U8:

Essay 1: Some experts think that a company with an established brand should
engage in brand extension to increase profits. Others believe that they should be
careful to avoid the risk of damaging the exclusive aspect of their brand image.
Discuss the ideas.

Nowadays, brand extension has been an important focus in the marketing field.
Some experts believe that it is considered as a key to increase profits, whereas others
strongly argue that using brand name on a range of new products is too risky. Each of
such arguments is reasonable for its own purposes.

To start with, the opinion in support the risk of damaging exclusivity due to
brand extension finds some evidences. Fist of all, brand extension on a large scale
can weaken the image of companies’ core product. If consumers doubt new
product’s quality, it not only causes a drop in sales but also dillutes the reputation of
original brand. Besides, one of primary reasons for the failure of expanding brand is
unclear strategies. It is undeniable that poor marketing techniques and agressive
distribution strategies may lead to the state of overexposure. As a result, companies
may suffer huge losses and miss the oppotunities to gain competitiveness.

In contrast, companies should take advantages of their well-established brand

to launch a new product. Firstly, launching a new product under an existing brand
can be easier than ever. In fact, customers are willing to buy a new product of
companies that they had positive feedback before even when it is first launched to the
market. Secondly, companies can improve profitability through using brand
extension. Thanks to companies’ good reputation, they can save lots of money related
to marketing and advertising expenses so that they can set a suitable price for new
product to attract more customers. Lastly, it also helps firms boost sales by accessing
more customers in different market segments. As a result, they have more chance to
strengthen core brand and develop their product line.

In conclusion, I am better convinced with the latter opinion. All of reasons

above have proved that developing the right extension strategy in launching a new
product will be a big bargain for any companies.
U8:

Essay 2: Many experts think that brand extension is an effective way to launch a
new product and increase profit. Do you agree or disagree?

Nowadays, almost companies tend to use their well-established brand on a

range of new product, which called brand extension. In my opinion, I strongly
believe that companies can take advantages of this strategy to launch new product
successfully as well as boost revenues for some following reasons.

To begin with, launching a new product under an existing brand can be

easier than ever. In fact, consumers would rather use products of famous brands
than a brand name which they don’t know. When customers had good impression
and positive feedback with the product they bought before, they will believe and
more loyal to this companies. Therefore, they are willing to buy any product even
when it is offered to the market for the first time. As a result, companies can gain
more competitive advantages and higher market share.

More importantly, companies can improve profitability through using brand

extension. First of all, this strategy can help companies cut costs thanks to their good
reputation. It means they can save lots of money related to marketing and advertising
expenses because customers have already known who they are. Hence, they can set a
good price for new product to attract more customers. Besides, expanding brand can
also help firms boost sales. When companies provide more kind of new products,
they can access more customers in different market segments. Eventually, they have
more chance to strengthen core brand and develop the product line to maximize their
profits.

In conclusion, brand extension can bring lots of benefits to the

companies in launching new products and improving profitability. All of reasons
above have proved that developing the right extension strategy in launching a new
product will be a big bargain for any companies.
U9:

Essay: There must be a better way than human initution to handling risks. Do
you agree or disagree?

Nowadays, some experts believe that human intuition is not the best guide to
make financial decisions and investors can use other better ways to handling risks. In
my view, I strongly agree with this statement for some following reasons.

First of all, one common cause of investors’ wrong decisions is over-

optimism. It means investors would rather trust their initial feelings for their
decision-making than consider evidences and hard facts. In fact, they always believe
that miracle will happen and they can get more profits thanks to their intuition. As a
result, they have to suffer huge losses for their irrational decisions.

More importantly, being too cautious is another problem that badly affects on
investors’ decisions. In fact, people often put a lot of emphasis on things they have
seen and experience themselves. This is also the reasons for “home bias”, which is
the tendency for investors to only invest their shares of their home countries and
ignore the benefits of diversification for their portfolios. Consequently, investors can
miss the opportunity to improve their profitability.

Last but not least, fear of failure is considered as a strong human personality,
which make people can not get rid of regretting over past decisions. Therefore, they
tend to concern much more about losses than gain. Moreover, it also makes investors
spend propotionally too much time on small decisions and not enough on big ones.
Eventually, it causes a waste of time and money due to their poor decisions.

In conclusion, it is undeniable that decision making with the heavy reliance on

human intuition is too problematic. Therefore, people especially investors should use
better ways such as collecting information carefully or listening to experts’ advices to
make sure that they have the right investment decisions.
U10:

Essay 1: There is no way you can suddenly switch to using only renewable
energies? Do you agree?

Renewable energies exploitation is considered as an effective way to reduce

the use of traditional energies as well as the negative effects of enviromental
pollution. However, until now the transition toward only renewable energies is nearly
impossible. In my opinion, I strongly agree with this statement for some following
reasons.

To begin with, the nature of energy sources themselves especially the limit
of natural condition including weather and location is still the big challenges. For
instance, the wind does not always blow so it is esstential to compensate for
variations in the amount of energy that can be produced. As a result, the production
process can be interrupted if we use only renewable energies without the use of non-
renewable ones.

More importantly, cost is definitely one of problems because power generated

from renewable energies is still relatively expensive. In fact, many of the
technologies are experimental and now there do not have the systems in place that
will allow us to generate cheap power. Therefore, manufacturers are more likely to
maintain the exploitation of non-renewable energies because they are known as
readily available sources with lower production cost.

Last but not least, it is also due to our heavy reliance on renewable energies.
As we know, nearly everything in morden society, from transportation to electricity
to basic food stuffs are the essential petroleum dependent products. Consequently, if
people insist on switching to use only renewable energies, it can result in the
interruption not only manufacturing activities but also human’s daily life.

In conclusion, all of reasons above are the clear evidences that there is no way
we can suddenly switch to use renewable energies completely. So that it would be
better for us to gradually shift to use renewable power in the combination with the
fossil fuels usage reduction.
U10:

Essay 2: The global oil price has fallen sharply over the past month. Do you
think this is positive or negative development?

The strong decline in global oil price over past month has recently heat up the
debeat in energy area. Some people consider lower oil price as a positive sign for the
economy whereas others insist that this is negative development. I am better
convinced with the latter opinion for some following reasons.

To start with, although falling oil prices can bring lots of benefits to oil
consumpting countries, it may cause some negative impacts in the long term.
Firstly, lower oil prices can lead to larger spending on transportation and production
process. Consequently, it can indirectly harm to our living environment as well as
increase the risks of diseases especially cancer. Secondly, higher consumption due
to cheap oil can not only cause the state of resource depletion in the future but also
delay investment into alternative “greener” forms of energies such as electric car.
Therefore, when oil shortage comes along with no alternative energies, production
line and daily activities will be interrupted constantly.

More importantly, the reduction of oil price is indeed the bad news for the
economy of oil exporters. In fact, these countries have heavy reliance on tax
revenues from oil exploitation and production to fund government spending. It means
that a fall in oil price can lead to a significant budget deficit and social problems.
As a result, it also requires higher taxes or cuts in government spending. Besides, oil
companies have no option but to cut back on production and lay off workers due
to falling oil prices. Moreover, some of these companies even have to face the state
of bankruptcy, which is the main cause of financial crisis.

In conclusion, a sharp fall in oil price will bring some potential risks for many
countries. Therefore, the government should make the fiscal policy to restrict the
negative impacts of this problem and stabilize the economy.