Who is Who? *ho is who?

15

those which are not registered

, Who is Who? ( (unincorporated) and do not ac ,
?), , quire an independent existence.
30 .
.
(
*).

Types of Business
There are five main types of
business entity in the UK and
the US. E ach of these five is
represented in this book by a fic
titious organisation. This check
list gives a short summary of
each organisation followed by a
brief definition of its legal sta
tus.
Where the British and American
terms are similar, the US term is
given in parentheses; this does
not mean that they are identi
cal.
There is an important distinction
between:
registered (incorporated) organi
sations which are legal entities and
have an existence separate from
their owners, and:
-
Elecom pic Ele com AG (Public Limited Company)
12500
This is a large firm with 12,500
employees in the UK. Elecom pic
produces computer hardware . Ele com plc
and telecommunications prod
. ucts. It has a German subsidiary !
{Deutsche e le com) employing .
120 staff at hs Hamburg loca {De utsche
. Elecom),
tion. Ele com pic also has close
links vrith Deutsche Information 120
,
ssysteme (DIS AG). . Ele com plc
.
Deutsche Informationssyst
ee m
,
(DIS AG).
, A Pubhc Limited Company (pic)
is one that can offer shares and (
; , securities to the public and is
, , quoted on the London Stock plc) ,
Exchange. It must have an au
thorised share capital of at least
. 50,000 of which no less than
25% must be paid up. (US = .
Pubhc Corporation.) ,
:
( ,
) 50 . ..,
, 25%
, (
, Public Cooration).
16 Who is who? hc is who? 17

Am ericom Incorporated (Inc.) UabiUty of its shareholding

irtctors is limited in the event
This is a large public
X the company being wound up.
tion with its headquarters in
US = Corporation.) (
Chicago, employing about , 11).
120,000 staff. Ame ricom has 120
Many private companies fall into
fonned an alliance with Ele com . Ame ricom
the category of small and
pic, enabling both companies to
mediumsized enterprises
extend their respective markets. Ele com pic,
SMEs). A small enterprise (US .
A bluechip company, Ame ri
= S Corporation) usually has no (
com's shares have recently been .
more than fifty employees and S.
going through the roof ^//,
often considerably fewer, a ration) 50
,
mediumsized enterprise no
more than 250300.
, ;
.
A public cooration is similar 250300 .
to a pubUc limited company in
the UK.

.
Granville, Thom pson and Styles
This is a small accountancy
Coopers Limited (Ltd.) pannership jointly owned by
ihree partners.
This is a small building con .
tractor specialising in shop fitting , In a partnership, all members
and office refurbishment. It is a have joint liability for debts. This
privately owned family firm means that if one partner .
which was founded in 1894 and . defaults, the remaining partners ,
employs about fifty staff. , are liable.
1894 ,
50 .
.
A private company cannot offer
its shares to the public.
. ^
18 Who is who? Who is who? 19

Stylehouse .
This is a franchised business , accountancy franchise, franchised ,
offering design consultancy to accountancy partnership
retail outlets. , go througn the roof ( )
.
A firanchise is a licence allowing , acquire headquarters -
a distributor, trader or manufac , alliance ; in the event of
turer to sell or manufacture a independent
particular product or service. , blue-chip company (shares) joint liability for debts
(
. ); legal status
' legal entity
building contractor (
)
Adman business entity liability ;
;
This is a sole trader trading as considerably liable
Adman, offering public relations , ; ; ,
advice to organisations. consultancy
Adman ; licence {), license {Am.)
; ,
limited/Limited/Ltd.
. debt , {,
A sole trader is an individual -
default (be in default) -
who runs an unregistered (unin
()
corporated) business. He is a , )
distributor
vAc proprietor. (
enable limited liability
) .
(). {

enterprise , )
.
, location ;
extend respective markets manufacturer
medium-sized enterprise/company
fall into ; ,

form an alliance paid up {share capital) {
found ( company) / )
() ^
20 Who is who? Unit
partnersbip share This unit deals with attending and giving interviews and fill
privately owned share capital /
; ing in a n apphcation form for a graduate trainee scheme.
shareholder, shareholdmg director

TAe prospective emphyee

Corporation (Am.) ; -
shop fitting
Public Limited Company/plc/
PLC (Br.) sole proprietor Moira Kelly has just graduated from university and wants to
u^in for a career m accountancy. She has applied to Granville,
staff , Thompson and Styles* and has been invited t o a n interview for
(quoted on the stock stock exchange, the one of two graduate trainee posts. Competition is tough, and
exchange)
Moira is one of only six candidates to reach this stage. There
( subsidiary (company)
) ( are three people o n the interview panel: Jim Granville, Andrea
icfivbidmient - ) Bradshaw and^Jane Cove.
; trader , ,
rauining (-),
(-) wmd up, wound up (past part.)
retail outlet , , ;

busmess (un)incorporated/Inc. (Am.)
(); ()
(un)registered (Br.) ()-
securities

What is a blue chip?

An American term, blue chip describes the most respected
companies on the stock exchange and relates to the highest
value chip in poker. Blue-chip companies are well known,
hold large assets and have good growth.

Jane: Helio Moira. Thank you for taking the time to come
and see us again. Before we go any further, I'd like to
assets
have good growth
introduce everyone here. Jim is the firm's senior partner,
relate to sth. Andrea has just quahfied and I ' m responsible for H u m a n
;
hold large assets Resources. I'll hand over t o Jim first. ^
term
 22 Unit 1 The prospective employee 23

Jim: I ' d like t o r e p e a t t h e w e l c o m e . We will use this

opportunity t o ask you more about t h e information
apply (for a job) - -hand over (to)
you've provided o n your CV and to answer any questions
-.
that you may have for us. M y first question is t o ask
accountancy Human Resources
what you know about our firm. impress
attend (an interview)
Moira: I saw your brochure in the university careers centre and ,
(/)
was impressed by what I read. I know you have some mconsistency
be in position to do sth.
high-profile clients such as Elecom plc* and Stylehouse* , ,
and that your graduate scheme has been miming for -. interview (for job) /
nearly twenty years. I did talk to a couple of the big be invited to {
fmas in February but your scheme struck m e as the -. )
most suitable. be responsible for sth. interview panel
-. junior partner
Andrea: Can you tell us what you find particularly attractive?
before we go any.ftirther post, job , ,
Moira: I like the idea of workuig for a smaller partnership as I progress up the career ladder

feel it would give m e a wider range of experience. I would

like to speciaUse later, perhaps in the area of taxation.
by Friday
Jane: Where do you see yourself in five years' time? prospective employee
candidate, applicant ,
Moira: I would like t o see myself progressing u p the career ()
ladder, perhaps as a junior partner. provide
career ladder
Jim: What particular skills have you acquired that you'll bring qualify
,
range of experience
to our firm?
reach stage
Moira: I ' m good at detail and have developed a flair for tracking ' (1 Vitae)

competition
down inconsistencies. I also have good listening skills scheme
develop flair (for sth.)
which I consider to be important in accountancy senior partner
-.
skiHs and experience
The questions continue for another thirty minutes. eraduate {s.)

Jane: D o you have any questions for us, Moira? > ; -
Moira: Yes, I would Uke to know when you expect to be making ( strike sb. as
your decision. , )
sraduate (v.) suitable
Jane: We're seeing all the candidates today and will be in a
) taxation
position t o make a decision tomorrow. You'll hear from tough ( )
eraduate trainee posts
me by Friday whether you have been successful or not. 1 (- track down ,
Moira: That's great. I will be back at m y parents' address from :41) ,
Sunday if you need to contact m e there. Wgfa-proffle client train for career ,
Jane: Thank you for attending. )
 24 Unit 1 prospective employee 25

Taski Task 2
Give the words in full. these statements true or false?
True False
1 . Moira Kelly, a g e, is one of the c s being mter-
1 . Was it a good idea for the apphcant to bring
viewed for a trainee p t.
2. She has p d information about herself o n her CV.
his goat to work?

3 . Moira would like to acquire a wider r. e of e e
2 . The apphcant was trying to get himself noticed.
and to speciahse later in the a a of t n.
3 . "CV" stands for "Curriculum Vitae".
4. Jim Granville asks her what s s she has acquired.
4. The apphcant got the position.
5. Moira is a good listener and she has a f. r for t g
down i s. Mailing the interview woric
6. One of the interviewers tells her that she will hear by Friday
w. r she has been s 1. As a selection tool, the interview remains popular. Despite
the sophistication of alternative selection methods such as
assessment centres, competency-based application forms,
third-party screening and telephone interviewing, these will
Don't bring your goat to work! never completely replace the face-to-face meeting. It is a
falhble process, however, and decisions can be coloured by
Trying to get noticed can backfire! An apphcant for a
first i m p r e s s i o n s . To h e l p c o u n t e r a c t t h i s , t h e r e are
creative position with Saatchi attached his CV to a goat and
released it i n t o t h e r e c e p t i o n area. H e failed t o get best-practice guidelines from organisations such as the In
shortlisted... stitute of Persoimel and Development. There is also a grow
ing body of employment legislation both in Britain and in
the US which seeks to protect the rights of interviewees.

With equal opportunities being of great importance, inter
backfire viewers must not ask questions which could be discrimina
tory. For example, asking a female candidate about her fu
fail , ture family plans or a n ethnic minority candidate whether
get oneself noticed his religious affiliations would interfere with his working hfe,
get shortlisted could be seen as discriminatory
reception area
release
 26 Unit 1 "le prospective employee 27

Leadership skills (e. g. Have you ever taken responsibility
ror organising an event?)
affiliation
application fonnm
body (of legislation) Ability to think and plan strategically (e. g. On what basis did
colour (v.) (fig.) (.) -. you select your course at university?)
competency , ,
, '
counteract Analytical skills (e. g. Tell us how you approach a problem.)

despite
discriminatory ; Communication skills (e. g. Dealing with difficult people, resolving
employment legislation disputes.)
falUble ;
guideline ;
interfere with , Public speaking (e. g. Have you ever given a presentation to a
protect , group of people?)
remam popular ;
; Ability to work as part of a team (e. g. Please tell us about any
groups you have belonged to and what role you played within them.)
seek ; >1
; ,
sophistication
,
third-party screening
ability ,
Task3 acquire
aoalytical skills
Fill out the application form. approach (v.)
candidate selection
fcpute (s.)
Application for a graduate trainee scheme evidence
leadership skills
The information you provide here will help us select candidates for
presentation
the intennew stage. We are looking for evidence of your experience
nsaiye a dispute
and ability in these areas which may have been acquired during your
strategic thmkmg
time at school or university.
take responsibility for sth. '
-.
 28 Unit 1

Tasks
Unit
This unit deals with attending business conferences, tech
Number the foUowmg competencies m order of importance niques for making contact with fellow delegates, business
for business communication.
etiquette and filling in a conference registration form.
Analytical skills
Leadership skills

Being adaptable
Being well-organised

Strategic thinking
Taking responsibility
The ititernathiial conference
for sth.
Paul Lodge is attending an mtemational Information Technol-
Decision-making
Fitting in
Taking the initiative
oc>- (IT) conference at the New Exhibition Centre ( N E C ) m
Inteersonal skills Working as part of a team
Birmingham, England. H e has just completed the registration
Working independently
formaUties and is making his way towards the first session he
has booked. Soon he's approached by a fellow delegate.
mce Hi. Are you gomg to the integrated systems session?
Sev^man:
bemg adaptable
( ..) Paul: Yes, that's the one in the m a m auditorium, I think.
being well-organised \ Ince offers his hand in greeting.
decision-maldng i Ince: I ' m Vmce Newman, Senior Vice President of Systems
fitm ; from Americom*, USA. I see from your badge you are
, ,
Paul. ^

mterpersonal skills
workmg as part of a team
( )
working independently
( )

!
30 Unit 2 r- internationai conference 31

Paul: Yes, that's right. Paul Lodge, Chief Systems Engineer

from DIS AG*. attend a conference fellow delegate (
Vince: G o o d to meet you, P a u l Are you staying here in town? , )
Paul: Yes, at the Post House. It's just outside the city centre. a|4>roach (v.) ( get cracking ( )
Vince: Well, we must meet up after the session. Here, let m e -.)
give you m y card. anditorium have lot m common
Paul: Thank you, here's mine. Not that I'm aware of. ,
, mvolvement (.) ()
Vince: Catch you later, Paul.
. ( -. )
Another delegate approaches Paul. badge , IT (Information Technology)
be supposed / due to do sth.
Charles Excuse m e , do you know the way to the intergrated (), make one's way (to)
Shearer: systems session? (
Paul: Yes, it's this way I ' m going there myself Catch you later ... )
Charles: O h fine. D o you mind if I come along with you? ... run sth.
Paul: N o , of course not. chap (.) registration formalities
Charles: I ' m Charles by t h e way, Charles Shearer, from Elecom Do you mind if ...? He
, ...? representative
plc*. session
eeergency support team
Paul: Paul Lodge, ^(7. state (v.) ;
Charles: Pleased to meet you, Paul. I thirik we have a lot in towards
common! Our people are spending a lot of time talking
with yours at the moment. Task 1
Paul: Yes, that's riglit. I n fact, I m e t one of t h e m last month.
Robert Bridges, one of your senior specialists, I think. Restore the word order.
Charles: Yes. Bob runs the emergency support team in London. 1. at the N E C / Paul Lodge / in Birmingham / a conference /
D o you have any involvement with Americom? is attending
Paul: N o t that I ' m aware o f Although you never know what 2. and introduces himself / A fellow delegate, / Vince N e w
talks are taking place at high level. man, / offers his hand
Charles: One of their senior people is supposed to be here. A
3. in the main auditorium / the integrated / going to / systems ses
chap by the name of Vince Newman. I'd like t o meet
sion / They are both
him.
4. Paul / approaches / Another fellow delegate, / of Charles Shear
Paul: H e ' s going to..be at this session, so you'll get your
opportunity. er, / by the name
Charles: That's good. Anyway, we'd better get cracking, it's 5. whether / with Americom / Paul / Charles asks / any in
due to start. volvement / he has
 32 Unit 2 international confe re nce 33

Task 2 Tasks
Categorize in terms of: Befbce the italicised words and phrases with the ones
Formal 1. "John, I'd like you to meet Colin Harper. " from the text.
introducton (a), John: "Pleased to meet you, C o h n . " 1 . Things can sometimes go wrong
Standard 2 . "Peter, this is Angela." 2. & e you later.
introduction (b), Peter: "Hello, Angela."
Informal 3 . "Ian, I'd Uke to introduce you to Jan King." 3. He's a nice man
introduction (c) Ian: "Nice to meet you, J a n . " 4 . We'd better Ahat);
4 . "Susy, meet Joe." 5. Be care ful of body language!
Susy: " H i , Joe!"
6. The wrong gesture can ge t you into trouble .
1. 2. 3. 4.

Beware of body language! Business etiquette

If 60% of communication is nonverbal, gestures can On the whole, the G e r m a n speaker will find fewer differ
be dangerous! They don't travel uniformly across borders ences when conducting busuiess in the U K and in the U S
and the wrong one can land you in hot water. George Bush than with the business cultures of other countries. A less
got caught out in Austraha by giving the victory salute with formal approach may be adopted in some areas Amer
his pahn mwards. The meaning? Rather less pohte than he icans will usually apply first n a m e terms but there are
intended! many similarities. Punctuality is expected particularly in
the U S and lateness will m e e t with disapproval. T h e
personal zone that is, t h e distance we feel most c o m
fortable with when standing next to someone at a social
engagement or business meeting is similar, at between
beware of sth. , 50 cm and 120 cm.
border (s.)
(.) , .
catch out (get caught out) . In the U K , there will be some small talk before turning to
busmess matters; m the U S , they will quickly get down to
inwards business. I n the U K and in the U S , the h a n d is generally

land sb. in hot water offered in greeting, only o n the first introduction and not at
pahn () subsequent encounters.
uniform(ly) ,
victory salute
2 30
34 Unit 2 -le international conference 35

choice 2"" choice
adopt , , introduction () Company law for beginners
; (.) less formal approach ( Excelling at interviews
apply first name terms ) ; Surviving international cultures
-. Customer service
busmess matter meet with disapproval Managing the virtual office
; , Networking for business
on the whole
conduct busmess personal zone Please indicate below whether you wish to pay by:
; Cheque Amex Mastercard Visa
disapproval (
encounter (s.) ) Card number Expiry date
engagement , , social engagement ,
; [.) , ,
get down to business Name on card
subsequent
Will you require accommodation?
Yes Single Double
Task 4
Fill out the Registration form.

TimeT Meet accommodation

excel
expiry date
;
; ;

CONFERENCE REGISTRATION first come, first served
( )
Name
Address
City
Postal Code Phone
Please indicate below which seminars* you wish to attend and provide
an alternative choice. Whilst we will do everything we can to
accommodate your choice; attendance will be on a first come, first
served basis.
*Full details in the brochure.
 After-sales service 37
Unit
Receptionist: G o o d morning, Lightways, Jane speaking. H o w
Tliis unit deals with benefiting from, a n d giving, good may I help you?
after-sales, or customer service and filling in a customer Karen: G o o d m o r n i n g . T h i s is K a r e n J o n e s from
complaints form. Stylehouse. I need to speak to someone in your
after-sales service.

After'sales semce Receptionist: Certainly, Madam, I'll just put you o n hold while
I connect you.

Karen Jones manages a Stylehouse * franchise in Kensington.
She has designed and arranged the fitting for a n exclusive gift
shop in Mayfair. Last night, the hghtmg system m the display
window failed. It is two weeks before Christmas, the major retail
period, and the irate owner was o n the phone first thing this
morning to report the problem. Karen is caUing Lightways, the
supplier. ^ Fred:
Karen hears the strains of Vivaldi's Four Seasons for a couple
of seconds.
Fred Bell: After Sales, Fred speaking. H o w may I help?
Karen: Hi. It's Karen here, from Stylehouse. One of my
cUents has an urgent problem with a lighting system
you suppUed recently It seems to be defective.
C a n you give m e the model number and describe
the fault?
Karen: Yes, it's the RJ239. The diflused lighting system.
It's m a window display. The lights started flickering
last night and they had to turn t h e m off
Fred: Have they tried t h e m again today?
Karen: Yes, they tried t h e m when they opened the shop.
Again the same problem.
Fred: What is the name and address of the shop?
Karen: It's Giftbox in Shepherd Market, Mayfair.
Fred: Yes, I r e m e m b e r the order. It was a couple of
months ago, wasn't it?
Karen: Yes, October, and now with Cristmas around the
c o m e r ...
Fred: D o n ' t worry, I understand, we'll get an electrician
down there as soon as possible to fix it.
Karin: Thanks, I'll leave it with you then.
Fred: I'll give you a call to confirm when we've been.
Bye for now.

1 Karen: Bye.
38 Unit 3 After-sales service 39

Karen calls the suppher of the hghting system and asks to

speak to someone in t h e n afler-sales division.
after-sales service u^te ,
; - I'll leave it with you. ( Karen Jones, the manager of a Stylehouse franchise in Kens
TMiiHoe ) ington, has designed and arranged the fitting for a gift shop
arrange , . in Mayfair.
-.; (.) lighting system It's two weeks before Christmas and the lighting system in
() the gift shop's display window has failed.
defective , - manage shop, busmess, etc.
/ Fred asks for the name and address of the shop and says he
design (v.) , , will send a n engineer down there to fix it.
.. Karen tells h i m the number and describes how the lights
diffiised lighting system order (s.) started flickering.
( report problem
)
display window retail period , 1. 2. 3. 4. 5. 6. 7. 8.
fault / faulty (defect / defective)
/; /
shop fitting When does it end?
fitting (of a shop) ,
; strams (.) Marks & Spencer is renowned for its ' n o quibble'
fix (v.) supplier guarantee o n refunds. However, even this has its Umits, as
franchise (s.) supply (v.), supplied (past part.) an assistant was overheard pohtely refusing a refiand for an
I'll just put you on hold, (.) , article of clothing bought ten years earlier ...
window display
( ).

Task1
assistant
Sequence to reflect the contents of the dialogue. caarantee on refunds ,
a She is connected to Fred Bell, w h o asks her to give h i m the
model number and to describe the fault. o quibble (.) ,
i^erhear ;
b He will call Karen to confmn when the work has been com rtftmd (s.) ,
pleted.
c Stylehouse is a franchised business offering design cosultancy rrfnse (v.)
-unowned for sth. ; -.
>1
to retail outlets.
40 Unit 3 After-sales service 41

Task 2
List the words that do not belong in each set. achieve , , ,

L A order B proprietor owner
customer complaint
2. A alliance B guarantee partnership customer service ;
3. A staff B employee client
customer satisfaction
4. A quibble B area zone

5. A chap B delegate representative estimate (5.) ,
firm(ly) , ; ,
2. 4.
1. 3. 5.
former ,
forward-thmkmg
goal
Customer service unprove
once
What is good customer service? Is responsibiUty over once
refer to sth. as {.) -. -.
the sale is made? If estimates are correct that it costs five
request (s.)
times as m u c h to acquire a new customer t h a n to keep an respond to ; ;
existmg one, then achieving customer satisfaction should be source of information
the goal of every organisation. supply (v.), supplied {past part. ) ,
succeed
Forward-thinking organisations welcome customer c o m torn sth. into sth. () -.
plaints and feedback as valuable sources of information 1-.
which can be used to improve the business. By responding
to customer requests with "tell us what you want and we'll
supply it", the U S has turned service excellence into a fine
art, with the customer firmly placed at the heart of the
business.

Jan Carlzon, the former president of SAS, referred to every

customer contact as those "moments of truth" which defined
the organisation in the customer's eyes and helped it succeed
or disappear from view.
42 Unit 3
Unit
Tasks
This unit deals with attending and participating in a n A G M ,
Fill out the Complaints form. the role of the chairman, the dismissing of an employee and
the power of shareholders.

Stykfumse
... By design The annaalgeneral meeting
Customer Complaints form Elecom pic* is having its A G M . Last year, this event passed
gnoothly, barely registering in t h e fmancial press. This year,
If you have experienced a problem with one of our products or bowwer, the m o o d is different. Elecom's share price has taken a
services, please complete the form. By providing this information,
rumble following allegations of financial malpractice. T h e
you help us to serve you better.
eeting is heavily attended by Elecom's shareholders, who are
At Stykhouse we aim to give 100% satisfaction. represented by a spokeswoman.
Are you a new or existing StyCcfumse customer?
S^keswoman: We've seen the figures and I have t o say they are
New O Existing O n o t impressive. We have also listened t o t h e
Which area of Styfefunise services or products have you experienced board's summary I ' m not satisfied that it explains
a problem with? Elecom's poor profits.
Corporate design services O Cnairman: Despite significant growth in the telecommuni
Residential design services O cations industry, competition is tough, particu
Lighting systems O larly from the Far East. The strength of the pound
Colour/Furnishings O has had a n impact on exports... ^
Other O
Who is your nearest Stykfwuse representative?
Thank you for taking the time to complete this form. Please provide
your details overleaf and we will get back to you.

aun to do sth. ;
-. overleaf
corporate
customer complaints form provide ,
residential ; {.)
fiunishings , ,
44 Unit 4 "he annuai general meeting 45

Spokeswoman: M r Chairman, with respect, you are not talking

to the press. As shareholders, we require frank
answers. You are as aware as I a m that the reason A G M (Annual General Meeting) gross misconduct
this meeting is so well attended is because of ;
recent speculation in the press. What we really
action , grudge ; ()
want to hear is whether there is any truth in these
allegations of -.
stories. heavily attended (.)
( -.)
Chairman: This ... story, for want of a better word, is nothing ... as aware as I am (that) ...
m o r e t h a n t h a t . T h e b o a r d investigated t h e , , unpact/ have an unpact (on)
rumours immediately and found t h e m to be false. , , ;
Spokeswoman: That was last month. Unfortunately, it doesn't ... -.
explain the new allegations of fraud from one of assertion mipressive
your former staff members. barely , mvestigate rumour
A disaffected e m p l o y e e . J o h n S i m m s was board, the ; ()
Chairman:
kreach (v.) ; financial malpractice
dismissed for gross misconduct. H e isn't the first
/
person to respond by gomg t o the press.
bring to light
Spokeswoman: A disaffected e m p l o y e e o r a n i n n o c e n t mood
coafidence (m) ;
whistle-blower? pass smoothly
Chairman: An ex-employee with a grudge! coafidentiality - ( ;
Spokeswoman: So, the assertions he made in The Guardian are )
completely unfounded? coatravene ; poor profits /
Chairman: Absolutely!
Spokeswoman: A n d he wasn't sacked for bringing irregularities eespite ; raised voices (.)
AsafTected ; register (in the press)
to Ught?
;
Chairman: H e was dismissed for contravening c o m p a n y ;
femiss (an employee)
regulations. I cannot breach confidentiality ui a ( )
public meeting by revealing t h e nature of his irown out regulations ; ;
actions. It would not be in his interest t o do so. fgores
Spokeswoman: M r Chairman, Elecom's share price has fallen by far want of better word require
30%. Profits are down by 10 miUion. What are restore
you, the Board of Directors, going t o do to r e fonner staff members reveal ; ;
store t h e City's confidence?
tnak answer rumour ,
The chairman's response is drowned out as the meeting sack (someone)
is interrupted by raised voices from angry shareholders. fraud ; (-.) ^
46 Unit 4 -e annual general meeting 47

shareholder the Far East

share price unfounded Who are the Motley Fools?
significant , whistle-blower ,
Taking their n a m e from t h e fool i n Shakespeare's
smoothly ( ); ^ As You Like it, this group provides financial advice
spokeswoman , and information for amateur shareholders. Aimed at proving
staff member financial affairs are accessible to all, they disperse wisdom
strength/ weakness of the pound %ia the Internet, challenging the influence of banks and their
{.) / advisers: http:www. fool.co.uk
with respect
take tumble ( )


accessible (to) disperse wisdom {.)
airiser ; (
be aimed at sth. , )
-. fool ,
Task1 faaocial advice provide
( motley ,
Match to form sentences.
) ;
1 . T h e meeting was heavily fcancial affahs wisdom ;
() ; {.) ,
2. The chairman's response challenge (v.) ,
3. A disaffected employee
4. The board investigated
Task 2 _ _ _ _ _
5. The assertions he made
Fm m the blanks usmg the following words: spokeswoman, satisfied,
a were completely unfounded, restore, tumble, allegations, require, impressive.
1 . Elecom's share price has taken a this year.
b attended by Elecom's shareholders,
2. There are of financial malpractice.
c was drowned out by raised voices,
3. The shareholders do not find the figures and are not
d was dismissed for gross misconduct, by the board's explanation.
e the rumours immediately 4. They frank answers.
f. The asks what the Board of Directors is going to d o
1. 2. 3. to the City's confidence.
48 Unit 4 / annual general meeting 49

satisfy ;
Shareholder power stakeholder 1, ;
()
Although investment by individuals has increased since the
early eighties, financial institutions still dominate the scene. toe the line
Return on investment is the principal concern of this group, voting rights
many of w h o m represent large pension fimds. A sharehold wield power
ing of 5% or more brings the voting rights which enable
institutional shareholders to wield immense power in dic
tating a company's direction. This is changing slowly and the Tasks
other stakeholders customers, employees, suppliers, c o m Choose the right answer.
petitors and communities are receiving a higher profile.
1 . Who dominates the investment scene?
Shareholders are b e c o m i n g m o r e conscious of ethical
concerns and are making more demands o n companies to a Individuals. b Financial institutions.
satisfy certain criteria. T h e growth in ethical funds that 2. What is the principal concern of this group?
accomodate their wishes is starting to have an impact o n
a Large pension funds. b Return o n investment.
companies which do not toe the line.
3. What do the voting rights enable shareholders to do?
a Dictate a company's direction, b Acquhe a shareholding.
4. Who are receiving a higher profile?
accommodate (.) a SuppUers and communities. b Institutional shareholders.
certain criteria ()
community ; 5. What are shareholders becoming more conscious of?
competitor a Certain criteria. b Ethical concerns.
become conscious of ethical (.)
concerns
criterion ;
demands in: make demands on
dictate sth.
fund/ fimds/ fimduig (of) //
-.
mcrease (v.)
principal concern
receive a higher profile
return (on mvestment) (
) ^
 Unit Networking 51

Participant 2: It's a form of promotion, of getting your name

This unit deals with networking, formmg potential business
known.
contacts, attending courses and filling in a course question-
.Amy: Yes, it's that too. What else?
naire.
Karen: It's about building up links with people for mutual
benefit.

Networking
.Amy: That's a good answer Let's concentrate first on
m u t u a l benefits. We all have our expertise in
different areas. We're good at what we do, but we
K a r e n J o n e s is a t t e n d i n g a o n e - d a y c o u r s e in effective d o n ' t have t h e skills necessary to succeed at
networking. The course is run by an American group and the everything. Networking is one way of fiUing that
leader, Amy Silverman, is introducing the basics of networking gap. Let me start by asking you (pointing to Karen)
to the participants. what your speciaUst field is.
Amy: What do you understand by networking? Karen: I ' m an interior designer and I run a Stylehouse*
Participant 1: It's a way of increasing your number of contacts. Tranchise.
Amy: Yes, that's right. Anything else? Amy: What do you know about landscape gardening?
Karen: N o t very much.
.Amy: Let's imagme you have a client. You've drawn up
the plans for the interior and the chent is happy
However, he now wants the outside of his house
t o l o o k f a n t a s t i c , so h e asks y o u w h o you
recommend. Where do you start?
Karen: I consult my list of contacts.
.Amy: And where do you have these contacts from?
Karen: A few of t h e m come from my design course, a few
I've met in the business.
.Amy: That's a start, but it might not be enough. Are
you sure you don't know any landscape gardeners?
Karen: Fairly sure, yes.
.Amy: This is an exercise for the group during the coffee
- break. Introduce yourself to someone new. I want
you to fmd out something about that individual
not relating to his or her professional hfe. After
the break we'll discuss what we've learnt.
The group breaks for coffee and Karen goes to find a partner.
52 Unit 5 Setworking 53

8 . As an () in networking, A m y asks
everyone t o introduce themselves t o someone new and to
benefit ; ,- increase (v.) fmd out something about that person.
interior designer
build up links
interior, the
certainty landscape gardening Getting your net to world
decide (on)
On the principle that you are never more than four or
definitely , landscape gardener
expertise ; five network steps away from the person you want t o meet,
; mutual benefits / you can have fun imagining what those hnks might be. As
fairly sure () we have relatively little i n - d e p t h knowledge about o n e
( -.) pomt (to) () another, you may be surprised by who knows who, w h o also
fill gap promotion knows you!

Task 1
Suggest the appropriate EngUsh equivalents to finish the sentences.

1 . A m y Silverman is the () of a -depth knowledge () -./
one-day course in () networking. -.; (.) -.
relative ;
2. She is () the basics of networking to the refafively , ,
()
3. Networking is about () links with
people for () benefit. Task 2
4. A m y says that everyone has ( ) ( ) the appropriate box.
i n different a r e a s b u t n o - o n e h a s all t h e Yes No
() skills to succeed at everything.
1. Having in-depth knowledge means toeing
5. Karen is an ( n o ) and runs
her own business.
the line.

Being surprised by something means not
6. However, she doesn't know m u c h about (
)
expecting something.

3. A few steps away means a few stages away.
7. A m y asks Karen where she would start. Karen is ()
she doesn't know any (
4. Having fun means filling a gap.
) and would begin by making a few calls to Helping one another means talking
contacts. ^ face-to-face.

54 Unit 5 networking 55

Tasks
Successful networking
Complete the Appraisal form.
Altliougli networldng fills a vital role in today's business
relations in both the U K and the U S , the approach may be
shghtly different. BestNet Enterprises
Americans will be more pragmatic and will quickly move o n
Thank you for choosing a BestNet seminar. We have enjoyed
if they feel there is little t o be gained from a particular
having you here today and hope that it has fulfilled your
connection.
expectations.
The British tend to be more loyal and wiU sometimes stick We strive for continuous improvement but to do that we need
with a network, even when there is Uttle opportunity to make your help! By taking the time to complete this short appraisal
new business. you can help us remain the best.
Whichever is your preference, to achieve success in net Please rate IJie following on a scale of 1-5 where 1 equals
working, it is essential to maintain a genuine interest in what excellent and 5 equals poor.
other people tell you. Keep a handy supply of business cards 1 2 3 4 5
and be willing t o offer assistance or a hnk, even when you How well did the course fulfil your
see n o immediate benefit to yourself expectations?
How would you rate the quality of

the handouts?
S How supportive did you find the 0

course leader?
assistance , maintain ,
be willing to do sth. How useful did you find the net

-.; move on -. working opportunities?

-. How many networking steps are you

business relations sUghtly , from the person you want to meet?

() stick with (-.) Would you consider attending a Yes No Not sure
connection supply of busuiess cards
BestNet seminar in the future?
essential ,
tend to be (sth.)
even when -.
gain (v.) , , vital role /
appraisal unprovement ,
handy () whichever - ; (.) expectations
loyal , ; fiilfil expectations rate (v.) ;
strive for sth. -.
 Unit
Resolving ttie dispute 57

James: Is it true that J o h n has been barred from attending?

Tliis unit deals with resolving disputes, whistle-blowing and Paul: Elecom has exercised its right not to aUow J o h n to be
taking strike or industrial action. here on the grounds that he's n o longer an employee of
the company.

Resolving the dispute Sue:

J o n Sinims was a finance officer at Elecom pic's* headquarters
m London. He was recently sacked and has since taken his story
to The Guardian. Sinims claims that he was the subject of a
systematic c a m p a i g n of harassment a n d this is n o w being
investigated. Despite Elecom's assertion that he was sacked for
a serious breach of company regulations, Simms insists that it
was b e c a u s e h e r e p o r t e d financial irregularities. Elecom's
workforce is u n h a p p y with the dismissal and is demanding
answers from the company. They are meeting with the union to
discuss what action they can take.
Paul Simpson: Thank you all for attending tonight. This meeting
has been called in response to the sacking of J o h n
Sinims. As your union representative, I a m aware
that many of you are unhappy with the lack of
response from the management. . James:
Paul:
Then who's protecting his rights?
J o h n remains a member of the union and he continues
to receive our support on that basis.
James: I ' m not happy with the way Elecom has behaved over
t h i s . I t ' s m y b e l i e f t h a t J o h n was s a c k e d for
whistle-blowing. Where's the protection for employ-
ees?
Paul: Judging by the numbers here tohight, I ' m sure most
members would agree with you. It's important to get
that m'essage across to Elecom's board in a peaceful way.
Sue: C a n ' t we just go o n strike?
Paul: We can't withdraw labour without first taking a ballot
of members. For this we'd need to give management
seven days' notice. Completing a ballot will take time.
James: What about picketing?
Paul: We can consider it eventually, but it must comply with
the regulations.
After the fiasco at the A G M , I think the press would be
interested to hear of further action! It doesn't look good
to our shareholders if the workforce is u p in arms!
Paul: M y r e c o m m e n d a t i o n is to seek a meeting with the
board requesting John's reinstatement. If we can resolve
this peacefiilly then we all gain. If the management
doesn't want to hsten, then we have to look for other
ways to convince t h e m . H o w do the members feel
about this?
jjmes: I suppose we ought to give it a go.
Sue: Yes. I'll support that.
?2ul: Good. That's settled then. We'll approach the board
tomorrow morning and report back next week.
58 Unit 6 Resolving the dispute 59

strike (go on strike) union member

(, whistle-blowing (s.)
assertion finance officer (.) )
attend , support (s.)
aware (be aware of sth.) give seven days' notice take action withdraw labour
-. -. ;
ballot (take a ballot), call a vote ( -.) That's settled then. ./ workforce ;
; give sth. go .
-. () -.
bar (someone) from domg sth. on the grounds that ,
-.
be up in arms (.) gain (v.) , Taski
(); ,
harassment What is the word?
board (of directors), the msist (that) (
1 . John Simrns, who was recently dismissed from Elecom plc,
), ...
c that h e was t h e subject of a c a m p a i g n of
It's my belief that ... () judging by sth.
h
, ... (-.)
breach of regulations labour , 2. Elecom asserts, however, that he was sacked for a s
lack of response breach of company regulations.
campaign of harassment (.)
3. Elecom's w. is unhappy with t h e dismissal and is
notice (s.) ;
meeting with the u t o discuss what action it can
() -.
clami sth. , ; ought (we ought to give it a go) t
(.) ( 4. Paul Simpson, the u representative, explains that
comply with sth. ) Elecom has e its right not to allow J o h n Simms
-. picket (v.) to be there.
convmce , protect someone's rights
-. -. 5. Paul Simpson's r. is to seek a meeting requesting
demand (v.) -. remstatement Simms' r.
dismissal ( , ) 6. If the matter can be resolved p , then everyone will
dispute (s.) report (v.) ( -.)
g
eventually ; request (v.)
resolve peacefiilly
exercise one's right (to do sth.) ()
m response to
-. sack ^
60 Unit 6 Resolving ttie dispute 61

Should you blow the whistle? Industrial relations in the US

Originating from football, the term describes someone Strike action is usually t h e final option. Although m a n y
who blows the whistle to stop a foul - or, in the business union members may vote to approve a strike at the onset of
world to expose corruption. In the past, the whistle-blower negotiations, in practice, t h e loss of wages and the threat to
has invariably been the one t o lose his or her job, but now the job security will make many uneasy with taking strike action.
tide is turning. N e w laws have been introduced to protect The rights of striking employees have been weakened by
individuals who disclose what the boss might have been up to recent legal decisions. T h e Supreme Court ruled in 1989
and organisations need to think twice before firing the wrong that any replacement workers hired during a strike would
person! not have to be dismissed when the strike ended. T h e same
court has also ruled that any employee not wishing to take
part is entitled to resign from t h e union without risk of

reprisal. ,
be up to sth. mvariably
blow the whistle originate from ,
(
The tide is tummg. (.)
) ( -.) approve ; replacement worker (
disclose ; . ,
think twice (before doing sth.) be entitled to do sth. )
expose ( -. reprisal
fire (v.) -.) hire workers/ employees resign (from) (.)
/
rule (v.)
Task 2 Bidustrial relations job security
Match synonyms. ( ;
( , )
1. disclose a essential -. Supreme Court (US) ( )
2. certainly b benefit )
3. expand joint k>ss of wages threat (to) (-.)
4. vital d sack make someone uneasy with
5. gain e skill at the onset of negotiations -.
6. expertise f expose ( -.)
the final option (.) vote to do sth.
7. fire g extend (.. , -.
8. mutual b definitely weaken someone's rights (.)
1 2 4. 5 6 7 8.... ) -.
62 Unit 6
Unit
Tasks This unit deals with market research, gathering information
Use the following words to write a short article about the events and entering a prize draw.
at Elecom: industrial, sacked, allegations, AGM, financial,
irregularities, share price.
It's agood idee, but wUI it sell?
Industrial unrest and shareholder anger:
Siylehouse * is a franchise offering design consultancy to retail
Elecom is in trouble! outlets. Janet Barker, head of marketing strategy, is considering
including Feng Shui consultation in Stylehouse's range of services.
First she needs to know whether it is just a passing craze or
whether it is something Stylehouse's customers really want. Nick
Brown of Q-Data is discussing how to use market research to
find out.

anger , ; ()
unrest ,

Sick: It's an interesting idea. What makes you think it might

. be successfiil?
Jjnet: I have a h u n c h that it'll become popular here. T h e
Chinese have been using it for centuries and in Hong
Kong it's taken seriously by most businesses.
Vc/f.- It's not a concept that'll be easily understood by many
of your customers..We will need to describe it careftilly
in any questionnaire we m n . |^
64 Unit 7 It's a good ide a, but will it se ll? 65

Janet: Where would you recommend starting? have a hunch that... retail outlets
Nick: For the first step we should test the market with a small , ...
sample of your existmg chents. Are they famihar with it? market research sample (select a sample)
Would they consider using it? D o they think i t ' s a {
passuig craze ); {.)
superstitious notion or are they more open to the idea?

Janet: H o w many would you recommend for a small sample? process data
Nick: Perhaps n o more than fifty, chosen fiom a broad selection superstitious notion
of your clientele. Provided we take a good cross section, provided (that..) , ...
that should be enough to give us an idea of how it might qnestionnau'e / to Be suspicious of
be received. U) be received ./.
Janet: And assuming it gets a positive reaction? 4 ;
Nick: Then we take it t o the next stage and enlarge the sample
to include potential clients.
Janet: Feng Shui is really based o n c o m m o n sense use of space
lots o f light, p r e s e n c e of water, all t h e t h i n g s Task1
psychologists say will aid productivity! Maybe that's an
Gioose the word that best completes each sentence.
area we c a n hi^iMght.
Nick: Perhaps. Here in the West we are m u c h more suspicious 1. Market is a way of finding out what customers really
of E astern tradition. want.
Janet: I ' m happy t o start with the small sample. What do you a questionnaire b research
estimate will be the cost for that? 2. Feng Shui is based on use of space and is supposed to aid
Nick: To design the questionnaire, select the sample and process productivity.
the data you c a n expect t o be charged n o more than a c o m m o n sense b peaceful
5000.
Janet: That's fme. When can you start? 3. It is seriously by businesses in Hong Kong.
a taken b thought

4 . Clients in Britain may not be with it.

a open b famihar
an area to Iiighlight {.) common sense
. consider (domg sth.) 5. A of.chentele will be tested to find out how Feng Shui
assnming (that...) , , ... might be received.
be open to the idea cross section a cross section b presence
/
broad (, ) 6. The sample wiU be to include potential clients,
charge (v.) to be familiar with . a highhghted b enlarged
; 30
 . Unit 7 It's a good idea, but will it sell? 67

Avoiding ttie language problem! Researching the market

An essential part of marlcet researcli is to checlc tlie The purpose of market research is to assist and improve
name of a product intended for a n overseas marlcet. Tliere marketing decisions by understanding the market and the
are many examples of names which have not been checked, needs of customers. It will assess the viabihty of a product
with unfortunate c o n s e q u e n c e s for t h e o r g a n i s a t i o n or service to decide the likelihood of the organisation getting
concerned. a return on its investment.
A well-known British manufacturer wondered why its new Methods of gathering the required information (quantitative
car didn't sell in Spain: unfortunately, its n a m e translated or qualitative) might include:
into Spanish as " n o g o " - not great advertising for a car!
access to statistical evidence o n patterns of consumer
spending and standard of living,
asking customers directly by telephone or question
naire whether they would consider buying a product,
the organisation concerned ,
testing the product on a small sample to see how at
overseas market ;
; - tractive it appears.
.
unfortunate consequences Once this data has been collected, it can be analysed to
identify trends and prospective markets.

Task 2

Match the words to form collocations.
assess the viabiUty of sth. UkeUhood (of), the ;
1. think a t h e cost
/ (-.)
2. exercise b twice -. patterns of consumer spendmg
3 . estimate c one's right gather information

4. toe d o n strike get a return .on mvestment purpose
5. go e a meeting reqmred ( )

6. attend f the line
identify trend statistical evidence (on)
improve ;
1. It* , 3. 4. 5. viability
68 . Unit 7

Tasks
Unit
This unit deals with quality control, obtaining ISO 9000 and
Complete the questionnnau-e. attaining the Five Elements of customer requirements and
the Five Pillars of quahty
$10,000 Prize Draw!
What would you do with $10,000? Would you spend it, save it
or give it away? Assuring quality
By entering our free prize draw, you now have the chance to
win. All you need to do is complete this short questionnaire Many of Coopers Limited's* competitors and suppliers have
and we'll do the rest. obtained ISO 9000 certification. Those of Coopers' chents who
nave attained this quahty standard are now demanding that their
First please tell us something about yourself.
supphers also indicate the quality of their services by obtaining
Age 16-24 25-34 35-44 45-54 55+
-he standard. Coopers' Managing Director, Eric Wolton, is having
Are you single Married i meeting wifh a consultant to discuss how to proceed.
Homeowner Tenant Living with parents
Eric: H o w long does it normally take to get certification?
What is your annual income? Consultant: We usually reckon on six t o eight months.
Less than $35,000 $35,001-$55,000 Eric: That seems quite long t o m e . ^
$55,001-$100,000 $100,001+
Where do you usually buy books from? (Please indicate any
applicable.)
Bookstore Book club Specialist suppliers
Would you ever consider buying books over the Internet?
Yes No Not sure
If you have answered no, please indicate why.
I prefer to see books before I buy.
I am unsure about Internet security.

annual Income homeowner
appUcable ,. specialist supplier
enter a prize draw
/ tenant ;

70 .Unit 8 Assuring quality 71

Consultant: It can be done faster, but I normally advise a slower 1

process. It helps all participants to adapt to the pro
cess. You'll probably fmd that not everyone is behind adapt to managing du-ector -
you to start with. Employees can be quite cynical. advise ,
Perhaps if I take you through the stages of obtaining ; mission statement
attain ,
ISO 9000, then we can look at how it can work for
be behind (someone) (.) ;
Coopers.
objective
Eric: Yes, go ahead. (-.) obtam , ;
Consultant: The first step is to create a mission statement for competitor
Coopers Limited. complicate matters proceed (
Eric: What does that entail? -.);
Consultant: The mission statement defines your objective and gives create
it focus. It could be something simple like: "Here at ensure ; reckon on
Coopers we strive to dehver the highest quahty." , shop fitting
Eric: I see. What happens next? entail
Consultant: The next stage is to determine the outputs. give sth. focus (.) stage
Eric: Meaning? straightforward ,
Consultant: What does Coopers actuaUy do? / strive to do sth. /
Eric: Well, most of our work is in shop fitting. -.
Go ahead, (. suppUer
Consultant: So one example of your output is a shop that is
tunetable ; ,
ready and open for business.
) . ;
Eric: Yes, I see.
Consultant: Stage three is to define the customer.
Eric: That should be straightforward. Taski
Consultant: Yes, but you mustn't forget it also means internal as
well as external customers. Sequence the words to form questions and tick ( ) the appropriate
box.
Eric: What do you mean by 'internal' customers?
Consultant: Your employees are internal customers - to each Yes No
other, to you and you are to them. 1. of / competitors / ISO 9000 / Have / obtauied /
Eric: Doesn't that just comphcate matters? many / Coopers'
Consultant: By respecting internal customers, you ensure that 9
you can deliver the best.
The meeting continues for another hour. By the end of it, they 2. standard / demanding / Are / clients / attain /
have agreed a timetable for the process and Eric has arranged a that / competitors / this / Coopers' / their
meeting to advise his staff. 9
 Unit 8 Assuring quality 73
X wxy 7 recommend / a / process / get / Task 2
C O N S U L T A N T / the / fast / to / certification / Does
Match the words to form coUocations.
1. assessment a contractor
4 . employees / happy / the / Are / with / 2. application b opportunities
process / aU / usually
3. managing gardener
4. stock d form
5 . mission / fnst / a / obtaming / creating / of / 5. equal e outlet
stage / Is / statement / ISO 9000 / the 6. landscape f minority
? 7. retail g centre
8. blue h director
6. simple / statement / when / Should / be /
defming / the / mission / objective / a 9. ethnic 1 chip
10. building J exchange

1. .... 2 3. 4 5.
6. .... 7 8. 9 10.
What is quality?
You have a choice: you can eat at a French restaurant Customer requirements and quality
or you can try the new burger place. Which offers the best
quahty? Most people will say the French restaurant but that The Five Elements of customer requirements
is not necessarily true. Quahty is not about being more Specification - What can I expect from the product or
exclusive, it is about offering the best product or service for service?
the price charged. The burger you eat may be cheap but if Conformity Is it what I expected?
it flilfils your expectations for the price, then it can be said ReliabiUty - Does it continue to do what I want?
to offer quahty. Value for money - H o w m u c h do I have to pay for it?
Dehvery When can I have it?

And ... the Five Pillars of quality

Customer focus (knowing who they are)
Total involvement (of everyone in the organisation)
fulfil expectations Measurement (of the service / product)
the price charged Systematic support (the supply chain)
not necessarily Contmuous improvement (making the product better)
74 Unit 8 Assuring quality 75

6. Is 'quaUty' about being exclusive?

confmniity
delivery
measurement ; ; 7. What are a) the 'Five Elements' of customer requirements
piUar , ; and b) the 'Five Pillars' of quality?
reliability ; a) b)
reqiiireinent
specification ,
supply chain

Task3

Answer the following questions.

1. How long does it usually take to obtain ISO 9000 certifica

tion?

2. What does this standard indicate?

3. What are the main steps to attaining ISO 9000?

a)
b)
c)

4. Who are the 'internal' customers?

5. Why is it important to respect internal customers?

 Shall we invest in our people? 77
Unit
Jim: Okay but first h e a r m e out. You're probaMf anave
This unit deals with investing in people, obtaining I I P (In- that two of our best clients have recently acUrwed
vestors in People) and NVQ (National Vocational Qualifica- it?
tions), and completing a m e m o . Mark: Yes, Coopers and Stylehouse.
Jim: Exactly Well, I had a meeting with Eric at Coopers

Shdiwe invest in our people? last week. H e ' s really pleased with the response they're
getting from customers. He also thinks staff morale is
higher than it's ever been.
The partners of Granville, Thompson and Styles* are m the middle Alison: What makes you think it'll work for us? We're not
of their monthly meeting. Jim Granville is keen to convince his exactly like Coopers. I don't think for one m o m e n t we
fellow partners of the need to achieve an Investors in People have a problem with morale.
(IPP) award and has put it as the second item on the agenda. Jim: N o , I agree with you. I think our staff are quite
satisfied. I I P is about more than happy staff though.
It is a national standard, matching skills to business
requirements.
Mark: But we have that aheady. All our accountants are fiilly
qualified to meet business requirements.
Jim: Our accountants, yes, but what about the remauider
of our staff? What about the administrative staff, the
secretaries, the receptionist?
Alison: I can't see what training they would need.
.'-n: By supporting t h e m to gain a National Vocational
Qualification, we can improve their skills.
^fark: I understand that you can follow an NVQ in anything
now.
. .- They've increased the subject areas considerably since
I I P first started. In fact, level five is equivalent to many
Mark: I thmk we're all agreed o n the action to be taken. professional quahfications.
Let's move o n now to the next item. L .ion: . If you can get someone in to talk to us about it, I will
Alison: I see, Investors m People. What's this all about, Jim? be happy to hear about the benefits.
Jim: I know you both have reservations about IIP. To be . - Okay, rn arrange it. N o w the next i t e m o n the
honest, I did as well.
agenda ...
Alison: You're right t h e r e . M y i m p r e s s i o n is t h a t i t ' s a
bureaucratic nightmare.
78 Unit 9 Shall we invest in our people? 79

5. Staff at Coopers is higher than it has ever been.

accountant hear out , 6. However, I P P is about more than happy staff, it is a national
acMeve , (-.) standard, skills t o business requirements.
administrative staff work for someone
-.
agenda
Investors in People award
item on the agenda

Lifelong learning!
() match skills (to) There is the tale of the manager whose decision had
() just cost his company $ 10 million. Quaking in his boots, he
NVQ (National Vocational went in to see his boss, resignation letter in hand. T h e boss
be keen to do sth. Qualifications) tore u p the letter and said: "We just spent $ 10 million
-.
training you. You're not fired, you learned a valuable lesson.
bureaucratic nightmare
Now get back to work!"

business requirements quahfied
; receptionist
(, )
to be equivalent to sth. remamder
-. stafif morale (v.) ,
fellow partners resignation letter
have reservations about sth. subject area (.) Lile ;
; tear up
-.

Task 2
Task 1
Place the followmg words under appropriate headmgs:
Complete the sentences. yeneflt, comfortable, confidence, corruption, disaff
1. The partners of Granville, Thompson and Styles are in the Hscriminatory, excellence, fail, fault, fun, grudge, lia
middle of their monthly jnpressive, malpractice, misconduct, popular, reliab
2. Jim Granville is keen for the company to achieve an piositive:
in People award.
3. Ahson thinks that IIP.wUl be a bureaucratic
Negative:
4. Jim had at first, but now he is convinced that it
would work for Granville, Thompson and Styles.
80 Unit 9 - ' - j / / invest in our people? 81

Tasks
Investors in People (IIP)
Complete the memo using the following words: forward, IIP,
Since it was developed in 1990, more than 14,000 organisa Investors, personal, training, ISO, questions. People, needs, informed.
tions have achieved a n Investors in People award. Designed
as a national framework for improving business perform
ance and competitiveness, I I P is a quality award aimed at
Granville. Thompson & Styles
linking training and development to business goals. To: Moira Kelly Date: 9 June 2000
A N a t i o n a l V o c a t i o n a l Q u a l i f i c a t i o n ( N V Q ) is a From: Jim Granvihe Subject: Investors
competence-based assessment of an individual's on-the-job m People (IIP)
performance. They are available in a growing number of
Dear Moira,
subjects from customer care to management skills, ranging
from level one t o level five. Granville, Thompson and Styles has gained a reputation for
excellence, kut we carmot rest o n our laurels. Two years
Investors in People U K are seeking t o introduce the award igo, we achieved 9000 status, today we are
internationally. ;ommitting to achieve a n in People award.

VVliat does this mean for you?

We wiU identify your needs and prepare a train
ing plan for you.
achieve , development ; (
We will review your training aimually.
aimed at , )
...; We will keep you of the company's business plan
management skills
-. and your role in it.
busmess performance framework We will issue you with t h e action plan for achieving
Investors in People award
busmess goals () .And we will seek your co-operation in deciding whether
your has been effective, relevant and worthwhile.
competence-based assessment
on-the-job performance No doubt you will have many regardmg Investors
; We are holding a reception o n 15 June to unveil
competitiveness :ur plans.-We hope you wiU be able to attend and look
to seeing you there.
customer care range from ... to ...
; (.) '*-th best wishes,
designed as , j n Granville

82 Unit 9

Unit
This unit deals with balancing work and hfe, the concierge
action plan service and completing a concierge service form.
we are committing to ()
identity needs (.)
issue sb. with sth. . .
no doubt
reception
,

BalMciiig work and life
regarding
gam a reputation (for) Tarol Bemasconi works fox Americom Incorporate d* in corporate

rest on one's laurels :rategy. She started with t h e m i m m e d i a t e l y after leaving
seek someone's co-operation . 1 .diversity ten years ago and has reached a point where she wants
(, 1 do something different at least for a short while. Carol has
) ; senior position and is worried that her longterm career will
onreil plans ijffer. Carol las arranged to see Olive Taylor from H u m a n
worthwhile Resources.

Carol: Ohve, I need some advice. I've been here ten years
now and I need a break.
Olive: That's okay E veryone needs a break sometimes. H o
long are you thinking of?
 85
84 Unit 10 Balandng work and Hfe

Carol: I suppose about three months would probably help. leave (s.) sabbatical
I ' m not expecting it to be paid, it's just I could iength of service scheme
long-term work^fe balance
really use the thne.
reach.a point (.)
Olive: Have you heard about our new sabbatical scheme?
You aheady qualify for two m o n t h s ' paid leave with ()
, ... work m corporate strategy
your length of service. Everyone needs time off to
realise ,
recharge their batteries. T h e c o m p a n y decided t o ;
recharge one's batteries (fig.)
introduce sabbaticals as part of a work/life balance
programme and you've come along at the right time. ()
Carol: There's another thing that worries m e though.
Olive: What's that?
Carol: Well, if I take time off, isn't it going to appear that Task1
I ' m not interested in my career? You know my boss, Choose the word.that best completes each sentence.
he's a real workahohc. H o w c a n I convince h i m that
taking time off doesn't mean that I d o n ' t want t o 1. Carol Bemasconi works i n strategy
progress? a lifelong b corporate c equivalent
Olive: You d o n ' t have to worry about that. Maybe he doesn't
realise how you feel; this might make h i m think. Now, 2. She feels that she needs a
how long would you like to take? a pattern b break c chain
Carol: I ' m still keen on three months. D o you think that
would be possible? 3. Ohve tells Carol about t h e new scheme.
Olive: I think we can probably arrange that: two months paid a vocational b sabbatical c equivalent
and one m o n t h unpaid. I'll give you the information
and the application form. You can go away and think 4. She understands that everyone needs time off to their
about it and get back t o m e next week. H o w does that batteries.
sound? a recharge b collect c highhght

Carol: That's great, thank you, OUye. 5. T h e new scheme is part of a work/life programme.
a space b sample c balance

6. When Carol returns, she wiU be able to in her career.

be in a senior position break (5.) a attain b determine c progress
, bug (v.) (.) ,
( )
be worried catch (s.) (.) , 1 2 3 4 5 6
-. , .
 Unit 10 Balandng work and life 87

For your convenience! Work/Life Balance

A growing industry in tlie US is the concierge service. As a term, work/life balance has evolved recently out of the
For a small sum, someone else will shop for your family-friendly initiatives of the early nineties. Although
birthday gifts, wait at your home for a deUvery, collect your these were primarily aimed at working mothers, work/hfe
dry-cleanmg or recommend a good restaurant. Organisations balance has a broader appeal. This more inclusive approach
are subsidising this service t o assist busy employees in now covers a range of initiatives aimed at every employee,
arranging their lives outside work. Cynics might say this is irrespective of family commitments.
so they can spend yet more time at work!
Today's work/hfe balance programmes consider the entire
workforce and offer flexible working t o all. This might i n
clude part-time working, career breaks or working from
_ home. There is more understanding of the varying needs of
busy different groifps of employees and also an acceptance that
concierge service an individual's needs will aher throughout life.

for your convenience
Competition t o attract and retain staff is one of the main

cynics might say ... motives behind many such programmes; the US is currently
subsidise suffering from a n acute labour shortage, so companies
aggressively market themselves as 'employer of choice'.

Task 2

Put each word below into one of these categories: evolve ; (.)
acceptance ; (.)
money (a), people (b), workplace (c) family commitments (.)
acute labour shortage
1. refund 9. auditorium
nrespective of
2. suppher 10. taxation alter () market oneself ;
3. location 11. trader aimed at ;
appeal (s.) , ,; motive (behmd) ;
4. division 12. headquarters
(.) , ;
5. distributor 13. shares broad primarily ;
6. reception area 14. debt cover (v.)
currently >1 ; retam
7. manufacturer 15. chap varymg needs
(.)
8. securities enthe
88 Unit 10 Balancing wori< and life 89

Tasks
pet/plant care /
Complete the form.
dependant
duty
laundry ; ( )
( ,
travel arrangements , ..)
( -.)
undertake
For Your Convenience
making life easier
Please complete all details and hand to your ?{Z consultant.

Name:
Department: Staff No.:
Payment details: Cash Payroll

Which FYC service are you requesting?

Administrative support Plant care

Gift buying Restaurant guide
Home sitting Travel arrangements
Laundry Other
Pet care (Please describe):

Please note that we are not insured to undertake childcare

or dependant care duties.
Thank you for choosing FYC.

Keeping America Talking

90 Test 1 Test 1 91

Testi Choose
one of the
Ablue ...
company.
Wrong! WeU done! 5 Correct!

two answers; ... an interview. A... delegate.

move to the box chip ""S Go to number 5
Attend IBI 20 hum<m ill*- 3
shown ship lili 15 Visit * 7 felloeV ill*- 13

Wrong! Wrong! 8 Correct! Wrong! 10 Wrong!

After-... service.
Go to number 8. Go to number 4. Go to number 25. Got 0 number 14.
staff "6
sales :i 25

11 Wrong! 12 Very good! 13 Correct! 14 Very good! 15 Wrong!

... of confidentiality. Voting.... ... a dispute.

Go to number 29. Apply 10 Got o number 2.
Breach ^ 16 actions lia 21
Fail 1111 24 rights " 29 Resolve 30

16 Well done! 17 Wrong! 18 Wrong! 19 Great! 20 Good!

Market ... ... a nlission statement.

Go to number 22. Got 0 number 16. End of test.
research mi* 22 Great e ii 5
craze in*- 18 PrOCEed >i" 28

21 Wrong! 22 Correct! 23 Wrong! 24 Wrong! 25 Very good!

... in People. A... service,

Go to number 13. Got 0 number 27. Got 0 number 12. cone ierge "i"-14
Developers ni*- n
Investors 19 sabb atical 9

26 Wrong! 27 WeU done! 28 Wrof^! 29 Good! 30 Correct!

...work and life. Valu ;for... . Customer... form.

Go to number 30. Unve iin 23 Got o number 20. inco me III* 11 bewire III*- 26
Balance " 12 mon ey ii27 com jlaints 111* 4
 The virtual office 93
Unit
Ian: How will we maintain control when all our staff ate
Tliis unit deals with working from h o m e , hoteling and filling working at home?
in a telework questionnaire. Dave: Most of our work can be measured by output. We
would stiU need to look at productivity and regular
c o n t a c t should be m a i n t a i n e d p e r h a p s o n c e a
virtual office week.
Ian: Surely we need some office space?
All of Elecom pic's* engineers are supphed with the equipment Dave: Yes, of course. We could reduce work spaces by 50%
to allow t h e m complete mobility a c o m p a n y car, mobile and stiU have enough for everyone.
telephone and a lap-top with a m o d e m . The company is now Ian: How do we allocate the remaining 50%?
looking at ways to extend this mobility to t h e h other employees. Dave: That would need to be booked as required. N o one
Two of Elecom's managers are discussing the plans. would have their own personal desk any more.
Ian: W h a t about t h e h o m e e n v i r o n m e n t ? It c a n ' t be
enough to provide equipment and a telephone fine,
surely?
Dave: N o , there are other things to consider. Health and
safety regulations will need to b e complied with.
Elecom will also have to contribute towards heating
and hghting and insurance costs.
Ian: Surely that makes it more expensive?
Dave: It mcreases the cost but it is stiU cheaper than providmg
office space.
Ian: What if an employee doesn't want to work from home?
We mustn't forget some people may need a break from
their kids!
Dave: The h o m e environment may not suit everyone and
that is something the company will have to considen
It would be interesting to know what staff think of the
proposals. A survey would be useful.
Ian: I d o n ' t m i n d the idea b u t w h a t a b o u t t h e costs
Ian: It would be useful to find out what the rest of the
involved?
management feel, too.
Dave: Well, if we lo6k at t h e cost of office space p e r
employee, it is actually cheaper to provide everyone
with the equipment to work from home. ^
 Unit 1 1 , The virtual office 95

Providing ttiat personal touch!
bcate , ; msurance costs
(.) Some companies in the U S have created a new term
eply with maintam control . which they call hoteling - providing employees with
equipped and furnished work spaces that c a n be
contribute to(wards) {!) measure (v.) , booked by the hour, day or week. To make it more personal,
the electronic desktop is customised with the individual's
costs involved ; output ;
personal photographs or other souvenirs which are t h e n
home environment proposal
suit (5.) , removed at the end of the session!

equipment survey (s.)
health and safety regulations work space
i

customise {Br.); ;
customize (Am.) {.)
Task'i
equipped /
Sequence to reflect the contents of the dialogue.
session , ;
a Next, Ian asks about the necessary office ?pace. {.)
b Two of Elecom pic's managers, Ian and Dave, are discussing
the possibility of employees working from home.
Task 2
c Dave answers that it is actually cheaper to provide staff with
the equipment to work from home. In each set, cross out the word that does not belong.

d fan's final question is regarding those people who may n o t 1. collect, customise, gather
actually want to work from home. Dave agrees that it may 2. sabbatical, leave, souvenir
not suit everyone and he proposes a survey to fmd out what
3. measure, fire, sack
the staff think.
4. complete, entire, virtual
e Dave reckons that work spaces c a n be reduced by 50%, the
5. subsidise, attain, obtain
other 50% would need to be booked as required.
6. questionnaire, equipment, survey
f Ian begins by talking about t h e costs involved.
7. wide, regular, broad
2. 3. 4. 5. 6. 8. insurance, hnk, connection
96 Who is who? i Who is who? 97

Tasks
Teleworking
Fill in the questionnaire.
Are technological developments making t h e formal
workplace redundant? The growth in working from home is
being led by British Telecom and AT&T.
Reducmg the number of commutmg journeys benefits the
Elecom pic
environment and saves on overhead costs t o organisations. In order to help us consider yoi^ir application for telework,
However, it is not all roses. For some, telecommuting brings we would like to ask you a few questions about your plans.
isolation, disruption t o family life and exclusion from the If you have any queries regarding this questionnaire, please
office network. contact Lesley Fradley in Human Resources.

Some organisations are dealing with these problems by Health & Safety
setting u p local satellite offices. Employees still have to
Where in yodV home would you set up your work space?
commute but the distance is shorter. Once there, they have
Se\)arate room shared family room
t h e b e n e f i t of w o r k i n g w i t h c o l l e a g u e s a n d k e e p i n g
up-to-date with t h e office gossip. IS the main light source: Natural Artificial
Approximately what ptrctntaqe of your working week would
you plan to work from home?
100% 80% 60% 40% 20%
AT&T American Telephone and It is not all roses, {.) He D a t a Protection
Telegraph . who else is likely to have access to your work area?
benefit (v.) keep up-to-date
No-one else Family members Visitors
braefit (5.) ; local satellite offices
coDeague , , Working h o u r s
ctHnmuting journeys what pattern of working hours would you prefer?
office gossip ()
Standard (Mo-FR) Flexible full-time Part-time

deal with problem overhead costs A b o u t yourself
; ;
what are your main reasons for requesting telework?
disruption (to) {.) redundant ,
( ); ; Reduced commuting time Childcare/Dependant care
set up Increased flexibility
telecommutmg (
exchision (&) (); ) Thank you for completing this questionnaire.
() /

4 30
98 Unit 11
Unit

This unit deals with contracts, reading the small print and
access (s.) 1 U of contract.
breach + +
approximate(ly) ;
artificial light source

Checking ttie small print

pattern of working hours () ;
queries regarding ... ...

Colin Payne is a self-employed individual trading as Adman*.

His daughter, Carolyn, helps out in the office occasionally and
is keen to learn the ropes. Colin has just received the telephone
service agreement from Elecom plc* for his new business line
and is reading the documentation carefully before he signs. Bemg
a businessmaji, he's most interested to know what wiU happen
if his telephone breaks down. But what does the small print say?

Colin: Now, let's see what this says

{Reading)
100 Unit 12 Ciiecking the small print 101

We accept liability for delays in providing the service or (Reading)

repairing breakdown, or for failing to keep an appoint This agreement can be ended by:
ment, unless for a reason covered by Paragraph 29. a) one month's notice from us to you
Carolyn: koA wliat does Paragraph 29 say? b) seven days' notice from you to us
Colin: (Reading) Carolyn: That seems clear enough. D a d .
We shall not be held liable forfailure to fulfil our obligation Colin: Yes ... it's aU fairly standard. I might as well sign it.
because of circumstances beyond our reasonable control,
such as: intervention by the govemmentor other competent
authority, military action, war or civil unrest, lightning,
flood or exceptionally severe weather. I
They've covered themselves olcay there, I suppose! agreement , learn the ropes
Carolyn: Is that it? appointment in: keep an
Colin: N o , there's more: appointment UabiUty for delays -
(Reading)
Unless otherwise stated in our Service Guarantee, we break down Ughtnmg
accept no liability due to our negligence or otherwise for breakdown mobile phone
any indirect loss, loss of business revenue or loss in profits charge (s.) ;
or savings. clause (in a contract, law, etc.) negUgence ()
, ( , ;
Which means that if my phone doesn't worli, I ' m stucic!
.) occasionaUy ,
Caro/yn: What if you miss a n important chent?
circumstances
Colin: Well, I presume I just have to make sure my mobile civil unrest presume ,
phone is always working! competent authority
N o w here's another interesting clause ... because of chcumstances beyond
(Reading) conditions of an agreement our reasonable control no
We reserve the right to change the conditions of this (
agreement, including our charge, at any time. )
I d o n ' t like t h e sound of that. exceptionalOy) reserve the right (to)
(Reading) ; ;
Any changes to our charges will be published in the revenue
national press at least two weeks before they are due to failure to ftdfll an obUgation loss ;
savings
take effect.
self-employed individual
Well, Elecom hasn't got the monopoly any more and
flood
t h e r e ' s p l e n t y of c o m p e t i t i o n a r o u n d . If I ' m n o t ... shall not be held liable for
satisfied, I can terminate this agreement. Now, how ... severe weather
m u c h notice do I need to give? ^ ... ^
 102 Unit 12 Checking the small print 103

the small print ;

trade ; (.)
A not-so-transparent hire charge!/
I'm stuck, (.)
./ unless otherwise stated (m) An advertising agency rented a set of transparencies
. from a picture hbrary. The dehvery note contained several
take effect (, ) conditions in the small print, one of which stated a daily
overdue charge per transparency. T h e agency sent the
pictures back fourteen days late and received an mvoice for
Task1 3,500! The Ubrary's court action failed because it had not
brought such an unusual a n d exorbitant charge to the
Suggest the word to complete the sentence. attention of the agency

1. Colin Payne is a () individual

trading as Adman; his daughter, Carolyn, helps out in the
_|
office. bring sth. to the attention of .
contain
2. H e has j u s t r e c e i v e d a t e l e p h o n e service () delivery note
from Ele com plc for his new business () invoice (s.)
a daily ov erdue charge
transparency ;
3. The documentation states that Ele com plc wih not be hable
for not carrying out what has been () Task 2
if this is due to something beyond its control, such as ()
, () or () Match the two parts to form sentences.
severe weather 1. An advertising agency once a to the attention of the
hired agency
4. Ele com plc has no liabOity for its () ,
2. Nobody read the conditions b failed.
for loss of b u s i n e s s r e v e n u e or loss of ()
contained
c fourteen days late,
3. The agency sent the pictures
d in the small print,
5. It can also change the () at any time; back
it will, however, () any changes. 4. It received an invoice e for 3,500.
5. The library's court action f a set of transparencies.
6 . C o h n says that if he is .not satisfied, he can ()
6. It had not brought such
the () by giving seven days'
an exorbitant charge
notice.
1 2 3 4 5 6.
104 Unit 12 Checking the small print 105

m order to ,
What's in a contract? legally bmding
legal relations
It is often assumed tliat a contract is only valid if it is in Seek damages
writing. Whilst the written form is the more usual, a contract valid in: only valid ;
may also arise from a verbal agreement or be implied from if in writing
the conduct of the parties. Certain types of contract, such verbal agreement
wronged party ; ,
as consumer credit agreements, must be in writing.

In order for a contract to be a legaUy binding agreement, it
must contain the following elements:
Tasks
There must be an offer and an acceptance.
Tick ( ) the appropriate box.
There must be consideration (i.e. something must
be offered in exchange for somethmg else). Yes No
There must be an intention to create legal relations. 1. Assuming something means supposing
something.
Breach of contract may result if one of the parties fails to 2. A valid contract means a legally unacceptable
deliver o n the agreement. In this case, the wronged party contract.
may be able to seek damages in a court of law.
3. Arising from something means resulting
from something.
4. Acceptance of something means agreeing

to something.
arise 5. Exchanging sometliing means hiring something.
assmne ;
breach of contract 6. A breach of contract means a contract
conduct of the parties is overdue.
consideration 7. Receiving damages means being compensated
court of law .through a court of law.
credit agreement
bOs to deliver 8. Implying something means signing something.
/

euhange in: -.
exchange for
Le. (that is)
ipiied contract ^
1 Unit
T Stylehouse re-thinks its marketing
Tliis unit deals with marketing and promotion, applying brand
names, using SWOT (Strengths, Weaknesses, Opportunities,
Threats) and completing a SWOT analysis.
Stylehouse re-thinks its
marketing strategy
The majority of Stylehouse's* shops are run under franchised
licences but decisions o n marketing are made centrally Janet
Barker, head of marketing strategy discusses the latest figures
with David Gouldstone, the sales manager.
strategy 107
Janet: Looking at the figures, it seems we're not doing as
well o n lighting. D o you think we have the right
product range?
David: The more expensive hghting systems are not moving
as rapidly as before. It could be a question of price or
Janet:
it could simply be design.
It's interesting that soft fumislungs are 25% up on the
David:
last quarter What do you make of that?
Our customer base has shifted slightly. Domestic sales
have increased to 14% of total sales.
Janet: That's good. We need to expand our market. What
about the next series of shops? Location is critical if
we're going to attract a different chentele.
David: I agree, but it's not just location. I think we need to
consider mail order again.
Janet: Yes, perhaps that's worth doing. How are we promoting
ourselves? We've concentrated on the corporate market
so far and ideally that wiU continue to grow. But what
if it doesn't? If the next recession comes, we might
regret not developing the domestic market.
David: If there is another big recession, it will also affect that
market.
Janet: Whatever the economic situation, there is always a
supply of individuals with sufficient money to spend.
Relate it to housmg costs - people who buy ui Mayfair
are not going to cut costs when decorating.
David: That may be true, but first we have to make ourselves
t h e n preferred suppher!
Janet: _We have t o c h a n g e o u r i m a g e - p r o m o t e o u r
exclusivity.
David: D o you think that is soniething we still offer? We now
have eighty franchises - I ' m not sure that promotes
the individual look.
Janet: Let's look again at how those figures break down.
108 Unit 13 Stylehouse re-thinks its marketing strategy 109

Taski
break down (v.) move (v.) {.) Choose the word that best completes each sentence.
corporate market ( )/
; 1. Franchised hcences form the of Stylehouse's shops.
preferred supplier a intention b majority
critical
customer base product range / 2. Their more expensive ranges are not moving as as
; before.
a rapidly b plenty
cut costs ; promote ,
; 3. Stylehouse might not developing the domestic market.

decorate ; up on the last quarter a shift b regret
/ ()
4. A big recession whl certainly affect the economic
domestic sales / market
recession , (, a situation b series
economic situation , 5. However, there are always individuals with ., money to
);
spend.
figures ; Relate it to... {.) ,
, ... a severe b sufficient
financhise in: under firanchise sales manager 6. Stylehouse must make itself their suppher.
licence ; ;
a preferred b critical

mail order series ; , ; {.)

najority shift sHghtly , What's in a brand?
What do you make of that? ;
, no , Coca Cola is a brand recognised throughout the world
?/ simply , with some 60% of its sales coming from outside the
, , soft flunlshuigs United States. T h e distinctive red and white logo is
? so closely identified with the aU-American image that it has
aibetmg strategy (, acquired pohtical status in countries antagonistic to the U S .
; ,
This has led to its restriction in significant markets such as
.)
China.
... that's worth domg. ...
.
110 Unit 13 Stylehouse re-thinks its marketing strategy 1 1 1

How important is marl(eting?
antagonistic to ( )
brand ( ) The purpose of marketing is to gain and keep
closely identified (with) () One part of this is achieved by attributing desirable v ^ k s to
distinctive the product or service which will become L O D G E D m the
logo (); customer's mind. This is known as "branding'".

recognised
T h e marketing mix is m a d e up of four compracals
restriction
product, price, place and promotion. Successfiil maitatiue
involves identifying the correct mix to achieve the most sales.
Task 2 The product may be excellent but if the price is wtooe. k
wiU not seU.
Choose the word to complete each sentence.
1. The situation is changing; the is turning. Another part of the preparation involves doing a S W O T
analysis. This looks at the Strengths and Weaknesses B E H I N D
2. Prices are going tlirough the at the moment. the product or service (the internal factors) and the O P P O R
3. The workforce was u p in.. tunities and Threats that wiU influence success (the E X T E R N A L
4. The share price has taken a factors).
5. Irregularities may be brought to
6. If you are not careful, you will land in hot
7. Even the best ideas can
8. Think before you make a decision.
attribute desirable values to sth. -.
a roof e light
b backfire f water become lodged (.) ();
()
arms g twice
component
d tide h tumble mvolve
1. 2. 3. 4. marketmg mix
5. 6. 7. 8. mind (s.) ; (.)
1 1 2 Unit 13
Unit
Tasks
This unit deals with seUing, attending a sales confeiane,
Canplete the form. making sales and completing a business letter.

The S W O T Analysis TAe sales conference

1. Consider a product or service that you use (or one you We're at Americom Incorporated's* annual sales confeicnoc a
are hoping to sell). Dallas. T h e c o m p a n y has had a n excellent year foUowi^g
Product/Service: substantial growth in the electronics industry and Zak Doq^m.
Americom's president, is presenting the results and the
2. What are its:
Strengths - e. g. aU the positive aspects of the
product / service.
Weaknesses e. g. aU its negative aspects.
Opportunities - e. g. is there a gap in the market?
Threats e. g. what about competitors
or the possibility of recession?

Strengths:

Weaknesses:

Opportunities:
Zak: Overall profits are up by 49%. We now have 68% market
Threats: share, an increase of 20% on last year.
The audience applauds.
And now the moment we've all been waiting for! The
part of the conference that really fires us all up! It giws
me great pleasure to present this year's awards for top
sales. Starting in reverse order, in third position. Td
Uke you aU to give a big hand for Amy Carter Would
you step up here, Amy? ^
 114 Unit 14 115
Ttie sales conference
The audience applauds. Zak: We'U have a short break for refreshments now
Amy: Thanif you. they're being served in the large haU adjacent to
Zak: As you loiow, A m y only joined Americom eigliteen the ornamental gardens.
montlis ago and has already achieved 65% over
target. N o w Amy, teU us how you did it!
Amy: I can't take the praise o n my own. I couldn't have
managed without the guys in my team.
Zak: Let's hear a big cheer for them! adjacent to , mcredible
The audience cheers. jom ( company) (.)
annual sales conference
In second position we have Geoff Allan. Geoff is
Let's hear it for ...
here for t h e third year running and has this year ...

managed t o double his target. TeU us how you market share
applaud
feel, Geoff! ornamental garden
avid(ly) in: listen avidly
Geoff: It's great, just great. I ' m really pleased to be here (-0)
again. bottle (v.) ifig.) (.) overall
Zak: A n d we look forward to seeing you u p here next praise (s.)
year. W h o do we have in top position? First prize cheer sth. off
this year, a Bahamian cruise and $10,000, goes to cruise (.s.) refreshments
double one's target

the salesperson w h o managed a n incredible 175%
/ third year runnmg
over target. Let's hear it for Carol-Ann Smith! H o w
do you feel Carol-Ann? fire up ;
give big hand for
staggered
The audience applauds. substantial growth
-.;
(-.)
Carol-Ann: I ' m staggered. I reaUy can't beheve we pulled it
guy (.) target (s.) , ; (.)
oW.
in reverse order
;
Zak: I ' m sure everyone out there is hstening avidly to
;
learn your secret. Whatever it is, I ' d like you to
bottle it - I ' m sure it would make great sales!
Cflro/-Ann: A strong team, a n excellent product and a certain
Taski
amount of luck!
Zak: WeU done aiiyway, and enjoy the cruise! Name the word or words to complete each sentence.
Carol-Ann: Thank you very much.
1. Americom's i . . . 1 sales conference takes place in
The audience applauds. ^ Dallas. ih.
 116
The sales conference 117
2. Zak Douglas, Americom's president, announces that compa
Task 2
ny's 1 profits have increased by 49%.
3. He is also p .n g this year's awards for top sales. Restore word order.

4. H e starts in r. o , t h h d position, then second 1. a positive asset / in sales talk / Lateral thinking / can be
position and fmally the winner.

5. Carol-Ann, the winner, is s d and can't reaUy be 2. reaUy wants / thmk about / You have to / the customer / what
lieve they p it off.

6. Zak says that everyone is hstening a ; they would 3. the product itseh" / actually does / It could be / or what the
hke to learn her s t. product

4. to a company / great importance / are of / Sales staff

Sell the product or
sell what the product does?
5. for top sales / individual awards / Americom gives
D o you sell a n electric driU or do you sell the hole it
makes? Lateral thinking can be a positive asset in sales
talk. By thinking about what the customer might actually 6. The sales staff / they are seUing / need to know / is good /
want, in this case, a hole, it wiU be easier to sell the tool that the product
for creating the hole. After aU, if holes could be bought
over the counter, driUs would not be needed at all!

Making sales
The job of the sales force is not easy As the primary source
actually of revenue, they also provide the vital hnk between a com
,
asset pany and its customers. Apart from finding prospects and
posidve ; making deals, they also need to handle complaints and
counter in: over the counter ; objections, and solve problems. After all, existing customers
electric drill offer one of the best sources of repeat business and getting
lateral thinking that business in the first place took time.
tool ;
 119
118 Unit 14 '^he sales conference

Tasks
Order-taldng is the most passive form of sales and active
selling demands m u c h more. One of the hardest ways to Read the letter and reply.
drum up new business must be cold calhng and even expe
rienced salespeople may find they d o n ' t reUsh this approach.
Following up leads or referrals may make this easier by pro
viding a 'warm' link to get a foot in the door, but the sales
person still has the job of persuading the customer to buy. ... Sy design
A strong sales team also needs good support and t h e confi
dence that when they promise something, it can be dehv- Sabme Gupta 31 January 2000
ered. I n the tough world of competition, a good sales team Giftbox
may mean the difference between survival and extinction! Shepherds Market
London ,

Dear Sabine,

approach (s.) handle complaints/objections On behalf of Stylehouse, I would Uke to apologise for the
cold calling - / problems you have recently encountered with your window
( lighting system. I hope the situation has now been resolved
, persuade the customer to buy to your satisfaction. If you do have further diflicultes, please
do not hesitate to contact me.
, -.
, primary source of revenue
I wiU be in the London area on 9 February and would hke

) prospects (.) to take this opportunity to invite you to lunch. I would be
drum up business (.) grateful if you could caU or write m e a note to confirm
; referral whether this wiU be convenient for you.
(
existing customers - ) With kind regards,
relish
experienced repeat busmess Karen Jones

I
extinction
follow up lead sales force I Karen Jones
-. vital Unk Sales Manager
get foot m the door ()

 Unit
120 Unit 14

This unit deals with advertising, creating a mail order ser
apologise for I hope the situation has been vice, the art of "pigeonhohng" and writing an advertisement
-. resolved... , ' using A I D A (Attention, Interest, Desire, Act) and U S P
difficulty ; ... (Unique Selling Pomt).
opportunity in: take this
gratefid in: I would be gratefiil opportimity to ;
; :
...
:
() Advertismg
hesitate in: do not hesitate to... satisfaction in: to your
; : satisfaction ; Stylehouse* is launching its new m a h order service. Aimed at
, : increasing domestic sales, the advertising campaign has to be
...
carefully planned. Janet Barker and David G o u l d s t o n e are
discussing their needs w i t h Daisy R o b e r t s , a n advertising
Task 4 consultant.

Dear Karen,

Kind regards,
Sabine Gupta

f Janet: This is a new venture for us in more ways than

one. Our primary customer base has so far been
corporate chents. Domestic sales have been more
incidental but now we want to capitahse o n that
market. ^
 122 Unit 15 Advertising 123

Daisy: Who's your average domestic customer?

Janet: ABs. Professionals in their thirties and forties, high estimate (s.)
advertising consultant
disposable income, design conscious, trendy ... HO -.
Daisy: And computer literate? aimed at huge
Janet: Highly likely. average mcidental ,
Daisy: Have you thought of advertising o n the web? bike sth. round to (.)
David: We haven't developed our website yet, but it's a -. -. mcrease (v.) ;
capitaUse (on)
possibihty.
-. ( launch (v.)
Daisy: What about image? H o w do you want to come Ukely
)
across? check out computer literate
David: Exclusive, minimalist, chic, bright. Something close of busuiess
along these hnes. mail order service
Daisy: What about media? Where do you want t o be come across
seen? copy {s.) (5.)'; put the imal touches to sth.

Janet: We're thinking of a poster and magazine c a m
corporate clients -.
paign. rate {s.)

Daisy: What about TV or cinema? diary ; - somethmg along these lines (.)
Janet: I don't feel that's right just yet. It's also a question -. B
of cost our budget is not exactly huge. disposable uicome squeeze m an hour (.)
Daisy: I suspect Trend and Image magazines will be a good -.
starting point. I'U check out their rates. If you give domestic customer I suspect... (.) ...
() trendy
me your catalogue, I'U draft a couple of sugges
draft (v.) ; venture (s.) /
tions for copy.

David: We can get those t o you later today. The design
team is just putting the final touches t o the cata
logue. WiU it be okay if we bike t h e m round to you Taski
by close of business?
Match to form sentences.
Daisy: That's fme. I can run through the proposals with
1. Stylehouse is launching a disposable incomes.
you on Friday and give you an estimate for the
campaign. 2. A n advertising consultant b hasn't been developed yet.
Janet: My diary's quite fuU but I could squeeze in an is assisting the company c will be supplied t o Style-
hour in the afternoon. ShaU we say four? 3. Stylehouse's average house by Friday.
domestic customers
124 Advertising 125
Unit 15

4. Tliey have high d in tins new venture.

5. The company wants e is a relatively inexpensive classifier
to come across way to attract customers. /
6. Its website higher / mtennediate managerial
f a mail order service.

7. A poster and magazine g are professionals in their put customers into pigeonholes
campaign thirties and forties.
8. Estimates for the campaign h as exclusive and chic. semi-skilled worker

1. 2. 3. 4. 5. 6. 7. 8. sickness
skilled manual worker
supervisor
social class
target (v.) , (.)
The art of "pigeonholing' 7 those dependent on the state ()

A - E is just one way advertisers like to p u t their
unskilled worker
customers into pigeonholes! By dividing the population into

g r o u p s using classifiers s u c h as i n c o m e , social class,
professional and educational level, they hope to better target
their message. The groups break down as:
Task 2
A Higher managerial, administrative or professional. Tick ( ) the words with similar meanings.
B Intermediate managerial, administrative or profes
sional. 1. a conscious 4. a convince
Cj Supervisor or clerical, junior managerial, adminis
b aware b persuade
trative or professional. incidental regret
C2 Skilled manual workers. 2. a give a big hand for 5. a magazine
D Semi- and unskilled workers. b squeeze in an hour b prize

E All those entirely dependent on the state long-term, let's-hear it for award

through sickness, unemployment, old age or other
reasons.
3. a intention 6. a substantial
b component b considerable
purpose antagonistic
126 Unit 15 Advertising 127

Tasks
Writing your advertisement
Read, provide the mformation and write your headline.
Ciioose your words carefully! Some have a positive effect
and excite interest - others send negative signals. New, free, Think about what we have told you about writing your
love, results and bargain all fall into the first category and advertisement. Remember AIDA and U S P ? First, imagine a
advertising is peppered with them. You won't see words such product or service that you want to advertise:
as death, risk, bill, accident and fail, however, which are
examples of what to avoid.
N o w decide what its Unique Selling Pomt is (what makes it
What does the advertisement need to do? AIDA is a useful different to other products or services on the market?):
mnemonic, spelling out the four essential ingredients good
copy must contain. N o w choose some words from the list below to make an
An advert must be able to grab Attention in the brief instant attention-s"abbing headline, but be careful! Unfortunately
available. It then has to keep the reader's Interest for long the words have become mixed u p , so you need to consider
enough to get your message across. Does it create Desire? If which are positive and which are negative before using t h e m
so, you might have a sale, but do not forget to tell the reader in your headline! (Think about your own responses to them
how to Act - where to buy the product, who to phone! if you are not sure whether they are positive or negative.)
Here they are:
Last but not least, do not forget your USP! Make sure you
tell everyone what the Unique Selling P o m t of your product new worry death risk introducing
or service is that makes it different to everything else o n easy save difficult loss comfortable
accident buy bargain cost special offer
offer
faU bill benefits results discover
tax discount money off guarantee problem
obligation you bad pay love
secret unique commitment announcing wrong
bargain (s.) () brief instant Before writmg your headline, here are some more useftil
copy (s.)
create desire points:
nuiemonic (.)
excite interest Be specific - do not use the passive form - direct the
pepper (v.) (fig.) ;
headhne to the reader by using you.
grab attention spell out Limit your headhne to a maximum of sixteen words.
() N o w write a short headline below:
essential ingredient unique selling point (USP)
;
()
128 Unit 15
Unit
This unit deals with computer viruses, systems ii K s d
discount the problem of computer hackers.
headline ; (.)
obligation ;
unique ; , Beating the virus!
Carl FUnt, the office manager at Granville, Thompson and Styled,
is telephoning Robert Bridges, who works in the emeiigeiic)-
support team at Elecom plc* as a senior IT speciahst.
Robert: G o o d morning. Elecom Systems Support, Robert
Bridges speaking. How can I help?
Carl: Morning Bob! It's Cari here. I ' m in a fix! Wfe hawe
a complete systems failure over at Moorgate wtndi
we can't identify. Our systems engineer is on ka%c
at the m o m e n t and there's no one here who can
help.
Robert: G o on. What's happened?

:
130 Unit 16 Beating the virus! 131

Carl: One of tlie partners was in early this m o m m g . She

was using t h e system from 07:30 until shortly before be affected hit (v.) ;
08:00 when it crashed. H e r story is that the screen
appreared t o meU and then went off hke a firework alarm (v.) , identify (.)
display before gomg blank. All t h e P C s o n the u i - appreciate -.
tranet are now showing the same symptoms. It seems blank in: go blank ; : log on
the enthe system has been affected. ( melt ;
Robert: TeU me, was your coUeague working o n the Internet ) origmate
cause (s.) recipient
at the time? crash (v.) rectify
Carl: I should unagine she checked her messages when disable spread
she logged on, yes. firework display systems engmeer (.)
Robert: Have you heard of Wipe Out? fit the bill (.)
Carl: N o , what is it? -. ;
Robert: I don't want to alarm you too m u c h before I c a n do be fix : wipe out ,
a proper diagnosis of the problem, but a vuns with
the symptoms you describe has just hit the net. It
seems to have originated hi the States on Friday and
has rapidly spread attaching itself to outgoing e-mails. Task 1
Carl: H o w does it strike?
Match the words with their corresponding definitions.
Robert: T h e symptoms you have described seem to fit the
biU. It comes in as a n attachment on a n e-maU from 1. beat a urgent case
a known source. T h e recipient opens t h e attach 2. solution b start from
ment and ... 3. disable worry
Carl: ... and the rest is history! 4. cause d sb. who receives sth.
Robert: T h e first victims appear t o have been Microsoft and 5. emergency e correct
a number of other Fortune 500 companies. It caused 6. alarm f empty
chaos by crashing entire networks and disabling t h e
7. originate g make ineffective
systems for the e n t h e business day It has cost Mi
8. recipient h reason
crosoft alone nulUons to rectify.
9. rectify i defeat
Carl: What o n earth c a n we do now?
Robert: D o n ' t do anything at aU until I get down there. 10. blank J answer to a problem
There is a solution, thanks t o the Americans, and
I'U bring it with m e . 1 2 3. 4. 5
Carl: Thanks Bob. I reaUy appreciate your help. 6 7 8. , 9. 10
132 Unit 16 Beating tite virus! 133

Virus writing is a serious business! Computer viruses

Virus writing is a serious business. According t o one
such " a r t i s t " , virus writing allows creative expression.
Despite sleepless nights fed by caffeine and t h e threat of a
conviction if caught, it aUows virus writers to play god and
pretend to be villams. They even have their own armual
convention! Above aU, it creates business for software
companies, who keep ahead of the game by producing the
latest anti-virus software.
Cyberspace does not respect national security, commercial
sensitivity o r individual privacy. Increasing reliance o n
information technology, with all the benefits it brings, comes
with a hefty price tag. However successfiil an organisation
may b e , its Achilles' heel lies with its d e p e n d e n c e o n
information systems. T h e price tag is the cost of fighting
computerised fraud or sabotage and of rectifying what may
run m t o millions of pounds' or dollars' worth of damage.

Aside from the danger of internal mterference, any of today's

organisations are potentially at risk from hackers, computer
viruses 01* other forms of disruption.
the threat of a conviction
creative expression (.) Computer viruses vary in impact and sophistication. The
keep ahead of the game less harmful may prove more inconvenient than destructive,
increase (v.) , , perhaps causing strange or inappropriate messages t o appear
impact (s.) , on screen. T h e most dangerous can cause entire systems to
play god
crash or m a y i n t r o d u c e software bugs whose presence
pretend
remains undetected until serious damage has been done.
villain
Organisations running an intranet or those with access to
the Internet, may find hackers can enter the system, steal
Task 2
information or leave a destructive bug. Files downloaded
Use the followmg words to complete the sentences: conviction, ahead, from the Internet may be corrupt, unauthorised e-mails may
disable, affected, expression. contain the seed of destruction. For businesses everywhere,
1. Entu-e computer networks can be by vmises. the battles have just begun!

2. Viruses sometimes systems for a whole day

3. Some vmis writers mamtain that virus writmg is a form of

creative
4. Despite the possibihly of a if they are caught, Achilles' heel commercial sensitivity (.)
aside from (
they continue to write viruses.
battle (s.) ; )
5. Software companies are forced to keep of the game. bug (s.) ^
134 Unit 16

dependence (on) price tag

k This unit deals with successful public relations, tte nle of
() ; (.) ;
fraud rectify W spin doctors and managing a crisis.
harmflil reliance
inappropriate seed of destruction (.)
inconvenient ; (.)
;
/
sophistication ;
Managing the crisis

individual privacy unauthorised , The board of Elecom plc* has been having a rough time lateh;
interference ; The share price has plummeted, the fmancial director has been
, undetected , suspended and a former employee is taking the company to an
national security employment tribunal. O n t o p of this, there is the threat of
vary industrial action. Help may be at hand in the guise of pubhc
relations speciaUst, Colin Payne.

Tasks
Suggest the corresponduig definitions.
1. virus =
2. bug
3. hacker =
4. download -
5. Internet =

/ 00s

Ray: So you see, Colin, we have a bit of an image prob

lem at the moment!
138 Unit 17

L A public relations specialist is going to help Elecom avoid

futher
a disaster b dependence
I. H e suggests highlighting something positive about the com
pany to its reputation.
a alarm b enhance
5. Elecom's new call centre and free Internet service represent
job creation and pubhc service in one
a hit b battle
5. The pubhc relations expert is going to promote b o t h items,
starting with a
a press release b price tag

1. 2. 3. 4. 5. 6.

The spin doctors

AUuding to the spin given to a baU to conftise the
opponent of its true direction, the term is frequently used in
a pejorative sense t o describe political public relations
advisors. Often vilified in the press, the spin doctor can
become the embodiment for the inchnation of politicians to
be sparing with the truth!

allude to pejorative sense ;
confuse ;
be sparing with (.)
embodiment spm (s.) , ;
inclination (.)
opponent vilify , (-.)
 Managing tlie crisis 139

Task 2
Match the words to form collocations
1. spin a income
2. downward b relations
3. press doctor
4. disposable d spiral
5. public e limitation

The story's good, but is it true?

Public relations have gained a poor reputation, but is it
entirely f3ir? When things go drastically wrong, there is little
doubt that someone needs to pick up the pieces and in many
cases, this will be the pubhc relations speciahst. Better, then,
to have one focal point for disseminating mformation rather
t h a n a series of s o m e t i m e s conflicting a n d potentially
misleadmg interviews with assorted spokespeople.

Crisis management is one aspect of pubhc relations that has

a high profile in many leading organisations. Deciding on a
comprehensive strategy that can be apphed in the event of
a crisis, will allow senior management to concentrate o n
tackling the problem rather t h a n simply fire-fighting. A
carefully planned and properly executed crisis management
plan may make aU the difference!

assorted ;
conflicting

I
crisis management
disseminate
properly executed
140 Unit 17

focal point (3d.)

yotentiaUy misleading
have a high profile ;
;
pick np the pieces , ; ;
(.)
^okespeople (spokesman,
spokeswoman)
tackle ;

Tasks
Read the announcement.

Elecom pic
Communicating to the world

Elecom announces new call centre

Elecom pic will be opening a new caU centre in Newcastle.

The centre is due to open in August 2000 and is expected to
create one thousand new jobs by 2003.
The decision o n where to locate the new centre was taken
foUowrng lengthy discussions with local authorities. Leeds
and Glasgow were also considered.
Aimed t o s u p p l e m e n t the existing centres in Barnsley,
Portsmouth and London, the new centre wUl help Elecom
continue to expand its rapidly growing Internet business.
For further details and a press pack, please contact Elecom's
Press and Pubhc Relations Department o n 020 7 500 0000.
Managing ttie crisis 141

due in: is due to open ; ;
:
lengthly discussions ;

press pack
supplement (v.) ,

Taska
Tick ( ) the appropriate box.
True False
1. One thousand people will begin working
at the new call centre in August 2000.
2. Leeds and Glasgow are among the existing
centres.
3. More information on the new call centre
is available.
3 Unit
Ttiis unit deals with late payments, added interest, managing
credit and collecting payment o n an overdue account.

Collecting payment
Coopers Limited* is having a difficuU time financially T h e bank 11
manager has been on the phone wanting to discuss the size of
the overdraft. With the figures weU and truly in the red, Eric
Wolton has asked his Accounts Manager, Elaine Walker, to do
some chasing.
Switchboard: G o o d morning, Stylehouse*, how may I help you?
Elaine: Good morning. This is Elaine Walker from Coop-
ers. I'd hke to speak to someone in your accounts
department.
Switchboard: Just connecting you.
Ed: Hello, Ed Austin here. How can I help? ^

- 1
Collecting payment 143

Elaine: I'm calling from Coopers about an overdue account.

Shall I give you the details?
Ed- Yes, go ahead!
Elaine: Our invoice n u m b e r is 11299 and your purchase
order number is XZ623.
Ed: I'll just get the details up o n my screen, if you'll
bear with m e a moment. Ah yes, Coopers. C a n you
confirm the amount outstanding?
Elaine: It's now 22,306. This includes interest we've add-
ed since last m o n t h .
Ed: That's not the figure I have. This invoice is for
21,761.95.
Elaine: You'll notice that our terms are thirty days net.
After that we add interest daily to all overdue ac-
counts. 22,306 reflects that addition. We advised
you of this in our last letter.
Ed: I'm not sure about this. I need to speak to my
manager.
Elaine: That's okay I'll hold the line.
A few moments later...
Sarah: Sarah Barton, Accounts Supervisor, I hear you have
a problem with your account.
Elaine: The problem we have with our account is that Style-
house has not paid it! C a n you tell me what the
problem is and when we can expect payment?
Sarah: I can't see why you haven't received payment al-
ready I'll need to look into this and get back to
you. Can I take your number?
Elaine: My number is 020 87779999. I need your answer
today, though. We've sent you three reminder let-
ters so far and we will be taking futher action if the
account is not settled promptly.
Sarah: I promise I'U call you back before five p.m.
144 Unit 18

accounts department overdue account ,
addition ; (.)
overdraft
amount outstanding
( ) purchase (s.) ,
be m tile red
, reflect
chase , ; reminder (letter) -
(.)
... if you'll bear with me a moment. settle an account (.)
... .
invoice (s.) terms ()
look into something well and truly
-.; -.

Taski
Complete the sentences below using the following words: overdraft,
overdue, outstanding, size, purchase, addition, account, supervisor,
chasing.
1. The of Coopers' has become rather large.
2. The Accounts Manager, Elaine Walker, is up an
overdue
3. She telephones Stylehouse and gives a member of their ac
counts department, Ed Austin, the invoice and
order numbers.
4. Ed and Elaine do not agree on the amount
5. Elaine informs Ed of the daily of interest to all
accounts.
6. He puts Elaine through to his , who is surprised
that Coopers haven't received payment and promises to get
back to Elaine.
Collecting payment 145

Added interest!
Small businesses suffer most from late payment, but U K
legislation now permits t h e m to add interest charges to
overdue accounts. Aimed t o change the culture of late
payment exercised by big corporations in the interest of their
own cash flow, small firms can charge interest at 8% over
the base rate.

base rate
cash flow ;
charge interest ()
culture ; (.)
exercise (v.) ,
late payment ,
permit (v.) ,

Task 2
TVanslate the words in brackets to complete the sentences.
1. U K legislation now () small busi
nesses to add interest charges to overdue accounts.
2. T h e culture of late p a y m e n t has b e e n ()
by big coorations.
3. C o m p a n i e s () have t o send out several
()
4. It can sometimes be quite a () before a ()
is paid.
5. If accounts are not () ^ o n time, smaU
companies can run into financial ()
I I 146 Unit 18

Managing credit
Good credit management may be a company's saving grace
and is vital to maintaining a healthy cash flow.
It is important to establish a credit policy with all chents
which clearly communicates details of credit terms how
much credit is allowed and when payment wiU become due.
If payment is stiU not forthcoming after polite and insistent
requests, it may be time to enUst the help of outside agencies.
This may involve a brief letter from a solicitor or it may
involve a debt collection agency.
Prevention is better than cure! Checking a client's credit
rating to determine credit limits is essential, but it is also
important to keep a weather eye o n that company's financial
health before "will not" pay becomes " c a n n o t " pay!

forthcoming !!, ;
(. )
credit limit
credit management (
)
credit policy
credit rating
debt collection agency
enlist ;
(.)
establish ; (.)
grace
keep a weather eye on sth. -.
prevention is better than cure
request in: insistent request ; ;
: 11 ^
Collecting payment 147

saving grace
solicitor ; .
terms ( )

Tasks
Read the letter and reply.

Coopers Limited
Building for you since 1894
Sarah Barton 30 March 2000
Accounts Supervisor
Stylehouse
211 O xford Street
London
WIX 5EF
Re: Overdue Account

Dear Ms Barton,
Despite previous applications for the immediate settlement of your
overdue account, the debt remains unpaid.
Take notice that if full payment (22,306) is not received by return
of first class mail, we shall, without fiirther notice, take legal action
to recover the debt, all costs and interest to be borne by you.
This is our final communication on the issue.
Your sincerely,
Elaine Walker
Elaine Walker
Accounts Manager
148 , Unit 18:

application ; ; (.) -?
( / )
issue (s.) ,
previous
recover ,
settlement in: immediate /
settlement

Dear

Your sincerely,
 Unit
This unit deals with going online, designing websites, Inter-
net cookies and understanding websites.

Stylehouse goes online

Stylehouse* has raised its profile by opening u p more franchised
outlets, but it does not yet have a presence on the World Wide
Web. Alex B r o w n is m e e t i n g w i t h S t e p h e n R o b e r t s , a
representative from Elecom pic's* web design team.

Alex: TeU m e about the benefits of having a website.

Stephen: WeU, for one, you need to consider the competi-
tion. If the other guys are doing it, you're going to
be left behind. You reaUy need to keep ahead.
Alex: I know Zigmat has just launched a website.
Stephen: You have to look at the cost savings involved. The
Web provides you with a virtual showroom which
can be accessed at any time and from anywhere -

kit tk
150 Unit m

a global presence without opening a single outlei]

outside the UK!
Alex: Surely people don't browse through a website
the same way as they do in a shop?
Stephen: N o t exactly in t h e same way, p e r h a p s , but a
well-designed and attractive site can still persuade
t h e m to buy.
Alex: Isn't there too m u c h risk involved in buying on-]
line? I can't imagine many people would be happy j
to provide their credit card details in this way.
Stephen: Online security is pretty good these days. Provid-
ing the information is supplied in a securely en-
crypted format, it's as safe as buying in a shop or
over a telephone. You only have to look at the
growth of e-commerce to see how it's shaping the
future, u s sales alone are now quite staggering.
Alex: I still don't quite see how it would work. Would we j
need to put our entire catalogue online?
Stephen: N o t necessarily The important thing with web-
sites is to consider the audience. If it takes too
long t o download or if the site contains too m u c h
information or is confusing to navigate, people
will get frustrated and wander off to a competi-
tor's site.
Alex: So it needs to be simple and effective.
Stephen: It's also a good customer service tool. You can pro-
vide help and tips as well as a frequently asked
questions (FAQ) page. It can also build customer
loyalty.
Alex: I think you've talked me round. If you can come'
up with a short report on what the likely costs wiU
be, I'll discuss it with the board next week and see
what kind of budget we can have.
stylehouse goes online 151

iiccess (v.) ; (.) raise one's profile (.)
( )
iiudience ; (.)
secure(ly) (-)
lrowse , ; shape (v.), (s.) (.)
; (.)
come up with showroom
customer 1%/- (
/ )
I'-commerce staggermg
; wander off to / (
I'ncrypted )
net frustrated You've talked me round.
.

Taski
Sequence to get the contents of the dialogue.
a Alex listens to these points but isn't entirely convinced; he is
worried about credit card security.
I) Stephen responds by explaining th^t it is a safe method of
buying, as online security is quite good nowadays.
c Alex Brown of Stylehouse is considering the benefits of hav
ing a presence on the World Wide Web.
d Secondly, he shows how cost savings will be made, as a web
site is a virtual showroom, accessible from anywhere in the
world.
e Stephen tells Alex that firstly, it is important to keep up with
the competition and not get left behind.
f Stephen Roberts from Elecom's web design team is explain-
mg to him how a website could raise Stylehouse's profile.
1 2 3 4 5 6
152 Unit IS

What is coolde?
Bearing n o relation to the biscuit barrel in your
kitchen, an Internet cookie is a text file placed on your
computer when you visit a website. The cookie is then used
to monitor the number of thnes an individual accesses that
website and can also retain personal information about your
buying habits.

I
biscuit barrel (Br.) (.)
buying habits ,

cookie (Am.) (.)
monitor (v.) ,
relation in: bear no ; :
relation to -.

Task 2
In every set, choose words that are similar in meaning.

a allude to 3. a Fire away!

b bear no relation to b You've talked me round!
refer to G o ahead!

a come up with 4. a disseminate

b be in the red b spread
have an overdraft encrypt
stylehouse goes online 153

What makes a good website?

It is essential to identify your target audience before starting
to think about designing the website. What will it be used
for? Is it primarily promotional? Should it offer two-way
communication so that your customers can contact you?
Will it be used t o c o m p l e m e n t your existing customer
options?

Once you have set your objectives, you need to consider the
content. This is the time to make use of the capabilities
offered by the web - such as interactivity and dynamism -
and not to treat it simply as another way of reproducing
existing brochures.
Web content should be clear and attractive. It should be
easy for users to navigate the site and access the information
they need. A site that takes a long time to download runs
the risk of deterring visitors from staying around.
You should seek t o encourage people to visit your site
regularly by keeping the content fresh and up-to-date. A
good website is a Ibng-term commitment!

capabilities
complement
commitment in: long-term ; :
commitment
customer options ,
content
deter (from doing stb.) -.
encourage
target audience
I Unit
This unit deals with the labour market, the role of H u m a n
Resources and the problems facting high school leavers or
graduates.

americom looks
at the labour market
Americom Incorporated's* business is in the fast growing area of
i n f o r m a t i o n t e c h n o l o g y ( I T ) . Sales are rocketing, a n d in
anticipation of this trend continuing, the board has given
approval for a new call centre. It is now up to the H u m a n
Resources ( H R ) team to come up with a short list for the best
locations. ^
Americom lool<s at tlie labour market 155

Olive: It needs to be near headquarters.

Kevin: I ' m not so sure distance is so critical and I don't
think Chicago has the capacity any more.
Olive: We could go East and hit Detroit or look to the
West and check out Minneapolis.
Kevin: Let's decide on. ah our criteria first. If we're open-
ing 24/7 we need both shiftworkers and part-timers;
flexibility is a must.
Olive: Skills level is important too. We need sound basic
skills but we also need folk with some develop-
ment potential.
Kevin: We should look at local employment traditions too.
If the area has been mainly industrial, how adapt-
able is the workforce likely to be?
Olive: And we need to check out unemployment levels.
How big is the available labour pool?
Kevin: How stable is the local population? Is there much
movement into and out of the area?
Olive: It should be attractive. People must be happy to
live nearby Research shows call centre workers
don't go for big commutes.
Kevin: The local infrastructure is crucial - transport and
communications systems need to be checked out.
T h a t was an oversight of Elecom's w h e n they
opened in Dublin.
Olive: Sure, they got stung with huge commuting delays!
Kevin: That's right, and it took ages to sort it out. Is there
anything else we haven't covered?
Olive: There's one major aspect. What's the competition
like? Who's hiring and firing? W h o ' s moving their
business to the area?
Kevin: There's lot of research work here. 1 d o n ' t think we
can handle it in the time available. I think you're
right about using an agency.
156 Unit 20

24/7 (24 hours/7 days a week, is huing and firing (.)
i.e. continuous service)

adaptable labour pool ;
( )
anticipation of oversight , ,
-.; ; (.)
-. part-timer
approval
board, the research (s.) ;
check out (.)
commutes rocket (v.) ;
(),

commuting shiftworkers

short list (
be crucial )
stung in: get stung (.)
development potential ;
()
folk ; take ages
go for (.)
-. unemployment levels
headquarters -
Americom lool<s at ttie labour market 157

Taski
Match to fonrm sentences.
1. Americom's sales are a is crucial.
2. Approval has been given for b a new call centre.
3. The H R team is c not go for big comrnutes.
4. An adaptable workforce d rocketing.
5. However, cah centre e checking out the best
workers do locations.

1. 2. 3. 4. 5. 6.

Starting Witti a Mdobi

F o r t o d a y ' s g r a d u a t e s o r h i g h s c h o o l leavers,
competition for good jobs is tough. Many will also have
worked part-time to fund themselves through university or
college, often in menial jobs in the service industry.

The McJob? Nicknamed after a fameus hamburger chain,

it is any easily gained employment that pays a wage but does
not require a high level of skills and is not seen as a long-
term commitment.

fund oneself {.)
menial jobs {.)
nickname (v.) ,
I'
158 Unit 20

Task 2
Suggest the missing words.
1. Many -graduates liave to f. thiemselves through uni-
versity.
2. They may worlc p - in the evenings or at week-
ends.
3. They sometimes take m jobs in the service industry.
4. Some kinds of employment do not require a high level of
s
5. A McJob is n after a famous hamburger chain.

The changing world of work

Work is changing and so are the workers! Demographic stud-
ies indicated the impact of the lower birth rate some years
ago. As fewer young people enter the labour market, the
baby boomer generation is starting to retire but it may not
be long before the retirement age is raised to accommodate
this shortage.
Traditional jobs in manufacturing and industry have been
shrinking in the developed world, whilst work in areas such
as service and information technology continues to grow.
Despite this growth, however, many of the jobs on offer are
temporary or part-time, particularly in the service industry.
T h e n u m b e r of p e o p l e leaving h i g h e r e d u c a t i o n has
expanded, producing more graduates, but the jobs to match
their skills remain elusive. Many organisations now have
flatter structures following earlier trends of downsizing. With
Americom looks at the labour market 159

fewer layers of management, the traditional career paths for

graduates have altered. The jobseeker of the future will need
to be flexible and constantly seek to acquire new skills in
order to retain marketability

downsizing
elusive ; {.)
layer ;
nrnnagement layer
career path
retire
shortage
shrink ()

Task3

Tick ( ) the correct statement.

1. a T h e lower birth rate has had an impact

o n the world of work.
b The lower birth rate has had n o impact
on the world of work.

2. a T h e traditional career paths for graduates

have altered.
b The traditional career paths for graduates have
stayed the same.

3. a Future jobseekers won't need to be flexible.

b Future jobseekers will need to be flexible.
I 160

1 Choose Heahh
Jest 2

and safety....
one of the
two answers;
move to the box regulations 8
shown transparencies 15

Wrong! 7 Wrong!

Go to number 8. Go to number 4.

11 Wrong! 12 Very good!

Mail... service.
Go to number 29.
order 111"*- 16
instant ^ 24

16 WfeU done! 17 Wrong!

... an account.
Go to number 22.
Settle '^22
Deter 18

21 Wrong! 22 Correct!

... Resources.
Goto number 13.
Folk 1""- 17
Human 19

26 Wrong! 27 Well done!

Put into ....

Go to number 30. loopholes 111*- 23
pigeonholes m*- 12
Test 2 161

Wrong! ^^fell done!

5 Correct!

Check the ... print. ... name.

Go to number 5
small 20 latenll 'i43
soft *-1 1 " 13

8 Correct! Wrong!
10 Wrong!

... complaints.
Go to number 25. Got o number 14.
Plummet 6
Handle "ii*. 25

Correct!
^41 ^lygood!
15 Wrong!

Anti... software. ... relations.

Got o number 2.
firework H i* 21 Pejorative "i* 10
virus 29 Public 30

18 Wrong! l^jcMeat! 20 Good!

The 'Vbrld... Web.

Go to number 16. End of test.
Wide 5
Wipe 111* 28

Wrong!
24 Wrong!
25 Vfery good!

... at;risis.
Go to number 27. Go to number 12.
Man age 111*14
Meh 1.149

28 Wrong!
29 Good!

... for damages.

30 Correct!

Clos eof..,.
Go to number 20. Seek 11 threI t 111* 26
Sue ii#27 bushless 111*4

6 30
I Unt
k This unit deals with taxation, paying VAT (Value Added Tax),
m government tax levying and fiscal policies, and filling in a
bank statement.

ne Mr MM will be calling!
The end of the financial year approaches at Coopers Limited*.
T h e VAT return is due and despite the immaculate record
keeping of Accounts Manager, Elaine Walker, the figures are
not looking good. The VAT inspector is due in seven days' time
and both Eric Wolton, the Managing Director, and Elaine are
going over the accounts.

Eric: What's this figure here?

Elaine: That is the total o u t p u t VAT - all the VAT we've
added to our outgoing invoices to customers.
Eric: And this one?
Elaine: That represents the input total - all the VAT we've
paid on goods and services that we've bought. ^
The VAT man wiii be calling' 163

Eric: T h e r e ' s quite a big difference b e t w e e n t h e m :

22,900 in outputs and 13,455 in inputs. This
means we already owe more VAT than we're claim
ing back.
Elaine: Yes, and that's not the worst of it. The problem is
that output VAT becomes payable to Customs and
Excise the instant we raise an invoice, not when
we receive payment for that invoice.
Eric: What about bad debts? Surely they don't attract
VAT?
Elaine: In this case, a debt is only considered bad when
it's still not settled after six months. So if our debts
are only four months old. Customs and E xcise still
expect the money.
Eric: What percentage of the 22,900 have we received
payment on?
Elaine: 22,900 VAT represents sales of 130,857. We have
invoiced customers 153,757 of which 22,900 is
VAT at 17.5%. To date we've only received 59,820
which represents 10,476 VAT.
Eric: So, offsetting output vAT of 22,900 against input
VAT of 13,445, we now owe the taxman 9,455,
irrespective of whether our debts have been paid or
not?
Elaine: E xactly.
Eric: I'd better get onto that bank manager again!

advance (v.) () claim sth. back
; ;
bad debts ; Customs and Excise Department

become payable
() is due ^
I 164

get onto
go over the accounts
Unit 21

pending payment (by customers)

(
)
immaculate raise an invoice (.)
input (.)
invoice (someone) (v.) record keepmg

urespective of tax return
offset VAT (Value Added Tax)
owe (
)
Taski
Fill in the gaps.
1. It will soon be the end of the financial year, and Coope rs'
VAT r. n is due.
2. The Accounts Manager, E laine, has kept i e records.
3. However, the figures are not looking good, so E laine and
Eric, Coope rs' Managing Director, are g g o r the
accounts.
4. E ric is rather concerned to note that Coope rs o s more
VAT than it is c g back.
5. E laine explains that the VAT becomes payable to Customs
and E e the instant Coope rs T. s an invoice.

j^ Raising finances!
Just as modern governments raise money by levying
taxes on popular commodities such as alcohol and tobacco,
so earlier regimes l o o k e d for imaginative s o u r c e s for
additional funding. Some of the most unusual were a tax o n
hearths in seventeenth century E ngland and a French tax
on windows and doors. The latter was finally abolished at
the beginning of the twentieth century!
The VAT man will be calling! 165

abolish
commodity
hearth
levy a tax ();

Task 2
Use the right word to get a collocation.
1. keep a eye o n a invoice
2. pick u p the b foot
3. be in the weather
4. weU and bill
5. put the final to truly
6. get a in the door pieces
7. raise an g red
8. fit the h touches

Getting good advice

Accountants and tax advisers are the least likely candidates
for redundancy! Like plumbers and doctors, they wUI always
have work. A good accountant can save a business money by
making sure that only the right amount of tax is paid and all
possible tax allowances are used.

A fine Une is sometimes drawn between the legal use of tax

loopholes and what may be considered to be tax evasion.
Understanding tax law can be just as complicated as any
other legal area, with b o t h parties in a dispute arguing
endlessly over the precise details.
166 Unit 21

Governments sometimes make use of fiscal policy to adjust

extremes in the economy. By raising taxes, they can curb
consumer spending and cool down an economy that is in
danger of overheating. A stagnant economy may be given a
boost by lowering taxes to encourage consumer spending.
In both cases, fiscal measures wiU be just one of the steps a
government may take.

argue ; the least likely candidate for (.)
boost in: give a boost ;
: ()
cool down , loophole in: tax loophole
curb , ; :
encourage / curb customer
spending / lower taxes
overheat
plumber
tax evasion precise details ;

draw fine line redundancy
() stagnant economy
fiscal measures /
take steps (to)
fiscal policy , -.
tax allowance
The VAT man will be calling!

Tasks
Use the information on p. 168 to calculate the final balance.

Anybank STATEMENT OF ACCOUNT PC Box 2 0 9

Business Bank A c c o u n t Side S t r e e t
Coopers L i m i t e d London N 1 5PQ

Coopers L i m i t e d ACCOUNT NUMBER

2 9 Greenvale Road 90348912
Isleworth STATEMENT DATE
Middlesex 2 9 May 2 0 0 0
T W l l IXZ STATEMENT NUMBER
2 2 8 / PAGE 1 OF 5

: pm DETAILS DEBITS CREDITS BALANCE

27 APR 00 BROUGHT FORWARD 39,000.05 DR
28 APR 00 STANDING ORDER SO 259.00 39,259.05 DR
28 APR 00 CHEQUE 101009 CHQ 3,169.25 42,428.30 DR
28 APR 00 BANK CREDIT BGC 9,629.73 32,798.57 DR
01 MAY 00 DIREQ DEBIT 899854 1,250.00 34,048.57 DR
01 MAY 00 CHEQUE DEPOSIT 35,000.87 952.30
01 MAY 00 INTEREST CHARGES 353.09 599.21
02 MAY 00
02 MAY 00
02 MAY 00
02 MAY 00
02 MAY 00
02 MAY 00
02 MAY OO

DR = o v e r d r a w n a c c o u n t
168 Unit 2 1

On 2 May 2 0 0 0 , Coopers Limited recei ves t h e f o l l o w i n g :

- Three i nvoi ces f o r 3 , 5 0 9 . 8 0 , 5 , 6 3 4 . 5 2 a n d 1 2 , 5 5 7 . 0 2 .
- Two c h e q u e s f o r 6 0 2 . 3 5 a n d 9 , 0 6 6 . 0 0 i n s e t t l e m e n t
o f i n v oi c e s .
- A di v c e o f t w o d i r e c t d e b i t t r a n s a c t i o n s w h i c h w i l l be d r a w n
f r o m C o o p e r s ' a c c o u n t on 2 May 0 0 . T h e f ir s t i s f o r 3 5 5 . 0 9 ,
t h e second f o r 7 5 0 . 0 0 .

Please e n t e r t h e a d j u s t m e n t s i n t o t h e r e l e v a n t parts o f t h e
statement and calculate t h e fi nal balance.

balance (s.) , ,
bank credit
brought forward ,

cheque deposit
credit (s.)
debit (s.)
direct debit
interest charges
overdrawn account
standing order
statement of account
transaction
 This unit deals with registration of trademarks, includmg
unusual trademarks, and the granting of patents.

Is it worth registering?
Colin Payne runs the Press and Public Relations business,
Adman*. Among the services he offers his clients is a Public
Relations management package which he calls Fressage. Colin
wonders whether he should register Pressage as a trademark. An
initial consultation with trademark agent, Amanda Wolfe, should
give him some answers.
Colin: I ' m not really sure about the benefits of having a
trademark, so I don't know whether I need one or
not. |
170 Unit 22

Amanda: A trademarli distinguislies the goods and services of

one business from those of another. It helps create
a brand awareness and could even end u p being of
real financial value to you. And, unlike a patent,
you can hold a trademark indefinitely provided you
continue to pay renewal fees.
Colin: Let's assume that I decide t o register Pressage.
What's my next step?
Amanda: First we would need to establish whether it meets
the legal definition. Can it be represented graphi-
cally and does it distinguish your services from those
of another? Can you show m e what it looks like?
Colin: Yep, this is it.
Amanda: And you've been using this to describe a manage-
ment service?
Colin: Yes, for about a year now.
Amanda: One of the first things we would need to do is to run
a search in the Trademark Register to see whether
someone else has registered something similar in that
class.
Colin: Which class?
Amanda: Probably N u m b e r 35 - this covers business servic-
es. There are forty-two classes of goods and services
in all. They range from chemicals t o leisure and ed-
ucation, so it's unlikely you would need to register
in all classes.
Colin: Assuming the search is okay, what happens next?
Amanda: If Pressage is able to be registered, we would pubhsh
it in the Trademarks Journal. If n o opposition is
filed within three months, then Pressage is officially
yours and you receive a certificate to confirm that
your trademark has a protection period o f t e n years.
Colin: That seems clear enough. I think I'd like to go
ahead.
Is it wortti registering? 171

S
brand awareness leisure
opposition (.)
class (classification) {.) ; goods and services
;
cover (v.) ; - package ()
( -.) protection period
distinguish
end up (being sth.) ; register (v.) ()
{.) - renewal fee -
( )
file (v.) run search
indefinite(ly) {.) -
; {.) - search {s.) ()
trademark
unlike

Task 1
Choose the right word.
1. Colin Payne is considering whether to Pressage as a
trademark.
a lower b register argue
2 Amanda Wolfe explains that a trademark helps create brand

a awareness b allowance anticipation

3. It the goods and services of one business from those
of another.
a curbs b alters distinguishes
4. Provided the renewal fees are paid, you can hold a trade
mark
a indefinitely b exceptionally carefully
5. A trademark can also being of real financial value.
a check out b end up go over
1 2 3 4 5
172 Unit 2 2

Unusual trademarks?
A trademark can be virtually anything, provided it is
unique to your business. The most obvious are perhaps words
(e. g. Kodak), logos (e. g. McDonald's golden " M " ) and
shapes (e. g. the Coca Cola bottle). However, you can also
register jingles (e. g. the Bacardi tune), numbers (such as
Chanel No 5) and surnames (e. g. Lacoste). More unusual
are smells (e. g. Unicorn's smell of bitter beer apphed to
flights for darts) and colours (e. g. Reckitt & Caiman's use of
the colour turquoise applied to their packaging and labellmg).

apply (to) obvious
bitter beer packaging
flight (darts) ( shape ; ;
) surname
jmgle turquoise
virtually ;
labelluig (;
; )

Task 2
List similar instances.
Words: Kodak,
Logos: McDonald's golden " M " ,
Shapes: Coca Cola bottle,
Jingles: Bacardi,
Numbers: Chanel N o 5,
Surnames: Lacoste,
 Intellectual property
An organisation iiolds a variety of assets - tangible assets
such as property and buildings, and intangible assets such as
goodv/ill and intellectual property In order to protect its
intellectual property from theft and plagiarism, there are a
number of legal safeguards that can be used.
The granting of a patent confers monopoly rights, enabling
the inventor to enjoy the profits of an invention for a fixed
period - usually between seventeen and twenty years. To
qualify for a p a t e n t , t h e specification m u s t d e s c r i b e
something that is not just new but inventive.
A design relates to the external appearance of an article.
T h e design should not be purely functional and should be a
truly aesthetic stand-alone design which competitors do not
need to copy in order to compete. Once registered, a design
confers monopoly rights for a maximum of twenty-five years.

appearance () inventive
assets inventor
compete ( monopoly rights
-.) ; -
confer (on)
external appearance () purely ;
safeguard in: legal safeguard
granting of a patent ; ()
specification
intangible assets stand-alone " ";
() (.)
intellectual property tangible assets

invention theft
174 Unit 22

Tasks
Tick ( ) the right box.
Yes No
1. Your surname is your first name.
2. Something is obvious when it is hard to see
or understand.
3. A safeguard is something that offers protection.
4. Granting something means allowing or
permitting something.
5 JJieft is when something is given to you.
6. Something that is stand-alone is independent
of other things.
 Unit
Tiiis unit deals with product design, the role of R & D ( R e -
search a n d Development) t e a m s , the origins of granting
patents and JIT (just-in-time) manufacturing.

from design to product

Elecom pic's R e s e a r c h a n d D e v e l o p m e n t (R & D ) t e a m ,
consisting of James MarshaU and Michael Hurley, have been
creative again. This time they have designed a gadget, WaveBeat,
which is about the size of a credit card. When attached to mobile
phones, it eliminates the low level microwaves that are produced.
The invention is already patented, so Elecom can now approach
manufacturers safe in the knowledge that the invention cannot
be copied. Susan Challen is from a large manufacturing company,
and is considering their proposal. ^
176 Unit 23

James: This is the prototype for WaveBeat. We're convinced

it wiU do exceptionaUy well. There's now very great
concern over the health hazards of mobile phones.
Susan: It's very sleek. How does it attach to a phone?
Michael: It's quite simple: the strip on the back has both mag-
netic and adhesive properties, so it should stick to
most makes of mobile phone and certainly everything
in Elecom's product range.
Susan: How does it actually work?
James: It soaks up the waves and disables them.
Susan: Sounds clever and it's light too. I imagine you're think-
ing of producing quite a few of these. What figure do
you have in mind?
James: Somewhere in the region of one million to start with.
As you implied, the potential market is huge and we
don't want to be caught short.
Susan: What about price range?
James: Obviously that depends o n production costs, but we
expect t h e m to retail at about 15 per item.
Susan: When d o you anticipate launch date?
James: As soon as you come u p with the goods. H o w long do
you think it might take?
Susan: Well, it looks sunilar in scale to the smart cards we
produce, but it depends on the actual make-up. If the
process is straightforward, we could turn it around in
about five weeks.
Michael: That sounds reasonable. N o w what about cost?
Susan: I can't give you a figure off" the top of my head, but if
you leave the details with me, I can get an estimate to
you by tomorrow.
Michael: That's good. When do you think you could actually
start production?
Susan: Hard to say Perhaps by the middle of next week. We're
finishing a big order on Friday but it depends on how
long it takes to set everything u p for your product.
 From de sign to product 177

adhesive (adj.) , off the top of one's head (.)
(..
anticipate );
be caught short , production costs
. (
disable )
gadget () property ,
retail at about 15 per item
have sth. in mind ()
hazard in: health hazard 15
; :
scale (s.) (.)
in the region of , similar in scale

safe in the knowlei^e that sleek
: soak up
TOM, stick (to) (v.) ,
launch date
straightforward
make (5.) (.) ; , strip (5.)
turn around
makeup (.) , ; (.)
, .

Task 1
Suggest the missing words using their Russian equivalents.
1. Ele com's R & D team, James Marshall and Michael Hurley,
have designed a () about the size of
a credit card.
2. When it is attached to mobile phones, it will ()
any low level ()
that are produced; it should sell exceptionally well. |^
178 Unit 23

3. Susan Ctiallen, wlio is from a large manufacturing company,

thinks WaveBeat looks very ()
4. Michael explains how the () on
the back has both magnetic and ()
properties.
5. Susan asks h o w m a n y Elecom would like to produce and Ij
when they () launching "
WaveBeat.
6. James answers that they have ()
one million in mind and that the launch date depends o n
how long production takes.

J^ Protecting inventions!
Although the origins of granting patents on inventions
are imprecise, some of the oldest can be traced back to
England where there is a continuous history extending from
the fifteenth century. The eariiest known patent was granted
in 1449 for a stained glass manufacturing pi-ocess. Not all
patent applications were successful, however. Elizabeth I
refused to grant a patent o n a design for a water closet on
the grounds of propriety!

imprecise ,
manufacturing process
propriety in: on the grounds ; :
of propriety
stained glass ;
trace back to ();
From design to product 179

Task 2
Restore word order.
I. traced bac]< / Some of / can be / in the world / to England /
the oldest patents

2. in 1449 / patent / T h e earliest known / was granted

3. N o t all / were / successfiil / patent apphcations

4. once refused / a patent / Elizabeth I / to grant / water closet

/ for a / o n a design

Just-in-time
Just-in-time (JIT) manufacturing is one example of a process
that would be impossible without the use of sophisticated
computer systems combining information o n sales, inventory
and fiiture product requirements.
By maintaining exact and current information o n the number
of items in stock and the number of items sold, just-in-time
manufacturing systems can produce the right amount of the
product at the right time, thereby avoiding overproduction.
The chent benefits from lower storage costs and does not
have to invest huge amounts in inactive stock.
180 Unit 23

Tliere are many other advantages to the system. By linking

production to requirements, just-in-time manufacturing
reduces surplus and enables more regular changes in design
as well as faster responses to address any quality problems.
It is not good news for everyone, however. The success of
just-in-time manufacturing is hnked to economies of scale -
for smaller manufacturers or those with a broader product
base, the cost and time involved are less likely to make it
cost-effective.

cost-effective
economies of scale
( )
in stock
inactive stock
inventory -
product base ;
scale (s.) ;
storage
surplus ,
thereby ;
time scale

Tasks
Fmd the word.
1. lepinventorywtexplibkewn
2. surplusmaquingedifstezoy
3. pluvaxmijstoragemertbixa
4. zertyopalwuvikscalejuggu
5. miccoplawbkannostock
 _ U n i t !
Tliis unit deals with financial difficulties, being in debt and
filing for Chapter 11 bankruptcy in the USA.

Coopers is in financial trouble

In six m o n t h s . Coopers Limited's* overdraft has risen from
250,000 to 1.5 million. Although the company has plenty of
ongoing work and a steady stream of enquiries, recent bad debts
have amounted to more than 750,000. High interest rates are
compounding the problem. Eric Wolton is in an urgent meeting
called by the bank manager, Richard Kerr.
Richard: It's getting too serious, Eric, we can't continue to
support this level of overdraft any longer. We're
going to have to take action.
Eric: What kind of action?
Richard: We're considering an administration order.
182 " Unit 24

Eric: What! You're going to call in the receiver? You can't

pull the plug o n us like that! Look at our order book!
Look at the money that is due to us! We're tendering
for three jobs at the m o m e n t with a total value of 4
milhon and we have a regular contract with Stylehouse*
who are increasing their retail outlets.
Richard: Look, we don't want to do this either, but you've got
to look at it from the bank's point of view. Your debt
is escalating to the point where we no longer feel that
your assets can cover it.
Eric: Coopers is a sohd firm. We employ fifty staff. We've
been going since 1894. We have a lot of goodwill and
we're an important part of the community.
Richard: And you also have a high level of debt. Let's face it,
Eric, those bad debts haven't done you any favours
and it's difficuh to see how you're going to recoup the
loss.
Eric: We certainly won't recoup it if you wind us up! There
has to be another solution. What about increasing my
personal guarantee?
Richard: Eric, you've already mortgaged your house. You need
to think carefully before offering any additional secu-
rity.
Eric: I can't just let the bank destroy my business. There
has to be another way!
Richard: There might be another alternative. You could call in
an insolvency practitioner and agree a company vol-
untary arrangement.
Eric: Wich involves what?
Richard: If you can reach agreement with your creditors to
accept less than you owe them, you might have a
chance to improve your cash flow while you collect
your own debts.
Eric: I don't see that I have much alternative.
Coopers is in financial trouble 183

iidministration order insolvency practitioner
()
; interest rate
Let's face it ... (.)
amount to ( -. .../...
), () mortgage sth. (v.)
voluntary arrangement overdraft (
)
compound ( problem) , point of view
( .) pull the plug on sth.
creditor -.
destroy , to call in the receiver (.)
do sb. favour
,
enquiry (inquiry^.) ; recoup
escalate (. g. debt) (.) steady stream
, ()
Koodwill , tender (for job) (v.)

Taski
Order these statements to reflect the contents of the dialogue.

a Eric does not want the bank to destroy his business, howev
er, and he wonders if there is another way to save it.
b Richard finally suggests that an insolvency practitioner is
called in and a company voluntary arrangement agreed.
c Although there is plenty of ongoing work and a steady stream
of enquiries. Coopers is in financial trouble.
d Despite this, Richard says that Coopers' debt is escalating to
the point where it cannot be covered by Coopers' assets. ^
184 Unit 24

e It is so serious tliat the banlc manager, Richard Kerr, tells

Eric Wolton that the bank is considering an administration
order.
f E ric does not agree with the bank calling in the receiver and
he points out that Coope rs is, for example, tendering for three
jobs with a total value of 4 milhon.
1. 2. 3. 4. 5. 6.

)i Adopting the ostrich position!

Some business people ignore problems in the hope
that they wUl simply go away. An administrative receiver
who was once called m to a retail chemist, found halfempty
shelves with outdated stock, electricity disconnection notices
and correspondence that had been waiting to be mailed
for the past ten years!

chemist
disconnection notice
ignore
ostrich
outdated stock !!

Task 2
Name the plural form.
1. shelf
2. class
3. commodity
Coopers is in financial trouble 185

4. guy
5. criterion
6. Imowledge

Running into difficulties

T h e u s talces a n a p p r o a c h t h a t is p e r h a p s m o r e ,
accommodating towards businesses that run into financial
difficulties than that taken in the U K .
In the u s , a corporation can file for a Chapter 11 bankruptcy
which affords it a certain level of protection from its debts.
This means a business can continue operating while it makes
provision to settle the debts. Although a business's creditors
need to approve the reorganisation p l a n , they d o not
generally have absolute veto powers if they do not agree
with it.

The reorganisation plan amounts to a proposal to creditors

explaining how the organisation intends to pay off its debts.
Repayrhent may take several years and the bankruptcy is
only discharged when the plan is complete. The costs in
terms of legal and financial advice make filing for Chapter
11 a n expensive proposal, but, with the possibility of the
business surviving in the end, it is one that many businesses
would be mistaken not to consider.

afford (.) ,
bankruptcy
debts in: pay off debts ; :
discharge (v.)
make provision (for sth.) ; ( -.)
Match antonyms
1. enquiry
2. destroy
3. repayment
4. outdated
5. survival
 Unit
Tliis unit deals with corporate expansion, diversification and
creating a diversified portfolio.

Wilt Americom brancli out?

Americom Incorporated* is very successful in the field of
telecommunications and has already expanded its market to
include ceU phones and Internet services. Although there is some
diversification, it is not sufficiently broad to satisfy some of the
c o m p a n y ' s m o r e risk-averse shareholders. T h e board is in
discussion about possible expansion.

Mattliew: N o w that we've heard the proposal from the fi-

nancial analysts, let's have a brainstorming ses-
sion. I want to hear what you folks have to say. We
can assess our ideas later. Simon, can you get the
ball rolling? Where do you think we should go? ^
188 Unit 25

Simon: It's a bit of a departure, but we could link up with,

say, AmBank and sell financial products via our
Internet service.
Matthew: That's a new idea. What's your suggestion, Olivia?
Olivia: I favour vertical integration - we could develop
serviced telecentres. It's a n extension of our cur
rent services and would supply a growing d e
mand.
Matthew: And Sam?
Samantha: M y idea is not so radical. I ' m more in favour of
horizontal integration. I d o n ' t feel the time is right
to enter a different market but would r e c o m m e n d
concentrating on our overseas expansion whilst
remaining in the same market.
Simon: We should look at what's o n the market and con
sider something very different. Perhaps look at
entertainment or broadcasting.
Matthew: I guess any of these link in well with what we cur
rently offer. I'd like you to develop your ideas and
get back to me with fiiU proposals. The A G M is
fast approaching and it would be good to have
something new for the shareholders to consider.

is fast approaching {.) departure ;

assess favour (v.)
averse fill! proposals {.)
branch out
broadcasting
demand in: growing demand get (start, set) the ball rolUng
; : (
-.)
WiU Americom brancli out? 189

horizontal integration (merger) offer (v.)

overseas
() risk-averse shareholder
Unit in well with ,
vertical integration

Taski
Match to form sentences.
1. Americom is considering a integration.
2. The board is b departure.
3. Simon thinks it's a bit of a c branching out.
4. Olivia favours vertical d having a brainstorming
session.
1. 2. 3.

Don't put all your eggs in one basket!

Many companies will spread tRe risk against a prime
market coUapsing by diversifying into new and sometimes
unrelated markets. Richard Branson's Virgin Group is one
such example of diversification. With its origins in the music
business. Virgin moved into air and rail transportation,
financial products, mobile phones and cosmetics - a truly
mixed portfolio!

collapse (v.) ;
portfolio ;

190 Unit 25
put all one's eggs (.)
in one basket
prime market
unrelated ;

Task 2
Use the following words to complete the sentences: face, head, arms,
foot, steps, door.
1. We'll try to get a in the
2. Let's it.
3. They're u p in
4. That's off the top of my
5. We'll have to take to rectify the situation.

Tasks
Take out the word that does not belong.
1. a fail b collapse c survive
2. a bankruptcy b variety c range
3 . a ignore b branch out c expand
4. a escalate b increase c recoup
5. a make b demand c brand

1. 2. 3. 4. 5.

f
Wilt Americom brancti out? 191

A good example of a large

public company is General Electric
GE was formed from an early merger - in 1892 between
the Edison Electric Light Company and the Thompson-Houston
Electric Company. It was listed in the original Dow Jones
Index of 1896 a n d is the only c o m p a n y from that time
remaining in the hst today Anyone lucky enough to have
invested before 1926, would find a single share now worth
1,536 shares! With operations in more t h a n one hundred
countries, GE employs nearly 300,000 staff worldwide.
Perhaps a major contributor to GE's success is its diverse
business portfolio. Most of us will probably think of domestic
appliances and aircraft engines first two diverse industries
in their own right but GE's portfoho does not stop there
and includes lighting, plastics and transportation systems. It
even has a stake in NBC, the A m e r i c a n b r o a d c a s t i n g
company! What can the next hundred years bring?

aircraft engine
lucky (enough to) ( -.)
diverse business portfolio (.)

domestic appliance
in one's own right
major contributor (.)
merger
operations (.)

stake in: have stake (m) ; : ()
192 " Unit 25

Task 4
Complete the form.

Your personal diversified portfolio

Think of a company that is a household name to you. It might

be American, British or German, large or small. Do you know
how diverse it is? Do you know whether it owns any other
companies?
By researching in the financial press, annual reports or on the
Internet, you can use the list below to compile your own
summary. You may be surprised at what you find out!

The company is:

Its main industry is:,
It is also involved in:

Now consider another company. Perhaps the one you work in

or one that you know quite well.

What is its main industry?

What areas would you consider good for this company to

diversify into?

compile
 Unit [
This unit deals with deregulation and the advantages and
disadvantages of a free market economy, government regula
tion and privatisation.

Free market economy or

government regulation?
At an international networking event in Manchester, three
individuals are discussing the economy. George is American,
Sarah is British and Ulrich is German. They do not see eye to
eye on everything!
George: More government restrictions. You have so much red
tape in this country!
Sarah: Well, perhaps we do have more regulations than you.
A lot of t h e m come from Brussels.

30
194 Unit 26

George: Business siiould be self-regulating. It's n o place for

government!
Sarah: I disagree. Whilst no one wants to see an increase in
red tape, there has to be some regulation by govern-
ment. Industry can be ineffective when it comes t o
self-regulation.
George: You can't have a free market economy and then re-
strict it with rules and regulations.
Sarah: And you can't have a completely free market for every
Tom, Dick and Harry to set up in business. What about
the public?
George: The public can protect itself It doesn't need this
patemahstic approach. There's way too much bureauc-
racy coming out of Brussels!
Sarah: You have regulations in the States too.
George: Sure, and to my mind we have too many, but even
that's nothing like what you have over here!
UJrich: If I may make a point here.
George: Sure, let's hear what you guys think.
Ulrich: I can't say I speak for all G e r m a n s , but I do think "
the public needs protection. Imagine what would
happen if you removed all regulations from the con-
struction industry. What kind of safety record would
there be?
George: I wasn't recommending complete deregulation. I ac-
cept in some industries a httle control may be needed.
Ulrich: And what about the professions? The pubhc needs to
know whether an accountant is properly qualified!
George: T h a t ' s just my point! Accountants have their own
professional body to regulate them.
Ulrich: But what stops anyone from calling himself an ac-
countant and setting up in business? The art of good
government is to combine enough regulation to pro-
tect the pubhc without stifling business.
Free market economy or government regulation? 195

every Tom, Dick and Harry (.) red tape ,
, restrict
() see eye to eye
make point (.) ; , -.
stifle ,
paternalistic approach ; the professions -.
(.) , ;
way too much (.)

Task 1
Suggest the missing words.

1. George, Sarah and Ulrich are at an international networking

event, discussing the e
2. George considers there to be too m u c h r. t
in the U K .
3. Sarah d , arguing that there has to be some govern
ment regulation.
4. Ulrich makes a p that if ah regulations were re
moved from the construction industry the safety record would
be under threat.
5. He maintains that the a of good government is to
combine enough regulation to protect the public without
s business.
196 Unit 26

Where have all the buses gone?

The 1980s and 1990s were a time of massive deregu
lation and privatisation in the U K . Some of the effects
can be viewed as beneficial, some verge on the bizarre.
Scottish buses are now operated by a large n u m b e r of
different companies, each one desperate for passengers. How
do they manage? It's easy - the first bus to the stop scoops
up anyone who's waiting, the later one misses them! The
resuh is that hardly any buses run to a timetable and the
buses arrive earlier and earlier ...

be desperate for sth. -.
beneficial ,
scoop up ,
verge on -.

Task 2
Choose the right word.
1. Some of the effects of deregulation in the U K have been
a beneficial b adhesive
2. Others on the bizarre.
a verge b disagree
3. Scottish buses are now by a large number of different
companies.
a stifled b operated
4. They are ah for passengers and race to scoop t h e m up.
a desperate b radical .
Free market economy or government regulation? 197

5 . The resuh is that any buses run to a timetable.

a hardly b virtually
1 2 3 4 5

Deregulation and privatisation

Like everything else, economic fashions also change. The
earlier part of the twentieth century saw the nationalisation
of many industries, the latter half has seen many of t h e m
privatised again. Even natural monopolies such as pubhc
utilities that were once considered safer in government
hands, have been divided up and sold off.

Increased competition has brought some benefits for the

consumer. Deregulation of the airline industry in the U S ,
where a number of private airlines operated price-fixing
policies keeping fares high, has resulted in an explosion of
smaller airlines offering no-frills travel for a fraction of the
original price. Some of these have gone o n to become hugely
successful, whilst certain larger airlines have disappeared
from sight.

divide up
fare /
fraction
no-frills , ;

price-fixing

public utilities ;

the latter half (. 20 )
198 Unit 26 ^

Tasks
Tick ( ) tlie right box.
Yes No
1. Many industries were nationalised during
the first half of the twentieth century.
2. All natural monopolies, such as public utilities,
have remained in government hands.
3. The increased competition has some advantages
for the consumer.
4. Price-fixing policies operated by private airhnes
in the u s kept fares low.
 Unit EEll
Tliis unit deals with different types of mergers, takeover bids
and the selhng of assets.

The deal might be off!

Nicola Smith and Lesley Fradley, two employees of Elecom pic*,
are listening to an announcement o n the news.
Reporter. The government has stated it is to investigate the
planned merger between Elecom pic and Americom
Incorporated*.
Nicola: U h oh, sounds like we're in trouble again!
Reporter: After receiving complaints from a number of tele-
communications companies, both in Britain and
in Europe, expressing concern...
Lesley: If the merger's called off now, quite a few faces
will have egg on them!
n 200

Reporter:
Unit 27

... tlie government has decided to refer the matter

to the Competition Commission.
Nicola: D i d n ' t the Competition Commission use to be
called the Monopolies and Mergers Commission?
Lesley: That's right.
Nicola: T h e whole business is just like the BA /American
situation. They didn't hke the idea of one compa-
ny having so much power.
Reporter: Elecom's chairman, Ian Smith, defended the deal,
saying that it would provide the consumer with
significant benefits.
Lesley: I don't suppose he mentioned the job cuts!
Reporter: He went on to say that in a global market, it was
essential for companies to offer the consumer the
best value for money ...
Lesley: By getting rid of staff!
Reporter: ... by creatmg synergies withm the industry.
Nicola: I wish they wouldn't use that word. It doesn't b e -
long in business!
Reporter: And now for the rest of the business news.
Lesley: Turn it off! I can't stand listening anymore.
Nicola: What do you think'U happen if the C C turns it
down?
Lesley: I suppose it will mean Elecom will be preyed upon
by someone else. Once it's known we'll agree to a
merger, it won't take long before there's another
bid.
Nicola: But who would be a possibility?
Lesley: There's always DLS AG*. At least that would make
it a European venture!
Nicola: I suppose that would be a natural choice, though
I can't help tiiinking the American deal might be
better in the long term.
Lesley: We'll just have to wait and see!
The deal might be off! 201

announcement , have egg on your face (.)

be preyed upon (.)
-. merger
bid (s.) investigate ;
off ;
express concern job cuts

get rid of sb. refer the matter to
-.

Task 1
Answer the following questions.
1. What is the government going to investigate?

2. Why is it going to d o this?

3. Who is it going to refer the matter to?

4. What was the Competition Commission formerly known as? i

5. How can companies offer consumers the best value for money?
202 Unit 27

Stripping tlie assets!

A frequent motive behind many US and U K talceovers
is to sell off the assets of t h e acquired company. If a
company's stock market value is assessed at less than its
combined real assets such as land and capital equipment
- it may become vuhierable to hostile takeover bids which
will result in the company's demise, as it is closed down and
its assets are sold off.

demise
hostile takeover bid ()

strip (v.) (.) ( )
vulnerable

Task 2
Complete the sentences usmg the following words: demise, talteover,
bid, vulnerable, defend, stripped.
1. Some companies become to hostile takeover bids.
2. Many company chairmen a planned merger.
3. A can result in a company being closed down.
4. An acquired company may be of its assets.
5. A company's usually follows the selling off of
its assets.
The deal might be off! 203

Different types of merger

Assuming Company A is a manufacturer of goods, in vertical
forward integration, it merges witli another company that is
higher u p the production line and closer to the customer.
Company B might be a retailer of Company A's goods.

In vertical backward integration the reverse applies, and

C o m p a n y A merges with a supplier of raw m a t e r i a l s .
Therefore, if Company A manufactures toys from plastic, it
might merge with Company B which supplies the ingredients
for the plastic.

Horizontal integration means that Company A merges with

another at the same level of production and in the same
market. In this case, Company B would also be a manufac
turer of toys.

Conglomerate integration would occur if Company A decides

t o e n t e r a new m a r k e t a>nd m e r g e with (or take over)
Company B which manufactures lawnmowers.

conglomerate Integration
lawnmower
merger
occur ,
reverse ;
204 Unit 27

Tasks
Match to fonm compound words.
1. conglomerate a line
2. production b manufacturer
3. raw c integration
4. lawnmower d materials

1. 2. 3. . 4
 Unit I
Tiiis unit deals with the advantages and disadvantages of the
pound or the euro, and the foreign exchange market.

Arguing tfie case for the euro

Two work colleagues are having a drink in the pub when one of
them spots a newspaper headline: "Britain to join e u r o ? "
Luke: It would be a terrible thing for Britain to join!
Heather: Why do you say that? I think it would bring great
benefits. We are in Europe after all, and it would
open u p all kinds of business options.
Luke: N a m e one!
Heather: A n enlarged European market would lead to tough-
er competition. There would be more transparen-
cy in business and reduced costs...

l l ^ g i III!
206 Unit 28

Luke: You can't count tiie small saving on currency trans-

actions as reduced costs. Imagine the cost to the
country if we had to bail out Germany or Spain!
Heather: I don't think that's likely to happen.
Luke: Who's to say? Anyway, we are psychologically closer
to the States and we shouldn't forget it. Our ties to
the dollar have always served us weU.
Heather: I think our ties to Europe are much stronger than
you imagine and 1 d o n ' t just m e a n geographically.
Luke: Well, you could say we are tied to Brussels! Every
new law that comes along means more regulation
for Britain. D o this, d o n ' t do that. IVIonetary
union would just compound that.
Heather: Can you not see any of the advantages that have
come out of our links with Europe?
Luke: N o t really, no.
Heather: Greater stability, economic growth. We couldn't
have created the Airbus on our own. We wouldn't
have freedom to move around Europe. If we hadn't
joined, we would be very isolated by now...
Luke: I bet you're also in favour of a single European
state!
Heather: Actually no, I think it's important for each m e m -
ber state to retain its identity.
Luke: But don't you see - a single currency means a
single state! We would lose control of our econom-
ic sovereignty
Heather: I think that's a huge exaggeration.
Luke: If Europe got hold of the pound, what would we
have? I'll tell you what: higher taxes, more regula-
tions and an interest rate decided in ...
Heather: ... which of course would be far worse t h a n a n
interest rate decided by the Bank of England! I ' m
going to the bar before they call time. Same again?
Arguing tlie case for tiie euro 207

bail out enlarged ,
call time
( exaggeration
/) monetary union
argue the case for / against sth.
/ spot (v.) (.)
-. tie (s.)
count (sth.) as (sth.) ; Who's to say?
(.) ?

Task 1

Suggest the English equivalents of the Russian words in bracliets.

1. There has been a lot of arguing the ()

. both for and against the euro.

2. Some people believe a n ( )

market would bring great benefits, such as tougher c o m
petition.
3. Some also maintain that the ()
that have come out of Britain's hnks with Europe are greater
stability and economic growth.
4. Others, however, claim that ( )
may mean being tied to Brussels and any new rules and reg
ulations.
208 Unit 28

Pound or euro?
A country's currency is an emotional subject! It is now
unclear whether the U K public, left to its own devices,
would have had any strong objection to monetary union.
Political parties have used it as a tool in their campaigns
and the press have been zealous in whipping up support for
the pound as a symbol of national identity. Logical arguments
for and against are lost in a wave of hysteria.

leave sth. to his / -.
her own devices
objection
wave (s.)
whip up
zealous ,

Task 2
Match to form collocations.
1. whip up a with another company
2. merge b a proposal
3. strip c taxes
4. set u p d in business
5. consider e an invoice
6. grant f assets
7, raise g support
8. levy h a patent
1. 2 3. .. ... 4 5 6 7
 -Ill
Arguing tlie case for ttie euro 209

Foreign exctiange
Like any other market, the foreign exchange market is
affected by supply and demand. Taking the U S and the U K
as an example: an increased demand for U K exports may
lead to the appreciation of the pound ( / G B P ) , or in other
words, the pound gets stronger against the dollar ($ / U S D ) .
As the pound rises in value, however, the cost of U K exports
also rises and they become more expensive for the Americans
to buy. D e m a n d is then lowered, which may lead to the
d e p r e c i a t i o n of t h e p o u n d against t h e dollar a n d t h e
fluctuation starts again.
Foreign exchange transactions are recorded in a country's
balance of payments which may show a surplus or a deficit,
depending o n the level of currency being bought or sold to
exchange for goods, services or other fmancial transactions.
Market intervention occurs when a government or relevant
monetary authority intervenes o n behalf of a particular
currency to influence its market rEfle.

appreciation ( )
depreciation ,
fluctuation ( )
foreign ex change market / ;
transactions ()
Intervene

market intervention ( )

supply and demand
210 Unit 28

Tasks
Supply the missing words and forms to complete the sentences.

1. foreign exchange market / affected / supply and demand

2. increased demand / U K exports / lead / appreciation / pound

3. pound / rises / in value / cost / U K exports / also / rises

4. demand / lowered / lead / depreciation / pound / against /

dollar
 Unit
Tliis unit deals with the environment, the benefits of "green"
housing, "Pigouvian" tax, ethical investments and complet-
ing a company organisation chart.

Green housing?
A conversation o n the golf course gets Eric thinking about the
future direction of Coopers Limited*.
Len: It's been highly successful. Indications are that ener-
gy consumption alone has been reduced by 70%.
Eric: That sounds like quite an achievement. When did you
first get involved?
Len: About four years ago, I met a G e r m a n chap at a func-
tion. H e was overseeing a building project outside
Hamburg based on sustainable development. It was a
212 Unit 29

huge success and led to further E U funding. He was

in Britain to start up a similar project in Liverpool.
Eric: "What's the main focus?
Len: There are several aims for eco-housing projects. The
intention is to develop brownfield - as opposed to
greenfield sites and to re-create communities - you
know the kind of thing: parks, shops, schools, mixed
housing.
Eric: Mixed housing?
Len: Flats and houses, from one bedroom to six bedrooms.
Some privately owned, some rented out by housing
associations. All incomes, all ages, families and single
people.
Eric: What about energy consumption?
Len: The energy efficient angle plays a major role - not
just insulation but also solar energy, geothermal ener-
gy-
Eric: It sounds exciting.
Len: It is. ExpeciaUy because it not only concentrates on
using sustainable products - such as local timber and
bricks - but it also reintroduces traditional skills into
the community.
Eric: What about waste management and water use?
Len: Recycling points are placed at regular intervals, inter-
nal water use is reduced and more effort is made to
coUect rainwater for gardening.
Eric: What kind of fiinding is available?
Len: At the m o m e n t , most local authorities give grants
towards eco-housing. The E U has funded several

I
projects, but cannot be expected to continue at the
same rate.
Eric: I'd like to get Coopers involved - it sounds Uke the
way of the future!
Len: You wouldn't regret it.
 I
Green housing? 213

aim (s.) , insulation ;
angle (s.) (.) (,
..) local authorities
brick ;
brownfield site
( as opposed to
, ..) oversee ,
eco-housing reintroduce (.)

tunction , skills in: traditional skills
fund (v.) ; :
grant (s.) ,
greenfield site sustainable
; sustainable development

() timber ;
housing association -
' waste management
Indication ,

Task 1
Restore word order.

I. outside Hamburg / A sustainable / was a success / develop

ment building project

2. developing brownfield sites / eco-housing projects / include

/ Aims for
214 Unit 29

3. a major role / The energy efficient / plays / angle

4. skills / o n using / and reintroduces traditional / It concen

trates / sustainable products

5. give grants / Most local authorities / towards eco-housing

What is a Pigouvian tax?

I t ' s a tax o n e m i s s i o n s devised by t h e British
economist, Pigou. To avoid the problem of direct regulation,
the Pigouvian tax is levied per unit of pollution caused. This
creates a fiscal incentive to organisations to reduce the
number of units produced, thereby reducing their overall
tax bill. This m e t h o d avoids blanket regulation across
industries which may not prove efficient or effective.

tax bUl
blanket regulation ()
devise ;
emission ; ;
incentive (to do sth.)
pollution
unit
Green housing? 215

Task 2
Choose the right word.
1. Emissions are a form of
a incentive b pollution c function

2. Pigou was a British

a economist b chemist c receiver

3. Pigouvian tax is levied per of pollution caused.

a brick b angle c unit

4 This creates a fiscal to organisations to reduce the

number of units produced.
a incentive b insulation c indication

5. Their overall tax is thereby reduced.

a timber b wave c bill

I. ..... 2 3 4 5

Ethical investments
are more popular than ever
The time has passed when companies could disregard the
opinions of their shareholders. Grovidng consumer awareness
means that a higher percentage of investors are demanding
more socially responsible action from the companies they
invest in.
216 Unit 29

Where investing ethically was once considered an expensive

choice avoided by all but the most socially committed
individuals, there is now more support for the view that
progressive, ethically managed companies may be more
profitable than other, less conscientious companies. Whether
this is strictly true may not matter ethical investors are
more hkely to endorse socially responsible companies which
in turn may promote more of the same behaviour, thus
creating a "virtuous circle".

The figures speak for themselves. In the three years to 1999,

ethical mvestments in the United States more t h a n doubled
and now account for m o r e than one trillion U S doUars
nationally.

conscientious , ,
disregard (v.) ;
endorse ;
;
socially conunitted
;
strictly true
,
"virtuous circle"
 Oreen housing? 217

Tasks
Use the following job titles to complete the chart: Trainee
Programmer, Director of Operations (board member), Junior
Accountant, Sales Manager.

A typical company organisation chart

Chairman

Chief Operating
Officer
(boarrj member)

Business Human Finance Director

Derelopment Resources Director of Information
Director Director (board Services
(board member) [board member^ member) (board member)

Head Head Head of Informa-

of Finance ot Operations tion Services

HR HR Senior Customer
Marketing Systems
Manager Manager Accoun- Services
Manager Engineer Analyst
(London) (Regions) Manager Manager

Customer rechnical _
f>itaprnenl| |0ekpH Marketing
Executive
Services Services
Pro-
grammer
Executiw Executwe Supervisor I Supervisor fl^""^'

Custoraer Technical
Admin Accounts
Services Services Pro-
Assistant Qerk
Agent Agent graimner
 This unit deals with export restrictions and tariffs, and ap-
plying economic sanctions.

Getting to grips With exports

The business of exporting can be fraught with difficulties. Elecom
plc* is considering the latest restrictions which look as if they
may spell trouble for some of the company's products. Angela
Lewes, the export manager, is explaining to Cynthia Shaw, a
management trainee, what the restrictions mean.
Angela: A sigiiificant number of Elecom's goods are likely to
be subject to the new export restrictions.
Cynthia: Why is that?
Angela: The problem arises with the term dual use goods which
includes telecommunications and electronic equip-
ment. ^
Getting to grips witti exports 219

Cynthia: Dual use? Suggesting they might be used for military

purposes?
Angela: Exactly This is how the law defines it:
The goods shall not be exported if the exporter has been
informed by a competent authority that they are or may
be intended, wholly or in part, to be used in connection
with the development, production, handling, operation,
maintenance, storage, detection, identification or dis-
semination of chemical, biological or nuclear weapons...
Cynthia: So some of Elecom's products will be included...
Angela: ...or the development, production, maintenance or stor-
age of missiles capable of delivering such weapons. I ' m
not suggesting our products are likely to be used for
non-civilian purposes. It's how the new restrictions
might see them. It's a question of interpretation.
Cynthia: H o w do we find out?
Angela: Whenever we develop a new product, or amend an
existing one, we need to apply to the Export Control
Organisation at the Department of Trade and Indus-
try. They wiU advise us whether an export hcence is
required.
Cynthia: What happens if they refuse a licence?
Angela: There's not much we can do. We can appeal or we can
wait to see if there are any changes.
Cynthia: If we get a hcence, can it be revoked?
Angela: T h e government can revoke an export licence if it
decides that a particular item should no longer be
exported. This would usually be in the event of war,
the U N imposing sanctions, or new information about
how the product may be used for non-civilian pur-
poses.
Cynthia: It must be quite a job keeping up-to-date with all
Elecom's products.
Angela: It is. That's why we have a special team.
220 Unit 30

aomend ; get to grips with sth. 11
( -.),
appeal (v.) , ( -.)
impose in: impose sanctions
; :
be subject to sth. It must be quite a job ...
(- ); , ()...
-. maintenance ,
non-civilian purposes
missile
detection revoke , ,
dissemuiation
export restrictions spell trouble //

fraught with difficulties weapon
!! wholly ,

What's the connection

between bananas and cashmere?
There is no connection, you may think, but they are
now hnked historically. In 1999, growing US resentment
over the E U ' s import policy on bananas, erupted into the
threat of harsh import tariffs. Selecting a random mix of E U
goods - ranging from cashmere sweaters and pecorino
cheese, to greetings cards and handbags - the U S was set to
impose 100% import duty on these goods, a potentially
devastating move for European companies.
 i)
Getting to grips witii exports 221

move in: devastating move , 11; :

erupt into (.)
harsli
import tariff{s), duty ;

random ,
resentment ,

Task 1
Matcli synonyms.
1. amend a take place
2. bill b alter
3. advantage invoice
4. oversee d benefit
5. occiir e monitor

1. 2. 3. 5.

Economic sanctions
In 1919, after the First World War, the idea was raised to use
sanctions as an alternative to military action, rather than as
an additional tool of warfare. More than eight decades later,
sanctions are now widely used, mainly by the US.
 222 Unit 30

Their success rate is diminishing, however. Before 1970, they

were 50% successfiil; in the following twenty years to 1990,
their effectiveness dropped to 20% and continues to fall.
Globalisation is one reason for this decline: where there is
n o multilateral coalition of nations employing sanctions, a
country that is targeted can more easily switch trade to other
markets.

Sanctions also have an impact on the country applying them,

particularly when the action is unilateral. During 1995, the
u s enforced sanctions against twenty-six countries with the
resultant loss of $19 billion in US exports. This, coupled
with the drop in effectiveness, means it may not be too long
before sanctions fall from favour.

decline (s.) ;
diminish (), ()
drop (v.) ,
effectiveness ,
enforce ;
(. )
fan fi-om favour (favor Am.) -. ;
(.)

multilateral
switch to ; ;

unilateral
warfare ;

I
Getting to grips with exports 223

Task 2
Decode the abbreviations.

1. A G M
2. CV
3. E U
4. G B P
5. H R
6. ISO
7. NVQ
8. P L C
9. R & D
10. U S D
11. U S P
12. VAT ?
224 Test 3 :

Test 3
1 I Choose ...Added Tax.
one of the
two answers;
move to the box Value "li* 8
shown Worth "#. 15

Wrong! Wrong!

Go to number 8. Go to number 4.

11 Wrong! 12 \fety good!

Cost-...manu-
facturing,
Go to number 29. effective 16
successful nil*- 24

16 Wfell done! 17 Wrong!

Create a ... portfolio

Go to number 22.
diversified 22
departure 18

21 Wrong! 22 Correct!

Stripping... .
Go to number 13. bids n*- 17
assets 11" 19

26 Wrong! 27 Well done!

The foreign...
market.
Go to number 30. enlarged 23
exchange ni#- 12

f
Test3 225

Wrong! 4 WeU done! Correct!

Fiscal.... ... a trademark.

Go to number 5
policy nil* 20 Compete i"*^ 3
patent iin*- 7 Register mi*- 13

8 Correct! Wror>g! 10 Wrong!

Research and....
Go to number 25. Go to number 14.
General 6
Development ^ 25

13 Correct! 14 Very good! 15 Wrong!

... debts. File for... .

Go to number 2.
Goodwill 111*-21 provision 10
Bad N1"- 29 bankruptcy 4- 30

18 . Wrong! 19 Great! 20 Good!

Free... economy
'Goto number 16. End of test.
market 5
fraction in- 28

23 Wrong! 24 Wrong! 25 Very good!

Vertical...
integration,
Go to number 27. Go to number 12. backward iiii#-14
merger m*- 9

28 Wrong! 29 Good! 30 Correct!

... tax. ... sanctions.

Go to number 20. Achilles' * 11 Detection mi*- 26
Pigouvian iiii*- 27 Economic "1*- 4

8 AenoBOH aHnlHHCKHii 3a 30 ahbh