Tài liệu bổ trợ môn Tiếng anh - Đọc 3

Projects

Reading passage 1

1.1 Vocabulary practice: Match the words or expressions in bold in the article to these definitions

1 making very small changes to something so that it works as well as possible

2 range that an activity, subject, etc deals with

3 used to give an example of someone or something

5 completely stupid and without any purpose

6 makes a subject or problem more difficult to understand, especially by introducing unnecessary ideas or items

7 say that something is not allowed by the rules, especially in sports

8 resources, such as money, space, people or time, that are not being used fully

9 cry or complain about something bitterly

10 giving someone too much work or too much responsibility for a particular job

11 not working, or doing something without any specific purpose, intent or effort

Fine-Tune Your Project Schedule

Do you have a staff member sitting idly in the midst of the other busy ones? If so, your project schedule might need fine-tuning

One of the most common problems that project managers weep about is ‘unrealistic timelines’, a common consequence of clients having set their expectations too high Ironically, there are times in a project when a staff member is waiting for a colleague to finish so he can start his own task Does the project manager shout foul and blame other people? Chances are, the project schedule needs a second look

The basic foundation of managing a project is creating an efficient and realistic project schedule During project planning, the project manager is given the chance to give it some fine-tuning Given that most projects do not have the luxury of time, the project manager’s objective is to create the shortest schedule possible without sacrificing its scope and quality

If you want to deliver on time, or shorten the project duration, focus your attention on the critical path ‘When the critical path is shortened, the project is finished early When the critical path is maintained, the project is finished on time When the critical path is extended, the project is delayed It cannot be over-emphasised here that if there are any tasks in the schedule that a manager should pay close attention to, it is always those in the critical path

It is quite funny to note that some managers simply stretch the bars in the Gantt chart so that all tasks finish in parallel; doing so simply clouds the entire project schedule Doing the right things and doing them right are two important ingredients to successful project planning

Here are some right things done right:

• Estimate the tasks individually Make a list of tasks first Do not put them directly into the Gantt chart, because doing so may influence the estimates and the timeline

• Identify the task dependencies Some tasks cannot start until prior tasks are finished Obviously, you can’t install a roof over a house with no walls

• Create your Gantt chart Make sure you use the original estimates and adjust the task based on dependencies Don’t try to schedule putting on the roof and building walls in parallel

• Identify your critical path(s) Find the longest path of tasks in the Gantt chart Take note that you may have more than one critical path in your schedule; and not all tasks are part of the critical path

Slack time, as the name implies, is the time when one can relax, delay a task but still finish the project on time Managers tend to remove it from the schedule to impress their bosses or clients While this may look good on the surface, there are consequences when it is not done properly

For starters, accept the fact that slack times are a normal phenomenon in project schedules The role of a manager is to identify and minimise them Once there is acceptance, start thinking of ways to reduce slack times and improve productivity

Crashing is the process of shortening delivery time It is used when stakeholders ask for a faster delivery without reducing the scope of work For one, do not crash tasks that are strictly interdependent on one another, such as applying a second coat of paint Note that crashing works only on tasks in the critical path because reducing time on non-critical tasks will not affect the project delivery time

You can put two people to work in parallel and have the task completed in half the time Or you can assign a more productive resource who can finish the work earlier In any case, make sure you assess the risks Also, make sure you are not over-assigning critical tasks to your best team member It is mindless to assume that your best resource can work

16 hours a day for three weeks

A Read the title and look at the picture in the reading passage Write two things the reading passage may be about

B Read the headings of each section Write down what each section may be about

Section What it might be about

The critical path _ Slack time _ Crashing _

Exercise 2: Rewrite the statements, if necessary, according to the writer’s ideas

1 One minor aspect of project planning is knowing which tasks are dependent on other ones

2 Project managers often set their expectations too high, and clients complain that timelines are unrealistic

3 Periods of non-productivity or inactivity are unacceptable at any time during a project

4 All the team should devote as many hours as necessary to complete critical tasks

5 One way of speeding up a project is getting more than one person to work on a critical task at the same time

6 By focusing on key tasks, a project manager can ensure the project is delivered on time or is finished ahead of schedule

7 The project manager's aim should be to complete the project as soon as possible without compromising the original schedule.

Reading passage 2

Exercise 1: Read the sentences and find synonyms in the text for the boldfaced phrases

1 The company will be in serious difficulties if they don’t complete the project within the time schedule and cost estimates (para C)

2 BAA decided against giving the project to an outside supplier (para D)

3 Contractors generally award contracts to the companies that make the least expensive proposals (para F)

4 Suppliers who are partners have the motivation to provide quality work (para I)

5 Getting permission to build an additional runway is a much more important consideration (para J)

Exercise 2: Find the words and phrases in paragraphs F and I that are used to refer to problems and match them with their meanings (1-8)

2 situations where something is late _

8 failure to ensure that work is done correctly _

Tony Douglas is redefining how to run massive construction projects

“To the west of London is a vast building site

In the midst of a landscape of mud and men rises a vast glass-fronted box that will soon be Britain's largest freestanding building This is Heathrow airport's fifth terminal, destined to cater for 30m passengers a year It will include not just a terminal but also new road and rail links, and connections to the London Transport network

Big construction projects are always tricky, but airports bring special problems: tricky building techniques, and the need to interface with other transport links and to install sophisticated electronics to handle passengers and baggage

The man in charge of this logistical nightmare, Tony

Douglas, came to British Airports Authority via stints in the car and the commercial jet

Skimming is reading a text quickly to get a general idea of what it is about When you skim, use these tips

- Look at any images and read any captions

- Quickly read the first sentence of each paragraph

- Move your eyes quickly through the text Do not read every sentence or every word

- If the text is short, read the first and last sentence of each paragraph industries, and at Kenwood, a domestic appliance firm For three years, he ran BAA's (British Airports Authority) supply chain He took over as project manager for T5 (as the project is known) after the last boss left suddenly The risks attached to this huge project are so great that BAA has been forced to tackle it in novel ways If this giant endeavour is not completed on time and on budget, it could take the whole company down

First, BAA is unusual in running the project itself Mr Douglas insists that outsourcing to a big project management group such as Bechtel would cost more, not less Second, as much as possible of the construction is taking place off-site This reflects the site's physical constraints: it has only one entry point, through which a 12-metre load must move every 30 seconds for a period of four years And the site has capacity for no more than two days of storage The solution, he says, has been some “car industry logistics” - a large investment in computing and training that no individual supplier would have made

But the biggest novelty is the T5 Agreement This is a contract with the project's main suppliers, companies and subcontractors like Balfour Beatty and Bombardier, which aims to minimise the conflicts and cost-cutting that usually plague big building works

Usually, contractors hold a beauty parade and take on the suppliers who bid lowest The suppliers rely on glitches and delays to bump up the cost Every time something goes wrong, legal haggling breaks out among suppliers and between them and the contractor, and work shuts down for weeks on end With construction behind schedule, time runs short for the final installation and testing of the electronic systems

Under the T5 Agreement, BAA carries the risk, putting a precautionary sum into a fund that will be shared out among all its suppliers if the project finishes on time and budget The effect, says Mr Douglas, has been to change the whole pace and culture of the project, allowing teams of employees from different suppliers to work together

As one example, he cites the elegant steel air traffic control tower When the first two sections were engineered, they were out by 9mm “Normally,” says Mr Douglas, “the manufacturers would have blamed the structural engineers, who would have blamed the steel fabricator.” At first, they did just that Then Mr Douglas said, “Guys, this is my problem,” and sent them off to find a collective solution

Passing risk to suppliers chosen by beauty parade increases the risk of corner-cutting And, as T5’s suppliers are partners who will work on future projects, they have an incentive to do a good job If something goes wrong later, there may be a debate about negligence, but not about which supplier is to blame

If T5 works so well, why isn’t BAA building airports elsewhere? A bigger priority, at least for now, is to get permission to build an additional runway at Stansted, London's third airport But ultimately, success will surely point to a spin-off business that can build other big projects safely and cheaply

A Read the title and look at the picture in the reading passage Write two things the reading passage may be about

B Read the heading “New departures” Write down what this section may be about

Exercise 2: Read the text and find the information to complete the following lists

1 The principal problems related to building airports _ _

2 BAA’s options for managing the project _

3 The specific constraints imposed by the nature of the site _

4 The major risks usually involved in managing a project like T5 _

Reading passage 3

3.1 Vocabulary practice: Match the words found in the text with their definitions

1 distinctive A give support to an opinion, idea, or feeling, and make it stronger

2 franchise B the group of people who work in a company, industry, country, etc

3 slip C force someone to experience something very unpleasant

4 overhaul D working within a company or organization

5 workforce E a right to sell a company's products

6 in-house F easy to recognize because it is different from other things

7 payroll G completely change a system so that it works more effectively

8 reinforce H a person, group, or organization that you compete with

9 rival I go down in value

10 subject J the total amount of wages paid to all the people working in a particular company or industry

Ice-scream equipment manufacturer takes a rocky road to world domination

A Whether cone or cup, soft-serve or gelato, the odds are good that the ice-creams bought by sweltering sightseers and beach-goers across the northern hemisphere this summer came from machines made by Carpigiani, a private Italian firm In more than 100 countries, the firm's distinctive blue and white emblem has come to stand for the very Italian art of making ice-cream Several large franchise chains such as Cold Stone, which has over 1400 stores in America and East Asia and expects a further 70 to open this year, depend on Carpigiani’s machines

So do fast-food chains like Pizza Hut and McDonald's The firm has won around half of the global market for ice-cream makers, according to Gino Cocchi, its managing director No wonder, then, that Carpigiani is making money by the scoopful

B But Carpigiani's success has not always been assured It stagnated for much of the decade after the death in 1982 of Poerio Carpigiani, a smart marketing man and one of two brothers behind the firm (The other, Bruto, who designed their first machine, died in 1945, one year before the company was founded.) Complacency had set in Quality fell, complaints rose and Carpigiani’s share of world sales slipped from 25% in 1980 to 15% in 1990

C Mr Cocchi, who was brought in from a sister firm that year, resorted to the sort of overhaul that many struggling Italian companies now face “We had to relearn the importance of customer service, of quality and of being ahead of competitors with new products,” he says He cut costs and simplified the Carpigiani’s structure by cutting its 1,000-strong workforce by half He scrapped television advertising, always an extravagance for a machinery manufacturer Carpigiani also resorted to outsourcing Its four factories (two in Italy, one in Spain and one in America), which produced about 40,000 machines last year, are essentially assembly lines, as few parts are made in- house any more

D The introduction of a system for quality control also helped get Carpigiani back on track It was the first firm in the business to win a major industry accreditation A renewed emphasis on research and development was especially important, since poor materials caused many of the firm's problems Carpigiani’s technical department had

10 employees in 1990 when the payroll at its factory and headquarters in Anzola Emilia was 300; it now has 50 out of a payroll of 250 It’s Gelato University teaches the nuances of ice-cream making, and collaboration with traditional universities reinforces its internal research The university in nearby Bologna, for example, is helping it to develop special steels, composites and plastics

E All this helps Carpigiani meet stringent regulations for machines that make food in countries such as America The firm generates about one-third of its income there, with its 85% share of the American market for machines that make posh Italian ice-cream and 30% for machines that make soft ice-cream Hygiene is fundamental Machines that minimise intervention by human hands by cleaning themselves, for example, are more expensive, but help to ensure that the ice-cream they produce is safe to eat

F Cost-cutting, quality control and technical innovation, in turn, have helped Carpigiani fend off cheaper Chinese rivals, many of which have copied its designs It is even building a new factory in China, to make machines for the local market Globalisation may have subjected Carpigiani to stiffer competition, but it is also helping to propagate a taste for genuine Italian ice-cream among China's swelling middle class

Exercise 1: Look at the picture, read the title and the line printed immediately below it, then write down what you think the passage might be about

Exercise 2: The following questions refer to information given in paragraphs A-F Which paragraph(s) are referred to in each question?

1 _ How did Gino Cocchi turn the company around?

2 _ What led to Carpigiani increasing its market share in the US?

3 _ Which factors caused Carpigiani’s decline?

4 _ What are the positive and negative impacts of globalisation on the company?

5 _ What do we know about the company’s current situation?

6 _ What does Gino Cocchi say the company had forgotten?

Teamworking

Reading strategy: Highlighting and annotating

Highlighting: Decide the purpose of your highlighting Then highlight, underline, or circle information in a text such as:

• the main idea or topic of a paragraph

• phrases that summarize the information

Use different-colored highlighter pens for different types of information For example, use one color for main ideas and another for details

Annotating: Read a paragraph and decide what is important Then write brief notes in the margin of the page You may use abbreviations such as these:

1.1 Vocabulary practice: Complete the sentences below with the words in the box You may need to change the form of the words teaming facilitator assign franchise collaborate legitimate co-ordinate commitment

1 We have on many projects over the years

2 We have 20% of our budget to the project

3 All lenders issue a letter in connection with a mortgage loan

4 They brought in an outside to lead the discussions

5 Good increases both efficiency and morale

6 Each store is owned by an individual who pays a fee for the

7 It is her job to the work of the teams

8 The army must give power back to the government

We're Doing It Our Way

After 13 years of working nine to five, Toby and Rebecca Ruddle have bought a franchise and are becoming independent

When my wife and I open the doors of our own business, a gourmet gift shop, next month, we will be leaving 13 years in secure office jobs behind We are finally giving up the safety of a regular income to take the risk, to fly or to crash 1

Since we met in 1998, Rebecca and I have been captivated by the allure of escaping the confines of traditional office life Over the years, our shared passion for entrepreneurship has led us to explore a myriad of exciting ideas, ranging from ventures in retailing to venturing into the dynamic world of dotcom start-ups We have brainstormed everything from retailing to dotcom start-ups to British-style hotels in the US In our quest for the ideal business endeavor, we've diligently scoured potential premises, meticulously sourced suppliers, and conducted extensive market research But until we discovered franchises, one thing always held us back: fear

Starting up your own business means taking a massive risk; 70% of all new businesses fail in the first three years Our survival chances were slim, and that safe regular income that paid the mortgage didn't seem so bad after all 2

Then we started looking at franchises I was skeptical Many didn't seem legitimate, advertising earnings They leave you to sell an unsellable product while the franchiser takes your profits A little research, however, showed that if you were careful, this did not have to be the case 3 Despite the national or global nature of the company, each shop is a small business And the failure rate of legitimate franchises is a mere 10%

There are drawbacks, of course You have to pay the franchise a start-up fee and a percentage of your profits for the use of their concepts and trademarks, and you have to follow their plan 4

When we went to the British Franchise Exhibition at Wembley to find a franchise last April, we found the range was incredible However, after years of working in jobs in which we had little interest, we wanted a business for which we would have a passion

The Company was called Oil & Vinegar The idea, John Blogg, the co-founder, explained, was a gourmet gift shop where the customer buys luxury foods such as truffles, stuffed olives, herbs and spices and kitchenware all beautifully presented and gift-wrapped

6 The company was now looking at the British market

In just one short month, we'll be unlocking the doors to our very own Oil & Vinegar shop, marking a significant milestone as it becomes the inaugural establishment of its kind in England It's important to acknowledge that, despite our excitement and determination, an undercurrent of fear still courses through our veins The unknown landscape of entrepreneurship, the challenges of introducing a novel concept into the market, and the weight of responsibility all contribute to our apprehension Nevertheless, we are resolute in our decision to move forward Yes, the fear is undeniably present, but our unwavering dedication and shared vision propel us to embrace this thrilling adventure

So to the future Rebecca and I have quit our decently paid, safe jobs When we open in a month's time, it will be the first Oil & Vinegar shop in England (the first British shop opened in Glasgow in July) Are we still scared? Very Are we doing it anyway? Definitely

Exercise 1: Follow these steps to highlight and annotate the following paragraph

● Highlight in one color (or circle) the main idea of the paragraph

● Highlight in another color (or underline) the key details

● Underline an example and write a note in the margin that identifies the specific example

Since we met in 1998, Rebecca and I have been captivated by the allure of escaping the confines of traditional office life Over the years, our shared passion for entrepreneurship has led us to explore a myriad of exciting ideas, ranging from ventures in retailing to venturing into the dynamic world of dotcom start-ups We have brainstormed everything from retailing to dotcom start-ups to British-style hotels in the US In our quest for the ideal business endeavor, we've diligently scoured potential premises, meticulously sourced suppliers, and conducted extensive market research But until we discovered franchises, one thing always held us back: fear

Exercise 2: Choose the best sentence (A–G) to fit each of the gaps in the article There is one extra sentence

A However, a 90% success rate encouraged us to start looking more closely

B I was surprised to learn that some household names are franchises, such as Bodyshop, McDonald's, and Thorntons

C The shops had taken off in their native Holland and were spreading across Belgium and Germany

D We have bought into estate agencies, interior designers, coffee shops, and car repairers, but nothing caught our imagination until we came to the last stand

E A friend told us that franchises were extremely expensive and that we would do better to invest in something else

F We fell into a pattern of becoming discontented with our jobs, looking into going it alone, getting scared, and dropping the idea

G It is terrifying and exciting

2.1 Vocabulary practice: Match the definitions (A–H) with the vocabulary (1–8)

1 assign A to plan, organize, or arrange the parts of something

2 existing B the act or process of making an exact copy of something

3 structure C to give somebody a particular job to do

4 consult D to act or work together for a particular purpose, or to be helpful by doing what someone asks you to do

5 duplication E things that you say that express your admiration and approval of someone or something

6 external F used to refer to something that exists now

7 praise G to get information or advice from a person, book, etc

8 cooperate H of, on, for, or coming from the outside

Taking on a leadership role for the first time is tough There is always pressure on you to do the right things, and to be seen to be doing them But, unless there's something that needs sorting out urgently, your first few months in the role will be better spent in understanding the people and the situation One easy mistake to make is to think that you, as a leader, the top person with the top salary, have the sole responsibility and the know-how to solve every single problem yourself And you can be sure that others will encourage you to think that way since it takes the pressure off them, and satisfies their natural urge to leave the solving of problems to others Instead, try using existing resources to identify the current position and the ways to change it for the better

Start by consulting widely, beginning with the people who now report to you directly, as these are most likely to be the people with the expertise and experience to tackle some of the problems that are identified A series of one-to-one meetings, though time- consuming, will be worthwhile, especially if they are structured to provide you with the information you need to make decisions later on Two useful questions are: 'What do you see as the biggest problem facing the department questions are: 'What do you see as the biggest problem facing the department now?' and 'What one change would make the most difference to our success?' From their answers, you can build up a picture of your people, as well as of the issues Some will consider the needs of the department as a whole, while others may just concentrate on their own particular concerns You will also have had personal contact with each person and can judge who you will work well with in the future

Overlap in their responses is a useful pointer to the priorities needing your attention

If there is no duplication in problems or solutions, it means that you have inherited a disunited group which will need some team-building and restructuring If no clear picture emerges, it means that your people are part of the problem: you will need to make them aware of this

At the same time, consult with customers Be open to criticism and to praise Compare the views of your department with this external viewpoint and see where the biggest gaps are This will help to identify areas for action

Technology

Making inferences about a text means that you use your knowledge to make a logical conclusion about the information that is given

“Brene Brown, Ph.D, a social scientist and research professor, has been doing extensive research over the past 17 years on what she calls our “inextricable human connections” and on true belonging.”

• Brene Brown has the training and the knowledge to conduct and evaluate research

• She’s very interested in human connections and true belonging

Making inferences helps you improve your comprehension and understand a text more deeply

• Your inferences should always depend on the author’s words first and your experience second

• Make sure your inferences are not contradicted by statements that are made later in the text

1.1 Vocabulary practice: Match the nouns (1-9) with their meanings (A-I)

1 design A a piece of equipment used for a specific task

2 model B an area where mobile technology can operate

3 subscriber C a particular type of machine

4 laptop D software or information that can be moved from one electronic device to another

5 appliance E a device to read information

7 network G a person paying to hire a telephone line

8 coverage H a set of connected technologies or systems

9 download I the appearance of something because of the way it has been planned and made

The March of The Mobiles

Is there no limit to the potential market for mobile communications?

When it comes to new designs for mobile phones, the model that was announced last week by a start-up based in Arizona really goes to the limit Shaped like a bone, it operates only as a speakerphone, picks up automatically when called, is mounted on a red strap for wearing around the neck, and is labelled with a large paw - because the PetsCell, as it is called, is a mobile phone for dogs Pets Mobility, the firm behind this astounding device, boasts of “connecting every member of your family - even your pet”

This is not quite as ridiculous as it sounds Indeed, you can expect more examples of this kind of thing The reason is that the mobile-telecoms industry has become a victim of its own success With sales of 600m units a year, mobile phones are simultaneously the world’s most widespread communications devices, computing devices and consumer electronics products Almost everybody in the developed world now has one, and growth is booming in the developing world, too China is the world’s largest market for mobile phones, and Africa is the fastest-growing In the least developed parts of the world, entrepreneurs such as Bangladesh’s “telephone ladies” rent out mobiles by the minute, putting phones into the hands of even the poorest The much-quoted statistic that two-thirds of the world’s population has never made a phone call is no longer true

As a result, the industry is frantically looking for new sources of growth, since it will not be able to rely on subscriber growth for much longer And in the developed world, it cannot rely on subscriber growth even now Hence the logic of selling phones for dogs Another untapped market is phones for infants: Communic8, a British firm, has launched the MyMo, a simple phone aimed at four- to eight-year-olds, while SK Telecom in South Korea offers a similar device, i-Kids, with built-in satellite tracking And even when every human, cat and dog has a phone, there are always cars, laptop computers, household appliances and industrial machinery Install a phone and some sensors inside a bulldozer, and it can call a mechanic before it goes wrong DoCoMo, Japan's leading mobile operator, estimates that the potential market for mobile phones in Japan is at least five times the number of people

Another approach is to encourage people to use their existing phones more than they do at the moment Third-generation networks, which will offer lots of extra capacity, will lead to lower prices and, the industry hopes, more phone calls Similarly, there is much excitement about “fixed-mobile convergence”, a technology that allows people to use their mobile handsets to make cheap calls at home over fixed-line networks - again, it is hoped, boosting usage Extending mobile coverage, so that subscribers can make calls wherever they are, is another tactic Coverage is already available in underground railway networks in many cities, and within two years it will be extended into what is many people's last remaining phone-free environment: aeroplanes

When everyone on earth is on the phone all day long - calling their dogs, cars or washing machines, if not each other - will the market finally be saturated? No There are already plans to stream music, video and other downloads to mobile phones in the dead of night, when networks are almost empty Even being asleep, it seems, need not prevent you from using your phone Evidently, the industry has far to go before it reaches the limits of mankind's desire to communicate

Exercise 1: Read the text and answer the questions

1 What are the features of the new mobile phone for dogs?

2 What does the writer mean when he says the mobile phone industry is a victim of its own success?

3 How are some countries allowing poor people to use mobile phones?

4 How can the potential market for mobile phones in Japan be at least five times greater than the population?

5 Why is it good to make use of people's phones when they are asleep?

Exercise 2: Tick the statements that can be inferred from the passage

1 Dog owners are the target customers of PetsCells

2 Mobile phones play a crucial role in people’s daily lives

3 Many mobile phone companies would like to expand their market to China

4 Mobile phones are getting less popular in Africa

5 Many Japanese people use services offered by DoCoMo

6 People were not able to make phone calls in the underground railway networks until recently

7 Some people use their smartphones 24 hours a day

8 The demand for mobile phones will decrease in the near future

2.1 Vocabulary practice: Complete the sentences below with the words in the box You may need to change their forms output Senior budget corporate boost exceed overhauled pressure-cooker cope with analyst

1 By the spring of 1989, more and more bills put Perry in a financial _

2 Ford plans to increase its car _ next year

3 The company has had to cut £46,000 from its advertising _

4 Entry-level budget _ may receive some formal training when they begin their jobs

5 The _ members remained in Shelley and Kirkburton but a new branch was now established further south

6 Local authorities have to _ the problems of homelessness

7 Legal requirements state that working hours must not _ 42 hours a week

8 They promised to reduce taxes and _ the whole welfare system

9 A company should trust its employees and have an open _ culture

10 Greater consumer access to the Internet has _ electronic retailing

A In recent years, three forces - downsizing, globalization and the need for speed - have combined to change the work environment What used to be a comfortably busy routine has become a non-stop workshop in which most people feel they can never stop to take a breather

B The result of downsizing is a mad dash to cram more work into fewer people If six people are doing the work that ten used to do, and at the same time are expected to meet or exceed previous budget and productivity targets, something has to give To this pressure-cooker environment, in which everyone is supposed to ‘do more with less’, we can add the globalization trend that has swept through corporate boardrooms To the extent that global competitors have a lower cost structure —which many do because their labour costs are so much lower — US and European firms have yet another reason to keep budgets and headcounts lower The final ingredient in this mix is fierce competition, which has resulted in the pressure to do everything faster

C One-way corporate leaders justify the quest for efficiency and speed is to point to the multibillion-dollar investments that have been made in IT equipment and services The new PCs and corporate networks are supposed to boost productivity and profits, and will, in fact, allow their companies to ‘do more with less

D This is true But another truth has become buried under the technology sales pitches Achieving those gains will happen only after a significant initial investment in training and ‘system integration’ to make sure that all the pieces connect well with each other Pouring thousands of PCs and miles of cables into a corporation is a great way to waste money unless the systems and processes that technology is meant to automate are overhauled Unfortunately, this has all become somewhat irrelevant The expectation is that more technology means more speed and more output per employee — and when those results don't always magically occur, the only way to produce them is to require people to work longer hours

E Oddly, the same thing happens even when the technology delivers as promised Consider the case of presentation software such as Microsoft PowerPoint, which has become a standard office tool Before PowerPoint, a graphics presentation would have to be created by a graphic artist ‘With PowerPoint and its software cousins, just about anyone can sit down at a PC and, without much training or practice, produce an on- screen presentation or a slick set of slides, handouts or transparencies that look fully professional

F On the one hand, this software is actually a productivity tool — it takes only hours to do what might have taken days previously, and the result is just as good, if not better But it doesn’t stop there Now everyone sees how easy it is to use these programs, they are used more and more Thus, a senior manager who wouldn't have considered asking an analyst to spend a couple of days working up a slide presentation using Stone Age technology, doesn't hesitate to direct the same analyst to prepare that presentation using the desktop PC and PowerPoint The goal is for this analyst to save time by using the software; the likely outcome is that he or she spends more time on presentations and has less time available for other aspects of the job

G If you're starting to think that, instead of working on a plan to cope with pressure, tight deadlines and non-stop work, it’s time to polish up your résumé and look elsewhere, I'm afraid I have some bad news The grass really isn't much greener anywhere else — or at least, not a whole lot greener

Exercise 1: Choose the statements that can be inferred from the passage

1 In the past, workers generally loved their workplace more

2 Companies now are obsessed with expanding their activity to overseas markets

3 Companies in the US and Europe are less satisfied with their salary than workers in other parts of the world

4 Business leaders generally think IT is among the top priorities

5 The investments in IT may put more workload on workers

6 The author mentions Powerpoint to emphasize the beneficial aspects of this tool

7 There is not much difference in the level of stress people in different workplaces have to suffer from

Exercise 2: Read paragraphs A-D Choose the correct summary A-D for each paragraph

A _ How several factors have combined to make the workplace more pressurized

B _ Poorly planned IT systems generate more work, not less

C _ Managers see investment in information technologies as a productivity solution

D _ Working conditions have become uncomfortable in recent times

3.1 Vocabulary practice: Match the words/phrases (1-7) with their definitions (A-G)

1 influx A a complete change in someone or something

3 poach C large quantity of people/things arriving at the same time

4 rigid D group of people with similarities

5 transformation E try to attract employees from other companies

6 tribe F attractive but less important than other factors

7 window dressing G limiting someone’s freedom to do what they want

Banks Are on The Hunt for Tech Veterans

When Ron Knapp joined Citigroup's FinTech* unit as head of technology, he sent a note to his new managers with a suggestion: 'Given what we're trying to achieve, I think I should come in wearing my boots and jeans.'

Mr Knapp joined Citi FinTech to build a team of technology specialists He spent sixteen years at Amazon, including working in software development, but now he has joined a tribe which he says will become increasingly valuable to big banks: established tech professionals

Advertising

Reading strategy: Understanding comparisons and contrasts

Writers compare and contrast information in order to examine the similarities and differences between two or more things

• Phrases that signal similarities: all (of), both, each, similarly, like, and likewise

• Phrases that show differences: in comparison with, by comparison, in contrast, and differs from

• Comparisons can also be made using comparative and superlative adjectives: better/worse, more/less than, the best/worst

1.1 Vocabulary practice: Match the definitions (A–H) with the vocabulary (1–8)

1 exhibition A knowledge or understanding of a particular subject, situation, or thing

2 demonstration B a person or a company that helps pay the costs of something, usually in order to advertise their products

3 sponsor C better, more powerful, more effective etc than a similar person or thing

4 endorsement D sold or used with other products

5 awareness E a collection of things that are shown to the public; an event at which these things are shown

6 superior F a statement made in an advertisement, usually by somebody famous or important, saying that they use and like a particular product or service

7 promote G to help sell a new product, film etc by offering it at a reduced price or by advertising it

8 complementary H an act of showing or explaining a product or service, especially a new one

Classification of Advertising on The Basis of Consumers Classified advertising

This is a form of advertising where small messages are grouped under a specific heading or classification such as employment, real estate, automobiles, and others These are very common in newspapers, magazines, and other periodicals 0 B These ads are typically short, as they are charged based on per line These are not as widespread as large display ads They do not include any graphics

Display advertising basically appears on websites These advertisements can be in different formats and they have items such as text, images, flash, audio, videos, etc The first banner display on the Internet was on October 27th, 1994 1 eMarketer has estimated that Facebook and Twitter may account for 33% of display ad spending market share by 2017

Cooperative advertising is an agreement between a manufacturer and a distribution chain member (distributor, wholesaler, or retailer) The manufacturer contributes a fixed sum or shares a certain percentage of the member’s advertising It can also be an agreement between two or more marketers who have complementary products (such as footwear and socks) or different seasonal sales cycles (such as winter coats and raincoats) to promote or sell each other’s products with their own

Cooperative advertising serves as a unique and powerful tool for small businesses, especially for those who have limited means to support the advertising campaigns required for the survival and success of the business 2 Such kind of advertising helps small companies to link their names with the ones that are nationally recognized Smaller companies or start-ups use this type of advertising to attract loyal customers of popular brands

3 Small business houses should completely understand the commitment involved before finalizing the agreement Sometimes huge corporate giants may demand a high level of quality or a certain style of advertising which may be difficult to achieve on a limited budget Figure 2.1.5 shows an example of cooperative advertising between Coca-Cola and McDonald’s In the case of co-operative advertising, sharing the cost of advertisement for their mutual benefit is a common practice

Product advertising is any form of communication about the promotion of any product or service through which potential customers are convinced to purchase the product The basic objective of product advertising is to increase brand awareness and demonstrate the differences between the product and its competitors A good advertising campaign educates the potential buyers on why they might need the product, how they can use it, and what benefits they will receive

Market research is usually conducted to obtain information such as the requirements of the target audience, factors which influence the buying decisions, and preferred media to distribute the information about the product 4 For example, as shown in figure

2.1.6 Heinz uses superior quality tomatoes to prepare ketchup than their competitors

5 The basic idea here is that the more times an advertisement is projected, it stays at the top of the mind consciousness of the customer, and they are likely to make a purchase decision This is an effective way of advertising; however, it’s a costly affair for the sponsor to successfully pull the target audience 6 The small businesses face budget constraints when they try to imitate big brands in this type of marketing Direct response marketing evokes an immediate response and compels the target audience to take some specific actions Direct response advertising is trackable, measurable, and targets a specific audience

Exercise 1: Choose the best sentence from below to fill each of the gaps For each gap 1-6, mark one letter (A-G) Do not use any letter more than once

A The collected data is then used to write an advertisement message and convince potential buyers to buy the product

B Classified advertisements are cheaper in comparison to large display ads used by businesses

C The joint efforts of marketers in such cooperative agreements broaden the scope of distribution and the quality of advertising campaigns

D The basic objective of display ads is to deliver brand messages to the site visitors

E Given so many benefits, cooperative advertisements have a few drawbacks as well

F The time and expenses involved in such advertisements are not a problem for big brands as they have massive advertising budgets and product lines are planned in advance

G Direct response advertising attempts to remind customers about the products and services offered by a particular brand

Exercise 2: Complete the table and sentences below There are some examples done for you

This type of advertising is commonly found in newspapers, magazines, and periodicals

Display advertising primarily appears on websites, specifically on the Internet

(0) Cooperative advertising vs End product advertising:

- Cooperative advertising: in cooperative advertising, manufacturers and distribution chain members share advertising costs, often benefiting small businesses

- End product advertising: end product advertising focuses on promoting a specific product or service to potential customers, emphasizing brand awareness and product differences

1 Cooperative advertising vs Direct response advertising:

2 Cooperative advertising vs Classified advertising:

3 Cooperative advertising vs Display advertising:

4 End product advertising vs Direct response advertising:

2.1 Vocabulary practice: Complete the sentences below with the words in the box profit margin going rate recommended retail price overheads price war break-even point

1 ‘Looking at the competition, €25/month seems to be the

It’s what most people are charging

2 ‘We can sell the modems for €100 each They only cost €20 in total to produce and distribute, so we would have a healthy

3 ‘€59.99 is a good We can suggest that stores sell it for that much, but if they want to use it as a loss leader and sell it for less, then that's fine too.’

4 ‘What I'm afraid of is an all-out , when our company and the competition are all fighting for the same customers We don't want to cut our prices so low that we go out of business

5 ‘We need to establish our _ When does the amount we're earning cover our costs?’

6 'Luckily, we have low Our rent is very low, and we got a great deal on our office equipment."

When Unilever wanted to launch its

AXE deodorant spray for men in the

United States, it combined young men's natural interest in pretty girls with the attraction of a great house party The idea was simple: boy buys AXE, boy meets girl, boy smells nice, girl likes boy

The product, which was already popular in other parts of the world, was launched in the United States with a powerful promotional plan to make it appeal to American male youth culture Using the slogan the AXE effect the company used a number of marketing ploys to bring the product to the public's attention These included an online game, and free samples of the deodorant, often given by attractive female models in retail stores, point- of-sales displays, media advertising, and public relations (PR) all of which hyped the centerpiece of the promotion: a once-in-a-lifetime party at a Florida mansion

Unilever began the December before by direct-mailing millions of college students and young males aged between 11 and 24, who received free samples and information about the event, which was advertised as the AXE House Party: lots of girls, rock stars, and a beach house A radio advertising campaign and online publicity called for young men to log on to the Internet to play a video game on the AXE website Participants had to apply their dating skills to score points If the player reached a certain level he entered a lottery to win a trip to the party

AXE focused on the intrigue and discovery of the party Leaflets similar to ones made for a party by a group of college students were posted in relevant locations such as men's toilets at nightclubs There were also print ads in Rolling Stone and Spin magazines

'It was all about getting into the mind of the 20-something guy,' says Mary Drapp, manager of strategic alliances and sponsorships for Unilever and they succeeded in doing that Their website received over 943,000 hits, or 20% more than the goal Some 100 lucky young men were flown in to attend the party held near Miami Hundreds of girls were invited to dance and enjoy musical acts from Nelly Andrew WK., Nicole and the Riddlin Kids Guests could use the pool, go to a game room or play air hockey, cards or billiards

The party was not only an epic celebration but also a groundbreaking marketing feat

Brands

Bias means a strong feeling for or against something, which is normally used to influence a reader’s opinion It is important to recognize a writer’s bias to better evaluate his or her arguments and ideas Some techniques include

• Choosing descriptive language and vocabulary that states or implies the author’s bias

• Expressing direct criticism of the opposing point of view

• Using adverbs like in fact, in reality, and indeed to emphasize particular points

• Claiming that the reader shares the author's bias by using pronouns like we and our

Exercise 1: Find the synonyms in the text for the following words and phrases

(para A) _ corporation, group of diverse firms

(para A) _ stores, points of sale

(para B) _ signs of importance or wealth

(para D) _ plans of action, strategies to succeed

Exercise 2: Find the adjectives in the text that describe the following

1 Gucci's position in the luxury goods market (para A)

2 the first Gucci shop (para B) _

3 the type of status Gucci acquired (para C)

Gucci has come through challenging times to see its fortunes rise again

A The name Gucci conjures up an image of exclusivity and prestige, an Italian brand of quality As one of the world’s leading purveyors of personal luxury goods, Gucci stands for more than just fine quality shoes or suits The Gucci Group is now a multi-brand conglomerate, with a collection of high-fashion brands like Balenciaga, Stella McCartney, Boucheron and Yves Saint Laurent, YSL Beauté, Bottega Veneta, Bédat

& Co and Sergio Rossi under its finely crafted umbrella Gucci sells its brand of leather goods, shoes, clothes, ties, scarves and jewellery in directly operated stores around the world as well as outlets licensed to sell their products 1

B The beginnings of the Gucci empire go back to Florence, Italy, in 1921, when Guccio Gucci opened an exclusive leather shop He understood the importance of building a reputation for his brand and did so by putting an identifier on his special edition creations He concentrated on producing fabulously high-quality products, making them status symbols synonymous with luxury

C After Gucci died, his sons Aldo and Rodolfo took over the management and led the brand to iconic status in the 1950s They succeeded extremely well in promoting the brand to the rich and famous 2 The Guccis took note of this popularity and expanded aggressively, opening stores in glamorous locations such as London, Paris and Palm Beach However, for all the glamour Gucci represented externally, there were increasing disagreements within the family Aldo and Rodolfo each had two sons who began pulling the brand in different directions in the eighties, and decisions made about product distribution affected the brand's reputation 3 Eventually, retailers were selected more judiciously and the brand's reputation returned However, during this period of disagreement over distribution, the brand went from headlines to sidelines, perceived as an old standard in the fashion world

D Since then, smart leadership has driven the Gucci brand to more visibility and success than ever before 4 Tom Ford was responsible for the design of all product lines from clothing to perfumes and for the group's corporate image, advertising campaigns and store design from 1994 to 2004 It was his elegant vision that placed this once-staid brand back on the backs of the wealthy Known today as one of the world's leading visionaries in fashion, Ford has accumulated a great number of accolades on his way to the top

E Italian-born attorney Domenico De Sole was the other half of this dynamic duo By integrating elaborate advertising and communication campaigns with a marketing strategy that placed the focus on Gucci's core leather products and ready-to-wear, De Sole brought the much-needed attention back to the quality of the brand while streamlining the back-end of the business and expanding the network of directly operated stores He has received as many prestigious accolades as Ford, and his efforts were recognised by the European Business Press Federation, which selected Gucci as European Company of the Year from among 4,000 other companies

F Strong leadership and an image revamp literally breathed life back into the Gucci brand Even so, the rocky economic climate of the past few years has made for a really bumpy ride for the luxury goods market 5 Despite the numbers, however, analysts still cite Gucci as one of the stocks with the greatest upside potential, giving it plenty of room for further development

Exercise 1: Read the text and complete it with the sentences below

A A strategy to increase distribution expanded the market to thousands of retailers, detracting from the brand's essence of exclusivity

B Fashionable celebrities such as Grace Kelly and Audrey Hepburn were counted among the enthusiastic collectors

C Its watches alone number more than a dozen distinct models and are exclusive items, generating millions in revenue

D The Gucci group was amongst those reporting far fewer profits during that period

E The two men responsible for this revival were the creative director Tom Ford and the president/CEO Domenico De Sole

Exercise 2: Read the text again and put these events in the correct order

A _ Guccio Gucci's grandsons took over the business

B _ The rich and famous started buying the brand

D _ The first shop opened in Florence

E _ A new image campaign was launched

F _ Stores opened in London and Paris

Exercise 3: Read the sentences from the passage Underline the language that shows bias

1 As one of the world’s leading purveyors of personal luxury goods, Gucci stands for more than just fine quality shoes or suits

2 He concentrated on producing fabulously high-quality products, making them status symbols synonymous with luxury

3 They succeeded extremely well in promoting the brand to the rich and famous

4 However, for all the glamour Gucci represented externally, there were increasing disagreements within the family

5 However, during this period of disagreement over distribution, the brand went from headlines to sidelines, perceived as an old standard in the fashion world

6 It was his elegant vision that placed this once-staid brand back on the backs of the wealthy

7 Known today as one of the world's leading visionaries in fashion, Ford has accumulated a great number of accolades on his way to the top

8 Despite the numbers, however, analysts still cite Gucci as one of the stocks with the greatest upside potential, giving it plenty of room for further development

2.1 Vocabulary practice: Match the words/phrases on the left with their meaning on the right

1 run A the process of giving things out to several people

2 distribution B to do something in the same way as someone else

3 guide C a natural tendency to behave in a particular way

4 autonomy D two people who perform together

5 emulate E to be in charge of a business or activity

7 instinct G the freedom that an organization has to control itself

8 capital H a system or method used to send or obtain something

9 channel I to show the right way to do something

10 duo J money used to do a business

Five Simple Rules for Building a Blockbuster Brand

When Lev Glazman and Alina Roytberg founded their company in 1991, they never imagined that one day their cosmetics brand Fresh would be rubbing shoulders with companies like Louis Vuitton, Christian Dior and Moét & Chandon

But today, with 15 stores, 400 retail distribution outlets and 180 employees worldwide, Fresh has matured into an internationally known brand Sold in Barneys and other high-end retail stores, Fresh enjoys the backing of majority owner LVMH Group, the Paris-based luxury goods marketer

Glazman and Roytberg hired a CEO to run day-to-day operations in 2007, but remain co-presidents and continue to guide Fresh’s creative and product development strategies The husband-and-wife team owns a minority stake in the company and works closely with LVMH’s corporate management ‘Having LVMH as our strategic partner gives us the opportunity to open new markets and to develop R&D,’ Glazman says ‘We still have complete autonomy in terms of creative control and continuous development of the brand.’

Many entrepreneurs would like to emulate their success story Here are the couple's five simple rules for product and brand development

Growing up in St Petersburg, Russia, Glazman saw that women like his mother yearned for beauty products in their Soviet-era homeland ‘She would buy a lot of things on the black market, and if she'd got caught, she would have gone to jail," Glazman recalls

‘But by introducing me to things that weren't so available, she created in me a passion for fragrance.’ When he later moved to the US, he met Roytberg, an aspiring fashion designer, and married her in 1990 With a small investment from friends and family, Glazman finally realized his passion in 1991, when he and his wife opened their first store, Nuts About Beauty, in New York Two years later, they changed the name to Fresh

Initially selling products made by other companies, the couple decided to launch their own line of soaps in 1992 ‘Soap was the easiest to start with because we could create the formula,’ says Glazman, who initially found a manufacturer in the South of France to produce small batches Fresh got its big break when its soaps were picked up by Barneys department store in 1994 and celebrities began singing their praises Before long, the company had 500 products, including shower gels, fragrances, lotions and other beauty products made from soy, sake, sugar and Umbrian clay

Unlike some beauty-product companies, Fresh doesn’t rely exclusively on market research for ideas Instead, Glazman and Roytberg create products they would want to use themselves It helps that Glazman has a nose for fragrances and Roytberg a knack for packaging ‘You have to trust your instincts,’ Glazman says Adds Roytberg, ‘We found the best market research happens while listening to our customers in the store.’

Investment

Reading strategy: Using an outline

An outline can help you understand how a text is organized It shows the relationship between the main ideas and the specific information that supports them

There are many ways to organize an outline One common way is to use Roman numerals (I, II, III) for the main ideas and letters (A, B, C) for the supporting points When you outline a text, you briefly summarize the ideas using some words from the text and some of your own words You do not always need to write complete sentences

1.1 Vocabulary practice: Match the definitions (A–H) with the vocabulary (1–8)

1 capital growth A the portions producing intangible economic goods including banking, communications, wholesale and retail trade

2 speculative B done in the hope of making a profit but involving the risk of losing money

3 premises C profit that you receive on money that you have invested

4 service sectors D appreciation in the capital or market value of an investment

E the buildings and land that a business owns or uses

6 payback F the industries supplying products or raw materials to manufacture other goods

7 sales crash G a reduction in the number of products sold

Starting up a Business: Service and Manufacturing Sectors Compared

Starting up a business is easier in the service sector than in manufacturing A new manufacturer has to invest heavily in the factory premises, machinery and staff whereas a service sector start-up requires a much smaller initial investment However, these new service sector firms often take a long time to build up a client base They rely heavily on word of mouth to attract customers, a slow process that causes a few uncomfortable months while waiting for customers to arrive With few customers, cash flow is minimal, but the start-up bank loan still has to be serviced, and there may be promotional costs like price cuts or free samples

In contrast, new manufacturers have to find more start-up capital They take the risk of a high initial investment only because they know there is a ready market for their product

On the other hand, the service sector start-up is more speculative, based on the hope that people will want the service offered, so payback may be seriously delayed But the service sector start-ups have one big advantage over manufacturing A restaurant, for example, could be set up in a few weeks, enough time to find premises, buy equipment ‘off the shelf’ and recruit staff A manufacturer, on the other hand, needs about a year to find suitable premises, install machinery and make deals with suppliers of materials This delays the time taken for cash inflows to start offsetting the start-up costs for the manufacture

Cash flow is also influenced by the way demand may vary according to the time of year Many manufacturers face a seasonal pattern of demand for their product, but the seasonality is more acute for many service sector firms Manufacturers can produce stock before their seasonal peak, thus allowing them to spread the pressure on the production process But for service providers who make most of their money during one peak period, seasonality increases the level of risk If the peak season fails, e.g ice cream sales crash because of a cold summer, the whole business could collapse before the next peak season

Even more importantly, service providers have to respond instantly to changes in customer demand Any variation, whether caused by seasonal factors or changes in fashion, hits service providers immediately This implies an even greater need for a market-oriented approach by service providers There is, however, a positive aspect for service firms: unlike manufacturers, they are less likely to be caught with huge stocks of unwanted products

A firm’s financial success depends on adding value to its products, that is, selling its products at a price that is higher than the cost of making them In setting a price, companies must ensure that their customers believe that the product or service is worth the price being charged This is harder for service providers Customers can calculate more or less the cost of providing a restaurant meal or painting a room It's much harder to judge the cost of manufacturing products like cars or refrigerators Thus, service providers have to work much harder to add value to their services while avoiding any suspicion of overcharging The implication of this is that manufacturers are likely to find it easier to trade with higher profit margins than service sector firms

Exercise 1: Identify this paragraph's topic sentence, main points, and supporting details

Starting up a business is easier in the service sector than in manufacturing A new manufacturer has to invest heavily in the factory premises, machinery, and staff whereas a service sector start-up requires a much smaller initial investment However, these new service sector firms often take a long time to build up a client base They rely heavily on word of mouth to attract customers, a slow process that causes a few uncomfortable months while waiting for customers to arrive With few customers, cash flow is minimal, but the start-up bank loan still has to be serviced, and there may be promotional costs like price cuts or free samples

Exercise 2: Choose the correct answer

1 Why is a service business easier to start up than a manufacturing business?

A It needs less capital to set up the business

B It is more aware of what its customers want

C It has no difficulty finding trained staff

D It depends on personal recommendation

2 New service sector businesses may face a cash flow problem because they

A have to reduce prices in order to attract customers

B cannot always get a big enough loan from their bank

C have used most of their capital to set up the business

D may not have an immediate demand for their services

3 Variation in demand is not usually a problem for manufacturers because they

A need less cash once the initial investment has been made

B know that there is a steady market for their product

C can use off-peak periods to build up stocks of their product

D are able to reduce their prices to encourage sales in off-peak periods

4 The phrase ‘market-oriented approach’ (paragraph 4) means that service providers must

A promote their business through advertising

B be aware of their customers’ changing needs

C keep a tight control over their cash flow situation

D take care to maintain a balance between costs and profits

5 Why do manufacturers suffer when customer demand disappears?

A They cannot respond quickly to changes in the market

B They make most of their money in peak periods like Christmas

C They might have a lot of stock that they cannot sell

D They have to keep to very strict budgets

6 Manufacturers trade with higher profit margins because

A their initial investment is higher so they need a higher return

B their customers are unaware of the costs involved in manufacturing

C their costs include a much higher budget for advertising and promotion

D their products are generally more expensive to make

2.1 Vocabulary practice: Find words or phrases in bold in the text which mean the following

1 _ a large amount of money used for starting a new business

2 _ a name or a symbol which is put on a product to show that it is made by a particular producer and which cannot be legally used by any other producer

3 _ shops that are owned by a particular company and that sell the goods which the company has produced

6 _ the activity of selling goods to the public, usually in small quantities

7 _ the system of people and things that are involved in getting a product from the place where it is made to

8 _ money generated by a business without any losses or costs deducted

Should You Consider an International Franchise?

In southern California, Jeffery Adler oversees three trendy, modern Dlush ‘beverage joints’ serving coffee, tea, and doughnuts Things changed a year ago, after the wealthy Alghanim family contacted Adler about developing the Dlush concept in Kuwait and other areas in the Gulf

Adler found the proposal interesting: it would give Dlush an immediate cash infusion of several hundred thousand dollars, long-term income from a percentage of the gross revenue, and an immediate international presence There are now seven Gulf Dlush stores, but it has proved more complex and more time-consuming than he first imagined

In a recent survey of franchise businesses, more than 75 percent of companies said they were planning new international projects This is partly explained by basic economic trends, says Scott Lehr, Vice-president of Development for the International Franchise Association As western businesses cope with tight lending markets and a weak economy, many emerging economies have strong consumer demand, as well as investors with plenty of capital Lehr says increased international travel plus cheaper, easier communication technologies have facilitated international deals

When a lucrative overseas deal suddenly emerges, it's important that company owners do not lose their heads, says William Edwards, CEO of Edwards Global Services

“You have to look at where it makes sense to go, not just where there's a deal,” says Edwards “Think of this as an investment, because you'll be spending resources in terms of support, and actual costs.”

The first thing any company considering a foreign franchise agreement should do is secure the brand's trademark, says Edwards Otherwise, a potential investor could soon turn into a troublesome copycat Once an agreement is in place, business owners need to get heavily involved in helping the international franchisee accurately replicate the company's core concept That includes helping the new franchise set up a supply chain, as well as laying out guidelines about product quality, the retail experience, and the prices “The biggest challenge we see for small franchise businesses is to avoid losing control of their brand,” Edwards says

Adler worries that the fresh, youthful atmosphere of Dlush’s southern California locations can't really be duplicated in the Middle East, where the culture is more conservative “It really has to stay toned down,” says Shady Badawi, Director of Operations for Dlush’s Middle East franchises “The brand has been well accepted here It's young— it's fresh and trendy”

But Adler's main concern is that the Middle Eastern outlets have taken a lot of his time—and shifted his focus away from building the Dlush brand at home When Adler meets with potential new investors, he says, they often find Dlush’s international venture intriguing, but they ask, “What else could you have been doing in the U.S with your time and attention?’

Finance and Economy

1.1 Vocabulary practice: Find the words and phrases in paragraphs 1-7 in Reading Passage 1 that match the definitions below

2 security guarantee (such as a house) you provide to a bank to get a loan (para B)

3 businesspeople who work at home (para C)

6 build on or take advantage of (para F)

8 number of people per km 2 (para G)

9 do business over the long term without support (para G)

10 the practice of taking responsibility and control of your own life (para E)

Reading strategy: Recognizing facts and opinions

Facts are information that is generally considered true and thus can be checked or proven They include numerical data (figures and statistics) or further explanations In contrast, opinions refer to a judgement or belief about something, often based on assumption or personal view

How to recognize facts and opinions: Look for specific signal words and phrases as follows

• Fact: say, find, prove, show, study, identify, reveal, evidence, the fact that…, etc

• Opinion: believe, suggest, claim, speculate, might, could, implication, probably, etc

The meaning of a large number of words can be guessed without using a dictionary If you need to understand the meanings of some words, you can

1 study the word in context (look at the words before and after the unknown word and guess the meaning), or

2 analyse the structure of the word for any clues such as prefixes or suffixes

A Microfinance is often defined as financial services for poor and low-income clients In practice, the term is often used more narrowly to refer to loans and other services from providers that identify themselves as microfinance institutions (MFIs) These institutions deliver very small loans to unsalaried borrowers, taking little or no collateral More broadly, microfinance refers to a movement that envisions a world in which low-income households have permanent access to a range of high-quality financial services to finance their income-producing activities, build assets, stabilise consumption, and protect against risks These services are not limited to credit, but include savings, insurance, and money transfers

B Microcredit refers to very small loans for unsalaried borrowers with little or no collateral, provided by legally registered institutions Microfinance typically refers to microcredit, savings, insurance, money transfers, and other financial products targeted at poor and low-income people

C Typical microfinance clients are poor and low-income people that do not have access to other formal financial institutions Microfinance clients are usually self-employed, household-based entrepreneurs Their diverse micro-enterprises include small retail shops, street vending, artisanal manufacture, and service provision In rural areas, micro-entrepreneurs often have small income-generating activities such as food- processing and trade; some, but far from all, are farmers

D Most MFIs started as not-for-profit organisations like NGOs (non-governmental organisations), credit unions and other financial cooperatives, and state-owned development and postal savings banks An increasing number of MFIs are now organised as for-profit entities, often because it is a requirement to obtaining a licence from banking authorities to offer savings services For-profit MFIs may be organised as commercial banks that specialise in microfinance, or microfinance departments of full-service banks

E The impact of microcredit has been studied more than the impact of other forms of microfinance A harsh aspect of poverty is that income is often irregular and undependable Access to credit helps the poor to smooth cash flows and avoid periods where access to food, clothing, shelter, or education is lost Credit can make it easier to manage shocks like sickness of a wage earner, theft, or natural disasters The poor use credit to build assets such as buying land, which gives them future security Women participants in microcredit programmes often experience important self-empowerment

F Financial services, particularly credit, are not appropriate for all people at all times For loans that will be used for business purposes, microcredit best serves those who have identified an economic opportunity and can capitalise on it if they have access to a small amount of ready cash Regardless of how loans are used, MFIs can provide long- term, stable credit access only when clients have both the willingness and ability to meet scheduled loan repayments Microfinance is particularly inappropriate for the destitute, who may need grants or other public resources to improve their economic situation

G Concerns often arise as to why microcredit interest rates are higher than the bank interest rates that wealthier people pay The issue is cost: the administrative cost of making tiny loans is much higher in percentage terms than the cost of making a large loan It takes a lot less staff time to make a single loan of $100,000 than 1,000 loans of

$100 each Besides loan size, other factors can make microcredit more expensive to deliver MFIs may operate in areas that are remote or have a low population density, making lending more expensive If an MFI wants to operate sustainably, it has to price its loans high enough to cover all its costs

Exercise 1: Read the following statements and decide if each statement is Fact (F) or Opinion (O)

1 _ Microfinance is often offered to low-income individuals and households

2 _ Microfinance comes in a wide range of financial services, including microcredit and insurance

3 _ Micro-entrepreneurs are believed to benefit greatly from MFIs’ financial products

4 _ More and more MFIs are organized as for-profit institutions such as commercial banks

5 _ Studies on the social impact of microcredit might probably be of great importance for women

6 _ Higher interest rates from microcredit suggest that borrowers may run up against loan repayment difficulty

7 _ There are plentiful contributing factors to making microcredit more expensive to deliver

8 _ Experts speculate that MFIs should price its loans high enough to cover all the costs

Exercise 2: Read the following FAQs (Frequently Asked Questions) and match them with paragraphs A-G in the passage that answer the questions

_ How does microfinance help the poor?

_ What kinds of institutions deliver microfinance?

_ When is microfinance NOT an appropriate tool?

_ Why do MFIs charge high interest rates to poor people?

Exercise 1: Choose the correct word to complete each sentence

1 Customers not paying on time often leads to problems

2 Our state-of-the-art machinery is our major

3 The rate on the loan was 12%

4 They could not pay their debts and faced

5 Sorbat has gone into with debts of about £20 million

6 The finance a company raises from issuing shares rather than taking out loans is known as capital

7 The is the original amount of a loan not including any interest charged

8 A/ An is a particular type of loan for the purchase of property

9 If a company defaults on a loan, it means they miss a/an

10 Money lent to start-up businesses is known as risk or capital

Exercise 2: Find idioms in the first six paragraphs of the passage that mean the following

1 finish something you have started

2 a sudden chance to do something that allows you to become successful in your job

3 reduce your chances of failure or loss by trying several possibilities instead of one

4 make sure you always know what is happening in a situation

Complete these sentences with the above idioms

5 _ for information about the next fundraising event

6 Do you think Isabella will _ this time?

7 It’s a good idea to _ by applying to more than one MBA programme

8 There are hundreds of young musicians out there looking for a _

Ambitious entrepreneurs are prepared to go the distance to get financial backing for their bright ideas Sanchita Saha, founder of CitySocialising, a website to help people make new friends after relocating, travelled all the way to southern France

This was not as pleasant an experience as it might seem Once there, she spent months pitching to hundreds of potential investors to no avail, only to get a lucky break at the end First, she looked into ‘angel’ networking clubs, which provide entrepreneurs with access to large numbers of wealthy individuals interested in investing in early-stage ventures However, she turned down a number of these for reasons of cost: they were charging £1.500 ($2.488) just to submit a business plan Eventually, she settled on London Business Angels (LBA), through which she could pitch to roughly 100 ‘angels’

She also hedged her bets by securing a place on gateway2investment (g2i), a four- day programme to help ambitious entrepreneurs hone their pitching techniques, delivered by financial advisers Grant Thornton and backed by the London Development Agency

‘A lot of it is about networking – finding out who to talk to, who can help you, and keeping your ears to the ground,’ she says Through LBA, Saha discovered a third scheme, called the European Border Investment Programme, which was running its own event in Nice Although it was a risk, she booked herself on a flight and found herself pitching to another couple of hundred investors from across the European Union Among those were a couple of Finnish investors who, together with five wealthy individuals at LBA, agreed to back Saha’s business with a combined investment of £300,000 Her work was not yet done, however, as she had to bring the disparate team together to form a syndicate with a lead investor, who would then become CitySocialising’s Chairman

‘It was hard work and very stressful,’ Saha admits However, she is also one of the lucky ones Access to finance remains difficult for all sorts of companies, whether they are looking for rich individuals to take equity stakes, debt or venture capital

Although bank finance is easier to get hold of than it was a year ago, the costs remain stubbornly high The latest quarterly research by the Federation of Small Businesses (FSB) found more than three-quarters of companies had seen the cost of their existing finance increase by up to 5 percentage points above the Bank of England’s base rate Two-thirds of those in the FSB survey decided not to seek credit at the moment, which could suggest they are fearful of the cost

Changes and Challenges

Exercise 1: Match the idioms and metaphors with the definitions

1 peter out A feel very upset or worried

2 windows of opportunity B deal with difficult problems

3 crave the limelight C the place where the hardest work is done

4 take root D start to have problems

5 at the coalface E want to be the focus of attention

6 gut-wrenching F start to become established and accepted

7 tackle the thorny issues G chances/possibilities

8 run into trouble H slow down to a stop

Reading strategy: Identifying counterarguments and refutations

In an argumentative text, it is essential to identify the writer’s viewpoint from other opposing opinions, known as counterarguments To make his/her point valid and convincing, the writer would later respond to the counterarguments by including refutations, which show that these counterarguments are weak or incorrect

How to distinguish between counterarguments and refutations: Look for specific signal phrases as follows

• Counterarguments (acknowledging the source with a general subject): Experts say; Many people think; Admittedly, many students would; Some activists argue, etc

• Refutations (showing disagreement): On the contrary; However; But, in fact; Although; Despite these claims, etc

Exercise 2: Complete the following sentences using the idioms in Exercise 1

1 People in Direct Sales are working It is a really difficult job

2 The rise in unemployment might mean that the economic recovery is starting to

3 He loves all the attention He really does

4 Airline mergers traditionally with pilots’ unions

5 Going to court can be an expensive and experience that is best avoided

6 Compromise is essential if mergers are to in this troubled industry

The Hard Side of Change Management

When French novelist Jean-Baptiste Karr (1808-1890) wrote ‘Plus ca change, plus c’est la meme chose’ (The more things change, the more they stay the same), he could have been writing about change management, as studies show that in most organisations, two out of three transformation initiatives fail

Managing change is tough, but part of the problem is that there is little agreement on what factors most influence transformation initiatives Ask five executives to name the one factor critical for the success of these programs, and you’ll probably get five different answers

We researched change programs in a study of 225 companies and found a consistent link between the outcomes (success or failure) of change programs and four hard factors: project duration, particularly the time between project reviews; performance integrity, or the capabilities of project teams; the commitment of both senior executives and the staff whom the change will affect the most; and the additional effort that employees must make to cope with the change We called these variables the DICE factors because we could load them in favor of projects’ success

Companies make the mistake of worrying mostly about the time it will take to implement change programs They assume that the longer an initiative carries on, the more likely it is to fail – the early momentum will peter out, windows of opportunity will close, objectives will be forgotten, key supporters will leave or lose their enthusiasm, and problems will accumulate However, contrary to popular perception, our studies show that a long project that is reviewed frequently is more likely to succeed than a short project that isn’t reviewed frequently 1 _

By performance integrity, we mean the extent to which companies can rely on teams of managers, supervisors, and staff to execute change projects successfully As the success of change programs depends on the quality of teams, companies must free up the best staff while making sure that day-to-day operations keep going

Since project teams handle a wide range of activities, resources, pressures and unforeseen obstacles, they must be cohesive and well-led It’s not enough for senior executives to ask people at the watercooler if a project team is doing well; they must clarify members’ roles, commitments and accountability They must choose the team leader and, most importantly, work out the team’s composition 2 _

Executives often make the mistake of assuming that because someone is a good, well-liked manager, he or she will also make a decent team leader 3 Usually, good team leaders have problem-solving skills, are results-oriented, are methodical in their approach but tolerate ambiguity, are willing to accept responsibility for decisions, and while being highly motivated, don't crave the limelight

Companies must boost the commitment of two different groups of people if they want change projects to take root They must get visible backing from the most influential executives (what we call C1), who are not necessarily those with the top titles And they must take into account the enthusiasm – or often, lack of it – of the people who must deal with the new systems, processes, or ways of working (C2) Top-level commitment is vital to increasing commitment from those at the coal face 4 _

In one financial services firm, top management’s commitment to a program that would reduce errors and slash costs was low because it meant people would lose their jobs

Senior executives found it gut-wrenching to talk about layoffs in an organisation that had prided itself on being a place where good people could find lifetime employment However, the CEO realised that he needed to tackle the thorny issues around the layoffs to get the project implemented on schedule He asked a senior company veteran to organise a series of speeches and meetings in order to provide consistent explanations for the layoffs, the timing, the consequences for job security, and so on He also appointed a well-respected general manager to lead the change program 5

When companies launch transformation efforts, they frequently don’t realise, or don’t know how to deal with the fact, that employees are already busy with their day-to- day responsibilities According to staffing tables, people in many businesses work 80-plus- hour weeks If, on top of existing responsibilities, line managers and staff have to deal with changes to their work or to the systems they use, they will resist

Project teams must calculate how much work employees will have to do beyond their existing responsibilities to change over to new processes Ideally, no one’s workload should increase more than 10% Go beyond that, and the initiative will probably run into trouble Resources will become overstretched and compromise either the change program or normal operations 6 _

Exercise 1: Below are the possible reasons why initiatives to bring about change within an organization fail Read the first three paragraphs and find out the four factors the authors describe Which reasons match the four factors?

1 Top managers aren’t fully committed

2 Senior managers do not communicate clearly

3 Staff are frightened of change

4 The change process is not reviewed regularly

5 Change is forced upon staff

6 The change project team lacks well-qualified members

7 Staff are not fully consulted regarding all aspects

8 Staff need to invest more in making the changes

Exercise 2: Match the counterarguments with the correct refutations Then underline the expressions that introduce them

1 Most managers think it is managing change is not tough

2 Companies assume that the longer an initiative carries on, the more likely it is to fail

3 Senior executives argue that they could keep track of progress by casual exchange with the staff

4 It is generally believed that top management’s commitment will suffice if a company wants change projects to take root

5 When companies launch transformation efforts, they take additional tasks for employees for granted

A Contrary to popular perception, studies show that a long, reviewed frequently project is more likely to succeed

B Nevertheless, if, on top of existing responsibilities, line managers and staff have to deal with changes to their work, they will resist

C But, in fact, there is little agreement on what factors most influence transformation initiatives

D However, they must clarify members’ roles, commitments and accountability

E Despite this belief, it must take into account the enthusiasm of those who must deal with the new systems, processes, or ways of working

Exercise 3: Choose the best sentences below to fill the gaps 1-6 in Reading passage 1

A Those actions reassured employees that the organisation would tackle the layoffs in a professional and humane fashion

B That sounds reasonable, but effective managers of the status quo aren’t necessarily good at changing organisations

C Thus, the time between reviews is more critical for success than the project’s lifespan

D Senior executives should personally interview people for the project team so that they can construct the right portfolio of skills, knowledge, and social networks

E If employees don’t see that the company’s leadership is backing a project, they’re unlikely to change

F Employee morale will fall, and conflict may arise between team and line staff

Exercise 1: Match the words with their definitions

1 portfolio A a terrible event that causes a lot of destruction and suffering

2 damages B money that a court orders someone to pay to someone else

3 catastrophe C the collection of all policies held by an insurer

4 liability D the total combined risks that could be involved in a single loss event

5 accumulation E when the maker of a product is responsible for any injury that the product causes

Complete these sentences with words from Exercise 1

6 They are being sued for by clients whom they advised to invest in an insurance company that went bankrupt

7 The defect in her car caused the accident, and she is suing the company for product _

8 These policies could lead the country to economic

9 It is safer to spread your liability by holding a of risks

10 A/An of risk happens when there is a concentration of risks that might give rise to very large losses from a single event

Exercise 2: Match the words (1-5) to the phrases (A-E) to make expressions Then, match the expressions to their definitions (i-v)

1 bear A the way i immediately think of something

2 spring B the brunt ii make it possible for something to happen in the future

3 meet C to mind iii suffer the worst part of something unpleasant

4 pave D the risks iv reduce the chance of a large loss by sharing risks

5 spread E a need v be good enough to do what someone needs or expects

A The internationalisation of the economy is not as recent as the buzzword globalisation would have us believe In fact, it was internationalisation that paved the way for the beginnings of the insurance industry back in the fourteenth century, as shipowners sought to protect the increasing value of their ships and cargoes

B Even today, the complex nature of risks emanating from international trade is one of the insurance industry’s most difficult challenges and one that affects all classes of business, as the following examples show: (a) More than 90 per cent of all world trade is transported by sea or other waterways The largest container ships today, with cargoes of up to 13,000 containers, may be worth far in excess of $1bn However, even this concentration of value is small compared with that found at the world’s great container ports, such as Singapore or Hamburg, which act as depots for goods worth tens of billions of dollars every day (b) The outsourcing of production sites to low-wage countries does not just reduce costs It can also reduce the quality of the goods produced Defective products can result in recall costs or even product liability costs Recent examples of recalls that spring to mind include toys coated with lead paint and toothpaste contaminated with the antifreeze diethylene glycol (c) Liability losses can reach extreme proportions when pharmaceutical products cause dangerous side effects in patients National law in the country where the products are sold plays a key role in this connection The US, in particular, has seen some extremely high awards for damages