business vocabulary builder int upper int

Business
Vocabulary
Builder


Road,
Selween
Town5
Onod OX43PP
A divsonol Ma.millan
Plb sheELmned
Compan
esandrcprcsentalivesihroughoullh€wo.ld

Texl@PaulEnneron2009
D e s i q n a nudsl t r a l o n @ M a .amn P u b i 5 h e 6 t i m t e d 2 0 0 9

a r ghc reseNed,no partofth s pub .ar on maybe€podu.en, rtoredin a etiaa st5t€m,lrans tt€d in any
or oth€Bise,
wlhoL(rhepriorwiften
lorm,or byanyheans,eletronc, m4hanca, photo.opynq,.{oding,
pemissonoI rhepubishe6
Desgned
byCaroynGibson
I unraGdbyPeter
Harper
andill anMoseda
e
CoverdesqnbyKaleSleph€ns
Aurrrol\a.know€dqem€nt5

th€bek, Kaenspillsforhs uaal
Theaulhorwouldlke to thankAnna
cowperior ommi55ionlnq
whrl€ior herlhooughpr@fEding andsQeng
oulstand
n9conlibulononconlenr
editing,
andKarcn
everylh
nqthouqhto pub .aron Thanlsa@'nio Ma.naWaher16 ran(ibrng1heoigi^alinleryieson
ationaHouse,london
whi.hthelnenngscfptsarebat€d
On.eaqainlhercwee manynudenbal Inlern
whogaveupther tme lo be nteMeed lor lhe ne^ n9malerul,and would'kelo rhankAdnaSlvul,
tiankKaiarh.aelMmery
Li,fran.gc. Merella,
ce nePerez,
c audo 5ela,Em'lhano
L'ma,tabr?ioFanne
lu ancowanrnd Ma$imoLu(chin'
lo eprcdu.elher photoqrapht:
Theauthorandpubshe6wouldketo iha^k$e follownqlor pemieson
A(dela
.o.]4eocullump57,can@nbank.@ntMaie
Can@nbank
convchaesBa6oltip23,
Canoonbank
pl5, Canoonba^k
p35,Can@^bank
lvla(hetop7,Cad.onbank

con4a.bara
Smaler
convrameSl4enson
Whiktevery
elto.thasbeenmadero localerheowne6ol copyqhrmaleial'nthBb@k,$eremayhave
beenbme cases
when$e pubishe6
ha@beenuabe ro (onl.clrhe@ne6 we fiould beEslelultoh$r
l@manyone who Eogn se5copynqhtmars al andwho is unacknowedqedwe shal beplearedto makeIhe
n{es;iy amendmenls
in iuiureedlonsol lhe book

Prinkdandboundn HonqKong

2013 2012 2411 2A1A2049
10 9 8 7 6 5 4 3 2 1


Business
Paur
Emmerso"
VOGabU

Ia ry

Builder
to Upper-intermedi
Intermediate
Thewords& phrases
vouneedto succeed

A
MACMILLAN


Contents
B U S t N E S St O P t C S

Financial markets

The businesswo.ld

31 Financial markets

66

32 Investing in stocks

68

33 Re.ruitment

7A

34 Pay and b€nefits

72

35 lisues in the workplacc

74

1

The econo y

6

2

Th€ businesscycle

8

3

lnternational tlade

10

4

Setting up and g.owing a businest

12

5

Company tt|pes and corporate gov€rnance

14

6

Global issuesfor the 21st C F F E C I I V E C O M M I ' ,I \ I I C A T I O N

7

Management styles and qualiti€s

8

Organizing time and work

20

36 Yoqr ba
76

9

Planning and setting obi€ctives

22

37 Your aompany

78

24

38 Youriob

80

10 Leading and motivating
11 Insuranceand risk management

Tel€phoning

Produdtion and op€rationt
12 Manufaduring end engineering

28

13 Inside a factory

30

14 Procurement and purchasing

32

l5 Supply chain manag€ment and logistics

34

16 Lean production

17 Quality

38

lisiening

a2
a4
86

42 Telephoning- arranging a me€ting
43 Telephoning- z|4 telephoning - .€vi€w

88
90
92

Emails

Salesand marketing
18 Sales

39 Telephoning- making end taking calls
40 Telephonlng- messages
41 Telephoning- checklng, .larifying, active

40

19 Cuttomer sedice

20 Markeb.nd marketing
21 Product
22 Distribution(pla.e)

48

23 Promotion

50

24 Price

52

25 Ma.keting management

54

Coftpany tinance

45 Emails- basica
46 Emails- inlernal .ommunkilion
47 Emails- aomrneftial

27 Balanc€sh€et

58

28 Cash flow statem€nt

60

29 Managing
62

30 Profitability

64

96
98

48 Erneils- custom€r i$u€s
49 E nails - arranging a Yiit
50 E n.ils - rcview

100

51 Presentations - oFn-E
52 Presentations - nEin boql

106

53 Presentationi - da*EIF

26 lncome statement

94

54 PresentatiorE - trcr*r
55 Prese8tatioG - t!*
56 Pr€sentatior6 - rrfu

l 02
104

108
bt

I10

I

112

I

114


LISTEiII G SCRIPTs

Meeting5

156

120

Listen and i€peat exercises

Intewiews with busiress peopl€

122
't24

A N S W E RK E Y

164

57 Meetings - opinions

118

58 Meetings- making drings d€a.
59 Meetings - problem-solving
60 Meetings-leading a meeting
61 Meetings - negotlating I
62 Meetings - negotiating ll
63 M€eting3 - diplofiatic l.ng$ege
64 Meetlngt - rcview

126
124
130

Businers rcpons and prcposals
'134
65 Buslne$ rcport3 .nd propo3ali - rcpotts I
136
66 Suaine3r rcports and proposab - reports ll

67 Bu3ine.3 lrports and prcpoad3 prDposals I 138
68 Buainear |lport3 and prcpo3.b - prcpo.al5 ll 140
142
69 Bualn$a Fporta and propoa.b linkirg wordr
'lM
70 Burlnaar raporta and propoaab - rlvl€w
SPEAKII{G
PRACTICE
Dbcuislon toplaa

146

WRITING PNACIICE

$kiting tasks

t5l

LISTEIIIIIIG
PRACTICE
Interviewr wlth bBlnest peopler ererrii€5
1

Interviewwith a privateequityinvettor

2

Interyiew
with an entrepreneur

3

Interviewwith
a management
tainee

153

4

lnterviewwith
a supplychainmanager

153

5

nterviewwith
a salesmanager

154

6

Interuiewwith
a ma*etingdirector

154

7

Intervlew
with a financedirector

154

8

Interview
with a humanresources
director

155

151


The economy
Whai drives the a orld economy?The simplestans{pr to
ilrjs questjor is'cons!mer spending'.And what drnes
consumerspendnlg?Sohe cohbination of the faciorsbeldr
is generallyconsideredio p(\,ide a reasonablean${cr

GDPgrowth for different countries
Grossdomesticprcdu.t (CDP) measuresthe sizc ol a
.ountry's economy It reFresentsthe iotallaluc ofall goods
ind se^,icesproducedoler a specifictime period. Cro$ th in
GDP is one ofthe primarr-indicato.susedto gautc
(= neasure) the he!1thof a couniry s e.onom\: Usunll),GDP
is expressedas n comparisonto the prelious quartcr or \,ear

Governmenttrade policy
Thc hro polcs of govc.rucnt policl'arc liberalizationand
'Lib€ralization'isassoci.lcdwiih frcc markets,open
bor.lers,dcr.Bulationand ihc frcc morc,nent of capiinl
around the world.
'Protcctionisnr'is associatcds'ith golcrntrent
inlcNcnlion, sulrsidics,quoiasand t iffs, and resiriciions
o ! l h c m o v c m c n oi i c i p i i a l .
Nation.l govci,nnentsdo hi!c som0gcnrin. choic.s herr,
cv.n if ihoy .ft'consh.nlcrl by thc p.licy of th.ir rc8ional
tridiig bkJc(og the EU, NA1TA, ASE,\N). ln ih. cod host
countrieshNc . mixc.l ccdnotuywhich is lonre('herc
briwccn ihc two crh'omos.
(l.n...lly sp..knrg, froo n.rkots pronartcgrowih ii thc
wodd d.onon\', and ptutcct.d markcisdos doer thc
pr1,c.ss(.lihough thcy nray ha!. a b.neficialeffecton
p . r t i c l l a r i n d u s l r i o si ' r s i d ci c o u D l r v ) .

consumer confidence
lf.onsumcrs are confideniaboui tomorrow,they will spend
more The main factorsaffechngconsumerconfidencearc
the lerel of memplovment ifpeople's jobs a.e at risk, or
the\.don t have a job, they sill spend less ind housepices
if people'shousesare worth more than ihev paid for ihcm,
the\.feel.ich and rvjllspend nrore rrcely.

lnterest rates
Inierestratesire setbv CeniralBanks When int€resirates
are lo$r.onsumers and b!sinessesc.n boirow mon.y

cheaplyand ihere is a sfimuhs to the economy.8ut thc
cheap(edit alsocausesinflation an.t too much Liquidjiyin
the system.This liqli.lity leadsto bubblesin siock markets,
housingma.kets,eic. When ihe CeniralBank sccsthe need
b control inflafion dnd cool groivth a liiile, ii .aiscsintcrest

Exchangerates
Cur€ncies fllciLutc againstcich othcr thc c!rc itg.inst th.
d o l l a r i h e t e n . g a i n s tt h c y u a n .T h i s i s d u c k ) m a n yc o m p l c x
factoE such as the undc.lying st..ngth of thc economy,
inicrcst ratc diffcrcntinlsand spcculitnr. Ha!ing a sirong
curcncv makcs impo.ts chcip f(r dotucsticconsrmcrs.irut
huris cxpo.te.s(rvhoscPrcducit bccotuchotu orpdlsivc

The business cycle
Economicsgo throughcycl.s ofg(trt,th.nd coniri.ti()n
(= sldvdor!n). This is co\ dc.t in unii 2.

Eflects of globalization

C oser

Rapidflow of

Cultural

Ecological

Cross-cult!ral

Global

rmmrgraton;

cnaeng€s
n€eding

acrossthe qlobe

externallrnancinq

Arguments in favour of globalization
Generaprosperity:
lowerprices,
moreemployment.
hiqherstandard
of living.
mobility.
lncreased
opportunjty
andsoclal/pelsonal
intant
lmprovements
for poorcountrles:
lifeexpectan{y,
mortalty,llteraq,padicipation
of wonrenin society.

Arg ufi ents againtt g IobaIization
lnequality

of w€althwithinnations not rnuch'tricke
down effect' (whenfinanclalbenefitsarc p.sseddown
frombig business
to consumeB
andordinarypeople)
powerof local
Humancosts:injustice
increased
dueto
cultures.
elites,erosionof traditional
Environmental
darnaqe.


1 THE ECONOMY

Exercises
1.1 Find a word in th€ text opposite thal matches €ach
definition below' The words appear in orcler.
1 makessomethinqwork; p.ovidesthe power for somethng

dctivty
2 removing
the ru€sandlawsthatcontrobusin€ts
pdysto supporlndunresor
3 moneythattheqov€rnrnent
' p d L , F r p r o . p. oo d u . r
4 officallrnitson the amountol somethng
5 " . p . o . g o o do. - 9 . n l o d . o - n t a /

6 limited,r€strded
r e d r o L o ln o n e y n c i c - l c t o .
8 periodsof t mewh-"npeoplepaymorclhanthe realvaue
o . o 1 e l 'n q .b . 5 o ' a r r - a o L d
9 wth dn important
efiect,but onethat iln t easyto notce
th ngs
10 (forma,the degreeoi difference
between
Now do the samefor the words in 'Efiectrof
globalization'opposite.
11 wh€npeop€ h.ve..oneyandeverylhng theyneedlor a
good f€
12 theab ityto readandwlte
1.2 [4akephrasesby matchjngan item from eachcolumn.
I consumer
movement
oJcapital
\
2 fre€
and
convacton
\
3 growih
\ ...- borders
4 Ie
rpendinq
5 open
oi livnq
5 standard

expectancy
8
9
l0
1I
12

goods
rnt€ren
cheap
socia
L r n d e rnl yg

1.4 Readthe articleabout the USeconomy,then answ€r
the questionsbelow.Checkany unknownwords in a
dictionary
aiulacturng in the US slowedmorethan lorecast
it
lUl ln Ocloberas factores recevedjewerordercafd
producuonconiracted,an induslryreportshowedtoday.
Manufacluring
Lson lhe vergeof stallngas the deepenng
housing
weakens
demandlorconstruction
equrpmenl,
slLimp
nole the
furnilureand appliancesBul on a moreposiUve
weakerdollaris boostingexportsand he p ng companes

thatdo mlch of ther busin
Theseilguresmake it ciear why the Fed clt nterest
Fed
ratesby a quarterpoint ast week. n theirstatement,
porcy md.€rssard rl-dl rl-eouloo o ho p, or o n) (
unce ain,evenafterso d growlhast qua.ler.Theyadded
lhal upsideriskslo lnialionroughlybalancethedownsrde
riskslo grcwlh.
Finda word in the text that means:
1 (ftvewotds)rcat1yslopping n its progress
beiore
2 perodwhensometh
ng is muchesssuccessiulthan
: hepi.gsorel' nq ro n.'pd"
4 (shortfam)Cefita Bankol the UsA
5 approximately
topi.s.
seepage146lorsomediscu55ion

srengrn

oamaqe

1.3 Usephrasesfrom 1.2to completethe sentenceg
below.The phrasesare not in order.
w qrcw { q]]:njlql l|ert'rfg rsnsrnq
1 Theeconomy
2 conslmersandbusnesseg
cantakeon too muchdebtif
re e 5 easJaccess

to
bul alsohrgher
3 Econom
c qrowthbr ngsmateriacomforts,
prcesfor the bascnecessties
of ife n oiherwords,your
qoesuP,bui sodoesYolr
costot vinq
4 Econom
esqo throlghcycl,"s
of
5 The nraintool avail.bleto a centra Bank s ts abilityto s€t
O \ e ' - h e o , r gr p r

e , . r d n q A, d r F .d p p p d
' or lr€
or rne economy.

' fAi ;;t
tr

d?

;t \lir tht !,nan|

T h eb u s i n e sw
s orld

7

History shows thal there is a business cyde that repeats again and agai4 although of .oue tlle detaiis vary
each time. Look at the diagram below. The outer circle is the €ycle of e€onomic expmion md conbaction.
The next circle icide shows some s€€torsof fte economy that tend to do wel at particular tims duing this cyde.
The cnde inside that shows inter€st rates and infiation. Finalv, the imer cinl€ shows the sidk market cvcle.

Grotvth
Let's go roud the diagram,starting at twelve otlock. This
point marksthe end of w€aknessin the €conomyand the
early siSnsof growth. Wlat hascausedthesegr€€nshoots?
Theclue is interestrater which bottomedout around
eleveno'€lock.lj)w interestratesmeancheapborrowhg for
individuals md compani$. Amongst the quickests€ctorsto
resPondm consmer discr€tionary(eg restaurants,leisure,
travel) hd technology.
On€ethereare€arly siSnsof growth, tnnsportation picks up
(moregoodsarebeing shipped),and indu€try spendsmorc
on capital goods(egmchinery). During this pedod,infiation
startsto rise, and sobondssuffei Bondspay a 6xed rate of
interesito their bondholde$, and the value of this intelestis
erodedover time as inflation go€sup-

The peak of the Gycle
A1l good things mEt come io m end. rs six o'dock on
the diagram- By now inflation hd bmme a prcblm, md
Cmrral Banls have nis€d inteBt rates to deal with it. That
means that credii is tighL md bonowing is expsrsive. The

stock market rccognizes that tl|€ 6d is omin& ard perts
just before the final p€ak in the e(al,dr_r. Inr€sto.s rsw

(eg
switch to more d€fensive stocls lik€ drglffi.riples
food, household products) and utiliti.<

Corltra(tion
Now ils seven o'dock arld w€'rr {tkd
d. Fin
of
conhaction. Stock Mkets are A|L? Ltcrd
8-Ls
se€ the danger md e low€rit iH
rG
b -'m8e
spending md avoid a r€.tsin- Bd
q'd
Frtudy
to the drop in rat6, md th.{.as'hlh.
to
f;l.
safety' etr(t 6 inv€srors rFirD-.b
-&-

The bottom of the q*
Evmtuall, firffiials stdt b .--fq
bonowin& and ttF th. !d_'-G
about six to niE r..dE i J-{-.F
economy. Just like 4 dE qrJ|tqt,tE|ct
ro knowthara hmirahl__,_y
eonomy is $ni4g b i----l

rtqte

nore
a bottom
ir d€ real
s€€ms
Now the
rd fte whole


2 THEAUSINESSCYCLE

Exercises
2.1 Putthe words in italicsin order 1-4.
a Theeconomy,
nart ng at twev€ o clorkon th€
diagram,
rhows ..
contraction I a downturn
an upturn
) expansion
b Thenock market,staaring
at eleveno'cockon the
dragrdm,..
perks
battoms
turnsdawn
2.2 MatcheachsectoroI th€ economyl-'10 with an
indurtry group a-i.
1 Basicrnaterid

s
6 Enerqy
3 Cornmerc
al serurc€s
4 Consurner
d scretonary
5 Consurner
stdpes

8 Technology
10 Ut (res

a holes,restauranis
c
d
€
f
9
h
i
j

empoymenl
agences,
audtnq
rnachinery,
eqLiprnent
goods,
household
foodretailnq

insurance
banking,
software,
rommuncatonsequpr.ent
gasprodu(ton
oilprodlction,
electrcty,
waier
air nes,ogsllcs

2.3 Underlin€the corr€ctwords in italics.Checkany
unknownwords in a dictionary.Someideasbelow are
alsoaovered
in unit 1.
1 Thecons!merdrscretionary
slartsto
sectoroi theeconomy
recover
wheninterestraresarch/gh/iow, andlustbelore
picksup I tuns down
the generaeconomy
2 Inve9tors
iavoLrr
theconsumer
stapessectoral lhe
grcwth
beginning
end
/
al lle

cycle,lun asthe markeisare
pickingup / tuntng down
lf a qovernment
it
or cornpany
wanlsto borrownroney,
canits€ a band I an obllgatronlnvestorsre.eivea F/ied/
vatiable,aleol nlerestovera f xedperiodof time.and lhen
gettheirorg nalinvenment
backat theend
A risen nterestratesrnakes
borrcwng.heaperlmore
expensive.Ihi\
caols/ stlnulaterihe economy.
CentraBankslower nterestratesif iheyth nk the economy
s ikey ro gtow/contrcct,andwil aciaqgrcssvey
llhey
thinkihere s a danqerof a baom/ rccessian
Stockmarketsfend to arfic,bate/ mavein linewith / react
ro cnanges
InrnereaLeconomy
nterestratestendto bottomout before/ afterboththe
nock markets
andthe realeconomy
A risng marketis calleda bearlbul/market.Peopewho
th nk thai d paarcular
mark€tk qoingto risen the lutlre
arcdescribed
ar beingbulrsh/ bull/ke on that market

2.4 Compl€te the text about dealing with th€ business
cyclewith the phrasesin the box.
govetnnent debt labaur natket
ne\,r'bonawing
poh.y n,akeljj side-effects tax cuts

What.ancentralbanke6andgovernment
'
do?can theyprevent
a contractonfromturnng inloa rccesson?
Whattools
areavaabe io them?Thefollowingihreearethe most
Interertrate adjustments
Thesvonqest
economy
andfastesttoo n a weakening
s the cenvalBanks'abrty io cut rnteresl
rates
Forcompan
esand ndvidu.s with existnq bank
repayments
oans,
arered!ced,lor others,
'
€ss
oecomes
qlrarteFpornts
expen5veMostCentraBanksdropratesby
ralesst takestwo
or,at cruoa t mes,half-ponts Lowerinq

or threeqlarlersto benefitan economy,
andit doesalso
Thenegatrve
arethat t weakensa ndtion's
consequenc$
(urren.y.andthatanyqrowthi t c a u s em
s a yb e i n f l a t o n a r y
Economic
stimulus
A naiionalgovernment
canchooseto spendmon€/
usudy moneyrt mun borrow on all sorisoJprcjectsn
orderto nimulateihe economyThs puismoneybackinto
peop€'spockets
to
so thattheycanbly goodsandservces
o
boostlhe eco.on/
-fhe
areanotherwayoi achevng the sarneeffect. problem
leadlo hiqh evesof
arises
whentheser.eagures
y thai
Eventua
have
debtwill
to be repard
Regulatoryreforms
A counlrycanimplement

reforrns
to the aw in ofderio
groMh.Theseincludemeanrres
stimulate
to enhance
competition.
to liberali?e
the
siada newbu5ness,€tc.
Seepage146for somediscussion
topics.


lnternational trade
De.iding to export
t\try export? The two mosi important reasotr are likely to be:
1 To increase sales and revenue. Expoiting i{il allow you
In ,lp
u J e F u . p d c d p di' h . n , r e a +
"dunliBeof"nl
production,reducemit cosisilrough economiesof.cale
and increase profits if thin8s go well.
,r To diversify. Relying on jrst yotrr own domeshc market is
risklaSelllngto other countriesallows you to splcad the
Bui befoie decidingto export thereis a lot of !6earch to be
done on the foreign market:
/, Backglound:economi. siiuation,poltical stabiliry
a Markei sizeand likely product demand.
'f Competiiionrsimilar productsalreadyin the market.
,, Disiribution channels:agents(who act on your behau and

receivea commission/but don'i buy goodson their own
account),or distribuiors (who actuallypulchasctoods
from you for resale,likea wholesaler).
,, Promoiionalmaterial:salesand support matcrial needed
in the loc.l lanSuage.
1,,customcrservice:Proceduresforenquiries,comPlaints,
w.rrrarltyclaims,servicing,€tc.
,, Lcgal rcquircments:iechnical,safetyand cnvironmental

The first step in €xporting is likely io inlolve an iniermediary
(eg lffal agent,distributor).They will have local knowledge
and contacts in the unfamiliar market- If ihings go w€ll,
the exporter may then decide io establish its own presmce
in the foreiSn market such as settinB up a sales office and
wareholse.This allows diiect contactwith cuslom€rs,faster
d e l , r e r ya n d r a r e c o n E o n
l r r h c I n c r lm i - 1 p , .
Two key issuesfor an exporterare a)the method ofpaymeni
seethe tablebelow and b) who pays for transportation.
This latier issueis coveredin the contiactby specltyingthe
relevantlncotem (IntemationalCommer.ial Term)for iliat
particllar consiSnment(= quantity of goodsshippcd at the

Other options
Exporiing is one way to selLyour goodsinto a foreign narket,
b r . rt h e r ca r eo t h e ro p l i o n s . rr i l r b l e r o L r r 8 ecr o m f . _ . rr
/j, Ioint venhtre:two companies(a foreign companyancl
a localpartner)work iogetherbrt keep their own lcgal
r ForeignDirect Invesiment(FDl): a busin€sssetsLrp
operationsin a foreign couniry,or acquires(= buys).

'oca' comPany.
r Licensing:. companysellsthe right to usc a patented
manufacturingprocess,orsomecommercialerperiise,
or a irad€mark,in exchangefor. feeor a royalty.One
particularcaseof this is franchising.

L€tte.of credit(UC)
paymentto
one bankguarantees

(Pre-payment) anotherbank.Theirnpo er
Cash-in-advance
Pays

Theimpoderpay$th€ invoiceln
advance,beforeshipment.
Whe.e
ih6y onlypaya part in advance,it's
calleda 'downpayment'.

whenlhe exporlerpresenlscenain
listeddocumenlsto theirbank.
Typicaldocumenlsneededare:
documenls{eg bill
lransponation
documenis,
of lading),insurance
documenls(eg invoice).
commercial

oderaccouni
Thesuppliefshipslhe goods,and
the importerpayslaler,according
to lhe termsof lhe contraci.Thisis
morersky,and is onlyusediflhe
lmponerhasestablisfred
a qood
credlthislory.

LO

Documentary
collection
A cheapervaiationof an L/C.The
lwo banksmakeno guarantees,
but simplyhandlethe exchangeoi

Consignment
Durc..has€
Theimporterreceiveslhe goods
and holdslhemin stock,but only
pays lor them afterihey have been
soldto the end users.


TRADE
3 INTERNATIONAL

Exercises
3.1 Find a word in the text opposite that matches each

definition below. The words appear in order
1 fthreeworc&)spreadng cons ov€f d ldrgernumberoi
un ts, and ihereforeproducng th ngs moreche:ply

3.4 completethe text about Incotermswith the words in
the box. Noticethe glossaryat the bottom.
./€arrr.e
customr .iacunentation freight
ttu.k
handling laading ptentses temlnal ttansi

of you
2 (threewords)instead
of you,or dsa representatve
1
3 wrttenpromise
thata company
w reparsomethnglf
4 b q bu d ngwherelargeamounts
ol qoods
arenored
s sp€calrks or knowledge
6 nameor designon d productthatshowsrts m.de by d
partcudr compdny
7 non€ypdd ior profess
ona setuce5,or a one'tim€amount
you'r€
8 moneypaidto sorn€one
whosedeasor invenlrons
U ,n g

Now do the samefor th€ wordsin'Financing
internationaltrade' opposite(aleocalleda 'b ')
reqlestnq paynrent
9 document
1A fthreewotds) n givn9 d€ta! of goodsthata shrp.etc|s
carryng,. so actEasa conlractto tr.nsportlhosegoods
3.2 Make phrasesby matching an it€m from each

2 relyon
3 spredd

-

c m.rket
lun yourdom€et
behali
on somebodys
capac
1y
of anyunderured
thenik

5 estab sh a presence

to the termsof the contra.l

7 h a n de i h e e x . h a n q e
8 pay accordnq

lega dentiy

3.3 Studythe methodsof paymentshown in the box
opposite.Thencompletethe diagramby writing the five
methodson the horizontalaxis.

What are ln(oterms?
lncotermt
statethe responsiblties
of buyerandseler n
relaton
to marnetranspodatonnotjusttheshrpping
cosls,but all otherassociated
costsslch as nsurance,
'
duties,
andqrcund
The buyerpaysfor the seacrossing
A prcequotedEXWiswherethe te ler makesthe goods
avail.ble.l
thelrownr
, anolne
billtyfor a
buyercollecls
themthere.Thebuyerhasrespons
costsandrsksfromthal po nt onwards.
lhe othertranspori
lf th€prceisFAS,lhen
thecostof
theseer a socovers
p o ( o l s hp m e n t a

. n d o f ! n l o a dn g t h e . o n t an € 6 o n t ot h e

'roo ne ouyerpaysror shrpp usa the.ons fromthatpo nt.

FOBs alrnostthesame,exceptherethesellerpaysfor
oadrnq
ontotheshrp,nottheb!ye.
Thesellerpayslor the seacrossing

N o { + F g o o d _a ' " 0 1 _ l - F . l r p i 1 " p r p a sb e " - ' " 1
so that the se er also paysthe '
(= goodsand the ryslemof movrngtheseqoodt cons,
then thererre f!rlher hcoterrnsto be used
Wrth CFRthe seler paysthe lreght costsand handlesthe
(= paperwork),bLrtdoes
expon 7
pay
not
lhe nsuranc€wh le the goodsare n
s
a t s e a .W i h C F i h e s e l e rp a y s
nsurancers well. 8ut in both casesthe r responsbi ty
endsat the port ol denination,wh le the goodsarc st on
board.The buyerhas responsbilty for unloadnq iees, oca
noraqe at a e
, the mpo( cen.e,
duti€sand tax€s,the custombroker'sfeesand onward
de iveryto th€ buyer'sown premses.
In rhe final c.se, DDq it! lhe sellerwho paystor
everything,and who also hdsto handledny clstoms

'o
probems.The buyerhas no
.dditonalcosts or isks at all but of (oLrrsethe pnce
quoted in the contfactw I reflectthis!

RISK

EXW Exworks
tAs: kee A ongsde ship

I Y P E SO F F I N A N C I N G

C F RC o n & F € g h t
. eF r e g h t
C F r C o n , l n s ! r a n&
DDP Delivered
DutyPad

S e ep a g €1 4 6J o r s o m e d i s c u s s i o tno p i c s .
The businessworld

I


Setting up and growing a business
Initial idea
Someonehas an idea for a newbusiness(a'stait up').
Maybe they spoi a 8ap in the markeL or maybe they
have an idea thai is simllar to existingoffers,but wiih a
competitiveedge.Pot€niialsourcesof financefor ihis new

businessinclude sclf'fuding, backerssuchas tsiendsand
family trenbers, a bant loan, and a venfurecnpital firm.
A bank will want somesort of securityin casethe loan is
notrepaid, and sometimesihe person'sholse is offered
as.ollateral.The fourth option, venfurecapital (VC),is
aiiractiveforbusincsscs$'jth a high profit potentialin the
medium term,but high start'up costs.A VC company $'ill
offer funds and take on the risk of thebusinessfailing, but
in exchangewillwant a lalge number ofshares.They aim
to sell theselater,wlren ihc businessgoespublic

TENREASONS
WHYA NEWBUSINESS
CANFAII
Cause:startjnga business Solution:Taketime
with a goodidea.some
to research
the market
tho.ouqhy beforeyoustart
entnusiasmbut no serous tradng

Cause:buyingtoo rnuch
paytng
srocK,
cusromers
l.te or not at a I, suppliers
needng to be paidon t me

Solution:prodlcereaistc
cashflow forecasts

andpay
strct atlentonto budqets

Cause:Sticking
with your
own onginalideasfor too
long

Solution:Activey seekthe
MewS
0l cLrStorneTs,
andac1
on whattheysay

- a
Cause:f. seeconomy
cheapleasein thewrong
neighbourhood

Solution:remember
that
accessib
lityfor cusiomers
s

When financingis in placc,the businessis registeredas a
lcgil entity: sole hader pa.tnership,limited compant etc.

Early months and growth phase
Now thc businesscan start trading.The risk of failu.c

nr thc first iwo yearsis very high. Oftcn thc problem
isn't salcs,bui cashflow: ihc cornpanyhas to wait for its
invoiccsio be paid, and mcanwhilethc debtsare piling
up. Thc bank will onl), extend its linc of credit up to a
But hop€fully the businessachicvcsa critjcalmassot
custom€rs,and esiablishesitselfin the markerplace.lt
entGs a gfowth phase.This early growth tendsto be
organic tlrnover increases,
the companyemploysmore
' l d ( v c o p s . r. u p p l J n e t w o r l .. r c . I h e m d l o r i r yo ,
"rdff.
n r r l l . u m p r n r c sr ! : t c o n l n u ei n r l - F w d v - g r o w i r Bo r
shrinking ye.r by year dependingon their managerial
skills and generalmarket condihons.

Sellihg the business
However,thereare olhe. possibiliiies.The founder of
l h e b u - i n c \ \m o ! d e c i d el o - c l l t h eb u \ h ' s \ d i d g o i n g
concern.They might sell to a competiior or io a company
wantnrg to expandinto that market.The buyershele
nrc lookirg to Srow ihJolgh a straiegyofacquisitions
/- at
Cauierthinkingthata good Solution:b€ creative,
prodlctw ll sellitself
y revrew
constant
the
plan
marketing

Cause:beingtoo ambitious Solution;be realistic

yo!r seed
Cause:spending

Solution:p annnq, keeping

Cause:behaviour
of some

Soiution:tra ninq,
monronnq,comp.nycl]rure

Cause:assuming
thatyou
irve customer
loydlry

solution: watch
.oroet Lorscose)

Cause:compacency
afl€r
nitialsuccess,
lackof

Solution:be flexble,
recognLze
oppoftuntres,

tPo
Anoiher possjbility is ilut the fouders may decideio
go ptrblic (= floaillisl on ihe stocketchange).Here,
they sell their onginal privately-held shares at an IPO
(initial public offering). Thii brings in a huge amount of
money, some gojng dilectly to the owne.s as rerrard for
their hard work, the rest going back into the business as

72


4 SETTINGUP AND GROWINGA 9U5INEsS

Exercises
4.I Finda word in the t€xt oppositethat matche5each
definitionbelow.Thewords app€arin order.
I smaladvantage...............
y by providnq money
2 peoplewho slrpporta pan, especia
prcpertyor moneythatyoupromseto g ve someonef you
(farnal:tuvawards)busness
that s a singleunitiroma
lega'o'd..of ingpo' ol vew
g vingdetailsof products
thatsorneone
docLrments
payment
for th€m
hasbought,andrequening

to manage
6 (phrcsalverb)incrf.asnq in a way that is difficr.rlt
7 Income,revenue
8 rrhr"" nord5rd srccess'ulblsirei)
a corpd €s I dl hole beenboLghl by o her co'npanip5

Now do the samefor the words in
new businesr10 carefuly
andcompletely
11 (infomal;ph?salverb)contin!ng to do somethinq
w thoutchangingi
that ischeapbut couldhavebad
12 (twowords)eo.r.elhtng
Tesu
t5
13 smalareaol a town
14 (f,^/owads) morcy rhat is usedto slart a new busrness
etc
15 beng faithfultoa product/ brand/ company,
andconfident,
sothatyoustoptryrng
I 6 beingioo satislied
4-2 Make phrase5by matchingan item trom each
a gapin the rnarket
2 wait
3 grow

for invoices
to be p. d

5 spot
6 takeon

tailing
the riskof the business
or snnnKyearDyyear

7
8
9
10
rl
12

brng n
enter
extend
9o
grow
se

asa gorngconcern
the busrnesr
a hugeamountof money
a growthpnase
y or by acquisitrons
organLca

4.3 Fill in €a

cut €stmare expang
ide
spend take

pefiorn

]

1 lf yougrowa business
too qucklyandtdkeon too m! c h
tr:lrxP;rro
rlsk,you
you
lf yousellgoods
at a ow€rpfcethanyourcompettors,
yourcompetitors.
or
li youdo.'t makear muchmoneyasexpected,
yo- rele5s
succ"rs'u1vo-' ob lrdr e pF(rod.ycgoespan anothern termsof sales,profiis,
lf yourconrpany
mdr\€l-rdre.etc.rl"pnyoJ
you
or morethanyouplanned,
lf youusetoo muchrnoney,
by m n.k€),
li youaska c ent for too litte money(Lisually
you
lnera.

decslon,you
authortyto relectsornebodys
7 lf youuseyoLrr
than
or essimportant
ng issmaler
8 lf youthinkthatsomelh
rt.
t reallys, you
4.4 Readthe text about fran.hising,then answerthe

lltould voLhhelo srarla newbLs'r€ss,perfapslrr 19
Y U a smattrera'oJrler?Frarchsing s an oovioLsopl 01.
'lfanchsor')
Howdoes t work?The parenlcompany(lhe
ollersyou (lhe lranchisoe)ts trademarkprcduclsand
businessmethodsYoupay theman initia fee to usothe
ot lhe lurnoveras we .
name,andthenpaya percentage
idsntryslandards
lo
lulfillcerlain
corporate
Youwlllneed
lts hald
suchas thoserelalng io lurnilureor stallunlforms.
yo!?e
buy
ng
a w€I

are firany:
work,but the advanlages
is
knowobrandandthe risk minimzed.
po nt of viewthe benellsarec ear
Flomthefranchisor's
Theycan leaveihe day{o-dayfiJnningoi the buslnessto
you,whilegeliinga shareoi yourturnover
Finda word from th€ text that means:
wherea prcducts sold
1 anypLace
(orto a professiona
p€rson
2 moneyyoupayto do something
for theirwork)
3 do 5on'elfnq p'on'"d: Fd'l
4 levelso' quahyo' a,l_eveme_
.
5 operating
andmanagng .... .
topic..
Seepage146for somediscussion


@

ao-o.t y types and corporategovernance

Company types
ln 1aw,thereare various types ofbusinessentiry.For each

one there are different legal adangements to register the
conpmy, different requirements for presenting accomts, eic.
The main business t'?es are:
Sole trader (UK) / Sole plopdetoGhip (US)
A singlepelson owns and operatesa business-Legally,
the bushesshas no separateexistencefrom its owner
(proprieto!).This meansthat.ll the debtsof thebrsinessare
ihc debts of the owner
Partnership(UK and US)
Two or morcpcoptc s'ork togetherand sharethc risks and
profits. Justlikc a solc proplietor the partners.rc fully liible
f(' (= responsiblcfor) an)' debis the businesshas.This is
.efefed to in law as lurlimited iiability'.
Cofrpany ruS and UK) / corporation (US)
Thcb!snless is a lcgal cniity ihat is separatefrom its or'ners
thc sha.choldcrs.Thc osne$ are not fully liablc for the
debtsof the busincss.lnstcad,then liability (= potcntialrisk)
is rcstrictedb thcjr sharecapital.This is thc amount of cash
ihat they havecontribuicd to ihe compan}l This,s rcfcred k)
nrl.w .s'limitcd liability'.
Theredr€ lwo manl rypesofcompanies:
' l'rivate company:thc sharcs(ArnE sto.ks) arc'p.n atc
in thc sensethat thcy cannotbe bought by mcmbersoi
thc public. Thc vast trajority ofcompaniesfall into this
catcgory.Thcy'rc oftcn smallercompanies,with sharcs
hcld by a fei{ businessassociates
or family nembe.s.
'i Public.omp.ny: the sha$s are openl!' b.1dedon a public
stockexchangc.Thcsearc thc large,often wcll-known
businesses.

Thc word 'public' should not bc confDscdwith
'siate{wned'. A'sialc-owned cntcrprisc'(SOE)is o$'ned
by the government.

The Board
Public companiesare.ontrollcd by a board ot directors('the
Board'),eleciedby the shareholders.
Noi allBoards are tully
independent,bui in generaliheir rolc is to:
,| Setlong term straiegy.
,r Appoint a ChiefExe.utive Officer (CEO)and other
membersof the seniormanagemeniteam kJ run the
.ompany dair to day.
't Ask questjonsabout any short- or medium-term straiegy
developedby the CEO, and then suppori it oncethey have
tl)

Overseeihe preparationof the finmcial statements.
Appointand ensurcihe independenceof the company's

t Overseeand managerisk.
,r' Set an amual dn'idend.
Who choosesthe Board? In theory',jt's the shareholders.
At the Amual GeneralMeeting (AmE Annual Meetingof
Stocholders) the shareholderscan questionBoardmembers,
14

vote io accept or reject the dividend, vote on replacements
for ieiinng Boad members, etc. But, in piaciice, the situahon
may be different. In pdticular mosi shares are held by la€e

institutions, and these may simply sell their stake if they
aren t happr instead of qving to chdgc ihe Board.
In reaiity many Board members arc chosen by the CEO
and the shareholdeG simply approve ihes€ members.

Corporate governance
T h i " w h o l eN \ u cu t l h e r o l managersare responsibleb shareholders,
and how ihe
companyis run, is refe.redb as'coryorategolemance'.
Traditionally,differentregionsof the world havehad
differentmodelsof corporategovemance.

s:'., :F.$.it

'

Anglo"Am€ncndod€l:epafarionol ow.e6hlp ( e
prioritygiventothe
shareholdet)
andconvol(iemanaq€u);
inter€s$o1sh:reho
der
I

tlopcai / rapai6. nodel: similar1othe Afglo-Ameri6n
model,bur a greaterrecoqnnon otthe intere* oi orher
elakeholdeuruch
aremployees,
5upplie6,cunomeu,enden

(es bankt, andthe .ommunity.

I

EaetArian/ tarin nodel: family.owned
companie5
wilh no
i^deoendenl
Boad or outiidesharehold€u.

No*adays this traditional pattern is breaking down, and
the siiuation is mor. mixed. Howeeer, the followmg basic
piinciples of corporale govemance are widely acc.ptedl
, ' Respeci for ihe righis of shareholders.
I A clear definjhon of the roles and responsibilities of Board
r' Integrity and ethical bchaviour
Disclosuie (= givhS tull informalion)

and iransparency.


GOVERNANCE
6 COMPANYTYPESAND CONPORATE

Exercises
5.1 Underlineth€ (orr€rt wods in italics.
1 Moneythata personor compdny
owesis debt/ /abiltty
whenusedin the pluralandin a
Th€worddebts/ /rabtlites,

- but it canalsohave
formalcontext.hasthe samemeaninq
a widermeanng oi 'egal responrbiltiei.
2 fhe wotdowner/ prcptietormeans
thatyoulegallyhave
som€thing anything.
ThewotdownerI propnetarmeans
thatyouhavea busness(andis morcfo.ma).
3 f youandyourbusnesspartners
all haveth€samerisks
at th€ sametime,thenyoudrrde/sharethe rsks.ll you
partsor ditfercntcategor
es,
separate
the isks intosmaller
thenyoud/v;de
/ sharethem(= spit them).
4 A sharchaldett stakehalder/ 5toctho/d€rs someonewho
I
in Bit sh EfglishA shareholdet
ownspaftof a br.rsiness,
/ stockhalder
s the same,in Amerca.Engsh.
stakehalder
A shareholder/ stakeholder/ sfockho/deris anyonewho has
an interestn the success
of a plan,lyslemor oaganzaton.
in a company,
theneveryyearyou
5 f yoLr're

a shareholder
tecevean incane/ a profit/a d dend pad out oi the
incane / prcfiE / di\/idends.
company's
5.2 Readthe definitionbelow and tind the word in the
text. (lt appearstwice.)
for anyinstitution,
company,
fforma,'ageneralierm
parinersh
p, governm€nt
agency,
or anyotherorqanrzanon
unit.
whchexistsn lawaraseparate
andcompete
5.3 Fill in the miising letters,
y
thenyolJ'rci
1 f you'recompeteyliablefor something,
iabe,
in l.w thenyou'rele lly
2 f youle lablefor something
liable.
thenyoure
3 lf youas.n ndvidua.reabelor something,
per allylable.
|ally
4 lf youmaybe abe for somethng,thenyou'repot
llable.

5 lf youkeepshares
for . longt me,thenyouh
them.
6 f yo! buyandseI shares,
thenyouir
them

Now do the samefor th€ tcorporategovernance'section.
5 th€ qualityof belnghonestandhavng highmoralnanddds
6 doingthlngsln a waythatallowsotherpeop€to know
exactly
whatyou'redoi'rg
5.5 Makeword partnershipsby matchingone item from
to complete
ea(h box. Thenusethe word partnerships
delatletl legal ltnted
liabllity

non prcfit
aryantzation

namecantellyouabout
TheletteEthatfolow a cornpany
ha5'Lld.fter its name
In the UK,a pivatecompany
(because
of itsowne6)and
oi the '
hasPLC(standing
for Pubc Limited

a publiccompany
Company).
In theU5.'1.(' {L.litedL,ab,'ty
Conpany)
and Co'o'a'e
equivalents
to'Lrd'and 'PLC',altholghthe
app.oximate
?
governing
formationrs
company
diffefentin the two co!ntri€s.
TheletteB'lnc'(meanng 'rncorporated')are
alsousedn
the lJS,aodtheycovera verybroadrangeof ofganzatons.
Theycanreferto anyI
rhar s seoarate
fromils ownerssuchasa privatecompany,
a public
c o m p a nay ,
.o osPorcl-D
5.6 CovereveMhing on thesetwo pageswith a pie.e of
paper.Write down lhe fullform oI thes€abbreviations:
CEO,AGM, PLC,LLC.
see page146for somediscussion
topics.

5.4 Finda word in The Board'sectionoppositethat
matcheseachdefinitionbelow

1 waichthe pfoqress
of sqmething
io makesurcii'sdone
correcryt
supervEe
.......
2 exiernaf rmsthatofficlaly examnethe financalrccods
of a company
to seeihat iheytetrueandcorrect
p.ysto
3 an amountof the profis thatthe company
4 moneyinv€sted
in a busness

dlu k
1tu6 oI r dt 6 ot lhfu;rt?"

The businessworld

1:


Global issuesfor the 21st (entury
Geopoliticsand the world economy
lvhat big-pictureissuesare likel\'to dotrlnate
geopoliiicsdrl the rLorld econotrv in th€ coming
decadcs?Here are somesuggestionsl
The Browth of the BRICS
T h " q L ;{ o r \ o f t h . 2 l . r , F . r . f l . r h c r r ^ \ ' h '
Brazil,llussia,lndia and China (plus the Middle East).

This is ccrtain io tr.nslaie nrto lncreasedgeopolitical
tuflucnccfor ihesecountries
The decline of the dollar
One ifrp.ct of thc prcrious trend is thdt the dollar
will krseits statusns ihc l\'orld's r€serle curr.nc\:
Cent'!l brnks rvill hold fci{cr dollars,.nd oil s ill
be priced in i rangc of currcn.ics.But rLhai clsc sill
h.ppen h the c!(cncv arca?Willa.onmon Asian or
Lath Ame.i(.n c!rrcncv.tncrge? And what atroui ih.
nrternalconflio
c tv c r t h c . u r o - s h o r i d i i b e s t r o n gt o
fighi nlflitior or {'cak to heh exporters?
(;krhl !!armnlg is hippc,rint Ho('.!cr, any srlulxu
l " r l r , l , l l . r t r h rf r " r ( . . , . i . i r . , r . . tr . ., { r ' ' r ..
is likcly i(r trc rcslsidrl.DeYck,pnlgcouni.icsc.nl
rccus. lhc Ll.!ck)pcd nitions of h!poc,is! $cstc.n
c o u n i r i c sh i ! c i l r c i d ! b d c ni h r o u t h t h e i , i i d u s b i i l
f h a s ci n d D o r ! h . \ . l h d l u r u r ! o f t h i n k n l gn l r d u t
i'stnin.ble g()wlh. Dclolopnlg naltun! Llont haro

' , l + , ' ^ , p ' ' , , r i ' - : , { r ' r ! p , 1 , \ \ .\ s " { .
lh.r.'s just ndt cnough lefi nr thc gnD.l. 5o supplv js
s]finlitlg. lso, dereloping nationsarc hungry id oil
- ld tr.nspo.t, nldusq, etc.So dcmand is risirrg.hrt
logcthcrfilling supplv an.l rising dcnrandaDd lou
gcl onc thing: much higher pricesfor the i.rcsccablc
Energy se.lrity and alternativeenerSy
Somccountdcsh.!e a lot ofenergy re$urces, others
don't. And if you don't, you hive a nrajo geopoliticaI
problen. li's calleddependenc\.Put this issue

bgether s'ith pcak oil, and it points in one dnection:
aliematile cncrg\. But sone g.een acii\ists are
unre.listi. about this solar Nind, tidal, ei. can onh
nreeta lraction ofthe world's energl'needs.The one
technologythat might make a differenceisnuclear.
And ihat, of course,is.onhoversial.

Management
andbusiness

il.r3!iri ,!.i: ne<.!'.'r'rrh.idr,cJr tfril.l..1jLir;. th:r i.alj
I r e i : , r . !i < r u ? s . i i r i :2 : i r . : i i r n , l ? e . : i . . , r . rj .e r L i . .h . 1 o , , 1
Forme,branding
anddesigni€ the keyiss!es.
Customers
caneasityfind goodquatityandvalue-formoney attour
youneedmorethanthis,
compeiitouoff€rthis. Tosutujve,
yo! n€€dbrandirq.
Without
a strorqbrard,youhaveno
customer
toyattyard no pncingpower.Ard tinkedto brandirq
is design- cusiomers
witt piy for desiqn.Thesearethe major
batttefietds
in moderrburinesr,not costor quatjty.

1r ourorganizalion,
findinganddevetoping

tatentis going
to bea majorissue.
There's
a dectinjng
birthnie,ardtlre
incrcased
mobitityof tabourmeans
that workers
canchoose
wherctheyworkandfor whom.Sotalentis goingio be in
shortsuppLyAndthats paticutarLy
truefor knowtedge
workers
andcreatives.
Wewitl needto find waysto motivat€
thernand
retairth€minside
ourorsanization.

In the modern
workptace,
manaqinq
diversityir goirg to
increasinqly
beconre
comptex.
W€vegatissresof gender,
ethnjcity
ard dge.Wetry to make
equat

opportLrities
work,
butwehaven't
doneaswettaswe'dtike.Andnoww€have
newprcbtems
oi muttjc!tturat
managemert
across
nalionat
bo.ders.
Imaqine
whenteamnemb€rs
lhe probtems
from
different
cutturatbackqrounds
hotdvjduatm€etings
on the
webwithout
th€charce
to qetto kfoweachotherin person.

Theissue
thaiwelatkaboutmoreard morethesedaysjs CSR
- corporatesocjatresponsibility.
I'm talkingaboutfair trade,
theenvjronmertat
impa.tof business,
theeffecton tocat
.o-1r ri'r'es. rs ainab

e devetoplear.
tdbo..pra-riLe'
, d
stuff tikeihat. Campaiqns
by activistscanaffectyourprofits
anddestroyyourbrand-

In nra'ry
industnes
a majorissueis the threatcausedby the
Internet.Basicatty,
if it canbe digitized,it canbe pilated.
lhe musicdndsoftware
industries
havealreadybeerhit badty
by this,the fitmindustryis nextandpubLishirg
wittfottow.

ShortagesoI otherresourcesand cofrnodities
The bad nerls continucs.As ryell as a shotage or
energy,{,e're also short of water (in China,Southem
Europeand the MiddLcEast).And as h,ing standards
rise, $Ie'11
find that manv agricultural.ommodites
(eg ('heat, com, neat) are jr short supplv as well.

16

GeneratLy
speakirg,qtoba[zation

hasbeengoodfor bLsi]ress.
But nowthereis a backtash
againstgtobalization
arnongst
the pubLicIhis is creatjngpotitjcatpressures
for protectionisrn
aid for tocatsourcing
to protectjobs.ForLsthai means
reduced
access
to worLdmarkets
andhighercosts.


6 GLOBALISSUESFORTHE21STCENTT,RY

Exercises
5.1 Make phrasesby matchingan item from each
I geopotrca- ------\
2 .limare
3 globa

\

warming
i.fhren.e
growth
change

5 p€ak

6 green
8 livng

5.4 Fillin the gapswith a differentform ofthe worcl
in brackets.Th€ new form may be a noun (singularor
plural),verb or adjedive.Somewords are not in th€ text.
(warm)afdthe
1 Glob.
.'r!l!ll
/.1..r,..n1r rh6 0-,'..rrent

ore

(threadthe planet
(.ctive)dndotherpressure
2 Green
groLp)d e be(onig inr'edr19y
i , n { r , , o n . o \ , n r r o r 4 r m i nn . r h 4

banlef€ld

9 pricing
10 decning
1l knowledge
6.2 completethe beginningot ea
(environment)
polici€sof argecompanies.
3 G e n ec
(controve6y),but many

developingnalionr see ii ar the on y way to ensure
(grow)in agricultura
continuing
lpfoouce)

4 Ther governmentS
isoneot rapid

(-"conomy)
strateqy
( n d ! s t r a l i z €T) .h i sh a s

supply

2 behungry
5.5 Completethe text about tair tradewith the words in
the box.

3 be in shoft
4 havea commonAsian
5 prceo n

access gendet
7 in the coming
8 ior ihe foreseeable
t hold

averyrcductQn pavefty

prentun

a v nuarmeerng

6.3 tind a word trom the section'Managementand
business'oooositethat matchesthe detinitionsbelow.
Thewords appearin order.
(orquantty)in
1 goodquality
reatonto theprce
2 b e , _ g' a l h l - | . a { a y s 9 r . ' g , L p p o r l
3 p e o p l ew h o l s e t h e i ri m a gn a t o n o r s k i s t o m a k et h i n g s
(numanresourcetkeepsomeone
5 the factof belngeithermaleor lemale
6 caoabeof contnulnofor a onoiirneatthe sarnelevel
7 a stronq,neqative
reactonto somethinq
thatwa9prevbusly
popuar
8 qettinga productor component
fromsomewhere

Fairtradersan organr?ed
5ociamovement
whichpromotes
I
lor labolr,sociapolicy,
environmentali5m
andsu5tainable
development.
Key':

ol faiftradeare:
a Creating
opportuntiesfof economically
d sadvantaged
p.oducers
by payng a farfprlce.lt is a nfrtegyfor
l
reduclng
e Deveop ng produceB'ndependence
by opening
to newmarkets
andbuiding
managemeni
skils
', SaJe
andhealthyworkifgconditons.
.
equality
e Goodenvironmenral
practc€sandr€sponsib
e methods
Butlair tradehasitscriiics.People
saythattoo muchof the
pricepaidby consumeB
goesto the
retarlelsAndove'thelongtern f" r LrddeoperaLes
asa
hidden7 ..............
..............................
. li putsa prcefloorundera

commodrty
ard theeroreencoJr"ge,3
Thiscaneventually
leadio lowerpicesfor 9rowe6

Seepage146for somedircurriontopics.

The businesswofld

17


Managementstyles and qualities
Manag€ment styles

Personspecification

Elerv ftanageririllbe different,bui oler th€ lears
mnnagenlentthcory has est.blishcdtluee broad categoriesof

[Ihen bokinS for can.lidatesfo. a particularjob, many
companiesproduceboth a iob specificationand a pe$on
specificahon.This helps recruitmentagenciesand/o. the
human resourced.pariment to find s!italrle people.The
personspecrficationivill inchde the skilis nccdcd,cxpcrieDce
neededand personalqualitiesof the ideal can.lidatc.The
e\ample belorLshoirs the finil section,p..sonal qu.litics.

The authoritaIian manager
This personis strict,demanding,conh.nlng and probabh

ioo rigid in their vic{'s. Thev i.ke a krp do$r approa.h tsut
somestlff like this - thev kno$, qficrc ihcy si.nd and rrhai
ihcir rcsponsibiljticsare.Thelr jobs i,r clcirh dclirlcd
The consensual,nanager
Tliis pcrsont,clieles in consuliation,and in coachingand
menbrnlg th.ir shffto help thcn dcr.lop.Sllrordlrat€s
!suallv like this tvpc of manager,lrul thc man.ge na! lnck
vision and f.ril t() sln { lcadersh\r.

PERSONSPECIFICATION
Ski,is ond obilities
The idealcandldarewill be able to demon$nte rhe followlnt

The handroff manager
This pcFon deleg.tcsc!.rl,d)lng, o, just l.ircs probl.Drs
n 1i h c h o p et h . t t h c ! t o . r L i ! . T h c v$ . i l l j u s t i l l i h c i r s t \ l c
. s c n + r o w . n e f t ( i c g n i n g . o n h l , l o v ( . d c c , s ( r n tso o t h c r
p$Flc), bui slbordnlilcs q ill frrl r l.rckof guidincc ind
{ppo.l. Li.iwr bfts'ccn .olL.g!.s (.o $rfkc,s) $ ill Lrc
An inTortnnl |oiDl is thil nr,rn.rgrnrcnlsh lf Di8ht rcflrct
t h e . o i l p i n v . u l i ! r f . s m u c h. r si h . f c r s o n n l i t \o' i t h e
i n d i ! i d u . l S o . rh i c r h i c r l c o n r p n f y s l l h . b ! r o . u c r . t 1 .
d c c i s i ( nh . r k i n gp k ) c . s sw i l l s u i t o n c r v p oo l h i n a g c . O n
lh.othorh.!r!l, n dcccntialized.oDrpan\'lrhrr. kn!-lelrl
mrrigo.s cin i.rkc thc jniti.riivc will s!ii .ndthL'r
We .lso ha!. to Nn.nrbd that Lliflerentbusnresssru.rurs
! v i l l ' r q u j r o d i l l c r n t m a n a g o m c nqiu a l i i i L ' s :
Considorthc nrlnagcr whd is nrethodical,slstem.lic.nd
organizcd ls th;,t alw.vs a good ihnrg?Mavbe thcrearc
sitlraliurs where it's bellL'rb be iniuiii\e and flc\iblc. or

ni takc dccisionsqui.klv uithout kno$ing ill the ficrs.
Consid.r the lnanag.r bho is. good tean pl.rvcr,
co{pcratn'e hd supportjle.Is ihai always i good lhirrg?
\rlavbc thcrer.e situaiionshhe.e it's beiier tu \'ork on
J . . r r s r ' b p , - ! - l l , n o \ . r t , .i l f . , . . l i \ ,

Qualitiesor skills?
Hcre is sonrethhg interestingio thinlthc text ibole thoe is referenceto sivlesand quilities, not
to skills.This distjlction is inrportant.Qualitiesare a part of
your.ha.acter and personaliiy- rher were presentatbnth or
formed ea.ly in youf life and you s'ill find it hard nr change
thcsethings. Skills,ho('ever are things lo!.an lean like
how to speakanotherlanglage, or gn'e a good presentation.
Skills.nn be devcloped.nd improle.1 thJoughpracticenn.t
r\p, ri" Y. qu" ir .- n...h le\\ .n | . I r
fur ir" nin!. o. .o[r' dpr. lopTell dd ,. -""-. ho . F.

1E

Persono, quolitiet
gusinessknowledge
The idea candid.rewill;
havea tood undeBrandiit of rhe market
k€€p up ro date wth developmentsin the lield

The ldeal candidatewill:
be able ro rranslarecompanyrrarery into indtvidual
b u s n e s su n i r o b j e c t i v e s
be abe to balanceconf ctiig businessinrerestswithin the

ortanizational ability
The ideal candidatewill:
be a Sood adhinisrntor
be a good time-manater
be conscentiousand lhorouSh
be a Sood team-boilder
Relation to subordinetes
The ideal caidida@will:
havean abi ry to notivrte
know when to de egateand when ro refef upwards
keep tood inesof communicaliof
havean open doof policy
havean abilityto conrol and gve feedback n an

The ideal .andidatewill:
be preparedro take rkks
oe nones and transParent
be single-mind€dand determlned
be able to recoyer quicklf aiter a setback
suy carm under Pre$ure


7 MANAGEMENTsTYLEsAND OUALITIES

Exercises
7.1 Finda word in the text oppositethat matcheseach
definitionbelow.Thewordsappearin order.
1 expectinq
otherpeopeto obeyrulescompletely

-q . loLo vo-r .rre drd pne'g/
., 'rFed
3 involv
nq theagreem€nt
of monpeopenagroup;
democratic
4 q vinqtra ningor ddvicefor a sperifcjobor tan
5 advisng andhelpingsomeone
moregenerally
overa
lonqer
timeperod
p€opl€sothatthey
6 exchange
of informaton betvve€n
workwe toqether
7 wherep€opleandjobsared videdintomanylevelsof
rrnport.nce
8 takingactonbeforet's needed,
ratherthanwaling unti
proDer.soeveop

7.3 Choosethe bestadiectiv€from thosein 7.2 (both
(olumns)to describ€th€semanagers.
1 ll€'sundera lot of pressure
and ooksworredal theUme.
Hesreally
2 Oncesh€'srnaded plan,shedoesn'tlikechanqng it 5he! a
brt
3 He rkesto gel nvovedanddothlnqs,ratherthdnjusl

ta kingaboutthemor makingotherpeopiedo them Hes
very
4 Herdeskis so untidy papers
everywherel
t\ r€ay
5 Heproduces
compllcated
ruesfor every,th
nq. Hs approach
r5very
6 5heshonestandopenanddoesn'ttry to h de any,th
ng.
5hesvery
7.4 Makephrasesby matchingan item {rom each

Now do the samefor the words in 'Personspecifiration'
9 ,ho^irg d ol o' rdre a_d allFnlor
1 0 n c l u d i n ge v e r yp o s sb l e d e t a l . n d . v o i d n g m E t a k e s

t1 wantingto do somethng verymLrch
sothal yolJwill not
et any,lh
ng stopyou
t2 a probemthatdelaysor nopsprogress

on yolr own and be sef-motrvated

-\

2 know

3 work

v s i o na n d f a i l t o s h o w e a d e r s h i p

5 keep
6 give
8 vanslate

quicklyafter a setback
genera (rategy into rpecifc objectves
u p t o d a l ew t h d e v e o p m € n ti n
s t h ef i e d
fe€dbackin an approprai€way

7.5 Completethe teJ(tabout teamswith the words in
7.2 Changeeaby fillinq in the letters.lf there is a pretix,it may be
de-, dis-, in- 6t un-,
l simple
2 centr. zed
centraized
3 co-operatve
co-operatve/ helplul
5 d rect
6 flexibe
8
9
10
1l
12

13

honen
iniuitve
merhod
cal
orqanred
nressed
s!pportve

15 transparent

d recl
flexibe
/ ri d

/ me y
organized

brcathing catry out feedba.k guidinq
Bsuing prcgrcss repan back tunntng

Theab ity to eadteamsisa keyskil in the modefn
business
word. Theteam e.derhasto rnovebetweena
varietyof.ppro.ches:'
nstructons
andsuperuising
closely
at times,'?

and
encour.ginq
andofferinqadvice.tothertimes.
Theteamleaders of.ourserespons
blefor monitoring
overallI
, but oncetheteamis up and
a
andieamrolesare
, andthe objectives
clearydefined,ihenhe or shemaybe ableto iakea back
seatfor shortperodsof time.
Teammembers
liketo fee thatth€ycan
theirroleswithoutihe leaoe,
6
aowntheirneckd Lthet me.
However.
theydo needto 7
regualy,
andthe teamleaderis expected
to glvethernconstructive
. . on theirperformance
seepage145lorsomediscussion
topics.


o.n.rr,ring time and work

@

At the plaming siage of a project the amount of work required cm look frightening. To make it manageable, you
need to develop d overal time 6ame (rinescale) for rhe prcject md a schedule (tinetable) to show the dates
oi times when individual ihjngs should happen. Hopefuly, throuSh Sood iime mdagement, you will be ahead
ofschedule.Anlyat as long as yo!'re on schedule,there'sno problem.What yo! definitelydon't want is io be
behind schedule.That meffi you be mder a lot of stress,md when you're totally sh€ssedout, your work will
suffea You nlight have to irolk long hours to caich up. And iI you're a mmage!, you probably won't get paid
overtine it's just cxpectedof l.ou.
Of course, it's not always your fault. There can be delays fo! all so s of reasons.ThinSs can take longer than
plannedbecauscof circumstances
beyond your control.ln ihat case... well, deadlinesmight becomeguidellnes.
nrl'at can you do to improve your time muagemeniT Hclc are somehps:

fime management tips
U s ea d a r y ( A m E . a l e . d a r ) t op a n y o u r l m e 5 o h w n r e
pnckaqcss!.h a5 Olllook ..lud€ rh( iun.t o., but m;ny
p c o p l ep r e i e a
r w a l l . h a r lw r h s r i . k e r a r d . o l o l r . o d i n g r o
5how dltrerenli.r vr es
[ 4 a k ca r . a 5 r i . p a n a . d r r i e r ]t r o ' r z e t l r el " s k s D o r h e A l : 5 k s
t 6 r t h € m p o r r a n l!,. p ! e ! 5 d n to, r t m e c o f u n n l g o . e s T h e n
y o ! l l t l r n L oL h €l e s sm p o r l a n ro . e s w i t l r a . l e a r m n d D o n l
qctdsfiacledbydonglhesna,-"aiy1.!k!i6l
Us. chccklisls.

K . o w a n d l s e l h e f n q s y n e mo n y o u r . o m p l r e rp r o p e r l y
A lor ot rh€ workf ow in b! 5 n.$ Noives e e.tron c pnperworl!
: n d y o u n e e dt o k n o w h o w t o a c c . $ d o c l m e n r sm
, oditthem,
sharerhem and nr.h ve th.m

Deeg;re
D o . l r r y t o b e a p e r f e c t i o n s t n c v . r y t l rn q r t a k e s t i m € t o
{ l e rr h . 9 t r b s o l u t e y r g h i , a n d I h c s m o n e y 5 h o r r . u t sc a n
b e a . c e p r a be r a q ! c k . n d d r t y ' s o! t o n m n y b e O K . l i y l o
bnla.ce qua tt cost and time

Bui ofcourse you know all that, and you haYc alrcadv inplemented these suggestions. You use careful
time 'nanagement to plan your workload. You nclcr put off unpleasant tasks or lose concenkation. Becaup
of this, your work is stihulating and rewarding. You do elcrything h'ith calm and focus. At the end ot
e.ch day you go homc with a s€nse ofachielenent. You say to yourself,'The world is a better plaQ todav
because of what I did in my job.'Right?

What do managers manage?
0perati()ns
5ettnq anda.h ev n9 targets
mprovnq produdv ry
Conrro nq,deeqatingandqivinqleedba.k
Decison rnakng
S a i i s tn g . u n o m e rn e e d s
qLraliry
N'lanaging
Managing.han9e
People
Panningstaffnqneeds,andrecruitinq
and !ee.ting newsratr
DeveLoplflq
theteam,5Lrppoft
ng andg! d ng indivdlak
Deegatinqand monitori.g

Irinance
P , e p a , i nagn dn e q oar r . q b l d q e r 5
^.lonirorin9
rhebLdger
Makng investme.tde.ision5

Inforrnatiou
chi r ng and/orpirticiparig n meetngs

A.cessng iniormatonon thecompanyT neMork
Readinq
andwritingreportsand propon s
Ke€pingil esup todate
5peakinq. publ., givlngpreseniatons

Careerdevelopmeut
aarryingo!t performance
reviews
Rewardlng
aclrevement

20

DeveopingyoLrrsks and cornpeienc€s
Attendlng.onf€fe.ce5
andsernnal!
Reading
abolt rece.t deasanddeveopmente
ln yoLrrfed

A O R G A N I Z I N GT I M E A N D W O R K

Exercises
8.1 Fill in the missingletters.
1
, Theprotectis goingv€rywe . n facl,we're
of schedule.
Theworki w is orqanrzed
efficenty,
andwe hdved bigwallch
with ni
shown9 th€ d ffer€ntnagesof the prolectandwhat
€veryone
shouldbe do nq I likeour team eader she
hasestablshed
thegeneraqu
nes{orolr work,
but she eavesit up to usto pr
trzeourlaskson
a d.y to daybasis.
Of course,
therearealways
chd
ngesto la €, but so far we'vebeen.ble lo
m t thosechalenges.
lts a gre:l expeience.irnd
the workst
at ng andr€w
nq lts givenmed

rea 5
e oTarh
ment.

Please
5 Ldn week I

l€n workng daysfor deivery

5x holrs overtme. They're
qo ng to pay rn€tim€-and-a-half.
6 Th s red y sn t important- we'Ll
loo
m u c h t m e f w € d o I L e t s l u s te a v - ot
-

-Ld

.o1 a,,!to.. rdFd_ /a.oLd

aroundtwo weekson our pannedschedule
by do nq t
8 | got distracted
th s afternoonl'l haveto
t me bystayng dte.t th,"olf ce
tonrghr
8 . 3 L o o k a t ' W h a t d o m a n a g e r sm a n a g e ? ' o p p o s i t e .
1 F id d word that s usedin lwo ways:
a) a pan of how to spendmofey, and b)the rnoneyitlelf
2 F r n da i o r m . w o r dt h a t s l s e d n t h e f e l d o f h u m a n

r e s o u r c e1s0n e a n : s p e c i t ck n o w l e d gaen d r k l l s n o t h e r
words. knowledgednd sk k that are ls€d for a particular
t a s kr n a p a r t c ! l a rl o b
4.4 Readthe text about del€gating, th€n antwer the

The work
d n th s project s iar biggerthan
anyoneexpectedThereSa ot 01 !nexpected
od
s o 4 r f a r ' s / e f I ne . o n
n 9 r o L o n pe r e
T h r n q s : r en o t g o i n gw e . n i a c i ,w e ' r e
d
schedLreWe miqht evenm ssthe de,
E v e r y o nret o t a l ys t
People
ed
are
- c s a n d q u a l r tsys u f f e f i nlgt s l u n s o
takngsh
l r u n r a tn g , a n d t 3 n o t e v e no u r { a u l t i l s e n t r e y d L e
to (rc!
cesb
d our conlro The only
way we re go ng io f nishthis work wirh n the given
t me lr
e by f nd nq somekLndol q|]
and
dr
s o u t o n . l k n o wt s nl i d e a ,b u t w h a e

l se

ll managers
haveconslraints
on ther tme - so many
lasksseernurgenland vrla, and yet no one person
cantackLe
lhemall Deegalionis lheanswer
Once youve apponleclthe personresponsible
lor lhe
pa(icularlask yo! need to brief them rhoroughly.
How
muchautonomy
are you goingto allowlhem?Howollen
shouldlheyreportbackto yolrwth progr€ss!pdates,and
in whatdetail?Andwhoese needsIo be in thetoop?Alter
ali,its noljuslyou
whoneedsto knowwhatshappening
Convo will be a key issLreWhathappensif ihey hil an
unexpected
snag?YoucanI takeall theresponsbilityaway
fromthem lguring out soltons to problernswi be a
chaLlenge
anda motvaliontorlhem.Howeveryoudo need
y
io makesurethattasksarecompleted
slrccessfLr
Finda word from the text that means:
1 limrs
2 de. with

3 qivenecessary
iniorrnaton
4 (fourwatd) he patlaf a groupof peope thdthdsnformatlon

8.2 Completethe sentences
with th€ v€rbsin the box.
Th€yar€ all usedwith time expressions.
allaw

fin.l

nake up put in
speno waste

1 Howmucht medo you
books
aboutmdnagement?
2 knowyou'rebLrsy,
bul wonderif youcould
........somet metomorrowto checkmy
3 That3 it. We haveto f nishfow. We ve
I rne

5 (infarnal) Nabter-|
6 (phrasai
vert beng abe to lfderstand;solvng
8.5 Readthe following sentenceand decid€it it's
grammatically
correct.
Anceyau veappointedthe rcspansibiefar the particulartask,

yau needta brief then thorcuqhly
Comparewith the third sentencein the text above.
seepage146for somedis(ussion
topics.


Planningand setting objectives
What is a plan?
A n o r b r _/ ! h o n . , i . ^ n ' r y p ha l h ( l 0 ) c r - ) \ h d p " - , r .
strategy(2 5 years),which in tur. shapesits plans (1 year).

BusinessPlan: Contents

, has obj.cliveswhich can be neasuied.
l, answcrsqucstionsthai stakeholders(eg sharehoidcrs,
banks,cmployees)will ask.
I builds ir oplions.
'1 idcntifics and quantifiesrisks.
a shows how to minimize thoserisks (.nd pelhapsincludes
a coningcrlcy plarl for Nhai happensif things Bo wrong).
a alios's progrcssio be me.sured.

1 summaryand main conclusions

Othe. points to noic arcl
', That ilie.e is a cost to planninSin i..ms ofmanagemeni,
time and .esearch.
,i That all plans makc assumptions,.lihough thcscare often
not statedcxplicitly.
' -hdt rh,1, .r' \om' .cr) .t

llpe"'rfi.
"Ibuinc-"
(cg
projcct
manag€ment
is. distinct busincss
Flanning
function in its own right).

Elements of a plan
AcompreheDsivcbusinessplan for a largecompanymight
involve ihe f(nlowhg:
1, IDtcrnalanalysis:this colors thc strcngihsand tlcakncsses
of thc organizatioll,historicalp$formance, tr.nds in the
businessactivity and cutrcnt roso!rccs.
', Extcnralanalvsis:this covcrsmarkcts,clstomcrs,
l l . , c " m p ' t i n u n .r d \ . l . d r , l i I o n . l h c g . n c r . r b
l u.in.ss
o Gap aDalysis:this stariswiih the kcy issucsraiscd nr the
first two points above,and highlighis lhoseareaswhere
thereis a gap betwcenwherc you arc now and wh€re you
a Action plan: what necdsto bc donc to closethe gaps?Do
producisneed to be improved?Docstcchnologyned to
be upgraded?Do stafinccd to be rctrain.d?
', Resolrceassessmeni:
rlhat the action pld needsin terms
ofhumar resources,
matcrialresourccs(eg plani, space
nlsidebuild nrgs,equipment),lT rcsourcesand financial
//r TarSeisrspecificta.getsfor financialrciunN, costs,market

share,sales,grorrih, cusiomersatisfaciion,quality,etc.
u, Financialissuesrcashflow forecasls,projeciedprofiiand
loss (P&L).
Look at ihe Contentspage of thc businessplan on the nght.
It is the knld of plan thai a sma or nedium'sized business
mightproduce io define its shategvSoingfoMard. The plan
might alsobe neededto show to a bark if new tunding is

2lntroduction
2.1 Current
situation
2.2 Need
forchange
3 Internalanalysis
3.1 Interna
strengths
3.2 Interna
weaknesses
4 Market analysis
4.1 External
oppoatunit
es
4.2 External
threats
5 Marketingplan
5.1 Newproduct
ideas
5.2 Prcingissues
5.3 Sales
targets

andmarket
share
targets
5.4 Geographical
d versification
5.5 lmprovements
to distrblt of channel
q 6

A.lwarti
6 Operationalplan
6.1 N-"wplantandequpment
process
6.2 Effciency
of production
6.3 ProduCrivity
lssues
6 4

l.lo:< f^r <:vi^^

.^d<

proposals
6.5 Outsourcing
6.6 Quality
issues
7 Financials
7.1 Cashflowforecast

7.2 Profitandlossforecast
8 Resource
requirements
8.1 Humanresources
8.2 Capital
investment
8.3 tT
9 Appendices

22

nn<


9 PLANNINGAND SETTINGOB.|ECTIVES

Exercises
9.1 Finda word in the text oppositethat matcheseach
definitionbelow Thewords aooearin order.
oi a
1 a thoseDeoD
e who havean interestn the success
pan, systern
or organizatio
2 (tuvawords)a cautseoI actionth.t youwill takeif
in thefuture
..
som€thing
badhappens
3 b e l € f st h d t a r eu s e da st h e b a s s{ o r 3 n d e a .b u t w h i c h

may not be correct .
4 qrad!al changesor deveopments,tendences

5 (farmal)laws
6 makespeoplenotcesomething
andthinkaboutit
taket
7 a factoryor burdingwherean industriaprocess
pl.,e.. d dl rts'e.w n..h *.y
8 lh: g\ lrdl yourryto acqeve
contexito
9 (n^7o
words)phrase
oitenusedn a business
mean'n thetuture'
Now do the samefor the 'conten$' pageopposite.
10 predrction
9.2 one verb from eachgroup doer not 90 with the
noun at the €nd. crossit out.
checkany unknownwords in a dictionary
1 cut, esttnate,tmplenent,rccovet aosls
get holdof wthhold lnfo.maton
2 access,
achieve,
3 cansi.let,keepopen,meet,5u99e5t opt ons
4 be basedan, 5 identify,mininize, quantift,rcach tiskt
generate,5et
6 boast,farecast,
up sales

9.3 Matcha group of verbs1-3 and a group of
adieCheckany unknownwords in a dictionary
1 achieve,
exceed,
fa lshortof, meet,reach
iackle
dealwth,d scus!,
explore,locus
on,raise,
2 carify,
3 conreup wth, go aheadwih, mpement,keepto, plt
a ambitlous,
contngency,
deiaied,fve-point,long'term,
realstic,
nrategc, threeyear
b ambitous,
annua,high,nital.reaistc,sales
vital
c basic,c€ntral,complex,
irucal,main,side,!nresolved,
iil l- tarset l-1L-rpl.n

|!l

9.4 Rewriteth€ senten(esusinga verb + an adjective
from exercise9.3.Keepthe samemeaning.
1 Wewill go abov€the tarqetwe hadar the beginnng.
target

our . ........1!l!al
Wewili
2 We wil go beow ouryeanytargel
targel
..
we w -.........
J w e d F ( r d F do , l c n ( f e p l . r f o r r l _ Fr e . . . h r e e) € r ' s
the
...
W€ decded to

plan
4 Wew ll hdv€to stopour pl.nsfor thefuture(dthoughwe
mlghtcontnuewith them ate,
Wewill hdveto
p|ans
5 Th€issuethattheyw.ntedueto consder s very
Therssue
thatthey

s very

9.5 Matcha group of verbs l-3 and a group of
adie(tivesa-1 arrange,
follow,9o according
to, revise,
stckto
failin,fu fil, meet,reach,set
2 achieve.

plan,redLrce.
3 .pprove,c!t, increase,
5tickto, subm1
pr mary,specilic
a clear,key,limired,long-tem,majoroverall,
b annual,draft,fxed, limted, ow t ght,marketing
y
c ambitious,
busy,strct,tight.!1/eek
'
schedule I I bldgel
objective
9.6 Rewrirerh€ sentencesusinga verb + an adjective
from exercise9.5.Keepthe samemeaning.
I At thispointwe justneedto decideour g€neraobjectives
our
At thispoiniwe jun needto
.
ooleclves.
) Weri ,{ leep(o t'e sc'eorle- r_Fre.ony t-ste_o.gl'
theschedule t5 very
3 | h.ve to givea provislonabudgetso thal they can makea
d e . i s o n .( i c a nb e c h a n q e da t e r . )
I h"ve to
budget.
See pag€ 147 for some dilcussion topics.

issue

"Drnr,I

inkIak Pldn B.'


Leading and motivating
What is leader5hipin business?
Clearly, an entrepreneur shows leadership. They siart iheir
own business,and then build it up from scratch.But the
head of a ieam, deparimentor lalgc organizationcm also
show leadelstup.what do thesepeoplehave in comlon?
A good $ay io ansa'e! this is to look at the difference
betweenleadershipand maagcmcni. To simplify greatly:
irr Leaderslook at the big picture,wclcomechange,ale good
at motivating and influencjng,and ivork well alone(or at
the head oi teams).
1 Managerslook at the deiails,welcomestability,.re good
at supervising,and wolk well as team members.
In addition, managelstcnd io gct their authority from their
role (a bosswith subordin.tes),a'hilc leadersget their
a(ihority from their personaliryPcoplejust tunr io l..ders
fo. guidance,regardlessofthei! position.Thev hale. quality

Eight characteristics ol a good leader
I Vision: this meansgcnc.atingideasabori the wny ahead,
and then Scitirg buy- (= commitmentto a shared8oa1)
from other people.
ll Moiivation: as {'cll as oblious thin8s Iike salary this
n r l u J c - p r J F p .J p p r . c r . r u . ni - d ( c o $ , n i t i o ' .

Emotionalintelligence:this us€d to be calledempathy or

intuition. It meds 'reading people' knowing what they
Empoweringothers:tell pcople rvhat you expecthom
them, gile them the tools ihey need to succeed,and then
get out of their way. Leam to listen,nothing is more
empoweringthm b€ing head.
Being trustworthy:your behaviourshould be consistent
rlith yourbeliefs,othetrise people won't trust you.
Actionsspeaklouder thm aords.
Taking risks and managingchange:leadersneed io be
changeagenis- in a fasFmovingworld, any organizahon
that siandsstill will fail. Butchangebrings rcsistance.
Leadershave io explain why changeis necessa!,
establisha process,involve everyone,providc support,
communicatethe outcones and sharethe bencfits.
Focrs and follow-through:this involvesseiting priorities
and doinll whal you say you will do. Unfortunately,many
lea.tersare poor finishcrs.
A s e n s eo f h u m o u r :t h c a b i l i t yt o l a u g h . t y o u r s c l fi s .
good ilay to b.ing othcrsalong wiih yo!.Ii dcnonshates
a degreeof self-knolvlcclge.

Motivation
A survey by Kabsn
Consultlngaakedpeople
In a wlde |angeol Industry
sectoG whet medelhem
teel good al work. Here are
the resulis:

The Esearchersdrewthe followingconclusionsabout

Noticelhe dominanceotthe lop thr€ecalegorles:
motivation:
achievemeni
A senseof achevement,
and havingthat
working
Positive
recognizedappeff to be strongmolivatorc.
Ina task-oriented
busnessword, it3 mportantto
lhai
financial
psandthe 'er.otiona' dimensnf
relatonships
areaso importantNolicealso
remernber
that relaiionsh
rewardwasonlyrankedsixth Thisls quitesurprising.
to workarevery mportant.
Theresearchers
thenaskedpeoplewhatmadethemleel
Recognition
andpositvefeedback
arethe oxygenof
bad at work Here the mostcommonresponseby tar was
'a negatveexperience
wlh colleagues.A rangeof olher
success
and
Employees

.sk, 'Whalsin it for me?'Blsinest
company
factorswerea so menlioned:ack ot recognilion,
facloK.
s.tisfaction
did not appearasrnotvational
customer
po lics stress,boringwork,elc temslhatwerementoned
Motivation
anddemotivation
arenot equalandexact
essoftenincluded:ack of support,havlnga bad boss,lack
whle
wasthe
opposites.
Forexample,
aclrievement
of d recton and unsatisfactory
evelsol pay.Thesed d noi
was
rarely
mentioned
asa
motvator,fdLlure
stronqest
seemto be lmportantdemotivalors.
24