Академический Документы
Профессиональный Документы
Культура Документы
RESOURCE BANK
2016/17
Compiled by:
The Department Of Business Foreign Languages
Nada Gjukić, mag., Dr. sc. Višnja Kabalin Borenić, Boglarka Kiss Kulenović, M.A.,
Mr.sc. Ankica Knezović, Vera Krnajski-Hršak, M.A., Dr.sc. Borka Lekaj Lubina,
Mr.sc. Iva Planinšek Čikara, Mr. Tamara Sladoljev-Agejev
1
COURSE CONTENTS
TOPIC TEXT SOURCE
Course Contents RB*
INTRODUCTION RB Contents RB
Business English I: Information for Students RB
1 UNIVERSITY ESSENTIALS Introduction RB
Universities and Colleges RB
Bologna: An Overview of the Main Elements RB
2 ECONOMICS vs. ECONOMY Economy and Economics RB
Why Economics? RB
10 MARKETING Products MK 11
Marketing MK 12
Advertising MK 13
The Centrality of Marketing RB
The Four Major Promotional Tools RB
2
RESOURCE BANK CONTENTS
TOPIC TEXT PAGE
Course Contents 2
INTRODUCTION RB Contents 3
Business English I: Information for Students 4-5
4 THE THREE TYPES OF ECONOMIC The Three Types of Economic Systems 30-32
SYSTEMS
The Public Sector 34-35
5 THE PUBLIC SECTOR
The Role of Government 36-37
Taxation 38-41
What is Privatization, Anyway? 42-43
The Corporation 44
The Pendulum of Control 45
RELATIONS
3
INTRODUCTION
Business English I
Information for Students
COURSE AIMS
COURSE REQUIREMENTS
Class participation implies contribution to class work, which requires preparing for classes in
advance (home assignments, research, project work, studying, etc.).
3 Passing two written progress tests or one comprehensive written test at the
end of the term
your reading skills: understanding articles and reports concerned with contemporary
business issues
your writing skills: ability to write business letters using the appropriate style
(register, clarity, coherence, concision, layout)
your recognition and active use of specialist vocabulary
demonstrate your ability to clearly and coherently discuss business topics covered by
the course using specialist vocabulary
express a viewpoint on a topical issue (advantages, disadvantages, agreeing,
disagreeing…) and ask relevant questions.
4
REQUIRED LITERATURE
RECOMMENDED LITERATURE
Business dictionaries:
Oxford Business English Dictionary for learners of English & CD-ROM (2005)
Grammar books:
Murphy, R. (2004) English Grammar In Use with Answers and CD ROM: A Self-study
Reference and Practice Book for Intermediate Students of English (Paperback),
Cambridge -University Press
5
1 UNIVERSITY ESSENTIALS
I Study the university essentials below and on the opposite page. Find English
equivalents for the following Croatian words/expressions:
6
ACADEMIC DEGREES:
1ST degree Bachelor's degree Bachelor of Arts (BA) v. Bachelor of Science (BSc)
nd
2 degree Master's degree Master of Arts (MA) v. Master of Science (MSc)
rd
3 degree Doctor's (doctoral) degree, (PhD)
In writing :Jake Lenard, BSc In conversation: «Mr Lenard, ...» (no title)
Anne Stern, MA «Ms Stern, ...» (no title)
Henry Hill, PhD «Dr. Hill, ...» (title)
Examples: She is a Bachelor of Economics.
She has a master's degree in economics.
She is a Master of Business Administration (MBA).
He has a BA in Economics.
He has received his PhD degree from the University of Zagreb.
STUDENTS ORGANIZATION
7
UNIVERSITIES AND COLLEGES
I Read and fill in the gaps in the sentences with the words from the box.
1 After school many British students go to university. They apply to several universities
through UCAS (Universities and Colleges Admission Service) and receive offers of a place
on condition that they achieve certain grades in their A levels.
2 Most universities receive some money from the state. The oldest and most famous are
Oxford and Cambridge. Other much respected universities include London, Durham and St
Andrew’s. Some universities such as Birmingham and Manchester are called redbrick
universities because they were built in the 19th century with brick rather than stone. The
newer universities have their buildings grouped together on a campus.
3 A , which is usually an honours degree, generally takes three years.
Most courses end with exams called finals. Results are given as classes (=grades): a first is
the highest class, seconds are often split between upper second and lower second, and
below that is a third. Graduates may add the letters BA ( ) or BSc
(Bachelor of Science) after their name. Some graduates go on to study for further degree,
often a or a doctorate.
4 Higher education is not free. In principle students have to pay a contribution to the cost of
teaching ( ) and have also to pay their living costs
( ). The government provides loans to help them pay for university
education which have to be paid back from earnings once their income reaches a certain
level.
5 Americans talk about “going to college” even if the institution they attend is a university. To
Americans the phrase “going to university” sounds pretentious. Most colleges offer classes
only for students studying for a bachelor’s degree. Community
colleges offer two-year courses leading to an , and afterwards
students transfer to a different college or university to continue their studies. Universities are
larger than colleges and also offer courses for students who study in
graduate school. Many universities also have separate professional schools, e.g. a medical
school or a law school.
6 American high school students who want to study at a college or university have to take a
standardized test, e.g. the SAT (Scholastic Aptitude Test) or the ACT (American College
Test). Students from countries outside the US who are not native speakers of English must
also take the (Test of English as a Foreign Language). Each college or
university decides on the minimum score it will accept, though test scores are never the only
factor taken into account. Students apply direct to between three and six colleges in their last
year of high school. Each college has its own form and most include a
question for which the student must write an essay. The student also has to send a
(=an official list of all the subjects studied and the grades received) and
letters of reference.
8
grants financial aid Ivy League scholarship board loan
7 There are many private colleges and universities but most students choose a public
institution because the costs are lower. All universities charge tuition, and students pay extra
for room and . Prices range from a few hundred dollars a year to well over
$25 000 at some private colleges. Students whose families cannot afford to pay the full
amount apply for . Many students receive a financial aid package which
may be a combination of from the government, a , a student
and work-study (=a part-time job at the college).
8 The most famous universities are those in the_ , including Harvard and
Yale, but many others have good reputations. Large universities often put most emphasis on
research. Smaller colleges tend to concentrate on teaching undergraduates, and many
students prefer these colleges because they offer smaller classes and more personal
attention from teachers.
9 The US academic year may be divided into two semesters of about 15 weeks or three
quarters of about 10 weeks each. Students take courses in a variety of subjects, regardless
of their main subjects, because the aim of the liberal arts is to produce well-
rounded people with good critical skills. At the end of their (=second) year
students choose a (=main subject) and sometimes a
(=additional subject) which they study for the next two years. Students take four or five
courses each semester from the course catalogue. Courses may consist mainly of lectures
or may include discussion sections or lab sessions.
10 Students are given grades at the end of each course. The highest grade is A; the lowest
is F, which means that the student has failed the course and will not get for
taking it. To check a student’s overall progress, the university calculates a grade point
average (GPA). Students who finish their degree with a high GPA may be awarded Latin
honours, of which the highest is summa cum laude.
9
II Answer these questions.
Paragraph 3
Which academic degrees may students earn when they graduate in Great Britain?
How does the academic grading system work in Great Britain?
Paragraph 4
Do universities charge a tuition fee in Great Britain?
Paragraph 5
What is the difference between a university and college in the US?
Which degree will you hold if you graduate from a community college?
Paragraph 6
What is required to be admitted to an American college or university?
Paragraph 7
What does a student’s financial aid package include?
Paragraph 9
How is the US academic year divided?
How do students select their courses in the US?
What types of classes are there?
Paragraph 10
How does the academic grading system work in the US?
What does GPA stand for?
Paragraph 11
How is the academic year divided in Great Britain?
What types of courses are there in Great Britain?
What types of classes are there at British universities?
Paragraph 12
What are the different titles for university teachers in Great Britain?
What are the different titles for university teachers in the US?
What do TAs do and what are the benefits they get in return?
III Find English equivalents for the following expressions in the text.
10
IV Fill in the table and compare the universities.
Do they charge a
tuition fee?
How is an academic
year divided?
What types of
classes are there?
What types of
courses are there?
V Read the following text and underline the key terms referring to the Bologna
Process.
BOLOGNA – AN OVERVIEW OF THE MAIN ELEMENTS
The Bologna Process aims to facilitate mobility by providing common tools (such as the European
Credit Transfer and Accumulation System – ECTS and the Diploma Supplement) to ensure that
periods of study abroad are recognised. These tools are used to promote transparency in the emerging
European Higher Education Area by allowing degree programmes and qualifications awarded in one
country to be understood in another.
Three Degree Cycle
Two basic degrees, Bachelor and Master, have been adopted now by every participating country;
sometimes in parallel to existing degrees during a transition period, sometimes replacing them
completely. European universities are currently in the implementation phase, and an increasing
number of graduates have now been awarded these new degrees. Typically, a Bachelor degree
requires 180-240 ECTS credits and a Master programme between 90-120 ECTS credits, with a
minimum of 60 ECTS at Master level. This allows for a flexible approach in defining the length of both
Bachelor and Master programmes.
Many participating countries have made substantial changes to their systems in response to the
Bologna Process. Introducing the new degrees has required a tremendous effort in reviewing curricula
and expectations toward students. Already over half of European universities have reviewed their
curricula entirely, using the Bologna reforms to implement a more student-focused approach and new
quality procedures.
In the third cycle, European PhD programmes are not defined by ECTS credits, however, common
principles are currently under discussion.
Source: The European University Association
http://www.eua.be/eua-work-and-policy-area/building-the-european-higher-education-area/bologna-
basics/Bologna-an-overview-of-the-main-elements.aspx
11
2 ECONOMICS AND ECONOMY
INTRODUCTION
Economics (noun) The study of the way in which wealth is produced and used.
Economy 1 (noun) The system by which a country’s goods and services are produced
and used.
e.g. The transformation from a command economy to a market one.
2 (noun) The careful use of money, goods, time etc. so that nothing is wasted.
e.g. In trying to achieve the economy, the National Health Service is cutting on
its spending.
4 (adjective) An economy fare, hotel etc. is cheaper than other things of the
same type.
e.g. Kuoni Travel offers a range of economy and medium-priced hotels.
Economist (noun) Someone who studies the way in which wealth is produced and used
in an area.
Economical (adjective) Using time, money, goods etc. carefully, without wasting.
e.g. Adults generally watch a movie on video once or twice, making it more
economical to rent than to buy .
Economize (AE) /Economise (BE) (verb) To reduce the amount of time, money goods etc.
that you use.
e.g. The company will continue to economize by shedding further 2,000 jobs
this year.
Economies of scale (noun in plural) The advantages that a big factory, shop etc. has over
a smaller one because it can spread its fixed costs over a large
number of units and therefore produce or sell things more cheaply.
12
II Fill in the blanks with the words from the box.
ECONOMIC/ ECONOMISE/ECONOMICAL/ECONOMICS/ECONOMIST/ECONOMY
1 (adj)
a) Relating to or involving economics, money, finance.
b) Which produces enough profit to make it worth continuing with.
2 (n)
Someone who studies the way in which wealth is produced and used in an area.
3 (v)
To reduce the amount of time, money, goods etc. that you use, to save money.
4 (n)
a) The system by which a country's goods and services are produced and used, or a
country considered in this way.
b) The careful use of money, goods, time etc. so that nothing is wasted.
c) A way of spending less money.
5 (adj)
Using money, time, goods etc. carefully and without wasting any.
6 (n)
The study of the way in which wealth is produced and used.
13
V Fill in the gaps with economic or economical.
1 The word is related to the economy or finances, money matters, or
wealth.
2 refers to avoiding waste.
3 Try to be with the fabric when you cut out the shapes – we haven’t got any
more.
4 There was a rise in unemployment due to the downturn.
5 An car uses a minimum amount of petrol to drive a maximum number of
kilometres.
6 The climate is slowly improving.
14
21 The political agenda is full of issues.
22 Many countries tried to on fuel in the 1970s.
23 Some analysis is required here.
24 It is usually more to buy large quantities of a product than small
quantities.
25 She majored in at Harvard.
26 Fourteen top have signed a statement criticising proposed tax cuts.
27 New software was introduced to on management costs.
VII Sort out the words in the box by copying them in the right column.
economics economy
15
WHY ECONOMICS?
II Before reading Why Economics match the words/phrases on the left to the
explanations on the right.
III Skim the text adapted from Samuelson’s book Economics* and decide which
paragraphs should be given the following headings. Each heading reflects the main
idea presented in the paragraph.
B Scarcity of resources
16
IV Read the text, check your predictions and write the headings on the blank lines.
Then, choose the correct bold-typed words.
1 All your life you will run up against the brutal truths of economics. As a voter, you will make
decisions on issues - on the government budget, regulating industries, taxes and foreign
trade - that cannot be understood until you have mastered the basics of economics.
2 Choosing your life’s occupation is the most important economical / economic decision
you will make. Your future depends not only on your own abilities but also upon how
economic forces beyond your control affect your wages. Also, economics / economy may
help you invest the nest egg you have saved from your earnings. Of course, studying
economics / economy cannot make you a genius. But without this knowledge the dice of
life are simply loaded against you.
What is economics?
3 Economics covers all kinds of topics. But the core is devoted to understanding how society
allocates its scarce / abundant resources.
4 Economists study the way goods are produced and consumed because people want to
consume far more than an economy / economics can produce. If infinite quantities of every
good could be produced, people would not worry about the efficient use of scarce resources.
In such an Eden of affluence, there would be no economic / economical goods, goods that
are scarce or limited in supply. There would be no need to economical / economize on
consumption and indeed economics / economy would no longer be a vital science. All
goods would be free, like sand in Saudi desert or water at the beach.
5 So, economics / economy is the science of choice. It studies how people choose to use
scarce or limited productive resources (labour, equipment, technical knowledge), to produce
various commodities (such as wheat, overcoats, concerts, and missiles) and to distribute
these goods for consumption.
How? Why?
6 How could anyone hope to know in a precise and scientific way why economy /
economics of Japan has grown rapidly while the economy / economics of the Soviet Union
has stagnated? Can economists really explain why some people are fabulously rich while
others hardly afford one square meal a day? Of course, economists have no monopoly on
the truth about the important issues of the day. Indeed, many phenomena are poorly
understood and highly controversial.
7 But economists and other scientists have developed techniques – sometimes called the
scientific approach, that give them a head start in understanding the complex forces that
affect economic / economics growth, process and wages, income distribution, and foreign
trade:
Observation: This is about observing economic affairs, especially historical records:
Why did inflation in Germany in the 1920s, reach 1,000,000,000,000 percent in two years,
destroy the middle class, and, as many think, bring Hitler to power?
Economic analysis: History and facts are important, but facts cannot tell their own
story. By developing and testing economic / economical theories we can simplify and
organize the jumble of data and facts into a coherent view of reality. That is why economists
use a set of assumptions and then deduce logically certain predictions about the economic
behaviour of people, firms or the overall economy. (There is a wonderful joke about three
men stranded on the deserted island: an engineer, a chemist and an economist. One day a
can of beans washed up on the shore. The hungry men debated how to open it. The
17
engineer suggested hitting it on the rock, but there was no rock. The chemist suggested to
heat it to great temperature, so it would burst open, but they could not start a fire. Suddenly
the economist announced: “Let’s assume we have a can opener.”
Statistical analysis: Governments and businesses issue volumes of data that can help
us analyze economic behaviour quantitatively. While actual application of such information
requires advanced tools in probability and econometrics, understanding the results requires
only common sense. Let’s say that you are wondering why, on average, women earn only
60% as much as men. You collect data on wages of men and women, along with their
personal characteristics (education, years of experience, occupation and so forth). You employ
statistical techniques and see that men have on average spent more time in the workforce
and have generally entered higher-paying occupations. But after all the statistical dust has
settled, a significant part of the wage differential is unexplained. Some believe this remaining
differential is due to discrimination.
Experiments: The economic / economical world is enormously complicated, with
millions of households and billions of prices. Economists are relying more and more on
experiments to explain economic behaviour. For example, in one of group of controlled
experiments over the last two decades, economist measured people’s reactions to different
kinds of government programs to raise the incomes of the poor. Other experiments today
examine how markets behave with a small number of producers.
Subjectivity
8 There are many obstacles to mastering economy / economics but perhaps the greatest
one arises from the subjectivity we bring to studying the world around us. We sometimes
believe that the task of our studies is to uncover an objective reality – to learn the facts and
laws of nature or economics.
9 Unfortunately, learning is not so simple. When we are young, our minds are open to new
ideas. As we grow up, we begin to organize our ideas and to learn about the world from our
family, friends, and teachers. But no sooner do we begin to understand our world than we
become captives of our own knowledge. Scientists are just like other people; they are
prisoners of their theoretical preconceptions. In his Scientific Autobiography, Planck reports
what he observed in the development of physics:
“The experience gave me also an opportunity to learn a fact – a remarkable one in my
opinion: A new scientific truth does not triumph by convincing its opponents and making them
see the light, but rather because its opponents eventually die, and a new generation grows
up that is familiar with it.”
* Samuelson, P.A. Economics, 14th edition, ed. McGraw-Hill, 1992
th
Samuelson – Nordhaus, Economics, 18 edition, ed. McGraw-Hill, 2005
V Organise the main ideas visually. Refer to pp. 74-76 for advice on making notes.
18
VI Go back to the text and underline the terms/expressions that primarily belong to
the language of economics and business.
VII Find the words in the text which mean the following:
ekonomija
zanimanje
ekonomski rast
vjerojatnost
nadnice (plaće)
distribucija dohotka
ekonometrija
obilje
vanjska trgovina
radna snaga
ekonomska analiza
oskudni resursi
kućanstva
znanstveni pristup
VI There are several figurative expressions in the text. Match up the half-
sentences below to explain these expressions.
1 If the dice are loaded against you, eat properly at least once a day.
3 People who have a square meal a day you are out of control, facing uncertainty
and risk.
4 When you run up against something that you use your savings to increase
your wealth.
19
3 THE THREE SECTORS OF THE ECONOMY
BUSINESS SECTORS
I Read the following text and find out about the different types of economic
activity.
Firms operate in different sectors of the economy. They form a chain of production which
provides consumers with finished goods or services.
The primary sector involves the extraction of raw materials and natural resources from
the Earth. For example, ores are mined, oil drilled from the ground, stone, sand and gravel
are quarried, foodstuffs farmed and fish trawled. Primary production is also known as extractive
production.
The secondary sector involves the transformation of raw materials into part-finished or
finished goods. All of manufacturing, processing and construction lie within the
secondary sector. It involves making plastics from oil, chocolate from cocoa beans and
smartphones from plastic, glass and metal. It also involves constructing products, e.g. building
houses, ships, bridges and roads.
The tertiary sector provides commercial services that support the production and
distribution process, e.g. insurance, banking, transport, advertising, warehousing and direct
services such as teaching and health care.
The quaternary sector of the economy is an extension of the tertiary sector. It concerns the
intellectual services: research and development, higher education, information generation,
information sharing and consultation.
20
III Fill in the missing words.
Business 1 (uncountable noun) The production, buying and selling of goods and
services for profit.
2 (countable noun) A person or organization that produces and sells goods or
services.
Company (noun) An organization that makes or sells goods and services in order to
make a profit.
Resource allocation (noun phrase) The way that the resources of a country, company etc.
are used for different purposes, and how this is decided.
21
V Match the definitions of companies with the corresponding industries.
22
MANUFACTURING AND SERVICES
Two hundred years ago, the vast majority of the population of virtually every country lived in
the countryside and worked in agriculture. Today, in what many people call "the advanced
industrialized countries", only about 2-3% of the population earn their living from agriculture.
But some people already talk about "the post-industrial countries", because of the growth of
service industries, and the decline of manufacturing, which is moving to "the developing
countries".
II Read this extract from an interview with the well-known Canadian economist,
John Kenneth Galbraith, and answer the questions.
We worry about unemployment and the loss of manufacturing industry in the advanced
industrial countries only because we don't look at the larger social developments. The US, for
example, no longer depends on heavy industry for employment to the extent that it once did.
This is related to a larger fact that has attracted very little discussion. After a country's people
are supplied with the physical objects of consumption, they go on to concern about their
design. They go on to an enormous industry persuading people they should buy these
goods; they go on to the arts, entertainment, music, amusement - these become the further,
later stages of employment. And these are things that are extremely important.
Paris, London, New York and so on do not live on manufacturing; they live on design an
entertainment. We do not want to consider that this is the solid substance of economics, but
it is.
I don't think it is possible to stop this progressive change in the patterns of human
consumption. It is inevitable.
(J.K. Galbraith in conversation with Steve Platt, New Statesman and Society)
Source: Ian MacKenzie, English for Business Studies, 2nd Ed, p
23
Where did all the jobs go?
I Read the text below to find out about employment trends globally. Take the
following steps:
From the 1750s to the middle of the nineteenth century, Britain led an industrial revolution
that changed manufacturing forever. With other Western countries, it produced consumer
goods for the rest of the world well into the 1960s. Generations of workers spent their entire
careers in the same workplace. Yet, nowadays, most of the consumer goods we buy have
been made in the East. If, by magic, our shoes could return to where they were made, most
would march all the way back to China or Vietnam – and the jobs have gone with them.
Manufacturing gravitates to countries with lower labour costs, or more efficient production
methods. Since the US economy started to recover in 2003, unemployment has remained
high. This is because two million manufacturing jobs have gone elsewhere.
China is undoubtedly the latest big success story. As well as making 90% of world’s toys, the
country is now responsible for a quarter of global steel production. By contrast, much of the
US’s industrial heartland has been a “rust-belt” for years. In Western Europe, too, industry
has been declining for decades. European shipyards have been closing one by one ever
since South Korean rivals learnt how to build more efficiently and cheaply. Nearly all Britain’s
coal mines have ceased production since it became cheaper to ship coal all the way from
Australia. Since the 1980s, tens of thousands of British workers have lost their jobs in these
sectors.
Some workers may have retrained and found jobs in hi-tech industries; however, most have
ended up working in services. In the UK, more people are now employed in making
sandwiches than in making steel. Even jobs in knowledge-based services are threatened by
globalization. Improvements in telecommunications have allowed firms to outsource work
thousands of miles away. Bangalore, with its workforce of highly-skilled computer
programmers and engineers, has transformed itself into India’s answer to Silicon Valley.
Many UK businesses have relocated their call centres there too – an Anglophone Indian
worker will work for a fraction of his British counterpart’s salary. This all proves that even
though employment in hi-tech sectors such as pharmaceuticals and aeronautics remains
strong, for most of us the idea of a job for life – or at least a safe job - has been untrue for
years.
24
III Complete the notes.
INDUSTRY → COUNTRY
1)
2)
3)
• REASONS: 1)
2)
EXAMPLES : 1)
2)
3)
• CONSEQUENCES: 1)
2)
3)
1)
2)
25
A SURVEY OF THE 20TH CENTURY: FREEDOM FROM WANT?
a) From each according to their ambitions, to each well beyond their needs: that
is the capitalist creed.
b) Wealth brings happiness to people.
c) In terms of economic well-being we are now better off than we were 100 years
ago.
IF YOU look at the past 100 years in the 40-50 countries that are now considered rich, what trend do
you see? Bradford De Long, a professor at the University of California at Berkeley, describes it in the
title of his forthcoming book on the 20th century as “Slouching towards Utopia”. Slouching, because
despite huge material and scientific progress, people are grudging about it all. Utopia, not because
perfection has been reached or is attainable, but because the state of wealth and knowledge in 1999
would have more than satisfied the Utopias envisaged by many previous crystal-gazers and
proselytisers. Consider what has happened:
Farming, forestry and fishing, which for centuries had meant hard labour, in 1913 accounted for 28%
of employment in America, 41% in France and 60% in Japan, though only 12% in Britain. Now,
mechanised farming and new technology have hugely increased food production, yet the proportion of
the workforce employed in these arduous activities has dropped below 6% in all those countries.
Services, seen today as a modern sector of the economy, in some countries already accounted for a
larger share of jobs in 1913 than did farming: 43% in America and 44% in Britain, though only 27% in
France and 22% in Japan. Now the figures range from 60% in Japan to about 75% in America. But the
nature of those services has changed. A century ago, most of them involved a direct personal service:
being a servant, in other words. Now, most are indirect and concerned with information: education,
accountancy, government, communication and so on.
So the rich today have far less direct command over people—fewer servants, fewer exclusive
services—even though they have far more command over things. Household tasks have become
increasingly mechanised, through washing machines, vacuum cleaners, dishwashers and so on, and
food production more industrialised, reducing the time devoted to cooking at home. That means far
fewer women are employed as cooks and maids, but many more are able to go out to work.
Mass labouring in the fields was replaced by mass labouring in the factory, and with it employment by
new, large corporations, amid mass urbanisation and at times mass unemployment, a new concept.
26
This accelerated a change already under way in the 19th century. But industry changed, too: production
that had involved a lot of craft skills was replaced by machine tools and routine assembly work. Early
cars were made by craftsmen, and each one was slightly different. Beginning in the 1920s in America,
though much later in Western Europe and Japan, products and processes became standardised.
•Workers started to be treated as interchangeable, albeit trained, units, organised more or less
scientifically to make processes more efficient. That was true for several decades in American
capitalism, German Nazism and Soviet communism alike. But whereas in Germany and Russia
production was celebrated and wages and consumption were suppressed, in America and the rest of
Europe consumption was king. As the century wore on, more and more people were employed for
their technical, literary and professional skills, as “white-collar” workers. Employment in non-profit
organisations—charities, private hospitals—also began to rise, providing nearly 8% of all jobs in
America in 1995, 6% in Britain and over 12% in the Netherlands.
Mass consumption gave rise to mass advertising, through the new mass-communication outlets of
radio and television, as products were sold with more emphasis on style, image and brand. Vance
Packard complained in a 1957 book that advertisers were “hidden persuaders”, manipulating minds
and denying free will. But people went on buying, and advertisers went on trying to work out why.
Throughout the century, “knowledge”—i.e., brainpower—was increasingly taking over from manpower,
horsepower and material power. Norman Angell, a British socialist, pointed this out in “The Great
Illusion” in 1910; Peter Drucker, by then a management guru, wrote a book about it in 1967; Tony Blair
and Bill Clinton caught on in the late 1990s.
Mass employment in mass production led to the creation of mass trade unions and the securing of
mass labour rights. By 1930, 6.8% of workers in America and 25.3% in Britain belonged to a trade
union. By 1950, the numbers had risen steeply to 22.3% and 39.9% respectively. By 1996-97, as
employment had shifted away from mass production and unions were felt to have become less
effective at increasing most people's bargaining power or job security, union membership had declined
sharply, to 14.1% and 30.1% respectively.
America led in virtually everything: growth, productivity and incomes, new products and new
processes, applying new ideas first or most effectively even if it did not invent them. Early in the
century, it received a big influx of migrants from Europe. By the end of the century it was virtually
alone among the rich countries in still permitting substantial immigration, although by now most of its
migrants were from Asia and Latin America.
Inequality diminished sharply, thanks to mass education, higher wages, progressive taxation and the
increasing value, particularly for the poor, of public services and job protection. War broke some social
barriers and taboos, but education made the biggest difference. Some countries—Germany, Japan—
became more equal than others, such as Britain but especially the United States. In the past 20 years
inequality has begun to increase again.
Government spending as a share of GDP in 1913 ranged from 1.8% in America, 6.3% in Sweden,
8.3% in Japan, 12.7% in Britain and 14.8% in Germany to 17% in France. Now it ranges from 34% in
America and 54% in France to 65% in Sweden, requiring levels of taxation that would have caused
riots in 1900. Health care and education were two growth areas, but the biggest slice went to transfers
and subsidies—the taxing of one person to hand the money to another, who would not always be
poorer.
Spending on leisure—which is hard to define, but includes travel, entertainment and holidays—was
also a new thing. It grew from 2-3% of GDP in America in the early 1900s to roughly 10% now. Where
at the turn of the century a Briton worked for 2,700 hours a year, by the 1990s people in rich countries
generally put in only around 1,400-1,800 a year. Paid holidays became the norm, ranging from two to
three weeks a year in America and Japan to six weeks a year in Germany. Beginning in the 1960s and
1970s, ordinary people joined the jet-set.
27
Happily on holiday?
Of this list of change and plenty, that last point is especially worth dwelling upon. Commentators in the
early 1900s would have been surprised by all that money being spent on leisure, and especially by the
idea that time off is being enjoyed by the poor as well as the rich: no work at weekends, holidays at all,
let alone abroad. But they would have been most surprised that, once ordinary folks' basic needs were
covered, they carried on working hard. In his book “In Praise of Idleness”, Bertrand Russell wrote in
1935: “The idea that the poor should have leisure has always been shocking to the rich.” But he went
on to argue that: “Only a foolish asceticism...makes us continue to...work in excessive quantities now
that the need no longer exists.”
John Maynard Keynes would also have been surprised. In “Economic Possibilities for Our
Grandchildren”, written to brighten up the gloomy days of 1930, he forecast that 100 years from then
we would be eight times better off in economic terms (which has already happened), and that this
would mean the long struggle to produce enough to meet basic needs would at last be over. The
majority would then work for only 15 hours or so a week. A few would work harder, in pursuit of
wealth. But most would not, seeing the love of money as “one of those semi-criminal, semi- pathological
propensities”.
He was wrong, and most do not see money in that way. Why not? To want more than you have,
whether in monetary or other terms, is a basic human instinct. As they sang in “South Pacific”, if you
don't have a dream, how can you have a dream come true? But also, work has a value beyond
providing a living, and that applies to humbler occupations as well as the high-brow. The view held by
Russell and Keynes, and echoed by Hannah Arendt in “The Human Condition” in the 1950s, that
human beings are really frustrated philosophers, keen to spend time in contemplation, has proved to
be bunkum. After all, to those writers contemplation was not leisure; it was their work.
Are people happy amid all this plenty? Andrew Oswald, an economics professor at Warwick University
in Britain who has studied data available for America and Europe, finds that the most extreme
indicators of unhappiness—suicide or attempted suicide—show a clear fall in the rich countries in
proportion to the population. In 1911, he says, 2,600 men in England and Wales committed suicide; in
1990, the figure was 2,800, in a much larger population. Less extreme data are less reassuring,
however. In polls, people in both continents say they have become happier in recent decades,
especially in Europe, but everywhere the rise in happiness is a lot smaller than the increase in wealth.
The most plausible explanations are that relative wealth matters far more than the absolute sort, and
satisfaction is always relative to expectations. “Positional goods”, i.e., ways to establish your relative
status through your car, clothing or other possessions, become important in a society that is not only
affluent but has also shed the clear social rankings and rigidities that were common in Europe and
Japan. Fred Hirsch, a British economist (and once a writer on The Economist) who coined the term in
a book in 1976, argued that the rise of positional goods would limit growth, since by definition they had
to be scarce. Yet people have proved ingenious at creating ever more sources of exclusivity.
The importance of relativity is also a big reason why inequality remains a serious issue even in
countries where the poor have video recorders. Rich conservatives often decry this. But if those plump
and prosperous types care about having more than others, why should it not be legitimate for the
poorer people to care a lot about having less? Still, inequality is at its most potent when it reflects an
inequality of opportunity or access, the sense that there are firm barriers to progress regardless of
effort or merit. That was particularly true in Britain, for example, before mass public education and the
breakdown of hereditary rankings.
Another reason, however, why plenty seems to bring neither happiness nor relaxation is that luxury
has not brought security, except for a lucky few. Indeed, some think that modern capitalism has
increased insecurity, by substituting a heartless “cash nexus” (i.e., wages) for old ties of faith, family,
community or social position. This is an odd view; in western society at least, social position has
always, in the end, been founded on money. Jane Austen's novels were about little else. But perhaps
the more that you have, the more you are worried about losing it. Marxists used to talk of inevitable
“crises of capitalism”. They were right in one sense: capitalism has proved worryingly unstable.
28
II Study the text to make notes (for guidelines refer to pp. 74-76):
29
4 THE THREE TYPES OF ECONOMIC SYSTEMS
The function of an economy is to allocate scarce resources amongst unlimited wants and to
solve the basic economic problem which is often broken down into 3 questions:
What should be produced? How should it be produced? For whom should it be
produced?
How the above questions are answered will depend on the type of economic system: the free
market economy, the planned economy and the mixed economy. The way business activity
is organised will be different in each of the systems.
MARKET ECONOMIES
In market economies (also known as capitalist economies or free market economies)
resources are allocated automatically by the forces of demand and supply (market
mechanism), which stimulates competition. This should lead to lower costs, a wider choice of
goods and services and better quality for consumers. The role of government in a free market
system is limited. Some of its main functions are to pass laws, to provide certain essential
products and services such as policing, national defence and the judiciary, and to ensure a
level playing field (fair competition) for all competitors. In market economies, market
imperfections can occur. Some goods and services are not provided by private firms such as
defence. Furthermore, private firms are not interested in services which do not make a profit.
Another implication of the working of a free market economy is that firms may choose to
sacrifice public interest in exchange for lower costs.
PLANNED ECONOMIES
Government has a vital role in a planned economy (also known as command economy). It
plans, organises, and co-ordinates the whole production process. This is unlike a market
economy, where planning an organising is carried out by firms. Planners encourage the
production of standardised goods with little variety and choice for consumers. Another
difference is that resources in planned economies belong to the state, and goods and services
are distributed to consumers by the state. In planned economies, there tends to be a more
equal distribution of wealth and income, production is for need rather than profit, people tend
to be less motivated to work efficiently and the standard of living is often lower compared with
countries which use other types of economic systems.
MIXED ECONOMIES
In reality, no country has an economy which is entirely planned or free market. Most economic
systems in the world have elements of both. They are known as mixed economies. In mixed
economies some resources are allocated by the government (in the public sector) and the
rest by the market (in the private sector). In mixed economies the state usually provides
a minimum standard of living for those unable to work. The public sector is responsible for the
supply of some public goods and services and this is decided by central or local government.
Public goods are usually provided free when used and are paid for by taxes (e.g. roads). In
the private sector production decisions are made by firms in response to the demands of
consumers, and individuals are allowed to own the means of production. One of the roles of
the government is to ensure that there is fair competition in the private sector. All private
goods and services are allocated as in the market system.
nd
Adapted from: D. Hall, R. Jones, C. Raffo: Business Studies, 2 ed., 2000, Causeway Press Limited
30
II Make notes on the text with the help of this table.
Mixed economy
Market Planned
economy economy Public sector Private sector
Role of the
government
Ownership of
resources
Allocation of
resources
Competition
Advantages
Disadvantages
III Make word partnerships from the two columns below and copy them in the
third column.
1 unlimited sector
2 scarce goods
3 basic mechanism
4 market distribution
5 standardized wants
7 public/private resources
31
IV Find the words in the text which match the definitions below.
The government:
1 resources in a planned economy.
2 laws in all three types of economies.
3 only essential goods and services in a market economy.
4 fair competition in a market economy.
5 , , the production process in
a planned economy.
6 income more equally in a planned economy.
1 market economy:
2 planned economy:
3 forces of supply and demand:
4 means of production:
5 rivalry:
6 level playing field:
7 insufficient, limited:
32
LEARNING LOG (1-4)
Key words:
Key notes:
33
5 THE PUBLIC SECTOR
I Study the differences between the public and the private sector.
II Read the text and find appropriate terms for the definitions below:
Goods which are underprovided by the private sector and are sometimes
supplied by the state.
The public sector is made up of organizations which are, directly or indirectly, owned or
controlled by central or local government. They are funded by the government and in some
cases from their own trading “surplus” of profit.
Certain public goods and merit goods are provided by the public sector. Public goods are
goods where consumption by one person does not reduce the amount available to others
and, once provided, all individuals will benefit (e.g. street lighting).
It is sometimes argued that the public sector should also provide merit goods. Examples
include education, health and libraries, in other words, services that may not be available to
all individuals if not provided by the state. If the individual is left to decide whether or not to
pay for these goods, some would choose not to or may not be able to. The provision of merit
goods is said to raise society’s standard of living.
The public sector consists of public corporations, including some public utilities (e.g.
electricity), nationalized industries, local authority services (e.g. municipal services), central
government departments, government agencies etc. The public sector has an important role
to play in certain areas of business activity yet, for various reasons, some public sector
businesses have been transferred from the public to the private sector.
nd
Adapted from; D.Hall, R. Jones, C. Raffo: Business Studies 2 edition, 2000, CPL)
34
III Identify all expressions in the text collocating with “public”:
public public
public public
NOUNS VERBS
transfer
choice
decision
provision
inclusion
exclusion
argument
reduction
decrease
ownership
“The market has a keen ear for private wants and a deaf ear for public needs.”
35
THE ROLE OF GOVERNMENT
I Read the following extract from a talk by J.K. Galbraith and answer this
question:
The good society accepts the basic market system and its managers, but there are
some things the market system does not do either well or badly. In the good society
these are the responsibilities of the state.
Some areas of state action are evident. In no country does the market system provide good
low-cost housing. This is a matter of prime importance and must everywhere be a public
responsibility. Few things are more visibly at odds with the good society than badly housed
or homeless people.
Health care is also a public responsibility in all civilized lands. No one can be assigned to
illness or death because of poverty. Here Britain can proudly point to its leadership.
The state has many other essential functions. It must also be borne in mind that many of
these - parks and recreational facilities, police, libraries, the arts, others - are more needed
by the underclass than by the affluent. Those who attack the services of the state are usually
those who can afford to provide similar services for themselves.
In the good society, there must also be attention to a range of activities that are beyond the
time horizon of the market economy. This is true in the sciences, not excluding medical
research. The market system invests for relatively short-run return. To support science is
pre-eminently the responsibility of the state.
Some of the truly important industrial achievements of recent generations - the great
improvements in agricultural productivity, modern air transport, advanced electronics - have
depended heavily on such public investment. Necessary also - a matter we are beginning
reluctantly to recognize - is investment and regulation in the longer-run interest of the
environment. The good society protects and improves life in its planetary dimension.
1 What does Galbraith say about people who criticise government services?
2 Why, according to Galbraith, is the market system not sufficient to guarantee scientific
research?
3 According to what you have read here, how would you characterize Galbraith's politics?
4 Read the definition of the welfare state: “A political system based on the premise that the
government has the responsibility for the well being of its citizens, by ensuring a minimum
standard of living for everyone.” What is the term that Galbraith uses for the same concept?
36
III Find words and expressions in the text which mean the following:
1 obvious
2 inexpensive
4 bad health
8 successes
10 global or worldwide
Source: Ian MacKenzie, English for Business Studies, 2nd Ed, pp 129-30.
IV Find more word partnerships in the text that you would like to remember:
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37
TAXATION
I Do the exercises in MK, p. 112 and then explain what the following terms
mean.
II Read the text and match the headings with the paragraphs.
A Tax evaders are not punished. E Tax morale: why it is high in some
countries.
B Introduction: the problem with Greece F Tax morale: why it is low in some
countries.
C Cultural change needs to precede tax G Tax evasion in Greece and its
reform consequences.
Dodger Mania
1
Greece is a fairly small country, but for the past year it has been causing an awfully big uproar.
Burdened by a pile of government debt that could force it into default (and the European banking
system into a meltdown), Greece has had to adopt ever more stringent austerity plans in order to
secure a bailout from the European Union. Explanations of how Greece got in this mess typically focus
on profligate public spending. But its fiscal woes are also due to a simple fact: tax evasion is the
national pastime.
According to a remarkable presentation that a member of Greece’s central bank gave last fall, the gap
between what Greek taxpayers owed last year and what they paid was about a third of total tax
revenue, roughly the size of the country’s budget deficit. The “shadow economy”—business that’s
legal but off the books—is larger in Greece than in almost any other European country, accounting for
an estimated 27.5 per cent of its G.D.P. (In the United States, by contrast, that number is closer to
nine per cent.) And the culture of evasion has negative consequences beyond the current crisis. It
means that the revenue burden falls too heavily on honest taxpayers. It makes the system unduly
regressive, since the rich cheat more. And it’s wasteful: it forces the government to spend extra money
on collection (relative to G.D.P., Greece spends four times as much collecting income taxes as the
U.S. does), even as evaders are devoting plenty of time and energy to hiding their income.
Greece, it seems, has struggled with the first rule of a healthy tax system: enforce the law. People are
more likely to be honest if they feel there’s a reasonable chance that dishonesty will be detected and
punished. But Greek tax officials were notoriously easy to bribe with a fakelaki (small envelope) of
cash. There was little political pressure for tougher enforcement. On the contrary: a recent study
showed that enforcement of the tax laws loosened in the months leading up to elections, because
incumbents didn’t want to annoy voters and contributors. Even when the system did track down
evaders, it was next to impossible to get them to pay up, because the tax courts typically took seven to
ten years to resolve a case. As of last February, they had a backlog of three hundred thousand cases.
38
4
It isn’t just a matter of lax enforcement, though. Greek citizens also have what social scientists call
very low “tax morale.” In most developed countries, tax-compliance rates are much higher than a
calculation of risks would imply. We don’t pay our taxes just because we’re afraid of getting caught; we
also feel a responsibility to contribute to the common good. But that sense of responsibility comes with
conditions. We’re generally what the Swiss behavioural economist Benno Torgler calls “social
taxpayers”: we’ll chip in as long as we have faith that our fellow-citizens are doing the same, and that
our government is basically legitimate. Countries where people feel that they have some say in how
the state acts, and where there are high levels of trust, tend to have high rates of tax compliance. That
may be why Americans, despite being virulently anti-tax in their rhetoric, are notably compliant
taxpayers.
Greeks, by contrast, see fraud and corruption as ubiquitous in business, in the tax system, and even in
sports. And they’re right to: Transparency International recently put Greece in a three-way tie, with
Bulgaria and Romania, as the most corrupt country in Europe. Greece’s parliamentary democracy was
established fairly recently, and is of shaky legitimacy: it’s seen as a vehicle for special interests, and
dedicated mainly to its own preservation. The tax system had long confirmed this view, since it was
riddled with loopholes and exemptions: not only doctors but also singers and athletes were given
favourable rates, while shipping tycoons paid no income tax at all, and members of other professions
were legally allowed to underreport their income. Inevitably, if a hefty chunk of the population is
cheating on its taxes, people who don’t (or can’t, because of the way their income is reported) feel that
they’re being abused.
The result has been a vicious circle: because tax evasion is so common, people trust the system less,
which makes them less willing to pay taxes. And, because so many don’t chip in, the government has
had to raise taxes on those who do. That only increases the incentive to cheat, since there tends to be
a correlation between higher tax rates and higher rates of tax evasion.
Even while dealing with protests and open riots, the new Greek government is trying to change things.
It is rationalizing its tax-collection system. It has simplified taxes and done away with some of the
loopholes. And it has stepped up its enforcement efforts in ways large and small—tax officials have,
for instance, been sending helicopters over affluent neighbourhoods looking for swimming pools, as
evidence of underreported wealth. These efforts have made some difference: the self-employed seem
to be reporting more of their income, and the evaders have had to step up their game. (There’s now a
burgeoning market in camouflage swimming-pool covers.)
But a social inclination toward tax evasion, once established, is hard to eradicate. One fascinating
study, by the economist Martin Halla, showed that tax morale among second-generation American
immigrants reflected their country of origin. And getting tough can backfire. Research suggests that
overemphasizing enforcement can actually weaken tax morale, by making taxpaying seem less like a
freely chosen part of the social contract. The reason tax reform will be such a tall order for Greece, in
sum, is that it requires more than a policy shift; it requires a cultural shift. Pulling that off would be
quite a feat. But the future of the European Union may depend on it. ♦
Adapted from: James Surowiecki, “The Financial Page: Dodger Mania”, The New Yorker, July 11, 2011
39
III Answer these questions.
TAX E TAX M
TAX R TAX C
TAX S TAX E
TAX O TAX R
TAX L TAX R
VI Use some of the word partnerships to fill in the gaps in these sentences.
40
5 In countries where tax is low, tax is also low, i.e.,
people do not pay their taxes and they are often proud of having evaded the highest
possible amount of taxes.
6 There is a tax on gifts and inheritances in Croatia. My neighbour
didn’t have to pay anything when he inherited his grandmother’s house.
7 According to many economists, the country should carry out a tax :
VAT and income taxes should be reduced. They argue that lower tax
would encourage investment and entrepreneurship and would also reduce the number of
people who cheat on taxes.
41
WHAT IS PRIVATIZATION, ANYWAY?
42
ARGUMENTS FOR AND AGAINST PRIVATISATION
“Industries will become more efficient if “When industries become more efficient,
they are subjected to the «disciplines of they often do so by closing down a plant
the market», that is the fear of being taken and laying off workers.“
over or of bankruptcy.“
“Private firms will be able to diversify into “In pursuit of profit, private firms may
new areas of business and take up new engage in activities that are not necessarily
business opportunities, whereas in the in the public interest instead of
past they were limited in scope by the Acts concentrating on those services they were
of Parliament that established them.“ set up to provide. “
“The managers of the businesses will be “Once in the private sector, businesses will
free from the intervention of government be more interested in profit than in
ministers.“ operating services for broader economic
and social reasons, which can be
guaranteed by state control.“
“If there is competition there will be “If trade unions are weakened by
alternative suppliers so trade union power privatisation, they may not be able to
within the old state owned industries will be protect workers' interests in the event of
reduced. “ new working practices being adopted. “
“Selling the state owned industries raises “State owned enterprises can only be sold
revenue for the Government.“ once. Financing government spending in
this way is like ‘selling the family silver to
pay the butcher's bill.’ “ (Lord Stockton).
43
THE CORPORATION: The Pathological Pursuit Of Profit And Power
I Read the excerpt from the book by Joel Bakan and say how the author
describes the relationship between the state and corporations. How have
globalization and deregulation affected the role of the state?
The corporation was originally conceived as a public institution whose purpose was to serve
national interests and advance the public good. In seventeenth-century England, corporations
such as the Hudson’s Bay Company and the East India Company were chartered by the
crown to run state monopolies in the colonies of England’s empire. During the eighteenth
and early nineteenth centuries too, in both England and the United States, corporations
were formed primarily for public purposes, such as building canals and transporting water.
The modern for-profit corporation, programmed solely to advance the private interests of
its owners, differs profoundly from these earlier versions of the institution. Yet in one crucial
respect it remains the same. It is, as it has always been, a product of public policy, a creation
of the state.
The state is the only institution in the world that can bring a corporation to life. It alone grants
corporations their essential rights, such as legal personhood and limited liability, and it
compels them always to put profits first. It raises police forces and armies and builds
courthouses and prisons (all compulsorily paid for by citizens) to enforce corporations’ property
rights –rights themselves created by the state. And only the state, in conjunction with other
states, can enter into international trade deals and create global institutions, such as the
World Trade Organization, that, in turn, limit its ability to regulate the corporations and property
rights it has created.
Without the state, the corporation is nothing. Literally nothing. It is therefore a mistake to
believe that because corporations are now strong, the state has become weak. Economic
globalization and deregulation have diminished the state’s capacity to protect the public
interest (through, for example, labour laws, environmental laws, and consumer protection
laws) and have strengthened its power to promote corporations’ interests and facilitate their
profit-seeking missions (through, for example, corporate laws, property and contract laws,
copyright laws, and international trade laws). Overall, however, the state’s power has not
been reduced. It has been redistributed, more tightly connected to the needs and interests of
corporations and less so to the public interest. Thus, it is only partly true to say, as Daniel
Yergin and Joseph Stanislaw do in The Commanding Heights, that “the general movement
away from traditional state control of the commanding heights [of the economy] continues,
leaving it more to the realm of the market.” While that statement captures the diminishing role
of the state in protecting citizens from corporations, it ignores the expanding role of the state
in protecting corporations from citizens.
44
THE PENDULUM OF CONTROL
Every nation grapples with a fundamental economic issue: Should the government determine
economic outcomes, or should society rely instead on «the market» to fashion economic results?
Historically, the pendulum of control has swung in both directions. The eighteenth – century economist
Adam Smith argued that nations would prosper with less government (1) _ _ and more
reliance on the «invisible hand» of the (2) . As we saw it, markets were efficient
mechanisms for deciding what goods to produce, how to produce them, and what (3)
_to pay. Smith's writings (The Wealth of Nations, 1776) encouraged governments to
take a more passive role in «the business of business. »
Karl Marx saw things differently. In his view, a freewheeling marketplace would cater to the whims of
the rich and neglect the (4) of the poor. Workers would be (5) __ by industrial
barons and great landowners. To «leave it to the market», as Smith had proposed, would encourage
exploitation. In the mid–nineteenth century, Karl Marx proposed a radical alternative: overturn the
power of the elite and create a (6) _ state in which everyone's needs would be fulfilled.
Marx's writings (Das Kapital, 1848) encouraged communist revolutions and the development of (7)
_ planning systems. The (people's) government, not the (8) _ _, assumed
responsibility for deciding what goods were produced, (9) what prices they were sold,
and even who got them.
The choices have not always been so dramatic. In the history of the United States there haven't been
any «all-or-nothing» transformations like those in Russia, China, Cuba, Burma, or Eastern Europe.
The alternatives of government control or market reliance have been a question of degree, not
revolution. The New Deal was about as big a change as America has experienced. In the depths of
the Great Depression of the 1930s, President Franklin Roosevelt greatly expanded the (10)
_ role in providing income security, regulating working conditions, and limiting the power
of large corporations. The English economist John Maynard Keynes (The General Theory of
Employment, Interest and Money, 1936) also encouraged governments both here and abroad to play
a more active role in (11) _ _ unemployment.
The pendulum of control hasn't always swung in the direction of more government. In the 1990s, the
central (12) _ systems of (13) _ and (14) Europe were largely
dismantled. As communism (15) , people in Russia and Eastern Europe turned to
the marketplace for direction. State (16) _were sold to private (17) . The
(18) lost their control over prices. (19) _ _ and (20) _ were
no longer guaranteed by the state.
The pendulum swung in the same direction in Western Europe, Latin America, and Asia. In the mid-
1980s, Italy, France, and Great Britain (21) _ formerly government-run enterprises in
railroads, steel, telephones, and electricity. Mexico moved in a similar direction, as did India, Vietnam,
and a host of other countries. In every case, the motivation for change was the belief that (22)
directed economies would outperform government-directed ones.
The Republican sweep of the 1994 U.S. congressional elections also represented a movement away
from government regulation. Public-opinion polls such as the one accompanying Headline showed
that Americans were dissatisfied with the pace of economic advancement and increasingly sceptical of
the government's ability to fix things. When the Republican party offered to reduce the role of
government and rely more on the marketplace to (23) jobs, raise (24) _ and
promote prosperity, (25) responded positively.
nd
Source: B. R. Schiller: Essentials of Economics, 2 edition, McGraw-Hill, 1996
II The historical overview ends with the mid 1990s. How would you end the text
today? Think of the direction of the pendulum.
45
6 THE PRIVATE SECTOR:
TYPES OF BUSINESS ORGANIZATIONS
What should one think of before starting a business? Think of a business you
are familiar with and discuss the following:
III Make word partnerships from the two columns below and copy them in the
third column to get collocations typically used when talking about businesses.
1 set up a profit
3 raise a loss
4 go shares
5 make a business
6 make capital
8 issue bankrupt
46
IV Fill in the gaps with the words from the boxes.
The private sector includes all those businesses which are (1) by
individuals or groups of individuals. Most business (2) is
undertaken in the private sector. Businesses will vary according to the legal form they take
and their (3) . They are broadly divided into unincorporated businesses,
with no legal difference between the owners and the business, and (4)
businesses, with a separate (5) identity
from its owners. In other words, an incorporated business can be (6) ,
taken over and liquidated (i.e. sold).
47
V Describe the business organizations in the UK as presented in the chart.
Before studying the chart, try to guess the meaning of the words below.
overdraft share incentive dividend Board of Directors public
SOLE One One person Past savings; Sole owner Direct control of Unlimited liability for
PROPRIE- person bank loans (sole trader) business; quick debts; no opportunity
TORSHIP and decisions; few to specialise; skills
overdrafts. legal limited to those of
requirements to owner; business
set up; claim on ends on death.
profits provides
incentive.
PARTNER- Partners By partners Capital of Partners More finance Unlimited* liability for
SHIP partners; than the sole debts; relatively
bank loans owner; each limited finance;
partner can partnership ends on
specialize; death of any partner.
service of
specialists
available in
return for share
of profits; easy
communication.
*In a LIMITED PARTNERSHIP some partners can have limited liability. They provide capital and take
no part in the management of the business.
48
VI Describe each type of business organization from Ex. V. Use the
sentences below.
VIII Note the difference in the meaning of the word public in public-limited
company compared to its meaning in the public sector? Answer the following:
1. In which of the two expressions does public primarily mean “owned by the state”?
2. In which of the two expressions does public mean “of, or related to all the people”
(“available to everyone”)? Explain your answer.
49
IX Fill in the gaps with the words from the box.
But a partnership is not a legal entity separate from its owners; like sole traders, partners
have unlimited liability: in the case of 5) , a partner with a personal fortune
can lose it all. Consequently, the majority of businesses are limited companies 6) (US=
), in which investors are only liable for the amount of capital they
have invested. If a limited company goes bankrupt, its assets are sold (liquidated) to pay the
debts; if the assets do not cover the debts, they remain unpaid (i.e. 7) do
not get their money back.)
In Britain, most smaller enterprises are private limited companies which cannot offer
8) to the public; their owners can only raise capital from friends or from
banks and other venture capital institutions. A successful, growing British business can apply
to the Stock Exchange to become a public limited company; if accepted, it can publish 9)
and offer its shares for sale on the open stock market. In America, there
is no legal distinction between private and public limited corporations, but the equivalent of a
public limited company is one 10) by the Securities and Exchange
Commission.
50
Business Organizations in Croatia
There are different types of companies in the Croatian legal system. Most businesses are run
as crafts (e.g. shoemakers), independent professions (e.g. lawyers), limited liability
companies and joint stock companies / companies limited by shares.
The owners of crafts and independent professions generally have unlimited liability for debts,
and these businesses are not legal entities on their own. The most common types of
companies in which owners have limited liability for debts in Croatia are limited liability
companies (društvo s ograničenom odgovornosti, d.o.o.) and joint stock companies /
companies limited by shares (dionička društva, d.d.). In limited liability companies (d.o.o.)
one or more persons or legal entities invest in the capital, and they are called shareholders.
If they want, they can sell their shares, but not to the general public. The company must have
a management board (uprava) and an assembly (skupština). They optionally have a
supervisory board (nadzorni odbor) that controls the work of the management board. The
company is obliged to submit its financial reports regularly to the Croatian Financial Agency
(Fina).
Joint stock companies / companies limited by shares (d.d.) are companies which have more
complex structure, higher minimum amount of share capital and often more shareholders
than limited liability companies. Joint-stock companies in Croatia have three obligatory bodies
responsible for running the company: the general assembly (glavna skupština), a
management board (uprava) and a supervisory board (nadzorni odbor). Alternatively, instead
of having two boards, companies can have their functions merged into a single board of
directors (upravni odbor). Just like limited liability companies, they have to submit their
financial reports regularly to Fina. They also have to disclose their accounts publicly, i.e.
make all important financial information available to the shareholders, potential future
investors and the public in general. Companies limited by shares can decide to go public –
start trading shares publicly on the stock exchange.
Based on: English for Business, Kiss Kulenović. Planinšek Čikara, Linčir Lumezi, Lekaj Lubina
51
II Make word partnerships from the two columns below and copy them in the
third column.
1 Stock property
2 independent Exchange
3 personal board
4 management entity
5 legal capital
6 limited board
7 share assembly
8 general liability
9 supervisory professions
III Use the word partners from the above exercise in the following sentences.
2 Owners of craft businesses have unlimited liability and they can lose their in
the case of bankruptcy.
7 The bodies joint stock companies are obliged to have by law are ,
and .
52
IV Find English words for these terms in the text.
1 obrt 8 skupština
V Study the chart on the next page and compare the types of business
organization in Croatia, the UK and the US. Write a paragraph on the
differences among the countries using connectors and linking words.
53
Legal types of business organisations – a contrastive view
UK US CRO
54
BUSINESS ORGANISATIONS IN THE PRIVATE AND IN THE PUBLIC SECTOR
(UK)
Adapted from D. Hall, R.Jones, C. Raffo: Business Studies, 2nd ed., 2000, Causeway Press Limited
55
ENTREPRENEURSHIP
I Answer the following questions, read the text and check your answers.
New business ventures originate when entrepreneurs set up companies either to sell innovative
products or services or to compete against established businesses. Before starting a new business,
entrepreneurs often conduct market research to determine the validity of their idea and the feasibility
of their business model. All start-ups face a high degree of risk and it is estimated that only twenty per
cent of new businesses are actually successful in the long term. Future entrepreneurs always have to
provide a business plan in which they describe their concept and their business approach. They may
receive assistance from outside organisations such as incubators and venture capital firms or from
individual business angels, usually in exchange for a stake in the company. Start-ups can be funded
either directly by the founders or by using capital provided by investors or banks. In some countries
governments may provide low-interest loans or interest-free grants to entrepreneurs.
Source: Trappe, T., Tullis G. (2011). Intelligent Business, Advanced. Pearson Longman
56
III Read the text again and fill in the gaps to make word partnerships.
IV Fill in the gaps with the words in the box. Some sentences can have more
solutions.
1 The government introduced new regulations which unfortunately made a lot of start-ups
business.
2 New entrepreneurs a business either to sell their innovative products or to
compete against established businesses.
3 Our retail company business with an Indian manufacturer.
4 After graduating from the Business School, she business with private jet
operators.
5 Start-ups can be directly by the founders or by using capital provided by
private investors or banks.
6 When you decide to end your business operations, it can take time to
your business properly. You need a careful plan that will protect your
personal assets and your reputation.
7 A business incubator provides a new entrepreneur with complete business support to
overcome initial difficulties and a business successfully in the future.
V Sort out the verbs from exercise IV and decide which can form partnerships with
“a business” and which with “business”
a business business
57
V Fill in the words which are missing in the questions. Then read carefully and
find out if you possess personality traits to be an entrepreneur.
1 No business is risk free, so you need to judge the level of risk and be prepared to live with
consequences.
Is change a ?
2 Can you minimise its downsides with careful thought and planning?
Are you ?
3 Being self-employed is not an easy option, especially if you are working on your own.
Results are often only produced by working long hours.
Are you ?
4 You will need to be an excellent time manager. You will need to juggle
tasks, meet deadlines and prioritise conflicting demands.
Can you ?
5 It is essential to be able to market yourself and your business in social situations. A lot of
business is made by networking.
Are you ?
Do you ahead?
7 You need to do this to minimise uncertainties and maximise your chances of success.
Good planning ensures work keeps coming in.
Are you a ?
8 Can you gauge in practical terms what is possible to achieve or produce within a certain
period?
If you answered YES to all the questions then you have the right personality traits to be an
entrepreneur.
Adapted from: http://www.xlntelecom.co.uk/business-resources/starting-your-own-business/
58
CRAZY DIAMONDS
Are you able to anticipate some of the themes in the article Crazy Diamonds on
the next page?
II Mark the sentences TRUE or FALSE, then read the article and check your
TRUE or FALSE answers again.
59
CRAZY DIAMONDS
True entrepreneurs find worth in the worthless a new definition of entrepreneurship. In essence,
and possibility in the impossible entrepreneurs are contrarian value creators. They see
economic value where others see heaps of nothing.
1 ENTREPRENEURSHIP is the modern-day And they see business opportunities where others see
philosopher’s stone: a mysterious something that only dead ends.
supposedly holds the secret to boosting growth and
7 There are plenty of striking examples of this: the
creating jobs. The G20 countries hold an annual
founder of Celtel, saw the possibility of bringing
youth-entrepreneurship summit. More than 130
mobile phones to sub-Saharan Africa when telecoms
countries celebrate Global Entrepreneurship Week.
giants saw only penniless peasants and logistical
Business schools offer hugely popular courses on
nightmares. On a trip to Tobago Sean Dimin and his
how to become an entrepreneur. Business gurus
father Michael observed that fishermen were leaving
produce (often contradictory) guides to
tonnes of fish to rot, so they created a company, Sea
entrepreneurship: David Gumpert wrote both “How to
to Table , to get the surplus fish to New York
Really Create a Successful Business Plan” and “Burn
restaurants.
Your Business Plan!”.
8 Mr Isenberg emphasises that successful contrarians
2 But what exactly is entrepreneurship (apart from a
also need the self-confidence to defy conventional
longer way of saying “enterprise”)? And how should
wisdom and the determination to overcome obstacles
governments encourage it? The policymakers are as
(it took the Dimins two years to get the fishermen to
confused as the gurus. They assume that it must
change their habits). Indeed, some of the best
mean new technology; so they try to create new
entrepreneurs are distinguished more by their ability
Silicon Valleys. Or that it is about small businesses;
to achieve the impossible than by the originality of
so they focus on fostering start-ups. Both
their thinking. TCS is essentially a Pakistani version of
assumptions are misleading.
FedEx. But to get it going, Khalid Awan had to
3 Silicon Valley has certainly been the capital of overcome “insuperable” problems such as striking
technology-based entrepreneurship in recent deals with the gangs that control the haulage industry
decades. But you do not need to be a geek to be an and sweet-talking the politicians who can shut a new
entrepreneur. George Mitchell, the Texas oilman who company at the drop of a hat.
pioneered fracking, did as much to change the world
In it for the money
as anybody in the Valley. Nor do you need to be a
conventional innovator. Miguel Davila and his
9 Mr Isenberg has two important bits of advice for
colleagues built a huge business by importing the
policymakers who genuinely want to foster
American multiplex cinema into Mexico. Their only
entrepreneurship. First, they should remove barriers
innovation, says Mr Davila, “was putting lime juice
to entry, and growth, for all sorts of business, rather
and chilli sauce on the popcorn instead of butter.”
than seeking to build particular types of clusters.
Second, they should recognise the importance of the
4 Equally, there is a world of difference between the
profit motive. There has been much fancy talk of social
typical small-business owner (who dreams of opening
entrepreneurship”, harnessing enterprise to do good
another shop) and the true entrepreneur (who dreams
deeds, but in truth the main motivator for
of changing en entire industry). Jim McCann, the
entrepreneurs is the chance of making big money.
creator of 1-800-flowers.com, is an entrepreneur
This is what drives people to take huge risks and
rather than just a florist because, when he opened his
endure years of hardship. And this is what
first shop in 1976, he looked at the business “with
encourages investors to take a punt on business ideas
McDonald’s eyes”, as he put it, and laboured for years
that, at first sight, look half-crazy
to build the world’s biggest flower-delivery business.
10 Politicians and bureaucrats do not just confuse
5 These misconceptions matter because they
entrepreneurship with things they like-technology,
produce lousy policies. The world is littered with high-
small business-they also fail to recognise that it
tech enclaves that fail to flourish. Malaysia’s biotech
entails things that set their teeth on edge.
valley has been nicknamed “Valley of the BioGhosts”.
Entrepreneurs thrive on inequality: the fabulous wealth
The world is also full of small-business departments
they generate in America makes the country more
that fail to produce many jobs. Kauffman Foundation,
unequal. They also thrive on disruption, which creates
which researches such matters, has shown that the
losers as well as winners. Joseph Schumpeter once
bulk of new jobs come from a tiny sliver of high-
argued that economic progress takes place in
growth companies.
“cracks” and “leaps” rather than “infinitesimal small
6 Daniel Isenberg has spent 30 years immersed in steps” because it is driven by rule- breaking
the world of entrepreneurship as a (sometimes failed) entrepreneurs. It might be nice to think that we could
entrepreneur and venture capitalist as well as an have growth and job-creation without a good deal of
academic (he previously taught at Harvard Business Schumpeterian cracking. But, alas, some thoughts
School and is now at nearby Babson College). He really are worthless, impossible and stupid.
th
Source: The Economist, July 20 2013
has also travelled the world accumulating examples -
he is just as interested in Island’s generic-drug
industry as in Silicon Valley’s giants. In a new book
“Worthless, Impossible and Stupid”, he presents
60
IV Find the expressions in the text which match the following expressions.
Paragraph 1
The capacity and willingness to develop, organize and
manage a business venture along with any of its risks in
order to make a profit.
Paragraph 2
A small business that has just been started.
V Can you summarize the main ideas about entrepreneurs as suggested in the
article? Use the prompts to complete them.
Entrepreneurial innovations in the world of technology and in the new ways of doing business
61
VI Use the words in italics at the end of each of the following sentences to form
a word that fits in the blank space.
Once you have a good business idea, you have to raise money to fund your future start-up.
“Crowdfunding” has recently become very popular financing technique where a large group
of people invest money in a business idea, usually via the Internet.
Business ideas:
Food delivery service
Youth hostel
E-commerce site
House cleaning service
Pet sitting
62
STUDENT ENTREPRENEURS
I Read and fill in the gaps in the sentences with the words from the box.
Ana Burica (23) and Josipa Majić (23), the (1) of a medical (2)
IDerma, are not only business students from the
Faculty of Economics and Business in Zagreb, but also (3) entrepreneurs. In 2012 they
(4) special software that solves the problems in
communication between doctors and patients. A white- label medical application enables
dermatologists to collect information about their patients, profile disease and monitor their
therapy in a personalised way. At the same time, the patients can, by using a mobile
application, observe their health condition and get directly involved in the treatment. The
team can create a personalized white label medical application in only 48 hours for a (5)
price of $99.They already have a respectable number of
clients, mostly clinics and medical institutions, from around the world.
The (6) young women, who were selected by the European Commission to
represent Croatia in the EU, would like to encourage students to build their own projects and
(7) a business. The founders, who initially financed IDerma project by
themselves, claim a start-up is worth the risk because even if a new business (8) ,
young (9) will gain some valuable experience and benefit from new
business contacts. The ambitious graduates have just (10) another hi-tech
medical (11) _, Teddy, the Guardian, a teddy bear with integrated sensors which
can measure a child’s body temperature, blood pressure and heart rate, sending the
information immediately to the parents’ mobile application.
Adapted from: Kiss Kulenović, B., Lekaj Lubina, B., Lumezi Linčir, M., Planinšek-Čikara, I. (2014). English for Business
------------------------------------------------------------------------------------------------------------------------------------------------------------------
2 What is the lesson a new entrepreneur can learn from these stories?
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3 Do you know any other successful entrepreneurial stories from Croatia?
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63
7 MANAGEMENT: COMPANY STRUCTURE
I think we have a fairly typical organization for a manufacturing firm. We’re divided into
Finance, Production, Marketing and Human Resources departments.
The Human Resources department is the simplest. It consists of two sections. One is
responsible for recruitment and personnel matters; the other is in charge of training.
The Marketing department is made up of three sections: Sales, Sales Promotion and
Advertising, whose heads are all accountable to the marketing manager.
The Production department consists of five sections. The first of these is Production Control,
which is in charge of both Scheduling and Materials Control. Then there’s Purchasing,
Manufacturing, Quality Control, and Engineering Support. Manufacturing contains three
sections: Tooling, Assembly, and Fabrication.
Finance is composed of two sections: Financial Management, which is responsible for capital
requirements, fund control, and credit, and Accounting.
V Find the other four verbs in the text that mean the same as “to consist of”?
1 2 3 4
64
8 EMPLOYEES AND LABOUR RELATIONS
III When an employee begins a job they will sign a written contract of
employment with the company, stating the conditions of work that have been
agreed. Look at the list of conditions and put them under the correct heading.
4 weeks’ paid holiday per year paid sick leave 48 hours per week
trade union membership permanent/temporary job full time /part time job
NUMBER OF HOURS
TYPE OF EMPLOYMENT
PAY
BENEFITS
DISCIPLINARY PROCEDURES
NOTICE
GRIEVANCE PROCEDURES
EMPLOYEE RIGHTS
65
IV Read the following:
Labour relations or industrial relations are relations between the management of a company
and its workers. The two sides usually discuss three main issues: wages, working hours and
working conditions. Workers’ interests can be represented by trade unions (labour unions). If
dissatisfied with the course of the negotiations with the management, unions can call a strike
or organize other types of industrial action.
66
VII Read the text and answer the questions
A recent EU directive requires every employer with more than 150 staff to establish a works
council. Businesses will have statutory requirements for ongoing consultation on any
proposed changes in working conditions, and to provide information about recent and probable
developments and activities and about the establishment’s economic situation.
1. What will companies with more than 150 employees have to do?
2. What will businesses be obliged to consult their workers about?
3. What two types of information will businesses be obliged to give their workers?
a) What positions may trade unions take regarding the issues listed in the exercise?
67
9 RECRUITMENT
III Match the words and put the matched expressions in logical order:
68
V Match each form of payment in the box with the right person (1-10):
2. student
3. white-collar worker
5. retired employee
6. lawyer
7. author
8. sales representative
9. senior manager
(Adapted from: Steve Flinders: Test Your Professional English, Business: Intermediate, Pearson Education
Limited, 2002)
The most important step to take when performing the process is a clear
understanding of the job for which businesses are hiring. Before meeting with the job
, hiring managers must decide upon the responsibilities of the position.
They must be clear about the educational and professional
they seek in the ideal candidate.
When the responsibilities, requirements and the salary range of a job are determined in
the job , hiring managers may post ads on online job search sites or in
traditional publications. They may also utilize the services of a agency
that maintains a pool of qualified, pre-screened candidates.
Then begin to pour in and hiring managers must screen each one.
Once the most appropriate resumes are identified, candidates are
and invited for an . When an ideal candidate has been
found, the applicant signs a .
(Adapted from: Ian Mackenzie: English for Business Studies, CUP, 2002)
69
VIII Choose the words from the brackets to fill the gap:
1 (join/recruit)
We need to four new people for our office in Manchester.
2…(agency/head hunter)
3…(positions/applicants)
4 (application/situation)
We are going to look at all the letters of over the weekend.
5 (reference/short list)
On Monday, we will draw up a of ten or eleven people.
6 (interview/appointment)
Then we will invite them all to come for an .
7 (apply/appoint)
We hope to somebody by the end of the month.
8…(unemployable/unemployed)
9 (employee/employment)
The company has provided opportunities of for young people.
10 (employer/employee)
Lana won the of the month prize twice last year.
70
10 MARKETING
I Look quickly through the text and decide which paragraphs are about these
subjects:
- company-to-company marketing
- identifying market opportunities
- the marketing mix
- the selling and marketing concepts
- the importance of market research
THE CENTRALITY OF MARKETING
1 Most management and marketing writers now distinguish between selling and marketing.
The ‘selling concept’ assumes that resisting consumers have to be persuaded by vigorous hard-
selling techniques to buy non-essential goods or services. Products are sold rather than bought.
The ‘marketing concept’, on the contrary, assumes that the producer’s task is to find wants and fill
them. In other words, you don’t sell what you make, you make what will be bought. As well as
satisfying existing needs, marketers can also anticipate and create new ones. The markets for the
Walkman, video recorders video game consoles, CD players, personal computers, internet, mobile
phones, mountain bikes, snowboards, and genetic engineering, to choose some recent examples
were largely created rather than identified.
2 Marketers are consequently always looking for market opportunities – profitable possibilities
of filling unsatisfied needs or creating new ones in areas in which the company is likely to enjoy a
differential advantage due to its competencies (the things it does particularly well). Market
opportunities are generally isolated by market segmentation. Once a target market has been
identified, a company has to decide what goods or service to offer. This means that much of the
work of marketing has been done before the final product or service comes into existence. It also
means that the marketing concept has to be understood throughout the company, e.g. in the
production department of a manufacturing company as much as in the marketing department
itself. The company must also take account of the existence of competitors, who always have to
be identified, monitored and defeated in the search for loyal consumers.
3 Rather than risk launching a product or service solely on the basis of intuition or guesswork,
most companies undertake market research (GB) or marketing research (US). They collect and
analyse information about the size of a potential market, about consumers’ reactions to particular
product or service features, and so on. Sales representatives, who also talk to customers, are an
important source of information.
4 Once the basic offer e.g. a product concept has been established, the company has to think
about the marketing mix, i.e. all the various elements of a marketing programme, their integration,
and the amount of effort that a company can expend on them in order to influence the target
market. The best known classification of these elements is the ‘Four Ps’: product, place, promotion
and price. Aspects to be considered in marketing products include quality features (standard
and optional), style, brand name, size, packaging, services and guarantee. Place in a marketing
mix includes such factors as distribution channels, locations of points of sale, transport, inventory
size, etc. Promotion groups together advertising, publicity, sales promotion, and personal selling,
while price includes the basic list price, discounts, the length of the payment period, possible
credit terms, and so on. It is the job of a product manager or a brand manager to look for ways to
increase sales by changing the marketing mix.
5 It must be remembered that quite apart from consumer markets (in which people buy for
direct consumption) there exists an enormous producer or industrial or business market,
consisting of all the individuals and organizations that acquire goods and services that are used
in the production of other goods, or in the supply of services to others. Few consumers realize
that the producer market is actually larger than the consumer market, since it contains all the raw
materials, manufactured parts and components that go into consumer foods, plus capital
equipment such as buildings and machines, supplies such as energy and pens and paper, and
services ranging from cleaning to management consulting, all of which have to be marketed.
There is consequently more industrial than consumer marketing, even though ordinary
consumers are seldom exposed to it.
71
II Match up the words or expressions on the left with the definitions on the
right.
1 to launch a A places where goods are sold to the public – shops, stores, kiosks,
product market stalls, etc.
2 market B an idea for a new product, which is tested with the target customers
research before the actual product is developed
3 points of sale C collecting, analysing and reporting data relevant to a specific
marketing situation (such as a proposed new product)
4 product D someone who contacts existing and potential customers, and tries
concept to persuade them to buy goods or services
5 sales E to introduce a new product onto the market
representative
nd
Source: Ian Mackenzie: English for Business Studies. 2 edition, CUP, 2002
III Read the texts on marketing in English for Business Studies (MacKenzie
2010), p. 64-67 and make notes on the key ideas.
1 The basic idea behind the ‘marketing concept’ – that you make what you can sell, rather than
sell what you make – does not mean that your product will sell all by itself. Even a good,
attractively priced product that clearly satisfies a need has to be made known to its (1)
customers. During the introduction and growth stages of the standard product
life cycle, the producer (or importer, and so on) has to develop product or brand (2)
, i.e. inform potential customers (and distributors, dealers and retailers) about
the product’s existence, its features, its advantages, and so on.
2 According to the well-known ‘Four Ps’ formulation of the marketing mix (product, place,
promotion and price), this is clearly a matter of promotion. Since budgets are always limited,
marketers usually have to decide which tools – advertising, public relations, sales promotion, or
personal selling – to use, and in what proportion.
customers, aimed at assisting sales. Many companies attempt to place stories or information in
news media to attract attention to a product or service. Publicity can have a huge impact on
public awareness that could not be achieved by advertising, or at least not without an enormous
cost. A lot of research has shown that people are more likely to read and believe publicity than
advertising.
4 Sales promotions such as free samples, coupons, price reductions, competitions, and so on,
72
are temporary (4) designed to stimulate either earlier or stronger sales of a
product. Free samples, for example, (combined with extensive advertising), may generate the
initial (5) of a new product. But the majority of products available at any
given time are in the (6) stage of the life cycle. This may last many years, until the
product begins to be replaced by new ones and enters the decline stage. During this time,
marketers can try out a number of promotional strategies and tactics. Reduced-price packs in
supermarkets, for example, can be used to attract price-conscious brand-switchers, and also to
counter a promotion by a competitor. Stores also reduce prices of specific items as loss leaders
which bring customers into the shop where they will also buy other goods.
6 Personal selling is the most expensive promotional tool, and is generally only used sparingly,
e.g. as a complement to (9) . As well as prospecting for customers, spreading
information about a company’s products and services, selling these products and services, and
assisting customers with possible technical problems, sales people have another important
function. Since they are often the only person from a company that customers see, they are an
extremely important (10) of information. It has been calculated that the majority
of new product ideas come from customers via sales representatives.
Source: MacKenzie, English for Business Studies, 2002
III Read the text on ‘Advertising and viral marketing’ and find out about the
recent trends in marketing.
IV There is a logical connection among three of the four words in each of the
following groups. Which is the odd one out, and why?
73
SKILLS REFERENCE
1 NOTE-TAKING AND NOTE-MAKING
INTRODUCTION
I Read this job as advertised in the Economist and identify the skills required for this
position.
The European Central Bank (ECB) established in Frankfurt am Main on 1 June 1998, is seeking to fill the vacancy
below in the Monetary Policy Stance Division in the Directorate Monetary Policy in the Directorate General
Economics of the ECB.
The ECB has its own terms and conditions of employment, including a competitive salary structure, retirement
plan, health insurance and relocation benefits.
ECONOMIST
(Ref.:ECB/181/04/ECO)
Advanced university degree in economics, together with a sound academic record in applied
macroeconomics, preferably related to monetary and financial economics and central bank operations. A Ph.D.
and a research and publication record would be considered additional assets.
Comprehensive experience in preparing policy-related briefing and analytical material, in particular on
issues associated with monetary policy implementation, the money markets, the operational framework of the
Eurosystem and related central banking issues.
Excellent analytical skills
Sound knowledge of statistical and econometric techniques for analytical purposes
Candidates should have good writing skills in English and the ability to draft well-structured notes within
strict deadlines. They should also be able to identify and address policy issues and present analytical findings in
non-technical terms.
A very good knowledge of English and a working knowledge of at least one other official community
language are required.
Starting date: As soon as possible.
Term of contract: Initially three-year fixed-term contract, which may be converted later into a permanent
contract.
Applications:
Applications should be submitted in English and include a covering letter, curriculum vitae and a recent photograph
together with references confirming the required experience and skills. They should be addressed, quoting the
reference number, to the European Central Bank, Recruitment and Staff Development Division, Postfach
16.03.19., 60066 Frankfurt am main, Germany and should reach the ECB no later than 8 October 2004. The
deadline will be strictly adhered to.
Candidates must be nationals of the member State of the European Union.
Applications will be treated in the strictest confidence and will not be returned.
This vacancy has also been posted on the ECB's website at www.ecb.int. To meet the deadline, a copy may be
sent by fax to +49 697 344 7979 or by e-mail to recruitment@ccb.int. However, a signed application must still be
sent by post.
74
II Discuss these questions:
1) SKIM- get the rough idea of the content (title, pull quote, introductory paragraph,
pictures?)
2) SCAN underline the main points: key words/key sentences (topic sentences),
There are many methods to take notes. The Cornell method is an example of note-taking.
What is note-making?
Preparing the notes for the user. When organizing the notes it is important to:
know the purpose of the notes
establish priorities to separate the essential, the useful and the irrelevant (key
75
How can notes be organised more clearly?
III Study these notes on the text Where did all the jobs go? on p. 24.
GB – manufacturing → China, …
Steel, coal
76
2 PARAGRAPHING
I Study the key features of paragraphs and underline the main ideas.
PARAGRAPH
A paragraph usually consists of three or more sentences based on one main topic, so
you should start a new paragraph when you change topic.
Individual sentences within a paragraph should be connected using sequencing words
(e.g. firstly, then, finally), reference words such as pronouns (e.g. which, where, that) or
linking words (e.g. therefore, however). However, if they are overused, the text will
sound unnatural and be difficult to follow.
One-sentence paragraphs should be avoided, whenever possible.
A line space should be left to show where one paragraph ends and another begins.
TOPIC SENTENCE
A paragraph often contains a topic sentence, which introduces or summarises the central
idea of the paragraph. The other sentences in the paragraph expand, explain or
exemplify this main idea.
The topic sentence is often, but not always, the first sentence in a paragraph.
(Occasionally, a paragraph may have no topic sentence).
In a well-structured paragraph, the topic sentence is linked to the other sentences in that
paragraph with connectors or linking devices.
A good topic sentence should arouse the reader’s interest and make him/her want to
read on.
Adapted from M.Stephens: New Proficiency Writing, 2nd ed., 2002, Pearson Education Limited
II Study the following paragraph. Find the topic sentence and explain how the other
sentences in this paragraph expand, explain or exemplify the main idea.
Most people face obstacles and setbacks in their careers, and many employees, blue collar
and white collar, change their jobs and even their occupations several times over their
working lives. As people’s experience of life changes over time, they adjust to some extent to
their concept of self and personal identity. There are some conventionally successful
individuals whose careers progress relatively smoothly and develop in a linear and ‘upwardly
mobile’ fashion. John Kotter’s 1982 study of general managers in the US found common
factors for success; it seems to be connected with achievements at an early age and major
responsibility being attained before the individual is in his or her mid-thirties.
Source: J. Naunton: Business Result – Skills for Business Studies Advanced, 2012, Oxford University Press
77
III Tick () the linking words and phrases you know.
IV Study how the following linking words and phrases are used (at the beginning,
in the middle or at the end of a sentence)? What is their function?
1 Although I understand Martin’s motives for doing this, I do not approve of his methods.
2 The company provides good working conditions. In addition, it offers excellent training
opportunities for young employees.
3 The government has recently introduced incentives for employers to hire new people
in order to reduce unemployment.
4 Your comment was funny. It was, nevertheless, a bit unprofessional.
5 Despite going beyond our limits, we did not manage to finish the project on time.
6 The company has severe financial difficulties, and therefore a lot of employees have
been laid off recently.
7 Since you are unable to answer our questions, perhaps we should ask some of your
colleagues.
8 Life in the urban environment is often considered to be more exciting whereas living in
the countryside provides more opportunities for healthier lifestyle.
9 We should all be more cautious about energy consumption. For instance, we could
travel to work by bicycle instead of driving a car.
10 The school was far away from my hometown. Besides, it was too expensive.
11 Many people would like to do a challenging and creative job. On the other hand, most
people would always choose the job that is well-paid.
12 Owing to unexpected circumstances, we had to cancel our trip to London.
V Copy the linking words and phrases from the box above next to the
corresponding functions:
ADDITIONAL INFORMATION
REASON
CONTRAST
PURPOSE
RESULT/CONSEQUENCE
GIVING EXAMPLE
CONCESSION
78
VI Use the following sentences to write a paragraph about world tourism.
Organise the sentences into logical order by using the necessary connectors
and linking words.
The travel industry usually recovers very quickly, but will this always be the case in the
future? Tourism has become one of the world's biggest industries. In an increasingly
dangerous world, especially with an ever present threat of terrorist attack, people may not
be willing to travel as much as they used to. Estimates suggest that 590 million people
travel abroad every year, sometimes several times, not only for holidays but also for
business, and for personal, religious, or health reasons. After September 11th, there are
fewer Americans travelling, which has been disastrous for some global tourist economies.
It accounts for 11% of global GDP and employs around 200 million people.
Adapted from T.Byrne: Intermediate English File, Business Resource Book, 2nd ed., 2004, Oxford UP
79
3 PRESENTATIONS
INTRODUCTION
I Discuss the following questions.
1 What is a presentation?
II Read the text below and finish the notes that follow:
Presentations are also referred to as "talks" in English. You can give talks on different subjects in all
kinds of circumstances or situations. The most obvious type is the sales presentation, but you can also
give presentations/ talks at conferences, lectures, board meetings, forums, etc.
Good presenters know how to attract their audience's attention. They show enthusiasm and make
what they say as if it really matters. They are well-prepared about what they want to say and know
how to best present their subject. They are in control of their body language, the aids (visual aids,
audio aids), time and voice. The art of giving presentations is an important and complex business skill
that can be mastered by gradually building up your competence and confidence through lots of
practice. Everyone needs to be an effective presenter, and everyone can become an effective
presenter. The way to do that is to observe the rules of good presentations.
The preparation of a presentation is the most important step towards success. It includes external and
internal factors. One of the external factors is audience. You need to know as much as you can who
your audience is, how many people you can expect in your audience, what their level of knowledge on
the subject is, what mood they are in, and how much time they have at their disposal. The other
external factor is the location (venue) and its opportunities or limitations. These refer to the size, the
design, and the technical equipment.
The most important internal factor in preparing your presentation is to decide on the purpose which
can be to inform, to persuade, to train, or to amuse your audience. Once you have done that you can
set your objectives and the type of content you will gather. However, not all information you have
gathered will be appropriate for your effective presentation. It is very important to select only the
relevant points and eliminate the unnecessary information. The next step is to organize the points you
want to talk about into a structure and decide on suitable visual aids to support your talk. The structure
should always have the beginning, the body and the end.
During the presentation keep eye contact with your audience. Do not read. You may use notes and
prompts to help you follow the prepared structure. This way you will use the natural spoken language
and thus make it easier for your audience to listen. Fluency is important and can be achieved by
practicing before delivery. Use simple and transparent language and don't hesitate to repeat, rephrase
or give examples as long as you give the right signals. Your audience has to know at any point where
you've come from, where you are, where you are going.
Source: Špiljak, Liszt, Krnajski Hršak, Gjukic. English for Business 1, Zagreb, Mikrorad d.o.o., 2000
80
NOTES ON THE TEXT
PARAGRAPH 1:
- show .....
- be convincing
- be ..........
PARAGRAPHS 2 AND 3:
- -
- -
to………………………… -
to …………………………
to ………………………....
PARAGRAPH 4:
81
STRUCTURE OF PRESENTATIONS
III Study the three main parts of presentations.
1 INTRODUCTION
2 BODY
3 CONCLUSION
Questions
Questions
invite questions
82
V Study the text below and find out what signposting is.
When you drive on the roads, you know where you are on those roads. Each road has a
name or number. Each town has a name. And each house has a number. You can look at
your atlas for the structure of the roads in detail. In other words, it is easy to navigate the
roads. But when you give a presentation, how can your audience know where they are? How
can they know the structure of your presentation? How can they know what is coming next?
They know because you tell them, because you put up signposts for them, at the beginning
and all along the route. This technique is called ‘signposting' (or 'signalling').
During your introduction, you should tell your audience what the structure of your
presentation will be. You might say something like this:
“I'll start by describing the current position in Europe. Then I'll move on to some of the
achievements we've made in Asia. After that I'll consider the opportunities we see for
further expansion in Africa. Lastly, I'll quickly recap before concluding with some
A member of the audience can now visualize your presentation like this:
Introduction Welcome
Explanation of structure
Body Europe
Asia
Africa
Conclusion Summing up
Recommendations
He will keep this image in his head during the presentation. He may even write it down. And
throughout your presentation, you will put up signposts telling him which point you have
reached and where you are going now. When you finish Europe and want to start Asia, you
might say:
"That's all I have to say about Europe. Let's turn now to Asia."
When you have finished Africa and want to sum up, you might say:
"Well, we've looked at the three continents Europe, Asia and Africa. I’d like to
And when you finish summing up and want to give your recommendations, you might say:
"What does all this mean for us? Well, firstly I recommend..."
83
VI Study the phrases used for performing different language functions in
different parts of presentations.
1) INTRODUCTION
The introduction is a very important - perhaps the most important part of your presentation.
This is the first impression that your audience have of you so you should concentrate on
getting your introduction right. The following table shows language phrases which are useful
in the introduction.
2 Introducing PURPOSE
your subject What I want to do today is…
I am going to talk about…
The purpose of my presentation is to introduce our new range of
products…
In my talk, I’d like to discuss/highlight/show…
My purpose today is to talk about/report/ present…
TOPIC
The topic of my presentation is …
The subject of my talk is…
I’m going to talk about…
I’m going to be reporting on…
84
2) BODY
The body is the 'real' presentation. If the introduction was well prepared and delivered, you
will now be 'in control'. You will be relaxed and confident. The body should be well structured,
divided up logically, with plenty of carefully spaced visuals. Remember these key points while
delivering the body of your presentation:
do not hurry
be enthusiastic
give time on visuals
maintain eye contact
modulate your voice
look friendly
keep to your structure
use your notes
signpost throughout
remain polite when dealing with difficult questions
FUNCTION POSSIBLE LANGUAGE
1) Signal the start of Let me begin with..
each part Now, if we turn to..
Let’s deal next with…
This brings me to…
I would like to go on to …
…to move on to…
Moving on to my next point…
Let me expand/elaborate on that a little before we go on.
2) Summarize at the end To summarise/conclude..
of each part In conclusion,…
I’d like to conclude by reporting…
I’d like to recap…
3) CONCLUSION
In the last part of the presentation, you sum up the main points and give your main
conclusion. Sometimes, it is possible to make a recommendation as well.
FUNCTION POSSIBLE LANGUAGE
1) Repeat your main To summarise, I’d like to repeat…..
points To conclude,…
85
EXERCISES
“Good morning everyone, thanks for coming to my presentation. I know you're all very busy,
so I'll be as brief as possible. OK then, I’m going to talk about the new chocolate bar we’re
putting on the market, the St Tropez premium bar. I'll tell you about the test launch we carried
out in the south west of England a few weeks ago.
My presentation is divided into three parts. First I’ll give you some background about the
launch. After that, I’ll tell you how we got on and assess the effectiveness. Finally, I’ll outline
the future plans for the product. If you have any questions, don’t hesitate to ask.
Right, let’s start with the background to the launch. As you know, St Tropez is a mint and nut
bar with a distinctive taste. It’s been thoroughly tested in focus groups and special attention
was paid to packaging. It’s wrapped in a metallic foil. The colours are rich, strong, to give
high quality visual impact. OK everyone? Yes, John, you have a question…
So, that’s the background. Right, let’s now move on to the test launch. How successful was
it? Well, in two words, very successful. If you look at the graph, you’ll see the bar’s actual
sales compared to forecast sales. Quite a difference, isn’t there? The sales were over 20%
higher than we predicted. In other words, a really good result. Well above our expectations.
The sales show that the pricing of the product was correct. And they show that as a premium
line, the St Tropez bar should be successful nationwide. To sum up, a very promising test
launch. I believe the bar has the great potential in the market.
Right, where do we go from here? Obviously, we’ll move on to stage two and have a national
advertising and marketing campaign. In a few months, you’ll be visiting our sales outlets and
taking orders, I hope for the new product. Thanks very much. Any questions?”
86
III Complete the following presentation excerpts with suitable words from the
boxes.
1-14 15-28
after that finally outline indicated talked interrupt
to start with you will notice pointed out
specifically concluding draw your attention expand recommend
bring you up to date move on options priority referring
illustrate purpose then in conclusion on balance
thank sum up
tell you describe
Good afternoon, everybody. I’d like to 1) ___________ you all for being here.
My 2) ____________today is to 3) __________about our corporate strategy for the next
decade, and, more 4)____________, to 5) ______________with our plans for Europe.
6) __________ I’d like to 7) _____________briefly our current marketing policy in the UK.
8)___________ I’ll 9) ____________some of the problems we’re having over market share.
10) ______________I’ll 11) ____________ the opportunities we see for further progress in the
21st century. 12)_____________ ,I’ll quickly 13) ______________before 14)_______________with
some recommendations.
Please feel free to 15) ___________ me if you have any questions at any time.
Now I’d like to 16) ___________to Chart B showing our sales revenue and pre-tax profits over
the last ten years. 17) ______________that although turnover has risen, our profits have not
increased at the same rate. I’ve 18) ___________about our current position in the UK and I’ve
19) ____________some of the problems we are facing. Well, what 20) __________are open to
us now? Where do we go from here?
As I have already 21) ___________, I think our first 22) __________must be to build on the
excellent results we have achieved in certain European markets. I’m 23) __________, of
course, to Italy and Spain. Let me quickly 2 4) __________on those successes before
we 25) ______________.
We should not forget the French market. Admittedly our results there have been poor so far, but
there are signs the market is changing and we can learn a lot from our mistakes. 26)
___________, though, I think we stand to gain most from concentrating on southern Europe and I
strongly 27) ______________we put all our efforts into further expansion in Italy, Spain and
possibly Greece.
28) ____________, may I thank you all for being such an attentive and responsive audience.
Thank you also for your pertinent questions. Are there any final questions?
87
IV Think of a topic you are familiar with (e.g. tourism in Croatia, traffic problems
in your home town etc.). Use this framework to practice structuring an ad-hoc
presentation to deliver to your group in class.
o I have divided my talk into three parts. First, I'll talk about , then
o My last point is
88
TALKING SLIDES
I Compare the speaker's introduction on the left and the slide which
accompanies the talk on the right.
II Try to organize the first slide for the presentation on page 86:
89
TYPES OF VISUALS/GRAPHICS
1 2 3 4
5 6 7 8
90
4 BUSINESS CORRESPONDENCE
INTRODUCTION
I Discuss these questions.
LAYOUT
o BLOCK STYLE (see page 95)
CONTENT
Most letters have three parts:
o AN OPENING, which says why you are writing,
o THE MAIN MESSAGE, which gives the details, and
o THE CLOSING, which usually refers to future contact.
Each part is usually a separate paragraph, but the main message can be more than one
paragraph if you are writing about more than one subject.
91
II Study the following steps in letter writing.
REMEMBER!
92
ELECTRONIC MAIL - GENERAL GUIDELINES
2. SUBJECT HEADING
Many people do not open all the messages they receive because a lot of them are junk mail
so they delete them straight away. That is why it is very important to write a short subject
heading which makes it clear what the message is about and which encourages the reader
to open the message. This can also help to ensure that the message goes to the right
person.
3. UPPER/LOWER CASE
Avoid capitals in emails because they are considered the same as shouting. Similarly, don’t
write all in lower case.
5. REPLY
Most commonly a reply to an email does not contain the original message, unless it is
important to do so. The person you are replying to will normally have a copy of their own
original message.
6. ATTACHMENT
Your email should always mention what you are attaching, because sometimes the receiver
is unable to open, download and convert the file attached.
7. PARAGRAPHS
Divide your message into meaningful paragraphs. It is more natural and certainly less tiring
to read several short paragraphs than one long one. Use a line space between your
paragraphs.
8. STYLE
Using the right style of writing can be a problem for inexperienced writers. The wrong style
might leave the wrong impression despite the writer’s intention. For that reason, remember
that email language should be natural and not very formal. However, informal language
should be used with caution, and is generally recommended only if you know the person
well. Avoid text-message abbreviations, slang and ‘emoticons’ (symbols which people often
use in Internet chat). It is always a good idea to check your email for language and style
before you send it. A badly spelled, poorly written e-mail can give a very negative impression.
Adapted from A. Littlejohn: Company to Company, Fourth Edition, 2006, Cambridge University Press
93
LAYOUT
Outlook Express
Beewiz Co.
13 King Street To: tripfinder@finder.com
Manchester M35
England From: john.gooding@beewiz.com
Cc: dbrowns@beewiz.com
TRIPFINDER Co.
4 Hawk Road Subject: Trip to Split
Manchester M35
Dear Sir or Madam
England
We are writing in connection with the above
Our ref: JG/st/4
trip.
5 June 2010
We would like to inform you that the number of
people interested in the trip has changed.
There are now 22 persons on the list.
Dear Sir or Madam
We hope that this has not caused you any
Trip to Split inconvenience.
John Gooding
John Gooding
HR Manager
94
LAYOUT: BLOCK STYLE
I Study the layout of business letters, the “BLOCK STYLE”. How is information
organised? How are paragraphs separated? Where do they begin?
John Gooding
SIGNATURE
(WRITTEN AND John Gooding
TYPED) HR Manager
TITLE
95
II Copy the mixed-up sentences in the empty form below to write a correct
email. Divide the message into paragraphs leaving space lines. Add any other
necessary information, e.g. e-mail addresses etc.
Dear Mr Zorić
Visit to Zagreb
I am now planning a trip to Europe and I would be very pleased if we could meet to discuss
the new technology you would like to introduce.
Marc Sullivan
Sales Manager
Export Division
www.buptech.co
Yours sincerely
To:
From:
Subject:
96
TYPES OF LETTERS
LETTER OF APPLICATION
PURPOSE
The purpose of a letter of application is to apply for the position that has been advertised.
This letter should highlight the specific qualifications, accomplishments, and abilities or work
experience that have special relevance for the position you are applying for. The job
advertisement will always tell you how to apply.
PROGRAM OFFICER
97
Off the Arabian Gulf St.
Opp. Al Maqsab Gate
Safat P.O. Box 193
The Secretary-General
Asian Productivity Organization
1-2-10 Hirakawa-cho, Chiyoda-ku
Tokyo 102-0093
Japan
OPENING
3 September 2008
say why you are writing
refer to the job ad
Dear Sir or Madam name the position for
Job application which you are applying
Encl: CV
98
CURRICULUM VITAE/RESUME
PURPOSE
A CV/resumé is a summary of a person’s business or professional qualifications,
educational background, and work experience for a particular position. Its purpose is to give
an overview of the applicant’s capabilities, qualifications, and credentials for a given job.
In a chronological CV, which is the most common and the most readily accepted format,
information about education and professional experience is arranged in reverse order
beginning with your present or most recent position. There are many ways how to write a CV.
CURRICULUM VITAE
PERSONAL DETAILS
EDUCATION
WORK EXPERIENCE
SKILLS
Computer skills: MS Office 2008
Languages: English (C1), Italian (B2), Arabic (B1)
Additional: Driving license (personal car)
REFERENCES
99
I Name the headings and categories commonly used in CVs in which you list:
II Find a job ad for the position you would be interested in. Then write a letter of
application and your CV.
LETTER OF ENQUIRY/INQUIRY
PURPOSE
The purpose of this letter is to get information products, services, prices, or any other
business issues. Here is an e-mail in which the writer is enquiring about a product.
Dear Mr Demer
mention how
I am writing to enquire about the washing machines which I found you got the
contact
on your website.
give reason for
writing
We are interested in your B2X washing machines. We are a Croatian
company exporting to the EU, and we need good quality products. say what you
require
Please send us information about your product range and prices.
ask for action
We look forward to receiving your reply.
Marko Ivic
Purchasing Manager
Velicro d.d.
Splitska 12
10000 Zagreb
Hrvatska
www.velicro.hr
100
I Read the reply and underline the phrases that typically appear in replies to
inquiries.
Thank you for your email of 25 May enquiring about our washing machines.
We are happy to inform you that we can supply the items you inquired about
directly from stock. We can offer a discount of 10% on orders over €10, 000. We
dispatch the goods within 24 hours of a firm order.
We are attaching our current catalogue and price list. You will see that B2X line of
washing machines is on special offer.
If you need any further information, please do not hesitate to contact me.
Yours sincerely
Mahmud Demer
Sales Manager
Write a letter of inquiry to Ms Linda Bertich at Oxford University Press inquiring about an e-
learning package for Business English. Ask if they offer any discounts for university students.
101
LETTER OF COMPLAINT
PURPOSE
Letters of complaint are sent when customers or business partners are not satisfied with the
quality of service or product they have purchased or agreed on. Complaints can be mild or
strong, depending on the situation. Here are two letters of complaint. Underline
words/expressions that indicate a mild or
a strong complaint.
Dear Mr Ivić
say why you
I am writing to complain about the washing machine I bought from are writing
your website.
Dear Mr Ivić
say why you
It is now two weeks since I complained about the washing machine are writing
and I still have not received any reply.
I would like to point out once again that the washing machine
repeatedly leaves the laundry stained. point out what is
wrong
I hope it is not necessary to remind you that such a reputable company
give further
should have much more efficient after sales service.
reasons in
support of your
Unless I hear from you within seven days, I will be forced to take legal
complaint
action against your company.
Yours sincerely
give a
Marija Horvat warning
102
LETTER OF APOLOGY
PURPOSE
Letters of apology represent a reply to a complaint. The sender apologises for the problem
explaining what caused it. The sender also promises action repeating his/her apologies.
I am sorry for the inconvenience we have caused you. I have spoken to the apologise for
staff involved and I assure you that your problem will be resolved the mistake
immediately. give a brief
explanation
To compensate for the inconvenience, we would like to offer you another
washing machine to replace the faulty one. We will inform you next week
about the exact time of the delivery. suggest a
solution
I very much hope you will continue to use our products in the future.
Write to NaPa Import-Export d.d. (Baruna Trenka 45, Osijek) and tell them that you cannot
deliver their order on time due to an accident in the plant. You expect your operations to be
back to normal by the end of this month. They will receive the goods within two weeks.
103
REVISION 1
Identify the parts of the business letter and fill in the empty boxes.
Beewiz Co.
13 King Street
Manchester M35
England
TRIPFINDER Co.
4 Hawk Road
Manchester M35
England Our ref: JG/st/4
5 June 2010
Trip to Split
BUSINESS LETTER LAYOUT
Yours faithfully
John Gooding
John Gooding
HR Manager
104
BUSINESS LETTERS: USEFUL PHRASES
105
MAKING
The things that annoyed me most.../What made me particularly
A STRONG
COMPLAINT dissatisfied/angry...
I should like to point out that…/I should like to draw your attention to
the fact that…
I hope it is not necessary to remind you that…
We must insist, therefore, that you take immediate action.
If you are unable to do this, we will be forced to cancel your contract
with us.
Unless we hear from you within a week, we will be forced to take
legal action.
APOLOGISING We are sorry for the delay in replying…
I would like to apologise for the delay/inconvenience…
We must apologise for…
We are extremely sorry for…
We hope this has not caused you any inconvenience.
Please accept our apologies once again.
With apologies once again.
GIVING REASONS This is due to…/owing to…
This is because of…/as a result of…
ATTACHMENTS AND I attach some information which I hope you find useful.
ENCLOSURES
I have pleasure in attaching…
I am attaching our catalogue to this message.
I am attaching details of…
If you have any problems opening this file, please let me know.
I attach our price list and look forward to hearing from you.
Please find attached our report.
I am enclosing my CV. /I enclose my CV.
Please find my CV enclosed.
PROBLEMS WITH I am afraid you forgot to attach the report. Could you send your
ATTACHMENTS
message again, please?
Unfortunately, the attachment won’t open on my computer.
Could you send it again in a different format?
Sorry! I forgot to send the attachment.
ENDING A LETTER We look forward to receiving your reply.
Looking forward to hearing from you.
We look forward to doing business with you in the future.
Please contact me if you need any further information.
Please do not hesitate to contact me if you have any further
questions.
Please let me know if you need any further information.
I hope that this information will help you.
106
II Use the phrases from the previous section to write the most appropriate
sentences in the following situations.
1. You saw an advertisement about a trip to Vienna on the Internet and you want further
information. How would you start this email to a travel agency?
2. You want to know if the language centre in London offers scholarships for university
students. How would you request information in this situation?
3. You want to know the prices of the television sets from the catalogue you have seen on
the Internet. How would you request information in this situation?
4. A company wrote to you on 15 May. They wanted to know about the warranty period for
your computers. How would you start your reply in this situation?
5. You have received an email with an important attachment missing. How would you
request action in this situation?
6. You are going to an important conference in Paris next week. You have just realized that
your passport has expired. You want to have it extended urgently. How would you request
action in this situation?
8. Use different phrases to give good news concerning the following situations:
107
c) a bank loan granted for apartment adaptation
9. Use different phrases to give bad news concerning the following situations:
a) a candidate’s application for a post as project manager
10. Use different phrases to give reasons for the following situations:
a) delayed flights – strike by flight attendants
11. You were dissatisfied with the quality of hotel accommodation. How would you make a
mild complaint?
12. The laptop you have bought recently has broken down the second time in the past six
months. You want a new laptop or your money refunded. How would you make a strong
complaint?
13. You were supposed to send a reply to an email you had received a week ago. How would
you apologise in this situation? Give your reasons as well.
14. A lot of customers have already complained about the unprofessional behaviour of the
shop assistants in one of your shops in the centre of Munich. How would you apologise in
this situation? Offer some compensation as well.
15. How would you end a letter in which you have given some information?
16. How would you end a letter in which you have tried to deal with a client’s complaint?
108
REVISION 2
The name and the address of the addressee (the person you are writing to) are at the top
on the .
The date is on the .
The paragraphs are at the . Between each paragraph there is a
.
Under the _, there is the name and title of the writer.
III How do you OPEN these letters? Fill in the missing words.
Dear to a company
Dear to a man if you do not know his name
Dear to a woman if you do not know her name
Dear to a married or unmarried woman
Dear to man
Dear to a married woman
Dear to an unmarried woman
Dear to a friend or someone you know well
109
VI Here are some ways to BEGIN A LETTER. Circle the correct answer.
We are writing to enquire for / about …
We are writing in / with connection to / with …
We are interested about / in ... and we would like to / Ø know...
VII Here are some ways in which you can write A REPLY TO A LETTER. Fill in
the missing words.
VIII Here are some ways to END A LETTER. Fill in the missing words.
I look to receiving your reply/order/products/etc.
Looking forward to from you.
IX If you GAVE SOME INFORMATION in the letter, you can END THE LETTER
by using the following phrases. Fill in the missing words in the phrases.
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XI There are some mistakes in this letter. Can you find the mistakes and
correct them? Pay attention to accuracy (grammar, spelling and punctuation)
as well as the layout. Then, write out the letter correctly, in 'block style'.
Email: willow.bookshop@wbk.com
www.willow.bookshop.co.uk
Dear Sir,
I’m writting to complain about the above order witch I placed with yours bookshop.
It was now over six weeks since I ordered the books and I still don’t receive them. I want to
remind you that I have alredy paid these books that I need for my thesis and couldn’t find in
New York bookstores. I must insist therefore that you deliver them imediatelly or give me
back my money.
Unless I don’t hear from you within the next few days, I will be forced to take legal
action.
Best wishes,
Hilary Hendricks
Hilary Hendricks
XII Finally, write a reply to this letter apologising for this situation, giving
reasons for the misplaced order and offering some kind of compensation.
Source consulted: Littlejohn, A. Company to Company, Third Edition, 2000, Fourth Edition, 2006, Cambridge
University Press
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