function, the differentiation of
responsibility of the line (doers) and the staff (the advisors) are all
inventions of the church and military leaders who were faced with the
need to manage large aggregations of human, technical, and material
resources. Organizations create an officially sanctioned structure
known as the formal organization or de jure organization.
A formal organization is only half the story, for superimposed on
these relationships is a whole series of informal or de facto
relationships that are not sanctioned by the organization. These include
informal work groupings of employees, informal leaders, informal
channels of communication and informal power and status
differentials. Usually the structure of an organization is rather
permanent and stable but in some cases a temporary, ad hoc,
organization may be created. The organization exists to reach a certain
goal or set of goals and disbands once the goal is achieved.

2. Translate into Russian. Pay attention to the economic and
business terms.
8

1. Business is the production, buying, and selling of goods and
services.
2. A business, company, or firm is an organization that sells goods
and services.
3. A business is also may be referred to as an enterprise to emphasize
its adventurous, risk-taking qualities, and business in general may
be referred to as free enterprise and private enterprise.
4. Large companies are referred to as corporations, especially in the
US.
5. Large companies operating in many countries are multinationals.
6. An entrepreneur is usually someone who builds up a company
from nothing: a start-up company.
7. The people legally responsible for a company are its board of
directors.
8. When a private company is bought by the state and brought into
the public sector, it is nationalized.
9. When the state returns a company to the private sector in a sell-off,
it is privatized.
10. A holding or holding company is one that holds stakes in one
or more subsidiaries.
11. A holding companys relationship to its subsidiaries is that of
parent company.
12. A franchise is an agreement by which a franchisor gives
another person or company ( the franchisee) the right to sell goods
or services using the franchisors name and/or general business
approach in return for a royalty.
13. A licensing agreement is an agreement under which one firm
allows another to exploit its intellectual property (e.g. a patent) in
return for a royalty.

3. Read the text and be ready to define:
-what a business entity is
-three main types and forms of business organizations.





9
TYPES AND FORMS OF BUSINESS
ORGANIZATION

A business organization is frequently referred to as a business
entity. A business entity is any business organization that exists as an
economic unit. Business entities can be grouped according to the type
of business activity they perform.
Service companies perform services for a fee. This group includes
companies such as accounting firms, law firms, repair shops, and many
others.
Merchandising companies purchase goods that are ready for sale
and sell them to customers. They include such companies as auto
dealerships, clothing stores, and supermarkets.
Manufacturing companies buy materials, convert them into
products, and then sell the products to the companies or to the final
customer. Examples are steel miles, auto manufacturers, and so on.
The business entity concept applies to all forms of businesses -
single proprietorship, a partnership, and a corporation.
A single (sole) proprietorship is business owned by an individual
and often managed by that same individual. Single proprietors include
physicians, lawyers, electricians, and other people who are 'in business
for themselves'. In a single proprietorship, the owner is responsible for
all debts of the business. Operating as a proprietorship is the easiest
way to get started in a business activity. Other than the possibility of
needing a local license, there are not any prerequisites to beginning
operations.
A partnership is a business owned by two or more persons
associated as partners. Partnerships are created by an agreement.
Included in the agreement are such terms as the initial investment of
each partner, the duties of each partner, the means of dividing profits or
losses between the partners each year, and the settlement to be made
upon the death or withdrawal of a partner. Accountants, attorneys, and
other professionals frequently operate their firms as partnerships.
A corporation is a business owned by a few persons or by
thousands of persons. The owners of the corporation are called
shareholders or stockholders. They buy shares of stock. If the
corporation fails, the owners lose only the amount they paid for their
stock. The personal assets of the owner are protected from the creditors
of the corporation. The stockholders do not directly manage the
10
corporation; they elect a board of directors to represent their interests.
The board of directors selects the president and vice president, who
manage the corporation for the stockholders.

4. Read the following text and the table that comes after it. Then
do the exercises that are given after the table.

TYPES OF BUSINESS ORGANIZATIONS

The UK has what is known as a 'mixed' economy. Some
industries and services are owned and controlled by the state. This
sector includes coal, steel, rail transport, health and education, and is
known as the 'public' sector. Other industries and services, including
nearly all commercial and financial services, are owned and controlled
by private enterprise, and this sector is called the 'private' sector,
In the private sector, there are various types of business
organisations. There are sole traders, partnerships, joint stock
companies and cooperatives. Each type is suited to certain services,
professions and industries, and to small and large units, and so it is
necessary to compare and contrast the chief characteristics of each
type.
The type of business unit which is described as 'sole trader' (or
'sole proprietor') is one which is owned, run and controlled by one
person. It is very often found in retailing and in the direct services
(such as window-cleaning and interior decorating). The advantages of
this type of business unit are that the owner can be his own boss, he
can keep all the profits, he doesn't need much capital to start the
business, and there are very few legal requirements to follow.
However, the sole trader is personally and completely responsible
for all the losses of the business. There is no one to share the risk with
him, and if he is ill, no one to take over from him. And if he wants to
expand the business, he seldom has enough capital.
Partnerships are a type of business unit which help smaller
businesses to expand. Partners can introduce more capital, and they
also help in organising and managing the business. Sometimes the
partners bring special skills (such as an accountant in a partnership of
architects), and they share the risks. They also share the profits. Profits
are usually shared by agreement. A partner who contributes more
capital will receive a bigger share of the profits. If there is no
11
agreement the profits and losses must be shared equally by the partners
under the Partnership Act 1890.
There are other kinds of partners. Sleeping partners contribute
capital to the business, but do not participate in its organisation and
management. In limited partnerships, a partner can limit his liability to
the amount he contributes, although at least one partner must have
unlimited personal liability for the losses of the partnership. This is the
main disadvantage of partnerships, that ordinary or general partners
have unlimited personal liability for losses and debts.
For the very large organisations of modern industry and
commerce, the amount of capital needed and the potential losses which
might result from collapse are very large. Unlimited liability is
therefore out of the question. That is why joint stock companies are
necessary. These companies are also known as limited companies
(meaning 'limited liability'). They can be subdivided into private and
public limited companies. The main advantage of both types of
company is limited liability. The members (or shareholders) are
responsible only for the amount of capital they contribute.
The main difference between private and public limited
companies is that there is a restriction on the number of members in a
private limited company (maximum fifty), whereas there is no such
restriction in a public limited company. There are restrictions on the
transfer of shares in a private limited company. The public limited
company can appeal to the public to subscribe capital, and so can raise
more capital than the private limited company. The public receive
shares and become shareholders, and they can sell their shares freely
on the Stock Exchange.
There is continuity in joint stock companies. Unlike partnerships,
the death or retirement of a member does not mean that the company
has to be changed in any way. There is, above all, separation of
ownership and control. The shareholders are the owners of the
company, and although in theory they have control through votes at the
annual general meeting, in practice the day-to-day running of the firm
is left in the hands of specialist directors.
We can compare the types of business unit in this table:


Membership
SOLE
TRADER
One person
PARTNERSHIP
Not <two, nor >
twenty
PRIVATE
LTD CO
Not < two,
nor >fifty
PUBLIC
LTD CO
Not < seven
No limit
12
above this

Capital
Introduced
by the owner

Introduced by the
partners
Introduced by
the members.
The public
cannot
subscribe the
capital
The public is
invited to
subscribe the
capital

Liability
Sole and
unlimited
liability for
the owner
Unlimited
liability ( except
for the Ltd
partners)
Liability is
limited to the
amount the
member
contributes
Liability is
limited to the
nominal
amount of
capital the
shareholder
contributes

Ownership
and control
The owner
controls the
business
Ordinary partners
control the
business. Shares
are not
transferable
Transfer of
shares is
restricted
Shares are
freely
transferable.
The Board of
Directors is
elected by the
shareholders

Public
inspection of
accounts


Not
compulsory

Not compulsory

Compulsory

Compulsory


5. Writing exercise. Using as a guide the reading text above and
the table which follows it, answer the following questions.
There is a model answer below which will help you.
6.
1 Compare and contrast the partnership with the private limited
company as a type of business unit.
2 Compare and contrast the private limited company and the public
limited company as a type of business.
Model Answer Compare and contrast the sole trader and the
partnership as a type of business unit.

The advantages of each type of business unit
'Both types of business unit, the sole trader and the partnership, are
suitable for small businesses. There are very few legal requirements,
13
and public inspection of accounts is not compulsory for either type of
organisation. So a business can be started quite easily using these
forms of business organisation.
'However, there are differences between them when they wish to
expand and develop. The sole trader consists of one person only,
whereas the partnership may consist of up to twenty members. So more
capital can be raised in a partnership, and this is necessary for
expansion. The sole trader can keep all of the profits himself, but he
also has unlimited liability for all the losses of the business. The
partners must share the profit between them. On the other hand, they
share the losses also. They can afford to take more risks than the sole
trader, and to buy more expensive and sophisticated equipment.
'Nevertheless, both forms of business organisation have unlimited
liability for losses and debts, and this is a disadvantage which is
common to both types.
'Although partnerships must have unlimited liability for losses, they
can share the control and management of the business itself. If one of
the partners is ill, for example, the other partners can carry on the
business, whereas the sole trader cannot continue to work and carry on
the business if he is ill or on holiday,
'Partnerships are suitable for businesses which can be described as
professional (architects, accountants, lawyers), and sole traders for
direct services (journalists, plumbers, window cleaners, taxi drivers).
Partnerships are suitable for businesses which are larger than the direct
services provided by sole traders. The advantages and disadvantages of
both forms of business unit are similar in many ways, but the
advantages of the partnership compared with the sole trader become
more obvious as the size of the business increases.'

7. Read the following text:

WHY ARE COMPANIES REFERRED
TO AS LTD., INC., GMBH, OR S.A.?

An individual, like Henry Ford, might want to begin a small
enterprise and personally retain total responsibility and liability, but
once it starts to grow, a partnership or a "company"such as Ford Motor
Companywould need to be formed. The key factor in owning any
company is the guarantee called limited liability: the owners of a
14
company never have to pay more than they have invested in the
company. Their liabilities are limited. When a company goes bankrupt,
the owners can never be required to pay its unpaid bills.
The worst that can happen to investors in a limited liability company
is losing their initial investment if the company fails. By limiting the
downside risk for shareholders, companies are able to attract equity
investors and raise large amounts of funds called equity capital through
sales of shares rather than by borrowing money at potentially high
interest rates.
The names of companies around the world reflect this guarantee
of limited liability. The abbreviations "GmbH" in Germany, "Inc." in the
United States, or "Ltd." in most other English-speaking countries
indicate that the firm is a limited liability company and investors have
nothing more to lose than the money invested in their shares. The "S.A."
in French-and Spanish-speaking countries also refers to limited liability
by defining shareholders as "anonymous." Since the identity of
shareholders can be kept secret, the creditors of a bankrupt company
have no right to pursue them for the company's unpaid debts.
Many countries make a clear distinction between public and
private companies, with separate designations, such as AG and GmbH in
Germany, or Plc and Ltd. in Britain. Generally, "public" companies are
those large enough to have their shares traded on stock exchanges, while
smaller unquoted companies are said to be "private," even though their
shares can be held by the public at large. In some countries, a large
company is said to be privately owned if its shares are not available to
the general public. In the United States, where little distinction is made
between public and private companies, most companies simply bear the
title "Incorporated."
1. What do the names of companies around the world
reflect?

8. Add an appropriate preposition to each of the following
sentences where indicated.

ORGANIZATIONAL CONTROL

An organization can best achieve its objectives when its members
require a minimum. supervision because they are competent and
goal-oriented. Nevertheless, even....... optimal conditions of individual
15
commitment and self-control, organizations need formal controls. The
control function of organizations consists..... the following:
1. Establishing standards ...... which all aspects of organizational
life are evaluated.
Most organizations have formal standards relating ... spending,
production, sales, product quality, safety, inventory, personnel
selection, acceptable employee behavior, and so forth.
2. Establishing feedback system by which actual performance is
compared..... predetermined standards.
These are best exemplified... management reports which show,
often ... a daily basis, expected and actual performance.
3. Taking appropriate action to ensure that substandard
performance is improved and that standards will be met..... the
future.
It is common practice to refer..... the standards and feedback
systems as controls although it should be obvious that they serve a
control function only if managerial action is involved. They are not a
substitute .....supervision, but they minimize requirements for personal
supervision.

Read the text once again and answer the following question: What
are the control functions of organization?

9. Read the text. Fill in the gaps with the missing words given
below.
Monitor, interrelate, integral, report, exaggerate, law, impact, flow of
cash, resources, customers, stock, range, information, activity,
prerequisite, process, subject, nervous.


COMMUNICATION IN ORGANIZATION

Effective communication is a.....for the achievement of
organizational objectives. The importance of communication problems
has at times been... there are, after all, other types of problems but
the..... of poor communication can be enormous.
The..... of communication is illusive because it is intertwined with
so many other subjects. Effective communication is, for example, an.....
16
part of effective leadership, decision making, motivation, the
management organizational conflict, etc.
Communication in organization is here defined as the process
by which ..is transmitted from one person to another.
Money is the lifeblood of an organization: if organizations do not
receive a .. they go out of business. Information plays a similar role.
The flow of facts, figures and words through an organization's
administration is its .....system.
The nature and flow of information determines how sensitive
an organization to its ....., employees, changes in the market, and so on.
The purpose in....... information is to plan, record, control and report
the activities of the organization.
Planning. Managers need information to be able to plan how an
organization's ..... are to be used. This can be a complex process since
each department's plan must ... with the other departments.
Recording. Firms are obliged to keep financial information under
the .......
Controlling. There are many activities in business where
immediate or real time information is necessary so that the ... can be
controlled directly. These activities include ... control, quality control,
and budgetary control.
Reporting. Many different kinds of... exist in business. They ...
from weekly sales reports to financial reports at an Annual General
Meeting. Every function within an organization is constantly ... and
reported on.

10. Read the text once again and summarize it in 5-7
sentences.

11. Open the brackets:

ECONOMIC INDIVIDUALISM LAISSER-FAIRE
In the late seventeenth century, Louis XIV (to reign) as King of
France. His finance minister, Jean Baptiste Colbert, (to ask) a
manufacturer by the name of Legendre how the government might (to
help) business. Legendre's reply (to be) "laissez nous faire" (leave us
alone). The expression (to become) a watchword and motto of market
economy.
17
Today we (to interpret) laissez-faire (to mean) that absence of
government intervention (to lead) to economic individualism and eco-
nomic freedom. Under laissez-faire conditions, people's economic
activities (to be) their own private affairs. As consumers, they (to be)
free (to spend) their incomes as they (to choose). As producers, they (to
be) free (to purchase) the economic resources they (to desire) and (to
use) these resources as they (to wish).
In reality, economic freedom (to be subject) almost always to
restraints imposed by society for the protection and general welfare of
its citizens. Prohibitions against force and fraud (to be) examples. Can
you (to give) some others? Can you (to explain) why such restraints (to
be) necessary?

12. Insert the missing words given below. Make necessary
changes.

organization, to adopt, carefully, change, input, condition, service,
decision making, harmony, turbulent, adapt, output.

In order to be successful the organization must ... with the environment
because it supplies the organization with ... (in the form of resources,
information, and so forth) that are necessary for the determination of
the kinds of the products and ... to be produced. It also receives the ...
(product and services) produced by the organization. To maintain this
... with the environment, the organization must... define and maintain a
boundary system capable of gathering the necessary inputs for effective
and ... and for distributing organizational outputs.
Today's organization exists in a... environment characterized by what
has been termed as discontinuous.... If it is to survive and prosper, the
organization must be capable of adjusting all of its component parts to
..... for this change. Additionally, it must ..... a philosophy and strategy
to support the process of adaptation and change.




13. Work in pairs. Read the suggested extract and fill each gap
with one of these words.

18
another, basic, business, countries, economic, fishing, fully, labour,
major, most, per cent, primary, productive, secondary, services, work,
workers.

Divisions of economic activity. Although the structure of each country
is different, their economies can be shown to have similar sectors.
When speaking of -------- or economic activity, commentators normally
recognize three-------sectors:
primary agriculture, fishing, mining, construction.( for example:
mining of oil)
--------- crafts and manufacturing. ( vehicle manufacturing,
engineering, food processing, beverages, aerospace, computers,
electronics, chemicals)
3.tertiary - -------- , including education, banking, insurance (transport,
retailing, hotels and restaurants, catering, telecommunications, airline)
The occupational structure. The types of activities that most -----are
occupied in differ, sometimes dramatically, from one country to-----
and from one time to another. In --------- developing countries (and in
all --------- before the 19
th
century), the vast majority of the workforce -
------- in the agricultural, or --------, sector. Their work is almost
entirely manual, and most of the countrys ------- power is concentrated
on the -------- task of feeding the population. In -------- developed
countries far more of their ------ resources are directed towards other ---
--- activities. In the United States and Canada, for example, only 4 and
7 per cent, respectively, of all employed persons work in agriculture, --
----- , and mining, compared to more than 70 -------- in India.

14. Work in groups. Discuss these questions:

Ford. PEPSI . BRI TI SH AI RWAYS. Saab-Scania. Hilton
international. Bayer. Bee-line. APPLE

1. Which of these companies do you know? Match them up with
the sectors of industry and the product groups.
2. Which are the five largest or most important companies in your
region (or country)?
3. Which sectors of industry or product groups do they belong to?
4. Make a list of products they make or the services they supply.
19
5. What percentage of people working, approximately, is engaged in
each of the sectors in your country?
6. Which sector is contracting? Which is growing? Which is staying
the same?
7. In which sector are the most companies, businesses or enterprises
in your region located, would you say?
8. Which sector do you (or do you expect to work)?
9. Which sectors can we not do without?

15. Match the words with their definitions:

a) R& D Manager (Research and development)
b) Receptionist
c) Accountant
d) Sales Representative
e) Finance Director
f) Sales and Marketing Manager
g) Executive Secretary
h) Personnel Manager
i) Production Manager
j) Managing Director

1. Someone who heads the department responsible for staff matters,
such as the hiring of employees.
2. Someone who keeps the accounts in the finance department.
3. Someone responsible for running the companys financial affairs.
4. Someone who sits in the lobby, answers the phone, and greets
visitors.
5. Someone who heads the department that advertises and sells the
product.
6. Someone who heads the department responsible for scientific
research and the development of new products.
7. Someone who heads the department responsible for
manufacturing the product.
8. Someone who heads a company and is responsible for its
running.
9. Someone who is responsible for selling the product to customers.
10. Someone who does secretarial work for top management

20


16. Mission statements

A mission statement talk in general terms about companys overall
policies and objectives. Read the two mission statements below and
use the verbs to complete them, paying attention to the verbs endings.
The first one has been done for you in both cases.

admit, introduce, lead, welcome, mean, depend, improve, stay,
come, spend
Restless? Yes. Dissatisfied? True. We cheerfullyadmit
it. We always . change and continuous improvement. Today
consumers.. more than $25 billion a year on our products. We
.- or a very close second in all our business segments,
which that vigorous growth.. on our own imagination,
commitment and skill. So we regularly introduce new products,
distribution channels and . round the clock to be more
efficient. Most of all, we .. absolutely, and unequivocally, 100 %
geared toward the customer, who is definitely No.1 in our book!

believe, strive, cultivate, deliver, enable, help, give, endeavour,
acknowledge, foster

Eastman Kodak Companybelieve... that a diverse group of highly
skilled people, in an organizational structure which them to
apply their collective talents to shared objectives, the greatest
value to customers and shareowners alike. The company and its
employees.. to support an inclusive Kodak culture that
unique thinking in the context of teamwork and common business
goals. Kodak . to provide a flexible, supportive work
environment that employees as partners in the business and
community. To this end, it employees access to a multitude of
work/life resources and .. programs that .. individuals balance
their commitment to meeting business needs with their personal,
family, and community responsibilities.



21
16. Render the following text into English.



. 1912 ,

:
. -
.
.
.
,
.
,
.
.

.
.
.
.

.
,
,
.
.
,
.
.
. .
.
.
.
. .
.
.

22
17. Present your companys profile (cover the following
points)
the location of the company
the company specialization
the companys overall policy and objectives
the product that the company produces or the services it renders
the target customers
the number of people it employs
its annual turnover
worth mentioning recent activities
the companys organizational structure
the recent success of the company
(draw a chart of the companys structure and present it to the class)

18. Role Play

Situation
You are a manager attending an exhibition of office equipment. In the
hospitality lounge you start talking to some other business people
who are at the exhibition.
Instruction
Working in groups or three or two, improvise a conversation. Read the
following:
1. Choose a company or business organisation. It may be real or
imaginary.
2. Introduce yourself; say who you work for, what your position is
in the organisation and how long you have worked for it.
3. Give the following information:
What kind of business organisation it is( private, public sole
trader, partnership)
Its main business activities
Location of its head office, branches/subsidiaries
Turnover, profits, size of workforce
4. Give any other information about yourself, your job and the
organisation.

19. Making a presentation
David Sibley is the new Executive Director of the Yorkshire and
Humberside Development Association in the North of England. The
23
work of the Association is to encourage British and overseas
companies to set up factories in the area. The region of England needs
more business and industry so that more employment opportunities
will be provided for young people living in the area.
In David Sibleys office at the moment are the Managing Director and
Production Manager of a company. They are about to tell Sibley about
their companys activities.
Listen to their conversation. (Keys to management Unit 4 p. 47)
M.D.Before I tell you a little about our company, could I first thank
you for seeing us at such short notice - it was very good of you
S. Please, don't mention it.
M.D. Now about our company, Surefire Heating. We're a public
limited company based in Wokingham. We've been in business some
thirty years now. In the beginning, we made only heating and
ventilation units - they're still our main product lines, actually. But
recently we've moved into the field of kitchen equipment for the hotel
and catering trade.
S. Interesting. You should find plenty of customers for that equipment
up here. I'm sure you're aware of that.
M.D. Oh yes, we're not short of customers in northern England. Now, I
should tell you that our most exciting new product line is microwave
ovens. We've got big plans for these. More about that in a moment.
S. Right.
M.D. Let me give you some idea of the company's size now. Our
turnover last year was close to 30m, our pre-tax profits around 4.5m.
We've got a work-force of approximately 300 employees. We're
expanding fast, I'm happy to say. Our growth rate - in terms of turnover
- has been almost 10% a year.
S. Very impressive.
M.D. Thank you. Now Bob will say a word about our labour relations.
He has more to do with that side of things than I do.
P.M. Thanks Ian. Well, in a word, Mr Sibley, our relations with the
union are first class. We've never had a strike at the plant and
obviously we're very proud of that record. It's probably because we
treat our employees well. We listen to what they have to say about their
work, and they've plenty of opportunities to give their opinion. Mind
you, we're not complacent. I'm not saying we'll never have a strike.
S. Mm, nothing's certain in life, is it?
P.M. Right.
24
M.D.I think that gives you some idea of our business, Mr Sibley. Let
me tell you now why we wanted to meet you. You see, we're planning
to produce 30,000 micro-wave ovens next year. And we expect our
output to rise to 60,000 or even 70,000, in two or three years' time. For
that, we need a factory, say 40,000 square feet, and more workers.
Eighty to a hundred employees at least.
S. We can certainly help you there. Let me tell you what the north of
England can offer you.
Role play
The Yorkshire and Humberside Development Association have decided
to give a substantial development grant to one of the companies which
are currently interested in opening a factory in the region.
Instructions
Work in groups of four or five. Each group consists of
1 a managing director and production manager
2 members of the Development Association
MANAGING DIRECTOR AND PRODUCTION MANAGER
You represent either a British or foreign company. You must make
a presentation of your company to members of the Development
Association. Be prepared to answer any questions they may ask you.
Use the headings below as a guide and prepare your presentation.
Remember that there is only one grant available.

Yorkshire & Humberside Development Association
Westgate House, 100, Wellington Street, Leeds LS1 4LT.
Tel: Leeds (0632) 439222 Telex: 55263 YHDA G Fax: (0532)
431088
CANDIDATE INFORMATION
name of company: ...................type: ...................
head office: ....................... no. of years in business:
existing product(s) or service(s): ...........................
new product(s) or service(s): ................................
turnover 2007: ..................... pre-tax profits 2007: ...
work-force: ........................ growth-rate: ............
management style: ............................................
labour relations: ............................................
reason(s) for requiring new factory: .........................
size: .............................. employment created:
other information: ......................................
25

MEMBERS OF DEVELOPMENT ASSOCIATION
First, listen to the presentation by the company representatives and
make notes about the company. Then, using the headings above to help
you, ask them for any further information which you may require.
Next, tell the other members of the Development Association (from the
other groups) all about the company which you have interviewed.
Finally, decide together which company should be offered the grant.

26
Multinational companies.
1. Work in groups. Discuss the following questions with your
fellow students:
What are arguments for and against for a company to build a plant
in another country?
What cultural differences and sensitivities are important for
business executives to realize and deal with when working
overseas?
How much should companies and executives adapt to local business
customs and habits when overseas?
MULTINATIONALS AND THE THIRD WORLD
Big foreign companieslike Coca-Cola and Fordhave set up
subsidiaries in many developing countries. How can the subsidiaries
benefit these countries? Is this kind of investment always useful?
(Explain your answer.)
Multinationals are large international companies which produce
goods in several countries. Some well-known ones are Ford, Shell,
Coca-Cola, Sony, Akzo and Unilever. Their turnover is huge, being
greater in some cases than the national income of countries such as
Switzerland or the Netherlands. Because they are so big they attract a
lot of attention. Usually their business methods are carefully watched
by foreign governments. People are particularly interested in their
activities in poor and developing countries. They ask the question:
How have multinationals improved the economies of these
countries? In reply, a manager working in a multinational will say
something like this: Well, for a start we provide the capital which
poor countries need for their economic growth. The point I'm trying
to make is that our capital, together with local savings, finances their
industries. Another thing, we share our technology with local
businesswe introduce our scientific and technical methods to them.
And they increase the productivity of their workers.
27
Don't forget also that we produce a wide variety of goods. And
let's face it, we employ thousands of people all over the world. No
one can accuse us of not paying good wages. So, I think you'll agree,
we are responsible for raising living standards.
Critics of multinationals do not accept such arguments. They say that
the big corporations are not major suppliers of capital. In Latin
America, for example: multinationals have mostly used capital provided
by local banks and investors, and have not brought in capital from the
United States and Europe. Because of this there is a shortage of money
to finance local businesses. Foreign firms have taken the lion's share of
the available capital.
The critics agree that multinationals introduce new technology.
However, it is often unsuitable for developing countries. The
imported technology is too expensive and complicated. It has been
developed for industrial societies, not for poor countries. In agriculture,
for instance, most countries do not need tractors, which are expensive to
buy and operate. They need better hoes and ox-ploughs. Another
disadvantage of the new technology is that it will probably reduce jobs.
Generally it is labour saving. This is because it comes from the United
States and Europe where wage costs are high. Poor countries can do
without such technologythey have large numbers of workers looking
for employment.
Two examples prove this point. The building industry used to
provide many jobs in the Third World. Now it employs fewer new
workers because cranes, bulldozers and other labour-saving machinery
are replacing men. And in Latin America bigger firms are using
expensive imported machinery to increase productionbut employing
fewer and fewer workers.

2. Suggest English equivalents to the following Russian ones:
, ,
,
, ,
, ,
,
, - -,
, ,
, ,
, .
28

3. Read two passages about two companies. Decide which of
the headlines goes with which passage:


Planning and Building for over 150 year
Pioneering Tomorrows Electronics
A. OVER THE DECADES, the name of Siemens has become
synonymous with progress. Since 1847, when Werner Siemens and
Johann George Halske founded the Siemens & Halske
Telegraph Construction Company in Berlin, the history of Siemens has
been closely linked with the development of electrical engineering.
While still a fledgling firm, Siemens & Halske spearheaded the
evolution of telegraphy with the first pointer telegraph and the
construction of an extensive telegraph network. In 1866 Werner
Siemens invented the dynamo machine, laying the cornerstone of
power engineering.
New ideas are an old tradition at Siemens. The company that grew out
of the original Siemens & Halske is today a highly innovative leader in
the world electrical and electronics market. Composed of Siemens AG
and an array of domestic and foreign subsidiaries, the contemporary
Siemens organization continues to set milestones on the road of
progress.
Siemens maintains its own production facilities in more than 50
countries and operates a worldwide sales network. With more than
300,000 employees, it is one of the largest companies in the world
electrical/electronics industry, having recorded annual sales of DM 82
billion in the 1992/93 fiscal year. Reliable and farsighted management
is united with the youthful dynamism and zest for innovation that
typify the company.

B. IN 1849, JOHANN PHILIPP H0LZMANN founded company in
Sprendlingen, near Frankfurt am Main, which initially undertook work
in connection with the construction of the railroads, but very quickly
expanded its activities to include all fields of building construction and
civil engineering. The first major foreign project was started in 1881
with the contract for Amsterdam's Central Station.
29
By the turn of the century, branch offices and regional offices had
been established at numerous locations throughout Germany. As early
as 1885 Holzmann had more than 5,000 employees. Interesting
activities from this period include the company's work on the Baghdad
railroad and railroad projects in East Africa.
Holzmann has passed through all forms of company organization
from individual proprietorship via a limited and general partnership
through to a GmbH (limited liability company). The Philipp Holzmann
Aktiengesellschaft (public limited company) was formed in 1917.
Companies founded by Holzmann were active in South America.
Even following the losses of manpower and assets during the Second
World War, Holzmann was able, as early as 1950, to recommence its
foreign activities. 1979 saw the acquisition of J. A. Jones Construction
Company, of Charlotte, North Carolina, USA, a major American
corporation active in the construction field. This was followed in 1981
by the purchase of Lockwood Greene Engineers, Inc., Spartanburg
South Carolina, USA. Together with its USA subsidiaries Holzmann
has responded to the changes occurring in the construction industry
with a flexible and versatile corporate strategy.
The takeover in early 1989 of the Steinmiller Group, one of
Germany's leading companies' in the sectors of power engineering,
process engineering and environmental protection demonstrates this.

4. Complete the information missing in this table:
Dates
What happened?

Who did what?
1847
1849



Invention of dynamo machine


First large foreign order begun

1885



Aktiengesellschaft founded

1950
30

Acquisition of J. A. Jones
Construction Company

1981


1989



Recording annual sales of DM 82bn.

Complete the following table with information from the article:
HOLZMANN SIEMENS
Location of the companys activities
Activities of both companies
up to to 1940s

Recent activities of the companies

5. Work in groups. Group 1: You are members of the Board of
Directors of a multinational company. Think over the history of
your company, its growth and development, organizational
structure. Make use of the following words and word
combinations:

to establish
to become synonymous with
to undertake work
to concentrate on
to fuel a steady program of
expansion
to maintain production
facilities
to launch, to produce, to
manufacture
to provide the capital
to introduce scientific and
technical methods
to have. sales and service
outlets
to employ
to respond to changes with
to manage, to run
to look after the general
direction and long-term
strategy
companys creed
to be committed to
31
to implement.. policies to typify the company

Group 2: You are the reporters who are interested in the activity
of large multinational companies. Prepare a list of questions you
are to ask to the Board of Director of a multinational company.
Make use of the following words and word combinations:

to set up
to become synonymous with
to specialize in
to introduce something onto
the market
to manufacture
to be located in
to stimulate product
innovation
to maintain product facilities
to be responsible for raising
living standards
to run, to monitor, to be
responsible for
to employ
to have. annual sales
to typify the company
companys creed
to increase the productivity
of workers
to recommence ones
activities

6. Listening (Keys to Management UNIT 4 p.51)

1) Work in groups of two or three. Read the newspaper
article below and discuss any problems of vocabulary.

TOSHIBA SETS UP MICROWAVE FACTORY IN
PLYMOUTH

THE JAPANESE manufacturing giant, Toshiba, has just opened a
microwave oven plant in Plymouth, Devon.
The new factory cost just under 3 million and will eventually
produce ovens for all of the major European markets. Toshiba say
that in its second year it will be producing at least 20,000 units per
year.
Toshiba are, of course, very well known in the Plymouth area,
having already established a TV and video facility there. This has
shown steady growth since being set up five years ago.
This morning's ceremony to mark the opening of the microwave
plant was remarkably informal. There was just one speech, given by
Dr David Owen, the local Member of Parliament.
32
Following the ceremony, Eric Hammond, General Secretary of the
Electrical, Electronic, Telecommunications and Plumbing Union
(EETPU), spoke about the agreement his union had made with
Toshiba's management. Both sides had agreed that strikes would only
be allowed in exceptional circumstances.
With regard to Toshiba's much publicized system of open manage-
ment, Mr Hammond explained that there was a Company Advisory
Board where employees and managers regularly meet to discuss sales
results, company finances, productivity, quality control etc. How-
ever, only the most senior managers were allowed to see important
documents.
Toshiba is doing extremely well in Great Britain. Their profits for
last year were approximately 200 million. Labour relations are
excellent and people obviously enjoy working for the company.
Toshiba's aim now is to achieve an average growth rate of 30% for
its UK companies in the next two years.

2) Now listen to the extract from a news broadcast about the
opening of the Toshiba factory. You will notice that there
are several mistakes in the newspaper article.
3) Listen to the news broadcast again. As you do so, identify
the mistakes made by the writer of the article.
4) Compare your findings with the other members of your
group.

7. Role-play. Forming a subsidiary
(follow the instructions)

1. Split into 2 groups of 6 or 7 students in each. You are all
members of very successful companies in your home
country which want to build a subsidiary abroad.
2. Choose one product; it will be the product that all the
groups are producing in their fictitious companies.
3. Choose five criteria at random. Each groups criteria should
differ from those of its partner group.
4. Propose an appropriate location of your subsidiary. If its a
large country, you should specify the region as well. It
should be a country that has the advantages according to the
33
chosen criteria. You may add any other advantages which
you feel the country or the region really has.
5. The aim of the role-play is to convince your partner that
your location is the best one.
Suggested products: computer software, microwave
dinners, motor vehicles, bicycles, shoes, x-ray machines,
household linens, stationary and wrapping paper, domestics
electrical appliances.
Criteria: proximity to international airport, good road
links, availability of skilled workers, availability of
unskilled labour, good industrial relations, pleasant climate,
good rail and sea links, no language problems, availability
of raw materials, low cost of business premises, good cheap
housing, tax incentives to attract new business to the area,
good telecommunications system, high quality of life, large
working population, high level of productivity, low wage
rates, large home market for product, good healthcare
facilities.

8. Problem solving. Work in pairs. Suggest your solution of
the problem and compare it with your group-mates.

Three years ago you created a company to sell cosmetic
products made by outside manufacturers to your own natural
recipe. Although you now have a chain of 5 shops,
nationwide demand is out-stripping your ability to finance
the opening of new shops and large multinational cosmetic
companies are beginning to notice your success. What can
you do to prevent them, with their superior financing
facilities, from squeezing you out of the market?

Multinationals

Listen to the following news broadcast about the opening of a
new micro-wave oven factory in Plymouth, Devon.

NEWSREADER And now, industrial affairs. To give you the latest
on commercial and industrial developments in the area, here's Peter
O'Driscoll.
34
O'DRISCOLL Good evening, everybody. Well, the big story
today is the opening of the Japanese conglomerate Toshiba's micro-
wave oven factory at Plymouth. The company has invested roughly
3.6 million in this development, which is the first micro-wave oven
plant ever to be set up in Great Britain. The factory, which should
provide a great number of jobs for young people in the area, will
eventually service the whole of the European market. Toshiba
estimate that production in the first year will reach 90,000 units, and
after that they expect to turn out about 20,000 ovens a month.
Of course, Toshiba already has a television and video factory in
Plymouth, at Ernesettle. Productivity at Ernesettle has been truly
remarkable, with output trebling in the last five years. Undoubtedly,
it was the success of the TV and video plant which influenced
Toshiba's decision to locate their micro-wave factory here in Devon.
Today's opening ceremony was attended by the Managing Director
of Toshiba UK, Mr Toshihide Yasui. Also present were the
Managing Director of Toshiba Consumer Products, Desmond
Thomson, and local Member of Parliament, Dr David Owen. All
three men made speeches, whose main theme was that good
industrial relations between the union and management had been the
key to Toshiba's success.
NEWSREADER After the ceremony, Mr Eric Hammond, leader of
the Electrical, Electronic, Telecommunication and Plumbing Union,
talked to our reporter on the spot, Dick Kerslake.
KERSLAKE Now tell me, Mr Hammond, what sort of agreement
did you work out with the Toshiba management when the company
first set up a factory in this area? HAMMOND We agreed on one
principle, right from the start. That was, that there would be no
strikes in the factory. It's unthinkable that we would settle a
problem, a dispute, by means of a strike. We rely on negotiation,
and compromise.
KERSLAKE I see. No strikes under any circumstances.
HAMMOND Exactly.
KERSLAKE What about relations between staff and management?
What ideas did you have about that?
HAMMOND On both sides - management and union - we felt that
the employees should have a say in the running of the company.
That's why there's a Company Advisory Board at Toshiba. Workers
from all levels of the company are members. They attend meetings
35
of the Advisory Board where they discuss things like sales figures,
profit-and-loss accounts, production targets, quality control, that sort
of thing. They see confidential documents and can give their opinion
about decisions affecting the company's future.
KERSLAKE How interesting. Finally, Mr Hammond, can you tell
me something about Toshiba's performance in Britain? How's the
company been doing?
HAMMOND It's got a very good track record here, I can tell you.
The company as a whole has a turnover of 200 million and ... let
me see ... it's growth rate is about 30% a year.
KERSLAKE Remarkable.
HAMMOND Yes, very impressive, indeed. There've been no
strikes in its factories, of course. Absenteeism is low too. But the
important thing is, Toshiba's creating jobs in the area. That's what
we need here, isn't it. Plenty of job opportunities, especially for
young people.
Scientific Management
DAVID I was talking to Don Harper the other day. He's Personnel
Manager at IC Electronics. He was telling me about their flexitime
scheme - they introduced it a year or so ago. Apparently, it's pretty
popular.
JACOBAVTTZ Flexitime ... mm ... that's when staff come and go as
they please, isn't it?
GORMAN Yes. And the supervisors never know where anyone is!
DAVID It's not like that at all, Sydney. At least, not as far as I
understand it. GORMAN Huh!
JACOBAVITZ Go on, Gloria. Tell us all about it. How does it
work at Don's place?
DAVID First of all, at the moment, they've got flexitime for their
office staff only. But I believe they're thinking of having it for their
factory workers as well. JACOBAVITZ Good Heavens!
GORMAN You must be kidding!
DAVID I was surprised to hear that too, I must say.
JACOBAVITZ Anyway, how does the scheme work, Gloria?
The one they've got now.
DAVID Something like this. I can't remember all the details, mind
you. You see, the office staff have to work a certain number of
hours a week - thirty-five, thirty-eight - one or the other anyway,
36
and they've also got to be at their desks at certain hours of the day.
They call that the 'core' period.
JACOBAVITZ Uh, huh. When is that exactly?
DAVID If my memory serves me well, it was twelve to four
o'clock. JACOBAVITZ And what about the other hours?
DAVID Well, they're flexible. From seven to twelve, and from four
to seven in the evening, the staff can start and finish when they
want. It's up to them.
GORMAN Tell me, what happens if they work more than the
hours they're meant to. I mean, suppose they have to work thirty-
five hours a week, and they work forty-five hours. What happens
then?
DAVID No problem. They carry over their credit hours, as they're
called, to the next month. So then they can take a couple of
mornings off, or leave work early one week.
JACOBAVITZ That's quite useful, from the firm's point of view, I
mean. Because if you're really busy one month, the office staff will
work extra hours. And when things are quieter, they can be
compensated by having time off.
GORMAN Yeah, that's certainly an advantage - for staff and
management. Did Don mention any benefits they'd got from
flexitime, Gloria?
DAVID Oh yes. He told me there'd been less absenteeism since
the scheme was introduced and that staff turnover had gone down.
GORMAN Any effect on productivity?
DAVID Mm. The staff have been getting through a lot more work,
and the quality's been higher too.
GORMAN Astonishing.
JACOBAVITZ Is it so surprising, Sydney? They're probably a lot
happier now that they have flexible hours.
DAVID That's it. It seems they feel more responsible. They feel that
the management's treating them as mature people.
JACOBAVITZ That's reasonable.
DAVID Also, don't forget, they can come to work later now. They
miss the rush hour. The hustle and bustle, the traffic jams ... They're
not tired and bad-tempered when they get to work.
JACOBAVITZ Right. And they don't get a talking-to from the
supervisor if they're late. Well, with flexitime, they can't be late, can
they?
37
DAVID Precisely.
GORMAN That must improve relations between employees and
supervisors, Gloria.
JACOBAVITZ Yes, I would have thought so too.
DAVID It does. The staff at Don's place really like the system. They
feel they're organising their lives better. They're in control.
JACOBAVITZ Do you know, you've put an idea in my head. Maybe
... well, it might just be worthwhile trying flexitime here. With the
office staff, that is.
DAVID I was waiting for you to say that. Actually, that's why I
brought up the subject -I was sounding you out.
JACOBAVITZ I had a feeling you might be. I wasn't born yesterday,
you know.

ADVANTAGES
1 The efficiency of workers is improved.
2 Productivity is increased.
3 Workers' output increases, and so, therefore, do their
wages

DISADVANTAGES
1 It focuses on the system of work, rather than on the worker
-leading to the worker becoming a tool in the hands of
management,
2 It leads to the de-skilling of workers - causing frustration
and dissatisfaction.
3 Doing and planning are separated - workers may be more
productive if they are involved in planning, decision-
making controlling and organising.








38
Doing business with foreign partners

1. Read the text and highlight any useful vocabulary youd
like to remember.

Good Manners

HOW NOT TO BEHAVE BADLY ABROAD

Traveling to all corners of the world gets easier and easier.
We live in a global village, but how well do we know and
understand each other? Here is a simple test. Imagine you have
arranged a meeting at four oclock. What time should you expect
your foreign business colleagues to arrive? If theyre German,
theyll be bang on time. If they are American, theyll probably be 15
minutes early. If they are British theyll be 15 minutes late, and you
should allow up to an hour for the Italians.
When the European Community began to increase in size,
several guidebooks appeared giving advice on international
etiquette. At first many people thought this was joke, especially the
British, who seemed to assume that the widespread understanding of
their language meant a corresponding understanding of English
customs. Very soon they had to change their ideas, as they realize
that they had a lot to learn about how to behave with their foreign
business friends.
For example:
The British are happy to have a business lunch and discuss
business matters with a drink during the meal; the Japanese
prefer not to work while eating. Lunch is a time to relax and
get to know one another, and they rarely drink at lunchtime.
The Germans like to talk business before dinner; the French
like to eat first and talk afterwards. They have to be well fed
and watered before they discuss anything.
Taking off your jacket and rolling up your sleeves is a sign of
getting down to work in Britain and Holland. But in Germany
people regard it as taking it easy.
American executives sometimes signal their feelings of ease
and importance in their offices by putting their feet on the
39
desk whilst on the telephone. In Japan, people would be
shocked. Showing the soles of your feet is the height of bad
manners. It is a social insult only exceeded by blowing your
nose in public.
The Japanese have perhaps the strictest rules of social and business
behavior. Seniority is very important, and a younger man should
never be sent to complete a business deal with an older Japanese
man. You must exchange business cards immediately on meeting
because it is essential to establish everyones status and position.
When it is handed to a person in a superior position, it must be given
and received with both hands, and you must take time to read it
carefully, and not just put it in your pocket! Also the bow is very
important. You should not expect the Japanese to shake hands.
Bowing the head is a mark of respect and the first bow of the day
should be lower than when you meet thereafter.
The Americans sometimes find it difficult to accept the more formal
Japanese manners. They prefer to be casual and more informal, as
illustrated by the universal Have a nice day American waiters
have a one-word imperative Enjoy! The British, of course, are
cool reserved. The great topic of conversation between strangers in
Britain is the weather unemotional and impersonal. In America,
the main topic between strangers is the search to find a geographical
link. Oh, really? You live in Ohio? I had an uncle who once
worked there.

When in Rome, do as the Romans do.
Here are some final tips for travelers.
Inn France you shouldnt sit down in a caf until youve
shaken hands with everyone you know.
In Afghanistan you should spend at least five minutes saying
hello.
In Pakistan you mustnt wink. It is offensive.
In the Middle East you must never use the left hand for
greeting, eating, drinking or smoking. Also, you should take
care not to admire anything in your hosts home. They will
feel that they have to give it to you.
In Thailand you should clasp your hands together and lower
your head and your eyes when you greet someone.
40
In America you should eat your hamburger with both hands
and as quickly as possible. You shouldnt try to have a
conversation until it is eaten.

2. Read the article and decide what the most appropriate
title to the text is. Give your reasons:

When in Rome Problems that business
people face.
Traveling abroad Good manners, good
business.
Doing business in Europe I didnt mean to be rude.

Nobody actually wants to cause offence but, as business
becomes ever more international, it is increasingly easy to get it
wrong. There may be a single European market but it does not mean
that managers behave the same in Greece as they do in Denmark.
In many European countries handshaking is an automatic
gesture. In France good manners require that on arriving at a
business meeting a manager shakes hands with everyone present.
This can be a demanding task, and in a crowded room, may require
gymnastic ability if the farthest hand is to be reached.
Handshaking is almost as popular in other countries including
Germany, Belgium and Italy. But Northern Europeans, such as the
British and Scandinavians, are not quite so fond of physical
demonstration of friendliness.
In Europe the most common challenge is not the content of the
food, but the way you behave as you eat. Some things are just not
done. In France it is not good manners to raise tricky questions of
business over the main course. Unless you are prepared to eat in
silence you have to talk about something something, that is, other
than the business deal which you are continually chewing over in
your head.
Italians give similar importance to the whole process of business
entertaining. In fact, in Italy the biggest fear, as course after course
appears, is that you entirely forget you are there on business. If you
have the energy you can always do the polite thing when the meal
finally ends, and offer to pay. Then, after a lively discussion, you
41
must remember the next polite thing to do let your host pick up the
bill.
In Germany, as you walk sadly back to your hotel room, you
may wonder why your apparently friendly hosts have not invited
you out for the evening. Dont worry, it is probably nothing
personal. Germans do not entertain business people with quite the
same enthusiasm as some of their European counterparts.
The Germans are also notable for the amount of formality they
bring to business. As an outsider, it is often difficult to know
whether colleagues have been working together for 30 years or have
just met in the lift. If you are used to calling people by their first
names this can be a little strange. To the Germans, titles are
important. Forgetting that someone should be called Herr Doktor or
Frau Direktorin might cause serious offence. It is equally offensive
to call them by a title they do not possess.
In Italy the question of title is further confused by the fact that
everyone with a university degree can be called Dottore- and
engineers, lawyers and architects may also expect to be called by
their professional titles.
These cultural challengers exist side by side with the problems
of doing business in a foreign language. Language, of course, is full
of difficulties disaster may be only a syllable away. But the more
you know of the culture of country you are dealing with, the less
likely you are to get into difficulties. It is worth the effort. It might
be rather hard to explain that the reason you lost the contract was
not the product or the price, but the fact that you offended your hosts
in a light-hearted comment over an aperitif. Good manners are
admired: they can also make or break the deal.

3. Suggest English equivalents to the following Russian ones:

, ,
,
, ,
, , ,
, - ,
, -,
, , ,
, -, -
42
, ,
, , ,
, -,
-.

4. Decide if these statements are true or false, according to
the writer:
1. In France you are expected to shake hands with everyone
you meet.
2. People in Britain shake hands just as much as people in
Germany.
3. In France people prefer talking about business during meals.
4. It is not polite to insist on paying for a meal if you are in
Italy.
5. Visitors to Germany never get taken out for meals.
6. German business people dont like to be called by their
surnames.
7. Make sure you know what the titles of the German people
you meet are.
8. Italian professionals are usually addressed by their titles.
9. A humorous remark always goes down well all over the
world.

5. Complete the sentences using information from the text:
b. Nobody wants to cause offence but
c. A single European market doesnt mean that
d. Handshaking is an automatic gesture and in France, for
instance,
e. Handshaking is popular in many countries but
f. Business has its place thats why
g. In Italy its easy to forget you are there on business because
h. Germans differ from Italians. As a matter of fact
i. Make sure you know what the titles of the German people you
meet are because

6. Translate into English:
1. ,

.
43
2. , ,
, .
3.
,
,
.
4.
,
.
5. , ,
,
.
.
6. ,
.
, .
7. ,
, ,
.

7. Discuss these questions in pairs:
1. What would you tell a foreign visitor about good/bad
manners in your country?
2. Which nationalities do you think are most different from your
own? Give your reasons.
3. If someone comes from another country, what differences do
you expect in their behavior, manners, eating habits, etc.?
4. What advice would you give somebody coming to live and
work in your country?
5. How could you describe a typical American, a typical
English person and other typical nationalities?

8. As you get to know someone, its useful to find out what your
common interests are. Than you can have a social conversation
as well as talking shop (talking about business).

Work in pairs Which of these topics do you talk about and
which do you not talk about during a first meeting with a
business associate?
44
sport, politics, your family, business, travel, hobbies, films,
music, the weather, religion, your education, TV.
And what difference does it make if the other person is:
a foreigner, a man, a woman, older than you, younger than you,
senior to you, junior to you?
(Compare your ideas)

9. Read the text Cultural differences and do exercises
after it:

If you hope to get involved in international trade, one thing
you will have to learn is the cultural differences among nations.
Different nations have very different ways of conducting business
and American businesspeople are notoriously bad at adapting. In
fact, American businesspeople have consistently been accused of
ethnocentricity. This means they feel their culture is superior to all
others and their job is to teach the American way to do things. On
the other hand, foreign business people are very good at adapting to
the U.S. culture. Let us give you a couple of examples to show how
American businesspeople have difficulty in adapting to important
cultural differences.
Religion is an important part of any societys culture and has a
significant impact on business operations. For example, in Islamic
countries, down-to-dusk fasting during the month of Ramadan
causes workers output to drop considerably. Also, the requirement
to pray five times daily can affect output. For example, an American
manager in Islamic Pakistan toured a new plant under his control in
full operation. As he was working, suddenly all the machinery in the
plant stopped. He rushed out expecting a possible power failure and
instead found his production workers on their prayer rugs. He
returned to his office and lowered his production estimates.
Cultural differences can also have an impact on such important
business factors as human resource management. In Latin American
countries, managers are looked on by workers as authoritarian
figures responsible for their well-being. Consider what happened to
one participative American manager who neglected this important
cultural characteristic. This manager was convinced he could
motivate his workers in Peru to higher levels of productivity by
instituting a more democratic decision-making style. He even
45
brought in trainers from the United States to teach his supervisor so
solicit suggestions and feedback from workers. Shortly after his new
style was put in place, workers said the new production manager and
supervisors did not know their jobs and were asking the workers
what to do. All stated they wanted to quit and find new jobs, since
obviously this company was doomed because of incompetent
managers.
Without question, culture presents a significant hurdle for
global managers. Learning about important cultural perspectives,
toward time change, competition, natural resources, achievement,
even work itself can be a great assistance. Today, firms often
provide classes and training for managers, their families on how to
adapt to different cultures and avoid culture shock. Your
involvement in courses in cultural variations and anthropology can
assist in your career in global business.
Cultural differences affect not only management behaviors but
international marketing strategies as well. As you recall, global
marketing is the term used describe selling the same product in
essentially the same way everywhere in the world. The growth of
satellite systems will soon make it possible to have world-wide
promotions. Rupert Murdoch, for example, has a satellite in the
United Kingdom that transmits to nearly 2,5 million homes in
Norway, Finland, Switzerland, Austria, West Germany, and the
United Kingdom itself. Many U.S. programs reach Canada, of
course. The question is whether or not international promotions will
be successful given the problems we have already discussed. Some
companies have developed universal appeals. Sky Channel,
Murdochs European system, successfully promoted Coca-cola,
Wrigley, Ford, Polaroid, Kodak, and other companies whose
products have wide appeal. Others, unfortunately, have hit the
hurdles and failed. Some past experiences are revealing of the
problems of global marketing. For example, translating a theme into
a different language can be disastrous:
Body by Fisher became Corps by Fisher.
The Chevrolet Nova had little appeal in Spanish-speaking countries,
because no va in Spanish means it doesnt go.
Campbell soup failed in Brazil, because housewives felt they were
not fulfing their role by serving ready-made soup. They preferred
46
dehydrated products that they could use as soup started, to which
they could then add their own creative touch.
Thousands of similar could be told. The truth is that most U.S.
manufacturers simply do not think globally yet. For example, they
dont adapt automobiles to drive on the left side of the road as is
done in many countries. They often print instructions only in
English. Parts can be hard to get. Some electrical outlets cant
handle American-style plugs. The problems go on and on. Only
when US producers begin to thoroughly research foreign markets
before attempting sales will such problems be solved. Global
marketing works only in limited cases. International marketing
usually calls for careful marketing research (listening) and
adaptation to the specific wants and needs of various countries and
to the differences between countries.

10. Suggest Russian equivalents to the following English ones:
To get involved in international trade, to be notoriously bad at
adapting, to be accused of ethnocentricity, to conduct business, to
have difficulty in adapting to important cultural differences, to feel
ones culture is superior to all others, to teach the American way to
do things, to have a significant impact on business operations, to
drop considerably, to affect output, to lower production estimates,
human resource management, to be looked on by workers as
authoritarian figures responsible for their well-being, to neglect
important cultural characteristic, to higher levels of productivity by
instituting a more democratic decision-making style, to be doomed,
to present a significant hurdle for global managers, to be a great
assistance, to adapt to different cultures and avoid culture shock, to
have wide appeal, to think globally, to thoroughly research foreign
markets, to call for careful marketing research (listening) and
adaptation to the specific wants and needs.

11. Paraphrase the following sentences using vocabulary
from the text:

1. If you want to take part in international trade, youll have to learn
cultural differences among nations.
2. Different nations have different ways of doing business.
3. Religion influences business operations.
47
4. Workers output decreases if they pray five times a day.
5. A manager can fail if he doesnt take into consideration important
cultural characteristics.
6. Trying to motivate his workers one participative manager
introduced a more democratic decision-making style.
7. It goes without saying culture presents a great obstacle for global
managers.
8. Its undoubtedly true that international marketing requires careful
marketing research.

12. Comprehension questions:
1. What should a businessman know if he wants to get involved in
international trade?
2. What are American business people bad at adapting to?
3. What have they consistently been accused of? Why?
4. What has a significant impact on business operations? Why?
5. What should we bear in mind if we do business in Latin
American countries?
6. What was the reason of the failure of one participative manager?
7. What else presents a significant hurdle for global managers?
8. How do many companies try to overcome that hurdle?

13. Read the following article.

DO IT MY WAY

Cultural differences between Japanese and American managers
have presented the biggest obstacles to Japanese companies
investing in America.
A seminar for Japanese executives working in America was
attended by 25 men, nearly all of them in identical dark suits.
Despite the rooms stifling heating system, they resolutely refused to
remove their jackets. Their coffee break lasted exactly the scheduled
ten minutes. They did not ask any questions until after they had got
to know one another a bit better at lunch. They were usually
deferential and always polite.
A similar seminar for 25 Americans working for Japanese
subsidiaries in America included eight women. Several of the men
removed their jackets on entering the room. A ten-minute coffee
48
break stretched beyond 20 minutes. Participants asked questions and
several aggressively contradicted what the speakers had to say.
According to Mr. Thomas Lifson of Harvard and Mr.Yoshihiro
Tsurumi of New Yorks Baruch College the two main speakers at
both seminars misunderstanding between Japanese and Americans
are managers are possible at nearly every encounter. They can begin
at the first recruiting interview. A big American company typically
hires people to fill particular slots. Its bosses know that Americans
are mobile people, who have a limited commitment to any particular
employer or part of the country. As a result, jobs are clearly defined
and so are the skills needed to fill them. American firms hire and
fire almost at will.
The assumption (and the expectations) of the Japanese
managers of Japanese subsidiaries in America could hardly be more
different. They hire people more for the skill they will acquire after
joining the company than for their existing skills.
American managers rely heavily on number-packed memoranda
and the like. The Japanese colleges prefer informal consultations
which lead eventually to a consensus. According to Mr. Tsurumi,
they find comical the sight of American managers in adjacent
offices exchanging memos.
Confronted with a dispute between middle managers, most
Japanese superior refuse to become involved expecting the
managers themselves to resolve the issue. The Americans conclude,
wrongly, that their Japanese bosses are indecisive or incompetent.
Japanese managers do not share the American belief that conflict is
inevitable, and sometimes healthy. They want to believe that
employees form one big happy family.

14. Decide whether these statements are true or false,
according to the article.

2. This article is about American companies in Japan.
3. At one seminar the Japanese removed their jackets when
they got hot.
4. The Japanese did not ask questions until after lunch.
5. At another seminar, some of the Americans were not
polite to the speakers.
49
6. Americans and Japanese are likely to misunderstand each
other in any situation.
7. American employees are very loyal to their companies.
8. Japanese companies are likely to recruit less experienced
employees.
9. The Japanese rely heavily on meetings than the
Americans.
10. Japanese managers send more memos than their
American counterparts.
11. Japanese managers solve problems without involving
their boss.

15. Keep the conversation going, using: Besides, Moreover,
And, Nevertheless, As well as
1. In order to bridge the chasm between nations we should
learn cultural assumptions of our counterparts.
2. Different nations have different ways of conducting
business.
3. Americans are known as individualists.
4. Religion has a significant impact on business operations.
5. A democratic decision-making style sometimes doesnt
work.
6. Culture presents a great hurdle for marketing.
7. Managers from different countries have different ideas how
to deal with human resources.
8. American and Japanese managers have their own ways of
resolving a dispute.


16. Read the text

GO ALONG AND GET ALONG
The Japan Societys crash course or how to bridge the chasm
between Japanese and American managers forces participants to
examine their own cultural assumptions, as well as to learn about the
other side. Behavior which Americans consider trustworthy is often
precisely that which Japanese associate with shifty characters and
vice versa.
50
To Americans, people who pause before replying to a question are
probably dissembling. They expect a trustworthy person to respond
directly. The Japanese distrust such fluency. They are impressed by
somebody who gives careful thought to a question before making a
reply. Most Japanese are comfortable with periods of silence.
Americans find silence awkward and like to plug any conversational
gaps.
The cherished American characteristics of frankness and openness
are also misunderstood. The Japanese think it is sensible, as well as
polite, for a person to be discreet until he is sure that a business
acquaintance will keep sensitive information confidential. An
American who boasts Im my own man can expect to find his
Japanese hosts anxiously counting the chopsticks after a Business
lunch. As the Japanese see it, individualists are anti-social. Team
players are sound.

17. Decide whether these statements are true or false,
according to the article.
1. American managers learn about the cultural assumptions of the
Japanese.
2. In the eyes of Americans people who hesitate have something to
hide.
3. The Japanese are impressed by careful replies.
4. Periods of silence bother the Japanese.
5. Americans are embarrassed by conversations that stop.
6. The Japanese are in favour of working in teams.

18. Complete the sentences , practicing the vocabulary:
a. I should like in particular to talk about
b. Its undoubtedly true that
c. Its widely accepted that
d. Some people believe that
e. In conclusion Id like to emphasize the fact that

19. Study the following words and word combinations and
translate the sentences given below into Russian. Consult
the dictionary if necessary.

51
mean business, none of ones business, go out of business,
businesslike, be busy with, have no business to do, be in business,
like nobodys business, mind ones own business.

1. Mother has busied herself with our affairs for too long.
2. When traveling on business I take my tiny travel kit.
3. Lets get down to business.
4. She had no business to publish his letters to her.
5. 50 % of these stores were not in business five years ago.
6. They are working away like nobodys business.
7. Umbrella sellers went out of business.
8. Stop teaching me! Its none of your business.
9. Listen to me! I mean business!
10. The visit to the Copenhagen was brisk and businesslike.

20. Dialogue (Unit 13 Keys to management p. 164)

A German executive is about to be transferred to a subsidiary
company in England.
Listen to the following conversation, in which an English
colleague tells him what to expect when he gets there.
DAVID I suppose I'd better tell you something about the English
now. I'd say you'll find your English colleagues fairly easy to get on
with and pretty tolerant. Oh, by the way, dont expect to start work
too early. Quite honestly, it's usually 9.15 a.m. before much happens
in an English office.
KARL I'm glad you told me that. As you know, we start a lot
earlier here.
DAVID Right, so I thought I'd better warn you. Don't get to the
office too early on your first day - you probably won't even find the
building open!
KARL OK. You were telling me about the people...
DAVID Oh yes. You may well find them, er, a bit reserved at first.
They may not be too friendly to begin with. And they sometimes
seem to be a bit... er ... cool towards foreigners.
KARL I see. Then I mustn't expect to be invited to dinner during
the first week.
DAVID And I wouldn't bank on an invitation in the first month,
either!
52
KARL Really?
DAVID Yes, I'm afraid so. But, mind you, once they do get to
know you, English people are very hospitable. They really put
themselves out for you.
KARL And when I go to their home, should I take a gift? A bottle
of
schnapps, perhaps?
DAVID No, I wouldn't do that if I were you. Flowers would be safer.
You never know, your host might not drink alcohol. Then you'd start
the evening off on the wrong foot.
KARL Yes, I certainly wouldn't want to ... how do you say ... put
my foot in it. Ha, ha!

21. Render the following into English:





.
.
, ,

. , ,

.
,
.
.
,
.
,
. ,
.
, , ,
.

.
. ,
53
.
-,
.
54
Management in multinationals

1. Discussion

Study the following examples of mistakes that people have
made when doing business abroad and then answer the questions
below each one. When you have finished, compare your answers
with those given in the key.
A An American airline company operating in Brazil advertised
proudly that it had luxurious rendezvous lounges on its jets. The
advertisement upset many people in Brazil. Can you suggest why?
B Some time ago an American company in Spain decided to have a
company picnic such picnics had been successful at their
headquarters in the US. At the picnic in their Spanish branch, the US
executives dressed up as chefs and served food to the Spanish
workers in the company. The idea was to promote friendly relations
between executives and workers. The atmosphere at the picnic was
not good, and the picnic was not very successful. Can you guess
why?
C This advertisement appeared in magazines and Quebec, Canada.
A woman, dressed in shorts, could be seen playing golf with her
husband. The caption said that housewives could have an enjoyable
day on the golf course and still quickly prepare a delicious evening
meal by serving the advertised canned fish. The advertisement was
totally inappropriate for the Quebec market. Do you have any idea
why?
D A manufacturer of cosmetics wanted to break into French market.
It decided to use chain stores to distribute its goods because (i)
marketing and distribution costs would be decreased and (ii) its
goods would be given plenty of shelf space. This approach was
disastrous for the company. Why do you think this was?
E A foreign buyer negotiated with a Japanese businessman. During
the negotiations, the Japanese man sat back in his chair times,
maintaining complete silence. When the foreign back to his hotel, he
ealize he had paid too much for the goods supplied by the
Japanese man. Why did this happen?
F A foreign businessman had been negotiating a deal in England.
When he got back to the hotel, his boss phoned him. How did it
go? asked the boss.
55
Just great, replied the foreign businessman. I made several
proposals to the Englishman and he kept shaking his head up and
down he obviously agreed with everything I said. What mistake
has the foreign businessman made? And why?
(Discussion Keys
A. Many people in Brazil were upset because the word
rendezvous in Portuguese means a room which is hired
for love making!
B. The picnic did not improve the relations between the US
managers and the Spanish workers. The lower level
workers stayed in their own groups and did not want to
be served by their bosses. The Spanish have strong views
on class distinctions and social groups. Many Spanish
people do not believe in workers socializing with
executives.
C. The advertisement did not truly reflect French-Canadian
life and customs. It was not usual for wives to play golf
with their husbands. Nor was it socially acceptable, at a
high-class golf course, for women to be seen wearing
shorts. Finally, French-Canadians did not serve that type
of fish as main course at dinner.
D. The US manufacturer did not consider local distribution
characteristics. In France, most cosmetic manufacturers
give franchises of their products to a few local retailers,
known as perfumers. These are mainly small shops, but
they have a lot if influence in the perfume trade, and on
customers. It is important for a manufacturer to have
good relations with these perfumers if its cosmetic
products are to sell well. Because it ignored these
important outlets, the companys marketing approach
failed.
E. The foreign buyer did not understand the behaviour of a
Japanese person when negotiating a deal. A Japanese
businessman will often sit back and think for some time
when he is made an offer. The foreign buyer did not
ealize this and thought he had to make a better offer.
F. When an Englishman shakes his head up and down, this
does not always mean that he agrees with the other
56
person. It could simply mean that he hears you or
understands the point you are making.)

2. Reading

MANAGEMENT IN MULTINATIONALS

If asked to define a multinational, most people would say that it is
a company doing business in more than one country. Many experts,
however, would not be satisfied with this definition. They believe
that it does not indicate the size and scale of the multinational's
activities. To be a 'true' multinational, they say, an organisation
should operate in at least six countries and have no less than 20% of
its sales or assets in those countries. In addition, it should think
internationally. That is to say, the management should have a
'global perspective'. It should see the world as inter-related and
inter-dependent.
An example of this global approach is provided by the Massey
Ferguson company. Its tractors are assembled from parts made in
several countries. As one of their executives says, 'We combine
French-made transmissions, British-made engines, Mexican-made
axles and United States-made sheet metal parts to produce in Detroit
a tractor for sale in Canada.'
The size and international organisation of some multinationals is
impressive. The larger enterprises, like IBM, British Petroleum and
Mobil Oil, have subsidiaries in sixty to eighty countries. Some, like
Heinz, Singer and Exxon, get more than half their profits from
overseas business.
Some economists have estimated that, by the year 2000, about
200 to 300 multinationals will be providing half of the world's total
goods and services.
Because of their global approach, multinationals often make
decisions which are against the interests of their host countries.
They may decide, for example, to close down the plant in Country A
because they wish to concentrate production in Country B.
Obviously, this will be an unpopular decision in Country A. The
government of that country will probably put pressure on the
multinational to change its mind. Multinationals are criticised by
foreign governments for other reasons. Sometimes, a subsidiary in
57
one country will supply another subsidiary with cheap - or below-
cost products. This happens when a subsidiary has just started up
in a country. The other subsidiary will help it to get on its feet.
Difficulties often arise when a multinational wishes to transfer its
earnings back to Head Office. The host country may feel that the
transfer will have a bad effect on the exchange rate of its currency it
may want the multinational to re-invest profits in the business. The
interests of multinationals and foreign governments frequently clash.
This can lead to friction between the two sides, and even bitterness.
The list of complaints against multinationals is a long one. As a
result, many countries have tried to restrict their operations. Some,
such as Nigeria and India, have said that a certain percentage of the
equity of the foreign company must be owned by local investors.
Other countries insist that a percentage of the managers of the
multinational must be local staff.
Multinational managers will spend much of their time working
overseas. They will, therefore, be living and working in a strange
environment. They will have to deal with people who have a
different language, customs, religion and business practices. They
will find that they cannot do things the way they did at home.
In a book entitled International Business Blunders, the authors
give some examples of what happens when managers do not take
foreign conditions into account. They describe, for example, how an
American company sent sewing-machines to a developing country.
Unfortunately, the machines became rusty because the natives drank
the lubricating oil. They believed it to be a fertility potion! In
another example the authors describe how an American manager in
Japan offended a very important Japanese executive because he did
not show the executive enough respect. The two men had met first
in the Japanese man's office. This was small and had little furniture
in it, so the American assumed the other man was a low-level
executive. He did not realise that, in Japan, a top executive does not
necessarily have a plush office.
Managers working abroad need various skills. Clearly, it is a
great advantage if they know the language of the country they are
working in. But this is not the most important requirement. A recent
study has shown that they need, above all, these qualities: human
relations skills, an understanding of the other culture and the ability
to adapt.
58
Human relations skills are vital because, to be effective, the
manager must persuade local staff to cooperate with him. In the
study mentioned above, some Asian executives described how they
felt about American managers, after working with them for some
time. The executives were from Taiwan, the Philippines and India.
They suggested that the American managers sometimes had an
attitude of intellectual and cultural superiority. They seemed to be
'know-it-alls'. And they tried to impose their way of life on local
workers. The Americans needed to lose those attitudes. They had to
be more willing to learn from their fellow workers, and to treat them
as 'partners'. Differences in culture are important when a manager
is negotiating in a foreign country. For instance, many Europeans
and Americans like to get to the point quickly when negotiating.
This is not so in some countries, like Brazil, where people prefer to
beat around the bush more. They take their time, trying to create a
relationship of trust. In such countries, the European or American
manager must be patient, or else he will come away from a deal
empty-handed. In Japan, there are often long silences during
negotiations - especially if things are not going smoothly. European
and American executives tend to react in the wrong way when this
happens. They make a concession or talk in an over-eager way, so
that they lose ground in the discussions.
Finally, those working abroad must remember that a deal is not
always a deal. In some countries, a person may say 'yes' to proposal
simply to be polite, or agreeable. Even written contracts, in some
areas, may not be worth much.

3. Understanding the main points

1 In the opinion of experts, what are the two factors indicating
that a company is truly a multinational?
2 Why might a foreign government object if a subsidiary of a
multinational in one country supplies a subsidiary in another
country with below-cost products?
3 What must a multinational do if it wishes to have a subsidiary
in Nigeria?
4 What do you think the aim of the book International Business
Blunders is?
59
5 Why did the Asian executives criticise their American
managers?
6 How might an unfamiliarity with Japanese culture put
European businessmen at a disadvantage in Japan?

4. Vocabulary focus

Explain the meaning of the following words and phrases.
Assets, close down, put pressure on, started up, get on its feet,
earnings, friction, equity, offended, get to the point, beat around the
bush, empty-handed


5. Complete the following passage, using suitable words from
the box below.

agreement equity stalemate
compromise (verb) inflexible deadlock
concession investment withdraw
counter-proposal(s) negotiate pull out
deal shareholding


Many countries, such as Nigeria and India, are trying to get more
control over their economies. They welcome foreign.....................
(1) but insist that their own nationals own a percentage of the
foreign company's ..................... (2). The size of the .....................
(3) varies, ranging from 20% to 60%, though
it can be higher or lower.
When governments try to increase their nationals' equity
shareholding, foreign companies are not pleased. Generally, they try
to ..................... (4) with the government to keep the percentage as
low as possible. They argue and haggle, make proposals and
..................... (5), to persuade the government to
give way and make some kind of..................... (6). If the foreign
company employs many local people, or earns a lot of foreign
currency, the government may be willing to ..................... (7).
Some governments are very ..................... (8) and will make no
60
concessions. In this case, the negotiations end in a..................... (9),
with neither side giving way. The foreign company ends up by
..................... (10) from the country. This usually leads to feelings of
great bitterness on both sides. No company wants to leave a country.
In general, the foreign firm
will make every effort to reach ..................... (11) or make some sort
of..................... (12) with the host government.


6. Idiomatic uses of foot/feet
Study the following list of expressions. If necessary, check
their meaning in a dictionary.
get on its feet
get back on one's feet (again)
get a foot in the door
fall on one's feet
have/get cold feet
put one's foot down
put one's foot in it
have a foothold in

7. Rewrite the following sentences, replacing the words in
italics with the correct forms of the expressions above.
1 The management has acted firmly concerning smoking in the
factory.
2 We don't have a contract with them but we've taken the first
steps towards getting one.
3 I was laid off in January but I was really lucky because I found
an even better job a month later.
4 I made a bad mistake when I told our Marketing Director that
the new product would fail.
5 For some time, we were planning to enter the US market. Then
at the last moment, we lost our nerve and decided not to.
6 The group of department stores made losses for three years
running. However, now it has recovered.
7 It took three years' hard work, but at last we've got a secure
position in the Japanese market.


61
8. Idiomatic uses of mind
change its mind

A. Complete the following sentences with suitable words.
1. Companies sometimes have difficulty ..................... up their
minds which market to enter.
2. We are in ..................... minds whether to set up a subsidiary in
West Germany. We're not sure if sales will be large enough.
3. Our agent's results have been disappointing but we must
..................... in mind that he's only been handling our goods
for eighteen months.
4. ..................... my mind, overseas postings upset one's family
life.
5. Our Chairman's a bore. He goes on and on about exports. I
reckon he's got a ..................... -track mind!
6. When you work in a foreign country, you've got to
be..................... -minded and respect the opinions of the people
living there, even if you think those people are rather intolerant
and ..................... -minded.
7. I'm not really happy working in the Personnel Department. I've
a ..................... mind to ask for a transfer.
8. When my boss was sent to Hong Kong, it never
.....................my mind that I would be asked to replace him.

B. Working in groups of two or three, discuss the meaning of
the words in italics in the following sentences.
1 We've had little success in the Saudi Arabian market. Mind
you, it's a tough one to break into.
2 I've forgotten to send off those letters. Never mind! I'll post
them first thing tomorrow morning.
3 Efficient secretaries are rarely absent-minded.
4 This is the third time this week Jean has been late for work.
I'm really going to give her a piece of my mind.
5 That sales presentation I've got to give - you know, it's been on
my mind all week.

9. Multinationals are criticised by foreign governments for
other reason.
And they tried to impose their way of life on local workers.
62
The words or phrases listed below can be followed by of, to, for or
on.
Working in pairs, decide which preposition follows each one. (v. =
verb, n.=noun, sb.=somebody)
criticise (sb.) gamble (v.)
focus (v.) succeed
responsible approve
agree accuse (sb.)
praise (sb.) chance (n.)
congratulate (sb.) in favour
famous object (v.)
set one's heart think

10. Rewrite the following sentences without changing
their meaning. Use the words and phrases above and make
any other necessary changes.

e.g. Susan's job is to order supplies. (responsible)
Susan is responsible for ordering supplies.
1. Some people have said that multinationals do not train
enough local staff.(criticised)
2. 'Today, we shall pay special attention to the problems of
multinationals,' said the television presenter.(focus)
3. Their proposal was unacceptable to us.( agree)
4. IBM make high-quality products and give good service, as
everyone knows.(famous)
5. Because of his actions several local firms have gone
bankrupt. (responsible)
6. I am absolutely determined to work in our Los Angeles plant
for a year or two.(set ones heart)
7. Is it all possible for you to be transferred abroad? (chance)
8. We are taking a chance, hoping that host government will
make concessions.(gamble)
9. Some governments cannot accept the fact that multinationals
dominate key industrial sectors. (object)
10. They were able to persuade the government to offer more
favorable conditions. (succeed)

63
11. Finally, make your own sentences using the following
words or phrases followed by the correct prepositions.
Praise think congratulate approve accuse in favour

12. Situation

You work at the head office of a multinational which has
subsidiaries or sales offices in over sixty countries. Your
organisation has recently created an Overseas Briefing Department,
whose purpose is to prepare staff for overseas postings and to give
them information about the countries they are going to.
When several executives are about to be transferred to an overseas
subsidiary, the head of the department tries to find someone at Head
Office who has special knowledge to hold a briefing session on the
country concerned. The head of the department says to the person:
'Just tell them the sort of things they ought to know, which will
make life easier for them when they first arrive in the country. You
know, things such as what kind of people they'll be meeting, what to
do if their boss invites them to dinner, tips about suitable clothes to
wear at the office. Anything that'll help them adjust or stop them
from making fools of themselves - you know what I mean.'
The head of the department ends by reminding the person giving the
briefing that most employees at overseas subsidiaries are local
nationals.

I nstructions
Work either individually or in small groups.
First, prepare notes on your own country or a country that you know
well. (If necessary, use your imagination!)
The other members of the class should play the roles of the
executives going to the overseas subsidiary. They should ask
questions both during and after the talk.
64
INTERNATIONAL TRADE
1. Read the text.

IMPORT AND EXPORT

An import/export transaction usually requires a lot of
complicated documentation. Many different arrangements have to
be made and this can be difficult when one firm is dealing with
another firm on the other side of the world. Many Specialists may
he involved, including:
1. A shipping agent and/or a freight forwarder (forwarding
agent) who takes responsibility for the documentation and
arranges for the goods to be shipped by air, sea, rail or
road. These services may also be carried out by the
supplier's own export department, if they have the
expertise.
2. Airlines, shipping lines, roadways or road haulage firms to
transport the goods.
3. Both the importer's and exporter's banks will be involved
in arranging payments if a letter of credit or bill of
exchange is used.
4. Customs officers, who may examine the goods, check
import or export licenses and charge duty and/or VAT.
5. The manufacturer or a Chamber of Commerce to issue a
Certificate of Origin, if this is required by the importer's
country.
6. An insurance company or insurance broker to insure
goods in transit.
7. An export credit insurance company (such as Hermes in
Germany).
8. A lawyer if a special contract has to be drawn up.
Different documents may be needed, for example:
- Bill of Lading - Dangerous Goods Note
- Sea Waybill - Air Waybill
- Shipping Note - Certificate of Insurance
65
Many of these documents can be replaced with computerized
procedures. Standard 'aligned' export documentation is also used:
the required information entered on a single master document and
then photocopied to produce all the required documents.
Many import or export deals are arranged through exporter's
agent or distributor abroad - in this case importer buys from a
company in his own country and this company imports the goods.
Alternatively the deal may be arranged through an importer's
buying agent or a buying house acting for the importer, or through
an export house based in the exporter's country. In this situation,
the exporter sells directly to a company in own country, who will
then export the goods.
Prices for exports may be quoted in the buyer's currency, the
seller's currency or in a third 'hard' currency. The price quoted
always indicates the terms delivery, which conform to the
international standard Incoterms. The terms of delivery that are
most common depend on the kinds of goods being traded and the
countries between which the trade is taking place.
INCOTERMS
CFR This price includes Cost and Freight, but not insurance, to a
named port of destination in the buyer's country.
CIF This price covers Cost, Insurance and Freight to a named port
of destination in the buyer's country.
CPT The cost and transportation of the goods, Carriage Paid to a
named destination in the buyer's country.
CIP The cost and transportation of the goods, Carriage and
Insurance Paid, to a named destination in the buyer's country.
DAF The cost, insurance, and transportation of the goods Delivered
At Frontier.
DES The cost, insurance and transportation of the goods Delivered
Ex-Ship.
DEQ The cost, insurance and transportation of the goods, unloaded
from the ship and Delivered Ex-Quay.
DDU The cost, insurance and transportation of the goods
Delivered Duty Unpaid to the buyer.
DDP The cost, insurance and transportation of the goods
Delivered Duty Paid to the buyer.
66
EXW This price is the Ex-Works cost of the goods. The buyer
arranges collection from the supplier and pays for freight
carriage and insurance.
FCA The Free Carrier price includes all costs to a named point of
loading onto a container. The buyer pays for onward shipment
and insurance.
FAS This price includes all costs to a named port of shipment
Free Alongside Ship. The buyer pays for loading, onward
shipment and insurance.
FOB This price includes all costs of the goods Free On Board a
ship (or aircraft) whose destination is stated in the contract.
The buyer pays for onward shipment and insurance.
Methods of payment may be on a cash with order basis (or
cash deposit with order), on open account (as in most domestic
trade, where the buyer pays the supplier soon after receiving the
goods), by irrevocable letter of credit or by bill of exchange.
Exporters and importers often prefer the security of payment by
confirmed irrevocable letter of credit when dealing with
unknown firms in distant countries.
Trade between countries within a free trade area and within
the European Union is simpler, and many firms pay for goods by
cheque and use their own transport to deliver goods across
frontiers. No special customs documentation is required for trade
between firms in different parts of the EU, but VAT rates vary
from country to country.

2. Read the article taken from the Financial Times. Render
it in English.

PROFILE: BARCO FROM BELGIUM

1 After three years travelling around Asia as head of BARCO's
activities in the region, Joost Verbrugge is convinced that India is
one of the most exciting long-term market opportunities in the
world and one of the most complex. Since 1994, BARCO, best-
known for its digital projectors for computers, has gone from a
relatively low level of exports to India to selling about BFr*
67
200m of products there a year, half exported from Europe, half
assembled on the spot*. That is a small but significant part of its
total BFr 23bn turnover last year.
2 Expansion in India has taken place at the same time as a shift in
BARCO's strategic focus, and its emergence* as one of Belgium's
fastest-growing companies.
3 Created in 1934 as the Belgian American Radio Corporation, the
company moved out of consumer products in the 1980s. It
concentrated instead on high- value niche markets such as
computer projectors and specialist display systems.
4 From its base in Kortrijk, Flanders - Belgium's Dutch-speaking
region - it has exported to India for more than a decade, originally
selling kits for video monitors to the national television station,
through local agents. Four years ago, it set up its own sales and
services office in New Delhi.
5 It now has a smaller sales office in Bangalore, a software house
in Chennai and a projector assembly plant in Noida, near New
Delhi. Having invested about BFr 100m, and now employing 150
people in India, it plans a further sales office in Mumbai and a
components factory in Noida. 'That is quite a lot for a small
company like BARCO,' says Mr. Verbrugge. 'It's mainly
investment for the future. The market is partly there now, and we
are convinced it will definitely be there in a few years.'
6 But for those wanting to exploit the potential*, obstacles remain.
Although India has made efforts to open its economy in recent
years, Mr. Verbrugge says it remains more closed than other fast-
growing markets such as China when it comes to bureaucracy,
import duties and lax barriers.
7 'It is not unusual to have import duties of 40% on things that you
would consider normal working tools, like a printer for a PC,' he
says. 'As well as the high import duties, you have a famous or
should I say infamous - bureaucracy.' This can have important
practical effects. Mr. Verbrugge says that BARCO would like to
assemble more of its products within India, but this would mean
importing components* from 20 different countries, creating
huge amounts of paperwork and delays.
8 Although India is welcoming to foreigners, Mr. Verbrugge says
there are also cultural hurdles which can initially be deceptive.
'On a first visit India seems easier than China or Japan because
68
people speak English. Only after you start operating there do you
see all the complexities. There are sensitivities between states,
between religions, between strata* of society.' Such differences
also make the country fascinating. "India is a hundred different
worlds living next to each-other in the same country,' Mr.
Verbrugge says.
9 These practical and cultural complexities were largely behind
BARCO's decision to set up its own sales office in the
subcontinent. 'Much more is needed than just having an agent
with a fax and a phone. You have to understand the marketplace,
how Indian business works.'
10 But the opportunities presented by India outweigh* any
disadvantages. 'If you can afford to miss a fifth of the world's
population, you can afford not to be there,' says Mr. Verbrugge.
"1 think any company serious about having a worldwide market
share can't be absent from India.'
BFr: Belgium Franks
'on the spot: in the place mentioned
'emergence: appearing for the first time
'potential: possible opportunities
"a component: a part used to make s.th.
'strata: levels
'to outweigh: to be more important than


3. Suggest Russian equivalents to the following:

To be one of the most exiting long-term market opportunities, a
relatively low level of exports, to be assembled on the spot, a shift in
a strategic focus, an emergence, to concentrate on high value niche
markets, to set up ones own sales and services office, a software
house, an assembly plant, to exploit the potential, deceptive cultural
hurdles, to outweigh any disadvantages.

69
4. Read the following excerpts from Weighing Costs and
Benefits by Matthew Lynn, part of a cover story on
Japanese industry in Europe in International
Management. Then answer the questions that follow.
Japanese manufacturers bring welcome jobs and know-how. But
the benefits have to be weighed against the cost to European
companies staying competitive.
The motor industry, Europes largest manufacturing sector,
has become a test bed for the impact of Japanese industrialists on
Europe.
Nissan decided as long ago as 1984 to build a car plant in the UK. It
was swiftly followed by rivals Toyota and Honda. But it has taken
until now for the effect to be felt. Last year more than 200,000 cars
rolled off the Nissan assembly line in Sunderland, helping to push
the Japanese share of the European car market to 12.3% (1.6million
cars) from 11.7% in 1990. The cars are being made in plants where
an output per worker is twice as European average hence the shake
out in the industry.
For champions of Japanese investment in Europe this is a sobering
thought. The
prospect of job creation was a key argument in favor of giving
generous subsidies in order to encourage Japanese manufacturers to
come to Europe. So far, Japanese carmakers have created 11,775
manufacturing jobs in their European factories in the UK and Spain.
More are expected as plants are expanded.
But more may be lost at European carmakers squeezed by
Japanese competition. It is quite possible there will be a net loss of
jobs,' says Mark Cliff, chief economist at the Nomura research institute
in London.
. . . The Japanese are simply more productive than the Europeans,
partly because they use more advanced manufacturing techniques,
and partly because they are starting from scratch on greenfield sites,
unencumbered by old plant and traditional attitudes.
Big reductions in the labor force are also the price of productivity gains.
When Opel, which is owned by General Motors of the U.S., opens its new
site near Eisenach, east Germany, it will produce 150,000 cars a year
with about 2,000 people. The town's old Wartburg plant employed 9,000
people to turn out fewer than half that number of vehicles.
70
. .. Workers laid off from car plants are unlikely to find jobs in newer
more productive industries. Many will join the ranks of the long-term
unemployed, draining resources from the rest of the economy.
Opponents of Japanese manufacturing investment in Europe claim
that their factories are just screwdriver

plants assembling
components made in Japan. If so, the effect would be to transfer work and
wealth out of Europe.
Many of the Japanese manufacturers in Europe are responding
to this criticism by increasing local content. Toyota says that when cars
start rolling off its new UK assembly lines 60% of the value will be
European, rising to 80% by the middle of the decade.
However, the largest survey of Japanese manufacturers in Europe,
carried out annually by the Japan External Trade Organization
(Jetro), suggests that the screwdriver mentality dies hard. Most
manufacturers told Jetro that their local content was staying the same
or being reduced. The reason given was poor performance on the
part of European suppliers. The upshot is that local content figures are
unlikely ever to match those of the European manufacturers being
replaced by Japanese competitors.
Not all local suppliers fall short of Japanese expectations.
Yoshio Yamaguchi, a director of Mitsubishi, says most Japanese
electronics manufacturers in Europe are wrestling with two major tasks:
to attain world competitiveness and to enhance local content. But he
admits that 'most of the time, those two tasks contradict each other.
While the job-creating impact of Japanese investment in Europe is
open to question, it does have two clear-cut benefits. One is that
Japanese investment will reduce Europe's trade imbalance with Japan.
The other is that importing more sophisticated manufacturing
techniques can be a catalyst for revitalizing moribound European
industries.
1. List the costs and benefits of Japanese investment in
Europe?
2. How do opponents of Japanese manufacturing investments
in Europe feel about their factories?
3. How do the Japanese manufacturers in Europe respond to
this?
4. What are the two, often contradictory tasks that Japanese
companies need to focus on?

71
5. Complete one of the following activities.
1. You work for the multinational company --------- (name of
company),
and you have been asked to prepare an executive summary, 200-250
words, explaining and recommending action to your CEO (Chief
Executive Officer) on a site for a new plant. Your executive summary
should include (a) the area or areas under consideration, (b) the good
and bad points, or pros and cons, of the area(s), and (c) your
recommendation on what to do or where to go.
2. You work for a local company that has supplied parts to a local
manufacturer that has shut down its plant. A multinational company
is
preparing to build a factory in your city. Write an executive summary
to your CEO (Chief Executive Officer) on what should be done to get
the parts business of the multinational. Your executive summary
should include (a) the various choices your company has, (b) the pros
and cons of each choice, and (c) your recommendation on which
choice should be made and how it should be implemented.
72
Communicating in writing
1. There are nine important parts in a typical 'standard' business
letter (Senders address, Date, Receivers name, title and
address, Salutation, Body of letter, Heading, Signature,
Complimentary Close, Name and title of sender)- the example
that follows shows these parts. Many firms use their own
'house style' which their staff are expected to follow, and
which may not he quite the same as this example.
Our company's name
This building
95 New Edition Road
Cambridge CB2 2RU
United Kingdom

A. Reader 7 May
General Manager
International Business English plc
Page 000
Background information 6A2 1LJ
Dear Mr. or Ms Reader,

Different ways of communicating in writing
In a LETTER, the emphasis is on a high quality appearance. Letters
have to be typed or word-processed accurately on the company's
headed paper with a smart, clear layout. International mail tends to be
slow and in some countries the post is unreliable. Important documents
or valuable items can be sent by registered mail - or they can be sent
by courier.
A FAX is a facsimile copy of a document which is transmitted by
normal telephone lines to another fax machine. Some faxes are exactly
like letters, some are printed on special fax forms rather like memos,
others are simply handwritten messages. The sender of a fax can't be
certain if the message has been received perfectly - sometimes lines get
missed or are illegible. A fax is not usually a legally binding
document.
EMAIL (electronic mail) is a way of sending messages between
computers. The message appears on a screen and can be printed out if
necessary. To make email more 'personal ' some people use
punctuation to add happy { : - ) or unhappy { : - ( faces to their
messages!
73
In a TELEX readers often overlook some errors of spelling and
grammar. Abbreviations such as TKS (Thanks) and RGDS (Regards)
are common in telexes. The sender knows when each telex has been
transmitted and received. A telex can be a legally binding document.
Internal mail within a company or between branches of the same firm
is usually in the form of MEMOS: these may be brief handwritten
notes or longer, word-processed letters. Most firms use special memo
pads for internal messages. A memo to a senior English-speaking
member of staff may need as much care as a letter to a client. The style
that is used depends on the practice within the company and on the
relationship between the people involved.
Yours sincerely,
Leo Jones and Richard Alexander
2. Highlight the ideas in this extracts from a training manual
that you think are most useful.

GOLDEN RULES for writing letters (including faxes and
memos)

1. Give your letter a heading if it will make it easier for the
reader to understand your purpose in writing.
2. Decide what you are going to say before you start to write or
dictate a letter, because if you dont do this the sentences are
likely to go on and on until you can think of a good way to
finish. In other words you should always plan ahead.
3. Use short sentences.
4. Put each separate idea in a separate paragraph. Number each
of the paragraphs if it will help the reader to understand
better.
5. Use short words that everyone can understand.
6. Think about your reader. Your reader
must be able to see exactly what you mean: your letters
should be CLEAR
must be given all the necessary information: your letters should
be COMPLETE
is probably a busy person with no time to waste: your letters
should be CONCI SE
must be written in a sincere, polite tone: your letters should be


COURTEOUS
74
should not be distracted by mistakes in grammar, punctuation
or spelling: your letters should be CORRECT
(a dull or confusing layout makes a letter difficult to read)

Planning a letter: 7 Steps
1. Write down your Aim: what is the purpose or this letter?
2. Assemble all the relevant information and documents: copies of
previous correspondence, reports, figure, etc.
3. Arrange the points in order of importance. Decide which points
are irrelevant and can be left out. Make rough notes.
4. Write an Outline in note form. Check it through considering
these questions:
Have you left any important points out?
Can the order of presentation be made clearer?
Have you included anything that is not relevant?
5. Write a First draft, leaving plenty of space for changes and
revisions.
6. Revise your first draft by considering these questions:
Information: Does it cover all essential points?
Is the information relevant, correct and complete?
English: Are the grammar, spelling and punctuation correct?
Style: Does it look attractive?
Is it clear, concise and courteous?
Will it give the reader the right impression?
Is it the kind of letter you would like to receive yourself?
7. Write, type or dictate your final version.

3. Here are some paragraphs with very short sentences. Join
the sentences together to make one or two longer sentences,
using and, other conjunctions or adverbial phrases. The first
is done for you as an example.

1. There was a technical problem. The assembly line
stopped. The workers were sent home early.
The workers were sent home early when the assembly line stopped
due to a technical problem.
2. Your letter to us was posted yesterday. Our letter to you was
posted yesterday. The letters crossed in the post.
75
3. Our company has a long tradition. Our letters look old-
fashioned. We are trying to modernize the company's image.
All our correspondence should be word-processed.
4. Short sentences are easy to write. Short sentences are easy to
understand. Long words can be confusing. A simple style of
writing letters is recommended.
5. A letter should have a personal touch. People like to be treated
as individuals. It is unwise to use a style that is too informal with
people you don't know very well.

4. Rewrite these sentences beginning with the words
shown. Again, the first is done for you as an
example.
1. The reason why he applied for a job abroad was to earn more
money. So that he could earn more money, he applied for a job
abroad.....
2. A single person couldn't lift the package because it was very
heavy.
The package was so

3. The order arrived late but we were able to supply the goods on
time.
Although

4. There was fog at the airport, but our plane landed safely.
In spite of
5. As there was a mistake in the hotel booking, I had to find
another hotel.
Because of
.
6. The reason why I sent them a fax was to give them the
information at once.
In order to
7. Because there has been an error in the shipping department,
their order will have to be checked again.
Due to .
8. During the time we've been talking, my assistant has handed me the
file,
76
While
.
5. Join the two halves of these sentences so that they make good
sense.

1. I never sign a letter
2. I often choose to
write
3. I usually telephone
4. Please check my in-
tray
5. I shall be able to
confirm this
6. I shall be able to
confirm this
7. We cannot confirm
the order
8. Please reply at once
9. Please reply as soon
as possible
although a phone call is
quicker. after I have checked
our stock position.
before I have read it
through.
in order to save time.
because we do not have
sufficient stocks.
until we have checked our
stock position.
while I am away at the
conference,
so that we can order the
supplies we need.
when I have consulted our
works manager.


6. Read the e-mail and correct the twenty-five grammatical
mistakes.
GREETI NGS FROM SAN - FRANCI SCO
Hi Virginia and Lena,
Sorry I haven't been in touch recently. I've been intending
writing to you for ages, but I've been so busy studying for my
exams that I don't have time to do anything else for weeks now.
I really am fed up for it!
However, as soon the exams are over, I'm planning spending
a couple of weeks on a beach somewhere. Because of I've been
studying so hard, I haven't been having time to go out and I've
managed to save up a bit of money. I'm thinking to go to
Thailand actually. You had both been there, didn't you? Do you
remember the names of any cheap hotels in Bangkok, and is it
good idea book a room before I go? Do you think is two weeks
enough time to see the place?
77
Despite the exams, I am still really enjoying to be here in San
Francisco. It's great city with lots to do. It's really clean, relaxed
and very cosmopolitan. There are some excellent shops and the
most things are much cheaper than back home. My apartment
overlooks the bay and you can see the Golden Gate Bridge and
Aicatraz, the famous prison, from my bedroom window. I have
visited the prison a few days ago actually. Everything there is
exactly the same as; the day they stopped to use it as a prison.
Did you to know the gangster Al Capone was spending ten
years there? Apparently, worst thing about being there was that
in the evenings, they would be able to hear laughter and parties
from the mainland. With all the work I do at the moment I'm
knowing that feeling!
Anyway, time to do more studying - if only I worked harder
earlier in the course! Please write back soon and tell me ail the
latest news. I miss you lots.
Love,
Marcella

7. Read, translate and compare two messages. What are the
differences between the two?

Vince's bike
1. Message:
Hi Bren!
Had a terrible day yesterday - someone nicked my bike! I
locked it up outside work as usual. After work I went to the pub
with Steve (my boss) and Roger (a colleague) for a few beers. I
headed off at 7ish because I didn't want to ride home too drunk.
When I got back to where I'd left my bike, I found it had gone.
At first I couldn't believe that someone had nicked it, but when
the penny dropped I went bananas. I went straight to the local
police station to let them know but I had to wait for ages. A
policewoman eventually saw me after 45 mins and took down
the details. She said there was no way they'd find whoever had
nicked it, but they did offer to put me in touch with a victim
support group! Anyway, I've written to the insurance company
and I hope they'll pay up soon 'cos I need a bike to get to work.
Anyway, such is life. Hope life with you is better - e-mail soon,
Vince
2. Dear Sir/Madam,
78
I am writing to inform you that my bicycle (frame no. TTJ
58394751) has been stolen and to make a claim on my
insurance policy (ref: VD/29684AA). As requested, I have
provided a report of what happened below.
The theft occurred on Thursday 5th June between 9.00 am
and 7.00 pm. My bike was securely locked outside my
workplace (106 Piccadilly). I realized that the bicycle had gone
when I returned from a social event with work colleagues at
approximately 7.00 pm. As soon as I realized what had
happened I went directly to the local police station and reported
the incident. The police constable provided me with a crime
reference number (CD346300), although she informed me that
it was extremely unlikely that the thief would be caught.
I would appreciate it if you would process my claim as quickly
as possible as I require a bicycle to travel to and from work.
Yours sincerely,
V. A. Desmond
Vincent A. Desmond

8. Writing We think you will agree that this letter doesnt make
very good impression on the reader. Decide what parts can be
improved to give a better impression on the reader. Rewrite
the letter in your own words. Compare your version with
the letter of your group mates.
Dear Mr. Brown,
What an unexpected pleasure to hear from you after all
this time! We thought yiu must have forgotten us since
you placed your previous order with us two years ago.
May I take this opportunity of enclosing for your
attention our new catalogue and price lists. One of the
things youll probably notice is that all the prices have
gone up by 15 % since your last order but still, never
mind, everyone elses have gone up too even yours I
expect! Nevertheless, for your current order, we shall be
delighted to supply you at the old price, so youre quite
lucky.
Oh, and another thing, I nearly forgot: you can contact
us by fax if you feel like it. The number is 998765, all
right?
So, there we are, nice to be writing to you again.
Yours faithfully, A.Burk
79
Supplementary tasks
1. The global company

Before you read discuss these questions:
1 Can there be such a thing as a 'world car'? Or should cars be designed
to suit the tastes of different markets? What are the financial and
marketing implications?
2 Which do you think is better for an international company - strong
central control of international operations or decentralized decision-
making? Does it depend on the business the company is in?
Reading tasks:
9. Read the text about two car companies' global
strategies and say which of these statements apply to
Ford and which to Honda.
a) now has a strategy of decentralisation
b) now works in multi-disciplinary teams for car design and
development
c) has always worked in multi-disciplinary teams
d) produces more cars abroad than in its home country
e) used to be very decentralised
f) used to be very centralised
g) has divided the world into four regions
h) designs and develops all its small cars in Europe
i) has always been flexible and able to respond to change
10. According to the ideas in the text, why do car
companies now need to have a global strategy?
11. How did the two companies change their
strategies?

How the text is organised
1. These phrases summarise the main idea of each
paragraph of the text. Match each phrase with the correct
paragraph.
2. one reason for changes in Honda's strategy
3. Honda's original strategy
4. Ford's new strategy
5. Conclusion
6. Honda's new strategy
7. Ford's original strategy
80
8. the advantage of Honda's original strategy
9. introduction
10. Ford's new strategy in detail
11. another reason for Honda's new strategy

The global company
Case study: Ford and Honda
Haig Simonian on two car groups' different routes to the global
market
1. Rising costs and the worldwide spread of shared tastes in car
styling have prompted the industry's giants to exploit global
economies of scale. But rivals such as Ford and Honda have
approached the task very differently.
2. Ford is one of the world's earli1est multinationals. Its first
foreign production unit was set up in Canada in 1904 - just a year after
the creation of the US parent. For years Ford operated on a regional
basis. Individual countries or areas had a large degree of autonomy from
the US headquarters. That meant products differed sharply, depending
on local executives' views of regional requirements. In Europe the
company built different cars in the UK and Germany until the late
1960s.
3. Honda, by contrast, is a much younger company, which grew
rapidly from making motorcycles in the 1950s. In contrast to Ford,
Honda was run very firmly out of Japan. Until well into the 1980s, its
vehicles were designed, engineered and built in Japan for sale around the
world.
4. Significantly, however, Honda tended to be more flexible than
Ford in developing new products. Rather than having a structure based
on independent functional departments, such as bodywork or engines, all
Japan's car makers preferred multi-disciplinary teams. That allowed
development work to take place simultaneously, rather than being
passed between departments. It also allowed much greater
responsiveness to change.
5. In the 1990s both companies started to amend their organisa-
tional structures to exploit the perceived strengths of the other. At Ford,
Alex Trotman, the newly appointed chairman, tore up the company's
rulebook in 1993 to create a new organisation. The Ford 2000
restructuring programme threw out the old functional departments and
replaced them with multi-disciplinary product teams.
81
6. The teams were based on five (now three) vehicle centres,
responsible for different types of vehicles. Small and medium-sized cars,
for example, are handled by a European team split between the UK and
Germany. The development teams comprise staff from many
backgrounds. Each takes charge of one area of the process, whether
technical, financial or marketing-based.
7. Honda, by contrast, has decentralized in recent years. While its
cars have much the same names around the world, they are becoming
less, rather than more, standardized. 'Globalization' - a global strategy
with local management - is the watchword. Eventually the group expects
its structure will comprise four regions - Japan, the US, Europe and
Asia-Pacific -which will become increasingly self-sufficient.
8. Two reasons explain Honda's new approach. Shifting to produc-
tion overseas in the past decade has made the company more attuned to
regional tastes. About lm of Honda's 2.1m worldwide car sales last year
were produced in the US. A further 104,000 were made in the UK. No
other manufacturer has such a high proportion of foreign output.
9. Honda engineers also reckon they can now devise basic engi-
neering structures which are common enough to allow significant
economies of scale, but sufficiently flexible to be altered to suit regional
variations. The US Accord, for example, is longer and wider than the
Japanese version. The European one may have the 105 same dimensions
as the Japanese model, but has different styling and suspension settings.
10. Both Ford and Honda argue their new structures represent a
correct response to the demands of the global market. Much of what
they have done is similar, but intriguingly, a lot remains different.
FINANCIAL TIMES
World business newspaper.

Vocabulary tasks
1 The word 'headquarters' is used to describe the central,
controlling part of a large,
international company. What other word is used in the same
paragraph with a similar meaning?
2 Honda and Ford manufacture cars. What other phrase is used
to describe what they do?
3 Honda produces both cars and motorcycles. What is a general
word for both of these?

82
Word search
Find a word or phrase in the text that has a similar meaning.
When a company makes a product in big volumes to reduce costs ;
factory in which cars are produced ; independence ; needs or demands ;
head of a company responsible for strategy rather than day-to-day
management ; consist of or be made up of; financially independent; total
of a companys production.

Use an appropriate word or phrase from the previous exercise
to complete each sentence.
1 The company three divisions - cars, trucks and
commercial vehicles.
2 Each division has a lot of .... to decide its own strategy.
3 Companies seem to change their .... ...every few years in
response to changing economic and market conditions.
4 Our total ........................................of cars from all our
factories in Europe went down last year.
5 We need to develop products that meet theof the
market.
6 Big car makers now produce different models based on the
same platform in order to achieve.
7 All the main Japanese car makers have .in
Europe.

2. Entering a foreign market
Before you read discuss these questions.

1 What are the main reasons for manufacturing a product in the
country or region where you want to sell it?
2 A lot of products are increasingly being ordered by phone or
through the Internet, assembled to order and delivered from the factory
directly to the customer. This is especially the case in the US and
Europe. Do you think this approach would work well in South
America?

Reading tasks:
Understanding main points.

1 Is the writer generally positive about Dell's chances of success
83
in its South American venture?
2 Why has Dell decided to attack the South American market?
3 Based on the information in the text, which country is the odd
one out, and why?
a) Colombia b) Argentina c) Brazil d) Paraguay e)
Uruguay
4 Why has Dell chosen to locate its manufacturing plant in
Brazil?
5 Which of the following 'challenges' facing Dell are mentioned
in the article?
a) unreliable transport networks
b) poor productivity
c) political instability
d) high inflation
e) large distances
f) high import tariffs
g) terrorism
h) well-established competitors

Understanding details

Mark these statements T (true) or F (false) according to the
information in the text. Find the part of the text that gives the correct
information.
1 Dell will sell only in the big cities.
2 Dell already sells computers in South America.
3 The company also produces PCs in Mexico.
4 It plans to import all the components it needs.
5 Ford and Volkswagen have been operating in South America for
some years.
6 Considering South Americans a single market is not an easy
strategy.
7 To meet 'local content criteria* Dell must use a certain
percentage of components produced locally.
8 Dell hopes to sell its computers duty-free in many countries.
9 Delivery systems in Brazil are better than in other parts of South
America.


84
INFORMATION TECHNOLOGY LOGISTICS
Dell tries to crack South America

J ohn Barham examines the US computermaker's strategy for
expansion using a Brazillian base.

1. Dell Computers, the Texas-based computer-maker that was
among the pioneers of online ordering, is preparing to attack the
difficult Latin American market.
2. Soon, Dell will start making computers at a new factory in
the small, southern Brazilian city of Eldorado in its first manufacturing
venture in South America. Within a few hours' flying time of Eldorado
lie four of the continent's main metropolitan regions - Buenos Aires,
Rio de Janeiro, Sao Paulo and Santiago - which generate about half the
region's wealth and where most of the computer-using populace is
concentrated. Dell hopes to serve all these markets - including more
distant regions in northern Brazil and the Andean countries -
from Eldorado.
3. According to Dell's plan, aircraft from Miami will land at a
nearby international airport carrying computer components that will be
sent straight to Dell's factory. Together with parts delivered from
suppliers in Brazil, they will be assembled to order, packed and
delivered to consumers across the continent.
4. The challenge for Dell is not only to mount an effective
marketing campaign to educate customers about online ordering, it
must also manage a complex logistics system and deal with the
problems of unreliable road and air transport networks. And it must
operate in half a dozen volatile Latin countries, with unpredictable
governments and consumers as well as well-established competitors.
5. Dell could not afford to ignore the South American market
much longer. It currently exports computers to a few Latin American
countries such as Mexico and Colombia, but has never sold to markets
in Argentina or Brazil. Latin American consumers last year bought 5
million PCs and demand is growing at 15 per cent a year. Growth is
likely to remain strong for some time to come: in Brazil, the region's
largest market, only 3-4 per cent of the population owns a PC.
6. Dell is not the first company to view South America as a
single market. For a decade, Ford and Volkswagen and many other
85
multinational companies have operated in the region's main countries
as if they formed one integrated market. That was a natural reaction to
falling import tariffs and consolidation of the Mercosur customs union
linking Argentina, Brazil, Paraguay and Uruguay. However, the
distances, the red tape and the animosities between national
governments often make fulfillment of this strategy difficult. Dell
decided to locate in Brazil because it is the region's biggest market and
because the government gives computer companies substantial tax
incentives as part of its plan to develop local high technology
industries. If Dell meets Brazilian local content criteria and attains
agreed production volumes, its products are considered to be 100 per
cent locally made and automatically gain duty-free access to Mercosur
countries.
7. However, there is little Dell can do about the internal
transport networks in Brazil or the bureaucracy in neighboring
countries. Although roads, air transport and delivery systems are
tolerably efficient in south eastern Brazil and parts of Uruguay, Chile
and Argentina, Dell may still find it is struggling to co-ordinate opera-
tions and sales over a vast region.


How the text is organised
These phrases summarise the main idea of each paragraph.
Match each phrase to the correct paragraph.
a)the challenge for Dell
b)reason for choosing Brazil
c) an overview of Dell's intentions
d)reason to enter the South American market.
e)how Dell's plan will work
f) other companies experiences
g) problems Dell may face in Brazil and elsewhere
h) advantages of Eldorado's location

Match these nouns as they occur together in the text.
a) tax ---------- venture
b) manufacturing incentives
c) import system
d) customs tariffs
e) production volumes
86
f) logistics union

Match these verbs and nouns as they occur in the text.
a) Mount access
b) serve criteria
c) generate a campaign
d) gain a market
e) meet wealth

Use an appropriate phrase from the previous exercise to
complete each sentence.
1 Many countries offer companies.. to encourage inward
investment.
2 When we launch our new Internet service we will need to. a
big marketing..
3 In order to be successful, the new manufacturing plant will have
to reach target.. .within six months.
4 Assembling to order and delivering direct to each customer
means managing a complex..
5 When importing is expensive due to high .......... ., the
alternative is to manufacture locally.
6 In order to have free access to the EU market, Japanese car
manufacturers in the UK need to .minimum content
.
7 In some countries the only way to ...................... .well is to
have local production.
8 Most countries in Europe are now part of a ....... .which allows
free movement of goods.

3. Frederich W. Taylor: Scientific
Management
Read the following information about IBM's methods of work and
then discuss the questions below.
In his book Management Peter Drucker makes some comments about
the workers who produce IBM's equipment. He says that IBM made a
conscious effort to make their jobs big. Take, for example, the machine
operators. Although the operations they perform are designed to be
simple, the workers do a number of different tasks, of which at least
one requires skill and judgment on the worker's part. Also, because of
87
the range of his/her tasks, the worker is able to change the pace at
which he/she works.
Drucker says interesting things about other IBM methods. The
way the company develops new products is worth noting. Before the
engineering of the new product is finished, the project is given over to
one of the foremen, who then manages it. So, the final details of the
engineering design are worked out on the shop floor with the engineer
and workers who will make the machine. IBM production workers are
not told what production rate they must achieve. They work out a rate
with their foreman. IBM says that 'there is no such thing as a
production norm. Each man works out for himself, with his superior's
help, the speed and flow of work that will give him the most
production.'
1 What are the advantages of making the jobs of production workers
big? Are there any disadvantages?
2 Why, do you think, does IBM develop new products in the manner
described?
3 What do we learn about
(a) IBM's attitude towards its production workers?
(b) the company's style of management?

Reading
No one has had more influence on managers in the twentieth century
than Frederick W. Taylor, an American engineer. He set a pattern for
industrial work which many others have owed, and although his approach
to management has been criticised, his ideas are still of practical
importance.
Taylor founded the school of Scientific Management just before 1914
- 18 war. He argued that work should be studied and analysed
systematically. The operations required to perform a particular job could
be identified, then arranged in a logical sequence. After this was done, a
worker's productivity would ease, and so would his/her wages. The new
method was scientific. The way of doing a job would no longer be
determined by guesswork, and rule-of-thumb practices.
Instead, management would work out scientifically the method
producing the best results. If the worker followed the prescribed
approach, his/her output would increase
Taylor started work at the end of the nineteenth century; the industrial
revolution was in full swing. Factories were being set up all over the
88
USA. There was heavy investment in plant and machinery, and labour
was plentiful. He worked for twenty years (1878-1898) with the Midvale
Steel Company, first as a labourer, then as a Shop Superintendant. After
that, he was consultant with the Bethlehem Steel Company in
Pennsylvania.
Throughout this time, he studied how to improve the efficiency of
workers on the shop floor. He conducted many experiments to find out
how to improve their productivity. His solutions to these problems were,
therefore, based on his own experience. Later, he wrote about his
experiments. These writing were collected and published in 1947, in a
work entitled Scientific Management.
When he was with Bethlehem Steel, Taylor criticised management and
workers. He felt that managers were not using the right methods and that
workers did not put much effort into their job. They were always
'soldiering' - taking it easy. He wanted both groups to adopt a new
approach to their work which would change their thinking completely.
The new way was as follows:
1. Each operation of a job was studied and analysed;
2. Using this information, management worked out the time and
method for each job, and the type of equipment to be used;
3. Work was organised so that the worker's only responsibility
was to do the job in the prescribed manner;
4. Men with the right physical skills were selected and trained
the job.
Observing; analysing; measuring; specifying the work method;
organising and choosing the right person for she job - these were the
tasks of management.
Taylor's approach produced results! For example at Bethlehem Steel,
he did an experiment with shovels, the tool used for lifting and carrying
materials. He studied the work of two first-class shovellers and then
changed their working procedure. In the beginning, the men used their
own shovels for all the types of materials they handled, whether coal or
iron ore. The average load was 38 pounds and each lifted 25 tons of
material a day. By experimenting, Taylor found out that if the men used
smaller shovels and carried 21 pounds per load, their daily output
increased to 30 tons. As a result, at the beginning of each shift, workers
were given different sized shovels, depending on the type of material
they loaded, but the load was still 21 pounds. Other workers meeting the
standards set by the two shovellers had their wages increased by 60%.
89
Those who could not reach the standard were given special training in
shovelling techniques.
By introducing methods like these, Taylor and his colleagues greatly
increased productivity at Bethlehem Steel. After a few years, the same
amount of work was done by 140 workers instead of 500. Handling costs
of materials were halved, which to annual savings of $80,000.
Taylor made a lasting contribution to management thinking. His main
insight, that work can be systematically studied in order to improve
working methods and productivity, was revolutionary. Also, he correctly
emphasised that detailed planning of jobs was necessary.
The weakness of his approach was that it focused on the system of
work rather than on the worker. With this system the worker becomes a
tool in the hands of management. It is assumed he/she will do the same
boring, repetitive job hour after hour, day after day while maintaining a
high level of productivity. Another criticism is that it leads to de-skilling
- reducing the skills of workers. Because the tasks are simplified, workers
become frustrated. And with educational standards rising among factory
workers, dissatisfaction is to increase. Finally, some people think that it is
wrong to separate doing from planning. The two tasks can, and should, be
done by the same person. A worker will be more productive if he/she is
engaged in such activities as planning, decision-making, controlling and
organising. For all these reasons, a reaction has set in against the ideas of
Frederick W.Taylor.

Understanding the main points
Complete the following sentences, using your own words.

1 Taylor's method of management was revolutionary because
2 Companies which adopted this new approach to management would
benefit because .............................................................
3 Scientific Management would also be a good thing for workers
because ....................................................................................
4 At Bethlehem Steel Taylor decided to give workers smaller shovels
so that ..........................................................................
5 As a result of the new working procedures introduced at Bethlehem
Steel, within a few years the company.......................

Vocabulary focus

90
Find words or phrases in the text which mean the same as the
following:

making a judgment without being certain ; calculate; quantity of goods
produced; established; amount to be carried; fixed period of time worked
each day, especially for factory workers; perception, clear realisation,
deep understanding

Complete the following chart.

PERSON NOUN VERB ADJ ECTI VE
manager managemen
t
manage managerial or
man managing
criticise
performer
science

training

analytical
industry
observe
engineering
revolutionary
consult

Match the following verbs and the nouns with the correct definitions.
1. set up(v)
2. set-up(n)
3. set back(v)
4. set-back(n)
5. set above(v)
6. set in(v)
7. set out(v)
8. set against(v)
9. set aside(v)
10. set down(v)
91
a. keep for a special purpose
b. establish a business or organisation
c. something that slows or impedes progress
d. an organisation or arrangement
e. start to do, or deal with something
f. put back or delay the development of something
g. begin an undertaking of some kind, e.g. a journey
h. start and probably continue
i. balance against
j. write, make a record of

Complete the following sentences, using suitable verbs and nouns
from the list above.
1. When the Managing Director..to change the
management structure, no one thought he had a chance of
succeeding.
2. The strike of our shop floor workersproduction at least
three months.
3. It looks as if a recession is about to. . No one seems to
have any money at the moment.
4. The new Marketing Manager doesnt understand the of
our department yet.
5. Its a common practice of companies to.. certain business
losses..taxes.
6. One of our competitors has..a distribution network
covering the whole country. How annoying!
7. How on earth are we going to.. reducing our costs?
8. Most companies..a part of their profits for future
investment. The money is kept in their reserves.
9. We had a big..last year when our warehouse caught fire
and our stock was destroyed.
10. If an employee has an accident at work, he or she has
to.. what happened in a report.






92
Complete the following passage, using suitable words and phrases.


assembly line, bonus, capacity, component, foreman, layoff, layout,
redundant,
schedule, incentive, overtime, shift, quality, control, robot.


'I used to work in a company which made ..................... (l)for cars.
Things like spark plugs, carburettors, and so on.. We were well paid and
we had a productivity ..................... (2) too. And if you needed extra
money for a holiday, you usually had the chance to do a bit of
..................... (3). The management was generous. They gave prizes,
such as car radios, to workers who attended regularly. That was a real
..................... (4) for us not to be sick! We worked two ..................... (5)
at the factory -I usually worked at night. I liked the ..................... (6) a
lot. He let you get on with the job.
Things changed two years ago. We got several big orders at once and
just couldn't cope. The Production Manager got really upset when we
got behind ..................(7) . The ..................... (8)people weren't too
pleased either because a number of carburettors had faults, so they were
thrown away. In the end, the company brought in some management
consultants. They studied our methods of work, then recommended
automating part of the plant. That meant changing the whole
..................... (9) of the factory.
Well, we did as they said. I must say, our production.....................
(10) did increase and stock levels became high again. The trouble is, the
management decided to cut down the work-force. At first, only a few
workers were ..................... (11),
but later staff from all departments were made ..................... (12).
Nowadays, I'm working on an ..................... (13) in a car
manufacturing factory. I spray the car bodies. Would you believe it, I
hear they're bringing in ..................... (14) to do my job! So I'll be out of
a job again soon.'

Discussion

Working in groups of two or three, discuss the following statements,
using the expressions for agreeing and disagreeing.
93

1 No person should be allowed to smoke at his/her workplace.
2 Production work is more satisfying than office work.
3 After having worked for a company for twenty years, every person
should be allowed one year's paid holiday.
4 Men make better managers than women.
5 Nowadays, in most countries, women have as much chance of
getting to the top in business as men.

Case study The Kellerman process

CIAO! makes stylish clothes for teenagers and the under-twenty-fives.
The company supplies the New York fashion trade, and it operates in
competitive conditions. To survive, it has to react quickly to changes in
consumer taste, produce goods lightning fast for clients, and keep costs
low.
Life has been hard these last five years. During this time, the firm's
pre-tax profits have fallen from $4.5 million to $200,000. Cheap foreign
imports have been partly to blame, but another reason is that the
management have been unable to control production properly. Because of
this, stocks have built up to high levels. And there have been bottlenecks
in production, leading to cancelled orders.
Lily Jacobavitz, Chief Executive of the company, has thought a lot
about the problem of rising production costs. Now she thinks she has the
answer. Recently she held a meeting to discuss her ideas with two
colleagues, Sydney Gorman, her Production Manager, and Gloria David,
Personnel Director, 'I think we ought to buy the Kellerman process,' she
told them. 'I've talked to Kellerman's Sales Director. He reckons we could
have the electronic machines and the computer system for $150,000 to
$200,000. What do you think?
The two managers looked at her in surprise. Gloria David was the first
to speak. 'Do you have that kind of money to throw around?' she asked.
'We have for the Kellerman system,' Lily Jacobavitz replied, just a
little coldly. 'It'll increase the productivity of our machine operators by
30%-50% and cut costs. That's what we want, isn't it?'
At this point, Sydney Gorman cut in.' I think we'd better talk about
your proposal at our next management meeting, don't you?'
'Sure,' answered Lily Jacobavitz. 'But I'll want a decision on this one-
fast.'
94
The Kellerman process consists of electronic machines which are
linked to a computer system. The sewing-machine operators key in their
daily output on their own machine as soon as they've finished their batch
of materials. The output is displayed on a small screen opposite their
target production figure. The screen shows what percentage of the target
they have achieved, and also if they have produced more than their target.
All the information from the machines is fed into a computer, so
management know exactly what is going on in the production process at
any time.
The manufacturers claim that operators using Kellerman machines
work harder. Also, because of improved production control, management
can step in if there are problems like bottlenecks or high stock levels.
'It should make things easier for the Accounts Department as well,'
thought Lily Jacobavitz. The sewing-machine operators - a hundred and
fifty in all - were paid a certain amount for each garment produced. At
present, operators filled in work sheets which were attached to bundles of
materials. The job of collecting and recording the information on these
'work tickets' was time consuming for the accounts staff. 'If we get the
Kellerman system,' Lily said to herself, 'the operators may get off my
back about getting them a new canteen. They might even start meeting
their targets for a change.'

Instructions
Working in groups, enact the management meeting. Each member of
the group should take one of the roles which follow. The Chief Executive
should act as Chairperson. The purpose of the meeting is:
1 to discuss thoroughly the proposal to introduce the Kellerman
process;
2 to decide whether or not to buy the system.
Study your own role-card only, and prepare carefully for the meeting.
Note: The role of Chief Executive may be played by a male. For
smaller groups, roles such as the non-union representative, the Operations
Manager and the Warehouse Manager may be omitted.
CHI EF EXECUTI VE
As Chairperson, you must ask for the opinions of all the members of
the meeting. However, you will try to persuade everyone that the
Kellerman process should be bought. The manufacturers of the system
have assured you that it will reduce costs and increase productivity. You
think that, with the new system, the operators will be motivated to exceed
95
their targets, probably by as much as 30%-50%. If the process isn't
introduced, you might have to think of hiring a more efficient Production
Manager!
PRODUCTI ON MANAGER
You are against buying the Kellerman process. In your opinion, this is
the wrong time to spend such a large sum of money. There is no
guarantee the system will work well. If it is introduced, the production
process may become disorganised and the workers unhappy - especially
the older ones. You want more money to be spent on improving working
conditions. You've been trying for months to persuade the Chief
Executive to repaint the interior of the factory. Relations between you
and the Chief Executive are not good at present.

PERSONNEL DI RECTOR
You are not certain what to think about the proposal. Manufacturers
always say that their new process is wonderful, but do the systems always
work well in practice? In your opinion, the company should get some sort
of guarantee from the manufacturers. For example, if productivity did not
increase by 20% within six months, they should take back their
equipment. You are also worried about how the older workers will react
to the Kellerman system. They are generally suspicious of new
technology.)
UNI ON REPRESENTATI VE (SEWI NG-MACHI NE OPERATORS
You want to buy the Kellerman process. Most of the operators in your
union are young. They think that, with the new system, they would be
able to earn a lot more money. Some of them should be able to earn even
more than their supervisors! Production will be more efficient, so the
company's financial situation will improve. The process is easy to install
and run, so there will be no bad effects on production.
REPRESENTATIVE (NON-UNION SEWING-MACHINE
OPERATORS)
You are strongly against buying the Kellerman system. You represent
about seventy non-union operators - all older women. You and the other
workers like the present system of production. You can work at your own
pace, and, whenever you like, go outside to have a cigarette or cup of
coffee. The 'work ticket' procedure is easy to understand and carry out.
You are all suspicious of the Kellerman system. The management just
want to squeeze more work out of you. The factory is becoming more
like a sweatshop every day.
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SALES MANAGER
You are against the proposal. If the company is going to spend
$200,000, the money should go to the Sales Department. You need at
least three more sales staff, but you have not been allowed to hire them.
In your opinion, CIAO! needs to increase sales greatly if it is to survive.
Actually, you think the firm should forget about teenagers and start
producing fashions for the well-off, thirty-year-old executive market.
OPERATI ONS MANAGER
You are responsible for scheduling and processing orders. You may
make up your own mind about the new process. However, what worries
you is that, with the new system, the machine operators may earn more
than you do! You work like a slave meeting deadlines and dealing with
difficult customers. The job's tough, but you work for peanuts!
WAREHOUSE MANAGER
The Kellerman process will make your work a lot easier, so you're in
favour of it. All you want is an easy life. You're tired of hearing the
production workers complaining about their working conditions. They
should see the tiny office you work in! If the new system is introduced,
output will be much higher. Therefore, you will expect a large salary
increase.
FI NANCI AL DI RECTOR
You have a difficult decision to make. On the one hand, you hate to
see the company spend any money at all in the present financial situation.
On the other hand, you think the system might benefit the firm. Perhaps
CIAO! should wait for a year or two until the process has been used by
more organisations. It would be clearer then how efficient it was. You
may prefer to listen to the opinions of other members before giving your
own.

Listening (Keys to management Unit 2 p. 28)
Listen to the conversation about flexitime and complete the sentences
below.
1. Just over a year ago IC Electronics decided to..
2. The core period is the time when.
3. If staff work more than, say, thirty-five hours during a week, they are
allowed to..
The advantages of flexitime
Benefits to staff Benefits to
company
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4. Leadership
Discussion
Work in groups of three or four. Each member of the group should
choose a famous leader, either living or dead.
First, members should say briefly
- what the leader achieved
- what qualities and abilities the leader has (or had)
- whether group members think the person they chose was an
effective leader

Then, the group should discuss the following questions.
1. Do the leaders you have described have any common
characteristics, e.g. similar qualities, abilities, skills etc.
2. Are leaders born or made?

Leadership

Leadership is needed at all levels in an organisation. It is likely,
however, that the leadership qualities required by a supervisor or
manager are not the same as those required by the chief executive of a
company. It is, therefore, difficult to define leadership satisfactorily.
A typical definition is that the leader provides direction and
influences others to achieve common goals. This is true in the case of
supervisors and managers, but is it a good definition of the leader of an
organisation? A chief executive must indeed give direction but he must
do much more than that. He has to create a sense of excitement in the
organisation, and convince staff that he knows where the business is
going. In addition he must be a focus for their aspirations. As Peter
Drucker, the American writer, says, Leadership is the lifting of a mans
vision to higher sights, the raising of a mans performance to a higher
standard, the building of a mans personality beyond its normal
limitations.
When psychologists and other researchers first studied leadership,
they tried to find out if leaders had special personal qualities or skills.
They asked the question: Were these specific traits which made leaders
different from other people? The results of their research were
disappointing. In time, it became clear that there was not a set of
qualities distinguishing leaders from non-leaders. Some studies had
98
suggested, for a example, that leaders were more intelligent, more self-
confident, had better judgment etc. than other people. But, it was pointed
out, many people with these traits do not become leaders. And many
leaders do not have such traits!
In 1974, a researcher, Ralph Stogdill, reviewed a large number of
projects on leadership. In Chart 1, you can see the personal qualities
which were considered important for success as a leader.

Chart 1

Characteristics of a leader Number of studies
Fluency of speech 28
Ascendance, dominance 42
Knowledge 23
Emotional balance, control 25
Originality, creativity 20
Self confidence 45
Achievement drive, desire to excel 28
Drive for responsibility 29
Task orientation (interest in work) 19
Sociability, interpersonal skills 49
Participation in social exchange 29

However, as early as the 1950s, the trait approach to leadership had
become discredited. It is generally agreed now that you cannot a person
is a leader because she/he possesses a special combination of traits. All
you can say is that some qualities, like above-average intelligence and
decisiveness, are often associated with leaders.
An important analysis of leadership has been made by Fred
Fiedler. Professor at the University of Washington, Foe over twenty
years, he has carried out research into effective leadership in a number
of organizations business, government agencies and voluntary
associations. Fielder observed how leaders behaved, and he has
identified two basic leadership styles:
Task-motivated leaders tell people what to do and how to do it. Such
leaders get their satisfaction from completing the task and knowing they
have done it well. They run a tight ship, give clear orders and expect
clear directives from their superiors. This does not mean that they show
no concern for other people. But their priority is getting the job done.
99
Relationship-motivated leaders are more people oriented. They get
their satisfaction from having a good relationship with other workers.
They want to be admired and liked by their subordinates. Such leaders
will share responsibility with group members by encouraging
subordinates to participate in decisions and make suggestions.
One of Fielders most original ideas was to offer a method for
measuring a person leadership style. In a questionnaire, he asked leaders
to think of all the people they had worked with. From this group, the
leaders had to choose the person with whom they could work the least
well. . The leader then had to rate this person - the least-preferred co-
worker (LPC) on a number of scales, as in the chart below.

Chart 2
People-Oriented versus Task-Oriented Leadership Styles

Least-preferred Co-Woker Scale
Think of the person with whom you can work least well. He or she may
be someone you work with now, or may be someone you knew in the
past. He or she does not have to be the person you like least well, but
should be the person with whom you had the most difficulty in getting
the job done. Describe this person as he or she appears to you.
Scoring
Pleasant 8 7 6 5 4 3 2 1 Unpleasant
Friendly Unfriendly
Rejecting Accepting
Tense Relaxed
Distant Close
Cold Warm
Supportive Hostile
Boring Interesting
Quarrelsome
Harmonious

A person who described his least-preferred co-worker favourably tended
to be 'human-relations oriented and considerate of the feelings of his
men '. He was a relationship-motivated leader. On the other hand,
someone who described his least-preferred co-worker unfavourably,
giving him/her a low LPC rating, tended to be 'managing, task-
100
controlling, and less concerned with the human relations aspects of the
job ' This person was a task-motivated leader.
Throughout his work Fred Fiedler emphasised that both styles of
leadership could be effective in appropriate situations. There was no best
style for all situations. Effective leadership depended on matching the
leader to the task and the situation.
In a book called The Winning Streak, the authors studied
leadership in some top British companies. The managers of those
companies believed that effective leadership was a crucial factor in their
organisations' success.
The authors were able to identify some characteristics of the
chairmen and chief executives of the companies, which made them good
leaders: firstly, the leaders were 'visible'. They did not hide away in
some ivory tower at Head Office. Instead, they made regular visits to
plants and sites, toured round their companies and talked to employees.
Leaders made their presence felt. There are some fascinating examples
of this practice Sir Hector Laing, Chairman of United Biscuits, travels
around his company with a jug of orange juice He uses this to show
employees how the company profits are divided up between employees,
reinvestment, dividends, tax etc. Lord Sieff, Chairman of Marks and
Spencer until 1934, kept close contact with his staff. Once, when there
had been heavy snowfalls, he drove from London to Chatham a long
way just to thank sales assistants for turning up in spite of the weather.
Lord Sieff had the habit of making telephone calls every Saturday, at
about 5p.m. to a few stores, chosen at random. He wanted to know how
the day's trading had gone. No doubt, by doing this, he kept the staff on
their toes. And he showed them that the Chairman had not forgotten
them!
Another example of being 'visible' is provided by Brian Nelson, Group
Managing Director of Buhner, the cider-making firm. Every six months,
he goes out in a lorry which delivers cider, and works as the lorry
driver's mate. This gives him the opportunity to learn about the delivery
service, and to talk frankly to employees about their problems.
Besides being visible, the leaders of these top companies provided
a 'clear mission'. In other words, they knew where the organisation was
going and persuaded staff to follow them. Sometimes, they spelled out
the mission in a written statement. For example, Saatchi and Saatchi, the
advertising group, include a statement of their principles in all annual
101
reports. The statement says that Saatchi and Saatchi must be 'sharp in the
definition of their long-term objectives.' And the
documents also cover matters like employees, clients, creativity, market
position and profitability.
Finally, successful organisations have clear values. And it is the
job of the leader to show what they are. As Douglas Strachan, Managing
Director of Allied Lyons Beer Division, says, 'You have to keep telling
people your values. If you repeat it often enough, it does go down the
line.' Thus, the leader is not only someone who 'lifts a man's vision'.
He/She must also protect and promote the organisation's values.

Understanding the main points
1) Complete the following sentences, using your own words.
1 The main problem with the trait approach to leadership was that
...............................................................................................
2 According to Fiedler the most important aim of a task-motivated
leader is ..............................................................
3 On the other hand, a relationship-motivated leader's main concern
is ............................................................................
4 By asking managers to complete a questionnaire about their least
preferred co-worker, Fiedler was able to ...................
5 Fiedler does not think that one style of leadership is necessary
better then the other because .............................................
2) The authors of The Winning Streak have identified the main
characteristics of the leadership styles of effective company chairmen
and chief executives.
Note down the three characteristics described in the text.

Vocabulary focus
Explain the meaning of the following words and phrases.
where the business is going, people-oriented, rate, focus for their
aspirations, tended, considerate, disappointing, crucial, discredited, kept
the staff on their toes, directives, priority, it goes down the line, getting
the job done .
Below are some adjectives and nouns with self.
Study them and, if necessary, check their meanings in a dictionary.
Then use them to complete the following sentences.
NOUNS
self-control self-discipline self-satisfaction self-confidence
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ADJECTIVES
self-confident, self-addressed, self-educated, self-made, self-appointed,
self-important, self-explanatory, self-evident, self-employed, self-reliant
1 The instructions on this package are simple to follow. They're
really ......................
2 He got to the top in business by his own efforts in spite of
having little education or training. He's entirely a
.....................man.
3 We need salespeople who can work on their own initiative.
They must be ......................
4 It's not easy to start work at six o'clock every morning. You
need plenty of ..................... to get to work on time.
5 Bill has no official position but he's very influential with the
shop-floor workers. He's their ..................... leader.
6 I get a sense of...................... when I think that I entered this
company as an office boy and I'm now its chairman.
7 ..................... businessmen generally like the feeling of
independence.
8 It is ..................... that a bank manager won't lend you money
to start a company if you don't have some kind of business
plan.
9 She's confident she'll be the best Office Manager we've ever
had. Her ..................... is remarkable.
10 It's easy to lose your temper if an employee makes a silly
mistake. However, a good manager learns to
show.
11 If you need more information, please write to us including a
.....................envelope.
12 A leader needs to be ..................... because if he doubts his
own judgement, others will do so too.
13 Despite her culture and knowledge, she is in fact
largely..................... since she left school at fifteen.

Phrasal verbs and nouns with turn .
Match the following verbs and nouns with the correct definitions.
1 turn up a do something in an agreed order
2 turn down b the amount of sales in a certain period
of
time
103
3 turn over c do business or sell goods worth a
certain
amount
4 turn round d make a business profitable again after
it
has had losses
5 turn out e a point in time when an important
change
takes place
6 turn against f the number of workers employed to
replace those who have left
7 take turns g produce
8 turning point h refuse, reject
9 turnover i change one's attitude and become
hostile
10 turnover j arrive, appear

Complete the following passages with words from the list above.
1 I work for a kitchen appliance manufacturer. We're a fairly large
organisation. Our ..................... (1) is over $20m annually, and I'd
say we ..................... (2) roughly 2,000 units a month. We're
profitable now but we had a difficult time in the early 1980s. We
almost went bankrupt. The ..................... (3 ) was when we got a
new Chief Executive. Within two years he completely
..................... (4) the company. Now we're doing well. Our only
problem is that our labour ..................... (5) is rather high - well
above average for the industry.
2 I'm meant to start work at 8.30 a.m. but I often ..................... (1)
late. On Fridays, someone in the office has to work until 10 p.m. We
usually ..................... (2) - it's fairer that way. I quite like my job and
I don't want any more responsibility. In fact, I've already
..................... (3) two offers of promotion, much to my boss's
annoyance. I hope he doesn't ..................... (4) me because I've
refused opportunities for promotion. By the way my firm
..................... (5) about $200,000 a month.




104
Listening
Understanding the main points
1 Read the article below, which appeared in the
monthly newsletter of the Porchester Chamber of
Commerce. You will notice that parts of the article
are missing.

HOW TO BE A WI NNER

On 30 April the Porchester Chamber of Commerce was addressed by
Frank Evans, the manager of Porchester United Football Club, who are
the current leaders of the First Division. Introducing Mr Evans, our
Chairman, Robert Higginbotham, reminded the audience of the
managers remarkable record. In the previous five
years...........................................................
Mr Evans began his talk with two jokes. He said he did not expect to
become the manager of the national side
because........................................
Then he thanked the Chamber of Commerce for the splendid lunch,
saying
that..............................................................................................................
..
He explained that the Chairman had asked him to talk about
leadership from his own experience. He then proceeded to give the
audience some invaluable advice about how to be an effective leader. Mr
Evans believed that the most important task of a leader was to get the
best out of every member of your team. To do that a leader had
to..................................................................
His second point was that leading a team was not just a question of
giving
orders..................................................................................................
Finally, he told an amusing story about one of our local football
heroes, Charlie Parker. It appears that during the 1982 cup final Parker
make a bad mistake:....................................................................................
As a result of this mistake, Porchester United lost the match. The
point of the story was that a
leader..................................................................................
105
Frank Evans ended his speech with a 'pep talk' to his audience. He
thought it was high
time..............................................................................................
The Porchester United manager certainly scored a goal with his
speech. He sat down to enormous applause. 'One of the most interesting
talks for years,' said the Chairman.

2 As you listen to the passage, note down the information which is
missing from the article and then complete it.



Leadership
Tapescript
LISTENING
Most of the members of the Porchester Chamber of Commerce are
business people. Each month, the Chamber of Commerce holds a
luncheon. And afterwards, there is usually a speech by a well-known
person. Today, the manager of the city's football club, Porchester
United, is giving a talk on Leadership.
MC Silence, please, for our Chairman.
CHAIRMAN Thank you. Ladies and Gentlemen. It is my great
pleasure to welcome today Frank Evans. He needs no introduction from
me, I'm sure. Let me just say that, thanks to Frank here, Porchester
United has won the League title four times in the last five years. His
record as a manager is remarkable. And I wouldn't mind betting that,
before long, he'll be running our England team. Frank Evans, Ladies and
Gentlemen.
EVANS Thanks very much, Bob. And good afternoon, everybody. I
don't know about becoming manager of the England team. The selection
committee seem to think that I speak my mind rather too often, but that's
another story, isn't it?
Before I start, let me thank you for the magnificent lunch. I'll certainly
feel the effect of it when I'm out on the pitch tomorrow with the lads. I
hope that, when I've finished my speech, you'll think I deserved the
lunch.
You know, when your Chairman asked me to talk to you, I was going to
say 'No' at first. I said to myself, 'What can I possibly say to a group of
business people that'll interest them?'
106
Then Bob says to me, 'Talk about leadership, Frank. There's no one
knows more about it than you. Give them some tips on how to get the
best out of people; how to get a winning team together.'
Maybe I do know something about leadership, Ladies and Gentlemen.
When I took over at Porchester United, we'd been bottom of the league,
or near it, for years. We didn't stay there for long, did we? And we didn't
have to spend millions buying players - like some teams I could
mention.
What's the secret of leading a team, a winning team? That's the question,
isn't it?
Now, first of all, and most important, you've got to make sure that every
member in the team does his best, that he's performing to his maximum
potential. How do you do that?
My advice is, use a bit of psychology with people. Now, in a football
team, you've got eleven players, and they're all different. So you treat
them differently. Some of them, you've got to push them to do their best.
Shout at them, be hard on them. Bully them if you have to. Then they
perform well. But if you're nice to them, they ... walk all over you. With
other players, you've got to be nice to them - super nice - if you want
them to play well. You praise them as much as possible. Tell them how
wonderful they are. Flatter their egos. Right? And then there are some
players, well, you leave them alone, let them get on with it.
What I'm saying is, if you're a leader, change your style to suit the
person. Be flexible. And treat people as individuals.
And now my second point. If you're a good leader, you don't tell people
what to do all the time. You listen as well. When I want to try a new
move in a match, a tactic to surprise the other team, the players practise
it first in training, of course. And then I ask some of them,' Charlie, do
you think the move will work?', 'Harry, what do you think?' If they say
'No', I probably won't use it. So remember, Ladies and Gentlemen, if
you're leading a team, let the members participate, Listen to their
opinions. They often know better than you do.
Finally, a little story. We got to the F.A. Cup Final in my first year as
manager. Remember? I wanted to win that match very much. So I
thought up a clever move. A bit complicated, but clever. 'It'll be a match
winner,' I thought. Well, it was a good move. And it almost won us the
match. The trouble was, Charlie Parker wasn't in the right position to put
the ball in the net. 'Where the hell were you?' I asked Charlie after the
107
match. 'Sorry boss,' he says, 'I didn't understand the move. And I still
don't.'
The lesson is, Ladies and Gentlemen, don't make things too complicated.
Try to explain things simply and clearly to the people who work for you.
Keep it simple. If I'd done that, Porchester United would probably have
won that cup final.
I hope you've found this little talk interesting. I've tried to 'keep it
simple' as well. A final word. Most of you here are business leaders.
Let's see some better performances from English companies in the
future. It's high time our manufacturers got back their position as world
leaders. Like in the old days. Thank you very much, Ladies and
Gentlemen.



Jobs and careers

Applications and interviews

In different countries, different conventions apply to the process of
job application and interviews. In most parts of the world, its common
to submit a typed or laser-printed CV (curriculum vitae British
English) or resume (American English). This contains all the
unchanging information about you: your education, background and
work experience. This usually accompanies a letter of application, which
in some countries is expected to be handwritten, not word-processed. A
supplementary information sheet containing information relevant to this
particular job may also be required, though this is not used in some
countries.
Many companies expect all your personal information to be
entered on a standard application form. Unfortunately, no two
application forms are alike, and filling in each one may present
unexpected difficulties. Some personnel departments believe that the CV
and application letter give a better impression of a candidate than a
form.
There are different kinds of interviews: traditional one-to one
interviews, panel interviews where one or more candidates are
interviewed by a panel of interviews and even deep-end interviews
108
where applicants have to demonstrate how they can cope in actual
business situations. The atmosphere of an interview may vary from the
informal to the formal and interviewers may take a friendly, neutral or
even hostile approach.
Different interviewers use different techniques and the only rules
that applicants should be aware of may be Expect the unexpected and
be yourself!
Progress interviews are interviews where employees have a chance
to review the work they are doing and to set objectives for the future.
Such interviews usually take place after a new employee has been
working with a company for several months, and after that they may
take place once or twice a year.

In different countries, and in different trades and different grades,
the salary that goes with a job may be only part of the package: extra
benefits like a company car or cheap housing loans, bonuses paid in a
thirteenth month, company pension schemes, free canteen meals, long
holidays or flexible working hours may all contribute to the
attractiveness of a job.

Employee loyalty in service firms
Have a nice day
New York

Hotel, shop and restaurant chains, which employ thousand of
people in low-paid, dead-end-jobs, are discovering that high labour
turnover rates resulting from the indiscriminate hiring of cheap
workers can be extremely costly.
Cole National, a Cleveland-based firm which owns Child World,
Things Remembered and other speciality shops, declared a war for
people in an effort to recruit and keep better staff.
Employees were asked: What do you enjoy about working here? In
the past year, have you thought about leaving? If so, why? How can we
improve our company and create an even better place to work?
Employees replied they wanted better trainings, better communications
with their supervisors and, above all, wanted their bosses to make me
fell like I make a difference. Labour turnover declined by more than
half: for full time sales assistants, it declined by about a third.
109
Marriott Corporation, a hotels and restaurants group, has also
decided to spend more money on retaining employees in the hope of
spending less on finding and training new ones. In one year, it had to
hire no fewer than 27,000 workers to fill 8,800 hourly paid job slots.
To slow its labour turnover, Marriott had to get a simple message
accepted throughout its operating divisions: loyal, well-motivated
employees make customers happy and that, in turn, creates fatter profits
and happier shareholders. Improved training of middle managers helped.
So did bonus arrangements. At the same time, Marriott became more
fussy about the people it recruited. It screened out job applicants
motivated mainly by money: applicants which the company pejoratively
described as pay first people. Such people form a surprisingly small,
though apparently discruptive, part of the service-industry workforce.
Marriott found in its employee-attitude surveys that only about 20 % of
its workers at Roy Rogers restaurants and about 30 % of its workers at
Marriott hotels regarded as their primary reason for working here.
Many middle managers in service industries are more comfortable
coping with demands for more money than with demands for increased
recognition and better communications. They will have to change their
ways. Surveys say that when 13,000 employees in retail shops across
America were asked to list in order the 18 reasons for working where
they did, they ranked good pay third. In first place was appreciation
of work done, with respect for me as a person second.

1.Many workers in service industries are _________ badly and
their work is _______.
2. Service firms with large numbers of low-paid workers often
have a high staff_____.
3.Cole National conducted a ________ among its staff, because
they wanted to recruit and _______ better workers.
4.Staff replied that they wanted their managers to show that they
were ____________.
5.Marriott discovered that customers are happier when the stuff are
______ and _____ motivated. They found that most of their workers
were_________mainly motivated. They found that most of their workers
were _____ mainly motivated by pay.
6. For most US shop workers pay is the _____ most important
reason for job satisfaction.

110

High-flyers

Youll hear part of a broadcast about high-flyers people who will
be given special training and experience to make them into the top
managers of tomorrow. Answer these multiple-choice questions about
the information and opinions given in the recording.


According to the Presenter

1. High-flyer schemes are
a) found in all kinds of companies.
b) Most common in multinational companies.
c) Common in large companies.
2. In a large company
a) only a high-flyer can climb the promotion ladder more quickly.
b) a bright person can quickly climb the promotion ladder even if
there is no high-flyer scheme.
c) The career structure is normally quite flexible.
3. A member of a high-flyer scheme will
a) obtain wide experience in different departments.
b) Already have wide experience in different fields.
c) Become a specialist in his or her chosen field.

According to Rod Scott

4. BP
a) is the worlds largest multinational company.
b) has about 130.000 employees worldwide.
c) has about 130.000 employees in the UK.
5. There are people participating in BPs individual development
programme.
a) 130 b) 180 c) 260
6. BPs high-flyers join the scheme when
a) they have just joined the group.
b) they have been with the group for ten years.
c) They have already shown their potential.

111
According to Heather Stewart

7. A high-flyer scheme may
a) produce a management team who can work well together.
b) lead to a lack of flexibility in the management team.
c) prevent the business from changing.
8. A company with a high-flyer scheme tends
a) to be less competitive.
b) not to recruit senior staff from outside the company.
c) to lose good managers, who leave to join their competitors.
9. High-flyer schemes tend not to recognize the importance of
a) academic qualifications.
b) people who join the company later.
c) the experience and knowledge of older people.
10. Women managers are excluded from high-flyer schemes because

a) they are expected to leave to have babies.
b) they prefer to have babies instead of a career.
c) this is the age they are most likely to have babies.
11. Other able, enthusiastic managers
a) consider high-flyers to be better than them.
b) lose their motivation.
d) leave the company if they arent selected as high-flyers.
12. In medium-size companies high-flyer schemes
a) are usually experimental.
b) are unpopular.
c) are unnecessary because the career structure is flexible.


The ideal job?

Work in pairs
Read this newspaper article and find the answers to these questions
in the text:
1. What were the TWO reasons why Virgin Atlantic was
considering redundancies?
2. What were the TWO things Richard Branson invited his
staff to do?
3. How many people volunteered to take unpaid leave?
112
4. How did the long break affect the staffs attitude to their
work?
5. Why is the scheme going to become permanent?


Frontiers of work

Bransons new rout to more jobs

Celia Weston

For many young people lucky enough to get a job after
leaving school or college,
the biggest shock of the transition to work is how few holidays they get.
Having spent their academic years working an eight or nine-
month year, it can be depressing to realize that for the rest of their
working lives they will be able to take only four weeks off a year.
Many would jump at the chance to take three months off
and thats exactly what happened at Virgin Atlantic, the airline run by
Richard Branson. He believes the new initiative could help to reduce
unemployment.
Faced last autumn with the recession and with its failure to
acquire more flight slots out of Heathrow airport, the company was
having to consider redundancies. Mr. Branson wrote to staff saying that
cutting back on jobs was something I have never wanted to do. Instead
he invited employees to take up to six months unpaid leave and to
participate in a job-sharing scheme.
The immediate crisis passed but the idea of a shorter working
year took off. When the company later asked for 300 volunteers to take
three months unpaid leave, 450 put their names forward. Mr. Branson
said: To be fair and share it around, in some cases we said that people
could only take six weeks.
Most of the volunteers were cabin crew but other staff,
including secretaries and pilots, took advantage of the offers as well.
And when they came back from their break they definitely seemed
to enjoy work more, he said.
The company tends to recruit and train its own staff from
scratch. As Mr. Branson said: If youve been at college or on the dole,
working for only nine months still makes you a lot better off financially
113
than you were before. He believes there is a broader social benefit to be
achieved. If you are only taking on people for nine month, that will
enable others who would otherwise have no work or be leaving on the
dole to have a chance too.
And he goes further. I thing this should be the bases of a pattern across
the whole European Community for the first few years of working life.
Nor was a shorter working year only applicable to young people. If
older women and men with children can afford it because one partners
working 12 months and the other nine, I think a lot of people would like
to earn slightly less and be able to spend more time with their children,
Mr. Branson said.
This year the scheme is on offer again, although not over the
busy summer period. All the people who took time off last year would
like to do so again,
Mr. Branson said. But its realization depended on whether the company
could recruit enough people to allow 400-500 existing staff to take three
months off.
The company was considering whether the arrangement
should become a permanent feature, Mr. Branson said. For new people
being taken on in most departments, were thinking about making nine-
month working a standard contract.


Work in groups. Discuss these questions:
1. What are your views on Richard Bransons scheme?
Would you like to participate in such a scheme?
2. Would such a scheme succeed in the firm you work / have
worked for? Why not?
3. Why do you think so many in Virgins cabin crew took
advantage of the scheme?
4. Could this kind of scheme only succeed with a youthful
staff who have few family responsibilities?
5. How could you persuade people who have considerable
working experience and are used to earning a certain wage
that they should take a pay cut?
6. What do you think of the following:
A four-day week nine-day fortnight seasonal
work job sharing

114
Applying for a job
Work in pairs Discuss these questions:
1. What impression do you try to give in an application
letter?
2. Should an application letter be handwritten, typed, or
laser-printed?
3. How important is a well-presented CV or resume?
4. Do you always tell the absolute truth in application letters?

Work in Bermuda!
ACME Atlantic are a well-known and respected trading
company. We handle imports directly from manufactures in 35 different
countries, often to our own specification, and currently export to 46
different countries worldwide.
We are looking for enthusiastic people to work in our office
in Bermuda on temporary 3-, 6- and 9-month contracts. Applicants must
be able to speak and write at least one foreign language fluently and can
be nationals of any country.
Experience in import/export will be an advantage, but as
special training will be available this is not essential. The main
requirements are a willingness to work as a member of a team, to cope
with pressure, to use the telephone in a foreign language and in English
and to be prepared occasionally to work long hours when necessary.
There are several posts available and long-term prospects are
good, though initially all successful applicants will be contracted for a
maximum of 9 months.
The salary we will offer is excellent. We will pay for your
return airfare and provide adequate accommodation at a nominal rent.
Please apply in your own handwriting, enclosing your
resume, to CHARLES Fox European Sales Office, ACME Atlantic Ltd,
45 Pentonville Road, London EC2 4AC.

Work in pairs Look at this resume. If you were interviewing
Kevin Wills for the job in Bermuda, what questions would you ask him
about his career history?

Kevin Miguel Willis

Address 1090 Madison
986-1988
Oshkosh Junior
High School,
115
Avenue
Sheboygan
WI53081

Res. Phone & fax: 555-5656898

Date of birth: 2/21/71

Professional Aug. 1994-
present
Experience Valentine
International: Export clerk

Jan. 1993-July
1994
Chicago
Products: Marketing assistant

May 1992-Dec.
1992
Self-employed:
travel guide

Jan. 1992-May
1992
Unemployed

Education 1988-1990
and training Green Bay High
School, Green Bay,
Wisconsin

Oshkosh,
Wisconsin

Interests Mountain
biking, reading, hiking, skiing
, sailing

Languages Fluent Spanish
(my mother is
Mexican),
Good conversational French

References Ms Daphne
Stern, Sales Vice-President,
Valentine
International,
2205 Jackson
Street,
Oshkosh, WI
54901

Mr. James
Wong, Atlas Travel,
9004 South
Michigan Avenue,
Chicago IL
60607
Work in pairs Look at this application letter from another
applicant for the job. In what ways does Arthur Dent seem suitable (or
unsuitable) for the job? In what ways are YOU better qualified for it?

Dear Mr. Fox,

Work in Bermuda
116

I noted with interest your advertisement in todays Daily Planet.
You will see from the enclosed CV that I have three years
experience in marketing. My responsibilities have included all types of
administrative work, product development, arranging and attending
presentations, working with clients and solving problems that arise.
Although I have an excellent relationships with my present
employers, I feel that my prospects with them are limited and that there
would be more scope for my talents with a larger, more dynamic
company.
If you consider that my qualifications and experience are suitable, I
should be available for interview at any time.

Yours sincerely,

Arthur Dent

Work in pairs Imagine that you want to apply for the job. Draft an
application letter, following these guidelines:
1 Introduce yourself: name ,age, nationality, etc.
2 State when you are available.
3 Describe your relevant experience or justify your lack of experience.
4 Describe how your skills in your own language, English and other
languages.
5 Describe how you meet the requirement of the job.
6 Say when youre available for interview.


Too old at 30

Im contemplating applying for my fifty-first job. Its been a long time
since I wasted stamp money this way. In fact, when I reached the fiftieth
without success I decided to abandon job-hunting and got out my pen to
scratch a living instead.
But theres another wildly exciting job in the paper today, salary
$12.500 - $16.250 according to age and experience. The good news is
the pay, the bad news is that damning little phrase according to age and
experience which means I wont get the job.
117
Its not that I have more age than experience Ive led an incident-
packed existence.
Unfortunately its not all related to a single-strand career structure.
Journalist, temp, company director, wife and mother, market researcher,
and now, at thirty-something, Im trying to use my Cambridge degree in
criminology.
Im a victim of the sliding pay-scale. Employers can obtain a fresh 22-
year- old graduate to train a lot cheaper than me. Yet Im the ideal
employee: stable, good-humoured, child-bearing behind me, looking for
25-plus years of steady pensionable employment.
Ageism is everywhere. Its much more than sexism in the job market, or
thats how it seems from where Im standing. Even the BBC is a culprit.
Their appointments brochure says: The BBCs personnel policies are
based on equal opportunities for all This applies to opportunity for
training and promotion, irrespective of sex, marital status, creed, colour,
race or ethnic origin, and the BBC is committed to the development and
promotion of such equality of opportunity. Traineeships are available
to suitably qualified candidates under the age of 25.
Ageism is lagging behind sexism, racism, and handicappism because
even the oppressed seem to accept the discrimination. The public and
private sectors are obsessed with attracting young high-flyers. Yet there
are many professions that would benefit from the maturity and stability
the older entrant can bring. This is recognized by the Probation Service;
for example, who welcomes experienced adults looking for a second
career.
The armed services and police, perhaps, could think about strenuous
aptitude and fitness tests rather than imposing a blanket upper limit on
entrants which is arbitrarily and variously fixed between 28 and 33. The
administrative grade of the Civil Service assumes the rot sets in at 32.
My own pressing concern is to alleviate my guilt. I loved every minute
of my university education, and Im desperately grateful to the
Government for financing me through this at a cost of over $10.000. But
unless someone gives me a job, how can I pay them back in income tax?

Jenny Ward



118
China overtakes Japan as second-biggest
economy

China is now the worlds second-largest economy. It has overtaken
Japan, which became number two in 1968. Experts say China is on
course to overtake the USA by 2030 to become the worlds biggest
economic power. Newly-released figures value Chinas economy at
$1.33 trillion, just higher than Japans $1.28 trillion. Just five years ago,
Chinas economy was half as small as Japans. China still has a long
way to go to get to number one - Americas economy is currently worth
$14 trillion.
China is experiencing extremely fast economic growth and is
already the worlds biggest exporter. It is also the worlds biggest
importer of cars and steel. Its rapidly growing and wealthy population is
spending like theres no tomorrow. In contrast, Japan has a rapidly aging
and shrinking population which doesnt want to spend. The Japanese are
still among the richest people in the world. On average, a Japanese
person earns nearly $38,000 a year, compared with $3,600 for a Chinese
worker.
PHRASE MATCH
Match the following phrases from the article.
Paragraph 1
1. It has overtaken a. to get to number one
2 China is on course to b. economic power
3. become the worlds biggest c. as small as Japans
4. Chinas economy was half d. Japan
5. a long way to go e. $14 trillion
6. currently worth f. overtake the USA
Paragraph 2
1. economic a. wealthy population
2 the worlds biggest b. nearly $38,000
3. Its rapidly growing and c. exporter
4. spending like d. population
5. a rapidly aging and shrinking e. growth
6. a Japanese person earns f. theres no tomorrow

LISTENING GAP FILL
China is now the worlds second-largest economy.
119
__________________ Japan, which became number two in
1968. Experts say China __________________ overtake the USA
by 2030 to become the worlds biggest economic power. Newly-
_____________________ Chinas economy at $1.33 trillion, just
higher than Japans $1.28 trillion. Just five years ago, Chinas
economy __________________ as Japans. China still has a long
__________________ number one - Americas economy
__________________ $14 trillion.
China is experiencing __________________ economic growth
and is already the worlds biggest exporter. It is also the worlds
__________________ cars and steel. Its rapidly growing and
wealthy population is __________________ no tomorrow. In
contrast, Japan __________________ and shrinking population
which doesnt want to spend. The Japanese
__________________ richest people in the world. On average, a
Japanese __________________ $38,000 a year, compared with
$3,600 for a Chinese worker.

MULTIPLE CHOICE
China is now the worlds second-largest economy. It has (1) ____ Japan,
which became number two in 1968. Experts say China is on (2) ____ to
overtake the USA by 2030 to become the worlds biggest economic
power.
Newly-released figures value Chinas economy (3) ____ $1.33 trillion,
just
higher than Japans $1.28 trillion. Just five years ago, Chinas economy
was
half as small as Japans. China still has a long (4) ____ to go to get to
number one - Americas economy is currently (5) ____ $14 trillion.
China is experiencing (6) ____ fast economic growth and is already the
worlds biggest exporter. It is also the worlds biggest importer (7) ____
cars
and steel. Its rapidly growing and wealthy population is spending like
theres
no (8) ____. (9) ____ contrast, Japan has a rapidly aging and shrinking
population which doesnt want to spend. The Japanese are still among
the
richest people in the world. On (10) ____, a Japanese person earns
nearly
120
$38,000 a year, compared with $3,600 for a Chinese worker.
Put the correct words from this table into the article.
1. (a) overtaking (b) overtakes (c) overtaken
2. (a) course (b) cause (c) coarse
3. (a) at (b) on (c) in
4. (a) weigh (b) ways (c) way
5. (a) worthless (b) worth (c) worthwhile
6. (a) extremely (b) extremes (c) extremity
7. (a) at (b) by (c) of
8. (a) today (b) tomorrow (c) yesterday
9. (a) On (b) In (c) At
10. (a) average (b) available (c) avoid

SPELLING
Spell the jumbled words (from the text) correctly.
Paragraph 1
1. It has nekrtveoa Japan
2. esrEtxp say
3. economic eorpw
4. just ergihh than Japans
5. $1.28 rnoiillt
6. enlrcytur worth $14
Paragraph 2
7. fast economic trhgow
8. the worlds biggest roeperxt
9. rapidly owgrgni
10. spending like theres no omotworr
11. In trtansoc
12. On raevgea

PUT THE TEXT BACK TOGETHER
Number these lines in the correct order.
( ) China is experiencing extremely fast economic growth
and is already the worlds biggest exporter. It is also
the
( ) in 1968. Experts say China is on course to overtake the
USA by 2030 to become the worlds biggest economic
( ) tomorrow. In contrast, Japan has a rapidly aging and
shrinking population which doesnt want to
121
( ) go to get to number one - Americas economy is
currently worth $14 trillion.
( ) nearly $38,000 a year, compared with $3,600 for a
Chinese worker.
( ) worlds biggest importer of cars and steel. Its rapidly
growing and wealthy population is spending like theres
no
( ) power. Newly-released figures value Chinas economy
at $1.33 trillion, just higher than Japans $1.28
( ) trillion. Just five years ago, Chinas economy was half
as small as Japans. China still has a long way to
( 1 ) China is now the worlds second-largest economy. It
has overtaken Japan, which became number two
( ) spend. The Japanese are still among the richest people
in the world. On average, a Japanese person earns

READING
With a partner, put the words back into the correct order.
1. now second economy is worlds largest China the -.
2. on course to overtake the USA by 2030 China is.
3. $1.33 value Chinas economy trillion at Figures .
4. as was Japans half as Chinas small economy.
5. $ economy 14 is trillion currently worth Americas.
6. economic fast extremely experiencing is China growth.
7. worlds and biggest steel importer of The cars.
8. no theres like Spending tomorrow.
9. are Japanese The richest the among still.
10. a 000 , 38 $ nearly earns person Japanese A
year.

DISCUSSION (Write your own questions)
STUDENT As QUESTIONS (Do not show these to student B)
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
6. ________________________________________________________
DISCUSSION (Write your own questions)
122
STUDENT Bs QUESTIONS (Do not show these to student A)
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
5. ________________________________________________________
6. ________________________________________________________

WRITING
Write about China for 10 minutes. Show your partner your
paper. Correct each others work.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
HOMEWORK
1. VOCABULARY EXTENSION: Choose several of the words
from the text. Use a dictionary or Googles search field (or
another search engine) to build up more associations /
collocations of each word.
2. ECONOMIES: Search the Internet and find more information
about economies. Talk about what you discover with your
partner(s) in the next lesson.
3. MAGAZINE ARTICLE: Write a magazine article about China.
Include imaginary an interview with Chinas leader. Read what
you wrote to your classmates in the next lesson. Give each other
feedback on your articles.
4. WHAT HAPPENED NEXT? Write a newspaper article about
the next stage in this news story. Read what you wrote to your
classmates in the next lesson. Give each other feedback on your
articles.
5. LETTER: Write a letter to Chinas leader. Ask him three
questions about Chinas economy. Give him three of your
opinions on Chinas economic success. Read what you wrote to
your classmates in the next lesson. Your partner will answer the
questions you asked.


123
The scheme for rendering

1. The article under observation
under review is headlined
under consideration is entitled
in hand
The title deserves special commenting as
calls for special comment
is very meaningful and deserves special attention.
The article presents (information about smth.)
introduces data on
offers an overview of
provides the reader with
examines
The article is aimed at (analyzing approaches to)
2. The article is devoted to the problem (the analysis of )
deals with
is on
highlights the consequences of
brings up the problem of
The author dwells on (upon)
concentrates on the aspect of
touches upon the issues of
highlights
The aim of the author is to provide the reader with some
material on
3. There are 3 areas Id like to deal with
There are 2 (3) main points I intend to make
The first aspect I intend to concentrate on is
Firstly, Id like to consider
To begin with, the author considers
describes
touches upon
4. Further the author reports that
moves on(to consider ) another aspect of the problem
Another aspect I want to discuss concerns
The next (one more) point Id like to mention is that
Let me cover one more aspect (point)
A related problem is
124
What is more Further more
Also Apart from that
Besides Moreover
Firstly , Secondly , Thirdly , Finally .

5. Let me refer to the article itself.
consider the problem in more detail.
As a matter of fact This demonstrates
(that)
As the article puts it This indicates
Let me adduce some examples . This implies
Id like to mention that
Its worth saying that
It should be noted, however, that
Id like to point out (focus on)
Let me support my point of view with the following arguments(
by giving reasons for )
The author stresses the fact
points out
underlines
emphasizes
On the one hand, on the other hand
Let me consider it from another perspective(from the
perspective of)

6. To sum it up I want to say
And by way of conclusion, Id like to point out
Taking everything into account (into consideration)
On the whole
To summarize what Ive said so far
Let me conclude by saying that
All things considered
Lastly, theres a matter of to be considered.
addresses theoretical/practical aspects of the issue.

7. On reading the article, we realize the fact, that
Generally, my feeling is that the article highlights an acute
(controversial) problem
I take the view that
125
From my perspective
My vision of the problem is
I am inclined to believe that
As far as Im concerned



































126
References

1. .. : . .
.: ; , 2004.-235.
2. .., .. - .-
, 2004.-351.
3. Business Watch. Keith Maurice. Prentice Hall Regents.- 2006.- 145p.
4. Cotton D. Keys to management. Longman ltd 2003 , 224p.
5. Adrian Pilbeam Market Leader. International Management Harlow:
Pearson Education Limited, 2008, 96p
6. L. Jones, R. Alexander New International Business English.-
Cambridge University Press.- (Students Book). 2010, 176p.
7. L. Jones, R. Alexander New International Business English.-
Cambridge University Press.- (Work Book). 2010,143p.
8. Lloyd & Preier. Business Communicative Games. Oxford: Oxford
University Press, 2003.
9. Moor B., Parsons C. English for business studies. Phoenix ELL.
2006.
10. Peter Strutt Market Leader. Business grammar and usage
Longman, 2010, 221p.
P.H. Collin Dictionary of economics. Bloomsbury. 2010. 220p.
13.http://www.NewsEnglishLessons.com/1008/100816-
china_economy.html

127
,
. . , ;
, .
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