Tài liệu bổ trợ môn học Tiếng Anh – Đọc 2 = Reading Plus 2 / Lê Thị Minh Thủy cb., Trần Đức Minh, Trần Tố Trân

PREFACE

Improving reading skills is an indispensable part of English language learning as during the process learners can build up vocabulary, enhance grammar and widen knowledge in many areas With the aim of helping Business English-majored students of HCM University of Banking

enhance their reading competency in Reading 2, Q Skills for Success 2: Reading & Writing has

been introduced as the main material for the course, where students can practice a wide range of topics However, it will be better if students are provided with a supplementary material with chances to be exposed to more business contexts The present resource book has been compiled to address this issue, hoping to equip students of Business English major with deeper insights into the business world

The resource book, consisting of eight topic-based units, was developed in line with the proficiency level of the course book (B2) and the intricacies of the industry Each of the unit includes a series of vocabulary exercises and reading passages, followed by comprehension practice of the introduced reading skills in correspondence with the units taught in the course book It is suggested that students do the vocabulary exercises beforehand to gain basic understanding of the business situations, then complete the reading exercises using the newly acquired skills effectively in these new contexts, and eventually check the answer keys at the end of the book We, the team of three lecturers, truly hope that this supplement will not only support learners in practicing reading skills with a business focus, but also serve as a compilation of reference exercises for teachers to ensure the consistency of topics and learning materials throughout the reading classes

UNIT 1 - COMMUNICATION

Reading strategy: Identifying the main ideas

 Read the title to have an overall understanding of the passage  Skim the paragraph(s), then try to identify the topic

 Identify the topic sentence (often the first sentence or sometimes the last sentence)  Look for repeated words and ideas throughout the passage

6 relationship-oriented F the position or fact of being a leader, the qualities of a good leader

7 expertise G interested in personal relationships

8 to stay focused H to develop a close connection to or strong relationship with someone

who are collaborating on tasks stay interested for longer, feel less tired and get better results than people who are working alone Working together as a team allows people to achieve things that could never be done by just one person What's more, the communication needed in order for team members to share goals and explain ideas is part of a process that improves the quality of everyone's thinking and contributions Here are five tips for effective collaboration and strong teamwork that will improve productivity and get better results

Creating a culture of co-operation

To achieve their goals effectively, team members need to co-operate and be generous with their resources, including their own talents When people get to know the strengths of their individual team members, they can use the different skills and expertise in the team to their advantage Team leaders can create a culture of co-operation by setting an example that includes spending time talking to and supporting individuals, and sharing their knowledge and resources with their team If we see our team leaders being open and welcoming different ideas, we are more likely to do the same

Having clear goals and clear roles

Working in a team without clear goals is like running in a race without a finish line In order for team collaboration to be successful, members need to have clear goals and know their individual responsibilities This not only helps them to stay focused and motivated, but it also helps them to understand how they can play their part in the team's success

Leaders – focusing on tasks and relationships

Objectives are important, but we mustn't forget that a team is made up of people and their relationships to each other The stronger those relationships are, the more likely the team is to be effective A report by Harvard Business Review found that the most productive and innovative teams often have leaders with a flexible leadership style They might start a project being task-focused and deciding the goals and roles in a team But during the project, they might switch to a more relationship-oriented style, focusing on team-building and creating an environment of friendliness and trust

Having open communication lines

If we want our team members to work well together, communication is the key We need to provide effective channels of communication and encourage people to share what they're doing Simply meeting once a week for updates is not enough There are many project management tools like

Microsoft Teams or Slack that provide a regular and open channel of communication with everyone Another option could be creating a group on messaging apps like WhatsApp or LINE to offer team members a chance to informally communicate with others

Encouraging a spirit of community

Companies often organise social events because they know the importance of creating a sense of community The activity could be anything from a weekly lunchtime food share to a quiz afternoon Or you can start with simple, everyday things like having coffee breaks together or creating a space to share books Ideas like these all encourage collaboration by bringing people together and helping them bond with their colleagues

Collaboration is an opportunity to learn from each other and encourage fresh thinking, as well as a source of energy, strength and continued effort As the saying goes, ‘If you want to go fast, go alone If you want to go far, go together.’

Exercise 1: Which ways of improving collaboration are mentioned in the article? Choose the FIVE correct answers

A Putting in time talking to team members and giving them help B Organising a fun group activity for staff

C Encouraging each team member to compete against the others D Making sure each team member understands their role in the project E Limiting communication to weekly team meetings

F Focusing on the goals but also on the relationships that team members have with each other G Ensuring that everyone on the team has the same point of view

H Encouraging informal communication and socialising between colleagues

Exercise 2: Choose the correct answers

1 To promote co-operation, team leaders should A provide assistance for those in need B acquire as much knowledge as possible C convince others to follow their ideas

2 Setting clear goals results in

A motivation being shifted from leaders to all members

B each individual’s roles and responsibilities being clearly defined C project deadlines not likely being missed

3 It is suggested in a study that successful teams A adopt scheduling flexibility

B tend to strengthen interpersonal bonds C are led by innovative individuals

4 Lines of communication should be expanded to include A visual aids

B business correspondence C social media

READING PASSAGE 2

A VOCABULARY PRACTICE: Complete the sentences with the correct form of the words

person agency enquire communicate automate

1 Much emphasis is put on effective communication by customer interaction and building a rapport with clients

2 Chatbots deal with requests like billing details, and technical support, freeing up real customer service _ for other more complex situations

3 Transcripts of company specific and calls have to be analysed

4 The chatbot systems are only suitable for large-scale customer interactions, such as retail, travel, and _

5 It should be possible to overcome customers’ fear of dealing with an

system

Chatbots - automated systems for conversations

by text or voice - are becoming more and more common in customer service situations The little pre-sales chatbox with 'Hello, can I help you?' that pops up on the corner of your screen as you are browsing a shopping site can quite easily be ignored but if you contact a company with a question or a problem to be resolved you might not have any choice, at least at first, but to talk to one of these chatbots These virtual agents, available 24/7, can save companies time and money by dealing with requests like billing details, technical support and all manner of other mundane tasks, freeing up real customer service agents for other more complex situations

Artificial intelligence (AI) and natural language generation have meant that today’s chatbots have come a long way from the stilted, scripted conversations which were all the first examples were capable of, but it takes a lot of time, financial investment and data to build an advanced system Transcripts of hundreds of thousands of company specific enquiries and calls have to be analysed to train the AI, through deep learning, in order for the chatbots to handle requests correctly In addition, they must be able to connect with the rest of the company’s IT system and records, such as a customer's past purchases, settings and location This allows the chatbots to combine this information with the customer’s current question so as to identify and then correctly respond to the customer’s intent For these reasons, the latest virtual agent systems are really only suitable for huge service-oriented companies, with large-scale customer interactions, such as retail, travel, telecommunications and financial services

These advanced forms of chatbots might be able to mimic real speech and respond to subtle changes in tone of voice, however their aim is not to fool people into believing they are talking with a real person – that would leave clients feeling cheated and probably wary of using the company again – but to show that chatbots offer a fast, easy, reliable and above all secure way of

contacting a company In this way, it should be possible to overcome customers’ dislike and fear of dealing with an automated system instead of talking to a customer service assistant After all, being able to resolve any issues quickly and easily is good news for businesses and customers alike

Exercise 1: What is the main idea of the passage?

A Chatbots fuel customers’ fear of dealing with a machine

B Chatbots need a compilation of transcripts to grow more powerful C Chatbots provide 24/7 responses to almost all customer inquiries

D Chatbots act as a solution to enhanced business-customer communication

Exercise 2: Read the article and decide if these sentences are True (T), False (F), or Not given (NG)

1 The use of chatbots in customer service has increased 2 Chatbots on e-commerce websites are often ignored by

Action plan for True /

False / Not given:

1 Underline keywords in the statement

2 Scan the text for the (paraphrased) keywords 3 Read the sentence(s) containing the keywords in detail

4 Decide if the information in

the statement agrees with the text (True), contradicts the text (False) or does not appear in the text (Not given)

READING PASSAGE 3

A VOCABULARY PRACTICE: Complete the following sentences using the words in the box Use dictionary if necessary

reassurance intensity reciprocate unconscious interpersonal

1 The university community provides support for developing vital graduate skills such as verbal and communication

2 During the pandemic, some attorneys pointed out to the fact that there was an increase of the of domestic violence

3 He seems to be driven by an desire to do better than everyone else 4 The commitment from meat processors offers some level of to organic

farmers facing an expensive winter of feeding

5 European Commission President urged Britain to EU efforts to resolve post-Brexit trade arrangements for Northern Ireland

B READING PRACTICE

Recognizing nonverbal communication

Difficulty level *

A Nonverbal communication is an intriguing part of business communication because it is both

complex and somewhat difficult to pin down On the sending side, some nonverbal signals are controllable (such as choosing what to wear), some are habits you may not even think about (tapping your fingers when you’re impatient, for instance), some are trainable (using specific hand gestures during a presentation), and some are involuntary (such as blushing) On the receiving side, nonverbal signals are not always reliable (a person who avoids eye contact isn’t necessarily trying to hide something, for example), and people vary widely in their ability to interpret signals correctly

B In a face-to-face conversation, everything from your body language to your clothing to your

eye movements can influence the messages and meanings the other party takes away from the exchange During a phone call, the pitch, rate, and other qualities of your voice can send nonverbal signals Even with written messages (both printed and digital), design and

formatting choices send nonverbal signals, although the focus here is on interpersonal communication Six types of signals are particularly important

C Your face is the primary vehicle for expressing your emotions because it can reveal both the

type and the intensity of your feelings Facial expressions can also affect other people’s emotions – a smile or frown, for instance, can trigger a similar response in anyone you are talking to Your eyes are especially effective for indicating attention and interest, influencing others, regulating interaction, and establishing dominance

D Aspects of voice carry both intentional and unintentional messages A speaker can intentionally

control pitch, pace, and stress to convey a specific message For instance, compare “What are you doing?” and “What are you doing?” Unintentional vocal characteristics can convey

happiness, surprise, fear, and other emotions (for example, fear often increases the pitch and pace of your speaking voice)

E The way you position and move your body expresses both specific and general messages, some

voluntary and some involuntary Many gestures – a wave of the hand, for example – have specific and intentional meanings Other types of body movement can express meanings that may be unintended Slouching, leaning forward, fidgeting, and walking briskly are all unconscious signals that can reveal whether you feel confident or nervous, friendly or hostile, assertive or passive, powerful or powerless

F People respond to others on the basis of their physical appearance, sometimes fairly and other

times unfairly Although an individual’s body type and facial features define appearance to a large degree, you can control grooming, clothing, accessories, piercings, tattoos, and hairstyle To make a good impression, adopt the style of the people you want to impress Employers differ widely in their expectations of personal appearance, so make sure you are aware of your company’s dress code, if it has one

G Touch is an important way to convey warmth, comfort, and reassurance – as well as control

Touch is so powerful, in fact, that it is governed by cultural customs that establish who can touch whom and how in various circumstances Even within each culture’s norms, however, individual attitudes toward touch vary widely A manager might be comfortable using hugs to express support or congratulations, but his or her subordinates could interpret those hugs as a show of dominance or sexual interest In other words, touch is a complex subject Other than handshakes, the best general advice is to avoid touching anyone under any circumstances in

the workplace If someone else takes the initiative, you can choose to reciprocate if you want, but only if you are comfortable doing so

H Like touch, time and space can be used to assert authority, imply intimacy, and send other

nonverbal messages For instance, some people try to demonstrate their own importance or disregard for others by making other people wait; others show respect by being on time Similarly, taking care not to invade private space, such as standing too close when talking, is a way to show respect for others Keep in mind that expectations regarding time and space vary by culture

Exercise 1: Match the paragraphs (A-H) with the appropriate headings (i-x)

List of headings

1 Paragraph A 2 Paragraph B 3 Paragraph C 4 Paragraph D 5 Paragraph E 6 Paragraph F 7 Paragraph G 8 Paragraph H

i Different responses to one’s external appearance ii Techniques to read the other person’s mind iii Use of vocal characteristics

iv Cultural effects on physical contact

v Emotional states through facial expressions

vi Complicated aspects of nonlinguistic communication vii Implications of gesture and posture

viii Attention to space-time contexts

ix Contributing factors in many types of communication x Mutual respect among employees

Exercise 2: Match the information (1-5) with the paragraphs (A-H)

1 An example of nonverbal cues in correspondence 2 A number of human interactions by eye movements 3 Business etiquette regarding tactile communication

Action plan for Matching headings:

1 Read the list of headings and underline the keywords

2 Skim the passage quickly to get an overview of its content and structure 3 Now read and identify the writer’s main idea in each paragraph

4 Look at the list of headings and choose the one that summarises the main idea

4 Misinterpretation of nonverbal expressions 5 Ways of treating people with respect

READING PASSAGE 4

A VOCABULARY PRACTICE

Exercise 1: Find expressions in the article which mean the following

1 looking at another person (paragraph 2)

2 upsetting or embarrassing someone by being rude (paragraph 2)

3 not be caught or punished when you have done something wrong (paragraph 4) 4 pretend something is true in order to deceive people (paragraph 4)

5 keeping writing or talking to someone, even though you do not see them often (paragraph 8) 6 aiming an idea or product at someone (paragraph 8)

Exercise 2: Complete this text with the expressions in Exercise 1 in the correct form

I don’t have a problem with him 1 _ his family whilst he’s posted overseas and

sending e-mails in office time That’s not the main issue However, if he thinks he can

2 _ sending such abusive e-mails to colleagues, he is sadly mistaken and he’ll have to face the consequences of his actions later He is clearly 3 about his

colleagues and spreading nasty rumours He’d be better off speaking to colleagues

4 _ if he has problems with them He’s slightly better when speaking with customers, but he needs to think about who he’s speaking to when he’s 5 _ our

products to them And he just doesn’t know how to say no to people without

The truth is that business is generally best done face to face, and if that is impossible, then speaking via the phone But too many of us now hide behind silent, typed communications The trouble is that the recipient of an e-mail does not hear a tone of voice or see a facial expression; nor can the sender modify their message halfway through, sensing that it is causing offence When you read an e-mail, you cannot tell the mood of the e-mailer

A permanent written form is deadly if you are feeling impetuous and emotional Too often I have made the mistake of sending an irritable response, which will have festered and angered the other end much more than a difficult telephone exchange Spoken words fade, but e-mail is forever It is so much easier to be tough via e-mail, or to get away with weak excuses, or to make things up, or to say no Almost invariably, it is more human and serious to have a real discussion rather than a bizarre online conversation I know employees who have been fired for sending inappropriate e-mail, or who have faced severe legal consequences for writing something they should have just said verbally

Everyone in business finds their inbox is almost swamped every day with spam I notice I spend longer and longer sorting out the e-mails that matter from all the junk It has become, I'm afraid, a dangerously corrupted medium Large companies suffer chronic overuse of 'reply to all'

Moreover, e-mail can be a terrible distraction, especially if you use a BlackBerry l was recently reprimanded for peeking at mine during a board meeting – a gross form of hypocrisy on my part, because I once threatened to sling out of the window any PDA-type devices being used in meetings I chaired I have now vowed to switch off both BlackBerry and mobile in all meetings – anything less is uncivil

It must be admitted that e-mail is hard to beat as a transmitter of documents and data It forces the sender to carefully think through their arguments and express themselves logically It allows you to reply swiftly to a host of different questions when time is short You don't have to worry about journey times or travel costs, unreliable postage or engaged phones or voicemail

E-mail is a marvelously economical tool for keeping in touch with far-flung commercial contacts; you can send them a note at your leisure, 24 hours a day It is also a terrific method of discreetly and directly pitching to someone powerful It certainly beats trying to get a meeting or even reach them on the phone

Like it or not, I could not do my job without e-mail Meanwhile, I know a senior financier, an chair of a FTSE company, who still has his secretary print out his e-mails for him to read so he can then dictate replies for her to e-mail back Now that really is mad

ex-Exercise 1: Read the article quickly and choose the best title

A Time to switch your BlackBerry off B How to deal with your inbox

C A quiet word beats sending e-mail

Exercise 2: Complete the following sentences with NO MORE THAN TWO WORDS from the passage

1 A sender of e-mails containing inappropriate messages is likely to be _

2 _ important e-mails from irrelevant

ones often takes considerable effort

3 The habit of constantly checking e-mails may be seen as a source of _ during a work-related meeting

4 E-mail seems to be an effective of materials presented in written form

5 Given a limited duration of time, writing e-mails enables an individual to respond to many inquiries

6 In terms of _ for business, the practice of sending e-mails works wonders as opposed to in-person meetings

Action plan for Sentence

completion:

1 Keep in mind the word limit 2 Read each sentence and underline the keywords 3 Scan the passage quickly using the keywords to find the relevant parts of the text 4 Read the text section in detail and choose the word(s) which fit(s) the space

5 Double check your answers to make sure they make sense (idea, spelling, grammar, etc.)

UNIT 2 – INTERNATIONAL MARKETING

Reading strategy: Previewing a text

 Read the title and headings

 Look at the photographs and pictures  Read the first and last paragraphs

 Then, ask yourself: What is the topic of the reading? What ideas are discussed in

6 to move with the times 7 a retailer

A to change your ideas or behaviour as the world changes B possessing or indicating much knowledge

C a person who buys products and services D to get involved with or have contact with

E the process of changing something according to a particular person’s needs, likes, habits, etc F a person or business that sells things to the public G to know more about new developments in a particular

subject or activity than your competitors

Here are five essential marketing trends that companies must take note of in order to move with the times

Shopping on social media

Forbes reports that 72 per cent of Instagram users have bought something when using the app and 70 per cent of Pinterest users use the platform to find new and interesting products Companies can now create posts that allow users to shop directly on social media instead of companies’ own websites This allows retailers to reach their customers more quickly and easily

Focus on customer experience

When a customer comes to your company, you want to make it as easy as possible for them to find what they need and buy your products PricewaterhouseCoopers reports that 73 per cent of people say that customer experience is an important factor when making a buying decision And when they say ‘customer experience’, they most value efficiency, friendly and knowledgeable customer service and easy payment options Companies that can provide a good customer experience keep their customers and attract new ones

Personalisation

There are so many marketing messages around us every day that people are very good at ignoring them, especially ones about products they’re not interested in So, in order to target the right kind of customer and connect with them, companies are personalising their marketing content This is made possible by the data that people generate through their internet searches, online shopping habits and social media use Online product recommendations, adverts and even the design of the marketing message itself is adapted to the interests and preferences of individual consumers According to a report, although 86 per cent of people were concerned about privacy issues, 90 per cent were happy to share data about their behavior if it meant an easier and cheaper shopping experience In the same survey, 72 per cent of consumers said they would only engage with marketing messages that are personalized according to their interests

Video content

According to Forbes, 91 per cent of consumers say they prefer watching interactive and visual content to reading a traditional piece of information about a product And consumers are 85 per cent more likely to buy your product after watching a video about it

If an advertisement is interesting, amusing or unique, people will search for it online and share it with their friends Live videos on social media platforms like Facebook and Instagram are also known to attract large audiences and get people interacting with companies in the comments, where they can give feedback and ask questions about the products

SEO

SEO stands for Search Engine Optimisation – the strategies companies use to get themselves high up in the results lists of search engines like Google, Bing, Yahoo and others As the internet plays an increasingly central role in marketing and selling, it is vital for your company to appear in the search results when someone does a related search For example, if you sell coffee machines, you want your website to appear when someone searches for the best coffee machines or even ways of making coffee

There is no doubt that the trend of digital marketing and an increased focus on individual customers is set to continue Companies hoping to gain a larger market share should constantly update their marketing strategies to get ahead of the game

Exercise 1: Read the first and last paragraphs quickly What is the topic sentence of each paragraph?

Topic sentence

Exercise 2: Read the title and headings and answer the following questions

1 What is the topic of the reading passage?

2 What ideas are discussed in the reading passage?

Exercise 3: Decide if these sentences are True (T), or False (F)

1 _ Television and newspaper advertisements are still the best ways to promote products

2 _ These days, people use social media more, shop online more and choose the videos they want to watch

3 _ Nearly three-quarters of Instagram users have shopped on the app

4 _ Most people say that if they like a product, the buying experience doesn’t matter 5 _ Most people will agree to share their data in exchange for a better shopping experience 6 _ Videos are a great way for companies to give information about their products and to

interact with their customers

7 _ SEO is about making sure people see your product or company when they do internet searches

8 _ If your company is already using digital marketing, it doesn’t need to change

Exercise 4: Choose the correct marketing feature (A-E) for each strategy (1-8)

1 _ Advertisements using people’s names to get their attention

2 _ A video about how to use your product

3 _ Making it possible for people to buy your product on Facebook

4 _ Making sure your website contains keywords that people will search for

5 _ Customers being able to chat online with a friendly voice from the company to find out more about the product

6 _ Showing clips of models walking around wearing the clothes you’re selling 7 _ Making recommendations to customers based on their interests

8 _ Making sure that your website is easy to use and customers can find what they want easily

A Shopping on social media B Focus on customer experience C Personalisation

D Video content

E SEO

Action plan for Matching features:

1 Read questions/statements and underline the keywords 2 Scan the passage and find the keywords

3 Read the text sections that are surrounded by keywords 4 Match the features with suitable questions/statements

READING PASSAGE 2

A VOCABULARY PRACTICE: Complete the marketing collocations (in italic) in sentences 1-10 with words from the box Use dictionary if necessary

bring declining

enter flood

leader niche

research segmentation

share study

1 Market _ is about dividing your

target market into different customer subgroups 2 Most companies are not willing to invest in

promoting a product if it faces a _

4 Companies often try to capture market

_ by cutting prices or offering special deals

5 Market _ is needed in order to estimate the cost of doing business in a

as marketing in this exercise

Some good collocation resources include:

▪ Oxford Collocations Dictionary ▪ Longman Collocations Dictionary ▪ MacMillan Collocations Dictionary

Picture this: you’re sitting by the pool at a Vegas resort, when you decide to tweet a picture of where you are to your friends at their fluorescent-lit offices A few minutes later, a waiter with an ice-cold beverage on the house, explaining, ‘Thanks for the tweet.’ Guess what your next tweet will be about? Staying at the BEST HOTEL EVER!!

That’s the scenario proposed by Marc Heyneker, co-founder of Revinate, one of a new generation of Web-based tools that help companies monitor what people are saying about them Similar tools are commonplace, typically picking up on keywords on Twitter, Facebook, Yelp and so on, but Revinate is different in that it specializes in a single vertical market: the hotel industry Individual hotels and chains can see how they stack up to the competition and respond to isolated or repeated gripes and praise

Heyneker says the hotel industry has been ‘sitting on the sidelines’: Their business has been disrupted by the double-edged sword of online travel agents and review sites like TripAdvisor®, but hotels are often ‘clueless’ as to how to deal with the new landscape Revinate typically pays for itself if it results in one extra booking per month In its first seven months, the service has signed up 491 hotels, including smaller individual hotels, Vegas resorts and popular hotel chains; Heyneker plans to take on the restaurant business next

Medimix’s ScanBuzzTM applies a similar approach to help the medical industry listen in on what people are saying about hundreds of pharmaceutical products and brands A company looking to market a drug to fight a particular disease can monitor the social web to research how many misdiagnoses are made and try to educate the relevant doctors and hospitals about the disease’s symptoms Meanwhile, Radian6 tackles the same job for consumer packaged goods, technology

and other verticals, taking a more general approach than Revinate’s hotel or Medimix’s medical industry dashboards

Nowhere in these marketing schemes are people paid to lie to their friends: businesses use information in a purely reactive way All the data they access is on the open web, so any privacy concerns should be minimal In the end, all that this socially-reactive marketing does is make businesses more responsive to what their customers are saying about them, and it’s hard to see how that could be a bad thing By reacting quickly and appropriately to conversations on the public web, businesses have a better chance of thriving in the unforgiving and increasingly powerful court of public opinion

Exercise 1: Read the title and look at the photo What is the topic of the reading passage?

A Hotel reviewers and their influence B Businesses and a new marketing trend C Customers and their getaway trips

Exercise 2: Scan the passage and find out what these names refer to

Vegas Revinate TripAdvisor® ScanBuzzTM

Radian6

Exercise 3: Decide if these sentences are True (T) or False (F)

1 _ Good customer feedback encourages hotels to give good customer service 2 _ Revinate has many competitors that pick up on keywords in the hotel industry

3 _ Online travel agents and review sites represent a threat that hotels have no idea how to deal with

4 _ ScanBuzz helps pharmaceutical companies to know which physicians and institutions to lobby

5 _ Radian6 provides a control panel of key data in several different business sectors

6 _ Socially-reactive marketing uses social networks to respond to what customers are saying

4 _

profile retention base

2 _

adaptation penetration segmentation

5 _

positioning identity extension

3 _

placement portfolio feature

The atmosphere is deliberate: where some Italian fashion houses have expanded ever further into the realms of celebrity and glamour Tod’s is anchored as firmly as it can be to its family roots and its traditional, hand-made, century-old heritage

Its signature products - shoes and bags - are made of leather, a raw material that has remained almost unchanged since it was first discovered, a new advertising campaign will take the company back to basics, with a focus on Italian families and their lifestyles - actual Italian families, however rich and privileged - rather than on celebrities

‘The Italian lifestyle is in our DNA, and in our group, we believe in our DNA,’ says Diego Della Valle, the Chairman and Chief Executive of Tod’s Group

This image is especially important in new markets, such as China and India, he says In common with other luxury-goods makers, he is intent on capturing consumers in those markets who aspire to the same sense of the Italian lifestyle as do customers in more mature market ‘A luxury-goods company has to have control of its image,’ he says ‘For Tod’s, the thing is to communicate this tradition, the generations of work that have gone into our products For us, it’s an absolute priority.’ To achieve it, one must put quality before quantity, and one must maintain the group’s traditions even as it globalizes, which it has been doing so fairly relentlessly in the past decade

The challenge is to marry tradition with modernity in a way that not all Italian luxury-goods and fashion producers have managed Tod’s has done it, Mr Della Valle says, by maintaining one key vision: ‘We’re a luxury-goods company, not a fashion company.’

This distinction between fashion and luxury is central to Mr Della Valle’s global ambitions The two have different product and ought to have different strategies, he says The competitors he admires most, he says, are Louis Vuitton, Hermes and Chanel

Mr Della Valle says that the goal in the next five years is ‘to complete the globalisation of Tod’s’, for which he has been laying the groundwork ‘I’d like Tod's to be much bigger than it is now, without diluting the brand.’ he says

He expects China and India to account for as much as 25 per cent of revenues by then, because the growth potential is much higher than in more traditional markets ‘There is a much bigger appetite for luxury goods in those markets than in mature markets, and day by day more people are coming into this market.’

Bur as for China as a competing producer, Mr Della Valle is sceptical about its ability to produce luxury goods ‘It lacks the structure of small companies, the tradition, the concept of excellence’ that Italian luxury goods producers have inherited and which they must maintain as a competitive advantage, he says ‘Made in Italy doesn't necessarily mean expensive goods.’ he says, ‘It means excellent goods.’

Exercise 1: Look at the photo Which products does Tod’s probably sell?

Exercise 2: Read the article quickly and complete this table

Tod’s group HQ - where? 1

Exercise 3: Complete the summary with NO MORE THAN TWO WORDS from the passage

Tod’s Group wishes to convey the charms of the Italian lifestyle to the world’s rich To do this It

focuses on its traditional, hand-made, century-old heritage, and its new 1 _ will

feature Italian families The Chairman says he wants to expand into India and China to capture

consumers there who appreciate the 2 _ To enter such big markets, Tod’s will

need to think about quality not quantity

Tod’s is primarily a 3 _ company and needs to be much bigger China and India have more possibility for 4 _ than Tod’s traditional markets The Chairman is

worried that China will be able to produce luxury goods more cheaply In future, Tod’s will look

to maintain the standards of 5 _

R

Action plan for Summary completion:

1 Keep in mind the word limit

2 Look at the title, if available, and skim the summary for its content and structure This will help locate the relevant part of the passage

3 Read the summary and underline the keywords

4 Scan the relevant part of the passage using the keywords This will help find exactly the right part of the passage to read in detail

5 Compare the language around each space in the summary with that in the passage 6 Choose your suitable words(s)

7 Double check your answers to make sure they make sense and summarize the passage

READING PASSAGE 4

A VOCABULARY PRACTICE: Complete the passage below using the words and phrases from the box Use dictionary if necessary

surprise attack territory

key strongholds casualties

are outgunned rage on

campaign surrender

It’s true that we’ve been deeply affected by our competitor’s

latest 1 _ A new plan of action must be developed as soon as possible 2 _ have been particularly high in every foreign 3 _ We have lost 4 _ in Russia and Venezuela Even in the home market we 5 _ However, we are not going to 6 _ We are developing a new 7 _ which will help us regain some of our market share The war will 8 _ for some time

yet but we are confident that we can still win

B READING PRACTICE

Hello to the good buys

Difficulty level *** A new marketing campaign promising hassle-free and faster fuel buying for customers is under way in America Suzanne Peck reports on the 18-month research project which involved Shell Oil researchers ‘moving in’ with their customers to test their buying habits

Metaphors in business contexts:

Metaphors are used to make a comparison between two

different concepts, which, however, describe similar characteristics

It is very common to use

military metaphor in business: we talk about

management strategy and tactics, and takeover deals are often described as coups and raids

1 Three years ago when Sam Morasca asked his wife what could be

done to exceed her expectations when buying gasoline, her answer ‘that I would never have to think about it any more’ made him pause and think The marketing people from Shell Oil Products, of which Sam is vice president, were desperately seeking ways to increase the business, and to come up with a strategy which would

put them clearly ahead of their competition by differentiating the Shell Oil brands in the eyes of consumers ‘We are big business for Shell Oil, contributing US $7 bn of revenue, and the leading retailer of gasoline, but it is a fragmented market and the mission was to profitably expand the business,’ said Sam

2 Today, after 18 months of cutting edge research, Shell Oil is on track to make buying fuel at

their 8,900 service stations clearly different with a new brand initiative Its aim is to deliver through facilities, systems upgrades, and new operating practices, a hassle-free fueling experience targeted at specific customer segments

3 Over the past few years, the company has been developing detailed knowledge of consumer

needs and attitudes, which formed the basis for the new brand initiative Team leader Dave Yard, manager of Strategy and Planning - Marketing, picks up the story ‘We began with a customer segment study of 55,000 people, who we stopped in shopping malls in six cities for a 45-minute interview into their attitudes, especially regarding driving and cars The result was that everyone wanted three things from a service station: competitive price, a nearby location and good quality fuel – something they all believed was already being delivered by the industry.’

4 This meant their buying decisions were influenced by other factors – some wanted full-serve

outlets like the old days, some chose a service station depending on whether it looked safe or not ‘There were ten different segments with different needs, and we wanted a better understanding of each of these audiences.’

5 A focus group was set up for each segment; an anthropological study was earned out, which

involved team members spending waking hours with people from each segment, watching them at home and accompanying them on shopping trips to see their buying habits; and a clinical psychologist was hired to create a psychological profile of each segment

6 The study indicated that three groups, which comprised 30% of the driving public, should be

targeted:

 Premium Speeders – outgoing, ambitious, competitive and detail orientated They drive upmarket cars which make a statement about them Efficiency rules, plus fast pumps, quick access and payment

 Simplicity Seekers – loyal, caring and sensitive, frustrated with complexities of everyday life Want simple easy transactions

 Safety Firsters – control orientated, confident people, like order and comfort of the familiar Higher value on relationships and go out of their way to stations that make them feel comfortable Prefer to stay close to cars

7 ‘The common thread was that they all wanted a faster and easier service than anything already

available,’ said Dave, ‘so the study ended and the launch began.’

8 The field organisation and Shell Oil retailers combined forces to determine how to eliminate

the little hassles that customers sometimes face, such as improved equipment and clearer instructions at the pump New innovations are currently being test marketed A new advertising campaign was launched and a sophisticated measurement system introduced to monitor satisfaction, behavior and perception of the brand ‘Fueling a car is a necessity of life and I believe we are ahead of the game – but we won’t allow ourselves to stop and be caught up.’

Exercise 1: Look at the photo Which company and industry does the logo represent?

Exercise 2: Read the title and the opening paragraph of the article What could be the focus of the reading passage?

Exercise 3: Read the text and number the different stages in the research project in the correct order

A They analysed the results, which showed that there were 10 different consumer segments

B Focus groups studied the 10 segments

C Shell Oil's Marketing team decided to differentiate the Shell brand from the other brands on the market

D Shell launched a new advertising campaign

E They interviewed 55,000 people about their attitudes to driving and cars in general F Work started on improving products and services

G They carried out a detailed study of the market over 18 months H Three groups were chosen as the target markets

UNIT 3 – MERGERS AND ACQUISITIONS

Reading strategy: Taking notes

 Underline topics and main ideas

 Underline supporting details (facts, figures, proper names, etc.)

 Focus on content words like nouns, verbs, and adjectives

 Summarize the main idea of each paragraph in the margin – don’t use complete

sentences

READING PASSAGE 1

A VOCABULARY PRACTICE: Read and complete the definitions of joint venture, merger, and acquisition using the words and phrases from the box

form collaborate market share strengths ownership accumulates

 Joint venture: Two or more companies agree to 1 _ and jointly invest in a

separate business project This type of deal allows the partners to combine their

2 _ in one specific area

 Merger: Two companies, often in the same industry, come together to 3 _

one company Companies merge for many reasons, for example, to increase

4 _ and cut costs in certain areas, such as research and development  Acquisition or takeover: One company 5 _ enough of another company’s

shares to take over control and 6 _

B READING PRACTICE

Lessons in M&A

Difficulty level * ‘A risky business with a 70% plus failure-rate.’

Some 1,500 to 2,000 mergers and acquisitions are completed per year worldwide, of which around half are in the US With deals worth astronomical sums, ($25bn for HP® Compaq, $35bn for Daimler-Chrysler, and $77bn for Exxon-Mobil,) it comes as no surprise that American executives are queuing up to go back to school for M&A classes And although it’s true that improving earnings and asset growth are not the only goals in takeovers, the fact that many mergers result in a net loss of value suggests that schooling is sorely needed!

Every year hundreds of executives attend M&A courses at prestigious institutions from New York to L.A In these ‘open enrolment’ classes, the only condition of attendance is your, or rather your company’s, ability to pay the fees: as much as $1,000 per day At least that seems to demonstrate that the B-schools know something about improving earnings!

So what do you learn in a week with America’s top finance professors? ‘We aim to equip participants with techniques based on best practice in the key areas of merger activity performance,’ says Ted Austin from the Delaney School of Business ‘We cover all aspects of the conception, planning, due diligence, negotiation and integration stages.’ Austin also draws on case studies and guest speakers to illustrate some of the most common acquirer errors: over-valuation, over-confidence, ‘under-communicating’, and underestimating the value of your newest assets - the people in the company you’ve just bought In the turmoil of integration, your best engineers and managers may be more susceptible to attractive offers from the competition

There is no doubt that M&A is a risky business With a 70% plus failure-rate, you might think that B-school professors would do well to discourage their students from launching takeover bids But you’d be wrong Austin describes some of the other (good) reasons for mergers and acquisitions: ‘I suppose the most popular reasons mentioned in CEOs’ messages to shareholders are developing synergies and making economies of scale – these are sometimes conveniently long-term goals! Other objectives may be increasing market share; cross-selling, when for example a bank can sell insurance to its existing clients; diversification, if a company is perceived to be too dependent on

a niche market; or quite simply taking on debt, the so-called poison pill, in order to make itself a less attractive target for would-be buyers.’

The bankers, brokers and lawyers will be pleased to know there are still many good reasons to merge But what about the wrong reasons? ‘They mainly involve excessive pride or arrogance on the part of management,’ says Austin ‘Wanting to build too big an empire, too quickly, and overextending the financial, commercial and human capacity of the organization These courses aim to help executives bring their CEOs back down to earth: learning to follow your head rather than your heart is the key lesson in avoiding very expensive mistakes.’

Exercise 1: Read the first two paragraphs and underline the keywords Then summarize their main ideas.

Exercise 2: Decide if these statements are True (T) or False (F)

1 _ Every year over 500 mergers and acquisitions in the US fail to deliver increased value 2 _ American executives are keen to get a share in multi-billion dollar takeovers

3 _ Executives wishing to attend M&A courses have to have an MBA

4 _ Experienced managers tell attendees about typical mistakes they have made 5 _ Because of the risks, business school professors do not recommend mergers

6 _ Shareholders can often only judge the success of their CEO’s acquisitions policy several years after a takeover

7 _ Austin says that empire-building, diversification and increasing debt are the wrong reasons for a merger

8 _ According to Austin, many CEOs embark on mergers and acquisitions for irrational, emotional reasons

4 target a company / a bid / a takeover 5 set up a share / a joint venture / a stake

6 make a merger / a joint venture / an acquisition 7 reject a bid / a stake / a share

8 sell a merger / a bid / a stake

B READING PRACTICE

Spring in their steps

Difficulty level ** Some notes for company bosses out on the prowl

After a long hibernation, company bosses are beginning to rediscover their animal spirits The $10 billion-worth of global mergers and acquisitions announced last month was the highest for any month in over three years There are now lots of chief executives thinking about what target they might attack in order to add growth and value to their companies and glory to themselves Although

they slowed down for a while because of the dot-com boom, they are once again on the prowl What should CEOs do to improve their chances of success in the coming rush to buy? First of all, they should not worry too much about widely-quoted statistics suggesting that as many as three out of every four deals have failed to create shareholder value for the acquiring company The figures are heavily influenced by the time period chosen and in any case, one out of four is not bad when compared with the chances of getting a new business started So they should keep looking for good targets

There was a time when top executives considered any type of business to be a good target But in the 1990s the idea of the conglomerate, the holding company with a diverse portfolio of businesses, went out of fashion as some of its most prominent protagonists - CBS and Hanson Trust, for example - faltered Companies had found by then that they could add more value by concentrating on their "core competence", although one of the most successful companies of that decade, General Electric, was little more than an old-style conglomerate with a particularly fast-changing portfolio Brian Roberts, the man who built Comcast into a giant cable company, was always known for concentrating on his core product - until his recent bid for Disney, that is It is not yet clear whether his bid is an opportunistic attempt to acquire and break up an undervalued firm, or whether he is chasing the media industry's dream of combining entertainment content with distribution, a strategy which has made fortunes for a few but which regularly proves the ruin of many big media takeovers

If vertical integration is Comcast's aim, then it will be imperative for Mr Roberts to have a clear plan of how to achieve that For in the end, CEOs will be judged less for spotting a good target than for digesting it well, a much more difficult task The assumption will be that, if they are paying a lot of money for a business, they know exactly what they want to do with it

If CEOs wish to avoid some of the failures of the 1990s, they should not forget that they are subject to the eternal tendency of business planners to be over-confident It is a near certainty that, if asked, almost 99 per cent of them would describe themselves as "above average" at making mergers and acquisitions work Sad as it may be, that can never be true

They should also be aware that they will be powerfully influenced by the herd instinct, the feeling that it is better to be wrong in large numbers than to be right alone In the coming months they will have to watch carefully to be sure that the competitive space into which the predator in front of them is so joyfully leaping does not lie at the edge of a cliff

Exercise 1: Read the first paragraph and underline the keywords Then summarize its main idea.

Exercise 2: Decide if these sentences are True (T) or False (F)

1 _ In the first paragraph, the author says that CEOs can no longer find targets for mergers and acquisitions

2 _ Studying facts and figures from the recent past won't necessarily help CEOs to form a successful alliance

3 _ The trend in the 1990s was for companies to build portfolios with diverse investments 4 _ The author suggests that media mergers are always likely to improve share value 5 _ CEOs need above all to find the right company to acquire

6 _ If business planners wish to avoid some of the errors of the 1990s, they should be prudent when taking risks

Exercise 3: The text contains several hunting and animal metaphors, e.g on the prowl (looking

for victims) Find the metaphors in the text which mean:

1 period of sleeping through the winter (para 1)

anticipate strategy acquire operate event

1 Operators should allot extra time to dealing with any _ problems that may arise in that time

2 Part of the value of _ planning is that it helps an organization recognize and correct its mistakes

3 A business with so much growth is sure to generate interest among potential _

4 _ control systems are designed to ensure that day-to-day actions are consistent with established plans and objectives

5 The government was _ forced to bow to public pressure and reform the tax

It is just one tiny example of the many management challenges that groups face as they enter the critical integration phase following a takeover or merger Even the most promising unions can be doomed by unanticipated culture clashes, problems with combining systems, or tension at the top between executives who suddenly find they have to share responsibility for businesses they once headed outright

Almost exactly a year ago, Mr James, who headed Dixons before the merger, met Andrew Harrison, his opposite number at Carphone Warehouse to discuss how they could work better together Mr Harrison says the deal discussions began with a vision of ‘what we wanted to achieve and a vision of what the world was going’ It sounds corny, but could be a good start Using a sample of recent US and UIC transactions, Cass Business School found that mergers and acquisitions based on clear strategic intent made up a far higher percentage of those that succeeded Dixons and Carphone had to accelerate when rumours of the impending deal leaked in February While the leak put short-term pressure on the two companies, it also allowed them to be more open with staff and suppliers The same Cass research shows the importance of open communication, noting that two-thirds of successful acquirers shared more detailed information in public announcements of their plans

By August, the two companies had gathered their 2,000 Store Managers together for training and to get to know each other Individual stores took responsibility for briefing their own staff The retail infrastructure of the two companies is quite different, with Carphone staff trained to sell mobile phone contracts, whereas Currys and PC World staff are more used to selling hardware At the moment, the staff are measured against separate in-store targets But Mr James believes 'selling intangibles' will become more important for the merged group, as it moves further into service, installation and maintenance of 'connected' homes and offices

A less obvious, but potentially significant concern is how to bring different warehouses, stock systems and information technology into line, to ensure, for instance, uniform pricing of the accessories While Dixons Carphone was able to decide not to rebrand, the merging of the two companies’ logistical infrastructure is unavoidable – and risky To differentiate between their roles, Mr Harrison takes responsibility for the growth businesses and innovation, while Mr James has day-to-day operational control of the group Mr Harrison also heads the single team that now handles all global supplier relationships

As the same former Dixons executive points out, whether the combined group can win even better terms from suppliers than Dixons and Carphone did separately will be critical to the deal’s success However, in many mergers of equals, one side eventually emerges dominant The difference in corporate mergers is that plenty of people, including staff, shareholders and customers, mind a great deal if the honeymoon period eventually gives way to chaos and acrimony

Exercise 1: Read the first two paragraphs and underline the keywords Then summarize their main ideas

Exercise 2: Choose the correct answers

1 When the two companies merged,

A all the stores included both companies B staff worked in different colour-coded areas

C Mr lames had anticipated problems with the colour coding D staff and customers received a personal message from the CEO

2 According to the article, when companies merge A few problems occur in the early stages B the sharing of responsibility must be clarified C top executives find it easier than the rest of the staff D bosses can often underestimate potential difficulties

3 Before the Dixons Carphone merger, senior managers A discussed the sharing of power

B studied various mergers around the world C agreed on future objectives

D based their plans on each company's current vision

4 According to the fourth paragraph, companies planning to merge should A share information with suppliers

B avoid rumours getting out about the merger at all costs C introduce staff to each other at the earliest point D ensure that training is provided for all staff

5 Dixons and Carphone staff

A are working towards the same goals

B need to focus on selling their own company’s products C are being trained to sell each other's products

D have different experience and skills

6 One of the main problems facing Dixons and Carphone now is A the fact that prices have increased

B the integration of their distribution centres

C the two top executives are unable to share responsibility D negotiating better deals with global suppliers