1.

5 Asking questions Grammar review

Additional 1
1.1
Here are some answers, but what are the questions?

1. How do you do? I’m fine thanks.

2. I’m an auditor. What do you work for?
3. He has been working for this company for five years. How many years has he been working?
4. I arrived yesterday morning. Did you arrive yesterday morning?
5. English, Spanish, and Italian. What language do you speak?
6. He’ll be back at 2 o’clock. When will you be back?
7. Hold on. I’ll put you through to the account department. Could you connect me to the account department
8. It costs $350.

B. Imagine that you’re talking to someone who talks rathe unclearly, and that you can’t catch some of the
information he or she gives you.

Write down the questions you’d ask this person to find out the missing (……..) information.

1. ‘I work for ……………’ Who do you work for?

2. ‘I live in …………’ Where do you live?
3. ‘I’ve been working here for ….years.’ How……………… ?
4. “We keep our sales files in the….room.’ Which………………..?
5. ‘we never phone in the morning because….’ Why ……………..?
6. ‘I started working for the form in 19…’ When ………………..?
7. ‘I’d like a … room for two nights, please’. What kind of ……… ?
8. ‘I heard about this product from Mr…..’ Who …………. ?
9. ‘The complete package costs only $.....’ How much ……….?
10. ‘They printed ….thousand copies of the report.’ How many ……… ?
11. ‘They asked me to …as soon as possible.’ What…………. ?
12. ‘Mrs …told me I should get in touch with you.’ Who………… ?

C Imagine that you're being given information over the phone, but that it's a bad line. I Write down the
QUESTIONS you'd ask to find out the missing information.

1. The consignment consists of………….pieces.

Sorry, how many pieces does the consignment consist of?

2. We usually keep in touch with him by…… .

I'm sorry, how …………………………………………………. ?

3. The…………shipment is being unpacked now.

1
 Sorry, which ……………………………………………………?

4. This specification looks exactly like…………..

Pardon? What ………………………………………………….?

5. She's working in……….at present.

Excuse me, where ………………………………………………….?

2.3 Joining sentences Grammar review

A. If we want to connect two or more ideas in a paragraph, we can do it in four different ways:

1 By using a conjunction:

TIME: and before after while

REASON, CAUSE or RESULT: and because so that so ... that such a ... that

CONTRAST: but although

I called her back so that I could confirm one or two details.

The consignment was delivered while we were very busy.

The goods were repacked 50 quickly that we had no time to inspect them.

2 By using a linking adverbial phrase (often starting a new sentence):

TIME: Before that After that And then During this time REASON, CAUSE or RESULT: Because of this That is why As a
result

Consequently CONTRAST: Nevertheless However

I wanted to confirm one or two details. That is why I called her back.

The consignment was delivered on Friday. During this time we were very busy.

The goods were repacked at once. Consequently there was no time to inspect them.

3 By using a preposition:

TIME: before after during

REASON, CAUSE or RESULT: because of due to

CONTRAST: in spite of

I called her back because of the need to confirm one or two details.

The consignment was delivered during a very busy time.

2
Due to our prompt repacking procedure, the goods were not inspected.

4 To show PURPOSE, an infinitive clause can also be used:

The procedure has been computerized in order to / so as to save time and money.

B. Join the two halves of these sentences so that they make good sense. The first is done for you as an example.

1 I never sign a letter although a phone call is quicker.

2 I often choose to write after I have checked our stock position.

3 I usually telephone before I have read it through.

4 Please check my in-tray in order to save time.

5 I shall be able to confirm this because we do not have sufficient stocks.

6 I shall be able to confirm this until we have checked our stock position.

7 We cannot confirm the order while I am away at the conference.

8 Please reply at once so that we can order the supplies we need.

9 Please reply as soon as possible when I have consulted our works manager.

Additional 2
2.1 Complete these sentences with your own.

1. He sometimes does poorly on tests, even though …………….

2. He sometimes does poorly on tests, in spite of……………. .
3. In addition to missing his family, Fred …………….. .
4. Although Math is one of the difficult subjects ……………
5. Before he talked to his boss about travel plans,………………..
6. I need a day off work in order………..
7. It’s difficult to know what to do firs, given…….
8. The reason I want to go to Rom is……………………….
9. The project has been delayed due…………………………..
10. As I’ve got some free time,…………………………….

2.2 Identify the mistakes and correct them

1. Although I have lived in the United States for almost one year. I often feel homesick and miss my family.

2. Even though I was used to them. Still I wasn’t comfortable.

3. However I began to miss things in India. For example, food, my friends, the warm climate.

3
4. In addition to he told me about culture shock, my advisor suggested that I should be patient.

3.8 Present tenses

Additional 3
3.1. Complete the e-mails with the correct form (present simple or continuous) of the verbs in brackets.

From: samwakely@nhn.com

To: narinderbarr@ nhn.com

Subject: Can we arrange to meet?

Dear Narinder

I 1(write) ‘m writing to ask if we can meet to talk about plans for the new IT system. Everything 2. (be)………. Fine here
in general. But we 3.(currently/ have) ………. Problems with saving data. The developers 4. (know)……….. about the
problems but can’t find a solution – so we 5.(think)….. the lunch date will need to be postponed. I was going to suggest
that we meet on Friday 3 June as I 6. (usually/ see) ……. Steve Barker at your office one Friday a month. But I 7.
(understand)…… that you 8. (not/work) ……….. Fridays. So how about Monday 23 May? By the way, what’s it like
coming back to work after maternity leave? 9. (imagine) …….. it must difficult when the baby is so young. She 10.(look )
……. Lovely in her photo. Anyway, let me know if Monday 23rd would suit you.

Regards

Sam

3.2 Match the verbs and nouns.

1. take a. a balance

2. attend b. a risk

3. strike c. an example

4. set d. a problem

5. resolve e. an event

6 found f. a company

3.3 Now use the verb and noun pairs to complete the sentences.

1. Managers find it hard sometimes to strike a __balance__ between being too informal and too formal with their
employees.

2. How many company events do you have to __________ every month?

3. My supervisor always works late-I think he wants to ________ an example.

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4. How did you manage to______________ the problem?

5. Good leaders are rarely afraid to _____________ risks.

6. My colleague has decided to ________________ his own company.

3.4 Which is the odd one out in each set?

1. a manager b chief executive c subordinate d leader

2. a precedent b success c limit d target

3. a achieve b reach c meet d lose

4. a reduce b improve c develop d increase

5. a deadline b cost c expectation d dismissal

6. a positive b trusted c poor d valued

7. a fire b motivate c reward d inspire

8. a risk b consensus c position d chance

4.7. The passive

Additional 4
4.1 Underline the correct active or passive forms in italics

A moving story
Logistics is a word that is seen/ sees most often on side of trucks. But it has a bigger meaning: how the flow of
materials through an organization, from raw materials to finished goods, is managed/manages. Logistics might
sound a simple enough business of moving things around, but it is growing/ is being grown more complex as
customers demand better services, and as new technology and greater use of the internet are opened up/ open
up new ways of passing around information.

The Japanese-led methods of lean production and just-in-time supplies tended to be kept/to keep within
factory walls. Following production, outgoing products were delivered/ delivered to distributors in batches, only
to sit around in warehouses. Now, however, companies are more demanding, seeking to eliminate both
incoming and outgoing inventory. This does/ is done in several ways, For example, in order to simplify what
goes/is gone into the factory, companies buy/are bought in sub-assemblies rather than individual parts.
Companies are also trying to build to order (BTO, a comprehensive, flexible freight operation requires/ is

5
required. This is such a challenging task that companies are reluctant to do it all themselves, which is why more
and more of them are outsourcing/ being outsourced delivery and logistics to third parties.

This movement is forcing/is being forced the freight transport industry to change. Manufacturers want
custom-designed delivery systems, using all types of transport: land, sea and air. The distinction between postal,
express and logistics services has almost vanished/ has almost been vanished. And the fastest growing area of
business is outsourced third-party logistics.

5.5 Preposition -1
This exercise gives you practice in using the right preposition together with a verb or a noun. From now on there will be
an exercise of this type in each unit of the Workbook. So that you can revise these exercises later, use a pencil to fill in the
gaps. Then you'll be able to erase what you wrote and do the exercise again another time.

1. Fill the gaps in these sentences with a suitable verb or noun + preposition from the list below.

1 In the middle of the meeting our client... brought up. up the subject of compensation.

2 All reports need to be carefully written and above all ................ _____facts.

3 The managing director was very satisfied; he.................... _____my

recommendations.

4 If we want to fill the post, we'll have to...................._____a qualified technician.

5 The clerk managed to...................._____the two missing packages.

6 Computer operators wanted. Please...................._____the manager within.

7 The whole company is going to............-----------_the South American order.

8 The management and the workers.................... each other_____the strike.

9 The clerks had to work long after five to deal with the.................... _____orders.

10 Our agent.................... $500)_____the fire-damaged merchandise.

account for

benefit from bid for

Additional 5
5.1. Complete the sentences with on, in, by, into, to, with or of.

1. Janice is very good at dealing ___with___ problems in the workplace.

2. The manager needs to take control _________ the situation immediately.

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3. If management aren’t careful, staff will go ____ strike.

4. A friend of mine recently asked me to go _____ business with him.

5. Today’s management session will focus ______ marketing strategies.

6. Managers need to make company information more accessible ______ staff.

7. I don’t think a good leader is someone who rules ______ terror.

8. A good leader should be open _____ new ideas.

9. What do you think is needed to succeed ________ business?

10. I’d say your way of managing staff is similar _____ mine.

5.2 Complete the sentences with to, for, from or in.

1. I am thinking of applying __for__ the position of Team Leader.

2. We are looking for people with a degree _____ pharmacology.

3. Peter is responsible _____ over 100 members of staff.

4. The latest recruit graduated ______ university only last year.

5. Sergio has been assigned _______ this branch since Paula left.

6. Who will be accountable ________ the quality of all our work?

5.7. Referring to the past

Additional 6

6.1. Fill the gaps in these sentences with a suitable verb in brackets (present perfect or past simple).

Cause for scandal?

Executive pay

In August Pierre Bilger , a former Chief Executive of Alstom, (1 decide) decided to hand back the 4.1 m severance
package granted to him in March when he (2 step)____ down from the trouble French engineering group. He said he(3 not
/ want)___ to be cause for scandal among the 100,000 Alstom employees he (4 direct)___ before the company was
rescued by the French government.

Mr. Bilger’s example (5 be / not / yet)___ followed by his compatriot Jean-Marie Messier, the former boss of Vivendi
Universal. Mr. messier is still fighting to keep the €20.5 m severance package due to him after the company (6 sack)____
him.

7
 Yet golden parachutes and severance pay are only one part of executive compensation. Share options (7 already / come)
___ under close investigation. The amounts which companies (8 award) --- through share options in recent years are far
higher than those paid out by golden parachutes or by any other mechanism. Even in 2001, after the stock market bubble
(9 burst)___, the value of stock options granted to the CEOs of the companies on Standard & Poor’s 5000 Stock Index (10
rise) ___ by 43.6% in a year when the total returns from those companies (11 fall)___ by almost 12 %.

Stock options (12 lead to)___ angry reactions from both shareholders and the general public. Last year, for example,
Jeffrey Barbakow, the Chief Executive of Tenet Healthcare, a hospital management business in California, (13
receive)___ $111m from exercising his stock options in a year when the company’s share price (14 drop) ___ by nearly
60%. After a group of shareholders led by a Florida doctor (15 threaten)__ to remove him, Mr. Barbakow (16 resign)___
last May.

6.7 Preposition -2
1. Fill the gaps in these sentences with a suitable word + preposition. First of all, try to do the exercise without looking at
the list below.

1. I’ll be ...calling on you when I'm next in town.

2 If you suffer any loss, we will.................... you………...that.

3 He was unable to...................._____the extra work and became ill.

4 I’m afraid I can't...................._____another department's work.

5 As you appear to have been overcharged, we will.................... your account_____

the sum of ¥600,000.

6 It is important to...................._____any special Customs regulations.

7 All members of a team must...................._____each other.

8 We've been...................._____our partners in the USA for several years.

9 Due to falling sales, the company has...................._____its R & D programme.

10 They're...................._____doing a much better job than that.

11 The cargo...................._____four one-ton crates.

12 She couldn't.................... them……..the need to redesign the product.

call on capable of collaborate with comment on compensate ... for comply with consist of convince ... of co-
operate with cope with / credit... with cut back on

Additional 7
7.1 Complete the sentences using multi-part verbs with in, up, down and off. Which of the multi-part verbs take an
object?

8
1. I’m still shocked, The realization hasn’t sunk ___in___ yet.

2. The CEO has stepped _______ from his position due to the company’s recent poor performance.

3. We’ve been working for weeks to set ____ a deal with a former competitor.

4. Unfortunately, the negotiations broke _______ after just a few hours.

5. Shall we call ______ the meeting as it no longer has any purpose?

6. One of my colleagues hasn’t turned _____ for work in ages.

7.2 Now complete the sentences with by, to, about, in, of or on.

1. A very good explanation ___of___ this can be found in an interesting study.

2. Successful innovations were based _____ tried and tested technology.

3. The products that failed had no clearly defined solution ______ mind.

4. What we’re talking _____ is a new way of looking at things to meet a real need.

5. That brings me on _____ news of an event organized by The Economist.

6. That’ll be followed _______ the announcement of the winners.

6.8 Looking into the future

Additional 8
8.1 Underline the correct future forms in italics.

1. The department’s going to allocate / allocates more resources to the project that intended in future.
2. We hold / ‘re holding a strategy meeting next Wednesday.
3. I’ll be / ‘m going to be happy to answer any questions later.
4. The company will meet / is meeting all its objectives by spring.
5. Sorry, I can’t talk now. I’ll call / call you back later.
6. The next plane will leave / leaves at 11.03.
7. I begin / ‘m going to begin my talk by looking at successful strategies.
8. What will you do / are you doing tomorrow evening?
9. Looking at the high level of demand, we aren’t going to have / aren’t having enough resources.
10. Let me move on now and I come / ‘ll come back to that point later.

C. Fill the gaps in these sentences, using the verbs below,

1. Will you be able to find out when the first plane to Paris ..leaves?..

2 Tomorrow, I............................................ the boss for a rise and that's definite!

3 By the time I retire, I............................................ here for 10,000 working days,

9
4 She............................................to Spain on Tuesday to meet our clients in Seville.

5 I............................................the documents in the post to you first thing tomorrow.

6 Please don't disturb me for the next half hour, I............................................Tokyo. .

7 Excuse me, Mr Grey, when................you......................................... to our Chinese clients?

8 While you................ in Stockholm,................ you............................................ Mr Olsson?

9 Stand back, everyone, he looks as if he............................................!

10 Don't worry, I'm sure the spare parts............................................ soon.

arrive ask be fly leave / phone put see sneeze work write

7.6 Preposition -3
1. Fill each gap with the correct form of the verb, adjective or noun + preposition from the list below.

1 Company turnover has been so good that we shall be able to ...invest... in '" some new production equipment.

2 We are one of a large number of firms which are.................... _____

environmentally safe projects.

3 This uncertainty about oil prices could...................._____our plans for expansion.

4 The accounts manager asked the auditors to.................... _____the annual figures first.

5 Our marketing department is encouraging customers to.................... _____their old

machines and buy replacements.

6 If you're dealing with the French orders be sure to...................._____the Duchamp

order over all others.

7 In many countries the price of a car is.................... _____ten years' wages for a worker.

8 Most enterprises supplied by BEC...................._____their product.

9 Our company has been.................... _____the same bank for 30 years now.

10 Our overseas customers usually.................... _____damage or loss at sea just to be safe.

deal with dispose of equivalent to give priority to have a look at

have confidence in insure against interfere with invest in / involved in

10
Additional 9
9.1. Complete the sentences with of, at, in, against, to or with.

1. I think we need to take a fresh look ___at__ the issue of foreign aid.

2. Many people are still unaware ______ the exploitation of children.

3. The company has been bombarded ____protest.

4. We’re planning a demonstration _____ the new nuclear plant.

5. Some countries receive millions of dollars each year _____ aid.

6. The boycott was a waste _______ time.

7. We need to draw attention _____ poverty in this country.

8. Debt relief should be _______ the top of their agenda.

7.8 Reported speech

Additional 10
10.1. Complete the sentences using reported speech

1. ‘ Have you seen Janis Browne, the communications manager?’

My colleague asked me if I had seen Janis Browne, the Communications

Manager .

2. “ I can’t attend the training session’.

Marlon said …

3. ‘The meeting won’t take long’.

My manager confirmed that …

4. ‘Should I book the conference room for 2 p.m.’

My colleague asked …

5. ‘I may have to leave work early because of a doctor’s appointment”.

Kate explained that …

11
 6. ‘I’m meeting Andy for lunch’.

Pete said …

7. “We have to be at the airport by 9.45’

My boss told us …

8. ‘If I were you, I’d take a break.’

My colleague advised …

8.9 What if…?

Additional 11
11.1. Fill the gaps with the correct form of the verbs in brackets

1. If I (find)______ one on eBay, I (not / buy)_____ this, which probably costs twice as much as it should.

2. More consumers (shop)_____ on the internet if there (be)______ better security.

3. If I (see) _________ the fake version, I (not/ buy) _______ the genuine brand-but I didn’t.

4. If electronic markets (not/exist) _________ consumers (have) _______less choice.

5. If we (not / patent)____ the design soon, someone else (do)_____ before us.

6. If you (want)_____ this meeting finished by three o’clock we (have) _____ to hurry.

7. The project (not / be) _____ as effective if it (not / appear)_____ on the news tonight.

8. People (buy) _____ far more branded goods if they (not / be) _____ so expensive.

9. The supermarket (sell) _____ the grey imports if we (not / take) _____ legal action as quickly as we did.

10. If I (be) _____ you, I (not / buy) _____ a fake watch as you’ve no guarantee it will work.

9.7. Grammar review Infinitive and gerunds

Additional 12

12.1 Underline the correct forms (gerund or infinitive) in italics

1. We need to be good at innovating/ to innovate to retain customers.

2. They advertised the company setting/ to set up an online auction.
3. Can we meet in order speaking / to speak about distribution?
4. It’s essential investing / to invest in new operations.
5. We can’t risk ignoring / to ignore this share tip.

12
 6. I suggest evaluating / to evaluate our website immediately.
7. Building / to build up long term relationships isn’t easy.
8. Have you decided taking over / to take over another business?
9. I’ve managed negotiating / to negotiate a better deal!
10. The product is so popular that it’s difficult meeting / to mee
11. t demand.

11.8. Grammar review Articles a, the,

Additional 13

13.1. Find the mistakes in these sentences and correct them(a, the, or no article ). Only three sentences are correct.
Identify the correct sentences and find and correct the mistakes!

1. I have a job in a leading design company.

2. Gabi Hart is director.
3. A manager is not the same as leader.
4. Employees don’t want to be led; they want to be managed.
5. Does the fear really motivate people to do better in their work?
6. Most managers learn from the experience.
7. Bob is one of youngest managers here but he’s also one or the best..
8. Culture can affect attitudes to management.
9. Newspaper article I read on the train this morning was very positive about management today.
10. I don’t know of many really strong leaders in the world at the moment.
C. Fill the gaps in these paragraphs with a, an, one, the or o (no article):

1. More and more, …. shoppers are by-passing …. household names for …. Cheaper no-name products .. shelf over.
This shows that even … biggest and strongest brands in … world are vulnerable.

2 .… larger …meeting, …longer it may take to reach …decision. There seem to be …ideal sizes for … meetings,
depending on … purpose. … meeting where … information is being given to …people can be quite large, because there is
not likely to be much discussion, and … questions may be asked by .. few individuals on everyone else’s behalf.

3 . Even … one-to –one …small informal meetings are structured (usually with … agenda) and planned. They are
different from … chance conversations in … corridor or over …coffee. …small informal meetings may also take place or
continue during … meal.

4 . All … meetings have … thing in ... common: … role-playing. … most formal role is that of … chairman. He ( and it
is usually … he) sets … agenda, and … good chairman will keep … meeting running in … time and to … point. Sadly,
… other, informal role-players are often able to gain …upper hand. Chirf is …”constant talker”, who just loves to hear
his or her own voice.

12.4 in … Prepositional phrases - 2

13
1. Fill the gaps in these sentences with a suitable prepositional phrase from the list below.

1 Could you please remain ...it contact with... the head office until the negotiations are completed?

2 As long as the talks are........................................ the negotiating committee will

say nothing to the press.

3 We are forwarding all the items on the list........................................ your request.

4 Most companies only deliver such items........................................, as it is cheaper

in the long run.

5 We have to request payment........................................ for all orders under $100.

6 We must ask you to take full responsibility for the goods, as long as they are

7 Our local agent will then make a final decision........................................ the

regional director.

8 We must ask you to treat this information........................................ until the

report is finally published.

9 Ms Andreotti has been........................................ our Rome sales office since last

year.

10 Although the partners were.................................., they succeeded in paying our bill.

in accordance with in advance in bulk in charge of in confidence in consultation with in contact with / in debt
in progress in transit

Additional 14

14.1. Complete the sentences with by, for, of, on, to or with

1. Shares in corporations are usually sold _ on__ the Stock Exchange.

2. One advantage _________ working for TBF is the career structure.
3. Who is responsible _________ staff development in this department?
4. The key ________ survival for most companies is flexibly.
5. Companies need to be able to adapt ______ a changing environment.
6. A team of ten people reports _______ the IT Manager.
7. Many companies used to provide workers ________ lifelong employment.
8. The Head of Procurement is in charge _______ Purchasing.
9. Traditional companies are being replaced ______ networks of companies working together.
10. Which division deals ______ issues related to patents?

14
12.7 Modal verbs
Additional 15

15.1. Look at he sentences with past modal verbs. Find and correct the mistakes

1. I think I may had made a mistake in the calculations.

2. We waited too long. We should have patent our new process immediately.
3. With more time and money, we could won the competition.
4. You shouldn’t spent have so much time on one particular idea.
5. If they’d had more support, it might had been easier for them.
6. What could I have did to improve my design?

15.2. Complete the sentences appropriately with the correct past form of the modal verb

1. I went without any new brochures. I should …. have taken some.

2. Everyone here blames James for crashing the computer system. I’m not so sure. He may ….
3. I ate so much at the business lunch that I feel quite ill. I shouldn’t …..
4. My boss didn’t ask me to write the report, but I could ….
5. I’m afraid John’s not here. I don’t know where he is. He might……
6. We’re really grateful for the grant we received as it allowed us to focus on new product development.
Without the grant, we mightn’t …
7. Jason didn’t attend the launch although he was free. He could …
8. We tried to be too revolutionary. That’s why the product failed. We probably should …

13.8 Relative clauses

C. Fill the gaps in these sentences with a suitable relative pronoun. Add any commas that are missing.

1 The person ...who... impressed me most was Mr Wright. –NO COMMAS

2 Mr Wright .................... application form we received yesterday is a very promising

candidate.

3 His CV ……….. you showed me yesterday is most impressive.

4 He has excellent references from his present employers .................... are ACME

Engineering.

5 He was working in Norwich .................... they have their HQ.

6 His qualifications .................... you commented on are excellent.

7 The personnel officer ....................interviewed him says that he's available at once.

15
8 The thing ....................impressed her most is his personality.

D. Make each of these pairs of sentences into a single sentence, using a relative pronoun.

1 She told us about her experiences in India. This was interesting. She told us about her experiences in India, which
was interesting....

2 I heard about the vacancy from a friend. This friend works in Personnel.

3 She gave me some information. This information was supposed to be confidential.

4 I heard about this from a colleague. This colleague assured me it was true.

5 Apparently, we sent the forms to an address. This address was wrong.

6 I had to fill in a six-page application form. This was very time-consuming.

7 I applied for a job. I saw this job advertised in the newspaper.

8 You gave a person's name as a reference. This person is unwilling to comment on you.

Adjectives and adverbs

Additional 16

16.1. Look at the sentences with adjectives and adverbs. Find and correct the mistakes

1. There was a dramatically jump in turnover last year.

2. Share prices have fallen very quick.
3. The company has been extreme slow to cut costs.
4. Company performance is expected to improve steady over the year.
5. Following the takeover, the future looks positively for MNP.

16.2. In these sentences the adverbs are in the wrong position. Move them into better positions in the sentences.

1. There has been a mistake definitely in this invoice.

2. European computer manufacturers are going apparently to work together on this project.

3. Do you think the firm ever will get the Chinese order?

4. The final price was much higher than occasionally the purchaser expected.

5. The customer was quite initially satisfied with our after-sales service.

6. We asked to see the chief negotiator before we made specifically the decision.

7 . The CEO has announced just the export team for the Taiwan project.

16
8. We are going certainly to investigate the whole question as soon as possible.

9 . If the correct procedure is followed you will have hardly ever a breakdown.

10. Although the freight carefully was handled, important components were broken in

transit.

READING FOR STUDENTS OF MANAGEMENT

DEPARTMENT

Text 1 The Nature of Business

Paragraph 1

Business is the human activity related to material things. It is necessary for civilization. It is found in all societies, even
the simplest ones. Business may include the production of goods: making airplanes, building buildings, and constructing
paper boxes are examples of production. It can also provide the financing for these activities . Lending money, trading
stocks and bonds, and selling insurance policies relate to the securing of capital for business activities. Other forms of
business include merchandising, which is the selling of products, and providing various services, such as accounting,
distributing, and repair. Business, then is the activity of producing and distributing goods and services.

Paragraph 2

In our study of business it is necessary to understand the four basic factory of production. These four factors are land,
labor, capital, and entrepreneurship. What is meant by there four terms ?

Paragraph 3

In order to produce things, it is necessary to use land. Here, the term land used in the most general way. It refers not only
to a piece of real estate where we might build a factory, but it also means all the raw materials used for production. Some
of these raw materials are found on the earth’s surface, such as trees, which yield wood for lumber. Other raw materials
are found under the earth’s surface in mines and oil wells, and still other raw materials may be extracted from the air, All
the raw materials for production come from the land, the air, and the oceans.

Paragraph 4

Labor refers to the use of mental or physical work to produce goods. Most labor changes raw materials into finished
products and then distributes these to buyers. In industrialized countries, labor is generally more mental than physical. For
example, in both manufacturing and agriculture machines accomplish the very tiring physical work that unskilled laborers
used to do. In other industries computer programmed robots and other forms of data processing equipment perform many
of the jobs which used to require a lot of mental labor. Therefore, to a certain extent he next factor, capital, can be used to
replace labor or reduce the amount of physical and mental labor that humans have to use in order to conduct business.

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Paragraph 5

In everyday language, capital means several things. The most general meaning is wealth or money But it also refers to the
equipment that money purchases. As one of the basic factors of production, capital is all of the thing that workers use in
production and distribution. It includes their tools, machines, and buildings such as factories and warehouses where goods
are produced and stored. Capital, therefore, refers to anything which helps to produce and distribute goods.

Paragraph 6

Putting together land, labor, and capital to make something of value, is called entrepneurship. The entrepreneur is the
person responsible for controlling and directing the other three factors. The entrepreneur does not make things with his
own hands unless he also a worker. In a business the workers take orders from the entrepreneur. He is the leader, and the
employees follow his direction.

Paragraph 7

Entrepreneurship includes some other important activities. The entrepreneur is responsible for initiating business activity.
He must begin his business by bringing together the land, labor, and capital. Next, he must manage the business by
deciding the general policies for business operation. In order to be successful, an entrepreneur must also be innovative. He
must look for new products or new way of making things, and new methods of distribution, or he must offer new services.
He must be able to decide on the value of things which other people invent, whether it is a new toy, a new method of
filing, or a new way of advertising. Finally, he bears all the risks of the business.

Paragraph 8

Everyone connected with a business shares in the risks of the business. When a company goes bankrupt, that s, becomes
unable to pay its debts, it causes problems for many people. It is hard for the employees who may have to seek work
elsewhere; the customers must look for another place to buy their products; creditors usually lose some of the money that
they have lent to the company. But the entrepreneur takes the biggest risk. If the business succeeds or fails, he must pay
them up to the limit of his ability to pay. If he is skillful-and lucky-the money he receives from his business venture will
pay for the land, labor, and capital, and there will still be some extra money remaining for him business venture is not
enough to pay for all of the costs, the difference is a loss.

Exercise 1 Match the words and their definitions.

1. business a. a person responsible for controlling and directing the basic

factors of production such as land, labor, capital.

2. capital b. extra money remaining after payment for the land, labor, and

capital

3. entrepreneurship c. is the activity of producing and distributing goods and services

4. entrepreneur d. wealth of money, all of the things that workers use in

production and distribution

5. profit e. includes some other important business activities.

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Exercise 2 Choose the closest meaning for underlined words.

1. securing of capital means:

a. to make safe your capital b. to keep capital

2. raw materials extracted from the air

a. take or pull out

b. to get them from the ground or to separate it from another substance.

3. machines accomplish

a. succeed in doing the very firing physical work

b. perform

4. to conduct business

a. organize b. guide

5. business venture

a. project which is new b. risky undertaking in business

Text 2 Breaking into new markets

Should luxury goods firms go into the hotel business?

Giorgio Armani is already one of the most diversified brands in fashion. As well as haute couture and everyday clothes,
Mr. Armani and his firm create scent, cosmetics, spectacles, watches and accessories. Customers can purchase Armani
furniture, flowers, chocolate, sweets, jam and even marmalade. There are Armani cafes and restaurants in Paris, New
York, London and other cities. An Armani night club recently opened in Milan, Now Giorgio is branching out still further.
On February 22nd his firm announced a $14 billion hotel venture with Dubai’s Emaar Properties, the Middle East’s largest
property developers. Mr. Armani will be in charge of the design for ten new hotels and four luxury resorts, to be built in
the next six to eight years.

Armani’s is the boldest move so far by a luxury goods company into the hotel business. But it is by no means the
first. In September 2000, a hotel designed by Donatella Versace opened on Australia’s Gold Coast. In February

, Bulgari, and Italian jeweler, confirmed a joint venture with Ritz-Carlton to build six or seven hotels and one or two
resorts, Salvatore Ferragamo, and Italian shoemaker, has designed four hotels in Florence,

But in the first half of last year, both the fashion and travel industries were doing badly as travel and luxury
follow the same economic cycle. So does it make sense for designers of luxury goods to go into the travel business?

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Armani and Bulgari would say yes. Mr. Armani considers hotels a logical extension of his aim of promoting his brand in
all walks of life. (So can Armani toilet paper be far behind?) Rita Clifton, Chairman of the consultancy Interbrand, says
that this strategy can work. A strong product, strong images and a strong experience such as staying at a fashion
designer’s hotel, can combine to make a super strong brand, claims Ms Clifton. To fit the firm’s luxurious image, Bulgari
says that its hotels must be as upmarket as it is possible to be. Because small is considered more exclusive, Armani and
Bulgari plan to launch mostly smallish five-star hotels. Armani’s Dubai hotel, due to open in 2007, will be an exception,
however, with 250 rooms. Bulgari’s Milan hotel will have no more than 60 rooms,

Losing control of their brand is the biggest risk for luxury firms expanding abroad or venturing into a new line of
business. Over the years, Pierre Cardin, Yves St Laurent and Christian Dior have each lost their good names by giving out
licenses all over the world to firms that did not deliver the appropriate quality. Calvin Klein’s current problems are related
to the company’s loss of control of the distribution of its products in many countries. But designer’s hotels can generate
positive publicity. Even if Bulgari’s hotels turn out not to make any money, the venture could be seen as an expensive yet
effective advertising campaign.

Mr. Armani’s hotel plans are more ambitious and the danger of brand dilution much greater. Armani says that the
management company for its hotel venture will have its head office in Milan rather that Dubai and that Mr. Armani will
be fully in charge of design. So far Mr. Armani has managed to control his brand tightly despite being involved in many
different businesses. Hotel, however, are a bigger challenge than flowers and marmalade.

Match the pairs from the article.

1. Fashion a. venture
2. Head b. designer
3. Brand c. cycle
4. Joint d. goods
5. Property e. campaign
6. Economic f. developer
7. Luxury g. office
8. Advertising h. dilution

Text 3 Money can buy you love

Glossary

Manipulated influenced to do what someone else wants

Corrupt make morally bad

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 Aspirations hopes and wishes

Bombarded repeatedly attacked

Veterans very experienced people

Are we being manipulated into buying brands?

BRANDS are accused of all sorts of evils, from threatening our health and destroying our environment to
corrupting our children. Brands are so powerful, it is said, that they force us to look alike, eat alike and be alike.

This grim picture has been made popular by many recent anti-branding books. The argument has been most
forcefully stated in Naomi Klein’s book No Logo: Taking Aim at the Brand Bullies. Its argument runs something like this.
In the new global economy, brands represent a huge portion of the value of a company and, increasingly, its biggest
source of profits. So companies are switching from showcasing product features to marketing aspirations and the dream of
a more exciting lifestyle.

Historically, building a brand was rather simple. A logo was a straightforward guarantee of quality and
consistency, or it was a signal that a product was something new. For that, consumers were prepared to pay a premium.
Building a brand nationally required little more than an occasional advertisement on a handful of television or radio
stations showing how the product tasted better or drove faster. There was little regulation. It was easy for brands such as
Coca-Cola, Kodak and Marlboro to become hugely powerful. Because shopping was still a local business and competition
limited, a successful brand could maintain its lead and high prices for years. A strong brand acted as an effective barrier to
entry for competing products.

Consumers are now bombarded with choices. They are also harder to reach. They are busier, more distracted and
have more media to choose from. They are “commercials veterans” experiencing up to 1.500 pitches a day. They are more
cynical than ever about marketing and less responsive to messages to buy. Jonathan Bond and Richard Kirshenbaum,
authors of Under The Radar-Talking TO Today’s Cynical Consumers, say “some of the most cynical consumers are the
young.” Nearly half of all US college students have taken marketing courses and “know the enemy”. For them, “shooting
down advertising has become a kind of sport’.”

Marketers have to take some of the blame. While consumers have changed beyond recognition, marketing has
not. Even in the USA, home to nine of the world’s ten most valuable brands, it can be a shockingly old-fashioned
business. Marketing theory is still largely based on the days when Procter & Gamble’s brands dominated the USA, and its
advertising agencies wrote the rules. Those rules focused on the product and where to sell it, not the customer. The new
marketing approach is to develop a brand not a product-to sell a lifestyle or a personality, to appeal to emotions. (It is a
much harder task that describing the features and benefits of a product.)

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However, brands of the future will have to stand for all of this and more. Not only will they need to be a stamp of product
quality and a promise of a more desirable lifestyle but they will also have to project an image of social responsibility.

Text 4 Learning some problems.

If you look at almost any newspaper today, you’ll see lots of reports of business closing down and of other businesses
starting up. Lots of people are starting up their own little businesses, but only a small number of them seem to succeed.
Why is this so? Well, there are several reasons.

Let’s look at some of the ways in which a business may be badly managed, to see if we can learn some lessons from
them about good management. First, many new businesses are under capitalized, that is there isn’t enough money
available to them to give them a real chance to succeed. If everything does smoothly right from the start, they may
survive. But if they encounter problems and delays, and they are under capitalized, they will be in trouble. So our first
lesson is: never attempt to start a new venture if you haven’t got enough capital to see it through.

Second, many new businesses fail because they are in the wrong place or their premises are unsuitable-too big or too
small. This may mean that they can’t afford to pay the rent and other costs, or they operate inefficiently because they
haven’t got enough room to land properly or to expand if they need to. So our second lesson is: don’t be in too much of a
hurry to settle on premises if you aren’t quite sure they are right.

Third, some ambitious mew businesses spend too much of their capital on presenting a glossy image, with expensive
fittings and office furniture which cost great deal of money but do not contribute anything to meeting the expenses. So our
third lesson: get your priorities right and don’t spend too much of your capital on non productive items.

Fourth, many businesses fail because their managers have not done their homework, in two ways in particular-in
researching the market to make sure the product they have in mind is really in demand and not already available from lots
of other companies at competitive prices, and in investigating and setting up ways of distributing the finished product.
That’s our fourth lesson: always research the market before you decide to enter it. Be very sure you have a system of
distribution ready before you even start to produce.

Exercise 1. Match the words with the following definitions.

1. the place where a business a. starting up

operates

2. something produced b. under- capitalized

3. difficulties c. premises

4. When a business is beginning

to function we say it is ... d. closing down

5. When a business is nearing

the end of its operation we say it is e. problems

6. A situation where a business

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 doesn’t have enough money f. fail

Exercise 2. True (T) or (F) false?

1. ‘under-capitalized’ has the same meaning as ‘credit’ T F

2. This text is about some problems of running a business. T F

3. The most important reason that business fail is bad management. T F

4. Even if you produce the finest product of its type in the world, but no one wants to

buy it or you can’t get it to the people who do, you will fail. T F

5. Installing the right equipment, hiring a suitable workforce and raw materials are not

important factors in business. T F

Text 5 THE MARKET

Special Terms
Marketing
All activities that move goods from producers to consumers: production, promotion, distribution, packaging,
pricing.
Consumer
One member of the market; the user of a product.
Market
People who can and will make purchases to satisfy their needs.
Product
In marketing, a consumer good, an industrial good, a service, or an idea.
One specific product in a category; a brand.
Marketing concept
The idea, basic to modern marketing, that goods are produced in response to
consumers needs.
Advertising
Promotion; any means of promoting the sale and use of a product.
In marketing, paid promotion through the major media.
Merchandising
Sales promotion; paid promotion through minor media.

Communicating the marketing concept

Marketing begins with a consumer need. Something is produced in response to that

need. In a marketing society, the consumer rules. Marketing societies have produced a
great abundance and variety of consumer goods. They have done this by means of
competition. Each producer competes with every other producer for a share of the
market. The market, simply, is people who have money and are ready to spend it. But
consumers have a finite amount of money to spend. They will buy only what they want

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and need.
As a nation becomes more developed, consumers become more demanding. Their
needs become more specific, and they want products that satisfy their changing needs.
Only those producers who compete effectively will sell their products and survive.
Successful producers are guided by the marketing concept: response to consumers
needs.
Marketing is matter of communication between consumers and producers.
Advertising is not the producer’s only means of communication. The product itself, its
packaging, brand name, and price carry a message to the potential user. So does the
place where the product is sold.
Marketing communications, then, can be defined as all marketing activities visible to
consumers that may influence their purchasing decisions. These activities include both
advertising and merchandising. Everyone involved in those activities is a marketing
communicator.
The basis of all marketing communication is one essential question: “How can we
best inform consumers that our product meets their needs?” The answer to that
question is what an advertising campaign is all about.

Market research
Planning an advertising campaign begins with an analysis of the market situation.
Situation analysis moves from the general to the specific. It begins with the broad
economic picture. Is this a time of growth, recession, inflation? Is it a time for optimism
or pessimism?
Next, the company’s general marketing objectives must be considered.
Does the company aim to increase or maintain its market? Is it aggressively pursuing
growth? Is it introducing a new product or promoting an established one? Is it
pioneering, or is it responding to a change in the competition? Situation analysis ends
with observations about problems with and opportunities for promoting a specific brand

The purpose of market research is to solve a problem or exploit an opportunity. For a

marketing communicator, a problem might be “Our sales in the Southeast have
dropped. Will increased advertising in local newspapers help?” An opportunity
might be, “Our competition’s market share decreased in the last year.
What promotional activity would help us take advantage of the situation?” Research is
the gathering and analyzing of relevant data. “Relevant” is the key word. Facts and
figures are generally abundant and not difficult to secure. Much more difficult is
selecting useful data, those that relate to the success of a particular brand. Such
research can be time consuming and expensive, but it is usually worth the cost.

Exercise 1 Discussion
1. What is the basis for marketing communication?
2. How does an advertising campaign begin?
3. What are the areas of market research?
4. How does situation analysis begin? How does it end?
5. How would you define marketing? What is the relationship
between advertising, merchandising, and marketing?

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6. Define research. What is the purpose of market research?

Exercise 2. Fill in the blanks with appropriate words from the text.

1. A ………………. may be a consumer good, an industrial

good, a service, or an idea.
2. To the average person, advertising is any kind of ………………………

3. In the vocabulary of marketing, advertising is paid

promotion in the four major ………………………………………………
4. ……………………………………. supplements advertising. It takes the
forms of sales promotion and promotion in minor media.
5. Marketing begins with a consumer ………………………………………
6. Marketing societies have produced a great abundance and
variety of consumer goods, by means of ………………………………..
7. The ……………………………….. is people who have money and are
ready to spend it.
8. Successful producers are guided by the marketing …………………….
………………………: response to consumers’ needs.
9. The purpose of market research is to solve a …………………………..
or exploit an opportunity.

Text 6 POLITICS AND PROTEST

Do you know these words?

a campaign an issue a party eligible to oppose

a candidate a majority a right qualified an election

Reading End elections

I suggest that there be no more congressional elections. Instead, members of Congress should be selected by lottery. The
current system doesn’t work because most voters are forced to choose between two candidates they don’t want. Also, 83
percent of congressional elections are won by the candidate who spends the most money during the campaign making
promises, visiting local fairs, expressing ideas in ads.

The majority of the members of Congress are rich white males. Half of them are lawyers and another third are
businessmen. Some may say that lawyers and businessmen are the most qualified people in our society to make laws, but I
disagree. It should be the role of lawyer to write laws, not make them. Likewise, successful businessmen may good at
making a profit in private life, but they have not stopped the country from going trillion dollars onto debt.

Some who oppose this suggestion may say that the average citizen doesn’t have the specialized knowledge needed to
make decisions about important issue. But not very many of our present members of Congress from either party are
qualified to handle these issues either.

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 In the new system I’m suggesting, people would be chosen to be a congressperson from a list of eligible voters. These
people would be required to pass a test on the Constitution. Those who did not would then receive six weeks of instruction
anyone who did not pass a second time would lose the right to be a member Congress.

I realize that there would be many problems during the change to a non elected Congress, but I believe that in time
such a system would succeed.

Exercise 1 Check (v)the statements with which you think the writer

1. The present system of electing people to Congress is not a good one…….

2. Americans have too many choices when they vote for a member of Congress…………
3. Mostly rich candidates become members of Congress…..
4. There are not enough women in today’s Congress……..

5. A person with a college education is more qualified to be member of Congress than a person without an
education. …………
6. Members of Congress do their job well…………

Exercise 2. Check (v) the statements which are true about politics in your country.
Discuss your answers with another student.
1. Candidates in the last election were from two parties …….
2. Most of the candidates in the last election were rich businessmen or lawyers……
3. The candidate who spent the most money during the campaign won the election…
4. An important issue in my country is equal rights for women ……..
5. Men and women over the age of 21 are eligible to vote in my country ……..
6. A majority of the people in my country oppose higher taxes. ……..
7. The election system in my country should be changed. …….

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