Just Business Part II

ВСЕРОССИЙСКАЯ АКАДЕМИЯ
ВНЕШНЕЙ ТОРГОВЛИ
Минэкономразвития России
________________________________________________________________________________
Кафедра английского языка
международного бизнеса
С.В. Аверьянова
Е.Ю. Семенова
JUST BUSINESS
Part II
Учебное пособие
для слушателей ВАВТ
Москва
ВАВТ
2014
ВСЕРОССИЙСКАЯ АКАДЕМИЯ
ВНЕШНЕЙ ТОРГОВЛИ
Минэкономразвития России
________________________________________________________________________________
Кафедра английского языка
международного бизнеса
С.В. Аверьянова
Е.Ю. Семенова
JUST BUSINESS
Part II
Учебное пособие
для слушателей ВАВТ
Рекомендовано кафедрой
протокол заседания
от 21 мая 2014 года, № 9
Одобрено Редакционно-издательским Советом ВАВТ
Москва
ВАВТ
2014
УДК 811.111
ББК 81.2 Англ.
А - 197
Рецензент - Старший преподаватель кафедры английского языка МБ
Рагель С.Г.
А - 197
Аверьянова С.В., Семенова Е.Ю.
JUST BUSINESS Part II: Учебное пособие для слушателей ВАВТ/ С.В.
Аверьянова, Е.Ю. Семенова; Всероссийская академия внешней торговли
Минэкономразвития России. - М.: ВАВТ, 2014. - 93 c.
Данное пособие составлено на основе учебника Powel, M., New Business
Matters, Coursebook, Thomson, 2004 и представляет собой сборник
текстов и упражнений, направленных на расширение запаса деловой
лексики, развитие навыков чтения, аудирования, письма и говорения.
Пособие рекомендовано для использования слушателями магистратуры
вечернего отделения (upper-intermediate level) международнокоммерческого факультета.
УДК 811.111
ББК 81.2 Англ.
CONTENTS
Unit 5
Brand Management
4
Unit 6
Prices and Commodities
25
Unit 7
Corporate Entertaining
51
Unit 8
Innovation
68
Tapescript
87
Resource Bank
89
3
Just Business Unit 5 Brand Management
Unit 5 Brand Management
“A product can be copied by a competitor; a brand is unique.”
Simon Mainwaring, branding consultant
LEAD –IN
A. Comment on these quotations on success. Do you agree?
1. Authentic brands don't emerge from marketing cubicles or advertising agencies. They emanate
from everything the company does... Howard Schultz, Starbucks
2. He goes by the brand, yet imagines he goes by the flavor. Mark Twain, writer
3. To me a ‘brand’ sounds evil. Steven Moffat, Scottish television writer and producer
B. A Follower of Fashion?
How important is image to you? Are you very choosy about the kind of clothes you wear,
the sort of car you drive, the make of watch you have? Are you as fussy when it comes to
the brand of coffee you drink or the type of breakfast cereal in your bowl?
To find out how selective and loyal a consumer you are, try the following extract
from a market research questionnaire. In each section, choose the statement you
prefer, a or b.
1
2
Coke and Pepsi really do taste
better than other colas I've tried.
b.
One fizzy drink is pretty much the
same as another to me.
a.
I wouldn't wear a cheap watch or
cheap jewellery because they're a
reflection of your personality.
I wear a watch to tell the time and
jewellery for fun. I don't care what
they cost if they look all right.
6
I wouldn't be seen dead wearing
one of those Mickey Mouse fake
Rolexes.
I'd definitely wear a fake Rolex or
Omega watch if it looked just like
the real thing.
7
b.
3
a.
b.
4
5
a.
a.
b.
a.
b.
I'd pay a lot more for a garment with
a famous label in it because quality
always shows.
I'd never waste money on a silly label
when you can get the same garment
for half the price elsewhere.
a.
Cheap coffee tastes horrible. I don't
cheat myself by saving a few pence.
b.
It all tastes the same after the first
three cups!
a.
I usually stick to the same brand of
cigarettes and I wouldn't dream of
switching.*
I'll smoke anything, as long as it
doesn't taste of fresh air.*
* Non-smokers needn't answer this
question.
b.
I like my Audi, but if I could afford
the same sort of Mercedes, I'd buy
one of those instead.
For me, the most important thing is
a car's performance and economy,
not its make.
Compare your answers with those of your colleagues.
4
Just Business Unit 5 Brand Management
Discuss: Do you know any products with strong brand images? What are the
advantages and disadvantages of brand name products, own brands and generics?
Which do you prefer to buy?
Business Brief
Read the texts about products and brands and do the exercises below.
Products and brands
Word combinations with 'product'
catalogue (BrE)
catalog (AmE)
mix
portfolio
product
a company's products, as a group
line
range
a company's products of a particular type
lifecycle
the stages in the life of a product, and the number of
people who buy it at each stage
positioning
how a company would like a product to be seen in
relation to its other products, or to competing products
placement
when a company pays for its products to be seen in
films and TV programmes
Goods can refer to the raw materials, materials and components used to make products, or
the products that are made.
Here are some examples of these different types of goods: consumer goods that last a long
time, such as cars and washing machines, are consumer durables. Consumer goods such
as food products that sell quickly are fast-moving consumer goods, or FMCG.
Exercise 1 Which applies to each of these products?
microwave ovens
cotton
cars
hamburgers
soap powder
Exercise 2 Match the sentence beginnings (1-7) with the correct endings (a-g).
1
Banks are adding new types of accounts
a
2
Apple is going to simplify its product line
b
3
с
4
Consumers have mixed feelings about
supermarkets
When BMW bought Rover,
5
The new law will ban product placement
e
6
Following the launch of the Series 5
laptop,
consumers
were
slow
to
understand
With this type of equipment in the US,
f
7
1
2
3
4
5
d
g
product life cycles are so short that
product launches are very frequent.
its product positioning in relation to
Psion's existing hardware products.
it changed its product range towards
more expensive cars.
of cigarettes in movies.
extending their product portfolio into
financial services.
and deliver fewer but more competitive
models.
to their product mix.
5
6
7
Just Business Unit 5 Brand Management
Brands and branding
The American Marketing Association defines a brand as a "name, term, design,
symbol, or any other feature that identifies one seller's good or service as distinct from
those
of
other
sellers."
A
brand
can
take
many
forms,
including
a name, sign, symbol, colour combination or slogan. This may be the name of the company
itself: the make of the product. For products like cars, you refer to the make and model,
the particular type of car, for example the Ford (make) Ka (model).
Branding is creating brands and keeping them in customers’ minds through
advertising, packaging, etc. The word branding began simply as a way to tell one person's
cattle from another’s by means of a hot iron stamp. The word brand has continued to evolve
to encompass identity — it affects the personality of a product, company or service. It is
defined by a perception, good or bad, that your customers or prospects have about you. A
brand should have a clear brand identity so that people think of it in a particular way in
relation to other brands. Successful brands are companies’ most valuable assets. They
add value to products. They guarantee a certain quality level. And customers believe they
get extra value for money. It’s a synergy effect whereby one plus one equals three.
Customers who always buy the same brand are brand loyal.
Brand awareness or brand recognition is how much people recognize a brand.
The ideas people have about a brand is its brand image. The brand with the most sales in
a particular market is a brand leader. Global brands have the ability to cross both
geographical and cultural boundaries, building international reputations of quality.
Creating brands and brand awareness is the job of the brand manager. Brand
management is the application of marketing techniques to a specific product, product line,
or brand. Brand managers plan, develop and direct the marketing efforts for particular
brands or products. It is not uncommon for brand managers to be responsible for
coordinating activities of specialists in production, sales, advertising, promotion, research
and development, marketing research, purchasing, distribution, package development, and
finance.
Once the brand name has been established, the makers sometimes engage in
brand extension or brand stretching, which involves using the brand name on a range of
products. In the case of luxury brands, companies have to be careful to avoid
overexposure, which could damage the exclusive aspect of the brand image.
A product with the retailer’s own name on it is an own-brand product (BrE) or own-label
product (AmE).Products that are not branded, those that do not have a brand name, are
generic products or generics.
Exercise 1 Complete this marketer’s description of his work using expressions
from the text above.
My name’s Tomas. I’m Portuguese, and I’ve been ………... ……….. for Woof dog food for the
whole of Portugal and Spain since I left business school last summer.
The Woof ………… is owned by a big international group. The market for pet food in Portugal
and Spain is growing very fast, as more and more people own dogs and cats, and we’re
trying to increase ……….. ……….. of Woof through TV advertisements and boardings in the
street. Research shows that people have very positive ideas about it: it has a very positive
………. ………… . But the supermarkets have their ……… ………. Dog food, usually sold cheaper
than our product, which is a problem. There are even ……… ………. sold just under the name
“dog food’. We have to persuade people that it’s worth paying a bit more for a ………..
product like Woof, which is far better, of course.
6
Just Business Unit 5 Brand Management
Exercise 2 Match these word partnerships to their meanings.
1
2
3
brand loyalty
own-label product
value for money
a
b
c
4
5
brand awareness
brand name
d
e
6
7
8
generic product
luxury brand
brand image
f
g
h
9
10
11
brand management
brand stretching
classic brand
i
j
k
12
13
synergy effect
brand leader
l
m
1
2
3
4
the name given to a product by the company that makes it
using an existing name on another type of product
additional advantages produced by combining two ideas or
resources
the brand with the largest market share
the way in which a company controls its brands and the way
people think about them
the tendency to always buy a particular brand
a product that has the brand name of the shop that is selling it
a product that is sold under its own name rather than under
the name of a particular manufacturer
the ideas and beliefs people have about a brand
a famous brand with a long history
the amount something is worth compared to the money that
it costs
a brand associated with expensive, high quality products.
how familiar people are with a brand
5
6
7
8
9
10
11
12
13
Discuss: What do the following terms mean to you? Discuss them with your
colleagues.
•
brand loyalty
•
brand-awareness
•
brandstretching
•
own label products
•
me-tooism
•
subliminal advertising
•
lookalike products
•
market saturation
•
household name
7
Just Business Unit 5 Brand Management
Listening
Listen to the text about brand wars and answer the questions below.
1
What do market leaders have to do to keep their dominating position?
2
What happened when Philip Morris reduced their prices?
3
What has fair market competition escalated into?
4
Own-Label Products
Why are the corporate heavyweights losing sales?
5
What percentage of total sales do own-labels account for?
6
Lookalike Coke
What do big brands do to fight own-label products? Give examples.
7
How does Sainsbury’s cola compare with Coke?
8
Big Brands – Big Business
What mark-up is Omega still able to put on their products? Why?
9
Brandstretching
What else do big businesses do to generate additional revenue? What examples are
given?
10
Buyer Beware
What is considered to be the main threat to big brands?
11
How can the problem be solved?
12
What percentage of clothes and footwear sold in Europe are fakes?
What losses do big companies suffer due to it?
13
What should consumers beware of?
14
Market Saturation
What consequences can market saturation lead to?
15
How many kinds of toothbrushes and shampoo do some stores stock? How long will it
take to try them all?
16
How many new brands survive?
8
Just Business Unit 5 Brand Management
Reading and language
Read the text Brand Wars and do the exercises below.
BRAND WARS
Coke versus Pepsi; Nike versus Reebok; Nintendo versus Sega – the battle is on
amongst the world’s top brands. Aggressive comparative advertising has now reached
fever pitch; extra millions are pouring into R&D, and the market leaders are under constant
pressure to slash their prices in a cutthroat struggle for market domination. When Philip
Morris knocked 40c off a packet of Marlboro, $47-and-a-half billion was instantly wiped off
the market value of America's top twenty cigarette manufacturers. Lesser brands went to
the wall. And that's just one example of how fair competition within a free market has
rapidly escalated into all-out brand war.
Own-label Products
Yet, in spite of the efforts of the corporate heavyweights to win market share, when it
comes to fast-moving consumer goods, more and more consumers are switching to the
supermarkets' own-label products. And brand loyalty is fast becoming a thing of the past.
The once unchallengeable Nescafe and Kellogg's are actually losing sales, as their higher
price is no longer automatically associated with higher quality. And in many supermarkets
across Europe and the States own-labels now account for over 55% of total sales. Their
turnover has never been higher.
Lookalike Coke
Of course, the big brands are not giving in without a fight. When British supermarket chain,
Sainsbury's, led the attack on Coke by launching its own similarly packaged product, it
managed to secure 15% of the total UK cola market in just two months. But Coca-Cola was
quick to respond. Sainsbury's was told to change its packaging fast or Coke would cut its
prices to rival supermarkets and leave Sainsbury's hopelessly overpriced. Some people say
the Sainsbury's cola tastes as good as Coke. But they're the ones who underestimate the
power of the brand.
Big Brands - Big Business
For brand names are still the reason Omega can put a 300% mark-up on their watches, the
reason Nestle spent a fortune buying Perrier, the reason investors are prepared to pay up to
twelve times the book value for a company's stock. Big brands remain big business in the City.
Brandstretching
Brandstretching is another way in which the household names are fighting back. By putting
their familiar trademark on attractive and fashionable new products, companies can both
generate additional revenue and increase brand-awareness, hence Pepsi Maxwear, Vergin
Cola, Camel Adventure Gear clothing and even jewellery by Cadbury! The high-life image
suits companies like Philip Morris, for whom, as the restrictions on tobacco ads get tougher,
brandstretching is the perfect form of subliminal advertising.
Buyer Beware
So much for the high-street brands. Further upmarket, the luxury branded goods
manufacturers are facing an even greater enemy of their own, namely, the pirate brands.
And as the trade in lookalike products increases, companies like Ray-Ban and Reebok, Yves
Saint Laurent and Armani are calling for a crackdown on the pirates. In Europe over ten
percent of clothes and footwear sold are said to be fakes, costing the firms who make the
real thing nearly $7 billion a year. For a fraction of the recommended retail price you can
pick up fake Gucci, fake Lacoste, fake Lego, fake Disney, fake Nintendo, fake anything. But
buyer beware! Your case of Moet et Chandon will probably turn out to be cider and your
bottle of Calvin Klein more like industrial cleaner than perfume.
Market Saturation
But, brand wars aside, the single biggest threat to the market remains saturation. For it
seems there are just too many products on the shelves. In the States they call this 'product
clutter' and it is currently the cause of a strong anti-consumerism movement. In fact,
product proliferation and widespread me-tooism mean that some Boots stores actually stock
75 different kinds of toothbrush and 240 types of shampoo. It would take you over 20 years
to try them all, assuming you even wanted to! And that's just got to be crazy when you
think that 80 to 90% of new brands fail within their first six months.
9
Just Business Unit 5 Brand Management
Exercise 1 Without referring back to the article, can you remember in what context
the following companies were mentioned?
1.
Philip Morris / Marlboro
2.
Nestle
3.
Coca-Cola
4.
Omega
5.
Cadbury
6.
Moet et Chandon
7.
Calvin Klein
8.
Boots
Vocabulary
Exercise 2 Look back at the article Brand Wars and find the expressions which
mean:
1. reach a ridiculous level (par. 1)
2.
cut drastically (par. 1)
3.
fiercely competitive (par. 1)
4.
take 40c off (par. 1)
5.
remove or make something disappear (par.1)
6.
smaller, less important (par. 1)
7.
go bankrupt (par. 1)
8.
become much worse or more serious (par. 1)
9.
involving all the forces that are available (par. 1)
10. major companies (par. 2)
11. consumer goods that sell very quickly (par. 2)
12. impossible to defeat (par. 2)
13. total sales before costs are deducted (par. 2)
14. stop competing and accept that you can’t win (par. 3)
15. get or achieve something important (par. 3)
16. react quickly (par. 3)
17. worth less than the price that is being charged (par.3)
18. think that something is less important than it really is (par.3)
19. profit margin (par. 4)
20. pay a lot of money for (par. 4)
21. official value of an asset (par. 4)
22. a name of a product/company that is well known (par. 5)
23. receive extra income (par. 5)
24. intended for people who have a lot of money (par. 6)
25. severe measures against law-breakers (par. 6)
26. too many products in a place (par. 7)
27. a sudden increase in number or amount (par.7)
10
Just Business Unit 5 Brand Management
Exercise 3 Match each of the words in the first column with a word from the
second column to make twelve word partnerships from the article. There are some
alternative partnerships, but there is only one way to match all twelve.
1
2
3
4
5
6
7
8
9
10
11
12
aggressive
household
melookalike
retail
supermarket
branded
free
subliminal
antifair
recommended
1
2
3
a
b
c
d
e
f
g
h
i
j
k
l
4
names
products
advertising
tooism
goods
market
chain
sales
consumerism
retail price
advertising
competition
5
6
7
8
9
10
11
Exercise 4 Find five nouns in the article Brand Wars which form strong word
partnerships with the word market.
MARKET
1
2
3
4
5
Find five nouns in the article Brand Wars which form strong word partnerships
with the word brand.
BRAND
1
2
3
4
5
Which 8-letter word can come before all the following words?
goods
research
protection
profile advertising
durables
non-durables
Now match these word partnerships with the following definitions:
1.
2.
3.
4.
5.
6.
7.
commercials aimed at the end-user
goods used shortly after purchase such as food, newspapers, etc.
products purchased by a member of the public
goods which last a long time such as cars, televisions, etc.
laws to defend buyers against unfair trading
market study of buyer behaviour patterns
description of a typical buyer according to age, sex, social status, etc.
11
12
Just Business Unit 5 Brand Management
Exercise 5 Match each word on the left with a word on the right to form ten
common marketing expressions.
1
2
3
4
5
6
7
8
9
10
brand
consumer
marketing
advertising
core
premium
market
price
special
brand
1
2
a
b
c
d
e
f
g
h
i
j
3
plan
brand
offer
loyalty
share
product
brands
campaigns
awareness
promotions
4
5
6
7
8
9
10
Use the expressions from the table above to complete the sentences that follow.
1. ___________________ are important brand-building activities.
2. Marketing tactics such as ___________________ aim to boost sales quickly.
3. Because of their association with quality and status ___________________ often cost a
bit more.
4. During a sale in a department store, many goods are on ___________________.
5 The danger with brand-stretching is the damage that can be done to the
___________________ if it is not successful.
6. A good ___________________ will guard the long-term interests of the brand it is
promoting.
7. Launching a new ___________________ onto the market is a costly and risky business.
8. Customers who always buy the same brand of goods are showing _________________.
9. ___________________ is a measure of how well-known a product is in the marketplace.
10. In some sectors, the competition between companies for __________________ is
fierce.
Exercise 6 Complete each sentence with the correct form of the underlined word.
In some cases, you will need to use the negative form.
advertise
■ In our new campaign, our main
.......................... medium will be
television.
■ Benetton produced a series of
eye-catching .......................... for their
products.
2 associate
■ Engineering firms often work in
........................... with other companies
on a major contract.
■ When there is a financial scandal,
business people often try to
........................... themselves from
those involved.
3 consume
■ Food, clothing and household products
are all examples of ...........................
goods.
■ Wine ........................... is high
in France, and on the increase in other
European countries.
6 profit
■ This line of raincoat is highly
...........................- we must discontinue it
as soon as possible.
■ If we are serious about improving the
........................... of these outlets, we
should take a good look at staffing costs.
7 promote
■ We expect all our ……………………. activities
to cost around £2 million.
■ ……………………………………. is a very
important marketing function.
8 rival
■ The ........................... between
soft drinks companies, Coca-Cola and Pepsi
Cola, is very fierce.
■ Otis is known all over the world as a
manufacturer of lifts. Its reputation in the
industry is ...........................
12
Just Business Unit 5 Brand Management
4 market
■ To make money, you don't just need a
good product - you also need excellent
...........................
■ Some products are very innovative, but
they simply aren't ...........................
9 sell
■ Which is your best-............................
product?
■ Our ........................... force doubled
when we took over our chief competitor.
5 produce
■ Although the meeting went on for
hours, it was rather
…………………………………….
■ Since we introduced the new pay
structure, ........................... has
improved enormously.
10 value
■ Our stock is so ........................... that
it cannot be left unguarded.
■ We were most impressed by the
consultants we hired - their advice was
……………………………………………..
Exercise 7 A lot of the language of business and marketing is full of metaphors.
A. Group the following business expressions according to where you think the
words in bold originally come from. Choose from the following: war, sport &
games, water, health, flight.
1
a takeover battle
11
the company is suffering
2
a stalemate situation
12
the economy is in freefall
3
a few orders are trickling in
13
pour money into advertising
4
defend our market share
14
be an easy target
5
sales have soared
15
a strategic alliance
6
a flood of new products
16
shoot down someone's idea
7
take a time out
17
the market has completely dried up
8
make a recovery
18
backing a winner
9
the flow of capital
19
the company is in good shape
10
the company really took off
20
playing for high stakes
B. Use the above expressions to complete the following sentences.
1. It was a ________________ - neither side in the negotiation was prepared to move an
inch!
2. ________________ in the 1990s when profits increased tenfold.
3. The two companies formed a ________________ to fight off the competition from Korea.
4. We're ________________, Ladies and Gentlemen - the company itself is at risk.
5. In a _______________ it's often the small shareholders who decide who wins.
6. Never ________________ until you've given them the chance to explain what it is.
7. We can't continue to ________________ until we start seeing some sign that it's
working.
8. ________________ to an all-time high and look set to stay high for the rest of the year.
9. I'm afraid ________________ - there's simply no more demand for this kind of service.
10. Perhaps we should ________________ and meet back here in, say, ten minutes?
11. In our current financial position we would ________________ for a predator company.
12. Poor turnover is partly due to the fact that _______________ from the effects of the
recession.
13. Liberalising the markets in Ecuador just led to ________________ out of the country.
13
Just Business Unit 5 Brand Management
14. In giving this new product the go-ahead, believe me, you're really ________________ it's sure to be a huge success.
15. ________________, but, when you think that we used to sell 1,000 units a day, frankly
it's pathetic.
16. This big order from the Middle East is just what this company needed to
________________ — finally things are looking up.
17. ________________ has made it impossible for us to rely on brand loyalty from our
customers - there's simply too much choice.
18. In spite of media reports to the contrary ________________ and ready to break into
new markets with this product.
19. We clearly need to________________ if we are to remain the market leader.
20. Inflation is running at 66%, unemployment is up nearly 30%, our trade deficit is
enormous and, to be honest, ________________.
Exercise 8 Study these examples. Then choose the words from the box to complete
the sentences that follow. Use your dictionary and grammar book to help you
which words are both appropriate and grammatically correct in each case.
Despite the evidence of the value of brands, creating and sustaining that capital are
neglected by companies.
Some consumers switch temporarily to the promoted brand, but once the promotion ends,
all of them go back to the one they normally prefer.
Since price is often a signal to consumers of a product quality, a brand that is always on
special offer loses its appeal.
Reason
because
Contrast
although
as
so
since
despite
therefore
in spite of
consequently
but
however
nevertheless
yet
1. Brand-stretching can be very risky ............................. , it can also be very lucrative.
2. The value of price promotions is questionable, ............................ most consumers
switch back to their usual brand when the promotion ends.
3. Companies have to keep their shareholders happy. ............................., brand
managers are under pressure to find ways of boosting sales.
4. ........................... a brand may sell well in one country, it may not sell at all in
another.
5. Price is a signal of quality, ............................ consumers will often pay more for
premium brands.
6. In
1991,
advertising
accounted
for
around
a
third
of
all
marketing
outlay,
............................, in 1980, the picture was very different.
7. ........................... their disappearance from the market, General Electric's food
blenders continued to rank second with consumers 20 years later!
14
Just Business Unit 5 Brand Management
Reading and Discussing: Read the text below and answer the questions after it.
Brussels throws weight behind counterfeiting drive
Under the slogan 'Fakes cost more', the European Union is to throw its weight behind a
global anti-counterfeiting campaign. Jose Manuel Barroso, the European Commission
president, is to open a counterfeiting summit attended by businesses, charities and
campaign groups. He aims to highlight that the practice damages not only big European
brands but also consumers and the sweatshop workers involved.
Frederick Mostert, founder of the Authentics Foundation, which organised the conference,
said the perception of counterfeiting as a victimless crime had to change. He said: 'It is
about the real cost to society: it is supporting child labour, funding organised crime and
terrorism. Many of the products are dangerous. Planes have crashed because of fake parts.'
Few people had grasped how counterfeiting had moved from small-scale family operations
to worldwide smuggling rings, Mr Mostert said. He calculated that the business was worth
$500bn (€324 bn, £248 bn) annually. 'Anything can be copied, from a Ferrari to toothpaste.
The World Health Organisation says 10 per cent of medicines in the world are fakes. That is
scary.'
The Commission has proposed EU-wide minimum criminal sanctions for counterfeiters,
including jail terms, for repeat offenders.
From the Financial Times
Do you think counterfeiting is a problem? Why? Why not? The slogan for the anticounterfeiting campaign is 'Fakes cost more'. How can this be? Who do you think
is affected by counterfeiting?
Discuss: For many companies successful marketing begins with the successful sales letter.
What do you generally do with the sales letters that arrive on your desk? Do you
ever read them or do they tend to be filed in the wastepaper basket? Why? Explain
your answer. Give your ideas on how to create a successful sales letter.
Listening
Listen to a consultant giving tips on how to write the perfect sales letter and
answer the questions below.
1
What happens to the majority of sales letters and why?
2
Why is mass mailing still used?
3
What is a reader-friendly letter like?
4
What should you bear in mind when you write to Managing Directors?
15
Just Business Unit 5 Brand Management
5
How different should your letters be when you write to junior, senior and middle
managers? Why?
6
What should you do if you have several proposals to make to a customer? Why?
7
How can you make your letter compulsive reading?
Reading and language
Exercise 1 Read the text below. Put a suitable preposition for each blank.
Do you ever stop to think about what happens (1) ….. your sales letters after they leave
your desk? You may spend hours drafting and redrafting them. But do you give a moment's
thought to how your reader will react (2) ….. them when they arrive? If not, don't write
another word (3) ….. you do.
(4) ….. you write your next letter, put yourself in the shoes of the customer. Make it readerfriendly. The majority of sales letters get filed, lost or binned. The reader-friendly letter
stands a better chance.
Rule number one: never insult your reader (5) ….. what is called a mass-mailed letter. True,
mass mailing is the quickest way of reaching hundreds of potential customers. It's also the
safest way of ensuring that your letter ends (6) ….. in the bin. A short personalised letter,
which gets (7) ….. the point and clearly demonstrates your knowledge of the customer's
needs, will invariably be better received.
(8) ….. a general rule, the more important the person, the shorter your letter should be.
Managing Directors are deluged (9) ….. mail. They rarely have time to do more than glance
(10) …… it and are unlikely to respond (11) …… your letter themselves. So (12) …… writing
to MDs be brief. Junior managers, (13) ….. the other hand, are generally looking (14) …..
ideas they can pinch and present to the boss as their own. Send them long and informative
letters.
According (15) ….. Mark McCormack, author of What They Don’t Teach You (16) … Harvard
Business School, different levels of management are responsive (17) …… different sales
approaches. Senior management is usually looking for strategic solutions (18) ….. long-term
problems which fit (19) ….. with their corporate goals. Middle managers want tactical
answers to departmental problems which will make their lives simpler and which they can
16
Just Business Unit 5 Brand Management
easily justify (20) …… their bosses. What junior executives need is technical help to tackle
immediate problems. Adapt your proposal accordingly.
If you've got three proposals to make to a customer, send three short letters instead of one
long one. It saves the reader having to wade (21) ….. a lengthy document and it obviously
makes it easier to pass the proposals (22) ….. to the appropriate people. (23) ….. all, it
makes an impression. It shows style.
Some of the best sales letters don't look like sales letters (24) ….. all. Get someone in your
research department to write you a memo outlining how, with your help, your prospect's
company could be improving its business. Then send the memo (25) ….. to the company
explaining how you thought it might be (26) ….. interest. Make your sales letter sound like
'inside information' and you'll make it compulsive reading.
Remember, there's no such thing as a good sales letter that nobody reads. And because the
meaning of the message is the response it gets, you can go a long way (27) ….. anticipating
the response you'll get before you write a single word.
Speaking 1
On behalf of a sales expert present these ideas to a sales team. You may make
notes below.
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
______________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
______________________________________________________________
17
Just Business Unit 5 Brand Management
Speaking 2
BRAND POSITIONING
Student A
Brand positioning is the set of characteristics which makes a product different from other
products on the market. Clear positioning helps to make a product attractive to a target
group of consumers. With clear positioning, a brand then establishes its identity. This
determines what consumers think about a product.
You work for a cosmetics manufacturer. You are part of a discussion group which must
produce recommendations to the Board on ways to establish a clear brand positioning for
your hair care products. A survey of consumer attitudes to your products produced the
following results, summarized in a memo:
INTERNAL MEMORANDUM
Re: Hair Care Products - Market survey
Leaf range - market perception is that it is an old product for older people
Most Leaf products associated with problems - not solutions, e.g. medical treatment for
difficult hair, dandruff, greasy hair, dry hair, bad skin, etc.
Telephone a colleague. Tell him/her:
•
about the report
•
that he/she is one of the new discussion group set up to discuss it
•
explain that you have to meet
•
arrange a time to discuss the report
In the meeting, suggest the following action. Reach decisions on what to do.
YOU:
•
think the research shows that the positioning has been a complete failure
•
want a new marketing campaign aimed at younger consumers
•
want to rename the product range (suggest a name if you can)
•
need endorsement from a famous youth role model from sport or television (suggest
possible names)
•
suggest a major television commercial as a product launch
•
insist on dropping the term medicated treatment from the packaging
You start.
18
Just Business Unit 5 Brand Management
Student B
Brand positioning is the set of characteristics which makes a product different
from other products on the market. Clear positioning helps to make a product
attractive to a target group of consumers. With clear positioning, a brand then establishes
its identity. This determines what consumers think about a product.
You work for a cosmetics manufacturer. A colleague telephones you with news of a survey
on consumer attitudes to your Leaf range of shampoos and conditioners. When Student A
telephones you:
•
find out what it is about
•
say you are extremely busy
•
ask when he/she wants to come to see you
•
agree a time, but it is difficult for you, as you have many appointments.
Later, in your meeting to discuss the report, try to reach a decision on what to do.
YOU:
•
think the Leaf range is quite successful with its present brand identity
•
suggest ways to build on the results of the survey to improve Leaf sales
•
suggest an entirely new range to appeal to younger consumers - a new range with a
completely different brand identity
•
think you can use almost the same product as the Leaf range, but with different
colours, name and packaging
•
suggest a new name for the new range
•
are worried about the cost of a massive advertising campaign
•
think TV advertising is the best way to sell hair care products - but it is also the most
expensive
•
think that magazine advertising would be much cheaper.
•
Discuss ideas with your colleague and decide on a minimum of ten key actions to
take.
Your partner starts.
Writing
Write a memo to your Marketing Director reporting on the results of your meeting.
Cover all the points you negotiated. You can write a short report in the form of a
memo.
19
Just Business Unit 5 Brand Management
Speaking 3 (OPTIONAL)
Work in pairs or small groups to develop a competitive new product to challenge
an established brand name.
1. Identify a household name. You should choose a product either in one of the fastmoving consumer goods markets such as food, soft drinks, alcoholic drinks, cigarettes,
or cosmetics. Alternatively, choose a product from the luxury branded goods market
such as perfume, watches, or fashion.
TARGET BRAND: …
2. Investigate the popularity of the brand name. Identify three factors which contribute to
the universal appeal of the product. Is it a unique product? If so, what are its special
characteristics? If not, to what does it owe its popularity? Is it quality, image,
availability, or price?
MAIN SELLING POINTS 1 …. 2. … 3. …
3. Come up with an idea for a new product to compete with the brand name. Consider the
following: market positioning (upmarket or downmarket?), pricing strategy, main selling
points in comparison with the brand name, packaging, advertising.
DETAILS & FEATURES: ...
NAME OF NEW PRODUCT: ...
4. Produce a consumer profile of the customer you are trying to attract. You need to take
account of age, sex, socio-economic group, and lifestyle.
CONSUMER PROFILE: ...
5. Devise a simple slogan to promote the product.
6. SLOGAN: ...
Finally, present your idea to the others as one of the following:
An R&D team — seeking the go-ahead for the new product from the board.
Sales managers — briefing your reps on the new product.
Sales reps — highlighting the features of the new product to the purchasing department of
a major retail outlet.
20
Just Business Unit 5 Brand Management
Vocabulary: Translate into English.
1
Им пришлось снизить цены в этой беспощадной борьбе (не на жизнь, а на смерть), чтобы
сохранить свою долю рынка.
2
Многие супермаркеты продают товары, выпускаемые под их собственной маркой.
3
Рынок наводнён дешёвыми имитациями известных товаров.
4
Как табачные компании могут получить дополнительный доход и повысить популярность /
узнаваемость своих брендов среди потребителей?
5
Сколько хорошо известных названий товаров народного потребления вы можете назвать за
1 минуту?
6
Когда крупные корпорации, продающие товары под хорошо известными брендами, снижают
цены, мелкие компании не выдерживают конкуренции и разоряются.
7
Компании, производящие предметы роскоши, требуют применения суровых мер по борьбе с
пиратством.
8
По результатам исследования рынка, 80-90% всех новых брендов терпят неудачу на рынке
в течение первых 6 месяцев.
9
Из-за резкого увеличения товарной массы и затоваренности магазинов честная конкуренция
перерастает в ожесточенную борьбу за доминирование на рынке.
10
Предприятия
розничной
торговли
и
дистрибьюторы
потребителю с наценкой, чтобы получить прибыль.
21
продают
товары
конечному
Just Business Unit 5 Brand Management
11
Рыночная стоимость наших активов превышает их официальную стоимость в несколько раз.
12
В
результате
финансового
кризиса
спрос
на
товары
длительного
пользования
упал. Компания на грани банкротства.
13
Вы придаете слишком большое внимание одежде. Нельзя быть таким привередливым.
14
Мы не привыкли сдаваться без борьбы, но нам трудно противостоять агрессивной рекламе
наших конкурентов.
15
Вы продаете товар по завышенной цене, в то время как ваши конкуренты предлагают
хорошее соотношение цены и качества.
22
Just Business Unit 5 Brand Management
Useful Words and Word Partnerships to the section A Follower of Fashion?
1
brand loyalty
приверженность бренду
2
brand-awareness
осведомленность о торговой марке/бренде
3
brandstretching
расширение диапазона бренда, включение в бренд
новых категорий товаров и услуг
4
brand war
война брендов
5
own-label products
товары, выпускаемые под маркой магазина
6
me-tooism
подобные товары конкурентов
7
subliminal advertising
реклама, действующая на подсознание
8
lookalike products
дешёвая имитация известных товаров
9
market saturation
насыщение рынка
10
be choosy about clothes
привередливый в плане одежды
11
be fussy about smth.
придающий большое внимание
12
Mickey Mouse fake Rolex
полная имитация Ролекса
Useful Words and Word Partnerships to the text Brand Management
1
aggressive advertising
агрессивная реклама
2
reach fever pitch
достичь небывалого уровня
3
pour millions into R&D
вкладывать значительные средства в исследования и
разработки
4
slash prices
резко снизить цены
5
cut-throat struggle
беспощадная борьба (не на жизнь, а на смерть)
6
knock 40 c off
сбавить цену на 40 центов
7
lesser brands
некрупные торговые марки
8
go to the wall
обанкротиться/разориться
9
fair competition
честная конкуренция
10
escalate rapidly into an all-out war
быстро перерасти в тотальную войну
11
corporate heavyweights
основные, крупные компании; тяжеловесы
12
fast moving consumer goods
товары повседневного спроса
13
give in without a fight
сдаваться без борьбы
14
unchallengeable
непобедимый
15
supermarket chain
сеть супермаркетов
16
secure 15 % of the UK market
закрепить за собой
17
be quick to respond
быстро отреагировать
18
be overpriced
продаваться по неоправданно завышенной цене
19
mark-up
наценка
put a high mark-up on
ставить высокую наценку
20
spend a fortune on
тратить состояние на
21
book value = official value
официальная стоимость
22
household name
хорошо известное название
23
generate additional revenue =
получить дополнительный доход
extra income
24
tough restrictions on tobacco ads
жесткие ограничения на рекламу табака
23
Just Business Unit 5 Brand Management
25
high-street brands
основные бренды
26
luxury branded goods
компании, производящие предметы роскоши
manufacturers
27
call for a crackdown on pirates
требовать применения суровых мер,
направленных на борьбу с пиратством
28
fake
подделка
29
product proliferation/clutter
увеличение товарной массы, затоваренность
30
anti-consumerism movement
антипотребительское движение
31
consumer durables
потребительские товары длительного
пользования
32
consumer non-durables
потребительские товары недлительного
пользования
24
Just Business
Unit 6
Prices and Commodities
Unit 6 Prices and Commodities
“It is not the employer who pays wages; he only handles the money. It is the
product that pays wages.”
LEAD –IN
Henry Ford (1863 – 1947), American industrialist
Comment on the quotations below. Do you agree or not? Explain your position.
•
The price of anything is the amount of life you exchange for it. Henry David Thoreau
(1817-1862), American essayist, poet and philosopher
•
Price is what you pay. Value is what you get. Warren Buffett, an American business
magnate, investor, and philanthropist
•
Pricing is actually pretty simple... Customers will not pay literally a penny more than the
true value of the product. Ron Johnson, an American businessman
•
You need to look no further than Apple's iPhone to see how fast brilliantly written
software presented on a beautifully designed device with a spectacular user interface will
throw all the accepted notions about pricing, billing platforms and brand loyalty right out
the window. Edgar Bronfman, Jr., an American businessman who served as CEO of
Warner Music Group 2004 to 2011
Value for Money
Do the quiz below with your partner and compare how money-cautious both of
you are.
1
How much cash do you have with
you at the moment? Do you:
a) know exactly?
b) know approximately?
c) not know at all?
4
If you go for a meal with someone
you do not know well, do you
a) offer to pay the whole bill?
b) suggest dividing the bill into equal
parts?
c) offer to pay the whole bill but expect
them to pay next time?
d) try to avoid paying anything?
2
Do you normally check:
5
3
a) your change?
b) your bank statements and credit
card bills?
c) restaurant bills?
d) your receipts when shopping?
e) prices in several shops before you
buy something?
Do you:
What do you think about people who
do not pay the correct amount of
tax? Is this:
a) a serious crime?
b) morally wrong but not a crime?
c) excellent business practice?
6
If you lend a colleague money and
they forget to pay it back, do you:
a) say nothing?
b) remind them that they owe you
money?
c) arrange to go for a drink with them
and say you've forgotten your wallet or
purse?
a) give money to beggars?
b) give money to charities?
c) give away used items, such as
clothing?
25
Just Business
Unit 6
Prices and Commodities
What is the most expensive thing you've ever bought for cash?
What's the best bargain you've ever picked up? Have you ever been badly ripped off?
Discuss
Since the only legitimate object of doing business is to make a decent profit, few things can
be as important as the price tag you put on what you sell. But price is actually one of the
hardest things to determine, and it’s not so much a question of what a thing is worth as
how much you can reasonably expect to get for it.
Discuss these questions in small groups.
1
Which of these is most important when deciding what price to give a product?
•
covering costs
•
what the market will bear
•
competitors' prices
•
maximising profits
•
giving the customer a good deal
•
signalling quality
•
maximising sales
•
giving distributors a good deal
•
attracting new customers
2
Decide on the right retail price for these items.
a New mid-range car from Ford
•
Costs of production, distribution and marketing per unit: €7,000
•
Equivalent Volkswagen retails at €15,000
•
Equivalent Daewoo retails at €8,000
b 200g perfume
•
Costs per unit: €1.50
•
Equivalent drugstore's own brand retails at €3
•
Equivalent from Chanel retails at €50
Compare your answers with the information in the text below.
Business Brief
Read the texts and do the exercises below.
Price forms the essential basis of commercial transactions. It is a value, or the
amount of money, that will purchase a definite quantity, weight, or other measure of a
good or service.
It may be fixed by a contract, left to be determined by an agreed upon formula at
a future date, or discovered or negotiated during the course of dealings between
the parties involved. In commerce, price is determined by what
26
Just Business
Unit 6
Prices and Commodities
(1) a buyer is willing to pay,
(2) a seller is willing to accept, and
(3) the competition is allowing to be charged. With product, promotion, and place of the
marketing
mix,
it
is
one
of
the business variables over
which organizations can exercise some degree of control.
No matter what type of product you sell, the price you charge your customers or
clients will have a direct effect on the success of your business. Though pricing strategies
can be complex, the basic rules of pricing are straightforward:
•
All prices must cover costs and profits.
•
The most effective way to lower/reduce prices is to lower/reduce costs.
•
Review prices frequently to ensure that they reflect the dynamics of cost, market
demand, response to the competition, and profit objectives.
•
Prices must be established to ensure sales.
Before setting a price for your product, you have to know the costs of running
your business. If the price for your product or service doesn't cover costs, your cash flow
will be cumulatively negative, you'll exhaust your financial resources, and your business will
ultimately fail.
Most important is to add profit in your calculation of costs. Treat profit as a fixed
cost, like a loan payment or payroll, since none of us is in business to break even.
Pricing is one of the most important decisions a marketer must make regarding a
product since price plays a crucial role in competitiveness and consumer demand. Marketers
must determine the price at the initial stage of a product's life and re-evaluate pricing to
manage the delicate balance between production and profits.
If producers charge high prices, their goods are high-priced. However, if their
products are overpriced, they can price themselves out of the market. Goods can also
be mid-priced and low-priced. A producer may be selling goods at bargain prices, at
cost (what they pay for them) or at a loss (even less) which is below the ‘official’ list
price or recommended retail price. This policy of discounting, selling at a discount
price (at a discount to the list price), or selling loss leaders usually attracts customers to
shops.
When you tell a customer the price you will charge them for a product or service, you
quote the price or give the customer a quote (quotation) for doing some work.
Upmarket and downmarket (BrE)
AmE: upscale, downscale
Products, for example skis, exist in different models. Some are basic, some more
sophisticated. The cheapest skis are low-end or bottom-end. The most expensive ones
are high-end or top-end products, designed for experienced users (or people with a lot of
money). The cheapest entry-level skis are for beginners who have never bought skis
before. Those in between are mid-range. If you buy sophisticated skis to replace basic
ones, you trade up and move upmarket. If you buy cheaper skis after buying more
expensive ones, you trade down and move downmarket.
27
Just Business
Downmarket
can
show
disapproval.
If
a
Unit 6
Prices and Commodities
publisher
takes
a
newspaper
downmarket, they make it more popular, but less cultural, to increase sales.
Mass markets and niches
Mass market describes goods that sell in large quantities and the people who buy
them. For example, family cars are a mass market product. A niche or niche market is a
small group of buyers with special needs, which may be profitable to sell to. For example,
sports cars are a niche in the car industry.
Word combinations with 'price'
price
boom
a good period for sellers, when prices are rising quickly
controls
government efforts to limit price increases
cut
a reduction in price
hike
an increase in price
war
when competing companies reduce prices in response to each other
leader
a company that is first to reduce or increase prices
tag
label attached to goods, showing the price; also means 'price'
Exercise 1 Complete the sentences with the appropriate form of the words from
the texts above.
1
Today’s ……………………. clothes look almost as good as …………………. designer clothes.
2
Supermarkets sometimes sell bread as a ………………
……………………. to bring in
customers for other, more expensive goods.
3
I got a number of suppliers to ………………. me their best prices.
4
They ………………….. the same prices in all their restaurants.
5
For a limited period only, all our carpets are being sold ….. ….. ……….. .
6
A ………….. policy is the policy by which a company ………………… its wholesale and
retail prices.
7
The prices are ………….. and will remain unchanged till the end of the year.
8
A price .................... by Mills may indicate the start of price increases by other
producers.
9
Britain's house price .................... has gone beyond London, with properties in Kent
now worth 25 per cent more than a year ago.
10
Consumers will get price .................... of eight per cent off phone bills from May.
11
When President Perez ended price ...................., electricity, phone and transport
costs went up.
12
Petron is a price ....................; it's usually the first to offer lower prices.
13
The project had many design problems, pushing up the price .................... for each
helicopter from $11 million to $26 million.
14
There is a price .................... between Easyjet and KLM on the London to
Amsterdam route.
28
Just Business
Unit 6
Prices and Commodities
Exercise 2 Correct the mistakes in italics, using expressions from the text above.
corrections
I'm Denise van Beek, from sailing boat company Nordsee Marine.
We have something for everyone. If you've never sailed before,
try our (1) mid-range model, the Classic. It's six metres long and
very easy to sail. After a year or two, many customers (2) trade
down or (3) take upmarket to something more (4) basic, like the
(5) entry-level nine-metre Turbosail, with more equipment and a
bit more luxury. Our (6) bottom end product is the Fantasy. It's
15 metres long and has everything you need for comfort on long
voyages. We also produce the Retro, a traditional boat. There's a
small but profitable (7) mass market for this type of boat.
Listening: Listen to the text about price forming and answer the questions
below.
1
What is the difference between tradeable and non-tradeable goods? What examples are given?
2
How much is a mark-up on a can of Coke?
3
What makes Philip Morris the most profitable company in the world?
4
What are the cause and effect relations between the price and the product profile?
5
How do market forces affect prices?
6
How do governments support domestic producers of commodities?
7
How different are prices for food in the USA, Central and South America, Europe and
Japan? Why do they vary so much?
29
Just Business
Unit 6
Prices and Commodities
8
How effective was the last round of GATT (General Agreement on Tariffs and Trade)?
9
How do taxes affect prices?
10
Where is it worth buying a Jaguar? Give the reason.
11
What is worth buying in the UK/France/Germany?
Reading and language
Read the text If the price is right and do the exercises below.
If the price is right
It may be true that everyone has their price, but the same can't be said of products.
Products don't have a price -at least, not a fixed one. If they did, prices would not vary so
much from country to country.
A personal computer wouldn't cost twice as much in the UK as it does in the States
and you wouldn't need to take out a bank loan to buy a coffee in the Champs-Elysees. Of
course, strictly speaking, the computer is tradeable and the coffee non-tradeable. For
tradeable goods are exported all over the world, but non-tradeables have to be consumed
where they are produced. And, since a refreshing cafe noir halfway up the Eiffel Tower can
only be purchased in Paris, frankly, they can charge what they like for it. But, tradeable or
not, as every salesperson knows, "The price of a thing is what it will bring." And when it
comes to price, the buyer is his own worst enemy. Show me a high price and I'll show you
too many customers prepared to pay over the odds.
The truth is, people pay the price they deserve. A massive 20% mark-up does not
stop people buying 370 million cans of Coke a day. And with profit margins of up to a
phenomenal 50%, Marlboro cigarettes can still gross nearly $40 billion a year and help
make Philip Morris the most profitable company in the world.
In fact, product-pricing lies at the very heart of the marketing process itself. Its
impact is felt in sales volume, in the product's contribution to overall profits and, above all,
in the strategic position the product occupies in the market place. For a higher price will
often raise a product's profile and a high product profile commands a higher price. Product
30
Just Business
Unit 6
Prices and Commodities
profile is basically the difference between a Rolex and a Timex, a bottle с Chanel No.5 and a
bottle of Boots No.7. So of course, is price.
But it isn't as simple as that. Economic, as a well as market, forces are at work. If
they were not, we might expect international competition to equalize prices everywhere but,
in spite of all the talk of a single market, a borderless Europe and a common currency,
prices remain alarmingly elastic And what goes for a song in one country can cost a bomb in
another. For one thing, most commodities particularly agricultural products, are usually
heavily subsidized. So, in the absence of free trade, food will tend to be cheap in the USA,
cheaper still in Central and South America, expensive in Europe and outrageously so in
Japan. Trade barriers compound the problem. For, sadly, those who took part in the
Uruguay round of GATT could barely reach general agreement on where to have lunch.
So how do you put a price on things? An everyday supermarket item in one country
might be a luxury item in another and cost considerably more. Scotch, for instance, is a
mass market product in Aberdeen but understandably a niche market product in Abu Dhabi.
No prizes for guessing where it's cheaper.
Then, of course, there are taxes. By imposing wildly different rates of tax on
otherwise homogeneous commodities like petrol, governments distort prices even further. If
you're driving through Europe you'd certainly do better to fill up in Luxembourg than in
Italy. Tax is also the reason why a Jaguar car costs less in Brussels than in Britain, where it
was built.
So buy your car in Belgium, your fridge and other 'white goods' in the UK; stock up
on medicines in France and on CDs in Germany. That way you'll be sure to get the best
deal. For where you spend your money is most as important as what you spend it on, but
neither is as important as the fact that you’re prepared to spend it. In the words of film
actor Cary Grant, "Money talks, they say. All it ever said to me was Goodbye."
Exercise 1 Without referring back to the article, how much can you remember
about?
1.
computers
2.
Coca-Cola
3.
Marlboro cigarettes
4.
Rolex and Chanel
5.
food
6.
GATT
7.
Scotch whisky
8.
Jaguar cars
9.
Fridges
10. CDs
31
Just Business
Unit 6
Prices and Commodities
Vocabulary
Exercise 2 Look back at the article If the Price is Right and find the expressions
which mean:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
be different in different countries (par.1)
borrow money from a bank (par.2)
be absolutely accurate (par. 2)
goods that have to be consumed where they are produced (par. 2)
ask somebody to pay a particular amount of money for something (par. 2)
pay more for something than it’s worth (par. 2)
be worth (par. 3)
unprecedented (par. 3)
earn a total amount of money before costs and tax have been taken away (par. 3)
be the most important or basic part of something (par. 4)
influence, effect (par. 4)
a position or reputation that gets somebody or something a lot of attention (par. 4)
dictate (par. 4)
effect of buyers’ and sellers’ behavior on supply and demand (par. 5)
make something the same in amount, size or importance (par. 5)
able to stretch (par. 5)
be very cheap (par. 5)
be very expensive (par. 5)
basic food products or fuel that can be bought and sold (par. 6)
pay part of the cost (par. 6)
make something worse (par. 6)
hardly (par. 6)
a market for a product or service, perhaps an expensive or unusual one, that does
not have many buyers (par. 7)
introduce something and force people to accept it (par. 8)
of the same type (par. 8)
change something so that it becomes unrecognizable (par. 8)
buy something at the lowest price (par. 9)
money will get you anything (par. 9)
Exercise 3 Now match the following words and phrases to complete these notes on
the article you read earlier. Referring back to the text will help you. The first
sentence has been done for you as an example.
SUBJECT
VERB
COMPLEMENT
1
2
3
Tradeable goods
Non-tradeables
Too many customers
are consumed
are prepared
are exported
to pay over the odds.
all over the world.
where they are produced.
4
5
6
People
Product pricing
Its impact
lies
is felt
pay
the price they deserve.
in sales volume and profits.
at the heart of the marketing process.
7
8
9
Every product
A high price
A high product profile
usually commands
occupies
often raises
a product's profile.
a higher price.
a strategic position in the marketplace.
32
Just Business
10
Unit 6
Prices and Commodities
are heavily
at work.
11
12
Economic and market
forces
Prices
Most commodities
are also
remain
subsidized.
elastic.
13
14
15
Trade barriers
Different rates of tax
Governments
distort
compound
are imposed
on homogeneous commodities.
prices even further.
the problem.
Now link these notes together to produce a short summary of the article. You will
need some of the extra words and phrases given below to connect up the facts.
The first sentence has been done for you.
however
therefore
for
whereas
in fact
the fact is
for example
for one thing
so, basically
by
nevertheless
moreover
actually
while
thus
Whereas tradeable goods are exported all over the world, non-tradeables are consumed
where they are produced. But in both cases too many customers ...
Exercise 4 The following business words appeared in the article in the order in
which they are listed. How many of their word partners can you find in just five
minutes?
Business
Word
1. tradeable
2. profit
3. product
4. sales
5. overall
Word
Partners
Business
Word
6. strategic
7. product
8. market
9. borderless
10. common
Word
Partners
Business
Word
11. free
12. trade
13. luxury
14. mass
15. niche
Word
Partners
Exercise 5 Decide whether the following expressions mean expensive or cheap.
1
2
3
4
5
6
7
8
9
expensive
It cost the earth.
It cost a bomb.
It was going for a song.
It cost peanuts.
It cost a fortune.
They were practically giving it away.
It cost an arm and a leg.
It was a real bargain.
It cost a packet.
33
cheap
Just Business
Unit 6
Prices and Commodities
Exercise 6 In each example, use the word in CAPITALS to make another form of
the word, which will fit in the sentence.
1.
TRADE
… goods are exported all over the world.
2.
TRADE
China is rapidly becoming one of the world's main … nations.
3.
PROFIT
Unfortunately, the product didn't turn out to be very ....
4.
PROFIT
The ratio of net profit to sales will give us an idea of the company's overall …
5.
PROFIT
I think we have all ... from a sharp increase in demand.
6.
COMPETE
We've lost market share because our products are no longer ....
7.
COMPETE
In the oil industry our main ... are obviously the Arabs and the Americans.
8.
COMPETE
With so many similar products available already, the ... is very stiff.
9.
PRICE
It's high time we had a thorough review of our ... policy before we ... ourselves out of the
market.
10.
PRICE
Some of their products are a bit.... We can get the same thing cheaper elsewhere.
Exercise 7 All the words below form strong partnerships with the words prices and
price, but the vowels are missing from each word. How many can you work out?
Verb + price(s)
Adjective + price(s)
price + Noun
1 c___t
10 f__x__d
18 c___t
2 f___x
11 c__mp__t__t__v__
19 w__r
3 sl___sh
12 r__ __s__n__bl__
20 r__s__
4 r__d__c__
13 __ttr_ct__v__
21 r__d__ct__ __n
5 r__ __s__
14 __l__st__c
22 s__ns__t__v__ty
6 q__ __t__
15 __nb__ __t__bl__
23 __l__st__c__ty
7 fr__ __z__
16 d___sc__ __nt
24 __nd_x
8 __q__ __ l__z__
17 b__rg_n
25 h__k__
9 ch__rg__
26 t__g
27 l__ __d__r
34
Just Business
Unit 6
Prices and Commodities
Exercise 8 Complete the sentences using some of the word partnerships above.
1.
If we accept your offer, we will expect you to ______ prices at their present level for
the next 12 months.
2.
If we all keep reducing our prices, we'll end up with a price ______ on our hands.
3.
You can't buy cheaper. Our prices are not just ______, they're ______.
4.
We more than cut our prices — we ______ them by 35%!
5.
The price of most things is pretty ______. It depends on where you buy them and what
the demand is.
6.
Talk about a price ______! They've practically doubled their prices every six weeks!
7.
We think the price you've ______ us is very reasonable. You've got yourself a deal.
8.
Acute price ______ has prevented us from raising our prices.
Exercise 9 Rearrange the following to make useful business expressions. The first
word is in the right place.
1.
Let's figures talk.
2. Just a look figures take the at.
3.
Can us you a figure rough give?
4.
How these at did arrive you figures?
5.
Where these did from come figures?
6.
The speak figures themselves for.
7.
The encouraging not very are figures.
8.
Can it you a on put figure?
Which of the above expressions mean:
a.
you want an approximate figure?
b.
the figures are bad?
c.
the figures need no explanation?
d.
you're not sure you believe the figures? (two expressions)
e.
you want a fairly precise figure?
Discuss
Work in pairs and discuss the following:
1. How aware do you think consumers usually are of exactly what you are buying?
2. What measures could be introduced to remedy this?
3. Think of a commodity or a product. Decide on a price for it. This price should be much
higher than its actual price. Persuade your partner that it is worth this high price.
35
Just Business
Unit 6
Prices and Commodities
Trends
In business and everyday English, you sometimes have to describe changes in trends
(movement or tendency), graphs, and diagrams.
In the business context, you may have to describe trends in reports, meetings, and
presentations. In everyday life, you could describe changes in any subject because things
change all the time!
Speaking about changes and trends generally you may have to:
•
describe movement;
•
describe speed or size of the movement;
•
explain the reason or consequence of the change.
Exercise 1 Match the descriptions on the right to the graphs. Draw the missing
graph.
MANUFACTURERS’ SHARES OF TOTAL
MARKET (% by value)
up to MARCH 2012
40
2. Sales of Associated Chocolates
stood at about 42 per cent at the
beginning of the period, fell slightly
in the first year and then declined
more steeply until 2010. At the
beginning of 2010 sales bottomed
out and for the last year they have
remained stable.
a
% OF TOTAL MARKET
35
30
25
3. Greenbackers started at about 10
per cent and picked up steadily.
Since 2010 they have been gaining
ground at a slightly higher rate.
20
15
b
10
c
5
d
2008
2009
1. Britannia Biscuits started at about
four per cent and rose fairly steadily
until 2010. They have only risen
slightly over the last year.
2010
2011
2012
4. Darlings’ sales started at about 33
per cent and dropped in the first
year. They recovered slightly in
2010, slid slightly in 2011 and they
plunged in 2012. For the last year
they have remained flat.
5. Others have remained constant at
about 15 per cent.
36
Just Business
Unit 6
Prices and Commodities
Exercise 2 The financial press is full of expressions of change and development.
Match each verb below with the type of change it describes and put it in the
appropriate column.
slump
rise
recover
plunge
pick up
plummet
drop
soar
bounce back
take off
climb
rally
fluctuate
fall
stabilise
slide
flatten out
crash
hold steady
escalate
decline
rocket
dip
surge
hike
collapse
remain firm
slip
leap
sink
expand
double
shrink
grow
halve
jump
improve
increase
strengthen
weaken
deteriorate
decrease
1
2
3
4
5
6
7
Exercise 3 If somebody or something influences prices or other economic
indicators we use transitive verbs of change. Match each verb below with the type
of change it describes and put it in the appropriate column.
reduce
hike
escalate
cut
put up
raise
slash
boost
flatten out
lower
stabilize
push up
bring down
double
halve
1
2
3
4
5
37
Just Business
Unit 6
Prices and Commodities
Exercise 4 Match each phrase on the left with its closest synonym on the right.
1
2
3
4
5
6
7
8
drop by 50%
rise by 100%
get better
get worse
bounce back
grow
put up
bring down
a
b
c
d
e
f
g
h
deteriorate
recover
double
raise
expand
lower
halve
improve
Exercise 5 Which of the verbs in the box are synonyms for the verbs below?
peak
level out/off
reach an all time high
bottom out
reach a peak
fall to an all time low
hit a low
stabilise __________________________________________________
reach a maximum ___________________________________________
fall to the lowest level ________________________________________
Exercise 6 Match each verb on the left with its closest antonym on the right.
1
2
3
4
5
6
rise
raise
take off
expand
fluctuate
peak
a
b
c
d
e
f
plummet
be flat
bottom out
fall
lower
shrink
Exercise 7 Complete each sentence with a phrasal verb from the box.
bounce back
bottom out
put up
bring down
slip back
level off
pick up
take off
1. If your prices are too high, you have to ............. them ........... .
2. If your prices are too low, you have to ........... them ............ .
3. If sales reach their lowest level, they........................... .
4. If sales recover after a period of downward movement, they ........................... .
5. If sales go up a little after being flat for some time, they ........................... .
6. If sales go up a lot after being flat for some time, they ........................ .
7. If profits were going up – or down – and then become stable, they ...................... .
8. If profits go down a little after a period of growth, they ...................... .
38
Just Business
Unit 6
Prices and Commodities
Exercise 8 Underline the correct words in italics.
1. The verbs ‘rise’ and ‘grow’ are similar. However, rise/grow is more common for longer
periods of time, and where there is a total increase in size (e.g. describing the
economy).
2. The phrasal verb ‘grow up’ refers to the change from being a child to being an adult. It
can also/cannot be used to refer to things like profits, the economy.
3. The phrasal verb ‘fall down’ refers to movement towards the ground. It can also/cannot
be used to refer to things like sales, profits.
4. We can ‘raise/lower’ prices or ‘put up/bring down’ prices. However, the first two
examples/last two examples are slightly more formal, and can refer to a change in the
level or standard of something as well as prices.
Exercise 9 Put a tick (V) if the sentence is possible. Put a cross (X) if it is not.
1. We cut costs by 5%.
2. We declined costs by 5%.
3. Our productivity declined by 5%.
4. Profits reduced by 5%.
5. We reduced our staff turnover by 5%.
6. We raised prices by 2%.
7. We picked up prices by 2%.
8. Inflation raised by 4%.
9. Inflation rose by 4%.
10. We increased sales by 3%.
11. Sales increased by 3%.
12. We recovered sales by the end of the year.
13. Sales recovered by the end of the year.
Exercise 10 The -ing form of many verbs can be used as an adjective, eg an
increasing demand for oil. Make adjectives from the verbs in the box using the
information in brackets.
expand
grow
rise
shrink
1.
_____________ budget (decreasing in size)
2.
_____________ business (increasing in size)
3. ______________ problem (increasing over a long period)
4. ______________ inflation(Increasing)
5. ______________ costs (reaching a very high level)
39
soar
Just Business
Unit 6
Prices and Commodities
Exercise 11 Fill in the missing letters in these adverbs using the information in
brackets.
Sales increased …
1.
2.
3.
4.
5.
6.
7.
8.
ra____________ly (quickly)
gr____________ly (slowly and by small amounts)
st____________ly (in a constant, regular way)
sli____________ly (a little)
mar___________ly (fractionally)
sig____________ly (in a large and noticeable way)
sh____________ly (suddenly and by a large amount)
dr____________ly (suddenly and surprisingly)
Note that ‘dramatically’ can refer to both good and bad changes (unlike in many
Latin languages).
Exercise 12 Put a tick (V) if the sentence makes sense. Put a (X) if it does not.
1.
2.
3.
4.
5.
Profits have risen steadily over recent years.
Sales plummeted marginally in July.
The price of oil soared gradually last year.
Share prices dropped back slightly last week.
Unemployment numbers leveled out sharply.
Exercise 13 You can use adjectives (marginal, slight, slow, gradual, steady, stable,
considerable, significant,
rapid, sudden, sharp, steep, dramatic) or adverbs
(marginally, slightly, slowly, gradually, steadily, considerably, significantly,
rapidly, suddenly, sharply, steeply, dramatically) to describe changes. Use either
adjectives or adverbs to complete the gaps.
Sales started the year at 30,000 units in January and went up ………….. to 31,000 units in
February. There was a ……… rise to 38,000 in March due to the introduction of a new price
discounting scheme. This was followed by a ……… fall in April when sales dropped ……… to
33,000 units.
Our competitors launched a rival product and this resulted in a ………….
decline to 25,000 in May. But we ran a summer advertising campaign and sales picked up
………… by 2,000 units a month throughout June, July and August until they stood at 33,000
in September. The …………. upsurge to 45,000 in October resulted from the launch of our
new autumn range. But then we experienced problems meeting demand and sales slumped
……… in November and remained ………….. at 39,000 in December.
Exercise 14 Write the nouns for these verbs.
1
2
3
4
5
6
7
8
cut
deteriorate
fall
grow
halve
expand
collapse
take off
9
10
11
12
13
14
15
16
improve
increase
recover
reduce
rise
drop
peak
surge
40
Just Business
Unit 6
Prices and Commodities
Exercise 15 Complete the sentences with correct prepositions.
1. There was a gradual rise ……. turnover throughout the year.
2. Sales increased ….. 73 units in January …… 94 units in December. That is, sales
increased ….. 21 units.
3. Starting ….. 176 units, sales have fluctuated …… a low of 153 and a peak of 200 in the
last twelve months, before ending …. 180 units last month.
4. Prices went up slightly …….. o.2 % in January.
5. In 2007 the price of wool stood …… $3.98 per kilo. It then rose slightly ….. 20 cents in
2008 before falling dramatically ….. $3.37 in 2009.
6. After falling ……. a low ……$3.60 in 2010, the price leveled …….
…….. $3.55 in 2011.
7. 2006 saw a significant drop ……. production when our turnover bottomed ……
……. just
over 10,000 units.
8. Last year started ……. a positive note. The market strengthened until February when it
almost peaked ….. 11,000.
9. There were no significant changes ……. our prices last year. They remained steady ……
$700 per unit.
10. Over the summer Dow Jones was flat trading ……. a range …… 10,300 …… 10,700.
Exercise 16 You can use different structures to describe trends and changes.
Which graph illustrates the movement described in these sentences?
a
b
c
d
e
f
g
h
i
j
k
l
1
The
market
is
showing
some
signs
of
7
There's been an upsurge of interest in gold.
growth.
2
The market is extremely volatile.
8
The share price bottomed out at 115p.
3
The pound slipped back against the dollar.
9
Sugar peaked at $400 a tone.
4
The Swiss franc is staging a recovery.
10
Profits will level off at around £1.1 bn.
5
The Euro lost ground slightly.
11
Sales hit an all-time low.
6
There's been a dramatic downturn in the
12
There hasn't been much movement in the
market.
price of tin.
41
Just Business
Unit 6
Prices and Commodities
Exercise 17 Study the sentences and then use the structures in bold to paraphrase
the sentences below. The words in brackets will help you.
A
1. At the beginning of the period prices stood at $80 per unit.
2. There was a steady fall in prices till the end of the year.
3. There was a plateau in sales from June to September.
4. We can see/witness a significant rise in prices in the third quarter.
5. Prices showed a dramatic rise of 10%.
6. After rising slightly for three months prices declined sharply by 10% from
$80 to $70 per unit.
7. After fluctuating for several months prices showed an upward trend.
8. The steep rise in prices was followed by a long period of volatility.
9. Before showing signs of growth prices fluctuated between $50 and $60.
10. By the end of the quarter sales showed an upward trend.
11. Prices were 5% up on last year.
B
1. Sales decreased dramatically in 2010 but in 2011 they rose to an all-time high.
(Before… )
2. Prices rocketed in June. (There was ….)
3. At the beginning of the year turnover amounted to $10,000. (… stood … )
4. In spring sales were not steady but in June they started picking up gradually. (After
…)
5. After crashing to an all time low of $5,000 sales rose sharply in March. (… was
followed by …)
6. Due to inflation prices have risen by 8% in comparison with last year. ( … on last
year)
7. Sales jumped from 200 to 250 units in the first quarter. (We can witness …)
8. There was a gradual rise in sales in 2010. (Sales showed …)
9. Sales remained flat till the end of the year. ( … plateau …)
10. After a long period of stagnation the economy started recovering. (…showed …
trend.)
11. We need to reduce costs sharply. (We need to see a …)
12. After a long period of stagnation the performance figures started improving. (…
upward trend…)
42
Just Business
Unit 6
Prices and Commodities
Exercise 18 Look at the figures below. In which month did these events
happen?
month
1 the autumn mail shot
September
2 a spell of cold weather
3 a move to larger premises
4 the installation of a call routing system
5 the launch party for the new season's designs
6 the annual sales conference in Brussels
Overheads
July
£
August
£
September
£
October
£
November
£
December
£
Rent
Gas and
electricity
charges
Postage costs
Travel costs
Telephone
charges
Entertainment
costs
690
560
950
560
950
600
950
1300
950
700
950
900
600
250
460
610
400
490
1500
320
280
590
12800
280
630
590
290
580
280
270
640
520
500
490
2100
650
a. Why did costs rise? Use result from.
The rise in rent resulted from a move to larger premises.
b. What effect did the events have on the company costs? Use result in.
A move to larger premises resulted in a rise in rent.
c. Study the sentences below. Which are reasons and which are results? Link
them with one of the phrases above.
1 The factory automation .................... an increase in productivity.
2 The staff reductions ............................... the factory automation.
3 The large pay rises ........................... a decrease in staff turnover.
4 The increase in sales costs .... the rise in spending on advertising.
5 The big orders from Japan ............................ a recovery in sales.
6 The shorter delivery times ............... the new distribution system.
7 The increase in competition ....... a decrease in our market share.
8 The rise in distribution costs ........... the increase in petrol prices.
43
Just Business
Unit 6
Prices and Commodities
Exercise 19 Use the information in the graph to complete the memo below.
Sales of SolPol April-December (in thousand Euros)
MEMORANDUM
To: All staff
From: Frank Dobson, Head of Sales
Date: 20 December ____________
Subject: Update on sales of SolPol
Many of you worked hard to make sure that the launch of our new soluble Paracetamol
tablets at the 5th International Products conference in April this year was a success.
Thanks to the continuing efforts of the Sales team I am pleased to say that sales are very
encouraging.
SolPol was launched in April and
The future is looking good for sales of SolPol so let's start looking for our next great
product!
44
Just Business
Unit 6
Prices and Commodities
Listening:
Listen to the story of the famous Sumitomo Bank copper scandal and answer the
questions.
1.
Why is investing in commodities such a high-risk business?
2.
Who was Mr 5%?
3.
How much money did he lose the Sumitomo Bank?
4.
Why do you think it took so long for the bank to find out what was going on?
Speaking and Listening
You are about to compete in the dangerous world of commodity trading. Work in
small groups. You will start off with US$100,000,000 of capital to speculate with
and may buy, sell or hold any or all of the seven commodities in which you trade.
Information Updates
Every ten minutes you will hear an information update detailing the current commodity
prices and giving you an up-to-the-minute forecast on likely changes in trading prices for
each commodity. On the basis of this information you should agree on what to buy, sell or
hold during this trading session. Keep a record of all your transactions. There are eight
trading sessions in all.
Your Objective
Your objective is to make as much money as possible by the end of the final session. You
may not borrow extra capital and may therefore need to fund purchases of a commodity
whose price you believe to be going up by selling your holdings in a commodity whose price
you think may be about to fall. Be careful — not all the forecasts are accurate!
Beware!
Remember, 85% of all commodity speculators get wiped out. Try not to be one of them!
Look for patterns and trends in the fluctuating price of each commodity and keep track of
which forecasts are the most accurate. Good luck!
45
Just Business
TRADING
SESSION
CAPITAL
GOLD
Start
US$100,000,000
0
$/troy
oz
Unit 6
Prices and Commodities
SILVER
$/ troy
COPPER
$/tonne
TIN
$/tonne
COFFEE
$/tonne
SUGER
$/tonne
OIL
$/barrel
0
0
0
0
0
0
oz
CURRENT
COMMODITY
PRICES
1
CURRENT
COMMODITY
PRICES
2
CURRENT
COMMODITY
PRICES
3
CURRENT
COMMODITY
PRICES
4
CURRENT
COMMODITY
PRICES
5
CURRENT
COMMODITY
PRICES
6
CURRENT
COMMODITY
PRICES
7
CURRENT
COMMODITY
PRICES
8
TOTAL ASSETS:
46
Just Business
Unit 6
Prices and Commodities
Writing
Describe this graph (sales, prices, etc.) using the active words from the Unit and
give possible reasons for the changes.
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
47
Just Business
Unit 6
Prices and Commodities
Vocabulary: Translate into English.
1
Не подлежащие экспорту продукты, в отличие от экспортируемых, потребляются
только там, где они производятся.
2
Ценообразование оказывает решающее влияние на объем продаж и общую
прибыль компании.
3
Посмотри на ценник. Этот пиджак стоит целое состояние!
4
Отношение (коэффициент) чистой прибыли к объему продаж дает представление о
рентабельности (доходности) компании.
5
Правительство наложило ряд ограничений на торговлю с зарубежными странами.
6
В различных странах аналогичные товары облагаются разными налогами.
7
В этом магазине все довольно дорого. В других местах те же самые вещи можно
купить значительно дешевле (по более низким ценам).
8
Цены, которые они запрашивают, значительно выше, чем в других компаниях. Не
48
Just Business
Unit 6
Prices and Commodities
вижу смысла в том, чтобы переплачивать.
9
Если бы правительства не субсидировали производство сельскохозяйственной
продукции, конкуренция на международном рынке могла бы уравнять цены.
10
К сожалению, продукт оказался неконкурентоспособным, и нам пришлось
значительно понизить цену.
11
Цены на потребительские товары в Европе достаточно эластичны из-зи
неустойчивости рынка.
12
Цены ниже наших вы просто не найдете. Мы предлагаем вам заключить сделку на
самых выгодных условиях.
13
Ваша газета опубликовала искаженные факты, и это только усложнило ситуацию.
14
Хотя евро признан единой валютой в большинстве стран Европы, цены на
однотипные товары разнятся от страны к стране.
15
Высокая цена продукта, как правило, повышает его значимость в глазах
покупателей и, наоборот, более значимый продукт продается по более высокой
цене.
49
Just Business
Unit 6
Prices and Commodities
Useful Words and Word Partnerships
1
2
fixed price
fix a price
tradeable goods
твердая цена
назначить цену
экспортируемые товары
3
non-tradeable goods
товары, не подлежащие экспорту
4
charge $ for smth.
взимать цену, начислять оплату
5
a massive 20% mark-up
значительная надбавка (наценка)
6
profit margin of $
маржа в (сумма)
7
product-pricing
ценообразование
8
impact on smb./smth.
влияние на кого-либо/что-либо
9
overall profits
общая прибыль
10
marketplace
рынок
11
raise a product’s profile
12
high product profile
command smth.
повышать значимость продукта в глазах
покупателя
13
market forces
соотношение спроса и предложения
14
borderless Europe
Европа без границ
15
common currency
общая валюта
16
commodities
сырьевые продукты (драг. металлы)
17
agricultural products
продукты сельского хозяйства
18
be outrageously expensive
быть невероятно дорогим
19
trade barriers
торговые барьеры
20
compound the problem
усложнить проблему
21
GATT (General Agreement on
Tariffs and Trade)
22
mass market products
Генеральное соглашение по таможенным
тарифам и торговле (стран Атлантического
союза)
товары массового потребления
23
niche market
рыночная ниша
24
impose different rates of tax on
облагать различными налогами
25
homogeneous commodities
однородные, гомогенные товары
26
distort prices
искажать цены
27
'white goods'
28
get the best deal
бытовая техника белого цвета (стиральные
машины, холодильники)
заключить сделку на самых выгодных условиях
приводить к чему-либо
Idioms
It
It
It
It
It
costs
costs
costs
costs
costs
Expensive
the earth
a bomb
a fortune
an arm and a leg
a packet
Cheap
It is going for a song
It costs peanuts
They are practically giving it away
It is a real bargain
50
Just Business Unit 7 Corporate Entertaining
Unit 7 Corporate Entertaining
“I don’t think meals have any business being deductible. I am for separation of
calories and corporations.”
LEAD –IN
Ralf Nader, born in 1934, an American political activist
1. Some companies seem only too happy to spend enormous sums of money on their best
clients in order to 'keep them sweet”. Does your firm do any kind of corporate
entertaining? Does this make good business sense or is it just another form of
corruption?
2. What about corporate gifts? What gifts have you ever received or would you be happy to
receive? When is a gift a bribe? And where do you draw the line?
3. Do you agree or disagree with the phrase “There’s no such a thing as a free lunch.”
4. Imagine you have to entertain a group of foreign businesspeople. Which of the following
activities would you choose? What would you add?
historic sites
bar/nightclub
theatre
opera/concerts
wine tasting
horse racing
motor racing
golf
football
tennis
restaurant
art galleries
5. Can you be bought? To find out how 'open to persuasion' you are, do the following test
in pairs:
What’s your price?
1. One of the suppliers tendering for a contract with your company invites you out
for lunch at a top-class restaurant in London to 'talk things over'. Do you...
a. Insist that you cannot be bought and promptly scratch the supplier's name from your
shortlist?
b. Politely refuse, saying that you never mix business with pleasure?
c. Take advantage of the situation by ordering a more expensive meal than you usually
have?
d. Give yourself a real treat - caviar, lobster, vintage champagne, the best brandy...?
2. You have been assigned to choose a venue for your company's annual
conference. The manager of one of the hotels you are considering lets it slip
that there could be a week’s holiday for you and your family. Do you...
a. Report him to his regional manager?
b. Smile and point out that free holidays are not a condition for winning the contract.
c. Gratefully accept a large en suite room with minibar and a view of the bay?
d. Ask him if he could manage a fortnight and include the use of a car?
3. The father of an applicant for a post in your company sends you a Rolex watch
and a case of Bollinger champagne for Christmas. Do you...
a. Send them back with a note saying: “Thanks, but no thanks”?
b. Return the watch, drink the champagne and forget the name of his son?
с. Give his son the job immediately and ask him if he has any other children looking for
work?
d. Write him a letter saying you never received the matching Rolex he obviously
intended for your partner?
For an analysis of your answers look at page 68.
51
Just Business Unit 7 Corporate Entertaining
Business Brief
Read the texts and do the exercise below.
Corporate hospitality, or entertainment, is defined as the practice of offering
meals or other recreation to business visitors.
It has been said that when two American or European businessmen meet, they are there to
do a deal, but in Asia they are there to establish a relationship. Entertaining in Asia is
often used to ‘size up’ a potential business partner – partner in the sense of future supplier
or joint venture associate. Asians will want to know more about the guest, their
background and their contacts before going ahead and doing business. This is an essential
part of the business process, not just polite etiquette.
Relationship building takes different forms in different places – invitations to karaoke
evenings in Japan or the yacht on the French Riviera are not to be refused. The demand for
corporate hospitality in the UK has been criticized for making events such as grand prix
racing or Wimbledon more expensive for ordinary people. But corporate sponsorship of
sport and culture brings in large amounts of money, and many such events benefit from this
overall.
Entertaining in the form of invitations to your host’s home exists in some cultures
but not others, where work and private life are kept entirely separate.
Socializing in another language is not easy. Small talk usually helps to break the
ice. Business socializing has its own set of rules and practices that are far different from
socializing with friends and family. It’s important to understand that no matter what you’re
doing, or with whom you’re doing it, attending corporate events is still part of your work.
A good rule is not to do anything that you wouldn’t do at the office during a regular working day.
Most social situations with clients include a meal. The traditional business lunch,
or power lunch, is a way to develop relationships, win future contracts, and gain
referrals. But it takes strategy and planning for your meeting to be successful.
Conferences are a wonderful way to network or make valuable contacts. If you arrange
a conference make sure you choose the right venue, so that the delegates feel
comfortable.
All the expenses/costs incurred by a company in entertaining its clients, partners or
company staff for business purposes are called entertainment expenses/costs. If an
employee incurs these expenses, they are required to be supported by documentary
evidence to qualify as deduction against income (are allowed to be deducted).
Vocabulary
Exercise 1 Give the words from the text for the definitions below.
1. spending time with other people at different events
2. meeting and talking to people to exchange information and advice about work or
interests
3. a business activity in which two or more companies have invested together
4. someone you work with or do business with
5. friendly and generous behavior towards visitors and guests
6. informal conversation about things that are not important
7. make people feel more relaxed and ready to talk
8. sending someone to another person for help, information or advice
52
Just Business Unit 7 Corporate Entertaining
9. organized occasion or planned activity
10. place where an activity happens
11. financial support given to pay for an event in exchange for advertising or to get public
attention
12. money that a business spends on taking customers to restaurants, theatres, etc., as a
way of making business deals easier to complete
13. lose, owe, or have to pay money as a result of doing something
14. take an amount from a total
Listening
Listen to the text about forms of corporate entertainment and answer the
questions below.
1
What do these figures refer to: 40 billion ( give three facts )
15,500
2
365?
What does BCCI stand for? What was it famous for?
3
What did the Ritz Hotel do to increase their turnover?
4
Who was allowed to take part in the competition?
5
What are the two aims of business lunches?
6
How do Fiat and Neckermann entertain customers?
7
What is special about corporate entertaining in Austria? Why does it seem to promise
a good return on an initial investment?
8
How can marketing change in the future?
9
What does the Pareto Principle say?
53
Just Business Unit 7 Corporate Entertaining
Reading and Language
Read the text Looking After the Twenty Percent and do the exercises below.
Looking After the Twenty Percent
There's no doubt about it, corporate entertainment is big business. In Japan, for
example, where relationship-building is a fundamental part of business life, a staggering 40
billion dollars of marketing expenditure goes on corporate entertainment annually. That's
roughly equivalent to the Republic of Ireland's GDP for 1993 or Venezuela's total foreign
debt. The infamous Recruit Group, which has been the subject of repeated scandals in
Japan, once paid fifteen-and-a-half thousand dollars for a single meal for a dozen
executives at a favourite restaurant. So it's easy to see how the money the Japanese spend
in a year on wining and dining important clients could add up to the cost of 365 brand-new
jumbo jets!
To some, corporate entertainment is merely an expensive and perhaps unnecessary
luxury. To those who take a dimmer view it's nothing short of bribery. But the truly corrupt
corporate entertainer is relatively rare. Famous fraudsters, the Bank of Credit and
Commerce International, did indeed specialize in 'sweetening' their most valued clients frequently international terrorists, drug barons and Third World dictators - with shopping
sprees in London and endless lines of credit at Las Vegas casinos. But this is a million miles
away from an everyday business breakfast at the Hilton or a power lunch at the Savoy. For
most successful business people would agree that goodwill is a crucial part of clinching
lucrative deals and these days goodwill costs more than a smile.
A few years ago, the Ritz Hotel, recognizing the major contribution made by
executive diners to its restaurant turnover, invented the award of Business Luncher of the
Year to honour, in their words, "the executive who does most to help the recovery of the
economy by lunching out". Only those who spent in excess of £5000 a year stood a chance
of winning but there was no shortage of candidates willing to compete.
What the Ritz was acknowledging is that business lunches are an important part of
corporate culture, whether to consolidate professional relationships between colleagues and
charge it to expenses or to manipulate over-cautious clients into an immediate agreement.
After all, it's rather difficult to reject your host's proposal (however unspeakable) when you
have just eaten a hundred dollars' worth of their entertainment budget!
How cost-effective it really is for Fiat to own an art gallery so it can take customers
on special conducted tours or for the German Neckerman company to have a whole
department organizing weekends in the Mediterranean for important clients is, of course,
open to question. Certainly in Austria, where corporate entertaining is tax-free, offering
Mozart festivals to music-lovers and Klosters to corporate skiers seems to promise a good
return on an initial investment. But can it legitimately be considered part of a company's
overall marketing effort?
It can. What more and more companies are realizing is that across-the-board
marketing doesn't work. Marketing in the future will have to be more clearly focused. And it
may turn out that big above-the-line media campaigns prove less effective in moving goods
than simpler strategies for getting the client on your side. Of course, in times of recession
corporate hospitality looks extravagant and doesn't make for good public relations. But it
still makes sense to target your best clients. For if the so-called Pareto Principle is true and
eighty percent of your business really does come from twenty percent of your customers,
then shouldn't you be looking after the twenty percent?
54
Just Business Unit 7 Corporate Entertaining
Discuss
1.
What in the article did you personally find most amusing, interesting,
surprising, and shocking?
What
What
What
What
2.
amused me was ...
interested me was ...
surprised me was ...
shocked me was ...
Was there anything in the article that annoyed you or you thought was
wrong? Was there anything you didn't know?
It annoyed me that...
I wasn't aware that...
I'm not sure about...
3.
Without referring back to the text, can you expand on the following facts and
figures mentioned in the article?
1
2
3
4
5
6
7
8
9
10
$40 billion
Romania and Venezuela
$15,500
365
BCCI
The Ritz
Fiat and Neckermann
Tax
Above-the-line marketing
The Pareto Principle
4.
What do you understand by the terms above-the-line and below-the-line marketing?
Can corporate entertaining really be considered a below-the-line marketing strategy?
5.
Does 80% of your business really come from 20% of your clients or do you think
that's an exaggeration?
6.
How often do you eat out on expenses in a month? What's the most you've ever spent
on wining and dining an important client? Was it worth it?
7.
Do you ever have working breakfasts? Have you ever clinched a deal over a meal?
What sort of food do you like? Do you have a favourite place you take people to for
lunch or dinner? Have you ever had to attend a business meal which you really did not
want to be at?
Do you have to give up many of your evenings to socialising with business contacts?
If so, does this affect your home-life?
8.
Vocabulary
Exercise 1 Look back at the article. Find the expressions that mean:
1. basic part (par.1)
2. impressive, astonishing (par.1)
3. approximately equaling (par.1)
4. known for something bad (par.1)
5. entertain somebody by taking them out for a meal (par.1)
6. amount to a particular total (par.1)
55
Just Business Unit 7 Corporate Entertaining
7. be skeptical about something (par.2)
8. none other than (par.2)
9. someone who gets money by deceiving people, swindler (par.2)
10. persuade someone to do what you want by dining and wining them and giving them
presents (par.2)
11. period of time when you do a lot of shopping (par.2)
12. business lunch (par.2)
13. make a profitable deal (par.2)
14. spend more than an amount (par.3)
15. admit, recognize (par.4)
16. arrange for payment to be made by the company (par.4)
17. influence someone to do what you want (par.4)
18. careful to avoid danger (par.4)
19. doubtful (par.5)
20. the amount of profit made from an investment (par.5)
21. allowed by the law (par.5)
22. marketing activities (par.5)
23. involving everyone or everything (par.6)
24. relating to a company’s spending on advertising, as compared to other marketing
activities such as research (par.6)
25. economic downturn (par.6)
26. help to make something possible (par.6)
Exercise 2 Now complete the following summary of the first half of the article
using the words below. Referring back to the text will help you. Listen and check
your answers.
A.
culture
part
scandals
entertainment
extravagant
luxury
hospitality
clients
contribution
marketing
A lot of people regard corporate (1) ... as an unnecessary (2) ... , but not the Japanese! As
far as they are concerned, it makes a major (3) ... to a company's overall (4) ... effort, and
they spend a staggering $40 billion a year looking after their most important customers.
That's roughly equivalent to Romania's GDP!
And, though there have been repeated (5) ... in Japan involving the most (6) ... companies,
extending (7) ... to your most valued (8) ... remains a crucial (9) ... of Japanese corporate
(10) ... .
B.
Without changing the meaning too much, which of the adjectives in the summary
above could be replaced by the following words?
a. significant
b. total
с. phenomenal
C.
d. vital
Find as many word partnerships as you can in the summary above.
56
Just Business Unit 7 Corporate Entertaining
Exercise 3 Divide the following expressions into two groups which mean
We reached a deal
We
We
We
We
clinched the deal.
wrapped up the deal.
blew the deal.
struck a deal.
We failed to reach a deal
We swung the deal.
The deal fell through.
We screwed up the deal.
The deal's off.
Reading and Discussing
Skim the article below, decide which of these headlines is the best. Then do the
exercises that follow.
Japan says good buy to
karaoke nights
Japan prefers to sing as budgets
are cut
Japanese government to tax gifts and
entertainment
Corporate entertaining in Japan
Hisako Saka, a hostess at a bar called Bouquet in Tokyo's high-class entertainment
area, is complaining. 'Customers go home before the last train and order far fewer drinks.
They are less cheerful and talk about restructuring all the time,' she said. 'Fewer girls are
deciding to become hostesses. My salary has halved.' Corporate entertaining is in steep
decline. Newly released figures from Japan's National Taxation Administration have revealed
that Japanese companies spent 13.3 per cent less on entertaining and gifts in the year to
last January than in the previous year. The latest figures show spending on entertainment is
at its second lowest level since records began in 1961. The decline indicates that the high
spending days of the 1980s are over and that a new phenomenon – cost control - has
entered the corporate dictionary.
As the credit environment has tightened, losses have multiplied, restructuring has
taken hold and the concept of shareholder value has crossed the Pacific, leading to
entertainment budgets being cut. In the boom days some executives would think little of
running up a £7,000 bill in one night entertaining an important client.
These days the entertainment still goes on but at more modest establishments.
Cheaper restaurants are busier and karaoke parlours are being chosen over expensive
nightclubs. Kunio Sato, a bar owner for the past 35 years in Ginza, Tokyo's most famous
entertainment area, said sadly, 'Companies are much stricter these days with what they will
let their employees spend compared with the old days.'
The cost cutting does not end at the bar. Some of Japan's huge conglomerates have
cut down ritual corporate gift giving. Budgets for gifts at New Year have, in some cases,
been cancelled, forcing employees to buy the gifts themselves, according to an employee at
one conglomerate.
From the outside, the discovery by Japanese companies of basic cost control can be
seen as an encouraging development in an economy that had previously let spending run
wild.
By Ken Hijino and David Ibison
Exercise 1 Find words or phrases in the article which mean:
1. reduced by 50% (par. 1) - __________________________________
2. decreasing rapidly (par. 2) - __________________________________
3. reorganising a company (par. 4) - __________________________________
57
Just Business Unit 7 Corporate Entertaining
4. a plan of how to spend an amount of money for a period of time (par. 4) - ___________________
5. economically good times (par. 4) - __________________________________
6. a large business organisation of several companies (par. 6) - _____________________
Exercise 2 Are the following statements true or false?
1. There are now fewer opportunities for entertaining corporate clients. _______
2. The number of bar hostesses is increasing. _______
3. Spending on entertainment is the lowest since 1961. _______
4. Saving money is now important to businesses in Japan. _______
5. It is now rather difficult to borrow money. _______
6. In the 1980s a bill for one night entertainment of important client could amount
to £ 7,000. _______
7. Entertaining in restaurants and karaoke bars is more important than entertaining in
nightclubs. _______
8. Employees prefer to pay for corporate gift giving themselves at New Year. _______
9. Cost control is viewed by Japanese companies as a negative trend in business. _______
Speaking
Role play the following situation: You are senior managers at a hi-fi manufacturer. Your
company is losing market share. You strongly suspect your main rival is using unfair
methods to promote its products. For example, you are almost sure that they have been:
a)
making cash payments to main dealers;
b)
offering expensive gifts to important customers.
Consider how to solve the problem.
Grammar
Exercise 1 Put question tags at the end of these sentences.
1) You won’t forget about my request, ………………..?
2) We have to suspend the project, ………………………?
3) Let’s go out tonight, ……………………………………………?
4) Don’t interrupt, …………………………………………………..?
5) I’m in charge here, ……………………………………………..?
6) We’d better postpone the meeting, …………………….?
7) They’d rather book a less expensive hotel, ……………….?
8) You had to break the agreement, …………………………?
9) Give me the menu, …………………………………………………?
10) Let’s consider all the pros and cons, ……………………..?
11) They’d rather die than abandon their homes………….?
12) I’d better not waste any more of your time, ………….?
13) I’m going to be promoted, ………………………………………?
14) Do it first thing tomorrow morning, ………………………..?
58
Just Business Unit 7 Corporate Entertaining
Exercise 2 To make suggestions we use shall I/we, let’s, why don’t, why not.
E.g.
Shall I give you a lift?
Let’s book a restaurant for tonight, shall we?
Let’s not worry about the bill. (more formal)/Don’t let’s worry about the bill. (less formal)
Why don’t we take out a bank loan?
Why not apply to a recruitment agency?
Complete the sentences with suitable words where necessary.
1) Why ….. you consult a lawyer?
2) Why ….. take a bus to the airport. It’s much cheaper than a taxi.
3) …… meet tomorrow and go over the project plan again, … we?
4) ……. let’s …… do anything in a rush. We’ve got plenty of time.
5) Let’s ……. take any risks. We are in trouble as we are.
6) ……. we go to an Italian restaurant for a change?
7) Why …. book a table at the Ritz to really impress our client.
Exercise 3 Complete the dialogues with your own words.
a) A: A new Japanese restaurant just opened downtown. Why ………………………….. ?
B: Great idea! I’d like some good sushi. Let’s …………………………………….
A: Shall I …………………………..? What about tomorrow night?
B: Let ………………… (not) tomorrow. I’m tied up all day. Why …………. (we) on Friday
night?
A: Agreed. Let ………………. on Friday, …………?
b) A: We’ll never find an office we can afford in the city centre. Why …………… (we) in the
suburbs? It’s farther, but offices must be less expensive.
B: Okay. Let’s ……………… right now, ………………….?
A: Why ………………...... newspapers first? We should look in the classified ads for that
area. Do you have this morning’s paper?
B: No. …………………. get one?
A: Good idea. I’ll come with you.
Exercise 4 Practice the phrases. Suggest solutions to the problems below.
1) You need to boost morale in your department. What can you do?
2) Your company’s results show an unexpected $500,000 profit on international currency
deals. Suggest things to do with the money.
3) Your company was founded 100 years ago. You want to mark the occasion. How can
you do it?
4) A VIP client is visiting your company for a few days but your entertainment budget is
very tight.
5) You heard on the grapevine that your regular customer is going to withdraw business
with you. How can you retain the customer?
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Just Business Unit 7 Corporate Entertaining
Exercise 5 Let means allow or permit. Look at the examples and note the
difference in grammar.
E.g.
David’s father sometimes lets him drive his car.
He does not allow his younger daughter to drive his car.
The policemen did not permit us to enter the area during the investigation.
Complete the sentences with to where necessary.
1)
I stepped back and let them …. pass.
2)
They will never allow us .… charge these costs to the company account.
3)
Don’t let me …. remind you how important it is.
4)
At this college they do not permit students ….. access the Internet for personal use.
5)
When I had to make an emergency call the secretary let me ….. use her phone.
6)
Would you let me .… take your picture?
7)
He never permits anybody …. use his laptop.
8)
Would you allow us .… look at the document concerned?
9)
Some people seem to let their kids ….. do whatever they like.
Exercise 6 Complete the sentences with your own words.
1.
Don’t let …………………………………………………………
2.
My boss usually lets me ………………………………..
3.
Why did you let ………………………………………………
4.
You shouldn’t let ……………………………………………….
5.
Why not let …………………………………………………………
6.
Why don’t we let ……………………………………………….
7.
As soon as you let ………………………………………………
8.
So far I haven’t let ………………………………………………
9.
I’ll never let ………………………………………………………..
10.
Do you think we should let ………………………………….
60
Just Business Unit 7 Corporate Entertaining
Speaking
BUSINESS GIFTS
Student A
Business gifts are sometimes sent to customers or clients in the hope that they build
goodwill - and help secure business. In many cases the activity is perfectly reasonable and
open - but in some cases the practice of offering and receiving gifts is connected to dubious
behaviour, malpractice or illegal activities.
You are one of two purchasing directors in a large manufacturing company with a $70m
turnover. One of your purchasers has been sent a case of Grand Cru Bordeaux wine by a
supplier. Some of your management colleagues feel he should not have accepted this gift.
At present the company has no policy on receiving gifts.
Together with your partner, decide on a new company policy on receiving gifts.
YOUR PARTNER WILL START.
Prior to your meeting you draw up the following options:
To:
From:
Date:
Subject:
MEMO
Gifts - what to do??
• No gifts should be accepted.
• Only gifts up to a certain agreed value should be accepted.
• All gifts should be pooled and used as prizes in the company Christmas raffle.
YOU:
•
tend to think that gifts compromise your colleagues - they are more likely to
buy from companies who supply the best gifts, not those offering the best
products and the best service.
61
Just Business Unit 7 Corporate Entertaining
BUSINESS GIFTS
Student B
Business gifts are sometimes sent to customers or clients in the hope that they build
goodwill - and help secure business. In many cases the activity is perfectly reasonable and
open - but in some cases the practice of offering and receiving gifts is connected to dubious
behaviour, malpractice or illegal activities.
You are one of two purchasing directors in a large manufacturing company with a $70m
turnover. One of your purchasers has been sent a case of Grand Cm Bordeaux wine by a
supplier. Some of your management colleagues feel he should not have accepted this gift.
At present the company has no policy on receiving gifts.
Together with your partner, decide on a new company policy on receiving gifts.
YOU START.
Prior to your meeting you draw up the following options:
To:
From:
Date:
Subject:
•
MEMO
Gifts policy-choices
Any kind of gift should be accepted with a smile!
If a new policy is adopted, all employees and suppliers should be told by letter.
Only senior managers should accept gifts.
•
•
•
YOU:
•
personally like the idea of gifts - you have received some good ones in the
past;
•
received a case of Grand Cru from the same company last year - but you
didn't tell anyone;
•
think you and your colleagues would only judge suppliers on purely objective
and factual considerations.
62
Just Business Unit 7 Corporate Entertaining
Reading and Writing
You have been asked to suggest a different form of corporate entertainment to the
usual expensive meal at the local restaurant. First study the advertisements and
choose the best four titles from a - g below for each advertisement.
A.
1. We're just 50 miles from London, easy to reach by road and rail. We have
300 acres of flat event space. You can try 4x4s, go-carts, banger races,
cross-country motorcycling, army jeeps and balloon flights. You can even
bring the kids. Loads of fun guaranteed for stressed executives and their
clients.
2. Haze and smoke machine, bubble machine, the very latest pre-releases, high
specification sound and light. Pyrotechnics available. Marquees. Rifle shooting.
Prom Nights. We are a family-run business with the most up-to-date equipment.
We will organise an event for you, or you can hire everything to suit your own
arrangements.
3. Visit our Country Barn conversion for that special business event or dinner - a
champagne reception perhaps? Built in 1541 by King Henry VIII's master
carpenter, our Country Barn offers an ideal, convenient venue to impress your
clients. Our first class kitchens and Cordon Bleu chef will provide a bespoke
menu to give you a meal to remember.
4. Get the adrenaline pumping behind the wheel of a Humvee or drive a Sherman
tank through mud and water in traditional battlefield-simulated conditions. Not
tough enough for your clients? Try our mock SAS survival training course. Tailormade days to suit your company's individual needs. Drive it! Shoot it! Crush it!
a
b
c
d
e
f
g
Traditional rural hospitality
Kitchen visits and cooking courses
Do It Yourself Hi-tech fun and games
The ultimate driving experience
Conveniently located family fun days
Tanks-R-Us
Join the army for a day
1
2
3
4
B.
Complete the sentences, matching the best choices from a to f .
1
2
3
4
Executives and their clients can enjoy...
Our equipment brings out the kid in your
client because ...
We know you will enjoy the rural calm of ...
If you are a good organiser, why not ...
a
b
swimming in an Olympic-style pool.
an exciting day out with the family.
c
d
clay pigeon shooting and Painthall.
they will be able to smash things up and
lose their inhibitions for a day.
our historical setting and peaceful
atmosphere.
hire our gear, arrange your own event.
e
f
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Just Business Unit 7 Corporate Entertaining
C. Now write a memo of 30-40 words to your boss, recommending one of the above
activities. Include details of the event, why you think it would be suitable for your
company's clients, and a proposed date for the event to take place.
Vocabulary: Translate into English.
1
Во многих странах прием и обслуживание представителей других компаний
считается неотъемлемой частью бизнеса.
2
Некоторые люди считают, что нет необходимости тратить большие деньги на
представительские цели. Они уверены, что это ненужная роскошь.
3
Но люди, которые настроены боле скептически, уверены, что это не что иное, как
взяточничество.
4
Эта пресловутая (имеющая дурную славу) компания находится в центре (является
предметом) непрекращающихся скандалов уже несколько лет.
5
Хотя сумма, заплаченная за обед в ресторане, была невероятно огромной, она
была списана на издержки компании.
6
Их представительский бюджет примерно равен сумме внешнего долга Венесуэлы.
7
Добрая воля является решающим условием заключения выгодной сделки.
8
Сколько компаний участвует в тендере за контракт с нашей фирмой?
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Just Business Unit 7 Corporate Entertaining
9
Эта компания – наш самый ценный клиент. Мы заинтересованы в стабильных
отношениях с ними. Поэтому мы стараемся их ублажать.
10
Вам бы лучше отказаться от идеи проведения широкомасштабной компании по
продвижению товара. Советуем вам нацелиться на своих лучших клиентов.
11
В Австрии расходы на представительские цели освобождены от налогообложения.
Поэтому к ним относятся как к выгодному вложению средств, обещающему
хороший доход от сделок в будущем.
12
Во времена экономического спада дорогостоящие деловые обеды в шикарных
ресторанах выглядят чересчур экстравагантно и не способствуют укреплению
позитивного имиджа компании.
13
Если вы примете дорогой подарок от своих партнеров, вам будет трудно отказаться
от их делового предложения, даже если вы в нем не заинтересованы.
14
Хорошие отношения с партнерами имеют решающее значение для японцев.
Поэтому сумма в 40 миллиардов фунтов, потраченная на представительские цели,
не кажется им чрезмерной.
15
Приз лучшего посетителя года отеля Ритц имели шанс получить только те клиенты,
которые тратили на обеды в этом ресторане свыше 5000 фунтов в год.
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Just Business Unit 7 Corporate Entertaining
Useful Words and Word Partnerships
1
обхаживать к-л. с корыстными целями
3
keep sb. sweet
dine and vine sb. (syn.)
tender for a contract
win the contract
mix business with pleasure
4
take advantage of the situation
воспользоваться преимуществом ситуации
5
give oneself a real treat
по-настоящему побаловать себя
6
choose a venue for your
company’s annual conference
выбрать место для проведения ежегодной конференции
вашей компании
2
7
участвовать в тендере на подписание контракта
получить контракт
смешивать бизнес и удовольствие
staggering marketing expenditure
огромные расходы на маркетинг
примерно равняться
9
be roughly equivalent to sth.
add up to sth. (syn.)
infamous
10
subject of repeated scandals
предмет постоянных скандалов
11
take a dim view
относиться скептически
12
nothing short of bribery
не что иное, как взяточничество
13
famous fraudsters
известные жулики
14
spree
кутеж
15
business breakfast at the Hilton
деловой завтрак в Хилтоне
16
решающее условие заключения выгодной сделки
17
crucial part of clinching a lucrative
deal
recognize a major contribution
18
spend in excess of $5,000 a year
тратить свыше 5000 долларов в год
19
stand a chance of winning
иметь шанс выиграть
20
consolidate professional relationships
укреплять профессиональные отношения
21
charge sth. to expenses
списать на издержки
22
manipulate over-cautious clients
влиять на чересчур осторожных клиентов
23
reject your host’s proposal
отказаться от предложения принимающей стороны
24
представительские расходы на сумму $100
26
a hundred dollars' worth of
entertainment budget
promise a good return on an initial
investment
across-the-board marketing
27
above-the-line marketing campaigns
масштабные маркетинговые мероприятия (кампании),
рекламные мероприятия, заказываемые у рекламных
агентств, периодических изданий, радио- и
телекомпаниям, а не силами сотрудниками фирмы;
below-the-line marketing
внутреннее рекламирование, рекламирование своими
8
25
имеющий дурную репутацию; печально известный
признать значительный вклад
выглядеть выгодным вложением для возмещения
начальных капиталовложений
всеобщий (тотальный) маркетинг
силами
28
in times of recession
во времена экономического спада
29
get the client on your side
привлечь клиента на свою сторону
30
corporate hospitality
31
target the best clients
прием и обслуживание представителей других
компаний
ориентироваться на лучших клиентов
32
Pareto Principle
закон Парето (теория, согласно которой распределение
доходов имеет постоянный характер и не зависит от
системы налогообложения и социального обеспечения
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Just Business Unit 7 Corporate Entertaining
KEY to the questionnaire «What’s your price?»
a = totally incorruptible – are you real?
b = you have principles but not a slave of them
c = you see no reason not to take advantage of your good fortune
d = utterly unscrupulous – you can certainly be bought, but few people can afford
you
67
Just Business Unit 8 Innovation
Unit 8 Innovation
“The best way to have a good idea is to have a lot of ideas”
Dr Linus Pauling (1901 - 1994), American chemist
LEAD –IN
Comment on the quotations below.
•
•
Man will never fly, not in a thousand years. Wilbur Wright (1867-1912), American
aviation pioneer.
Innovation! One cannot be forever innovating. I want to create classics. Coco Chanel
(1883-1971), French fashion designer
How creative are you?
1. Do you consider yourself to be creative? Are you the sort of person who gets sudden
flashes of inspiration or are you more of a methodical problem-solver?
2. How important is creativity in business? Are creativity and innovation the same thing?
3. Some suggest that luck plays a major part in any innovative breakthrough.
4. Below is a list of tips on how to maximize your chances of striking it lucky, taken from
Tom Peters' bestseller, 'Liberation Management'. Which piece of advice strikes you as:
•
•
•
a
b
c
d
e
f
g
h
i
the most useful
the cleverest
the silliest
Listen to everyone. Ideas come from everywhere.
Don't listen to anyone. Trust your inner ear.
Constantly reorganize. Mix, match, try different combinations to shake things up.
Read odd stuff. Visit odd places. Make odd friends. Work with odd partners.
Disorganize.
Get out of your office.
Get rid of your office.
Nurture intuition.
Forget the same tired meetings, talking with the same tired people about the same
tired things.
Get fired. If you're not pushing hard enough to get fired, you're not pushing hard
enough!
j
Do you have a strategy of your own for coming up with new ideas?
What are the most important inventions and innovations for you:
a)
b)
c)
d)
at work
at home
For you which is the most important invention of the last 100 years?
Which one do you wish had not been invented?
The words below are often used when talking about innovation. What do they mean?
R&D
brainwave
blueprint
prototype
breakthrough
68
patent
copyright
Just Business Unit 8 Innovation
Business Brief
Read the texts and do the exercise below.
Traditionally, a company’s new ideas and products come from its research and
development (R&D) department, which first designs products (makes plans or drawings
for how products are to be made) and then develops them (makes the new ideas
successful, for example by making or improving products) The initial idea for a car will be
turned into a series of prototypes and tested. In software development, the final
‘prototype’ is the beta version, which is beta-tested. Pharmaceuticals go through a series of trials.
Different industries have different lead-times, the time between conception and
product launch; a new drug might take 10 or 15 years to develop. In consumer goods,
market research will be a key part of the development process, with focus groups: small
groups representing cross-sections of consumers talking about their reactions to
proposed designs, and wider consumer surveys. Consumer products are test-marketed
or trialled, and feedback gathered.
Creativity refers to the phenomenon whereby a person creates something new (a
product, a solution, a work of art, etc.) Creativity is the essential source of all invention
and innovation and is derived from imaginative thought rather than from rational thought.
An invention is a unique or novel device, method, composition, process or discovery. An
invention that is not derived from an existing model or idea, or that achieves a completely
unique function, discovery, or result, may be a radical breakthrough. Inventions often
extend the boundaries of human knowledge, experience or capability.
Innovation is the creation of better or more effective products, processes, services
or technologies. Innovation differs from invention in that innovation refers to the use of a
new idea or method, whereas invention refers more directly to the creation of the idea or
method itself.
How to develop innovation and creativity in large, bureaucratic companies?
Company leaders talk about corporate venturing and intrapreneurship, where
employees are encouraged to develop entrepreneurial activities within the organization.
Companies may set up skunk works, often a small group of people outside the usual
structures, to work on innovations: development of the PC at IBM is the most famous
example. The article about Hewlett-Packard in this unit discusses another approach to
fostering innovation in large organizations. Another problem that organizations have to
overcome is the not-invented here syndrome, where managers not initially involved in
an innovation may resist its development. Resistance to new ideas is well known. In
organizations, the best way of killing an idea may well be to take it to a meeting.
Entirely new innovations are perhaps more easily developed by entrepreneurs in
start-up companies, but here the problem is finance: how to get the venture capital to
develop the product, manufacture it on an industrial scale and market it.
Information or knowledge that belongs to an individual or company is proprietary.
A product developed using such information may be protected in law by patents so that
others cannot copy its design.
Other companies may pay to use the design under licence in their own products.
These payments are royalties. In publishing, if a text, picture, etc. is copyright, it cannot
be used by others without permission. Payments to the author from the publisher are
royalties. The area of law relating to patents and copyright is intellectual property.
69
Just Business Unit 8 Innovation
Verb
Noun:concept
(uncountable)
design
development
innovation
invention
technology
design
develop
innovate
invent
Noun: thing (countable)
a design
a development
an innovation
an invention
a technology
Noun:
person
a designer
a developer
an innovator
an inventor
a technologist
Exercise 1 Choose the correct forms to complete these sentences containing words
from the text and table above.
1. White came up with (a design/design) that combined lightness and warmth.
2. There's an exhibition on architecture and (the design/design) at the Museum of Modern
Art.
3. McGrew is vice president of (a development/development) and product planning.
4. The FDA has approved (a development/development) for treating tooth disease, a new
laser machine.
5. Electric light was (an invention/invention) which enabled people to stay up later.
6. Sometimes (an invention/invention) is so obvious that it is hard to believe nobody
thought of it before.
7. Channel Four has always encouraged experimentation and (an innovation/innovation) in
its films.
8. He discovered (an innovation/innovation) that has enabled him to build guitars more
efficiently.
Exercise 2 Match the expressions (1-6) with their meanings (a-f).
1
2
copyright infringement
intellectual property
a
b
3
patent application
с
4
proprietary information
d
5
6
royalty payment
licensing agreement
e
f
1
2
3
a payment to the owner of a design, or to an author
an arrangement between the owner of a design and
someone else, allowing them to use the design for money
when someone uses another's text, pictures, etc. without
permission
when an inventor asks the authorities to officially
recognize an invention as his/her property
designs, ideas, etc. that belong to someone
the law relating to designs, ideas, etc. that belong to
someone
4
5
70
6
Just Business Unit 8 Innovation
Listening
Listen to the texts about innovation, creativity and novelty and answer the
questions below.
1
Bright Ideas
What is the main point on the agenda of the meeting at the cosmetics company?
2
Why is everybody frustrated?
3
What does the marketing consultant suggest?
4
How much does he want for his idea?
5
What are the conditions for creativity in business according to the psychologists?
(give five points)
1)___________________________________________________________________
2)___________________________________________________________________
3)___________________________________________________________________
4)___________________________________________________________________
5)___________________________________________________________________
6
What did Sir Clive Sinclair invent? Was his invention a success? Why?
7
Who was Akio Morita?
8
What was the reason for his success?
9
Why do high-technology companies seek to merge multinationally?
71
Just Business Unit 8 Innovation
The Lateral Thinker
10
What book did Tom Logsdon write? What is it about?
11
What are the responsibilities of the young executive?
12
What problem does he have to face?
13
Why is the upgrade of the system ruled out? What is the lowest estimate for
reconstruction?
11
What solution does the young executive find?
12
How much does it cost to implement the idea?
13
How much can the hotel save by using the idea?
14
What does the term “lateral thinking” mean according to Edward De Bono?
15
How is idea generation encouraged at 3M?
16
How do Hewlett-Packard, Glaxo, ICL, etc maintain their innovative lead?
17
What is the difference between creativity and innovation?
18
What mistake did Xerox make and how did Apple profit from it?
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Just Business Unit 8 Innovation
Reading and Language
Read the texts Bright Ideas and The Lateral Thinker and do the exercises
below.
BRIGHT IDEAS
The scene is the boardroom of a multinational cosmetics company at the end of an
exhausting all-day meeting. The conference table is littered with screwed up papers and
empty Perrier bottles. The financial controller is tearing his hair out and the director of R&D
is no longer on speaking terms with the head of marketing. The launch of a new shampoo
has backfired badly. All decisions have had to be deferred until the next meeting. Nobody
even wants to think about the next meeting.
At this point a young marketing consultant cuts in. "Ladies and gentlemen, I have an
idea which is guaranteed to double sales of your new shampoo. Now, believe it or not, my
idea can be summed up in just one word and for $30,000 I'll tell you what it is." Naturally,
objections are raised, but the chairman finally agrees to the deal. "Here is my idea. You
know the instructions you put on the back of the shampoo bottle? I suggest you add one
word to the end. And the word is: 'repeat'."
Not all good ideas are this simple, but in business a surprising number of them are.
At least, they seem simple after they've been thought of- the secret is to think of them т
the first place. As someone once remarked, "If you can't write your idea on the back of your
business card, you don't have an idea".
So what are the conditions for creativity in business? And is there a blueprint for
having bright ideas? Here's what the psychologists think:
1. Be a risk-taker. Those who are reluctant to take risks don't innovate,
2. Be illogical. An over-reliance on logic kills off ideas before they have a chance to develop.
3. Let yourself be stupid from time to time. Great ideas often start out as stupid ideas.
4. Regularly re-think things. Problem-solving frequently involves breaking up problems into
parts and putting them back together again in a different way.
5. Take advantage of lucky breaks. The most creative people never ignore an opportunity.
They say the West creates and the East innovates, and there may be some truth in
this. Take British entrepreneur, Sir Clive Sinclair, the great electronics inventor of the 70s,
whose C5 electric car flopped when people found it quicker to get out and walk. Then take
Akio Morita, the chairman of Sony, who has seen his company claim 85% of the world
personal stereo market with the much imitated Sony Walkman - a masterly innovation
which merely took advantage of existing technology. The comparison speaks for itself.
And maybe one reason high-technology companies seek to merge multinationally is
so that they can combine both creative and innovative strength. For anything that won't sell
isn't worth inventing and it's an expensive waste of time coming up with ideas you can't
exploit. But it's even more expensive if your competitors can exploit them. And there's not
much point doing the research if another company is going to end up doing the
development, and making the profit.
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Just Business Unit 8 Innovation
Vocabulary
Exercise 1 Look back at the article. Find the expressions that mean:
1. very tiring (par.1)
2. squeezed or twisted (par.1)
3. be frustrated (par. 1)
4. feeling unfriendly, angry with somebody (par.1)
5. go wrong (par. 1)
6. postpone (par.1)
7. express disagreement (par.2)
8. a master plan (par. 4)
9. benefit from something (par.4)
10. unexpected opportunities (par. 4)
11. fail badly (par. 5)
12. win (market share) (par.5)
13. suggest an idea (par.5)
14. use something to gain as much as possible (par.5)
15. obvious (par. 5)
THE LATERAL THINKER
In his book on creative problem-solving, 'Breaking Through', Tom Logsdon tells the
story of a bright young executive hired to manage a San Francisco hotel. One of the first
problems the young executive has to face is a flood of complaints about the hotel lifts,
which are infuriatingly slow. Guests are actually starting to demand rooms on lower floors.
But an upgrade of the lift system is ruled out when the lowest estimate for reconstruction
comes to $200,000. Clearly something else has to be done, and pretty quickly, before
people start checking out.
Finally, a creative solution occurs to the young executive. The key to the problem, he
decides, is boredom. With only the lift doors and a blank wall to stare at, guests are
understandably getting bored, and when people are bored they tend to complain. So instead
of speeding up the lifts, full-length mirrors are installed both inside and directly outside the
lifts on each floor - at a cost of just $4,000. Now, with their reflections to look at when they
use the lift, people stop complaining, thereby saving the hotel $196,000.
This is what Edward De Bono calls lateral thinking, and it's the result of looking at
the problem in a different and unusual way. Indeed, reformulating and redefining a problem
is just one of the ways in which you can create a climate for creativity in business. And an
increasing number of companies now see such creative strategies as vital to their survival.
At 3M, for example, employees spend as much as 15% of their time on new ideas
and 25% of every manager's product portfolio consists of products that are less than five
years old. At Hewlett-Packard more than half their orders in 1992 were for products
introduced in the previous two years. It's a similar story at Glaxo, ICL and SmithKline
Beecham. For it's no coincidence that in research-driven industries, like computers and
pharmaceuticals, an innovative lead creates the market leaders. Management guru, Tom
Peters, talks nowadays of a company's whole culture being creative. But creativity would be
useless without innovation, and the two terms should not be confused.
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Just Business Unit 8 Innovation
According to the team running creativity courses at the Cranfield School of
Management, creativity is essentially about generating, not judging, ideas. Innovation, on
the other hand, is the successful implementation of those ideas on a commercial basis. In a
brainstorming session, you don't criticize ideas before they're fully formed. That would be
counterproductive. Evaluation comes in at the innovation stage, where you're turning good
ideas into a commercial proposition. It follows that you cannot be both creative and
innovative at the same time.
For making a discovery is one thing; exploiting it quite another, as the Xerox
Research Centre found out to its cost when its system for making personal computers easier
to use was copied by Apple Macintosh. Apple led the market for almost ten years with the
enormously successful desktop system it 'borrowed' from Xerox. But Apple had the foresight
to copyright the system. Xerox didn't. Originality, it seems, is the art of concealing your
source, and too many companies fail to see an opportunity until it ceases to be one.
Exercise 2 Look back at the article. Find the expressions that mean:
1. out of the question (par.1)
2. calculation of costs (par.1)
3. come to one’s mind (par.2)
4. put smth into a place (par.2)
5. using imagination to solve a problem in an unusual way (par.3)
6. a creative environment (par.3)
7. it's not by chance that (par.4)
8. giving a lot of attention to research (par.4)
9. mix something up (par.4)
10. management expert (par.4)
11. basically (par.5)
12. express a n opinion, criticize something (par.5)
13. putting an idea into practice (par.5)
14. idea-generating meeting (par.5)
15. having the opposite result to the one you intended (par.5)
16. viable enterprise (par.5)
17. the ability to predict things (par.6)
18. not telling people where you got the idea (par.6)
19. stop continuing (par.6)
Exercise 3 Complete the presentation extract below by matching the two halves of
each sentence. Referring back to the articles may help you.
1
a
2
As you know, in our view, too many companies
fail to see ...
So what we try to do is to create ...
3
Indeed, we see such creative strategies ...
c
4
Nevertheless, you don't need me to tell you that
the launch of our latest product ...
d
75
b
… to think of these things in the first
place.
... the whole problem really is
technology.
... a climate for creativity in everything
that we do.
... advantage of existing technology
instead of redesigning the whole system
from scratch.
Just Business Unit 8 Innovation
5
6
7
8
And, no doubt, you'd like to know why we
haven't been able to turn what looked like a
great idea ...
Well, the main difficulties we've had ...
e
... into a commercial proposition.
f
And the key to ...
g
h
... an opportunity until it ceases to be
one.
... to face have been technical.
You see, this new product is extremely
advanced, and clearly, we should have taken ...
The ideal solution would have been to simply
add new features to our old system, and it's ...
9
10
With hindsight, we know what we did wrong,
but, as always, the secret is ...
1
2
3
4
5
... as vital to our survival.
i
... a pity this didn't occur to us sooner.
j
... has backfired badly.
6
7
8
9
10
Exercise 4 Group the following verbs according to whether they form strong word
partnerships with research, problems or ideas. Some of them belong to more than
one group.
solve
create
tackle
come up against
fund
put money into
promote
cut back on
implement
face
define
cause
carry out
develop
come up with
conduct
generate
brainstorm
address
reject
Research: _________________________________________________________
Problems: _________________________________________________________
Ideas: __________________________________________________________________
Exercise 5 Now complete the following paragraph using some of the verbs from
the previous exercise. How many word partnerships can you find in it?
Companies who are prepared to (1) ... research know that it will be money well spent. Many
research-driven companies will even go so far as to invest up to 20% of their turnover in
new research in the hope that their R&D team can (2) ... at least one new idea which will
ensure the company's future profitability. And companies who, in times of recession, decide
to (3) ... research are probably making a big mistake.
These days it is the business of all departments within a company to (4) ... as many ideas
on improving the business as possible, some of which, if (5) ... further may turn out to be
major breakthroughs, for the R&D department is not always in the best position to
(6) ... a particular problem, let alone (7) ... it. Of course, you may have to toy with an idea
for quite some time before you can see a way to actually (8) ... it, and it is this
implementation stage which is the test of a really good idea.
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Just Business Unit 8 Innovation
Reading and Language
Read the article about innovation, put necessary prepositions where necessary
and then complete the sentences below. For each sentence mark a or b.
It has often been said that if you could invent a new mousetrap, the world would beat a
path ____ your door. But many companies used to pay little or no attention ___ investing
money ___ a Research and Development department. They preferred to respond ___
market forces, waiting ___ the consumer initiated product development ___ modifying
demand in the market place. This usually resulted ___ simple fine-tuning of a product's
salient features and many missed opportunities.
Manufacturers frequently discovered that innovation had passed them ___ when it was too
late to act. When they finally woke ___ to the news, they found a competitor had stolen
their customers. A frequently heard argument was, “If it's not broken, don't fix it!”
Unfortunately, it is still a fact that ___ a small business time is seldom devoted ___ intense
brainstorming sessions to consider the long-term future ___ a particular product.
Manufacturers often find that they've done too little too late.
But companies ignore investment ___ research at their own peril. The Swiss watch,
Swatch, is a prime example ___ a product which was produced ___ response ___ the loss
of a market through competition. Japanese manufacturers stole the Swiss watch industry's
market, virtually overnight, when they flooded Europe ___ cheap digital watches. Digital
watches were examples ___ new technology which soon displaced the old-style analogue
watches. The Swiss responded ___ innovation of their own - a fashion watch, produced
___ automated machines ___ economies of scale, which reversed the economic decline
___ the country.
Role models ___ efficient R&D departments are hard to find, and many managers
acknowledge their inability to produce a true blueprint. Finding staff is not easy; people who
invent new concepts do not always go ___ university and gain degrees ___ innovation.
___ fact many ___ the great inventors from history were ordinary people pursuing their
own interests. Michael Faraday could never have known how his early experiments ___
electro-magnetism would influence _____ and shape modern society. Nobody knows how
many Faradays work ___ present day R&D departments. What is clear is that industry has
been alerted ___ the need ___ continuing research. ___ the tough business environment
___ the early 21st century, the command “Don't just sit there, invent something which has
been replaced ___ hard cash and budgets totaling _____ 20% ___ turnover to ensure
future profitability and company survival”.
1.
a.
b.
2.
a.
b.
3.
a.
b.
4.
a.
b.
Companies need to innovate because:
new inventions are the life blood of a company and ensure its survival.
consumers are never satisfied with the products they have.
Small companies:
use the available time wisely to discuss new concepts and ideas.
do not consider R&D departments as a necessity.
Swatch succeeded because:
the Swiss invented the digital watch.
the company developed Japanese technology and interpreted it in a unique way.
According to the writer you have to:
have a university degree to be a great inventor.
invest serious money to maintain market share.
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Just Business Unit 8 Innovation
Grammar
Make and Do
There is a guide to the basic use of these two words in English. You do an activity,
but you make a product. Look at these two examples:
Have you done the copying?
Have you made the copies?
Exercise 1 Make business phrases using make and do with the words below. A few
of them can be used with both, but the meaning sometimes changes:
business
research
progress
tests
a breakthrough
an impact
a discovery
a comment
an exception
an effort
a loss
a phone call
a proposal
recommendations
a presentation
an appointment
a feasibility study
a complaint
a decision
money
a project
a survey
a mistake
a deal
a contribution
an offer
damage
a profit
a report
a rush job
arrangements
an excuse
an improvement
a change
a course
a bid
Exercise 2 Translate the sentences into English. Use MAKE or DO
1. Надеюсь, вы сделаете все приготовления вовремя.
2. Мы должны провести исследование рынка, чтобы определить своего целевого
потребителя.
3. Мы внесли свои рекомендации, но они были отвергнуты.
4. Какую прибыль вы получили в этом году? – Никакой. Мы понесли одни убытки.
5. Чтобы выполнить это задание, вам придется предпринять усилие.
6. В прошлом веке было сделано много открытий в области естественных наук.
7. Кем было сделано это предложение?
8. Если вы не подадите жалобу, вы не получите компенсацию.
9. Это гениальная идея. Она совершит прорыв в науке.
10. Какой вклад вы внесли в развитие компании?
11. Мы хорошо поработали и теперь можем отдохнуть.
12. В какое время вы договорились встретиться?
13. Проходите в конференц-зал. Наш представитель там делает презентацию.
14. Сколько изменений вы внесли в проект?
15. Мы уже провели технико-экономическое обоснование и можем запускать проект.
16. Ураган нанес городу большой ущерб.
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Just Business Unit 8 Innovation
Exercise 3 The verbs force, make, have or get are synonyms and are often
interchangeable. However, their meanings are not quite identical.
Note the difference in using the verbs.
We made them refund our money. (They had no choice.)
They were made to refund the money.
I had my colleague substitute for me. (I asked him to.)
They forced us to take legal action. (We had to though we didn’t want to.)
We couldn’t get him to sign the agreement. (We couldn’t persuade him.)
Now complete the sentences putting the right verb in the correct form.
1.
2.
3.
4.
5.
Bad health ……………… (him) take early retirement.
I …………….. (my secretary) print out the report.
They ……………………… (us) work longer hours to achieve the sales target.
The driver was reluctant, but we finally …………….. (him) take us to the airport.
My boss ………………… (me) redo the task because he wasn’t satisfied with the way I
did it.
6. The customs officer …………………….. (the tourist) open his bag.
7. Falling sales eventually ………………………. (them) go out of business.
8. I suggest we …………………… (a professional photographer) take pictures of the
conference participants.
9. I was …………………….to wait two hours before I was interviewed.
10. I’ll ……………………….. (the porter) bring your luggage up right away.
11. Don’t …………………….. (me) take a decision when I’m not ready to do it yet.
12. We …………………..to accept their terms. There was no alternative.
Reading and Discussing
Do you like brainstorming or do you prefer to work things out alone? Read the
article about electronic brainstorming. What are its pluses and minuses? What
type of companies is it most appropriate for?
Electronic brainstorming outperforms both regular brainstorming (in groups that
brainstormed together) and nominal group brainstorming (when individuals provide ideas
independently of one another and the group exists only insofar as their work is considered
as a whole). It is a computerized version of the manual brainstorming technique typically
supported by an electronic meeting system (EMS) but simpler forms can also be done via
email and may be browser based, or use peer-to-peer software.
With an electronic meeting system, participants share a list of ideas over the
Internet. Ideas are entered independently. Contributions become immediately visible to all
and are typically anonymized to encourage openness and reduce personal prejudice. Modern
EMS also support asynchronous brainstorming sessions over extended periods of time as
well as typical follow-up activities in the creative-problem-solving process such as
categorization of ideas, elimination of duplicates, assessment and discussion of prioritized or
controversial ideas.
Proponents argue that electronic brainstorming eliminates many of the problems of
standard brainstorming, including production blocking and evaluation apprehension. A
perceived advantage of this format is that all ideas can be archived electronically in their
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Just Business Unit 8 Innovation
original form, and then retrieved later for further thought and discussion. Electronic
brainstorming also enables much larger groups to brainstorm on a topic than would
normally be productive in a traditional brainstorming session.
Some web based brainstorming techniques allow contributors to post their comments
anonymously through the use of avatars. This technique also allows users to log on over an
extended time period, typically one or two weeks, to allow participants some "soak time"
before posting their ideas and feedback. This technique has been used particularly in the
field of new product development, but can be applied in any number of areas requiring
collection and evaluation of ideas.
Speaking 1
Read the situation below and as the directors of the company meet to solve the
problem.
Your company produces a revolutionary new dishwasher that cleans dishes twice as well as
other dishwashers but uses only half as much water. Your technical director (the
dishwasher’s inventor) has recently seen dishwashers from other companies that use the
same ideas, which are patented. The company is only very small and may not be able to
afford the legal fees involved in suing your competitors, especially if you lose.
Speaking 2
Turning Ideas into Reality
Brief
The National Endowment for Science and Technology (NESTA) was set up to maximise
creativity and innovative potential. They give financial backing in the form of grants and
loans as well as advice on production and marketing strategies to organisations with new
technological inventions. They are less interested in short-term results than other providers
of capital and they consider the social and cultural value of products to be as important as
the long-term commercial value.
Task1
Work in small groups. Read the descriptions of the applicants for a NESTA grant below.
Discuss the merits of each product in terms of: innovative potential, long-term returns and
the social and cultural impact of the technology.
Task 2
As members of the NESTA committee that awards grants, decide which product your group
would choose to back, and develop your own arguments as to why this technology is of
particular importance. Prepare to present your views to the committee.
Task3
Each group should present their chosen product and say why it is the most worthy. As a
class, decide on the winning product.
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Just Business Unit 8 Innovation
Point and click for learning on the
move
Vision of the future
Hypertag Ltd wants to produce interactive
mobile
multimedia
technology.
Their
technology uses hand-held computers which,
when pointed at an electronic device near an
exhibit at a museum or art gallery, can offer
lots of relevant information including text,
video, pictures and sound.
Camfed have come up with a revolutionary
invention in optics which will lead to the
production
of
energy-efficient,
low-cost,
high-performance displays and
ultimately
home cinema and TV. To date, displays have
been either thin and expensive or spaceconsuming and cheap.
Working tirelessly for the environment
Nanotechnology to fight bioterrorism
UTDR research has developed a machine
Nanosight
which can recycle tyres in an
synthetically reproducing a version of what
environmentally-friendly fashion. It also
converts the waste into marketable byproducts, which can produce revenue for the
has
developed
a
way
of
happens when the body first detects a virus,
using
computer
and
microelectronic
business. At present, 190,000 tonnes of
technology. This technique is not limited to
waste tyres in landfill sites or official
detecting biowarfare viruses but can speed up
dumping grounds are, among other
disadvantages, under constant threat of
unmanageable fires.
drug development and dramatically reduce
costs for pharmaceutical companies.
Speaking 3
Read the information below, then do the exercise. You should respond to the
following statements using one of the ways given in the table to express your
opinion.
Business people are always involved in negotiations and discussions and have a constant
need not only to express their own opinions, but also to discover how their colleagues and
customers feel about certain issues. Closed questions, that elicit a yes or no response are
best avoided as they are too direct, a little undiplomatic, and do not lead to further
discussion. Polite, open-ended question phrases, such as What do you think about ...? are
often much more useful.
Here are several ways to ask for and express opinions. These phrases get more specific or
personal as you progress down the lists. The expressions of disagreement also get stronger
as you progress down the list.
How to ask for an opinion
How to give an opinion
How to agree strongly
What do you think of/about ...?
What's your opinion of...?
How do you find ...?
How do you feel about ...?
Do you agree that ...?
I think that ...
In my opinion ...
As I see it ...
Speaking personally, I
think that ...
My view is that ...
So do I.
I quite agree.
I entirely agree with you.
They certainly should.
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Just Business Unit 8 Innovation
How to disagree strongly
Yes, ...
No, ...
I disagree.
I disagree with you entirely.
I'm afraid I don't agree.
I don't agree with you at all.
you're quite right.
that's just how I see it.
that's exactly my opinion.
that's how I feel, exactly.
I really can't agree.
I wouldn't accept that.
How to half agree
How to disagree
strongly/impolitely
Oh! Come on!
That's rubbish!
You must be joking!
What nonsense!
You can't be serious!
You're not serious, surely?
You can't really mean that!
Well, yes.
Yes, perhaps.
Yes, in a way.
Yes, I agree up to a point.
Yes, I suppose so.
Yes, I dare say you're right.
1.
Genetic engineering is a disaster for mankind and experiments should be banned.
2.
____________________________________________________________________
English is an easy language to learn.
3.
____________________________________________________________________
We need more nuclear power stations.
4.
____________________________________________________________________
Now that we have the Internet, we should allow more people to work at home.
5.
___________________________________________________________________
Communism is the best system of government because it distributes wealth fairly.
6.
____________________________________________________________________
Cosmetic surgery is unnatural and symbolises our obsession with our bodies.
7.
____________________________________________________________________
Although computers are a wonderful invention, they have created unemployment.
8.
___________________________________________________________________
Capital punishment should be compulsory for murder.
9.
____________________________________________________________________
Smoking should not be allowed in bars or restaurants.
______________________________________________________________________________
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Just Business Unit 8 Innovation
Writing
Exercise 1 Read the letter which offers exclusive rights for a new invention. Using
your boss's notes in the boxes, write a letter of 100 words, politely declining the
offer.
Upside Down Product Ltd.
Railway Arches Back Street
Birmingham BZ4 2R
21st September 20__
Dear Sir or Madam
I am writing to offer you exclusive manufacturing rights of my new mini-underwater TV set.
A partnership link-up which will make your company a great deal of money.
We don’t manufacture electrical items.
Just think of it. Demand will be huge from deep-sea divers and other people who have to
work under water.
I can't see a huge demand at the moment.
No longer will they have to look at the fish for entertainment when they can carry one of
our minimarvels with them. We have already patented this device, but we could allow you
to manufacture under licence.
Exclusive rights only, no licences!
Perhaps we could meet to discuss the royalty fee, say next month.
Diary booted up for foreseeable future.
I do hope you see the huge potential for this product and I look forward to hearing from
you.
Yours faithfully
A. Loony (inventor)
Vocabulary: Translate into English.
1
Идею, которую вы предложили, нелегко осуществить. Мы не готовы ее одобрить и
переносим решение до следующего совещания.
2
Никто не высказал возражений, и план был одобрен.
3
Я уверен, что все попытки, которые вы предпринимаете для того, чтобы навредить
нам, обернутся против вас.
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Just Business Unit 8 Innovation
4
Мы приветствуем неординарные решения, и мы поощряем работников, которые
способны выдвигать новые идеи. Мы делаем все возможное, чтобы создать
благоприятную атмосферу для творчества.
5
Вовсе не случайно, что отрасли, ориентированные на исследовательскую
деятельность, могут рассчитывать на завоевание устойчивых позиций на рынке.
6
Наши конкуренты претендуют на завоевание 50% рынка. Если им удастся
реализовать свои планы, мы столкнемся с жесточайшей конкуренции.
7
Так как об установке нового оборудования не могло быть и речи, было решено
модернизировать систему.
8
Согласно предварительной смете стоимость проекта составит около 200 000
фунтов.
9
Мы регулярно проводим «мозговые атаки», так как считаем, что новые идеи легче
генерировать, когда высказываются разные точки зрения.
10
Если у вас нет желания рисковать, вряд ли вы добьетесь больших успехов в
бизнесе.
11
Строители значительно превысили первоначальную смету на реконструкцию
склада.
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Just Business Unit 8 Innovation
12
Если бы мы тогда не воспользовались неожиданно подвернувшейся возможностью,
нам не удалось бы реализовать наши идеи.
13
Мы понимаем, что ваша идея – это настоящий инновационный прорыв. Но нам
нужно время, чтобы превратить ее в коммерческое предложение, если мы не
хотим, чтобы наш проект провалился, а вашей идеей воспользовались наши
конкуренты.
14
Творчество, как порождение новых идей, абсолютно необходимо компаниям для
выживания в условиях жесточайшей конкуренции.
15
Инновация не есть творчество. Нельзя путать эти термины.
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Just Business Unit 8 Innovation
Useful words and word partnerships
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
be littered with screwed up papers
financial controller
be no longer on speaking terms
with sb.
backfire
defer a decision until
cut in
guarantee to double sales
raise objections
blueprint for smth.
be reluctant to take risks
over-reliance on logic
lucky break
ignore an opportunity
flop
claim 85% of the market
take advantage of the existing
technology
innovate
masterly innovation
seek to merge multinationally
combine both creative and
innovative strength
exploit an idea
lateral thinking
face problems
flood of complaints
rule smth. out
estimate for reconstruction
coincidence
It’s no coincidence that …
research-driven industries
run creativity courses
generate ideas
judge ideas
successful implementation of ideas
on a commercial basis
brainstorming session
(in) a brainstorming session
counter-productive
evaluate
evaluation
(at the) innovation stage
turn a good idea into a commercial
proposition
innovative breakthrough
foresight
conceal one’s source
cease (to do/doing smth.)
быть замусоренным свернутыми бумажками
финансовый директор; главный бухгалтер
прекратить/больше не разговаривать c
неожиданно привести к обратным результатам
откладывать, отсрочивать решение до …
вмешаться (в разговор)
гарантировать увеличение продаж вдвое
возражать
«рецепт», наметка, калька ч–л.
не хотеть (сопротивляться) рисковать
чрезмерная надежда на логику
неожиданно представившаяся возможность
игнорировать, пренебрегать возможностью
потерпеть неудачу, фиаско
претендовать на …
использовать существующие технологии в своих
интересах, с выгодой для себя
вводить новшества; производить перемены
гениальное изобретение
стремиться к глобальному объединению
объединить творческие и новаторские усилия
использовать идею в своих интересах
неординарный подход к вопросу
столкнуться с проблемами
поток жалоб
исключить (возможность)
смета на ремонт
совпадение
(зд.)Неудивительно. что …
отрасли, основанные на использовании высоких
технологий
проводить курсы по развитию креативности
порождать, генерировать идеи
судить; оценивать идеи
успешное применение идей на коммерческой
основе
мозговой штурм
приводящий к обратным результатам
оценивать; устанавливать стоимость;
оценка
на инновационной стадии
превратить хорошую идею в коммерческое
предложение
инновационный прорыв
предвидение; дальновидность
скрывать; утаивать источник
переставать (делать что-л.), прекращать
86
Tapescript
Page 44
Sumitomo Bank
Unit 6 Prices and Commodities
Of all the markets in which goods are traded, the most volatile and unpredictable are the
commodities markets. In theory, international commodity exchanges exist to set the
standards and fix the prices of primary products such as gold, silver, copper, tin, coffee,
sugar and crude oil. In practice, the prices of some of these commodities fluctuate wildly,
earning and losing speculators' fortunes overnight.
So it's not surprising that even at the Sumitomo Bank, one of Japan's biggest financial
powerhouses and for a while the company with the highest turnover in Japan, there could
be errors of judgement. But nothing had prepared the bank for the scandal caused by just
one of its employees—Yasuo Hamanaka. Hamanaka was Sumitomo's chief copper trader.
Known as Mr 5% because of his success in cornering a twentieth of the world copper
market, he was a legend in metals trading.
But in 1997 it suddenly became known that during his 10-year career Hamanaka had lost
$2.6 billion in unauthorised deals. As scandalous as the enormous loss itself; was the fact
that it had gone undetected for so long. At his trial, Hamanaka naturally made excuses,
claiming that changes in the rules of trading at the London Metal Exchange, or LME, had
forced him to liquidate a million metric tons of copper at the wrong time. But the court
wasn't sympathetic and Mr 5% was eventually sentenced to eight years in prison.
Unit 6 Page 44
The commodities Game: Updates
Update I
Current Prices:
Tin 5,000
Gold 400
Coffee 3,500
Silver 5
Sugar 300
Copper 2,500
Oil 20
Forecast: In the short term, a rising price index is likely to push up the price of gold as a
hedge against inflation, but long-term prospects are much less attractive. Copper looks
promising. We're not predicting much movement in tin, coffee, sugar or oil. Risk-takers
should take a chance on silver.
Update 2
Current Prices:
Tin stable at 5,000
Gold up at 450
Coffee stable at 3,500
Silver down at 4.5
Sugar down at 275
Copper down at 2,000
Oil down at 19
Forecast: Gold is still very much in demand and the price will probably continue to climb.
Copper looks disappointing. Tin looks set to remain firm at 5,000 but rumours of crop
damage may boost the price of coffee and sugar. Oil prices should recover in the short
term. Our advice is to go long on silver.
Update 3
Current Prices:
Tin stable at 5,000
Gold up at 525
Coffee up at 4,000
Silver stable at 4.5
Sugar down at 250
Copper up at 3,000
Oil up at 20
Forecast: The bubble must burst soon for gold as inflation rates start to come down.
Copper is again a good investment. The tin market is still showing no movement at all and
long-term prospects are poor. We remain confident that a reduced world supply of coffee
and sugar will escalate prices. Brave speculators will hang on to silver which will eventually
come good. Buy oil.
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Update 4
Current Prices:
Tin stable at 5,000
Gold down at 450
Coffee up at 4,500
Silver down at 3.25
Sugar down at 200
Copper down at 2,500
Oil down at 18
Forecast: As predicted, the price of gold has slipped back and the indications are that it will continue
to slide. Although we've not had much success forecasting the price of copper, we now firmly expect it
to fall. Hold coffee and sugar. Oil should bounce back to somewhere in the region of $21 a barrel.
Silver must soon turn the corner as industrial demand begins to exceed supply. Sell tin.
Update 5
Current Prices:
Tin down at 2,000
Gold down at 225
Coffee stable at 4,500
Silver up at 3.5
Sugar down at 150
Copper up at 3,500
Oil up at 22
Forecast: If you've been taking our advice you will by now have sold all your gold. Buy it back - it's
about to stage a recovery. Also buy tin. Silver has picked up only slightly but get ready for a price
explosion here. Copper too will perform well. Coffee may have reached a ceiling at 4,500 but our
advice is to hold. Sugar is proving to be a poor investment. Sell oil.
Update 6
Current Prices:
Tin stable at 2,000
Gold up at 300
Coffee up at 6,000
Silver up at 5.5
Sugar up at 200
Copper down at 2,000
Oil up at 26
Forecast: Go short on gold - there's still room for further improvement. Buy silver - it's about to go
through the roof! The bottom really has dropped out of the copper market, so get rid of holdings in
copper. The clever money's on tin which looks set to double in price. Coffee surely cannot exceed an
all-time high of 6,000. Sell sugar. Problems in the Middle East may trigger a rise in the price of oil.
Update 7
Current Prices:
Tin up at 4,000
Gold up at 350
Coffee stable at 6,000
Silver up at 10
Sugar up at 250
Copper up at 3,500
Oil up at 38
Forecast: The trend for gold prices is now downward. Sell all holdings in gold. Take a chance on
copper. Sell coffee. Sell sugar. Buy oil - even at this high price, the worsening situation in the Middle
East should push it higher. Buy tin -it's about to go sky high. The silver market's going crazy! Buy as
much silver as you can afford before it takes off.
Update 8
Current Prices:
Tin up at 7,000
Gold down at 300
Coffee stable at 6,000
Silver up at 25
Sugar up at 300
Copper down at 2,500
Oil down at 22
Forecast: If you have any gold left, sell it. It's going to fall through the floor. Those who like to live
dangerously should take a risk on silver. It's ridiculously high now but it could go even higher. Sell
copper. Sell tin. Sell sugar. Sell coffee - it's reached its peak and must now fall. Apologies for our
previous misinterpretation of the oil market. A surprise peace deal in the Middle East means that oil
prices will continue to drop back and may even hit an all-time low. It's time to sell.
Final Update
Current Prices:
Tin down at 3,500
Gold down at 200
Coffee up at 8,500
Silver up at 50
Sugar up at 400
Copper up at 3,000
Oil down at 17
Now calculate your total assets by adding your remaining capital to the current value of
your holdings. Have you made a profit or a loss? Who made the most money? Did you
notice any clear trends in commodity prices? Did they help you to make your investment
decisions?
88
Resource Bank
Unit 5 Brand Management
Case Study
Study the situation below.
The Company: Burger Baron
Company profile:
Over 600 restaurants worldwide, including Asia, all of Europe and most of the Americas.
Burger Baron specialises in fast food, mostly hamburgers, French fries, milkshakes, etc.,
operating almost exclusively in shopping malls.
The problem:
Over the last 3 years, Burger Baron has seen its market share declining rapidly and has had
to shut 42 restaurants during the same period. The head office blames the main
competitors, McDougal's and Winnie's, who have been increasing meal sizes and decreasing
prices.
The competition have also added 'fat-free' and 'reduced fat' options to their menus,
responding to growing consumer concern over weight problems. To make matters even
worse, there has recently been a global disease-related meat scare, and Burger Baron is
one of several fast-food chains that have been targeted in a media-hyped class-action
lawsuit, claiming that the restaurant is responsible for increasing rates of serious health
problems like diabetes and heart failure.
Hold a meeting to develop a plan of action on all fronts to protect Burger Baron's image
and regain losses in market share.
Divide the class into the following departments to prepare for today's meeting.
Management
Shareholders want to see quick action or you know some heads are going to roll. Your job
will be to make changes while still keeping costs down.
Marketing
You are being accused of a terrible job of brand management. Put together a plan to rebuild
the company's image.
Product Development
The pressure is on you to come up with solutions on the product level. Can changes be
made to the menu?
After preparing, sequence the meeting like this:
I
A representative from each department summarises its view on the problem and
possible solutions.
Other departments take notes.
II
Each department responds to the other departments' proposals.
Work out a plan of action.
89
Unit 6 Prices and Commodities
Read the following information about different pricing strategies that companies
use and do the task below.
PRICING STRATEGIES
Premium Pricing
A high price is charged where there is uniqueness about the product or service. This
approach is used where a substantial competitive advantage exists. Such high prices are
charged for luxuries.
Penetration Pricing
The price charged for products and services is set artificially low in order to gain market
share. Once this is achieved, the price is increased.
Economy Pricing
This is a no frills low price. The cost of marketing and manufacture are kept at a minimum.
Supermarkets often have economy brands for soups, spaghetti, etc.
Price Skimming
Charge a high price because you have a substantial competitive advantage. However, the
advantage is not sustainable. The high price tends to attract new competitors into the
market, and the price inevitably falls due to increased supply. Manufacturers of digital
watches used a skimming approach in the 1970s. Once other manufacturers were tempted
into the market and the watches were produced at a lower unit cost, other marketing
strategies and pricing approaches were implemented.
Premium pricing, penetration pricing, economy pricing and price skimming are the four
main pricing policies/strategies. However, there are other important approaches to pricing.
Psychological Pricing
This approach is used when the marketer wants the consumer to respond on an emotional,
rather than rational basis. For example, 99 cents not one dollar.
Product Line Pricing
Where there is a range of products or services the pricing reflects the benefits of parts of
the range. For example car washes. Basic wash could be $2, wash and wax would add up to
$4, and the whole package would cost $6.
Optional Product Pricing
Companies will attempt to increase the amount customers spend once they start to buy.
Optional 'extras' increase the overall price of the product or service. For example airlines
will charge for optional extras such as guaranteeing a window seat or reserving a row of
seats next to each other.
Captive Product Pricing
Where products have complements, companies will charge a premium price where the
consumer is captured. For example a razor manufacturer will charge a low price and recoup
its margin (and more) from the sale of the only design of blades which fit the razor.
Product Bundle Pricing
Here sellers combine several products in the same package. This also serves to move old
stock.
90
Freemium pricing
Freemium is a business model that works by offering a product or service free of charge
(typically digital offerings such as software, content, games, web services or other) while
charging a premium for advanced features, functionality, or related products and services.
The word "freemium" combines the two aspects of the business model: "free" and
"premium". It has become a highly popular model, with notable success.
Dynamic pricing
A flexible pricing mechanism made possible by advances in information technology, and
employed mostly by Internet based companies. By responding to market fluctuations or
large amounts of data gathered from customers - ranging from where they live to what they
buy to how much they have spent on past purchases - dynamic pricing allows online
companies to adjust the prices of identical goods to correspond to customers’ willingness to
pay. The airline industry is often cited as a dynamic pricing success story. In fact, it
employs the technique so artfully that most of the passengers on any given airplane have
paid different ticket prices for the same flight.
Promotional Pricing
Pricing to promote a product is a very common application. There are many examples of
promotional pricing including approaches such as BOGOF (Buy One Get One Free).
Target pricing
Pricing method whereby the selling price of a product is calculated to produce a particular
rate of return on investment for a specific volume of production. The target pricing method
is used most often by public utilities, like electric and gas companies, and companies whose
capital investment is high, like automobile manufacturers.
Predatory pricing
Aggressive pricing intended to drive out competitors from a market. It is illegal in some places.
Value Pricing
This approach is used where external factors such as recession or increased competition
force companies to provide 'value' products and services to retain sales e.g. value meals at
McDonalds.
Now look at the situations below. In pairs decide which pricing strategies above
could be used in these situations.
1. new luxury product for an exclusive market
2. too many competitors in a weak market
3. immediate financial problems for the company
4. temporary slowdown in the national economy
5. monopoly or near monopoly situation
6. market leader negotiating a major government contract
7. big increase in costs of materials, components, etc.
8. expanding market
9. improving company reputation for quality, reliability, service and value
10. the company has recently been privatised.
91
Unit 7 Corporate Entertaining
SMALL TALK
Small talk is a vital part of doing business. It shows an ability to get on with people. Small
talk helps business partners get to know each other. Topics for small talk can come from
the immediate environment, the news, or from conversation. The art of small talk is to
make conversation about that topic.
Use the prompts below to develop small talk. Student В has the same list of prompts.
Together, you should develop a conversation of no more than two minutes for the prompts
below. See the example.
1
You know that yesterday a private helicopter crashed nearby.
A:
B:
A:
B:
A:
B:
You heard about the helicopter crash yesterday?
Yes, it was very bad. Why did it crash?
I think it was a mechanical problem ... the radio said it was ...
but the weather was very bad too ...
Yes, it was raining ...
Have you ever been in a helicopter?
2 A local newspaper has reported a rise in tourists visiting the region.
3 A top banker has suddenly left his post to join the competition.
4 A local factory has announced 400 new jobs.
5 Ten people have died in a food poisoning scandal.
6 The heating and air conditioning system has broken down.
7 There are painters and decorators around painting and decorating the place.
8 It has not rained for over three months.
9 There's a wonderful ceramic bowl on the table full of different types of fruit.
10 A hotel had to be evacuated in the night because of a fault in the fire alarm.
92
Учебное издание
Аверьянова Светлана Вячеславовна
Семенова Елена Юрьевна
JUST BUSINESS
Part II
Учебное пособие
для слушателей ВАВТ
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