English for Business Studies 3rd Edition – [PDF Document]

Professional English

English

:”g

d’BusinessStudiesA course for Business Studiesand Economics
studentsThird Edition

G–w$ry

*E;

Student’s Book

lan MacKenzie

;n ft8,s. Wtflfl{tl x’1st

T; ;Ei$ ftu il t$ cM-

CAMBRIDGE UNIVERSITY PRESSCambridge, New york, Melbourne,
Madrid, Cape Town, Singapore,Sdo Paulo, Delhi, Dubai,
TokyoCambridge Universify pressThe Edinburgh Building, Cambridge
CB2 gRU, tIKwww.cambridge.oryInformation on this title:
www.cambridge. org / 97 g05217 [email protected] Cambridge University press
2010

This publication is in copyright. Subject to sratutory
exceptionand to the provisions of relevant coliective licensini
ugr”J_”*r,no reproduction of any partmay take place without tt.
*Att”rr,permission of Cambridge University press.

First published 1997Second Edition 2002Third Edition2010

Prinred in the United Kingdom at the Universify press,
CambridgeA catalogue recordfor this publication is availableJrom
the British LibraryISBN 978-0- S2I-7 4341-9 Srudenr,s BookISBN
978-0- 521-7 4342-6 Teacher,s BookISBN 978-0-521-74343_3 Audio CD
Set

Cambridge-university press has no responsibility for the
persistence oraccuracy of uRLs for external 0r thiri-party internet
websites referred to inthis publication, and does not gsarantee
that any content on such websites is,or will remain’ accvrate or
appropriate. Information regarding prices, traveltimetables and
other facttaTinformation given in this work is correct arthe time
of first printing but Cambridge liniversity pr”r, ao., ,roi-lu,urun
*the accuracy of such information theiafter.

Thanksq:rough only one name appears on the cover ofthis book, I
need to thank a greatr:ry people for their help and hard work,
beginning with Cambridge Universi ty Press: : rmissioning editor
Chris Capper.5r:chanie Ashford, Helen Bicknel l , Anna Gl inska,
Joy Godwin, Graham Jones and Dominiquet lu[ :cabies gave helpful
feedback on the previous edit ion. The out l ine of this edit ion
wasi, ,mn’: ‘ked out with Chris Capper, Wil l Capel and Chris Wil l
is.! ,$d Capel was the development editor, whi le Chris Wil l is
also made suggest ions for the f i rst’a

= of the book and loy Godwin for the second. Al ison Si lver
also provided ideas throughout,nr: expert ly and good-humouredly
prepared the manuscripts for product ion. Mart inl” :wdy’s expert
ise was tapped for the units on account ing and f inance. Al l of
the editors,nu’ find some of their ideas in the book – though I
probably scoffed at them at first before”r,=raging to convince
myself they’d been my ideas al l along!rilr Capel set up most of
the UK lnterviews, and Pete Kyle expertly recorded them, with
aner*: .aordinari ly large microphone on the end of a pole. One
other recording was producedn, .James Richardson. Pete Kyle also
produced and edited the CDs. My thanks go to al l then::rv iewees,
who graciously gave us their t ime and shared their expert ise with
us: Johne,r:onakis, Olga Babakina, Richard Barker, Mart in
Beniston, Charles Cotton, Carlo de Stefanis,ier is Frucot, Janine
George, Mel issa Glass, Alan Goodfel low, Anna-Kim Hyun-Seung,
Lakshmilm,a, Michael Ki tson, Teresa La Thangue, Al ison Mait land,
Tony Ramos, Chris Smart, Kr ishna5,r’ivasan, Saktiandi Supaat and
Rory Taylor. Thanks also go to the writers whose texts I havell.ed,
and the cartoonists whose work (mostly from The New Yorkerl
brightens up the pages.nr=nks are also due to Chris Doggett for
deal ing with permissions, Hi lary Luckcock for:r’:ing the
photographs, Linda Matthews at Cambridge University Press for
arranging thenr:duct ion schedule, Wild Apple Design who can and do
turn sows’ ears into si lk purses (asrl-e saying doesn’t go), and
Kevin Doherty for porof’raeding. Prospective thanks go out to
all”*n Cambridge Universi ty Press’s sales and marketrng people.’ ,
re dedicated previous books to my chi ldren, but this t ime I have
to revert to the equal lyitl=:itional apology-to-partner paragraph:
sorry, Kirsten, for the surliness that went with.mery months of wri
t ing a book whi le also working ful l – t ime and taking on too
many other,r ;rrmitments. (Oddly, she doesn’t bel ieve my
assurances that this wi l l never happen again!)

mr MacKenzie

Sertember 2009

Contents

Thankslntroduction to the learner.Map of the book

Management1 Management2 Work and motivation3 Company structure4
Managing across cultures5 Recruitment6 Women in business

Production7 The different sectors of the econorny8 Production9
Logistics

10 Qual i ty

Marketing11 Products12 Market ing13 Advertising

Finance14 Banking15 Venture capital16 Bonds17 Stocks and
shares18 Derivatives19 Accounting and financial statements2O Market
structure and competition21 Takeovers

367

Economics10 22 Government and taxation15 23 The business cycle21
24 Corparate social responsibility26 25 Efficiency and employment30
26 Exchange rates38 27 International trade

28 Economics and ecology

109I tz+

119124128132t50

142156181

185

194

42475156

Role cardsAudio scriptsAppendix 1: How to give a
goodpresentationAppendix 2: Writing emails, lettersand reports

60 Acknowledgements6469

737781869195

100

Contents 5

Introduction to the learner

English for Business Studies is a reading, listening, speaking
and writing course for learnerswith at least an upper- intermediate
level of Engl ish (Common European Framework forLanguages level 82)
who need to understand and express the key concepts of business
andeconomics. l t covers the most important areas of management,
product ion, market ing,f i nance and macroeconomics.This course
aims to:

‘ present you with the language and concepts of business and
economics found in books,journals, newspapers and magazines, and on
websites

. develop your comprehension of business and economics texts

. develop your l istening ski l ls in the f ie lds of business
and economics’ provide you with opportunit ies to express business
concepts both verbal ly and in wri t ing,

by reformulat ing them in your own words whi le summa r iz ing,
analysing, cr i t ic iz ing anddiscussing ideas.

Most of the units contain four components:1 An informative
reading text giv ing an overview of a part icular topic,
introducing

key concepts, and including a lot of relevant technical
vocabulary, plus a var iety ofcomprehension and vocabulary
exercises and discussion act iv i t ies. Some of the textscome from
newspapers and books about business or economics.

2 Listening act iv i t ies, most ly based on interviews with
business people, economists andother experts. The l istening mater
ial includes Bri t ish, American, Austral ian and SouthAfr ican
voices, but also speakers from several European and Asian countr
ies. Listening tonon-nat ive speakers of Engl ish is important as
much of the Engl ish you wi l l hear in yourprofessional l i fe wi
l l be spoken by people who don’t have Engl ish as their f i rst
language.

3 Speaking act iv i t ies including discussions, case studies,
role plays and presentat ions.4 Wri t ing act iv i t ies including
summaries, emai ls, memos and reports.l f you are using this book
in a class with a teacher, i t wi l l g ive you lots of opportunit
ies todiscuss ideas and issues with other learners ( in pairs or
smal l groups), and to develop anddefend your own point of view.l f
you are using this course on your own, you wi l l st i l l be able
to do the reading and l isteningexercises. You will find the
answers to the exercises in the English for Business
StudiesTeacher’s Book.

I hope you enjoy using this book.

Introduction to the learner

Map of the book

u*i , . , – : , – , : ; aee*irte ‘ l Writing1 Management What is
management?MBA students:

What makes a goodmanager?

Case study.Select ing a ChiefOperat ing Off icer

Sur i rmary;emai l

2 Work andmotivat ion

Theory X and TheoryY; ‘Sat isf iers ‘ and’motivators’

MBA students:Managers andmotivat ion

Case study: A carmanufacturer

Summary;emai l

i3i

CompanyStru ctu re

Wikinomics and thefuture of companies;Company structure

MBA students: Bigand smal l companies

Presentat ion:Present ing acompany

Notes for apresentat ion

4 Managingacross cul tures

Managing acrosscultu res

MBA students:Managers, authori ty,and cultural diversi ty

Role play:WelcomingAmericancol leagues

Autobiographicaltext

5 Recrui tment Fi l l ing a vacancy, Jobappl icat ions

John Antonakis(managementprofessor): Jobinterviews

Role play: A jobinterview

Curr iculum vi taeor resume

6 Women inbusiness

You’re f i red!( lne LrUArAlAn)

Al ison Mait land(wri ter andjournal ist) :Women inbusiness – a
strategictsSue

Role play: Do weneed more womenmanagers?

Memo or emai l

7 The di f ferentsectors of theeconomy

Another cup of tea(David Lodge:/VlceWork\ ‘ , Manufactur ingand
services

The business news(radio)

Discussion; Yourplace in theeconomy

Business newsitem

8 Product ion Capacity andinventory; ‘The Del lTheory of Conf l
ictPrevent ion’ (ThomasFriedman: The Worldls Flatl

Alan Goodfel low ( lTdirector) :Purchasingand low-costmanufactur
ing

Role play. Choosingsuppl iers

Emai l

9 Logist ics Pul l and pushstrategies; Supply-chaining
(ThomasFriedman: The Worldls FIat) ; Supply chainwork flow

Alan Goodfel low:Inventory, Kanbanand MRP; Leica’ssupply
chain

Case study: Riskanalysis

Summary; report

Map of the book 7

j- – –

l

10 Qual i ty TotalQual i tyManagement

Denis Frucot (hotelmanager): Customercare and qual i tY in
ahotel

Role play: A hotelchain in t rouble

Email

11 Products Products and brands Melissa Glass( juice bar
director):Smoothies and ajuice bar

Case study:Researching aproduct concePt

Report

12 Market ing The product l i fecycle; Market ing
iseverything(Regis McKenna:Harvard BusinessReview)

Mel issa Glass:Promoting a juice bar

Case studY:Promoting a newproduct

Descript ion ofdistr ibut ioncnannels

13 Advert is ing Advert is ing and viralmarket ing

Radio commercials Script ing a radiocommercial

Summaries; radiocommercialMinutes of ameeting14 Banking

Banks and f inancialinst i tut ions; Thesubprime cr is is andthe
credit crunch

Tony Ramos (HSBC):Commercial banking;Anna-Kim Hyun-Seung (exPert
onbusiness ethics):Microf nance

Role play:Microf inance

15 Venture caPital A business plan Chris Smart (venturecapital
ist) : Invest ingin start-ups

Role play: Invest ingin start-uPs

SummarY

16 Bonds Bonds; Howto Prof i tfrom bonds (fheGuardian
andThelndependent)

Teresa La Thangue(Financial ServicesAuthori tY): Bondsand subpr
imemortgages

Case study:Invest ing in funds

Report

17 Stocks andSnares

Stocks and shares;Hedge funds (GeraintAnderson. CitYboY)

A f nancial newsreport (radio)

Role play: Invest inga cl ient ‘s moneY

18 Derivatives Spread-betiing (flmesOnline)

Teresa La Thangue:Hedge funds andstructured Products

Role play: Financialinstruments

Training memo

19 Account ingand f inancialstatements

Google Inc. ‘s f nancialstatements

Richard Barker(senior lecturer inaccount ing): Valuingassets

Role play:Present ing acompany’s results

Map of the book

Utit lneaAmg ristq$r-e *r f t ing; ‘ : ‘ ,20 Market

structure andcompeti t ion

Market structure Charles Cotton(lT consultant) :Companies andcl
usters

Case study:Encouragingcl usters

Brief ingdocument

21 Takeovers Takeovers, mergersand buyouts

Rory Taylor(Competi t ionCommission): Marketinvest igat ions

Role play: ls thiscompany restr ict ingrnmnet i t ionT

Summary

22 Governmentand taxat ion

The role ofgovernment (Mi l tonand Rose Friedrhan:Free to
Choose)

Michael Ki tson(senior lecturerin internat
ionalmacroeconomics):Governmentintervent ion

Presentat ion:Taxat ion andgovernmentspending

Presentat ion orreport

23 The businesscycre

What causes thehrrc inacc e vr ‘ lo7’

Keynesianism andmonetar ism

Michael Ki tson:Consumption andthe business
cycle;Keynesianism

Discussion:Governmentintervent ion

24 Corporate socialresponsibi l i ty

Profts and socialresponsibi l i ty

Anna-Kim Hyun-Seung:Social lyresponsibleinvestment;Stakeholder
groups

Role play: Problemsat a clothesmanufacturer

Report

25 Eff ic iency andemployment

Reorganizing thepostal service

Anna-Kim Hyun-Seung: Eff ic iency,the number ofemployees,
trainingand product iv i ty

Role play:Reorganizing thepostal service

Report

26 Exchange rates Exchange rates Michael Ki tson:Currency f
lowsand the Tobin Tax;Developing Afr ica

Case study:A currencytransact ion tax

Summary

27 Internat iona Itrao e

Educat ion andprotect ion (HaJoonChang, economist)

Michael Ki tson: Freetrade and except ions

Presentat ion. Forand against f reetrade

Presentat ion orreport

28 Economics andecology

The economicsof cl imate change(Christ ian Gol l
ier,economist)

Mart in Beniston(professor of c l imatecr ionro\ ‘Cl
imzfaJvrvIvvr.

pol icy

Role play:Recommending anenergy pol icy

Summary

Role cardsAudio scr iptsAppendix 1: How to give a good presentat
ionAppendix 2: Wri t ing emai ls, let ters and reports

142156181185

Map of the book 9

IManagement

Q Consider what the functions of management areQ Discuss what
makes a good manager

Iead-in. To what extent is effective management something you
areborn with, as opposed to a set oist

ln 1998, Meg Whitman joined a start-up company cal led eBay inSi
l icon Val ley as President and CEO. She resigned ten years
later,when i t was a hugely successful business, planning to run
forGovernor of Cal i fornia.

Carlos Ghosn, born in Brazi l , but a Frenchand Lebanese ci t
izen, became the CEO ofthe Nissan car company in2001. In 2005,
healso became CEO of Renault . At Nissan, heconverted huge debts
into huge prof i ts.

Managglqegt_

Carlo de Stefanis{from ltaly}

Olga Babakina{from Russia}

Listening: What makes a good manager? ffiffiListen to two MBA
{Master of Business Administration} students at the JudgeBusiness
School at Cambridge Universi ty talk ing about management.Who says
the things about managers in the table below – Carlo (the
firstspeaker) or Olga (the second)?

A good manager should:r iolLow the company;i gouts2 help
subordinates to accomplish their own goals and

345678

objectlvest.;1ov;,;s;”11.ig;; ‘6;*;1;pknow how to lead
peopleknow how to motlvate peoplemake a maximum proft for the
owners (the shareholders)meet the targets they have been
setsuccessful ly execute plans and strategies

Discussion: What makes a good manager?What do you think are the
three most important characteristics of a goodmanager? Are there
any qualities or characteristics you would add to the onesmentioned
by the MBA students?

Managemeni Unit I 11

Reading: What is management?Read the text summarizing the di f
ferent funct ions of management.Which of the qual i t ies mentioned
in the Listening exercise do youthink are part icular ly necessary
for the f ive tasks described byPeter Drucker?

: , : ‘ :

; r !

i : i

WritingWrite a brief summary of each of the five tasks listed by
Drucker.

n-IZ

Managemg*l__.

Vocabulary1 Match up the following words and definitions’

1 cor isul tant A a plan for achieving success2 crisis B a new
idea or method3 innovat ion C a person with a less important posi t
ion in an organizat ion4 object ive (noun) D a person who provides
expert advice to a company5 oromotion E a si tuat ion of danger or
di f f cul ty6 publ ic sector F something you plan to do or
achieve7 strategy G the section of the economy under government
controlg subordinate H when someone is raised to a higher or more
important posi t ion

2 Thetext contains a number of common verb-noun combinations.
Use the wordcombinations in the box to complete the sentences
below

allocate resources deal with crisesmeasureperformance
setobjectives

1 After an organization has , it has to make

sure that i t achieves them.

2 Managers have to f ind the best way to –

al l the human,physical and capital avai lable to them.

3 Some people better on their own whi le

others work better in teams.

4 Managers the work of their –

and try to

develop their abi l i t ies.

5 Managers the –

of their staff to see whether

they are reaching their targets.

6 Top managers have to be prepared to –

i f they occur and then have to quick – .

Case study: Selecting a Chief Operating OfficerThree companies
are looking for a senior manager – a Chief Operating Officer
whowill be responsible for managing the company’s day-to-day
operations, and making surethat all operations are efficient and
effective.

ComPanYAis acigarettemanufacturer that has to

modernize its Productionsystems in order tobecome Profitable,
inan industry that hasan increasinglY bad

Company B is asoftware developerthat employs a Iotof young,
creative,talented and ratherundiscipl ined people.

CompanYCisaPnivatetelevision channelwhose obiective is
tobnoadcast Programmesthat get as big anaudience as Possible,in
onden to maximizeadvertising nevenue.

l”{anagement Unit I 13

Which of the following candidates might be the most suitable for
the positionson page 13? Here are some extracts from their
letters.

Candidate I MJ skills involve helping businesses achieve their
objectives.Throughout my career I have ensured that my
suboJdinatessuccessfully executed the strategies developed by
seniormanagement, delivered results and maximized revenue.

Candidate2

I see my main skills as being abie to communicate with
andmotrvate people, to help them develop and accomplish
theirobjectives, while also working effectively in teams.

Candidate 3At this stage in my career, I see myserf in a
challenging new positionthat involves setting objectives and
deciding how the organization canachieve them. I would then
concentrate on measuring the per-formanceof the staff.

Candidate 4 My career demonstrates an abi l i ty to
analyseproblems, f ind solut ions and implement them.f a lso have
strong communicat ion ski11s andexper ience in explaining di f f
icul t decis ionsto employees, investors, journal ists, and so
on.

Writinglmagine you work for a recruitment agency or a
headhunting firm. write anemail of 50-100 words to your boss
recommending your choice of candidatesfor the positions above and
outlining the reasons.

14 Unit I Management

Work and motivation

r gFE- f f iIf O Discuss the importance of motivationI Q Compare
and then summarize various theodes of motivationI O Consider the
best way to molivate people in specific situations

–

IlIlIlIIIIII

Lead-inOne of the most rmportant responsibi l i t ies of a
manager is to motivate thepeople who report to him/her. But how?
what kind of things motivate you?Which of these motivators would be
important for you in your choice of a job?Classi fy them in order
of importance.

good remunerat ion (salary, commission, bonuses, perks)good
working relat ions with your l inemanager and col leaguesgood
working condit ions (a large, l ight, quietoffi ce; effi cient
secretaries)job securi iythe possibi l i ty of Promotiona chal
lenging jobresponsibi l i iycontact with PeoPlea bel ief in what
the organizat ion doesa job in which you can make a di f
ferenceopportunit ies to travel (business class!)long hol
idays/vacat ions

What other important motivators would you add to this l ist?

Discussion: Attitudes to workWhich of the following statements
do you agree with?1 People disl ike work and avoid i t i f they
can.2 Work is necessary to people’s psychological wel l -being.3
People avoid responsibi l i ty and would rather be told what to
do’4 People are motivated mainly by money.5 Most people are far
more creat ive than their employers real ize’6 People are motivated
by fear of losing their job.7 Peoole want to be interested in their
work and, given the r ight

condtt ions, theY wi l l enjoY i t .8 Under the r ight condit
ions, most people wi l l accept responsibi l i ty

and will want to realize their own potential.

“We don’t ofer bonuses, but tbe size afyaurdesk will be adjusted
guarterly.”

@ The New Yorker

Work and motivation Unit 2 15

Reading: Theory X and Theory YThe statements on the previous
page can be separated into two groups reflecting two very
differentways in which employers can treat their employees. Douglas
McGregor, an American expert on thepsychology of work, summarized
these two approaches and named them Theory X and Theory Y.Read the
text below and classify the statements according to which theory
they support.

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l”ltii.ll::-;.;ii?:: i:r-r:.i;*:i-ii’ ifii-ii ut:ii:ii’::r !:
r:ji:jr j. $-: :itj. i: i.::iri;. :,.tiit iJ l i:,;i,l, i i r tr *;
:: i+l iii,:ti- ij;-:;;::11u it::’.”: i:rii:: il i i l
i…:t::iitii j IijF tijLr.:-:-i:ii i i:*!ij.:’t;lii:”:
;.:=:’r:r:,:-++::,j.+i:: .j.i ‘:g;:t|;, i’j::tr’:l,: ‘r-;iji
f;l’,:=E=1″1;l ri 1;:”: i;;.., i.::,.t ri,: : i j l ii.; r t: i i.
r: ;: ; :,:: 1 i i;: :C,’,;t’ ;’ :.: :i::* ii::i:ij l i i i i:,,’
:ij:::..j lt;:iittc11,’ ::r;;+- ;:ti:1r;i:ji;r-::: ::11t1::i*i
i*+l-r=:l:*r: Jii :-:riri:i.i-:ri:-;::;;;:.:l; l;,:. l;r,; 1.. if
l:::li–.i:i:iti::-::ii i{-::.:i;r:::ii, ‘ l:i::;;i.i.ii i j:
i1:,;l ‘.1;-rt-i.li::–il,lLla:i’ ?i:r.,.-,i-ir I’i :”*:ii.:ti: i:
‘.r; i:,:,; ;i, :: ;; r.;;’ ‘ ! ‘ j I i; i,: 1, J.

ComprehensionRead the text again and answer these quest ions.1
According to Theory X, why do employees have to be closely control
led?2 According to Theory Y why should employers give their workers
responsibi l i t ies?3 Why did Maslow cr i t ic ize Theory Y?

16 Unit 2 r,”rcrt :,ltai ilt,.tLtr,iit]illt

: l,/ Self- \

,/.o*.u””rlot\/ needs \

Personal lowth

and fulflIment

/ Esteemneeds/ Acfrievement, staLus,

reconition, reputation, etc.

tove and belonging needsFamily, friendships, relationships,

work groups, etc.

Safety needsSecurity, plotection, stability, etc.

Physiologiaal neeil.sAir, food, drink, ciothing, shelter, sleep,
warmth, etc. \

WritingNow write a summary of Theories X and I using no more
than 50 words for each.

Discussion. tn your working experience, even if it is only
weekend or temporary summer holiday jobs, have

your supervisors seemed to believe in Theory X or Theory Y?.
What would you do to try to motivate subordinates who did not want
to take responsibilities at

work, and who had uninteresting, repetitive jobs?

Reading:’Satisfiers’ and’motivators’Another well-known theorist
of the psychology of work, Frederick Herzberg, has argued that
goodworking conditions are not sufficient to motivate people. Read
the text and find out why.

it i* l*gi*al 1o ,cuppcs# th*.t tnings iike g*+cil*h*ur
r*ialicns. g**s

‘*r*rkieg c*nditi*ns. .i*i:rs*f;urity, g**d wag*s, and ben**ts
such as sickpay. paiitr hcliCays **ei a p*nsi*i! are
in**nttvesfi-ral siotiv*t* wcrkers. Fat ln The !fiativ*tiant* Wotk,
Fre*eri*k H*rzherg arga:ed thai $uchciln*ition$ * o: ‘hygien*
faetcrs’ – do n*t in f*ciltiltivet*’uvork*rs” Th*y ar*
rn*r*iy’saikfier*’ **r. ffi*r* irruF*riantly, ‘tiisxalisfiers”
=r,rrh*re they eio:’r.i:t *;*isi. tli*ric*rs rrrho iiave tileni
take ih*m f*rg:’ariter:. As Herxherg put !t, A rerryard *nce
givenrsccmes a rigl:t.’ ‘Mclil’atcrs’, on th* csntrary,i:mlu.el*
rhings sucir as hav*ig a chali*nging andinl*r*sting jo?:,
r***gniti** a::d r*sp**si*iiity,*r*n:*ti*n, and ** tn. lJnles*
pe*pl* ar*r.l{:tivat*d, and {.+”#Jll tc e3* a g**d jcb, ti:*y
16′;1i**t p*r{*rm w*11.

Fl*.*;*ver, there ase and alu*,*_1rs wili ** piet:i-V

Managemeq!_

*an ffian*g*rs mctirre.te p**pie 1n silch jr:i-.r? *n*sr:hiii**
is ft giv* th*m s*cn* r****n*ihliili*s, nrias iniividuals but fis
p*rl ri =r. i*eftr. F*r exampie,*i*:ne silF*rrnarkcl* r:*;rihi::e
*ffi*e *taff, th*p*i:pla wh* fiil ih* *helv*+, end the peopie
,..vh’=-“vfirk on ih* ch*eks'”it tills int* :i team a::ii lei{3rsm
d*cid* rrrhat prcdu.cl lini:* i* slerk. hc.n’r* rfispiay them, and
ss *r:. tJih*rempi*yer:eilcorl;e.g* j*3: r*tafi*n, as iioing fcur
iifferentrep*titv* j*hs a dall is l:ette: thar: daing ontryr:rie.
Many pr*pie naw taik ah*ui ihe lmp*rla::e**f a c*r::pan{* sh*r*il
values *F f;*rpilrai*cul{ure,’wiih lviri*h ail rhe staff can
id*ntifg: ftrexarpl* bsi ,1c{ thg hesi hulel chain, or
har*:urgerrestaurent ch*i::, *r airiine, *r makinq the hest,r*fest,
n:c*t u-!r*i’-fri**diy, masl *ccl*gicai orInJJT itlrabl i,r0riucts
t: a parl’ icuiar fielOi r . r . – , , , .

– . ‘ ih+ r^. .1r)c. i – inn lnrnlngig5 i11l r iJ i l i i I l .
; l ! (1t t ; ;J. , l ; . ‘ t ( :LL ( i t ! l , r . t t ,ELir :V L,
’11:Lu

+i i:oring. reFetitlve a::d :ne*hanica! j+b*, and lois an
indusiry caat s*ricusl-v clai::: tfi fle ffie h*$i.*f i”lnskillstl
work*rs ‘whr: h*ve t* d* ih*rn. H*rtt

ComprehensionAre these sentences true or false?1 Herzberg argued
that ‘hygiene factors’ motivate workers.2 Chal lenging jobs and
responsibi l i ty are hygiene factors.3 Some unski l led jobs wi l
l a lways be boring and repet i t ive.4 Workers might be motivated
by having responsibi l i t ies as part of a team.5 Job rotat ion
can make a day’s work more interest ing.6 You can always motivate
workers by tel l ing them that they work for the best company in
the f ie ld.

Work and motlation Unit 2 17

Krishna Srinivasan(from Malaysia)

Carlo de Stefanis{from ltalyf

Saktiandi Supaat{from Singapore)

VocabularyFind the words in the text that mean the following.1
interactions between employers and employees, or managers and
worKers2 knowing that there is l i t t le r isk of losing one,s
employment3 money paid (per hour or day or week) to manuat workers4
advantages that come with a job, apart from pay5 things that
encourage people to do something6 to be raised to a higher rank or
better job7 without any part icular abi l i t ies acquired by
training8 regularly switching between different tasks9 a company’s
shared att i tudes, bel iefs, pract ices and work relat
ionships

Discussion’ How convinced are you by Herzberg’s theory of
satisfiers and motivators?

Listening l: Managers and motivation ruListen to three MBA
students at the Judge Business school talking aboutmotivation, and
answer these questions.1 According to Krishna, what is the
disadvantage of working in audit ing compared to

banking?2 How did Krishna’s company retain its staff?3 According
to car lo, what is the main reason why people leave their jobs?4
According to Carlo, does a company need a set of motivat ional
incent ives?5 What does Carlo say a manager needs to do to engage
his/her team?6 According to Saktiandi, do the staff have to do what
the organization wanrc, or vtce

versa?7 What does Sakt iandi say about the importance of inf
luencing and convincing people?

Discussion. Would you stay in a job for the reason Krishna
suggests?’ would you leave (or have you left) a company for the
reason that carlo says is

the most common?’ would working for a manager who has influence
within the organization

motivate you?

18 Unit 2 Work and rnouvauon

Managerne4!_

listening 2: Out-of-work activities ffiListen to Janine George,
another MBA student at cambridge, talk ingabout motivat ion, and
answer these quest ions.

1 How long had some of Janine’s operat ionalteam been working in
their jobs?2 What kind of company is Janine talk ing about?3 How
long are the working days?4 How did she f ind the workers when she
arr ived at the company?5 What did she do to rect i fy the si tuat
ion?6 What did she f ind out at the meetings?7 what examples does
she give of out-of-work act iv i t ies that the companv was

able to draw on to motivate staff?8 What was the lesson of this
experience for Janine?9 Janine talks about act iv i t ies that are
not ‘ related to the bottom l ine,. what does

this mean?10 Janine says managers should ‘ think outside of the
box,. What does she mean by

this and why do you think she apologizes for using this
expression?

Me,N)6?l

“I’ll start thin6ing outside the box vthen tbe box is
emptJr.’,

@ The New YorkerCase study: A car manufacturerThe senior
managers of a car manufacturer sense an increasing level
ofdissatisfaction among most of the different categories of staff.
The company hasthe following groups of employees, with different
benefits:’ senior management (high salar ies, f ree company cars,
company restaurant, 25 davs

annual hol iday)’ designers (high salar ies, f ree company cars,
company canteen, 20 days hol iday)’ product ion- l ine workers ( f
ixed salary, company canteen, 20 days hol iday)’ secretar ial and
administrat ive staff (salary according to experience, company
canteen,

20 days holiday)’ sales representat ives ( low f ixed salary
plus commission on sales, 20 days hol iday)’ canteen and restaurant
staff (20 days holiday, free meals in canteen)’ cleaners (hourly
wages, plus 8.33% extra as holiday pay, no other benefits)

l :1;1 ‘ l l l\ ‘ l : l : r r I ‘ l

‘ ‘ i l=r ‘ l

Janine Georgelfrom South Africa|

Work and mottvation Unit 2 19

The managers meet to consider ways of increasing staff
motivation. They haveto decide whether any of the following
suggestions would be appropriate fordifferent groups of employees:.
bui lding sports faci l i t ies (e.g. a gymnasium, tennis courts).
esiabl ishing a prof, t -sharing programme. giving longer paid
holidays (such as an extra day for every year worked over ten
years). offering cars at discount prices. offering career training.
offering early retirement. paying a higher salary. paying
productivity bonuses. reducing the working week (e.9. to 35 hours).
setting up a crdche for employees’ pre-school-age children.
spending some money on decorat ing the organizat ion’s premises
(e.g. with plants,

pictures). subsidizing the staff canteenIn small groups, decide
whether to implement any of these suggestions.

WritingWrite an email of no more than 100 words to the CEO,
outlining and justifyingyour choice of improved benefits.

20 Unit 2 Work and motivation

Company structure

Q Consider the different ways of organizing workQ Discuss
potential conflicts between different departments in a companyO
Compare the differences between large and small companies

Lead-in. Which department- product ion, f inance, account ing,
market ing, sales, human

resources, etc. – of an organizat ion do you think is the most
interest ing to work in?. What reasons can you think of for why
departments get into conf l ict with each other?. ls i t better to
have one immediate boss or to work for more than one manager?. Do
vou orefer to work alone or in a team?. ls i t more motivat ing to
be responsible to someone for your work, or responsible for

people who report to you?

Reading: Wikinomics and the future of companies .,,

Read the text below and answer this quest ion’ ,”. How is the
world of organized work changing?

il::psv1s *re firr**ast*:g ih*1 i:1 i::* futu}* *i,-m3:”ti-li*s
‘”viil u** iheini*{nsi a::ci 131* ‘t*riki**.tltii:*’ pri;:*ipl*
{fu*rc wiki, the Hai*;aiian r’,,*{lrdl*r ‘q*ick”” ar:d
***::**ticsi” This m&rr* **.li***raiing

“‘,’:th p**pie

**isid* :l:i: iv**iii**ai r:*rpcrate* siruslilr*. tr*tx*:E
p**ple es*rin*t3:* rirr*ri*i i:s*;$*rel* 1* impr*r”* a:t *pcra-li*n
*r **ive * prehi*m,;::t$ peyir:g lh*rt :*r i!:eir iriera*. Tl:i* i*
exl *xi*R”q!il* *f the tren”i *f*i:.ts*;.rrefulg: ira*sf*rling
,**:n* ,:f lit* i*::rpan’v”s jnierrral iLi:tcilcns
i:rr-:peraiir:n* r:r j*hs l* aiiiiiiig* sr:ppli*rs, r*iir*r 1n**
p*f*r:::i:tg {1″:*m’in*3:*r-is*’. fil [ith’*r v.,r::dr+”
**::.Lpa:ri** r+,i11 ::fi l*i:ger ::**d ic **t eilil::::r
kn*r-‘riedE* fr*::l th*ir *rqrn fl.:11-tii::* *:::p1-*y**s.

Fiq:re *r* iil-‘* esaa:Fie*t frc:* i)+ir lkpse*li anri
A::lht:-]ir l]. W:ili*sl:*’i:**x tr&5Jc#t;:-inics;.#+r*;
&f*s-c #*fisil*.r*rf*:: th*ag*s E;’sryri;ing;

Thc nmixr ono dN dd oi iui. .

ft*i d br-idrakira dde olNo* ?:_

ld P.kh. rdbr d tr .knt .y’arr.,&

+.,;

ffik”fte”pE*#s’lhe htemxtional Beslseller

Red Lak*. a ila;:*di*.:i g*irI ::iiil*” lv*sl:’t
fi::tli*g*n**gi: ;+1* **.r5 r’t’a* j:i d*ng*r *f *lt**:g
d*lq’-::.’fi:*:: i:*t c!:i*i ex**r-:tiv* ;r**lei a tiliir eh**”t
i’int.1sT*rv*iris. lile i::venl*; *i i,inus, ilr*
*p*::*,:*ur**c+i:xtr]ut*: *g:*r*?itgJ sy*s”isln. l{* decider.l l*
;:lit;1’l* **aip*ny’s s*il{fif pe*i*gi*ai dati:” *tt qh*

l : : ls tnel . ; .n^ , ; f { r .y: ‘ l -nr , fe f : tnr r I ;J
F f , i ) : : r } ‘

oiii:ir.Lte tire cc:rpe ni’ w3:* **tild sugS*Fl-
1.4Ji:*F*”*n#-i,r**r:*reii gr:id” nright 1i*. ile*;:l* ar*lind.
th*'”‘.i*rid v***:n**::rteei iL* targets, etil i.i*Oil. r’ri1.1:**:
{urn*d ilL1t {* fi*rit*.iIl g*iet. ‘Ih* c|::npan5″*tv*1ue has:l*e*
fr*r* $l** m ir: $3 5r,.

If ilruet*r & *ag*b1* i* i’:i:ki::g f*r ii ::*-,,’!’
::lL*tr*cul*t* ci**rr re*”‘*vi::* *ff a si:iri. ii esn-**t# i{s
c’*’i1sci*;riis**” fifi{ th*re *-r* 1.$ r*ilEc:: i:th*r

sci+ntlni: *.r*ilnei the lv*rld” ‘i’h* ***lp**y *aa*{f*r a
pe}l:neit’. f*r a ssc**sslutr si:itiii*n, anci *e*r:f * sci*ntist
s+mewh*r* *iliil** up l,1,’itii ***”

In what ways could your organizat ion, company or business
school use the wikinomics pr inciple?What do you think are the
disadvantages of the wikinomics pr inciple?

Company structure Unit 3 21

VocabularyBefore reading about traditional company organization,
check your understanding of some basicterms by matching up the
following words and definitions.

autonomous to deleg?te, ,line authority to repofi to

a system of authority with different levels, one above the
other, e.g. a series ofmanagement posit ions, whose holders can
make decisions, or give orders andinstruct ionsa specif ic act iv i
ty in a company, e.g. product ion, market ing, f inanceindependent,
able to take decisions without consult ing someone at the same
tevet orhigher in the chain of commandthe power to give instruct
ions to people at the level below in the chain of commandto be
responsible to someone and to take instruct ions from themto give
someone else responsibi l i ty for doing something instead of
you

Reading: Company structureRead the text below.

?3rc elaain rf senrcmandTraditianaliy, organiratians have had a
hierarchical orpyramidai structur*, with one -i)*rson or a grsup cf
per:pl*at the tap, and an increaqing :rumber af p*cpte b*tr*iruthem
al each *uccessive level Thrs is scmetlmes called iine$trilciure.
Th*r* is a ciear ci:ain cf c*rnmanrl running d*vvnthe pyramid. Atl
the pecpie in th* arganj?alian Kn*:s/ T,vil*tctecisians they are
able to mak*, *v*l]fi tileir iine manager{ar bcss} is {tc wh*m they
repcrt;, and wha thek immediate*ubarclinates are {cver whoin
they:rarre iine authcrity, andcan give instructions tol.

ff aaerctEoffi *E EtsrearreYet the aciiviti*$ cf m*st
*rganizati*ns are too c*mpiicated l*he *rEanized i:: a si*gle
trierarchy. I,,fcst large manufa#uringcoffiBanies” far exampie,
have a funcltionai stzufliure,including. among atl:er*,
specializeci praciu*ticn, flnance”marketing. sales. and human
r*sfiur*ec d*partm*nts. Thismeans, f*r ii:sianc*, ihat th*
pr*dueti*tr and r,:arketingde*artments flant:*t iake financial
decisiilns’fffihoul*onsr:iting the finance department” f,arg*
crganizailo$srn*king a range cf products are ofle* furiher ciivided
ir:toseparate operatir:o drvistons.

A disadvantage of fur:*ticnal arganization is thai peopleare
cften tnor* icneerned rsrilh tlie suecess of their *wndeBartmefii
than thal of the ccrnparlSr ss a w”hole, s* thereare perma$*nt
c*nfii*ts hetv”‘*en, say, fi:rance and ffierktlns*r mark*ling and
productlen cver urhat th* a}:jectiv*s are.

Unit 3 Company structure22

Flattening hierarEhie* and d*l*g*tingresprnsibilityA problem
with very hierarehicai *rganizationsis that peaple at inwer levetrs
can’t takeirnportant decisi*ns, but have to pass cnr*sponsibility
to their bcss. However, thernodern iendency is to reduce the cirain
cfcomrnand, take out tra.rrers cf managemenl”and mak* the
organiration much flatter.Advanced IT sy*terns have r*duced ths
needfor adn:inisirative staff an* enabled companiests rernoire
lay*rs of workers lrom the struenrre.l!{any compani+s heve alsc
be*vr fcrced l* rr-itback and elirninate jcbs ir,
recessions.ftrpicaily, ti:* o”vuners of smali firm$ wanl tokeep as
much cnntrcl cver tireir business aspo*sible. whereas mafiasers i::
iarger businessesw-hs want to motivate theb staff often
delegaiede*isian rnaking and resp*nsihilities to iltherp*ople.

Hffatr!:r *ran*g*rxentAnaiher way to g*t round hierarchies is to
usematrlx man&gement, in rryhieh peopie report tornor* than one
superior. For example, a productmanager lviih an i.riea ceuld deal
directly withlhe manaEsrs r*spansible far a certain market

Comprehension1 What is the main advantage of a chain of
command?2 Why is i t not usual ly possible to organize a large
organizat ion in a single hierarchy?3 In what ways can dividing a
business funct ional ly cause problems?4 What factors might lead
companies to f lat ten their hierarchies?5 According to the text,
what kind of managers might not want to delegate decision making?6
What is the potent ial disadvantage of matr ix management systems?7
tJnder what circumstances might teams not be effective?

VocabularyMatch up the verbs and nouns below to make common word
combinations.

decision makingdecisionsinstructionspriorityresponsibi l i t
iesstaff

Manaqement

segment and fcr a geographical regicn” as’ruellas managers in
the finance, saies and produ*trondepartments. Matriees invalving
severaldepartments can beeome quite complex” so itis sametimes
necessary to give cne departn:.entpri*rity in ci*clsion making.

Seane*A further possii:ilit_rr is t* have :virrlly
auiotl*meus.temporary groups or teams that are responsihi* f*ran
enlire project, afld ar* split up as sosn as it issuccessfully
csmpleted” Fut ieams are not alwaysvery goad at decision making,
and usualiy reqairea strong leader.

Companv structure Unit 3 23

Discussion: Incompatible goalsThe text mentions the often
incompatible goals of the finance, marketingand production (or
operations) departments. Classify the following strategiesaccording
to which department would probably favour them.

1 a factory working at full capacity2 alarge advertising budget3
a large sales force earning high commission4 a standard product
without optional features5 a strong cash balance6 a strong market
share for new products7 generous credit facilities for customers8
high profit margins9 large inventories to make sure that products
are available

10 low research and development spending11 machines that give
the possibi l i ty of making var ious di f ferent products12 self-
f inancing (using retained earnings rather than borrowing)

listening: Big and small companies flCListen to three MBA
students at the Judge Business school talking aboutdifferent-sized
companies, and answer the questions.

Krishna Srinivasan(from Malaysia)

Carlo de Stefanis(from ltaly|

Olga Babakina{from Russiaf

1 why does Krishna say that company size isn’ t important? what
does he say isimoortant?

2 why does carlo recommend university graduates to start in big
companies?3 what does car lo say are the di f ferences between big
and smal l companies?4 What does Olga say is more important than
company size?5 What does Olga say about big companies?

Discussion: Big and small companies’ How far do you share
Krishna and Olga’s points of view, and agree with Carlo’s

advice?’ what other benefits of working in a large company can
you think of?’ what other reasons might make someone prefer to work
in a small company?

24 Unit 3 Companv structule

Managenqgn!-

. Do the following statements refer to the advantages of working
in a big or asmal lcompany?

I you are less likely to be affected by a big reorganization or
downsizing or merger ortaKeover.

2 You are often responsible for a variety of different tasks.3
You can actually see the resuli of your contribution to the firm.4
you can be proud of working for a company with a nat ional or
internat ional

reoutat ion.5 You can become more special ized in your work.6
you can probably change departments i f you have problems with your
col leagues.7 You have more independence, and you don’t always have
to wait for permission

from a superior.8 You know everyone in the company and the
atmosphere is fr iendl ier.9 You may be able to go and work in a
foreign subsidiary ‘

10 your company wi l l probably be in a better posi t ion in an
economic downturn orrecession.

PresentationWrite notes for a short presentation on your company
or a company you woltldlike to work for. You should mention:. what
i t does:

tt designs / makes / provides / distributes / sells / offers /
organizes / invests in, etc.. where it is located:

It has offices / branches / subsidiaries / factories / stores,
etc. in …. how it is structured and whether this a reason for its
success:

It consists of / includes / is divided into / is organized in,
elc-. why you want to work for this company.

Then give a short presentation to the class.

@ The New Yorker

Company structure Unit 3

“I do ny part.”

25

Managing across cultures

Q Consider the importance of cultural differences for people
workingacross cultures

Q Discuss the conflict between globalization and
localization

Lead-in. What are the advantages and disadvantages of a mult
inat ional

company adapt ing i ts management methods to the local cul ture
ineach country in which i t operates?

. To what extent is the cul ture of your country simi lar enough
to thoseof neighbouring countr ies to have the same management
techniques?Or do they have very different attitudes to work,
hierarchy,^-^-^i–+i^^

-^. ‘ r -^ on7 l f so what are rhese di f ferences?ui Sot i
l40Ltwt I , qt tu )u

listening 1: Managers and authority tffiListen to two MBA
students at the Judge Business Schooltalk ing about cul tural di f
ferences, and answer the quest ions.1 What concepts does Krishna
say are important in management

in Singapore?2 How does this di f fer f rom the European countr
ies Krishna

mentions?3 From what Carlo says, how simi lar is l ta ly to
Switzer land and

Bri tain?. In your country, what’gains respect within an
organization,

service or achievernent?. Can a young, dynamic, aggressive
manager with an MBA r ise quickly

in the hierarchy?

Reading: Managing across culturesRichard Lewis is wel l known in
the f ie ld of cross-cultural communicat ionand the author ol When
Cultures Collide: Monoging Successfully AcrossCultures and The
Culturol lmperotive: Globol Trends in the 21st Century.Read about
his model of three types of cul tures, and answer thequest
ions.

l*{anag:i,r:g a gi*}:;:i *a;-t}ftrraiicnar ramBany'”rrr:e,ld
*hvirt-:”*l-v i-:* *rti*ir**npl*r if il r*qmirei *nl_v cr:e sr.:l
of corp*ral* *:]j*cr,iv*s” E**Xs” p*H*i*s,prai:i1**s. pri:***ts
i:r:ii =*r’uie*s” Eut lcca.l differ*::c*s * :Lilti:;’ai
h.:lhit*.:ir.rij*l$ ai:* printip:s sp-:633fl; to e e cti ccunirl.
*r :::*rket * til”‘lr: *:ak=ih:* imp*ssibli:. ?h* *i:nfli.;t
h*ir+:**:-i gl**aiixati*r: and i*t+!ix*E,:- ira=l*d tr ih*
il:!.**:rli{lti *f t?:*’+’rarrl gl**aliz*ti*n’. fi*mp*.:ri*s ll’al
ti”-at’l l*i:e *r:*r:es*fiii kt i*r*igil mai]!*ts i141.* lc tl*
&vi’aie cf t?:e ]r:rai rlr:i.rai*h*rart*:risiir:* ii::it affect
{i;s “rro’ag b*sin*s* is rl*n*.

l–li*har’l Ler”;ir h** *la*sifL*er diff*r*r;t ri:liur*s
ai:*r:rd.i** iC i:-.:=26 Unit 4 Manaqinq across culiures

long Carlo de Stefanis{from Italyl

Krishna Srinivasanlfrom Malaysiaf

Richard tewis

‘poies’ represenling rlifferent iypes of
bchaviour’Srisinessperple in’lin*ar-active’ cuitures suchas
Britain, the USA and fiermany are generally*rganized and rationai,
try to act logicailyrather than emotionally, plan in advance.
andlike ta da r:ns thing at a tirne. They helieve in

Cultural Types: .The Lewis Model

Italy, Portugal,Spain, Greece

Russia, Slovakia

France, Poland,Hungary

respecting ruies, reg*lations and contracts. andso are what the
Dutch theorist Fons Trcmpenaarscalis ‘universalists’ * they think
rules apply ioeverybody. They are nol afraid af confrcntationbut
wili ccmpr+mise v.lhen necessary to aehi*ve adeai. They are
essentially individualist.

sub-SaharanAtri ca

Arab countries

Bulgar ia,Turkey, lran

Belgium, lsrael

Austral ia. Denmark, l re landIndonesia, Malaysia,

Phi l ippines

Austr ia, Czech RePubl ic,Netherlands, Norway Korea, Thai
land

Germany,switzer land

Finland Canada Singapore Taiwan, JapanHong Kong

From Richard D. Lewis, The Cultural Imperative: Global Trends in
the 21st Century (Yarmouth, Maine lntarrr r l t r r re l Pracc
?OO?l

‘lo{ulti*active cultures’ in S*uthern f,urope. LatinAmerica and
Africa attach more importance tofeelings, emations and intuition,
and relati*nshipsand conneetions. P*opie like to do many ihings
atthe sar:ie time, they are flexli:le, g*cd at changingpians and
happy to impravise. They believe insocial or company hierarchy, and
respeet status.They are essentiaily colleciivist, and also
whatTrompenaars calis ‘partlcuiarist” – they helievethat personal
relaticnships and friendships shouldtake precedence over rules and
regulations.

Comprehension1 Why is i t important for companies to be aware of
local cul tures?2 What are the di f ferences between individual
ists and col lect iv ists?3 Who is more l ikely to think: ‘ l ‘ l l
let them speak f i rst . ‘4 Who is more l ikely to say, about other
people: ‘They can’ t be trusted because

they wi l l a lways help their f r iends or family ‘ – universal
ists or part icular ists?5 Who is more l ikely to say: ‘Oh, you
can’ t t rust them; they wouldn’ t

even help a fr iend’?

People in ‘reactive cuitures’ in Asia prefer tolisten ta and
establish the other’$ pasition, andthren react to il. They iry ta
avoid ccnfrcntation.and don’t want to’i*se faee’ or calise
silmeoneelse to. They rarely interrupt speakers andr:ften avaid eye
contact. They try to formuiateapproaches which suit both
parties.

*ther ccuniries have *r:itwes v’rhich shawc*mbined
chara*teristics af two of thes* pol*s,and can ?:e represented along
the sides cf atriangle.

li4anaging across cultures Unit 4 27

VocabularyMatch the words in the box with the definitions
below.

collectivistimprovise

compr.o,misel’flt

P1′:”1’r1..’,,,,urtuition liI an invented word combining
worldwide and regional concerns2 thought based on reason and
judgement rather than feelings and emotions3 a face-to-face
disagreement or argument4 reducing demands or changing opinions in
order to agree5 understanding or knowing without consciously using
reason6 people of influence or importance with whom you are
associated7 to do something when necessary without having already
planned i t8 respect, prestige or importance given to someone9 bel
ieving that the group is more important than the individual

10 to be humil iated or disrespected in publ ic11 to cut into
someone else’s turn to soeak12 looking direct ly at the people you
are talk ing or l istening to

Discussion: Managing across cultures1 To what extent do you
agree that it is possible to sum up national characteristics in

a few words? ls there usually some (or a lot of) truth in such
stereotypes? Or, on theconlrary, do you find such stereotyping
dangerous?

2 l f your country is not shown on the diagram, where do you
think i t should be si tuated?lf your country is shown, do you
agree?

3 Would you say that you, personal ly, were individual ist or
col lect iv ist? Part icular ist oru niversa ilst?

4 What about the majority of people in your country?5 Which of
the following working practices would be effective or damaging in
your

country? Why?a the principle of ‘pay-for-performance’ for sales
representatives – the more tfiy sell,

the more they get paidb having a competi t ion for the ‘Employee
of the month’c having a matrix management systemd extensive
teamwork

Writing: You and your influenceswrite a short text (1o(Fl50
words) explaining which five ol the factors listedbelow you think
have had the most influence on your behaviour and attitudes.Put
them in order of priority.

‘ Nature: your genes or DNA, the character ist ics you . Pr
imary or secondary school, teachers, and whatinherited from your
parents and were born with, you learntyour emotional and physical
make-up

. Your family environment in early l i fe. Higher educat ion:
col lege, universi ty, teachers,

colleagues, the subjects you studied (or are. Your fr iends and
social l i fe, the things you do in your studying)

free time . your ioo

28 Unit 4 Managtng across cultures

S#anagement

. The character ist ics that are considered typicalof your
country, ar is ing from geography, cl imate,history, rel ig ion,
the pol i t ical , soctal and economicsvstem. and so on

. The culture of your part icular company

. Your col leagues: the people in your team ordepartment

. Your col leagues: the kind of people who work inyour specific
area of work

Then in groups, report on your choices and explain them’

tistening 2: Managers and cultural diversity ffiwhat would
happen i f the world became truly global ized, and
everyonetravelled, or worked with people from different cultures?
Listen to three MBAstudents at the Judge Business School, and
answer the quest ions.1 What does Lakshmi descr ibe as an advantage
of internat lonal

management schools?2 Why does Janine say that American
businesspeople now have

different attitudes?3 What ski l l or abi l i ty does Janine say
al lows people to be more

self-aware?4 What expression does Carlo use to descr ibe
corporat ions

becoming trulY internat ional?5 What does Carlo say happens i f
companies move a lot of

execut ives and managers around?6 What is the saying or proverb
that Janine quotes? What does i t

mean?7 What is the Japanese version of this saying that she
heard?

What does i t mean?

Role play: Welcoming American colleagues

**

takshrni Jaya{from India}

Janine George{from

South Africa|

Carlo de Stefanislfrom ltaly|

The document could include informationabout working practices in
your office, aswell as practical information about your cityor
country, including advice about transport ,and convent ions such as
t ipping in taxis andrestaurants.

In groups discuss what should go in thisdocument and then
present these ideas to therest of the class.

“E*.

You work in a mult inat ional organizat ion. Youhave been given
the responsibi l i ty of mentor ingtwo American col leagues who are
coming towork in your office. You have been asked tohelp them
settle in to their new workplace bypreparing a short document out l
in ing the generalpractices they can expect to find when they
areliving and working in your country’

allos-r luliLues Unit 4 29

Recruitment

Q Consider the different stages of recruitmentQ Discuss what
makes a good CV/resume and covering letterQ Compare good and bad
practice in preparing a CV and covering letter

Iead-in. How long do you think recrui ters in a Human

Resources department spend looking at theaverage CV or resume
for a junior posi t ion?

. l f 100 young people with very simi lar experienceand qual i f
cat ions apply for a 1ob, which elementsin a CV or resume make a di
f ference, and mightlead tn a ioh intprvieWT

. How many t imes do you expect to apply for a newposit ion
during your career? How many t imes doyou expect to change
jobs?

. What does this cartoon say about the recrui tmentprocess?

Reading: Filling a vacancy

-\- —

“RisumCs over there.O The New Yorker

When employees ‘give not ice’ , i .e. inform their employer that
they wi l l beleaving the company as soon as their contract al
lows, in what order should thecompany carry out the steps l isted
below? Complete the chart opposite with theletters A-1.A ei ther
hire an employment agency (or for a senior post, a f i rm of
headhunters), or

advert ise the vacancyB establ ish whether there is an Internal
candidate who could be promoted (or moved

sideways) to the jobC examine the job descript ion for the post,
to see whether i t needs to bee hanged (or

indeed, whether the post needs to be f i l led)D fol low up the
references of candidates or appl icants who seem interest lngE invi
te the short l isted candidates for an interviewF make a frnal
select ionG receive appl icat ions, curr icula vi tae / resumes and
covering let ters, and make a

orel iminarv select ion (a short l ist)H try to discover why the
person has resignedI wri te to al l the other candidates to inform
them that they have been unsuccessful

Uocabulalg note , ,

Curriculum vitae or CV is used in Britain; resume is mole
,common in America. Resume used to be spelied the French way,with
accents on the letter e (resum6l, but it is now often
spelledwithout them. The word has tfuee syilabies and the finat e
ispronounced: rez-oo-may f ‘ rezomerf .

30 Unit 5 Recruitment

Reading and discussion: Job applicationsWhen applying for your
first job as a business graduate, you are probablyonly one of many
appl icants, most of whom wi l l have simi lar experience
andqualifications to your own.. How can you get your name onto the
shortlist for interviews when applying

for a job?. What can you do to impress the organization which is
hiring staff?

Manageruegl

other i6bs’

Recruitmeni Unit 5 31

Which of the following extracts from a Cv/resume and different
application letterswould help the candidate to get an interview,
and why?

Recruitment

Dear Sir or Madam,I am writ ing lo erpress my infaresi in
applying for theposil ion of Community Fundraiser adverlissd in fhe
MorningHerald on l3 !lay,20–. I anr looking for a
challengingentry-level posifion thaf allours me lo conlribule my
skil lsand experience lo fundraising for a charity.

I ptau for the universitubasketbatt team. We havewon the
national universitgchampionship for the pasttwo gears.

Emolovmenl5aturdaye,2006-A, and full-time July 2OOO, Right,Trice
food atore, Weet End Avenue (ahelf-filling).July 2OO9, ?ort
Authoriiy Bua Terminal, bth Avenue(bue aleaner),Auguat 2OO9,
grape-piaking, Napa Vallq, California.November 2OO9-June 2O1O,
touriat guide at 5tTatrick’ a Calhedral, 5lh Avenue
(gaturdaya).

I aw writLvg to apress wy Lwerest iwthe pasLti.an. of ArcauE
fulqn4gex that wasadvertued aw y04r website aw 13 February,20–.
I’vw extrerwdy iMerested Lw thbposiant, and t wauld lik th&
opportunityfor aw iwewiew Lvt, whu.Lt I cauld sh.ow yowhtw I cqw
benzftt yaur cavnpdvly.

Mg pcrents are French cnd Russian, and because theg workJor o
multinational compang, I grew up inJour dLJJerentcountries. I did
att mg schooling in English, but I speak andwritefluent French ond
Russion. I con atso reod ltali.an,Sponlsh, Romanian and most Stavic
languages.

I have travelled extensively during my lastthree summer
vacations. In 2O–, ltravelledaround the Mediterranean [Spain,
France,Italy, Greece) for ten weeks. In 2O–, I went toFlorida for
a month, and I spent six weeks inBali in 2O–. I have consequently
met a greatmany people from many different cultures, andI am
absolutely convinced that these cross-cultural experiences make me
suitable for aposition in international marketing, and thatyour
company would have a great deal to gainfrom employing me,

Daar Mr/Ms [name],I an applying for tha 6alas Associato position
which wo diecussod during tho Caraer Fair at tha NationalUnivarsily
in [city] on [date]. I bolieve my variad ealae experianea and my
Oachelor’s dagrae in OuoineesAdministration ara an oxcallant match
to tha qualifcationt lou ara seeKing.

As you can sea from the aneloaed resumo, I have sold a variety
of producta in part-timojobs during nyeludies and hava worKad in
uloe dapartmanls during two intarnehip poailions. Thit oxporionco.
as well ao m,1oral and wrilten communication sKille, should provo
valuabla in incro46ing [conpany namo]’s saloa voluma. Iam
anthusiastic about Pursuing a caraar in sales with [compan’1 name]
bacauso of your variod product line andinternational distribution
notworK-

Manageuoen!

I am seeking a challenging position with a progressive company
that will offeropportunities for professional growth and
advancement. I am results orientated, aself-starter and a team
player. I’m a good communicator, and have excellent
projectmanagement, interpersonal, people management and negotiation
skills. I can alsowork unsupervised. I am committed, creative,
competitive, ambitious, adaptable andflexible. I am good at meeting
deadlines, solving problems and making decisions.

As you will see from my CV I scored an average of 91%in my
university examinations (94% at the end of the firstyear,87o/o in
my second year, and 92o/o in my final yearexams). I stayed on to do
a post-graduate degree in finance

-‘-and ba-nking, and was encouraged to extend my
Master’sdissertation into a doctorate, which I have done in the
pastten months. I expect to be awarded my PhD in six
weeks’time.

Notes on CVs/resumes. European and Asian CVs general ly include
photos; US resumes do not.. Br i t ish CVs include personal detai
ls such as date of bir th, mari tal status, number of chi ldren,
etc. ; US resumes

00 nor.Bri t ish CVs usual ly include outside work interests
(sports, t ravel l ing); US ones sometimes don’t .Your CV should be
total ly honest; you should emphasize your strengths, but not l ie
about your experience orski l ls. l t should not say anything that
contradicts what you’ve put on your Facebook page, or s imi
lar!Leave out information that is i r relevant or that could give
some people a chance to discr iminate against you(personal detai ls
such as your height, weight, health, country of or igin, rel ig
ion, etc.) .Limit your CV to a maximum of two pages.Lay your CV out
neatly.Check for grammatical and spel l ing or typographical
errors, and do not rely on an automatic spel l checker.Get someone
to check your CV before you send i t .

“Mind if I take this, chieJ?It’s a headhunter who’s been after
me for weeks.”

hIl_l

‘ l : .1t i l- .- l; l”crt’J,l

@ The New Yorker

Recruitment Unit 5 33

::.’

Here is a model skeleton for a CV.. ls this how you would
present a CV in your own language?

Curricu[um VitaeNameAddressPhone number(s) fdaytime phone
number, with the international access code]EmaiI addressDate of
birth [write the month, e.g. 11 January 1990, because 1.1./1. = 11
January (GB) and 1 November (US)]Nationatity [always begins with a
capitat Letter]Marital status [Singte or Married]

OBJECTIVE[what you want to do next is more important than what
you have done] e.g. A job in internationa[ marketing;A traineeship
in trading; Production assistanU Account manager; FinanciaI
anatyst

WORK EXPERIENCE[in reverse order, starting with the most
recent]e.g. Part-time Technical Assistant, Economics Facutty IT
Centre (September 2009-June 2010) (repair andmaintenance of
department, faculty, staff, and student computers)

EDUCATI0N or QUALIFICATIONS[in reverse order, starting with the
most recent]20– Master’s Degree in InternationaI Management,20–
Bachelo/s Degree in Business Administration,Economics, Bigtown
University20– High School Certificate (speciatizing in maths

Bigtown University (expected date of completion JuLy
20–)majoring in Finance, Facutty of Business Administration
and

and science)

COMPUTER SKILLSe.g. Microsoft Word, Excel and PowerPoint, Lotus
Notes and 0racle Financials

LANGUAGESe.g. Ftuent in Spanish andor Arabic (mother
tongue),

HOBBIES AND TNTERESTS[ideal.Ly, these wi[[ inctude

Engl.ish, some knowledge of French and ltalian.good knowledge of
Engtish, etementary knowledge of Spanish.

hobbies that demonstrate quatities that are relevant to the job
you are applying for]

REFERENCES [or TESTIMONIALS (US)lThe fottowing peopte can
provide references:[names and addresses (and phone numbers or email
addresses) of two people]

34 Unit 5 Recruitment

Notes on covering letters. The covering let ter explains why you
want the job.. t t should be specif ic to the job you are applying
for, adapted to the target organizat ion,

and show that you know about its activities.. l t should highl
ight your ski l ls and achievements, and show how your
background,

training, work experience and abi l i t ies relate to the job
you are applying for.. l t should use formal ldnguage, and
demonstrate that you have good wri t ten

communicat ion ski l ls .

Here is a model for a covering letter.. How different would a
covering letter be in your language?. Would it be more modest, or
more assertive in listing your talents?

Management ,,

Your addressYour email address

Date (23 May 2O–)Company nameCompany address

Dear Mr/Ms (Name),

I am writing to apply for the position of –

advertised on your company’swebsite. Having read the job
description, I believe that my academic record andinterpersonal
skills make me a strong candidate for the position.

I am a final-year student and will shortly be $raduating from
Universit5rwith a BA in Business Administration. Last summer I
spent three monthsgaining practical experience in

– , during a traineeship (BrE) / internship

(AmE) at (organization) in (city). My responsibilities there
included orgarizing /implementing / developrng / coordinating /
analysing

As you will see from my CV, last year I spent an exchange
semester at theUniversity of

– . My experience of studying in (language) and working in

(country) have taught me how to live and work in different
environments, andgiven me some experience of intercultural
communication and working withdiverse teams.

I am fluent in –

and English.

I am available for an interview at your convenience and look
forward to hearingfrom you.

Yours sincerely,

Your handwritten signatureYour name, typed

Recruitment Unit 5 35

Discussion: CVs/resumes and covering letters’ Why is it normal
in some countries not to include photos or personal details

on a CV/resume?’ should a cv really be totally honest? Do you
think most people are completely

honest?Why might an employer want to know about your hobbies and
interests?Woufd you want to work for someone who might be
prejudiced against yourcountry of origin or religion?Would you
target each covering letter if you were applying to 30
companies?

Listening 1: Classifying the interviewee mJohn Antonakis is
Professor of Organizational Behaviour at the University ofLausanne.
Listen to him talking about how to behave at a job interview,
andanswer the questions.1 What does the saying that John Antonakis
quotes mean?2 What does he sav an interviewee should do?3 How does
he demonstrate that the saying is true?

listening 2: Confirming first impressions rcListen to John
Antonakis talking about the psychology of job interviewers,
andanswer the questions.1 Which of the fol lowing things does he
say?

A Interviewers make quick decisions about interviewees because
thev don’t haveenough information about them.

B Interviewees can demonstrate their intelligence and
personality in a job interview.C Interviewers make judgements on
the basis of smal l s ignals or cues.D Interviewers have a fixed
idea in their heads as to what a competent person

looks l ike.E Interviewers are biased towards people who
resemble themselves.F Interviewers can either trv to make a
candidate succeed or fail.G Interviewers will alter incorrect f rst
impressions if a candidate answers

quest ions wel l .2 What is ‘confirmation bias’?

listening 3: Preparing for an interview ffiListen to the third
part of the interview and make a list of five things that
JohnAntonakis says interviewees should do either before or during
an interview.

36 Unit 5 Recruitment

Discussion : First irnpqssions. To what extent do you t\int
ttrat you judge people as quickly as Antonakis

suggests? \. How accurate do you thirlk your first impressions
about people usually are?. How could interviewers be trained to be
less biased?

Further tips for job interviewsWhich five of these tips do you
think are the most useful?. Research the company thoroughly.. Have
complimentary things to say about the company and its products or
services.. Be conf ident and enthusiast ic.. Be prepared to talk
about your strengths and weaknesses.. Expect questions about
difficult situations you have faced, problems you have solved,

erc.

Have examples of successful experiences with groups or teams.l f
you talk about your hobbies, t ry to say something interest ing and
memorable (andnot just ‘music, c inema, travel ‘ ) .Have some
questions you can ask the interviewer, such as:- Can you tel l me
more about your training programmes?- Can you tell me how
performance is measured and reviewed?- Are there possibilities of
promotion for someone whose results are good?- ls the company
facing any major chal lenges I don’ t know about?

Role play: A job interviewYou will either interview a candidate
for a job or be interviewed. Your teacherwill give you a role to
prepare. But first:1 As a class, select a large, international
consumer-goods company (food, clothing,

electronics, household goods, etc.), and study its website so
that you know what thecompany does, and why you would want to work
for it.

2 Choose one of the three posit ions advert ised on page 143.3
Make appropriate changes to your own CV so that you would be a
serious candidate,

and prepare yourself for an interview for the job you have
chosen,. What kind of quest ions do you think they wi l l ask?.
What is the best way to answer them?. What do they want to hear i
not want to hear? etc.

Recruitment Unit 5 37

Women in business

Consider the importance of women in businessDiscuss attitudes
towards women in business today

iaQ

listening 1: Women in business – a strategic issue (1) reAlison
Maitfand is the co-author, with Avivah Wittenberg-Cox, of WhyWomen
Meon Business.’ Understanding the Emergence of our NextEconomic
Revolution. Listen to her talking about women in business,and
answer the quest ions.1 What two reasons does Al ison Mait land
give for saying that the proport ion of

women in business is a strategic business issue and not a
women’s issue?2 What does she mean by ‘ talent pool ‘?

listening 2: Women in business – a strategic issue (2)Listen to
the next part of the interview, where Alison Maitland givesa third
very good reason why companies should have a number ofwomen
directors or senior managers. What is i t?

ffirB

VocabularyMatch the fol lowing words and expressions, used by Al
ison Mait land,with their def ini t ions.1 cr i t ical mass

2 leadership ranks

3 outperforming

4 profitability

5 return on equity

lead-in. What is the rat io of males to females in your business
school or place of

work?. l f you are in col lege, what is the rat io of male to
female teachers or

professorsT. l f you are in work, how many female managers are
there, especial ly at higher

levels in the organizat ion?. Why do you think this is?

A doing better than others, f nancial lyB the abi l i ty to make
a good return on capital

invested in the businessC the amount of money a company earns on
the

investment of i ts shareholdersD the number of people needed to
start and

sustain a changeE top levels of management

Alison Maitland

38 Unit 6 Women rn busrness

You’re fired!Imagine you’re one of the 13 menon the all-male
board of a largecompany and are told five of youmust go to be
replaced bY women.Unlikely? Not in Norway, wherethey’re enforcing a
law that 4O%of directors must be female.

Discussion: The importance of women ln business. What do the f
igures about consumer spending decisions

made by women (80% in the US, 66% of car purchases in Japan)tel
l you? What is the si tuat ion in your country?

. Why do you think that (according to research studies)companies
with more than 30% of women on the board ofdirectors or in senior
{nanagement are so much more prof i tablethan companies
without?

Reading: You’re firedlRead this extract f rom an art ic le in
the Bri t ish newspaperThe Guqrdion, and answer the questions on
the next page.

ManaEerne4l-

now has, at 4oo/o, the highest proportion of femalenon-executive
directors in the world, an achievementengineered by the
introduction of a compulsoryquota. Two years ago, after several
years of voluntarycompliance had failed to lead to a sufficient
numberof female board members, 451 ASAs’ – publicly listedcompanies
over a certain size – were told to change thecomoosition of their
boards or risk dissolution.

a, woman comes in, a man goes out. That’s howthe quota works;
that’s the law,’ says Kjell Erik Oie,deputy minister of children
and equality, in the centre-left ‘Red-Green’ coalition government
in Oslo. ‘Veryseldom do men let go of power easily. But when
youstart using the half of the talent you have previouslyignored,
then everybody gains.’

In zooz, only z.ro/” of non-executive directors ofASAs were
female. […] Business leaders argued thatexperienced senior women
were impossible to find,especially in the oil, technology and gas
industries.’l’m a responsible man,’ one CEO told me in Oslolast
week. ‘I have a drty to do the best I can for ourshareholders. I’ve
been forced to appoint two womenwhom I know are apprentices. Give
them ten yearsand I’d be happy to have them on the board; notnow. ‘
[ . . . ]

Dammann appointed his two women last June, afterwhat he says was
a six-month’time-consuming’ search.He is not a convert to the
quota, though.

‘I think people will still go to those they havetrusted for
years, whom they have had to removefrom the board,’ he says. ‘So
there will now be a formaland informal system, and that cannot be
good foraccountability.’ […]

Yvonne Roberts

Rolf Dammann, the co-owner of a Norwegian bank,recently had his
skiing holiday interrupted by someunwelcome news. The government
had published a listof rz companies accused of breaking the law by
failingto appoint women to 4o”/o of their non-executive
boarddirectorships. His company, Netfonds Holding ASA,was one of
the dirty dozen – attracting internationaiattention.

‘l work in a man’s world. I don’t come across manywomen and
that’s the challenge,’ Dammann says. ‘Thelaw says a non-executive
director has to be experienced,and experience is difficult to find
in women in mysector. Feople have had to sack board members
they’veworked with and trusted for zo or )o years, and replacethem
with someone unknown. That’s hard.’

This month, Norway set a new global record’ It

“I feel like a mon tapped in a woman’s salary.”@ The New
Yorker

Women in bustness Unit 6 39

::=

:==

a::

Comprehension1 What is the new Norwegian law?2 what reasons does
Rolf Dammann give for not having compl ied with the new law?3 what
does the cEo say about the two women he has had to appoint as
directors?4 What does Dammann say wi l l happen as a consequence of
the new law?

VocabularyFind words in the article that mean the following:1
meet or f nd unexpectedly or by accident2 required, obligatory,
necessary according to the law3 an off ic ial ly imposed number or
quant i ty4 done by choice, without legal obl igat ion5 obeying
laws or regulat ions6 the ending or terminat ion of an organizat
ion7 trainees, people st i l l learning their job8 someone who
changes their bel iefs9 being off ic ial ly responsible for
something

Discussion: Compulsory quotas’ what do you think about
‘affirmative action’ – the imposition of compulsory

quotas concerning the number of women board members?’ How far do
you think affirmative action could also be used for executive
board

members, and at lower levels in a company?’ Should business
schools and universities have quotas for female staff and

students, or members of ethnic minorities?

Questionnaire: Ways of thinkingComplete the questionnaire
opposite about attitudes to job interviews and jobs,and then
compare your answers in pairs or groups.. Which of these statements
are (more or less) true for you?’ Do you think any of these
statements reflect mainly masculine or feminine

ways of thinking?

\ \Women in business40 Unit 6

Role play: Do we need more women managers?The CEO of a large
consumer-goods company is worried about the small numberof women in
senior management positions in the company. He/she has calleda
meeting of the non-executive directors to discuss what can be done
aboutthis. These are people with a long experience in business who
oversee themanagement of the company.Your teacher will give you a
role.

WritingWrite a short memo or email (100-150 words) that explains
the purpose of themeeting and summarizes the ideas that the CEO
thought were the best.

Women ln business Unit 6 41

The different sectors of the economy

Q Consider the different sectors of the economyQ Discuss changes
that have taken place in the different sectors of the economy

Lead-in: The economic infrastructureldenl i fy the most
prominent features jn ihese photographs, which i l lustrate valous
importantelements of ihe infrastructure of a modern industr ial
ized country.

42 unit 7 The ‘irliercli s-artors li ilLe ctctnilrr,,

Production

Reading: Another cup of teaf n this extract from David Lodge’s
novel Nice Work, Robyn Penrose, auniversity English lecturer, is
accompanying Vic Wilcox, the managing directorof a manufacturing
company, on a business trip to Germany. She looks out ofthe
aeroplane window, and begins to think about the essentially English
act pfmaking a cup of tea.. What is the key p

:ln l ines 4-7 , Robyn sees examples of al lthree sectors. What
are they?The long sentence from l ines 11-27l istsa large number of
operat ions belonging to the di f ferent sectors of the
economy.classi fy the 1B fol lowing act iv i t ies from the passage
according to which sector theybelong to:

advertising productscalculat ing pr icesdistr ibut ing added
valuemarketing productspackaging productssmelt ing i ron

assemblingcutting metallaying cablesmi l l ing metalpressing
metaltransportation

bui ld ingdigging iron oremaintenancemining coalpumping oi
lwelding metal

Can you think of threeimportant act iv i t ies to add to each l
ist (not necessari ly in relat ionto the kettle)?

The quaternary sectorSome people now describe the economy as
having a quaternary sector,consist ing of information services such
as computing, ICT ( information andcommunicat ion technologies),
consultancy (offer ing advice to businesses)and R&D (research
and development, part icular ly in scient i f ic f ie lds).
Broaderdef ini t ions add the news media, l ibrar ies, universi t
ies and col leges, and otherintel lectual act iv i t ies including
cul ture general ly.

In what ways have the activities in the box above been changed
by informationtechnof ogy since David Lodge wrote Nice Work in the
late 1980s?

Discussion: Your place in the economy. Which sector do you
intend to work in or do you already work in? How do you

‘fit into the total picture’?. How many people in the tertiary
sector have you already spoken to today

(travel l ing to col lege or work, shopping, eat ing, and so
on)? What aboutpeople in the other sectors? When did you last talk
to someone who grew orproduced food, for example?

. What are the (approximate) proportions of the different
sectors in yourcountry? How do you expect these proportions to
evolve in the future?

44 Unit 7 -|he dtffere;rr. sectors ci ihe ccolomri

All tho rr’rorld’s m41orYconomioe – ths Ui,dapan,
Germanl,(rance, gritain, ltal1,China, eIc. – are m41ormanufacturers
oforported goods. -Ihisobviously nesds iocontinuo.

Production

Reading: Manufacturing and servicesRead the following statements
about manufacturing and services in advanced countries.. Which of
them are in support of manufacturing in advanced countries, and
which are in support of

services?. Which of them do you find the most convincing, and
why?

VocabularyFind words in the statements above that mean the
following:’l oroducts sold to other countries2 property: buildings
such as off ces, houses, flats (BrE) or apartments (AmE)3 work done
in return for money4 to move your factories to another region or
country5 to use other companies to do work your company previously
did i tsel f

t A loi of sYrvico aoctorjobsdepend on manufacturing
industrl,Manufacturin g companiet Pc ovl!/worK for accounian$,
laryorSeideaignorc, marYellr s, adv eriiser s,sa\eqoop\Y, banverc,
engineorc, ffrpecialiets, oIc.

Manufacturing lndustrl willinevitabll dec\ine in
advancedeountrios and bo replaced b1aorvict t, b ecauso labour
costsare hoo high. Lompanlea urillde\ocalite their manufaaturinq
tolow-cost countries.

Mvanced counlcilt havv erperiiloin highor oducaIion, VAD,
lLT,businers coneulting, oIc.’lhe1should conconlralo on
Iht.aestrengtho, rathor ihan trling tomaKe thinga moro choapll
thanletr. – dev eloped countri eo.

4 Depending on lorviLo induatries isdangeroue; aIIor Ihe
financia\ rri$ein?-oob, New YorK and Londondidn’t onll \oso
ttnancialjobs, buialao lotr ofjobe in all the rv\aied*rvice
industrise: law firms, rea\v$aIe, erpeneiv y r oslaucanls,
luxur11e$, dc.9ig ciliot noodlaclociottoo.

Millione of tourisieiravol to m41or cities,and millions of
peoplachoos?, to live in thom,bYcausv of tho arts andenlortainmonl
– Ihortre,mu6ir, mu6eum5, 5Port,etc. Manufaaturingand heaq industrl
canand should bo donee\*whero.

tvrvicy functions such as ca\l cenlcea accounling, writing
softwaro, can al\be oulrourced to companiet in chvaper countriss.
6onsequentll , advancodeountries should conconlrale on hlgh-quali\
manu{acturing, whlch requiretrkil\g that cannol6v oulsoucc?d or
doloca\iz,ed.

The dlfferent sectols of the economy Unit 7 45

listening: The business news UreListen to six business news
stories from American radio stations, and completethe chart
below.

t

2

3

4

5

6

Writing: The busrness newswrite an imaginary business news story
(not more than 100 words) involvingdifferent industries and
economic sectors, and inctuding several figures, anJcovering
everything in the columns.

46 Unit ? The different sectors of the economv

Production

Q Discuss the process of industrial productionq Consider the
global impact of international supply chains

Iead-in. What do product ion and qual i ty managers do?. What
part icular ski l ls do you think product ion and operat ions

managers require? Do you think you have these skjlls yourself?.
Would you l ike to work in this f ie ld?. What do you think the
objectives of a produlction department

usual ly are?

Vocabulary: Industrial production

llred, ‘ l l ‘ –

r ‘

i {1qrrl,ff ri r.Er ltlvq c,tl,t’t .t’t

-*

“I’m a local craftsperson – I make money.”@ The New Yorker

Before reading and hearing about industrial production, match up
the half-sentences below,which def ine some basic terms.1 Inventory
(AmE and BrE) or stock (BrE) is a

company’s re5erves2 A component is any of the pieces or parts3
Capacity is the (maximum) rate of output4 Plant is a col lect ive
word for al l the bui ldings,

machines, equipment,Locat ion means the geographical s i tuat
ionA supply chain is a network of organizat ionsOutsourcing means
buying products orprocessed mater ialsEconomies of scale are the
cost savingsLead t ime is the t ime needed to perform
anactivity

A and other faci l i t ies used in the product ion processB ar
is ing from large-scale product ion.C from other companies rather
than manufacturing

them.D involved in producing and del iver ing goods or a

servrce.of a factory or other facility.of raw mater ials, parts,
work in process, and f inishedproducts.such as manufactur ing a
product or del iver ing i t to acustomer.

H that can be achieved from a product ion processI that make up
a product or machine.

567

8I

EF

Reading: Capacity and inventoryOperations managers have to
decide where to manufacture different products, how muchproductive
capacity their factories and plants should have, and how much
inventory to maintain.Read the 15 sentences on the next page, and
classify them under the six headings (A-F). Somesentences may fall
under two headings.

A The consequences of insufficient capacity D The disadvantages
of large facilitiesB The consequences of excess capacity E The
advantages of having a large inventoryC The advantages of large
facilities F The disadvantages of having a large inventory

l- ‘ t’ l ‘ –

_*

.* i: i l

– . ,1J- rJn

W

Production Unit 8 47

1 A long lead time may allow competitors to enter the market.2
As production volume increases, you get economies of scale (the
average fixed cost

per unit produced decreases).Finding enough workers and
coordinat ing mater ial f lows can become dif f cul t .l f lead t
ime increases, some customers may go to other suppl iers.Lost sales
and market share are usual ly permanent.The working environment
might get worse and industrial relations could deteriorate.There
are costs of storage, handl ing, insurance, depreciat ion, the
opportunity cost ofcapital , and so on.You can be more f lexible in
product schedul ing, and have longer lead t imes and lowercost
operation through larger production runs with fewer set-ups.There
is always a risk of obsolescence, theft, breakage, and so on.You
can meet var iat ion in product demand.You may be under-utilizing
your workforce.You have protection against variation in raw
material delivery time (due to shortages,strikes, lost orders,
incorrect or defective shipments, etc.).

13 You may be forced to produce additional, less profitable,
products.14 You can take advantage of quant i ty discounts in
purchasing.15 You may have to reduce pr ices to st imulate
demand.

Listening 1: Purchasing ffiListen to Alan Goodfellow, Global tr
Director of Leica Microsystems, talkingabout purchasing and
manufacturing, and answer the questions. Leica is part ofthe
Danaher group of companies. They make microscopes, imaging systems
andmedical equipment.1 What does he describe as ‘one of the main
goals of any company,?2 What is the advantage of being part of a
larger group of companies?3 How does a reverse auction work?4 Why
is it called ‘reverse’?5 What does he mean by ‘pr ice isn’ t
everything’?6 What is the consequence of this?

listening 2: Low-cost manufacturing treListen to Alan
Goodfellowtdlking-Ebqut manufacturing in Asia, and answer
thequestions.1 What are the advantages of having factories in
Singapore and China?2 Why is this nof outsourcing?3 What was the
problem with staff in China?

34567

8

9101112

Alan Goodfellow

48 Unit 8 Production A Leica factory in Singapore

ffg*C”##effie_

4 Now l isten again, and f i l l in the gaps in this
extract:

i, vo. r r rhon*rAf i
rctcetrrnthpcnmnanVinChinathefewefeapfeatmenvnrnhlornq rn2ir , l ‘
rnr{nrrr i th

– “

– –

) t r1 UP Ll lg LVl l lPql l / l l I u l l l l lu Lr rur u 6 ‘
vqL l l lo l l I Pluvrur

local staff , but part icular ly ‘? , because the

economy was 3 so much, we found that af ter t raining staff , br
inging them up to the

standards we expected, they were very